Document:

Unassociated Document

    Exhibit
10.4

     

    CHINA
YONGXIN PHARMACEUTICALS INC.

     

    2010
EQUITY INCENTIVE PLAN

     

    NOTICE OF
GRANT OF RESTRICTED STOCK

     

    Unless
otherwise defined herein, the terms defined in the 2010 Equity Incentive Plan
(the “Plan”) will have the same defined meanings in this Notice of Grant of
Restricted Stock (the “Notice of Grant”) and Terms and Conditions of Restricted
Stock Grant, attached hereto as Exhibit A (together, the “Award
Agreement”).

     

    Participant:

     

    Address:

     

    Participant
has been granted the right to receive an Award of Restricted Stock, subject to
the terms and conditions of the Plan and this Award Agreement, as
follows:

     

    Grant
Number

     

    Date of
Grant

     

    Vesting
Commencement Date

     

    Number of
Shares of Restricted Stock (the “Shares”)

     

     [Exercise
Price Per Share $]

     

    Term/Expiration
Date

     

    Vesting
Schedule:

     

    Subject
to any acceleration provisions contained in the Plan or set forth below, the
Restricted Stock shall vest and the Company’s right to repurchase the Restricted
Stock shall lapse in accordance with the following schedule:

     

     [Insert
Vesting Schedule Here]

     

     [PARTICIPANT
MUST PURCHASE THE SHARES BEFORE THE EXPIRATION DATE OR THE RESTRICTED STOCK
AWARD WILL TERMINATE AND PARTICIPANT WILL HAVE NO FURTHER RIGHT TO PURCHASE THE
SHARES.]

     

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    By
Participant’s signature and the signature of the Company’s representative below,
Participant and the Company agree that this Award is granted under and governed
by the terms and conditions of this Award Agreement and the Plan, which is made
a part of this document.

    
    

     

    
      	
              PARTICIPANT

               

              ______________________________

               

              Signature

               

               

               

              ______________________________

               

              Print Name

            	
              CHINA
      YONGXIN PHARMACEUTICALS  INC.

               

              __________________________________

               

              By

               

               

               

              __________________________________

               

              Title

            

    

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    APPENDIX
A

     

    TERMS AND
CONDITIONS OF RESTRICTED STOCK GRANT

     

    1.                                       [Purchase of
Stock.  The Company hereby agrees to sell to Participant and
Participant hereby agrees to purchase the number of shares (the “Shares”) of the
Company’s Common Stock (the “Restricted Stock”), at the per Share purchase price
and as otherwise described in the Notice of Grant.  The purchase price
for the Restricted Stock, if any, may be paid by delivery to the Company at the
time of execution of this Award Agreement of cash, a check, or some combination
thereof, together with any applicable withholding taxes.

     

    OR

     

    Grant.  The
Company hereby grants to Participant under the Plan for past services and as a
separate incentive in connection with his or her services and not in lieu of any
salary or other compensation for his or her services, an Award of Shares of
Restricted Stock, subject to all of the terms and conditions in this Award
Agreement and the Plan.]

     

    2.                                       Escrow of
Shares.

     

     (a)           All
Shares of Restricted Stock will, upon execution of this Award Agreement, be
delivered and deposited with an escrow holder designated by the Company (the
“Escrow Holder”).  The Shares of Restricted Stock will be held by the
Escrow Holder until such time as the Shares of Restricted Stock vest or the date
Participant ceases to be an employee, director or consultant of the Company (or
the parent or subsidiary employing or retaining Participant) (“Service
Provider”).

     

     (b)           The
Escrow Holder will not be liable for any act it may do or omit to do with
respect to holding the Shares of Restricted Stock in escrow while acting in good
faith and in the exercise of its judgment.

     

     (c)           Upon
Participant’s termination as a Service Provider for any reason, the Escrow
Holder, upon receipt of written notice of such termination, will take all steps
necessary to accomplish the transfer of the unvested Shares of Restricted Stock
to the Company.  Participant hereby appoints the Escrow Holder with
full power of substitution, as Participant’s true and lawful attorney-in-fact
with irrevocable power and authority in the name and on behalf of Participant to
take any action and execute all documents and instruments, including, without
limitation, stock powers which may be necessary to transfer the certificate or
certificates evidencing such unvested Shares of Restricted Stock to the Company
upon such termination.

     

     (d)           The
Escrow Holder will take all steps necessary to accomplish the transfer of Shares
of Restricted Stock to Participant after they vest following Participant’s
request that the Escrow Holder do so.

     

    
      
         

      

      
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     (e)           Subject
to the terms hereof, Participant will have all the rights of a shareholder with
respect to the Shares while they are held in escrow, including without
limitation, the right to vote the Shares and to receive any cash dividends
declared thereon.

     

     (f)            In
the event of any dividend or other distribution (whether in the form of cash,
Shares, other securities, or other property), recapitalization, stock split,
reverse stock split, reorganization, merger, consolidation, split-up, spin-off,
combination, repurchase, or exchange of Shares or other securities of the
Company, or other change in the corporate structure of the Company affecting the
Shares, the Shares of Restricted Stock will be increased, reduced or otherwise
changed, and by virtue of any such change Participant will in his or her
capacity as owner of unvested Shares of Restricted Stock be entitled to new or
additional or different shares of stock, cash or securities (other than rights
or warrants to purchase securities); such new or additional or different shares,
cash or securities will thereupon be considered to be unvested Shares of
Restricted Stock and will be subject to all of the conditions and restrictions
which were applicable to the unvested Shares of Restricted Stock pursuant to
this Award Agreement.  If Participant receives rights or warrants with
respect to any unvested Shares of Restricted Stock, such rights or warrants may
be held or exercised by Participant, provided that until such exercise any such
rights or warrants and after such exercise any shares or other securities
acquired by the exercise of such rights or warrants will be considered to be
unvested Shares of Restricted Stock and will be subject to all of the conditions
and restrictions which were applicable to the unvested Shares of Restricted
Stock pursuant to this Award Agreement.  The Committee in its absolute
discretion at any time may accelerate the vesting of all or any portion of such
new or additional shares of stock, cash or securities, rights or warrants to
purchase securities or shares or other securities acquired by the exercise of
such rights or warrants.

     

    (g)           The
Company may instruct the transfer agent for its Common Stock to place a legend
on the certificates representing the Restricted Stock or otherwise note its
records as to the restrictions on transfer set forth in this Award
Agreement.

     

    3.                                       Vesting
Schedule/Period of Restriction.  Except as provided in Section 4, and
subject to Section 5, the Shares of Restricted Stock awarded by this Award
Agreement will vest in accordance with the vesting provisions set forth in the
Notice of Grant.  Shares of Restricted Stock scheduled to vest on a
certain date or upon the occurrence of a certain condition will not vest in
Participant in accordance with any of the provisions of this Award Agreement,
unless Participant will have been continuously an employee, director, consultant
or advisor from the date of grant until the date such vesting
occurs.

     

    4.                                       Committee
Discretion.  The Committee, in its discretion, may accelerate the
vesting of the balance, or some lesser portion of the balance, of the unvested
Restricted Stock at any time, subject to the terms of the Plan.  If so
accelerated, such Restricted Stock will be considered as having vested as of the
date specified by the Committee.

     

    
      
         

      

      
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    5.                                       Forfeiture.  Notwithstanding
any contrary provision of this Award Agreement, the balance of the Shares of
Restricted Stock that have not vested at the time of Participant’s termination
as an employee, director, consultant or advisor for any reason will be forfeited
and automatically transferred to and reacquired by the Company at no cost to the
Company upon the date of such termination.  Participant will not be
entitled to a refund of the price paid for the Shares of Restricted Stock, if
any, returned to the Company pursuant to this Section 5.  Participant
hereby appoints the Escrow Agent with full power of substitution, as
Participant’s true and lawful attorney-in-fact with irrevocable power and
authority in the name and on behalf of Participant to take any action and
execute all documents and instruments, including, without limitation, stock
powers which may be necessary to transfer the certificate or certificates
evidencing such unvested Shares to the Company upon such termination of
service.

     

    6.                                       Death
of Participant.  Any distribution or delivery to be made to
Participant under this Award Agreement will, if Participant is then deceased, be
made to the administrator or executor of Participant’s estate.  Any
such administrator or executor must furnish the Company with (a) written notice
of his or her status as transferee, and (b) evidence satisfactory to the Company
to establish the validity of the transfer and compliance with any applicable
laws pertaining to said transfer.

     

    7.                                       Withholding
of Taxes.  Notwithstanding any contrary provision of this Award
Agreement, no certificate representing the Shares of Restricted Stock may be
released from the escrow established pursuant to Section 2, unless and until
satisfactory arrangements (as determined by the Committee) will have been made
by Participant with respect to the payment of income and employment taxes which
the Company determines must be withheld with respect to such
Shares.  The Committee, in its sole discretion and pursuant to such
procedures as it may specify from time to time, may permit Participant to
satisfy such tax withholding obligation, in whole or in part (without
limitation) by (a) paying cash, (b) electing to have the Company withhold
otherwise deliverable Shares having a Fair Market Value (as defined below) equal
to the minimum amount required to be withheld, (c) delivering to the Company
already vested and owned Shares having a Fair Market Value (as defined below)
equal to the amount required to be withheld, or (d) selling a sufficient number
of such Shares otherwise deliverable to Participant through such means as the
Company may determine in its sole discretion (whether through a broker or
otherwise) equal to the amount required to be withheld.  To the extent
determined appropriate by the Company in its discretion, it shall have the right
(but not the obligation) to satisfy any tax withholding obligations by reducing
the number of Shares otherwise deliverable to Participant.  If
Participant fails to make satisfactory arrangements for the payment of any
required tax withholding obligations hereunder at the time any applicable Shares
otherwise are scheduled to vest pursuant to Sections 3 or 4, Participant will
permanently forfeit such Shares and the Shares will be returned to the Company
at no cost to the Company. “Fair Market Value” means, as of any date, the value
of Common Stock as the Committee may determine in good faith by reference to the
price of such stock on any established stock exchange or a national market
system on the day of determination if the Common Stock is so listed on any
established stock exchange or a national market system.  If the Common
Stock is not listed on any established stock exchange or a national market
system, the value of the Common Stock will be determined by the Committee in
good faith.

     

    
      
         

      

      
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    8.                                       Rights
as Stockholder.  Neither Participant nor any person claiming under or
through Participant will have any of the rights or privileges of a stockholder
of the Company in respect of any Shares deliverable hereunder unless and until
certificates representing such Shares will have been issued, recorded on the
records of the Company or its transfer agents or registrars, and delivered to
Participant or the Escrow Agent.  Except as provided in Section 2(f),
after such issuance, recordation and delivery, Participant will have all the
rights of a stockholder of the Company with respect to voting such Shares and
receipt of dividends and distributions on such Shares.

     

    9.                                       No
Guarantee of Continued Service.  PARTICIPANT ACKNOWLEDGES AND AGREES
THAT THE VESTING OF SHARES OF RESTRICTED STOCK PURSUANT TO THE VESTING SCHEDULE
HEREOF IS EARNED ONLY BY CONTINUING AS AN EMPLOYEE, DIRECTOR, CONSULTANT OR
ADVISOR AT THE WILL OF THE COMPANY (OR THE PARENT OR SUBSIDIARY EMPLOYING OR
RETAINING PARTICIPANT) AND NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED
THIS RESTRICTED STOCK OR ACQUIRING SHARES HEREUNDER.  PARTICIPANT
FURTHER ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT, THE TRANSACTIONS
CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT
CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS AN EMPLOYEE,
DIRECTOR, CONSULTANT OR ADVISOR FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT
ALL, AND WILL NOT INTERFERE IN ANY WAY WITH PARTICIPANT’S RIGHT OR THE RIGHT OF
THE COMPANY (OR THE PARENT OR SUBSIDIARY EMPLOYING OR RETAINING PARTICIPANT) TO
TERMINATE PARTICIPANT’S RELATIONSHIP AS AN EMPLOYEE, DIRECTOR, CONSULTANT OR
ADVISOR AT ANY TIME, WITH OR WITHOUT CAUSE.

     

     10.                                 Address
for Notices.  Any notice to be given to the Company under the terms of
this Award Agreement will be addressed to the Company at China Yongxin
Pharmaceuticals Inc., 927 Canada Court, City of Industry,
California  91748, or at such other address as the Company may
hereafter designate in writing.

     

     11.                                 Grant
is Not Transferable.  Except to the limited extent provided in Section
6 above, the unvested Shares subject to this grant and the rights and privileges
conferred hereby will not be transferred, assigned, pledged or hypothecated in
any way (whether by operation of law or otherwise) and will not be subject to
sale under execution, attachment or similar process.  Upon any attempt
to transfer, assign, pledge, hypothecate or otherwise dispose of any unvested
Shares of Restricted Stock subject to this grant, or any right or privilege
conferred hereby, or upon any attempted sale under any execution, attachment or
similar process, this grant and the rights and privileges conferred hereby
immediately will become null and void.

     

     12.                                 Binding
Agreement.  Subject to the limitation on the transferability of this
grant contained herein, this Award Agreement will be binding upon and inure to
the benefit of the heirs, legatees, legal representatives, successors and
assigns of the parties hereto.

     

     13.                                 Additional
Conditions to Release from Escrow.  The Company will not be required
to issue any certificate or certificates for Shares hereunder or release such
Shares from the escrow established pursuant to Section 2 prior to fulfillment of
all the following conditions: (a) the admission of such Shares to listing on all
stock exchanges on which such class of stock is then listed; (b) the completion
of any registration or other qualification of such Shares under any state or
federal law or under the rulings or regulations of the Securities and Exchange
Commission or any other governmental regulatory body, which the Committee will,
in its absolute discretion, deem necessary or advisable; (c) the obtaining of
any approval or other clearance from any state or federal governmental agency,
which the Committee will, in its absolute discretion, determine to be necessary
or advisable; and (d) the lapse of such reasonable period of time following the
date of grant of the Restricted Stock as the Committee may establish from time
to time for reasons of administrative convenience.

     

    
      
         

      

      
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     14.                                 Plan
Governs.  This Award Agreement is subject to all terms and provisions
of the Plan.  In the event of a conflict between one or more
provisions of this Award Agreement and one or more provisions of the Plan, the
provisions of the Plan will govern.  Capitalized terms used and not
defined in this Award Agreement will have the meaning set forth in the
Plan.

     

     15.                                 Committee
Authority.  The Committee will have the power to interpret the Plan
and this Award Agreement and to adopt such rules for the administration,
interpretation and application of the Plan as are consistent therewith and to
interpret or revoke any such rules (including, but not limited to, the
determination of whether or not any Shares of Restricted Stock have
vested).  All actions taken and all interpretations and determinations
made by the

     

    The
Committee in good faith will be final and binding upon Participant, the Company
and all other interested persons.  No individual serving as a member
of the Committee (either serving alone or with other individuals) will be
personally liable for any action, determination or interpretation made in good
faith with respect to the Plan or this Award Agreement.

     

     16.                                 Electronic
Delivery.  The Company may, in its sole discretion, decide to deliver
any documents related to Restricted Stock awarded under the Plan or future
Restricted Stock that may be awarded under the Plan by electronic means or
request Participant’s consent to participate in the Plan by electronic
means.  Participant hereby consents to receive such documents by
electronic delivery and agrees to participate in the Plan through any on-line or
electronic system established and maintained by the Company or another third
party designated by the Company.

     

     17.                                 Captions.  Captions
provided herein are for convenience only and are not to serve as a basis for
interpretation or construction of this Award Agreement.

     

     18.                                 Agreement
Severable.  In the event that any provision in this Award Agreement
will be held invalid or unenforceable, such provision will be severable from,
and such invalidity or unenforceability will not be construed to have any effect
on, the remaining provisions of this Award Agreement.

     

     19.                                 Modifications
to the Award Agreement.  This Award Agreement constitutes the entire
understanding of the parties on the subjects covered.  Participant
expressly warrants that he or she is not accepting this Award Agreement in
reliance on any promises, representations, or inducements other than those
contained herein.  Modifications to this Award Agreement or the Plan
can be made only in an express written contract executed by a duly authorized
officer of the Company.  Notwithstanding anything to the contrary in
the Plan or this Award Agreement, the Company reserves the right to revise this
Award Agreement as it deems necessary or advisable, in its sole discretion and
without the consent of Participant, to comply with Section 409A of the Internal
Revenue Code of 1986, as amended (the “Code”) or to otherwise avoid imposition
of any additional tax or income recognition under Section 409A of the Code in
connection to this Award of Restricted Stock.

     

    
      
         

      

      
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     20.                                 Amendment,
Suspension or Termination of the Plan.  By accepting this Award,
Participant expressly warrants that he or she has received a Restricted Stock
Award under the Plan, and has received, read and understood a description of the
Plan.  Participant understands that the Plan is discretionary in
nature and may be amended, suspended or terminated by the Company at any
time.

     

     Notice
of Governing Law.  This Restricted Stock Award will be governed by,
and construed in accordance with, the laws of the State of Delaware without
regard to principles of conflict of laws.  For purposes of litigating
any dispute that arises under this Award of Restricted Stock or this Award
Agreement, the parties hereby submit to and consent to the jurisdiction of the
State of Delaware, and agree that such litigation shall be conducted in the
courts of the State of Delaware, or the federal courts for the District of
Delaware, and no other courts, where this Award of Restricted Stock is made
and/or to be performed.

     

    
      
         

      

      
        8Exhibit
10.1

     

    EMPLOYMENT
AGREEMENT

     

    This
Employment Agreement (the “Agreement”) effective July 1, 2009 (“Effective
Date”), is entered into between CENTER FOR WOUND HEALING, INC., a Nevada
corporation (the “Company”) with its principal place of business at 155 White
Plains Road, Tarrytown, New York 10591, and Michael J. Jakolat (“Executive”) who
resides at 17325 W. Westwind Drive, Gurnee, IL 60031, to provide the terms and
conditions for Executive’s employment with the Company and its affiliates from
time to time (together, the “Group”).

     

    The
Company and Executive have agreed that Executive will be employed by the Company
and will serve as the Company’s Vice President, Finance, upon the terms and
conditions set forth below.

     

    Accordingly,
and in consideration of the mutual obligations set forth in this Agreement,
which Executive and the Company agree are sufficient, Executive and the Company
agree as follows:

     

    1.            Term of
Employment. Subject
to the provisions of Paragraph 4 below, the initial term of this Agreement (the
“Initial Term”) begins on July 1, 2009 and ends on June 30, 2011. For avoidance
of doubt, Executive’s employment by the Company pursuant to this Agreement shall
be automatically renewed for an additional twelve (12) months following the end
of the Initial Term unless either Executive or the Company has provided written
notice of its or his intent not to renew on or before January 1, 2011 (a
“Renewal Term”). Following the first Renewal Term, Executive’s employment by the
Company pursuant to this Agreement shall be automatically renewed for successive
twelve (12) month periods (each, also a “Renewal Term”) following the end of the
prior Renewal Term unless either Executive or the Company has provided written
notice of its or his intent not to renew prior to the expiration of the prior
Renewal Term. Executive’s term of employment under this Agreement (the “Term”)
consists of the Initial Term and any Renewal Term(s). For avoidance of doubt,
“Term” as used in this Agreement shall not include any Renewal Term(s) unless
this Agreement is extended in accordance with this Paragraph 1.

     

    2.            Position and
Responsibilities.

     

    
      	
               
      

            	
              (a)

            	
              Effective
      July 1, 2009, Executive shall be employed as the Company’s Vice President,
      Finance, with the general powers, authority and responsibilities that
      accompany those positions. Such position and responsibilities will
      continue unless a change is to them is agreed to by the Executive and the
      Company.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (b)

            	
              As
      Vice President, Finance, Executive shall report directly to the CEO and
      shall have the duties and responsibilities that are typically performed by
      a Vice President, Finance, as well as any other lawful executive duties
      and executive offices assigned to Executive by the CEO consistent with
      Executive’s position, the size of the Company and the qualified personnel
      employed by the Company. Executive agrees to comply with such lawful
      policies of the Company as may be adopted from time to time as are
      applicable to him. Executive shall devote his full business time and best
      efforts to the Company’s business and affairs. Notwithstanding the
      foregoing, nothing herein shall preclude Executive from (i) serving on the
      board of one or more universities or charitable organizations (subject to
      the approval of the CEO, such approval not to be unreasonably withheld),
      (ii) engaging in charitable activities and community affairs, (iii)
      managing his personal investments and affairs, and (iv) maintaining a
      network of business contacts, provided that any such activities listed in
      (i), (ii), (iii) and (iv) above do not interfere in more than a de minimis
      manner with the proper performance of his duties and responsibilities
      hereunder and comply with the limitations set forth in the Company’s
      Non-Competition, Non-Solicitation and Confidentiality agreement to be
      signed by Executive along with this Employment
  Agreement.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Executive’s
      principal place of employment shall be the Company’s corporate
      headquarters, currently located in Tarrytown, New York, but Executive
      shall be required to engage in reasonable and customary business travel on
      behalf of the Company including visiting existing facilities owned or
      operated by the Company.

            

    

     

    
      	
               
      

            	
              (d)

            	
              Executive’s
      primary residence shall be in Gurnee,
Illinois.

            

    

     

    3.           
Compensation
and Expense Reimbursement.

     

    Executive
shall receive the following compensation and/or reimbursement for
expenses:

     

    
      	
               
      

            	
              (a)

            	
              Base Salary. Executive’s
      annual base salary for each fiscal year during the Term shall be $260,000,
      payable in equal monthly or more frequent installments as are customary
      under the Company’s payroll practices from time to time. The CEO will
      review the Base Salary at least annually and may (or may not) increase it
      at any time for any reason, in the CEO’s sole discretion. Executive’s Base
      Salary (as increased from time to time) shall not be reduced without
      Executive’s written consent.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Annual Performance
      Bonus. In addition to the foregoing, Executive shall be eligible to
      receive an annual cash performance bonus (the “Annual Bonus”) for each
      fiscal year ending during the Term if Executive remains employed by the
      Company on the last day of such fiscal year based on the annual EBITDA
      targets and the Accounts Receivable DSO target as set forth in the
      Company’s Business Plan. Subject to the provisions of Paragraph 4 hereof,
      Payment of the Annual Bonus shall be made no later than October 31 after
      the close of the applicable fiscal year. The amount of Executive’s Annual
      Bonus shall be established by the CEO in the CEO’s sole discretion
      following the close of the applicable fiscal
  year.

            

    

    
      
         

      

      
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              (c)

            	
              Benefits. Executive
      shall be eligible to participate in all Company benefit plans and programs
      as are generally available to the Company’s senior executives, and
      Executive’s benefits shall be based on the terms of the applicable plans
      as established by the Company from time to time. Executive shall be
      entitled to four (4) weeks paid vacation per calendar year, which vacation
      shall be exercised with due regard to the then current requirements of the
      Company’s business. Executive’s vacation entitlement may be reviewed by
      the CEO and increased at the CEO’s
discretion.

            

    

     

    
      	
               
      

            	
              (d)

            	
              Stock Options. Executive
      was granted options to purchase four hundred thousand (400,000) shares of
      common stock of the Company under the Company’s “Center for Wound Healing
      2006 Stock Option Plan” (the “Option Plan”). The Company represents that
      such shares are not currently registered, but agrees to provide Executive
      with “piggyback” registration rights on all options then granted to the
      Executive should the Company register the shares of any shareholder or
      warrant holder of the Company’s stock, and shall enter into a Registration
      Rights Agreement reasonably acceptable to Executive providing for such
      “piggyback” registration rights. The terms of such option grant shall be
      as follows:

            

    

     

    (i)          Time Vesting. 250,000 of the
400,000 shares are fully vested upon execution of this Employment
Agreement.

     

    (ii)         Performance Vesting. The
remaining 150,000 Performance Vesting Options will vest as follows:

     

    
      	
               
      

            	
              (A)

            	
              If
      the Company achieves the annual EBITDA targets and the annual Accounts
      Receivable DSO target as set forth in the Company’s Business Plan for
      fiscal year ending June 30, 2010, then Executive’s option to purchase
      100,000 shares of the Company’s common stock shall vest as of the last day
      of the applicable Quarter.

            

    

     

    
      	
               
      

            	
              (B)

            	
              If
      the Company achieves the annual EBITDA targets and the annual Accounts
      Receivable DSO target as set forth in the Company’s Business Plan for
      fiscal year ending June 30, 2011, then Executive’s option to purchase
      50,000 shares of the Company’s common stock shall vest as of the last day
      of the applicable Quarter.

            

    

     

    
      	
               
      

            	
              (C)

            	
              The
      Company’s EBITDA shall be calculated by reference to the Company’s Form
      10K following the review of such Form 10K by the Company’s outside
      accountants. In the absence of fraud by Executive, the EBITDA calculated
      in the manner set forth in this subparagraph shall be conclusive with
      respect to the whether any of the vesting thresholds provided in Paragraph
      3(g)(ii)(A-D) have been met.

            

    

    
      
         

      

      
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    (iii)          Change in Control. All of
Executive’s options shall become fully vested and exercisable immediately before
the effective time of a Change in Control as defined in Paragraph 4(a)(v)
below.

     

    (iv)          Term of Option. Executive’s
options shall remain outstanding for five (5) years following its date of grant.
To the extent Executive’s options have vested at the time of his termination of
employment, his options shall remain outstanding until the earlier of the end of
the option term or the date on which Executive exercises his
option.

     

    
      	
               
      

            	
              (e)

            	
              Expense Reimbursement.
      Executive shall be entitled to receive prompt reimbursement from the
      Company of all travel, tolls, parking, entertainment and out-of-pocket
      expenses which are reasonably and necessarily incurred by Executive in the
      performance of his duties hereunder; provided, however, that Executive
      properly accounts for such expenses in accordance with Company’s policies
      as in effect from time to time. The Company, upon the sole approval of the
      CEO, will reimburse Executive for the cost of a round-trip flight (coach
      fare) between Chicago, IL and any New York Metro area airport for an
      immediate family member; provided, however. Executive remains at the
      Company’s corporate headquarters for two consecutive weeks. Annual dues
      for AICPA and FEI will also be reimbursed by the Company as well as all
      continuing education costs necessary to maintain Executive’s existing
      certifications. All approved reimbursements shall be paid within a
      reasonable time (not later than March 15 of Employee’s taxable year
      following the taxable year in which an expense was incurred) following the
      presentation by Employee of appropriate documentation to the Company. The
      amount of expenses eligible for reimbursement during any taxable year of
      Employee under this Agreement will not affect the expenses eligible for
      reimbursement in any other taxable year of Employee, and Employee’s right
      to reimbursement of expenses is not subject to liquidation or exchange for
      another benefit.

            

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    4.          
Termination.

     

    
      	
               
      

            	
              (a)

            	
              Termination of
      Employment.

            

    

     

    (i)   
        Termination by the Company for
Cause. The CEO may terminate Executive’s employment for Cause at any time
upon written notice. “Cause” means any of the following: (1) Executive’s
material breach of this Agreement, breach of fiduciary duty having a material
adverse impact on the Company, material breach of the Company’s employment
policies applicable to him, or refusal to follow the lawful directives of the
CEO consistent with this Agreement that is not corrected (to the extent
correctable) within ten (10) days after delivery of written notice to Executive
with respect to such breach; (2) Executive’s material breach of a fiduciary duty
to the Company, material breach of the Company’s employment policies applicable
to him, refusal to follow the lawful directives of the CEO consistent with this
Agreement, or repeated breach of the same provision of this Agreement, each on
more than two (2) occasions, regardless of whether such breach has been or may
be corrected; (3) Executive’s indictment for or conviction of a felony or any
crime involving fraud; (4) Executive’s misappropriation of funds or material
property of the Company or any member of the Group; or (5) Executive’s material
dishonesty, disloyalty, or willful misconduct. Notwithstanding the foregoing,
any act, or failure to act, based upon the advice of counsel to the Company
shall be presumed to be done, or omitted to be done, by the Executive in good
faith and in the best interests of the Company, and shall not constitute Cause
as defined herein.

     

    (ii)           Termination by the Company without
Cause. The Company may terminate Executive’s employment under this
Agreement without Cause upon at least thirty (30) days’ prior written notice to
Executive.

     

    (iii)          Death or Disability.
Executive’s employment by the Company will immediately terminate upon
Executive’s death and at the option of either Executive or the Company,
exercisable upon written notice to the other party, may terminate upon the
Executive’s Disability. For purposes of this Agreement, “Disability” will occur
if (1) Executive becomes eligible for benefits under a long-term disability
policy provided by the Company, or (2) Executive has become unable, due to
physical or mental illness or incapacity, to substantially perform the essential
duties of Executive’s employment, with or without reasonable accommodation, for
a period of (A) 90 consecutive days or any consecutive waiting period during
which Executive is not eligible for long-term disability income benefits
pursuant to disability income policies provided by the Company, whichever is
less; or (B) or an aggregate of 120 days during any consecutive 12 month period,
as determined by an independent physician approved by the Company and Executive.
Executive agrees to be examined at the request of the Company by such
independent physician upon reasonable notice.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    (iv)        Termination by Executive for Good
Reason. Executive may terminate his employment for Good Reason at any
time upon written notice to the Company. “Good Reason” shall mean the
occurrence, during the Term, of any of the following actions or failures to act,
but in each case only if (1) Executive objects in writing within thirty (30)
days of Executive having actual knowledge of such event, and (2) with respect to
subsections 1-5 below, such occurrence is not corrected (if correctable) by the
Company within ten (10) days after delivery of written notice to the CEO with
respect to such occurrence: (1) a material change in Executive’s duties,
reporting responsibilities, titles or elected or appointed offices as in effect
immediately prior to the effective date of such change; (2) any reduction in or
failure to pay when due any compensation or expense reimbursement to which
Executive is entitled pursuant to this Agreement; (3) requirement by the Company
for the Executive to relocate his primary residence; (4) the Company’s breach of
any material term of this Agreement.

     

    (v)         Termination as a result of a Change
in Control. Executive may terminate Executive’s employment under this
Agreement within 60 days of the occurrence of a Change in Control, as defined
herein. The term “Change in Control” means: a change in control of the Company
of a nature that would be required to be reported in response to Item 6(e) of
Schedule 14A of Regulation 14A promulgated under the Exchange Act as in effect
at the time of such “change in control”, provided that such a change in control
shall be deemed to have occurred at such time as:

     

    
      	
               
      

            	
              (A)

            	
              any
      “person” (as that term is used in Sections 13(d) and 14(d)(2) of the
      Exchange Act), is or becomes the beneficial owner (as defined in Rule
      13d-3 under the Exchange Act) directly or indirectly, of securities
      representing 45% or more of the combined voting power for election of
      directors of the then outstanding securities of the Company or any
      successor to the Company, provided, however, that for purposes of this
      definition, the following transactions shall not constitute a Change in
      Control: (1) any acquisition directly from the Company through a public
      offering or private placement of shares of common stock (2) any
      acquisition by the Company or an Affiliate, (3) any acquisition by any
      employee benefit plan (or related trust) sponsored or maintained by the
      Company or any Affiliate, or (4) any acquisition by any corporation
      pursuant to a transaction which complies with clauses (1), (2) and (3) of
      subsection (D) of this definition.

            

    

     

    
      	
               
      

            	
              (B)

            	
              the
      consummation of a sale or disposition (through one or more transactions)
      of 50% or more of the assets or business of the Company;
  or

            

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (C)

            	
              the
      consummation of any reorganization, merger, consolidation or share
      exchange unless (1) the persons who were the beneficial owners of the
      outstanding Shares of the common stock of the Company immediately before
      the consummation of such transaction beneficially own more than 60% of the
      outstanding Shares of the common stock of the successor or survivor
      corporation in such transaction immediately following the consummation of
      such transaction and (2) the number of Shares of the common stock of such
      successor or survivor corporation beneficially owned by the persons
      described in Paragraph 4(a)(v)(D)(l) immediately following the
      consummation of such transaction is beneficially owned by each such person
      in substantially the same proportion that each such person had
      beneficially owned Shares of the Company’s common stock immediately before
      the consummation of such transaction, provided (3) the percentage
      described in Paragraph 4(a)(v)(D)(l) of the beneficially owned shares of
      the successor or survivor corporation and the number described in
      Paragraph 4(a)(v)(D)(2) of the beneficially owned shares of the successor
      or survivor corporation shall be determined exclusively by reference to
      the shares of the successor or survivor corporation which result from the
      beneficial ownership of Shares of common stock of the Company by the
      persons described in Paragraph 4(a)(v)(D)(l) immediately before the
      consummation of such transaction.

            

    

     

    (vi)          Termination by Executive without
Good Reason. Executive may terminate his employment under this Agreement
without Good Reason upon at least ninety (90) days’ prior written notice to the
Company.

     

    
      	
               
      

            	
              (b)

            	
              Consequences of Termination of
      Employment.

            

    

     

    (i)    
       Termination by the Company without
Cause or by Executive for Good Reason. If the Company terminates
Executive’s employment without Cause or provides written notice of its intent
not to renew as described in Paragraph 1, or if Executive terminates his
employment for Good Reason at any time during the Term, Executive shall receive
the benefits described in this Paragraph 4(b)(i), provided Executive executes a
release (in a form acceptable to the Company) of all claims he has or may have
against the Company. If Executive receives the benefits set forth in this
Paragraph 4(b)(i), Executive shall not be eligible for severance benefits from
any other plan, program or policy of the Company then in effect.

     

    1.           Continuation
of Base Salary. Executive shall be entitled to continuation of Executive’s
then-existing Base Salary for a period of twelve months after the termination of
his active employment.

     

    2.           Salary and Bonus due
Executive. Executive shall receive any accrued but unpaid Base Salary and
any Annual Bonus earned for any prior year(s) but not yet paid.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    3.           Pro-Rata Payment of Annual
Bonus. Executive shall be entitled to a pro-rata amount of his Annual
Bonus for the fiscal year in which his employment terminates equal to his Target
Annual Bonus times the number of days elapsed in the applicable fiscal year
divided by 365, payable not later than two and one-half (2 Vz) months after the
close of the applicable fiscal year.

     

    4.           Payment of Employment
Benefits. Executive shall be entitled to payment of any accrued
employment benefits to which he might be entitled pursuant to this Agreement,
including, without limitation, payment for any vacation not yet used during the
calendar year in which the termination of employment takes place, pro-rated to
the termination date. In addition, for a period of six (6) months following
Executive’s termination of employment, the Company shall continue Executive’s
(including Executive’s family) participation in any health or medical benefit
plan(s) in which he was participating prior to his termination of employment, at
the Company’s expense, if permitted by the terms and conditions of such plans;
If such plans do not permit Executive’s continued participation, then the
Company shall reimburse Executive for amounts actually incurred by him for
continuation coverage under such plans pursuant to COBRA for a period of six (6)
months. Reimbursements under this paragraph shall be paid promptly and in all
events not later than March 15 of Employee’s taxable year following the taxable
year in which the applicable expenses were incurred. The amount of expenses
eligible for reimbursement during any taxable year of Employee under this
Agreement will not affect the expenses eligible for reimbursement in any other
taxable year of Employee, and Employee’s right to reimbursement of expenses is
not subject to liquidation or exchange for another benefit.

     

    5.           Vesting of Stock Options. Any
unvested Stock Options pursuant to Paragraph 3(d)(i) hereof shall immediately
vest and become exercisable pursuant to the applicable Stock Option Agreement(s)
for such options. In addition to the foregoing, should the Company’s Adjusted
EBITDA for the Quarter during which such termination takes place meet the
applicable Adjusted EBITDA vesting thresholds required by Paragraph 3(d)(ii),
then any unvested options that would have vested as a result of the Company’s
achieving such Adjusted EBITDA threshold shall vest and become exercisable
pursuant to the Stock Option Agreement for such options.

     

    (ii)           Termination by the Company for
Cause. If Executive’s employment with the Company is terminated by the
Company for Cause, Executive shall receive (A) any accrued but unpaid Base
Salary through the Term or twelve months, whichever is less; (B) any Annual
Bonus earned for any prior year(s) but not yet paid; and (C) payment of any
accrued employment benefits to which he might be entitled pursuant to this
Agreement. Nothing contained in this sub-paragraph shall limit any right of the
Company in law or equity.

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    (iii)          Termination as a result of a Change
in Control. If Executive terminates his employment due to a Change in
Control under Paragraph 4(a)(v), Executive shall be entitled to receive the
payments and benefits set forth in Paragraph 4(b)(i) above.

     

    (iv)          Termination by Executive without
Good Reason. If Executive terminates his employment due to Paragraph
4(a)(vi), Executive shall be entitled to receive the payments and benefits set
forth in Paragraph 4(b)(1) subparagraphs 1, 2, 3, and 4 only. Continuation of
Executive’s then-existing Base Salary under Paragraph 4(b)(i)(l) will be offset
by any cash earnings Executive generates from any business he becomes associated
with for a period of twelve months after the termination of his active
employment, including serving as a consultant or as an employee of an NGO firm,
educational institution or government agency. If cash earnings are earned as a
consultant, cash earnings shall be defined as the Executive’s billed hourly rate
paid to Executive less direct expense attributable to the billed hourly
rate.

     

    (v)           Transition Period. If
termination takes place as a result of Change in Control, by Executive without
Good Reason, or by expiration of Term, Executive will remain in active
employment and assist the Company, for a period of not more than 90 days after
notice of termination or expiration of Term (“Transition Period”), in
identifying, securing and training his replacement. Payments and benefits set
forth in Paragraph 4(b) will commence at the termination of the Transition
Period.

     

    (vi)          Required Delay for Payment to
Specified Employees. To the extent necessary to comply with the
restriction in Section 409A of the Code concerning payments to specified
employees, the first payment to Executive pursuant to this Paragraph 4(b) shall
be made at least six months and one day after Executive’s “separation from
service” (within the meaning of section 409A of the Code). The first payment
shall include any installments that would have been paid previously under
Paragraph 4(b) were it not for this special timing rule, plus interest on the
delayed installments at an annual rate (compounded monthly) equal to the federal
short-term rate (as in effect under Section 1274(d) of the Code on Executive’s
separation from service).

     

    
      	
              
              

            	
              5.

            	
              Employment
      Taxes.
      All payments and other compensation under this Agreement shall be subject
      to withholding of applicable taxes and other amounts required by law to be
      withheld.

            

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    6.         
Indemnification. To the
fullest extent permitted by applicable law, the Company shall provide
indemnification for Executive under its Articles of Incorporation and Bylaws.
Executive shall be covered by the Company’s standard indemnification agreement
and by any director’s and officer’s liability insurance policy maintained by the
Company, subject to the terms of such agreement and/or policy(ies). The Company
shall maintain directors and officer’s liability insurance in amounts
appropriate for the Company’s size and business throughout the Term and for a
period of three (3) years thereafter.

     

    7.         
Successors. The
Company shall use commercially reasonable efforts to require (through
contractual arrangements or otherwise) any successor to the Company to all or
substantially all of the Company’s business and/or assets (whether a direct or
indirect successor, and whether by purchase, lease, merger, consolidation,
liquidation, or otherwise) to assume the obligations under this Agreement. In
case of any succession, the term “Company” shall refer to the successor. The
terms of this Agreement and all of Executive’s rights hereunder shall inure to
the benefit of, and be enforceable by, Executive’s personal or legal
representatives, executors, administrators, successors, heirs, distributees,
devisees, and legatees. Notwithstanding the foregoing, nothing contained herein
shall be construed as authorizing any assignment or other delegation by
Executive of his duties hereunder.

     

    8.         
No Third-Party
Beneficiaries. Except
as to any successor as provided in Paragraph 7 above, nothing in this Agreement
may confer upon any person or entity not a party to this Agreement any rights or
remedies of any nature or kind whatsoever under or by reason of this
Agreement.

     

    9.         
No Duty to
Mitigate.
Executive shall not be required to seek new employment or otherwise to mitigate
the payments contemplated by this Agreement; provided, however, that the
payments contemplated by Paragraph 4(b)(i)(l) of this Agreement (and to the
extent such provision is incorporated by reference by any other provision of
this Agreement) shall be offset by earnings that Executive may receive as
defined in Paragraph 4(b)(iv) during the period in which payments pursuant to
Paragraph 4(b)(iv) are being made by the Company. Moreover, any benefits or
reimbursement to which Executive is entitled pursuant to Paragraph 4(b)(i)(4)
shall cease if Executive obtains comparable heath or medical insurance coverage
with another employer. Nothing contained in this Paragraph 9 shall be construed
to obligate Executive to pay any amounts to the Company, or to repay any amounts
already paid to him by the Company, under any circumstances.

     

    10.       
Notice. Notices
and other communications between the parties to this Agreement shall be
delivered in writing and shall be deemed to have been given when personally
delivered or on the third business day after mailing by U.S. registered or
certified mail, return receipt requested and postage prepaid, or by a recognized
national courier service.

     

    
      	
               
      

            	
              (a)

            	
              Notices
      and other communications not personally delivered to Executive shall be
      addressed to Executive, at the most recent home address that he provided
      in writing to the Company.

            

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (b)

            	
              Notices
      and other communications to the Company shall be addressed to the
      Company’s corporate headquarters, to the attention of the Company’s
      Secretary.

            

    

     

    11.       
Waiver and
Amendments. No
provision of this Agreement may be modified, waived, or discharged, unless the
modification, waiver, or discharge is agreed to in writing signed by Executive
and by an authorized representative of the Company (other than Executive).
Unless specifically characterized as a continuing waiver, no waiver of a
condition or provision at any one time may be considered a waiver of the same
provision or condition (or any different provision or condition) at any other
time.

     

    12.       
Ability to
Enter this Agreement.
Executive represents and warrants that neither the execution and delivery of
this Agreement nor the performance of Executive’s services hereunder will
conflict with, or result in a breach of any employment or other agreement to
which Executive is a party or by which Executive might be bound or affected.
Executive further represents and warrants that Executive has full right, power,
and authority to enter into and carry out the provisions of this
Agreement.

     

    13.       
American Jobs
Creation Act of 2004. This
Agreement shall be construed, administered and interpreted in accordance with a
good-faith interpretation of Section 409A of the Code and Section 885 of the
American Jobs Creation Act of 2004. If the Company or Executive determines that
any provision of this Agreement is or might be inconsistent with such provisions
(including any administrative guidance issued thereunder), the parties shall
make their best efforts to act in good faith compliance with the requirements of
Section 409A of the Code and to agree to such amendments to this Agreement as
may be necessary or appropriate to comply with such requirements.

     

    14.       
Choice of Law
and Exclusive Jurisdiction. This
Agreement (including its validity, interpretation, construction, and
performance) shall be governed by the laws of the State of New York, without
regard to any concerning conflicts or choice of law that might otherwise refer
construction or interpretation to the substantive law of another jurisdiction.
Any dispute related to or arising from this Agreement, or its construction,
formation, or termination, shall be brought exclusively in the state or federal
courts for Westchester County, New York, and both the Company and Executive
waive any defense of lack of personal jurisdiction in such courts for any action
arising from or related to this Agreement.

     

    15.        Section
Headings. All
headings in this Agreement are inserted for convenience only. Headings do not
constitute a part of the Agreement and may not affect the meaning or
interpretation of any term or other provision of this Agreement.

     

    16.       
Severability
and Reformation. Each
substantive provision of this Agreement is a separate agreement, independently
supported by good and adequate consideration, and is severable from the other
provisions of the Agreement. If a court of competent jurisdiction determines
that any term or provision of this Agreement is unenforceable, then the other
terms and provisions of this Agreement shall remain in full force and effect,
and the unenforceable terms or provisions shall be equitably modified to the
extent necessary to achieve the underlying purpose in an enforceable
way.

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    17.        
Whole
Agreement. This
Agreement reflects the entire understanding and agreement between the Company
and Executive regarding Executive’s employment. This Agreement supersedes all
prior negotiations, discussions, correspondence, communications, understandings,
and agreements, whether oral or written, relating to Executive’s employment with
the Company. The respective rights and obligations of the parties to this
Agreement shall survive the termination of Executive’s employment to the extent
necessary to give such rights and obligations their intended
effect.

     

    18.         
No
Presumption. Each
party hereto has participated in the negotiation and drafting of this Agreement
and each has been represented throughout to his or its satisfaction by legal
counsel of their respective choice. In the event any ambiguity or question of
intent or interpretation arises, this Agreement shall be construed as if drafted
jointly by the parties and no presumption or burden of proof shall arise
favoring or disfavoring any party by virtue of the authorship of any provision
of this Agreement.

     

    19.         
Fiscal
Year. Should
the Company’s fiscal year be modified during the Term, the provisions of this
Agreement shall be deemed modified and amended to provide Executive with
equivalent rights and benefits to which he would otherwise have been eligible
but for such modification.

     

    20.         
Counterparts. This
Agreement may be executed in counterparts, each of which shall be deemed an
original, but all of which together shall constitute a single
instrument.

     

    (signatures
on the next page)

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    CENTER
FOR WOUND HEALING, INC.:

    
      

      
        
          	
                  By:

                	
                  /s/ Andrew G. Barnett

                	 
      
	 
      	
                  Andrew
      G. Barnett

                	 
      

        

      

      
        
          
            	 
      	
                    Its

                  	
                    CEO

                  	 
      
	 
      	
                    Date 

                  	
                    June 21, 2010

                  	 
      

          

        

      

      

      EXECUTIVE:

      

      
        
          	 
      	
                  /s/ Michael J. Jakolat

                	 
      
	 
      	
                  Michael
      J. Jakolat

                	 
      

        

      

      

      
        
          	 
      	
                  Date

                	
                  June 21, 2010

                	 
      

        

      

      
        
           

        

        
          13

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