Document:

ovid-ex102_121.htm

Exhibit 10.2

 

AMENDED AND RESTATED EXECUTIVE EMPLOYMENT AGREEMENT

Yaron Werber (“Executive”) is currently employed by OVID THERAPEUTICS INC. (the “Company”) as its Chief Business and Financial Officer pursuant to the terms of an Executive Employment Agreement with the Company dated May 31, 2015 (the “Prior Agreement”).  Executive and the Company hereby agree to amend and restate the Prior Agreement.  The terms and conditions set forth in this AMENDED AND RESTATED EXECUTIVE EMPLOYMENT AGREEMENT (this “Agreement”) shall become effective as of the effective date of the first registration statement filed by the Company to register shares of its common stock for sale to the public through one or more underwriters (the “Effective Date”), and shall supersede and replace the terms and conditions set forth in the Prior Agreement. Certain capitalized terms used in this Agreement are defined in Section 6.

WHEREAS, the Company is a biopharmaceutical company;

WHEREAS, the Company desires for Executive to continue to provide services to the Company, and wishes to provide Executive with certain compensation and benefits in return for such services, as set forth in this Agreement; and

WHEREAS, Executive wishes to continue to be employed by the Company and to provide personal services to the Company in return for certain compensation and benefits, as set forth in this Agreement.

NOW, THEREFORE, in consideration of the mutual promises contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Company and Executive agree as follows:

1.  TERMS OF EMPLOYMENT

	

	

1.1.Position, Duties and Location.  Executive shall continue to serve as Chief Business and Financial Officer, reporting to the Company’s Chief Executive Officer (“CEO”).  Executive shall perform those duties and responsibilities as are customary for such position and as may be directed by the Company and the Board from time to time, including: (1) planning, implementing, managing and controlling all financial-related activities of the Company, including being directly responsible for accounting, finance, forecasting, strategic planning, job costing, legal, property management, deal analysis, investor relationships and partnership compliance and private and institutional financing;         (2) giving active consideration and input to all major decisions of the Company; (3) evaluating and advising on the impact of long range planning, introduction of new programs/strategies and regulation action; (4) providing leadership in the development of continuous evaluations of short and long-term strategic financial objectives; (5) being actively involved in assessing and negotiating deals;                   (6) developing strong relationships with all of the Company’s current investor groups, cultivating additional strategic investors, managing investor relations and setting standards for the industry;            (7) providing executive management with advice on the financial implications of business activities;     (8) providing recommendations to strategically enhance financial performance and business opportunities; (9) directing and overseeing all aspects of the Company’s finance and accounting functions; (10) ensuring credibility of the Company’s finance group by providing timely and accurate analyses of budgets, financial trends and forecasts; (11) establishing and maintaining strong relationships with senior executives so as to identify their needs and the full range of business solutions; (12) managing processes for financial forecasting, budgets and consolidation, and reporting to the Company; (13) ensuring that effective internal controls are in place and ensuring compliance with GAAP and applicable federal, state and local regulatory laws and rules for financial and tax reporting; (14) managing business development activities, including in-licensing, acquisitions of products and technologies, mergers and acquisitions and entering into collaborations; (15) running alliance management; (16) furthering pipeline development; (17) assisting with general operations 

 

 

and IT activities; (18) coordinating and developing strategies for the Company; and (19) managing investor relations, the media and social media.  During Executive’s employment with the Company, Executive shall devote Executive’s best efforts and substantially all of Executive’s business time and attention to the business of the Company, except for approved vacation periods and reasonable periods of illness or other incapacities permitted by the Company’s general employment policies.  Executive’s primary office location will be the Company’s offices in New York, New York.  Notwithstanding the foregoing, the Company reserves the right to reasonably require Executive to perform Executive’s duties at places other than Executive’s primary office location from time to time, and to require reasonable business travel.  During Executive’s employment with the Company, Executive shall not engage in any activity that conflicts with or is detrimental to the Company’s best interests, as determined by the CEO.  Provided that Executive obtains the CEO’s prior written consent for each of the following activities, which consent shall not be unreasonably withheld, and that none of the following activities involve activities in the area of neurology, detract from Ovid’s reputation, impact Executive’s full time duties to the Company, or could reasonably result in the disclosure or use of the Company’s proprietary or confidential information, Executive may sit on the board of one company, advise venture capital or similar funds and invest in biotechnology stocks.  The CEO may rescind the CEO’s consent to Executive’s service as a director of all other companies, or participation in other business or public activities, if the CEO, in the CEO’s sole discretion, determines that such activities compromise or threaten to compromise the Company’s business interests or conflict with Executive’s duties to the Company. 

1.2.Employment Term.  Executive will be employed by the Company on an “at-will” basis.  This means that either the Company or Executive may terminate Executive’s employment at any time, for any reason, with or without Cause, and with or without advance notice (provided that Resignation for Good Reason (as defined below) requires certain advanced notice by Executive of Executive’s termination of employment).  Subject to the terms herein, it also means that Executive’s job title, duties, responsibilities, reporting level, compensation and benefits, as well as the Company’s personnel policies and procedures, may be changed with or without notice at any time in the Company’s sole discretion.  This at-will employment relationship shall not be modified by any conflicting actions or representations of any Company employee or other party before or during the term of Executive’s employment.  

1.3.Compensation.

a)Annual Base Salary.   Executive’s annual base salary shall be paid at the rate of $412,000 per year (“Annual Base Salary”), payable in equal installments, less applicable payroll deductions and withholdings, on the Company’s ordinary payroll cycle.  Executive’s Annual Base Salary shall be subject to annual review by the Board and may be adjusted from time to time; provided, however, that if the Board determines, as set forth in Section 1.3(c), that one hundred percent (100%) of the written Company and individual objectives have been achieved for a given calendar year, then the Annual Base Salary shall be adjusted for the following calendar year such that it is approximately equal to the seventy-fifth (75th) percentile of base salaries of peer group public company chief financial officers, as determined by Radford or another reputable compensation consultant selected by the Board in its sole discretion.  As an exempt salaried employee, Executive will be required to work the Company’s normal business hours, and such additional time as appropriate for Executive’s work assignments and position, and Executive will not be entitled to overtime compensation.  

b)Benefits. Executive will continue to be eligible to participate in all of the Company’s employee benefits and benefit plans that the Company generally makes available to its full-time employees and executives in accordance with the terms and conditions of the benefit plans and applicable policies as in effect from time to time.  In accordance with the Company’s policies and procedures, as in effect from time to time, Executive will be eligible to accrue fourteen (14) days of paid vacation per year and ten (10) days of paid sick leave per year. 

 

 

c)Bonus. Executive shall be eligible to earn an annual performance bonus of at least thirty percent (30%) of Executive’s Annual Base Salary (the “Target Performance Bonus”).  The Target Performance Bonus shall be based upon the Company’s assessment of Executive’s attainment of written Company and individual objectives as set by the Company in its sole discretion.  The Company may increase the Target Performance Bonus in its sole discretion.  Bonus payments, if any, shall be subject to applicable payroll deductions and withholdings.  Following the close of each calendar year, the Company shall determine whether Executive has earned a Target Performance Bonus, and the amount of any such bonus, based on the achievement of such objectives.  Except as provided in Sections 2.2 and 3.2, Executive must be an employee of the Company in good standing on the Target Performance Bonus payment date to be eligible to receive a Target Performance Bonus, and no partial or prorated bonuses shall be provided.  The Target Performance Bonus, if earned, shall be paid on or before March 15th of the calendar year after the applicable bonus year.  Executive’s bonus eligibility is subject to change in the discretion of the Company.     

d)Equity Compensation. Executive has already been granted options to purchase shares of the Company’s common stock, which shall continue to be governed by the terms of the applicable stock option agreements, grant notices and the Company’s 2014 Equity Incentive Plan, as amended (the “Equity Plan”).  At the discretion of the Board, Executive shall be eligible to receive additional options to purchase shares of the Company’s common stock.

1.4.Reimbursement of Expenses.  Subject to Section 4.8(c), the Company shall reimburse Executive for Executive’s necessary and reasonable business expenses incurred in connection with Executive’s duties in accordance with the Company’s generally applicable expense reimbursement policies as in effect from time to time.  

1.5.Board Attendance.  Executive shall attend all meetings of the Board upon invitation by the Board’s Chairman.  Executive will be expected to attend all meetings of the Audit Committee of the Board (the “Audit Committee”), unless Executive is asked by the Chairman of the Audit Committee to excuse himself from such meeting.

1.6.Indemnification Agreement. Executive and Company shall enter into an Indemnity Agreement (the “Indemnification Agreement”), which shall be effective as of the Effective Date and is incorporated herein by reference.  

1.7.Compliance with Confidentiality Agreement and Company Policies.  Executive and the Company have executed the Confidentiality Agreement, which is incorporated herein by reference.  In addition, Executive is required to continue to abide by the Company’s policies and procedures, including but not limited to the Company’s Employee Handbook, as adopted or modified from time to time within the Company’s discretion; provided, however, that in the event the terms of this Agreement differ from or are in conflict with the Company’s general employment policies or practices, this Agreement shall control.  

2.  COVERED TERMINATION SEVERANCE BENEFITS

	

	

2.1.Severance Benefits.  Upon a Covered Termination, then subject to Section 4 below and Executive’s continued compliance with the terms of this Agreement, the Company shall provide Executive with the severance benefits set forth in this Section 2 (the “Severance Benefits”).  

2.2.Salary and Pro-Rata Bonus Payment.  The Company shall pay Executive, as cash severance, (i) the sum of Executive’s Monthly Base Salary and Pro-Rata Bonus, multiplied by (ii) the number of months in the Covered Termination Severance Period, less applicable payroll deductions and withholdings (the “Severance”). The Severance shall be paid (except as set forth in Section 4) in equal installments on the Company’s ordinary payroll cycle commencing on the first regularly-scheduled payroll date occurring on or after the Release Deadline Date (as set forth in Section 4.1).

 

 

2.3.Health Continuation Payments.

a)The Company will pay Executive on the first day of each month a fully taxable cash payment equal to the applicable premium for Executive, his spouse and any dependents for the group health plan maintained by the Company for the month in which the Covered Termination occurs, subject to applicable tax withholdings but grossed up for all taxes owed by the Executive on such payment, for the duration of the Covered Termination Benefits Period. Such coverage shall be counted as coverage pursuant to COBRA. The Company shall have no obligation in respect of any premium payments following the effective date of the Executive’s coverage by a health insurance plan of a subsequent employer. Executive shall be required to notify the Company immediately if Executive becomes covered by a health insurance plan of a subsequent employer. 

b)For purposes of this Section 2.3, (i) references to COBRA shall be deemed to include analogous provisions of state law, and (ii) any applicable insurance premiums that are paid by the Company shall not include any amounts payable by Executive under a Code Section 125 health care reimbursement plan, which amounts, if any, are the sole responsibility of Executive. 

2.4.Covered Termination Vesting Acceleration Benefit.  Upon a Covered Termination, (i) the vesting and exercisability of all outstanding options to purchase the Company’s common stock (or stock appreciation rights or other rights with respect to the stock of the Company issued pursuant to any equity incentive plan of the Company) that are held by Executive on the Termination Date shall be accelerated in full, (ii) each such option shall be exercisable and to the extent not exercised, expire on the latest date permitted under the Equity Plan and (iii) any reacquisition or repurchase rights held by the Company with respect to common stock issued or issuable (or with respect to other rights with respect to the stock of the Company issued or issuable) pursuant to any other stock award granted to Executive pursuant to any equity incentive plan of the Company shall lapse.

2.5.Reimbursement of Legal Fees. The Company will reimburse Executive for actual legal fees incurred, up to a maximum of $25,000, in connection with the review of the Release, subject to and in accordance with the Company’s expense reimbursement policies as in effect from time to time.

3.  CHANGE IN CONTROL SEVERANCE BENEFITS

	

	

3.1.Change in Control Severance Benefits.  Upon a Change in Control Termination, then subject to Section 4 below and Executive’s continued compliance with the terms of this Agreement, the Company shall provide Executive with the severance benefits set forth in this Section 3 (the “Change in Control Severance Benefits”).  

3.2.Salary and Pro-Rata Bonus Payment.  The Company shall pay Executive, as cash severance, (i) the sum of Executive’s Monthly Base Salary and Pro-Rata Bonus, multiplied by (ii) the number of months in the Change in Control Severance Period, less applicable payroll deductions and withholdings (the “Change in Control Severance”). The Change in Control Severance shall be paid (except as set forth in Section 4) in equal installments on the Company’s ordinary payroll cycle commencing on the first regularly-scheduled payroll date occurring on or after the Release Deadline Date.  

3.3.Health Continuation Payments.

a)The Company will pay Executive on the first day of each month a fully taxable cash payment equal to the applicable premium for Executive, his spouse and any dependents for the group health plan maintained by the Company for the month in which the Change in Control Termination occurs, subject to applicable tax withholdings but grossed up for all taxes owed by the Executive on such payment, for the duration of the Change in Control Benefits Period. Such coverage shall be counted as coverage pursuant to COBRA. The Company shall have no obligation in respect of any premium payments following 

 

 

the effective date of the Executive’s coverage by a health insurance plan of a subsequent employer. Executive shall be required to notify the Company immediately if Executive becomes covered by a health insurance plan of a subsequent employer. 

b)For purposes of this Section 3.3, (i) references to COBRA shall be deemed to include analogous provisions of state law, and (ii) any applicable insurance premiums that are paid by the Company shall not include any amounts payable by Executive under a Code Section 125 health care reimbursement plan, which amounts, if any, are the sole responsibility of Executive. 

3.4.Change in Control Termination Vesting Acceleration Benefits.  Upon a Change in Control Termination, (i) the vesting and exercisability of all outstanding options to purchase the Company’s common stock (or stock appreciation rights or other rights with respect to the stock of the Company issued pursuant to any equity incentive plan of the Company) that are held by Executive on the Termination Date shall be accelerated in full, (ii) each such option shall be exercisable and to the extent not exercised, expire on the latest date permitted under the Equity Plan and (iii) any reacquisition or repurchase rights held by the Company with respect to common stock issued or issuable (or with respect to other rights with respect to the stock of the Company issued or issuable) pursuant to any other stock award granted to Executive pursuant to any equity incentive plan of the Company shall lapse.

3.5.Reimbursement of Legal Fees. The Company shall reimburse Executive for actual legal fees incurred, up to a maximum of $25,000, in connection with the review of the Release, subject to and in accordance with the Company’s expense reimbursement policies as in effect from time to time.

4.  LIMITATIONS AND CONDITIONS ON BENEFITS

	

	

4.1.Release Prior to Payment of Severance Benefits and Change in Control Severance Benefits.  The receipt of any Severance Benefits or Change in Control Severance Benefits pursuant to this Agreement is subject to Executive signing and not revoking a separation agreement and general release of claims (the “Release”), in substantially the form attached hereto and incorporated herein as Exhibit A or Exhibit B, as appropriate, which Release must become effective and irrevocable no later than the sixtieth (60th) day following Executive’s Termination Date (the “Release Deadline Date”).  If the Release does not become effective and irrevocable by the Release Deadline Date, Executive will forfeit any right to any Severance Benefits or Change in Control Severance Benefits under this Agreement.  In no event will Severance Benefits or Change in Control Severance Benefits be paid or provided until after the Release Deadline Date.  On the first regularly-scheduled payroll date occurring on or after the Release Deadline Date, the Company will pay Executive the Severance or Change in Control Severance amount that Executive would otherwise have received on or prior to such date but for the delay in payment related to the effectiveness of the Release, with the balance of the Severance or Change in Control Severance amount being paid as originally scheduled. The Company may modify the Release in its discretion to comply with changes in applicable law at any time prior to Executive’s execution of such Release. 

4.2.Return of Company Property.  Not later than the Termination Date, or earlier if requested by the Company, Executive shall return to the Company all documents (and all copies thereof) and other property belonging to the Company that Executive has in his or her possession or control. The documents and property to be returned include, but are not limited to, all files, correspondence, email, memoranda, notes, notebooks, records, plans, forecasts, reports, studies, analyses, compilations of data, proposals, agreements, financial information, research and development information, marketing information, operational and personnel information, databases, computer-recorded information, tangible property and equipment (including, but not limited to, computers, facsimile machines, mobile telephones and servers), credit cards, entry cards, identification badges and keys, and any materials of any kind which contain or embody any proprietary or confidential information of the Company (and all reproductions thereof in whole or in part). Executive agrees to make a diligent search to locate any such documents, property and 

 

 

information. If Executive has used any personally owned computer, server or e-mail system to receive, store, review, prepare or transmit any Company confidential or proprietary data, materials or information, then within ten (10) business days after the Termination Date, or earlier if requested by the Company, Executive shall provide the Company with a computer-useable copy of all such information and then permanently delete and expunge such confidential or proprietary information from those systems. Executive agrees to provide the Company with a certification that the necessary copying and/or deletion is done.

4.3.Cooperation and Continued Compliance with Restrictive Covenants.

a)After the Termination Date, Executive shall cooperate fully with the Company, at reasonable times as agreed between Executive and the Company, in connection with its actual or contemplated defense, prosecution or investigation of any existing or future litigation, arbitrations, mediations, claims, demands, audits, government or regulatory inquiries, or other matters arising from events, acts or failures to act that occurred during the time period in which Executive was employed by the Company (including any period of employment with an entity acquired by the Company). Such cooperation includes, without limitation, being available upon reasonable notice, without subpoena, to provide accurate and complete advice, assistance and information to the Company, including offering and explaining evidence, providing truthful and accurate sworn statements, and participating in discovery and trial preparation and testimony. Executive also agrees to promptly send the Company copies of all correspondence (for example, but not limited to, subpoenas) received by Executive in connection with any such legal proceedings, unless Executive is expressly prohibited by law from so doing.  Nothing in this Agreement prohibits Executive from responding accurately and fully to any request for information if required by legal process or in connection with a government investigation.  In addition, nothing in this Agreement is intended to prohibit or restrain Executive in any manner from making disclosures that are protected under the whistleblower provisions of federal law or regulation or under other applicable law or regulation.  The Company will reimburse Executive for reasonable out-of-pocket expenses incurred in connection with any such cooperation (excluding foregone wages, salary or other compensation) within thirty (30) days of Executive’s timely presentation of appropriate documentation thereof, in accordance with the Company’s standard reimbursement policies and procedures. The Company will reasonably accommodate Executive’s scheduling needs with respect to any such cooperation after the Termination Date.

b)After the Termination Date, Executive shall continue to abide by Executive’s continuing obligations under the Confidentiality Agreement. 

c)From the Effective Date until two (2) years after the effective date of a Change in Control Termination, Covered Termination or termination for Cause, as applicable, Executive shall not, without the Company’s prior written consent: (i) directly or indirectly, in the area of neurology, be employed, under contract with or involved with any business or not-for-profit organization that is    (A) supporting patients or (B) researching, developing, manufacturing, selling or otherwise exploiting any products or technologies, that are directed towards treating rare or orphan neurological conditions or diseases and compete or might compete with products and/or services then under research or development by the Company or that are being sold by the Company; or (ii) directly or indirectly, hire or retain, or attempt to hire or retain, any of the Company’s then-existing board members, employees, advisors, consultants or agents and shall not induce any such to give up employment with or to cease providing services to the Company, and shall not otherwise interfere with, or attempt to interfere with, the relationship of any such person with the Company. 

d)Nothing in Section 4.3(c) shall prohibit Executive from investing as a less than five percent (5%) shareholder in securities of any company listed on a national securities exchange or quoted on an automated quotation system. 

 

 

e)Executive acknowledges and agrees that Executive’s obligations under this Section 4.3 are an essential part of the consideration Executive is providing hereunder in exchange for which and in reliance upon which the Company has agreed to provide the payments and benefits under this Agreement. Executive further acknowledges and agrees that Executive’s violation of this Section 4.3 inevitably would involve use or disclosure of the Company’s proprietary and confidential information.  If it is determined by a court of competent jurisdiction in any state that any restriction in this Section 4.3 is excessive in duration or scope or is unreasonable or unenforceable under the laws of that state, it is the intention of the parties that such restriction may be modified or amended by the court to render it enforceable to the maximum extent permitted by the law of that state.

4.4.Parachute Payments.

a)Parachute Payment Limitation.  If any payment or benefit (including payments and benefits pursuant to this Agreement) Executive would receive in connection with a Change in Control from the Company or otherwise (“Payment”) would (i) constitute a “parachute payment” within the meaning of Section 280G of the Code, and (ii) but for this paragraph, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then the Company shall cause to be determined, before any amounts of the Payment are paid to Executive, which of the following two alternative forms of payment shall be paid to Executive: (A) payment in full of the entire amount of the Payment (a “Full Payment”), or (B) payment of only a part of the Payment so that Executive receives the largest payment possible without the imposition of the Excise Tax (a “Reduced Payment”). A Full Payment shall be made in the event that the amount received by the Executive on a net after-tax basis is greater than what would be received by the Executive on a net after-tax basis if the Reduced Payment were made, otherwise a Reduced Payment shall be made. If a Reduced Payment is made, (i) the Payment shall be paid only to the extent permitted under the Reduced Payment alternative, and Executive shall have no rights to any additional payments and/or benefits constituting the Payment, and (ii) reduction in payments and/or benefits shall occur in the following order: (A) reduction of cash payments; (B) cancellation of accelerated vesting of equity awards other than stock options; (C) cancellation of accelerated vesting of stock options; and (D) reduction of other benefits paid to Executive. In the event that acceleration of compensation from Executive’s equity awards is to be reduced, such acceleration of vesting shall be canceled in the reverse order of the date of grant.

b)The independent registered public accounting firm engaged by the Company for general audit purposes as of the day prior to the effective date of the Change in Control shall make all determinations required to be made under this Section 4.4. If the independent registered public accounting firm so engaged by the Company is serving as accountant or auditor for the individual, entity or group effecting the Change in Control, the Company shall appoint a nationally recognized independent registered public accounting firm to make the determinations required hereunder. The Company shall bear all expenses with respect to the determinations by such independent registered public accounting firm required to be made hereunder.

c)The independent registered public accounting firm engaged to make the determinations hereunder shall provide its calculations, together with detailed supporting documentation, to the Company and Executive within fifteen (15) calendar days after the date on which Executive’s right to a Payment is triggered (if requested at that time by the Company or Executive) or such other time as requested by the Company or Executive. If the independent registered public accounting firm determines that no Excise Tax is payable with respect to a Payment, either before or after the application of the Reduced Amount, it shall furnish the Company and Executive with an opinion reasonably acceptable to Executive that no Excise Tax will be imposed with respect to such Payment. Any good faith determinations of the accounting firm made hereunder shall be final, binding and conclusive upon the Company and Executive. 

4.5.Certain Reductions and Offsets.  To the extent that any federal, state or local laws, including, without limitation, the Worker Adjustment and Retraining Notification Act or any other so-called 

 

 

“plant closing” laws, require the Company to give advance notice or make a payment of any kind to Executive because of Executive’s involuntary termination due to a layoff, reduction in force, plant or facility closing, sale of business, change in control or any other similar event or reason, the benefits payable under this Agreement shall be correspondingly reduced. The benefits provided under this Agreement are intended to satisfy any and all statutory obligations that may arise out of Executive’s involuntary termination of employment for the foregoing reasons, and the parties shall construe and enforce the terms of this Agreement accordingly.

4.6.Mitigation.  Except as otherwise specifically provided herein, Executive shall not be required to mitigate damages or the amount of any payment provided under this Agreement by seeking other employment or otherwise, nor shall the amount of any payment or benefit provided for under this Agreement be reduced by any compensation earned by Executive as a result of employment by another employer or by any retirement benefits received by Executive after the date of a Covered Termination or Change in Control Termination (except as expressly provided in Sections 2.3 and 3.3 above). 

4.7.Indebtedness of Executive.  If Executive is indebted to the Company on the effective date of a Covered Termination or Change in Control Termination Date, the Company reserves the right to offset any Severance Benefits or Change in Control Severance Benefits under this Agreement by the amount of such indebtedness, subject to the requirements of Section 409A of the Code and applicable law. 

4.8.Application of Section 409A.

a)Separation from Service.  Notwithstanding any provision to the contrary in this Agreement, no amount deemed deferred compensation subject to Section 409A of the Code shall be payable pursuant to Section 2 or Section 3 unless Executive’s termination of employment constitutes a “separation from service” with the Company within the meaning of Section 409A of the Code and the Department of Treasury Regulations and other guidance promulgated thereunder and, except as provided under Section 4.8(b) hereof, any such amount shall not be paid, or in the case of installments, commence payment, until the first regularly-scheduled payroll date occurring on or after the sixtieth (60th) day following Executive’s separation from service. Any installment payments that would have been made to Executive during the sixty (60) day period immediately following Executive’s separation from service but for the preceding sentence shall be paid to Executive on the first regularly-scheduled payroll date occurring on or after the sixtieth (60th) day after Executive’s separation from service and the remaining payments shall be made as provided in this Agreement.

b)Specified Executive.  Notwithstanding any provision to the contrary in this Agreement, if Executive is deemed at the time of his or her separation from service to be a “specified employee” for purposes of Section 409A(a)(2)(B)(i) of the Code, to the extent delayed commencement of any portion of the benefits to which Executive is entitled under this Agreement is required in order to avoid a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code, such portion of Executive’s benefits shall not be provided to Executive prior to the earlier of (i) the expiration of the six (6)-month period measured from the date of Executive’s “separation from service” with the Company (as such term is defined in the Treasury Regulations issued under Section 409A of the Code) or (ii) the date of Executive’s death. Upon the first business day following the expiration of the applicable Code Section 409A(a)(2)(B)(i) period, all payments deferred pursuant to this Section 4.8(b) shall be paid in a lump sum to Executive, and any remaining payments due under this Agreement shall be paid as otherwise provided herein.

c)Expense Reimbursements.  To the extent that any reimbursement payable pursuant to this Agreement is subject to the provisions of Section 409A of the Code, any such reimbursement payable to Executive pursuant to this Agreement shall be paid to Executive no later than December 31 of the year following the year in which the expense was incurred; the amount of expenses reimbursed in one year shall 

 

 

not affect the amount eligible for reimbursement in any subsequent year; and Executive’s right to reimbursement under this Agreement will not be subject to liquidation or exchange for another benefit.

d)Installments.  For purposes of Section 409A of the Code (including, without limitation, for purposes of Treasury Regulation Section 1.409A-2(b)(2)(iii)), Executive’s right to receive any installment payments under this Agreement shall be treated as a right to receive a series of separate payments and, accordingly, each such installment payment shall at all times be considered a separate and distinct payment.

4.9.Tax Withholding.  All payments under this Agreement shall be subject to applicable withholding for federal, state and local income and employment taxes. 

4.10.No Duplication of Severance Benefits. The Severance Benefits and Change in Control Severance Benefits provided in Section 2 and Section 3 are mutually exclusive of each other, and in no event shall Executive receive any Severance Benefits or Change in Control Severance Benefits pursuant to both Section 2 and Section 3.  

5.  TERMINATION WITH CAUSE OR BY VOLUNTARY RESIGNATION; OTHER RIGHTS AND BENEFITS

	

	

5.1.Termination for Cause; Resignation Without Good Reason; Death or Disability.  If, at any time, the Company terminates Executive’s employment with the Company for Cause, or upon a voluntary resignation by Executive that is not a Resignation for Good Reason, or Executive’s employment terminates for any reason not entitling Executive to the Severance Benefits or Change in Control Severance Benefits, or if Executive’s employment terminates as a result of Executive’s death or disability (other than a Permanent Disability in the case of a Covered Termination), then the Company shall have no further obligation to Executive hereunder except for the payment or provision, as applicable, of (i) the portion of the Annual Base Salary accrued through Executive’s last day of employment, (ii) all unreimbursed expenses (if any), subject to Sections 1.4 and 4.8(c), and (iii) any unused vacation (if applicable) accrued through Executive’s last day of employment.  Under these circumstances, Executive will not be entitled to any other form of compensation, including any Severance Benefits or Change in Control Severance Benefits, other than Executive’s rights to the vested portion of Executive’s Option and any other rights to which Executive is entitled under the Company’s benefit programs.    

5.2.Other Rights and Benefits. Nothing in this Agreement shall prevent or limit Executive’s continuing or future participation in any benefit, bonus, incentive or other plans, programs, policies or practices provided by the Company and for which Executive may otherwise qualify, nor shall anything herein limit or otherwise affect such rights as Executive may have under other agreements with the Company except as provided in Section 4 and Section 5.1 above. Except as otherwise expressly provided herein, amounts that are vested benefits or that Executive is otherwise entitled to receive under any plan, policy, practice or program of the Company at or subsequent to the date of a Change in Control shall be payable in accordance with such plan, policy, practice or program. 

6.  DEFINITIONS

For purposes of this Agreement, the following definitions shall apply: 

	

	

6.1.“Board” means the Board of Directors of the Company, or the compensation committee thereof, as determinations or responsibilities may be delegated by the Board to the compensation committee.

6.2.“Cause” shall mean a determination by the Company based upon reasonably available information of Executive’s: (i) unauthorized use or disclosure of the Company’s confidential information or trade secrets, which use or disclosure causes harm to the Company; (ii) material breach of any agreement 

 

 

to which the Executive and the Company are a party resulting in harm to the Company; (iii) failure to comply with the Company’s written policies or rules resulting in material harm to the Company; (iv) conviction of, or plea of “guilty” or “no contest” to, a felony under the laws of the United States or any State; (v) negligence or willful misconduct relating to Executive’s performance of his duties on behalf of the Company resulting in material harm to the Company; (vi) continuing failure to perform material and lawful assigned duties after receiving written notification of the failure from the CEO; (vii) failure to cooperate in good faith with a governmental or internal investigation of the Company or its directors, officers or employees, if the Company has requested Executive’s cooperation without prejudice or personal liability to Executive; (viii) violation of employee or ethical guidelines including, without limitation, violations of business practices and ethics commonly in place in similar companies in the United States; or (ix) violation of the code of conduct as stipulated and agreed to in the signed License Agreement, dated as of March 25, 2015, with H. Lundbeck A/S. With respect to clause (vi), Executive will be given written notice and a 30-day period in which to cure such breach. Executive agrees that the breach of any confidentiality obligation to the Company or any subsidiary shall not be curable to any extent.

6.3.“Change in Control” means the occurrence, in a single transaction or in a series of related transactions, of any one or more of the following events:

a)Any natural person, entity or group within the meaning of Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended (“Exchange Act Person”), becomes the owner, directly or indirectly, of securities of the Company representing more than fifty percent (50%) of the combined voting power of the Company’s then outstanding securities other than by virtue of a merger, consolidation or similar transaction. Notwithstanding the foregoing, a Change in Control shall not be deemed to occur (i) on account of the acquisition of securities of the Company by any institutional investor, any affiliate thereof or any other Exchange Act Person that acquires the Company’s securities in a transaction or series of related transactions that are primarily a private financing transaction for the Company or (ii) solely because the level of ownership held by any Exchange Act Person (the “Subject Person”) exceeds the designated percentage threshold of the outstanding voting securities as a result of a repurchase or other acquisition of voting securities by the Company reducing the number of shares outstanding, provided that if a Change in Control would occur (but for the operation of this sentence) as a result of the acquisition of voting securities by the Company, and after such share acquisition, the Subject Person becomes the owner of any additional voting securities that, assuming the repurchase or other acquisition had not occurred, increases the percentage of the then outstanding voting securities owned by the Subject Person over the designated percentage threshold, then a Change in Control shall be deemed to occur;

b)There is consummated a merger, consolidation or similar transaction involving, directly or indirectly, the Company if, immediately after the consummation of such merger, consolidation or similar transaction, the stockholders of the Company immediately prior thereto do not own, directly or indirectly, either (i) outstanding voting securities representing more than fifty percent (50%) of the combined outstanding voting power of the surviving entity in such merger, consolidation or similar transaction or (ii) more than fifty percent (50%) of the combined outstanding voting power of the parent of the surviving entity in such merger, consolidation or similar transaction; or

c)There is consummated a sale, lease, license or other disposition of all or substantially all of the consolidated assets of the Company and its subsidiaries, other than a sale, lease, license or other disposition of all or substantially all of the consolidated assets of the Company and its subsidiaries to an entity, more than fifty percent (50%) of the combined voting power of the voting securities of which are owned by stockholders of the Company in substantially the same proportion as their ownership of the Company immediately prior to such sale, lease, license or other disposition. 

The term Change in Control shall not include a sale of assets, merger or other transaction effected exclusively for the purpose of changing the domicile of the Company. Notwithstanding the foregoing or 

 

 

any other provision of this Agreement, the definition of Change in Control (or any analogous term) in an individual written agreement between the Company or any affiliate and the participant shall supersede the foregoing definition with respect to stock awards subject to such agreement (it being understood, however, that if no definition of Change in Control or any analogous term is set forth in such an individual written agreement, the foregoing definition shall apply). 

6.4.“Change in Control Benefits Period” means the period of twenty-four (24) months commencing on the Termination Date. 

6.5.“Change in Control Severance Period” means the period of twenty-four (24) months commencing on the Termination Date. 

6.6. “Change in Control Termination” means an “Involuntary Termination Without Cause” or “Resignation for Good Reason,” either of which occurs within three (3) months prior to or upon or within twelve (12) months following the closing of a Change in Control or Dissolution Event, provided that any such termination is a “separation from service” within the meaning of Treasury Regulation Section 1.409A-1(h).  Death and disability shall not be deemed Change in Control Terminations. 

6.7.“COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended.

6.8.“Code” means the Internal Revenue Code of 1986, as amended.

6.9.“Company” means Ovid Therapeutics Inc. or, following a Change in Control, the surviving entity resulting from such transaction, or any subsequent surviving entity resulting from any subsequent Change in Control.

6.10.“Confidentiality Agreement” means Executive’s Confidential Information and Invention Assignment Agreement with the Company, dated June 22, 2015 (or any successor agreement thereto).

6.11. “Covered Termination” means an “Involuntary Termination Without Cause” or “Resignation for Good Reason,” provided that any such termination is a “separation from service” within the meaning of Treasury Regulation Section 1.409A-1(h). Death and disability, other than a Permanent Disability, shall not be deemed Covered Terminations.  If an Involuntary Termination Without Cause or Resignation for Good Reason qualifies as a Change in Control Termination, it shall not constitute a Covered Termination.    

6.12.“Covered Termination Benefits Period” means the period of twenty-four (24) months commencing on the Termination Date.

6.13.“Covered Termination Severance Period” means the period of twenty-four (24) months commencing on the Termination Date.

6.14.“Dissolution Event” means the stockholders of the Company approve or the Board approves a plan of complete dissolution or liquidation of the Company, or a complete dissolution or liquidation of the Company shall otherwise occur.

6.15.“Involuntary Termination Without Cause” means Executive’s dismissal or discharge by the Company for reasons other than Cause and other than as a result of death or disability; provided, however, that for purposes of a Covered Termination, Involuntary Termination Without Cause shall include Executive’s dismissal or discharge by the Company for reasons of Permanent Disability. 

 

 

6.16.“IPO” means the Company’s first firm commitment underwritten public offering of its common stock pursuant to a registration statement on Form S-1 filed with the U.S. Securities and Exchange Commission under the Securities Act of 1933, as amended.

6.17.“Monthly Base Salary” means 1/12th of Executive’s Annual Base Salary (excluding incentive pay, premium pay, commissions, overtime, bonuses and other forms of variable compensation) as in effect on the date of a Covered Termination or Change in Control Termination.

6.18.“Permanent Disability” means total and permanent disability as defined in Code Section 22(e)(3). 

6.19.“Pro-Rata Bonus” means 1/12th of the Target Performance Bonus paid to Executive for the calendar year preceding the calendar year in which a Covered Termination or Change in Control Termination occurs.

6.20.“Resignation for Good Reason” means Executive’s resignation from all employee positions Executive then holds with the Company within ninety (90) days following any of the following events taken without Executive’s consent, provided Executive has given the Company written notice of such event within thirty (30) days after the first occurrence of such event and the Company has not cured such event within thirty (30) days thereafter:

a)A material decrease in Executive’s Annual Base Salary, other than in connection with a decrease in compensation for all comparable executives of the Company; 

b)Executive’s duties or responsibilities are materially diminished or Executive no longer reports directly to the CEO; provided that Executive shall not be deemed to have a “Resignation for Good Reason” if the Company survives as a separate legal entity or business unit following the Change in Control and Executive holds materially the same position in such legal entity or business unit as Executive held before the Change in Control; 

c)A relocation of Executive’s principal place of work outside of a fifty (50) mile radius of its current location; 

d)Executive’s title is changed other than in connection with a promotion; or

e)The Company’s material breach of this Agreement.  

6.21.“Termination Date” means the effective date of a Covered Termination, a Change in Control Termination, a termination for Cause or any other circumstance under which the employment relationship between Executive and the Company terminates, as applicable. 

7.  GENERAL PROVISIONS

	

	

7.1.Employment Status.  This Agreement does not constitute a contract of employment or impose upon Executive any obligation to remain as an employee, or impose on the Company any obligation (i) to retain Executive as an employee, (ii) to change the status of Executive as an at-will employee or (iii) to change the Company’s policies regarding termination of employment.

7.2.Notices.  Any notices provided hereunder must be in writing, and such notices or any other written communication shall be deemed effective upon the earlier of personal delivery (including personal delivery by facsimile or email transmission (to a facsimile number or email address designated in advance by the receiving party)) or the third day after mailing by first class mail, to the Company at its primary office location and to Executive at Executive’s address as listed in the Company’s payroll records. Any 

 

 

payments made by the Company to Executive under the terms of this Agreement shall be delivered to Executive either in person or at the address as listed in the Company’s payroll records.

7.3.Severability.  Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is determined to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision or any other jurisdiction, and the provision in question shall be modified so as to be rendered enforceable in a manner consistent with the intent of the parties insofar as possible under applicable law. 

7.4.Waiver.  If either party should waive any breach of any provisions of this Agreement, he, she or it shall not thereby be deemed to have waived any preceding or succeeding breach of the same or any other provision of this Agreement. 

7.5.Complete Agreement.  This Agreement, together with Exhibits A and B, the Confidentiality Agreement and the Indemnification Agreement, forms the complete and exclusive statement of Executive’s employment agreement with the Company, and supersedes and replaces any other agreements or promises made to Executive by anyone, whether oral or written (including but not limited to the Prior Agreement).  

7.6.Amendment or Termination of Agreement; Continuation of Agreement.  Except for those changes expressly reserved to the Company’s or the Board’s discretion in this Agreement, this Agreement may be changed or terminated only upon the mutual written consent of the Company and Executive. The written consent of the Company to a change or termination of this Agreement must be signed by an executive officer of the Company (other than Executive) after such change or termination has been approved by the Board.  Unless so terminated, this Agreement shall continue in effect for as long as Executive continues to be employed by the Company or by any surviving entity following any Change in Control. In other words, if, following a Change in Control, Executive continues to be employed by the surviving entity without a Change in Control Termination and the surviving entity then undergoes a Change in Control, following which Executive is terminated by the subsequent surviving entity in a Change in Control Termination, then Executive shall receive the benefits described in Section 3 hereof.

7.7.Counterparts.  This Agreement may be executed in separate counterparts, any one of which need not contain signatures of more than one party, but all of which taken together will constitute one and the same Agreement.  Facsimile and electronic image copies of signatures shall be equivalent to original signatures.  

7.8.Headings.  The headings of the Sections hereof are inserted for convenience only and shall not be deemed to constitute a part hereof nor to affect the meaning thereof.

7.9.Successors and Assigns.  This Agreement is intended to bind and inure to the benefit of and be enforceable by Executive, and the Company, and any surviving entity resulting from a Change in Control and upon any other person who is a successor by merger, acquisition, consolidation or otherwise to the business formerly carried on by the Company, and their respective successors, assigns, heirs, executors and administrators, without regard to whether or not such person actively assumes any rights or duties hereunder; provided, however, that Executive may not assign any duties hereunder and may not assign any rights hereunder without the written consent of the Company, which consent shall not be withheld unreasonably.

7.10.Choice of Law.  This Agreement shall be construed and enforced in accordance with the laws of the State of New York without regard to conflicts of law principles. 

 

 

7.11.Arbitration.  To ensure the rapid and economical resolution of any disputes that may arise under or relate to this Agreement or Executive’s employment relationship, Executive and the Company agree that any and all disputes, claims, or causes of action, in law or equity, arising from or relating to the performance, enforcement, execution, or interpretation of this Agreement, Executive’s employment with the Company, or the termination of Executive’s employment (collectively, “Claims”), shall be resolved by final, binding, and (to the extent permitted by law) confidential arbitration before a single arbitrator in New York, New York.  The arbitration shall be governed by the Federal Arbitration Act, 9 U.S.C. Section 1 et seq., as amended, and shall be administered by the Judicial Arbitration & Mediation Services, Inc. (“JAMS”), in accordance with its then-current Employment Arbitration Rules & Procedures (the “JAMS Rules”).  The JAMS Rules are available online at http://www.jamsadr.com/rules-employment-arbitration/.   The parties or their representatives may also call JAMS at 800.352.5267 if they have questions about the arbitration process.   If the JAMS Rules are inconsistent with the terms of this Agreement, the terms of this Agreement shall govern.  Notwithstanding the foregoing, this provision shall exclude Claims that by law are not subject to arbitration.  The arbitrator shall:   (a) have the authority to compel adequate discovery for the resolution of all Claims and to award such relief as would otherwise be permitted by law; and (b) issue a written arbitration decision including the arbitrator’s essential findings and conclusions and a statement of the award.  The Company shall pay all JAMS fees in excess of the amount of filing and other court-related fees Executive would have been required to pay if the Claims were asserted in a court of law.   EXECUTIVE AND THE COMPANY UNDERSTAND AND FULLY AGREE THAT BY ENTERING INTO THIS AGREEMENT, BOTH EXECUTIVE AND THE COMPANY ARE GIVING UP THE CONSTITUTIONAL RIGHT TO HAVE A TRIAL BY JURY, AND ARE GIVING UP THE NORMAL RIGHTS OF APPEAL FOLLOWING THE RENDERING OF A DECISION, EXCEPT AS THE FEDERAL ARBITRATION ACT AND APPLICABLE FEDERAL LAW ALLOW FOR JUDICIAL REVIEW OF ARBITRATION PROCEEDINGS. Nothing in this Agreement shall prevent either Executive or the Company from obtaining injunctive relief in court to prevent irreparable harm pending the conclusion of any such arbitration.  Any awards or final orders in such arbitrations may be entered and enforced as judgments or orders in the federal and state courts of any competent jurisdiction in compliance with Section 7.11 of this Agreement.

7.12.Construction of Agreement.  In the event of a conflict between the text of this Agreement and any summary, description or other information regarding this Agreement, the text of this Agreement shall control.

 

 

 

 

 

 

 

7.13.Circular 230 Disclaimer.  THE FOLLOWING DISCLAIMER IS PROVIDED IN ACCORDANCE WITH THE INTERNAL REVENUE SERVICE’S CIRCULAR 230 (21 C.F.R. PART 10). ANY TAX ADVICE CONTAINED IN THIS AGREEMENT IS INTENDED TO BE PRELIMINARY, FOR DISCUSSION PURPOSES ONLY AND NOT FINAL. ANY SUCH ADVICE IS NOT INTENDED TO BE USED FOR MARKETING, PROMOTING OR RECOMMENDING ANY TRANSACTION OR FOR THE USE OF ANY PERSON IN CONNECTION WITH THE PREPARATION OF ANY TAX RETURN. ACCORDINGLY, THIS ADVICE IS NOT INTENDED OR WRITTEN TO BE USED, AND IT CANNOT BE USED, BY ANY PERSON FOR THE PURPOSE OF AVOIDING TAX PENALTIES THAT MAY BE IMPOSED ON SUCH PERSON.

 

REVIEWED, UNDERSTOOD AND ACCEPTED: 

 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
OVID THERAPEUTICS INC.
	
 
	
 
	
 
	
 
	
 
	
EXECUTIVE

	
 
	
 
	
 
	
 
	
 

	
 

By:
	
 
	
 

/s/ Jeremy Levin
	
 
	
 
	
 
	
 
	
By: 
	
 

/s/ Yaron Werber

	
Name:
	
 
	
Jeremy Levin
	
 
	
 
	
 
	
 
	
Name: 
	
Yaron Werber

	
Title:
	
 
	
Chief Executive Officer
	
 
	
 
	
 
	
 

Exhibit A:Release (Individual Termination – Age 40 or Older) 

Exhibit B:Release (Group Termination – Age 40 or Older) 

 

 

Exhibit 10.2

 

EXHIBIT A

 

RELEASE

(INDIVIDUAL TERMINATION – AGE 40 OR OLDER)

Certain capitalized terms used in this Release are defined in the Amended and Restated Executive Employment Agreement between me and Ovid Therapeutics Inc. (the “Company”) (the “Agreement”), which I have executed and of which this Release is a part. 

I hereby acknowledge and reaffirm my continuing obligations under the Confidentiality Agreement.

In exchange for the consideration provided to me under the Agreement, to which I would not otherwise be entitled, I hereby generally and completely release the Company, its parents and subsidiaries, and its and their current and former officers, directors, agents, servants, employees, shareholders, partners, attorneys, insurers, predecessors, successors, assigns and affiliates (collectively, the “Released Parties”) from any and all claims, liabilities and obligations, both known and unknown, that arise out of or are in any way related to events, acts, conduct or omissions occurring prior to or on the date I sign this Release (collectively, the “Released Claims”).  The Released Claims include but are not limited to: (A) all claims arising out of or in any way related to my employment with the Company, or the termination of that employment; (B) all claims related to compensation or benefits from the Company, including salary, bonuses, commissions, vacation, paid time off, expense reimbursements, severance pay, fringe benefits, stock, stock options, or any other ownership, equity or profits interests in the Company; (C) all claims for breach of contract, wrongful termination and breach of the implied covenant of good faith and fair dealing; (D) all tort claims, including claims for fraud, defamation, emotional distress and discharge in violation of public policy; and (E) all federal, state and local statutory claims, including claims for discrimination, harassment, retaliation, attorneys’ fees or other claims arising under the federal Civil Rights Act of 1964, the federal Americans with Disabilities Act of 1990, the federal Age Discrimination in Employment Act of 1967 (the “ADEA”), the New York Human Rights Laws, the New York City Human Rights Law, the New York Civil Rights Act, the New York Minimum Wage Law, the Equal Pay Law for New York, the Massachusetts Wage Act and the Massachusetts Fair Employment Practices Act.

I acknowledge that I am knowingly and voluntarily waiving and releasing any rights I may have under the ADEA, and that the consideration given for the waiver and release in this Release is in addition to anything of value to which I am already entitled.  I further acknowledge that I have been advised, as required by the ADEA, that: (A) my waiver and release do not apply to any rights or claims that may arise after the date that I sign this Release; (B) I should consult with an attorney prior to signing this Release (although I may choose voluntarily to sign it earlier); (C) I have twenty-one (21) days to consider this Release (although I may choose voluntarily to sign it earlier); (D) I have seven (7) days following the date I sign this Release to revoke it (by providing written notice of my revocation to the CEO); and (E) this Release shall not be effective until the date upon which the revocation period has expired, which shall be the eighth (8th) day after the date that I sign this Release provided that I do not revoke it. 

I UNDERSTAND THAT THIS RELEASE INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS, EVEN THOSE CLAIMS THAT, IF KNOWN BY ME, WOULD AFFECT MY DECISION TO ACCEPT THIS AGREEMENT.  In giving the releases set forth in this Release, which include claims which may be unknown to me at present, I hereby expressly waive and relinquish all rights and benefits under any law or legal principle of similar effect in any jurisdiction with 

A-1

  

        

      

143405662 v2 

 

respect to my release of claims herein, including but not limited to the release of unknown and unsuspected claims.

Notwithstanding the foregoing, I understand that the following are not included in the Released Claims (the “Excluded Claims”): (i) any rights or claims for indemnification I may have pursuant to any written indemnification agreement with the Company to which I am a party or under applicable law; (ii) any rights which cannot be waived as a matter of law; (iii) any rights I have to file or pursue a claim for workers’ compensation or unemployment insurance; and (iv) any claims for breach of this Agreement. In addition, nothing in this Release shall prevent me from filing, cooperating with or participating in any proceeding before any federal, state or other government agency, except that I acknowledge and agree and hereby waive my right to any monetary benefits in connection with any such claim, charge or proceeding before the Equal Employment Opportunity Commission, the Department of Labor, or any analogous federal, state or other government agency with regard to any claim released herein.  I represent that, other than the Excluded Claims, I am not aware of any claims I have or might have against any of the Released Parties that are not included in the Released Claims.

I hereby represent that I have been paid all compensation owed and for all time worked; I have received all the leave and leave benefits and protections for which I am eligible pursuant to the federal Family and Medical Leave Act, any applicable law or Company policy; and I have not suffered any on-the-job injury or illness for which I have not already filed a workers’ compensation claim. 

I agree not to disparage the Company, and the Company’s officers, directors, employees, shareholder, members and agents, in any manner likely to be harmful to them or their business, business reputation or personal reputation.  Similarly, I understand that the Company agrees to direct its directors and officers not to disparage me in any manner likely to be harmful to my business reputation or personal reputation.  Nothing in this provision, however, shall prevent either me or the Company from responding accurately and fully to any request for information if required by legal process or in connection with a government investigation.  In addition, nothing in this provision or this Release is intended to prohibit or restrain me in any manner from making disclosures that are protected under the whistleblower provisions of federal law or regulation or under other applicable law or regulation. 

 

EXECUTIVE:

 

  

Signature

 

  

Printed Name

 

 

Date:  

 

A-2

  

        

      

143405662 v2 

Exhibit 10.2

 

EXHIBIT B

 

RELEASE

 (GROUP TERMINATION – AGE 40 OR OLDER)

Certain capitalized terms used in this Release are defined in the Amended and Restated Executive Employment Agreement between me and Ovid Therapeutics Inc. (the “Company”) (the “Agreement”), which I have executed and of which this Release is a part. 

I hereby acknowledge and reaffirm my continuing obligations under the Confidentiality Agreement.

In exchange for the consideration provided to me under the Agreement, to which I would not otherwise be entitled, I hereby generally and completely release the Company, its parents and subsidiaries, and its and their current and former officers, directors, agents, servants, employees, shareholders, partners, attorneys, insurers, predecessors, successors, assigns and affiliates (collectively, the “Released Parties”) from any and all claims, liabilities and obligations, both known and unknown, that arise out of or are in any way related to events, acts, conduct or omissions occurring prior to or on the date I sign this Release (collectively, the “Released Claims”).  The Released Claims include but are not limited to: (A) all claims arising out of or in any way related to my employment with the Company, or the termination of that employment; (B) all claims related to compensation or benefits from the Company, including salary, bonuses, commissions, vacation, paid time off, expense reimbursements, severance pay, fringe benefits, stock, stock options, or any other ownership, equity or profits interests in the Company; (C) all claims for breach of contract, wrongful termination and breach of the implied covenant of good faith and fair dealing; (D) all tort claims, including claims for fraud, defamation, emotional distress and discharge in violation of public policy; and (E) all federal, state and local statutory claims, including claims for discrimination, harassment, retaliation, attorneys’ fees or other claims arising under the federal Civil Rights Act of 1964, the federal Americans with Disabilities Act of 1990, the federal Age Discrimination in Employment Act of 1967 (the “ADEA”), the New York Human Rights Laws, the New York City Human Rights Law, the New York Civil Rights Act, the New York Minimum Wage Law, the Equal Pay Law for New York, the Massachusetts Wage Act and the Massachusetts Fair Employment Practices Act.

I acknowledge that I am knowingly and voluntarily waiving and releasing any rights I may have under the ADEA, and that the consideration given for the waiver and release in this Release is in addition to anything of value to which I am already entitled.  I further acknowledge that I have been advised, as required by the ADEA, that: (A) my waiver and release do not apply to any rights or claims that may arise after the date that I sign this Release; (B) I should consult with an attorney prior to signing this Release (although I may choose voluntarily to sign it earlier); (C) I have forty-five (45) days to consider this Release (although I may choose voluntarily to sign it earlier); (D) I have seven (7) days following the date I sign this Release to revoke it (by providing written notice of my revocation to the CEO); and (E) this Release shall not be effective until the date upon which the revocation period has expired, which shall be the eighth (8th) day after the date that I sign this Release provided that I do not revoke it.  I further acknowledge that the Company has provided me with ADEA disclosure information (under 29 U.S.C. § 626(f)(1)(H)). 

I UNDERSTAND THAT THIS RELEASE INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS, EVEN THOSE CLAIMS THAT, IF KNOWN BY ME, WOULD AFFECT MY DECISION TO ACCEPT THIS AGREEMENT.  In giving the releases set forth in this Release, which include claims which may be unknown to me at present, I hereby expressly waive and 

B-1

  

        

      

143405662 v2 

 

relinquish all rights and benefits under any law or legal principle of similar effect in any jurisdiction with respect to my release of claims herein, including but not limited to the release of unknown and unsuspected claims.

Notwithstanding the foregoing, I understand that the following are not included in the Released Claims (the “Excluded Claims”): (i) any rights or claims for indemnification I may have pursuant to any written indemnification agreement with the Company to which I am a party or under applicable law; (ii) any rights which cannot be waived as a matter of law; (iii) any rights I have to file or pursue a claim for workers’ compensation or unemployment insurance; and (iv) any claims for breach of this Agreement. In addition, nothing in this Release shall prevent me from filing, cooperating with or participating in any proceeding before any federal, state or other government agency, except that I acknowledge and agree and hereby waive my right to any monetary benefits in connection with any such claim, charge or proceeding before the Equal Employment Opportunity Commission, the Department of Labor, or any analogous federal, state or other government agency with regard to any claim released herein.  I represent that, other than the Excluded Claims, I am not aware of any claims I have or might have against any of the Released Parties that are not included in the Released Claims.

I hereby represent that I have been paid all compensation owed and for all time worked; I have received all the leave and leave benefits and protections for which I am eligible pursuant to the federal Family and Medical Leave Act, any applicable law or Company policy; and I have not suffered any on-the-job injury or illness for which I have not already filed a workers’ compensation claim. 

I agree not to disparage the Company, and the Company’s officers, directors, employees, shareholder, members and agents, in any manner likely to be harmful to them or their business, business reputation or personal reputation.  Similarly, I understand that the Company agrees to direct its directors and officers not to disparage me in any manner likely to be harmful to my business reputation or personal reputation.  Nothing in this provision, however, shall prevent either me or the Company from responding accurately and fully to any request for information if required by legal process or in connection with a government investigation.  In addition, nothing in this provision or this Release is intended to prohibit or restrain me in any manner from making disclosures that are protected under the whistleblower provisions of federal law or regulation or under other applicable law or regulation.  

 

EXECUTIVE:

 

  

Signature

 

  

Printed Name

 

 

Date:  

B-2

  

        

  

143405662 v2EXHIBIT
10.72

 

NEITHER
THIS NOTE NOR THE SECURITIES THAT MAY BE ISSUED BY THE COMPANY UPON CONVERSION HEREOF (COLLECTIVELY, THE “SECURITIES”)
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR THE SECURITIES LAWS OF ANY
STATE OR OTHER JURISDICTION. NEITHER THE SECURITIES NOR ANY INTEREST OR PARTICIPATION THEREIN MAY BE OFFERED FOR SALE, SOLD, TRANSFERRED
OR ASSIGNED: (i) IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE 1933 ACT, OR APPLICABLE STATE
SECURITIES LAWS; OR (ii) IN THE ABSENCE OF AN OPINION OF COUNSEL, IN A FORM ACCEPTABLE TO THE ISSUER, THAT REGISTRATION IS NOT
REQUIRED UNDER THE 1933 ACT OR; (iii) UNLESS SOLD, TRANSFERRED OR ASSIGNED PURSUANT TO RULE 144 UNDER THE 1933 ACT.

 

12%
CONVERTIBLE PROMISSORY NOTE

 

Maturity
Date of April 6, 2019 *the “Maturity Date”

 

$113,000
April 6, 2018 *the “Issuance Date”

 

FOR
VALUE RECEIVED, ProGreen US, Inc., a Delaware Corporation (the “Company”) doing business in Bloomfield Township, MI,
hereby promises to pay to the order of JSJ Investments Inc., an accredited investor and Texas Corporation, or its assigns (the
“Holder”), the principal amount of One Hundred and Thirteen Thousand Dollars ($113,000) (“Note”), on demand
of the Holder at any time on or after April 6, 2019 (the “Maturity Date”), and to pay interest on the unpaid principal
balance hereof at the rate of Twelve Percent (12%) per annum (the “Interest Rate”) commencing on the date hereof (the
“Issuance Date”).

 

	 	1.	Payments
    of Principal and Interest.

 

	 	a.	Pre-Payment
    and Payment of Principal and Interest. The Company may pay this Note in full, together with any and all accrued and unpaid
    interest, plus any applicable pre-payment premium set forth herein and subject to the terms of this Section 1.a, at any time
    on or prior to the date which occurs 180 days after the Issuance Date hereof (the “Prepayment Date”). In the event
    the Note is not prepaid in full on or before the Prepayment Date, it shall be deemed a “Pre-Payment Default” hereunder.
    Until the Ninetieth (90th) day after the Issuance Date the Company may pay the principal at a cash redemption premium of 120%,
    in addition to outstanding interest, without the Holder’s consent; from the 91st day to the Prepayment Date, the Company
    may pay the principal at a cash redemption premium of 125%, in addition to outstanding interest, without the Holder’s
    consent. After the Prepayment Date up to the Maturity Date this Note shall have a cash redemption premium of 135% of the then
    outstanding principal amount of the Note, plus accrued interest and Default Interest, if any, which may only be paid by the
    Company upon Holder’s prior written consent. At any time on or after the Maturity Date, the Company may repay the then
    outstanding principal plus accrued interest and Default Interest (defined below), if any, to the Holder.
	 	 	 
	 	b.	Demand
    of Repayment. The principal and interest balance of this Note shall be paid to the Holder hereof on demand by the Holder at
    any time on or after the Maturity Date. The Default Amount (defined herein), if applicable, shall be paid to Holder hereof
    on demand by the Holder at any time such Default Amount becomes due and payable to Holder.
	 	 	 
	 	c.	Interest.
    This Note shall bear interest (“Interest”) at the rate of Twelve Percent (12%) per annum from the Issuance Date
    until the same is paid, or otherwise converted in accordance with Section 2 below, in full and the Holder, at the Holder’s
    sole discretion, may include any accrued but unpaid Interest in the Conversion Amount. Interest shall commence accruing on
    the Issuance Date, shall be computed on the basis of a 365-day year and the actual number of days elapsed and shall accrue
    daily and, after the Maturity Date, compound quarterly. Upon an Event of Default, as defined in Section 10 below, the Interest
    Rate shall increase to Eighteen Percent (18%) per annum for so long as the Event of Default is continuing (“Default
    Interest”).
	 	 	 
	 	d.	General
    Payment Provisions. This Note shall be paid in lawful money of the United States of America by check or wire transfer to such
    account as the Holder may from time to time designate by written notice to the Company in accordance with the provisions of
    this Note. Whenever any amount expressed to be due by the terms of this Note is due on any day which is not a Business Day
    (as defined below), the same shall instead be due on the next succeeding day which is a Business Day and, in the case of any
    interest payment date which is not the date on which this Note is paid in full, the extension of the due date thereof shall
    not be taken into account for purposes of determining the amount of interest due on such date. For purposes of this Note,
    “Business Day” shall mean any day other than a Saturday, Sunday or a day on which commercial banks in the State
    of Texas are authorized or required by law or executive order to remain closed.

 

    	 	 	 

     

    

 

	 	2.	Conversion
    of Note. At any time after the Prepayment Date, the Conversion Amount (see Paragraph 2(a)(i)) of this Note shall be convertible
    into shares of the Company’s common stock (the “Common Stock”) according to the terms and conditions set
    forth in this Paragraph 2.

 

	 	a.	Certain
    Defined Terms. For purposes of this Note, the following terms shall have the following meanings:

 

	 	i.	“Conversion
    Amount” means the sum of (a) the principal amount of this Note to be converted with respect to which this determination
    is being made, (b) Interest; and (c) Default Interest, if any, if so included at the Holder’s sole discretion. 
	 	 	 
	 	ii.	“Conversion
    Price” means a 45% discount to the average of the two lowest trading prices during the previous twenty (20) trading
    days to the date of a Conversion Notice. For the avoidance of doubt, if the stock price trades twice at 0.02 on the same day,
    then the conversion price shall be a 45% discount to 0.02.
	 	 	 
	 	iii.	“Person”
    means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated
    organization and a government or any department or agency thereof.
	 	 	 
	 	iv.	“Shares”
    means the Shares of the Common Stock of the Company into which any balance on this Note may be converted upon submission of
    a “Conversion Notice” to the Company substantially in the form attached hereto as Exhibit 1.

 

	 	b.	Holder’s
    Conversion Rights. At any time after the Prepayment Date, the Holder shall be entitled to convert all of the outstanding and
    unpaid principal and accrued interest of this Note into fully paid and non-assessable shares of Common Stock in accordance
    with the stated Conversion Price. The Holder shall not be entitled to convert on a Conversion Date that amount of the Note
    in connection with that number of shares of Common Stock which would be in excess of the sum of the number of shares of Common
    Stock issuable upon the conversion of the Note with respect to which the determination of this provision is being made on
    a Conversion Date, which would result in beneficial ownership by the Holder and its affiliates of more than 4.99% of the outstanding
    shares of Common Stock of the Company on such Conversion Date. For the purposes of the provision to the immediately preceding
    sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934,
    as amended, and Regulation 13d-3 thereunder. Subject to the foregoing, the Holder shall not be limited to aggregate conversions
    of 4.99% (“Conversion Limitation 1”). The Holder shall have the authority to determine whether the restriction
    contained in this Section 2(b) will limit any conversion hereunder, and accordingly, the Holder may waive the conversion
    limitation described in this Section 2(b), in whole or in part, upon and effective after 61 days prior written notice
    to the Company to increase or decrease such percentage to any other amount as determined by Holder in its sole discretion
    (“Conversion Limitation 2”).
	 	 	 
	 	c.	Fractional
    Shares. The Company shall not issue any fraction of a share of Common Stock upon any conversion; if such issuance would result
    in the issuance of a fraction of a share of Common Stock, the Company shall round such fraction of a share of Common Stock
    up to the nearest whole share except in the event that rounding up would violate the conversion limitation set forth in section
    2(b) above.
	 	 	 
	 	d.	Conversion
    Amount. The Conversion Amount shall be converted pursuant to Rule 144(b)(1)(ii) and Rule 144(d)(1)(ii) as promulgated by the
    Securities and Exchange Commission under the Securities Act of 1933, as amended, into unrestricted shares at the Conversion
    Price. 
	 	 	 
	 	e.	Mechanics
    of Conversion. The conversion of this Note shall be conducted in the following manner:

 

	 	i.	Holder’s
    Conversion Requirements. To convert this Note into shares of Common Stock on any date set forth in the Conversion Notice by
    the Holder (the “Conversion Date”), the Holder shall transmit by email, facsimile or otherwise deliver, for receipt
    on or prior to 11:59 p.m., Eastern Time, on such date or on the next business day, a copy of a fully executed notice of conversion
    in the form attached hereto as Exhibit 1 to the Company.
	 	 	 
	 	ii.	Company’s
    Response. Upon receipt by the Company of a copy of a Conversion Notice, the Company shall as soon as practicable, but in no
    event later than one (1) Business Day after receipt of such Conversion Notice, send, via email, facsimile or overnight courier,
    a confirmation of receipt of such Conversion Notice to such Holder indicating that the Company will process such Conversion
    Notice in accordance with the terms herein. Within two (2) Business Days after the date the Conversion Notice is delivered,
    the Company shall have issued and electronically transferred the shares to the Broker indicated in the Conversion Notice;
    should the Company be unable to transfer the shares electronically, it shall, within two (2) Business Days after the date
    the Conversion Notice was delivered, have surrendered to an overnight courier for delivery the next day to the address as
    specified in the Conversion Notice, a certificate, registered in the name of the Holder, for the number of shares of Common
    Stock to which the Holder shall be entitled.

 

    	 	 	 

     

    

 

	 	iii.	Record
    Holder. The person or persons entitled to receive the shares of Common Stock issuable upon a conversion of this Note shall
    be treated for all purposes as the record holder or holders of such shares of Common Stock on the Conversion Date.
	 	 	 
	 	iv.	Timely
    Response by Company. Upon receipt by Company of a Conversion Notice, Company shall respond within one business day to Holder
    confirming the details of the Conversion, and provide within two business days the Shares requested in the Conversion Notice.
    
	 	 	 
	 	v.	Liquidated
    Damages for Delinquent Response. If the Company fails to deliver for whatever reason (including any neglect or failure by,
    e.g., the Company, its counsel or the transfer agent) to Holder the Shares as requested in a Conversion Notice within
    three (3) business days of the Conversion Date, the Company shall be deemed in “Default of Conversion.” Beginning
    on the fourth (4th) business day after the date of the Conversion Notice, after the Company is deemed in Default
    of Conversion, there shall accrue liquidated damages (the “Conversion Damages”) of $2,000 per day for each day
    after the third business day until delivery of the Shares is made, and such penalty will be added to the Note being converted
    (under the Company’s and Holder’s expectation and understanding that any penalty amounts will tack back to the
    Issuance Date of the Note). The Parties agree that, at the time of drafting of this Note, the Holder’s damages as to
    the delinquent response are incapable or difficult to estimate and that the liquidated damages called for is a reasonable
    forecast of just compensation. 
	 	 	 
	 	vi.	Liquidated
    Damages for Inability to Issue Shares. If the Company fails to deliver Shares requested by a Conversion Notice due to an exhaustion
    of authorized and issuable common stock such that the Company must increase the number of shares of authorized Common Stock
    before the Shares requested may be issued to the Holder, the discount set forth in the Conversion Price will be increased
    by 5 percentage points (i.e. from 40% to 45%) for the Conversion Notice in question and all future Conversion Notices until
    the outstanding principal and interest of the Note is converted or paid in full. These liquidated damages shall not render
    the penalties prescribed by Paragraph 2(e)(v) void, and shall be applied in conjunction with Paragraph 2(e)(v) unless otherwise
    agreed to in writing by the Holder. The Parties agree that, at the time of drafting of this Note, the Holder’s damages
    as to the inability to issue shares are incapable or difficult to estimate and that the liquidated damages called for is a
    reasonable forecast of just compensation. 
	 	 	 
	 	vii.	Rescindment
    of Conversion Notice. If: (i) the Company fails to respond to Holder within one business day from the date of delivery of
    a Conversion Notice confirming the details of the Conversion, (ii) the Company fails to provide the Shares requested in the
    Conversion Notice within three business days from the date of the delivery of the Conversion Notice, (iii) the Holder is unable
    to procure a legal opinion required to have the Shares issued unrestricted and/or deposited to sell for any reason related
    to the Company’s standing with the SEC or FINRA, or any action or inaction by the Company, (iv) the Holder is unable
    to deposit the Shares requested in the Conversion Notice for any reason related to the Company’s standing with the SEC
    or FINRA, or any action or inaction by the Company, (v) if the Holder is informed that the Company does not have the authorized
    and issuable Shares available to satisfy the Conversion, or (vi) if OTC Markets changes the Company’s designation to
    ‘Limited Information’ (Yield), ‘No Information’ (Stop Sign), ‘Caveat Emptor’ (Skull and
    Crossbones), or ‘OTC’, ‘Other OTC’ or ‘Grey Market’ (Exclamation Mark Sign) on the day
    of or any day after the date of the Conversion Notice, the Holder maintains the option and sole discretion to rescind the
    Conversion Notice (“Rescindment”) by delivering a notice of rescindment to the Company in the same manner that
    a Conversion Notice is required to be delivered to the Company pursuant to the terms of this Note.
	 	 	 
	 	viii.	Transfer
    Agent Fees and Legal Fees. The issuance of the certificates shall be without charge or expense to the Holder. The Company
    shall pay any and all Transfer Agent fees, legal fees, and advisory fees required for execution of this Note and processing
    of any Notice of Conversion, including but not limited to the cost of obtaining a legal opinion with regard to the Conversion.
    The Holder will deduct $3,000 from the principal payment of the Note solely to cover the cost of obtaining any and all legal
    opinions required to obtain the Shares requested in any given Conversion Notice. These fees do not make provision for or suffice
    to defray any legal fees incurred in collection or enforcement of the Note as described in Paragraph 13. The Holder will deduct
    3rd party due diligence fees due Carter Terry & Co., in the amount of $8,250 from the principal payment of
    the Note.
	 	 	 
	 	ix.	Conversion
    Right Unconditional. If the Holder shall provide a Notice of Conversion as provided herein, the Company’s obligations
    to deliver Common Stock shall be absolute and unconditional, irrespective of any claim of setoff, counterclaim, recoupment,
    or alleged breach by the Holder of any obligation to the Company. 

 

    	 	 	 

     

    

 

	 	3.	Other
    Rights of Holder: Reorganization, Reclassification, Consolidation, Merger or Sale. Any recapitalization, reorganization, reclassification,
    consolidation, merger, sale of all or substantially all of the Company’s assets to another Person or other transaction
    which is effected in such a way that holders of Common Stock are entitled to receive (either directly or upon subsequent liquidation)
    stock, securities, cash or other assets with respect to or in exchange for Common Stock is referred to herein as “Organic
    Change.” Prior to the consummation of any (i) Organic Change or (ii) other Organic Change following which the Company
    is not a surviving entity, the Company will secure from the Person purchasing such assets or the successor resulting from
    such Organic Change (in each case, the “Acquiring Entity”) a written agreement (in form and substance reasonably
    satisfactory to the Holder) to deliver to Holder in exchange for this Note, a security of the Acquiring Entity evidenced by
    a written instrument substantially similar in form and substance to this Note, and reasonably satisfactory to the Holder.
    Prior to the consummation of any other Organic Change, the Company shall make appropriate provision (in form and substance
    reasonably satisfactory to the Holder) to ensure that the Holder will thereafter have the right to acquire and receive in
    lieu of or in addition to (as the case may be) the shares of Common Stock immediately theretofore acquirable and receivable
    upon the conversion of the Note, such shares of stock, securities, cash or other assets that would have been issued or payable
    in such Organic Change with respect to or in exchange for the number of shares of Common Stock which would have been acquirable
    and receivable upon the conversion of the Note as of the date of such Organic Change (without taking into account any limitations
    or restrictions on the convertibility of the Note set forth in Section 2(b) or otherwise). All provisions of this Note must
    be included to the satisfaction of Holder in any new Note created pursuant to this section.
	 	 	 
	 	4.	Representations
    and Warranties of the Company. In connection with the transactions provided for herein, the Company hereby represents and
    warrants to the Holder the following:

 

	 	a.	Organization,
    Good Standing and Qualification. The Company is a corporation duly organized, validly existing and in good standing under
    the laws of the state of its incorporation and has all requisite corporate power and authority to carry on its business as
    now conducted. The Company is duly qualified to transact business and is in good standing in each jurisdiction in which the
    failure to so qualify would have a material adverse effect on its business or properties.
	 	 	 
	 	b.	Authorization.
    All corporate action has been taken on the part of the Company, its officers, directors and stockholders necessary for the
    authorization, execution and delivery of this Agreement. The Company has taken all corporate action required to make all of
    the obligations of the Company reflected in the provisions of this Agreement, valid and enforceable obligations. The shares
    of capital stock issuable upon conversion of the Note have been authorized or will be authorized prior to the issuance of
    such shares.
	 	 	 
	 	c.	Fiduciary
    Obligations. The Company hereby represents that it intends to use the proceeds of the Note primarily for the operations of
    its business and not for any personal, family, or household purpose. The Company hereby represents that its board of directors,
    in the exercise of its fiduciary duty, has approved the execution of this Agreement based upon a reasonable belief that the
    proceeds of the Note provided for herein is appropriate for the Company after reasonable inquiry concerning its financial
    objectives and financial situation.
	 	 	 
	 	d.	Data
    Request Form. The Company hereby represents and warrants to Holder that all of the information furnished to Holder pursuant
    to the data request form (“DRF”) dated May 5, 2017 is true and correct in all material respects as of the date
    hereof.

 

	 	5.	Covenants
    of the Company.

 

	 	a.	So
    long as the Company shall have any obligations under this Note, the Company shall not without the Holder’s prior written
    consent pay, declare or set apart for such payment any dividend or other distribution (whether in cash, property, or other
    securities) on shares of capital stock solely in the form of additional shares of Common Stock
	 	 	 
	 	b.	So
    long as the Company shall have any obligations under this Note, the Company shall not without the Holder’s prior written
    consent sell, lease, or otherwise dispose of a significant portion of its assets outside the ordinary course of business.
    Any consent to the disposition of any assets may be conditioned upon a specified use of the proceeds thereof.

 

	 	6.	Reservation
    of Shares. The Company shall at all times, so long as any principal amount of the Note is outstanding, reserve and keep available
    out of its authorized and unissued shares of Common Stock, solely for the purpose of effecting the conversion of the Note,
    eight times the number of shares of Common Stock as shall at all times be sufficient to effect the conversion of all of the
    principal amount, plus Interest and Default Interest, if any, of the Note then outstanding (“Share Reserve”),
    unless the Holder stipulates otherwise in the “Irrevocable Letter of Instructions to the Transfer Agent.” So long
    as this Note is outstanding, upon written request of the Holder or via telephonic communication, the Company’s Transfer
    Agent shall furnish to the Holder the then-current number of common shares issued and outstanding, the then-current number
    of common shares authorized, the then-current number of unrestricted shares, and the then-current number of shares reserved
    for third parties.

 

    	 	 	 

     

    

 

		7.	Voting
                                         Rights. The Holder of this Note shall have no voting rights as a note holder, except
                                         as required by law, however, upon the conversion of any portion of this Note into Common
                                         Stock, Holder shall have the same voting rights as all other Common Stock holders with
                                         respect to such shares of Common Stock then owned by Holder.

 

		8.	Reissuance
                                         of Note. In the event of a conversion or redemption pursuant to this Note of less than
                                         all of the Conversion Amount represented by this Note, the Company shall promptly cause
                                         to be issued and delivered to the Holder, upon tender by the Holder of the Note converted
                                         or redeemed, a new note of like tenor representing the remaining principal amount of
                                         this Note which has not been so converted or redeemed and which is in substantially the
                                         same form as this Note, as set forth above.

 

	 	9.	Default
    and Remedies. 

 

	 	a.	Event
    of Default. For purposes of this Note, an “Event of Default” shall occur upon: 

 

	 	i.	the
    Company’s default in the payment of the outstanding principal, Interest or Default Interest of this Note when due, whether
    at Maturity, acceleration or otherwise;
	 	ii.	the
    occurrence of a Default of Conversion as set forth in Section 2(e)(v);
	 	iii.	the
    failure by the Company for ten (10) days after notice to it to comply with any material provision of this Note not included
    in this Section 10(a); 
	 	iv.	the
    Company’s breach of any material covenants, warranties, or representations made by the Company herein;
	 	v.	any
    of the information in the DRF is false or misleading in any material respect;
	 	vi.	the
    default by the Company in any Other Agreement entered into by and between the Company and Holder, for purposes hereof “Other
    Agreement” shall mean, collectively, all agreements and instruments between, among or by: (1) the Company, and, or for
    the benefit of, (2) the Holder and any affiliate of the Holder, including without limitation, promissory notes; 
	 	vii.	the
    cessation of operations of the Company or a material subsidiary; 
	 	viii.	the
    Company pursuant to or within the meaning of any Bankruptcy Law; (a) commences a voluntary case; (b) consents to the entry
    of an order for relief against it in an involuntary case; (c) consents to the appointment of a Custodian of it or for all
    or substantially all of its property; (d) makes a general assignment for the benefit of its creditors; or (e) admits in writing
    that it is generally unable to pay its debts as the same become due;
	 	ix.	court
    of competent jurisdiction entering an order or decree under any Bankruptcy Law that: (a) is for relief against the Company
    in an involuntary case; (b) appoints a Custodian of the Company or for all or substantially all of its property; or (c) orders
    the liquidation of the Company or any subsidiary, and the order or decree remains unstayed and in effect for thirty (30) days;
	 	x.	the
    Company files a Form 15 with the SEC; 
	 	xi.	the
    Company’s failure to timely file all reports required to be filed by it with the Securities and Exchange Commission;
    
	 	xii.	the
    Company’s failure to timely file all reports required to be filed by it with OTC Markets to remain a “Current
    Information” designated company;
	 	xiii.	the
    Company’s Common Stock is reported as “No Inside” by OTC Markets at any time while any principal, Interest
    or Default Interest under the Note remains outstanding;
	 	xiv.	the
    Company’s failure to maintain the required Share Reserve pursuant to the terms of the Irrevocable Letter of Instructions
    to the Transfer Agent;
	 	xv.	the
    Company directs its transfer agent not to transfer, or delays, impairs, or hinders its transfer agent in transferring or issuing
    (electronically or in certificated form) any certificate for Shares of Common Stock to be issued to the Holder upon conversion
    of or otherwise pursuant to this Note as and when required by this Note, or fails to remove (or directs its transfer agent
    not to remove or impairs, delays and/or hinders its transfer agent from removing) any restrictive legend (or to withdraw and
    stop transfer instructions) on any certificate for any Shares of Common Stock issued to the Holder upon conversion of or otherwise
    pursuant to this Note as and when required by this Note (or makes any written announcement, statement or threat that it does
    not intend to honor its obligations pursuant to a Conversion Notice submitted by the Holder) and any such failure shall continue
    uncured for three (3) Business Days after the Conversion Notice has been delivered to the Company by Holder;
	 	xvi.	the
    Company’s failure to remain current in its billing obligations with its transfer agent and such delinquency causes the
    transfer agent to refuse to issue Shares to Holder pursuant to a Conversion Notice;
	 	xvii.	the
    Company effectuates a reverse split of its Common Stock and fails to provide twenty (20) days prior written notice to Holder
    of its intention to do so; or 
	 	xviii.	OTC
    Markets changes the Company’s designation to ‘No Information’ (Stop Sign), ‘Caveat Emptor’ (Skull
    and Crossbones), or ‘OTC’, ‘Other OTC’ or ‘Grey Market’ (Exclamation Mark Sign).
	 	xix.	“Change
    of Control Transaction” means the occurrence after the date hereof of any of (a) an acquisition after the date hereof
    by an individual or legal entity or “group” (as described in Rule 13d-5(b)(1) promulgated under the Securities
    Exchange Act of 1934) of effective control (whether through legal or beneficial ownership of capital stock of the Company,
    by contract or otherwise) of in excess of 40% of the voting securities of the Company, (b) the Company merges into or consolidates
    with any other Person, as that term is defined in the Securities Act of 1933, as amended, or any Person merges into or consolidates
    with the Company and, after giving effect to such transaction, the stockholders of the Company immediately prior to such transaction
    own less than 60% of the aggregate voting power of the Company or the successor entity of such transaction, (c) the Company
    sells or transfers all or substantially all of its assets to another Person and the stockholders of the Company immediately
    prior to such transaction own less than 60% of the aggregate voting power of the acquiring entity immediately after the transaction,
    (d) a replacement at one time or within a three year period of more than one-half of the members of the Board of Directors
    which is not approved by a majority of those individuals who are members of the Board of Directors on the Issuance Date (or
    by those individuals who are serving as members of the Board of Directors on any date whose nomination to the Board of Directors
    was approved by a majority of the members of the Board of Directors who are members on the date hereof), or (e) the execution
    by the Company of an agreement to which the Company is a party or by which it is bound.

 

    	 	 	 

     

    

 

	 	 	The
    Term “Bankruptcy Law” means Title 11, U.S. Code, or any similar Federal or State Law for the relief of debtors.
    The term “Custodian” means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy
    Law.

 

	 	b.	Remedies.
    If an Event of Default occurs, the Holder may in its sole discretion determine to request immediate repayment of all or any
    portion of the Note that remains outstanding; at such time the Company will be required to pay the Holder the Default Amount
    (defined herein) in cash. For purposes hereof, the “Default Amount” shall mean: the product of (A) the then outstanding
    principal amount of the Note, plus accrued Interest and Default Interest, divided by (B) the Conversion Price as determined
    on the Issuance Date, multiplied by (C) the highest price at which the Common Stock traded at any time between the Issuance
    Date and the date of the Event of Default. If the Company fails to pay the Default Amount within five (5) Business Days of
    written notice that such amount is due and payable, then Holder shall have the right at any time, so long as the Company remains
    in default (and so long and to the extent there are a sufficient number of authorized but unissued shares), to require the
    Company, upon written notice, to immediately issue, in lieu of the Default Amount, the number of shares of Common Stock of
    the Company equal to the Default Amount divided by the Conversion Price then in effect.

 

	 	10.	Vote
    to Change the Terms of this Note. This Note and any provision hereof may only be amended by an instrument in writing signed
    by the Company and the Holder.
	 	 	 
	 	11.	Lost
    or Stolen Note. Upon receipt by the Company of evidence satisfactory to the Company of the loss, theft, destruction or mutilation
    of this Note, and, in the case of loss, theft or destruction, of an indemnification undertaking by the Holder to the Company
    in a form reasonably acceptable to the Company and, in the case of mutilation, upon surrender and cancellation of the Note,
    the Company shall execute and deliver a new Note of like tenor and date and in substantially the same form as this Note; provided,
    however, the Company shall not be obligated to re-issue a Note if the Holder contemporaneously requests the Company to convert
    such remaining principal amount, plus accrued Interest and Default Interest, if any, into Common Stock.
	 	 	 
	 	12.	Payment
    of Collection, Enforcement and Other Costs. If: (i) this Note is placed in the hands of an attorney for collection or enforcement
    or is collected or enforced through any legal proceeding; or (ii) an attorney is retained to represent the Holder of this
    Note in any bankruptcy, reorganization, receivership or other proceedings affecting creditors’ rights and involving
    a claim under this Note, then the Company shall pay to the Holder all reasonable attorneys’ fees, costs and expenses
    incurred in connection therewith, in addition to all other amounts due hereunder.
	 	 	 
	 	13.	Cancellation.
    After all principal, accrued Interest and Default Interest, if any, at any time owed on this Note has been paid in full or
    otherwise converted in full, this Note shall automatically be deemed canceled, shall be surrendered to the Company for cancellation
    and shall not be reissued.
	 	 	 
	 	14.	Waiver
    of Notice. To the extent permitted by law, the Company hereby waives demand, notice, protest and all other demands and notices
    in connection with the delivery, acceptance, performance, default or enforcement of this Note.
	 	 	 
	 	15.	Governing
    Law. This Note shall be construed and enforced in accordance with, and all questions concerning the construction, validity,
    interpretation and performance of this Note shall be governed by, the laws of the State of Texas, without giving effect to
    provisions thereof regarding conflict of laws. Each party hereby irrevocably submits to the non-exclusive jurisdiction of
    the state and federal courts sitting in Texas for the adjudication of any dispute hereunder or in connection herewith or with
    any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit,
    action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action
    or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party
    hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding
    by sending, through certified mail or overnight courier, a copy thereof to such party at the address for such notices to it
    under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof.
    Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. EACH
    PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY
    DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

    	 	 	 

     

    

 

	 	16.	Remedies,
    Characterizations, Other Obligations, Breaches and Injunctive Relief. The remedies provided in this Note shall be cumulative
    and in addition to all other remedies available under this Note, at law or in equity (including a decree of specific performance
    and/or other injunctive relief), and no remedy contained herein shall be deemed a waiver of compliance with the provisions
    giving rise to such remedy and nothing herein shall limit the Holder’s right to pursue actual damages for any failure
    by the Company to comply with the terms of this Note. The Company covenants to the Holder that there shall be no characterization
    concerning this instrument other than as expressly provided herein. Amounts set forth or provided for herein with respect
    to payments, conversion and the like (and the computation thereof) shall be the amounts to be received by the Holder thereof
    and shall not, except as expressly provided herein, be subject to any other obligation of the Company (or the performance
    thereof).
	 	 	 
	 	17.	Specific
    Shall Not Limit General; Construction. No specific provision contained in this Note shall limit or modify any more general
    provision contained herein. This Note shall be deemed to be jointly drafted by the Company and the Holder and shall not be
    construed against any person as the drafter hereof.
	 	 	 
	 	18.	Failure
    or Indulgence Not Waiver. No failure or delay on the part of the Holder in the exercise of any power, right or privilege hereunder
    shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude
    further exercise thereof or of any other right, power or privilege.
	 	 	 
	 	19.	Partial
    Payment. In the event of partial payment by the Holder, the principal sum due to the Holder shall be prorated based on the
    consideration actually paid by the Holder such that the Company is only required to repay the amount funded and the Company
    is not required to repay any unfunded portion of this Note, with the exception of any OID contemplated herein. 
	 	 	 
	 	20.	Entire
    Agreement. This Agreement constitutes the full and entire understanding and agreement between the parties with regard to the
    subjects herein. None of the terms of this Agreement can be waived or modified, except by an express agreement signed by all
    Parties hereto.
	 	 	 
	 	21.	Additional
    Representations and Warranties. The Company expressly acknowledges that the Holder, including but not limited to its officer,
    directors, employees, agents, and affiliates, have not made any representation or warranty to it outside the terms of this
    Agreement. The Company further acknowledges that there have been no representations or warranties about future financing or
    subsequent transactions between the parties.
	 	 	 
	 	22.	Notices.
    All notices and other communications given or made to the Company pursuant hereto shall be in writing (including facsimile
    or similar electronic transmissions) and shall be deemed effectively given: (i) upon personal delivery, (ii) when sent by
    electronic mail or facsimile, as deemed received by the close of business on the date sent, (iii) five (5) days after having
    been sent by registered or certified mail, return receipt requested, postage prepaid or (iv) one (1) day after deposit with
    a nationally recognized overnight courier, specifying next day delivery. All communications shall be sent either by email,
    or fax, or to the email address or facsimile number set forth on the signature page hereto. The physical address, email address,
    and phone number provided on the signature page hereto shall be considered valid pursuant to the above stipulations; should
    the Company’s contact information change from that listed on the signature page, it is incumbent on the Company to inform
    the Holder.
	 	 	 
	 	23.	Severability.
    If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision shall be excluded
    from this Agreement and the rest of the Agreement shall be enforceable in accordance with its terms. 
	 	 	 
	 	24.	Usury.
    If it shall be found that any interest or other amount deemed interest due hereunder violates the applicable law governing
    usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum rate of interest
    permitted under applicable law. The Company covenants (to the extent that it may lawfully do so) that it will not seek to
    claim or take advantage of any law that would prohibit or forgive the Company from paying all or a portion of the principal,
    Interest or Default Interest on this Note. 
	 	 	 
	 	25.	Successors
    and Assigns. This Agreement shall be binding upon all successors and assigns hereto.

 

—
SIGNATURE PAGE TO FOLLOW —

 

    	 	 	 

     

    

 

IN
WITNESS WHEREOF, the Company has caused this Note to be signed by its CEO, on and as of the Issuance Date. 

 

	COMPANY	 	 
	 	 	 
	Signature:
    	/s/
    Akio Ariura	 
	By:	Akio
    Ariura	 
	Title:	Manager	 
	Address:	 	 
	 	 	 
	 	 	 
	Email:	 	 
	Phone:	 	 
	Facsimile:	 	 
	 	 	 
	JSJ Investments Inc.	 
	 	 	 
	Signature:	 	 
	 	 	 
	/s/
Sameer Hirji	 
	 	 	 
	Sameer Hirji, President	 
	JSJ Investments Inc.	 
	10830 North Central Expressway, Suite 152	 
	Dallas TX 75231	 
	888-503-2599	 

 

    	 	 	 

     

    

 

Exhibit
1

 

Conversion
Notice

 

Reference
is made to the 12% Convertible Note issued by ProGreen US, Inc. (the “Note”), dated April 6, 2018 in the principal
amount of $113,000 with 12% interest. This note currently holds a principal balance of $113,000. The features of conversion stipulate
a Conversion Price equal a 45% discount to the average of the two lowest trading prices during the previous twenty (20) trading
days to the date of a Conversion Notice.

 

In
accordance with and pursuant to the Note, the undersigned hereby elects to convert $______ of the principal/interest balance
of the Note, indicated below into shares of Common Stock (the “Common Stock”), of the Company, by tendering the Note
specified as of the date specified below.

 

Date
of Conversion: __________

 

Please
confirm the following information:

 

Conversion
Amount: $ ____________________

 

Conversion
Price: $ ____________________ ( ____ % discount from $ ____________________)

 

Number
of Common Stock to be issued: __________________________________

 

Current
Issued/Outstanding: _____________________________

 

If
the Issuer is DWAC eligible, please issue the Common Stock into which the Note is being converted in the name of the Holder of
the Note and transfer the shares electronically to:

 

[BROKER
INFORMATION]

Holder
Authorization:

 

JSJ
Investments Inc.

10830
North Central Expressway, Suite 152*Do not send certificates to this address

Dallas,
TX 75231

888-503-2599

 

Tax
ID: 20-2122354

 

Sameer
Hirji, President

 

[DATE]

[CONTINUED
ON NEXT PAGE]

 

    	 	 	 

     

    

 

PLEASE
BE ADVISED, pursuant to Section 2(e)(ii) of the Note, “Upon receipt by the Company of a copy of the Conversion Notice, the
Company shall as soon as practicable, but in no event later than one (1) Business Day after receipt of such Conversion Notice,
SEND, VIA EMAIL, FACSIMILE OR OVERNIGHT COURIER, A CONFIRMATION OF RECEIPT OF SUCH CONVERSION NOTICE TO SUCH HOLDER INDICATING
THAT THE COMPANY WILL PROCESS SUCH CONVERSION NOTICE in accordance with the terms herein. Within two (2) Business Days after the
date of the Conversion Confirmation, the Company shall have issued and electronically transferred the shares to the Broker indicated
in the Conversion Notice; should the Company be unable to transfer the shares electronically, they shall, within two (2) Business
Days after the date of the Conversion Confirmation, have surrendered to FedEx for delivery the next day to the address as specified
in the Conversion Notice, a certificate, registered in the name of the Holder, for the number of shares of Common Stock to which
the Holder shall be entitled.”

 

	Signature:	 
	 	 
	 	 
	Jan
    Telander	 
	CEO	 
	ProGreen
    US, Inc.

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