Document:

Exhibit 10.2

 

 

 

Employment Agreement

 

THIS AGREEMENT is made as of June 14, 2019,
with effect from June 7, 2019 in connection with the closing of the transaction contemplated in the Share Exchange Agreement dated
March 7, 2019 (“SEA”).

 

Between:

 

EDESA BIOTECH INC., a company incorporated
pursuant to

the laws of the Province of British Columbia
(hereinafter

referred to as “the Employer”
or “the Company”)

 

AND

 

Par Nijhawan of the City of Markham, in the Province

of Ontario (hereinafter referred to as “the Employee”)

 

WHEREAS the Employer wishes to offer employment
to the Employee on the terms and conditions set out in this Employment Agreement (“Agreement”) and the Employee wishes
to accept the offer of employment;

 

AND WHEREAS certain investors have agreed to acquire shares
of the Employer pursuant to the terms of the SEA resulting in a change of control of the Employer;

 

AND WHEREAS the Employee confirms that
he has the skills and knowledge to perform the duties of the position of CEO and has not misrepresented his experience or qualifications
for the position.

 

In consideration of the payments, mutual
covenants and other good and valuable consideration (the receipt and sufficiency of which is hereby acknowledged by the parties),
it is agreed by and between the parties as follows:

 

		1.	TERM
OF EMPLOYMENT

 

The employment of the Employee under the
terms and conditions of this Agreement shall commence immediately following the Closing and will continue for an indefinite term
until terminated in accordance with this Agreement.

 

     

     

    

 

		2.	DUTIES
AND RESPONSIBILITIES

 

The Employee shall be employed in the position
of CEO. The Employee will be responsible for performing such duties as the Employer or its designee may assign, including all duties
usually and customarily rendered by and required of a CEO of a publicly traded company, and including such duties as are described
in any written job description that may be provided to the Employee and amended from time to time provided that in no event may
such an amendment materially diminish the Employee’s level of responsibilities, title, and stature as CEO of the Employer.

 

The Employee shall devote his full time and attention to the
business and affairs of the Company and work those hours required to meet his duties and responsibilities hereunder.

 

During the term of his employment, the
Employee will refrain from engaging in any activities in which the Employee’s personal interests conflict with the Employee’s
duties, responsibilities, and attention to the affairs of the Company. As such, the Employee will not, directly or indirectly,
engage or participate in any other business activities which conflict with the Employee’s duties, responsibilities, and attention
to the affairs of the Company without the written consent of the Company.

 

The parties acknowledge that the Employee
is actively engaged in the practice of medicine approximately twenty-five (25) hours per week (the “Other Work”)
without conflict or interference with his duties, responsibilities and attention to the affairs of the Company. Notwithstanding
the restrictions stated in the preceding paragraph, the Employer agrees that the Employee may continue to engage in the Other Work,
provided that it continues not to conflict or interfere with the Employee’s duties, responsibilities and attention to the
affairs of the Company.

 

		3.	COMPENSATION
AND BENEFITS

 

In consideration of the services to be
provided hereunder, the Employee, during the term of his employment, shall be paid a gross annual base salary of $300,000 USD (“Base
Salary”) payable in equal bi-weekly installments, in arrears, less applicable statutory deductions and withholdings.
Salaries are reviewed annually in March on the basis of such factors as, but not limited to, merit, market performance, job grade
and potential. However, any increase to the Employee’s Base Salary is in the sole discretion of the Employer.

 

The Employee shall be eligible for a target
annual bonus of 40% of the Employee’s Base Salary, subject to achieving corporate and personal targets to be determined by
the Employer and the Board of Director, taking into account input from the Employee regarding his personal targets. The Employee
acknowledges that: (i) terms and conditions of the applicable bonus program may change each fiscal year at the discretion of the
Employer; (ii) there will be no guaranteed level of Bonus in any fiscal year.

 

The Employer will, in good
faith and absent a material change in its operating or financial circumstances, seek to establish an option plan, under and in
accordance with which the Employee will be eligible for options as determined by the Board of Directors, commensurate with the
Employee’s position and any business milestones which may be established by the Employer.

 

     

     

    

 

The Employee shall receive
an automobile allowance of $2,701.25 USD per month payable in accordance with the Employer’s practices and subject to applicable
deductions.

 

Subject to the terms of
applicable policies and plans, the Employee will be eligible to participate in the Employer’s group insured benefits program, as
may be in effect from time-to time for its employees generally, and executive employees specifically. Benefits, coverages, policies
and plans may be amended or terminated by the Employer at any time, without advance notice or other obligation, provided however
that in the event of such amendment or termination, the Employer will either make available to the Employee benefits coverage substantially
comparable in scope to the preceding coverage, or reimburse the Employee for the cost of obtaining private coverage substantially
comparable in scope to the preceding coverage.

 

		4.	EXPENSES

 

The Employer shall reimburse the Employee
for reasonable and documented expenses actually and necessarily incurred by the Employee in the performance of this Agreement,
in accordance with the Employer’s policies and procedures.

 

		5.	VACATION

 

The Employer’s vacation year is January
1st to December 31st. During the first year of employment, vacation time will be pro-rated based upon the
Employee’s start date.

 

During each full calendar year, the Employee
will be entitled to six (6) weeks’ vacation, which shall accrue in accordance with the Employer’s vacation policy.
Vacation is to be taken at a time acceptable to the Employer acting reasonably having regard to reasonable business requirements.

 

		6.	POLICIES
AND PROCEDURES

 

As a term and condition of employment,
the Employee agrees to comply with, and be bound by, the Employer’s handbook and other employment policies and procedures. From
time to time, the Employer’s handbook and other policies and procedures may be changed by the Employer, in its sole discretion,
without advance notice. It is the sole responsibility of the Employee to review and understand any changes to the Employer’s handbook
or other policies and procedures.

 

		7.	TERMINATION
OF EMPLOYMENT

 

The Employer may terminate the employment of the Employee at
any time:

 

     

     

    

 

(a) for cause, in which case the employee
shall receive payment of any Base Salary and vacation pay earned to the date of termination. Subject only to any minimum requirements
to the contrary under the ESA, all Base Salary, vacation pay accrual and participation in any other benefits (including group benefits
and car allowance) will cease immediately upon the date of termination for cause, and no other bonus or other payments will be
payable to the Employee. Furthermore, subject only to any minimum requirements to the contrary under the ESA, all vested or non-vested
stock options which have not been exercised by the Employee as of the date of termination shall also be automatically extinguished.

 

“Cause” means the existence
of just cause for termination of employment at common law as determined by the law of the province of Ontario, including but not
limited to fraud, theft, dishonesty, illegality, conflict of interest, gross incompetence or breach of any material obligation
under this Agreement.

 

		(b)	without cause, in which case the Employee will be
entitled to the following:

 

(i) a lump sum payment equal to the Employee’s then Base
Salary for twenty four (24) months (the “Severance Period”);

 

(ii) a lump sum payment of the annual bonus
to which the Employee is entitled for the fiscal year immediately preceding the date of termination, if such bonus has not already
been paid;

 

(iii) a lump sum payment equal to the Employee’s
annual bonus entitlement, prorated over the Employee’s length of service in the fiscal year in which his employment was terminated,
such annual bonus entitlement to be calculated using an average of the bonuses paid or payable for the two fiscal years immediately
preceding the termination, or the most recent fiscal year immediately preceding the termination if only one fiscal year was completed
since the effective date of this Agreement. If employment terminates during the course of the fiscal year in which this Agreement
became effective, then the bonus will be calculated using the “at target” percentage described in section 3, above.
If no bonus payment was awarded for the two previous fiscal years, then no bonus shall be payable to the Employee;

 

(iv) payment of the Employee’s annual
bonus entitlement during the full Severance Period (prorated for a partial fiscal year), such annual bonus entitlement to be paid
on the same dates as for other executives but calculated using only the corporate targets applicable to comparable employees and
no personal target. For the sake of clarity, if for example corporate targets justify paying out at 50% target, then the bonus
payout for such fiscal year will amount to 20% of the Employee’s Base Salary;

 

(iv) continuation of the Employee’s
benefits and car allowance and any other benefit required to be maintained pursuant to the ESA for any minimum period required
by the ESA and, to the extent permissible under the terms of the applicable benefits plans, continuation of the Employee’s
health and dental benefits for the balance of the Severance Period or until the Employee becomes eligible for similar benefits
through new employment, whichever is earlier. For clarity, all other benefits, including disability benefits, accidental death
 & dismemberment, and life insurance, shall cease as of the end of the minimum statutory notice period under the ESA; and

 

     

     

    

 

(vi) any and all stock options, shall be
exercisable in accordance with the terms of the applicable stock option plan, subject only to any minimum requirements to the contrary
under the ESA.

 

The Employee may resign from his employment
at any time by providing the Employer with a minimum of 60 days advance notice, in writing. The Employee’s notice may be
waived by the Employer in whole or in part at its sole discretion, subject only to providing the Employee with payment of the Base
Salary and continuation of benefits until the end of the 60 day period of notice required by this Agreement. For clarity, and subject
only to any minimum requirements to the contrary under the ESA: (i) all non-vested stock options and all vested stock options which
have not been exercised by the Employee as of the date of termination shall be automatically extinguished and (ii) the Employee
shall not be entitled to any bonus or pro rata bonus payment not already paid on or before the date of termination.

 

The Employee understands and agrees that
provision of such payment and benefits described above in this Section 7 are fair and reasonable and are in full and final satisfaction
and settlement of all amounts owed for notice of termination or pay in lieu of notice, as well as termination and/or severance
pay arising under any contract, statute, common law or otherwise.

 

		8.	EMPLOYER
PROPERTY

 

On the date of termination, the Employee
will return all Employer property and documentation the Employee has received in the course of employment with the Employer, including
but not limited to: vehicle (if applicable), smartphone, documents, laptop, computer-generated information, reports, books, studies,
data, credit cards, employee identification, access cards/keys and other such materials. The Employee will not be permitted to
retain any copies of any documentation containing Employer information, except for personal benefit or pay statements provided
during the course of employment. The Employee will confirm the return of all Employer property, including any confidential information,
in the Employee’s possession, charge, control or custody by signing a Termination Checklist, a copy of which will be provided
to the Employee for his records. All property shall be returned in good working condition, save for normal wear and tear.

 

		9.	CONFIDENTIALITY

 

The Employee acknowledges that, in the
course of performing and fulfilling his duties hereunder, he may have access to and be entrusted with Confidential Information,
as described further below, the disclosure of which would be highly detrimental to the interests of the Employer. The Employee
acknowledges that all right, title and interest in and to the Confidential Information shall remain the exclusive property of the
Employer and shall be held in trust by the Employee to the benefit of the Employer. The Employee further acknowledges and agrees
that the right to maintain the confidentiality of such Confidential Information constitutes a proprietary right which the Employer
is entitled to protect. Accordingly, the Employee covenants and agrees with the Employer that he will not, directly or indirectly,
during or after his employment with the Employer, disclose any such Confidential Information to any person, firm or corporation,
nor shall he use any Confidential Information, except as required in the normal course of his employment.

 

     

     

    

 

The Employee shall not copy, reproduce
in any form or store in any retrieval system or database the Confidential Information without the prior written consent of the
Employer. If so requested following the cessation of the employment of the Employee for any reason, the Employee shall certify
by way of affidavit or statutory declaration that all Confidential Information was returned to the Employer and that the Employee
no longer has access to same.

 

Confidential information includes, but
is not limited to, financial information, reports, and forecasts; inventions, improvements and other intellectual property, trade
secrets, know-how, designs, processes or formulae, software, market or sales information or plans, supplier lists and supplier
contact information, customer lists and customer contact information; and business plans, prospects, strategies and opportunities
(such as possible acquisitions or dispositions of businesses or facilities) which have been discussed or considered by the Employer
or its affiliates. Confidential information includes information developed by the Employee in the course of the Employee’s employment
with the Employer, as well as other information to which the Employee may have access in connection with the Employee’s employment.

 

For greater clarity, the Employee’s obligations of confidentiality
shall not apply to Confidential Information that:

 

		(a)	was lawfully in the public domain prior to its disclosure,
or becomes publicly available other than through a breach of this agreement; or

 

		(b)	is disclosed when such disclosure is compelled pursuant
to a legal, judicial, or administrative proceeding, or otherwise required by law, except that the Employee shall, prior to disclosure,
provide the Employer with notice of a compelled requirement to disclose to allow the Employer to seek protective or other court
orders.

 

		10.	NON-COMPETITION

 

The Employee shall not, without the prior
written consent of the Employer, for and during the term of the Employee’s employment with the Employer and for twelve (12)
months following the cessation of the Employee’s employment with the Employer (for any reason, including termination for
or without cause, constructive termination, resignation or otherwise), either directly or indirectly, individually or in partnership
or in conjunction with or through any individual, firm, corporation, association or other entity, whether as principal, agent,
shareholder, employee, consultant or in any other capacity whatsoever, within North America, carry on, engage in, or attempt to
carry on or attempt to engage in, or be financially interested in any business that competes with the Employer’s Business.

 

     

     

    

 

“Business” means the development,
sale, or licencing of any dermatology and gastroenterology products which are substantially similar to those products (a) developed,
in development, sold or licensed by the Employer as at the date of the cessation of employment of the Employee or (b) that have
been the subject of active negotiations (that is, having led to the execution of a confidentiality agreement) in the twelve (12)
months immediately preceding the cessation of the employment of the Employee or the purposes of licensing or acquisition by the
Employer.

 

Notwithstanding anything to the contrary
contained herein, the Employee may, without being deemed to compete, hold an equity share investment in a public company whose
shares are listed on a stock exchange or in an over-the-counter market where that share investment does not in the aggregate exceed
10% of the issued equity shares of the company.

 

		11.	NON-SOLICITATION

 

The Employee shall not, for twenty four
(24) months following the cessation of the Employee’s employment (for any reason, including termination for or without cause,
constructive termination, resignation or otherwise), either directly or indirectly, individually or in partnership or in conjunction
with or through any individual, firm, corporation, association or other entity, whether as principal, agent, shareholder, employee,
consultant or in any other capacity whatsoever:

 

(a)       canvass or solicit
any Customer for any purpose which is competitive with the Business;

 

(b)       canvass or solicit
any Prospective Customer for any purpose which is competitive with the Business;

 

(c)       encourage or influence
any Customer to cease doing business with the Company; or

 

(d)       solicit
the employment or engagement of or otherwise entice away from the employment or engagement of the Company any individual who is
employed or engaged by the Company and who worked with the Employee (regardless of the reporting relationship) during the twenty
four (24) month period prior to the cessation of the Employee’s employment, whether or not such individual would commit any
breach of his/her contract or terms of employment or engagement by leaving the employ or the engagement of the Company, provided
that the Employee will not be restricted from making any general solicitation for employment that is not specifically directed
at such employees and that the Employee will not be restricted from hiring any such employee who responds to any such general solicitation.

 

“Business” has the meaning set out above at Section
10.

 

“Customer” means any entity who purchased from the
Company any product or service supplied, sold, licensed or distributed by the Company; provided that a Customer shall only include
any entity who the Employee knew or ought to have known was a Customer during the twenty-four (24) months preceding the date of
the cessation of the Employee’s employment.

 

     

     

    

 

“Prospective Customer” means
(i) any entity solicited by the Employee on behalf of the Company in furtherance of the Business; and (ii) any entity solicited
by the Company with the Employee’s knowledge in furtherance of the Business; provided that Prospective Customers shall only
include any entity who was a Prospective Customer during the twenty-four (24) months preceding the date of the cessation of the
Employee’s employment.

 

		12.	EQUITABLE REMEDIES

 

The Employee acknowledges and agrees that
a breach by the Employee of Sections 9 to 11 would cause substantial and irreparable harm to the Employer which could not be adequately
compensated for by damages, and, in the event of such a breach (or the reasonable apprehension of such a breach) by the Employee
of such provisions, the Employee hereby consents to a preliminary and permanent injunction being issued against him restraining
him from any breach or further breach of the said provisions and of an order to account for all profits and benefits arising out
of any such breach, but the provisions of this Section 12 shall be in addition to and not in substitution for any other remedy
which the Employer may have in respect of such a breach. The prevailing party, if any, as determined by the court, shall be awarded
all fees and costs, including without limitation reasonable legal fees.

 

		13.	INTELLECTUAL PROPERTY

 

All results of services performed by the
Employee hereunder, including without limitation all inventions, ideas, copyrights, trade secrets or otherwise, shall be owned
by and be the sole and exclusive property of the Employer. The Employee hereby transfers and assigns all right, title and interest
of every nature and kind whatsoever therein to the Company and agrees to execute and deliver such further documents and instruments
as may be necessary to fully and effectually give effect thereto. The Employee hereby irrevocably waives all moral rights in such
work.

 

		14.	RESIGNATION UPON TERMINATION

 

The Employee hereby agrees that, upon the
cessation of the Employee’s employment (for any reason, including termination for or without cause, constructive termination,
resignation or otherwise), the Employee shall be deemed, upon the request of the Company, to have immediately resigned any position
the Employee may have as an officer and/or director of the Company together with any other office, position or directorship which
the Employee may hold with any of the Company’s subsidiaries, affiliates or divisions or related entities in connection with or
arising from the performance of the Employee’s duties of employment under this Agreement. In such event, the Employee shall, at
the request of the Company, execute any and all documents appropriate to evidence such resignations. The parties agree that the
execution of such documents shall not adversely impact the Employee’s right to seek a remedy to any dispute relating to his
employment with the Employer or the termination thereof.

 

     

     

    

 

		15.	ASSIGNMENT

 

This Agreement and any rights or obligations
under this Agreement shall not be assignable or transferable by the Employee. The Employer may assign its rights, entitlements
and obligations under this Agreement at any time, without the Employee’s consent and without advance notice.

 

		16.	SEVERABILITY, AMENDMENTS AND WAIVERS

 

Each section (or part thereof) of this
Agreement shall be and remain separate from and independent of and severable from all and any other section (or part thereof) herein
except where otherwise indicated by the context of this Agreement. The decision or declaration that one or more of the sections
(or part thereof) are null and void shall have no effect on the remaining sections (or part thereof) of this Agreement.

 

No provision of this Agreement may be amended
or waived unless such amendment or waiver is authorized by the Employee (including any authorized officer or committee of the board
of directors) and is in writing signed by the Employee and by a duly authorized officer of the Employee. Except as otherwise specifically
provided in this Agreement, no waiver by either party hereto of any breach by the other party of any condition or provision of
this Agreement to be performed by such other party shall be deemed a waiver of a similar or dissimilar breach, condition or provision
at the same time or at any prior or subsequent time

 

		17.	NOTICE

 

Any notice required to be given hereunder shall be deemed to
have been properly given if delivered personally, via email or sent by pre-paid registered mail as follows:

 

	a)    To the Employee:	Last address on file with the Employer
	 	 
	b)    To the Employer:	100 Spy Court, Markham, Ontario, L3R5H6

 

And if sent by registered mail, shall be
deemed to have been received on the 4th business day of uninterrupted postal service following the date of mailing.
Either party may change its address for notice at any time, by giving notice to the other party pursuant to the provisions of this
Agreement.

 

		18.	INTERPRETATION OF AGREEMENT

 

The interpretation, construction and performance
of this Agreement shall be governed by the laws of the Province of Ontario. This Agreement shall be interpreted with all necessary
changes in gender and in number as the context may require and shall enure to the benefit of and be binding upon the respective
successors and permitted assigns of the parties hereto.

 

     

     

    

 

		19.	ENTIRE AGREEMENT

 

This Agreement, together with the Appendices
hereto, collectively constitute the entire agreement between the parties with respect to the subject matter herein. The Employee
has not relied on any representations, inducements or statements, oral or written, which are not contained in this Agreement.

 

		20.	OPPORTUNITY TO CONSULT LEGAL ADVICE

 

The Employee states that he has read this
Agreement in its entirety, been given an opportunity to consider the Agreement and seek legal counsel and advice, and that he enters
into this Agreement voluntarily and intending to be legally bound.

 

		21.	EMPLOYMENT STANDARDS

 

In the event that a minimum standard in
the ESA is more favourable to the Employee in any respect than a term or provision provided herein, the provision of the ESA will
apply in respect of that term or provision. For clarity, under no circumstance will the Employee receive less than his minimum
entitlements under the ESA.

 

		22.	LANGUAGE OF AGREEMENT

 

The parties hereto confirm that it is their
express wish that this Agreement, as well as related documents and notices, be drawn up in English. Les parties a la presente
convention conferment leur volonte expresse que cette convention, de meme que toute documentation ou avis afferent, soit redigee
en anglais.

 

IN WITNESS WHEREOF the parties hereto have caused this Agreement
to be executed effective date first noted above.

 

	/s/ Par Nijhawan	 	June 14, 2019
	Par Nijhawan	 	Date

 

	EDESA BIOTECH INC.	 	 
	 	 	 
	By:	/s/ Sean MacDonald	 	June 14, 2019
	 	Authorized Signing Officer	 	DateExhibit 10.3

 

  

 

Employment
Agreement

 

THIS AGREEMENT is made as
of June 14, 2019, with effect from June 7, 2019 in connection with the closing of the transaction contemplated in the Share Exchange
Agreement dated March 7, 2019 (“SEA”).

 

Between:

 

EDESA BIOTECH INC., a company incorporated
pursuant to

the laws of the Province of British Columbia
(hereinafter

referred to as "the Employer" or “the
Company”)

 

AND

 

Michael Brooks of the
City of Toronto, in the Province

of Ontario (hereinafter referred
to as "the Employee")

 

WHEREAS the Employer
wishes to offer employment to the Employee on the terms and conditions set out in this Employment Agreement ("Agreement")
and the Employee wishes to accept the offer of employment;

 

AND WHEREAS certain
investors have agreed to acquire shares of the Employer pursuant to the terms of the SEA resulting in a change of control of the
Employer;

 

AND WHEREAS the
Employee confirms that he has the skills and knowledge to perform the duties of the position of President and has not misrepresented
his experience or qualifications for the position.

 

In consideration
of the payments, mutual covenants and other good and valuable consideration (the receipt and sufficiency of which is hereby acknowledged
by the parties), it is agreed by and between the parties as follows:

 

		1.	TERM OF EMPLOYMENT

 

The employment of the Employee
under the terms and conditions of this Agreement shall commence immediately following the Closing and will continue for an indefinite
term until terminated in accordance with this Agreement.

 

    	 	 	 

    	 	 

    

 

		2.	DUTIES AND RESPONSIBILITIES

 

The Employee shall be employed
in the position of President. The Employee will be responsible for performing such duties as the Employer or its designee may reasonably
assign, including all duties usually and customarily rendered by and required of a President of a publicly traded company, and
including such duties as are described in any written job description that may be provided to the Employee and amended from time
to time, provided that in no event may such an amendment or duties assigned to the Employee materially diminish the Employee’s
level of responsibilities, title, and stature as President of the Employer.

 

The Employee shall devote
his full time and attention to the business and affairs of the Company and work those hours required to meet his duties and responsibilities
hereunder.

 

During the term of his employment,
the Employee will refrain from engaging in any activities in which the Employee’s personal interests conflict with the Employee’s
duties, responsibilities, and attention to the affairs of the Company. As such, the Employee will not, directly or indirectly,
engage or participate in any other business activities which conflict with the Employee’s duties, responsibilities, and attention
to the affairs of the Company without the written consent of the Company.

 

		3.	COMPENSATION AND BENEFITS

 

In consideration of the services
to be provided hereunder, the Employee, during the term of his employment, shall be paid a gross annual base salary of $275,000
USD (“Base Salary”) payable in equal bi-weekly installments, in arrears, less applicable statutory deductions
and withholdings. Salaries are reviewed annually in March on the basis of such factors as, but not limited to, merit, market performance,
job grade and potential. However, any increase to the Employee's Base Salary is in the sole discretion of the Employer.

 

The Employee
shall be eligible for a target annual bonus of 40% of the Employee’s Base Salary, subject to achieving corporate and personal
targets to be determined by the Employer and the Board of Directors, taking into account input from the Employee regarding his
personal targets. The Employee acknowledges that: (i) terms and conditions of the applicable bonus program may change each fiscal
year at the discretion of the Employer; (ii) there will be no guaranteed level of Bonus in any fiscal year.

 

The Employer
will, in good faith and absent a material change in its operating or financial circumstances, seek to establish an option plan,
under and in accordance with which the Employee will be eligible for options as determined by the Board of Directors, commensurate
with the Employee’s position and any business milestones which may be established by the Employer.

 

The
Employee shall receive an automobile allowance of $2,000 USD per month payable in accordance with the Employer’s
practices and subject to applicable deductions.

 

Subject to
the terms of applicable policies and plans, the Employee will be eligible to participate in the Employer's group insured benefits
program, as may be in effect from time to time for its employees generally, and executive employees specifically. Benefits, coverages,
policies and plans may be amended or terminated by the Employer at any time, without advance notice or other obligation, provided
however that in the event of such amendment or termination, the Employer will either make available to the Employee benefits coverage
substantially comparable in scope to the preceding coverage, or reimburse the Employee for the cost of obtaining private coverage
substantially comparable in scope to the preceding coverage.

 

    	 	 	 

    	 	 

    

 

		4.	EXPENSES

 

The Employer shall reimburse
the Employee for reasonable and documented expenses actually and necessarily incurred by the Employee in the performance of this
Agreement, in accordance with the Employer’s policies and procedures.

 

		5.	VACATION

 

The Employer's vacation
year is January 1st to December 31st.
During the first year of employment, vacation time will be pro-rated based upon the Employee's start date.

 

During each full calendar
year, the Employee will be entitled to four (4) weeks’ vacation, which shall accrue in accordance with the Employer’s
vacation policy. Vacation is to be taken at a time acceptable to the Employer acting reasonably having regard to reasonable business
requirements.

 

6.       POLICIES
AND PROCEDURES

 

As a term and condition of
employment, the Employee agrees to comply with, and be bound by, the Employer's handbook and other employment policies and procedures.
From time to time, the Employer's handbook and other policies and procedures may be changed by the Employer, in its sole discretion,
without advance notice. It is the sole responsibility of the Employee to review and understand any changes to the Employer's handbook
or other policies and procedures.

 

		7.	TERMINATION OF EMPLOYMENT

 

The Employer may terminate
the employment of the Employee at any time:

 

(a) for cause,
in which case the employee shall receive payment of any Base Salary and vacation pay earned to the date of termination. Subject
only to any minimum requirements to the contrary under the ESA, all Base Salary, vacation pay accrual and participation in any
other benefits (including group benefits and car allowance) will cease immediately upon the date of termination for cause, and
no other bonus or other payments will be payable to the Employee. Furthermore, subject only to any minimum requirements to the
contrary under the ESA, all vested or non-vested stock options which have not been exercised by the Employee as of the date of
termination shall also be automatically extinguished.

 

“Cause”
means the existence of just cause for termination of employment at common law as determined by the law of the province of Ontario,
including but not limited to fraud, theft, dishonesty, illegality, conflict of interest, gross incompetence or breach of any material
obligation under this Agreement.

 

    	 	 	 

    	 	 

    

 

		(b)	without cause, in which case the Employee will be entitled to the following:

 

(i) a lump sum
payment equal to the Employee’s then Base Salary for twelve months plus one additional month for every completed year of
service since September 1 2015 (the “Severance Period”, which shall not exceed 24 months);

 

(ii) a lump sum
payment of the annual bonus to which the Employee is entitled for the fiscal year immediately preceding the date of termination,
if such bonus has not already been paid;

 

(iii) a lump sum
payment equal to the Employee’s annual bonus entitlement, prorated over the Employee’s length of service in the fiscal
year in which his employment was terminated, such annual bonus entitlement to be calculated using an average of the bonuses paid
or payable for the two fiscal years immediately preceding the termination, or the most recent fiscal year immediately preceding
the termination if only one fiscal year was completed since the effective date of this Agreement. If employment terminates during
the course of the fiscal year in which this Agreement became effective, then the bonus will be calculated using the “at target”
percentage described in section 3, above. If no bonus payment was awarded for the two previous fiscal years, then no bonus shall
be payable to the Employee;

 

(iv) payment of
the Employee’s annual bonus entitlement during the full Severance Period (prorated for a partial fiscal year), such annual
bonus entitlement to be paid on the same dates as for other executives but calculated using only the corporate targets applicable
to comparable employees and no personal target. For the sake of clarity, if for example corporate targets justify paying out at
50% target, then the bonus payout for such fiscal year will amount to 20% of the Employee’s Base Salary;

 

(v) continuation
of the Employee’s benefits and car allowance and any other benefit required to be maintained pursuant to the ESA for any
minimum period required by the ESA and, to the extent permissible under the terms of the applicable benefits plans, continuation
of the Employee’s health and dental benefits for the balance of the Severance Period or until the Employee becomes eligible
for similar benefits through new employment, whichever is earlier. For clarity, all other benefits, including disability benefits,
accidental death & dismemberment, and life insurance, shall cease as of the end of the minimum statutory notice period under
the ESA; and

 

(v) any and all
stock options shall be exercisable in accordance with the terms of the applicable stock option plan, subject only to any minimum
requirements to the contrary under the ESA.

 

    	 	 	 

    	 	 

    

 

In the event that the employment
of the Employee is terminated or constructively terminated by the Employer without cause upon or within a 12 month period following
a Change of Control, as defined below, the Employee shall be entitled to the payments and benefits provided at paragraphs (b)(ii)
to (v) above, plus a change of control payment equal to 24 months of the value of the Base Salary as of the date of termination.

 

A “constructive
termination” shall include a material change in the Employee’s title, responsibilities, authority or status, a reduction
of the Employee’s compensation, or any other conduct which would constitute a constructive dismissal at common law, in which
case the Employee shall be immediately entitled to resign and claim the above entitlements.

 

A “Change
of Control” shall mean a transaction or series of transactions whereby directly or indirectly:

 

		(a)	a plan of arrangement, amalgamation, merger or consolidation in which more than 50% of the total
combined voting power of the Employer’s voting securities, on a fully diluted basis, are transferred or issued to a person
or persons different from those persons holding such securities immediately prior to such transaction;

 

		(b)	the direct or indirect acquisition by a person or related group of persons acting jointly or in
concert of the beneficial ownership of voting securities of the Employer representing more than 50% of the total combined voting
power of the Employer’s then outstanding securities, on a fully diluted basis;

 

		(c)	the exercise of the voting power of all voting or other securities of the Employer so as to cause
or result in the election of a majority of the board of directors of Employer who were not previously incumbent directors thereof;
or

 

		(d)	the sale, transfer or disposition of all or substantially all of the assets of the Company.

 

The Employee may resign from
his employment at any time by providing the Employer with a minimum of 60 days advance notice, in writing. The Employee’s
notice may be waived by the Employer in whole or in part at its sole discretion, subject only to providing the Employee with payment
of the Base Salary and continuation of benefits until the end of the 60-day period of notice required by this Agreement. For clarity,
and subject only to any minimum requirements to the contrary under the ESA: (i) all non-vested stock options and all vested stock
options which have not been exercised by the Employee as of the date of termination shall be automatically extinguished and (ii)
the Employee shall not be entitled to any bonus or pro rata bonus payment not already paid on or before the date of termination.

 

The Employee understands
and agrees that provision of such payment and benefits described above in this Section 7 are fair and reasonable and are in full
and final satisfaction and settlement of all amounts owed for notice of termination or pay in lieu of notice, as well as termination
and/or severance pay arising under any contract, statute, common law or otherwise.

 

    	 	 	 

    	 	 

    

 

		8.	EMPLOYER PROPERTY

 

On the date of termination,
the Employee will return all Employer property and documentation the Employee has received in the course of employment with the
Employer, including but not limited to: vehicle (if applicable), smartphone, documents, laptop, computer-generated information,
reports, books, studies, data, credit cards, employee identification, access cards/keys and other such materials. The Employee
will not be permitted to retain any copies of any documentation containing Employer information, except for personal benefit or
pay statements provided during the course of employment. The Employee will confirm the return of all Employer property, including
any confidential information, in the Employee’s possession, charge, control or custody by signing a Termination Checklist,
a copy of which will be provided to the Employee for his records. All property shall be returned in good working condition, save
for normal wear and tear.

 

		9.	CONFIDENTIALITY

 

The Employee acknowledges
that, in the course of performing and fulfilling his duties hereunder, he may have access to and be entrusted with Confidential
Information, as described further below, the disclosure of which would be highly detrimental to the interests of the Employer.
The Employee acknowledges that all right, title and interest in and to the Confidential Information shall remain the exclusive
property of the Employer and shall be held in trust by the Employee to the benefit of the Employer. The Employee further acknowledges
and agrees that the right to maintain the confidentiality of such Confidential Information constitutes a proprietary right which
the Employer is entitled to protect. Accordingly, the Employee covenants and agrees with the Employer that he will not, directly
or indirectly, during or after his employment with the Employer, disclose any such Confidential Information to any person, firm
or corporation, nor shall he use any Confidential Information, except as required in the normal course of his employment.

 

The Employee shall not copy,
reproduce in any form or store in any retrieval system or database the Confidential Information without the prior written consent
of the Employer. If so requested following the cessation of the employment of the Employee for any reason, the Employee shall certify
by way of affidavit or statutory declaration that all Confidential Information was returned to the Employer and that the Employee
no longer has access to same.

 

Confidential information
includes, but is not limited to, financial information, reports, and forecasts; inventions, improvements and other intellectual
property, trade secrets, know-how, designs, processes or formulae, software, market or sales information or plans, supplier lists
and supplier contact information, customer lists and customer contact information; and business plans, prospects, strategies and
opportunities (such as possible acquisitions or dispositions of businesses or facilities) which have been discussed or considered
by the Employer or its affiliates. Confidential information includes information developed by the Employee in the course of the
Employee's employment with the Employer, as well as other information to which the Employee may have access in connection with
the Employee's employment.

 

    	 	 	 

    	 	 

    

 

For greater clarity, the
Employee’s obligations of confidentiality shall not apply to Confidential Information that:

 

		(a)	was lawfully in the public domain prior to its disclosure, or becomes publicly available other
than through a breach of this agreement; or

 

		(b)	is disclosed when such disclosure is compelled pursuant to a legal, judicial, or administrative
proceeding, or otherwise required by law, except that the Employee shall, prior to disclosure, provide the Employer with notice
of a compelled requirement to disclose to allow the Employer to seek protective or other court orders.

 

		10.	NON-COMPETITION

 

The Employee shall not, without
the prior written consent of the Employer, for and during the term of the Employee’s employment with the Employer and for
twelve (12) months following the cessation of the Employee’s employment with the Employer (for any reason, including termination
for or without cause, constructive termination, resignation or otherwise), either directly or indirectly, individually or in partnership
or in conjunction with or through any individual, firm, corporation, association or other entity, whether as principal, agent,
shareholder, employee, consultant or in any other capacity whatsoever, within North America, carry on, engage in, or attempt to
carry on or attempt to engage in, or be financially interested in any business that competes with the Employer’s Business.

 

“Business”
means the development, sale, or licencing of any dermatology and gastroenterology products which are substantially similar to
those products (a) developed, in development, sold or licensed by the Employer as at the date of the cessation of employment
of the Employee or (b) that have been the subject of active negotiations (that is, having led to the execution of a
confidentiality agreement) in the twelve (12) months immediately preceding the cessation of the employment of the Employee or
the purposes of licensing or acquisition by the Employer.

 

Notwithstanding anything
to the contrary contained herein, the Employee may, without being deemed to compete, hold an equity share investment in a public
company whose shares are listed on a stock exchange or in an over-the-counter market where that share investment does not in the
aggregate exceed 10% of the issued equity shares of the company.

 

		11.	NON-SOLICITATION

 

The Employee shall not, for
twenty four (24) months following the cessation of the Employee’s employment (for any reason, including termination for or
without cause, constructive termination, resignation or otherwise), either directly or indirectly, individually or in partnership
or in conjunction with or through any individual, firm, corporation, association or other entity, whether as principal, agent,
shareholder, employee, consultant or in any other capacity whatsoever:

 

    	 	 	 

    	 	 

    

 

(a)       canvass
or solicit any Customer for any purpose which is competitive with the Business;

 

(b)       canvass
or solicit any Prospective Customer for any purpose which is competitive with the Business;

 

(c)       encourage
or influence any Customer to cease doing business with the Company; or

 

(d)       solicit
the employment or engagement of or otherwise entice away from the employment or engagement of the Company any individual who is
employed or engaged by the Company and who worked with the Employee (regardless of the reporting relationship) during the twenty
four (24) month period prior to the cessation of the Employee’s employment, whether or not such individual would commit any
breach of his/her contract or terms of employment or engagement by leaving the employ or the engagement of the Company, provided
that the Employee will not be restricted from making any general solicitation for employment that is not specifically directed
at such employees and that the Employee will not be restricted from hiring any such employee who responds to any such general solicitation.

 

“Business” has
the meaning set out above at Section 10.

 

“Customer” means
any entity who purchased from the Company any product or service supplied, sold, licensed or distributed by the Company; provided
that a Customer shall only include any entity who the Employee knew or ought to have known was a Customer during the twenty-four
(24) months preceding the date of the cessation of the Employee’s employment.

 

“Prospective Customer”
means (i) any entity solicited by the Employee on behalf of the Company in furtherance of the Business; and (ii) any entity solicited
by the Company with the Employee’s knowledge in furtherance of the Business; provided that Prospective Customers shall only
include any entity who was a Prospective Customer during the twenty-four (24) months preceding the date of the cessation of the
Employee’s employment.

 

		12.	EQUITABLE REMEDIES

 

The Employee acknowledges
and agrees that a breach by the Employee of Sections 9 to 11 would cause substantial and irreparable harm to the Employer which
could not be adequately compensated for by damages, and, in the event of such a breach (or the reasonable apprehension of such
a breach) by the Employee of such provisions, the Employee hereby consents to a preliminary and permanent injunction being issued
against him restraining him from any breach or further breach of the said provisions and of an order to account for all profits
and benefits arising out of any such breach, but the provisions of this Section 12 shall be in addition to and not in substitution
for any other remedy which the Employer may have in respect of such a breach. The prevailing party, if any, as determined by the
court, shall be awarded all fees and costs, including without limitation reasonable legal fees.

 

    	 	 	 

    	 	 

    

 

		13.	INTELLECTUAL PROPERTY

 

All results of services performed
by the Employee hereunder, including without limitation all inventions, ideas, copyrights, trade secrets or otherwise, shall be
owned by and be the sole and exclusive property of the Employer. The Employee hereby transfers and assigns all right, title and
interest of every nature and kind whatsoever therein to the Company and agrees to execute and deliver such further documents and
instruments as may be necessary to fully and effectually give effect thereto. The Employee hereby irrevocably waives all moral
rights in such work.

 

		14.	RESIGNATION UPON TERMINATION

 

The Employee hereby agrees
that, upon the cessation of the Employee’s employment (for any reason, including termination for or without cause, constructive
termination, resignation or otherwise), the Employee shall be deemed, upon the request of the Company, to have immediately resigned
any position the Employee may have as an officer and/or director of the Company together with any other office, position or directorship
which the Employee may hold with any of the Company's subsidiaries, affiliates or divisions or related entities in connection with
or arising from the performance of the Employee's duties of employment under this Agreement. In such event, the Employee shall,
at the request of the Company, execute any and all documents appropriate to evidence such resignations. The parties agree that
the execution of such documents shall not adversely impact the Employee’s right to seek a remedy to any dispute relating
to his employment with the Employer or the termination thereof.

 

		15.	ASSIGNMENT

 

This Agreement and any rights
or obligations under this Agreement shall not be assignable or transferable by the Employee. The Employer may assign its rights,
entitlements and obligations under this Agreement at any time, without the Employee's consent and without advance notice.

 

		16.	SEVERABILITY, AMENDMENTS AND WAIVERS

 

Each section (or part thereof)
of this Agreement shall be and remain separate from and independent of and severable from all and any other section (or part thereof)
herein except where otherwise indicated by the context of this Agreement. The decision or declaration that one or more of the sections
(or part thereof) are null and void shall have no effect on the remaining sections (or part thereof) of this Agreement.

 

    	 	 	 

    	 	 

    

 

No provision of this Agreement
may be amended or waived unless such amendment or waiver is authorized by the Employee (including any authorized officer or committee
of the board of directors) and is in writing signed by the Employee and by a duly authorized officer of the Employee. Except as
otherwise specifically provided in this Agreement, no waiver by either party hereto of any breach by the other party of any condition
or provision of this Agreement to be performed by such other party shall be deemed a waiver of a similar or dissimilar breach,
condition or provision at the same time or at any prior or subsequent time

 

		17.	NOTICE

 

Any notice required to be
given hereunder shall be deemed to have been properly given if delivered personally, via email or sent by pre-paid registered mail
as follows:

 

	a)    To the Employee:	Last address on file with the Employer
	 	 
	b)    To the Employer:	100 Spy Court, Markham, Ontario, L3R5H6

 

And if sent by registered
mail, shall be deemed to have been received on the 4th business day of uninterrupted
postal service following the date of mailing. Either party may change its address for notice at any time, by giving notice to
the other party pursuant to the provisions of this Agreement.

 

		18.	INTERPRETATION OF AGREEMENT

 

The interpretation, construction
and performance of this Agreement shall be governed by the laws of the Province of Ontario. This Agreement shall be interpreted
with all necessary changes in gender and in number as the context may require and shall enure to the benefit of and be binding
upon the respective successors and permitted assigns of the parties hereto.

 

		19.	ENTIRE AGREEMENT

 

This Agreement, together
with the Appendices hereto, collectively constitute the entire agreement between the parties with respect to the subject matter
herein. The Employee has not relied on any representations, inducements or statements, oral or written, which are not contained
in this Agreement. However, nothing herein shall serve to release the Company from its obligation to pay any accrued wages or bonus
to the Employee as of the date of this Agreement.

 

		20.	OPPORTUNITY TO CONSULT LEGAL ADVICE

 

The Employee states that
he has read this Agreement in its entirety, been given an opportunity to consider the Agreement and seek legal counsel and advice,
and that he enters into this Agreement voluntarily and intending to be legally bound.

 

    	 	 	 

    	 	 

    

 

		21.	EMPLOYMENT STANDARDS

 

In the event that a minimum
standard in the ESA is more favourable to the Employee in any respect than a term or provision provided herein, the provision of
the ESA will apply in respect of that term or provision. For clarity, under no circumstance will the Employee receive less than
his minimum entitlements under the ESA.

 

		22.	LANGUAGE OF AGREEMENT

 

The parties hereto confirm that it is their
express wish that this Agreement, as well as related documents and notices, be drawn up in English. Les parties a la presente
convention conferment leur volonte expresse que cette convention, de meme que toute documentation ou avis afferent, soit redigee
en anglais.

 

IN WITNESS WHEREOF the parties
hereto have caused this Agreement to be executed effective date first noted above.

 

	/s/ Michael Brooks	 	6/14/2019
	Michael Brooks	 	Date

 

EDESA BIOTECH INC.

 

	By:	/s/ Sean MacDonald

	 	June 14, 2019
	 	Authorized Signing Officer	 	Date

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