Document:

EXHIBIT 10.5

  

  

  EMPLOYMENT AGREEMENT

   JOSEPH TRUITT

   

  THIS EMPLOYMENT AGREEMENT (this “Agreement”) is entered into by and between BioSpecifics Technologies Corp. (the “Company”) and Joseph Truitt (the “Executive”) as of May 7, 2020 (the “Effective Date”).

   

  WHEREAS, the Company desires to employ the Executive as the Company’s Chief Executive Officer and the Executive desires to serve in such capacity.

   

  NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements hereinafter set forth, the Company and the Executive hereby agree as follows:

   

  
    1.         Employment.

  

   

  (a)          Term.  The term of this Agreement shall begin on the Effective Date and shall continue until the termination of the Executive’s employment.  The period commencing on the Effective Date and ending on the
    date on which the Executive’s employment terminates is referred to herein as the “Term.”

   

  (b)          Duties.  During the Term, the Executive shall serve as the Chief Executive Officer of the Company, with duties, responsibilities and authority commensurate therewith, and shall report to the Board of
    Directors of the Company (the “Board”).  The Executive shall perform all duties and accept all responsibilities incident to such position as may be reasonably assigned to the Executive by the Board.  The Executive represents to the Company that
    the Executive is not subject to or a party to any employment agreement, noncompetition covenant, or other agreement that would be breached by, or prohibit the Executive from, executing this Agreement and performing fully the Executive’s duties and
    responsibilities hereunder.

   

  (c)          Best Efforts.  During the Term, the Executive shall devote his best efforts and full time and attention to promote the business and affairs of the Company and its affiliated entities, and shall be
    engaged in other business activities only to the extent that such activities do not materially interfere or conflict with the Executive’s obligations to the Company and its affiliated entities hereunder, including, without limitation, obligations
    pursuant to Section 15 below.  The foregoing shall not be construed as preventing the Executive from (1) serving on civic, educational, philanthropic or charitable boards or committees, or, with the prior written consent of the Board, in its sole
    discretion, on corporate boards, and (2) managing personal investments, so long as the activities set forth in the preceding clauses (1) and (2) are permitted under the Company’s code of conduct and employment policies and do not violate the provisions
    of Section 15 below; provided that, the activities set forth in the preceding clauses (1) and (2) do not materially interfere or conflict with the Executive’s duties or obligations to the Company and its affiliated entities and his time commitments
    with respect thereto, as determined by the Board.

   

  (d)          Principal Place of Employment.  The Executive understands and agrees that his principal place of employment will be in the Company’s offices located in Wilmington, Delaware and that the Executive will
    be required to travel for business in the course of performing his duties for the Company, it being understood that Executive may telecommute from his home office from time to time in accordance with the Company’s guidelines regarding same.

   

  
    
      

  

  
  2.           Compensation.

   

  (a)          Base Salary.  During the Term, the Company shall pay the Executive a base salary (“Base Salary”), at the annual rate of $625,000, which shall be paid in installments in accordance with the
    Company’s normal payroll practices.  The Executive’s Base Salary shall be reviewed annually by the Board pursuant to the normal performance review policies for senior-level executives and may be adjusted from time to time as the Compensation Committee
    deems appropriate.  The Compensation Committee of the Board (the “Compensation Committee”) may take any actions of the Board pursuant to this Agreement.

   

  (b)          Annual Bonus.  The Executive shall be eligible to receive an annual bonus for each fiscal year during the Term, commencing with the fiscal year 2021, based on the attainment, as determined by the Board
    in its sole discretion, of individual and corporate performance goals and targets established by the Board in its sole discretion (“Annual Bonus”).  The target amount of the Executive’s Annual Bonus for any full fiscal year during the Term is
    sixty percent (60%) of the Executive’s annual Base Salary.  Any Annual Bonus shall be paid after the end of the fiscal year to which it relates, at the same time as the bonuses for other executives employed by the Company; provided that the Executive
    remains employed by the Company through the last day of the fiscal year to which the Annual Bonus relates and provided further that in no event shall the Executive’s Annual Bonus be paid later than two and a half months after the last day of the fiscal
    year to which the Annual Bonus relates.  Notwithstanding any provision of this Agreement, in the event the Executive’s employment is terminated for Cause, the Executive shall not be eligible to receive any unpaid Annual Bonus.

   

  (c)          2020 Annual Bonus.  The Executive shall be eligible to receive a pro-rated annual bonus for fiscal year 2020 with a target amount equal to the target amount of the Executive’s Annual Bonus described in
    Section 2(b), multiplied by a fraction, the numerator which is the number of days that elapsed from the Effective Date until December 31, 2020, and the denominator of which is 366  (the “2020 Bonus”).  The amount of the 2020 Bonus shall be
    determined based on the attainment of objectives determined by the Compensation Committee, after good faith consultation with the Executive.  Any 2020 Bonus shall be paid to the Executive no later than March 15, 2021; provided that any 2020 Bonus shall
    be paid only if the Executive remains employed by the Company through December 31, 2020 and provided further that in no event shall the Executive be eligible to receive any unpaid 2020 Bonus in the event the Executive’s employment is terminated for
    Cause.

   

  (d)          Equity Compensation.  As soon as practicable following the Effective Date, the Executive shall receive a stock option grant with respect to 130,000 shares of Company Stock (the “Option”) pursuant
    to the Company’s 2019 Omnibus Incentive Compensation Plan (the “Equity Plan”).  The Option shall vest in equal annual installments over the four (4)-year period immediately following the date of grant and will be subject to the terms and
    conditions established by the Board and the terms and conditions of the Equity Plan.

   

  
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  3.            Retirement and Welfare Benefits.  During the Term, the Executive shall be eligible to participate in the Company’s health, life insurance, long-term disability, retirement and welfare benefit plans and programs, in each case as
    may be available to employees of the Company, pursuant to their respective terms and conditions.  Nothing in this Agreement shall preclude the Company or any Affiliate of the Company from terminating or amending any employee benefit plan or program
    from time to time after the Effective Date.

   

  4.            Vacation.  During the Term, the Executive shall be entitled to five (5) weeks of vacation each year and holiday and sick leave at levels commensurate with those provided to other senior executives of the Company, in accordance
    with the Company’s vacation, holiday and other pay-for-time-not-worked policies.  Upon termination of employment, Executive shall be paid any accrued unused vacation for the year in which Executive’s employment terminates.

   

  

  5.            Business and Commuting Expenses.

   

  (a)          Business Expenses. The Company shall reimburse the Executive for all necessary and reasonable travel (which does not include commuting expenses which are addressed in subsection (b) below) and other
    business expenses incurred by the Executive in the performance of his duties hereunder in accordance with such policies and procedures as the Company may adopt generally from time to time for executives.

   

  (b)          Commuting Expenses.   The Company shall reimburse the Executive for commuting expenses reasonably incurred in accordance with the Company’s policies and procedures.  Such reimbursements will be taxable
    to the Executive to the extent required by law.

   

  6.            Termination Without Cause; Resignation for Good Reason.  The Company may terminate the Executive’s employment at any time without Cause.  The Executive may initiate a termination of employment by resigning for Good Reason as
    described below.  Upon termination by the Company without Cause or resignation by the Executive for Good Reason, which in either case occurs at any time other than upon or within one (1) year following a Change of Control, if the Executive executes and
    does not revoke a written Release (as defined below), the Executive shall be entitled to receive, in lieu of any payments under any severance plan or program for employees or executives, the following:

   

  (a)          a cash payment equal to one (1) times the Executive’s annual Base Salary as in effect on the termination date, payable in installments over the twelve (12) month period following the Executive’s termination
    date in accordance with the Company’s normal payroll practices (but no less frequently than monthly).  Payment will begin within sixty (60) days after the Executive’s termination date, and any installments not paid between the termination date and the
    date of the first payment will be paid with the first payment;

   

  (b)          a cash payment equal to a pro-rated portion of Executive’s target Annual Bonus, which shall be calculated by taking the target bonus amount described in Section 2(b) above and multiplying it by a fraction, the
    numerator which is the number of days that elapsed during the fiscal year in which termination of employment occurs, and the denominator of which is the number of calendar days in such fiscal year, with such amount payable in a lump sum within sixty
    (60) days following the Executive’s termination date.

   

  
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  (c)          reimbursement in cash equal to 100% of the monthly COBRA premiums incurred by the Executive for the Executive and his eligible dependents under the Company’s health plans during the eighteen (18) month period
    following the Executive’s termination of employment.  Such reimbursement shall be provided on the payroll date immediately following the date on which the Executive remits the applicable premium payment and shall commence within sixty (60) days after
    the Executive’s termination date; provided that the first payment shall include any reimbursements that would have otherwise been payable during the period beginning on the Executive’s termination date and ending on the date of the first reimbursement
    payment.  Reimbursement payments shall be treated as taxable compensation to the Executive to the extent required by law;

   

  (d)          accelerated vesting of twenty-five percent (25%) of the original number of shares subject to the Option granted pursuant to Section 2(d), or to the extent the number of shares subject to the Option that remain
    unvested at the time of termination is fewer than twenty-five percent (25%) of the original number of shares subject to the Option, accelerated vesting of the remaining unvested portion of the Option, in each case, subject to the terms and conditions
    of the Equity Plan, including, for the avoidance of doubt, the minimum vesting provisions set forth therein, and the applicable grant agreement; and

   

  (e)          any accrued but unpaid Base Salary and any benefits accrued and due under any applicable benefit plans and programs of the Company (“Accrued Obligations”), and any accrued but unpaid annual bonus
    awarded and payable pursuant to Section 2(b) or Section 2(c) for the fiscal year preceding termination (the “Accrued Annual Bonus”), with such Accrued Obligations and Accrued Annual Bonus paid regardless of whether the Executive executes or
    revokes the Release.

   

  For the avoidance of doubt, any outstanding equity awards, other than the Option that vests in accordance with this Section 6, that the Executive holds on the date of the Executive’s termination of employment pursuant to
    this Section 6 shall be forfeited, unless otherwise provided in the applicable grant agreement.

   

  7.            Termination in Connection with a Change of Control.  In the event that the Executive’s employment is terminated by the Company without Cause or by the Executive for Good Reason, in each case upon or within one (1) year
    following a Change of Control, if the Executive executes and does not revoke a written Release (as defined below), the Executive shall be entitled to receive, in lieu of any payments under any severance plan or program for employees or executives and
    in lieu of the payments and benefits set forth in Section 6 of this Agreement, the following:

   

  (a)          a cash payment equal to one and one-half (1.5) times the Executive’s annual Base Salary as in effect on the Change of Control, payable in a lump sum within sixty (60) days following the Executive’s employment
    termination date;

   

  (b)          a cash payment equal to the target amount of the Executive’s Annual Bonus as described in Section 2(b) for the year in which termination occurs, payable in a lump sum within sixty (60) days following the
    Executive’s employment termination date;

   

  
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  (c)          reimbursement in cash equal to 100% of the monthly COBRA premiums incurred by the Executive for the Executive and his eligible dependents under the Company’s health plans during the eighteen (18) month period
    following the Executive’s termination of employment.  Such reimbursement shall be provided on the payroll date immediately following the date on which the Executive remits the applicable premium payment and shall commence within sixty (60) days after
    the Executive’s termination date; provided that the first payment shall include any reimbursements that would have otherwise been payable during the period beginning on the Executive’s termination date and ending on the date of the first reimbursement
    payment.  Reimbursement payments shall be treated as taxable compensation to the Executive to the extent required by law;

   

  (d)          accelerated vesting of the portion of the Option granted pursuant to Section 2(d) that remains unvested as of the date of the Executive’s termination of employment, subject to the terms and conditions of the
    Equity Plan and the applicable grant agreement; and

   

  (e)          the Accrued Obligations and any Accrued Annual Bonus, with such Accrued Obligations and Accrued Annual Bonus paid regardless of whether the Executive executes or revokes the Release;

   

  Notwithstanding the foregoing, if and to the extent required by Section 409A of the Code, if a Change of Control does not constitute a “change in control event” as defined by Section 409A of the Code or the lump sum payment in Section 7(a) would
    otherwise cause the Executive to incur penalties under Section 409A of the Code, such payment shall not be paid in a lump sum but shall be paid in equal installments in accordance with the payroll practices over the eighteen (18)-month period following
    Executive’s termination date.

   

  8.            Cause.  The Company may terminate the Executive’s employment at any time for Cause upon written notice to the Executive, in which event all payments under this Agreement shall cease, except for any Accrued Obligations.

   

  9.            Voluntary Resignation Without Good Reason.  The Executive may voluntarily terminate employment without Good Reason.  In such event, after the effective date of such termination, no payments shall be due under this Agreement,
    except that the Executive shall be entitled to any Accrued Obligations and any Accrued Annual Bonus.

   

  10.          Disability.  If the Executive incurs a Disability during the Term, the Company may terminate the Executive’s employment on or after the date of Disability.  If the Executive’s employment terminates on account of Disability, the
    Executive shall be entitled to receive any Accrued Obligations and any Accrued Annual Bonus.  For the avoidance of doubt, in the event of such termination, the Executive shall not be eligible to receive any payments or benefits pursuant to Section 6 or
    Section 7.  For purposes of this Agreement, the term “Disability” shall have the same meaning ascribed to such term in Section 22(e)(3) of the Code.

   

  11.          Death.  If the Executive dies during the Term, the Executive’s employment shall terminate on the date of death and the Company shall pay to the Executive’s executor, legal representative, administrator or designated beneficiary,
    as applicable, any Accrued Obligations and any Accrued Annual Bonus.  Otherwise, the Company shall have no further liability or obligation under this Agreement to the Executive’s executors, legal representatives, administrators, heirs or assigns or any
    other person claiming under or through the Executive.

   

  
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  12.          Resignation of Positions.  Effective as of the date of any termination of employment, the Executive will resign from all Company-related positions, including as an officer and director of the
      Company and its parents, subsidiaries and Affiliates.

   

  13.          Definitions.  For purposes of this Agreement, the following terms shall have the following meanings:

   

  (a)          “Cause” shall mean the Executive’s (1) breach of a material term of this Agreement or any confidentiality, nonsolicitation, noncompetition or inventions assignment agreement with the
    Company; (2) commission of an act of fraud, embezzlement, theft, or material dishonesty; (3) willful engagement in conduct that causes, or is likely to cause, material damage to the property or reputation of the Company; (4) failure to perform
    satisfactorily the material duties of the Executive’s position (other than by reason of disability) after receipt of a written warning from the Board; (5) commission of a felony or any crime of moral turpitude; or (6) material failure to comply with
    the Company’s code of conduct or employment policies.

   

  With regard to any event constituting Cause pursuant to clauses (1), (3), (4) or (6), the Executive shall have a period of 15 days after receiving written notice from the Company of such event in which he may correct such
    event if it is reasonably subject to cure (“Cure Period”).  Cause shall not exist for purposes of this Section 13(a) unless the Board determines that: (i) the event constituting Cause is not subject to cure or (ii) after the Cure Period, the Executive
    has failed to cure the event constituting Cause.

   

  (b)          “Change of Control” shall be deemed to have occurred if:

   

  (1)         a person, or any two or more persons acting as a group, and all affiliates of such person or persons, who prior to such time owned less than fifty percent (50%) of the
    Company’s then outstanding shares of Company Stock, shall acquire such additional shares of Company Stock in one or more transactions, or series of transactions, such that following such transaction or transactions such person or group and affiliates
    beneficially own fifty percent (50%) or more of the Company Stock outstanding;

   

  (2)          closing of the sale of all or substantially all of the assets of the Company on a consolidated basis to an unrelated person or entity;

   

  (3)         individuals who constitute the Incumbent Board cease for any reason to constitute at least a majority of the Company’s Board
    (for this purpose, “Incumbent Board” means at any time those persons who are then members of the Company’s Board of Directors and who are either (y) members of the
    Company’s Board of Directors on the Effective Date, or (z) have been elected, or have been nominated for election by the Company’s stockholders, by the affirmative vote of at least two-thirds of the directors comprising the Incumbent Board at the time
    of such election or nomination (either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for director without objection to such nomination)); or

   

  
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  (4)         the consummation of any merger, reorganization, consolidation or share exchange unless the persons who were the beneficial owners of the Company’s outstanding shares of
    Company Stock immediately before the consummation of such transaction beneficially own more than fifty percent (50%) of the outstanding shares of the common stock of the successor or survivor entity in such transaction immediately following the
    consummation of such transaction. For purposes of this definition, the percentage of the beneficially owned shares of the successor or survivor entity described above shall be determined exclusively by reference to the shares of the successor or
    survivor entity which result from the beneficial ownership of Company Stock by the persons described above immediately before the consummation of such transaction.

   

  (c)          “Company Stock” shall mean common stock of the Company.

   

  (d)          “Good Reason” shall mean the occurrence of one or more of the following without the Executive’s consent, other than on account of the Executive’s disability:

   

  (1)         A material diminution by the Company of the Executive’s title, authority, duties or responsibilities, or a requirement that the Executive report to someone other than the Board;

   

  (2)         A material change in the geographic location at which the Executive must perform services under this Agreement (which, for purposes of this Agreement, means any change of more than 40 miles from the Executive’s
    principal place of employment as set forth in Section 1(d)), excluding for the avoidance of doubt, (i) any travel for business in the course of performing the Executive’s duties for the Company, and (ii) any change of more than 40 miles from the
    Executive’s principal place of employment as set forth in Section 1(d) that reduces the Executive’s commute from his principal residence to such principal place of employment;

   

  (3)         A material diminution in the Executive’s Base Salary, except for any diminution that is part of a broad-based diminution of base salary applicable to a majority of officers of the Company; or

   

  (4)         Any action or inaction that constitutes a material breach by the Company of this Agreement.

   

  The Executive must provide written notice of termination for Good Reason to the Company within 30 days after the event constituting Good Reason.  The Company shall have a period of 30 days in which it may correct the act or failure to act that
    constitutes the grounds for Good Reason as set forth in the Executive’s notice of termination.  If the Company does not correct the act or failure to act, the Executive’s employment will terminate for Good Reason on the first business day following the
    Company’s 30-day cure period.

   

  (e)          “Release” shall mean a separation agreement and general release of any and all claims against the Company and all related parties with respect to all matters arising out of the Executive’s employment by
    the Company, and the termination thereof (other than claims for any entitlements under the terms of this Agreement or under any plans or programs of the Company under which the Executive has accrued and is due a benefit).  The Release will be in the
    form attached hereto as Exhibit A, subject to such legally required changes, as determined by the Company.

   

  
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  14.          Section 409A.

   

  (a)          This Agreement is intended to comply with section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and its corresponding regulations, or an exemption thereto, and payments may only be
    made under this Agreement upon an event and in a manner permitted by section 409A of the Code, to the extent applicable.  Severance benefits under this Agreement are intended to be exempt from section 409A of the Code under the “short-term deferral”
    exception, to the maximum extent applicable, and then under the “separation pay” exception, to the maximum extent applicable.  Notwithstanding anything in this Agreement to the contrary, if required by section 409A of the Code, if the Executive is
    considered a “specified employee” for purposes of section 409A of the Code and if payment of any amounts under this Agreement is required to be delayed for a period of six months after separation from service pursuant to section 409A of the Code,
    payment of such amounts shall be delayed as required by section 409A of the Code, and the accumulated amounts shall be paid in a lump-sum payment within 10 days after the end of the six-month period.  If the Executive dies during the postponement
    period prior to the payment of benefits, the amounts withheld on account of section 409A of the Code shall be paid to the personal representative of the Executive’s estate within sixty (60) days after the date of the Executive’s death.

   

  (b)          All payments to be made upon a termination of employment under this Agreement may only be made upon a “separation from service” under section 409A of the Code.  For purposes of section 409A of the Code, each
    payment hereunder shall be treated as a separate payment, and the right to a series of installment payments under this Agreement shall be treated as a right to a series of separate payments.  In no event may the Executive, directly or indirectly, designate the taxable year of a payment.  Notwithstanding any provision of this Agreement to the contrary, in no event shall the timing of the Executive’s execution of the Release, directly or indirectly, result
    in the Executive’s designating the taxable year of payment of any amounts of deferred compensation subject to section 409A of the Code, and if a payment that is subject to execution of the Release could be made in more than one taxable year, payment
    shall be made in the later taxable year.

   

  (c)          All reimbursements and in-kind benefits provided under this Agreement shall be made or provided in accordance with the requirements of section 409A of the Code, including, where applicable, the requirement that (i) any reimbursement be for expenses incurred during the period specified in this Agreement, (ii) the amount of expenses eligible for reimbursement, or in-kind benefits
      provided, during a fiscal year not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other fiscal year, (iii) the reimbursement of an eligible expense be made no later than the last day of the fiscal year
      following the year in which the expense is incurred, and (iv) the right to reimbursement or in-kind benefits not be subject to liquidation or exchange for another benefit.

   

  
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  15.          Restrictive Covenants.

   

  (a)          Noncompetition.  The Executive agrees that during the Executive’s employment with the Company and its Affiliates and the twelve (12)-month period following the date on which the Executive’s employment
    terminates for any reason (the “Restriction Period”), the Executive will not, without the Board’s express written consent, engage (directly or indirectly) in any Competitive Business in the United States.  The term “Competitive Business”
    means any entity or person that is engaged in a business, in the United States, in which the Company or its subsidiaries engaged during the Executive’s employment, or that the Company is actively considering and as to which the Company has entered into
    a confidentiality agreement (including the business of pharmaceutical products containing Collagenase ABC, and any variants or derivatives thereof, as an active ingredient and any reformulation, improvement, enhancement, combination, refinement or
    modification thereof).  The Executive understands and agrees that, given the nature of the business of the Company and its Affiliates (as defined below) and the Executive’s position with the Company, the foregoing geographic scope is reasonable and
    appropriate.  For purposes of this Agreement, the term “Affiliate” means any subsidiary of the Company or other entity under common control with the Company.

   

  (b)          Nonsolicitation of Company Personnel.  The Executive agrees that during the Restriction Period, the Executive will not, either directly or through others, hire or attempt to hire any employee,
    consultant or independent contractor of the Company or its Affiliates, or solicit or attempt to solicit any such person to change or terminate his or her relationship with the Company or an Affiliate or otherwise to become an employee, consultant or
    independent contractor to, for or of any other person or business entity, unless more than twelve (12) months shall have elapsed between the last day of such person’s employment or service with the Company or Affiliate and the first day of such
    solicitation or hiring or attempt to solicit or hire.  If any employee, consultant or independent contractor is hired or solicited by any entity that has hired or agreed to hire the Executive, such hiring or solicitation shall be presumed to be a
    violation of this subsection (b).

   

  (c)          Nonsolicitation of Customers.  The Executive agrees that during the Restriction Period, the Executive will not, either directly or through others, solicit, divert, appropriate or do business with, or
    attempt to solicit, divert, appropriate or do business with, any customer or actively sought prospective customer of the Company or an Affiliate for the purpose of providing such customer or actively sought prospective customer with services or
    products competitive with those offered by the Company or an Affiliate during the Executive’s employment with the Company or an Affiliate.

   

  (d)          Proprietary Information.  At all times, the Executive will hold in strictest confidence and will not disclose, use, lecture upon or publish any of the Proprietary Information (defined below) of the
    Company or an Affiliate, except as such disclosure, use or publication may be required in connection with the Executive’s work for the Company or an Affiliate or as described in Section 15(e) below, or unless the Company expressly authorizes such
    disclosure in writing.  “Proprietary Information” shall mean any and all confidential and/or proprietary knowledge, data or information of the Company and its Affiliates and shareholders, including but not limited to information relating to
    financial matters, investments, budgets, business plans, marketing plans, personnel matters, business contacts, products, processes, know-how, designs, methods, improvements, discoveries, inventions, ideas, data, programs, and other works of
    authorship.

   

  
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  (e)          Reports to Government Entities.  Nothing in this Agreement shall prohibit or restrict the Executive from initiating communications directly with, responding to any inquiry from, providing testimony
    before, providing confidential information to, reporting possible violations of law or regulation to, or filing a claim or assisting with an investigation directly with a self-regulatory authority or a government agency or entity, including the Equal
    Employment Opportunity Commission, the Department of Labor, the National Labor Relations Board, the Department of Justice, the Securities and Exchange Commission, Congress, any agency Inspector General or any other federal, state or local regulatory
    authority (collectively, the “Regulators”), or from making other disclosures that are protected under the whistleblower provisions of state or federal law or regulation.  The Executive does not need the prior authorization of the Company to
    engage in conduct protected by this subsection, and the Executive does not need to notify the Company that the Executive has engaged in such conduct.  Please take notice that federal law provides criminal and civil immunity to federal and state claims
    for trade secret misappropriation to individuals who disclose trade secrets to their attorneys, courts, or government officials in certain, confidential circumstances that are set forth at 18 U.S.C. §§ 1833(b)(1) and 1833(b)(2), related to the
    reporting or investigation of a suspected violation of the law, or in connection with a lawsuit for retaliation for reporting a suspected violation of the law.

   

  (f)          Inventions Assignment.  The Executive agrees that all inventions, innovations, improvements, developments, methods, designs,
      analyses, reports, and all similar or related information which relates to the Company’s or its Affiliates’ actual or anticipated business, research and development or existing or future products or services and which are conceived, developed
    or made by the Executive while employed by the Company or an Affiliate (“Work Product”) belong to the Company.  The Executive will promptly disclose such Work Product to the Board and perform all actions reasonably requested by the Board
    (whether during or after the Term) to establish and confirm such ownership (including, without limitation, assignments, consents, powers of attorney and other instruments).  If requested by the Company, the Executive agrees to execute any inventions
    assignment and confidentiality agreement that is required to be signed by employees of the Company and its Affiliates generally.

   

  (g)          Return of Company Property.  Upon termination of the Executive’s employment with the Company for any reason, and at any earlier time the Company requests,
    the Executive will deliver to the person designated by the Company all originals and copies of all documents and property of the Company and its Affiliates that is in the Executive’s possession or under the Executive’s control or to which the Executive
    may have access.  The Executive will not reproduce or appropriate for the Executive’s own use, or for the use of others, any property, Proprietary Information or Work Product.

   

  16.          Legal and Equitable Remedies; Arbitration.

   

  (a)          Because the Executive’s services are personal and unique and the Executive has had and will continue to have access to and has become and will continue to become
    acquainted with the Proprietary Information of the Company and its Affiliates, and because any breach by the Executive of any of the restrictive
    covenants contained in Section 15 would result in irreparable injury and damage for which money damages would not provide an adequate remedy, the Company shall have the right to enforce Section 15 and any of its provisions by injunction, specific
    performance or other equitable relief, without bond and without prejudice to any other rights and remedies that the Company may have for a breach, or threatened breach, of the restrictive covenants set forth in Section 15.  The Executive agrees that in
    any action in which the Company seeks injunction, specific performance or other equitable relief, the Executive will not assert or contend that any of the provisions of Section 15 are unreasonable or otherwise unenforceable.

   

  
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  (b)          Except as otherwise set forth in this Agreement in connection with equitable remedies, any dispute, claim or controversy arising out of or relating to this Agreement or the Executive’s employment with the
    Company (collectively, “Disputes”), including, without limitation, any dispute, claim or controversy concerning the validity, enforceability, breach or termination of this Agreement, if not resolved by the parties, shall be finally settled by
    arbitration in accordance with the then-prevailing Employment Arbitration Rules and Procedures of JAMS, as modified herein (“Rules”). Further, the Executive hereby waives any right to bring on behalf of persons other than the Executive, or to
    otherwise participate with other persons in, any class, collective, or representative action (including but not limited to any representative action under any federal, state or local statute or ordinance).  The requirement to arbitrate covers all
    Disputes (other than disputes which by statute are not arbitrable) including, but not limited to, claims, demands or actions under the Age Discrimination in Employment Act (including Older Workers Benefit Protection Act); Americans with Disabilities
    Act; Civil Rights Act of 1866; Civil Rights Act of 1991; Employee Retirement Income Security Act of 1974; Equal Pay Act; Family and Medical Leave Act of 1993; Title VII of the Civil Rights Act of 1964; Fair Labor Standards Act; Fair Employment and
    Housing Act; and any other law, ordinance or regulation regarding discrimination or harassment or any terms or conditions of employment.  There shall be one arbitrator who shall be jointly selected by the parties.  If the parties have not jointly
    agreed upon an arbitrator within twenty (20) calendar days after respondent’s receipt of claimant’s notice of intention to arbitrate, either party may request JAMS to furnish the parties with a list of names from which the parties shall jointly select
    an arbitrator.  If the parties have not agreed upon an arbitrator within ten (10) calendar days after the transmittal date of such list, then each party shall have an additional five (5) calendar days in which to strike any names objected to, number
    the remaining names in order of preference, and return the list to JAMS, which shall then select an arbitrator in accordance with the Rules.  The place of arbitration shall be New York, New York.  By agreeing to arbitration, the parties hereto do not
    intend to deprive any court of its jurisdiction to issue a pre-arbitral injunction, including, without limitation, with respect to the provisions of Section 15. The arbitration shall be governed by the Federal Arbitration Act, 9 U.S.C. §§ 1-16. 
    Judgment upon the award of the arbitrator may be entered in any court of competent jurisdiction. The arbitrator shall: (a) have authority to compel adequate discovery for the resolution of the dispute and to award such relief as would otherwise be
    available under applicable law in a court proceeding; and (b) issue a written statement signed by the arbitrator regarding the disposition of each claim and the relief, if any, awarded as to each claim, the reasons for the award, and the arbitrator’s
    essential findings and conclusions on which the award is based. The Company shall pay all administrative fees of JAMS in excess of $435 (a typical filing fee in court) and the arbitrator’s fees and expenses.

   

  
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  (c)          The Executive irrevocably and unconditionally (1) agrees that any legal proceeding arising out of this Agreement shall be brought solely in the United States District Court for the Southern District of New
    York, or if such court does not have jurisdiction or will not accept jurisdiction, in any court of general jurisdiction in the State of New York, (2) consents to the exclusive jurisdiction of such court in any such proceeding, and (3) waives any
    objection to the laying of venue of any such proceeding in any such court.  The Executive also irrevocably and unconditionally consents to the service of any process, pleadings, notices or other papers.

   

  (d)          Notwithstanding anything in this Agreement to the contrary, if the Executive is  found to have breached any of the Executive’s obligations under Section 15 by an arbitrator or court of law after a full
    evidentiary hearing on the merits of the Company’s claim of breach, the Company shall be obligated to provide only the Accrued Obligations, and all payments under Section 2, Section 6, or Section 7 hereof, as applicable, shall cease.  In such event and
    after the conclusion of all appeals, the Company may require that the Executive repay all amounts theretofore paid to him pursuant to Section 6 or Section 7 hereof (other than the Accrued Obligations), and in such case, the Executive shall promptly
    repay such amounts on the terms determined by the Company.

   

  (e)          If a party to this Agreement shall bring any action, arbitration, suit, counterclaim or appeal against the other party, declaratory or otherwise, to enforce the terms hereof or to declare rights hereunder (an
    “Action”), the non-prevailing party in such Action shall pay to the prevailing party in such Action the prevailing party’s administrative fees, reasonable attorney’s fees and third-party expenses actually incurred in prosecuting or defending
    such Action and/or enforcing any judgment, order, ruling or award, granted therein, all of which shall be deemed to have accrued from the commencement of such Action. The prevailing party shall be determined based upon an assessment of which party’s
    arguments or positions can fairly be said to have prevailed over the other party’s arguments or positions on the major disputed issues in the Action.  Such assessment should include evaluation of the following:  the amount of the net recovery; the
    primary issues disputed by the parties; whether the amount of the award comprises a significant percentage of the amount sought by the claimant; and the most recent settlement positions of the parties. The court or arbitrator, as applicable, may fix
    the amount of reasonable attorneys’ fees and third-party expenses upon the request of any party. The terms of this Section 16(e) shall survive following termination of this Agreement.

   

  17.          Survival.  The respective rights and obligations of the parties under this Agreement (including, but not limited to, under Sections 15 and 16) shall survive any termination of the Executive’s employment or termination or
    expiration of this Agreement to the extent necessary to the intended preservation of such rights and obligations.

   

  18.          No Mitigation or Set-Off.  In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions of this Agreement,
    and such amounts shall not be reduced regardless of whether the Executive obtains other employment.  The Company’s obligations to make the payments provided for in this Agreement and otherwise to perform their respective obligations hereunder shall not
    be affected by any circumstances, including, without limitation, any set-off, counterclaim, recoupment, defense or other right which the Company may have against the Executive or others.

   

  
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  19.          Section 280G.  In the event of a change in ownership or control under section 280G of the Code, if it shall be determined that any payment or distribution in the nature of compensation (within the meaning of section 280G(b)(2) of
    the Code) to or for the benefit of the Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise (a “Payment”), would constitute an “excess parachute payment” within the meaning of
    section 280G of the Code, the aggregate present value of the Payments under the Agreement shall be reduced (but not below zero) to the Reduced Amount (defined below) if and only if the Accounting Firm (described below) determines that the reduction
    will provide the Executive with a greater net after-tax benefit than would no reduction.  No reduction shall be made unless the reduction would provide Executive with a greater net after-tax benefit.  The determinations under this Section shall be made
    as follows:

   

  (a)          The “Reduced Amount” shall be an amount expressed in present value which maximizes the aggregate present value of Payments under this Agreement without causing any Payment under this Agreement to be
    subject to the Excise Tax (defined below), determined in accordance with section 280G(d)(4) of the Code.  The term “Excise Tax” means the excise tax imposed under section 4999 of the Code, together with any interest or penalties imposed with
    respect to such excise tax.

   

  (b)          Payments under this Agreement shall be reduced on a nondiscretionary basis in such a way as to minimize the reduction in the economic value deliverable to the Executive. Where more than one payment has the
    same value for this purpose and they are payable at different times, they will be reduced on a pro rata basis.  Only amounts payable under this Agreement shall be reduced pursuant to this Section.

   

  (c)          All determinations to be made under this Section shall be made by an independent certified public accounting firm selected by the Company in consultation with the Executive immediately prior to the
    change-in-ownership or -control transaction (the “Accounting Firm”).  The Accounting Firm shall provide its determinations and any supporting calculations both to the Company and the Executive within 10 days of the transaction.  Any such
    determination by the Accounting Firm shall be binding upon the Company and the Executive.  All of the fees and expenses of the Accounting Firm in performing the determinations referred to in this Section shall be borne solely by the Company.

   

  20.          Notices.  All notices and other communications required or permitted under this Agreement or necessary or convenient in connection herewith shall be in writing and shall be deemed to have been given when hand delivered or mailed
    by registered or certified mail, as follows (provided that notice of change of address shall be deemed given only when received):

   

  If to the Company, to:

  

  

  BioSpecifics Technologies Corp.

  Delaware Corporate Center II

  2 Righter Parkway, Suite 200

  Wilmington, DE 19803

  Attn:  Chair of the Board of Directors

  

  

  
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  With a copy (which shall not constitute notice) to:

  

  

  Carl A. Valenstein

  Morgan, Lewis & Bockius LLP

  One Federal Street, Boston MA 02110-1726

  Carl.Valenstein@morganlewis.com

  

  

  If to the Executive, to the most recent address on file with the Company, or to such other names or addresses as the Company or the Executive, as the case may be, shall designate by notice to each other person entitled to
    receive notices in the manner specified in this Section.

  

  

  21.          Withholding.  All payments under this Agreement shall be made subject to applicable tax withholding, and the Company shall withhold from any payments under this Agreement all federal, state and local taxes as the Company is
    required to withhold pursuant to any law or governmental rule or regulation.  The Executive shall bear all expense of, and be solely responsible for, all federal, state and local taxes due with respect to any payment received under this Agreement.

   

  22.          Remedies Cumulative; No Waiver.  No remedy conferred upon a party by this Agreement is intended to be exclusive of any other remedy, and each and every such remedy shall be cumulative and shall be in addition to any other remedy
    given under this Agreement or now or hereafter existing at law or in equity.  No delay or omission by a party in exercising any right, remedy or power under this Agreement or existing at law or in equity shall be construed as a waiver thereof, and any
    such right, remedy or power may be exercised by such party from time to time and as often as may be deemed expedient or necessary by such party in its sole discretion.

   

  23.          Assignment.  All of the terms and provisions of this Agreement shall be binding upon and inure to the benefit of and be enforceable by the respective heirs, executors, administrators, legal representatives, successors and assigns
    of the parties hereto, except that the duties and responsibilities of the Executive under this Agreement are of a personal nature and shall not be assignable or delegable in whole or in part by the Executive.  The Company may assign its respective
    rights, together with their respective obligations hereunder (which such obligations must be assigned), in connection with any sale, transfer or other disposition of all or substantially all of its business and assets, and such rights and obligations
    shall inure to, and be binding upon, any successor to the business or any successor to substantially all of the assets of the Company, whether by merger, purchase of stock or assets or otherwise, which successor shall expressly assume such obligations,
    and the Executive acknowledges that in such event the obligations of the Executive hereunder, including but not limited to those under Section 15, will continue to apply in favor of the successor.

   

  24.          Company Policies.  The compensation payable under this Agreement shall be subject to any applicable clawback, recoupment, and share trading policies, and other policies of the Company to the extent such other policies are
    required by law, that may be implemented by the Board from time to time with respect to all executive officers of the Company (as determined by the Company for purposes of Section 16 of the Securities Exchange Act of 1934).

   

  
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  25.          Indemnification.  In the event the Executive is made, or threatened to be made, a party to any legal action or proceeding, whether civil or criminal, including any governmental or regulatory proceedings or investigations, by
    reason of the fact that the Executive is or was a director or officer of the Company or any of its Affiliates, the Executive shall be indemnified by the Company, and the Company shall pay the Executive’s related expenses when and as incurred, to the
    fullest extent permitted by applicable law and the Company’s articles of incorporation and bylaws.  During the Executive’s employment with the Company or any of its Affiliates and after termination of employment for any reason, the Company shall cover
    the Executive under the Company’s directors’ and officers’ insurance policy applicable to other officers and directors according to the terms of such policy.

   

  26.          Entire Agreement.  This Agreement sets forth the entire agreement of the parties hereto and supersedes any and all prior agreements and understandings concerning the Executive’s employment by the Company, including the offer
    letter agreement of employment dated April 1, 2020, from the Company to the Executive and executed by the Executive on April 2, 2020.  This Agreement may be changed only by a written document signed by the Executive and the Company.

   

  27.          Severability.  If any provision of this Agreement or application thereof to anyone or under any circumstances is adjudicated to be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect
    any other provision or application of this Agreement, which can be given effect without the invalid or unenforceable provision or application, and shall not invalidate or render unenforceable such provision or application in any other jurisdiction.  If
    any provision is held void, invalid or unenforceable with respect to particular circumstances, it shall nevertheless remain in full force and effect in all other circumstances.

   

  28.          Governing Law.  This Agreement shall be governed by, and construed and enforced in accordance with, the substantive and procedural laws of the State of New York without
        regard to rules governing conflicts of law.  

   

  29.          Counterparts; Facsimile/PDF Signatures.  This Agreement may be executed in any number of counterparts (including facsimile counterparts), each of which shall be an original, but all of which together shall constitute one
    instrument. Execution of a facsimile or PDF copy shall have the same force and effect as execution of an original, and a copy of a signature will be admissible in any legal proceeding as if an original.

   

  (Signature Page Follows)

   

  
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  IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.

   

  
    	 	
            BIOSPECIFICS TECHNOLOGIES CORP.

          
	 	 
	 	
            /s/ Jennifer Chao

          
	 	
            Name: Jennifer Chao

          
	 	
            Title: Chair of the Board of Directors

          
	 	 
	 	
            EXECUTIVE

          
	 	 
	 	
            /s/ Joseph Truitt

          
	 	
            Name: Joseph Truitt

          

  

  

  

  

  

  A-16EXHIBIT 10.6

  

  

  

  
    BIOSPECIFICS TECHNOLOGIES CORP.

     

    CONFIDENTIALITY AND INVENTIONS ASSIGNMENT AGREEMENT

    March 30, 2020

     

    In consideration and as a condition of my employment, or continued employment, by BioSpecifics Technologies Corp., a Delaware corporation (the “Company”),
      and the compensation now and hereafter paid to me, I hereby agree as follows:

     

    1.          Employment with Company.

     

    1.1          Employment shall commence on April 7, 2020.  It is understood and agreed that this is an employment at will and either party may terminate this
      Agreement without cause on notice. Any notice of termination shall be in writing, given personally or by Certified Mail, Return Receipt Requested.

     

    1.2          During the term of my employment with the Company, I agree to devote my entire time and attention and to give my best and undivided efforts and
      service to the business and the interests of the Company (and its subsidiaries and affiliates) in such capacities and in performance of such duties as the Company may from time to time direct, which may include but not be limited to improving,
      developing and/or inventing processes, products, assays and analytic methods.  Notwithstanding the foregoing, I may serve as a director on the board of another company or companies, with the prior written consent of the Board, which will not
      unreasonably be withheld; provided that such other board service does not materially interfere or conflict with my duties or obligations to the Company or its affiliated entities, and my time commitments thereto, as reasonably determined by the
      Board.

     

    2.          Nondisclosure

     

    2.1          Recognition of Company’s Rights; Nondisclosure.  At all times during my employment by the Company and
      thereafter, I will hold in strictest confidence and will not disclose, use, lecture upon, or publish any of the Company’s Proprietary Information (defined below), except as such disclosure, use, lecture, or publication may be required in connection
      with my work for the Company, or unless an officer or other authorized representative of the Company (other than me) expressly authorizes such in writing.  I will obtain the Company’s prior written approval before publishing or submitting for
      publication any material (written, oral, or otherwise) that relates to my work at the Company or incorporates any Proprietary Information.  Notwithstanding the foregoing, disclosure of any Proprietary Information shall not be prohibited if such
      disclosure is directly related to a valid and existing order of a court or other governmental body or agency within the United States; provided, however,
      that I shall have first given prompt notice to the Company of any possible or prospective order and the Company shall have been afforded a reasonable opportunity to prevent or limit any such disclosure.  I hereby assign to the Company any rights I
      may have or acquire in any Proprietary Information and recognize that all Proprietary Information shall be the sole property of the Company and its assigns.

     

    2.2          Proprietary Information.  The term “Proprietary Information” means any and all confidential or
      proprietary knowledge, data or information of the Company or any of its subsidiaries or controlled affiliates.  By way of illustration but not limitation, “Proprietary Information” includes:  (a) developments, inventions, ideas, data,
      programs, other works of authorship, designs and techniques, trade secrets, mask works, processes, formulas, source and object codes, algorithms, compositions of matter, methods (including, without limitation, methods of use or delivery), know-how,
      technology, improvements and discoveries (hereinafter collectively referred to as “Inventions”); (b) information regarding plans for research, development, new services or products, marketing and selling, business plans, budgets and
      unpublished financial statements, licenses, prices and costs, clients, customers, and suppliers; and (c) information regarding the skills and compensation of the employees and/or consultants of the Company or any of its subsidiaries or controlled
      affiliates.  For purposes of this Confidentiality and Inventions Assignment Agreement (this “Agreement”), the term “Proprietary Information” shall not include information which is or becomes publicly available without breach of:  (i)
      this Agreement; (ii) any other agreement or instrument to which the Company or any of its subsidiaries or controlled affiliates is a party or a beneficiary; or (iii) any duty owed to the Company or any of its subsidiaries or controlled affiliates by
      me or by any third party; provided, however, that if I shall seek to disclose, use, lecture upon, or publish any Proprietary Information, I shall bear
      the burden of proving that any such information shall have become publicly available without any such breach.

     

    
      
        

    

    
    2.3          Third Party Information.  I understand that the Company or any of its subsidiaries or controlled
      affiliates has received and in the future will receive from third parties confidential or proprietary information (“Third Party Information”) subject to a duty to maintain the confidentiality of such information and to use it only for certain
      limited purposes.  During the term of my employment by the Company and thereafter, I will hold Third Party Information in the strictest confidence and will not disclose to anyone (other than personnel of the Company or any of its subsidiaries or
      controlled affiliates who need to know such information in connection with their work for the Company or any of its subsidiaries or controlled affiliates) or use, except in connection with my work for the Company or any of its subsidiaries or
      controlled affiliates, Third Party Information unless expressly authorized by an officer or other authorized representative of the Company (other than me) in writing.  I hereby assign to the Company any rights I may have or acquire in any Third Party
      Proprietary Information during my employment with the Company.

     

    2.4          No Improper Use of Information of Prior Employers and Others.  During my employment by the Company, I will
      not improperly use or disclose any confidential information or trade secrets, if any, of any former employer or any other person to whom I have an obligation of confidentiality, and I will not bring onto the premises of the Company or any of its
      subsidiaries or controlled affiliates any unpublished documents or any property belonging to any former employer or any other person to whom I have an obligation of confidentiality unless consented to in writing by that former employer or person.  I
      will use in the performance of my duties to the Company or any of its subsidiaries or controlled affiliates only information which is generally known and used by persons with training and experience comparable to my own, which is common knowledge in
      the industry or otherwise legally in the public domain, or which is otherwise provided or developed by, or on behalf of, the Company or any of its subsidiaries or controlled affiliates.

     

    2.5          Reports to Government Entities.  Nothing in this Agreement restricts or prohibits me from initiating
      communications directly with, responding to inquiries from, providing testimony before, providing confidential information to, reporting possible violations of law or regulation to, or from filing a claim or assisting with an investigation directly
      with a self-regulatory authority or a government agency or entity, including without limitation, the U.S. Equal Employment Opportunity Commission, the Department of Labor, the National Labor Relations Board, the U.S. Department of Justice, the U.S.
      Securities and Exchange Commission, the U.S. Commodities Futures Trading Commission, the Financial Industry Regulatory Authority, the Occupational Safety and Health Administration,  the U.S. Congress, any other federal, state, or local government
      agency or commission, and any agency Inspector General (collectively, the “Regulators”), or from making other disclosures that are protected under the whistleblower provisions of federal, state, or local law or regulation. I do not need the prior
      authorization of the Company to engage in conduct protected by this paragraph, and I do not need to notify the Company that I have engaged in such conduct.  This agreement does not limit my right to receive an award from any Regulator that provides
      awards for providing information relating to a potential violation of the law.  However, to the maximum extent permitted by law, I am waiving my right to receive any individual monetary relief from the Company resulting from such claims or conduct,
      regardless of whether I or another party filed the claim or reported the conduct.  I recognize and agree that, in connection with any such activity outlined above, I must inform the Regulators, my attorney, a court or a government official that the
      information I am providing is confidential.  Despite the foregoing, I am not permitted to reveal to any third-party, including any governmental, law enforcement, or regulatory authority, information I came to learn during the course of my employment
      with the Company that is protected from disclosure by any applicable privilege, including but not limited to the attorney-client privilege and/or attorney work product doctrine.  The Company does not waive any applicable privileges or the right to
      continue to protect its privileged attorney-client information, attorney work product, and other privileged information.

     

    
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    2.6          Defend Trade Secrets Act.  Pursuant to 18 U.S.C. § 1833(b), I will not be held criminally or civilly
      liable under any Federal or State trade secret law for the disclosure of a trade secret of the Company or any of its subsidiaries or controlled affiliates that (a) I make (i) in confidence to a Federal, State, or local government official, either
      directly or indirectly, or to my attorney and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (b) I make in a complaint or other document that is filed under seal in a lawsuit or other proceeding.  If I file
      a lawsuit for retaliation by the Company for reporting a suspected violation of law, I may disclose any such trade secret to my attorney and use any such trade secret information in the court proceeding, if I (x) file any document containing any such
      trade secret under seal, and (y) do not disclose any such trade secret, except pursuant to court order.  Nothing in this Agreement is intended to conflict with 18 U.S.C. § 1833(b) or create liability for disclosures of trade secrets that are
      expressly allowed by 18 U.S.C. § 1833(b).

     

    3.          Assignment of Inventions

     

    3.1          Proprietary Rights.  The term “Proprietary Rights” means all trade secret, patent, copyright, mask
      work and other intellectual property rights throughout the world.

     

    3.2          Prior Inventions.  Any and all Inventions (whether patented or unpatented) that I have, alone or jointly
      with others, conceived, developed or reduced to practice, or caused to be conceived, developed or reduced to practice, prior to the commencement of my employment with the Company (collectively referred to as “Prior Inventions”) are either my
      property or the property of third parties and are excluded from the scope of this Agreement, except if and to the extent the provisions set forth below in this Section 2.2 are made expressly applicable to Prior Inventions.  To preclude any possible
      uncertainty, I have set forth on Exhibit A (Prior Inventions) attached hereto a list of Prior Inventions.    If disclosure of any Prior Invention would cause me
      to violate any prior confidentiality agreement, I understand that I am not to disclose such Prior Invention or to list such Prior Inventions in Exhibit A but am only to disclose a cursory name for each
      such invention, a listing of the party or parties to whom it belongs, and the fact that full disclosure as to such inventions has not been made for that reason. A space is provided on Exhibit A for
      such purpose.  If I do not attach such disclosure, I am representing thereby that there are no Prior Inventions.  Notwithstanding the foregoing provisions of this Section 2.2 that provide that Prior Inventions are excluded from the scope of this
      Agreement, I agree that I will not incorporate, or permit to be incorporated, Prior Inventions in any Company Inventions (as defined in Section 2.3 below), or any product, process or machine of the Company or any of its subsidiaries or controlled
      affiliates, without the Company’s prior written consent.  If, in the course of my employment with the Company, I incorporate a Prior Invention into any Company Inventions or into a product, process or machine of the Company or any of its subsidiaries
      or controlled affiliates, then, notwithstanding the foregoing provisions of this Section 2.2 that provide that Prior Inventions are excluded from the scope of this Agreement, the Company is hereby granted and shall have a nonexclusive, royalty free,
      irrevocable, perpetual, worldwide license (with rights to sublicense through multiple tiers of sublicensees) to make, cause to be made, modify, cause to be modified, use, cause to be used and sell or cause to be sold such Prior Invention.  In
      addition, and notwithstanding anything express or implied in the foregoing provisions of this Section 2.2 to the contrary, any Invention that would otherwise be a Prior Invention for purposes of this Section 2.2 shall not be deemed or treated as a
      Prior Invention for purposes of this Section 2.2 if the Company or any of its subsidiaries or controlled affiliates acquires ownership of such Invention, or if the Company or any of its subsidiaries or controlled affiliates licenses such Invention,
      pursuant to the provisions of a separate agreement entered into by the Company or any of its subsidiaries or controlled affiliates with me or any other person.

     

    
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    3.3          Assignment of Inventions.  Subject to this Section 2.3 and to Sections 2.5 and 2.6, I hereby assign to the
      Company all my right, title and interest in and to any and all Inventions (and all Proprietary Rights with respect thereto), whether or not patentable or registrable under copyright or similar statutes that are made, conceived, reduced to practice or
      learned by me, either alone or jointly with others, whether or not during regular business hours, if: (i) such Invention is made, conceived, reduced to practice, or learned by me during the term of my employment with the Company or within 1 year
      after my resignation or termination from the Company; or (ii) such Inventions arise out of, are based upon, or result from the use of, any Proprietary Information or Third Party Information made available to me or to which I had access as an employee
      of the Company.  Inventions assigned pursuant to this Section 2 to the Company, or to a third party as directed by the Company pursuant to Section 2.5 below, are hereinafter referred to as “Company Inventions.”  At the request of the Company
      at any time and from time to time, I will execute and deliver any and all instruments, documents and agreements reasonably requested by the Company for purposes of confirming my assignment to the Company of all of my right, title and interest in and
      to any and all Company Inventions (and all Proprietary Rights with respect thereto), including, without limitation, at any time when any such Company Inventions (or any Proprietary Rights with respect thereto) are first reduced to practice or first
      fixed in a tangible medium, as applicable.

     

    For the avoidance of doubt, notwithstanding any contrary provision contained herein, nothing contained in this Agreement shall require the assignment of any Invention (or Proprietary Right with
      respect thereto) made or conceived by me during the period of my employment with the Company to the extent such assignment is prohibited by any applicable state or federal law.

     

    3.4          Letters Patent.  I agree to accept as full consideration the sum of one hundred dollars ($100.00) for the
      assignment to the Company of all my rights, title and interest in and to each such invention, discovery and improvement described in Section 3.3, including all patent applications filed thereon and patents issued on such applications and will give to
      the Company the right to have United States Letters Patent issued thereon in its name and the right to apply for and obtain patents on any such inventions in any and all countries foreign to the United States as the Company may select, and to claim
      the right of priority under any applicable International Convention or treaty.

     

    3.5          Obligation to Keep Company Informed.  During the period of my employment with the Company and thereafter,
      I will promptly disclose to the Company fully and in writing all Company Inventions authored, conceived or reduced to practice by me, either alone or jointly with others.  In addition, during the period of my employment with the Company, I will
      promptly disclose to the Company all patent applications filed by me or on my behalf that claim any Company Invention.

     

    3.6          Government or Third Party.  I also agree to assign all my right, title and interest in and to any
      particular Company Invention to a third party, including without limitation the United States, as directed by the Company.

     

    3.7          Works for Hire.  I acknowledge that all original works of authorship which are made by me (solely or
      jointly with others) within the scope of my employment with the Company and which are protectable by copyright are “works made for hire,” pursuant to the United States Copyright Act (17 U.S.C., Section 101).

     

    
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    3.8          Enforcement of Proprietary Rights.  I will assist the Company in every proper way in obtaining, and from
      time to time enforcing, United States and foreign Proprietary Rights relating to Company Inventions in any and all countries.  To that end I will promptly execute, verify and deliver such documents and perform such other acts (including appearances
      as a witness) as the Company may reasonably request for use in applying for, obtaining, perfecting, evidencing, sustaining and enforcing such Proprietary Rights and the assignment thereof.  In addition, I will promptly execute, verify and deliver
      assignments of such Proprietary Rights to the Company or its designee.  My obligation to assist the Company with respect to Proprietary Rights relating to such Company Inventions in any and all countries shall continue beyond the termination of my
      employment with the Company, but the Company shall compensate me at a reasonable rate after my termination for the time actually spent by me at the Company’s request on such assistance.

     

    In the event the Company is unable for any reason, after reasonable effort, to secure my signature on any document needed in connection with the actions specified in the preceding paragraph, I hereby irrevocably
      designate and appoint the Company and its duly authorized officers and agents as my agents and attorneys-in-fact, subject to full power of substitution and resubstitution, which appointment is coupled with an interest, to act for and in my behalf to
      execute, verify and file any such documents and to do all other lawfully permitted acts to further the purposes of the preceding paragraph with the same legal force and effect as if executed by me.  I hereby waive and quitclaim to the Company any and
      all claims, of any nature whatsoever, which I now or may hereafter have for infringement of any Proprietary Rights assigned hereunder to the Company.

     

    4.          Records.  I agree to keep and maintain adequate and current
      records (in the form of notes, memoranda, sketches, drawings and in any other form that may be required by the Company) of all Proprietary Information and all Company Inventions made, conceived, developed or reduced to practice by me, which records
      shall be available to and remain the sole property of the Company at all times.

     

    5.          No Conflicting Obligation.  I represent that my performance of all the terms of this Agreement and
      as an employee of the Company has not breached, and does not and will not breach, any agreement to keep in confidence information acquired by me in confidence or in trust prior to, or outside the scope of, my employment by the Company and any
      agreement not to compete with the business of any third party.  I have not entered into, and I agree I will not enter into, any agreement, either written or oral, in conflict herewith.

     

    6.          Return of Company Documents.  When I leave the employ of the Company, I will deliver to the Company
      any and all notes, memoranda, specifications, drawings, devices, formulas, and documents, together with all copies thereof, and any other material containing or disclosing any Company Inventions, Third Party Information or Proprietary Information of
      the Company.  I further agree that, during the term of my employment with the Company or at any time thereafter, any property situated on the premises of the Company or any of its subsidiaries or controlled affiliates, including disks and other
      storage media, filing cabinets or other work areas, is subject to inspection by Company personnel at any time with or without notice.

     

    7.          Legal and Equitable Remedies.  Because my services are personal and unique and because I may have
      access to and become acquainted with the Proprietary Information of the Company, the Company shall have the right to enforce this Agreement and any of its provisions by injunction, specific performance, or other equitable relief which may be
      available in aid of, or in addition to, any proceeding pursuant to my Agreement to Arbitrate Claims, without bond and without prejudice to any other rights and remedies that the Company may have for a breach of this Agreement.  The seeking or
      availability of such equitable relief shall not affect the Company’s right to seek and obtain damages or other relief from a court of competent jurisdiction or pursuant to my Agreement to Arbitrate Claims on account of any actual or threatened breach
      by you of this Agreement.  In the event that the Company enforces the provisions of Section 4 or Section 5 hereof through a court order, I agree that the restrictions contained in Section 4 or Section 5, as the case may be, shall remain in effect for
      a period of one year from the effective date of such court order.

     

    
      5

      
        

    

    8.          Notices.  Any notices required or permitted hereunder shall be given to the appropriate party at the
      address specified below or at such other address as the party shall specify in writing.  Such notice shall be deemed given upon personal delivery to the appropriate address, one (1) business day after dispatch if sent by nationally recognized courier
      or overnight delivery service, on the date of dispatch if sent by facsimile or electronic mail for which confirmation of transmission is provided or, if sent by certified or registered mail, three (3) business days after the date of mailing.

     

    9.          General Provisions

     

    9.1          Governing Law; Consent to Personal Jurisdiction.  This Agreement will be governed by and construed
      according to the laws of Delaware, as such laws are applied to agreements entered into and to be performed entirely within Delaware between Delaware residents. I hereby expressly consent to the exclusive personal jurisdiction of the state and federal
      courts located in Delaware for any lawsuit filed there against me by the Company arising from or related to this Agreement.

     

    9.2          Severability.  In the event any provision or portion of this Agreement may be held to be invalid,
      prohibited or unenforceable for any reason, unless such provision is narrowed by judicial construction, this Agreement shall be construed as if such provision has been more narrowly drawn so as not to be invalid, prohibited or unenforceable. If,
      notwithstanding the foregoing, any provision may nevertheless be held to be invalid, prohibited or unenforceable for any reason then, and to that extent only, such provision shall be ineffective without affecting or invalidating the remaining portion
      of such provision or the other provisions of this Agreement.

     

    9.3          Successors and Assigns.  This Agreement will be binding upon my heirs, executors, administrators and other
      legal representatives and will be for the benefit of the Company, its successors, and its assigns.  Without limiting the generality of the foregoing, if I become an employee of any subsidiary or controlled affiliate of the Company, then (i) such
      subsidiary or controlled affiliate shall be deemed and treated as an intended third party beneficiary of this Agreement to the same extent as if such subsidiary or controlled affiliate were a party to this Agreement and (ii) each reference in this
      Agreement to the term “Company” shall be deemed to be a reference to whichever of BioSpecifics Technologies Corp. and/or such subsidiary or controlled affiliate is my employer.

     

    9.4          Survival.  The provisions of this Agreement shall survive the termination of my employment with the
      Company and the assignment of this Agreement by the Company to any successor in interest or other assignee.

     

    9.5          Employment.  I agree and understand that nothing in this Agreement shall confer any right on me or the
      Company with respect to continuation of my employment with the Company, nor shall it interfere in any way with my right or the Company’s right to terminate my employment at any time, with or without cause.

     

    9.6          Waiver.  No waiver by the Company of any breach of this Agreement shall be valid unless in writing and
      signed by the party giving such waiver and no such waiver shall be a waiver of any preceding or succeeding breach.  No waiver by the Company of any right under this Agreement shall be construed as a waiver of any other right.  The Company shall not
      be required to give notice to enforce strict adherence to all terms of this Agreement.

     

    
      6

      
        

    

    9.7          Entire Agreement. This Agreement is the final, complete and exclusive agreement of the parties with
      respect to the subject matter hereof and supersedes all prior agreements relating to the subject matter hereof and merges all prior discussions between us.  No modification of or amendment to this Agreement, nor any waiver of any rights under this
      Agreement, will be effective unless in writing and signed by the party to be charged.

     

    9.8          Counterparts.  This Agreement may be signed in counterparts, each shall be deemed an original and shall
      together constitute one agreement.

     

    9.9          Acknowledgement.  I acknowledge that this Agreement is a condition to my employment with the Company and
      that I have had a full and adequate opportunity to read, understand and discuss with my advisors, including legal counsel, the terms and conditions contained in this Agreement prior to signing hereunder.

     

    [Remainder of page intentionally left blank]

     

    
      7

      
        

    

    I have read this Agreement carefully and understand its terms.  I have completely filled out Exhibit A
      to this Agreement.

    

    

    	
            /s/ Joseph Truitt

          	 
	
            Joseph Truitt

          	 
	 	 
	
            Address:

          	 
	
            Date: April 2, 2020

          	 
	 	 
	
            Accepted and Agreed:

          	 
	
            BioSpecifics Technologies Corp.

          	 
	 	 
	
            By: /s/ Jennifer Chao

          	 
	
            Name: Jennifer Chao

          	 
	
            Title: Chairman of the Board

          	 
	 	 
	
            Address:

          	 
	
            Date: April 1, 2020

          	 

    

    

    

    

    8

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