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  Exhibit 10.5

 

EMPLOYMENT AGREEMENT

 

THIS
EMPLOYMENT AGREEMENT
(“Agreement”)
is made and entered into as of this 7th day of November,
2018 with an effective date as of the 6th day of November, 2018
(the “Effective
Date”), by and between Fusion Connect, Inc., a
Delaware corporation (hereinafter called the “Company”),
and Matthew D. Rosen (hereinafter called “Executive”).

 

W I T N E S S E T H:

 

WHEREAS, the Company currently employs
Executive as Chief Executive Officer pursuant to the terms of an
employment agreement, dated as of November 5, 2015, by and between
the Company and Executive (the “2015
Agreement”);

 

WHEREAS, the Company and its
wholly-owned subsidiary Fusion BCHI Acquisition LLC
(“Merger
Sub”) entered into an Agreement and Plan of Merger
(“Merger
Agreement”) with Birch Communications Holdings, Inc.
(“BCHI”),
pursuant to which, among other things, BCHI merged with and into
Merger Sub (the “Merger”)
and the separate corporate existence of BCHI ceased with Merger Sub
as the surviving corporation in the Merger;

 

WHEREAS, the Company and Executive
desire to continue Executive’s employment with the Company,
on the terms set forth in this Agreement (the “Closing”);

 

WHEREAS, upon the Effective Date, this
Agreement shall supersede and replace the 2015 Agreement and all
prior agreements concerning the terms of Executive’s
employment with the Company that may exist in its
entirety.

 

NOW THEREFORE, the Company and
Executive, intending to be legally bound, hereby mutually covenant
and agree as follows:

 

ARTICLE I

Employment and Term

 

1.1 Employment and Term. The
Company hereby agrees to continue to employ Executive and Executive
hereby agrees to continue to serve the Company, on the terms and
conditions set forth herein, for the period commencing on the
Effective Date and expiring on October 31, 2021 (the
“Initial
Term”), unless sooner terminated as hereinafter set
forth; provided, however, that the Initial Term shall automatically
be extended for an additional two (2) year period thereafter (the
“Term
Extension,” together with the
Initial Term, the “Employment
Period”) unless and until one party provides the other
party with written notice of its intent to terminate the Initial
Term no less than ninety (90) days prior to its expiration. This
Agreement shall supersede and replace the 2015 Agreement and all
prior agreements concerning the terms of Executive’s
employment with the Company that may exist in their
entirety.

 

 

 

 

1.2 Duties of Executive. For the
Employment Period, Executive shall continue to serve as the Chief
Executive Officer of the Company and each of its subsidiaries
(collectively, the “Companies”)
and shall have powers and authority superior to any other officer
or employee of the Companies. In addition, during the Employment
Period, Executive shall serve as the Chairman of the Board of
Directors of the Company (the “Board”).
Executive shall be required to report solely to, and shall be
subject solely to the supervision and direction of, the Board and
no other person or group shall be given authority to supervise or
direct Executive in the performance of his duties. In addition,
Executive shall regularly consult with the Vice-Chairman of the
Board with respect to the Company’s business and affairs.
Executive shall devote substantially all his working time and
attention to the business and affairs of the Company (excluding any
vacation and sick leave to which the Executive is entitled), render
such services to the best of his ability, and use his reasonable
best efforts to promote the interests of the Companies. It shall
not be a violation of this Agreement for the Executive to (a) serve
on corporate, civic or charitable boards or committees, (b) deliver
lectures, fulfill speaking engagements or teach at educational
institutions, and (c) manage personal investments, so long as such
activities do not interfere in any material manner with the
performance of the Executive’s responsibilities as the Chief
Executive Officer of the Companies in accordance with this
Agreement.

 

1.3 Place of Performance. In
connection with his employment by the Company, the Executive shall
be based at the Company’s principal executive offices located
in Manhattan, New York except for travel reasonably necessary in
connection with the Company’s business.

 

ARTICLE II

Compensation
and Benefits

 

2.1 Base Salary. Commencing on
December 31, 2018, Executive shall receive a base salary at the
annual rate of not less than $1,000,000.00 (the “Base
Salary”) during the Employment Period, with such Base
Salary payable in installments consistent with the Company’s
normal payroll schedule, but in no event less frequently than
monthly, and subject to applicable withholding and other taxes. The
Base Salary shall be reviewed by the Board (or authorized committee
thereof) on an annual basis and will be adjusted for cost of living
increases, performance, and market conditions. The Base Salary, if
increased, shall not thereafter be decreased for any
reason.

 

2.2 Annual Incentive Compensation.
For each calendar year during the Employment Period, Executive
shall be entitled to receive annual bonus payments and/or incentive
compensation based upon the achievement of corporate and individual
performance targets, which shall be determined by the Board (or any
authorized committee thereof) within the first 90 days of each
calendar year after consultation with the Executive. Such potential
bonus payments and/or incentive compensation shall be considered at
least annually by the Board or committee and shall be determined in
good faith by the Board or committee based upon actual corporate
and individual performance for such year and shall be payable in
accordance with the procedures specified by the Board.
Executive’s annual bonus targeted amount will be up to two
hundred percent (200%) and no less than fifty percent (50%) of
Executive’s Base Salary then in effect; provided, however, that for the initial
calendar year of employment, Executive shall receive an annual cash
bonus with a minimum annual payout level for such bonus of 50% of
his Base Salary. In determining annual bonuses, the Board shall
consider, among other factors, the role that Executive has played
during the year in structuring proposed mergers and acquisitions
and financing transactions and any investment banking fees that may
have been saved as a result of him providing such services of the
Company’s behalf. Annual bonus payments and/or incentive
compensation shall be paid no later than March 15th of the year
following the end of the performance period.

 

 

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2.3 Special Cash Bonus. In
recognition of the strategic leadership that Executive will
continue to provided the Company with regard to on-going
integration activities associated with the Company’s
acquisition of Birch Communications and MegaPath, Executive shall
receive a special cash bonus in the amount of $2,383,333.28,
subject to applicable withholdings, $563,888.88 to be paid on
January 15, 2019 and $363,888.88 to be paid on each of February 15,
March 15, April 15, May 15 and June 15, 2019 (each such date a
“Payment Date”). Interest shall accrue on the
$2,383,333.28 cash bonus from May 5, 2018 at the rate of eight
percent (8%) per annum with such interest amount to be paid pro
rata on the same date as the bonus Payment Date(s) in
2019.

 

2.4 Equity
Compensation.

 

(a) Executive shall be
entitled to participate in all equity compensation plans of the
Company (the “Plans”)
in effect during the term of this Agreement.

 

(b) The Company agrees
to grant Executive 3,961,934 shares of restricted stock of the
Company (the “Restricted Stock
Award”) pursuant to the Fusion Telecommunications
International, Inc. 2016 Equity Plan (the “2016 Equity
Incentive Plan”), within five (5) business days
following execution of this Agreement by both parties.

 

Notwithstanding
the date on which the shares of restricted stock are actually
granted and delivered to Executive, the Restricted Stock Award
shall vest and be non-forfeitable as follows: (i) 657,682 shares
shall be vested on the date this Agreement is executed by both
parties, and (ii) 10.0% of the remaining 3,304,249 shares of
restricted stock shall vest and be non-forfeitable on a quarterly
basis over a 2.5 year period until all of the shares have vested
subject to Executive’s continued employment with the Company
on each such vesting date, except as otherwise set forth herein.
The Company shall permit Executive to satisfy any federal, state,
local and employment tax withholding obligations by withholding
shares of stock subject to the Restricted Stock Award as permitted
pursuant to Article 15 of the 2016 Equity Incentive Plan or any new
equity incentive plan, as the case may be, and any applicable award
agreement.

 

(c) Notwithstanding the
preceding clause (b) or anything contained in this Agreement to the
contrary, all options, restricted shares or other equity-based
grants (whether granted in connection with the Agreement or
otherwise and whether or not granted and delivered under clause
(b)) shall vest and become immediately exercisable as to 100% of
the shares of common stock not otherwise vested upon any
termination of Executive’s employment pursuant to
Section
3.5. Moreover, all equity-based awards held by Executive as
of immediately prior to any “Change in
Control” (as hereinafter defined) shall vest in full
immediately upon a Change in Control, with all applicable
performance-based vesting conditions deemed satisfied at the
maximum level. In the event that Executive is terminated pursuant
to Section 3.5,
Executive shall have the right to exercise his options for the
longer of (i) five (5) years from the effective date of his
employment termination (but not beyond the expiration date of the
options which shall be the tenth anniversary of the grant date), or
(ii) the remaining term of the options. For the avoidance of doubt,
the Company’s non-renewal of Executive’s employment
following expiration of the Initial Term or any Term Extension
shall be considered as a Termination Without Cause pursuant to
Section
3.5 for purposes of vesting of any and all unvested options
and restricted shares. Additionally, notwithstanding the preceding
clause (c) or anything contained in this Agreement to the contrary,
an additional eighteen (18) months of the unvested options and
restricted shares shall vest and become immediately exercisable
upon any termination of Executive’s employment pursuant to
Sections 3.2 or
3.3.

 

 

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(d) The Company shall
take all action reasonably requested by Executive to permit a
“cashless” exercise of some or all of his options or
the payment of applicable federal, state, local and employment
taxes upon the vesting of restricted shares or the settlement of
any other equity-based awards in accordance with the terms of the
applicable Plan.

 

(e) During the
Employment Period, Executive shall be eligible to receive, from
time to time, other equity-based awards in amounts, and subject to
such terms, conditions, and restrictions as determined by the
Compensation Committee of the Board in its sole discretion. The
methodology for determining the amount, terms, conditions, and
restrictions of Executive’s equity-based awards during the
Employment Period will be no less favorable to Executive than the
methodology used by the Compensation Committee of the Board for all
other senior-level executives of the Companies.

 

(f) The provisions of
the Plans shall not be adversely modified as to the Executive
without the Executive’s prior written consent.

 

2.5 Expense Reimbursement. During
the Employment Period, the Company, upon the submission of
reasonable supporting documentation by Executive, shall reimburse
Executive for all reasonable expenses actually paid or incurred by
Executive in the course of, and pursuant to, the business of the
Company, including expenses for travel and entertainment. Expenses
shall be reimbursed under this Section
2.5 within sixty
(60) days of submission of reasonably supporting documentation by
Executive.

 

2.6 Incentive, Savings and Retirement
Plans. During the Employment Period, Executive shall be
entitled to participate in all incentive, savings and retirement
plans, practices, policies and programs applicable to other key
executives of the Companies, in each case comparable to those
currently in effect or as subsequently amended. Such plans,
practices, policies and programs, in the aggregate, shall provide
Executive with compensation, benefits and reward opportunities at
least as favorable as the most favorable of such compensation,
benefits and reward opportunities provided at any time hereafter
with respect to other key executives of the Companies.

 

2.7 Welfare Benefit Plans. During
the Employment Period, Executive and/or Executive’s spouse
and eligible dependents, as the case may be, shall be eligible for
participation in, and shall receive all benefits under, welfare
benefit plans, practices, policies and programs provided by the
Companies (including, without limitation, medical, prescription,
dental, disability, salary continuance, employee life, group life,
accidental death and travel accident insurance plans and programs),
at least as favorable as the most favorable of such plans,
practices, policies and programs in effect at any time hereafter
with respect to other key executives of the Companies.

 

2.8 Working Facilities. During the
Employment Period, the Company shall furnish the Executive with an
office, a secretary and such other facilities and services suitable
to his position and adequate for the performance of his duties
hereunder.

 

2.9 Vacation. During the Employment
Period, the Executive shall be entitled to paid vacation in
accordance with the most favorable plans, policies, programs and
practices of the Companies as in effect at any time hereafter with
respect to other key executives of the Companies; provided,
however, that in no event shall Executive be entitled to fewer than
five (5) weeks paid vacation per year.

 

 

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2.10 Indemnification;
D&O Insurance. The Company shall at all times maintain
directors’ and officers’ liability insurance under
which Executive shall be covered on a basis that is no less
favorable than the coverage provided to any director or executive
officer of the Companies, and the Company shall otherwise indemnify
Executive to the fullest extent permitted by applicable law,
whether under the Company’s governing documents or
otherwise.

 

2.11 Sale
Bonus. In the event that all or substantially of the
consolidated assets of the Companies are sold, or more than 50% of
its equity securities (in vote and value) is sold to a person or
entity, or group of affiliated persons or entities, in one or a
series of related transactions (“Company
Sale”), during the term of this Agreement while
Executive remains employed as Chief Executive Officer of the
Companies or if transaction documents in respect of a Company Sale
are signed during the six-month period immediately following
Executive’s termination for any reason other than a
Termination for Cause pursuant to Section 3.1
below, Executive will be eligible to receive, and the Company shall
pay, within five (5) business days of closing of the Company Sale,
a one-time bonus equal to 3% of the aggregate consideration
paid/distributed to stockholders of the Company, which bonus shall
be paid in cash.

 

ARTICLE III

Termination

 

3.1 Termination for Cause.
Notwithstanding anything contained in this Agreement to the
contrary, this Agreement may be terminated by the Company for
Cause. As used in this Agreement, “Cause”
means (a) subject to the following sentences, an act or acts of
personal dishonesty taken by Executive and intended to result in
personal enrichment of Executive at the expense of the Companies
and that are not remedied within thirty (30) days after receipt of
written notice thereof from the Company, (b) subject to the
following sentences, violation by Executive of any material
obligations of Executive under this Agreement which are
demonstrably willful and deliberate on Executive’s part and
which are not remedied within thirty (30) days after receipt of
written notice thereof from the Company, or (c) the conviction of
the Executive for any criminal act which is a felony. Upon any
determination by the Board that Cause exists under clauses (a) and
(b) of the preceding sentence, the Board shall cause a special
meeting of the Board to be called and held at a time mutually
convenient to the Board and Executive, but in no event later than
ten (10) business days after Executive’s receipt of the
notice contemplated by clauses (a) and (b). Executive shall have
the right to appear before such special meeting of the Board with
legal counsel of his choosing to refute any determination of Cause
specified in such notice, and any termination of Executive’s
employment by reason of such Cause determination shall not be
effective until Executive is afforded such opportunity to appear,
unless Executive fails to make himself available during such ten
(10) business day period. Any termination for Cause pursuant to
clause (a) or (b) of the first sentence of this Section 3.1
shall be made in writing by the Board to Executive, which notice
shall set forth in reasonable detail all acts or omissions upon
which the Board is relying for such termination. Upon any
termination pursuant to this Section 3.1,
Executive shall be entitled to be paid his Base Salary to the date
of termination and the Company shall have no further liability
hereunder (other than for reimbursement for reasonable business
expenses incurred prior to the date of such termination). For
purposes of this provision, no act or failure to act, on the part
of Executive, shall be considered “willful” unless it
is done, or omitted to be done, by Executive in bad faith or
without reasonable belief that Executive’s action or omission
was in the best interests of the Company. Any act, or failure to
act, based upon authority given pursuant to a resolution duly
adopted by the Board or based upon the advice of counsel for the
Company shall be conclusively presumed to be done, or omitted to be
done, by Executive in good faith and in the best interests of the
Company. If the Board does not deliver to Executive written notice
of termination within sixty (60) days after the Board has actual
knowledge that an event constituting Cause has occurred, the event
will no longer constitute Cause.

 

 

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3.2 Disability. Notwithstanding
anything contained in this Agreement to the contrary, the Board, by
written notice to Executive, shall at all times have the right to
terminate this Agreement, and Executive’s employment
hereunder, as a result of Executive’s Disability. As used in
this Agreement, “Disability” means the absence of
Executive from Executive’s duties and responsibilities
provided for herein for a period of more than one hundred twenty
(120) consecutive days in any 12-month period as a result of
incapacity due to mental or physical illness which is determined to
be total and permanent by a physician selected by (i) the Company
and reasonably acceptable to Executive or Executive’s legal
representative and (ii) the insurance company which insures the
Company’s long-term disability plan in which the Executive is
eligible to participate. In such event, Executive’s
employment with the Company shall terminate effective on the 10th
day after receipt of such notice by Executive (the
“Disability
Effective Date”), provided that, within the 10 days
after such receipt, Executive shall not have returned to full-time
performance of Executive's duties. Subject to Section 3.7,
upon any termination pursuant to this Section 3.2,
Executive shall be entitled to be paid an amount equal to Base
Salary for the remaining term of the Agreement. In the event that
this Agreement has less than six (6) months remaining at such time,
Executive shall be entitled to a payment equal to six (6) months of
his Base Salary. In addition, Executive shall be entitled to any
earned but unpaid bonus payments, incentive compensation and/or
equity compensation pursuant to Article II
above, any accrued but unused vacation pay, reimbursement for
reasonable business expenses incurred prior to the date of
termination (collectively, the “Accrued
Obligations”), as well as any applicable disability
income payments under any disability income plan of the
Company.

 

3.3 Death. In the event of the
death of Executive during the term of this Agreement, the Company
shall pay to the estate of the deceased Executive an amount equal
to the Base Salary for the remaining term of this Agreement. In the
event that this Agreement has less than six (6) months remaining at
such time, Executive’s estate shall be entitled to a payment
equal to six (6) months of his Base Salary. In addition,
Executive’s estate shall be entitled to the Accrued
Obligations, as well as any applicable life insurance benefits
under any life insurance plan of the Company.

 

3.4 Optional Termination.
Notwithstanding anything contained in this Agreement to the
contrary, Executive shall, by giving the Company no less than
thirty (30) days prior written notice, have the right to terminate
this Agreement at his sole discretion. Upon any termination
pursuant to this Section 3.4,
the Execution shall be entitled to be paid his Base Salary to the
date of termination and the Company shall have no further liability
hereunder (other than the Accrued Obligations), unless the
Executive and the Company agree to a different
arrangement.

 

3.5 Termination Without Cause. At
any time during the Employment Period, the Company shall have the
right to terminate Executive’s employment hereunder by
written notice to Executive; provided, however, that in addition to
the Accrued Obligations the Company shall (a) pay to Executive in
cash, in twelve (12) equal monthly installments, after the
effective date of the termination, any pro-rata bonus that would be
payable had Executive completed a full year of employment and
performance metrics, if any, were met, (b) pay to Executive, in
cash, in twelve (12) equal monthly installments, after the
effective date of the termination, an amount equal to two hundred
percent (200%) of his Base Salary then in effect and two hundred
percent (200%) of his highest annual bonus for the three (3) years
preceding Executive’s termination subject to Section 3.7,
and (c) use reasonable efforts to maintain Executive’s
coverage (and, where applicable, the coverage for his spouse and
eligible dependents) under the Company’s medical plan(s) for
the duration of the Post-Employment Restricted Period (as defined
below) on the same terms as immediately prior to the termination of
Executive’s employment, provided that, in the event that such
coverage cannot be maintained, the Company shall, for the duration
of the Post-Employment Restricted Period, reimburse Executive for
premiums paid by Executive to continue such coverage pursuant to
COBRA. The Company shall be deemed to have terminated the
Executive’s employment pursuant to this Section 3.5
if such employment is terminated (a) by the Company without Cause,
or (b) by the Executive voluntarily for “Good Reason.”
For purposes of this Agreement, “Good Reason”
means:

 

 

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(i) the assignment to
Executive of any duties inconsistent in any material respect with
Executive’s position (including status, offices, titles and
reporting requirements), authority, duties or responsibilities as
contemplated by Section 1.2
of this Agreement, or any other action by the Company which results
in a diminution in such position, authority, duties or
responsibilities, excluding for this purpose an isolated,
insubstantial and inadvertent action not taken in bad faith and
which is remedied by the Company promptly after receipt of notice
thereof given by Executive;

 

(ii) any
failure by the Company to comply with any of the provisions of
Article
II or Section 5.9
of this Agreement, other than an isolated, insubstantial and
inadvertent failure not occurring in bad faith and which is
remedied by the Company promptly after receipt of notice thereof
given by Executive;

 

(iii) the
Company’s requiring Executive to be based at any office or
location more than 25 miles from Grand Central Station in New York,
New York, except for travel reasonably required in the performance
of Executive’s responsibilities;

 

(iv) any
change in the designation of the person that Executive is obligated
to report to under Section 1.2
hereof;

 

(v) any purported
termination by the Company of Executive’s employment
otherwise than as expressly permitted by this
Agreement;

 

(vi) any
failure by the Company to comply with and satisfy Section
5.3(c) of this Agreement;

 

(vii) any
termination by Executive for any reason during the six (6)-month
period following the effective date of any “Change in
Control”; or

 

(viii) all
payments pursuant to Section 3.5
are conditioned upon Executive’s execution and delivery of a
release (the “Release”)
of any and all claims that Executive may have against the Companies
and their directors, officers or stockholders related to
Executive’s employment and/or termination of employment and
such release becoming effective and irrevocable in accordance with
its terms on or before the 30th day following
Executive’s termination of employment. If Executive fails to
execute and deliver the Release, or if the Release has not become
effective and irrevocable by the 30th day after the date
of Executive’s termination of employment, Executive shall not
be entitled to any payments pursuant to Section 3.5;
provided,
however, that if
the 30-day period begins in one taxable year and ends in a second
taxable year, such payments shall not commence until the second
taxable year. The Release shall be in a form satisfactory to the
Company and shall be a general release of all claims, except that
such release shall not include and shall not limit or release (A)
Executive’s rights or claims relating to the obligations of
the Company under this Agreement that are conditioned upon
execution of the Release; (B) Executive’s rights to
indemnification from the Companies in respect of Executive’s
services as a director, officer or employee of the Companies (or of
any entity for which Executive has served in any such capacity or a
similar capacity at the request of the Companies) as provided by
law, any indemnification agreement or similar agreement by and
between the Company and Executive, the certificates of
incorporation or bylaws (or like constitutive documents), or any of
Executive’s rights to payment under any director’s and
officer’s liability insurance carried by the Companies; (C)
Executive’s entitlement, if any, to continued medical, dental
and vision insurance coverage under and pursuant to COBRA; (D) any
rights of Executive under any welfare benefit plan, practice or
program provided by the Companies (including medical, dental,
short-term and long-term disability, salary continuance, life
insurance, accidental death and travel accident insurance plans and
programs) in which Executive participated prior to the termination
date; or (E) any rights or claims of Executive that may arise out
of events occurring after the effective date of the Release. The
Company shall promptly deliver the Release to Executive upon
termination of his employment.

 

 

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3.6 Benefits. Except as otherwise
expressly provided herein or in the applicable plan,
Executive’s accrual of, or participation in plans providing
for, the benefits pursuant to Sections
2.6 and 2.7 shall
cease at the effective date of the termination of employment under
this Agreement, and Executive shall be entitled to accrued benefits
pursuant to such plans only as provided in such plans.

 

3.7 Section 409A.

 

(a) This Agreement is
intended to comply with or otherwise be exempt from Section 409A
and its corresponding regulations, to the extent applicable, and
shall be so construed. Notwithstanding anything in this Agreement
to the contrary, payments of “nonqualified deferred
compensation” subject to Section 409A may only be made under
this Agreement upon an event and in a manner permitted by Section
409A, to the extent applicable. For purposes of Section 409A, all
payments of “nonqualified deferred compensation”
subject to Section 409A to be made upon the termination of
Executive’s employment under this Agreement may only be made
upon a “separation from service” under Section 409A.
Each payment made under this Agreement shall be treated as a
separate payment and the right to a series of installment payments
under this Agreement is to be treated as a right to a series of
separate payments. In no event shall Executive, directly or
indirectly, designate the calendar year of payment with respect to
any amount that is “nonqualified deferred compensation”
subject to Section 409A. All reimbursements provided under this
Agreement that are “nonqualified deferred compensation”
that is subject to Section 409A shall be made or provided in
accordance with Section 409A, including, where applicable, the
requirements that (a) any reimbursement is for expenses incurred
during the Employment Period (or during such other time period
specified in this Agreement), (b) the amount of expenses eligible
for reimbursement during a calendar year may not affect the
expenses eligible for reimbursement in any other calendar year, (c)
the reimbursement of an eligible expense will be made on or before
the last day of the taxable year following the year in which the
expense is incurred, and (d) the right to reimbursement is not
subject to liquidation or exchange for another benefit. Nothing
herein shall be construed as having modified the time and form of
payment of any amounts or payments of “nonqualified deferred
compensation” within the meaning Section 409A that were
otherwise payable pursuant to the terms of any agreement between
Company and Executive in effect prior to the date of this
Agreement.

 

(b) If Executive is
considered a “specified employee” (as defined under
Section 409A) and payment of any amounts under this Agreement is
required to be delayed for a period of six (6) months after
separation from service pursuant to Section 409A, payment of such
amounts shall be delayed as required by Section 409A, and the
accumulated postponed amounts shall be paid in a lump-sum payment
within five (5) days after the end of the six (6) month period. If
Executive dies during the postponement period prior to the payment
of benefits, the amounts postponed on account of Section 409A shall
be paid to the personal representative of Executive’s estate
within sixty (60) days after the date of Executive’s
death.

 

3.8 Definition of “Change in
Control”. For purposes of this Agreement, a
“Change in
Control” shall mean:

 

 

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(i) The acquisition
(other than by or from the Company), at any time after the date
hereof, by any unaffiliated person, entity or “group”,
within the meaning of Section 13(d)(3) or 14(d)(2) of the
Securities Exchange Act of 1934 (the “Exchange
Act”), of beneficial ownership (within the meaning of
Rule 13d-3 promulgated under the Exchange Act) of 50% or more of either the then
outstanding shares of common stock or the combined voting power of
the Company’s then outstanding voting securities entitled to
vote generally in the election of directors; or

 

(ii) All
or any of the seven (7) individuals who, as of the date hereof,
constitute the Board (as of the date hereof the “Incumbent
Board”) cease for any reason to constitute at least a
majority of the Board, provided that any person becoming a director
subsequent to the date hereof whose election, or nomination for
election by the Company’s stockholders, was approved by a
vote of at least a majority of the directors then comprising the
Incumbent Board (other than an election or nomination of an
individual whose initial assumption of office is in connection with
an actual or threatened election contest relating to the election
of the directors of the Company, as such terms are used in Rule
14a-l l of Regulation 14A promulgated under the Exchange Act) shall
be, for purposes of this Agreement, considered as though such
person were a member of the Incumbent Board; or

 

(iii) Approval
by the stockholders of the Company of (A) a reorganization, merger
or consolidation with respect to which persons who were the
stockholders of the Company immediately prior to such
reorganization, merger or consolidation do not, immediately
thereafter, own more than fifty percent (50%) of the combined
voting power entitled to vote generally in the election of
directors of the reorganized, merged or consolidated
company’s then outstanding voting securities, (B) a
liquidation or dissolution of the Company, or (C) the sale of all
or substantially all of the assets of the Companies, unless the
approved reorganization, merger, consolidation, liquidation,
dissolution or sale is subsequently abandoned.

 

(iv) The
approval by the Board of the sale, distribution and/or other
transfer or action (and/or series of sales, distributions and/or
other transfers or actions from time to time or over a period of
time), that results in the Company’s ownership of less than
50% of the Company’s and its subsidiaries (on a consolidated
basis) current assets.

 

 

 

-9-

 

 

ARTICLE IV

Restrictive Covenants

 

4.1 Nondisclosure. During the
Employment Period and for twenty four (24) months thereafter,
Executive shall not divulge, communicate, use to the detriment of
the Companies or for the benefit of any other person or persons, or
misuse in any way, any Confidential Information pertaining to the
business of the Companies. Any Confidential Information or data now
or hereafter acquired by Executive with respect to the business of
the Companies shall be deemed a valuable, special and unique asset
of the Company that is received by the Executive in confidence and
as a fiduciary, and Executive shall remain a fiduciary to the
Company with respect to all of such information. For purposes of
this Agreement, “Confidential
Information” means all material information about the
business of the Companies disclosed to the Executive or known by
the Executive as a consequence of or through his employment by the
Company (including information conceived, originated, discovered or
developed by Executive) after the date hereof, and not generally
known or readily available to the public. The above restrictions
shall not apply to: (a) information that at the time of disclosure
is in the public domain through no fault of Executive; (b)
information received from a third party outside of the Company that
was disclosed without a breach of any confidentiality obligation;
(c) information approved for release by a written authorization of
the Company; or (d) information that may be required by law or an
order of any court, agency, or proceeding to be disclosed. For the
avoidance of doubt, nothing herein is intended to or shall prohibit
Executive from utilizing any knowledge, information, business
techniques and/or methods that Executive knew prior to his
affiliation with the Companies, or that are generally known and
used by persons with training and experience comparable to that of
Executive, or that are common knowledge in the industry. Moreover,
nothing in this Agreement is intended to or shall limit any
party’s ability to (x) report possible violations of federal
securities laws to the appropriate government enforcing agency and
make such other disclosures that are expressly protected under
federal or state “whistleblower” laws or (y) respond to
inquiries from, or otherwise cooperate with, any governmental or
regulatory investigation.

 

4.2 Nonsolicitation of Employees.
During the Employment Period and for a period of eighteen (18)
months thereafter, Executive shall not directly or indirectly, for
himself or for any other person, firm, corporation, partnership,
association or other entity, attempt to employ or enter into any
contractual arrangement with any employee of the Companies or
former employee of the Companies, unless such employee or former
employee has not been employed by the Company or one of its
subsidiaries for a period in excess of three (3) months.
Notwithstanding the foregoing, the provisions of this Section 4.2
shall not be violated by (a) general advertising or solicitation
not specifically targeted at employees of the Companies or (b)
actions taken by any person or entity with which Executive is
associated if Executive is not directly or personally involved in
any manner in such solicitation or recruitment and has not
identified such employee for recruiting or
solicitation.

 

 

-10-

 

 

4.3 Covenant Not to Compete.
Executive will not, at any time, during the Employment Period, and
for a period of twelve (12) months thereafter (the
“Post-Employment
Restricted Period”), either directly or indirectly,
engage in, with or for any enterprise, institution, whether or not
for profit, business, or company, competitive with the Business (as
defined herein) of the Companies as such Business is conducted on
the date thereof, as a creditor, guarantor, or financial backer,
stockholder, director, officer, consultant, advisor, employee,
member, or otherwise of or through any corporation, partnership,
association, sole proprietorship or other entity; provided, that an
investment by Executive, his spouse or his children is permitted if
such investment is not more than four percent (4%) of the total
debt or equity capital of any such competitive enterprise or
business. As used in this Agreement, the “Business”
of the Companies shall be deemed to include the provision of any
form of traditional communications services, Internet based video
conferencing services, Unified communications as a service
(“UCaaS”),
clouding computing, cloud connectivity, cloud storage, cloud
security and software as a service (“SaaS”);
provided, however, the foregoing prohibition shall not apply to any
category of service from which the Company is deriving less than
five percent (5%) in annual revenue. The foregoing prohibition
shall not prevent Executive’s employment or engagement after
the Employment Period (a) by any entity as long as the activities
of such employment or engagement do not involve work on matters
related to the Business or (b) by an investment fund that invests
in entities engaged in the Business so long as Executive is not
employed or engaged as an executive officer or director of such
entity engaged in the Business. This covenant not to compete for
the Post-Employment Restricted Period shall only be effective if
Executive has received all compensation and benefits due to him
pursuant to this Agreement, including but not limited to
compensation and benefits under Section 3.5,
to the extent applicable. For the avoidance of doubt, in the event
of the Company’s non-renewal of Executive’s employment
following expiration of the Initial Term or any Term Extension, the
covenant not to compete for one (1) year shall only apply if and to
the extent that the Company elects to pay severance to Executive in
an amount equivalent in all respects to that which he would be
entitled to receive as if he was terminated Without Cause pursuant
to Section 3.5.
The Company shall have the right in its sole discretion to waive
this non-compete clause, in whole or in part.

 

4.4 Mutual Non-disparagement.
Executive agrees that he will not, directly or indirectly,
individually or in concert with others, engage in any conduct or
make any statement that is likely to have the effect of undermining
or disparaging the reputation of the Company, or its good will,
products, or business opportunities, or that is likely to have the
effect of undermining or disparaging the reputation of any officer,
director, agent, representative or employee, past or present, of
the Company. The Company agrees that, except for circumstances
relating to a termination of Executive’s employment by the
Company for Cause, its executive officers or directors shall not
directly or indirectly, individually or in concert with others,
engage in any conduct or make any statement that is likely to have
the effect of undermining or disparaging the reputation of
Executive.

 

4.5 Injunction. It is recognized
and hereby acknowledged by the parties that a breach by Executive
of any of the covenants contained in Section 4.1,
4.2,
4.3 or
4.4 of this
Agreement will cause irreparable harm and damage to the Company or
the Companies, as the case may be, the monetary amount of which may
be virtually impossible to ascertain. As a result, Executive
recognizes and hereby acknowledges that the Company shall be
entitled to seek an injunction from any court of competent
jurisdiction in Manhattan, New York enjoining and restraining any
violation of any or all of the covenants contained in this
Article
IV by the Executive, and that such right to injunction shall
be cumulative and in addition to whatever other remedies the
Company may possess.

 

 

-11-

 

 

ARTICLE V

Miscellaneous

 

5.1 Governing Law; Jurisdiction.
This Agreement shall be governed by, and construed and enforced in
accordance with, the laws of the State of New York without giving
effect to any conflicts-of-law provisions. In respect of any claim
arising out of or relating to this Agreement, the parties hereby
irrevocably submit to the exclusive jurisdiction of the United
States District Court for the Southern District of New York, or any
state court located in Manhattan, New York.

 

5.2 Notices. Any notice required or
permitted to be given under this Agreement shall be in writing and
shall be deemed to have been given when delivered by hand or when
deposited in the United States mail, by registered or certified
mail, return receipt requested, postage prepaid, addressed as
follows:

 

 

 

 

 

-12-

 

 

 

	

If to
the Company:

 

	

Fusion
Connect, Inc.420 Lexington Avenue,Suite 1718New York, New York
10170Attention: General Counsel

 

	
 

	

with
copy to Vice-Chairman of the Board of Directors

 

	

If to
Executive:

 

	

Matthew
D. Rosen(to his last known address in the records of the
Company)

with a
copy to Brian S. Kaplan, Esq., DLA Piper LLP (US)

1251
Avenue of the Americas

New
York, NY 10020

 

or to
such other addresses as either party hereto may from time to time
give notice of to the other in the aforesaid manner.

 

5.3 Successors.

 

(a) This Agreement is
personal to Executive and without the prior written consent of the
Company shall not be assignable by Executive otherwise than by will
or the laws of descent and distribution. This Agreement shall inure
to the benefit of, and be enforceable by, Executive’s legal
representatives.

 

(b) This Agreement
shall inure to the benefit of and be binding upon the Company and
its successors and permitted assigns.

 

(c) The Company shall
require any successor (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of
the business and/or assets of the Company to expressly assume and
agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it if no such
succession had taken place. As used in this Agreement,
“Company” shall mean the Company as hereinbefore
defined and any successor to its business and/or assets which
assumes and agrees to perform this Agreement by operation of law or
otherwise.

 

5.4 Severability. The invalidity of
any one or more of the words, phrases, sentences, clauses or
sections contained in this Agreement shall not affect the
enforceability of the remaining portions of this Agreement or any
part thereof, all of which are inserted conditionally on their
being valid in law, and, in the event that any one or more of the
words, phrases, sentences, clauses or sections contained in this
Agreement shall be declared invalid, this Agreement shall be
construed as if such invalid word or words, phrase or phrases,
sentence or sentences, clause or clauses, or section or sections
had not been inserted. If such invalidity is caused by length of
time or size of area, or both, the otherwise invalid provision will
be considered to be reduced to a period or area which would cure
such invalidity.

 

 

-13-

 

 

5.5 Waivers. The waiver by either
party of a breach or violation of any term or provision of this
Agreement shall not operate nor be construed as a waiver of any
subsequent breach or violation.

 

5.6 Damages. Nothing contained
herein shall be construed to prevent the Company or the Executive
from seeking and recovering from the other damages sustained by
either or both of them as a result of its or his breach of any term
or provision of this Agreement, or any other remedy available at
law or in equity.

 

5.7 No Third Party Beneficiary.
Nothing expressed or implied in this Agreement is intended, or
shall be construed, to confer upon or give any person (other than
the parties hereto and, in the case of Executive, his heirs,
personal representative(s) and/or legal representative) any rights
or remedies under or by reason of this Agreement.

 

5.8 Full Settlement. The
Company’s obligation to make the payments provided for in
this Agreement and otherwise to perform its obligations hereunder
shall not be affected by any set-off, counterclaim, recoupment,
defense or other claim, right or action which the Company may have
against Executive or others, or on account of any remuneration or
other benefit earned or received by Executive after the termination
of Executive’s employment hereunder. In no event shall
Executive be obligated to seek other employment or take any other
action by way of mitigation of the amounts payable to Executive
under any of the provisions of this Agreement. The Company agrees
to pay, to the full extent permitted by law, all legal fees and
expenses which Executive may reasonably incur as a result of any
contest by the Company or others of the validity or enforceability
of, or liability under, any provision of this Agreement or any
guarantee of performance thereof (including as a result of any
contest by Executive about the amount of any payment pursuant to
Section
5.9 of this Agreement), plus in each case interest at the
applicable Federal rate provided for in Section 7872(f)(2) of the
Internal Revenue Code of 1986, as amended (the “Code”).

 

5.9 Section 280G of the
Code. Notwithstanding
any other provision of this Agreement or any other plan,
arrangement or agreement to the contrary, if any of the payments or
benefits provided or to be provided by the Company or its
affiliates to Executive or for Executive’s benefit pursuant
to the terms of this Agreement or otherwise (the
“Covered
Payments”) constitute parachute payments (the
“Parachute
Payments”) within the meaning of Section 280G of the
Code and, but for this Section 5.9,
would be subject to the excise tax imposed under Section 4999 of
the Code (or any successor provision thereto) or any similar tax
imposed by state or local law or any interest or penalties with
respect to such taxes (collectively, the “Excise
Tax”), then prior to making the Covered Payments, a
calculation shall be made comparing (i) the Net Benefit (as defined
below) to Executive of the Covered Payments after payment of the
Excise Tax to (ii) the Net Benefit to Executive if the Covered
Payments are limited to the extent necessary to avoid being subject
to the Excise Tax. Only if the amount calculated under (i) above is
less than the amount under (ii) above will the Covered Payments be
reduced to the minimum extent necessary to ensure that no portion
of the Covered Payments is subject to the Excise Tax (that amount,
the “Reduced
Amount”). “Net
Benefit” shall mean the present value of the Covered
Payments net of all federal, state, local, foreign income,
employment and excise taxes.

 

 

-14-

 

 

Any
such reduction shall be made in accordance with Section 409A and
the following:

 

(i) the Covered
Payments consisting of cash severance benefits that do not
constitute nonqualified deferred compensation subject to Section
409A shall be reduced first, in reverse chronological order;
and

 

(ii) all
other Covered Payments consisting of cash payments, and Covered
Payments consisting of accelerated vesting of equity based awards
to which Treas. Reg. § 1.280G-1 Q/A-24(c) does not apply, and
that in either case do not constitute nonqualified deferred
compensation subject to Section 409A, shall be reduced second, in
reverse chronological order;

 

(iii) all
Covered Payments consisting of cash payments that constitute
nonqualified deferred compensation subject to Section 409A shall be
reduced third, in reverse chronological order; and

 

(iv) all
Covered Payments consisting of accelerated vesting of equity-based
awards to which Treas. Reg. § 1.280G-1 Q/A-24(c) applies shall
be the last Covered Payments to be reduced.

 

Any
determination required under this Section 5.9
shall be made in writing in good faith by an independent accounting
firm selected by the Company (the “Accountants”).
The Company and Executive shall provide the Accountants with such
information and documents as the Accountants may reasonably request
in order to make a determination under this Section 5.9.
For purposes of making the calculations and determinations required
by this Section 5.9,
the Accountants may rely on reasonable, good-faith assumptions and
approximations concerning the application of Section 280G and
Section 4999 of the Code. The Accountants’ determinations
shall be final and binding on the Company and Executive. The
Company shall be responsible for all fees and expenses incurred by
the Accountants in connection with the calculations required by
this Section
5.9.

 

(v) It is possible that
after the determinations and selections made pursuant to this
Section
5.9 Executive will receive Covered Payments that are in the
aggregate more than the amount intended or required to be provided
after application of this Section 5.9
(“Overpayment”)
or less than the amount intended or required to be provided after
application of this Section 5.9
(“Underpayment”).

 

(vi) In
the event that: (A) the Accountants determine, based upon the
assertion of a deficiency by the Internal Revenue Service against
either the Company or Executive that the Accountants believe has a
high probability of success, that an Overpayment has been made or
(B) it is established pursuant to a final determination of a court
or an Internal Revenue Service proceeding that has been finally and
conclusively resolved that an Overpayment has been made, then
Executive shall pay any such Overpayment to the Company together
with interest at the applicable federal rate (as defined in Section
7872(f)(2)(A) of the Code) from the date of Executive’s
receipt of the Overpayment until the date of
repayment.

 

 

-15-

 

 

(vii) In
the event that: (A) the Accountants, based upon controlling
precedent or substantial authority, determine that an Underpayment
has occurred or (B) a court of competent jurisdiction determines
that an Underpayment has occurred, any such Underpayment will be
paid promptly by the Company to or for the benefit of Executive
together with interest at the applicable federal rate (as defined
in Section 7872(f)(2)(A) of the Code) from the date the amount
should have otherwise been paid to Executive until the payment
date.

 

5.10 Reimbursement
of Legal Expenses. The Company shall promptly reimburse
Executive for all reasonable legal and tax advisor fees incurred by
Executive in calendar year 2018 in connection with the preparation,
negotiation and execution of this Agreement and ancillary
documents.

 

5.11 Post-Employment
Cooperation. Executive agrees to reasonably cooperate with
and provide assistance to the Companies and their legal counsel in
connection with any litigation (including arbitration or
administrative hearings) or investigation affecting the Companies,
in which, in the reasonable judgment of the Companies counsel,
Executive’s assistance or cooperation is needed; provided, however, that in no event shall
Executive be required to cooperate pursuant to this Section 5.11
with respect to any matter that could reasonably be expected to be
materially adverse to Executive’s interests. Executive shall,
when reasonably requested by the Companies, provide truthful
testimony or other assistance and shall travel at the
Companies’ request in order to fulfill this obligation;
provided,
however, that, in
connection with such litigation or investigation, any such requests
of Executive’s time shall take into account Executive’s
then existing employment or other obligations and not place an
undue or unreasonable burden on Executive. The Companies shall
provide Executive with reasonable notice in advance of the times in
which Executive’s cooperation or assistance is needed and
shall advance or reimburse (as requested by Executive) reasonable
expenses (including for professional advisors) incurred by
Executive in connection with such matters, as well as for any
actual lost wages suffered as a result of absence from
employment.

 

5.12 Entire
Agreement; Amendments.

 

(a) This Agreement
contains the entire agreement between the parties with respect to
the subject matter hereof, and supersedes and replaces in its
entirety the 2015 Agreement and all prior agreements and
understandings, oral or written, among the parties hereto with
respect to Executive’s employment with the
Companies.

 

(b) Notwithstanding any
legal principle to the contrary, the parties expressly agree that
any oral amendment to or modification of this Agreement, including
any oral modification to this Section 5.12,
shall be ineffective, and that this Agreement, including this
Section 5.12,
may be amended only by an agreement in writing signed by the
parties hereto, it being the express intent of the parties that
such amendment in writing shall be the exclusive means of effecting
any amendment or modification of any provision of this Agreement
whatsoever.

 

 

-16-

 

 

5.13 Tax
Withholding. The Companies may withhold from any amounts
payable under this Agreement such federal, state, local or foreign
taxes as shall be required to be with-held pursuant to any
applicable law or regulation. Executive is solely responsible for
all taxes imposed on him as a result of his receipt of any payment
or benefit arising under this Agreement, other than such taxes that
are, by their nature, obligations of the Company (for example, and
without limitation, the employer portion of the Federal Insurance
Contributions Act (FICA) taxes, and any corporate taxes incurred by
the Company as a result of the disallowance of any tax deduction
for compensation paid to Executive, and the Company does not
guarantee the tax treatment or tax consequences associated with any
payment or benefit arising under this Agreement.

 

5.14 Section
Headings; Construction. The headings of Sections in this
Agreement are provided for convenience only and shall not affect
its construction or interpretation. All references to
“Sections” or “Articles” refer to the
corresponding Sections or Articles of this Agreement unless
otherwise specified. All words used in this Agreement shall be
construed to be of such gender or number as the circumstances
require. Unless otherwise expressly provided, the word
“including” does not limit the preceding words or
terms.

 

5.15 Counterparts.
This Agreement may be executed in one or more counterparts, each of
which shall be deemed to be an original copy of this Agreement and
all of which, when taken together, shall be deemed to constitute
one and the same agreement. Signatures transmitted by facsimile or
electronic copies of e-mailed documents (e.g., in .pdf format)
shall be deemed originals for this purpose.

 

5.16 Survival.
The terms, conditions, rights and obligations of the parties shall
survive any termination or expiration of this Agreement to the
extent necessary to the intended preservation of such terms,
conditions, rights, and obligations, including, without limitation,
Articles
II, III,
and IV and
Section
5.11 of this Agreement.

 

 

 

[remainder of page intentionally left blank]

 

 

 

-17-

 

 

 

IN WITNESS WHEREOF, the undersigned have executed this
Agreement as of the date first above written.

 

	
 

	
FUSION
CONNECT, INC.

 

 

 

By:
/s/ James P. Prenetta,
Jr.

Name:
James P. Prenetta, Jr.

Title:
Executive Vice President and General Counsel

 

 

EXECUTIVE:

 

 

 

/s/ Matthew D. Rosen

    Matthew
D. Rosen

 

 

 

 

 

 

-18-EMPLOYMENT
AGREEMENT

 

THIS
EMPLOYMENT AGREEMENT (“Agreement”) is made as of August 6, 2018 by and between OncoCyte Corporation (“OncoCyte”),
a California corporation, and Albert Parker (“Executive”).

 

1.
Engagement; Position and Duties.

 

(a)
OncoCyte agrees to employ Executive in the position described on Exhibit A (which Exhibit A is a part of this Agreement) effective
as of the date of this Agreement. Executive shall perform the duties and functions described on Exhibit A and such other duties
as the executive(s) to whom Executive reports or the Board of Directors of OncoCyte may from time to time determine. Executive
shall devote Executive’s best efforts, skills, and abilities to the business of OncoCyte and any Subsidiaries pursuant to,
and in accordance with, business policies and procedures, as fixed from time to time by the Board of Directors (the “Policies”).
Executive covenants and agrees that Executive will faithfully adhere to and fulfill the Policies, including any changes to the
Policies that may be made in the future. Executive may be provided with a copy of OncoCyte’s employee manual (the “Manual”)
which contains the Policies. OncoCyte may change its Policies from time to time, in which case Executive will be notified of the
changes in writing by a memorandum, a letter, or an update or revision of OncoCyte’s employee manual.

 

(b)
Performance of Services for Subsidiaries. Executive acknowledges and agrees that although OncoCyte does not have any subsidiaries
as of the Effective Date, it is possible that OncoCyte will organize or acquire one or more subsidiary companies in the future,
which may be wholly-owned or partially owned by OncoCyte (each a “Subsidiary”). In addition to the performance of
services for OncoCyte, Executive shall, to the extent so required by OncoCyte, also perform services for one or more Subsidiaries,
provided that such services are consistent with the kind of services Executive performs or may be required to perform for OncoCyte
under this Agreement. If Executive performs any services for any Subsidiary, Executive’s compensation shall not be increased
or reduced on account of his performance of such services. The Policies will govern Executive’s employment by OncoCyte and
any Subsidiaries for which Executive is asked to provide Services. In addition, Executive covenants and agrees that Executive
will faithfully adhere to and fulfill such additional policies governing executive officers or employees generally as may be established
from time to time by the board of directors of any Subsidiary for which Executive performs services, to the extent that such policies
and procedures differ from or are in addition to the Policies adopted by OncoCyte.

 

(c)
No Conflicting Obligations. Executive represents and warrants to OncoCyte that Executive is under no obligations or commitments,
whether contractual or otherwise, that are inconsistent with Executive’s obligations under this Agreement or that would
prohibit Executive, contractually or otherwise, from performing Executive’s duties as under this Agreement and the Policies.
Executive may serve on a paid board, subject to no conflict of interest and approval from the Chairman of the Board.

 

(d)
No Unauthorized Use of Third Party Intellectual Property. Executive represents and warrants to OncoCyte that Executive will
not use or disclose, in connection with Executive’s employment by OncoCyte or any Subsidiary, any patents, trade secrets,
confidential information, or other proprietary information or intellectual property as to which any other person has any right,
title or interest, except to the extent that OncoCyte or a Subsidiary holds a valid license or other written permission for such
use from the owner(s) thereof. Executive represents and warrants to OncoCyte that Executive has returned all property and confidential
information belonging to any prior employer, other than his current consulting clients.

 

    	 

    	 	 	 

    

 

2.
Compensation

 

(a)
Salary. During the term of this Agreement, OncoCyte shall pay to the Executive the salary shown on Exhibit A. Executive’s
salary shall be paid in equal biweekly installments, consistent with OncoCyte’s regular salary payment practices. Executive’s
salary may be increased from time-to-time by OncoCyte, in OncoCyte’s sole and absolute discretion, without affecting this
Agreement.

 

(b)
Bonus. Executive may be eligible for an annual bonus, as may be approved by the Board of Directors in its discretion,
based on Executive’s performance and achievement of goals or, milestones set by the Board of Directors from time to time.
Executive agrees that the Board of Directors of OncoCyte may follow the recommendations of the Compensation Committee of the Board
of Directors of OncoCyte in determining whether to award a bonus or to establish performance goals or milestones. Executive also
agrees that the Board of Directors and OncoCyte are not obligated to adopt any bonus plan, to maintain in effect any bonus plan
that may now be in effect or that may be adopted during the term of Executive’s employment, or to pay Executive a bonus
unless a bonus is earned under the terms and conditions of any bonus plan adopted by OncoCyte or Executive attaining the bonus
performance goals for Executive established by the Board of Directors or its Compensation Committee; provided, that unless otherwise
provided in a bonus plan or award, a bonus shall not be earned until paid and shall not be paid unless Executive remains an employee
of OncoCyte on the date of payment.

 

(c)
Expense Reimbursements. OncoCyte or a Subsidiary shall reimburse Executive for reasonable travel and other business
expenses (but not expenses of commuting to his primary workplace) incurred by Executive in the performance of Executive’s
duties under this Agreement, subject to the Policies and procedures in effect from time to time, and provided that Executive submits
supporting vouchers.

 

(d)
Benefit Plans. Executive may be eligible (to the extent Executive qualifies) to participate in certain retirement,
pension, life, health, accident and disability insurance, stock option plan or other similar employee benefit plans which may
be adopted by OncoCyte (or a Subsidiary) for its executive officers or other employees. OncoCyte and the Subsidiaries have the
right, at any time and without any amendment of this Agreement, and without prior notice to or consent from Executive, to adopt,
amend, change, or terminate any such benefit plans that may now be in effect or that may be adopted in the future, in each case
without any further financial obligation to Executive; provided that such unilateral change does apply to Executive in a manner
different than other OncoCyte executives or employees of a comparable executive level, except for changes required by applicable
federal, state, or local law, or implemented in response to any change of federal, state or local law or regulation Any benefits
to which Executive may be entitled under any benefit plan shall be governed by the terms and conditions of the applicable benefit
plan, and any related plan documents, as in effect from time to time. If Executive receives any grant of stock options or stock
or stock related equity awards (“Awards”) under any stock option plan, stock purchase plan, or other equity incentive
plan of OncoCyte or any Subsidiary (an “Equity Plan”), the terms and conditions of the Award, and Executive’s
rights with respect to the Award, shall be governed by (i) the terms of the Equity Plan, as the same may be amended from time
to time, and (ii) the terms and conditions of any stock option agreement, stock purchase agreement, or other agreement that Executive
may sign or be required to sign with respect to any Award.

 

    	 

    	 	 	 

    

 

(e)
Vacation; Sick Leave. Executive shall be entitled to the number of days of vacation and sick leave (without reduction
in compensation) during each calendar year shown on Exhibit A or as may be provided by the Policies. Executive’s vacation
shall be taken at such time as is consistent with the needs and Policies of OncoCyte and its Subsidiaries. All vacation days and
sick leave days shall accrue annually based upon days of service. Executive’s right to leave from work due to illness is
subject to the Policies and the provisions of this Agreement governing termination due to disability, sickness or illness. The
Policies governing the disposition of unused vacation days and sick leave days remaining at the end of OncoCyte’s fiscal
year shall govern whether unused vacation days or sick leave days will be paid, lost, or carried over into subsequent fiscal years.

 

3.
Competitive Activities. During the term of Executive’s employment, and for one year thereafter, Executive shall not,
for Executive or any third party, directly or indirectly employ, solicit for employment or recommend for employment any person
employed by OncoCyte or any Subsidiary. During the term of Executive’s employment, Executive shall not, directly or indirectly
as an employee, contractor, officer, director, member, partner, agent, or equity owner, engage in any activity or business that
to the best of Executive’s knowledge competes with the business of OncoCyte or any Subsidiary. Executive acknowledges that
there is a substantial likelihood that the activities described in this Section would (a) involve the unauthorized use or disclosure
of OncoCyte’s or a Subsidiary’s Confidential Information and that use or disclosure would be extremely difficult to
detect, and (b) result in substantial competitive harm to the business of OncoCyte or a Subsidiary. Executive has accepted the
limitations of this Section as a reasonably practicable means of preventing such use or disclosure of Confidential Information
and preventing such competitive harm.

 

4.
Inventions/Intellectual Property/Confidential Information

 

(a)
As used in this Agreement, “Intellectual Property” means any and all inventions, discoveries, formulas, improvements,
writings, designs, or other intellectual property. Any and all Intellectual Property relating to or in any way pertaining to or
connected with the systems, products, apparatus, or methods employed, manufactured, constructed, or researched by OncoCyte, or
any Subsidiary, which Executive may conceive or make while performing services for OncoCyte or a Subsidiary shall be the sole
and exclusive property of OncoCyte or the applicable Subsidiary and is referred to in this Agreement as OncoCyte Intellectual
Property. Executive hereby irrevocably assigns and transfers to OncoCyte, or a Subsidiary, all rights, title and interest in and
to all OncoCyte Intellectual Property that Executive may now or in the future have under patent, copyright, trade secret, trademark
or other law, in perpetuity or for the longest period otherwise permitted by law, without the necessity of further consideration.
OncoCyte and the Subsidiaries will be entitled to obtain and hold in their own name all copyrights, patents, trade secrets, trademarks
and other similar registrations with respect to such OncoCyte Intellectual Property.

 

    	 

    	 	 	 

    

 

(b)
Moral Rights. To the extent allowed by law, the rights to OncoCyte Intellectual Property assigned by Executive to OncoCyte
or any Subsidiary includes all rights of paternity, integrity, disclosure and withdrawal, and any other rights that may be known
as or referred to as “moral rights,” “artist’s rights,” “droit moral,” or the like (collectively
“Moral Rights”). To the extent Executive retains any such Moral Rights under applicable law, Executive hereby ratifies
and consents to any action that may be taken with respect to such Moral Rights by or authorized by OncoCyte or a Subsidiary and
agrees not to assert any Moral Rights with respect thereto. Executive shall confirm in writing any such ratifications, consents,
and agreements from time to time as requested by OncoCyte or Subsidiary.

 

(c)
Execution of Documents; Power of Attorney. Executive agrees to execute and sign any and all applications, assignments,
or other instruments which OncoCyte or a Subsidiary may deem necessary in order to enable OncoCyte or a Subsidiary, at its expense,
to apply for, prosecute, and obtain patents of the United States or foreign countries for the OncoCyte Intellectual Property,
or in order to assign or convey to, perfect, maintain or vest in OncoCyte or a Subsidiary the sole and exclusive right, title,
and interest in and to the OncoCyte Intellectual Property. If OncoCyte or a Subsidiary is unable after reasonable efforts to secure
Executive’s signature, cooperation or assistance in accordance with the preceding sentence, whether because of Executive’s
incapacity or any other reason whatsoever, Executive hereby designates and appoints OncoCyte or any Subsidiary or its designee
as Executive’s agent and attorney-in-fact, to act on Executive’s behalf, to execute and file documents and to do all
other lawfully permitted acts necessary or desirable to perfect, maintain or otherwise protect OncoCyte’s or a Subsidiary’s
rights in the OncoCyte Intellectual Property”: Executive acknowledges and agrees that such appointment is coupled with an
interest and is irrevocable.

 

(d)
Disclosure of Intellectual Property. Executive agrees to disclose promptly to OncoCyte or a Subsidiary all OncoCyte
Intellectual Property that Executive may create or conceive solely, jointly, or commonly with others.

 

(e)
Limitations. The obligations provided for by this Section 4 do not apply to any rights Executive may have acquired
in connection with Intellectual Property for which no equipment, supplies, facility, or trade secret information of OncoCyte or
a Subsidiary was used and which was developed entirely on the Executive’s own time and (i) which at the time of conception
or reduction to practice does not relate directly or indirectly to the business of OncoCyte or a Subsidiary, or to the actual
or demonstrable anticipated research or development activities or plans of OncoCyte or a Subsidiary, or (ii) which does not result
from any work performed by Executive for OncoCyte or a Subsidiary. All Intellectual Property that (l) results from the use of
equipment, supplies, facilities, or trade secret information of OncoCyte or a Subsidiary; (2) relates, at the time of conception
or reduction to practice of the invention, to the business of OncoCyte or a Subsidiary, or actual or demonstrably anticipated
research or development of OncoCyte or a Subsidiary; or (3) results from any work performed by Executive for OncoCyte or a Subsidiary
shall be deemed OncoCyte Intellectual Property and shall be assigned and is hereby assigned to OncoCyte or the applicable Subsidiary.
The parties understand and agree that this limitation is intended to be consistent with California Labor Code, Section 2870, a
copy of which is attached as Exhibit B. If Executive wishes to clarify that something created by Executive prior to Executive’s
employment by OncoCyte that relates to the actual or proposed business of OncoCyte is not within the scope of this Agreement,
Executive has listed it on Exhibit C in a manner that does not violate any third-party rights.

    	 

    	 	 	 

    

 

(f)
Confidential and Proprietary Information. During Executive’s employment, Executive will have access to trade
secrets and confidential information of OncoCyte and one or more Subsidiaries. Confidential Information means all information
and ideas, in any form, relating in any manner to matters such as: products; formulas; technology and know-how; inventions; clinical
trial plans and data; business plans; marketing plans; the identity, expertise, and compensation of employees and contractors;
systems, procedures, and manuals; customers; suppliers; joint venture partners; research collaborators; licensees; and financial
information. Confidential Information also shall include any information of any kind, whether belonging to OncoCyte, a Subsidiary,
or any third party, that OncoCyte or a Subsidiary has agreed to keep secret or confidential under the terms of any agreement with
any third party. Confidential Information does not include: (i) information that is or becomes publicly known through lawful means
other than unauthorized disclosure by Executive; (ii) information that was rightfully in Executive’s possession prior to
Executive’s employment with OncoCyte and was not assigned to OncoCyte or a Subsidiary or was not disclosed to Executive
in Executive’s capacity as a director or other fiduciary of OncoCyte or a Subsidiary; or (iii) information disclosed to
Executive, after the termination of Executive’s employment by OncoCyte, without a confidential restriction by a third party
who rightfully possesses the information and did not obtain it, either directly or indirectly, from OncoCyte or a Subsidiary,
and who is not subject to an obligation to keep such information confidential for the benefit of OncoCyte, a Subsidiary, or any
third party with whom OncoCyte or a Subsidiary has a contractual relationship. Executive understands and agrees that all Confidential
Information shall be kept confidential by Executive both during and after Executive’s employment by OncoCyte any Subsidiary.
Executive further agrees that Executive will not, without the prior written approval by OncoCyte or a Subsidiary, disclose any
Confidential Information, or use any Confidential Information in any way, either during the term of Executive’s employment
or at any time thereafter, except as required by OncoCyte or a Subsidiary in the course of Executive’s employment.

 

5.
Termination of Employment. Executive understands and agrees that Executive’s employment has no specific term. This Agreement,
and the employment relationship, are “at will” and may be terminated by Executive or by OncoCyte (and the employment
of Executive by any Subsidiary by be terminated by the Subsidiary) with or without cause at any time by notice given orally or
in writing. Except as otherwise agreed in writing or as otherwise provided in this Agreement, upon te1mination of Executive’s
employment, OncoCyte and the Subsidiaries shall have no further obligation to Executive by way of compensation or otherwise as
expressly provided in this Agreement or in any separate employment agreement that might then exist between Executive and a Subsidiary.

 

(a)
Payments Due Upon Termination of Employment. Upon termination of Executive’s employment with OncoCyte and all
Subsidiaries at any time and for any reason, In the event of the termination of Executive’s employment by OncoCyte for Cause,
or termination of Executive’s employment as a result of death, Disability, or resignation, Executive will be entitled to
receive only the severance benefits set forth below, but Executive will not be entitled to any other compensation, award, or damages
with respect to Executive’s employment or te1mination of employment.

 

    	 

    	 	 	 

    

 

(i)
Termination/or Cause, Death, Disability, or Resignation. In the event of the termination of Executive’s employment
by OncoCyte for Cause, or termination of Executive’s employment as a result of death, disability, or resignation, Executive
will be entitled to receive payment for all accrued but unpaid salary actually earned prior to or as of the date of termination
of Executive’s employment, and vacation or paid time off accrued as of the date of termination of Executive’s employment.
Executive will not be entitled to any cash severance benefits or additional vesting of any stock options or other equity or cash
awards.

 

(ii)
Termination Without Cause. In the event of termination of Executive’s employment by OncoCyte without Cause on
or after August 6, 2018, Executive will be entitled to (A) the benefits set forth in paragraph (a)(i) of this Section, and (B)
payment in an amount equal to six months’ base salary, which may be paid in a lump sum or, at the election of OncoCyte,
in installments consistent with the payment of Executive’s salary while employed by OncoCyte, subject to such payroll deductions
and withholdings as are required by law. This paragraph shall not apply to (x) termination of Executive’s employment by
a Subsidiary if Executive remains employed by OncoCyte, or (y) termination of Executive’s employment by OncoCyte if Executive
remains employed by a Subsidiary.

 

(iii)
Change of Control. If, on or after November 6, 2018, OncoCyte (or any successor in interest to OncoCyte that has assumed
OncoCyte’s obligation under this Agreement) terminates Executive’s employment without Cause or Executive resigns for
“Good Reason” within twelve (12) months following a Change in Control, Executive will be entitled to (A) the benefits
set forth in paragraph (a)(i) and (a)(ii) of this Section, and (B)) payment in an amount equal to twelve months’ base salary.
This paragraph shall not apply to (x) termination of Executive’s employment by a Subsidiary if Executive remains employed
by OncoCyte or a successor in interest, or (y) termination of Executive’s employment by OncoCyte or a successor in interest
if Executive remains employed by a Subsidiary.

 

(iv)
If an event occurs that entitles Executive to severance payments, Executive’s base salary then in effect shall be used
for determination of severance payments.

 

(b)
Release. Any other provision of this Agreement notwithstanding, paragraphs (a)(ii) and (a)(iii) of this Section shall
not apply unless the Executive (i) has executed a general release of all claims against OncoCyte or its successor in interest
and the Subsidiaries (in a form prescribed by OncoCyte or its successor in interest), (ii) has returned all property in the Executive’s
possession belonging OncoCyte or its successor in interest and any Subsidiaries, and (iii) if serving as a director of OncoCyte
or any Subsidiary, has tendered his written resignation as a director as provided in Section 7.

 

(c)
Definitions. For purposes of this Section, the following definitions shall apply:

 

(i)
“Affiliated Group” means (A) a Person and one or more other Persons in control of, controlled by, or under common
control with such Person; and (B) two or more Persons who, by written agreement among them, act in concert to acquire Voting securities
entitling them to elect a majority of the directors of OncoCyte.

 

    	 

    	 	 	 

    

 

(ii)
“Cause” means: (A) the failure to properly perform Executive’s job responsibilities, as determined reasonably
and in good faith by the Board of Directors; (B) commission of any act of fraud, gross misconduct or dishonesty with respect to
OncoCyte or any Subsidiary; (C) conviction of, or plea of guilty or “no contest” to, any felony, or a crime involving
moral turpitude; (D) breach of any provision of this Agreement or any provision of any proprietary information and inventions
agreement with OncoCyte or any Subsidiary; (E) failure to follow the lawful directions of the Board of Directors of OncoCyte or
any Subsidiary; (F) chronic alcohol or drug abuse; (G) obtaining, in connection with any transaction in which OncoCyte, any Subsidiary,
or any of OncoCyte’s affiliates is a party, a material undisclosed financial benefit for Executive or for any member of
Executive’s immediate family or for any corporation, partnership, limited liability company, or trust in which Executive
or any member of Executive’s immediate family owns a material financial interest; or (H) harassing or discriminating against,
or participating or assisting in the harassment of or discrimination against, any employee of OncoCyte (or a Subsidiary or an
affiliate of OncoCyte) based upon gender, race, religion, ethnicity, or nationality.

 

(iii)
“Change of Control” means (A) the acquisition of Voting Securities of OncoCyte by a Person or an Affiliated Group
entitling the holder thereof to elect a majority of the directors of OncoCyte; provided, that an increase in the amount of Voting
Securities held by a Person or Affiliated Group who on the date of this Agreement beneficially owned (as defined in Section l3(d)
of the Securities Exchange Act of 1934, as amended, and the regulations thereunder) more than 10% of the Voting Securities shall
not constitute a Change of Control; and provided, further, that an acquisition of Voting Securities by one or more Persons acting
as an underwriter in connection with a sale or distribution of such Voting Securities shall not constitute a Change of Control
under this clause (A); (B) the sale of all or substantially all of the assets of OncoCyte; or (C) a merger or consolidation of
OncoCyte with or into another corporation or entity in which the stockholders of OncoCyte immediately before such merger or consolidation
do not own, in the aggregate, Voting Securities of the surviving corporation or entity (or the ultimate parent of the surviving
corporation or entity) entitling them, in the aggregate (and without regard to whether they constitute an Affiliated Group) to
elect a majority of the directors or persons holding similar powers of the surviving corporation or entity (or the ultimate parent
of the surviving corporation or entity); provided, however, that in no event shall any transaction described in clauses (A), (B)
or (C) be a Change of Control if all of the Persons acquiring Voting Securities or assets of OncoCyte or merging or consolidating
with OncoCyte are one or more Subsidiaries.

 

(iv)
“Disability” shall mean Executive’s inability to perform the essential functions of Executive’s job
responsibilities for a period of one hundred eighty (180) days in the aggregate in any twelve (12) month period.

 

(v)
“Good Reason” means (A) a diminution in Executive’s base salary; (B) a material change in geographic location
at which Executive must perform services (a change in location of the OncoCyte office at which Executive will primarily work will
be considered material only if it increases Executive’s current one-way commute by more than fifty (50) miles); (C) any
material failure of the successors to OncoCyte after a Change of Control to perform, or causing OncoCyte not to perform, OncoCyte’
obligations under this Agreement; (D) any action or inaction of OncoCyte that constitutes a material breach of the terms of this
Agreement; or (E) any other material adverse change in Executive’s duties, authorities, responsibilities, or reporting structure
(for example, if Executive is required to report to anyone other than a Chief Executive Officer or the Board of Directors of OncoCyte
or its successor).

 

    	 

    	 	 	 

    

 

(vi)
“Person” means any natural person or any corporation, partnership, limited liability company, trust, unincorporated
business association, or other entity.

 

(vii)
“Voting Securities” means shares of capital stock or other equity securities entitling the holder thereof to regularly
vote for the election of directors (or for person performing a similar function if the issuer is not a corporation), but does
not include the power to vote upon the happening of some condition or event which has not yet occurred.

 

6.
Turnover of Property and Documents on Termination. Executive agrees that on or before termination of Executive’s employment,
Executive will return to OncoCyte and all Subsidiaries all equipment and other property belonging to OncoCyte and the Subsidiaries,
and all originals and copies of Confidential Information (in any and all media and formats, and including any document or other
item containing Confidential Information) in Executive’s possession or control, and all of the following (in any and all
media and formats, and whether or not constituting or containing Confidential Information) in Executive’s possession or
control: (a) lists and sources of customers; (b) proposals or drafts of proposals for any research grant, research or development
project or program, marketing plan, licensing arrangement, or other arrangement with any third party; (c) reports, job or laboratory
notes, specifications, and drawings pertaining to the research, development, products, patents, and technology of OncoCyte and
any Subsidiaries; (d) any and all Intellectual Property developed by Executive during the course of employment; and (e) the Manual
and memoranda related to the Policies.

 

7.
Resignation as a Director on Termination of Employment. If Executive’s employment by OncoCyte is terminated for any
reason or for no reason, whether by way of resignation, Disability, or termination by OncoCyte with or without Cause, and if Executive
is then a member of the Board of Directors of OncoCyte or any Subsidiary, Executive shall within two business days after such
termination of employment resign from the Board of Directors of OncoCyte and from the board of directors of each and every Subsidiary,
by delivering to OncoCyte (and each Subsidiary, as applicable) a letter or other written communication addressed to the Board
of Directors of OncoCyte (and each Subsidiary, as applicable) stating that Executive is resigning from the Board of Directors
of OncoCyte (and each Subsidiary, as applicable) effective immediately. A business day shall be any day other than a Saturday,
Sunday, or federal holiday on which federal offices are closed.

 

8.
Arbitration. It is the intention of Executive and OncoCyte that the Federal Arbitration Act and the California Arbitration
Act shall apply with respect to the arbitration of disputes, claims, and controversies pursuant to, arising under, or in connection
with this Agreement. Except for injunctive proceedings against unauthorized disclosure of Confidential Information, any and all
claims or controversies between OncoCyte or any Subsidiary and Executive, including but not limited to (a) those involving the
construction or application of any of the terms, provisions, or conditions of this Agreement (including but not limited to the
applicability and enforceability of provisions of this Section 8 with respect to any dispute, claim, or controversy) or the Policies;
(b) all contract or tort claims of any kind; and (c) any .claim based on any federal, state, or local law, statute, regulation,
or ordinance, including claims for unlawful discrimination or harassment, shall be settled by arbitration in accordance with the
then current Employment Dispute Resolution Rules of the American Arbitration Association or the Employment Arbitration Rules &
Procedures of the Judicial Arbitration and Mediation Service (“JAMS”), as selected by OncoCyte or a Subsidiary. Judgment
on the award rendered by the arbitrator(s) may be entered by any court having jurisdiction over OncoCyte and Executive. The location
of the arbitration shall be San Francisco, California. Unless OncoCyte or a Subsidiary and Executive mutually agree otherwise,
the arbitrator shall be a retired judge selected from a panel provided by the American Arbitration Association, or JAMS. OncoCyte,
or a Subsidiary if the Subsidiary is a party to the arbitration proceeding, shall pay the arbitrator’s fees and costs. Executive
shall pay for Executive’s own costs and attorneys’ fees, if any. OncoCyte and any Subsidiary that is a party to an
arbitration proceeding shall pay for its own costs and attorneys’ fees, if any. However, if any party prevails on a statutory
claim which affords the prevailing party attorneys’ fees, the arbitrator may award reasonable attorneys’ fees and
costs to the prevailing party.

 

    	 

    	 	 	 

    

 

EMPLOYEE
UNDERSTANDS AND AGREES THAT THIS AGREEMENT TO ARBITRATE CONSTITUTES A WAIVER OF EXECUTIVE’S RIGHT TO A TRIAL BY JURY OF
ANY MATTERS COVERED BY THIS AGREEMENT TO ARBITRATE.

 

9.
Severability. In the event that any of the provisions of this Agreement or the Policies shall be held to be invalid or unenforceable
in whole or in part, those provisions to the extent enforceable and all other provisions shall nevertheless continue to be valid
and enforceable as though the invalid or unenforceable provision had not been included in this Agreement or the Policies. In the
event that any provision relating to a time period of restriction shall be declared by a court of competent jurisdiction to exceed
the maximum time period such court deems reasonable and enforceable, then the time period of restriction deemed reasonable and
enforceable by the court shall become and shall thereafter be the maximum time period.

 

10.
Agreement Read and Understood. Executive acknowledges that Executive has carefully read the terms of this Agreement, that
Executive has had an opportunity to consult with an attorney or other representative of Executive’s own choosing regarding
this Agreement, that Executive understands the terms of this Agreement, and that Executive is entering this agreement of Executive’s
own free will.

 

11.
Complete Agreement, Modification. This Agreement is the complete agreement between Executive and OncoCyte on the subjects
contained in this Agreement. This Agreement supersedes and replaces all previous correspondence, promises, representations, and
agreements, if any, either written or oral with respect to Executive’s employment by OncoCyte or any Subsidiary and any
matter covered by this Agreement. No provision of this Agreement may be modified, amended, or waived except by a written document
signed both by OncoCyte and Executive.

 

12.
Governing Law. This Agreement shall be construed and enforced according to the laws of the State of California.

 

    	 

    	 	 	 

    

 

13.
Assignability. This Agreement, and the rights and obligations of Executive and OncoCyte under this Agreement, may not be assigned
by Executive. OncoCyte may assign any of its rights and obligations under this Agreement to any successor or surviving corporation,
limited liability company, or other entity resulting from a merger, consolidation, sale of assets, sale of stock, sale of membership
interests, or other reorganization, upon condition that the assignee shall assume, either expressly or by operation of law, all
of OncoCyte’s obligations under this Agreement.

 

14.
Survival. This Section 14 and the covenants and agreements contained in Sections 4 and 6 of this Agreement shall survive termination
of this Agreement and Executive’s employment.

 

15.
Notices. Any notices or other communication required or permitted to be given under this Agreement shall be in writing and
shall be mailed by certified mail, return receipt requested, or sent by next business day air courier service, or personally delivered
to the party to whom it is to be given at the address of such party set forth on the signature page of this Agreement (or to such
other address as the party shall have furnished in writing in accordance with the provisions of this Section 15).

 

[Signatures
To This Employment Agreement Found On The Following Page]

 

    	 

    	 	 	 

    

 

IN
WITNESS WHEREOF, Executive and OncoCyte have executed this Agreement on the day and year first above written.

 

	EXECUTIVE:	 	ONCOCYTE
    CORPORATION:
	 	 	 
	By:	/s/
    Albert P. Parker	 	By:	/s/
    William Annett
	 	Albert
    P. Parker	 	 	William
    Annett
	Title:	Chief
    Operating Officer	 	Title:
    	Chief
    Executive Officer
	 	 	 	 	 
	Address:	 	 	Address:

        
	 
	1010 Atlantic Avenue, Suite 102	 	1010
    Atlantic Avenue, Suite 102
	Alameda, CA 94501	 	Alameda,
    California 94501

 

[Signatures
To The Employment Agreement]

 

    	 

    	 	 	 

    

 

EXHIBIT
A

 

Job
Title: Chief Operating Officer (“COO”)

 

Description
of Job and Duties: OncoCyte agrees to employ Executive in the position of Chief Operating Officer. Executive shall perform
the duties and functions as are normally carried out by a Chief Operating Officer of a developer of cancer diagnostic tests and
products of a size comparable to OncoCyte that has a class equity securities registered under Section 12 of the Securities Exchange
Act of 1934, as amended, and as the Board of Directors of OncoCyte (the “Board of Directors”) shall from time to time
reasonably determine. Without limiting the generality of the immediately preceding sentence, Executive shall:

 

	 	○	Lead
    and develop the daily operations of OncoCyte to include CLIA Lab and QA/Regulatory to ensure projects and key milestones are
    met. 
	 	 	 
	 	○	Responsible
    for strategy and business development in partnership with CEO, CFO, and Board of Directors (“Board”). Will define
    and execute strategic initiatives focused on refining product/service offerings portfolio, market scope and reach of OncoCyte
    products and technology; accelerating commercialization of diagnostic testing products/services. Will be responsible for a
    productive and focused business development.
	 	 	 
	 	○	Is
    responsible for working with the Finance and Strategy Committee of the Board to collaboratively develop company strategy and
    business development opportunities 
	 	 	 
	 	○	Will
    work closely with CLIA Operations, QA/Regulatory, Research and Process Development to ensure smooth transition from R&D
    to production in the lab.
	 	 	 
	 	○	Will
    lead and develop Quality and Regulatory systems to support effective and efficient operations in partnership with internal
    resources and functional leaders.
	 	 	 
	 	○	Will
    work closely with the CEO on setting agenda for the Sr. Leadership Team meeting and helping to establish the policies, procedures
    and culture of the company. 
	 	 	 
	 	○	Will
    present each quarter to the Board on the quality systems of the company in relationship to the CLIA Lab and R&D activities.
	 	 	 
	 	○	Other
    duties as assigned.

 

Reports
to: Chief Executive Officer (“CEO”)

 

Annual
Salary: $340,000, which may not be reduced in the first four months of employment. After initial four month period of employment,
reduction of hours and subsequent reduction in salary may occur if OncoCyte and Executive mutually agree to reduce Executive’s
hours and/or the scope of duties. If an event occurs entitling Executive to severance payments pursuant to Section 5 of this Agreement,
after a salary reduction, the severance payments will be calculated on the reduced salary.

 

Expenses:
Executive may be reimbursed up to $10,000 by OncoCyte for expenses related to legal and tax accounting associated with accepting
this COO position. For a reasonable interim period, all expenses for hotel and meals will be reimbursed through OncoCyte’s
expense report system, and reasonable airfare between CA and PA will also be reimbursed in accordance with OncoCyte’s travel
policy and expense report system.

 

    	 

    	 	 	 

    

 

Target
Bonus: Subject to the discretion of the Board of Directors, and as provided in Section 2(b) of this Agreement, Executive will
be considered for a yearly discretionary performance bonus in the range of 0 – 100% with an annual target of 40% of your
base salary.

 

Stock
Options: Options to purchase 250,000 shares of OncoCyte common stock under OncoCyte’s Employee Stock Option Plan (the
“Plan”). The exercise price of the options shall be the fair market value of OncoCyte’s common shares on the
date of grant determined in accordance with the Plan. The date of grant of the options shall be the date on which Executive’s
employment by OncoCyte commended. Executive shall execute a stock option agreement consistent with the terms of the option grant
and the Plan. Options to purchase 200,000 shares shall vest and thereby become exercisable upon the attainment of DetermaVu development
milestones as follows, provided, that Executive is an employee of OncoCyte or a Subsidiary on the applicable vesting date:

 

	 	1.	35,000
    options will vest after successful completion of a R&D Validation Study*
	 	 	 
	 	2.	50,000
    options will vest when a Clinical Validation study begins*
	 	 	 
	 	3.	65,000
    options will vest upon successful completion of a Clinical Validation study*
	 	 	 
	 	4.	50,000
    options will vest upon filing of a Medicare dossier 

 

	*	For
    the purpose of determining whether the stock option vesting milestone has been attained, the date on which the R&D Validation
    Study shall have been successfully completed, or a Clinical Validation Study shall be deemed to have commenced or to have
    been successfully completed, shall be the date on which the Senior Vice President-Research & Development, or in his absence
    the Chief Executive Officer, reports to the Science & Technology Committee that the particular study has been commenced
    or successfully completed, as applicable.

 

Options
to purchase 50,000 shares shall vest upon the completion of six months of service as an executive officer or employee of OncoCyte
or a Subsidiary.

 

Except
to the extent that provisions of the Plan relating to termination of service as an employee apply, to the extent not exercised,
the options shall expire ten years from the effective date of grant. The options shall be incentive stock options to the extent
permitted by Section 422 of the Internal Revenue Code.

 

Paid
Time Off: Executive shall be entitled to a total of twenty business days per year as “paid time off,” accrued
on a biweekly pay period basis for vacation, extended sick leave, personal use; plus, an additional 24 hours of sick time per
calendar year.

 

    	 

    	 	 	 

    

 

EXHIBIT
B

 

California
Labor Code Section 2870.

 

Application
of provision providing that employee shall assign or offer to assign rights in invention to employer.

 

(a)
Any provision in an employment agreement which provides that an employee shall assign, or offer to assign, any of his or her rights
in an invention to his or her employer shall not apply to an invention that the employee developed entirely on his or her own
time without using the employer’s equipment, supplies, facilities, or trade secret information except for those inventions
that either:

 

(i)
Relate at the time of conception or reduction to practice of the invention to the employer’s business, or actual or demonstrably
anticipated research or development of the employer; or

 

(ii)
Result from any work performed by the employee for his employer.

 

(b)
To the extent a provision in an employment agreement purports to require an employee to assign an invention otherwise excluded
from being required to be assigned under subdivision (a), the provision is against the public policy of this state and is unenforceable.

 

    	 

    	 	 	 

    

 

EXHIBIT
C

 

PRIOR
MATTERS

 

None

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