Document:

EX-10.29

 Exhibit 10.29 

MIDDLEFIELD BANC CORP. 

2017 OMNIBUS EQUITY PLAN 

STOCK AWARD AGREEMENT 

1.    Number of Shares Awarded. Middlefield Banc Corp. (“Middlefield”), an Ohio
corporation, hereby awards to                  (the “Participant”) the right to become the owner of
                 shares of Middlefield common stock if the terms and conditions of this Stock Award Agreement are satisfied, subject to
a potential increase to as many as                  shares (125% maximum) based on satisfaction of the performance conditions of
section 3 (b). The number of shares awarded will be adjusted by the Plan Committee to account for stock dividends,
stock splits, or other changes in capital structure. The Participant is not and will not be the owner of the shares and the shares are not and will not be outstanding until the date when the conditions to the Participant’s entitlement to the
shares are satisfied, as provided in section 3. This award is subject to the terms and conditions of the 2017 Omnibus Equity Plan and this Stock Award Agreement. Terms that are defined in the 2017 Omnibus Equity Plan are used in this Stock
Award Agreement as they are defined in the 2017 Omnibus Equity Plan. By entering into this Stock Award Agreement the Participant agrees to the post-employment restrictions of section 14. 

2.    Date of the Award. The date of this Stock Award Agreement is March 1, 2019. 

3.    The Award is Conditional and is Subject to Forfeiture. The award and the Participant’s right to
become the owner of the shares are subject to two conditions, are subject to forfeiture if the conditions are not satisfied, and will not be considered vested until the conditions are satisfied or waived. The two conditions consist of a service
condition and a performance condition. 
 (a)    Service condition. To become owner of the shares
awarded by section 1 the Participant must maintain continuous employment with Middlefield or a Related Entity for three years after the date of this Stock Award Agreement, except in the case of termination within three years occurring because of
death or disability and except for a Change in Control occurring within three years after the date of this Stock Award Agreement. 

(1)    Continuous employment for three years. If the Participant maintains continuous employment
with Middlefield or a Related Entity until the third anniversary of the date of this Stock Award Agreement, the portion of the shares awarded by section 1 for which the performance conditions of section 3(b) are satisfied will be vested and non-forfeitable, the Participant will be the owner of the vested shares, and the Participant will then possess all right, title, and interest in the shares. 

(2)    Exception for death or disability. If the Participant’s employment ends before the third
anniversary because of death or disability, the service condition will be waived and the Participant or the Participant’s estate or designated beneficiary will be entitled to and vested in a portion of the shares awarded under section 1 based
on the degree to which the performance conditions stated in section 3(b) are satisfied on the date of the Participant’s death or the date on which the Participant’s employment terminated because of disability. For purposes of this Stock
Award Agreement the term “disability” means, because of a medically determinable physical or mental impairment that can be expected to result in death or that can be expected to last for a continuous period of at least 12 months,
(x) the Participant is unable to engage in any substantial gainful activity, or (y) the Participant is receiving income replacement benefits for a period of at least three months under an accident and health plan of the
employer. Medical determination of disability may be made either by the Social Security Administration or by the provider of an accident or health plan covering employees of Middlefield or Related Entity. Upon request of the Plan Committee, the
Participant must submit proof to the Plan Committee of the Social Security Administration’s or provider’s determination. 

(3)    Exception for a Change in Control. If a Change in Control occurs before the third
anniversary, the service condition will be waived, the performance condition of section 3(b) will be waived, and when the Change in Control occurs the Participant will be entitled to and vested in the shares awarded under section 1
(i.e., the number of shares first stated in section 1, not the 125% to which the award may be increased), provided the Participant remains employed by Middlefield or Related Entity on that date. 

  
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 (4)    Effect of failure to satisfy the service
condition; Plan Committee’s right to waive conditions to vesting. If the Participant does not maintain continuous employment with Middlefield or a Related Entity until the third anniversary of the date of this Stock Award Agreement the
section 1 award shall be forfeited in its entirety as of the date the Participant’s employment terminates, except as provided in section 3 (a) (2) for termination because of death or disability and
except as provided in section 3(a)(3) for a Change in Control. In its sole discretion, however, the Plan Committee may elect to accelerate the Participant’s vesting in and right to all or a portion of the award when the Participant’s
employment terminates, waiving in whole or in part the service condition of section 3(a), the performance condition of section 3 (b), or both. 
 (b)    Performance
condition. In addition to the service condition of section 3(a), to become owner of and vested in the shares awarded by section 1 the performance conditions of this section 3(b) must be satisfied, except as provided in section 3(a)(3) in the
case of a Change in Control. The performance condition that must be satisfied to become the owner of and vested in 100% of the shares awarded by section 1 is achievement of an annual average total shareholder return of 10.00% or more in the
three-year performance period beginning on January 1, 2019 and ending on December 31, 2021 (or on the date of employment termination if employment terminates because of death or disability), which is referred to hereinafter as the
“performance period.” Total shareholder return means the change in the closing price of Middlefield common stock on the final trading day of the year over the closing price on the final trading day of the preceding year, divided by
the closing price on the final trading day of the preceding year, and taking into account cash dividends during the period. If the annual average total shareholder return for the performance period is positive but less than the goal of 10.00%, the
Participant will become owner of and vested in a percentage of the shares awarded by section 1 equal to the percentage achievement of the 10.00% goal. Shares will be rounded to the nearest whole number. No fractional shares will be issued. If the
annual average total shareholder return for the performance period is negative, the Participant will forfeit all shares awarded. If the annual average total shareholder return for the performance period exceeds 10.00%, the number of shares awarded
will increase based on the percentage excess of average annual total shareholder return over the 10.00% goal, up to a maximum of 125%. Exhibit A contains an illustration of the calculation of average total shareholder return. 

(c)    Plan Committee determinations. The Plan Committee has exclusive authority to perform all
calculations that are necessary and exclusive authority to make all determinations that are necessary under this Stock Award Agreement, including but not limited to calculating closing prices, annual return, and average annual total shareholder
return. The Plan Committee may delegate its authority. Actions of the Plan Committee are final and binding. To prevent dilution or enlargement of the benefit intended to be granted to the Participant by this Stock Award Agreement, the Plan Committee
will modify the award of shares under section 1 and total shareholder return calculations under section 3(b) to account for stock dividends, stock splits, and other changes in capitalization occurring during the performance period. 

4.    The Shares Are Not Transferable While Subject to Forfeiture. Until the shares awarded by section 1
become vested and non-forfeitable under section 3, the Participant is not the owner of and is not permitted to sell, transfer, pledge, assign, or otherwise alienate or hypothecate any of the shares or any
interest in the shares. Until that time, Middlefield is entitled to disregard any attempt by the Participant to sell, transfer, pledge, assign, or otherwise alienate or hypothecate any of the shares or any interest in the shares, and any such sale,
transfer, pledge, assignment, or other alienation or hypothecation is void and of no force or effect. 

5.    Rights as a Stockholder. Until the conditions of section 3 are satisfied the Participant will have
none of the associated rights of a stockholder under Ohio law and Middlefield’s Articles of Incorporation and Code of Regulations. Until the conditions of section 3 are satisfied the Participant will not be entitled to exercise voting power and
will not be entitled to cash dividends declared by Middlefield’s board of directors. 
 6.    The 2017
Omnibus Equity Plan Governs. The award of shares and this Stock Award Agreement are subject to the terms and conditions of the 2017 Omnibus Equity Plan, as well as any rules of the Plan Committee under the 2017 Omnibus Equity Plan. The
Participant acknowledges having received a copy of the 2017 Omnibus Equity Plan. The Participant is familiar with the terms and provisions of the 2017 Omnibus Equity Plan and accepts this award subject to all the terms and provisions of the 2017
Omnibus Equity Plan. The Participant agrees to accept as binding, conclusive, and final all decisions or interpretations of Middlefield’s board of directors or Plan Committee having to do with the 2017 Omnibus Equity Plan or this Stock Award
Agreement. 

  
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 7.    Certificates. Provided book entry registration is
allowed by Middlefield’s Articles of Incorporation and Code of Regulations, Middlefield may record the Participant’s ownership of the shares using a book entry system rather than issuing certificates. If certificates are issued, they will
bear any restrictive legends that Middlefield considers necessary or desirable. 
 8.    Entire Agreement.
This Stock Award Agreement and the 2017 Omnibus Equity Plan supersede any and all other prior understandings and agreements, either oral or in writing, between the parties concerning the subject matter and constitute the sole agreement between the
parties relating to the subject matter. All prior negotiations and agreements between the parties concerning the subject matter of this Stock Award Agreement are merged in this Stock Award Agreement. Each party to this Stock Award Agreement
acknowledges that no representations, inducements, promises, or agreements concerning the shares have been made by any party or by anyone acting on behalf of any party that are not contained in this Stock Award Agreement or in the 2017 Omnibus
Equity Plan. Each party acknowledges that any agreement, statement, or promise concerning the shares that is not contained in this Stock Award Agreement or the 2017 Omnibus Equity Plan is not valid, is not binding, and is of no force or effect. 

9.    Modification. Middlefield may change or modify this Stock Award Agreement without the
Participant’s consent or signature if in its sole discretion Middlefield determines that the change or modification is necessary to comply with or to be exempt from the requirements of the Internal Revenue Code of 1986, including but not
limited to section 409A of the Internal Revenue Code of 1986 or any regulations or other Department of Treasury guidance of general application issued under the Internal Revenue Code of 1986. Middlefield may amend the 2017 Omnibus Equity Plan to the
extent permitted by the 2017 Omnibus Equity Plan. The Plan Committee also may modify the award as provided in section 3. 

10.    Headings. The headings in this Stock Award Agreement are solely for convenience of reference and do
not affect the interpretation of this Stock Award Agreement. 
 11.    Notice. All written notices,
requests, and other communications hereunder will be duly given if delivered by hand or mailed, certified or registered mail, return receipt requested, with postage prepaid, to the following addresses or to such other address as either party may
designate by like notice. If to Middlefield, notice must be given to Middlefield Banc Corp., 15985 East High Street, P.O. Box 35, Middlefield, Ohio 44062, Attention: Chief Financial Officer, or to such other address as Middlefield designates to the
Participant in writing. If to the Participant, notice must be given to the Participant at the Participant’s address appearing on the signature page of this Stock Award Agreement, or to such other address as the Participant designates to
Middlefield. 
 12.    Taxes. The Participant is hereby advised to consult immediately with his or her own
tax advisor about the tax consequences of this Stock Award Agreement, the method and timing for filing an election to include this award in income under section 83(b) of the Internal Revenue Code of 1986, and the tax consequences of that election.
By executing this Stock Award Agreement, the Participant agrees that if the Participant makes an election to include the award in income under section 83(b) of the Internal Revenue Code of 1986, the Participant will provide Middlefield with written
notice of the election in accordance with the regulations under section 83(b) of the Internal Revenue Code of 1986. 

13.    No Registration Rights. The Participant acknowledges and agrees that Middlefield and its Related
Entities have no obligation to register the Participant’s offer and sale of the shares awarded under this Stock Award Agreement under the Securities Act of 1933 or the securities laws of any state. 

  
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 14.    Post-employment restrictions. The restrictions in
this section 14 have been negotiated, presented to, and accepted by the Participant contemporaneous with the offer and acceptance by the Participant of this Stock Award Agreement. 

(a)    Promise of no solicitation. The Participant promises and agrees that during the Restricted
Period (as defined below) and in the Restricted Territory (as defined below) the Participant will1: 

(1)    not directly or indirectly solicit or attempt to solicit any Customer (as defined below) to
accept or purchase Financial Products or Services (as defined below) of the same nature, kind, or variety as provided to the Customer by Middlefield or a Related Entity during the two years immediately before the Participant’s employment
termination with Middlefield or a Related Entity, 
 (2)    not directly or indirectly influence
or attempt to influence any Customer, joint venturer, or other business partner of Middlefield or a Related Entity to alter that person or entity’s business relationship with Middlefield or the Related Entity in any respect, and 

(3)    not accept the Financial Products or Services business of any Customer or provide Financial
Products or Services to any Customer on behalf of anyone other than Middlefield or a Related Entity. 

(b)    Promise of no raiding/hiring. The Participant promises and agrees that during the Restricted
Period the Participant will not solicit or attempt to solicit and will not encourage or induce in any way any Participant, joint venturer, or business partner of Middlefield or a Related Entity to terminate an employment or contractual
relationship with Middlefield or the Related Entity. The Participant agrees that the Participant will not hire any person employed by Middlefield or a Related Entity during the two-year period before
the Participant’s employment termination with Middlefield or a Related Entity or any person employed by Middlefield or a Related Entity during the Restricted Period. 

(c)    Promise of no disparagement. The Participant promises and agrees that during the Restricted
Period the Participant will not cause statements to be made (whether written or oral) that reflect negatively on the business reputation of Middlefield or a Related Entity. 

(d)    Acknowledgment and remedies. The Participant acknowledges and agrees that the provisions of
this section 14 have been negotiated and carefully determined to be reasonable and necessary for the protection of Middlefield’s legitimate business interests. The Participant acknowledges and agrees that a violation of section 14 is likely to
cause immediate and irreparable harm to Middlefield, requiring injunctive relief. If a breach or threatened breach by the Participant of any provision of this Stock Award Agreement occurs, Middlefield and its successors and assigns may without bond
obtain an injunction restraining the Participant from violating the terms of this Stock Award Agreement, and also may institute an action against the Participant to recover damages from the Participant for the breach. These remedies for default or
breach are in addition to any other remedy or form of redress provided under Ohio law. The parties acknowledge that the provisions of this section 14 survive termination of the employment relationship and are enforceable by Middlefield and its
successors and assigns. The parties agree that if any of the provisions of this section 14 are deemed unenforceable by a court of competent jurisdiction, the unenforceable provisions may be stricken as independent clauses by the court in order to
enforce the remaining territory restrictions and that the intent of the parties is to afford the broadest restriction on post-employment activities as set forth in this Stock Award Agreement. If Middlefield initiates legal action to enforce the
provisions of this section 14 or to recover damages for the Participant’s violation of section 14 and if as a result of that legal action the Participant is held to have violated this section 14, the Participant must reimburse Middlefield for
reasonable costs for enforcement of this section 14, including but not limited to attorneys’ fees. 

(e)    Definitions: 

(1)    “Restricted Period,” as used herein, means the
12-month period immediately after the Participant’s termination and/or separation of employment with Middlefield or a Related Entity, regardless of the reason for termination and/or separation. The
Restricted Period shall be extended in an amount equal to any time period during which a violation of section 14 of this Stock Award Agreement is proven. 

(2)    “Restricted Territory,” as used herein, means all of Geauga, Trumbull, Portage, Ashtabula,
and Franklin Counties in Ohio and the area within a 25-mile radius of any banking office of Middlefield or a Related Entity, if the banking office exists on the date of the Participant’s employment
termination. 
  
 1 For example, the promise of no solicitation applies if the Participant is conducting prohibited business in the Restricted Territory or if the entity with, for, or to whom the Participant is
conducting prohibited business is located within the Restricted Territory. 

  
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 (3)    “Customer,” as used herein, means any
individual, joint venturer, entity of any sort, or other business partner of Middlefield or a Related Entity with, for, or to whom Middlefield or the Related Entity has provided Financial Products or Services during the last two years of the
Participant’s employment with Middlefield or Related Entity, or any individual, joint venturer, entity of any sort, or business partner whom Middlefield or a Related Entity has identified as a prospective customer of Financial Products or
Services within the last two years of the Participant’s employment with Middlefield or Related Entity. 

(4)    “Financial Products or Services,” as used herein, means any product or service that a
financial institution or a financial holding company could offer by engaging in any activity that is financial in nature or incidental to such a financial activity under section 4(k) of the Bank Holding Company Act of 1956 and that is offered by
Middlefield or a Related Entity on the date of the Participant’s employment termination, including but not limited to banking activities and activities that are closely related and a proper incident to banking, or other products or services of
the type the Participant was involved in during the Participant’s employment with Middlefield or a Related Entity. 

(f)    Enforcement by successors. The provisions of this section are binding upon and enforceable by
Middlefield and any successor to Middlefield, including any person acquiring directly or indirectly all or substantially all of the business, assets, or stock of Middlefield. The Participant’s consent is not necessary for any assignment or
transfer of the rights and obligations of this section that occurs or is deemed to occur as the result of any person acquiring directly or indirectly all or substantially all of the business, assets, or stock of Middlefield. 

IN WITNESS WHEREOF, Middlefield has caused this Stock Award Agreement to be
executed by its duly authorized officer as of the date specified in section 2, and the Participant has duly executed this Stock Award Agreement as of the date specified in section 2 and consents to and approves all of its terms. 

 

							
	PARTICIPANT	 		 	MIDDLEFIELD BANC CORP.
		 		 	an Ohio corporation
				
	   
	 		 	By:	 	   

	Print Name:	 		 	Print Name:	 	
		 		 	Its:	 	
		 		 		 	
	Residence Address:	 		 		 	

  
 5Exhibit 10.6 Compensation Agreement with Michael K. Handley dated September 14, 2018

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

This EMPLOYMENT AGREEMENT (this “Agreement”), dated 14 September 2018, 2018 (the “Effective Date”), is by and between Marizyme Inc., a Nevada C-corporation (the “Company”) and Michael K. Handley (the “Executive”). 

 

W I T N E S S E T H:

 

WHEREAS, the Company desires to employ the Executive as its Chief Executive Officer and Director of the Board, and the Executive desires to accept such employment, on the terms and conditions set forth in this Agreement; and

 

WHEREAS, the Company and the Executive have mutually agreed that, as of the Effective Date, this Agreement shall govern the terms of employment between the Executive and the Company and supersede all previous agreements between the Executive and the Company. 

 

NOW, THEREFORE, in consideration of the promises and the mutual covenants and agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:

 

ARTICLE 1

EMPLOYMENT; TERM OF AGREEMENT

 

Section 1.1Employment and Acceptance. During the Term (as defined in Section 1.2), the Company shall employ the Executive, and the Executive shall accept such employment and serve the Company, in each case, subject to the terms and conditions of this Agreement. 

 

Section 1.2.Term. The employment relationship hereunder shall be for the period commencing on the Effective Date and, subject to earlier termination as provided in ARTICLE 4, ending on the third anniversary of the Effective Date (the “Term”). In the event that the Executive’s employment with the Company terminates, the Company’s obligation to continue to pay, after the Termination Date (as defined in Section 4.1(b) and Section 4.1(c)), Base Salary (as defined in Section 3.1(a)), Annual Bonus (as defined in Section 3.1(b)) and other unaccrued benefits shall terminate, except as may be provided for in ARTICLE 4.  

 

ARTICLE 2

TITLE; DUTIES AND OBLIGATIONS; LOCATION

 

Section 2.1Title. The Company shall employ the Executive to render the majority of her time and services to the Company. The Executive shall serve in the capacity of Chief Executive Officer and Director (“CEO & Director”). 

 

Section 2.2Duties. The Executive shall report to the Company’s Board of Directors (the “BOD”). The Executive agrees to perform to the best of his ability, experience and talent those acts and duties, consistent with the position of CEO & Director the BOD shall from time to time lawfully direct. During the Term, the Executive also shall serve in such other executive-level positions or capacities as may, from time to time, be reasonably requested by the BOD, including, without limitation (subject to election, appointment, re-election or re-appointment, as applicable) as (a) a member of a governing body of any of the Company’s subsidiaries or other Affiliates (as defined below), (b) an officer of any of the Company’s subsidiaries or other Affiliates, and/or (c) a member of any committee of the Company and/or any of its subsidiaries or other Affiliates, in each case, for no additional compensation. As used in this Agreement, “Affiliate” of any individual or entity means any other individual or entity that directly or individual controls, is controlled by, or is under common control with, the individual or entity. 

 

Section 2.3Compliance with Policies, etc. During the Term, the Executive shall be bound by, and comply fully with, all of the Company’s policies and procedures for employees in place from time to time, including, but not limited to, all terms and conditions set forth in the Company’s employee handbook, compliance manual, codes of conduct and any other memoranda and communications applicable to the Executive pertaining to the policies, procedures, rules and regulations, as currently in effect and as may be amended from time to time. These policies and procedures include, among other things and without limitation, the Executive’s obligations to comply with the Company’s rules regarding confidential and proprietary information and trade secrets. 

 

 

Section 2.4Time Commitment. During the Term, the Executive shall use his best efforts to promote the interests of the Company (including its subsidiaries and other Affiliates) and shall devote what-ever time is required of his business time, ability and attention to the performance of his duties for the Company and shall not, directly or indirectly, render any services to any other person or organization, whether for compensation or otherwise, except with the BOD’s prior written consent (see exhibit A for approved disclosures), provided that the foregoing shall not prevent the Executive from (i) participating in charitable, civic, educational, professional, Board of Director positions, community or industry affairs, or (ii) managing the Executive’s passive personal investments, so long as, in each case, such activities individually or in the aggregate do not materially interfere or conflict with the Executive’s duties hereunder or create a potential business or fiduciary conflict (in each case, as determined by the BOD). 

 

Section 2.5Location. The Executive’s principal place of business for the performance of his duties under this Agreement shall be at the principal executive office of the Company at 2950 East Harmony Road, Suite 255, Fort Collins CO 80528 or another location approved by the Board. Notwithstanding, the foregoing, the Executive shall be required to travel as necessary to perform her duties hereunder. 

 

ARTICLE 3

COMPENSATION AND BENEFITS; EXPENSES

 

Section 3.1Compensation and Benefits. For all services rendered by the Executive in any capacity during the Term (including, without limitation, serving as an officer, director or member of any committee of the Company’s subsidiaries or other Affiliates), the Executive shall be compensated as follows (subject, in each case, to the provisions of ARTICLE 4 below): 

 

(a)Base Salary. In consideration of the services rendered during the term, the Company shall pay the Executive a base salary (the “Base Salary”) at the annualized rate of $490,000 less statutory deductions and withholding, payable in accordance with the Company’s regular payroll practices. The Base Salary will accrue on a monthly basis and will be paid prorate to the moment that a USD $10 million financing is consummated and disbursed. (For example if a financing for only USD $2 million is consummated and disbursed then the Executive will receive the unpaid and accrued monthly salary up to a value of USD $98,000 or 20% of his base salary) The Base Salary shall be subject to annual review by the BOD subject to any additional approval procedures required by the Company’s compensation policies or its Board of Directors. As used in this Agreement, the term “Base Salary” shall refer to Base Salary as may be adjusted from time to time.  

 

(b)Annual Bonus. The Executive shall be eligible for annual bonuses (cash or stock or a combination) on terms and in amounts determined by the Company’s Board of Directors in its sole discretion. The Company shall not be obligated to pay any bonus or implement any bonus program. If the Board of Directors agrees to initiate an Annual Bonus program then for each calendar year ending during the Term (beginning with the calendar year ending December 31, 2018, the Executive shall be eligible to receive an annual bonus (the “Annual Bonus”) with a target amount equal to a 55% percent of the Base Salary earned by the Executive for such calendar year (the “Target Annual Bonus”). The actual amount of the 2018 Annual Bonus will be based upon the level of achievement of the Company’s corporate objectives, management objectives and the Executive’s individual objectives that are delineated in Appendix B to this agreement. For future Annual Bonas’s they will be established by the Board or the Compensation Committee (taking into account the input of the BOD with respect to the establishment of the Executive’s individual objectives for the calendar year with respect to which such Annual Bonus relates). Each Annual Bonus for a calendar year, to the extent earned, will be paid in a lump sum in the following calendar year, within the first 45 days of such following year. The Annual Bonus shall not be deemed earned until the date that it is paid. Accordingly, in order for the Executive to receive an Annual Bonus, the Executive must be actively employed by the Company at the time of such payment.  

 

(c)Equity Compensation. The Executive will be eligible to receive 1,280 share of the Company’s stock options at a strike price of $0.01/share. Immediately upon signing this Agreement the Executive will receive a grant of stock options of 280,000 options pursuant to the Company’s 2018 Equity Incentive Plan (the “Plan”). The exercise price of the option shares will be at a strike price of $0.01/share. The balance of the options shall be vested upon the fulfillment of the following milestones (the “Milestones”): 

 

a)If the Company reaches an enterprise value of $150.0 million or greater or $7.5 per share or greater, the Executive shall receive 25% of the remaining Stock Option (or 250,000), at a strike price of $0.01/share as a bonus. 

b)If the Company reaches an enterprise value of $300.0 million or greater or $15.0 per share or greater, the Executive shall receive an additional 25% of the Stock Option (or 250,000), at a strike price of $0.01/share as a bonus. 

c)If the Company reaches an enterprise value of $600.0 million or greater or $30.0 per share or greater, the Executive shall receive an additional 25% of the remaining Stock Option (or 250,000), at a strike price of $0.01/share as a bonus. 

d)If the Company reaches an enterprise value of $1 billion or greater or $50.0 per share or greater, the Executive shall receive the final 25% of the remaining Stock Option (or 250,000), at a strike price of $0.01/share as a bonus. 

2

 

 

Notwithstanding the terms of the Plan with regard to a Change of Control of the Company (as defined in Section 4.3(c)(i)), in the event of a Change of Control then: (a) 100% of the total number of then-unvested shares under the Option Grant shall be immediately vested and you will be given a reasonable opportunity to exercise the Option Grant prior to the closing of the Change of Control. 

 

(d)Benefit Plans. The Executive shall be entitled to receive employee benefits as are afforded under the company’s standard written benefits package to regular full-time employees of the Company, as may be changed at the Company’s discretion from time to time. Such benefits shall include paid time off for vacation, sick days, and holidays. Additionally, the Company shall pay for medical insurance and payments for medical insurance (“Medical Benefits”) for the duration the Executive is employed with the Company and for times determined after termination per Section 4.2(b). 

 

(e)Paid Vacation. The Executive shall be entitled to paid vacation days in accordance with the Company’s vacation policies in effect from time to time for its executive team; provided, however, that the Executive shall be entitled to no less than 25 paid vacation days per calendar year during the Term. 

 

Section 3.2.Expense Reimbursement. The Company shall reimburse the Executive during the Term, in accordance with the Company’s expense reimbursement policies in place from time, for all reasonable out-of-pocket business expenses incurred by the Executive in the performance of his duties hereunder. In order to receive such reimbursement, the Executive shall furnish to the Company documentary evidence of each such expense in the form required to comply with the Company’s policies in place from time to time.  

 

ARTICLE 4

TERMINATION OF EMPLOYMENT

 

Section 4.1.Termination With Cause, Without Cause or Resignation for Good Reason. 

 

The Company may terminate the Executive’s employment hereunder at any time with Cause or Without Cause (other than by reason of death or Disability) upon 15 days prior written notice to the Executive. Executive may terminate his employment hereunder for Good Reason upon written notice to the Company in accordance with the provisions set forth in Section 4.1(c).

 

(a)As used in this Agreement, “Cause” shall mean: (a) a material act, or act of fraud, committed by the Executive that is intended to result in the Executive’s personal enrichment to the detriment or at the expense of the Company or any of its affiliates; (b) the Executive is convicted of a felony; (c) gross negligence or willful misconduct by the Executive, or failure by the Executive to perform the duties or obligations reasonably assigned to the Executive by the Board from time to time, which is not cured upon 10 days prior written notice (unless such negligence, misconduct or failure is not susceptible to cure, as determined in the reasonable discretion of the BOD); or (d) the Executive violates the covenants stated in the Agreement. Under this termination the Executive would not be entitled to any severance payments.  

 

(b)The Company may terminate the Executive’s employment at any time without Cause upon written notice to the Executive. In this case the Executive would receive severance payments (see below for the severance payment description). 

 

(c) As used in this Agreement, Executive may terminate his employment for good reason upon written notice to the Company (“Termination for Good Reason”): “Good Reason” shall mean: (a) a material breach by the Company of the terms of the Agreement; (b) a material reduction in the Executive’s Base Salary; (c) a material diminution in the Executive’s authority, duties or responsibilities; or (d) a material change in the geographic location (more than 60 Miles) at which the Executive performs services for the Company; provided, however, that the Executive must notify the Company within 90 days of the occurrence of any of the foregoing conditions that he considers it to be a “Good Reason” condition and provide the Company with at least 30 days in which to cure the condition. If the Executive fails to provide the notice and allow for the cure period prior to his resignation, or resigns more than 6 months after the initial existence of the condition, his resignation will not be deemed to be for “Good Reason”. 

 

(d)The Executive may voluntarily terminate his employment at any time without Good Reason upon 60 days prior written notice to the Company. 

 

(e)As the result of any Disability suffered by the Executive, the Company may, upon 5 days prior notice to the Executive, terminate the Executive’s employment under the Agreement. The Executive’s employment shall automatically terminate upon his death. “Disability” shall mean a determination by the Company in accordance with the applicable law that as a result of a physical or mental injury or illness, the Executive is unable to perform the essential functions of his job with or without reasonable accommodation for a period of (a) 90 consecutive days; or (b) 120 days during any 12-month period. 

3

 

 

Section 4.2Severance. 

 

(a)If the Executive’s employment is terminated pursuant to Section 4.1(a) or Section 4.1(d) than the Executive will not be entitled to any severance payments from the Company. The Executive, however, will be entitled to the following: 

 

(i)Unpaid Base Salary 

(ii)Unpaid accrued Vacation 

(iii)Vested Stock Options if the required performance milestones have been met on or prior to the date of termination 

 

(b)If the Executive’s employment is terminated pursuant to Section 4.1(b) or Section 4.1(c) other than during the Post-Change in Control Period (as defined in Section 4.1(e)), the Executive shall, in full discharge of all of the Company’s obligations to the Executive, be entitled to receive, and the Company’s sole obligation to the Executive under this Agreement or otherwise shall be to pay or provide to the Executive, the following:  

 

(i)Termination Without Cause within 12 months since execution of the Employment Agreement 

 

(A)The Executive shall be entitled to: 

(1)Unpaid Base Salary 

(2)Pending Vacations 

(3)3 months of Base Salary and Medical Benefits as severance payment 

(4)Stock Options, if the Milestones have been reached on or prior to the date of termination  

 

(ii)Termination Without Cause by the Company after 12 months since execution of the Employment Agreement or Termination for Good Reason by the Executive or Termination Resulting from Death or Disability 

 

(A)The Executive shall be entitled to: 

(1)Unpaid Base Salary 

(2)Pending vacations 

(3)6 months of Base Salary and Medial Benefits as severance payment and additionally 3 months of Base Salary and Medical Benefits per year lapsed after year two since date of execution of the Employment Agreement with an overall ceiling of 12 months of Base Salary and Medical Benefits. 

(4)The Stock Options shall be automatically vested and the Executive will have all right and title to the equity. 

 

Section 4.3Termination due to Change-in-Control (“CIC”) 

 

If the Executive’s employment is terminated pursuant to Section 4.1(b) or Section 4.1(c) during the twelve (12) months immediately following a Change in Control (as defined below) (the “Post-Change in Control Period”), the Executive shall, in full discharge of all of the Company’s obligations to the Executive (and in lieu of any payments and benefits set forth in Section 4.1(d)), be entitled to receive, and the Company’s sole obligation to the Executive under this Agreement or otherwise shall be to pay or provide to the Executive, the following: 

 

(i)the Accrued Obligations; and 

(ii)subject to Section 4.4 and Section 4.5: 

 

(A)payments equal to twelve (12) of the Executive’s Base Salary (at the rate in effect immediately prior to the Termination Date) (less applicable withholdings and authorized deductions), to be paid in equal installments bimonthly in accordance with the Company’s customary payroll practices, commencing sixty (60) days following the Termination Date (the “Post-CIC Severance Payments”);  

4

 

 

(B)if the Executive then participates in the Company’s medical and/or dental plans and the Executive timely elects to continue and maintain group health plan coverage pursuant to COBRA, the Company will pay monthly, on the Executive’s behalf, a portion of the cost of such coverage for the twelve (12) months after the Termination Date, which payments will be equal to the amount of the monthly premium for such coverage, less the amount that the Executive would have been required to pay if the Executive had remained an active employee of the Company (the “Post-CIC COBRA Assistance”); provided, however, that if and to the extent that the Company may not provide such Post-CIC COBRA Assistance without incurring tax penalties or violating any requirement of the law, the Company shall use its commercially reasonable best efforts to provide substantially similar assistance in an alternative manner provided that the cost of doing so does not exceed the cost that the Company would have incurred had the Post-CIC COBRA Assistance been provided in the manner described above or cause a violation of Section 409A; and 

 

(C)a payment equal to the Executive’s Target Annual Bonus for the calendar year in which the Termination Date occurs, payable in a lump sum on the 60th day following the Termination Date. 

 

(D) As used in this Agreement, “Change in Control” means a simple majority (50%) change in ownership of the Company under clause (i) below or (y) a change in the ownership of a substantial portion of the assets of the Company under clause (ii) below: 

 

(1)Change in the Ownership of the Company. A change in the ownership of the Company shall occur on the date that any one person, or more than one person acting as a group (as defined in clause (iii) below), acquires ownership of capital stock of the Company that, together with capital stock held by such person or group, constitutes more than 50 percent of the total fair market value or total voting power of the capital stock of the Company. However, if any one person or more than one person acting as a group, is considered to own more than 50 percent of the total fair market value or total voting power of the capital stock of the Company, the acquisition of additional capital stock by the same person or persons shall not be considered to be a change in the ownership of the Company. An increase in the percentage of capital stock owned by any one person, or persons acting as a group, as a result of a transaction in which the Company acquires capital stock in the Company in exchange for property will be treated as an acquisition of stock for purposes of this paragraph.  

 

(2)Change in the Ownership of a Substantial Portion of the Company’s Assets. A change in the ownership of a substantial portion of the Company’s assets shall occur on the date that any one person, or more than one person acting as a group (as defined in clause (iii) below), acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) assets from the Company that have a total gross fair market value equal to or more than 80 percent of the total gross fair market value of all of the assets of the Company immediately prior to such acquisition or acquisitions. For this purpose, gross fair market value means the value of the assets of the Company, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets. There is no Change in Control under this clause (ii) when there is a transfer to an entity that is controlled by the shareholders of the Company immediately after the transfer, as provided below in this clause (ii). A transfer of assets by the Company is not treated as a change in the ownership of such assets if the assets are transferred to (a) a shareholder of the Company (immediately before the asset transfer) in exchange for or with respect to its capital stock, (b) an entity, 50 percent or more of the total value or voting power of which is owned, directly or indirectly, by the Company, (c) a person, or more than one person acting as a group, that owns, directly or indirectly, 50 percent or more of the total value or voting power of all the outstanding capital stock of the Company, or (d) an entity, at least 50 percent of the total value or voting power of which is owned, directly or indirectly, by a person described in clause (ii)(c) of this paragraph. For purposes of this clause (ii), a person's status is determined immediately after the transfer of the assets.  

5

 

 

(3)Persons Acting as a Group. For purposes of clauses (i) and (ii) above, persons will not be considered to be acting as a group solely because they purchase or own capital stock or purchase assets of the Company at the same time. However, persons will be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of assets or capital stock, or similar business transaction with the Company. If a person, including an entity, owns stock in both corporations that enter into a merger, consolidation, purchase or acquisition of assets or capital stock, or similar transaction, such shareholder is considered to be acting as a group with other shareholders in a corporation only with respect to the ownership in that corporation before the transaction giving rise to the change and not with respect to the ownership interest in the other corporation. For purposes of this paragraph, the term “corporation” shall have the meaning assigned such term under Treasury Regulation section 1.280G-1, Q&A-45. 

(4)Each of clauses (i) through (iii) above shall be construed and interpreted consistent with the requirements of Section 409A and any Treasury Regulations or other guidance issued thereunder.  

 

Section 4.4.Termination Resulting from Death or Disability. 

 

(a)As the result of any Disability suffered by the Executive, the Company may, upon five (5) days prior notice to the Executive, terminate the Executive’s employment under this Agreement. The Executive’s employment shall automatically terminate upon her death. 

 

(b)“Disability” means a determination by the Company in accordance with applicable law that as a result of a physical or mental injury or illness, the Executive is unable to perform the essential functions of her job with or without reasonable accommodation for a period of (i) ninety (90) consecutive days; or (ii) one hundred twenty (120) days during any twelve (12) month period. 

 

(c)If the Executive’s employment is terminated pursuant to Section 4.3(a), the Executive or the Executive’s estate, as the case may be, shall be entitled to receive, and the Company’s sole obligation under this Agreement or otherwise shall be to pay or provide to the Executive or the Executive’s estate, as the case may be, the Accrued Obligations. 

 

Section 4.5.Release Agreement.  

 

In order to receive the Pre-CIC Severance Payments or the Post-CIC Severance Payments (collectively referred to herein as the “Severance Payments”) or the Pre-CIC COBRA Assistance or the Post-CIC COBRA Assistance (collectively referred to herein as the “COBRA Assistance”) set forth in Section 4.1 (if eligible), the Executive must timely execute (and not revoke) a separation agreement and general release (the “Release Agreement”) in a customary form as is determined to be reasonably necessary by the Company in its good faith and reasonable discretion. If the Executive is eligible for Severance Payments and COBRA Assistance pursuant to Section 4.1, the Company will deliver the Release Agreement to the Executive within seven (7) calendar days following the Termination Date. The Severance Payments and COBRA Assistance are subject to the Executive’s execution of such Release Agreement within 45 days of the Executive’s receipt of the Release Agreement and the Executive’s non-revocation of such Release Agreement. 

 

Section 4.6.Post-Termination Breach.  

 

Notwithstanding anything to the contrary contained in this Agreement, the Company’s obligations to provide the Severance Payments and the COBRA Assistance will immediately cease if the Executive breaches any of the provisions of the Covenants Agreement, the Release Agreement or any other agreement the Executive has with the Company.

 

ARTICLE 5

GENERAL PROVISIONS

 

Section 5.1.Company Non-Disclosure and Invention Assignment Agreement. The Executive acknowledges and confirms that the Employee Confidentiality and Invention Assignment Agreement executed by the Executive in favor of the Company on April 1, 2015 (“Covenants Agreement”), the terms of which are incorporated herein by reference, remains in full force and effect and binding upon the Executive. The Covenants Agreement shall survive the termination of this Agreement and the Executive’s employment by the Company for the applicable period(s) set forth therein.  

6

 

 

Section 5.2.Expenses. Each of the Company and the Executive shall bear its/her own costs, fees and expenses in connection with the negotiation, preparation and execution of this Agreement. 

 

Section 5.3.Entire Agreement. This Agreement and the Covenants Agreement contain the entire agreement of the parties hereto with respect to the terms and conditions of the Executive’s employment during the Term and activities following termination of this Agreement and the Executive’s employment with the Company and supersede any and all prior agreements and understandings, whether written or oral, between the parties hereto with respect to the subject matter of this Agreement or the Covenants Agreement. Each party hereto acknowledges that no representations, inducements, promises or agreements, whether oral or in writing, have been made by any party, or on behalf of any party, which are not embodied herein or in the Covenants Agreement. The Executive acknowledges and agrees that the Company has fully satisfied, and has no further, obligations to the Executive arising under, or relating to, any other employment or consulting arrangement or understanding (including, without limitation, any claims for compensation or benefits of any kind) or otherwise. No agreement, promise or statement not contained in this Agreement or the Covenants Agreement shall be valid and binding, unless agreed to in writing and signed by the parties sought to be bound thereby.  

 

Section 5.4.No Conflicts. The Executive represents and warrants to the Company that neither the execution and delivery of this Agreement by the Executive nor the performance by the Executive of the Executive’s obligations hereunder, shall constitute a default or Conflict under or a breach of the terms of any other agreement, contract or other arrangement, whether written or oral, to which the Executive is a party or by which the Executive is bound, nor shall the execution and delivery of this Agreement by the Executive nor the performance by the Executive of his duties and obligations hereunder give rise to any claim or charge against either the Executive, the Company or any Affiliate, based upon any other contract or other arrangement, whether written or oral, to which the Executive is a party or by which the Executive is bound. The Executive further represents and warrants to the Company that he is not a party to or subject to any restrictive covenants, legal restrictions or other agreement, contract or arrangement, whether written or oral, in favor of any entity or person which would in any way preclude, inhibit, impair or limit the Executive’s ability to perform her obligations under this Agreement or the Covenants Agreement, including, but not limited to, non-competition agreements, non-solicitation agreements or confidentiality agreements. The Executive shall defend, indemnify and hold the Company harmless from and against all claims, actions, losses, liabilities, damages, costs and expenses (including reasonable attorney’s fees and amounts paid in settlement in good faith) arising from or relating to any breach of the representations and warranties made by the Executive in this Section 5.4. 

 

Section 5.5.Notices. Any notice or other communication required or permitted hereunder shall be in writing and shall be delivered personally or sent by nationally recognized overnight courier service (with next business day delivery requested). Any such notice or communication shall be deemed given and effective, in the case of personal delivery, upon receipt by the other party, and in the case of a courier service, upon the next business day, after dispatch of the notice or communication. Any such notice or communication shall be addressed as follows: 

 

If to the Company, to:

  

Marizyme, Inc.

2950 East Harmony Road

Suite 255

Fort Collins, CO 80528

 

Michael K. Handley

6412 Engh Place

Timnath, Colorado USA 80547

 

Any person named above may designate another address or fax number by giving notice in accordance with this Section to the other persons named above. 

 

Section 5.6.Governing Law; Jurisdiction. This Agreement shall be governed by, and construed in accordance with, the laws of Nevada, without regard to principles of conflicts of law. Any and all actions arising out of this Agreement or Employee’s employment by Company or termination therefrom shall be brought and heard in the state and federal courts of Nevada and the parties hereto hereby irrevocably submit to the exclusive jurisdiction of any such courts. THE COMPANY AND THE EXECUTIVE HEREBY WAIVE THEIR RESPECTIVE RIGHT TO TRIAL BY JURY IN ANY ACTION CONCERNING THIS AGREEMENT OR ANY AND ALL MATTERS ARISING DIRECTLY OR INDIRECTLY HEREFROM AND REPRESENT THAT THEY HAVE CONSULTED WITH COUNSEL OF THEIR CHOICE OR HAVE CHOSEN VOLUNTARILY NOT TO DO SO SPECIFICALLY WITH RESPECT TO THIS WAIVER.  

7

 

 

Section 5.7.Waiver. Either party hereto may waive compliance by the other party with any provision of this Agreement. The failure of a party to insist on strict adherence to any term of this Agreement on any occasion shall not be considered a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement. No waiver of any provision shall be construed as a waiver of any other provision. Any waiver must be in writing. 

 

Section 5.8.Severability. If any one or more of the terms, provisions, covenants and restrictions of this Agreement shall be determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated and the parties will attempt to agree upon a valid and enforceable provision which shall be a reasonable substitute for such invalid and unenforceable provision in light of the tenor of this Agreement, and, upon so agreeing, shall incorporate such substitute provision in this Agreement. In addition, if any one or more of the provisions contained in this Agreement shall for any reason be determined by a court of competent jurisdiction to be excessively broad as to duration, geographical scope, activity or subject, it shall be construed, by limiting or reducing it, so as to be enforceable to the extent compatible with then applicable law. 

 

Section 5.9.Counterparts. This Agreement may be executed in any number of counterparts and each such duplicate counterpart shall constitute an original, any one of which may be introduced in evidence or used for any other purpose without the production of its duplicate counterpart. Moreover, notwithstanding that any of the parties did not execute the same counterpart, each counterpart shall be deemed for all purposes to be an original, and all such counterparts shall constitute one and the same instrument, binding on all of the parties hereto. 

 

Section 5.10.Advice of Counsel. This Agreement was prepared by Lowenstein Sandler LLP in its capacity as legal counsel to the Company. Both parties hereto acknowledge that they have had the opportunity to seek and obtain the advice of counsel before entering into this Agreement and have done so to the extent desired and have fully read the Agreement and understand the meaning and import of all the terms hereof. 

 

Section 5.11.Assignment. This Agreement shall inure to the benefit of the Company and its successors and assigns (including, without limitation, the purchaser of all or substantially all of its assets) and shall be binding upon the Company and its successors and assigns. This Agreement is personal to the Executive, and the Executive shall not assign or delegate her rights or duties under this Agreement, and any such assignment or delegation shall be null and void. 

 

Section 5.12.Agreement to Take Actions. Each party to this Agreement shall execute and deliver such documents, certificates, agreements and other instruments, and shall take all other actions, as may be reasonably necessary or desirable in order to perform her or its obligations under this Agreement. 

 

Section 5.13.No Attachment. Except as required by law, no right to receive payments under this Agreement shall be subject to anticipation, commutation, alienation, sale, assignment, encumbrance, charge, pledge, or hypothecation or to execution, attachment, levy or similar process or assignment by operation of law, and any attempt, voluntary or involuntary, to effect any such action shall be null, void and of no effect; provided, however, that nothing in this Section 5.13 shall preclude the assumption of such rights by executors, administrators or other legal representatives of the Executive or the Executive’s estate and their assigning any rights hereunder to the person or persons entitled thereto. 

 

Section 5.14.Source of Payment. Except as otherwise provided under the terms of any applicable employee benefit plan, all payments provided for under this Agreement shall be paid in cash from the general funds of Company. The Company shall not be required to establish a special or separate fund or other segregation of assets to assure such payments, and, if the Company shall make any investments to aid it in meeting its obligations hereunder, the Executive shall have no right, title or interest whatever in or to any such investments except as may otherwise be expressly provided in a separate written instrument relating to such investments. Nothing contained in this Agreement, and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind, or a fiduciary relationship, between the Company and the Executive or any other person. To the extent that any person acquires a right to receive payments from the Company hereunder, such right, without prejudice to rights which employees may have, shall be no greater than the right of an unsecured creditor of the Company. The Executive shall not look to the owners of the Company for the satisfaction of any obligations of the Company under this Agreement. 

 

Section 5.15.Tax Withholding. The Company or other payor is authorized to withhold from any benefit provided or payment due hereunder, the amount of withholding taxes due any federal, state or local authority in respect of such benefit or payment and to take such other action as may be necessary in the opinion of the Board to satisfy all obligations for the payment of such withholding taxes. The Executive will be solely responsible for all taxes assessed against her with respect to the compensation and benefits described in this Agreement, other than typical employer-paid taxes such as FICA, and the Company makes no representations as to the tax treatment of such compensation and benefits.  

8

 

 

Section 5.16.409A Compliance. All payments under this Agreement are intended to comply with or be exempt from the requirements of Section 409A of the Code and regulations promulgated thereunder (“Section 409A”). As used in this Agreement, the “Code” means the Internal Revenue Code of 1986, as amended. To the extent permitted under applicable regulations and/or other guidance of general applicability issued pursuant to Section 409A, the Company reserves the right to modify this Agreement to conform with any or all relevant provisions regarding compensation and/or benefits so that such compensation and benefits are exempt from the provisions of 409A and/or otherwise comply with such provisions so as to avoid the tax consequences set forth in Section 409A and to assure that no payment or benefit shall be subject to an “additional tax” under Section 409A. To the extent that any provision in this Agreement is ambiguous as to its compliance with Section 409A, or to the extent any provision in this Agreement must be modified to comply with Section 409A, such provision shall be read in such a manner so that no payment due to the Executive shall be subject to an “additional tax” within the meaning of Section 409A(a)(1)(B) of the Code. If necessary to comply with the restriction in Section 409A(a)(2)(B) of the Code concerning payments to “specified employees,” any payment on account of the Executive’s separation from service that would otherwise be due hereunder within six (6) months after such separation shall be delayed until the first business day of the seventh month following the Termination Date and the first such payment shall include the cumulative amount of any payments (without interest) that would have been paid prior to such date if not for such restriction. Each payment in a series of payments hereunder shall be deemed to be a separate payment for purposes of Section 409A. In no event may the Executive, directly or indirectly, designate the calendar year of payment. All reimbursements provided under this Agreement shall be made or provided in accordance with the requirements of Section 409A, including, where applicable, the requirement that (i) any reimbursement is for expenses incurred during the Executive’s lifetime (or during a shorter period of time specified in this Agreement), (ii) the amount of expenses eligible for reimbursement during a calendar year may not affect the expenses eligible for reimbursement in any other calendar year, (iii) the reimbursement of an eligible expense will be made on or before the last day of the calendar year following the year in which the expense is incurred, and (iv) the right to reimbursement is not subject to liquidation or exchange for another benefit. Notwithstanding anything contained herein to the contrary, the Executive shall not be considered to have terminated employment with the Company for purposes of Section 4.1 unless the Executive would be considered to have incurred a “termination of employment” from the Company within the meaning of Treasury Regulation §1.409A-1(h)(1)(ii). In no event whatsoever shall the Company be liable for any additional tax, interest or penalty that may be imposed on the Executive by Section 409A or damages for failing to comply with Section 409A. 

 

Section 5.17.280G Modified Cutback. 

 

(a)If any payment, benefit or distribution of any type to or for the benefit of the Executive, whether paid or payable, provided or to be provided, or distributed or distributable pursuant to the terms of this Agreement or otherwise (collectively, the “Parachute Payments”) would subject the Executive to the excise tax imposed under Section 4999 of the Code (the “Excise Tax”), the Parachute Payments shall be reduced so that the maximum amount of the Parachute Payments (after reduction) shall be one dollar ($1.00) less than the amount which would cause the Parachute Payments to be subject to the Excise Tax; provided that the Parachute Payments shall only be reduced to the extent the after-tax value of amounts received by the Executive after application of the above reduction would exceed the after-tax value of the amounts received without application of such reduction. For this purpose, the after-tax value of an amount shall be determined taking into account all federal, state, and local income, employment and excise taxes applicable to such amount. Unless the Executive shall have given prior written notice to the Company to effectuate a reduction in the Parachute Payments if such a reduction is required, which notice shall be consistent with the requirements of Section 409A to avoid the imputation of any tax, penalty or interest thereunder, then the Company shall reduce or eliminate the Parachute Payments by first reducing or eliminating any cash payments (with the payments to be made furthest in the future being reduced first), then by reducing or eliminating accelerated vesting of stock options or similar awards, and then by reducing or eliminating any other remaining Parachute Payments; provided, that no such reduction or elimination shall apply to any non-qualified deferred compensation amounts (within the meaning of Section 409A) to the extent such reduction or elimination would accelerate or defer the timing of such payment in manner that does not comply with Section 409A. 

 

(b)An initial determination as to whether any of the Parachute Payments received by the Executive in connection with the occurrence of a change in the ownership or control of the Company or in the ownership of a substantial portion of the assets of the Company shall be subject to the Excise Tax, and (y) the amount of any reduction, if any, that may be required pursuant to the previous paragraph, shall be made by an independent accounting firm selected by the Company (the “Accounting Firm”) prior to the consummation of such change in the ownership or effective control of the Company or in the ownership of a substantial portion of the assets of the Company. The Executive shall be furnished with notice of all determinations made as to the Excise Tax payable with respect to the Executive’s Parachute Payments, together with the related calculations of the Accounting Firm, promptly after such determinations and calculations have been received by the Company. 

9

 

 

(c)For purposes of this Section 5.17, (i) no portion of the Parachute Payments the receipt or enjoyment of which the Executive shall have effectively waived in writing prior to the date of payment of the Parachute Payments shall be taken into account; (ii) no portion of the Parachute Payments shall be taken into account which in the opinion of the Accounting Firm does not constitute a “parachute payment” within the meaning of Section 280G(b)(2) of the Code; (iii) the Parachute Payments shall be reduced only to the extent necessary so that the Parachute Payments (other than those referred to in the immediately preceding clause (i) or (ii)) in their entirety constitute reasonable compensation for services actually rendered within the meaning of Section 280G(b)(4) of the Code or are otherwise not subject to disallowance as deductions, in the opinion of the auditor or tax counsel referred to in such clause (ii); and (iv) the value of any non-cash benefit or any deferred payment or benefit included in the Parachute Payments shall be determined by the Company’s independent auditors based on Sections 280G and 4999 of the Code and the regulations for applying those sections of the Code, or on substantial authority within the meaning of Section 6662 of the Code. 

 

Section 5.18.Recoupment of Erroneously Awarded Compensation. Any incentive-based or other compensation paid to the Executive under this Agreement or any other agreement or arrangement with the Company which is subject to recovery under any law, government regulation, stock exchange listing requirement or any clawback policy adopted by the Company from time to time will be subject to the deductions and clawback as may be required by such law, government regulation, stock exchange listing requirement or clawback policy. In addition, if the executive is or becomes an executive officer subject to the incentive compensation repayment requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), then if required by the Dodd-Frank Act or any of its regulations he will enter into an amendment to this Agreement or a separate written agreement with the Company to comply with the Dodd-Frank Act and any of its regulations. 

 

 

[Signature Page Follows]

10

 

 

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

 

COMPANY

 

MARIZYME INC.

 

By:______________________________

Name:  

Title:   

 

EXECUTIVE

 

By: /s/ Michael K. Handley

Name: Michael K. Handley

11

 

 

Appendix A – Approved Disclosures by CEO & Director

 

(1) Medavate Corp. 

(2) Symbios Technologies Inc. 

(3)Reven Pharmaceuticals Inc. 

(4) Nakama Medical, Inc. 

(5)Bright Sky Development LLC 

(6)ACB Holding AB 

12

 

 

Appendix B – Corporate and Individual Performance Milestones

 

	Results to be Achieved

	Weighting

	1. Raising minimum $15M Capital

	50.0%

	2. Up list to NASDAQ Capital Markets

	12.5%

	3. Secure Research Coverage

	12.5%

	4. Approval of Stroke IND

	7.5%

	5. Approval of Wound CE Mark

	7.5%

	6. Identifying/Hiring rest of Management Team 

	5.0%

	7. Identifying and securing 2 other assets

	2.5%

	8. Develop and implement accounting system

	2.5%

	 

	  

	TOTAL

	100.0%

13

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