Document:

lxrp_ex103.htm

 EXHIBIT 10.3
    
 CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN EXCLUDED WHERE ITS DISCLOSURE WOULD BE COMPETITIVELY HARMFUL.
   
 INTELLECTUAL PROPERTY LICENSE AGREEMENT
  
 This Intellectual Property License Agreement (this “Agreement”) dated as of May 20, 2022 (the “Effective Date”) is made by and between Lexaria Hemp Corp., a US corporation with offices at #100 – 740 McCurdy Road, Kelowna, British Columbia, Canada V1X 2P7, Canada (the “LICENSOR”), and Premier Wellness Science Co., Ltd. a Japanese corporation with offices at Toranomon Hills Mori Tower 8F, Toranomon 1-23-1, Minato-ku, Tokyo, Japan, 105-6308 (together with its successors and assigns the “LICENSEE”). LICENSOR and LICENSEE are sometimes referred to individually herein as a “Party” and collectively as the “Parties”.
  
 RECITALS
  
 WHEREAS certain capitalized terms not otherwise defined below are defined in Exhibit D herein;
  
 WHEREAS, LICENSEE is directly (or indirectly through a Partner, as further contemplated in Section 1) a) below) engaged in the business of developing, manufacturing, and selling consumer products for human use that incorporate cannabidiol and/or other minor, non-psychoactive cannabinoids, terpenoids or other constituents extracted from hemp that is substantially free of tetrahydrocannabinol (“THC”) pursuant to licenses issued by the authorities relevant in each and every geographic location referenced within this Agreement, pursuant to regulations promulgated thereby;
  
 WHEREAS, LICENSOR has been issued a license from its parent company, being the indirect owner of certain intellectual property and technology related to, including but not limited to, the development, testing, and manufacturing process for hemp and/or CBD infused products (the “Technology”) and further has been issued the right to sublicense the Technology to parties who wish to utilize the Technology with respect to products that incorporate hemp and/or CBD; which Technology is more specifically described in Exhibit A and detailed batch records and formulation calculation spreadsheets that shall be provided by virtual data room (“VDR”) and/or email upon the execution of this License Agreement, by LICENSOR to LICENSEE;
  
 WHEREAS, LICENSEE wishes to utilize the Technology of LICENSOR (which shall include any Licensor’s Improvements, as defined in Section 3) c)), and LICENSOR desires for LICENSEE to utilize the Technology with hemp ingredients generally regarded as being free of THC, but in any event containing no more than 0.01% THC to either: (i) create, manufacture and/or sell End Products as described in Exhibit B; or (ii) sublicense the Technology to third parties to create, manufacture and/or sell End Products, all as of the Effective Date, subject to the terms and conditions set forth herein. Such End Products shall only be distributed and/or sold by LICENSEE, a Partner or a 3rd Party Sublicensee, as defined in Section 1) a) below, in compliance with all applicable laws and licensing requirements within the Territory as is permitted by this Agreement or an addendum to this Agreement to sell or distribute the End Products;
  
 WHEREAS, the End Products may not be exported from the Territory to any other global location without express written permission granted in advance from the LICENSOR and is subject to entering a separate licensing agreement or an addendum to this Agreement, and is always subject to availability among other LICENSOR considerations; and
  
 WHEREAS, the Parties intend and desire for these recitals to be incorporated into the Agreement, and to be bound by any representations or obligations contained therein.
  
  	 
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 NOW, THEREFORE, in consideration of the promises and the respective covenants and agreements of the parties contained in this Agreement, the Parties hereto agree as follows:
  
 AGREEMENT
  
 1)  License of Technology: Subject to the terms and conditions of this Agreement, LICENSOR hereby grants to LICENSEE an exclusive (as defined in Section 2 below), non-transferable, sub-licensable, license to use the Technology, or sublicense the Technology, to develop, test, make, sell, offer for sale and distribute the End Products during the Term of this Agreement, subject to the limitations in subsection a) below. The LICENSEE acknowledges and agrees that the exclusivity of this license is subject to two historically issued licenses which authorize the use of DehydraTECH in products for sale within the Territory. Provided also that in the event that a Person acquires all of the issued and outstanding shares of LICENSEE, or all or substantially all of the assets of the LICENSEE, the LICENSEE shall be entitled to transfer all of its rights and obligations relating to this Agreement to such Person, and such Person is entitled to all of the rights and benefits of the LICENSEE under this Agreement solely with respect to LICENSEE branded End Products then being sold or produced by the LICENSEE and/or any currently active sublicense to a 3rd Party Sublicensee. 
  
   a)  Ability to Sublicense: LICENSEE is expressly permitted to sublicense its license to use the Technology to a Partner, Related Entity or 3rd Party Sublicensee (all as defined in Exhibit D), provided that any such sublicense is consented to in writing by the LICENSOR in advance. For a period of twelve (12) months from the Effective Date (the “Initial Sublicense Term”), LICENSEE shall be limited to ten (10) aggregate sublicenses issued collectively to Partners, Related Entities or 3rd Party Sublicensees in the Territory. Upon completion of the Initial Sublicense Term, the LICENSEE and LICENSOR shall consider the limitation on the sublicenses and shall mutually agree on whether any increase to such number is appropriate. In addition, LICENSEE may also sublicense its license to a Person performing contract manufacturing for LICENSEE or any sublicensee (a “Contract Manufacturer”) provided that the LICENSOR provides its prior consent to the issuance of such sublicense. Any sublicense issued to a Contract Manufacturer shall form part of the aggregate ten (10) sublicenses during the Initial Sublicense Term that the LICENSEE is authorized to issue. Any sublicensee must agree in writing to all obligations of LICENSEE hereunder using the form provided in Exhibit E hereto, including those relating to confidentiality and non-use regarding both Parties’ Confidential Information. In the event that LICENSEE performs one or more of its obligations under this Agreement through any such Partner, Related Entity, 3rd Party Sublicensee or Contract Manufacturer, then LICENSEE shall at all times be responsible for the performance by such Partner, Related Entity, 3rd Party Sublicensee or Contract Manufacturer of LICENSEE’s obligations hereunder. The LICENSEE shall not have any additional rights to sublicense the license to use the Technology unless the LICENSOR provides its prior written approval to such sublicense. 
       
   b) Other Products: The Parties agree that LICENSEE is not limited to production of the End Products defined herein, but that LICENSEE may develop, create and test new products and negotiate to obtain a license from the LICENSOR for new products subject to license availability from LICENSOR that are derived from or otherwise incorporate the Technology and such new products are only to be distributed and/or sold within the Territory and only after conditions applicable to a new license are met subject to Section 3 below.  
    
  	 
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 c) Active Substances: Nothing in this Agreement infers applicability of the Technology by LICENSEE for enabling active substance incorporation and potentiation in LICENSEE’s End Products, other than those End Products derived from hemp. LICENSEE is strictly prohibited from developing, manufacturing or selling, whether directly or indirectly, including through its Partner, in its Territory, any End Product that is classified as, or is deemed to be, a pharmaceutical product by a national health regulatory agency and has been approved for use for specific therapeutic indications and/or any End Product that bears a label making either a therapeutic or structure/function claim ascribed to the active substances derived from hemp or can only be provided to end users upon physician consultation. The LICENSEE is further prohibited from developing manufacturing or selling, whether directly or indirectly, including through its Partner in its Territory, any End Product that is marketed as the following types of products: (i) a fat soluble vitamin product for vitamins A, D, E, and/or K, whether in their natural or synthetic forms, (ii) a Non-Steroidal Anti Inflammatory (NSAID) product which contains acetaminophen, ibuprofen, acetylsalicylic acid, diclofenac, indomethacin, and piroxicam, or substances similar thereto; or (iii) a nicotine or nicotine analog; (iv) an antiviral drug; (v) a phosphodiesterase type 5 inhibitor; (vi) a hormone; or (vii) any other active substance not specifically named and allowed within this Agreement. 
   
 2) Exclusivity. LICENSEE will have the following rights to produce and sell the End Products perpetually, in the Territory using the Technology licensed pursuant to this Agreement, subject only to a mandatory compensation review and renegotiation (the “Fee Adjustment”) beginning March 1, 2027 and must be completed before August 15, 2027 (the “Renegotiation Period”). 
  
 a) In the Territory: Exclusive rights from the Effective Date allowing LICENSEE the exclusive ability to continue to manufacture the End Products directly or through its Related Entity or Partner in the Territory, or sublicense the Technology to a 3rd Party Sublicensee, subject only to the determination of the Fee Adjustment during each Renegotiation Period, and pursuant to the terms and conditions of this Agreement as per Section 4.
  
 b) Severance Fee: LICENSEE may elect to end sales of the End Products at its sole discretion with a severance fee (“Severance Fee”) set forth in Exhibit C. If LICENSEE elects to end sales of the End Products, then any other licensing provision benefits for the LICENSEE with respect to the End Products also end at that time. Notwithstanding the foregoing, for a period of 6 months after such election is made, LICENSEE shall be permitted to sell End Products using the Technology in an attempt to sell all finished goods inventories pertaining to the Technology.
  
 c) Labels and Advertising for LICENSEE Branded End Products: The LICENSOR shall grant a trademark license (the “Trademark License”), to the LICENSEE entitling the LICENSEE, subject to applicable law, to place on the label of each LICENSEE branded End Product that uses the Technology and/or on LICENSEE websites and/or social media describing each LICENSEE branded End Product, the Powered by Lexaria Bioscience word trademark and the associated pinwheel & leaf design trademark and, if there is available space, the DehydraTECH word mark (the “Lexaria Trademarks”) in the manner set forth in Exhibit C. Specifically prohibited is the use of the Lexaria Trademarks by any 3rd Party Sublicensee on their own branded End Products unless, such 3rd Party Sublicensee enters into a separate trademark license agreement with the LICENSOR.
  
 3) Rights and Obligations Related to the Technology. Except as expressly provided in this section or elsewhere in this Agreement, neither Party will be deemed by this Agreement to have been granted any license or other rights to the other Party’s products, information or other intellectual property rights, either expressly or by implication, estoppel or otherwise. 
  
  	 
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 a) LICENSOR Intellectual Property: LICENSOR, via its license from its parent company, retains its full, absolute, and complete rights to the Lexaria Trademarks and to all processes covered or described in all of the issued patents and patent applications filed prior to the date of this Agreement as listed in the attached Exhibit A, and any future continuations, continuations in part or divisional applications filed thereto, including but not limited to the US Provisional patent applications, US Utility patent application, and the International patent application, that comprise the Technology (collectively “Licensor IP”), unless LICENSOR or its parent company allows these applications to abandon or lapse, or otherwise fails to protect the Technology. Except as expressly provided for in Section 2, nothing in this Agreement or in the conduct of the Parties shall be interpreted as preventing LICENSOR from granting to any other Person a license for use of the Licensor IP or from using the Licensor IP in any manner whatsoever, provided that such use is outside of the Territory.
       
 b) LICENSEE Intellectual Property: Any intellectual property resulting solely from LICENSEE’s work, know-how, or development that does not include nor rely upon the Licensor IP or jointly owned intellectual property, as described in this Agreement, shall be owned by LICENSEE (“Licensee IP”). 
  
 c) Improvements and Research: 
  
 i) LICENSOR Improvements: The entire right and title to the Technology, whether or not patentable, and any patent applications or patents based thereon, which directly relate to and are not severable from Licensor IP and which are improvements thereto by LICENSOR or any Related Entity of the LICENSOR, and such associated employees or others acting for LICENSOR’s or LICENSOR’s Related Entity’s behalf shall be owned solely by LICENSOR or such Related Entity of LICENSOR as designated by LICENSOR (in any such case the “Licensor Improvements”). 
  
 ii) LICENSEE Improvements: Rights and title to improvements whether or not patentable, and any patent applications or patents based thereon, which directly relate to and are not severable from Licensor IP and which are improvements thereto by LICENSEE, its employees or a Partner, as defined by this Agreement, shall be owned by the LICENSEE (“Licensee Improvements”). In respect to such Licensee Improvements, LICENSOR grants LICENSEE a license to use the underlying intellectual property supporting any such improvement for so long as this Agreement remains in effect. If LICENSEE develops any Licensee Improvements, LICENSEE will promptly provide LICENSOR with written notice of such Licensee Improvements to validate LICENSEE’S claim to Licensee Improvements. Following receipt of notice of such Licensee Improvements, LICENSOR shall have the exclusive option during the Term of this Agreement to purchase or license from LICENSEE the Licensee Improvements for LICENSOR’s use upon mutually agreeable terms and conditions that the parties shall negotiate in good faith.
  
 iii) Joint Improvements: Rights and title to the Technology, whether or not patentable, and any patent applications or patents based thereon, which directly relate to and are not severable from Licensor IP and which are improvements thereto by both LICENSOR AND LICENSEE shall be jointly owned intellectual property by LICENSOR AND LICENSEE.
  
 iv) Improvements; Assignment: LICENSEE and LICENSOR hereby represent that all Partners, employees and other Persons acting on its behalf in performing its obligations under this Agreement shall be obligated under a binding written agreement to assign, or as it shall direct, all Joint Improvements that include or rely on the Technology conceived or reduced to practice by such Partners, employees or other Persons acting on its behalf in accordance with this Agreement to the benefit of LICENSOR and LICENSEE. 
  
 v) Research: the Parties may choose to collaborate on research and development activities for mutual benefit. The determination to proceed with any joint research and development activities shall be determined on a case-by-case basis upon careful review of the merits of each project and the mutual consent by both Parties. Any data and/or results obtained from such collaborative research and development activities shall be held to the benefit solely of the Parties and shall not be used by one Party to the detriment of the other Party.
  
  	 
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 vi) Improvements and Research; Confidential Information. All Improvements and Research shall constitute Confidential Information and shall be subject to the confidentiality provisions set forth in this Agreement.
  
 d) Inventions; Reporting: 
  
 i) Upon making any invention that does not include or rely upon the Technology neither the LICENSOR nor the LICENSEE (in either such case the “Inventor”) will have any obligation to share such information of the invention with the other Party or inform the other Party of said invention, and the Inventor retains unrestricted rights and ability to use, assign, license, seek patent and other forms of intellectual property protection related to said invention. For the avoidance of doubt, any such new invention, development, technology, and/or intellectual property belongs solely to the Inventor. 
  
 e) Jointly Owned Intellectual Property: If any patent applications are filed seeking to protect any Joint Improvements (“Jointly Owned IP”), each Party shall be named as joint inventors. 
  
 i) Prosecution and Maintenance of Jointly Owned Patents. The Parties shall cooperate to cause the filing of one or more patent applications covering any such Jointly Owned IP. The Parties will mutually agree upon which of them shall be responsible for filing, prosecution and maintenance of Jointly Owned IP. The expenses of such filing, prosecution and maintenance shall be equally shared by the Parties unless one of the Parties assigns all of its rights to the other Party. Both Parties agree to assist the other Party in enforcing its rights in the Jointly Owned IP. The costs of any such assistance or cooperation will be borne by the requesting party.
  
 ii) Jointly Owned IP Rights. LICENSOR grants to LICENSEE, and the Related Entities of LICENSEE an exclusive, non-sub-licensable, fully-paid, royalty-free, perpetual license to any Jointly Owned IP. Further, LICENSEE grants to LICENSOR and the Related Entities of LICENSOR, an exclusive, non-sub-licensable, fully-paid, royalty-free, perpetual license to any Jointly Owned IP.
  
 f) No Challenge. LICENSEE expressly acknowledges and agrees that all rights in and to the Licensor IP shall remain vested in LICENSOR, and LICENSEE shall not assert any rights to the Licensor IP except as otherwise provided in this Section 3.
  
 g) Notice Requirements. To the extent required by applicable rules and regulations LICENSEE agrees that it will include such patent notices and other proprietary notices on all End Products or related materials that contain any Technology as may be reasonably required by regulators in order to give appropriate notice of all intellectual property rights therein or pertaining thereto.
  
  	 
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 h) Quality Control.
  
 i) LICENSEE agrees to maintain and preserve the quality of the Technology, and to use the Technology in good faith and in a manner consistent with the uses approved herein.
  
 ii) LICENSEE shall (a) ensure that all End Products and related materials under the Technology are developed, tested, promoted, manufactured and distributed in a professional manner in compliance with all generally accepted industry standards, and (b) comply in all material respects with any and all laws, rules and regulations that are applicable to the development, testing, promotion, manufacture and distribution of the End Products and such related materials.
  
 iii) Should the LICENSEE use the Lexaria Trademarks, the LICENSEE further agrees to comply with the requirements of subsections i) and ii) above with respect to the Lexaria Trademarks and further acknowledges that the LICENSOR shall have the right, upon 30 days’ written notice to LICENSEE, to require LICENSEE to provide LICENSOR, or LICENSOR’s nominee, with samples of the End Products for inspection or alternatively to allow for LICENSOR, or LICENSOR’s nominee, to attend the facility of LICENSEE for inspection of the End Products, all for the purposes of quality control.
  
 i) Prosecution and Maintenance. LICENSOR, directly or indirectly, shall be solely responsible for, and have control of, preparing, filing, prosecuting, obtaining, and maintaining the Lexaria Trademarks and the Technology (including Provisional Patent Applications and, if any, issued Patents). LICENSOR shall take such actions as it shall deem to be appropriate in its discretion in connection therewith and shall pay all costs and expenses incurred by it in connection with the foregoing activities.
  
 j) Infringement. If LICENSEE learns of any activity by a third party that might constitute an infringement of LICENSOR’s rights in any of the Technology, or if any third party asserts that LICENSEE’s use of the Technology constitutes unauthorized use or infringement, LICENSEE shall so notify LICENSOR. 
  
 k) Enforcement. 
  
 i) LICENSOR has the right, directly or indirectly, but not the obligation, to enforce its rights against any third-party infringement and to defend LICENSEE’s right to use the Technology and/or Lexaria Trademarks, if applicable. If LICENSOR prosecutes any alleged infringement of the Technology and/or Lexaria Trademarks, or defends LICENSEE’s right to use the Technology and/or Lexaria Trademarks, LICENSOR shall control such litigation and shall bear the expense of such actions. LICENSEE shall make all reasonable efforts to assist LICENSOR therewith, including joining such action as a party plaintiff or providing such evidence and expert assistance as LICENSEE may have within its control, with all costs for such cooperation to be borne by LICENSOR. LICENSOR shall retain the award of any damages in this case. If LICENSOR chooses to not enforce against an alleged infringement, LICENSEE may itself enforce LICENSOR’s rights (and its own rights as a licensee) in the Lexaria Trademarks and/or the Technology, with all costs to be borne by LICENSEE. LICENSEE shall retain the award of any damages in this case.
  
 ii) LICENSOR, or LICENSOR nominee, has the right of examination of LICENSEE financial statements, production records, shipping and warehouse slips and statements if and as required to substantiate reported production and sales levels used to determine royalty levels. Any information provided to LICENSOR under this section is provided under strictest confidentiality and is subject to the confidentiality clauses of this Agreement.
  
  	 
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 4) Term and Termination.
  
 a) Term and Renewal. This Agreement shall take effect upon signing by both Parties and shall remain in effect perpetually, until one or more of the termination circumstances, as described in Section 4) b), occurs. 
  
 b) Termination. This Agreement and the licenses granted hereunder may be terminated as follows:
  
 i) This Agreement may be terminated by LICENSOR by written notice to LICENSEE upon the occurrence of any of the following: (i) failure of LICENSEE to pay any license fees for more than sixty (60) days after they become due; (ii) LICENSEE’s violation of the provisions of Sections 10 or 12 or LICENSEE’s material breach of any other term of this Agreement, which breach is not cured within sixty (60) days after written notice of such breach from LICENSOR; (iii) failure of LICENSEE to maintain all required licenses and governmental authorizations required for the conduct of its business or to comply in all material respects with applicable laws; or (iv) LICENSEE ceases operations, makes a general assignment for the benefit of creditors, or is the subject of a voluntary or involuntary bankruptcy, insolvency or similar proceeding.
  
 ii) This Agreement may be terminated by LICENSEE by (i) written notice to LICENSOR in the event of material breach by LICENSOR of its obligations or representations and warranties under this Agreement, which breach is not cured within sixty (60) days after written notice of such breach from LICENSEE;
  
 iii) This Agreement may be terminated by either Party if a Fee Adjustment, as governed by the provisions associated with such Fee Adjustment as set out in Schedule C, has not been mutually agreed to within the Renegotiation Period.
  
 iv) If LICENSEE terminates without cause or if the license is terminated by LICENSOR due to LICENSEE’s failure to pay any License Fees, LICENSEE acknowledges that it will be liable for the payment of a termination fee equal to all Territory Exclusivity License Fees and all Minimum Performance fees that would otherwise be due and payable in the (24) twenty-four months following LICENSEE termination (the “Termination Fee”).
  
 c) Effect of Termination. Except as provided for in Section 5, LICENSEE’s payment obligations shall extinguish if this Agreement is terminated and LICENSEE must immediately cease and desist all utilization of the Technology and, if applicable, the Lexaria Trademarks, for any purpose whatsoever including to manufacture, distribute or sell End Products. Any sublicense entered into between LICENSEE and a 3rd Party Sublicensee, shall be assigned to LICENSOR and all payment obligations of the 3rd Party Sublicensee for the sublicense to the Technology shall be made directly to LICENSOR. Subject to the provisions of 4) d) below, LICENSEE may continue to distribute and sell End Products until all finished goods and raw materials inventory that pertain to the Technology have been sold and LICENSEE shall be obligated to pay LICENSOR any related License Fees (as defined in Section 5) for such sales. 
  
 d) Destruction or Delivery of Inventory. If the LICENSEE commits a material breach due to failure to pay any License Fees as set out in Exhibit C and further fails to cure such breach within sixty (60) days, LICENSOR has the right to require either (i) the destruction of all manufactured and unsold End Products and any ingredients prepared using the Technology for the purposes of creating End Products; or (ii) the delivery of all manufactured and unsold End Products and any ingredients prepared using the Technology for the purposes of creating End Products to the LICENSOR or a nominee of the LICENSOR. The LICENSOR shall have the further right to attend the facilities of the LICENSEE to witness such destruction of End Products and ingredients incorporating the Technology or to ensure that all such inventory has been delivered to the LICENSOR or the LICENSOR’s nominee, at the LICENSOR’s cost, or shall coordinate another method of validating such destruction or delivery with the LICENSEE.
  
  	 
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 e) Survivability. This Agreement in its entirety survives and remains in force if either Party is acquired by any unknown third party. In the event that either Party negotiates any such sale or acquisition, then it shall form a part of any such sale or acquisition agreement, that this Agreement remains binding upon the third party that is the purchaser or acquirer.
  
 f) Change of Control. In the event that LICENSEE is purchased as to 50.1% or more (a “Change of Control”) by any entity, this Agreement remains valid only in relation to those End Products that were in commercial production at the time of Change of Control. This Agreement grants no rights to any third party to utilize the benefits of the Technology for any products other than the End Products described within. All other terms and conditions of this Agreement remain in force if there is a Change of Control and also remain in force if there is a change of control as defined as the purchase of 50.1% or more of the equity of the LICENSOR by any single entity.
  
 5) Compensation and Payment. 
  
 a) In consideration for the license granted to LICENSEE under this Agreement, LICENSEE shall pay LICENSOR certain license fees as set forth in Exhibit C (collectively, the “License Fee”). The License Fee for a period shall be paid by LICENSEE to LICENSOR, in U.S. funds, by cheque or wire transfer of immediately available funds pursuant to the bank account identified by LICENSOR in advance of such payment. If LICENSEE materially breaches this Agreement, LICENSEE shall remain responsible for any License Fee payments due through the end of the calendar quarter during which such breach occurs. LICENSEE’s failure to pay any portion of the applicable License Fee or any reimbursable expenses when due will be a material breach of this Agreement by LICENSEE. If any payment due to LICENSOR under this Agreement is not paid within thirty (30) days following such Party’s written demand therefore, then such payment shall bear interest at the rate of one and one-half percent (1.5%) per month from the date such payment was originally due.
  
 6) Right of First Refusal. For a period of three (3) years from the Effective Date, the LICENSOR shall provide the LICENSEE with a Right of First Refusal (“ROFR”) to the issue of any license for the Technology in the nations of the People’s Republic of China and the Republic of Korea (the “ROFR Nations”). The ROFR expires immediately if this Agreement is terminated for any reason or if the LICENSEE is deficient in the payment of any License Fee required under this Agreement. The ROFR shall be exercised in the following manner:
  
 a) if the LICENSOR has negotiated the terms of a license to the Technology with a third party in a ROFR Nation, the LICENSOR shall provide the LICENSEE with notice of such potential license detailing the terms and conditions of the license and the associated payments for same (the “ROFR Notice”);
  
 b) within fourteen (14) calendar days of receiving the ROFR Notice, the LICENSEE must advise the LICENSOR of its desire to exercise its ROFR and to agree to the terms of the license as outlined in the ROFR Notice or alternatively, to confirm that it will not be exercising its ROFR. A failure to respond within the fourteen (14) calendar days of receiving the ROFR Notice shall be deemed to be a confirmation by the LICENSEE that it will not be exercising its ROFR;
  
 c) upon confirmation by the LICENSEE that it will be exercising its ROFR with respect to any ROFR Notice, the Parties agree to enter into a definitive license agreement formalizing the terms noted in the ROFR Notice within sixty (60) calendar days of such confirmation.
  
  	 
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 7) Obligations.
  
 a) Obligations of LICENSEE. 
  
 i) LICENSEE shall be solely responsible for all costs of producing the End Products, including raw materials and labor. LICENSEE acknowledges and agrees that it is solely responsible as applicable for (i) procurement of hemp extraction machinery, hemp, hemp oils, and other raw materials as required; (ii) compliance with all applicable laws relating to production and sale of hemp products; and (iii) procurement and maintenance of all required licensing and permits and/or operating authorities, including proper zoning of production and distribution facilities.
  
 b) Obligations of LICENSOR.
  
 i) Upon execution of this Agreement, LICENSOR shall make the Technology and any additional documents or materials not yet provided as described in Section 1, including standard operating procedures and study data, otherwise necessary to effectuate the license of the Technology contemplated herein available for LICENSEE. 
  
 ii) Upon request by LICENSEE, LICENSOR shall provide guidance on the procurement of the required equipment to effectively manufacture products enhanced with the Technology.
  
 iii) Upon request by LICENSEE, LICENSOR shall provide LICENSEE with onsite or remote consultation, management services or marketing support in connection with LICENSEE’s implementation and use of the Technology (including Licensor Improvements) during the term of this Agreement, with reasonable costs and travel expenses paid for by LICENSEE. 
  
 8) Representations and Warranties.
  
 a) Representations and Warranties of LICENSEE. LICENSEE represents and warrants to LICENSOR as follows: 
  
 i) LICENSEE is a corporation duly organized and in good standing under the laws of Japan;
  
 ii) the execution, delivery and performance of this Agreement by LICENSEE has been duly authorized by all necessary action on the part of LICENSEE’s directors, managers and/or members and does not violate, conflict with, or require the consent or approval of any third party pursuant to any contract or legally binding obligation to which LICENSEE is subject;
  
 iii) this Agreement constitutes the valid and binding obligation of LICENSEE enforceable against LICENSEE in accordance with its terms;
  
 iv) LICENSEE is knowledgeable of the applicable laws and regulations of the Territory pertaining to the research, manufacture and distribution of the End Products, the use of hemp and CBD in the End Products and the use of the Technology and confirms that the LICENSEE is in compliance with such laws and regulations; and
  
 v) before LICENSEE begins to distribute and sell the End Products which use the Technology, LICENSEE will possess all required licenses, permits or operating authorities necessary for its operations and the manufacture and sale of the End Products as hemp and/or CBD products and will be in compliance with all applicable laws and regulations.
  
 b) Representations and Warranties of LICENSOR. LICENSOR represents and warrants to LICENSEE as follows: 
  
 i) LICENSOR is a corporation duly organized and in good standing under the laws of Delaware, United States at the time of entering this Agreement;
  
  	 
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 ii) the execution, delivery and performance of this Agreement by LICENSOR has been duly authorized by all necessary action on the part of LICENSOR’s directors and officers and does not violate, conflict with, or require the consent or approval of any third party pursuant to any state or local law or regulation applicable to LICENSOR or any contract or legally binding obligation to which LICENSOR is subject;
  
 iii) this Agreement constitutes the valid and binding obligation of LICENSOR enforceable against LICENSOR in accordance with its terms; and
  
 iv) the Licensor IP does not infringe any third-party rights.
  
 9) Reliance. The LICENSEE acknowledges that the LICENSOR is relying on the representations and warranties of the LICENSEE in the provision of this license to the Technology.
  
 10) Confidentiality. In addition to the Confidentiality Agreement previously entered into by the Parties, at all times during the term of this Agreement and thereafter, each Party undertakes not to use or disclose and to otherwise keep confidential, any trade secrets or proprietary information, including, but not limited to the Technology and other intellectual property of the other Party (in each instance, the “Confidential Information”) except to the extent required to perform each Party’s respective obligations under this Agreement. Without limitation of the foregoing, each Party will hold the other Party’s Confidential Information in confidence and will (a) exercise the same degree of care, but no less than a reasonable degree of care, to prevent its disclosure as such Party would take to safeguard its own confidential or proprietary information, and (b) limit disclosure of the Confidential Information, including any notes, extracts, analyses or materials that would disclose the Confidential Information, solely to those of its employees who need to know the information for purposes of performing the respective Party’s obligations under this Agreement and who agree to keep such information confidential. Upon termination of this Agreement, each Party shall immediately return all Confidential Information to the other Party and further the LICENSOR shall have the right to conduct an on-site audit of the LICENSEE within three (3) business days of termination to ensure compliance with the terms of this Agreement, at LICENSOR’s expense.
  
 a) Limitations. This section does not apply to any information that: (a) is already lawfully in the receiving Party’s possession (unless received pursuant to a nondisclosure agreement); (b) is or becomes generally available to the public through no fault of the receiving Party; (c) is disclosed to the receiving Party by a third party who may transfer or disclose such information without restriction; (d) is required to be disclosed by the receiving Party as a matter of law (provided that the receiving Party will use all reasonable efforts to provide the disclosing Party with prior notice of such disclosure and to obtain a protective order therefor, with all costs to be borne by the disclosing Party); (e) is disclosed by the receiving Party with the disclosing Party’s approval; or (f) is independently developed by the receiving Party without any use of Confidential Information. In all cases, the receiving Party will use all reasonable efforts to give the disclosing Party ten (10) days’ prior written notice of any disclosure of information under this Agreement. The Parties will maintain the confidentiality of all confidential and proprietary information learned pursuant to this Agreement for a period of ten (10) years from the date of termination of this Agreement.
  
 b) Saving Provision. The Parties agree and stipulate that the agreements contained in this section are fair and reasonable in light of all of the facts and circumstances of their relationship; however, the Parties are aware that in certain circumstances courts have refused to enforce certain agreements. Therefore, in furtherance of and not in derogation of the provisions of the preceding paragraph the parties agree that in the event a court should decline to enforce the provisions of the preceding paragraph, that paragraph shall be deemed to be modified to restrict non-enforcing Party’s rights under this Agreement to the maximum extent, in both time and geography, which the court shall find enforceable.
  
  	 
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 11) Injunctive Relief. The Parties agree any breach of this Agreement by LICENSEE shall cause LICENSOR immeasurable and irreparable harm and LICENSOR shall be entitled to seek immediate injunctive relief from any court of competent jurisdiction, in addition to any other remedies that LICENSOR may have at law or in equity. The Parties further agree any breach of this Agreement by LICENSOR shall cause LICENSEE immeasurable and irreparable harm and LICENSEE shall be entitled to seek immediate injunctive relief from any court of competent jurisdiction, in addition to any other remedies that LICENSEE may have at law or in equity.
  
 12) Indemnification. 
  
 a) LICENSEE agrees to indemnify LICENSOR and hold LICENSOR harmless from and against any and all liabilities, losses and expenses arising from (i) LICENSEE’s unauthorized use of the Technology; (ii) LICENSEE’s failure to comply with applicable laws or to maintain all required licenses and governmental authorizations; (iii) any breach of LICENSEE’s representations and warranties set forth herein; and (iv) any liability to third parties as a result of LICENSEE’s production, distribution and/or sale of End Products, except as to any liability arising out of the proper use of the Technology.
  
 b) LICENSOR agrees to indemnify LICENSEE and hold LICENSEE harmless from and against any and all liabilities, losses and expenses arising from (i) any breach of LICENSOR’s representations and warranties set forth herein; and (ii) any claims of infringement raised by third parties as to the Technology or Licensed Patents.
  
 c) If a Party seeks indemnification (the “Indemnitee”), it shall give written notice to the other Party (the “Indemnitor”) promptly after the Indemnitee becomes aware of the facts giving rise to such claim for indemnification (an “Indemnified Claim”), and in any event within 30 days, specifying in reasonable detail the factual basis of the Indemnified Claim and stating the amount of the damages (or if not known, a good faith estimate of the amount of damages).
  
 d) In the event of receipt of notice of an Indemnified Claim arising out of the use of the LICENSOR’s Technology, the Indemnitor shall have the right to control and defend such Indemnified Claim, in such manner as it may reasonably deem appropriate. Should the Indemnitor decline to control and defend the Indemnified Claim, the Indemnitee shall have the right to control and defend the Indemnified Claim in such manner as it may deem appropriate. The controlling Party shall select counsel, contractors, experts and consultants of recognized standing and competence reasonably acceptable to the other Party, shall take reasonable steps necessary in the investigation, defense or settlement thereof, and shall diligently and promptly pursue the resolution thereof. All Parties shall cooperate fully with the Party conducting the defense of any Indemnified Claim.
  
 e) The Party controlling the defense of any Indemnified Claim shall be authorized to consent to a settlement of, or the entry of any judgment arising from, any Indemnified Claims subject to the following provisions. If the Indemnitor is controlling the litigation, Indemnitee must consent to any such settlement, such consent not to be unreasonably withheld. Indemnitee’s consent will be deemed unreasonably withheld unless the settlement would encumber any of its assets or contains any restriction or condition that would apply to the Indemnitee or to the conduct of its business. If the Indemnitee is controlling the litigation, it may not enter into a settlement or consent to an entry of judgment with respect to any Indemnified Claim without the express written consent of the Indemnitor, not to be unreasonably withheld.
  
  	 
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 f) Indemnitor shall be responsible for paying any damages or settlement arising out of an Indemnified Claim. However, in the event Indemnitee pays such damages or settlement, Indemnitor shall reimburse Indemnitee within thirty (30) days of Indemnitee making such a payment.
  
 13) Limitation of Liability. EXCEPT TO THE EXTENT OTHERWISE EXPRESSLY AGREED TO IN THIS AGREEMENT, NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR LOST PROFITS OR FOR ANY DIRECT, INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL, PUNITIVE OR EXEMPLARY DAMAGES IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, HOWEVER CAUSED, UNDER ANY THEORY OF LIABILITY. THE FOREGOING SHALL NOT LIMIT LICENSEE’S LIABILITY FOR UNAUTHORIZED USE BY LICENSEE OF LICENSOR’S TECHNOLOGY.
  
 14) No Warranties. OTHER THAN THE EXPRESS WARRANTIES PROVIDED HEREIN, LICENSOR MAKES NO EXPRESS WARRANTIES OF MERCHANTABILITY OR FITNESS OR EFFICACY FOR A PARTICULAR PURPOSE OF THE TECHNOLOGY AND/OR ANY END PRODUCTS PRODUCED FROM SAID TECHNOLOGY AND SHALL NOT BE HELD LIABLE FOR PROFITABILITY OF TECHNOLOGY AND/OR END PRODUCTS OR HELD LIABLE UNDER ANY OTHER THEORY OF LIABILITY.
  
 15) Insurance. For the period of time required to cover its obligations hereunder, each Party will maintain third party provided insurance in types and amounts customary for the type of business it conducts, and in any event reasonably adequate to cover any liabilities arising out of its obligations hereunder. Further, LICENSEE will maintain product liability insurance reasonably adequate to cover any liabilities arising out of the sale and distribution of End Products. Upon a Party’s request, the other Party will provide to the requesting Party a certificate of insurance showing that such insurance is in place, which certificate shall demonstrate the amounts, exclusions and deductibles of such insurance coverage. Each Party shall notify the other Party in writing no less than thirty (30) days prior to the cancellation, termination or modification of the insurance coverage(s) described in the notifying Party’s insurance certificate(s). Nothing in this section shall in any way be construed to limit the liability of a Party under this Agreement.
  
 16) Compliance with Laws. In connection with this Agreement, LICENSEE agrees to comply with all applicable laws, statutes and ordinances of any state, city, province, county or local governmental authority and each regulatory body with jurisdiction in which the LICENSEE sells End Products or sublicenses the Technology, that may be applicable to LICENSEE or any 3rd Party Sublicensee, its activities under this Agreement or the End Products.
  
 17) Conformance with Regulations. The Parties acknowledge and agree that this Agreement, and the licensing of the Technology, is neither intended to convey any ownership interest in LICENSEE to LICENSOR nor grant LICENSOR any control over LICENSEE. In the event that any government body indicates otherwise with regards to this Agreement or any portion thereof, then the Parties shall promptly negotiate in good faith for a period of forty-five (45) days to modify this Agreement in order to conform to any guidance proffered by that authority. In the event the Parties cannot reach an agreement within forty-five (45) days’ notice by any authorized government body that this Agreement must be reformed, this Agreement shall terminate pursuant to Section 4 above, and the Parties shall thereafter have no further obligation to each other hereunder.
  
 18) Employees; Agents; Representatives. Employees, agents and/or representatives, if any, of either Party, including LICENSEE’s Partner, who perform services for either Party pursuant to this Agreement shall also be bound by the provisions of this Agreement.
  
  	 
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 19) Relationship of Parties. The legal relationship of the Parties is exclusively that of licensor and licensee and no employer-employee, principal-agent, partnership, franchise, agency, joint venture or other legal relationship is created by this Agreement. Neither Party shall have the authority to enter into any contracts on behalf of the other Party.
  
 20) Successors; Assignment; Binding Agreement. Except as otherwise provided in this Agreement, LICENSEE may not assign or transfer its rights or delegate its obligations under this Agreement without LICENSOR’s prior written consent, provided that in the event that a Person acquires all of the issued and outstanding shares of LICENSEE, or all or substantially all of the assets of the LICENSEE, the LICENSEE shall be entitled to transfer all of its rights and obligations relating to this Agreement to such Person, and such Person is entitled to all of the rights and benefits of the LICENSEE under this Agreement solely with respect to LICENSEE branded End Products then being sold or produced by the LICENSEE. LICENSOR may freely assign this Agreement or any rights under this Agreement or delegate any duties under this Agreement without LICENSEE’s consent provided that the assignee agrees to assume all of LICENSOR’s obligations and liabilities hereunder. This Agreement inures to the benefit of, and shall be binding upon, the successors and assigns of the parties to this Agreement. This Agreement and all of its provisions and conditions are for the sole and exclusive benefit of the Parties and their respective successors and permitted assigns.
  
 21) Modifications and Waivers. This Agreement may be amended only by a written agreement signed by both Parties. With regard to any power, remedy or right provided in this Agreement, no waiver or extension of time shall be effective unless expressly contained in a writing signed by the waiving Party, no alteration, modification or impairment shall be implied by reason of any previous waiver, extension of time, delay or omission in exercise or other indulgence, and waiver by any Party of the time for performance of any act or condition hereunder does not constitute a waiver of the act or condition itself.
  
 22) Notice. Except as otherwise provided in this Agreement, notices required to be given pursuant to this Agreement shall be effective when received, and shall be sufficient if given in writing, hand-delivered, sent by facsimile with confirmation of receipt, sent by First Class Mail, return receipt requested (for all types of correspondence), postage prepaid, sent by email or some other form of telecommunication, or sent by overnight courier service and addressed as set forth below, or as amended by either Party, respectively, from time to time: 
  
 If to LICENSEE:
 Premier Wellness Science Co., Ltd.
  
 Toranomon Hills Mori Tower 8F
 Toranomon 1-23-1, Minato-ku
 Tokyo, Japan
 105-6308
  
 Att:  Shinji Hosoyama          
  
 shosoyama@p-wellnessscience.co.jp
  
  	 
	13
	

	 

 
  
 If to LICENSOR:
 Lexaria Hemp Corp.  
 #100-740 McCurdy Rd
 Kelowna, BC Canada V1X 2P7
 Attn: Chris Bunka
 cbunka@lexariabioscience.com
 Fax:  250-765-2599
  
 No objection may be made to the manner of delivery of any notice or other communication in writing actually received by a Party.
  
 23) Entire Agreement. This Agreement, including the attached exhibits, constitutes the entire agreement of the Parties hereto relating to the subject matter hereof and there are no written or oral terms or representations made by either Party other than those contained herein. 
  
 24) Publicity. Without the prior written consent of the other Party, neither Party shall disclose the terms and conditions of this Agreement, except disclosure may be made as is reasonably necessary to the disclosing Party’s bankers, attorneys, or accountants or except as may be required by law. The LICENSOR agrees not to use the LICENSEE’s corporate name or product names, in any form, in any press release or other publication, without permission from the LICENSEE, except as provided below. The Parties understand and agree that LICENSOR may be compelled by stock exchanges, securities commission regulators or other government authorities to publicly disclose the signing of said License Agreement naming both Parties. If LICENSOR is compelled by stock exchanges, securities commission regulators or other government authorities to publicly disclose the signing of said License Agreement, LICENSOR will share its planned announcement with LICENSEE beforehand for LICENSEE’s review and approval, not to be unreasonably withheld or delayed, and it will also ensure that no compromise of the LICENSEE’s existing secret processes or intellectual property, nor of LICENSEE’s personal or private information occurs through this announcement. 
  
 25) Expenses. Each Party to this Agreement shall bear all of its own expenses in connection with the execution, delivery and performance of this Agreement and the transactions contemplated hereby, including without limitation all fees and expenses of its agents, representatives, counsel and accountants.
  
 26) Governing Law; Jurisdiction. This Agreement will be governed by, and construed in accordance with the substantive laws of the Province of British Columbia, Canada without giving effect to any choice or conflict of law provision, except that questions affecting the construction and effect of any patent shall be determined by the law of the country in which the patent shall have been granted, the parties irrevocably attorn to the jurisdiction of the courts of the Province of British Columbia, Canada to resolve any disputes arising hereunder.
  
 27) Dispute Resolution. 
  
 a) Mandatory Procedures. The Parties agree that any dispute arising out of or relating to this Agreement shall be resolved solely by means of the procedures set forth in this section and that such procedures constitute legally binding obligations that are an essential provision of this Agreement. If either Party fails to observe the procedures of this section, as may be modified by their written agreement, the other Party may bring an action for specific performance of these procedures in any court in the Province of British Columbia, Canada.
  
  	 
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 b) Equitable Remedies. Although the procedures specified in this section are the sole and exclusive procedures for the resolution of disputes arising out of or relating to this Agreement, either Party may seek a preliminary injunction or other provisional equitable relief if, in its reasonable judgment, such action is necessary to avoid irreparable harm to itself or to preserve its rights under this Agreement. 
  
 c) Dispute Resolution Procedures. 
  
 i) Mediation. In the event any dispute arising out of or relating to this Agreement remains unresolved within sixty (60) days from the date the affected Party informed the other Party of such dispute, either Party may initiate mediation upon written notice to the other Party (“Notice Date”), the Parties shall be obligated to engage in a mediation proceeding under the then current Center for Public Resources (“CPR”) Model Procedure for Mediation of Business Disputes (www.cpradr.org), except that specific provisions of this Article shall override inconsistent provisions of the CPR Model Procedure. The mediator will be selected from the CPR Panels of Neutrals. If the Parties cannot agree upon the selection of a mediator within fifteen (15) business days after the Notice Date, then upon the request of either Party, the CPR shall appoint the mediator. The Parties shall attempt to resolve the dispute through mediation until the first of the following occurs: (i) the Parties reach a written settlement, (ii) the mediator notifies the Parties in writing that they have reached an impasse, (iii) the Parties agree in writing that they have reached an impasse, or (iv) the Parties have not reached a settlement within sixty (60) days after the Notice Date. 
  
 ii) Failure to Mediate. If the Parties fail to resolve the dispute through mediation, each Party shall have the right to pursue any other remedies legally available to resolve the dispute, including by way of arbitration or a suit. 
  
 d) Performance to Continue. Each Party shall continue to perform its undisputed obligations under this Agreement pending final resolution of any dispute arising out of or relating to this Agreement; provided, however, that a Party may suspend performance of its undisputed obligations during any period in which the other Party fails or refuses to perform its undisputed obligations. Nothing in this section is intended to relieve LICENSEE from its obligation to make undisputed payments pursuant to Section 5 of this Agreement. 
  
 28) Attorneys’ Fees. In the event of any dispute between the Parties arising out of this Agreement, the prevailing Party shall be entitled, in addition to any other rights and remedies it may have, to recover its reasonable attorneys’ fees and costs.
  
 29) No Interpretation Against Drafter. Each Party participated in the negotiation and drafting of this Agreement, assisted by such legal and tax counsel as it desired, and contributed to its revisions. Any ambiguities with respect to any provision of this Agreement will be construed fairly as to all Parties and not in favor of or against any Party. All pronouns and any variation thereof will be construed to refer to such gender and number as the identity of the subject may require. The terms “include” and “including” indicate examples of a predicate word or clause and not a limitation on that word or clause.
  
 30) Headings. The headings of sections are provided for convenience only and will not affect the construction or interpretation of this Agreement. 
  
  	 
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 31) Force Majeure. Neither Party shall be liable for any delay or failure to perform its obligations in this Agreement if such delay or failure to perform is due to any cause or condition reasonably beyond that Party’s control, including, but not limited to, acts of God, war, government intervention, riot, embargoes, acts of civil or military authorities, earthquakes, fire, flood, accident, strikes, inability to secure transportation, facilities, fuel, energy, labor or materials.
  
 32) Survival. In addition to LICENSEE’s obligation to pay LICENSOR all amounts due hereunder, the Parties obligations under this Agreement shall survive expiration or termination of the Agreement only as expressly provided herein.
  
 33) Invalidity. The invalidity or unenforceability of any term or terms of this Agreement shall not invalidate, make unenforceable or otherwise affect any other term of this Agreement which shall remain in full force and effect.
  
 34) Severability. If any terms or provisions of this Agreement shall be found to be illegal or unenforceable, notwithstanding, this Agreement shall remain in full force and effect and such terms or provisions shall be deemed stricken.
  
 35) Further Assurances. Upon a Party’s reasonable request, the other Party shall, at requester’s sole cost and expense, execute and deliver all further documents and instruments, and take all further acts, as are reasonably necessary to give full effect to this Agreement.
  
 36) Counterparts. The Parties may execute this Agreement in multiple counterparts, each of which will constitute an original and all of which, when taken together, will constitute one and the same agreement.
  
 IN WITNESS WHEREOF, the parties have executed this Agreement intending to be legally bound as of the date set forth above.
  
  	 “LICENSOR”
	  
	 “LICENSEE”
	  

	 LEXARIA HEMP CORP.
	  
	 PREMIER WELLNESS SCIENCE CO., LTD.
	  

	  
	  
	  
	  
	  
	  

	  
	  
	  
	  
	  
	  

	 By:
	 “John Docherty” 
	  
	 By:
	 “Shinji Hosoyama”
	  

	  
	 John Docherty, President
	  
	  
	 Shinji Hosoyama, CEO
	  

	  
	  
	  
	  
	  
	  

	 By:
	 “Chris Bunka”
	  
	 By:
	 “Hiro Takeuchi”
	  

	  
	 Chris Bunka, CEO
	  
	  
	 Hiro Takeuchi, Head of R & D
	  

 
  
  	 
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 EXHIBIT A - TECHNOLOGY
  
 The Technology consists of:
  
  	 (1) 
	all technical know-how and trade secrets in regard to the Licensor’s business and the use, manufacture or formulation of its patented technology;
	  
	  

	 (2)
	 the following patent applications, patents granted, and PCT International Patent Applications that are owned or controlled by LICENSOR as of the Effective Date of this Agreement, as well as any future continuations, continuations in part or divisional applications filed pursuant to the patent applications (the “Licensed Patents”):

 
  
 Granted Patents:
  
  	 Issued Patent #
	 Patent Certificate Grant Date
	 Patent Family

	 US 9,474,725 B1
	 10/25/2016
	 Food and Beverage Compositions Infused With Lipophilic Active Agents and Methods of Use Thereof
  

	 US 9,839,612 B2
	 12/12/2017

	 US 9,972,680 B2
	 05/15/2018

	 US 9,974,739 B2
	 05/22/2018

	 US 10,084,044 B2
	 09/25/2018

	 US 10,103,225 B2
	 10/16/2018

	 US 10,381,440
	 08/13/2019

	 US 10,374,036
	 08/06/2019

	 US 10,756,180
	 08/25/2020

	 AU 2015274698
	 06/15/2017

	 AU 2017203054
	 08/30/2018

	 AU 2018202562
	 08/30/2018

	 AU 2018202583
	 08/30/2018

	 AU 2018202584
	 01/10/2019

	 AU 2018220067
	 07/30/2019

	 EP 3164141
	 11/11/2020

	 JP 6920197
	 07/28/2021

	 AU 2016367036
	 07/30/2019
	 Methods for Formulating Orally Ingestible Compositions Comprising Lipophilic Active Agents

	 JP 6963507
	 10/19/2021

	 MX 388 203 B
	 11/26/2021

	 AU 2016367037
	 08/15/2019
	 Stable Ready-to-Drink Beverage Compositions Comprising Lipophilic Active Agents

	 IN 365864
	 04/30/2021

	 JP 6917310
	 07/21/2021

	 AU 2019256805
	 03/03/2022
	 Compositions Infused with Nicotine Compounds and Methods of Use Thereof

	 US 11,311,554
	 04/26/2022
	 Compositions and Methods for Enhanced Delivery of Antiviral Agents

 
  
 Multiple Pending Patents:
  
 US, Australia, Canada, The European Union, China, Japan, Mexico, and India
  
  	 
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 EXHIBIT B: END PRODUCT CATEGORIES
  
  	 Product Line Name
	 Product Line Description
 Specifically EXCLUDED from all Product Categories is any/all right to produce, package or sell any product that has been expressly prohibited under 1 c) of the Agreement
  

	 Consumable Non-Liquid Products
  
	 Any product that can be produced in a solid oral format, including, but not limited to capsules, oral lozenges, food and candies; for further clarity, this product category includes powder or tablet products that are to be diluted into a liquid. 

	 Consumable Liquids Products
	 Any READY TO CONSUME liquid products for consumption by way of ingestion.

	 Topical Skin Products 
	 Any cream, oil, salve, gel, lotion, lip care preparation, cosmetic product, bath product, hair care product or similar consumer product designed to be delivered to and through human skin.

 
  
  	 
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 EXHIBIT C
  
 LICENSE FEE
  
 Upon execution of this Agreement, LICENSEE shall pay to LICENSOR the License Fee as set forth below. The License Fee shall be paid in accordance with Section 5 of this Agreement.
  
 (a) Territory Exclusivity License Fee. LICENSEE agrees to pay to LICENSOR an annual license fee of US$[**] per year commencing on the first anniversary of the Effective Date of the Agreement and payable in quarterly installments of US$[**] due net 30 days after said quarter with the first quarter commencing on September 1, 2023 and the first Territory Exclusivity License Fee payable net 30 days of November 30, 2023. for access to use the Technology everywhere in the Territory (“Territory License Fee”). The Territory License Fee may be waived, at the sole discretion of the LICENSOR, on or after the sixth anniversary of the Effective Date, provided that the LICENSEE, during the fifth year of this Agreement has consistently maintained a market share for its End Products equal to nine percent (9%) of the aggregate market share in the Territory for similar products.
  
 (b) Usage Fee. For all End Products sold in the Territory AFTER the first anniversary of the Effective Date, LICENSEE agrees to pay quarterly to LICENSOR a usage fee (the “Usage License Fee”) commencing on the first anniversary of the Effective Date and continuing during the life of the Agreement equal to [**]% any earned annual gross Revenues under US$5,000,000 and [**1]% of any earned annual gross Revenues of US$5,000,000 or more from the sale of End Products, all as further defined in Exhibit D. LICENSEE agrees to pay the Usage License Fee for each product sold utilizing the Technology with each quarterly payment due net 30 days after said quarter with the first quarter commencing on September 1, 2023 and the first Usage License Fee payable net 30 days of November 30, 2023.
  
 (c) Audit Rights. Upon at least thirty (30) days’ written notice, LICENSOR shall have the right, through an independent, certified accounting firm, to examine such records and books of account of LICENSEE as are necessary to verify the accuracy of the Usage License Fee and other payments of LICENSEE under this Agreement. Such right may be exercised only once during any twelve (12) month period. Such examination may be performed during normal business hours at LICENSEE’s major place of business or at such other place as may be agreed upon by the LICENSOR and LICENSEE. The accounting firm may make abstracts or copies of such books of account solely for its use in performing the examination. LICENSOR will require, prior to any such examination, such accounting firm to agree in writing that such firm will maintain all information, abstracts, and copies acquired during such examination in strict confidence and will not make any use of such material other than to confirm to LICENSOR the accuracy of LICENSEE payments hereunder. If an inspection of LICENSEE’s records by the accountant of LICENSOR shows that LICENSEE has paid more than required under this Agreement, any excess amounts will, at LICENSEE’s option, be promptly refunded or credited against future Usage License Fees. If an inspection of LICENSEE’s records by the accountant of LICENSOR shows that LICENSEE shows an under-reporting or underpayment by LICENSEE of any amount to LICENSOR, by more than one percent (1%) and less than five percent (5%) for any twelve (12) month period, any excess amounts will, at LICENSOR’s option, be promptly paid or debited against future Usage License Fees. However, if an inspection of LICENSEE’s records shows an under-reporting or underpayment by LICENSEE of any amount to LICENSOR, by more than five percent (5%) for any twelve (12) month period, then LICENSEE will reimburse LICENSOR for the reasonable cost of the inspection as well as pay to LICENSOR any amount found due within thirty (30) days of receipt of the results of such inspection.
 ____________________________
 1 [**] this information has been redacted as it contains commercially sensitive information relating to royalties and fees.
  
  	 
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 (d) Minimum Performance: LICENSEE agrees to a minimum sales performance clause. LICENSEE shall pay a minimum fee of US$16,875 per quarter until the first anniversary of the Effective Date, US$60,000 per quarter until the second anniversary of the Effective Date, US$150,000 per quarter until the third anniversary of the Effective Date and thereafter until the completion of the Renegotiation Period, US$332,500 per quarter (the “Minimum Fee”) to LICENSOR quarterly in arrears and net 30 days, even if LICENSOR has not caused to be manufactured sufficient End Products that quarter to justify the Usage License Fee. This Minimum Fee is non-refundable and the first Minimum Fee shall be payable for the quarter commencing on September 1, 2022 and ending on November 30, 2022. If the Usage License Fee totals more than this Minimum Fee in any given quarter AFTER the first anniversary of the Effective Date, then this Minimum Fee is waived for that quarter. Usage License Fees in excess of the Minimum Fee do not accrue for use in subsequent quarters.
  
 (e) Fee Adjustment: the Fee Adjustment to be negotiated during the Renegotiation Period of this perpetual license shall be negotiated on mutually agreeable terms and on a best efforts basis. The competitive performance of the LICENSEE in the national Japanese marketplace will be the primary determinant of Fee Adjustment details, such that if market share penetration is high, Minimum Performance fees and/or Territory Exclusivity License Fees may be waived by the LICENSOR but are likely to be preserved or increased if LICENSEE is not achieving expected market share penetration. If the Parties are unable to reach agreement on the Fee Adjustment, then all existing terms of this Agreement will remain in place.
  
 (f) Trademark License: the LICENSEE shall be issued a license for the use of the POWERED BY LEXARIA BIOSCIENCE word trademark and the associated pinwheel & leaf design trademark to be placed on the End Products, in the following manner, in a type size large enough to be readable by Persons with average vision:
  
  
  
  
 The LICENSEE may also use, in addition to the above-noted trademarks, the LICENSOR’s word marks:
  
 DehydraTECH
 Powered by DehydraTECH
  
 And the Licensor’s design mark:
  
  
  	 
	20
	

	 

 
  
 The LICENSEE shall not be permitted to make any variations to the LICENSOR’s trademarks, except as approved by LICENSOR. The LICENSEE agrees that all right, title and interest in and to any intellectual property resulting from the LICENSEE’s variations to the LICENSOR’s trademarks shall be assigned to the LICENSOR.
  
 Additionally, LICENSEE shall have the right to access any experimental trial findings made by Lexaria Bioscience Corp., including any follow-on studies to its 2018 randomized, placebo-controlled, double-blinded European human clinical study regarding the effectiveness of the Technology on CBD absorption rates and associated cardiovascular benefits as published in the peer reviewed medical journal Advances in Therapy the (“Clinical Studies”). HOWEVER, NO RIGHT IS GIVEN FOR THE LICENSEE TO REFERENCE, CITE OR REPRODUCE THE CLINICAL STUDIES WITHOUT THE EXPRESS WRITTEN CONSENT OF THE LICENSOR OR LEXARIA BIOSCIENCE CORP.
  
 (g) Tax Adjustments: LICENSEE and LICENSOR acknowledge that all fees payable pursuant to this Agreement, including, as applicable, the Territory License Fee, Usage License Fee, Termination Fee and Minimum Fee, may be subject to adjustment, as required, for the purposes of withholding any applicable taxes by the LICENSEE and/or repayment to the LICENSOR of any applicable taxes as required pursuant to any municipal, state, provincial or federal legislation.
  
  	 
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 EXHIBIT D
  
 CERTAIN DEFINITIONS
  
 “3rd Party Sublicensee” means any party operating within the Territory who the LICENSEE wishes to issue a sublicense to the Technology for the purposes of such party creating, manufacturing and selling End Products under its own brand.
  
 “Partner” means any Person who either directly resells LICENSEE’S products or manufactures products based on LICENSEE’s technology under the direction of the LICENSEE or a Related Entity and whose use of the Technology pursuant to a sublicense will be strictly for facilitating the LICENSEE’s rights and obligations under the Agreement.
  
 “Person” means any natural person, sole proprietorship, partnership, corporation, trust, joint venture, any governmental authority or any incorporated or unincorporated entity or association of any nature;
  
 “Related Entity” means, with respect to a body corporate: (i) a Subsidiary of the body corporate, including a Subsidiary of a Subsidiary of the body corporate; or (ii) a Person that controls, directly or indirectly, the body corporate; or (ii) a Person that is controlled by the same Person that controls such body corporate;
  
 “Revenues” means the gross revenue received by the LICENSEE from the sale, barter or trade of all End Products shipped to customers net of sales or value added taxes but specifically excluding income taxes; or the revenues received from any 3rd Party Sublicensee of the LICENSEE. 
  
 EXAMPLE ONLY:
  
 “US$4.99 plus taxes”
  
 LICENSOR 4% of Revenues US$0.20
  
 “Subsidiary” means a corporation that is controlled directly or indirectly by another corporation
  
 “Territory” means Japan
  
  	 
	22
	

	 

 
  
 EXHIBIT E
  
 PARTNER OBLIGATIONS FORM
  
 <<< Insert Name >>> (the “PARTNER”) agrees in writing to all obligations of Premier Wellness Science Co., Ltd. (the “LICENSEE”) as listed hereunder, including those relating to confidentiality and non-use regarding Confidential Information of both LICENSEE and LEXARIA HEMP CORP.(the “LICENSOR”). The PARTNER is prohibited from utilizing the formulation methodologies, techniques, specified ingredients therewith and processes accompanying this agreement and/or listed in Exhibit A of the Intellectual Property License Agreement effected between the LICENSEE and the LICENSOR, (together or individually, the “Technology”) in any form whatever that is not directly related to the production/sale of the specified LICENSEE’s End Products or in connection with their own End Products as a sublicensee of the LICENSEE, and may not use the Technology for any other purpose unless authorized in writing from the LICENSOR, in advance.
  
 1. LICENSOR retains full, absolute, and complete rights to all processes covered or described in all of its issued patents and its patent applications filed prior to the date of this Agreement, and any future continuations, continuations in part or divisional applications filed thereto, including but not limited to the US Provisional patent applications, US Utility patent application, and the International patent application, that comprise the Technology (“Licensor IP”), unless LICENSOR allows these applications to abandon or lapse, or otherwise fails to protect the Technology. Except as expressly provided for herein, nothing in this Agreement or in the conduct of the LICENSEE or LICENSOR shall be interpreted as preventing LICENSOR from granting to any other person a license for use of the Technology or from using the Technology in any manner whatsoever.
  
 2. Any intellectual property resulting solely from LICENSEE’s work, know-how, or development that does not include nor rely upon the Technology, Licensor IP or jointly owned intellectual property, as described in this Agreement, shall be owned by LICENSEE (“Licensee IP”).
  
 3. LICENSOR Improvements: The entire right and title to the Technology, whether or not patentable, and any patent applications or patents based thereon, which directly relate to and are not severable from Licensor IP and which are improvements thereto by LICENSOR, its employees or others acting solely on LICENSOR’s behalf shall be owned solely by LICENSOR (“Licensor Improvements”).
  
 4. LICENSEE Improvements: Rights and title to improvements whether or not patentable, and any patent applications or patents based thereon, which directly relate to and are not severable from Licensor IP and which are improvements thereto by LICENSEE, its employees or its PARTNER, as defined by this Agreement, shall be owned by the LICENSEE (“Licensee Improvements”). In respect to such Licensee Improvements, LICENSOR grants LICENSEE a license to use the underlying intellectual property supporting any such improvement for so long as this Agreement remains in effect (including any renewal terms) and LICENSOR agrees to negotiate in good faith terms of license renewal after the end of the Term of this Agreement and any renewal terms. If LICENSEE develops any Licensee Improvements, LICENSEE will promptly provide LICENSOR with written notice of such Licensee Improvements to validate LICENSEE’S claim to Licensee Improvements.
  
  	 
	23
	

	 

 
  
 5. Joint Improvements: Rights and title to the Technology, whether or not patentable, and any patent applications or patents based thereon, which directly relate to and are not severable from Licensor IP and which are improvements thereto by both LICENSOR and LICENSEE shall be jointly owned intellectual property by LICENSOR and LICENSEE.
  
 6. Improvements Assignment. LICENSEE and LICENSOR hereby represent that all PARTNERs, employees and other persons acting on its behalf in performing its obligations under this Agreement shall be obligated under a binding written agreement to assign, or as it shall direct, all Joint Improvements that include or rely on the Technology conceived or reduced to practice by such PARTNERs, employees or other persons acting on its behalf in accordance with this Agreement to the benefit of LICENSOR and LICENSEE.
  
 7. Improvements Confidential Information. All Improvements shall constitute Confidential Information and shall be subject to the confidentiality provisions set forth in this Agreement.
  
 8. Upon making any invention that does not include or rely upon the Technology neither the LICENSOR nor the LICENSEE (in either such case the “Inventor”) will have any obligation to share such information of the invention with the other Party or inform the other Party of said invention, and the Inventor retains unrestricted rights and ability to use, assign, license, seek patent and other forms of intellectual property protection related to said invention. For the avoidance of doubt, any such new invention, development, technology, and/or intellectual property belongs solely to the Inventor.
  
 9. If any patent applications are filed seeking to protect any Joint Improvements (“Jointly Owned IP”), each of LICENSEE and LICENSOR shall be named as joint inventors.
  
 10. Jointly Owned IP Rights. LICENSOR grants to LICENSEE an exclusive, non-sub-licensable, fully-paid, royalty-free, perpetual license to any Jointly Owned IP. Further, LICENSEE grants to LICENSOR an exclusive, non-sub-licensable, fully-paid, royalty-free, perpetual license to any Jointly Owned IP.
  
 11. LICENSEE agrees to maintain and preserve the quality of the Technology, and to use the Technology in good faith and in a manner consistent with the uses approved herein. LICENSEE shall (a) ensure that all End Products and related materials under the Technology are developed, tested, promoted, manufactured and distributed in a professional manner in compliance with all generally accepted industry standards, and (b) comply in all material respects with any and all laws, rules and regulations that are applicable to the development, testing, promotion, manufacture and distribution of the End Products and such related materials.
  
  	 
	24
	

	 

 
  
 12. At all times during the term of this Agreement (including any renewal term) and thereafter, each Party undertakes not use or disclose and to otherwise keep confidential, any trade secrets or proprietary information, including, but not limited to the Technology and other intellectual property of the other Party (in each instance, the “Confidential Information”) except to the extent required to perform each Party’s respective obligations under this Agreement. Without limitation of the foregoing, each Party will hold the other Party’s Confidential Information in confidence and will (a) exercise the same degree of care, but no less than a reasonable degree of care, to prevent its disclosure as such Party would take to safeguard its own confidential or proprietary information, and (b) limit disclosure of the Confidential Information, including any notes, extracts, analyses or materials that would disclose the Confidential Information, solely to those of its employees who need to know the information for purposes of performing the respective Party’s obligations under this Agreement and who agree to keep such information confidential. Upon termination of this Agreement, each Party shall immediately return all Confidential Information to the other Party and further the LICENSOR shall have the right to conduct an on-site audit of the LICENSEE within three (3) business days of termination to ensure compliance with the terms of this Agreement, at LICENSOR’s expense.
  
 13. This section does not apply to any information that: (a) is already lawfully in the receiving Party’s possession (unless received pursuant to a nondisclosure agreement); (b) is or becomes generally available to the public through no fault of the receiving Party; (c) is disclosed to the receiving Party by a third party who may transfer or disclose such information without restriction; (d) is required to be disclosed by the receiving Party as a matter of law (provided that the receiving Party will use all reasonable efforts to provide the disclosing Party with prior notice of such disclosure and to obtain a protective order therefor, with all costs to be borne by the disclosing Party); (e) is disclosed by the receiving Party with the disclosing Party’s approval; or (f) is independently developed by the receiving Party without any use of confidential information. In all cases, the receiving Party will use all reasonable efforts to give the disclosing Party ten (10) days’ prior written notice of any disclosure of information under this Agreement. The Parties will maintain the confidentiality of all confidential and proprietary information learned pursuant to this Agreement for a period of ten (10) years from the date of termination of this Agreement
  
 14. Employees, agents and/or representatives, if any, of either party, including LICENSEE’s PARTNER, who perform services for either party pursuant to this Agreement shall also be bound by the provisions of this Agreement.
  
 IN WITNESS WHEREOF, the parties hereto have executed this agreement intending to be legally bound as of ______________________ ________, ______.
  
  	 “LICENSEE”
	  
	  

	 PREMIER WELLNESS SCIENCE CO., LTD.
	  
	  

	  
	  
	  
	  

	 By:
	  
	  
	  

	  
	 Shinji Hosoyama
	  
	  

	  
	  
	  
	  

	 “LICENSOR”
	  
	  

	 LEXARIA HEMP CORP.
	  
	  

	  
	  
	  
	  

	 By: 
	  
	  
	  

	  
	 <<< Insert Signatory Name >>>
	  
	  

	  
	  
	  
	  

	 “PARTNER”
	  
	  

	 <<< Insert Name >>>
	  
	  

	  
	  
	  
	  

	 By: 
	  
	  
	  

	  
	 <<< Insert Signatory Name >>>
	  
	  

 
      
  	 
	25Exhibit 10.1

 

 

EMPLOYMENT AGREEMENT

 

EMPLOYMENT AGREEMENT
(this “Agreement”), dated as of July 14, 2022, between Agrify Corporation (the “Company”) and Stuart
Wilcox (“Executive,” together with the Company, the “Parties” and, each, a “Party”).

 

WHEREAS, the Company
desires to employ Executive, and Executive desires to accept such employment, on the terms and conditions set forth in this Agreement;

 

NOW, THEREFORE,
on the basis of the foregoing premises and in consideration of the mutual covenants and agreements contained herein, the Parties agree
as follows:

 

1. Employment;
Title; Duties and Location. The Company hereby agrees to employ Executive, and Executive hereby accepts employment with the Company,
on the terms and subject to the conditions set forth herein. During the Employment Period (as defined in Section 2 below), Executive shall
serve the Company as Chief Operating Officer and shall report exclusively and directly to the to the Chief Executive Officer of the Company.
Executive shall perform the duties consistent with Executive’s title and position and such other duties commensurate with such position
and title as shall be specified or designated by the Company from time to time.

 

 2.  Term.

 

2.1 Term.
Executive’s employment hereunder shall commence on July 14, 2022 (the “Commencement Date”) and shall continue
for a one-year period thereafter (the “Initial Term”), subject to earlier termination exclusively as provided for in
Section 6 below, and subject to extension as provided in the following sentence. Following the Initial Term, provided Executive’s
employment has not previously been terminated, Executive’s employment hereunder shall automatically be extended for successive one-year
periods (each a “Renewal Term”), subject to earlier termination exclusively as provided for in Section 6 below. For
the purposes of this Agreement, the “Term” at any given time shall mean the Initial Term as it may have been extended
by one or more Renewal Terms as of such time (without regard to whether Executive’s employment is terminated prior to the end of
such Term), and the “Employment Period” means the period of Executive’s employment hereunder (regardless of whether
such period ends prior to the end of the Term and regardless of the reason for Executive’s termination of employment hereunder).

 

3. Compensation.
During the Employment Period only (unless otherwise expressly provided for herein), Executive shall be entitled to the following compensation
and benefits.

 

 3.1 Salary.
Executive shall receive a base salary (the “Base Salary”) payable in substantially equal installments in accordance
with the Company’s normal payroll practices and procedures in effect from time to time and subject to applicable withholdings and
deductions. Executive’s starting Base Salary shall be at the annual rate of $300,000.

 

 3.2 Discretionary
Bonus. Executive shall be eligible to receive a discretionary performance-based bonus of up to $300,000 (a
“Discretionary Bonus”) with respect to each fiscal year of the Company (a “Fiscal Year”) based
on the mutually agreed upon goals that will be set by the Company Chief Executive Officer and the Board of Directors Compensation
Committee. The goals will be realistic and attainable and shall be mutually agreed to by the Executive. Based on achieving the
agreed upon goals, the targeted annual cash bonus shall be paid in quarterly installments of $75,000 scheduled in conjunction with
the any other company quarterly bonus payments. Such bonus payments will be paid no later than 60 days from the close of the quarter
to which the bonus is applicable. The Directors may from time to time elect to pay any additional bonuses based on performance that
exceeds the mutually agreed upon goals. To be eligible for a Discretionary Bonus, Executive must be employed by the Company at the
time such Bonus is paid.

 

     

     

    

 

 3.3 Annual
Compensation Review and Adjustment. The Company agrees that by February 1st of every calendar year, the Board of Directors of the
Company (the “Board”) and the Compensation Committee of the Board (the “Compensation Committee”)
shall have reviewed and adjusted the compensation of Executive based on the results of a report of an independent compensation consultant
to be engaged by the Board or the Compensation Committee, at the Company’s sole expense. The results of such report shall take into
account a number of factors the consultant deems relevant, including but not limited to an analysis of at least three chief financial
officers of other comparable publicly held companies of similar size, similar markets, and who perform their duties in the same geographical
location that Executive performs his duties.

 

 3.4 Restricted
Stock Units. Subject to the terms of the Company’s 2022 Omnibus Equity Incentive Plan (the “Plan”), Executive
shall be issued promptly following the Commencement Date 200,000 restricted stock units pursuant to the Plan. In addition, the Compensation
Committee shall grant additional restricted stock units (such number to be determined in the sole discretion of the Compensation Committee
taking into account input from the Company’s Chief Executive Officer) to Executive for each fiscal year during the Employment Period.

 

 3.5 Benefits.
Executive shall have the right to receive or participate in all employee benefit programs and perquisites established from time to time
by the Company on a basis that is no less favorable than such programs and perquisites are provided by the Company to the Company’s
other senior executives, subject to the eligibility requirements and other terms of such programs and perquisites, and subject to the
Company’s right to amend, terminate or take other action with respect to any such programs and perquisites. Notwithstanding the
foregoing, the Board shall have the authority to provide benefits to the Executive in his capacity as Chief Operating Officer that may
not be made available to other senior executives of the Company.

 

 3.6 Vacation
and Other Paid Time Off. Executive shall be entitled to four (4) weeks of paid vacation, as well as sick days and any other paid time
off, each year in accordance with then current Company policy.

 

 3.7 Required
Taxes and Withholdings. The Company shall withhold from any payments made to Executive (including, without limitation, those made
under this Agreement) all federal, state, local or other taxes and withholdings as shall be required pursuant to any law or governmental
regulation or ruling.

 

4. Exclusivity
and Best Efforts. During the Employment Period, Executive shall (i) in all respects conform to and comply with the lawful directions
and instructions given to Executive by the Company; (ii) subject to the proviso below, devote Executive’s entire business time,
energy and skill to Executive’s services under this Agreement; (iii) use Executive’s best efforts to promote and serve the
interests of the Company and to perform Executive’s duties and obligations hereunder in a diligent, trustworthy, businesslike, efficient
and lawful manner; (iv) comply with all applicable laws and regulations, as well as the policies and practices established by the Company
from time to time and made applicable to its employees generally or senior executives; (v) not engage in any other business, profession
or occupation for compensation or otherwise, except as provided below in this Section 4; and (vi) not engage in any activity that,
directly or indirectly, impairs or conflicts with the performance of Executive’s obligations and duties to the Company, provided,
however, that the foregoing shall not prevent the Executive from managing Executive’s personal affairs and passive personal investments,
serving on the board of directors (or comparable body) of any third-party corporate entity that is not providing Competing Services (as
defined in Section 10.3(f) below) and Executive obtains prior Company consent (which consent will not be unreasonably withheld), and participating
in charitable, civic, educational, professional or community affairs, so long as, in the aggregate, any such activities do not unreasonably
interfere or conflict with the Executive’s duties hereunder or create a potential business or fiduciary conflict with the Company,
as reasonably determined by the Company.

 

    2

     

    

 

5. Reimbursement
for Expenses. Executive is authorized to incur reasonable expenses in the discharge of the services to be performed hereunder in accordance
with the Company’s expense reimbursement policies, as the same may be modified by the Company from time to time in its sole and
complete discretion (the “Reimbursement Policies”). Subject to the provisions of Section 18.2 below (Section 409A Compliance),
the Company shall reimburse Executive for all such proper expenses upon presentation by Executive of itemized accounts of such expenditures
in accordance with the terms of the Reimbursement Policies.

 

 6.  Termination.

 

 6.1 Death.
Executive’s employment shall immediately and automatically be terminated upon Executive’s death.

 

 6.2 Disability.
The Company may, subject to applicable law, terminate Executive’s employment due to a Disability by providing written notice of
such termination and its effective date to Executive. For purposes of this Agreement, “Disability” means a “disability”
that entitles Executive to benefits under the applicable Company long-term disability plan covering Executive and, in the absence of such
a plan, that Executive shall have been unable, due to physical or mental incapacity, to substantially perform Executive’s duties
and responsibilities hereunder for 180 days out of any 365-day period or for 120 consecutive days. In the event of any question as to
the existence, extent, or potentiality of Executive’s Disability upon which the Company and Executive cannot agree, such question
shall be resolved by a qualified, independent physician mutually agreed to by the Company and Executive, the cost of such examination
to be paid by the Company. If the Company and Executive are unable to agree on the selection of such an independent physician, each shall
appoint a physician and those two physicians shall select a third physician who shall make the determination of whether Executive has
a Disability. The written medical opinion of such physician shall be conclusive and binding upon each of the Parties as to whether a Disability
exists and the date when such Disability arose. This section shall be interpreted and applied so as to comply with the provisions of the
Americans with Disabilities Act (to the extent applicable) and any applicable state or local laws. Until such termination, Executive

shall continue to receive his compensation and benefits hereunder,
reduced by any benefits payable to him under any Company-provided disability insurance policy or plan applicable to him.

 

  6.3 For Cause by the Company.

 

(a) The
Company may terminate Executive’s employment for Cause, at any time, upon the unanimous agreement of the Board (excluding the Executive)
and written notice reasonably describing the nature of such Cause. For purposes of this Agreement, the term “Cause”
means (i) the willful and continual failure by Executive to perform in any material respect the duties or obligations of his employment
with the Company or to carry out the reasonable and lawful directives of the Board (which directives are consistent with Executive’s position);
provided such failure remains uncured (if capable of being cured) for a period of sixty (60) days after written notice describing
the same is given to Executive; (ii) Executive’s indictment for any crime which constitutes a felony or indictment for any crime involving
fraud, misappropriation or embezzlement (other than any such crime involving the Company or any of its affiliates); (iii) any act of fraud,
misappropriation or embezzlement involving the Company or any of its affiliates; (iv) any breach by Executive of the provisions of his
Confidentiality Agreement (as defined below) or a material breach or violation of this Agreement or any Company policy then in effect
which remains uncured (if capable of being cured) for a period of sixty (60) days after written notice describing the same is given to
Executive; or (v) any attempt by the Executive to improperly secure any personal profit in connection with the business of the Company
or any of its affiliates.

 

    3

     

    

 

 6.4 Resignation
by Executive for Good Reason. Executive may resign Executive’s employment hereunder for Good Reason, at any time, provided
that Executive provides the Company with ten (10) days’ prior written notice of such resignation and such notice is given
within thirty (30) days of when Good Reason first arises. For the purpose of this Agreement, “Good Reason” means
(i) a material and substantial diminution in Executive’s duties, authority, or responsibilities that would be inconsistent
with Executive’s position (other than while Executive is temporarily physically or mentally incapacitated, as permitted under
Section 6.2 above or as required by applicable law), (ii) a material failure by the Company to pay Executive’s compensation as
provided for herein, other than an isolated, insubstantial and inadvertent failure not occurring in bad faith; (iii) a change in the
location of Executive’s principal place of performance from other than that specified in Section 1 above; (iv) the failure by
the Company to conduct an annual compensation review and adjustment in accordance with Section 3.3 above; or (v) other material
breach by the Company of a material provision of this Agreement or any other agreement between the Company and Executive; provided
(x) Executive has provided the Company with written notice reasonably detailing the grounds giving rise to Good Reason within thirty
(30) days of the occurrence thereof or, if later, within thirty (30) days of the date upon which Executive first becomes aware of
such grounds, and (y) the Company fails to cure such grounds within thirty (30) days after delivery to it of such written notice.
Executive’s date of termination in the event Executive resigns his employment for Good Reason shall be the effective date of
Executive’s notice of resignation for Good Reason, except that Company may waive all or any part of the above-referenced
10-day notice period or of the 30-day cure period, in which event Executive’s date of termination shall be the last day of
such notice or cure period that has not been waived or, if the entire notice or cure period has been waived, the date that Executive
provided notice of the event giving rise to Good Reason or of his resignation for Good Reason. For the avoidance of doubt,
Executive’s exclusive remedy against the Company in the event the Company materially breaches this Agreement is to invoke the
provisions of this Section 6.4 and Section 7 below.

 

 6.5 Without
Cause or Without Good Reason. The Company may terminate Executive’s employment, without Cause, at any time, with or without
prior notice, in its sole and complete discretion, by providing written notice of such termination and its effective date to Executive.
Likewise, Executive may terminate Executive’s employment without Good Reason upon at least thirty (30) days prior written notice
to the Company without any liability. Termination of Executive’s employment without Cause by the Company or without Good Reason
by Executive shall not include termination of Executive’s employment due to Executive’s death or Disability or upon expiration
of the Term as provided for in Section 2.1 above.

 

 6.6 Resignation
from Other Positions. Upon termination of Executive’s employment for any reason, Executive shall, upon request of the Company,
immediately be deemed to have resigned from all boards, offices and appointments held by Executive in or on behalf of the Company. In
furtherance hereof, upon Executive’s termination of employment, Executive, at the direction of the Board, shall immediately submit
to the Company letter(s) of resignation for any such boards, offices and appointments. If Executive fails to tender such letter(s) of
resignation, then the governing body or person with respect to such boards, offices and appointments will be empowered to remove Executive
from such boards, offices, and appointments.

 

    4

     

    

 

 7.  Effect of Termination of Employment.

 

 7.1 Generally.
In the event Executive’s employment with the Company terminates, Executive shall have no right to receive any compensation, benefits
or any other payments or remuneration of any kind from the Company, except as otherwise provided by this Section 7, in Section 13 below,
in any separate written agreement between Executive and the Company or as may be required by law. In the event Executive’s employment
with the Company is terminated for any reason, Executive shall receive the following (collectively, the “Accrued Obligations”):
(i) Executive’s Base Salary through and including the effective date of Executive’s termination of employment (the “Termination
Date”), which shall be paid on the first regularly scheduled payroll date of the Company following the Termination Date or on
or before any earlier date as required by applicable law; (ii) payment for accrued unused vacation time, subject to the Company’s
then current vacation policy, which shall also be paid on the first regularly scheduled payroll date of the Company following the Termination
Date or on or before any earlier date as required by applicable law; (iii) payment of any vested benefit due and owing under any employee
benefit plan, policy or program pursuant to the terms of such plan, policy or program; and (iv) payment for unreimbursed business expenses
subject to, and in accordance with, the terms of Section 5 above, which payment shall be made within 30 days after Executive submits the
applicable supporting documentation to the Company, and in any event no later than on or before the last day of Executive’s taxable
year following the year in which the expense was incurred.

 

 7.2 Severance
Benefits. In the event that Executive’s employment is terminated (i) by the Company pursuant to Section 6.5 above (without
Cause), (ii) by Executive pursuant to Section 6.4 hereof (Good Reason), or (iii) by the Company without Cause, or by Executive for
Good Reason, upon the occurrence of, or within thirty (30) days prior to, or within six (6) months following, the effective date of
a Change of Control (as defined in Section 10.3(f) below), in addition to the Accrued Obligations, Executive shall be entitled to
receive severance benefits (the “Severance Benefits”), subject to and in accordance with the terms of this
Section 7.2.

 

(a) Benefits.
The Severance Benefits shall consist of the payments and benefits provided by this Section 7.2(a).

 

(i) Executive
shall receive payment of an amount (the “Severance Pay”) equal to one hundred percent (100%) of Executive’s Base
Salary immediately prior to the Termination Date (or, if Good Reason was attributable to the Company’s failure to pay the minimum
amount of Base Salary provided herein, such minimum amount) and Executive’s projected bonus for such fiscal year, payable from the
day after the Termination Date through the last day of the Term (the “Severance Period”). In addition, if the Company
terminates Executive’s employment without Cause, or if Executive resigns for Good Reason, upon the occurrence of, or within thirty
(30) days prior to, or within six (6) months following, the effective date of a Change of Control, all issued but unvested options or
restricted stock units shall immediately vest. The Severance Pay shall be paid in the form of salary continuation pursuant to the terms
and conditions of Section 3.1 above, commencing within ninety (90) days following the Termination Date on the first regularly scheduled
payroll date of the Company that is practicable after the effective date of the Separation Agreement (defined in Section 7.2(b) below),
except that, if the Separation Agreement may be executed and/or revoked in a calendar year following the calendar year in which
the Termination Date occurs, the Severance Pay shall commence on the first regularly scheduled payroll date of the Company in the calendar
year in which the consideration or, if applicable, release revocation period ends to the extent necessary to comply with Section 409A
(as defined in Section 18.2 below). The first such payment shall include payment for any payroll dates between the Termination Date and
the date of such payment.

 

(ii) For
a period time from the Termination Date until August 31, 2025 or until such time, if any, as Executive is eligible for group health, dental
and vision insurance benefits from another employer, Executive and Executive’s spouse shall be eligible to continue to participate
in the Company’s group health, dental and vision insurance benefits on the same terms and conditions as then applicable to current
employees and their spouses, except that, if Executive or his spouse is not permitted to continue to participate in any such health
insurance plans for any portion of the Severance Period as a result of the terms of such plans or applicable law and Executive elects
to continue his or his dependents’ health insurance benefits pursuant to COBRA, the Company will pay or reimburse Executive for
the portion of the COBRA premium that is equal to the insurance premium the Company would pay if Executive was then an active employee
of the Company. Following the Severance Period, should Executive elect to continue his or his dependents’ health insurance benefits,
Executive shall be responsible for the entire cost thereof. If the Company is unable to provide the benefit provided above in this paragraph
without violating applicable health care discrimination laws, the Company shall pay Executive a gross amount equal to what the Company’s
cost would have been to provide such benefit.

 

(iii) Notwithstanding
the foregoing, the aggregate amount described in this Section 7.2(a) shall be reduced by the present value of any other cash
severance or termination benefits payable to Executive under any other plans, programs, or arrangement of the Company, subject to
compliance with Section 409A. (iv) For the avoidance of doubt, Executive’s sole and
exclusive remedy upon a termination for which Executive is eligible for Severance Benefits under this Section 7.2 shall be the
receipt of the Severance Benefits.

 

    5

     

    

 

(b) Separation
Agreement and Other Conditions for Severance Benefits. Provision of the Severance Benefits is conditioned on (i) Executive’s
continued compliance in all material respects with Executive’s continuing obligations to the Company, including, without limitation,
the terms of this Agreement and of the Confidentiality Agreement (defined in Section 9 below) that survive termination of Executive’s
employment with the Company, and (ii) Executive signing (without revoking if such right is provided under applicable law) a separation
agreement and release in a form of that provided to Executive by the Company on or about the Termination Date (the “Separation
Agreement”). Executive must so execute the Separation Agreement within 60 days following the Termination Date (or such shorter
time as may be set forth in the Separation Agreement).

 

8.
Notice of Termination. In the event Executive elects to terminate Executive’s employment hereunder by resigning with or
without Good Reason under Sections 6.4 or 6.5 above, Executive shall provide the Company with the applicable prior written notice of
termination required by such Sections (the “Notice Period”). The Company may, in its discretion, waive all or any
portion of such Notice Period. The Company may require that, during the Notice Period, or part or parts thereof, Executive does not do
any of the following: (i) enter the Company’s premises; (ii) undertake any work for any third party whether paid or unpaid and
whether as an employee or otherwise; (iii) have any contact or communication with any client, customer or supplier of the Company; or
(iv) have any contact or communication with any employee, officer, director, agent or consult of the Company. Additionally, during the
Notice Period, or any part or parts thereof, the Company may require Executive to do any of the following: (i) perform special projects
or perform duties not within Executive’s normal duties (provided such duties are commensurate with Executive’s position and
title) or perform some but not all of Executive’s normal duties; and (ii) keep the Company informed of Executive’s whereabouts
so that Executive can be contacted if the need arises for Executive to perform any duties provided by clause (i) of this sentence. The
Company retains the right to terminate Executive’s employment under Section 6.3 above during the Notice Period.

 

9. Confidentiality,
Restrictive Covenant, Intellectual Property, Return of Company Property and Non-Disparagement. Company and Executive have entered
into the Company’s current standard Invention Assignment, Restrictive Covenants, and Confidentiality Agreement (the “Confidentiality
Agreement”), a copy of which is annexed hereto as Exhibit A. The terms of the Confidentiality Agreement are hereby incorporated
by reference into this Agreement, except that, to the extent there is an irreconcilable conflict between the terms of this Agreement and
those of the Confidentiality Agreement, the terms of this Agreement shall govern. Executive’s execution and compliance with the
terms of the Confidentiality Agreement is a material term of this Agreement, upon which Executive’s employment and continued employment
with the Company is conditioned.

 

    6

     

    

 

 10.   Confidentiality, Non-Solicitation and Non-Competition.

 

 10.1 Representations
and Acknowledgements. For purposes of Sections 10-13 and 15 hereof, the term “Company” shall refer to not only the Company,
but also, jointly and severally, any entity, directly or indirectly, through one or more intermediaries, controlled by, in control of,
or under common control with, the Company (collectively, “Company Affiliates”). Executive acknowledges and agrees that:
(i) among the most valuable and indispensable assets of the Company are its Confidential Information (defined below) and close relationships
with its Customers (defined below) and Suppliers (defined below, which includes, without limitation, employees), which the Company has
devoted and continues to devote a substantial amount of time, money and other resources to develop; (ii) in connection with Executive’s
employment with the Company, Executive will be exposed to and acquire the Company’s Confidential Information and develop, at the
Company’s expense and support, special and close relationships with the Company’s Customers and Suppliers; (iii) the Company’s
Confidential Information and close Customer and Supplier relationships must be protected; (iv) this Section 10 is a material provision
of this Agreement and the Company would not engage Executive hereunder but for the promises and acknowledgements that Executive makes
in this Section 10; (v) to the extent required by law, the covenants in this Agreement contain reasonable limitations as to time, geographical
area and scope of activities to be restricted and that such covenants do not impose a greater restraint on Executive than is necessary
to protect the Company’s Confidential Information, close Customer and Supplier relationships and other legitimate business interests;
(vi) Executive’s compliance with such covenants will not inhibit Executive from earning a living or from working in Executive’s
chosen profession; and (vii) any breach of such covenants will result in the Company being placed at an unfair competitive disadvantage
and cause the Company serious and irreparable harm to its business.

 

 10.2 Confidential Information.

 

 (a) Protection
of Confidential Information. During the Employment Period and at all times thereafter, Executive will not, except to the extent
necessary to perform Executive’s duties hereunder or as required by law, directly or indirectly, use or disclose to any third
person, without the prior written consent of the Company, any Confidential Information (defined 10.2(b) below) of the Company. If it
is necessary for Executive to use or disclose Confidential Information so as to comply with any law, rule, regulations, court order,
subpoena or other governmental mandate or investigation, Executive shall give prompt written notice to the Company of such
requirement (to the extent legally permissible), disclose no more information than is so required, and cooperate with any attempts
by the Company to obtain a protective order or similar treatment. In the event that the Company is bound by a confidentiality
agreement or understanding with a customer, vendor, supplier or other party regarding the confidential information of such customer,
vendor, supplier or other party, which is more restrictive than specified above in this Section 10.2, and of which Executive has
notice or is aware, Executive shall adhere to the provisions of such other confidentiality agreement, in addition to those of this
Section 10.2. Executive shall exercise reasonable care to protect all Confidential Information. Executive will immediately give
notice to the Company of any unauthorized use or disclosure of Confidential Information. Executive hereby represents and warrants
that it shall assist the Company in remedying any such unauthorized use or disclosure of Confidential Information.

 

 (b) Confidential
Information Defined. For purposes of this Agreement, “Confidential Information” means all information of a confidential
or proprietary nature regarding the Company, its business or properties that the Company has furnished or furnishes to Executive, whether
before or after the date of this Agreement, or is or becomes available to Executive by virtue of Executive’s employment with the
Company, whether tangible or intangible, and in whatever form or medium provided, as well as all such information generated by Executive
that, in each case, has not been published or disclosed to, and is not otherwise known to, the public. Confidential Information includes,
without limitation, customer lists, customer requirements and specifications, designs, financial data, sales figures, costs and pricing
figures, marketing and other business plans, product development, marketing concepts, personnel matters (including employee skills and
compensation), drawings, specifications, instructions, methods, processes, techniques, computer software or data of any sort developed
or compiled by the Company, formulae or any other information relating to the Company’s services, products, sales, technology, research
data, software and all other know-how, trade secrets or proprietary information, or any copies, elaborations, modifications and adaptations
thereof. For the avoidance of doubt, Executive acknowledges and agrees that Confidential Information protected under this Agreement includes
information regarding pay, bonuses, benefits and perquisites offered to or received by employees of the Company, as well as non-public
information regarding the unique and special skills of specific employees and how such skills are valuable and integral to the Company’s
operations. Notwithstanding the foregoing, Confidential Information shall not include any information (i) that is generally known to the
industry or the public other than as a result of Executive’s breach of this covenant; (ii) that is made available to Executive by
a third party without that party’s breach of any confidentiality obligation; or (iii) which was developed by Executive outside or
independent of Executive’s performance of Executive’s obligation to render services on behalf of the Company.

 

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 (c) Immunity
for Certain Limited Disclosures. Executive acknowledges that Executive has been notified in accordance with the federal Uniform Trade
Secrets Act (18 U.S. Code § 1833(b)(1)) that an individual shall not be held criminally or civilly liable under any federal or state
trade secret law for the disclosure of a trade secret that: (a) is made (i) in confidence to a federal, state, or local government official,
either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation
of law; or (b) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.

 

 (d) Permitted
Disclosures. Executive also acknowledges that nothing in this Agreement shall be construed to prohibit Executive from reporting possible
violations of law or regulation to any governmental agency or regulatory body or making other disclosures that are protected under any
law or regulation, or from filing a charge with or participating in any investigation or proceeding conducted by any governmental agency
or regulatory body.

 

  10.3  Non-Interference, Non-Competition and Non-Diversion.

 

 (a) No
Interference with Customers. Executive agrees that, during the Restricted Period (defined in Section 10.3(f) below), regardless
of whether, or on what basis, Executive’s employment hereunder is terminated or any claim that Executive may have against the
Company under this Agreement or otherwise, Executive shall not, directly or indirectly (defined below), actually or attempt to, (i)
solicit, induce, or cause any Customer to terminate, reduce or refrain from renewing or extending its contractual or other business
relationship with the Company; (ii) solicit, induce or cause any Customer to become a customer of or enter into any contractual or
other relationship with Executive or any other person or entity for Competing Services (as defined in Section 10.3(f) below); and/or
(iii) offer or provide to any Customer any Competing Services.

 

(b) No
Interference with Employees and Other Suppliers. Executive agrees that, during the Restricted Period, regardless of whether, or
on what basis, Executive’s employment hereunder is terminated or any claim that Executive may have against the Company under
this Agreement or otherwise, Executive shall not, directly or indirectly, actually or attempt to: (i) solicit, induce, or cause any
Supplier of the Company to terminate, reduce or refrain from renewing or extending such person’s or entity’s business or
employment relationship with the Company; (ii) solicit, induce or cause any employee of the Company to engage in Competing Services;
or (iii) employ or otherwise engage as an employee, independent contractor or consultant (1) any employee of the Company or (2) any
person who was employed by the Company within the then prior six-month period.

 

 (c) Non-Diversion.
Executive agrees that, during the Restricted Period, regardless of whether, or on what basis, Executive’s employment is terminated
or any claim that Executive may have against the Company under this Agreement or otherwise, Executive shall not, directly or indirectly,
be employed or engaged as an independent contractor or otherwise by any person or entity that, during the Employment Period, was an actual
or potential Customer of Company to perform services the same or similar to those Executive provided to Company and/or the Company provided
or offered to provide to such actual or potential Customer.

 

 (d) Non-Competition.
During the Employment Period and thereafter, except if Executive is terminated for Cause pursuant to Section 6.3 hereof, for the Restricted
Period, regardless of any claim that Executive may have against the Company under this Agreement or otherwise, Executive shall not, directly
or indirectly, actually or attempt to, engage in the business of providing Competing Services within the Territory (as defined in Section
10.3(f) below).

 

 (e) Notice
to Subsequent Employers. Upon commencing any engagement as a service provider (whether as an employee, independent contractor or otherwise)
during the Restricted Period, Executive shall expressly advise each new employer and each other new recipient of Executive’s services
(each, a “Service Recipient”) of Executive’s continuing obligations to the Company under this Agreement and,
in particular, this Section 10. Further, Executive hereby consents to the Company providing such notification to each such Service Recipient.

 

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 (f) Definitions. For the
purposes of this Agreement, the following terms shall have the following meaning.

 

 (i) “Change
of Control” means (A) the acquisition by a third party (or more than one party acting as a group) of securities of the Company
representing more than sixty-six percent (66%) of the combined voting power of the Company’s then outstanding securities other than
by virtue of a merger, consolidation, or similar transaction; (B) a merger, consolidation or similar transaction following which
the stockholders of the Company immediately prior thereto do not own at least sixty-six percent (66%) of the combined outstanding voting
power of the surviving entity (or that entity’s parent) in such merger, consolidation, or similar transaction; or (C) the sale or
other disposition of all or substantially all of the assets of the Company.

 

 (ii) “Competing
Services” means products or services that are the same, similar or otherwise in competition with the products and services of
the Company with which Executive was involved or about which Executive acquired Confidential Information.

 

 (iii) “Customer”
means any company or individual: (i) who purchased products or services from the Company whom Executive contacted or served during the
Employment Period, for whom Executive supervised contact or service during the Employment Period or about whom Executive acquired Confidential
Information; and/or (ii) who was a potential customer of the Company within the one year immediately preceding the Termination Date and
(A) about whom Executive acquired Confidential Information or (B) who contacted Executive, whom Executive contacted, or for whom Executive
supervised contact regarding the potential purchase of products or services of the Company.

 

  (iv) “directly
or indirectly” as it relates to an activity taken by Executive includes any activity taken directly by Executive or indirectly
on Executive’s behalf, including any activity taken in conjunction with any other person or entity, and including any activity taken
by Executive as an employee, agent, consultant, independent contractor, officer, director, principal, shareholder, equity holder, partner,
member, joint venturer, lender, investor or otherwise, except that nothing in this Agreement shall prohibit Executive from being a passive
holder, for investment purposes only, of not more than two percent (2%) of the outstanding stock of any company listed on a national securities
exchange, or actively traded in a national over-the- counter market.

 

  (v) “Restricted
Period” means the Employment Period and for a period thereafter equaling the greater of (A) one year and (B) the duration of
any Severance Period, except that such period shall be extended for any period therein during which Executive was in violation of any
provision of this Section 10.3.

 

  (vi) “Supplier”
means any supplier of goods, services, funding, leads or prospects to the Company, including as an employee, independent contractor or
in any other capacity.

 

 (vii) “Territory”
means any state in which the Company is doing business or in which it is contemplating to do business pursuant to a then current business
plan.

 

 11.   Intellectual Property.

 

11.1 The
Company’s Proprietary Rights. Executive acknowledges and agrees that all Intellectual Property (defined below) created,
made or conceived by Executive (solely or jointly) during Executive’s employment by the Company (regardless of whether such
Intellectual Property was created, conceived or produced during Executive’s regular work hours or at any other time) that
relates to the actual or anticipated businesses of the Company or results from or is suggested by any work performed by employees or
independent contractors for or on behalf of the Company (“Company Intellectual Property”) shall be deemed
“work for hire” and shall be and remain the sole and exclusive property of the Company for any and all purposes and uses
whatsoever as soon as Executive conceives or develops such Company Intellectual Property, and Executive hereby agrees that its
assigns, executors, heirs, administrators or personal representatives shall have no right, title or interest of any kind or nature
therein or thereto, or in or to any results and proceeds therefrom. If for any reason such Company Intellectual Property is not
deemed to be “work-for-hire,” then Executive hereby irrevocably and unconditionally assigns all rights, title, and
interest in such Company Intellectual Property to the Company and agrees that the Company is under no further obligation, monetary
or otherwise, to Executive for such assignment. Executive also hereby waives all claims to any moral rights or other special rights
(“Moral Rights”), including, without limitation, 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, that Executive may have or may accrue in any Company Intellectual Property. To the extent that any such
Moral Rights cannot be assigned under applicable law, Executive hereby ratifies and consents to any action that may be taken with
respect to such Moral Rights by or on behalf of the Company and waives and agrees not to enforce any and all such rights, including,
without limitation, any limitation on subsequent modification, to the extent permitted under applicable law. Executive shall
promptly disclose in writing to the Company the existence of any and all Company Intellectual Property. As used in this Agreement,
“Intellectual Property” shall mean and include any ideas, inventions (whether or not patentable), designs,
improvements, discoveries, innovations, patents, patent applications, trademarks, service marks, trade dress, trade names, trade
secrets, works of authorship, copyrights, copyrightable works, films, audio and video tapes, other audio and visual works of any
kind, scripts, sketches, models, formulas, tests, analyses, software, firmware, computer processes, computer and other applications,
creations and properties, Confidential Information and any other patents, inventions or works of creative authorship.

 

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11.2 Waiver.
In the event that Executive owns or claims any rights to Company Intellectual Property that cannot be assigned to the Company, Executive
irrevocably waives all claims and the enforcement of all such rights against the Company, and their respective officers directors, assigns
and licensees, and agrees, at the Company’s request and expense, to consent to and join in any action to enforce the Company’s
interests in such Company Intellectual Property. As to any rights to Company Intellectual Property that cannot be assigned to the Company
or waived by Executive, Executive irrevocably grants to the Company an exclusive, irrevocable, perpetual, worldwide, fully paid and royalty-free
license, with rights to license and sublicense, to reproduce, create derivative works, distribute, publicly perform and publicly display
by all means now known or later developed, any and all such Company Intellectual Property.

 

11.3 Cooperation
Regarding Intellectual Property. Executive agrees to assist the Company, and to take all reasonable steps, with securing
patents, registering copyrights and trademarks, and obtaining any other forms of protection for the Company Intellectual Property in
the United States and elsewhere. In particular, at the Company’s expense (except as noted in clause (i) below), Executive
shall forthwith upon request of the Company execute all such assignments and other documents (including applications for patents,
copyrights, trademarks, and assignments thereof) and take all such other action as the Company may reasonably request in order (i)
to vest in the Company all of Executive’s right, title, and interest in and to such Company Intellectual Property, free and
clear of liens, mortgages, security interests, pledges, charges, and encumbrances (“Liens”) (and Executive agrees
to take such action, at Executive’s expense, as is necessary to remove all such Liens) and (ii), if patentable or
copyrightable, to obtain patents or copyrights (including extensions and renewals) therefor in any and all countries in such name as
the Company shall determine. In the event that Executive is unable or unavailable or shall refuse to sign any lawful or necessary
documents required in order for the Company to apply for and obtain any copyright or patent with respect to any work performed by
Executive in the course of his employment with the Company (including applications or renewals, extensions, divisions or
continuations), Executive hereby irrevocably designates and appoints the Company and its duly authorized officers and agents as
Executive’s agents and attorneys-in-fact to act for and in Executive’s behalf, and in Executive’s place and stead,
to execute and file any such applications or documents and to do all other lawfully permitted acts to further the prosecution and
issuance of copyrights and patents with respect to such Company Intellectual Property with the same legal force and effect as if
executed or undertaken by Executive.

 

11.4 No
infringement. Executive represents and warrants to the Company that all Intellectual Property Executive delivers to the Company shall
be original and shall not infringe upon or violate any patent, copyright or proprietary right of any person or third party.

 

11.5 License
to Prior Invention. If Executive in the course of Executive’s employment for the Company incorporates into a Company product
Intellectual Property that Executive has, alone or jointly with others, conceived, developed or reduced to practice prior to the commencement
of Executive’s employment with the Company in which Executive has a property right (each, a “Prior Invention”),
Executive hereby grants to the Company a perpetual, nonexclusive, royalty-free, irrevocable, worldwide license (with the full right to
sublicense) to make, have made, modify, use and sell such Prior Invention. Executive hereby represents and warrants that all Prior Inventions
have been listed by Executive on Exhibit B hereto or, if no such list is attached, that there are no Prior Inventions. Executive
will not incorporate any Intellectual Property owned by any third party into any Company Intellectual Property without the Company’s
prior written permission.

 

11.6 Severability.
To the extent this Agreement is required to be construed in accordance with laws of any state which precludes as a requirement in an employee
agreement the assignment of certain classes of inventions made by an employee, this Section 11 will be interpreted not to apply to any
invention which a court rules and/or the Company agrees falls within such classes.

 

12. Non-Disparagement.
Executive agrees not to, knowingly and intentionally, make any disparaging remark or send any disparaging communication on any date
which is reasonably expected to result in, or does result in, damage to (i) the reputation of the Company on such date or (ii) the
reputation of (A) the business, officers and directors of the Company on such date or (B) the employees of the Company on the date
of this Agreement but only for so long as an employee remains an employee of the Company. The Company agrees not to, knowingly and
intentionally, make any disparaging remarks or send any disparaging communications by press release or other formal communication or
take any other action, directly or indirectly, with respect to Executive which is reasonably expected to result in, or does result
in, damage to Executive’s reputation (it being understood that comments or actions by an individual will not be treated as
comments or actions by the Company unless such individual is an officer or director of the Company or otherwise has both the
authority to act, and is acting, on behalf of the Company with respect to such comments or actions). This Section does not apply to
(i) truthful statements made in connection with legal proceedings, governmental and regulatory investigations and actions; (ii) any
other truthful statement or disclosure required by law; or (iii) business-related intra-Company communications or to the
Company’s communications with its shareholders, investors, auditors and/or legal advisors.

 

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13. Cooperation.
During and after the Employment Period, Executive shall assist and cooperate with the Company in connection with the defense or prosecution
of any claim that may be made against or by the Company, or in connection with any ongoing or future investigation or dispute or claim
of any kind involving the Company, including any proceeding before any arbitral, administrative, judicial, legislative, or other body
or agency, including testifying in any proceeding to the extent such claims, investigations or proceedings relate to services performed
or required to be performed by Executive, pertinent knowledge possessed by Executive, or any act or omission by Executive. Executive will
also perform all acts and execute and deliver any documents that may be reasonably necessary to carry out the provisions of this paragraph.
The Company will reimburse Executive for reasonable expenses Executive incurs in fulfilling Executive’s obligations under this Section
13. Notwithstanding the foregoing, this Section shall not be applicable to any claim by the Company against Executive or by Executive
against the Company.

 

14. Company
Property. Executive agrees that all Confidential Information, trade secrets, drawings, designs, reports, computer programs or
data, books, handbooks, manuals, files (electronic or otherwise), computerized storage media, papers, memoranda, letters, notes,
photographs, facsimile, software, computers, smart phones and other documents (electronic or otherwise), materials and equipment of
any kind that Executive has acquired or will acquire during the course of Executive’s employment with the Company are and
remain the property of the Company. Upon termination of employment with the Company, or sooner if requested by the Company,
Executive agrees to return all such documents, materials, and records to the Company and not to make or take copies of the same
without the prior written consent of the Company. With regard to such documents, materials and records in electronic form, Executive
shall first provide a copy to Company, and then irretrievably delete such electronic information from her electronic devices and
accounts, including but not limited to computers, phones, personal email accounts, cloud storage accounts, and removable storage
media. Executive agrees to provide the Company access to Executive’s system as reasonably requested to verify that the
necessary copying and/or deletion is completed. Executive acknowledges and agrees that any property situated on the Company’s
premises and owned by the Company, including disks and other storage media, filing cabinets, and other work areas, is subject to
inspection by personnel of the Company at any time with or without notice. Executive acknowledges and agrees that Executive has no
expectation of privacy with respect to the Company’s telecommunications, networking, or information processing systems
(including, without limitation, files, e-mail messages and voice messages) and that Executive’s activity and any files or
messages on or using any of those systems may be monitored at any time without notice. Notwithstanding anything in this Agreement to
the contrary, (x) Executive’s personal property, general industry knowledge, awards, and personal memoirs do not constitute
trade secrets or Confidential Information, and are and shall remain Executive’s sole and exclusive property, and (y) Executive
shall be entitled to retain, following Executive’s termination of employment, information showing Executive’s
compensation or relating to reimbursement of business expenses incurred by Executive, and copies of this Agreement and any Company
benefit programs in which Executive participated; provided, however, that Executive acknowledges and agrees that
Executive shall not disclose the documents referenced in this clause (y) except to Executive’s representatives who have a need
to know such information.

 

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15. Injunctive
Relief and Other Remedies. Executive acknowledges that a breach of Sections 10 through 13 of this Agreement will result in material
irreparable injury to the Company for which there is no adequate remedy at law, that it will not be possible to measure damages for such
injuries precisely and that, in the event of such a breach or threat thereof, the Company shall be entitled to obtain a temporary restraining
order and/or a preliminary and/or permanent injunction, without the necessity of posting a bond or of proving irreparable harm or injury
as a result of such breach or threatened breach of Sections 10 through 13, restraining Executive from engaging in activities prohibited
by Sections 10 through 13 and such other relief as may be required specifically to enforce any of the provisions in Sections 10 through
13. Executive further agrees that, if Executive breaches any of the provisions in Sections 10 through 13 of this Agreement, to the extent
permitted by law, Executive shall (i) forfeit Executive’s right to receive the balance of any compensation and/or benefits due Executive
under this Agreement; (ii) pay over to the Company all compensation, profits, monies, accruals, increments or other benefits derived or
received by Executive as the result of any action or transaction constituting a breach of any provision thereof; and (iii) pay over to
the Company all costs and expenses incurred by the Company resulting from Executive’s breach (including, without limitation, reasonable
attorneys’ fees and expenses in dealing with Executive’s breach or any suits or actions with regard thereto) and for all damages
(compensatory, along with punitive) that may be awarded in connection therewith. The provisions of this section shall not limit any other
remedies available to the Company as a result of a breach of the provisions of this Agreement or otherwise. Additionally, each of the
covenants and restrictions to which Executive is subject under this Agreement, including, without limitation those in Section 10 above,
shall each be construed as independent of any other provision in this Agreement, and the existence of any claim or cause of action by
Executive against the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by
the Company of such covenants and restrictions.

 

 16. Representations Regarding Prior Work and Legal Obligations.

 

16.1 Executive
represents and warrants that Executive has no agreement or other legal obligation with any prior employer, or any other person or entity,
that restricts Executive’s ability to accept employment with the Company. Executive further represents and warrants that Executive
is not a party to any agreement (including, without limitation, a non-competition, non- solicitation, no hire or similar agreement) and
has no other legal obligation that restricts in any way Executive’s ability to perform Executive’s duties and satisfy Executive’s
other obligations to the Company, including, without limitation, those under this Agreement.

 

16.2 Executive
represents and acknowledges that Executive has been instructed by the Company that at no time should Executive divulge to or use for
the benefit of the Company or any Company Affiliates any trade secret or confidential or proprietary information of any previous
employer or entity with which Executive was affiliated or of any other third-party. Executive expressly represents and warrants that
Executive has not divulged or used any such information for the benefit of the Company or Company Affiliates and will not do so.
16.3 Executive represents and agrees that the Executive has not and will not misappropriate
any intellectual property belonging to any other person or entity.

 

16.4 Executive
acknowledges that the Company is basing important business decisions on these representations, agreements and warranties, and Executive
affirms that all of the statements included herein are true. Executive agrees that Executive shall defend, indemnify and hold the Company
harmless from any liability, expense (including attorneys’ fees) or claim by any person in any way arising out of, relating to,
or in connection with a breach and/or the falsity of any of the representations, agreements and warranties made by Executive in this Section
16.

 

17. Indemnification
and Liability Insurance. The Company shall indemnify Executive to the fullest extent permitted by law, in effect at the time of the
subject act or omission, and shall advance to Executive reasonable attorneys’ fees and expenses as such fees and expenses are incurred
(subject to an undertaking from Executive to repay such advances if it shall be finally determined by a judicial decision which is not
subject to further appeal that Executive was not entitled to the reimbursement of such fees and expenses), and Executive will be entitled
to the protection of any insurance policies that the Company may elect to maintain generally for the benefit of its directors and officers
against all costs, charges and expenses incurred or sustained by Executive in connection with any action, suit or proceeding brought by
a third-party to which Executive may be made a party by reason of Executive’s being or having been a director, officer or employee
of the Company or any of its affiliates, or Executive’s serving or having served any other enterprise as a director, officer or
employee at the request of the Company (other than any dispute, claim or controversy arising under or relating to this Agreement), provided
that he acted within the scope of his duties as a director, officer or employee of the Company. The Company covenants to maintain during
Executive’s employment for the benefit of Executive (in his capacity as an officer and director of the Company) Directors and Officers
Insurance providing benefits to Executive no less favorable, taken as a whole, than the benefits provided to the other similarly situated
employees of the Company by the Directors and Officers Insurance maintained by the Company on the date hereof; provided, however, that
the Company may elect to terminate Directors and Officers Insurance for all officers and directors, including Executive, if the Company
determines in good faith that such insurance is not available or is available only at unreasonable expense.

 

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 18. Miscellaneous Provisions.

 

18.1 IRCA
Compliance. This Agreement, and Executive’s employment with the Company, is conditioned on Executive’s establishing Executive’s
identity and authorization to work as required by the Immigration Reform and Control Act of 1986 (IRCA).

 

18.2 Section
409A Compliance. Unless otherwise expressly provided, any payment of compensation by Company to Executive, whether pursuant to
this Agreement or otherwise, shall be made no later than the 15th day of the third month (i.e., 21⁄2 months)
after the later of the end of the calendar year or the Company’s fiscal year in which Executive’s right to such payment
vests (i.e., is not subject to a “substantial risk of forfeiture”) for purposes of Section 409A of the Internal
Revenue Code of 1986, as amended (“Section 409A”). For purposes of this Agreement, termination of employment
shall be deemed to occur only upon “separation from service” as such term is defined under Section 409A. Each payment
and each installment of any severance payments provided for under this Agreement shall be treated as a separate payment for purposes
of application of Section 409A. To the extent any amounts payable by the Company to the Executive constitute “nonqualified
deferred compensation” (within the meaning of Section 409A) such payments are intended to comply with the requirements of
Section 409A and shall be interpreted in accordance therewith. Neither party individually or in combination may accelerate, offset
or assign any such deferred payment, except in compliance with Section 409A. No amount shall be paid prior to the earliest date on
which it is permitted to be paid under Section 409A, including a six (6) month delay of termination payments made to specified
employees of a public company, to the extent then applicable. Executive shall have no discretion with respect to the timing of
payments except as permitted under Section 409A. Any Section 409A payments which are subject to execution of a waiver and release
which may be executed and/or revoked in a calendar year following the calendar year in which the payment event (such as termination
of employment) occurs shall commence payment only in such following calendar year as necessary to comply with Section 409A. All
expense reimbursement or in-kind benefits subject to Section 409A provided under this Agreement or, unless otherwise specified in
writing, under any Company program or policy, shall be subject to the following rules: (i) the amount of expenses eligible for
reimbursement or in-kind benefits provided during one calendar year may not affect the benefits provided during any other year; (ii)
reimbursements shall be paid no later than the end of the calendar year following the year in which Executive incurs such expenses,
and Executive shall take all actions necessary to claim all such reimbursements on a timely basis to permit the Company to make all
such reimbursement payments prior to the end of said period, and (iii) the right to reimbursement or in-kind benefits shall not be
subject to liquidation or exchange for another benefit. Notwithstanding anything herein to the contrary, no amendment may be made to
this Agreement if it would cause the Agreement or any payment hereunder not to be in compliance with Code Section 409A.

 

18.3 Assignability
and Binding Effect. This Agreement shall inure to the benefit of and shall be binding upon the heirs, executors, administrators, successors,
and legal representatives of Executive, and shall inure to the benefit of and be binding upon the Company, the Company Affiliates and
their successors and assigns, but the obligations of Executive are personal services and may not be delegated or assigned. Executive shall
not be entitled to assign, transfer, pledge, encumber, hypothecate, or otherwise dispose of this Agreement, or any of Executive’s
rights and obligations hereunder, and any such attempted delegation or disposition shall be null and void and without effect. This Agreement
may be assigned by the Company to a person or entity that is an affiliate or a successor in interest to substantially all of the business
operations of the Company. Upon such assignment, the rights and obligations of the Company hereunder shall become the rights and obligations
of such affiliate or successor person or entity.

 

18.4 Right
of Set-Off. To the extent permitted by applicable law, the Company may at any time offset against any amounts owed to Executive hereunder
or otherwise due or to become due to Executive, or anyone claiming through or under Executive, any debt or debts due or to become due
from Executive to the Company.

 

18.5 Severability
and Blue Penciling. If any provision of this Agreement is held to be invalid, the remaining provisions shall remain in full
force and effect. However, if any court determines that any covenant in this Agreement, is unenforceable because the duration,
geographic scope or restricted activities thereof are overly broad, then such provision or part thereof shall be modified by
reducing the overly broad duration, geographic scope or restricted activities by the minimum amount so as to make the covenant, in
its modified form, enforceable.

 

 

18.6 Choice
of Law and Forum; Attorneys’ Fees. This Agreement shall be interpreted and enforced in accordance with the laws of the State
of New York, without regard to its conflict-of-law principles. The Parties agree that any dispute concerning or arising out of this Agreement
or Executive’s employment hereunder (or termination thereof) shall be litigated exclusively in an appropriate state or federal court
in or closest to New York County, New York and hereby consent, and waive any objection, to the jurisdiction of any such court. In the
event a litigation or other legal proceeding is commenced to resolve any such dispute, the prevailing party in such litigation or proceeding
shall be entitled to recover from the non-prevailing party all of its costs, charges, disbursements and fees (including reasonable attorneys’
fees) incurred in connection with such litigation or proceeding and the underlying dispute.

 

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18.7 Mutual
Waiver of Jury Trial. Executive and the Company each hereby waive the right to trial by jury in any action or proceeding, regardless
of the subject matter, between them, including, without limitation, any action or proceeding based upon, arising out of, or in any way
relating to this Agreement and all matters concerning Executive’s employment with the Company (or the termination thereof). Executive
and the Company further agree that either of them may file a copy of this Agreement with any court as written evidence of the knowing,
voluntary, and bargained agreement between Executive and the Company to irrevocably waive trial by jury, and that any dispute or controversy
whatsoever between Executive and the Company shall instead be tried in a court of competent jurisdiction by a judge sitting without a
jury.

 

 18.8 Notices.

 

 (a) Any
notice or other communication under this Agreement shall be in writing and shall be delivered by hand, email, facsimile or mailed by overnight
courier or by registered or certified mail, postage prepaid:

 

 (i) If to Executive, to Executive’s address
on the books and records of the Company.

 

 (ii) If to the
Company, to 76 Treble Cove Rd., Bldg. 3, Billerica,MA 01862, or at such other mailing address, email address or facsimile number as
it may have furnished in writing to Executive.

 

 (b) Any
notice so addressed shall be deemed to be given: if delivered by hand or email, on the date of such delivery; if by facsimile, on the
date of such delivery if receipt on such day is confirmed and, if not so confirmed, on the next business day; if mailed by overnight courier,
on the first business day following the date of such mailing; and if mailed by registered or certified mail, on the third business day
after the date of such mailing.

 

18.9 Survival
of Terms. All provisions of this Agreement that, either expressly or impliedly, contain obligations that extend beyond termination
of Executive’s employment hereunder, including without limitation Sections 10-15 and 18 hereof, shall survive the termination of
this Agreement and of Executive’s employment hereunder for any reason.18.10 Interpretation.
The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation
of this Agreement. The language in all parts of this Agreement shall in all cases be construed according to its fair meaning, and not
strictly for or against any Party. The Parties acknowledge that both have participated in drafting this Agreement; therefore, any general
rule of construction that any ambiguity shall be construed against the drafter shall not apply to this Agreement. In this Agreement,
unless the context otherwise requires, the masculine, feminine and neuter genders and the singular and the plural include one another.

 

18.11 Further
Assurances. The Parties will execute and deliver such further documents and instruments and will take all other actions as may be
reasonably required or appropriate to carry out the intent and purposes of this Agreement.

 

18.12 Voluntary
and Knowing Execution of Agreement. Executive acknowledges that (i) Executive has had the opportunity to consult an attorney regarding
the terms and conditions of this Agreement before executing it, (ii) Executive fully understands the terms of this Agreement including,
without limitation, the significance and consequences of the post-employment restrictive covenants in Section 10 above, and (iii) Executive
is executing this Agreement voluntarily, knowingly and willingly and without duress.

 

18.13 Entire
Agreement. This Agreement constitutes the entire understanding and agreement of the Parties concerning the subject matter hereof,
and it supersedes all prior negotiations, discussions, correspondence, communications, understandings, and agreements regarding such subject
matter. Each Party acknowledges and agrees that such Party is not relying on, and may not rely on, any oral or written representation
of any kind that is not set forth in writing in this Agreement.

 

18.14 Waivers
and Amendments. This Agreement may be altered, amended, modified, superseded or cancelled, and the terms hereof may be waived, only
by a written instrument signed by the Parties or, in the case of a waiver, by the Party alleged to have waived compliance. Any such signature
of the Company must be by an authorized signatory for the Company. No delay by any Party in exercising any right, power or privilege hereunder
shall operate as a waiver thereof, nor shall any waiver on the part of any Party of any such right, power or privilege, nor any single
or partial exercise of any such right, power or privilege, preclude any other or further exercise thereof or the exercise of any other
such right, power, or privilege.

 

18.15 Counterparts.
This Agreement may be executed in counterparts, and each counterpart, when executed, shall have the efficacy of a signed original. Photographic
copies, electronically scanned copies, and other facsimiles of this Agreement (including such signed counterparts) may be used in lieu
of the originals for any purpose.

 

[The remainder of this page is intentionally
blank; signature page follows.]

 

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

 

	/s/ Stuart Wilcox	 
	STUART WILCOX	 
	 	 
	AGRIFY CORPORATION	 

 

	By: 	/s/ Raymond Chang	  
	Title: 	Chief Executive Officer	 
	Name:	Raymond Chang	 

 

 

[Signature page to Employment Agreement]

 

 

15

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