Document:

EX-10.1

 Exhibit 10.1 

TRANSITIONAL SERVICE AND SEPARATION AGREEMENT 

This Transitional Services and Separation Agreement (“Agreement”) is made as of January 23, 2019 between BioDelivery
Sciences International, Inc. (the “Company”), and Ernest R. De Paolantonio (“De Paolantonio”). De Paolantonio and the Company may be collectively referred to as the “parties” or individually
referred to as a “party.” 
 WHEREAS, De Paolantonio currently serves as the Company’s Chief Financial Officer; 

WHEREAS, in connection with De Paolantonio’s separation, the Company desires to provide de Paolantonio with certain benefits in
connection with De Paolantonio’s eventual departure; and 
 WHEREAS, the parties intend that this Agreement will set out the
terms of De Paolantonio’s transition and separation from the Company and, except as specifically provided herein, this Agreement will fully supersede and replace any other agreements or understanding between the Company and De Paolantonio
relating to payments or benefits in connection with the ending of De Paolantonio’s employment. 
 NOW, THEREFORE, in
consideration of the promises and mutual covenants and agreements herein contained, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 

1. Transition Period and Separation of Employment. 

(a) De Paolantonio and the Company agree that De Paolantonio’s employment will terminate on 5:00 p.m. on April 30, 2019 (the
“Planned Separation Date”), unless: (i) De Paolantonio resigns or (ii) De Paolantonio is terminated for Cause (as defined in that certain October 1, 2013 letter employment agreement (the “Employment
Agreement”)). De Paolantonio’s employment may be extended by mutual agreement of the Company and De Paolantonio if: (i) the Company notifies De Paolantonio no later than sixty (60) days in advance of its intention to extend
the last day of employment through a communication from its Chief Executive Officer (“CEO”) and (ii) De Paolantonio agrees in writing to such extension, in which case, the new date agreed upon for De Paolantonio’s
separation shall be the “Extension Date”. The actual last date of De Paolantonio’s employment, whether it is the Planned Separation Date, the Extension Date or otherwise shall be the “Retirement Date” and the
time period between the date he enters into this Agreement and the Retirement Date shall be referred to as the “Transition Period.” De Paolantonio shall be paid his full compensation and participate in full benefits through the
Retirement Date at the same levels he received immediately before entering into this Agreement. For clarity and the avoidance of doubt, De Paolantonio shall be eligible for a grant of restricted stock units (“RSUs”) for performance
in 2018 under the 2011 Equity Incentive Plan (the “Plan”), and an award of vested Common Stock (the “LTIP Stock”) for performance in 2018 under the Company’s Performance Long Term Incentive Plan (the
“LTIP”), with the amount of such LTIP Stock to be determined and issued in accordance with the terms and provisions of the LTIP. In addition, to the extent De Paolantonio remains employed under this Agreement after the Planned
Separation Date, then the Company shall reimburse De Paolantonio for his temporary housing expenses, including an amount to gross up such reimbursements for any income taxes imposed on such reimbursements. 

 (b) During the Transition Period, De Paolantonio will continue to serve as the Chief
Financial Officer (or such other mutually agreeable title) on a regular full-time basis, subject to any modification and direction as to his duties as communicated to him by the CEO. During the Transition Period, the Company will be conducting an
active search for a new Chief Financial Officer (the “Replacement CFO”) and De Paolantonio agrees to cooperate with the search as requested. If the Replacement CFO commences employment prior to the Retirement Date, De Paolantonio
agrees to resign as Chief Financial Officer and serve as Senior Advisor for the period between the Replacement CFO’s state date and the Retirement Date, where the Company will continue to pay De Paolantonio’s salary and provide him
benefits until the Retirement Date. De Paolantonio’s duties as Senior Advisor, as well as the location where he performs those duties, will be determined by the CEO or such other mutually agreeable location. 

(c) Following the Retirement Date, De Paolantonio shall be permitted to consult with, be employed by, act as a director for, or otherwise be
associated with, any other business, subject in all instances to the terms of this Agreement, that certain Confidentiality, Intellectual Property, and Non-Competition Agreement (the “Employee Non-Competition Agreement”), by De Paolantonio in favor of the Company. 
 (d) As provided by the
specific terms of a Company benefit plan or as required by law, as of the Retirement Date, all of De Paolantonio’s benefits as an officer and employee of the Company shall terminate; provided, however, that De Paolantonio will be
entitled to any and all vested rights as of the Retirement Date in any benefits, and to payment of his accrued but unused vacation balance, as of December 31, 2018, plus such additional amounts as may accrue in 2019 as of the Retirement Date in
his last paycheck. Any accrued vacation balance as of December 31, 2018 shall not be diminished for any reason other than use of vacation. De Paolantonio will be entitled to any Company 40l(k) benefits in accordance with the terms and
conditions of the applicable Company plans (noting that any 40l(k) deferrals and matching contributions will terminate as of the Retirement Date in accordance with the terms and conditions of those plans). 

(e) Except as amended herein, De Paolantonio’s equity interests shall continue to be governed by the 2011 Equity Incentive Plan (the
“Plan”) and his applicable award agreements (the “Equity Documents”), as amended herein and by the Change of Control provisions in the Employment Agreement. 

2. Separation Benefits. 

(a) Separation Payment. The Company shall pay De Paolantonio a one-time cash severance payment,
subject to applicable deductions and withholdings, of $360,000.00 (the “Separation Payment”) representing one full year of his current base salary. The Company shall pay the Separation Payment within thirty (30) days of the
Retirement Date, provided that De Paolantonio meets all of the Conditions described in Section 2(e). 
 (b) 2018 Annual
Bonus. De Paolantonio shall remain eligible for his 2018 annual bonus. The total amount of the 2018 annual bonus shall be determined by the Board of Directors (the “Board”) in its sole discretion and will be paid on the date in
2019 upon which the Company pays 2018 annual bonuses to Company executives. 
 (c) Reimbursement for Costs of Continued Health
Benefits. The Company shall reimburse De Paolantonio for the actual additional costs of continuation of De Paolantonio’s group health and dental insurance under the Consolidated Omnibus Reconciliation Act of 1985 (“COBRA”),
at the same level in which he participated as of the Retirement Date, for up to three (3) months following the Retirement Date, provided that De Paolantonio shall bear full responsibility for applying for COBRA coverage, and nothing herein
shall constitute a guarantee of COBRA continuation coverage or benefits or a guarantee of eligibility for health benefits. Notice of COBRA continuation benefits shall be provided 

  
 2 

 
under separate cover. Reimbursements under this Section 2(c) shall be made on a monthly basis beginning in the month after the Separation Payment under Section 2(a) is paid. De
Paolantonio shall not be entitled to a cash payment or other benefit in lieu of the reimbursements provided for herein or for amounts in excess of the actual costs of premiums for the coverages hereunder. 

(d) Enhanced Equity Treatment. 

(i) Stock Options. Notwithstanding anything to the contrary in the Plan or the applicable equity award agreements, the
Company shall deem De Paolantonio’s separation from service a “Retirement” (as defined in the Plan) in order to extend the option exercise period through the remainder of the Option Period (as defined in the Plan) for the
vested options under De Paolantonio’s October 1, 2013 Incentive Stock Option award, it being understood that any Incentive Stock Option held by De Paolantonio shall be treated as a Nonqualified Stock Option if exercise is not undertaken
within 90 days of the Retirement Date. 
 (ii) Restricted Stock Units. The parties acknowledge that De Paolantonio has
been granted restricted stock units (“RSUs”) under the Plan, a portion of which vest subject solely to the passage of time (“Time Vesting RSUs”) and a portion of which vest based on achievement of performance
metrics (“Performance Vesting RSUs”). Subject to De Paolantonio’s service through the Retirement Date, all Time Vesting RSUs which, by their terms, would have vested had De Paolantonio remained in service with the Company
through December 31, 2020, shall be deemed vested as of the Retirement Date, and any Time Vesting RSUs which, by their terms, vest following December 31, 2020 shall be deemed forfeited as of the Retirement Date. Subject to De
Paolantonio’s service through the Retirement Date, all Performance Vesting RSU’s shall remain outstanding and eligible to vest with respect to the Company’s performance through December 31, 2020 (which performance shall be
determined in early 2021) and, any Performance RSUs that do not vest based upon performance through December 31, 2020 shall be forfeited. 

(e) Conditions for Receiving the Separation Benefits. In order to receive the Separation Benefits described above in Sections 2(a)-(d),
De Paolantonio must satisfy the following “Conditions”: (i) enter into and not revoke this Agreement; (ii) remain actively employed by the Company through the Planned Separation Date, or the Extension Date, if applicable ; provided,
however, that if De Paolantonio is terminated without Cause by the Company earlier, he shall be entitled to the Separation Benefits; provided that De Paolantonio need only remain active through December 31, 2018, to be eligible to
receive a 2018 annual bonus pursuant to Section 2(b); and (iii) sign and return the Supplemental Release attached as Exhibit A within 10 days after the Retirement Date, provided this Condition will not be required for De Paolantonio
to be eligible to receive a 2018 Annual Bonus pursuant to Section 2(b). 
 (f) Change of Control. In the event a Change of
Control takes place (as defined by the Employment Agreement), on or before the Retirement Date, he shall be entitled to the “Change of Control Benefits” provided for in his Employment Agreement, less any payments and/or benefits he
is entitled to receive under this Agreement,. 
 (g) Expense Reimbursement. De Paolantonio will receive payment for all approved and
outstanding expense reports owed in connection with appropriate business expenses through the Retirement Date. All requests for reimbursements shall be submitted no later 10 days after the Retirement Date, and reimbursements shall be provided within
thirty (30) days. 

  
 3 

 3. Release of Claims. 

(a) De Paolantonio Initial Release. Inconsideration of the mutual agreements and covenants herein contained, by signing this Agreement,
De Paolantonio knowingly and voluntarily releases and forever discharges the Company and its affiliates, subsidiaries, divisions, insurers, predecessors, successors and assigns, and their current and former employees, attorneys, officers, directors
and agents thereof, both individually and in their business capacities, and their employee benefit plans and programs and their administrators and fiduciaries (collectively referred to throughout the remainder of this Agreement as “Company
Released Parties”), of and from any and all claims, known and unknown, asserted or unasserted, which De Paolantonio has or may have against the Company or any Company Released Parties as of the date of execution of this Agreement,
including, but not limited to: (i) any claims, whether statutory, common law, or otherwise, arising out of the terms or conditions of his employment at the Company; (ii) any claims, whether statutory, common law, or otherwise, arising out
of the facts and circumstances of his employment and the termination of his employment at the Company; (iii) any claims for breach of contract, quantum meruit, unjust enrichment, breach of oral promise, tortuous interference with
business relations, injurious falsehood, defamation, negligent or intentional infliction of emotional distress, invasion of privacy, and any other common law contract and tort claims; (iv) any claims for unpaid or lost benefits or salary,
bonus, vacation pay, severance pay, or other compensation; (v) any claims for attorneys’ fees, costs, disbursements, or other expenses; (vi) any claims for damages or personal injury; (vii) any claims of employment
discrimination, harassment or retaliation, whether based on federal, state, or local law or judicial or administrative decision; and (viii) any claims arising under the Fair Labor Standards Act, 29 U.S.C. § 201, et seq.; Title
VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e, et seq. (as amended); the Civil Rights Act of 1866, 42 U.S.C. § 1981; the Civil Rights Act of 1991, Pub. Law No. 102-166; the
National Labor Relations Act, 29 U.S.C. § 151, et seq.; the Family and Medical Leave Act, 29 U.S.C. § 2601 et seq.; the Rehabilitation Act of 1973, 29 U.S.C. § 701, et seq.; the Age Discrimination in Employment
Act; the Older Workers Benefit Protection Act; the Worker Adjustment and Retraining Notification Act; the Americans With Disabilities Act, 42 U.S.C. § 12101, et seq.; the Employee Retirement Income Security Act of 1974, 29 U.S.C.
§1001, et seq., the Sarbanes-Oxley Act of 2002, 18 U.S.C. §1514A, et seq., the Dodd-Frank Wall Street Reform and Consumer Protection Act, claims under North Carolina or other state laws, including, but not limited to, the
North Carolina Retaliatory Employment Discrimination Act, the North Carolina Persons with Disabilities Protection Act, the North Carolina Equal Employment Practices Act, and/or any other federal, state or local statute, law, ordinance, regulation or
order, or the common law, or any self-regulatory organization rule or regulation. The enumeration of specific rights, claims, and causes of action being released should not be construed to limit the general scope of the foregoing release. It is the
intent of the parties by the foregoing release, De Paolantonio is giving up all rights, claims, and causes of actions against the Company Released Parties which accrued prior to the Effective Date (defined below), whether or not he is aware of them
and whether or not any damage or injury has yet occurred. This release does not include either Party’s right to enforce the terms of this Agreement. In connection with this release provision, De Paolantonio does not waive his right to file a
charge or participate in any investigation or proceeding of any federal, state or local governmental agency or commission, including the Equal Employment Opportunity Commission, the National Labor Relations Board, and the Securities and Exchange
Commission, nor does anything contained in this Agreement apply to truthful testimony in litigation. To the extent permitted by law, De Paolantonio agrees that if such a claim is made, De Paolantonio shall not be entitled to recover any individual
monetary relief or other individual remedies should any administrative agency pursue any claim on his behalf. Nothing in this Agreement extinguishes any claims De Paolantonio may have: (i) against the Company for breach of this Agreement;
(ii) against any of the Company Released Parties for any claims arising from events that occur following the Effective Date; or (iii) related to the Company’s obligation, if any, to indemnify De Paolantonio as an officer of the
Company, including under any directors’ and officers’ liability policy maintained by the Company. 

  
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 (b) Company Initial Release. In consideration of the mutual agreements and covenants
herein contained, by signing this Agreement, the Company knowingly and voluntarily releases and forever discharges De Paolantonio, his affiliates, and his attorneys and representatives (collectively referred to throughout the remainder of this
Agreement as “De Paolantonio Released Parties”), of and from any and all claims, known and unknown, asserted or unasserted, which the Company has or may have against De Paolantonio or any De Paolantonio Released Parties as of
the date of execution of this Agreement, including, but not limited to, (i) any claims, whether statutory, common law, or otherwise; (ii) any claims for breach of contract, breach of fiduciary duty, conversion, quantum meruit, unjust
enrichment, breach of oral promise, tortuous interference with business relations, injurious falsehood, defamation, and any other common law contract and tort claims; (iii) any claims for attorneys’ fees, costs, disbursements, or other
expenses; and (vi) any claims for damages; provided, however, that expressly excluded from such released claims are (A) claims arising out of De Paolantonio’s capacity as an officer or employee of the Company for fraud,
criminal acts, intentional misconduct or actively concealed grossly negligent acts, and (B) any claims relating specifically to De Paolantonio’s actions or omissions as a director of the Company. The enumeration of specific rights, claims,
and causes of action being released should not be construed to limit the general scope of the foregoing release. It is the intent of De Paolantonio and the Company that by the foregoing release, the Company is giving up all rights, claims, and
causes of actions against the De Paolantonio Released Parties which accrued prior to the effective date hereof, whether or not he is aware of them and whether or not any damage or injury has yet occurred. This release does not include either
Party’s right to enforce the terms of this Agreement. Nothing in this Agreement extinguishes any claims the Company may have: (i) against De Paolantonio for breach of this Agreement or the Supplemental Release Agreement; or
(ii) against any of the De Paolantonio Released Parties for any claims arising from events that occur following the Effective Date. 

(c) Supplemental Release. Additionally, on the Retirement Date, or within ten (10) days thereafter, De Paolantonio and the Company
agree to execute and deliver to the other party a Supplemental Release Agreement in the form attached as hereto as Exhibit A containing a general release of claims co-extensive and substantially
similar with the release set forth above to include a release of all claims through and including the Retirement Date. 
 4.
Affirmations. De Paolantonio hereby affirms, represents and warrants: 
 (a) he has not filed, caused to be filed, or presently is a
party to any claim against any Company Release Party; 
 (b) except for the payments and benefits provided for in this Agreement, he has
been paid and/or has received all compensation, wages, bonuses, commissions, and/or benefits to which De Paolantonio may be entitled; 
 (c)
he has been granted and received any and all leaves (paid or unpaid) to which he may have been entitled during his employment, including any leave to which he was entitled under the Family and Medical Leave Act or local leave or disability
accommodation laws; 
 (d) he has no known workplace injuries or occupational diseases; 

(e) he has not been retaliated against for reporting any allegations of wrongdoing by any Released Party, including any allegations of
corporate fraud; 

  
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 (f) this Agreement states fully all agreements, understandings, promises, and commitments as
between himself and the Company relating to the termination of De Paolantonio’s employment; 
 (g) in deciding to sign this Agreement,
he has not relied on any representations, statements, agreements, understandings, promises, or commitments that are not expressly set forth in this Agreement; 

(h) he has reviewed this Agreement in its entirety; 

(i) he has been afforded at least twenty-one (21) calendar days within which to consider this
Agreement and that he has, by this Agreement, been advised in writing to consult with legal counsel before signing this Agreement; 
 (j)
should he choose to sign this Agreement before the expiration of twenty-one (21) days, or choose not to consult legal counsel, he does so freely and knowingly, and waives any and all claims that such
action or inaction would affect the validity of this Agreement; and 
 (k) any changes to this Agreement, whether material or immaterial, do
not restart the twenty-one (21) day period. 
 5. Nondisparagement. Neither Company nor
De Paolantonio shall make or endorse any disparaging, derogatory, adverse, and/or otherwise negative remarks and/or statements (whether oral, written, or otherwise) concerning the other party or the Company’s products, current or former
officers, directors, partners, shareholders, investors, business partners or employees. These non-disparagement obligations shall not in any way affect either party’s obligation to provide truthful
information as required by law. 
 6. No Modifications; Entire Agreement. This Agreement cannot be changed or terminated orally, and
no modification or waiver of any of the provisions of this Agreement will be effective unless it is in writing and signed by both parties. This Agreement sets forth the entire and fully integrated understanding between the parties, and there are no
representations, warranties, covenants or understandings, oral or otherwise, that are not expressly set out herein; provided that the Employee Non-Competition Agreement, the Change in Control provisions
in the Employment Agreement (as amended herein), and the Equity Documents shall remain in full force and effect. The parties acknowledge that, in deciding to enter into this Agreement, they have not relied upon any statements not written in this
Agreement. 
 7. Enforcement 

(a) Governing Law; Jurisdiction. This Agreement shall be construed, interpreted, and governed in accordance with and by North Carolina
law. Any and all claims, controversies, and causes of action arising out of this Agreement, whether sounding in contract, tort, or statute, shall be governed by the laws of the State of North Carolina, including its statutes of limitations, without
giving effect to any North Carolina conflict-of-laws rule that would result in the application of the laws of a different jurisdiction. 

  
 6 

 8. Revocation. De Paolantonio may revoke this Agreement for a period of seven
(7) calendar days following the day he executes this Agreement (the “Revocation Period”). In order to revoke this Agreement, De Paolantonio must state his desire to revoke in writing and
e-mail said writing to Lauren Kiser at lkiser@bdsi.com on or before the seventh (7th) day after execution. Additionally, a confirmation of said revocation must be mailed, post-marked on or before the seventh
day after execution, to Lauren Kiser at 4131 ParkLake Avenue, Ste. 225, Raleigh, North Carolina 27612. This Agreement shall become effective on the first day following the expiration of the Revocation Period (the “Effective Date”).

 9. Section 409A of the Internal Revenue Code. 

(a) Parties’ Intent. The parties intend that all payments or benefits hereunder shall either qualify for an exemption from or
comply with the applicable rules governing non-qualified deferred compensation under Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and the regulations
thereunder (collectively, “Section 409A”) and all provisions of this Agreement shall be construed in a manner consistent with such intention. If any provision of this Agreement (or of any award of compensation, including equity
compensation or benefits) would cause De Paolantonio to incur any additional tax or interest under Section 409A, the Company shall, upon the specific request of De Paolantonio , use its reasonable business efforts to in good faith reform such
provision to be exempt from, or comply with, Code Section 409A; provided, that to the maximum extent practicable, the original intent and economic benefit to De Paolantonio and the Company of the applicable provision shall be maintained,
and the Company shall have no obligation to make any changes that could create any material additional economic cost or loss of material benefit to the Company. 

(b) Release Requirement. If a payment that is deferred compensation subject to Section 409A is subject to satisfaction of a
release requirement and the period for satisfying the release requirement begins in one calendar year and ends in the following calendar year (the “Release Satisfaction Period”), then any amount becoming payable during the Release
Satisfaction Period shall not be paid until the later calendar year. 
 (c) Separation from Service. A termination of employment or
separation from service shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits that constitute nonqualified deferred compensation within the meaning of
Section 409A upon or following a termination of employment or separation from service unless such termination also constitutes a “Separation from Service” within the meaning of Section 409A and, for purposes of any such
provision of this Agreement, references to a “termination,” “termination of employment,” “separation from service” or like terms shall mean Separation from Service. 

(d) Delayed Distribution to Specified Employees. If the Company determines in accordance with Sections 409A and 416(i) of the Code and
the regulations promulgated thereunder, in the Company’s sole discretion, that a delay in benefits provided under this Agreement is necessary to comply with Code Section 409A(A)(2)(B)(i) since De Paolantonio is a Specified Employee
thereunder, then any post separation payments and any continuation of benefits or reimbursement of benefit costs provided by this Agreement, and not otherwise exempt from Section 409A, shall be delayed for a period of six (6) months
following the date of De Paolantonio’s Separation from Service (as defined by Section 409A) (the “409A Delay Period”). In such event, any post separation payments and the cost of any continuation of benefits provided under
this Agreement that would otherwise be due and payable to De Paolantonio during the 409A Delay Period shall not commence until, and shall be made to De Paolantonio in a lump sum cash amount on the first business day after the date that is six
(6) months following De Paolantonio’s Separation from Service and in such event the initial payment shall include a catch-up amount covering amounts that would otherwise have been paid during the six-month period following De Paolantonio’s Separation from Service. 

  
 7 

 10. Defend Trade Secrets Act. Pursuant to the federal Defend Trade Secrets Act of
2016, De Paolantonio 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. 
 11. Miscellaneous. 

(a) If any portion or provision of this Agreement (including, without limitation, any portion or provision of any section of the Employee Non-Competition Agreement) shall to any extent be declared illegal or unenforceable by a court of competent jurisdiction, then the remainder of this Agreement, or the application of such portion or provision in
circumstances other than those as to which it is so declared illegal or unenforceable, shall not be affected thereby, and each portion and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. 

(b) The Parties agree that the failure of a party at any time to require performance of any provision of this Agreement shall not affect,
diminish, obviate or void in any way the party’s full right or ability to require performance of the same or any other provision of this Agreement at any time thereafter. 

(c) This Agreement shall inure to the benefit of and shall be binding upon De Paolantonio, his heirs, administrators, representatives, and
executors, and upon the successors and assigns of the Company. De Paolantonio may not (except by operation of law upon his death) assign or delegate his rights or obligations under this Agreement without the written consent of the Company. The
Company’s payment obligations to De Paolantonio set forth in Section 2 shall survive his death or disability prior to the Retirement Date and, in the event of his death, will be paid to his heirs and assigns as applicable. 

(d) The headings of the paragraphs of this Agreement are for convenience only and are not binding on any interpretation of this Agreement.

 (e) This Agreement may be executed in any number of counterparts. PDF and facsimile signatures shall have the same legal effect as
originals. 
 DE PAOLANTONIO ACKNOWLEDGES THAT HE HAS HAD OVER TWENTY-ONE (21) CALENDAR DAYS TO CONSIDER
THIS AGREEMENT WHICH CONTAINS A GENERAL RELEASE AND HAS BEEN ADVISED TO CONSULT WITH AN ATTORNEY PRIOR TO HIS SIGNING OF THIS AGREEMENT AND GENERAL RELEASE 

HAVING ELECTED TO EXECUTE THIS AGREEMENT, TO FULFILL THE PROMISES AND TO RECEIVE THE SUMS AND BENEFITS CONTAINED HEREIN, DE PAOLANTONIO FREELY AND KNOWINGLY,
AND AFTER DUE CONSIDERATION, ENTERS INTO THIS AGREEMENT INTENDING TO WAIVE SETTLE AND RELEASE ALL CLAIMS HE HAS OR MIGHT HAVE AGAINST THE COMPANY. 
 The
parties have executed this Agreement as of the dates set forth below. 

  
 8 

 
			
	BIODELIVERY SCIENCES
INTERNATIONAL, INC.
		
	By:	 	/s/ Herm Cukier
	Its:	 	Chief Executive Officer
	Date:	 	January 25, 2018

  

			
	/s/ Ernest R. De Paolantonio
	Ernest R. De Paolantonio
		
	Date:	 	January 23, 2018

  
 9 

 Exhibit A 

Supplemental Release 
 As a conditions of
receiving the benefits as set forth in the Transitional Services and Separation Agreement, dated January 23, 2019 (the “Agreement”) between Ernest R. De Paolantonio and BioDelivery Sciences International, Inc. (the
“Company”), Mr. De Paolantonio and the Company hereby extends Section 3 of the Agreement (“Release of Claims”) to any claims that may have arisen between the date Mr. De Paolantonio and the Company
entered into the Agreement and their signature dates below. This Supplemental Release must be entered into within ten (10) days after the Retirement Date (as that term is defined in the Agreement). 

 

					
			
	   
	 		 	   

	Ernest R. De Paolantonio	 		 	Date

  

					
	BioDelivery Sciences International, Inc	 		 	Date: ______________________Exhibit 10.1

 

DATED
January 24, 2019

 

 

 

 

 

 

PACIFIC
GREEN TECHNOLOGIES INC.

as
Company

 

 

-and-

 

 

IAIN
LEES

as
Employee

 

 

 

 

 

 

 

 

 

EMPLOYMENT
CONTRACT

 

 

 

     

     

    

 

	1.	 	INTERPRETATION	 	3
	2.	 	TERM OF APPOINTMENT	 	4
	3.	 	EMPLOYEE WARRANTIES	 	4
	4.	 	DUTIES AND OBLIGATIONS	 	5
	5.	 	PLACE OF WORK	 	6
	6.	 	HOURS OF WORK	 	7
	7.	 	SALARY	 	7
	8.	 	EXPENSES	 	7
	9.	 	HOLIDAYS	 	8
	10.	 	RESTRICTIVE COVENANTS	 	8
	11.	 	INCAPACITY	 	10
	12.	 	CONFIDENTIAL INFORMATION	 	10
	13.	 	PAYMENT IN LIEU OF NOTICE	 	11
	14.	 	TERMINATION WITHOUT NOTICE	 	12
	15.	 	OBLIGATIONS ON TERMINATION	 	12
	16.	 	DISCIPLINARY AND GRIEVANCE PROCEDURES	 	14
	17.	 	PENSIONS	 	14
	18.	 	DATA PROTECTION	 	14
	19.	 	COLLECTIVE AGREEMENTS	 	15
	20.	 	RECONSTRUCTION AND AMALGAMATION	 	15
	21.	 	NOTICES	 	15
	22.	 	ENTIRE AGREEMENT	 	15
	23.	 	VARIATION	 	16
	24.	 	COUNTERPARTS	 	16
	25.	 	THIRD PARTY RIGHTS	 	16
	26.	 	GOVERNING LAW	 	16
	27.	 	JURISDICTION	 	16

 

     

     

    

  

This
agreement is dated January 24, 2019

 

PARTIES

 

		(1)	PACIFIC
                                         GREEN TECHNOLOGIES INC., a company incorporated in Delaware, USA, with a registered
                                         address situated at 3500 S. DuPont Highway, Dover, Kent County 19901, USA (Company)

 

		(2)	IAIN
                                         LEES of 7 Glenmore Manor, Lambeg, County Antrim, BT27 4BZ, UK (Employee)

 

AGREED
TERMS

 

		1.	INTERPRETATION 

 

		1.1	The
                                         definitions and rules of interpretation in this Clause 1 apply in this agreement.

 

Appointment:
 the employment of the Employee by the Company on the terms of this agreement.

 

Associated
Employer:  has the meaning given to it in the Employment Rights Act 1996.

 

Board:
 the board of directors of the Company (including any committee of the board duly appointed by it).

 

Commencement
Date: April 1, 2019.

 

Confidential
Information: information (whether or not recorded in documentary form, or stored on any magnetic or optical disk or memory)
relating to the business, products, affairs and finances of any Group Company for the time being confidential to any Group Company
and trade secrets including, without limitation, technical data and know-how relating to the business of any Group Company or
any of their business contacts.

 

Garden
Leave:  any period during which the Company has exercised its rights under Clause 15.

 

Group
Company: the Company, its Subsidiaries or Holding Companies from time to time and any Subsidiary of any Holding Company from
time to time.

 

Incapacity:
 any sickness, injury or other medical disorder or condition which prevents the Employee from carrying out his duties.

 

NPBT:
Net profit before taxes of the Group on a consolidated basis over sales (excluding exceptional items and acquisitions in the
relevant year) subject to OTOB deliveries of scrubbers.

 

OTOB:
On time and on budget as per agreements with ship-owners and other purchasers of scrubbers.

 

PBT:
Consolidated profit of the Group after the deduction of all operating, interest and revenue expenses but before the payment
of corporation tax.

 

Restricted
Business:  the business of the Company and any Group Company with which the Employee was involved to a material extent
in the 12 months before Termination.

 

Restricted
Customer:  any firm, company or person who, during the 12 months before Termination, was a customer or prospective customer
of or was in the habit of dealing with the Company or any Group Company with whom the Employee had contact or about whom he became
aware or informed in the course of employment.

 

    	 	3	 

     

    

 

Restricted
Person:  anyone employed or engaged by the Company or any Group Company at a senior executive level and who could materially
damage the interests of the Company or any Group Company if they were involved in any Capacity in any business concern which competes
with any Restricted Business and with whom the Employee dealt in the 12 months before Termination in the course of employment.

 

SSP:
 statutory sick pay.

 

Subsidiary
and Holding Company:  in relation to a company mean “subsidiary” and “holding company” as defined
in section 1159 of the Companies Act 2006 and a company shall be treated, for the purposes only of the membership requirement
contained in subsections 1159(1)(b) and (c), as a member of another company even if its shares in that other company are registered
in the name of (a) another person (or its nominee), whether by way of security or in connection with the taking of security, or
(b) a nominee.

 

		1.2	The
                                         headings in this agreement are inserted for convenience only and shall not affect its
                                         construction.

 

		1.3	A
                                         reference to a particular law is a reference to it as it is in force for the time being
                                         taking account of any amendment, extension, or re-enactment and includes any subordinate
                                         legislation for the time being in force made under it.

 

		1.4	Unless
                                         the context otherwise requires, a reference to one gender shall include a reference to
                                         the other genders.

 

		1.5	Unless
                                         the context otherwise requires, words in the singular include the plural and in the plural
                                         include the singular.

 

		1.6	The
                                         schedules to this agreement form part of (and are incorporated into) this agreement.

 

		2.	TERM
                                         OF APPOINTMENT  

 

		2.1	The
                                         Appointment shall be deemed to have commenced on the Commencement Date and shall continue,
                                         subject to the remaining terms of this agreement, until terminated by either party giving
                                         the other not less than 6 months’ prior notice in writing.

 

		2.2	The
                                         Employee consents to the transfer of his employment under this agreement to an Associated
                                         Employer at any time during the Appointment.

 

		3.	EMPLOYEE
                                         WARRANTIES  

 

		3.1	The
                                         Employee represents and warrants to the Company that, by entering into this agreement
                                         or performing any of his obligations under it, he will not be in breach of any court
                                         order or any express or implied terms of any contract or other obligation binding on
                                         him and undertakes to indemnify the Company against any claims, costs, damages, liabilities
                                         or expenses which the Company may incur as a result if he is in breach of any such obligations.

 

		3.2	The
                                         Employee warrants that he is entitled to work in the United Kingdom without any additional
                                         approvals and will notify the Company immediately if he ceases to be so entitled during
                                         the Appointment.

 

    	 	4	 

     

    

 

		4.	DUTIES
                                         AND OBLIGATIONS  

 

		4.1	The
                                         Employee shall be appointed as “Chief Operating Officer” of the Company
                                         or such other role as the Company considers appropriate and the Employee shall be responsible
                                         for the duties noted in Clause 4.2.

 

		4.2	The
                                         Employee’s responsibilities include the following:

 

		(a)	designing
                                         and implementing business strategies, plans and procedures for the Group;

 

		(b)	setting
                                         comprehensive goals for performance and growth of the Group;

 

		(c)	recruiting
                                         a Group Finance Director or Chief Financial Officer and implementing financial
                                         reporting and systems;

 

		(d)	responsibility
                                         for the daily operations of the Group and the performance of its key executives
                                         including IT, marketing, sales and finance;

 

		(e)	developing
                                         in conjunction with the Board performance metrics for the Group based up
                                         on monthly, quarterly and annual targets by department, division and company
                                         within the Group;

 

		(f)	on
                                         developing and implementing an acquisition strategy in conjunction with the
                                         Board; and

 

		(g)	managing
                                         the relationship with PowerChina and other partners, counterparties and stakeholders.

 

		4.3	The
                                         Employee will be appointed a director of the following companies in the Group but without
                                         additional compensation:

 

		(a)	the
                                         Company;

 

		(b)	Pacific
                                         Green Marine Technologies Limited;

 

		(c)	Pacific
                                         Green Marine Technologies Inc.; and

 

		(d)	any
                                         other Group Company as the Board shall direct.

 

		4.4	During
                                         the Appointment the Employee shall:

 

		(a)	act
                                         as a director of the Company and carry out duties on behalf of any other Group Company
                                         including, if so required by the Board, acting as an officer or consultant of any such
                                         Group Company;

 

		(b)	comply
                                         with the articles of association (as amended from time to time) of the Company[ and any
                                         other Group Company of which he is a director;

 

		(c)	abide
                                         by any statutory, fiduciary or common-law duties to any Group Company of which he is
                                         a director;

 

		(d)	not
                                         do anything that would cause him to be disqualified from acting as a director

 

		(e)	unless
                                         prevented by Incapacity, devote the whole of his time, attention and abilities to the
                                         business of the Company and any Group Company of which he is an officer or consultant;

 

    	 	5	 

     

    

 

		(f)	do
                                         such things as are reasonable and necessary to ensure compliance by himself and the Company
                                         or any relevant Group Company with the Companies Act 2006 and any similar rules
                                         in any other applicable jurisdiction including the rules and regulations of the Nasdaq;

 

		(g)	diligently
                                         exercise such powers and perform such duties as may from time to time be assigned to
                                         him by the Company together with such person or persons as the Company may appoint to
                                         act jointly with him;

 

		(h)	comply
                                         with all reasonable and lawful directions given to him by the Company;

 

		(i)	promptly
                                         make such reports to the Board in connection with the affairs of any Group Company on
                                         such matters and at such times as are reasonably required; and

 

		(j)	use
                                         his best endeavours to promote, protect, develop and extend the business of any Group
                                         Company.

 

		4.5	Subject
                                         to the other provisions of this Clause, during the Appointment the Employee shall not,
                                         except as a representative of the Company or with the prior written approval of the Board,
                                         whether paid or unpaid, be directly or indirectly engaged, concerned or have any financial
                                         interest in any capacity in any other business, trade, profession or occupation (or the
                                         setting up of any business, trade, profession or occupation. Notwithstanding the previous
                                         sentence, the Employee may hold an investment by way of shares or other securities of
                                         not more than 5% of the total issued share capital of any company (whether or not it
                                         is listed or dealt in on a recognised stock exchange) where such company does not carry
                                         on a business similar to or competitive with any business for the time being carried
                                         on by any Group Company.

 

		4.6	The
                                         Employee shall comply with the Company’s anti-corruption and bribery policy and
                                         related procedures at all times.

 

		4.7	All
                                         documents, manuals, hardware and software provided for the Employee’s use by the
                                         Company, and any data or documents (including copies) produced, maintained or stored
                                         on the Company’s computer systems or other electronic equipment (including mobile
                                         phones), remain the property of the Company.

 

		5.	PLACE
                                         OF WORK  

 

		5.1	The
                                         Employee’s normal place of work is at the place of business of the Company in London,
                                         England or such other place within Europe which the Board may reasonably require for
                                         the proper performance and exercise of his duties.

 

		5.2	The
                                         Employee agrees to travel on any Group Company’s business (both within the United
                                         Kingdom, the People’s Republic of China, Canada, United States of America and elsewhere)
                                         as may be required for the proper performance of his duties under the Appointment.

 

		5.3	During
                                         the Appointment the Employee shall not be required to work outside the United Kingdom
                                         for any continuous period of more than 4 weeks.

 

    	 	6	 

     

    

 

		6.	HOURS
                                         OF WORK  

 

The
Employee’s normal working hours shall be 0930 to 1830 on Mondays to Fridays and such additional hours as are necessary for
the proper performance of his duties. The Employee acknowledges that he shall not receive further remuneration in respect of such
additional hours.

 

		7.	SALARY 

 

		7.1	The
                                         Employee shall be paid an initial salary of US$250,000 per annum. The Employee will be
                                         able to sacrifice some of this salary in exchange for pension contributions, such that
                                         these salary alternatives will cost an equivalent amount to the Company as the salary
                                         sacrificed.

 

		7.2	The
                                         Employee’s salary shall accrue from day to day at a rate of 1/365 of the Employee’s
                                         annual salary and be payable monthly in arrears on or about 27th of each month directly
                                         into the Employee’s bank or building society.

 

		7.3	The
                                         Employee’s salary shall be reviewed by the Board annually, the first such review
                                         to take place on the anniversary of this agreement The Company is under no obligation
                                         to award an increase following a salary review. There will be no review of the salary
                                         after notice has been given by either party to terminate the Appointment.

 

		7.4	The
                                         Employee may be awarded certain performance related bonuses in accordance with the Schedule
                                         of this Agreement. References in this Schedule to shares and/or stock are references
                                         to the shares/stock of the Company.

 

		7.5	During
                                         the Appointment and for six years following its termination the Employee shall be entitled
                                         to be covered by a policy of directors’ and officers’ liability insurance
                                         on terms no less favourable than those in place from time to time for other members of
                                         the Board. A copy of the policy is available from the Board.

 

		7.6	The
                                         Company may deduct from the salary, or any other sums owed to the Employee, any money
                                         owed to any Group Company by the Employee.

 

		8.	EXPENSES  

 

		8.1	The
                                         Company shall reimburse (or procure the reimbursement of) all reasonable expenses wholly,
                                         properly and necessarily incurred by the Employee in the course of the Appointment, subject
                                         to production of VAT receipts or other appropriate evidence of payment.

 

		8.2	The
                                         Company shall promptly reimburse the Employee for suitable and agreed Hotel accommodation
                                         in London (payable monthly on a pro rata basis) for the first 3 months of his employment.
                                         After this 3 month period the parties shall agree a longer term arrangement in relation
                                         to the Employee’s accommodation.

 

		8.3	The
                                         Employee shall abide by the Company’s policies on expenses as communicated to him
                                         from time to time.

 

		8.4	Any
                                         credit card supplied to the Employee by the Company shall be used only for expenses incurred
                                         by him in the course of the Appointment.

 

    	 	7	 

     

    

 

		9.	HOLIDAYS  

 

		9.1	The
                                         Company’s holiday year runs between 1 January and 31 December. If the Appointment
                                         commences or terminates part way through a holiday year, the Employee’s entitlement
                                         during that holiday year shall be calculated on a pro-rata basis rounded up to the nearest
                                         half day.

 

		9.2	The
                                         Employee shall be entitled to 20 days’ paid holiday in each holiday year together
                                         with the usual public holidays in England and Wales.

 

		9.3	Holiday
                                         shall be taken at such time or times as shall be approved in advance by the Board. The
                                         Employee shall not carry forward any accrued but untaken holiday entitlement to a subsequent
                                         holiday year unless the Employee has been prevented from taking it in the relevant holiday
                                         year by one of the following: a period of sickness absence or statutory maternity leave,
                                         paternity, adoption, parental or shared parental leave. In cases of sickness absence,
                                         carry-over is limited to 2 weeks’ holiday per year less any leave taken during
                                         the holiday year that has just ended. Any such carried over holiday which is not taken
                                         within eighteen months of the end of the relevant holiday year will be lost.

 

		9.4	If
                                         the Company has terminated or would be entitled to terminate the Appointment under Clause
                                         13 or if the Employee has terminated the Appointment in breach of this agreement any
                                         payment due under Clause 9 shall be limited to the Employee’s statutory entitlement
                                         under the Working Time Regulations 1998 (SI 1998/1833) and any paid holidays (including
                                         paid public holidays) taken shall be deemed first to have been taken in satisfaction
                                         of that statutory entitlement.

 

		9.5	If
                                         on termination of the Appointment the Employee has taken more holiday than his accrued
                                         holiday entitlement, the Company shall be entitled to deduct the excess holiday pay from
                                         any payments due to the Employee.

 

		9.6	If
                                         either party has served notice to terminate the Appointment, the Board may require the
                                         Employee to take any accrued but unused holiday entitlement during the notice period.

 

		10.	RESTRICTIVE
                                         COVENANTS  

 

		10.1	In
                                         order to protect the Confidential Information and business connections of the Company
                                         and each Group Company to which he has access as a result of the Appointment, the Employee
                                         covenants with the Company (for itself and as trustee and agent for each Group Company)
                                         that he shall not:

 

		(a)	for
                                         12 months after Termination solicit or endeavour to entice away from the Company or any
                                         Group Company the business or custom of a Restricted Customer with a view to providing
                                         goods or services to that Restricted Customer in competition with any Restricted Business;

 

		(b)	for
                                         12 months after Termination in the course of any business concern which is in competition
                                         with any Restricted Business, offer to employ or engage or otherwise endeavour to entice
                                         away from the Company or any Group Company any Restricted Person;

 

    	 	8	 

     

    

 

		(c)	for
                                         12 months after Termination in the course of any business concern which is in competition
                                         with any Restricted Business, employ or engage or otherwise facilitate the employment
                                         or engagement of any Restricted Person, whether or not such person would be in breach
                                         of contract as a result of such employment or engagement;

 

		(d)	for
                                         12 months after Termination, be involved in any Capacity with any business concern which
                                         is (or intends to be) in competition with any Restricted Business;

 

		(e)	for
                                         12 months after Termination be involved with the provision of goods or services to (or
                                         otherwise have any business dealings with) any Restricted Customer in the course of any
                                         business concern which is in competition with any Restricted Business; or

 

		(f)	at
                                         any time after Termination, represent himself as connected with the Company or any Group
                                         Company in any Capacity, other than as a former employee, or use any registered business
                                         names or trading names associated with the Company or any Group Company.

 

		10.2	None
                                         of the restrictions in Clause 10.1 shall prevent the Employee from:

 

		(a)	holding
                                         an investment by way of shares or other securities of not more than 5% of the total issued
                                         share capital of any company, whether or not it is listed or dealt in on a recognised
                                         stock exchange; or

 

		(b)	being
                                         engaged or concerned in any business concern insofar as the Employee’s duties or
                                         work shall relate solely to geographical areas where the business concern is not in competition
                                         with any Restricted Business

 

		10.3	The
                                         restrictions imposed on the Employee by this Clause 10 apply to him acting:

 

		(a)	directly
                                         or indirectly; and

 

		(b)	on
                                         his own behalf or on behalf of, or in conjunction with, any firm, company or person.

 

		10.4	The
                                         periods for which the restrictions in Clause 10 apply shall be reduced by any period
                                         that the Employee spends on Garden Leave immediately before Termination.

 

		10.5	The
                                         Company and the Employee entered into the restrictions in this Clause 10 having been
                                         separately legally advised.

 

		10.6	Each
                                         of the restrictions in this Clause 10 is intended to be separate and severable. If any
                                         of the restrictions shall be held to be void but would be valid if part of their wording
                                         were deleted, such restriction shall apply with such deletion as may be necessary to
                                         make it valid or effective.

 

		10.7	If
                                         the Employee’s employment is transferred to any firm, company, person or entity
                                         other than a Group Company (the “New Employer”) pursuant to the Transfer
                                         of Undertakings (Protection of Employment) Regulations 2006, the Employee will, if required,
                                         enter into an agreement with the New Employer containing post-termination restrictions
                                         corresponding to those restrictions in this Clause 10, protecting the confidential information,
                                         trade secrets and business connections of the New Employer.

 

    	 	9	 

     

    

 

		10.8	The
                                         Employee will, at the request and expense of the Company, enter into a separate agreement
                                         with any Group Company in which he agrees to be bound by restrictions corresponding to
                                         those restrictions in this Clause 10 (or such of those restrictions as the Company deems
                                         appropriate) in relation to that Group Company.

 

		11.	INCAPACITY  

 

		11.1	If
                                         the Employee is absent from work due to Incapacity, the Employee shall notify the Board
                                         of the reason for the absence as soon as possible but no later than 10am on the first
                                         day of absence.

 

		11.2	The
                                         Employee shall certify his absence in accordance with the Company sickness policy from
                                         time to time.

 

		11.3	Subject
                                         to the Employee’s compliance with this agreement and the Company sickness policy
                                         (as amended from time to time), the Employee shall receive sick pay in accordance with
                                         the Company sickness policy, which may be amended from time to time. The Employee’s
                                         qualifying days for SSP purposes are Monday to Friday.

 

		11.4	Pension
                                         contributions will continue as normal while the Employee is paid at the full rate in
                                         accordance with Clause 10.3.

 

		11.5	The
                                         Employee agrees to consent to medical examinations (at the Company’s expense) by
                                         a doctor nominated by the Company should the Company so require.

 

		11.6	If
                                         the Incapacity is or appears to be occasioned by actionable negligence, nuisance or breach
                                         of any statutory duty on the part of a third party in respect of which damages are or
                                         may be recoverable, the Employee shall immediately notify the Board of that fact and
                                         of any claim, settlement or judgment made or awarded in connection with it and all relevant
                                         particulars that the Board may reasonably require. The Employee shall if required by
                                         the Board, co-operate in any related legal proceedings and refund to the Company that
                                         part of any damages or compensation recovered by him relating to the loss of earnings
                                         for the period of the Incapacity as the Board may reasonably determine less any costs
                                         borne by him in connection with the recovery of such damages or compensation, provided
                                         that the amount to be refunded shall not exceed the total amount paid to the Employee
                                         by the Company in respect of the period of Incapacity.

 

		11.7	The
                                         rights of the Company to terminate the Appointment under the terms of this agreement
                                         apply even when such termination would or might cause the Employee to forfeit any entitlement
                                         to sick pay, permanent health insurance or other benefits.

 

		12.	CONFIDENTIAL
                                         INFORMATION  

 

		12.1	The
                                         Employee acknowledges that in the course of the Appointment he will have access to Confidential
                                         Information. The Employee has therefore agreed to accept the restrictions in this Clause
                                         11.

 

    	 	10	 

     

    

 

		12.2	The
                                         Employee shall not (except in the proper course of his duties), either during the Appointment
                                         or at any time after its termination (however arising), use or disclose to any person,
                                         company or other organisation whatsoever (and shall use his best endeavours to prevent
                                         the publication or disclosure of) any Confidential Information. This shall not apply
                                         to:

 

		(a)	any
                                         use or disclosure authorised by the Board or required by law;

 

		(b)	any
                                         information which is already in, or comes into, the public domain other than through
                                         the Employee’s unauthorised disclosure; or

 

		(c)	any
                                         protected disclosure within the meaning of section 43A of the Employment Rights Act 1996.

  

		13.	PAYMENT
                                         IN LIEU OF NOTICE  

 

		13.1	Notwithstanding
                                         Clause 2, the Company may, in its sole and absolute discretion, terminate the Appointment
                                         at any time and with immediate effect by notifying the Employee that the Company is exercising
                                         its right under this Clause 13 and that it will make within 28 days a payment in lieu
                                         of notice (Payment in Lieu), or the first instalment of any Payment in Lieu, to
                                         the Employee. This Payment in Lieu will be equal to the basic salary (as at the date
                                         of termination) which the Employee would have been entitled to receive under this agreement
                                         during the notice period referred to in Clause 2 (or, if notice has already been given,
                                         during the remainder of the notice period) less income tax and National Insurance contributions.
                                         For the avoidance of doubt, the Payment in Lieu shall not include any element in relation
                                         to:

 

		(a)	any
                                         bonus or commission payments that might otherwise have been due during the period for
                                         which the Payment in Lieu is made;

 

		(b)	any
                                         payment in respect of benefits which the Employee would have been entitled to receive
                                         during the period for which the Payment in Lieu is made; and

 

		(c)	any
                                         payment in respect of any holiday entitlement that would have accrued during the period
                                         for which the Payment in Lieu is made.

 

		13.2	The
                                         Company may pay any sums due under Clause 13.1 in equal monthly instalments until the
                                         date on which the notice period referred to at Clause 2 would have expired if notice
                                         had been given. The Employee shall be obliged to seek alternative income during this
                                         period and to notify the Company of any income so received. The instalment payments shall
                                         then be reduced by the amount of such income.

 

		13.3	The
                                         Employee shall have no right to receive a Payment in Lieu unless the Company has exercised
                                         its discretion in Clause 13.1. Nothing in this Clause 12 shall prevent the Company from
                                         terminating the Appointment in breach.

 

		13.4	Notwithstanding
                                         Clause 13.1 the Employee shall not be entitled to any Payment in Lieu if the Company
                                         would otherwise have been entitled to terminate the Appointment without notice in accordance
                                         with Clause 14. In that case the Company shall also be entitled to recover from the Employee
                                         any Payment in Lieu (or instalments thereof) already made.

 

    	 	11	 

     

    

 

		14.	TERMINATION
                                         WITHOUT NOTICE 

 

		14.1	The
                                         Company may also terminate the Appointment with immediate effect without notice and with
                                         no liability to make any further payment to the Employee (other than in respect of amounts
                                         accrued due at the date of termination) if the Employee:

 

		(a)	is
                                         guilty of any gross misconduct affecting the business of any Group Company;

 

		(b)	commits
                                         any serious or repeated breach or non-observance of any of the provisions of this agreement
                                         or refuses or neglects to comply with any reasonable and lawful directions of the Company;

 

		(c)	is,
                                         in the reasonable opinion of the Board, negligent and incompetent in the performance
                                         of his duties;

 

		(d)	is
                                         declared bankrupt or makes any arrangement with or for the benefit of his creditors or
                                         has a county court administration order made against him under the County Court Act 1984;

 

		(e)	is
                                         convicted of any criminal offence (other than an offence under any road traffic legislation
                                         in the United Kingdom or elsewhere for which a fine or non-custodial penalty is imposed)
                                         or any offence under any regulation or legislation relating to insider dealing;

 

		(f)	is,
                                         in the opinion of a medical practitioner physically or mentally incapable of performing
                                         their duties and may remain so for more than three months and the medical practitioner
                                         has given a medical opinion to the Board to that effect;

 

		(g)	ceases
                                         to be eligible to work in the United Kingdom;

 

		(h)	is
                                         guilty of any fraud or dishonesty or acts in any manner which in the opinion of the Board
                                         brings or is likely to bring the Employee or any Group Company into disrepute or is materially
                                         adverse to the interests of any Group Company;

 

		(i)	is
                                         in breach of the Company’s anti-corruption and bribery policy and related procedures;
                                         or

 

		(j)	is
                                         guilty of a serious breach of any rules issued by the Company from time to time regarding
                                         its electronic communications systems.

 

		14.2	The
                                         rights of the Company under Clause 14.1 are without prejudice to any other rights that
                                         it might have at law to terminate the Appointment or to accept any breach of this agreement
                                         by the Employee as having brought the agreement to an end. Any delay by the Company in
                                         exercising its rights to terminate shall not constitute a waiver thereof. 

 

		15.	OBLIGATIONS
                                         ON TERMINATION  

 

		15.1	On
                                         termination of the Appointment (however arising) the Employee shall:

 

		(a)	Immediately
                                         deliver to the Company all documents, books, materials, records, correspondence, papers
                                         and information (on whatever media and wherever located) relating to the business or
                                         affairs of any Group Company or its business contacts, any keys, credit card and any
                                         other property of any Group Company including any car provided to the Employee, which
                                         is in his possession or under his control;

 

    	 	12	 

     

    

 

		(b)	irretrievably
                                         delete any information relating to the business of any Group Company stored on any magnetic
                                         or optical disk or memory and all matter derived from such sources which is in his possession
                                         or under his control outside the Company’s premises; and

 

		(c)	provide
                                         a signed statement that he has complied fully with his obligations under this Clause
                                         15.1 together with such reasonable evidence of compliance as the Company may request.

 

		15.2	On
                                         termination of the Appointment however arising the Employee shall not be entitled to
                                         any compensation for the loss of any rights or benefits under any share option, bonus,
                                         long-term incentive plan or other profit sharing scheme operated by any Group Company
                                         in which he may participate.

 

		15.3	Except
                                         with the prior approval of the Board, or as provided in the articles of association of
                                         any Group Company of which he is a director, the Employee shall not resign as a director
                                         of any Group Company.

 

		15.4	If
                                         during the Appointment the Employee ceases to be a director of any Group Company (otherwise
                                         than by reason of his death, resignation or disqualification pursuant to the articles
                                         of association of the relevant Group Company, as amended from time to time, or by statute
                                         or court order) the Appointment shall continue with the Employee as an employee only
                                         and the terms of this agreement (other than those relating to the holding of the office
                                         of director) shall continue in full force and effect. The Employee shall have no claims
                                         in respect of such cessation of office.

 

		15.5	Following
                                         service of notice to terminate the Appointment by either party, or if the Employee purports
                                         to terminate the Appointment in breach of contract, the Board may by written notice place
                                         the Employee on Garden Leave for the whole or part of the remainder of the Appointment.

 

		15.6	During
                                         any period of Garden Leave:

 

		(a)	the
                                         Company shall be under no obligation to provide any work to the Employee and may revoke
                                         any powers the Employee holds on behalf of any Group Company;

 

		(b)	the
                                         Company may require the Employee to carry out alternative duties or to only perform such
                                         specific duties as are expressly assigned to the Employee, at such location (including
                                         the Employee’s home) as the Company may decide;

 

		(c)	the
                                         Employee shall continue to receive his basic salary and all contractual benefits in the
                                         usual way and subject to the terms of any benefit arrangement;

 

		(d)	the
                                         Employee shall remain an employee of the Company and bound by the terms of this agreement
                                         (including any implied duties of good faith and fidelity);

 

		(e)	the
                                         Employee shall ensure that the CEO of the Company knows where he will be and how he can
                                         be contacted during each working day (except during any periods taken as holiday in the
                                         usual way);

 

		(f)	the
                                         Company may exclude the Employee from any premises of any Group Company; and

 

		(g)	the
                                         Company may require the Employee not to contact or deal with (or attempt to contact or
                                         deal with) any officer, employee, consultant, client, customer, supplier, agent, distributor,
                                         shareholder, adviser or other business contact of the Company or any Group Company.

 

    	 	13	 

     

    

 

		16.	DISCIPLINARY
                                         AND GRIEVANCE PROCEDURES  

 

		16.1	The
                                         Employee is subject to the Company’s disciplinary and grievance procedures which
                                         shall be notified to the Employee. These procedures do not form part of the Employee’s
                                         contract of employment.

 

		16.2	If
                                         the Employee wants to raise a grievance, he may apply in writing to a director in accordance
                                         with the Company’s grievance procedure.

 

		16.3	If
                                         the Employee wishes to appeal against a disciplinary decision he may apply in writing
                                         to the CEO of the Company in accordance with the Company’s disciplinary procedure.

 

		16.4	The
                                         Company may suspend the Employee from any or all of his duties for no longer than is
                                         necessary to investigate any disciplinary matter involving the Employee or so long as
                                         is otherwise reasonable while any disciplinary procedure against the Employee is outstanding.

 

		16.5	During
                                         any period of suspension:

 

		(a)	the
                                         Employee shall continue to receive his basic salary and all contractual benefits in the
                                         usual way and subject to the terms of any benefit arrangement;

 

		(b)	the
                                         Employee shall remain an employee of the Company and bound by the terms of this agreement;

 

		(c)	the
                                         Employee shall ensure that the Board knows where he will be and how he can be contacted
                                         during each working day (except during any periods taken as holiday in the usual way);

 

		(d)	the
                                         Board may exclude the Employee from his place of work or any other premises of any Group
                                         Company; and

 

		(e)	the
                                         Board may require the Employee not to contact or deal with (or attempt to contact or
                                         deal with) any officer, employee, consultant, client, customer, supplier, agent, distributor,
                                         shareholder, adviser or other business contact of any Group Company.

 

		17.	PENSIONS  

 

Please
refer to Clause 7.1.

 

		18.	DATA
                                         PROTECTION  

 

		18.1	The
                                         Company will collect and process information relating to the Employee in accordance with
                                         usual company policies from time to time.

 

		18.2	The
                                         Employee shall comply with the Data protection policy when handling personal data in
                                         the course of employment including personal data relating to any employee, worker, contractor,
                                         customer, client, supplier or agent of the Company. The Employee will also comply with
                                         the Company’s IT and communications systems policy and Social media policy.

 

		18.3	Failure
                                         to comply with the Data protection policy or any of the policies listed above in Clause
                                         18.2 may be dealt with under our disciplinary procedure and, in serious cases, may be
                                         treated as gross misconduct leading to summary dismissal.

 

    	 	14	 

     

    

 

		19.	COLLECTIVE
                                         AGREEMENTS  

 

There
is no collective agreement which directly affects the Appointment.

 

		20.	RECONSTRUCTION
                                         AND AMALGAMATION 

 

If
the Appointment is terminated at any time by reason of any reconstruction or amalgamation of any Group Company, whether by winding
up or otherwise, and the Employee is offered employment with any concern or undertaking involved in or resulting from the reconstruction
or amalgamation on terms which (considered in their entirety) are no less favourable to any material extent than the terms of
this agreement, the Employee shall have no claim against the Company or any such undertaking arising out of or connected with
the termination.

 

		21.	NOTICES  

 

		21.1	A
                                         notice given to a party under this agreement shall be in writing in the English language
                                         and signed by or on behalf of the party giving it. It shall be delivered by hand or sent
                                         to the party at the address (or email) given in this agreement or as otherwise notified
                                         in writing to the other party.

 

		21.2	Any
                                         such notice shall be deemed to have been received:

 

		(a)	if
                                         delivered by hand, at the time the notice is left at the address or given to the addressee;

 

		(b)	in
                                         the case of pre-paid first class UK post or other next working day delivery service,
                                         at 9.00 am on the second business day after posting or at the time recorded by the delivery
                                         service; or

 

		(c)	in
                                         the case of pre-paid airmail, 9.00 am on the fifth Business Day after posting or at the
                                         time recorded by the delivery service; or

 

		(d)	in
                                         the case of email, one hour after the time of transmission.

 

		21.3	A
                                         notice shall have effect from the earlier of its actual or deemed receipt by the addressee.
                                         For the purpose of calculating deemed receipt:

 

		(a)	all
                                         references to time are to local time in the place of deemed receipt; and

 

		(b)	if
                                         deemed receipt would occur on a Saturday or Sunday or a public holiday when banks are
                                         not open for business, deemed receipt is at 9.00 am on the next business day.

 

		21.4	This
                                         clause does not apply to the service of any proceedings or other documents in any legal
                                         action.

 

		22.	ENTIRE
                                         AGREEMENT  

 

		22.1	This
                                         agreement and any document referred to in it constitutes the entire agreement between
                                         the parties and supersedes and extinguishes all previous agreements, promises, assurances,
                                         warranties, representations and understandings between them, whether written or oral,
                                         relating to its subject matter.

 

    	 	15	 

     

    

 

		22.2	Each
                                         party acknowledges that in entering into this agreement it does not rely on, and shall
                                         have no remedies in respect of, any statement, representation, assurance or warranty
                                         (whether made innocently or negligently) that is not set out in this agreement.

 

		22.3	Each
                                         party agrees that it shall have no claim for innocent or negligent misrepresentation
                                         or negligent misstatement based on any statement in this agreement.

 

		22.4	Nothing
                                         in this clause shall limit or exclude any liability for fraud.

 

		23.	VARIATION  

 

No
variation or agreed termination of this agreement shall be effective unless it is in writing and signed by the parties (or their
authorised representatives).

 

		24.	COUNTERPARTS  

 

		24.1	This
                                         agreement may be executed in any number of counterparts, each of which when executed
                                         and delivered shall constitute a duplicate original, but all the counterparts shall together
                                         constitute the one agreement.

 

		24.2	No
                                         counterpart shall be effective until each party has executed and delivered at least one
                                         counterpart.

 

		25.	THIRD
                                         PARTY RIGHTS 

 

No one other than a party to
this agreement shall have any right to enforce any of its terms.

 

		26.	GOVERNING
                                         LAW  

 

This
agreement and any dispute or claim arising out of or in connection with it or its subject matter or formation (including non-contractual
disputes or claims) shall be governed by and construed in accordance with the law of England and Wales.

 

		27.	JURISDICTION  

 

Each
party irrevocably agrees that the courts of England and Wales shall have exclusive jurisdiction to settle any dispute or claim
arising out of or in connection with this agreement or its subject matter or formation (including non-contractual disputes or
claims).

 

This
agreement has been entered into on the date stated at the beginning of it. 

 

	Signed by Scott Poulter	 	/s/
    Scott Poulter
	for and on behalf of	 	Director
	 	 	 
	Pacific Green Technologies Inc.	 	 
	 	 	 
	Signed by IAIN LEES	 	 
	/s/
    Iain Lees	 	 

 

    	 	16	 

     

    

 

Schedule
– list of bonuses/share options

 

Financial
bonuses

 

		1	0.5%
                                         of PBT, such bonuses to be payable within 6 months of the end of each financial year
                                         of the Group.

 

		2	10%
                                         of improved PBT to agreed company annual forecast as a % of share count and % of
                                         NPBT such percentages and bonuses to be agreed separately.

 

		3	US$50,000
                                         on up-listing of the Company to Nasdaq provided that such event occurs before 31
                                         July 2019 and such bonus to be paid within 3 months of such up-listing.

 

		4	US$25,000
                                         upon the Company reaching a 90 day average bid price of US$6 per share with a daily
                                         liquidity average of 20,000 shares provided that such event occurs 18 months of commencement
                                         of such up-listing and such bonus to be paid within 3 months of such event occurring.

 

		5	US$50,000
                                         upon reaching a 90 day average bid price of US$7.50 per share with a daily liquidity
                                         average of 20,000 shares provided that such event occurs 18 months of commencement of
                                         such up-listing and such bonus to be paid within 3 months of such event occurring. 

 

		6	US$100,000
                                         upon reaching a 90 day average bid price of US$10.00 per share with a daily liquidity
                                         average of 20,000 shares provided that such event occurs 18 months of commencement of
                                         up-listing and such bonus to be paid within 3 months of such event occurring.

 

		7	US$10,000
                                         upon appointing PWC or Deloitte as auditors of the Group on or before 30 April 2019.

 

		8	Such
                                         other discretionary bonus based up on Group exceptional performance in the absolute
                                         discretion of the Company.

 

Shares/option

 

		9	100,000
                                         shares option at US$0.01c subject to signing this agreement on or before 31 January
                                         2019. These share options will be retained by the Employee notwithstanding any termination
                                         of this agreement.

 

		10	100,000
                                         shares option at US$0.01c subject to signing this agreement on or before 31 January
                                         2019 exercisable 36 months after signing this Agreement.

 

		11	100,000
                                         shares option at closing price on date this agreement executed, such option exercisable
                                         after 36 months.

 

		12	100,000
                                         shares option issued at 12 month anniversary of commencement of up-listing to Nasdaq
                                         at 12 month anniversary price, such option exercisable within 18 months of it becoming
                                         effective.

 

		13	50,000
                                         shares issued at up-listing to Nasdaq provided that such up-listing comes into effect
                                         on or before 1st August 2019, such option to be exercised at the price at 60 days prior
                                         to Nasdaq up-listing and exercisable within 18 months of it becoming effective.

 

		14	50,000
                                         shares issued at US$2.70 issued on the date when the stock has traded at a 90 day
                                         average of US$10 per share with a daily liquidity average of 20,000 shares such option
                                         to be exercised within 18 months of it becoming effective

  

	 	END
    OF DOCUMENT

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