Document:

ex_432952.htm

Exhibit 10.1

 

Execution Version

 

Executive Employment Agreement

 

This Executive Employment Agreement (this “Agreement”) is entered into as of October 14, 2022, (the “Effective Date”), by and between The Coretec Group, an Oklahoma corporation located at 600 S. Wagner Rd, Ann Arbor, MI 48103(“Company”), and matthew hoffman, whose address is 5077 Village Drive, Saline, MI 48176 (“Executive”).

 

ARTICLE 1

EFFECT OF AGREEMENT

 

1.1    Effect of Agreement. This Agreement shall be effective as of the Effective Date and shall thereafter remain in effect so long as Executive is employed by Company; provided, however, that the rights and obligations of the parties hereto contained in Articles 5, 6 and 7 of this Agreement, and as otherwise explicitly provided in this Agreement, shall survive any termination of this Agreement until such time as such duty or obligation is satisfied in full.

 

1.2    Entire Agreement. This Agreement constitutes the entire agreement between Executive and Company and it supersedes any prior agreement, promise, representation, or statement written or otherwise, between Executive and Company or between Executive and Company’s Board of Directors (the “Board”) with regard to this subject matter, including, without limitation, any summary of the terms hereof. It is entered into without reliance on any promise, representation, statement or agreement other than those expressly contained or incorporated herein, and it cannot be modified or amended except in a writing signed by Executive and a duly authorized member of the Board, after having been approved by the Board.

 

1.3    Consideration. The duties and obligations of Company to Executive under this Agreement shall be in consideration of Executive’s promises herein and services provided to Company, and as a condition to receive the Stock Rights (as set forth in Section 3.3 hereof). The duties and obligations of Executive to Company under this Agreement shall be in consideration of Company’s promises herein and the compensation to be provided to Executive pursuant to Article 3 of this Agreement.

 

ARTICLE 2

EMPLOYMENT DUTIES

 

2.1    Title/Responsibilities. Executive hereby accepts the terms of this Agreement and agrees to serve as Chief Operating Officer and Chief Financial Officer, reporting to the Chief Executive Officer. Executive shall have all powers and duties commensurate with such position(s).

 

2.2    Attention. Executive shall devote Executive’s commercially reasonable best efforts and Executive’s full business time and attention to the performance of the Executive’s duties hereunder.

 

 

 

 

 

2.3    Other Activities. Except upon the prior written consent of the Chief Executive Officer, Executive shall not during the period of this Agreement engage, directly or indirectly, in any other business activity (whether or not pursued for pecuniary advantage) that is or may be competitive with, or that might place Executive in a competing position to that of Company or to any other corporation or entity that directly or indirectly controls, is controlled by, or is under common control with Company (an “Affiliated Company”), except that Executive may own less than one percent (1%) of the outstanding securities of any such publicly traded corporation that is or may be competitive with, or that might place Executive in a competing position to that of the Company or any Affiliated Company. The determination as to whether a business activity is or may be competitive with Company or an Affiliated Company shall be made by the Chief Executive Officer, and shall be final and binding on all parties.

 

2.4    Other Agreements. Executive represents and warrants that Executive’s employment by Company will not conflict with and will not be constrained by any prior agreement or relationship with any third party. Executive represents and warrants that Executive will not disclose to Company or use on behalf of Company any confidential information governed by any agreement between Executive and any third party except in accordance with an agreement with, or the consent of, such third party. During Executive’s employment by Company, Executive may use, in the performance of Executive’s duties, all information generally known and used by persons with training and experience comparable to Executive’s own and all information which is common knowledge in the industry or otherwise legally in the public domain.

 

2.5    Policies and Practices. The employment relationship between Company and Executive shall be governed by the policies and practices established by the Company from time to time. In the event that the terms of this Agreement differ from or are in conflict with the Company’s policies or practices or the Company’s employee handbook or general employment policy memorandum to its employees, then with respect to such conflicting terms this Agreement shall control.

 

2.6    Location. Unless the Parties otherwise agree in writing, during the term of this Agreement, the Executive shall perform the services Executive is required to perform pursuant to this Agreement from the Company’s office, located at the address for Company set forth in the introductory paragraph of this Agreement, or remotely from time to time, or at any other place at which the Company maintains an office, subject to Executive’s rights under Section 6.3; provided, however, that Executive understands and agrees that the Company will require the Executive to travel temporarily to other locations in connection with the Company’s business from time to time.

 

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ARTICLE 3

COMPENSATION 

 

3.1    Annual Base Salary. The Company shall initially pay Executive an annual base salary of two hundred thousand dollars ($200,000), as it may be adjusted from time to time pursuant to this Agreement (the “Base Salary”), less standard withholdings and deductions, and payable in accordance with Company’s standard payroll procedures. The first paycheck date will be October 21, 2022. Executive will be considered for annual increases in the Base Salary in accordance with Company policy and subject to review and approval by the Board.

 

3.2    Annual Incentive Bonus. In addition to the Base Salary, Executive shall be eligible for an Annual Incentive Bonus, with a target payout on achievement of goals of twenty percent (20%) of Executive’s then-current Base Salary, beginning with the Company’s 2023 fiscal year (the “Bonus”). The amount of the Bonus for such fiscal year and each following fiscal year shall be based on Executive’s and/or Company’s achievement of certain measurable goals, established by the Chief Executive Officer with input from the Executive within forty-five (45) days of the commencement of each such fiscal year (the “Performance Criteria”). The Company shall pay any Bonus earned by Executive upon the earlier to occur of (a) the Board’s acceptance of the Company’s financial audit for the year in which the Bonus was earned, or (b) by March 15 of the year following the calendar year in which such Bonus was earned. Executive will not be eligible to receive the Bonus for any given fiscal year in which Executive’s employment with Company terminates, notwithstanding any consulting services Executive provides to Company after Executive’s termination, provided that this sentence shall not affect the right of Executive in respect of any Bonus earned for any fiscal year prior to the fiscal year during which such termination occurs that has not yet been fully paid as of the date of such termination.

 

3.3    Stock Rights.

 

(a)    Upon the Effective Date, Company shall grant Executive options to purchase five million (5,000,000) fully vested shares of Company’s common stock at the fair market value of such stock (the “Options”), subject to approval of the Board of Directors of the Company.

 

ARTICLE 4

BENEFITS

 

4.1    Benefits. During Executive’s employment, Company shall provide Executive with the same benefits that it provides to its other senior executives from time to time.

 

4.2   Business Expense Reimbursement. Company shall reimburse Executive for all reasonable and customary travel, entertainment and other expenses incurred by Executive in performing services hereunder. Any such reimbursement shall occur in accordance with Company’s reimbursement policy as in effect from time to time. Executive agrees to furnish Company adequate records and other documentary evidence of such expenses for which Executive seeks reimbursement.

 

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4.3    Vacation and Holidays. Executive shall accrue annual paid vacation time in the amount of twenty-five (25) days per calendar year in accordance with Company’s accrued time off policy as in effect from time to time, pro rated for any partial calendar year. Any unused vacation time may not be accumulated and carried over from one year to the next, except as otherwise dictated by any such policy. Executive also shall be entitled to paid holidays as established by Company for all employees.

 

ARTICLE 5

PROPRIETARY INFORMATION OBLIGATIONS

 

5.1    Proprietary Information Agreement. As a condition of Executive’s employment, Executive shall execute and deliver to Company the form of Proprietary Information and Inventions Assignment Agreement attached hereto as Exhibit B (the “Proprietary Information and Inventions Agreement”).

 

5.2    Remedies. Executive’s duties under the Proprietary Information and Inventions Agreement shall survive termination of Executive’s employment with Company. Executive acknowledges that a remedy at law for any breach or threatened breach by Executive of the provisions of the Proprietary Information and Inventions Agreement would be inadequate and Executive therefore agrees that Company shall be entitled to injunctive relief in case of any such breach or threatened breach.

 

ARTICLE 6

TERM AND TERMINATION OF EMPLOYMENT

 

6.1    At-Will Employment . Executive’s relationship with Company is terminable by either party at-will. Both Executive and Company shall have the right to terminate Executive’s employment with Company at any time with or without Cause, and with or without advance notice, except as set forth in Section 6.3. The at-will nature of Executive’s employment with Company may only be changed in an express written agreement signed by Executive and a duly authorized member of the Board, after having been approved by the Board.

 

6.2    Termination by Company for Cause. Company may terminate Executive’s employment at any time for Cause (as hereinafter defined). In the event that Company terminates Executive’s employment for Cause, the Executive will be entitled to receive Executive’s Base Salary and benefits, including accrued but unused vacation time pro rated for the calendar year then applicable, through the date of termination, as well as such other benefits as may otherwise required by law and such other benefits as expressly required by terms of applicable benefits plans through the date of such termination, if any, all of which shall be paid within thirty (30) days after the date of termination, to the extent applicable. Company thereafter shall have no further obligation under this Agreement to Executive or to Executive’s dependents, beneficiaries or estate.

 

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“Cause” means the occurrence of one or more of the following: (a) any act of gross negligence or willful misconduct by Executive causing harm to the Company; (b) Executive's misappropriation of the Company's assets or business opportunities or violation of any of Article 7 of this Agreement or any provision of the Proprietary Information and Inventions Agreement, none of which acts shall be subject to cure; (c) Executive's breach of this Agreement, or repeated failure to substantially comply with the reasonable and lawful directives of the Board or policy or procedure of the Company (other than a failure resulting from Executive’s Disability or a disability under applicable law), subject to Executive's right to cure any such breach or failure that is susceptible to cure to the reasonable satisfaction of the Company within thirty (30) days after Executive’s receipt of written notice from Company that specifies such failure; (d) Executive's intentional misrepresentation to the Board of, or willful failure to disclose to the Board, information material to the Company, its business or its operations; or (e) the use by Executive of illegal drugs, or the use of legal drugs or alcohol in any manner that adversely in any material respect affects Executive's ability to perform Executive's duties under this Agreement or otherwise to the Company, (f) a material violation by the Executive of any applicable law or regulation respecting the business of Company; (g) commission of any fraud against the Company or any of its affiliates or use or intentional appropriation for Executive’s personal use or benefit of any funds or properties of the Company not authorized by the Board to be so used or appropriated; (h) the Executive pleading guilty or nolo contendere in respect of any felony, being convicted of a felony, or being found guilty of any criminal misconduct that disqualifies the Executive from serving as an officer or director of Company, as reasonably determined by the Board, or (h) the willful or grossly negligent failure of the Executive to perform the Executive’s duties hereunder and to Company in any material respect.

 

"Disability" means the inability, due to illness, accident, injury, physical or mental incapacity or other condition, of Executive to carry out effectively Executive's duties and obligations to Company or to participate effectively and actively in the management of the Company for a period of at least ninety (90) consecutive days or for shorter periods aggregating at least one hundred twenty (120) days (whether or not consecutive) during any twelve-month period, provided that any days of paid vacation used by Executive in accordance with the Company's paid time off policy will not be included in calculation of either such time period. If Company and Executive are unable to agree as to whether Executive is suffering a disability, Executive and Company shall each identify a licensed physician who shall jointly select a third licensed physician to conduct a physical examination to determine whether Executive is unable to perform his duties under this Agreement as provided in the first sentence of this paragraph. The cost of such physicians shall be paid solely by the Company. The determination of such third physician shall be final and binding on both Company and Executive, without any appeal rights for either. Executive shall be deemed to be suffering a disability if Executive refuses to submit to such physical examination.

 

6.3    Executive’s Voluntary Resignation. Executive may voluntarily terminate Executive’s employment with Company, with or without Good Reason (as hereinafter defined), upon thirty (30) days’ advance written notice to Company (a “Resignation Notice”), which Resignation Notice shall specify any Good Reason (as hereinafter defined) basis for such voluntary termination. In the event that Executive terminates Executive’s employment with Company without Good Reason, Executive will be entitled to receive Executive’s Base Salary and benefits, including accrued but unused vacation time pro rated for the calendar year then applicable, through the end of the month during which such termination or resignation becomes effective, with any cash payment payable in accordance with Company’s normal payroll policies and such other benefits required in such event by applicable law or the terms of applicable benefits plans through the date of such termination, and Company thereafter shall have no further obligation under this Agreement to Executive or to Executive’s dependents, beneficiaries or estate. Executive may resign Executive’s employment for Good Reason so long as the Company shall have failed to remedy the Good Reason basis for such resignation in the Resignation Notice within thirty (30) days after Company’s receipt of the Resignation Notice; provided, however, that Executive’s right to resign for Good Reason shall expire in the event that Executive shall have failed to give a Resignation Notice within ninety (90) days after the latter to occur of the related Good Reason event or after Executive first learns of the occurrence thereof.

 

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“Good Reason” means any one of the following events which occurs on or after the commencement of Executive’s employment without Executive’s consent: (i) any decrease in Executive’s Base Salary below the amount specified in Section 3.1, other than as part of a reduction in the salaries of all senior executives of the Company; (ii) any material diminution of Executive’s title, duties and/or responsibilities, including, without limitation, a requirement that Executive report to another Company officer or employee and not directly to the chief executive officer; (iii) any material breach by Company of its obligations under this Agreement that is not remedied by Company to the reasonable satisfaction of the Executive within thirty (30) days of written notice of such breach from Executive, (iv) Company requests or requires Executive to perform any illegal act or any act that is inconsistent with accepted standards of ethical and professional behavior; or (v) any requirement that the Executive relocate to a work site that would increase the Executive’s one way commute distance from his current residence at the address set forth in the introductory paragraph of this Agreement by more than twenty (20) miles.

 

6.4    Termination for Death or Disability. Executive’s employment with Company will be terminated in the event of Executive’s death or Disability. In the event of such termination, Executive or Executive’s heirs, successors, and assigns shall not receive any compensation or benefits other than payment of accrued salary and vacation, which shall be paid within thirty (30) days following such termination, and such other benefits as expressly required in such event by applicable law or the terms of applicable benefit plans through the date of such termination.

 

6.5    Severance. In the event that Executive’s employment with Company terminates at any time by the Company without Cause or with Good Reason (and except for a termination resulting from an event described in Section 6.4), Company shall continue to pay Executive’s Base Salary as in effect as of the date of termination, less standard deductions and withholdings, in accordance with Company’s standard payroll policies for six (6) months after the date of such termination, provided that Executive executes the release agreement substantially in the form attached hereto as Exhibit A (the “Release”). During such six (6) month severance period, the Company shall provide Executive with the same employment benefits that he received as the date of termination pursuant to Section 4.1, but only to the extent such benefits may be paid or provided to a non-employee, except that the Company shall pay for COBRA benefits for coverage substantially similar to that in effect as of the date of termination.

 

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6.6    Change in Control.

 

(a)    Upon a Change in Control and if Executive is not terminated in connection with such Change in Control such that the following Section 6.6(b) applies, the Company shall take one of the following actions with respect to Options unvested as of the time of such Change in Control (if applicable): (i) cause such Options to become fully vested immediately prior to such Change in Control, (ii) cause such Options to be continued if the Company survives such Change in Control, or (iii) if the Company does not survive such Change in Control, cause such Options to be assumed or replaced with equivalent rights by the successor to the Company in such Change in Control; provided, however, that in the case of the foregoing clauses (ii) and (iii), any such continuance, assumption or replacement shall remain subject to Section 6.7(b).

 

(b)    In the event that upon or within twelve (12) months following a Change in Control (as hereinafter defined), Executive is terminated by Company without Cause or ceases to be a senior executive of Company (or its successor in any such Change in Control), any unvested portion of Executive’s Options shall thereupon be fully vested.

 

“Change in Control” means (i) any merger or consolidation of Company with or into another entity, other than a merger or consolidation in which the stockholders of Company immediately before the transaction will own immediately thereafter, directly or indirectly, securities having a majority in ordinary voting power of the outstanding securities of the surviving or resulting entity, (ii) any sale by Company of all or substantially all of its assets, other than a sale of assets in which the stockholders of Company immediately before the transaction will own immediately thereafter, directly or indirectly, securities having a majority in ordinary voting power of the outstanding securities of the acquiror of Company’s assets, or (iii) any sale or other transfer of shares of stock by one or more stockholders of Company as a result of which any one transferee, together with the transferee’s affiliates, will become in a transaction or series of related transactions the owner of a majority of the ordinary voting power of Company’s outstanding stock; provided, however, that any new issuance of capital stock of Company to one or more third parties for the sole purpose of providing new funding for Company or in connection with a joint venture or other documented business alliance with any such third party shall not constitute a Change in Control.

 

6.7    Deferred Compensation. Notwithstanding Section 6.6, if Company is “publicly traded” and Executive is deemed on the date of termination to be a "specified employee", each within the meaning of that term under Code Section 409A(a)(2)(B), then any payment that is considered deferred compensation under Code Section 409A payable on account of Executive’s “separation from service” shall be made on the date which is the earlier of (a) the expiration of the six (6) month period measured from the date of Executive’s “separation from service”, and (b) the date of Executive's death (the “Delay Period”) to the extent required under Code Section 409A. Upon the expiration of the Delay Period, all payments delayed pursuant to this Section 6.8 (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid to Executive in a lump sum, and all remaining payments due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them in this Agreement.

 

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ARTICLE 7

NON-COMPETITION

 

7.1    Non-Competition and Other Work Activities. In order to protect the trade secrets and confidential and proprietary information of Company, for a period of twelve (12) months following the termination of Executive’s employment with Company, Executive agrees that Executive will not directly or indirectly, whether as an officer, director, stockholder, partner, proprietor, associate, representative, consultant, or in any capacity whatsoever:

 

(a)    engage in, become financially interested in, be employed by or have any business connection with any enterprise or division of an enterprise located in the United States or any other country, territory or region in which Company conducts business, whose principal focus is the same as the Company’s (each a “Competing Business”); provided, however, that (i) Executive may own less than one percent (1%) of the voting stock of any Competing Business that is a corporation and whose capital stock is registered under Section 12 of the Exchange Act of 1934, as amended, and (ii) Executive shall not be in violation of the restriction in this Section 7.1(a) should Executive serve as an employee of a non-profit, tax-exempt academic or research institution.

 

(b)    directly or indirectly solicit, entice, induce, or encourage any person (i) who is an employee of Company as of the date of Executive’s employment with Company is terminated, or (ii) was an employee of Company within the one-year period prior to the date of such termination, to leave Company’s employee; provided, however, that a response by any such employee to a published general solicitation shall not constitute a violation of this covenant;

 

(c)    directly or indirectly solicit any customer or prospective customer (being a as a customer with which the Company has had substantive discussions regarding performing services, or to which Company has submitted a bid or proposal to perform services, in either case during the 12 month period preceding Executive’s termination) of Company as of the date of termination on Executive’s own behalf or on behalf of any Competing Business for the sale of products or services that compete with those provided by Company; provided, however, that this Section 7.1(c) shall not apply to any such customer or prospective customer with whom Executive has a substantive, business relationship prior to the Effective Date; and

 

(d)    make known, disclose, furnish, make available or utilize any of Company’s confidential or proprietary information.

 

This foregoing confidentiality covenant has no temporal, geographical or territorial restriction. Executive agrees to immediately return all Company information, Company documents (and all copies thereof) and other Company property and materials in Executive’s possession or control as of the date of Executive’s termination, including, without limitation, Company reports, notes, files, memoranda, records, drawings, business plans and forecasts, financial information, specifications, computer-recorded information, software, tangible property (including, without limitation, computers and cellular phones), credit cards, travel cards, entry cards, identification badges and keys, and any materials of any kind that contain or embody any proprietary or confidential information of Company (and all reproductions thereof). Executive further confirms that Executive will abide by all restrictions, provisions and terms contained in the Proprietary Information and Inventions Agreement.

 

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7.2    Reasonable Scope. Executive agrees and acknowledges that the time limitation and the geographic scope on the restrictions in Section 7.1 and its subsections are reasonable. Executive also acknowledges and agrees that the limitation in Section 7.1 and its subsections are reasonably necessary for the protection of Company, that through this Agreement Executive shall receive adequate consideration for any loss of opportunity associated with the provisions herein, and that these provisions provide a reasonable way of protecting Company’s business value which was imparted to Executive. In the event that any term, word, clause, phrase, provision, restriction, or subsection of Section 7.1 is more restrictive than permitted by the law of the jurisdiction in which Company seeks enforcement thereof, the provisions of this Agreement shall be limited only to that extent that a judicial determination finds the same to be unreasonable or otherwise unenforceable.

 

7.3    Legal and Equitable Remedies.  In view of the nature of the rights in goodwill, employee relations, trade secrets, and business reputation and prospects of Company to be protected under this Article 7, Executive understands and agrees that Company could not be reasonably or adequately compensated in damages in an action at law for Executive’s breach of his obligations hereunder. Accordingly, Executive specifically agrees that Company shall be entitled to temporary and permanent injunctive relief, specific performance, and other equitable relief to enforce the provisions of this Section and that such relief may be granted without the necessity of proving actual damages, and without bond. This provision with respect to injunctive relief shall not, however, diminish the right of Company to claim and recover damages or other remedies in addition to equitable relief.

 

7.4    Extension of Time.  In the event that Executive breaches any covenant, obligation or duty in this Article 7 or its subparts, any such duty, obligation, or covenants to which the parties agreed by this Article 7 and its subparts shall automatically toll from the date of the first breach, and all subsequent breaches, until the resolution of the breach through private settlement, judicial or other action, including all appeals. The duration and length of Executive’s duties and obligations as agreed by this Article 7 and its subparts shall continue upon the effective date of any such settlement, or judicial or other resolution.

 

ARTICLE 8

GENERAL PROVISIONS

 

8.1    Notices. Any notices provided hereunder must be in writing and shall be deemed effective upon the earlier of personal delivery (including, personal delivery by facsimile transmission) or the third day after mailing by first class mail, to Company at its primary office location and to Executive at Executive’s address as listed on Company payroll (which address may be changed by written notice).

 

8.2    Severability. Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision or any other jurisdiction, but such invalid, illegal or unenforceable provision will be reformed, construed and enforced in such jurisdiction so as to render it valid, legal, and enforceable consistent with the intent of the parties insofar as possible.

 

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8.3    Governing Law; Venue; Waiver of Jury Trial. All questions concerning the construction, validity and interpretation of this Agreement will be governed by the law of the State of Michigan as applied to contracts made and to be performed entirely within Michigan. Each of the parties hereto irrevocably submits to the exclusive jurisdiction of the courts of the State of Michigan located in Washtenaw County and the United States District Court for the Western District of Michigan for the purpose of any suit, action, proceeding or judgment relating to or arising out of this Agreement and the transactions contemplated hereby. Each of the parties hereto irrevocably consents to the jurisdiction of any such court in any such suit, action or proceeding and to the laying of venue in such court.  Each party hereto irrevocably waives any objection to the laying of venue of any such suit, action or proceeding brought in such courts and irrevocably waives any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.  Service of process in connection with any such suit, action or proceeding may be served on each party hereto anywhere in the world by the same methods as are specified for the giving of notices under this Agreement.  EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER.

 

8.4    Waiver. If either party should waive any breach of any provisions of this Agreement, the waiving party shall not thereby be deemed to have waived any preceding or succeeding breach of the same or any other provision of this Agreement.

 

8.5    Headings. The headings of the sections hereof are inserted for convenience only and shall not be deemed to constitute a part hereof nor to affect the meaning thereof. Any reference to a Section shall mean such section of this Agreement.

 

8.6    Successors and Assigns. This Agreement is intended to bind and inure to the benefit of and be enforceable by Executive, Company and their respective successors, permitted assigns, heirs, executors and administrators, provided that neither party may assign this Agreement without the consent of the other.

 

8.7    Claims Barred. Executive agrees that unless a shorter period of limitations applies any claim, suit, action, administrative charge or other proceeding arising out of Executive’s employment or the termination of Executive’s employment, without limitation, claims arising under State or Federal civil rights statutes, must be brought or asserted by Executive within one (1) year of the event giving rise to the claim or be forever barred. Executive expressly waives any longer statute or other period of limitations to the contrary.

 

8.8    Counterparts; Electronic Signature. This Agreement may be executed in separate counterparts and by facsimile, or other form of electronic transmission, any one of which need not contain signatures of more than one party, but all of which taken together will constitute one and the same Agreement.

 

The parties have executed this Agreement to be effective as of the Effective Date.

 

[SIGNATURES ON FOLLOWING PAGE]

 

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	 	Company:
	 	 
	 	The Coretec Group, Inc
	 	By	
			/s/ Matthew J. Kappers

			
	 	 	Matthew J. Kappers
	 	 	Its Chief Executive Officer
	 	 
	 	 
	 	Executive:
	 	
			/s/ Matthew Hoffman

			
	 	Matthew Hoffman
	 	 

 

 

 

Signature Page

Executive Employment Agreement

 

 

 

Exhibit A

 

Release Agreement

 

Executive and Company each acknowledge that (i) Executive and Company are party to that certain Executive Employment Agreement (the “Employment Agreement”), pursuant to Article 1.1 of which certain provisions thereof expressly survive the cessation of Executive’s employment thereunder, (ii) Executive is party to a Proprietary Information and Inventions Agreement, certain provisions of which expressly survive the cessation of Executive’s employment with Company; and (iii) Executive and Company are party to a Stock Restriction Agreement(s), Option Agreement(s) and/or related instruments giving Executive notice of grants for awards of stock rights (collectively, the “Stock Rights Instruments”). The parties further acknowledge that nothing in this Release Agreement shall: (a) release Executive or Company from violations occurring after the cessation of Executive’s employment with Company of any of their respective obligations under any of the provisions of the Employment Agreement (including Company’s obligation to provide severance or benefits to Executive) or the Proprietary Information and Inventions Agreement which survive the cessation of Executive’s employment with Company; (b) eliminate Executive’s rights under any of the provisions of the Employment Agreement that survive the cessation of Executive’s employment with Company; or (c) affect Executive’s or Company’s rights or obligations with respect to the Stock Rights Instruments.

 

In consideration for the severance benefits provided to Executive pursuant to the Employment Agreement, Executive hereby releases, acquits and forever discharges Company, its parents and subsidiaries, and its and their respective officers, directors, agents, servants, employees, shareholders, successors, assigns and affiliates, of and from any and all claims, liabilities, demands, causes of action, costs, expenses, attorneys fees, damages, indemnities and obligations of every kind and nature, in law, equity, or otherwise, known and unknown, suspected and unsuspected, disclosed and undisclosed (other than any claim for indemnification Executive may have as a result of any action against Executive based on Executive’s employment with Company, or as otherwise provided in applicable insurance policies, governance documents or other agreements) arising out of or in any way related to events, acts or conduct occurring on or prior to the date Executive executes this Release Agreement, arising out of or in any way connected with the Employment Agreement, Executive’s employment with Company or the termination of that employment, including but not limited to, claims of intentional and negligent infliction of emotional distress, claims or demands related to salary, bonuses, commissions, stock, stock options, or any other ownership interests in Company, vacation pay, fringe benefits, expense reimbursements, severance pay, or any other form of compensation (excluding any severance payments or benefits to which Executive is entitled under the Employment Agreement); claims pursuant to any federal, state or local law or cause of action including, without limitation, the federal Civil Rights Act of 1964, as amended; the federal Age Discrimination in Employment Act of 1967, as amended (“ADEA”), including, without limitation, by the Older Workers’ Benefit Protection Act, as amended; the Civil Rights Act of 1866, as amended; the Civil Rights Act of 1991, as amended; the Employee Retirement and Income Security Act of 1974, as amended; the federal Americans with Disabilities Act of 1990; the Fair Labor Standards Act, as amended; the Family and Medical Leave Act, as amended; Michigan laws relating to employment, including, without limitation, the Michigan Elliot-Larsen Civil Rights Act, the Michigan Persons with Disabilities Civil Rights Act, as amended, the Michigan Whistleblowers Protection Act, as amended, the Michigan Persons With Disabilities Civil Rights Act, as amended, the Michigan Whistleblower Protection Act, as amended, the Michigan Bullard-Plawecki Employee Right to Know Act; tort law; contract law; wrongful discharge; discrimination; fraud; defamation; emotional distress; and breach of the implied covenant of good faith and fair dealing.

 

A-1

 

 

The Executive acknowledges that Executive is knowingly and voluntarily waiving and releasing any rights Executive may have under ADEA. Executive also acknowledges that the consideration given for the waiver and release in the preceding paragraph hereof is in addition to anything of value to which Executive was already entitled. Executive further acknowledges that Executive has been advised by this writing, as required by the ADEA, that: (A) Executive’s waiver and release do not apply to any rights or claims that may arise after Executive executes this Release Agreement; (B) Executive has the right, and has been advised, to consult with an attorney prior to executing this Release Agreement; (C) Executive has twenty-one (21) days to consider this Agreement (although Executive may choose to voluntarily execute this Release Agreement earlier); (D) Executive has seven (7) days following the execution of this Release Agreement by the parties to revoke the Release Agreement; and (E) this Release Agreement shall not be effective until the date upon which the revocation period has expired, which shall be the eighth day after this Release Agreement is executed by the Executive, provided that Company has also executed this Release Agreement by that date.

 

THIS IS A RELEASE – READ BEFORE SIGNING

 

	The Coretec Group	 	Executive:
	 	 	 
	 	 	 
	By:	 	 	 
	Name:	 	 	Matthew Hoffman
	Title:	 	 	 
	Date:	 	 	Date:	 

                  

A-2

 

 

Exhibit B

Employee Proprietary Information and Inventions Assignment Agreement

 

THIS EMPLOYEE PROPRIETARY INFORMATION AND INVENTIONS ASSIGNMENT AGREEMENT (the “Agreement”) is made as of the date set forth below between The Coretec Group, Inc. (the “Company”), and the undersigned employee of Company (“Employee”).

 

The following Agreement confirms certain terms of Employee’s employment with Company, which Employee acknowledges is a material part of the consideration for the Employee’s employment by Company and the compensation received by the Employee from Company from time to time.

 

1.           Definitions. The following capitalized terms used in this Agreement shall have the following meanings:

 

“Board” means the Board of Directors of Company.

 

“Company Documents and Materials” means documents or other media, whether in tangible or intangible form, that contain or embody Proprietary Information or any other information concerning the business, operations or plans of Company, whether such documents or media have been prepared by Employee or by others. Company Documents and Materials include, without limitation, blueprints, drawings, photographs, charts, graphs, notebooks, customer lists, computer disks, tapes or printouts, sound recordings and other printed, electronic, typewritten or handwritten documents or information, sample products, prototypes and models.

 

“Inventions” means, without limitation, all software programs or subroutines, source or object code, algorithms, improvements, inventions, works of authorship, trade secrets, technology, designs, formulas, ideas, processes, techniques, know-how and data, whether or not patentable or copyrightable, made or discovered or conceived or reduced to practice or developed by Employee, either alone or jointly with others, that relate in any way to the business of the Company as currently conducted and proposed to be conducted, including, without limitation, any product or service relating to treatment or cure of any metabolic or central nervous system disease, including, without limitation, diabetes, cardiovascular and oncology disease.

 

“Proprietary Information” means information that was or will be developed, created, or discovered by or on behalf of Company, or which became or will become known by, or was or is conveyed to Company, which has commercial value in Company’s business, including, without limitation, any procedure, discovery, invention, formula, data, results, idea or technique; any trade secret, trade dress, copyright, patent or other intellectual property right or registration or application therefor or materials relating thereto; and any information relating to the foregoing or to any research, development, manufacturing, engineering, marketing, servicing, sales, financing, legal or other business activities or to any present or future products, prices, plans, forecasts, suppliers, clients, customers, employees, consultants or investors; whether in oral, written, graphic or electronic form, including, without limitation, information relating to animal health, welfare, census and related data and information and protocols at any time used or developed by Company with research animals used or to be used by Company in its business.

 

B-1

 

 

2.           Confidentiality of Proprietary Information.

 

(a)    Nature of Information. Employee understands that Company possesses and will possess Proprietary Information which is important to its business. Employee understands that Employee’s engagement creates a relationship of confidence and trust between Company and Employee with respect to Proprietary Information.

 

(b)    Property of Company. Employee acknowledges and agrees that all Company Documents and Materials, Proprietary Information and all patents, patent rights, copyrights, trade secret rights, trademark rights and other rights (including, without limitation, intellectual property rights) anywhere in the world in connection therewith is and shall be the sole property of Company. Employee hereby assigns to Company any and all rights, title and interest Employee may have or acquire in the Proprietary Information or any Company Documents and Materials.

 

(c)    Confidentiality. At all times, both during the term of Employee’s engagement by Company and after its termination, Employee shall keep in confidence and trust and shall not use or disclose any Proprietary Information or anything relating to it without the prior written consent of the Board, except as may be necessary in the ordinary course of performing Employee’s duties for Company; provided, however, that Employee shall have no such obligation with respect to Proprietary Information that (a) was already known to Employee at the time of its disclosure to Employee by or on behalf of Company, (b) at the time of disclosure to Employee was generally available to the public or otherwise in the public domain, (c) subsequent to such disclosure becomes generally available to the public without fault on Employee’s part, or (d) as contemplated by Section 2(d) below.

 

(d)    Compelled Disclosure. In the event that Employee is requested in any proceeding to disclose any Proprietary Information, Employee shall, unless legally prohibited from doing so, give Company prompt notice of such request so that Company may seek an appropriate protective order. If, in the absence of a protective order, Employee is nonetheless compelled by any court or tribunal of competent jurisdiction to disclose Proprietary Information, Employee may disclose such information without liability hereunder; provided, however, that Employee gives Company notice of the Proprietary Information to be disclosed as far in advance of its disclosure as is practicable and uses Employee’s commercially reasonable efforts to obtain assurances that confidential treatment will be accorded to such Proprietary Information, with any costs necessary to obtain such assurance to be paid by Company.

 

(e)    Records. Employee agrees to make and maintain adequate and current written records, in a form specified by Company, of all Inventions, trade secrets and works of authorship assigned or to be assigned to Company pursuant to this Agreement.

 

B-2

 

 

(f)    Handling of Company Documents and Materials. Employee agrees that during Employee’s employment by Company, Employee shall not remove any Company Documents and Materials from the business premises of Company or deliver any Company Documents and Materials to any person or entity outside Company, except in connection with performing the duties of Employee’s employment. Employee further agrees that, immediately upon the termination of Employee’s employment by Employee or by Company for any reason, or during Employee’s employment if so requested by Company, Employee shall return all Company Documents and Materials, apparatus, equipment and other physical property, or any reproduction of such property, excepting only (i) Employee’s personal copies of personnel records and records relating to Employee’s compensation, including any employment agreement or similar documents; (ii) Employee’s personal copies of any materials previously distributed generally to stockholders of Company; (iii) Employee’s copy of this Agreement, and (iv) any personal effects that do not contain any element of Proprietary Information.

 

3.           Inventions.

 

(a)    Disclosure. Employee shall promptly disclose in writing to Employee’s immediate supervisor or to such other person designated by Company all Inventions made during the term of Employee’s employment. Employee shall also disclose to Employee’s immediate supervisor or such designee all Inventions made, discovered, conceived, reduced to practice, or developed by Employee within six (6) months after the termination of Employee’s employment with Company which resulted, in whole or in part, from Employee’s prior employment by Company. Such disclosures shall be received by Company in confidence, to the extent such Inventions are not assigned to Company pursuant to subsection (b) below, and do not extend the assignments made in such subsection.

 

(b)    Assignment of Inventions to Company. Employee agrees that all Inventions which Employee makes, discovers, conceives, reduces to practice or develops (in whole or in part, either alone or jointly with others) during Employee’s employment shall be the sole property of Company to the maximum extent permitted by law. Employee hereby irrevocably assigns all such Inventions to Company.

 

(c)    Works Made for Hire. Employee agrees that Company shall be the sole owner of all patents, patent rights, copyrights, trade secret rights, trademark rights and all other intellectual property or other rights in connection with Inventions. Employee further acknowledges and agrees that such Inventions, including, without limitation, any computer programs, programming documentation, and other works of authorship, are “works made for hire” for purposes of Company’s rights under copyright laws. Employee hereby assigns to Company any and all rights, title and interest Employee may have or acquire in such Inventions. If in the course of Employee’s employment with Company, Employee incorporates into a Company product, process or machine a prior Invention owned by Employee or in which Employee has an interest, Company is hereby granted and shall have a nonexclusive, royalty-free, irrevocable, perpetual, sublicensable, worldwide license to make, have made, modify, use, market, sell and distribute such prior Invention as part of or in connection with such product, process or machine.

 

(d)    List of Inventions. Employee has attached hereto as Exhibit 1 a complete list of all Inventions or improvements to which Employee claims ownership and that Employee desires to remove from the operation of this Agreement. Employee acknowledges and agrees that such list is complete. If no such list is attached to this Agreement or such Exhibit has not been completed and signed by Employee, Employee represents to Company and agrees that Employee has no such Inventions or improvements at the time of signing this Agreement.

 

B-3

 

 

(e)    Cooperation. Employee agrees to perform during Employee’s employment and after Employee’s employment, to use commercially reasonable efforts to perform, all acts deemed necessary or desirable by Company to permit and assist it, at Company’s expense, in further evidencing and perfecting the assignments made to Company under this Agreement and in obtaining, maintaining, defending and enforcing patents, patent rights, copyrights, trademark rights, trade secret rights or any other rights in connection with such Inventions and improvements thereto in any and all countries, provided that the such activities do not materially interfere with Employee’s then-current professional activities. Such acts may include, without limitation, execution of documents and assistance or cooperation in legal proceedings. Employee hereby irrevocably designates and appoints Company and its duly authorized officers and agents, as Employee’s agents and attorney-in-fact, coupled with an interest, to act for and on Employee’s behalf and in Employee’s place and stead, to execute and file any documents, applications or related findings and to do all other lawfully permitted acts to further the purposes set forth above in this Section, including, without limitation, the perfection of assignment and the prosecution and issuance of patents, patent applications, copyright applications and registrations, trademark applications and registrations or other rights in connection with such Inventions and improvements thereto with the same legal force and effect as if executed by Employee.

 

(f)    Assignment or Waiver of Moral Rights. Any assignment of copyright hereunder (and any ownership of a copyright as a work made for hire) includes all rights of paternity, integrity, disclosure and withdrawal and any other rights that may be known as or referred to as “Moral Rights” (collectively, “Moral Rights”). To the extent such Moral Rights cannot be assigned under applicable law and to the extent the following is allowed by the law in the various countries where Moral Rights exist, Employee hereby waives such Moral Rights and consents to any action of Company that would violate such Moral Rights in the absence of such consent.

 

(g)    Holdover Assignment. After the termination of Employee’s employment with the Company for any reason, Employee agrees to (i) disclose immediately to the Company all Inventions, patentable or not; (ii) assist, at the Company’s expenses with applications for United States patents and foreign patents covering such Inventions as the Company may request; (iii) assign to the Company without further compensation to Employee the entire title and rights to all such Inventions and applications that Employee may have, and (iv) to execute, acknowledge, deliver, or act as otherwise necessary at the request and expense of the Company all such papers, including but not limited to patent applications, assignments, power of attorney, as necessary to secure the Company the full rights to such Inventions and applications. The Inventions subject to this Section 3(g) shall be those Inventions that (1) Employee conceives, reduces to practice, or otherwise makes or develops, either solely or jointly with others, within one year after the termination of Employee’s employment with the Company; (2) are in any way based on any Proprietary Information; or result from any work performed by Employee for the Company; or (3) are in any way related to the subject matter or activities of Employee’s employment at the Company.

 

B-4

 

 

(h)    Records. Employee agrees to keep and maintain adequate and current records (in the form of notes, sketches, drawings, laboratory notebooks and in any other form that may be required by the Company) of all Proprietary Information and all Inventions made by Employee during Employee’s period of employment at the Company, which records shall be available to and remain the sole property of Company at all times.

 

10.      Remedies. Employee acknowledges that a violation of the terms of this Agreement may give rise to irreparable injury to Company inadequately compensable in damages, and accordingly, agrees that Company may seek injunctive relief against such breach or threatened breach, in addition to any other legal remedies which may be available, including recovery of monetary damages. In any action successfully brought by Company to enforce the rights of Company against Employee under this Agreement, Company shall also be entitled to recover reasonable attorneys’ fees and costs of the action, and the period of the restrictions above shall be deemed to commence upon the entry of the court’s order for relief.

 

11.         General.

 

(a)    Severability. Employee agrees that if one or more provisions of this Agreement are held to be unenforceable under applicable law, such provisions shall be excluded from this Agreement and the balance of the Agreement shall be interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms.

 

(b)    Authorization to Notify New Employer. Employee hereby authorizes Company to notify Employee’s new employer about Employee’s rights and obligations under this Agreement following the termination of Employee’s employment with Company.

 

(c)    Entire Agreement. This Agreement sets forth the entire agreement and understanding between Company and Employee relating to the subject matter herein and merges all prior discussions between them, including but not limited to any and all statements made by any officer, employee or representative of Company regarding Company’s financial condition or future prospects. Employee understands and acknowledges that, except as set forth in this Agreement and in the offer letter from Company to Employee, (i) no other representation or inducement has been made to Employee, (ii) Employee has relied on Employee’s own judgment and investigation in accepting Employee’s employment with Company, and (iii) Employee has not relied on any representation or inducement made by any officer, employee or representative of Company. Notwithstanding the foregoing, to the extent any provision of this Agreement conflicts with any provision of a separate, written employment agreement between Company and Employee, such employment agreement shall control.

 

(d)    Amendment. No modification of or amendment to this Agreement nor any waiver of any rights under this Agreement shall be effective unless in a writing signed by the Board and Employee. Employee understands and agrees that any subsequent change or changes in Employee’s duties, salary or compensation shall not affect the validity or scope of this Agreement.

 

B-5

 

 

(e)    Effective Date and Binding Effect. This Agreement shall be effective as of the first day of Employee’s employment with Company and shall be binding upon Employee, Employee’s heirs, executor, assigns and administrators and shall be binding upon, and inure to the benefit of, Company, its subsidiaries, successors and assigns.

 

(f)    Governing Law. Employee understands and agrees that this Agreement shall be interpreted and enforced in accordance with the laws of the State of Michigan, without giving effect to its principals governing conflict of laws. Each of the parties hereto irrevocably submits to the exclusive jurisdiction of the courts of the State of Michigan located in Washtenaw County and the United States District Court for the Western District of Michigan for the purpose of any suit, action, proceeding or judgment relating to or arising out of this Agreement and the transactions contemplated hereby. Each of the parties hereto irrevocably consents to the jurisdiction of any such court in any such suit, action or proceeding and to the laying of venue in such court.  Each party hereto irrevocably waives any objection to the laying of venue of any such suit, action or proceeding brought in such courts and irrevocably waives any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.  Service of process in connection with any such suit, action or proceeding may be served on each party hereto anywhere in the world by the same methods as are specified for the giving of notices under this Agreement.  EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER.

 

EMPLOYEE HAS READ THIS AGREEMENT CAREFULLY AND UNDERSTANDS AND ACCEPTS THE OBLIGATIONS WHICH IT IMPOSES UPON EMPLOYEE WITHOUT RESERVATION. NO PROMISES OR REPRESENTATIONS HAVE BEEN MADE TO EMPLOYEE TO INDUCE EMPLOYEE TO SIGN THIS AGREEMENT. EMPLOYEE SIGNS THIS AGREEMENT VOLUNTARILY AND FREELY.

 

 

	COMPANY:	 	EMPLOYEE:
	 	 	 
	The Coretec group, Inc.	 	 
	By:	
			/s/ Matthew J. Kappers

				 	
			/s/ Matthew Hoffman

			
	Name:	 	 	 
	Title:	 	 	Matthew Hoffman
	 	 	 	 
	 	 	 	 
	Date:	 	 	 

 

B-6

 

 

EXHIBIT 1

 

The following is a complete list of all Inventions or improvements relevant to the subject matter of Employee’s employment by Company that have been made or discovered or conceived or first reduced to practice by Employee or jointly with others prior to Employee’s employment by Company that Employee desires to remove from the operation of Company’s Proprietary Information and Inventions Agreement:

 

	
			☒

				
			No Inventions or improvements.

			

 

	
			☐

				
			See below: Any and all Inventions regarding:

			

 

	
			☐

				
			Additional sheets attached.

			

 

 

Employee proposes to bring to Employee’s employment the following materials and documents of a former employer:

 

	
			☐

				
			No materials or documents

			

 

	
			☐

				
			See below:

			

 

 

	Date:	October 14, 2022	 	
			/s/ Matthew Hoffman

			
	 	 	Matthew Hoffman

 

B-7Exhibit 10.1

 

独家业务合作协议

Exclusive Business Cooperation Agreement

 

本独家业务合作协议(下称“本协议”)由以下双方于2022年10月17日在中华人民共和国(下称“中国”)深圳签署。

This Exclusive Business Cooperation Agreement
(this “Agreement”) is made and entered into by and between the following parties on October 17, 2022 in Shenzhen, the
People’s Republic of China (“China” or the “PRC”).

 

甲方: 深圳百誉巨成数据科技有限公司

地址: 深圳市福田区车公庙泰然八路深业泰然大厦C座25层。

Party A: Shenzhen Baiyu Jucheng Data Technology
Co., Ltd.

Address: 25th
Floor, Block C, Shenzhen Tairan Building, Tairan 8th Road, Futian District, Shenzhen, China

 

乙方: 深圳铜道网科技有限公司

地址: 深圳市前海深港合作区前湾一路1号A栋201室

Party B: Shenzhen Tongdow Internet Technology
Co., Ltd

Address: Qianhai
Complex A201, Qianwan Road 1st, Qianhai Shenzhen-Hong Kong Cooperation Zone, Shenzhen, China

 

甲方和乙方以下各称为“一方”,统称为“双方”。

Each of Party A and Party B shall be hereinafter
referred to as a “Party” respectively, and as the “Parties” collectively.

 

鉴于:

Whereas:

 

1.
甲方是一家在中国注册的外商独资企业的下属子公司,拥有提供供应链管理及相关配套服务;

Party A is a subsidiary of a wholly foreign-owned
enterprise registered in China, which owns the provision of supply chain management and related ancillary services;

 

2. 乙方是一家在中国注册的内资公司,经中国有关政府部门依法批准可以从事如下业务:一般经营项目包括支付设备的技术开发;在网上从事商贸活动(不含限制项目);从事广告业务;从事计算机软硬件的技术开发、技术转让、技术咨询、技术服务(不含限制项目);从事计算机系统集成现代物流技术的开发;现代物流管理系统的开发;物流方案设计。许可经营项目包括货物进出口;技术进出口;互联网信息服务;基础电信业务。(下称“主营业务”);

Party B is a company with exclusively domestic
capital registered in China, approved by relevant Chinese government authorities in accordance with the law can engage in the following
business: general business items include the development of technology for payment equipment; the permission of engaging in online business
activities (excluding restricted items); the permission of engaging in advertising business; the permission of engaging in technology
development, technology transfer, technology consulting, technology services of computer software and hardware (excluding restricted items);
the permission of engaging in computer system integration of modern logistics technology development; modern logistics management system
development; logistics solution design. Licensed business items include import and export of goods; technology import and export; Internet
information services; basic telecommunications services. (the “Principal Business”);

 

3. 甲方同意利用其供应链业务、市场、人员和资源优势,在本协议期间向乙方独家提供有关主营业务的客户、市场支持、供应链管理服务,乙方同意接受甲方或其指定方按本协议条款的规定提供的管理和各种服务。

Party A is willing to take advantage of its supply
chain business, market, personnel and resources to provide customer, market support and supply chain management services to Party B exclusively
during the term of this Agreement in relation to its Principal Business, and Party B agrees to accept the management and various services
provided by Party A or its designated party in accordance with the terms of this Agreement.

 

据此,甲方和乙方经协商一致,达成如下协议:

Now, therefore, through mutual discussion, the
Parties have reached the following agreements:

 

    1

     

    

 

1.
甲方提供的服务

Services Provided by Party A 

 

1.1 按照本协议条款和条件,乙方在此委任甲方在本协议期间作为乙方的独家服务提供者向乙方提供全面的客户支持、业务支持和相关供应链管理服务,具体内容包括所有在乙方主营业务范围内由甲方不时决定必要的服务,包括但不限于以下内容:供应链服务,商业咨询,产品研发、设备或物业租赁,营销咨询,市场开拓,客户支持,和系统维护。

Party B hereby appoints Party A as Party B’s
exclusive services provider to provide Party B with complete customer support, business support and related supply chain management services
during the term of this Agreement, in accordance with the terms and conditions of this Agreement, which may include all necessary services
within the scope of the Principal Business as may be determined from time to time by Party A, such as but not limited to supply chain
management services, business consulting, product research and development, equipment or property leasing, marketing consulting, marketing
development, customer support, and system maintenance.

 

1.2 乙方接受甲方的咨询、管理和服务。乙方进一步同意,除非经甲方事先书面同意,在本协议期间,就本协议约定的服务或其他事宜,乙方不得直接或间接地从任何第三方获得任何与本协议相同或类似的咨询、管理和/或服务,并不得与任何第三方就本协议所述事项建立任何类似的合作关系。双方同意,甲方可以指定其他方(该被指定方可以与乙方签署本协议第1.3条描述的某些协议)为乙方提供本协议约定的服务、管理和/或支持。

Party B agrees to accept all the consultancy,
management and services provided by Party A. Party B further agrees that unless with Party A’s prior written consent, during the
term of this Agreement, Party B shall not directly or indirectly accept the same or any similar consultancy, management and/or services
provided by any third party and shall not establish similar corporation relationship with any third party regarding the matters contemplated
by this Agreement. Party A may appoint other parties, who may enter into certain agreements described in Section 1.3 with Party B, to
provide Party B with the consultancy, management and/or services under this Agreement.

 

1.3
服务的提供方式

Service Providing Methodology

 

1.3.1 甲、乙双方同意在本协议有效期内,视情况而定,乙方可以与甲方或甲方指定的其他方进一步签订技术服务协议和咨询服务协议,对各项技术服务、咨询服务的具体内容、方式、人员、收费等进行约定。

Party A and Party B agree that during the term
of this Agreement, where necessary, Party B may enter into further technical service agreements or consulting service agreements with
Party A or any other party designated by Party A, which shall provide the specific contents, manner, personnel, and fees for the specific
technical services and consulting services.

 

1.3.2 乙方特此向甲方授予一项不可撤销的排他性的购买权,根据该购买权,甲方可在中国法律法规允许的范围内,由甲方自行选择,向乙方购买任何部分或全部资产,作价为中国法律允许的最低价格。届时双方将另行签订一份资产转让合同,对该资产转让的条款和条件进行约定。

Party B hereby grants to Party A an irrevocable
and exclusive option to purchase from Party B, at Party A’s sole discretion, any or all of the assets of Party B, to the extent
permitted under the PRC laws, at the lowest purchase price permitted by the PRC laws. In this case, the Parties shall enter into a separate
assets transfer agreement, specifying the terms and conditions of the transfer of the assets.

 

    2

     

    

 

2.
服务的价格和支付方式

The Prices and Payment of the Services 

 

2.1 双方同意,就本协议项下甲方向乙方提供的各项服务,乙方应向甲方支付服务费(“服务费”)。在本协议有效期内,乙方应向甲方支付的服务费应每季度按如下公式计算:甲方服务提供人员向乙方提供服务所花费的时间×其各自的级别费率,加上甲方董事会根据甲方向乙方提供的服务的价值以及乙方实际收入情况不时确定的服务费金额或比例。如甲方董事会未对前述服务费的金额或比例进行调整,则按甲方董事会最近一次确定的金额或比例执行。在任何情况下,受制于中国法律或甲方公司章程的要求,服务费应大致等于乙方的公司净收益。在调整或确定服务费时,应考虑以下因素:

The Parties agree that in respect to the services
provided by Party A to Party B contemplated in this Agreement, Party B shall pay Party A the service fees (the “Service Fees”).
During the term of this Agreement, the Service Fees to be paid to Party A by Party B shall be calculated quarterly based on the following
formula: the time of services rendered to Party B by the employees of Party A multiplies the corresponding rate, plus amount of the services
fees or ratio decided by the board of directors of Party A based on the value of services rendered by Party A and the actual income of
Party B from time to time. In the event the board of directors of Party A does not adjust the aforesaid amount of service fees or ratio,
the Service Fees shall be exercised in accordance with the amount of ratio decided by the latest board of directors of Party A. In any
event, the Service Fees shall be substantially equal to all of the net income of Party B, subject to any requirement by PRC law and the
Article of Association of Party A. The following elements shall be taken into consideration in adjusting or deciding the Service Fees:

 

2.1.1
服务的复杂程度及难度;

The complexity and difficulty of the services;

 

2.1.2
甲方雇员提供该等服务所需的时间;

The required time of such services rendered by
the employees of Party A;

 

2.1.3
服务的具体内容和商业价值;

The exact content and commercial value of the
services;

 

2.1.4
相同种类服务的市场参考价格。

The market price of the services of the same kind.

 

2.2
经双方协商一致,可以另行签署书面协议调整服务费的具体计算方法及支付方式。

As unanimously agreed upon by the Parties, the
exact calculation and payment methods of the Service Fees may be amended by entering into a separate written agreement.

 

2.3
除非双方另行达成一致意见,乙方依据本协议向甲方支付的服务费不应有任何扣除或抵销。

Unless otherwise unanimously agreed upon by the
Parties, the Service Fees to be paid by Party B to Party A pursuant to this Agreement shall not include any deduction or offset.

 

    3

     

    

 

3.
保密条款

Confidentiality Clauses 

 

3.1 双方承认及确定有关本协议、本协议内容,以及彼此就准备或履行本协议而交换的任何口头或书面资料均被视为保密信息。双方应当对所有该等保密信息予以保密,而在未得到另一方书面同意前,不得向任何第三者披露任何保密信息,惟下列信息除外:(a)公众人士知悉或将会知悉的任何信息(惟并非由接受保密信息之一方擅自向公众披露);(b)根据适用法律法规、股票交易规则、或政府部门或法院的命令而所需披露之任何信息;或(c)由任何一方就本协议所述交易而需向其股东、投资者、法律或财务顾问披露之信息,而该股东、法律或财务顾问亦需遵守与本条款相类似之保密责任。如任何一方工作人员或聘请机构的泄密均视为该方的泄密,需依本协议承担违约责任。无论本协议以任何理由终止,本条款仍然生效。

The Parties acknowledge that the existence and
the terms of this Agreement and any oral or written information exchanged between the Parties in connection with the preparation and performance
this Agreement are regarded as confidential information. Each Party shall maintain confidentiality of all such confidential information,
and without obtaining the written consent of the other Party, it shall not disclose any relevant confidential information to any third
parties, except for the information that: (a) is or will be in the public domain (other than through the receiving Party’s unauthorized
disclosure); (b) is under the obligation to be disclosed pursuant to the applicable laws or regulations, rules of any stock exchange,
or orders of the court or other government authorities; or (c) is required to be disclosed by any Party to its shareholders, investors,
legal counsels or financial advisors regarding the transaction contemplated hereunder, provided that such shareholders, investors, legal
counsels or financial advisors shall be bound by the confidentiality obligations similar to those set forth in this section. Disclosure
of any confidential information by the staff members or agencies hired by any Party shall be deemed disclosure of such confidential information
by such Party, which Party shall be held liable for breach of this Agreement. This section shall survive the termination of this Agreement
for any reason.

 

3.2
双方同意,不论本协议是否变更、解除或终止,本条款将持续有效。

The Parties agree that this section shall survive
changes to, and rescission or termination of, this Agreement.

 

4.
陈述和保证

Representations and Warranties 

 

4.1
甲方陈述和保证如下:

Party A hereby represents and warrants as follows:

 

4.1.1
甲方是按照中国法律合法注册并有效存续的外商独资企业下属子公司。

Party A is a subsidiary of a wholly owned foreign
enterprise legally registered and validly existing in accordance with the laws of China.

 

4.1.2 甲方已采取必要的公司行为,获得必要的授权,并取得第三方和政府部门的同意及批准(若需)以签署,交付和履行本协议;甲方对本协议的签署,交付和履行并不违反法律法规的明确规定。

Party A has taken all necessary corporate actions,
obtained all necessary authorization and the consent and approval from third parties and government agencies (if any) for the execution,
delivery and performance of this Agreement. Party A’s execution, delivery and performance of this Agreement do not violate any explicit
requirements under any law or regulation binding on Party A.

 

4.1.3
本协议构成对甲方合法、有效、有约束力并依本协议之条款能对其强制执行的义务。

This Agreement constitutes Party A’s legal,
valid and binding obligations, enforceable in accordance with its terms.

 

4.2
乙方陈述和保证如下:

Party B hereby represents and warrants as follows:

 

4.2.1
乙方是按照中国法律合法注册且有效存续的公司,乙方获得从事主营业务所需的政府许可、牌照。

Party B is a company legally registered and validly
existing in accordance with the laws of China and has obtained the relevant permit and license for engaging in the Principal Business
in a timely manner;

 

4.2.2 乙方已采取必要的公司行为,获得必要的授权,并取得第三方和政府部门的同意及批准(若需)以签署,交付和履行本协议;乙方对本协议的签署,交付和履行并不违反法律法规的明确规定。

Party B has taken all necessary corporate actions,
obtained all necessary authorization and the consent and approval from third parties and government agencies (if any) for the execution,
delivery and performance of this Agreement. Party B’s execution, delivery and performance of this Agreement do not violate any explicit
requirements under any law or regulation binding on Party A.

 

4.2.3
本协议构成对其合法、有效、有约束力并依本协议之条款对其强制执行的义务。

This Agreement constitutes Party B’s legal,
valid and binding obligations, and shall be enforceable against it.

 

    4

     

    

 

5.
生效和有效期

Effectiveness and Term 

 

5.1
本协议于文首标明的协议日期签署并同时生效。除非依本协议或双方其他协议的约定而提前终止,本协议有效期为10年。

This Agreement is executed on the date first above
written and shall take effect as of such date. Unless earlier terminated in accordance with the provisions of this Agreement or relevant
agreements separately executed between the Parties, the term of this Agreement shall be 10 years.

 

5.2
协议期满前,经甲方书面确认,本协议可以延期。延期的期限由甲方决定,乙方必须无条件地同意该延期。

The term of this Agreement may be extended if
confirmed in writing by Party A prior to the expiration thereof. The extended term shall be determined by Party A, and Party B shall accept
such extended term unconditionally.

 

6.
终止

Termination 

 

6.1
除非依据本协议续期,本协议于到期之日终止。

Unless renewed in accordance with the relevant
terms of this Agreement, this Agreement shall be terminated upon the date of expiration hereof.

 

6.2
本协议有效期内,乙方不得提前终止本协议。尽管如此,甲方可在任何时候通过提前30天向乙方发出书面通知的方式终止本协议。

During the term of this Agreement, Party B shall
not terminate this Agreement prior to its expiration date. Nevertheless, Party A shall have the right to terminate this Agreement upon
giving 30 days’ prior written notice to Party B at any time.

 

6.3
在本协议终止之后,双方在第3、7和8条项下的权利和义务将继续有效。

The rights and obligations of the Parties under
Articles 3, 7 and 8 shall survive the termination of this Agreement.

 

7.
适用法律和争议解决

Governing Law and Resolution of Disputes 

 

7.1
本协议的订立、效力、解释、履行、修改和终止以及争议的解决适用中国的法律。

The execution, effectiveness, construction, performance,
amendment and termination of this Agreement and the resolution of disputes hereunder shall be governed by the laws of China.

 

7.2 因解释和履行本协议而发生的任何争议,本协议双方应首先通过友好协商的方式加以解决。如果在一方向其他方发出要求协商解决的书面通知后30天之内争议仍然得不到解决,则任何一方均可将有关争议提交深圳市福田区法院申请诉讼。

In the event of any dispute with respect to the
construction and performance of this Agreement, the Parties shall first resolve the dispute through friendly negotiations. In the event
the Parties fail to reach an agreement on the dispute within 30 days after either Party’s request to the other Parties for resolution
of the dispute through negotiations, either Party may submit the relevant dispute to the Shenzhen Futian District People’s Court
for litigation.

 

7.3 因解释和履行本协议而发生任何争议或任何争议正在进行诉讼时,除争议的事项外,本协议双方仍应继续行使各自在本协议项下的其他权利并履行各自在本协议项下的其他义务。

Upon the occurrence of any disputes arising from
the construction and performance of this Agreement or during the pending litigation of any dispute, except for the matters under dispute,
the Parties to this Agreement shall continue to exercise their respective rights under this Agreement and perform their respective obligations
under this Agreement.

 

    5

     

    

 

8.
补偿

Indemnification 

 

就甲方根据本协议向乙方提供的咨询、管理和/或服务内容所产生或引起的针对甲方的诉讼、请求或其他要求而招致的任何损失、损害、责任或费用都应由乙方补偿给甲方,以使甲方不受任何损害,除非该损失、损害、责任或费用是因甲方的重大过失或故意而产生的。

Party B shall indemnify and hold harmless Party
A from any losses, injuries, obligations or expenses caused by any lawsuit, claims or other demands against Party A arising from or caused
by the consultancies, managements and/ or services provided by Party A to Party B pursuant this Agreement, except where such losses, injuries,
obligations or expenses arise from the gross negligence or willful misconduct of Party A.

 

9.
通知

Notices 

 

9.1 本协议项下要求或发出的所有通知和其他通信应通过专人递送、挂号邮寄、邮资预付或商业快递服务或传真的方式发到该方下列地址。每一通知还应再以电子邮件送达。该等通知视为有效送达的日期按如下方式确定:

All notices and other communications required
or permitted to be given pursuant to this Agreement shall be delivered personally or sent by registered mail, postage prepaid, by a commercial
courier service or by facsimile transmission to the address of such Party set forth below. A confirmation copy of each notice shall also
be sent by email. The dates on which notices shall be deemed to have been effectively given shall be determined as follows:

 

9.1.1
通知如果是以专人递送、快递服务或挂号邮寄、邮资预付发出的,则以于设定为通知的地址在接收或拒收之日为有效送达日。

Notices given by personal delivery, by courier
service or by registered mail, postage prepaid, shall be deemed effectively given on the date of receipt or refusal at the address specified
for notices.

 

9.1.2
通知如果是以传真或电子邮件发出的,则以成功传送之日为有效送达日(应以自动生成的传送确认信息为证)。

Notices given by facsimile transmission or emails
shall be deemed effectively given on the date of successful transmission (as evidenced by an automatically generated confirmation of transmission).

 

9.2
为通知的目的,双方地址如下:

For the purpose of notices, the addresses of the
Parties are as follows:

 

甲方: 深圳百誉巨成数据科技有限公司

Party A: Shenzhen Baiyu Jucheng Data Technology
Co., Ltd.

地址: 深圳市福田区车公庙泰然八路深业泰然大厦C座25层

Address: 25th
Floor, block C, Shenzhen Tairan Building, Tairan 8th Road, Futian District, Shenzhen, China

 

乙方: 深圳铜道网科技有限公司

Party B: Shenzhen Tongdow Internet Technology
Co., Ltd

地址: 深圳市前海深港合作区前湾一路1号A栋201室

Address: Qianhai
Complex A101, Qianwan Road 1st, Qianhai Shenzhen-Hong Kong Cooperation Zone, Shenzhen, China

 

9.3
任何一方可按本条规定随时给另一方发出通知来改变其接收通知的地址。

Any Party may at any time change its address for
notices by a notice delivered to the other Party in accordance with the terms hereof.

 

    6

     

    

 

10.
协议的转让

Assignment 

 

10.1
乙方不得将其在本协议项下的权利与义务转让给第三方,除非事先征得甲方的书面同意。

Without Party A’s prior written consent,
Party B shall not assign its rights and obligations under this Agreement to any third party.

 

10.2 乙方在此同意,甲方可以在其需要时向其他第三方转让其在本协议项下的权利和义务,并在该等转让发生时甲方仅需向乙方发出书面通知,并且无需再就该等转让征得乙方的同意。

Party B agrees that Party A may assign its obligations
and rights under this Agreement to any third party upon a prior written notice to Party B but without the consent of Party B.

 

11.
协议的分割性

Severability 

 

如果本协议有任何一条或多条规定根据任何法律或法规在任何方面被裁定为无效、不合法或不可执行,本协议其余规定的有效性、合法性或可执行性不应因此在任何方面受到影响或损害。双方应通过诚意磋商,争取以法律许可以及双方期望的最大限度内有效的规定取代那些无效、不合法或不可执行的规定,而该等有效的规定所产生的经济效果应尽可能与那些无效、不合法或不能强制执行的规定所产生的经济效果相似。

In the event that one or several of the provisions
of this Agreement are found to be invalid, illegal or unenforceable in any aspect in accordance with any laws or regulations, the validity,
legality or enforceability of the remaining provisions of this Agreement shall not be affected or compromised in any aspect. The Parties
shall strive in good faith to replace such invalid, illegal or unenforceable provisions with effective provisions that accomplish to the
greatest extent permitted by law and the intentions of the Parties, and the economic effect of such effective provisions shall be as close
as possible to the economic effect of those invalid, illegal or unenforceable provisions.

 

12.
协议的修改、补充

Amendments and Supplements 

 

双方可以书面协议方式对本协议作出修改和补充。经过双方签署的有关本协议的修改协议和补充协议是本协议组成部分,具有与本协议同等的法律效力。

Any amendments and supplements to this Agreement
shall be in writing. The amendment agreements and supplementary agreements that have been signed by the Parties and that relate to this
Agreement shall be an integral part of this Agreement and shall have the same legal validity as this Agreement.

 

13.
语言和副本

Language and Counterparts 

 

本协议以中文和英文书就,一式二份,甲乙双方各持一份,具有同等效力;中英文版本如有冲突,应以中文版为准。

This Agreement is written in both Chinese and
English language in two copies, each Party having one copy with equal legal validity; in case there is any conflict between the Chinese
version and the English version, the Chinese version shall prevail.

 

(本页无正文,为《独家业务合作协议》签署页)

(This page has no text and is the signature page
of the Exclusive Business Cooperation Agreement)

 

    7

     

    

 

甲方:深圳百誉巨成数据科技有限公司

Party A: Shenzhen Baiyu Jucheng Data Technology Co., Ltd.

签字(盖章)

Signature (Seal):

 

日期:2022年10月17日

Date: October 17, 2022

 

乙方:深圳铜道网科技有限公司

Party B: Shenzhen Tongdow Internet Technology Co., Ltd

签字(盖章):

Signature (Seal):

 

日期:2022年10月17日

Date: October 17, 2022

 

 

 

8

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