Document:

Document

Exhibit 10.2

Archer-Daniels-Midland Company
2020 Incentive Compensation Plan

Restricted Stock Unit Award Terms and Conditions

These Terms and Conditions are part of a Restricted Stock Unit Award Agreement (the “Agreement”) that governs a Restricted Stock Unit Award made to you as an employee of Archer-Daniels-Midland Company (“ADM”) or one of its Affiliates pursuant to the terms of the Company’s 2020 Incentive Compensation Plan (the “Plan”).  The Agreement consists of a notice of Restricted Stock Unit Award that has been provided to you (the “Notice”), these Terms and Conditions and the applicable terms of the Plan which are incorporated into the Agreement by reference, including the definitions of capitalized terms contained in the Plan.  In this Agreement, the term “Company” refers to ADM and its Affiliates, unless the context refers to the issuer of this Award or the Shares issued in settlement of this Award, in which case the term refers to ADM.

Section 1.    Grant of Restricted Stock Unit Award.  The grant of this Restricted Stock Unit Award to you is effective as of the Date of Grant specified in the Notice.  This Restricted Stock Unit Award provides you the number of Restricted Stock Units specified in the Notice, each such Restricted Stock Unit representing the right to receive one share of the Company’s common stock.  The Restricted Stock Units granted to you will be credited to an account in your name maintained by the Company.  This account shall be unfunded and maintained for bookkeeping purposes only, with the Restricted Stock Units simply representing an unfunded and unsecured obligation of the Company.

Section 2.    Rights of the Recipient.

(a)    No Shareholder Rights.  The Restricted Stock Units granted pursuant to this Award do not entitle you to any rights of a shareholder of the Company’s common stock.  Your rights with respect to the Restricted Stock Units shall remain forfeitable at all times by you until satisfaction of the vesting conditions set forth in Section 3.

(b)    Restrictions on Transfer.  You shall not be entitled to transfer, sell, pledge, alienate, hypothecate or assign the Restricted Stock Units or this Award, except that in the event of your death, your estate shall be entitled to the Shares represented by the vested Restricted Stock Units.  Any attempt to otherwise transfer the Restricted Stock Units or this Award shall be void.  All rights with respect to the Restricted Stock Units and this Award shall be available only to you during your lifetime, and thereafter to your estate.

(c)     Dividend Equivalents.  As of each date that the Company pays a cash dividend to the holders of its common stock generally, the Company shall pay you an amount equal to the per share cash dividend paid by the Company on its common stock on that date multiplied by the number of Restricted Stock Units credited to you under this Award as of the related dividend payment record date.  No such dividend equivalent payment shall be made with respect to any Restricted Stock Units which, as of such record date, have either been settled as provided in Section 4 or forfeited pursuant to Sections 5 or 7.  Any such payment shall be made as soon as practicable after the related dividend payment date, but no later than the later of (i) the end of the calendar year in which the dividend payment date occurs, or (ii) the 15th day of the third calendar month after the dividend payment date.

Section 3.    Vesting.  Subject to the provisions of Section 7 below, the Restricted Stock Units subject to this Award and your right to receive Shares in settlement thereof shall vest in full on the vesting date specified in the Notice (the “Scheduled Vesting Date”), or at such earlier time as may be specified in Section 5 or Section 6 (the Scheduled Vesting Date or such earlier vesting date being referred to as the “Vesting Date”).

Section 4.    Settlement of Restricted Stock Units.  Subject to the provisions of Section 7, after any Restricted Stock Units vest pursuant to Section 3, the Company shall cause to be issued to you, or to your estate in the event of your death, one share of its common stock in payment and settlement of each vested Restricted Stock Unit.  Such issuance shall occur as soon as administratively practicable after the 

Vesting Date occurs, but no later than the 15th day of the third calendar month after the Vesting Date, and you shall have no power to affect the timing of such issuance.  Such issuance shall be evidenced by a stock certificate or appropriate entry on the books of the Company or a duly authorized transfer agent of the Company, shall be subject to the tax withholding provisions of Section 8, and shall be in complete satisfaction of such vested Restricted Stock Units.  If the Restricted Stock Units that vest include a fractional Restricted Stock Unit, the Company shall round the number of vested Restricted Stock Units to the nearest whole unit prior to issuance of Shares as provided herein.  If the ownership of or issuance of Shares to you as provided herein is not feasible due to applicable exchange controls, securities or tax laws or other provisions of applicable law, as determined by the Committee in its sole discretion, you or your legal representative shall receive cash proceeds in an amount equal to the Fair Market Value (as of the Vesting Date) of the Shares otherwise issuable to you, net of any amount required to satisfy withholding tax obligations as provided in Section 8.

Section 5.    Effect of Termination of Service.  If you cease to be an Employee prior to the Scheduled Vesting Date other than as a result of your death, Retirement or Disability, you shall immediately forfeit the Restricted Stock Units.  If you cease to be an Employee as a result of death, then all Restricted Stock Units subject to this Award and your right to receive Shares in settlement thereof shall immediately vest in full and the Company shall settle such Restricted Stock Units pursuant to Section 4.   If you cease to be an Employee as a result of Retirement or Disability, then subject to the forfeiture conditions of Section 7, the Restricted Stock Units subject to this Award and your right to receive Shares in settlement thereof shall continue to vest in accordance with Section 3.

Section 6.  Change of Control.  In the event a Change of Control occurs prior to the Scheduled Vesting Date, the following provisions shall apply:

(a)    Termination After a Change of Control.  If, within 24 months after a Change of Control (i) described in paragraphs (a) or (d) of Section 2.8 of the Plan or (ii) that constitutes a Business Combination as defined in paragraph (c) of Section 2.8 of the Plan and in connection with which the surviving or acquiring entity (or its parent entity) has continued, assumed or replaced this Restricted Stock Unit Award, you cease to be an Employee due either to an involuntary termination for reasons other than Cause (as defined in paragraph 7(b)) or a resignation for Good Reason (as defined in paragraph 6(d)), then all Restricted Stock Units subject to this Award and your right to receive Shares in settlement thereof shall immediately vest in full and will be settled in shares of Company common stock as provided in Section 4.

(b)    Award Not Continued, Assumed or Replaced.  If this Restricted Stock Unit Award is not continued, assumed or replaced in connection with a Change of Control that constitutes a Business Combination as contemplated by clause (ii) of paragraph 6(a), than all Restricted Stock Units subject to this Award and your right to receive Shares in settlement thereof shall immediately vest in full upon the occurrence of the Change of Control and will be settled in shares of Company common stock as provided in Section 4 above.  Unless the Committee provides otherwise in connection with a Change of Control described in paragraph (b) of Section 2.8 of the Plan, all Restricted Stock Units subject to this Award shall vest in full prior to the consummation of the dissolution or liquidation.

(c)    Assumption or Replacement.  For purposes of this Section 6, this Restricted Stock Unit Award will be considered assumed or replaced if, in connection with the Change of Control transaction and in a manner consistent with Code Section 409A, either (i) the contractual obligations represented by this Award are expressly assumed by the surviving or acquiring entity (or its parent entity) with appropriate adjustments to the number and type of securities subject to this Award that preserves the intrinsic value of this Award existing at the time of the Change of Control transaction, or (ii) you have received a comparable restricted stock unit award that preserves the intrinsic value of this Award existing at the time of the Change of Control transaction and is subject to substantially similar terms and conditions as this Award.  

(d)    Good Reason.  For purposes of this Agreement, “Good Reason” shall have the meaning specified in your employment agreement with the Company; provided if you are not a party to an employment agreement that contains such definition, then a termination for “Good Reason” shall occur upon your resignation from employment with the Company as a result of one or more of the following reasons: (i) the Company materially reduces the amount of your base salary or cash bonus opportunity (it 
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being understood that the Committee shall have discretion to set the Company’s and your personal performance targets to which the cash bonus will be tied), (ii) a material diminution in your authority, duties or responsibilities, or (iii) the Company changes your place of work (other than in connection with a return to your home country upon the termination of a work assignment in a different country) to a location more than fifty (50) miles from your present place of work; provided, however, that the occurrence of any such condition shall not constitute Good Reason unless (A) you provide written notice to the Company of the existence of such condition not later than 60 days after you know or reasonably should know of the existence of such condition, (B) the Company fails to remedy such condition within 30 days after receipt of such notice and (C) you resign due to the existence of such condition within 60 days after the expiration of the remedial period described in clause (B) hereof.  

Section 7.    Forfeiture of Award and Compensation Recovery.  

(a)    Forfeiture Conditions.  Notwithstanding anything to the contrary in this Agreement, if you cease to be an Employee because your employment is terminated for “Cause” (as defined in paragraph 7(b)), or if you breach any restrictive covenants applicable to you (including those contained in paragraph 7(c)), (i) you shall immediately forfeit this Award and any right to receive Shares that have not yet been issued pursuant to Section 4, and (ii) with respect to Shares that have been issued pursuant to this Award (or the cash value thereof paid) after the Vesting Date, either (A) you shall return such Shares to the Company, or (B) you shall pay to the Company in cash an amount equal to the Fair Market Value of such Shares as of the Vesting Date (or equal to the cash value previously paid).
  
(b)    Definition of “Cause”.  For purposes of this Section 7, “Cause” shall mean the Company’s good faith determination that you have engaged in any act that creates just cause for termination, which, without limiting the foregoing, shall be deemed to include the following: (i) any act of dishonesty with respect to your responsibilities as an Employee, embezzlement, misappropriation, intentional fraud, or other violations of the law or similar conduct by you involving the Company, (ii) any acts resulting in a conviction for, or plea of guilty or nolo contendere to, a charge of commission of a felony, (iii) misconduct resulting in injury to the Company, (iv) activities harmful to the reputation of the Company, (v) a violation of Company operating guidelines or policies, (vi) willful refusal to perform, or substantial disregard of, the duties properly assigned to you, including failure to provide your Best Efforts on behalf of the Company, (vi) a violation of any contractual, statutory or common law duty of loyalty to the Company; (vii) any breach of your obligations to the Company, including any confidentiality or non-disclosure obligations; or (viii) any willful and/or gross misconduct by you that in the good faith determination of the Company demonstrates unfitness to be an employee of the Company, including the harassment of any employee or violation of any law, regulation, or Company policies. “Best Efforts” shall mean that, during your employment or relationship with the Company, you will devote your best efforts to the performance of your duties and the advancement of the Company and shall not engage in any other employment, profitable activities, or other pursuits which would cause you to not devote your full attention to matters of the Company during business hours, to disclose or utilize the Company’s Confidential Information, or which would reflect adversely on the Company.

(c)    Restrictive Covenants. You agree that the covenants set forth in subparagraph 7(c)(i) through (iii) are reasonable and necessary to protect the legitimate interests of the Company and that you will abide by all provisions of the restrictive covenants set forth in subparagraphs 7(c)(i) through (iii) below for the respective time periods set forth therein. 

    (i)    Non-Disclosure and Return of Confidential Information. You have or will be given access to and provided with items or compilations of sensitive, confidential, proprietary, and/or trade secret information  (in tangible or intangible form) in the course of your employment that are not readily available to the public or persons outside the Company through proper means (collectively, “Confidential Information”). Examples of Confidential Information include, but are not limited to, inventions, new product or marketing plans, business strategies and plans, merger and acquisition targets, financial information, costs and pricing structures, unpublished pricing information and underlying pricing-related variables such as costs, volume discounting options, and profit margins, pricing strategy, computer programs, source codes, models and databases, analytical models, customer lists and information, and supplier and vendor lists and information. “Confidential Information” does not include information that lawfully is or becomes generally and publicly known outside of the Company, or that has been independently developed and disclosed by others with proper authority to do so, in each case other 
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than through your breach of this Agreement or breach by you or another person or entity of some other obligation to the Company. You agree not to disclose or use Confidential Information, either during or after your employment with the Company, except as necessary to perform your duties or as the Company may consent in writing, and except as required by applicable law or by subpoena in each case disclosed in advance to the Company (subject to Section 7(c)(vii) below). You further agree to return any and all Confidential Information and all other Company property, whether in hard or electronic format, regardless of the location on which such information or property may reside, no later than three (3) business days following the termination of your employment or upon demand of the Company, if earlier.

If, and only if, the controlling state law applicable to you requires a time limit to be placed on restrictions concerning the post-employment use of Confidential Information for the restriction to be enforceable, then this restriction on your use of Confidential Information that is not a trade secret will expire three (3) years after your employment or other association with the Company ends. This time limit will not apply to (a) Confidential Information that qualifies as a trade secret, or (b) third party Confidential Information. The Company’s trade secrets will remain protected for as long as they qualify as trade secrets under applicable law. Items of third party Confidential Information will remain protected for as long as allowed under the laws and/or separate agreements that make them confidential.

    (ii)    Non-Solicitation. During the time in which your Restricted Stock Units shall vest and for one year after the Vesting Date under Section 3 (even if your employment hereafter ends and your Restricted Stock Units are no longer eligible for vesting), and subject to Section 7(c)(vi) below, you may not, without the Company’s prior written consent, directly or through the direction or control of others, for you or for any other person or entity, as agent, employee, officer, director, consultant, owner, principal, partner, or shareholder, or in any other individual or representative capacity:

(A)    Solicit any business competitive with the Company for or from any person or entity who (a) was a Company provider or customer any time within the 12 months prior to such actual or contemplated solicitation by or involving you (or, if your employment with the Company has by then terminated, any time within the 12 months prior to such employment termination) and with whom you had direct or indirect contact to further the Company’s business, or for whom you provided services or supervised employees who provided those services, or about which you received or had access to Confidential Information, or where allowed by law, (b) was a prospective provider or customer the Company solicited any time within the 12 months prior to such actual or contemplated solicitation by or involving you (or, if your employment with the Company has by then terminated, any time within the 12 months prior to such employment termination) and with whom you had contact for the purposes of soliciting the person or entity to become a provider or customer of the Company, or supervised employees who had those contacts, or about which you received or had access to Confidential Information.
(B)    Recruit or solicit any Company employee or consultant that you gained knowledge of during your employment.
(C)    Induce or influence any Company employee or consultant that  you gained knowledge of during your employment to terminate his, her or its employment or other relationship with the Company.
(D)    Assist anyone in any of the activities listed above.
    The restrictions contained in Section 7(c)(ii) are understood to be reasonably limited by geography to those locations, and counties, where the providers, customers, employees and consultants are present and available for solicitation. However, to the extent additional geographic limitations are required to make the restrictions in Section 7(c)(ii) enforceable, they shall be deemed limited to the Restricted Area (defined below).
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(iii)    Non-Competition. During the time in which your Restricted Stock Units shall vest and for one year after the Vesting Date under Section 3 (even if your employment hereafter ends and your Restricted Stock Units are no longer eligible for vesting), and subject to Section 7(c)(vi) below, you may not, without the Company’s prior written consent, directly or through the direction or control of others, for you or for any other person or entity, as agent, employee, officer, director, consultant, owner, principal, partner or shareholder, or in any other individual or representative capacity, anywhere in the Restricted Area:

(A)    Engage in or participate in any activity that is similar to those you performed during the Look Back Period and/or likely to result in your use or disclosure of the Company’s Confidential Information on behalf of any person or entity that competes, directly or indirectly, with any Company product or service that you engaged in, participated in, or had Confidential Information about during the Look Back Period, including, but not limited to, any business engaged in any of the following with respect to which you were involved or had responsibilities during the Look Back Period or about which you received or had access to Confidential Information: (i) the development and/or manufacture of products which involve experimental and/or inventive work relating to the origination, trading and/or processing of agricultural commodities, (ii) the development, manufacture, sourcing and/or supply of food and/or feed ingredients, flavoring, ethanol, biodiesel, derivatives of agricultural feedstocks, enzymes, probiotics and/or other biologically active compositions, and/or (iii) the operation of grain elevators and/or crop origination and/or transportation networks; or

(B)    Assist anyone in any of the activities listed above.

(C)    “Restricted Area” means the geographic territory(ies) assigned to you by the Company any time during the twenty-four months prior to such actual or contemplated competitive activity (as described in subpart (A) and (B) above) by or involving you (or, if your employment with the Company has by then terminated, any time within the twenty-four months prior to such employment termination) (“Look Back Period”) set by recognized geographic boundary used in the Company’s business; and, if you have no such specifically assigned geographic boundary then: (i) the geographic area in which you participated in the Company’s business and/or about which you were provided access to Confidential Information during the Look Back Period; and (ii) the state and county where you reside.  If you are employed by the Company in a research and/or development capacity and/or if you are employed in a senior management position then you are presumed to have participated in the Company’s business and/or had Confidential Information about the Company’s business throughout the United States.  You are responsible for seeking clarification from the Company’s Human Resources department if it is unclear to you at any time what the scope of the Restricted Area is.

(D)    Nothing in this Section 7(c)(iii) prohibits you from passively owning not in excess of 2% in the aggregate of any company’s stock or other ownership interests that are publicly traded on any national or regional stock exchange.

(iv)    Certification of Compliance. Prior to the issuance of Shares, you may be required to certify to the Company and provide such other evidence to the Company as the Company may reasonably require that you have not engaged in any activities that compete with the business operations of the Company and/or that violate your obligations in subparagraphs 7(c)(i)-7(c)(iii) above since you ceased to be an Employee due to Retirement or Disability.

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(v)    Consideration and Voluntariness.  You stipulate, acknowledge and agree that:  (A) your opportunity to enter into this Agreement and the dividends you receive as a result thereof is adequate consideration to make the provisions of this Agreement, including, without limitation Section 7(c), immediately binding and enforceable against you and you agree not to assert otherwise; and (B) you are under no obligation (including as a condition of initial or continued employment) to accept the Restricted Stock Unit Award referenced herein with respect to which this Agreement is a condition, and that your decision to accept and thus to execute this Agreement as a condition of such Restricted Stock Unit Award is entirely knowing and voluntary on your part in order to be eligible for the substantial benefit and opportunities hereunder.

(vi)     Limitation on Post-Employment Restrictions. Unless the time period for a restriction is extended by a Court as allowed under Section 17, the time period for the restrictions in Section 7(c)(ii) and (iii) shall in no event exceed two (2) years after any termination of your employment. 

(vii)     Protected Conduct. Nothing in this Agreement prohibits you from reporting or filing a charge or complaint regarding an event that you in good faith believe is or may be a violation of law (including concerning alleged or suspected criminal conduct or unlawful employment practices such as discrimination, harassment or retaliation) to your attorney or to or with a federal, state, local or other  governmental agency or regulatory entity (such as the Securities and Exchange Commission, the Equal Employment Opportunity Commission (or state or local equivalent), or the Department of Labor), requires notice to or approval from the Company before doing so, or prohibits you from communicating with or cooperating in an investigation or proceeding conducted by such a government agency or regulatory entity. Further, nothing prohibits you from making any truthful statements or disclosures required by law. This may include a disclosure of trade secret information provided that it must comply with the restrictions in the Defend Trade Secrets Act of 2016 (DTSA). 

(viii) Right to Consult with Attorney. You acknowledge that you received a copy of the Agreement at least fourteen (14) calendar days before you had to decide whether to accept the Restricted Stock Unit Aware referenced herein. You further acknowledge that the Company instructed you to take that time to consult with an attorney. 

(d)    Compensation Recovery Policy. In addition to those provisions contained within paragraphs 7(a) through 7(c), to the extent that this Award and any compensation associated therewith is considered “incentive-based compensation” within the meaning and subject to the requirements of Section 10D of the Exchange Act, this Award and any compensation associated therewith shall be subject to potential forfeiture or recovery by the Company in accordance with any compensation recovery policy adopted by the Board or the Committee in response to the requirements of Section 10D of the Exchange Act and any implementing rules and regulations thereunder adopted by the Securities and Exchange Commission or any national securities exchange on which the Company’s Shares are then listed.  This Agreement may be unilaterally amended by the Committee to comply with any such compensation recovery policy.  

Section 8.    Withholding of Taxes.  You shall be responsible for the payment of any withholding taxes upon the occurrence of any event in connection with the Award (for example, vesting or issuance of Shares in settlement of Restricted Stock Units) that the Company determines may result in any tax withholding obligation, including any social security obligation.  The delivery of Shares in settlement of Restricted Stock Units shall be conditioned upon the prior payment by you, or the establishment of arrangements satisfactory to the Company for the payment by you, of all such withholding tax obligations.  You hereby authorize the Company to withhold from salary or other amounts owed to you any sums required to satisfy withholding tax obligations in connection with the Award.  As contemplated by Section 17.2 of the Plan, you may elect to satisfy such withholding tax obligations by delivering Shares you already own or by having the Company retain a portion of the Shares that would otherwise be issued to you in settlement of the Restricted Stock Units by notifying the Company of such election prior to the Vesting Date.  If payment of withholding tax obligations, or satisfactory payment arrangements, are not made on a timely basis, the Company may instruct an authorized broker to sell such number of Shares subject to the Award as are equal in value to the tax withholding obligations prior to the issuance of any Shares to you.
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Section 9.    Securities Law Compliance.  No Shares shall be delivered upon the vesting of any Restricted Stock Units unless and until the Company and/or you shall have complied with all applicable federal, state or foreign registration, listing and/or qualification requirements and all other requirements of law or of any regulatory agencies having jurisdiction, unless the Committee has received evidence satisfactory to it that you may acquire such shares pursuant to an exemption from registration under the applicable securities laws.  Any determination in this connection by the Committee shall be final, binding, and conclusive.  The Company reserves the right to legend any Share certificate or book entry, conditioning sales of such Shares upon compliance with applicable federal and state securities laws and regulations.

Section 10.    No Rights as Employee or Consultant.  Nothing in this Agreement or this Award shall confer upon you any right to continue as an Employee or consultant of the Company, or to interfere in any way with the right of you or the Company to terminate your employment or other service at any time.  This Agreement shall survive any such termination in accordance with its terms and conditions.

Section 11.    Adjustments.  If at any time while this Award is outstanding, the number of outstanding Shares is changed by reason of a reorganization, recapitalization, stock split or any of the other events described in Section 4.7 of the Plan, the number of Restricted Stock Units and the number and kind of securities that may be issued in respect of such Units shall be adjusted in accordance with the provisions of the Plan.

Section 12.    Notices.  Any notice hereunder by you shall be given to the Company in writing and such notice shall be deemed duly given only upon receipt thereof by the Secretary of the Company at the Company’s office at 77 West Wacker Drive, Suite 4600, Chicago, Illinois 60601 or at such other address as the Company may designate by notice to you.  Any notice hereunder by the Company shall be given to you in writing and such notice shall be deemed duly given only upon receipt thereof at such address as you may have on file with the Company.

Section 13.    Construction.  The construction of the Notice and these Terms and Conditions is vested in the Committee, and the Committee’s construction shall be final and conclusive.  The Notice and these Terms and Conditions are subject to the provisions of the Plan, and to all interpretations, rules and regulations which may, from time to time, be adopted and promulgated by the Committee pursuant to the Plan.  If there is any conflict between the provisions of the Notice and these Terms and Conditions on the one hand and the Plan on the other hand, the provisions of the Plan will govern.

Section 14.     Governing Law and Venue.  This Agreement, the parties’ performance hereunder, and the relationship between them shall be governed by, construed, and enforced in accordance with the laws of the State of Illinois, without giving effect to the choice of law principles thereof. The parties expressly agree that any action relating to or arising out of this Agreement shall take place exclusively in the State of Illinois, and you consent to the jurisdiction of the federal and/or state courts in Illinois. You further consent to personal jurisdiction and venue in both such courts and to service of process by United States Mail or express courier service in any such action.

Section 15.    Binding Effect.  This Agreement will be binding in all respects on your heirs, representatives, successors and permitted assigns (if any), and on the successors and assigns of the Company.

Section 16.    Remedies. The parties expressly agree that the forfeiture and repayment obligations contained within Section 7 do not constitute the Company’s exclusive remedy for your violation of subparagraph 7(c). The Company may seek any additional legal or equitable remedy, including without limitation injunctive relief, for any such violation of that provision. You acknowledge and agree that any breach of subparagraph 7(c) will result in immediate and irreparable harm to the Company for which damages alone are an inadequate remedy and cannot readily be calculated.  Accordingly, in the event of any actual or threatened violation of subparagraph 7(c), the parties expressly agree that the Company shall be entitled to obtain and enforce immediately temporary restraining orders, preliminary injunctions and final injunctions without the posting of a bond enjoining such breach or threatened breach, in addition to all other remedies that may be awarded by a court of competent jurisdiction, and any other legal or equitable relief allowed by law. If you fail to comply with a restriction 
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in subparagraph 7(c) that applies for a limited period of time after employment, the time period for that restriction will be extended by the greater of either: one day for each day you are found to have violated the restriction, or the length of the legal proceeding necessary to secure enforcement of the restriction; provided, however, this extension of time shall be capped so that the extension of time does not exceed two years from the date your employment ended, and if this extension would make the restriction unenforceable under applicable law it will not be applied.

Section 17.    Miscellaneous.

(a)    Amendment, Waiver; Severability; Other Agreements; Headings.  No waiver of any breach of any provision of this Agreement by the Company shall be effective unless it is in writing and no waiver shall be construed to be a waiver of any succeeding breach or as a modification of any provision of this Agreement.  The provisions of this Agreement shall be severable and if any provision of this Agreement is found by any court to be unenforceable, in whole or in part, the remainder of this Agreement shall nevertheless be enforceable and binding on the parties.  You also agree that, unless prohibited by applicable law, the court may, and it is the parties’ intent and agreement that it shall, modify any invalid, overbroad or unenforceable term of this Agreement so that such term, as modified, is valid and enforceable under applicable law.  Further, you acknowledge and agree that you have not, will not, and cannot rely on any representations not expressly made herein.  The terms of this Agreement shall not be amended by you or the Company except by the express written consent of both you and the Company, subject to the terms of the Plan including Section 16.2 thereof.  For avoidance of doubt, nothing in this Agreement shall limit, restrict or supersede any obligations to the Company (including without limitation with respect to fiduciary duties, non-competition, non-solicitation, intellectual property, confidentiality, forfeiture, repayment or recoupment) that you have or may have pursuant to any other law (including common law), agreement or plan, all of which shall continue in full force and effect in accordance with their respective terms.  The paragraph headings in this Agreement are for convenience of reference and in no way define, limit or affect the meaning of this Agreement.

(b)    Assignment and Transfer of Employment.  The rights and/or obligations herein may only be assigned by the Company (except as otherwise expressly set forth herein), may be done without your consent and shall bind and inure to the benefit of the Company, its successors and assigns.  If the Company makes any assignment of the rights and/or obligations herein or transfers your employment or relationship within the Company, you agree that this Agreement shall remain binding upon you. 

(c)    Acceptance.  You agree that this Agreement is accepted by you through your original, electronic or facsimile signature.  You further agree that the Company is deemed to have accepted this Agreement as evidenced by your receipt of the Notice of Restricted Stock Units.

(d)    Third Party Beneficiaries.  This Agreement is intended to benefit each and every Subsidiary, Affiliate, or business unit of the Company for which you perform services, for which you have customer contacts, or about which you receive Confidential Information and may be enforced by any such entity.  You agree and intend to create a direct, consequential benefit to the Company regardless of the Company entity with which you are affiliated on the last day of your employment or relationship with the Company.

(e)    Attorney’s Fees Recovery.  You expressly agree that, in the event of any action to enforce the terms and conditions of Section 7(c), the prevailing party in the action will recover from the non-prevailing party, in addition to any other sum that either party may be called upon to pay, the prevailing party’s reasonable attorney’s fees and costs. The Company shall be deemed the prevailing party if it is awarded any part of the legal or equitable relief it seeks, irrespective of whether some of the relief it seeks is denied or modified.

(f)    State-Specific Modifications (U.S. Only). 

    (i) California. If you are a resident of California, then for so long as you are a resident of California: (aa) Section 14 (Governing Law and Venue) shall not apply; (bb) Section 7(a)(Forfeiture Conditions) shall not apply; and (cc) the restrictions in Section 7(c)(ii) (Non-Solicitation) and (iii) (Non-Competition) shall not apply after your employment with the Company ends. However, any conduct relating to the solicitation of Company’s customers or employees that involves the misappropriation of 
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the Company’s trade secret information, such as its protected customer information, will remain prohibited conduct at all times.

    (ii) Washington. If you are a resident of Washington, then for so long as you are a resident of Washington: (aa) Section 14 (Governing Law and Venue) shall not apply; (bb) Section 7(a)(ii)(Forfeiture Conditions) shall not apply; and (cc) the restrictions in Section 7(c)(ii)(Non-Solicitation) and (iii)(Non-Competition) shall in no event exceed eighteen (18) months after any termination of your employment.

By indicating your acceptance of this Restricted Stock Unit Award, you agree to all the terms and conditions described above and contained in the Notice and in the Plan document.

9Exhibit
10.1

 

HEMOGLOBIN
OXYGEN THERAPEUTICS, INC.

 

January
10, 2022

 

Zafiris
G. Zafirelis

71
Harris Avenue

Needham,
MA 02492

 

RE:
Agreement of Employment

 

Dear
Zaf:

 

We
are pleased to offer you continued employment as the full-time position of Chief Executive Officer (“CEO”) of Hemoglobin
Oxygen Therapeutics, LLC (the “Company”) as of January 10, 2022. As you know, the Company plans to convert to a C
corporation (“Newco”), and upon such conversion, the reference to “Company” herein shall be to Newco.
This offer is contingent upon your agreement to execute the Company’s Nondisclosure, Noncompetition and Assignment of Developments
Agreement (the “Nondisclosure Agreement”), a copy of which is attached hereto as Exhibit A. This letter agreement
(the “Agreement”) summarizes the initial terms of your continued employment.

 

1. Position
and Responsibilities. Upon the terms and conditions herein set forth, you agree to continue to serve as CEO of the Company. In such
capacity, you agree to perform the duties and responsibilities required by this position. You shall devote your business time and efforts
to the performance of your duties hereunder. You will perform the duties of the CEO and as such shall be responsible for aspects of management,
research and development, manufacturing, finance, corporate structure, capital structure, employment matters, and all other aspects of
the Company’s business customarily required of a CEO or as so directed by the Company’s Board of Directors (the “Board”).
Additionally, subject to stockholder ratification and the charter documents of the Company, you shall be a member of the Board. You shall
exercise such powers and comply with and perform, faithfully and to the best of your ability, such directions and duties in relation
to the business and affairs of the Company as may from time to time be vested in or requested of you.

 

If
requested by the Board you shall become and remain a director of any subsidiary of the Company as the Board may from time to time request.
As a director, you shall at all times comply with the applicable governing documents of the subsidiary of which you are a director.

 

You
shall resign from your position as a director of a subsidiary and/or as a director of the Company on request of the Board in accordance
with the applicable Bylaws or immediately upon termination of your employment howsoever arising. You hereby irrevocably appoint each
of the Company and the Company’s secretary to be your attorney to execute any such resignation document and generally to use your
name for the purpose of giving the Company or its nominee the full benefit of this provision.

 

You
shall perform your services under this Agreement at such locations as may be reasonably required by the Company or the Board. Your primary
location of employment will be the Boston, Massachusetts area, but you will be expected to travel from time to time as directed by the
Company or the Board, and in particular to the Company’s facility in Souderton, Pennsylvania.

 

    	1

    	 

    

 

You
shall be subject to all policies, codes and rules of the Company in effect from time to time, including but not limited to policies relating
to sick leave and holidays, disciplinary and grievance matters, code of ethics, and insider trading, and you agree to comply with such
policies.

 

2. Compensation,
Bonuses and Other Benefits. During the term of this Agreement, the Company shall pay you, as compensation for your performance of
your duties and obligations hereunder, the following:

 

(a) Your
annual base salary shall be at an initial rate of $350,000, less applicable withholdings, and shall be payable in conformity with the
Company’s customary payroll practices, as such practices shall be established or modified from time to time.

 

(b) During
your employment, you may be eligible to receive an annual bonus at the sole discretion of the Board (or a committee thereof), based on
the Board’s (or a committee’s) assessment of relevant factors including but not limited to your personal performance, the
performance of the Company, and the availability of cash. No bonus under this paragraph shall be payable to you with respect to any calendar
year during which your employment is terminated for cause. For the avoidance of doubt, payment of an annual bonus in any one or more
years shall not create an entitlement for you to be paid a bonus in any subsequent years, nor will it interfere with the Company’s
discretion in any way with respect to the bonus.

 

(c) You
shall be eligible to participate, to the extent applicable, in all employee benefit plans of the Company in effect from time to time,
including but not limited to the Company’s health insurance program, disability insurance program (if applicable), and any applicable
incentive plan (an “Incentive Plan”). The Company will provide additional information about the health insurance program,
disability insurance program (if applicable), and the Incentive Plan upon request. Your participation in the Company’s employee
benefit plans shall be subject to (i) the terms of the applicable plan documents, (ii) generally applicable Company policies, and (iii)
the discretion of the Company and/or the Board or any administrative or other committee provided for in or contemplated by such plan.
The Company’s current plans and policies shall govern all other benefits. The Company may alter, modify, add to, or delete its
employee benefit plans at any time as the Company and/or the Board, in their sole judgment, determines to be appropriate. The Company
does not currently offer a pension plan benefit.

 

(d) You
shall be eligible to accrue vacation time at the rate of 1.67 days of vacation per full month worked, up to a maximum of 20 days of vacation
per calendar year. You may not carry over any unused vacation time from year to year without prior written approval, and you are not
entitled to payment in lieu of vacation time. However, you will be paid for accrued but unused vacation time during the year in which
your employment terminates.

 

(e) The
Company shall pay or reimburse all reasonable business expenses incurred or paid by you in the performance of your responsibilities hereunder
in accordance with the Company’s prevailing policy and practice relating to reimbursements as established, modified or amended
from time to time. You must provide substantiation and documentation of these expenses to the Company in order to receive reimbursement.

 

    	2

     

    

 

(f) The
Company shall have the right to deduct and withhold from any amounts payable hereunder or pursuant to any other agreements or arrangements
between the Company (and any of its affiliates) and you, any federal, state, local, foreign or other taxes (“Taxes”)
that the Company determines should be withheld with respect to such payments. In the event that the Company does not withhold the proper
amount of Taxes from any such payments, you will make a prompt payment, on demand and in cash, to the Company of the amount under-withheld.

 

 4. Employment Term and Severance.

 

(a) You
and the Company understand and agree that your employment is as an employee at will, and that you may resign, or the Company may terminate
your employment, at any time and for any or for no reason. Nothing in this Agreement shall be construed to alter the at-will nature of
your employment, nor shall anything in this Agreement be construed as providing you with a definite term of employment.

 

(b) In
the event your employment with the Company terminates for any reason (including death or Disability (as hereinafter defined)), the Company
shall pay to you any base salary including accrued but unused vacation pay, expense reimbursements, compensation and benefits under any
applicable plan, and any and all benefits and other similar amounts, accrued but unpaid as of the date of termination. In addition, upon
termination of your employment with the Company by the Company without Cause (as defined below) (but excluding death or Disability),
contingent upon your execution, your personal representative’s execution and delivery of the Release (as defined below), the Company
shall pay to you an amount equal to the greater of (i) your annual base salary in effect immediately prior to termination and (ii) $350,000
(“Severance”), to be paid over a like number of months consistent with the Company’s normal payroll schedule;
provided, however, (x) payment of any Severance is contingent upon execution and delivery to the Company of the Release
and such Release being effective and not revoked by the end of the sixtieth (60th) day following your date of termination
and (y) that in the event of your material breach of the Nondisclosure Agreement, which breach, if reasonably susceptible to cure, has
not been cured to the satisfaction of the Company within ten (10) business days of your receipt of written notice of such breach, then
the Company’s obligation to pay Severance shall terminate and be of no further force or effect. The payment of Severance shall
commence on the sixtieth (60th) day after your date of termination; provided that the Release is effective on such
date. Your rights to any Severance shall constitute your sole remedy in the event of termination of your employment. For purposes of
this Agreement, your termination of employment shall mean your “separation from service” within the meaning of Treasury Regulation
Section 1.409(A)-1(h).

 

(c) “Cause”
shall mean (i) your failure or refusal to render services to the Company in accordance with your obligations under this Agreement; (ii)
a determination by the Board that you have refused to follow the lawful instructions of the Board; (iii) gross negligence, dishonesty
or breach of fiduciary duty; (iv) the commission of an act of fraud, embezzlement, misappropriation of any money or other assets or property
(whether tangible or intangible), deliberate disregard of the rules or policies of the Company, or the commission of any other action
which injures the Company which is done not in good faith and without reasonable belief that your action was in the best interest of
the Company; (v) being charged with a felony or crime of moral turpitude, which in the determination of the Board after reasonable investigation,
may injury the Company or its reputation; or (vi) breach of this Agreement, the Nondisclosure Agreement or any other agreement executed
by you in connection with your employment; provided that with respect to the items set forth in clauses (i), (ii), (iii) or (vi), to
the extent reasonably curable, you have not cured such reason for Cause within ten (10) business days after a written demand for substantial
performance is delivered to you by the Company which specifically identifies the manner in which the Company believes it has the right
to terminate you for Cause. For purposes of this Subsection, no act or failure to act on your part shall be deemed “willful”
unless done or omitted to be done by you not in good faith and without reasonable belief that your action or omission was in the best
interest of the Company.

 

    	3

     

    

 

(d) “Disability”
You shall be deemed to have a Disability for purposes of this Agreement either (i) if you are deemed disabled for purposes of any group
or individual disability policy paid for by the Company and at the time in effect, or (ii) if, in the good faith judgment of the Board,
you are substantially unable to perform your duties under this Agreement for more than ninety (90) days, whether or not consecutive,
in any twelve (12) month period, by reason of a physical or mental illness or injury.

 

(e) “Release”
shall mean a waiver and release (including confidentiality and non- disparagement provisions), based on the Company’s standard
form or other reasonable form, of any and all claims you may have against the Company and its parents, subsidiaries, affiliates, predecessors
and successors, as well as each of their past, present and future stockholders, directors, officers, employees, consultants, representatives,
attorneys, insurers, agents, assigns, any other legal entity describing the organizations or through which any of them conducts business,
and their employee benefits plans and trustees, fiduciaries, and administrators of those plans.

 

(f) Payments
of Severance to you shall be bifurcated into two portions, consisting of the portion, if any, that includes the maximum amount of the
payments that does not constitute “nonqualified deferred compensation” within the meaning of Section 409A of the Code, and
the portion, if any, that includes the excess of the total payments that does constitute nonqualified deferred compensation. Payments
hereunder shall first be made from the portion that does not consist of nonqualified deferred compensation until such portion is exhausted
and then shall be made from the portion that does constitute nonqualified deferred compensation. Notwithstanding the foregoing, if you
are a “specified employee” as defined in Section 409A(a)(3)(B)(i) of the Code, the commencement of the delivery of the portion
that constitutes nonqualified deferred compensation will be delayed to the date that is 6 months and one day after your termination of
employment (the “Earliest Payment Date”). Any payments that are delayed pursuant to the preceding sentence shall be
paid pro rata during the period beginning on the Earliest Payment Date and ending on the date that is 6 months following the Earliest
Payment Date. The determination of whether, and the extent to which, any of the payments to be made to you hereunder are nonqualified
deferred compensation shall be made after the application of all applicable exclusions under Treasury Reg. § 1.409A-1(b)(9). Any
payments that are intended to qualify for the exclusion for separation pay due to involuntary separation from service set forth in Treasury
Regulation Section 1.409A-1(b)(9)(iii) must be paid no later than the last day of the second taxable year of you following the taxable
year of you in which your termination of employment occurs.

 

(g) This
Agreement is intended to comply with the provisions of Section 409A and the Agreement shall, to the extent practicable, be construed
in accordance therewith. Terms defined in the Agreement shall have the meanings given such terms under Section 409A if and to the extent
required in order to comply with Section 409A. No payments to be made under this Agreement may be accelerated or deferred except as specifically
permitted under Section 409A. In the event that the Agreement shall be deemed not to comply with Section 409A, then neither the Company,
the Company’s Board s nor its or their designees or agents shall be liable to you or other person for actions, decisions or determinations
made in good faith.

 

    	4

     

    

 

(h) Neither
the Company nor you shall have the right to accelerate or defer the delivery of any payments except to the extent specifically permitted
or required by Section 409A.

 

5. Disability.
The Company intends to provide disability insurance. You agree to abide by the terms of such insurance policy and any policy of the Company
applicable to disabled employees in effect from time to time.

 

6. Survival
of Certain Provisions. Provisions of this Agreement shall survive any termination of employment or termination or expiration of this
Agreement if so provided herein or if necessary or desirable to fully accomplish the purposes of such provision. Without limiting the
foregoing, your obligations under the Nondisclosure Agreement expressly survive any termination of employment or termination or expiration
of this Agreement. The obligation of the Company to make payments to you or on your behalf under Section 4 hereof is expressly conditioned
upon your continued full performance of the obligations under the terms of the Nondisclosure Agreement executed herewith between you
and the Company.

 

7. Consent
and Waiver by Third Parties. You hereby represent that you have obtained all waivers and/or consents from third parties which are
necessary to enable you to enjoy employment with the Company on the terms and conditions set forth herein and to execute and perform
this Agreement without being in conflict with any other agreement, obligation or understanding with any such third party. You represent
that you are not bound by any agreement or any other existing or previous business relationship which conflicts with, or may conflict
with, the performance of your obligations hereunder or prevent the full performance of your duties and obligations hereunder.

 

8. Governing
Law. This Agreement, the employment relationship contemplated herein and any claim arising from such relationship, whether or not
arising under this Agreement, shall be governed by and construed in accordance with the internal laws of Massachusetts, without giving
effect to the principles of choice of law or conflicts of laws. Any claims or legal actions by one party against the other arising out
of the relationship between the parties contemplated herein (whether or not arising under this Agreement) shall be commenced or maintained
in any state or federal court located in Delaware, and you and the Company each hereby submit to the jurisdiction and venue of any such
court.

 

9. Severability.
In case any one or more of the provisions contained in this Agreement or the other agreements executed in connection with the transactions
contemplated hereby for any reason shall be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality
or unenforceability shall not affect any other provision of this Agreement or such other agreements, but this Agreement or such other
agreements, as the case may be, shall be construed and reformed to the maximum extent permitted by law.

 

10. Waivers
and Modifications. No waiver by the Company of any breach by you of any provision hereof shall be deemed to be a waiver of any later
or other breach thereof or as a waiver of any other provision of this Agreement. This Agreement and its terms may not be waived, changed,
discharged or terminated orally or by any course of dealing between the parties, but only by an instrument in writing signed by the party
against whom any waiver, change, discharge or termination is sought. No modification or waiver by the Company shall be effective without
the consent of the Board or its designee.

 

    	5

     

    

 

11. Assignment.
You acknowledge that the services to be rendered by you hereunder are unique and personal in nature. Accordingly, you may not assign
any of your rights or delegate any of your duties or obligations under this Agreement. The rights and obligations of the Company under
this Agreement may be assigned by the Company and shall inure to the benefit of, and shall be binding upon, the successors and assigns
of the Company.

 

12. Acknowledgments.
You hereby acknowledge and recognize that the enforcement of any of the provisions in this Agreement and the Nondisclosure Agreement
executed herewith may potentially interfere with your ability to pursue a proper livelihood. You represent that you are knowledgeable
about the business of the Company. You recognize and agree that the enforcement of the Nondisclosure Agreement is necessary to ensure
the preservation, protection and continuity of the Company’s business, trade secrets and goodwill. You agree that, due to the proprietary
nature of the Company’s business, the restrictions set forth in the Nondisclosure Agreement are reasonable as to time and scope.

 

13. Entire
Agreement. This Agreement and the Nondisclosure Agreement executed herewith, constitute the entire understanding of the parties relating
to the subject matter hereof and supersede and cancel all agreements relating to the subject matter hereof, whether written or oral,
made prior to the date hereof between you and the Company or any of its affiliates.

 

14. Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original, but all of which together
shall constitute one and the same instrument. If the foregoing accurately sets forth our agreement, please indicate by signing and returning
to us both copies of this Agreement and the enclosed Nondisclosure Agreement. We will return fully- executed copies of both agreements
for your records.

 

Very
truly yours,

 

	HEMOGLOBIN
    OXYGEN THERAPEUTICS, LLC.	Accepted
    and Agreed:
	 	 	 	 	 
	By:
    	 	 	By:	 
	 	 	 	 	 
	Name:	Igor
    Serov	 	Name:	Zafiris
    G. Zafirelis
	 	 	 	 	 
	 	 	 	 	 
	Title:
    	CFO	 	Date:	January
    10, 2022

 

    	6

     

    

 

EXHIBIT
A

 

NONDISCLOSURE,
NONCOMPETITION AND 

ASSIGNMENT
OF DEVELOPMENTS AGREEMENT

 

This
Nondisclosure, Noncompetition and Assignment of Developments Agreement (this “Nondisclosure Agreement”) is made as
of this 10 day of January, 2022 by and between Zafiris G. Zafirelis, an individual, and Hemoglobin Oxygen Therapeutics, LLC. a corporation
with offices at 674 Souder Road, Souderton PA 18964, USA (the “Company”). Upon conversion of the Company to a C corporation
(“Newco”), references herein to the Company shall be to Newco.

 

WHEREAS,
the Company’s business is conducted throughout the world and its reputation and goodwill are an integral part of its business success;

 

WHEREAS,
my position with the Company shall require that I be trusted with extensive confidential and trade secret information of the Company
and that I develop a thorough and comprehensive knowledge of details of the Company’s business, including, but not limited to,
information relating to development, inventions, processes, financial and strategic planning, marketing, distribution and licensing of
the Company’s products and services. The Company will not provide, and will not agree to continue to provide, me with this information
unless I provide the necessary assurances and commitments to protect this information and the Company’s line of business as more
fully set forth herein; and

 

WHEREAS,
as an additional material inducement for me to enter into this Nondisclosure Agreement, the Company shall provide me with the Employment
Agreement, which is ancillary to the Nondisclosure Agreement and is to be executed in connection herewith (the “Employment Agreement”),
which includes eligibility for certain severance benefits as set forth therein.

 

NOW,
THEREFORE, in consideration for the Company providing me with the Employment Agreement, and in consideration for my continued employment
by the Company, subject to the policies, procedures and practices that the Company may establish from time to time, the compensation
I shall receive from the Company during my employment and other good and valuable consideration, and as a material inducement for the
Company to disclose to me in connection with its business certain confidential, proprietary and/or trade secret information described
below, and intending to be legally bound, I hereby agree as follows:

 

1. Best
Efforts. During the period of my employment by the Company, I shall devote my full time and best efforts to the business of the Company
during normal and other customary business hours, and I shall not engage in any other business activity, whether or not such business
activity is pursued for gain, profit, or other pecuniary advantage, which may tend to (i) interfere with the performance of any job duties
and responsibilities assigned to me by the Company, (ii) create a conflict of interest, or (iii) be competitive with the business activities
of the Company; provided that I may, to the extent not otherwise prohibited by this Agreement (including without limitation Section 8),
devote such amount of time as does not interfere or compete with the performance of my duties under the Employment Agreement to any one
or more of the following activities: (i) investing my personal assets in the record or beneficial ownership of five percent (5%) or less
of the outstanding publicly traded capital stock of any entity; or (ii) engaging in charitable activities, including serving on the Boards
of Directors of charitable organizations.

 

    	 

     

    

 

2. Nondisclosure
Obligation. I shall not at any time, whether during or after the termination of my employment, reveal to any person or entity any
Confidential Information, except to employees, authorized agents, and professional advisors of the Company who need to know such Confidential
Information for the purposes of their employment or affiliation with the Company and other third parties, or as otherwise authorized
by the Company. The term “Confidential Information” shall include any information concerning the organization, business
or finances of the Company or of any third party that the Company is under an obligation to keep confidential or that is maintained by
the Company as confidential. Such Confidential Information shall include, but is not limited to, trade secrets, proprietary or confidential
information respecting the identity of the Company’s customers; the identity of distributors and suppliers of the Company; the
identity of representatives responsible for entering into contracts with the Company; specific customer, distributor and supplier needs
and requirements; the details of contracts and proposals between the Company and its customers, distributors and suppliers; selling and
marketing strategies, prices, costs and profit margins; the names, addresses and other contact information of purchasing agents, vendors
or other entities; purchasing techniques, methods, procedures and processes; manufacturing and production techniques, methods, procedures
and processes; other techniques, methodologies and processes used by the Company in the conduct of its business; techniques, methods,
procedures, know-how, blueprints, engineering data, prototypes and technical specifications; computer data, software, software codes,
computer models, works of authorship, research projects, data processing and other programs; production and manufacturing equipment and
operating practices; information with respect to products and product formulae, designs, plans for future business, new business, products
or other developments; new or innovative ideas, customer proposals, marketing plans and ideas, and future developments or strategies;
information pertaining to research and development, acquisitions or divestitures, marketing and sales, cost cutting, revenue generation,
or other matters concerning the Company’s planning and strategy; personnel information, and other nonpublic financial and other
information of the Company disclosed to or known by me as a consequence of or through my employment (or other service relationship) with
the Company (including information conceived, originated, discovered or developed by me), which information is not generally known in
the relevant trade or industry or public knowledge. I shall keep confidential all matters entrusted to me and shall not use or attempt
to use any Confidential Information except as may be required in the ordinary course of performing my duties as an employee of the Company,
nor shall I use any Confidential Information in any manner which may injure or cause loss or may be calculated to injure or cause loss
to the Company, whether directly or indirectly.

 

3. Company
Property. I agree that during my employment, I shall not make, use or permit to be used any Company Property otherwise than for the
benefit of the Company. The term “Company Property” shall include all notes, memoranda, reports, lists, cost sheets,
records, drawings, designs, sketches, specifications, blue prints, prototypes, estimates, databases, software programs, software code,
data, proprietary processes, computers, cellular telephones, pagers, credit and/or calling cards, keys, access cards, documentation,
automobiles or other equipment or materials of any nature and in any form, whether written, printed, electronic or in digital format
or otherwise, relating to any matter within the scope of the business of the Company or concerning any of its dealings or affairs and
any other Company property in my possession, custody or control. I further agree that I shall not, after the termination of my employment,
use or permit others to use any such Company Property. I acknowledge and agree that all Company Property shall be and remain the sole
and exclusive property of the Company. Immediately upon the termination of my employment, I shall deliver all Company Property in my
possession, and all copies thereof, to the Company.

 

    	2

     

    

 

 4. Assignment of Developments.

 

(a)
If at any time during my employment, I shall (either alone or with others) make, conceive, create, certify, discover, invent or
reduce to practice any Development (as defined below) that (i) relates to the business of the Company or any customer of or supplier
to the Company or any of the products or services being developed, certified, manufactured or sold by the Company or which may be
used in relation therewith; or (ii) results from tasks assigned to me by the Company; or (iii) results from the use of premises or
personal property (whether tangible or intangible) owned, leased or contracted for by the Company, then all such Developments and
the benefits thereof are and shall immediately become the sole and absolute property of the Company and its assigns, as works made
for hire or otherwise. The term “Development” shall mean any invention, modification, discovery, design,
development, improvement, process, software program, work of authorship, documentation, formula, data, technique, know-how, trade
secret, certification or intellectual property right whatsoever or any interest therein (whether or not patentable or registrable
under copyright, trademark or similar statutes). I shall promptly disclose to the Company (or any person(s) designated by it) each
such Development. I hereby assign all rights (including, but not limited to, rights to inventions, moral rights, patentable subject
matter, copyrights and trademarks) I may have or may acquire in any Development and all benefits and/or rights resulting therefrom
to the Company and its assigns without further compensation and shall communicate, without cost or delay, and without disclosing to
others the same, all available information relating thereto (with all necessary plans and models) to the Company.

 

(b) I
recognize that Developments or Confidential Information relating to my activities while working for the Company and conceived or made
by me, alone or with others, within three (3) months after termination of my employment may have been conceived in significant part while
employed by the Company. Accordingly, I agree that such Developments and Confidential Information shall be presumed to have been conceived
during my employment with the Company and are to be assigned to the Company unless and until I have established the contrary.

 

5. Further
Assurances. I shall, during my employment and at any time thereafter, at the request and cost of the Company, promptly sign, execute,
make and do all such deeds, documents, acts and things as the Company and its duly authorized officers may reasonably require:

 

(a) to
apply for, obtain, register and vest in the name of the Company alone (unless the Company otherwise directs) patents, copyrights, trademarks
or other analogous protection in any country throughout the world relating to a Development and when so obtained or vested to renew and
restore the same; and

 

(b) to
defend any judicial, opposition or other proceedings with respect to such applications and any judicial, opposition or other proceeding,
petition or application for revocation of any such patent, copyright, trademark, certifications or other analogous protection.

 

If
the Company is unable, after reasonable effort, to secure my signature on any application for patent, copyright, trademark or other analogous
protection or other documents regarding any legal protection relating to a Development, whether because of my physical or mental incapacity
or for any other reason whatsoever, I hereby irrevocably designate and appoint the Company and its duly authorized officers and agents
as my agent and attorney-in-fact, to act for and in my behalf and stead to execute and file any such application or applications or other
documents and to do all other lawfully permitted acts to further the prosecution and issuance of patent, copyright or trademark registrations
or any other legal protection thereon with the same legal force and effect as if executed by me.

 

    	3

     

    

 

6. Nonsolicitation
of Customers. During the period of my employment by the Company and for twelve (12) months following the termination of my employment,
regardless of the reasons for my termination, I shall not, directly or indirectly, alone or as an owner, member, manager, partner, officer,
employee, director, investor, lender, consultant or independent contractor of any entity, call upon, solicit, divert or take away or
attempt to divert or take away or do business with, either for myself or for any other person or entity, any current or prospective customers
or accounts of the Company that I had contact with, for whom I performed services on behalf of the Company, or about whom I obtained
Confidential Information through the Company for the purpose of competing (i.e., by providing the Products and Services, as defined
below), whether directly or indirectly, nor shall I make known to any other person or entity, either directly or indirectly, the names
and addresses of and other pertinent information relating to any such customers or accounts, or any Confidential Information relating
to any of them.

 

7. Non-solicitation
of suppliers. During the period of my employment with the Company and for 12 months following the termination of my employment, regardless
of the reasons for my termination, I shall not do or attempt to do anything which causes or may cause any entity which has supplied products
or services to the Company to cease, alter or materially to reduce its supplies to the Company or alter its terms of business with and
to the detriment of the Company.

 

8. Noncompetition.
During the period of my employment by the Company and for twelve (12) months following the termination of my employment,
regardless of the reasons for my termination, I shall not, anywhere where the Company conducts business directly or indirectly,
alone or as an owner, member, manager, partner, officer, agent, employee, director, investor, lender, consultant or independent
contractor of any entity, (a) accept employment or establish any other relationship with any business that is in competition,
whether directly or indirectly, with the products or services being created, certified, developed, manufactured or planning to be
manufactured, marketed or planning to be marketed, distributed or planning to be distributed, or sold or planning to be sold by the
Company at the termination of my employment (collectively, the “Products and Services”), or (b) engage in any
business or activity that is in competition with the Products and Services. For purposes of this Section, Products and Services
shall include, without limitation any products or services substantially similar to the products and services designed, conceived,
marketed, distributed or developed by the Company at the time of the termination of my employment. Notwithstanding the foregoing,
the record or beneficial ownership by me of five (5) percent (5%) or less of the outstanding publicly traded capital stock of any
entity shall not be deemed, in and of itself, to be in violation of this Section 8.

 

 9. Nonsolicitation of Employees.

 

(a)
During the period of my employment by the Company and for twelve (12) months following the termination of my employment, regardless of
the reasons for the termination, I will not, in any manner, directly or indirectly, hire or engage, or assist any company or business
organization by which I am employed or which is directly or indirectly controlled by me to hire or engage, any person who is or was employed
by the Company (or is or was an agent, representative, contractor, project consultant or consultant of the Company) at the time of my
termination or during the period of twelve (12) months prior thereto.

 

    	4

     

    

 

(b) During
the period of my employment by the Company and for twelve (12) months following the termination of my employment, regardless of the reasons
for the termination, I will not, in any manner, directly or indirectly, solicit, recruit or induce, or assist any company or business
organization by which I am employed or which is directly or indirectly controlled by me to solicit, recruit or induce, any person who
is or was employed by the Company (or is or was an agent, representative, contractor, project consultant or consultant of the Company)
at the time of my termination or during the period of twelve (12) months prior thereto, to leave his or her employment, relationship
or engagement with the Company.

 

11. Nondisparagement.
I agree that at all times during and after my employment with the Company, regardless of the reason for my termination, I shall not disparage
the Company, its products, services, agents or employees.

 

12. Employment
Status. I understand that this Nondisclosure Agreement does not constitute an implied or written employment contract.

 

13. Severability.
I hereby agree that each provision and the subparts of each provision herein shall be treated as separate and independent clauses, and
the unenforceability of any one clause shall in no way impair the enforceability of any of the other clauses of the Nondisclosure Agreement.
Moreover, if one or more of the provisions contained in this Nondisclosure Agreement shall for any reason be held to be excessively broad
as to scope, activity, subject or otherwise so as to be unenforceable at law, such provision or provisions shall be construed by the
appropriate judicial body by limiting or reducing it or them, so as to be enforceable to the maximum extent compatible with the applicable
law as it shall then appear. I hereby further agree that the language of all parts of this Nondisclosure Agreement shall in all cases
be construed as a whole according to its fair meaning and not strictly for or against either of the parties.

 

14. Amendments;
Waiver. Any amendment to or modification of this Nondisclosure Agreement, or any waiver of any provision hereof, shall be in writing
and signed by the Company and me. Any waiver by the Company of a breach of any provision of this Nondisclosure Agreement shall not operate
or be construed as a waiver of any subsequent breach of such provision or any other provision hereof.

 

15. Survival.
This Nondisclosure Agreement shall be effective as of the date entered below. My obligations under this Nondisclosure Agreement shall
survive the termination of my employment regardless of the reason for or the manner of such termination and shall be binding upon my
heirs, executors, administrators and legal representatives.

 

16. Assignment.
The Company shall have the right to assign this Nondisclosure Agreement to its successors and assigns, and all covenants and agreements
hereunder shall inure to the benefit of and be enforceable by said successors or assigns. However, I may not assign this Nondisclosure
Agreement.

 

    	5

     

    

 

17. Notification.
I agree and acknowledge that during my employment with the Company and for a period of twelve (12) months following the termination of
my employment with Company for any reason, I shall inform each new employer I may have, prior to accepting employment, of the existence
of this Nondisclosure Agreement, and I shall provide each such employer with a copy of this Nondisclosure Agreement. I also agree and
acknowledge that the Company has the right to independently contact any potential or actual future employer of mine to notify the future
employer of my obligations under this Nondisclosure Agreement and provide such future employer with a copy of this Nondisclosure Agreement.
The Company also shall be entitled to notify such actual or potential future employer of the Company’s understanding of the requirements
of this Nondisclosure Agreement and what steps, if any, the Company intends to take to insure compliance with or enforcement of this
Nondisclosure Agreement.

 

 18. Representations.

 

(a) I
represent that my employment with the Company and my performance of all of the terms of this Nondisclosure Agreement do not and will
not breach any agreement to keep in confidence proprietary information acquired by me in confidence or in trust prior to my employment
by the Company. I have not entered into, and I shall not enter into, any agreement either written or oral in conflict herewith.

 

(b) I
further agree that any breach of this Nondisclosure Agreement by me will cause irreparable damage to the Company and that in the event
of such breach the Company shall have, in addition to any and all remedies of law, the right to an injunction, specific performance or
other equitable relief to prevent the violation of my obligations hereunder. The Company may apply for such injunctive relief in any
court of competent jurisdiction without the necessity of posting any bond or other security.

 

19. Governing
Law; Forum Selection Clause. This Nondisclosure Agreement and any claims arising out of this Nondisclosure Agreement (or any other
claims arising out of the relationship between the parties) shall be governed by and construed in accordance with the laws of Massachusetts
and shall in all respects be interpreted, enforced and governed under the internal and domestic laws thereof, without giving effect to
the principles of conflicts of laws of Massachusetts. Any claims or legal actions by one party against the other shall be commenced and
maintained in any state or federal court located in Massachusetts and I and the Company each hereby submit to the jurisdiction and venue
of any such court.

 

20. Entire
Agreement. This Nondisclosure Agreement and the Employment Agreement executed in connection herewith, set forth the complete, sole
and entire agreement between the parties on the subject matter herein and supersede any and all other agreements, negotiations, discussions,
proposals, or understandings, whether oral or written, previously entered into, discussed or considered by the parties on the subject
matter herein.

 

***************

 

    	6

     

    

 

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

 

	HEMOGLOBIN
    OXYGEN THERAPEUTICS, LLC	 	 
	 	 	 	 	 
	By:
    	 	 	By:	 
	 	 	 	 	 
	Name:	 Igor
    Serov	 	Name:	
     Zafiris G. Zafirelis
	 	 	 	 	 
	 	 	 	 	 
	Its:	CFO	 	 	 

 

    	7

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