Document:

Exhibit

Exhibit 10.30

CONSULTING AGREEMENT
This CONSULTING AGREEMENT (this “Agreement”) is entered into as of February 19, 2019 (the “Effective Date”), by and among, Innovate Biopharmaceuticals, Inc. a Delaware corporation, headquartered in North Carolina (the “Company”), and Christopher P. Prior, Ph.D.  (“Consultant”).  For purposes of this Agreement, the Company and Consultant may be referred to individually as a “Party” and collectively as the “Parties.”
    

RECITALS

Consultant was employed as Chief Executive Officer of the Company until February 19, 2019, when his employment terminated (the “Separation Date”).  Consultant is subject to a Separation and General Release Agreement with the Company (the “Separation Agreement”), executed on February 19, 2019, and a Proprietary Information, Inventions, Non-Competition and Non-Solicitation Agreement with the Company, dated March 11, 2018 (the “Proprietary Information Agreement”).
Consultant desires to provide services to the Company to assist with transition following the separation from employment, and the Company wishes to retain Consultant’s services; and

The Parties desire for the provision of such services to be governed by the terms and conditions of this Agreement.

NOW, THEREFORE, in consideration of the premises above, the mutual promises set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

1.Description of Services.  Consultant agrees to provide such consulting services as the Company may request from time to time relating to Consultant’s experience and knowledge in the industry, as well as other services that may reasonably be requested by the Company (the “Services”). Consultant shall report to and take direction from the Executive Chairman (the “EC”) of the Company and such other persons as designated by the Company (the “Company Designee(s)”). Consultant will use Consultant’s own equipment, including, without limitation, any computers, telephones, office, and any other equipment or materials needed to perform the Services under this Agreement.  Consultant shall be available to provide consulting services at such times and in such amount as reasonably requested by the EC and/or as necessary; it being agreed that the Company and Consultant do not anticipate that such services shall exceed 20% of Consultant’s average amount of work time during the thirty six (36) month period prior to the Separation Date (or the full period of services, if shorter), in order to ensure that Consultant’s separation from employment with the Company is considered a “Separation from Service” within the meaning of Section 409A of the Internal Revenue Code.  

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2.Compensation for Consulting and Expenses.  The Company shall pay Consultant Three Hundred Fifty and 00/100 Dollars ($350.00) per hour (the “Consulting Fees”) for Services provided hereunder.  Consultant shall submit monthly invoices outlining the hours of Services provided each month along with any reasonable expenses, pre-approved by the Company Designee in writing (including reasonable travel expenses), and the Company shall pay such invoices within thirty (30) days of its receipt of the same.  Consultant shall keep records of time worked and expenses incurred, and to make such records available to the Company at reasonable times and on reasonable advance notice.

3.Term and Termination.  

(a)    Term.  The term of this Agreement begins on the Effective Date and continues for twelve (12) months thereafter unless earlier terminated as provided in this Section 4 (the “Term”).  The Parties may extend the Term by mutual agreement.

(b)    Early Termination of Consulting Term by Company.  The Company may terminate this Agreement before the end of the Term at any time for any reason by providing Consulting with written notice of such termination.  At such time, the Company shall pay Consultant for any services provided through the effective termination date that are unpaid.

(c)    Early Termination of Consulting Term by Consultant. The Consultant may terminate this Agreement before the end of the Term at any time if the Company has failed to provide Consultant with the compensation due under Section 2 of this Agreement, provided that Consultant has first advised the Company in writing of such breach and the Company has failed to remedy such breach in ten (10) days, and otherwise upon thirty (30) days’ prior written notice to the Company.    

4.Relationship of Parties – Independent Contractor Status.  The Parties hereby acknowledge and agree that Consultant’s Services for the Company shall be provided strictly as an independent contractor.  Nothing in this Agreement shall be construed to render Consultant an employee, co-venturer, agent, or other representative of the Company.  Consultant understands that Consultant must comply with all tax laws applicable to a self-employed individual, including the filing of any necessary tax returns and the payment of all income and self-employment taxes.  The Company shall not be required to withhold from payments of the Consulting Fees any state or federal income taxes or to make payments for any Social Security, Medicare, unemployment insurance, or any other payroll taxes. The Company shall not be responsible for, and shall not obtain, worker’s compensation insurance, disability benefits insurance, or unemployment security insurance coverage for Consultant.  Consultant is not eligible for, nor entitled to, and shall not participate in, any of the Company’s pension, health, or other benefit plans, if any such plans exist.  Consistent with the duties and obligations under this Agreement, Consultant shall, at all times, maintain sole and exclusive control over the manner and method by which Consultant performs the Services.  

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5.Warranties by Consultant.  Consultant represents and warrants as follows:

(a)    Consultant has the knowledge and skills required to perform the Services under this Agreement, and will provide the Services in a commercially reasonable manner and consistent with industry standards.  Consultant will perform the Services in compliance with all applicable federal, state and local laws and regulations.  Consultant will perform the Services in compliance with all Company rules and regulations, including those relating to personal conduct, ethics and data security.

(b)    Consultant’s performance of Services under this Agreement will not result in a breach of any duty owed by Consultant to another, under contract or otherwise, or violate any confidence of another. 

(c)    Consultant will not disclose to the Company or induce the Company to use any confidential or proprietary information belonging to any of Consultant’s previous or present employers or others, other than the Company.  

(d)    Consultant has not executed any non-competition, nondisclosure or confidentiality agreements that would in any way interfere with Consultant’s work for the Company.  

(e)    All materials delivered to the Company under this Agreement shall be original work and shall not violate any copyright, mask works, trade secret or other proprietary rights of any third party.  

6.Notices.  All notices, requests, consents, approvals, and other communications to, upon, and between the parties shall be in writing and shall be deemed to have been given, delivered, made, and received when:  

(a)personally delivered;

(b)deposited for next day delivery by Federal Express, or other similar overnight courier services; or

(c)transmitted to the attention of the applicable party at the following addresses:

If to the Company,

Innovate Biopharmaceuticals, Inc.
8480 Honeycutt Road, Suite 120
Raleigh, NC 27615
Attn: Kendyle Woodard            
Email: kwoodard@innovatebiopharma.com

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If to the Consultant:

Christopher P. Prior, Ph.D.
460 Wyldhaven Road
Rosemont, PA 19010
Email:  priorcp@yahoo.com

7.Proprietary Information Agreement. Executive is subject to the Proprietary Information, Inventions, Non-Competition and Non-Solicitation Agreement, dated March 11, 2018 (the “Proprietary Information Agreement”).  Executive acknowledges and agrees that Executive will continue to be bound by and subject to the Proprietary Information Agreement, in accordance with its terms, as amended by the Separation Agreement, and that such Proprietary Information Agreement shall apply to Consultant’s services hereunder.

8.Indemnification.  Consultant will defend, indemnify and hold harmless the Company and its affiliates and their officers, directors, employees, agents, successors and assigns from and against all losses, damages, liabilities, deficiencies, actions, judgments, interest, awards, penalties, fines, costs or expenses of whatever kind (including reasonable attorneys' fees) arising out of or resulting from: (i) damage to real or tangible, personal property resulting from Consultant’s negligent or willful acts or omissions; and (ii) Consultant’s breach of any representation, warranty, covenant or obligation under this Agreement.  The Company may satisfy such indemnity (in whole or in part) by way of deduction from any payment due to Consultant under this Agreement or otherwise.  The Company will indemnify, defend and hold consultant harmless from any losses, damages and liabilities (including legal fees and court costs) arising from claims, demands or suits brought by third parties based on Consultant’s performance of the services under this Agreement, except to the extent such losses, damages and liabilities are caused by Consultant’s gross negligence or willful misconduct or breach of this Agreement.  

9.Waiver.  No waiver of any right or remedy with respect to any occurrence or event shall be deemed a waiver of such right or remedy with respect to such occurrence or event in the future.  No waiver of any of Consultant’s obligations under this Agreement shall be effective unless in writing and signed by the Company.

10.Assignment.  The terms, provisions, covenants and agreements contained in this Agreement shall apply to, be binding upon and inure to the benefit of the Company’s successors and assigns.  For clarity and the avoidance of doubt, the Company, at its discretion, may assign this Agreement to any affiliate or successor.  Because this Agreement is personal to Consultant, Consultant may not assign this Agreement.

11.Severability.  In case any one or more of the provisions contained in this Agreement shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, Consultant agrees and acknowledges that such invalidity, illegality or unenforceability shall not affect the other provisions of this Agreement, and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein.

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12.Governing Law and Consent to Jurisdiction.  This Agreement shall be construed, interpreted, and governed in accordance with and by North Carolina law. Any and all claims, controversies, and causes of action arising out of or relating to this Agreement, whether sounding in contract, tort, or statute, shall be governed by the laws of the state of North Carolina, including its statutes of limitations, without giving effect to any conflict-of-laws rule that would result in the application of the laws of a different jurisdiction.  Consultant agrees with the Company: (a) that service of process may be effected upon Consultant by registered mail sent to the address for notices described in this Agreement, and (b) to the uncontested enforcement of a final judgment from a court with competent jurisdiction over Consultant.

13.Entire Agreement; Amendment.  Except for the Separation Agreement and the Proprietary Information Agreement, and as otherwise provided in this Agreement, this Agreement embodies the entire agreement between the Company and Consultant relating to the subject matter hereof.  No changes, modifications or amendments of any term hereof shall be valid unless agreed upon by the Parties in writing. 

14.Tax Consequences.  Consultant acknowledges that neither the Company nor any employee or agent of the Company has advised Consultant with respect to any tax consequences related to this Agreement nor potential tax consequences with respect to the consideration payable under this Agreement, whether cash, property or other value.  Consultant assumes full responsibility for all such tax consequences and the filing of all tax returns and elections Consultant may be required to or find desirable to file in connection with this Agreement. 

15.Survival. The provisions of this Agreement shall survive the termination of the Term of this Agreement and/or the assignment of this Agreement by the Company to any successor in interest or other assignee. 

16.Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which shall be taken together and deemed to be one instrument.

[Signatures on Following Page]

    

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(Signature Page for Consulting Agreement)

IN WITNESS WHEREOF, the undersigned have duly executed this Agreement as of the date first above written.

CONSULTANT:

/s/ Christopher P. Prior            
Christopher P. Prior, Ph.D.

INNOVATE BIOPHARMACEUTICALS, INC.

By:     /s/ Jay Madan                
Name:    Jay Madan
Title:    PresidentExhibit

Exhibit 10.33

SEPARATION AND GENERAL RELEASE AGREEMENT

This SEPARATION AND GENERAL RELEASE AGREEMENT (the “Agreement”) is made and entered into between Innovate Biopharmaceuticals, Inc., a Delaware corporation (the “Company”), and June S. Almenoff, MD, PhD (“Executive”).  Throughout the remainder of the Agreement, the Company and Executive may be collectively referred to as “the parties.”

Executive was employed as Chief Medical Officer and Chief Operating Officer of the Company pursuant to an employment agreement between the parties dated March 9, 2018 (the “Employment Agreement”).  Executive is also a party to a Proprietary Information, Inventions, Non-Competition and Non-Solicitation Agreement with the Company, dated March 9, 2018 (the “Proprietary Information Agreement”).

Executive’s employment terminated without cause as of November 16, 2018.  The parties wish to provide for the payment of severance benefits to Executive under her Employment Agreement as set forth in this Agreement.

Executive represents that she has carefully read this entire Agreement, understands its consequences, and voluntarily enters into it.
NOW THEREFORE, in consideration of the above and the mutual promises set forth below, Executive and the Company agree as follows:
1.SEPARATION.  Executive’s employment with the Company terminated on November 16, 2018 (the “Separation Date”).  Pursuant to Section 5(d) of the Employment Agreement, as of the Separation Date, Executive no longer held any officer positions with the Company. Executive will be paid all accrued unused vacation on the first regularly scheduled payroll date which occurs at least 5 days after the Separation Date.

2.SEPARATION BENEFITS.  In consideration of the release of claims and other promises contained herein and on the condition that Executive fully complies with her obligations under this Agreement and the Proprietary Information Agreement, the Company will provide Executive with the following provided that this Agreement has become effective under Section 8 of this Agreement:

(a)    Severance Pay.  Pursuant to Section 5(c)(ii)(1) of the Employment Agreement, the Company shall pay to Executive Three Hundred Twenty Thousand and 00/100 Dollars ($320,000) (less applicable withholdings), payable in equal installments over a twelve (12) month period in accordance with the Company’s current payroll schedule commencing on the Company’s first regularly scheduled pay date following the Effective Date of this Agreement pursuant to Section 8, subject to Section 15(c). 

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(b)    Benefits.  Pursuant to Section 5(c)(ii)(2) of the Employment Agreement, conditioned on Executive’s eligibility for, and Executive’s proper and timely election to continue health insurance benefits under COBRA after the Separation Date, reimbursement of the additional costs actually incurred by Executive for continuing such benefits at the same level in which Executive participated prior to the Separation Date for the shorter of (i) to twelve (12) months following the Separation Date or (ii) until Executive obtains reasonably comparable coverage, with such reimbursements to commence on the first regular payroll date following the Effective Date of this Agreement pursuant to Section 8, subject to Section 15(c). Such reimbursements are subject to Executive providing appropriate proof of the costs for such premiums.

(c)    Equity Awards. For the avoidance of doubt, and subject to approval by the Company’s stockholders of the proposed amendment to the Company’s 2012 Omnibus Incentive Plan (the “Plan”) to, among other things, increase the number of shares authorized for issuance thereunder, Executive shall (i) be vested in 155,206 options to purchase shares of the common stock of the Company, pursuant to the terms of the Notice of Grant of Non-Qualified Stock Option Award, dated September 7, 2018, and (ii) be vested in 19,379 options to purchase shares of the common stock of the Company, pursuant to the terms of the Notice of Grant of Incentive Stock Option Award, dated September 7, 2018.  All such options shall be subject to the terms of the applicable award agreements and the Plan. For the avoidance of doubt, all options that are unvested as of the Separation Date shall be forfeited, regardless of whether Executive provides consulting services following the Separation Date.  Subject to approval of the appropriate committee of the Company’s Board of Directors, the exercise period for Executives vested options shall be extended to six (6) months from the Separation Date.  Executive acknowledges that such extension may alter the treatment of certain options for tax purposes, and Executive agrees that any such adverse tax consequences will be Executive’s responsibility, and not the Company’s.

(d)    Other Benefits.  As of the Separation Date, Executive shall not be entitled to medical, dental, vision, life, disability, accidental death and dismemberment insurance benefits, or any other employee benefits, and shall not be an active participant in the Company’s 401(k) Plan (the “401(k) Plan”) or any other plan of any type.  For the avoidance of doubt, Executive will not be eligible to contribute to her 401(k) plan from any payments received under this Agreement after the Separation Date, except for her regular salary paid through the Separation Date.  Nothing in this Agreement, however, shall be deemed to limit Executive’s continuation coverage rights under COBRA or Executive’s vested rights, if any, under the 401(k) Plan or any other Company plan, and the terms of those plans shall govern.

3.PROPRIETARY INFORMATION AGREEMENT. Executive is subject to the Proprietary Information, Inventions, Non-Competition and Non-Solicitation Agreement, dated March 9, 2018 (the “Proprietary Information Agreement”).  Executive acknowledges and agrees that Executive will continue to be bound by and subject to the Proprietary Information Agreement, in accordance with its terms, and that she will forfeit all benefits under this Agreement should Executive breach such Proprietary Information Agreement; provided, however, that the parties agree that the definition of the “Company Business” set forth in Section 

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3.4(b) of the Proprietary Information Agreement shall be amended to delete the phrase “, and INN-108, for the treatment of ulcerative colitis”. The parties also agree that the length of the Post Employment Restricted Period in Section 3 of the Proprietary Information Agreement is limited to 36 weeks.   Pursuant to Section 7 of the Proprietary Information Agreement, Executive has or will return all Company property to the Company at a mutually agreed upon time.

4.COOPERATION.  Executive agrees that she will assist and cooperate with the Company in connection with the defense or prosecution of any claim that may be made against or by the Company, or in connection with any ongoing or future investigation or dispute or claim of any kind involving the Company, including any proceeding before any arbitral, administrative, judicial, legislative, or other body or agency, including testifying in any proceeding to the extent such claims, investigations or proceedings relating to services performed or required to be performed by Executive, pertinent knowledge possessed by Executive, or any act or omission by Executive.  Executive further agrees to perform all acts and execute and deliver any documents that may be reasonably necessary to carry out the provisions of this Section 4. The Company shall reimburse Executive for reasonable expenses incurred in connection with such cooperation.

5.RELEASE.  In consideration of the benefits conferred by this AGREEMENT, EXECUTIVE (ON BEHALF OF HERSELF AND HER FAMILY MEMBERS, HEIRS, ASSIGNS, EXECUTORS AND OTHER REPRESENTATIVES), RELEASES THE COMPANY AND ITS PAST, PRESENT AND FUTURE PARENTS, SUBSIDIARIES, AFFILIATES, AND ITS AND/OR THEIR PREDECESSORS, SUCCESSORS, ASSIGNS, AND ITS AND/OR THEIR PAST, PRESENT AND FUTURE OFFICERS, DIRECTORS, EXECUTIVES, OWNERS, INVESTORS, STOCKHOLDERS, ADMINISTRATORS, BUSINESS UNITS, ENEFIT PLANS (TOGETHER WITH ALL PLAN ADMINISTRATORS, TRUSTEES, FIDUCIARIES AND INSURERS) AND AGENTS (COLLECTIVELY, “RELEASEES”) FROM ALL CLAIMS AND WAIVES ALL RIGHTS, KNOWN OR UNKNOWN, SHE MAY HAVE OR CLAIM TO HAVE IN EACH CASE RELATING TO HER EMPLOYMENT WITH THE COMPANY, OR HER SEPARATION THEREFROM, arising before the execution of this Agreement by Executive, including but not limited to claims:  (i) for discrimination, harassment or retaliation arising under any federal, state or local laws, or the equivalent applicable laws of a foreign country, prohibiting age (including but not limited to claims under the Age Discrimination in Employment Act of 1967 (ADEA), as amended, and the Older Worker Benefit Protection Act of 1990 (OWBPA)), sex, national origin, race, religion, disability, veteran status or other protected class discrimination, the Family and Medical Leave Act, as amended (FMLA), and/or harassment or retaliation for protected activity; (ii) for compensation, commission payments, bonus payments and/or benefits including but not limited to claims under the Fair Labor Standards Act of 1938 (FLSA), as amended, the Employee Retirement Income Security Act of 1974, as amended (ERISA), the Family and Medical Leave Act, as amended (FMLA), and similar federal, state, and local laws, or the applicable laws of any foreign country; (iii) under federal, state or local law, or the applicable laws of any foreign country, of any nature whatsoever, including but not limited to constitutional, statutory and common law; (iv) under any employment agreement, severance plan or other benefit plan; and (v) for attorneys’ fees.  Executive specifically waives her right to bring or participate in any class or collective action against the Company.  Provided, however, that this release does not apply to claims by 

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Executive:  (aa) for workers’ compensation benefits or unemployment benefits filed with the applicable state agencies; (bb) for vested pension or retirement benefits including under the Company’s 401(k) plan; (cc) to continuation coverage under COBRA, or equivalent applicable law; (dd) to rights that cannot lawfully be released by a private settlement agreement; or (ee) to enforce, or for a breach of, this Agreement (the “Reserved Claims”).  For the purpose of implementing a full and complete release and discharge, Executive expressly acknowledges that this Agreement is intended to include in its effect, without limitation, all claims which she does not know or suspect to exist in her favor at the time of execution hereof, and that this Agreement contemplates the extinguishment of any such claim or claims.

6.COVENANT NOT TO SUE.  In consideration of the benefits offered to Executive, Executive will not sue Releasees on any of the released claims or on any matters relating to her employment arising before the execution of this Agreement other than with respect to the Reserved Claims, including but not limited to claims under the ADEA, or join as a party with others who may sue Releasees on any such claims; provided, however, this paragraph will not bar a challenge under the OWBPA to the enforceability of the waiver and release of ADEA claims set forth in this Agreement, the Reserved Claims, or where otherwise prohibited by law.  If Executive does not abide by this paragraph, then (i) she will return all monies received under this Agreement and indemnify Releasees for all expenses incurred in defending the action, and (ii) Releasees will be relieved of their obligations hereunder.

7.RIGHT TO REVIEW.  The Company delivered this Agreement, containing the release language set forth in Sections 5 and 6, to Executive through her legal counsel on November 20, 2018 (the “Notification Date”), and hereby informs Executive that it desires that she have adequate time and opportunity to review and understand the consequences of entering into it.  The Company advises Executive as follows: (a) Executive should consult with her attorney prior to executing this Agreement; and (b) Executive has 21 days from the Notification Date within which to consider it. Executive must return an executed copy of this Agreement to the Company on or before the 22nd day following the Notification Date.  Executive acknowledges and understands that she is not required to use the entire 21-day review period and may execute and return this Agreement at any time before the 22nd day following the Notification Date.  If, however, Executive does not execute and return an executed copy of this Agreement on or before the 22nd day following the Notification Date, this Agreement shall become null and void.  This executed Agreement shall be returned to: Rosemary G. Kenyon, Counsel to the Company, Smith, Anderson, Blount, Dorsett, Mitchell & Jernigan, P.O. Box 2611, Raleigh, NC 27602.

8.REVOCATION.  Executive may revoke the Agreement during the seven (7) day period immediately following her execution of it.  This Agreement will not become effective or enforceable until the revocation period has expired (the “Effective Date”).  To revoke this Agreement, a written notice of revocation must be delivered to:  Rosemary G. Kenyon, Counsel to the Company, Smith, Anderson, Blount, Dorsett, Mitchell & Jernigan, P.O. Box 2611, Raleigh, NC 27602).

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9.AGENCY CHARGES/INVESTIGATIONS.  Nothing in this Agreement prohibits or prevents Executive from filing a charge with or participating, testifying, or assisting in any investigation, hearing, whistleblower proceeding or other proceeding before any federal, state, or local government agency (e.g. EEOC, NLRB, SEC., etc.) (each, a “Government Agency”), nor does anything in this Agreement preclude, prohibit, or otherwise limit, in any way, Executive’s rights and abilities to contact, communicate with, report matters to, or otherwise participate in any whistleblower program administered by any such agencies. Executive further understands that this Agreement does not limit Executive’s or the Company’s ability to communicate with any Government Agency or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency in connection with reporting a possible securities law violation, or other violation of law, without notice to the Company. Nothing in this Agreement or any other agreement limits Executive’s right to receive an award for information provided to any Government Agency/SEC staff.

10.NONDISPARAGEMENT.  Executive agrees that she shall not at any time make, publish or communicate to any person or entity or in any public forum any defamatory or disparaging remarks, comments or statements concerning the Company, or any of its employees or officers, and existing and prospective customers, suppliers, investors and other associated third parties, now or in the future.  The foregoing restrictions will not apply to any statements that are made truthfully in response to a subpoena or other compulsory legal process. The Company agrees that none of the members of the Board of Directors or the current President of the Company will make statements about Executive that are disparaging, defaming or derogatory; provided, however, that nothing in this Section 10 will prevent the Company from providing information requested by subpoena, court order, regulation, law, in response to a request from a government agency, or in response to a request from an insurance company, investor or other business.

11.DISCLAIMER OF LIABILITY.  Nothing in this Agreement is to be construed as either an admission of liability or admission of wrongdoing on the part of either party, each of which denies any liabilities or wrongdoing on its part.

12.GOVERNING LAW. This Agreement shall be construed, interpreted, and governed in accordance with and by North Carolina law and the applicable provisions of federal law, including but not limited to the ADEA and the OWBPA (“Applicable Federal Law”).  Any and all claims, controversies, and causes of action arising out of or relating to this Agreement, whether sounding in contract, tort, or statute, shall be governed by the laws of the state of North Carolina, including its statutes of limitations, except for Applicable Federal Law, without giving effect to any North Carolina conflict-of-laws rule that would result in the application of the laws of a different jurisdiction. Both Executive and the Company acknowledge and agree that the state or federal courts located in North Carolina have personal jurisdiction over them and over any dispute arising under this Agreement, and both Executive and the Company irrevocably consent to the jurisdiction of such courts.

13.ENTIRE AGREEMENT.  Except as expressly provided herein, or in the Proprietary Information Agreement, this Agreement:  (i) supersedes and cancels all other 

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understandings and agreements, oral or written, with respect to Executive’s employment with the Company; (ii) supersedes all other understandings and agreements, oral or written, between the parties with respect to the subject matter of this Agreement; and (iii) constitutes the sole agreement between the parties with respect to this subject matter.  Each party acknowledges that:  (i) no representations, inducements, promises or agreements, oral or written, have been made by any party or by anyone acting on behalf of any party, which are not embodied in this Agreement; and (ii) no agreement, statement or promise not contained in this Agreement shall be valid.  No change or modification of this Agreement shall be valid or binding upon the parties unless such change or modification is in writing and is signed by the parties.

14.SEVERABILITY; SEPARATE AND INDEPENDENT COVENANTS.  If any portion, provision, or part of this Agreement is held, determined, or adjudicated by any court of competent jurisdiction to be invalid, unenforceable, void, or voidable for any reason whatsoever, each such portion, provision, or part shall be severed from the remaining portions, provisions, or parts of this Agreement, and such determination or adjudication shall not affect the validity or enforceability of such remaining portions, provisions, or parts.  

15.SECTION 409A OF THE INTERNAL REVENUE CODE.

(a)    Parties’ Intent. The parties intend that all payments or benefits hereunder shall either qualify for an exemption from or comply with the applicable rules governing non-qualified deferred compensation under Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and the regulations thereunder (collectively, “Section 409A”) and all provisions of this Agreement shall be construed in a manner consistent with such intention. If any provision of this Agreement (or of any award of compensation, including equity compensation or benefits) would cause Executive to incur any additional tax or interest under Section 409A, the Company shall, upon the specific request of Executive, use its reasonable business efforts to in good faith reform such provision to be exempt from, or comply with, Code Section 409A; provided, that to the maximum extent practicable, the original intent and economic benefit to Executive and the Company of the applicable provision shall be maintained, and the Company shall have no obligation to make any changes that could create any material additional economic cost or loss of material benefit to the Company. Notwithstanding the foregoing, the Company shall have no liability with regard to any failure to comply with Section 409A, provided that the Company acted in good faith and in a prudent manner to comply with Section 409A. If a payment that is deferred compensation subject to Section 409A is subject to satisfaction of a release requirement and the period for satisfying the release requirement begins in one calendar year and ends in the following calendar year (the “Release Satisfaction Period”), then any amount becoming payable during the Release Satisfaction Period shall not be paid until the later calendar year.

(b)    Separation from Service.  A termination of employment or separation from service shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits that constitute nonqualified deferred compensation within the meaning of Section 409A upon or following a termination of employment or separation from service unless such termination also constitutes a “Separation 

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from Service” within the meaning of Section 409A and, for purposes of any such provision of this Agreement, references to a “termination,” “termination of employment,” “separation from service” or like terms shall mean Separation from Service.

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

(d)    Installment Payments.  All payments made under this Agreement shall be deemed to be series of separate payments, with each installment being treated as a separate payment.  The time and form of payment of any compensation may not be deferred or accelerated to the extent it would result in an impermissible acceleration or deferral under Section 409A.  

16.OTHER TAXES.  Executive shall have sole responsibility for the payment of any and all income taxes and/or excise taxes arising from or due on account of any payment made or benefit provided by the Company under this Agreement. 

17.COUNTERPARTS.  This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, and all of which taken together shall constitute one and the same instrument.  Any party hereto may execute this Agreement by signing any such counterpart.

18.WAIVER OF BREACH.  A waiver of any breach of this Agreement shall not constitute a waiver of any other provision of this Agreement or any subsequent breach of this Agreement.

(Signature Page Follows)

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(Signature page to Separation and General Release Agreement)

IN WITNESS WHEREOF, the parties have entered into this Agreement as of the day and year written below.

INNOVATE BIOPHARMACEUTICALS, INC.

By:  /s/ Christopher Prior            

Name: Christopher Prior________________

Title: CEO                

Date:  Nov 23, 2018        

JUNE S. ALMENOFF, MD, PHD

By: /s/ June. S. Almenoff            

Date:  Nov 23, 2018                

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