Document:

exh10_2.htm

     

    Exhibit
      10.2

     

    
      BIOSPECIFICS
        TECHNOLOGIES CORP.

      

      Change
        of Control Agreement

      

      This
        Change of Control Agreement, effective as of June 18, 2007 is entered into
        by
        and between BioSpecifics Technologies Corp., a Delaware corporation (the
        “Company”), with its principal offices located at 35 Wilbur
        Street, Lynbrook, NY 11563, and Thomas L. Wegman (the
“Employee”).

      

      The
        Employee is employed by the Company and the Company and the Employee desire
        to
        arrange for certain provisions applicable in the event of termination of
        the
        Employee’s employment in the circumstances provided herein. The Employee is a
        skilled and dedicated employee who has important talents which benefit the
        Company. The Company believes that its best interests will be served if the
        Employee is encouraged to remain with the Company. The Company has determined
        that the Employee’s ability to perform the Employee’s responsibilities and
        utilize the Employee’s talents for the benefit of the Company, and the Company’s
        ability to retain the Employee as an employee, will be significantly enhanced
        if
        the Employee is provided with fair and reasonable protection from the risks
        of a
        change in ownership or control of Company. Accordingly, the Company and the
        Employee agree as follows:

      

      1.
         Change of Control Payments; Benefits.

      

      1.1 
        Termination Events Resulting in Change of Control
        Payments.

      

      (a) 
        Following a “Change of Control” (as hereinafter defined) of the Company, in the
        event of the termination of the Employee’s employment by the Company, or its
        successor, without cause, at any time after such Change of Control, then
        the
        Company shall make Change of Control payments to the Employee in the amount
        set
        forth in, and payable in accordance with, Section 1.2 (a).

      

      (b)
         In the event of the termination of the Employee’s employment by the
        Employee for “Good Reason” (as defined below) at any time after a “Change of
        Control” (as defined below), then the Company shall make Change of Control
        payments to the Employee in the amount set forth in, and payable in accordance
        with, Section 1.2 (a).

      

      (i)
         For purposes of this Agreement, a “Change of Control”
shall mean the occurrence of any one of the following:

      

      A.
         the acquisition by any “person” (as such term is defined in Section
        3(a)(9) of the Securities Exchange Act of 1934), other than the Company or
        its
        affiliates, from any party of an amount of the capital stock of the Company,
        so
        that such person holds or controls 40% or more of the Company’s capital stock;
        or

      

      B.
         a merger or similar combination between the Company and another entity
        after which 40% or more of the voting stock of the surviving corporation
        is held
        by persons other than the Company or its affiliates; or

      

      C. 
        a merger or similar combination (other than with the Company) in which the
        Company is not the surviving corporation; or

      

      D.
         an acquisition, merger or similar combination or a divestiture of a
        substantial portion of the Company’s business after which the Employee’s role is
        not substantially the same as such role prior to the transaction;

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      E.
         the sale of all or substantially all of the Company’s assets or business;
        or

      

      (ii)
         For purposes of this Agreement, “Good Reason” shall mean
        the following involuntary circumstances:

      

      A. 
        assignment to the Employee of any duties inconsistent in any material respect
        with the Employee’s position (including titles and reporting requirements),
        authority, duties or responsibilities as contemplated by the job description
        of
        the Employee’s position, or any other action by the Company or its successor,
        which results in a diminution in such position, authority, duties or
        responsibilities, other than an isolated, insubstantial and inadvertent action
        not taken in bad faith and which is remedied by the Company promptly after
        receipt of written notice thereof given by the Employee;

      

      B. 
        a reduction in the Employee’s annual base salary (or an adverse change in the
        form or timing of the payment thereof), other than an isolated, insubstantial
        and inadvertent action not taken in bad faith and which is remedied by the
        Company promptly after receipt of written notice thereof given by the Employee;
        or the elimination of or reduction of any benefit under any bonus, incentive
        or
        other employee benefit plan in effect on the day immediately preceding the
        Change in Control, without an economically equivalent replacement, if Employee
        was a participant or member of such plan on the day immediately preceding
        the
        Change in Control;

      

      C. 
        the Company’s or its successor’s requiring the Employee (i) to be based at any
        office or location more than 25 miles away from the office or location where
        Employee was performing services immediately prior to the Change in Control,
        or
        (ii) to relocate his or her personal residence, or (iii) the Company’s requiring
        the Employee to travel on Company business to a substantially greater extent
        than required immediately prior to the Change in Control.

      

      For
        purposes of this Section 1.1 (b)(ii), any good faith determination of “Good
        Reason” made by the Employee shall be conclusive.

      

      (c)
         No Change of Control payments shall be payable in the event that the
        Employee’s employment is terminated (i) by the Employee, except in accordance
        with Section 1.1(b) above, or (ii) by the Company in the event of (x) the
        Employee’s breach of any material duty or obligation to the Company, or (y)
        intentional or grossly negligent conduct that is materially injurious to
        the
        Company (as reasonably determined by the Company’s Board of Directors), or (z)
        the willful failure of the Employee to follow the reasonable directions of
        the
        Company’s Employee officers or Board of Directors.

      

      (d) 
        Anything in this Agreement to the contrary notwithstanding, if a Change of
        Control occurs and if the Employee’s employment is terminated prior to the date
        on which the Change of Control occurs, and if it is reasonably demonstrated
        by
        the Employee that such termination of employment (i) was at the request of
        a
        third party who has taken steps reasonably calculated to effect a Change
        of
        Control or (ii) otherwise arose in connection with or anticipation of a Change
        of Control, then for all purposes of this Agreement change of Control payments
        shall be payable.

      

      1.2
         Amount and Payment of Change of Control
        Payments.

      

      (a)
         The aggregate Change of Control payment referred to in Sections 1.1(a) and
        1.1(b) above shall be equal to one-twelfth (1/12th) of the
        Employee’s
        annual base salary at the time of such termination

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      multiplied
        by twelve (12) months, to be payable in one lump sum not later than thirty
        (30)
        days after date of termination of the Employee’s employment by the Company (the
“Termination Date”).

      

      (b)
         The Employee shall not be required to mitigate the amount of any payment
        provided for in this Section 1.2 by seeking other employment or otherwise.
        The
        amount of any payment or benefit provided for in this Section 1.2 shall not
        be
        reduced as the result of employment by the Employee with another employer
        after
        the Termination Date, or otherwise.

      

      (c) 
        Until the anniversary of the Termination Date, the Employee shall be entitled
        to
        participate in the Company’s medical, dental, and life insurance plans, at the
        highest level provided to the Employee during the period beginning immediately
        prior to the Change in Control and ending on the Termination Date, and at
        no
        greater cost than the cost the Employee was paying immediately prior to Change
        in Control; provided, however, that if the Employee becomes
        employed by a new employer, the Employee’s coverage under the applicable Company
        plans shall continue, but the Employee’s coverage thereunder shall be secondary
        to (i.e., reduced by) any benefits provided under like plans of such new
        employer.

      

      (d)
         Payment of Accrued But Unpaid Amounts. Within ten
        (10) business days after the Termination Date, the Company shall pay Employee
        earned but unpaid compensation, including, without limitation, any unpaid
        portion of the Employee’s vacation pay accrued with respect to the full calendar
        year ended prior to the Termination Date

      

      1.3
         Option Vesting. If the Employee’s employment with
        the Company is terminated pursuant to Sections 1.1(a) or 1.1(b), 100% of
        any
        options to purchase shares of Common Stock of the Company then held by the
        Employee, which options are then subject to vesting, shall, notwithstanding
        any
        contrary provision in the option agreement or stock option plan pursuant
        to
        which such options had been granted, be accelerated and become fully vested
        and
        exercisable on the date immediately preceding the effective Termination Date.
        All other terms of the Employee’s options shall remain in full force and
        effect.

      

      1.4 
        Restricted Stock. If the Employee’s employment with the
        Company is terminated pursuant to Sections 1.1(a) or 1.1(b) and, on the date
        immediately preceding the Date of Termination, the Employee then holds shares
        of
        Common Stock of the Company that are subject to restrictions on transfer
        (“Restricted Stock”), which shares were issued to the Employee
        in a transaction other than pursuant to the exercise of a stock option, then,
        notwithstanding any contrary provision in the relevant stock purchase agreement
        or other instrument pursuant to which the Employee acquired such shares of
        Restricted Stock, such restrictions shall expire in their entirety on the
        date
        immediately preceding the Termination Date and all of such shares of Common
        Stock shall become transferable free of restriction, subject to the applicable
        provisions of federal and state securities laws. All other terms of any existing
        stock purchase or similar document shall remain in full force and
        effect.

      

      2. 
        Confidentiality Agreement. The Employee confirms that as
        of the date hereof he or she has executed, or agrees that he or she will
        execute, the Company’s standard Confidentiality Agreement pursuant to which the
        Employee has agreed to refrain from disclosing the Company’s confidential
        information as set forth in such Confidentiality Agreement.

      

      3. 
        Miscellaneous.

      

      3.1
         Assignment. This Agreement may not be assigned, in
        whole or in part, by either party without the prior written consent of the
        other
        party, except that the Company shall assign its rights and

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      obligations
        under this Agreement to any corporation, firm or other business entity with
        or
        into which the Company may merge or consolidate, or to which the Company
        may
        sell or transfer all or substantially all of its assets, or of which 50%
        or more
        of the equity investment and of the voting control is owned, directly or
        indirectly, by, or is under common ownership with, the Company. In the event
        of
        any such assignment by the Company.

      

      3.2
         Notices. All notices, requests, demands and other
        communications to be given pursuant to this Agreement shall be in writing
        and
        shall be deemed to have been duly given if delivered by hand or mailed by
        registered or certified mail, return receipt requested, postage prepaid,
        to the
        addresses set forth at the beginning of this Agreement or such other address
        as
        a party shall have designated by notice in writing to the other party, provided
        that notice of any change in address must actually have been received to
        be
        effective hereunder.

      

      3.3 
        Integration. This Agreement is the entire agreement of
        the parties with respect to the subject matter hereof and supersedes any
        prior
        agreement or understanding relating to the subject matter hereof. This Agreement
        may not be superseded, amended, supplemented or otherwise modified except
        by a
        writing signed by the Employee and the Company.

      

      3.4
         Binding Effect. Subject to Section 3.1, this
        Agreement shall inure to the benefit of and be binding upon the parties hereto
        and their successors, assigns, heirs and personal representatives.

      

      3.5
         Counterparts. This Agreement may be executed in
        two counterparts, each of which shall be deemed an original and shall together
        constitute one and the same instrument.

      

      3.6
         Severability. If any provision hereof shall, for
        any reason, be held to be invalid or unenforceable in any respect, such
        invalidity or unenforceability shall not affect any other provision hereof,
        and
        this Agreement shall be construed as if such invalid or unenforceable provision
        had not been included herein. If any provision hereof shall for any reason
        be
        held by a court to be excessively broad as to duration, geographical scope,
        activity or subject matter, it shall be construed by limiting and reducing
        it to
        make it enforceable to the extent compatible with applicable law as then
        in
        effect.

      

      3.7
         Governing Law. This Agreement shall be governed by
        the laws of the State of New York, without regard to its conflict-of-law
        provisions.

      

      3.8
         Termination. Nothing in this Agreement is intended
        to or shall modify the at-will nature of the Employee’s employment relationship
        with the Company. The Employee may terminate his or her employment at any
        time
        with or without notice and with or without cause and the Company may do
        likewise, subject only to the express provisions of this Agreement.

      

      3.9
         Survival of Obligations; Enforcement. The
        Employee’s duties hereunder shall survive termination of the Employee’s
        employment by the Company. The Employee acknowledges that a remedy at law
        for
        any breach or threatened breach by the Employee of the provisions of this
        Agreement may be inadequate and the Employee therefore agrees that the Company
        shall be entitled to injunctive relief in case of any such breach or threatened
        breach.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

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

       

       

      
        	 	
                EMPLOYEE

                 

                 

              
	 	
                            /s/
                  Thomas L. Wegman

              
	 	
                Name:           
                  Thomas L.
                  Wegman

              
	 	
                 

                 

                 

              	 
	 	
                BIOSPECIFICS
                  TECHNOLOGIES CORP.

                 

                 

              
	 	
                By:

              	
                            /s/
                  Paul Gitman

              
	 	 	
                Name:  Paul
                  Gitman

                Title:   
                  DirectorEX-10.1

 

Exhibit 10.1

DEMAND PROMISSORY NOTE

			
	U.S.$                                        
	 	New York, New York

June 21, 2007

     FOR VALUE RECEIVED, the undersigned, SentiSearch, Inc., a corporation duly organized and
existing under the laws of the State of Delaware (the “Company”), hereby promises to pay to
the order of [                    ], or [his][its] successors or assigns, (hereinafter
referred to as “Holder”), the principal sum of [               ] ($[               ]), on June 22,
2009 unless earlier demanded in full, prepaid or comes due as provided herein. This Note is
non-negotiable. This Note is part of a series of demand promissory notes issued in connection with
a financing to the Company in the aggregate amount of $180,000. This Note, together with the other
demand promissory notes in the series, shall be referred to herein as the “Notes.”

1. Interest. Interest shall accrue from the date hereof at a rate equal to the prime rate
as announced from time to time by Citibank, N. A., plus 3% per annum, which shall be computed on
the basis of a 365-day year and actual number of days elapsed. Accrued interest on this Note shall
be due and payable at the time the Note becomes due, unless earlier prepaid in full in accordance
with Section 2 hereof.

2. Optional Prepayment. The Company shall have the right at any time and from time to time
to prepay all or any portion of the outstanding principal balance of this Note or interest on such
outstanding principal amount, without premium or penalty. To the extent that the Company exercises
its right of prepayment with respect to this Note or any of the Notes, such prepayments shall be
made on a pro rata basis with the other Notes and shall be in proportion to the then-outstanding
principal amount of the Notes.

3. Payments of the Note — Place and Manner; Replacement.

     (a) Place. All payments of principal and interest hereunder shall be made in
immediately available funds, no later than 12:00 P.M., New York City time, to the Holder of the
Note at the address set forth in Section 6(c) hereof or any such other place as the Holder shall
have notified the Company in accordance with Section 6(c) hereof. Notwithstanding anything to the
contrary contained herein, if any amount of principal or interest is due hereunder on a day which
is not a business day, the due date thereof shall be extended to the immediately succeeding
business day and interest thereon, if any, shall accrue during the period of such extension at the
rate provided therefor in this Note.

     (b) Manner. Payment of principal and interest on this Note shall be in such coin or
currency of the United States of America as at the time of payment shall be legal tender for the
payment of public and private debts. It is expressly stipulated and agreed to be the intent of the
Company and Holder at all times to comply with applicable state law or applicable United States
federal law and that this section shall control every other covenant and agreement in this Note.

     (c) Replacement of Note. Upon receipt of evidence satisfactory to the Company of the
loss, theft, destruction or mutilation of this Note and, in the case of any such mutilation, upon
surrender and cancellation of the Note, the Company will issue a new Note of like tenor (and, in
the case of any new Note, dated the date to which interest has been paid, if any), in lieu of such
lost, stolen, destroyed or mutilated Note.

4. No Impairment. The Company will not, through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or any other voluntary action,
avoid or seek

1

 

to avoid the observance or performance of any of the terms to be observed or performed hereunder by
the Company (including without limitation, the due payment hereof) but will at all times in good
faith assist in the carrying out of all the provisions of this Note and in the taking of all such
action as may be necessary or appropriate in order to protect the rights of the Holder of this Note
against impairment.

5. Default and Remedies.

     (a) If any one of the following events shall occur and be continuing for any reason whatsoever
(and whether such occurrence shall be voluntary or involuntary or come about or be effected by
operation of law or otherwise):

          (i) any decree or order for relief in respect of the Company (sometimes referred to herein as
an “Obligor”) is entered under any bankruptcy, reorganization, compromise, arrangement,
insolvency, readjustment of debt, dissolution or liquidation or similar law whether now or
hereafter in effect of any jurisdiction;

          (ii) any petition in bankruptcy shall be filed by or against an Obligor or any proceedings in
bankruptcy, or under any law or statute of any jurisdiction relating to the relief of debtors,
being commenced for the relief or readjustment of any indebtedness of an Obligor, either through
reorganization, composition, extension or otherwise and, if filed against any obligor, such
petition or proceeding shall remain unstayed or undismissed for a period of sixty (60) days; or

          (iii) any order, judgment or decree is entered in any proceedings against an Obligor decreeing
the dissolution of an Obligor and such order, judgment or decree remains unstayed and in effect for
more than sixty (60) days.

then the Note shall automatically become immediately due and payable together with interest accrued
thereon without presentment, demand, protest or notice of any kind, all of which are hereby waived
by the Company.

6. General.

     (a) Successors and Assigns. This Note, and the obligations and rights hereunder, shall
be binding upon and inure to the benefit of the Company, the Holder of this Note, and his
respective heirs, successors and assigns. The Company may not assign or transfer any of its rights
or obligations hereunder without the prior written consent of the Holder hereof. The Holder hereof
shall have the right to assign or transfer this Note or any of Holder’s rights or obligations
hereunder to any affiliate (as such term is defined under the Securities Exchange Act of 1934, as
amended) of the Holder.

     (b) Amendment; Waiver. Changes in or additions to this Note may be made, or
compliance with any term, covenant, agreement, condition or provision set forth herein may be
omitted or waived (either generally or in a particular instance and either retroactively or
prospectively), upon written consent of the Company and the Holder of this Note.

     (c) Notices. All notices, requests, consents and demands shall be made in writing and
shall be mailed, postage prepaid, or delivered by hand, to the Company or to the Holder hereof at
their respective addresses set forth below:

	 	 	 	 	 
	 
	 	If to the Company:	 	SentiSearch, Inc.
	 
	 	 	 	1482 East Valley Road
	 
	 	 	 	Santa Barbara, California 93108
	 
	 	 	 	Attention: Chief Executive Officer

2

 

     If to the Holder: [                    ]

     (d) Governing Law. This Note shall be construed and enforced in accordance with, and
the rights of the parties shall be governed by, the laws of the State of New York, without giving
effect to the principles of conflict of laws thereof. The Company hereby irrevocably submits and
consents to the jurisdiction of any New York state or federal court sitting in New York, New York
over any action or proceeding arising out of or relating to this Note, and the Company hereby
irrevocably agrees that all claims in respect of any such action or proceeding may be heard and
determined in such New York state or federal court.

     IN WITNESS WHEREOF, the Company has caused this Note to be signed in its corporate name by one
of its officers thereunto duly authorized and to be dated as of the day and year first above
written.

	 	 	 	 	 
	 	SENTISEARCH, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

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