Document:

lxrp_ex37.htm

EXHIBIT 10.1
  
 EMPLOYMENT AGREEMENT
  
 THIS AGREEMENT made the 15th day of April, 2021.
  
 BETWEEN:
  
 Kelowna Management Services Corp.
 100 – 740 McCurdyRoad
 Kelowna, BC 
 V1X 2P7
  
 (the “Employer”) 
  
 AND:
  
 Gregory J. Downey
 [**]1
  
 (the “Employee”)
  
 WHEREAS:
  
 A. The Employer is in the business of providing management services to its affiliates (the “Affiliates”) as that term is defined in National Instrument 45-106 – Prospectus Exemptions;
  
 B. The Affiliates are in the business of research and development of patented technology;
  
 C. The Employer and the Employee have verbally agreed to amend their former employment relationship and terminate the Employment Agreement entered into between the Employer and the Employee dated December 4, 2018 whereby the Employee provided services as Corporate Controller, upon the entrance into this Employment Agreement whereby the Employee has agreed to provide Chief Financial Officer services effective as at April 15, 2021.
  
 THIS AGREEMENT WITNESSES that the parties have agreed that the terms and conditions of the relationship shall be as follows:
  
 1. Employment
  
 1.1 The Employee will be employed by the Employer in the following capacities:
  
 	  
	 (a)
	 As the Chief Financial Officer and Treasurer of Lexaria Bioscience Corp.;

	  
	  
	  

	  
	 (b)
	 As the Treasurer of Poviva Corp. and Lexaria CanPharm Holding Corp.;

 ______________
 1 Information regarding the Employee’s address has been redacted.
    
 	 
	-1-
	

	 

  
 	  
	 (c)
	 As an employee having financial oversight and management over the Employer and its other unnamed Affiliates, including having the responsibility of financial statement preparation;

    
 with all such positions commencing on April 15, 2021. 
  
 1.2 The Employee agrees to be bound by the terms and conditions of this agreement. In carrying out the Employee’s duties, the Employee will comply with all reasonable instructions as may be given by the Employer.
  
 1.3 The Employee acknowledges and agrees that the Employer’s policies and procedures form part of this agreement. The Employee agrees to comply with the terms of such policies and procedures so long as they are not inconsistent with any provisions of this agreement. If the terms of any policies and/or procedures conflict with the terms of this agreement, the terms of this agreement shall prevail.
  
 1.4 The Employee acknowledges and agrees that effective performance of the Employee’s duties requires the highest level of integrity and the Employer’s complete confidence in the Employee’s relationship with other employees of the Employer and its Affiliates and with all other persons with whom the Employee deals in the course of employment.
  
 1.5 The Employee will report directly to the board of directors of the Company in fulfilling the duties and responsibilities as set out in Schedule “A” to this agreement (the “Services”).
  
 1.6 The Employee acknowledges and agrees that the Employee may be required to provide the Services to one or more of the Affiliates.
  
 1.7 The Employee and Employer agree that the Services may be materially changed by the Employer upon providing the Employee with 9 months’ notice (the “Change of Services Notice”). The Employee agrees that if the Employer materially changes the Services pursuant to a Change of Services Notice, the employment relationship will not be terminated.
  
 1.8 The Employee agrees to devote the majority of his working time exclusively to the business of the Employer and its Affiliates that, in the capacity of Chief Financial Officer, such working time will not be restricted to an eight (8) hour Monday through Friday work schedule and the Employee will not receive any additional remuneration other than the remuneration set out in this Agreement for all such working time. The Employee also acknowledges that in the performance of the Services he may be expected to travel and represent the Company and its Affiliates which may include participation at trade shows, informational panels, presentations, media events and the like.
   
 	 
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 2. Remuneration and Benefits
  
 2.1 In consideration of the Employee's performance of the obligations contained in this agreement, the Employer shall provide the Employee with the remuneration noted in the attached Schedule “B”.
  
 3. Confidential Information
  
 3.1 The Employee acknowledges that the Employee will acquire information (the "Confidential Information") about certain matters which are confidential to and exclusive property of the Employer or the Affiliates, including, but not limited to, trademarks, patents, trade dress, know how or trade secrets including lists of present and prospective customers, pricing and sales policies and concepts, business plans, forecasts and market strategies, discoveries, designs, methods or techniques, inventions, research and development, formulas and technology.
  
 3.2 The Employee acknowledges that the Confidential Information could be used to the detriment of the Employer or the Affiliates and that its disclosure to third parties could cause irreparable harm. Accordingly, the Employee undertakes to treat the Confidential Information confidentially and not to disclose it to any third party or use it for any purpose either during the employment, except as may be necessary in the proper discharge of the Employee’s duties, or after termination of the employment for any reason, except with the written permission of the Employer.
  
 3.3 The Employee acknowledges that the Employer owns all Confidential Information that may be developed in whole or in part by the Employee during the course of the employment with the Employer and the Employee agrees to waive all moral and legal rights to any such Confidential Information.
  
 3.4 All files, notes, documents, data, tapes, reference items, sketches, drawings, memoranda, records, diskettes, discs and other materials in any way relating to any of the Confidential Information or to the Employer's business produced by the Employee or coming into possession by or through the employment, shall belong exclusively to the Employer and the Employee agrees to turn over to the Employer all of such materials in the Employee's possession or under the Employee’s control, forthwith, at the request of the Employer or, in the absence of a request, on the termination of employment with the Employer.
  
 4. Discipline and Termination
  
 4.1 The Employee may terminate the Employee’s employment by providing eight (8) weeks’ advance notice in writing to the Employer. The Employer may waive such notice, in whole or in part and if it does so, the Employee’s entitlement to remuneration and benefits pursuant to this agreement will continue to the expiration of the eight (8) weeks’ notice period and any such waiver shall not constitute termination of the Employee’s employment. 
  
 4.2 The Employer may terminate the Employee's employment without notice or payment in lieu thereof for just cause, subject to any minimum statutory entitlements required to be provided to the Employee under the B.C. Employment Standards Act, as amended from time to time (the “ESA”) (if any). For the purposes of this agreement, the parties agree that “cause” shall include, but is not limited to:
   
 	 
	-3-
	

	 

  
 	  
	 (a)
	 any material breach of the provisions of this agreement by the Employee;

	  
	  
	  

	  
	 (b)
	 consistent poor performance on the Employee's part, after being advised as to the standard required;

	  
	  
	  

	  
	 (c)
	 the Employee's violation of any local, provincial or federal statute, including, without limitation, an act of dishonesty such as embezzlement or theft; and

	  
	  
	  

	  
	 (d)
	 conduct on the Employee's part that is materially detrimental to the business or the financial position of the Employer.

    
 4.3 In response to instances of misconduct or other unacceptable performance by the Employee, the Employer may in its discretion impose disciplinary measures as may be deemed by the Employer to be appropriate when taking into account the nature of the misconduct or performance, the Employee's employment record, and the material surrounding circumstances. These disciplinary measures include, but are not limited to: verbal warning; written warning; loss of employment privileges and perquisites; unpaid suspension; removal from position or from certain duties associated with the position; dismissal. The Employer and the Employee agree that the Employer's imposition of any of these measures, with the exception of dismissal, shall not affect the other terms and conditions of this Agreement and, in particular, shall not be deemed or interpreted as constituting a constructive dismissal of the Employee by the Employer. The Employee agrees that this clause shall not mean that the Employer must proceed through any disciplinary measures before any termination of the Employee by the Employer without cause or with cause, and the Employer expressly reserves the right to terminate without cause without proceeding through any disciplinary measures.
  
 4.4 The Employer may terminate the Employee's employment at any time without cause, upon providing the Employee with only the greater of:
  
 	  
	 (a)
	 the Employee’s statutory entitlements to accrued wages, vacation pay and minimum statutory benefits continuation as required by the ESA, plus three (3) months’ notice or pay in lieu of notice (or a combination thereof) should such termination occur anytime prior to January 7, 2022, and thereafter, such notice or pay in lieu of notice (or combination thereof) shall increase by one month increments upon the completion of each additional year of service, or portion thereof, and although such notice or pay in lieu of notice is inclusive of any severance pay under the ESA (if applicable), such severance pay will be provided to the Employee in a lump sum and the Employer will not provide such severance pay to the Employee in the form of working notice; OR

	  
	  
	  

	  
	 (b)
	 the minimum statutory notice of termination or statutory pay in lieu thereof, statutory severance pay (if applicable) and statutory benefits continuation (if applicable) as required by the ESA, as well as any other minimum entitlements required by the ESA including accrued wages and vacation pay.

   
 	 
	-4-
	

	 

    
 Except for any entitlements that the Employee may have under the ESA, these entitlements shall be subject to a duty to mitigate. Where the Employer provides the Employee with pay in lieu of notice pursuant to clause 4.4(a) or statutory pay in lieu of notice or statutory severance pay pursuant to clause 4.4(b), such payment shall be calculated solely by reference to the Employee’s annual base salary as defined in Schedule “B”, except and only to the extent as otherwise minimally required by the ESA. For clarity, if the ESA requires the Employee’s benefits to be continued during any statutory notice period, the Employee’s benefits will only be continued for the minimum statutory notice period required by the ESA.
  
 The Employee understands and agrees that the entitlements set out in clause 4.4 will constitute the Employee’s full and final entitlements, in the event of a without cause termination, to notice or pay in lieu of notice, benefits continuation, and severance pay (if applicable), including in the event of a constructive dismissal of the Employee’s employment and including any entitlements to common law notice. If a greater entitlement is provided under the ESA, that greater entitlement shall prevail and the Employee’s entitlements shall be increased only to the extent necessary to satisfy such greater entitlement. In no event will the Employee be provided with less than the Employee’s minimum entitlements under the ESA. 
  
 The Employee understands and agrees that clause 4.4 shall remain in force throughout the Employee’s employment, regardless of the Employee’s length of service or other changes to the Employee’s position that may occur over time, including without limitation after any promotion or salary increase, unless amended by mutual written agreement. 
  
 5. Change of Control
  
 5.1 Notwithstanding any compensation payable pursuant to clauses 4.1 and 4.4 of this agreement, should a change of control (“Change of Control”) occur in Lexaria Bioscience Corp. (the “Company”) while this Agreement is active or within 6 months after the earlier of the following: i) the date on which the Employee terminates the Agreement under section 4.1; or ii) the date of termination of the Agreement under section 4.4, then the Employee shall be entitled to the greater of:
  
 	  
	 (a)
	 the Employee’s statutory entitlements to accrued wages, vacation pay and minimum statutory benefits continuation as required by the ESA, [**]2 in a lump sum and such pay in lieu of notice is inclusive of any severance pay under the ESA (if applicable); OR

	  
	  
	  

	  
	 (b)
	 the minimum statutory notice of termination or statutory pay in lieu thereof, statutory severance pay (if applicable) and statutory benefits continuation (if applicable) as required by the ESA, as well as any other minimum entitlements required by the ESA including accrued wages and vacation pay; and

    
 any stock options or warrants to purchase common stock, as referred to in all existing and future agreements between the Company and the Employee, granted to the Employee (including any award that resulted from a substituted or replacement of equity awards upon Change of Control) shall become immediately vested and exercisable.
 _____________
 2 Information redacted relates to compensation payable on a change of control which was previously disclosed in a Form 8-K filing made on April 16, 2021.
   
 	 
	-5-
	

	 

  
 5.2 For the purposes of clause 5.1, a Change of Control includes any of the following events:
  
 	  
	(a)	 If any individual, partnership, company, society, or other legal entity (a “Person”), alone or together with any other Persons with whom it is acting jointly or in concert, becomes the beneficial owner of, or acquires the power to exercise control or direction over, directly or indirectly, such securities (or securities convertible into, or exchangeable for, securities) entitled to more than fifty percent (50%) or more of the votes exercisable by holders of the then-outstanding securities generally entitled to vote for the election of directors (“Voting Stock”) of the Company or if any Persons that previously were not acting jointly or in concert commence acting jointly or in concert and together beneficially own, or have the power to exercise control or direction over, securities entitled to more than fifty percent (50%) or more of the votes exercisable by holders of voting stock, or have rights of conversion which, if exercised, would permit such Persons to own or control such a percentage of votes;

	  
	  
	  

	  
	 (b)
	 The Company is merged, amalgamated or consolidated into or with another Person and, as a result of such business combination, a Person who previously held securities representing less than fifty percent (50%) of the votes exercisable by the holders of the Voting Stock of the Company, either alone or together with any other persons with whom it is acting jointly or in concert, is now, either alone or together with any other persons with whom it is acting jointly or in concert, entitled to hold more than fifty percent (50%) of the votes, exercisable by holders of the Voting Stock of the Company or of such Person into which the Voting Stock of the Company has been converted;

	  
	  
	  

	  
	 (c)
	 The capital of the Company is reorganized and a Person, together with any other persons with whom it is acting jointly or in concert, which previously held securities representing less than fifty percent (50%) of the votes exercisable by the holders of the Voting Stock of the Company, now as a result of such reorganization, holds securities entitled to more than fifty percent (50%) of the votes exercisable by the holders of the Voting Stock of the Company;

	  
	  
	  

	  
	 (d)
	 The Company sells or otherwise transfers all or substantially all of its assets to another Person and a Person, together with any other persons with whom it is acting jointly or in concert, which previously held securities representing less than fifty percent (50%) of the votes exercisable by the holders of the Voting Stock of the Company, now as a result of such sale or transfer, holds securities entitled to more than fifty percent (50%) of the votes exercisable by the holders of the Voting Stock of the Company; or

	  
	  
	  

	  
	 (e)
	 During any period of two consecutive years, individuals (“Incumbent Directors”) who at the beginning of any such period constitute the directors of the Company, cease for any reason to constitute at least a majority thereof. For the purposes of this clause:

    
 	 
	-6-
	

	 

    
 	  
	 (i)
	 Each director who, during any such period, is elected or appointed as a director of the Company with the approval of at least a majority of the voting shareholders of the Company will be deemed to be an Incumbent Director;

	  
	  
	  

	  
	 (ii)
	 An “Incumbent Director” does not include a director, elected or appointed pursuant to an agreement (in respect of such election or appointment) with another Person that deals with the Company at arm’s length, or as part of or related to an amalgamation, a merger or a consolidation of the Company into or with another person, a reorganization of the capital of the Company or the acquisition of the Company as a result of which securities entitled to less than fifty (50%) percent of the votes exercisable by holders of the then-outstanding securities entitled to Voting Stock of the Company is converted on or immediately after such transaction are held in the aggregate by Persons who were holders of Voting Stock of the Company immediately prior to such transaction; and

	  
	  
	  

	  
	 (iii)
	 References to the Company shall include successors to the Company as a result of any amalgamation, merger, consolidation or reorganization of the Company into or with another body corporate or other legal Person.

    
 6. Affiliate Sale
  
 6.1 Notwithstanding any compensation provided under the termination provisions of this Agreement, should there be a sale of any of the Affiliates (each such sale being an “Affiliate Sale”) while this Agreement is active or within 6 months after the earlier of the following: i) the date on which the Employee terminates the agreement under section 4.1; or ii) the date of termination of the agreement under section 4.4, then the Company shall be obligated to pay the Employee a one-time lump sum payment in the amount equal to [**]3 of the total value of such Affiliate Sale (the “Affiliate Sale Entitlement”). The Affiliate Sale Entitlement shall be paid to the Employee within 90 days of completion of the Affiliate Sale. 
  
 6.2 For the purposes of clause 6.1, an Affiliate Sale means any of the following events:
    
 	  
	 (a)
	 If any individual, partnership, company, society, or other legal entity (a “Person”), alone or together with any other Persons with whom it is acting jointly or in concert, becomes the beneficial owner of, or acquires the power to exercise control or direction over, directly or indirectly, such securities (or securities convertible into, or exchangeable for, securities) entitled to more than fifty percent (50%) or more of the votes exercisable by holders of the then-outstanding securities generally entitled to vote for the election of directors (“Voting Stock”) of an Affiliate or if any Persons that previously were not acting jointly or in concert commence acting jointly or in concert and together beneficially own, or have the power to exercise control or direction over, securities entitled to more than fifty percent (50%) or more of the votes exercisable by holders of voting stock, or have rights of conversion which, if exercised, would permit such Persons to own or control such a percentage of votes;

 ________________
 3 Information redacted relates to compensation payable on the sale of an affiliate which was previously disclosed in a Form 8-K filing made on April 16, 2021.
    
 	 
	-7-
	

	 

    
 	  
	 (b)
	 An Affiliate is merged, amalgamated or consolidated into or with another Person and, as a result of such business combination, a Person who previously held securities representing less than fifty percent (50%) of the votes exercisable by the holders of the Voting Stock of the Affiliate, either alone or together with any other persons with whom it is acting jointly or in concert, is now, either alone or together with any other persons with whom it is acting jointly or in concert, entitled to hold more than fifty percent (50%) of the votes, exercisable by holders of the Voting Stock of the Affiliate or of such Person into which the Voting Stock of the Affiliate has been converted;

	  
	  
	  

	  
	 (c)
	 The capital of an Affiliate is reorganized and a Person, together with any other persons with whom it is acting jointly or in concert, which previously held securities representing less than fifty percent (50%) of the votes exercisable by the holders of the Voting Stock of the Affiliate, now as a result of such reorganization, holds securities entitled to more than fifty percent (50%) of the votes exercisable by the holders of the Voting Stock of the Affiliate;

	  
	  
	  

	  
	 (d)
	 An Affiliate sells or otherwise transfers all or substantially all of its assets to another Person and a Person, together with any other persons with whom it is acting jointly or in concert, which previously held securities representing less than fifty percent (50%) of the votes exercisable by the holders of the Voting Stock of the Affiliate, now as a result of such sale or transfer, holds securities entitled to more than fifty percent (50%) of the votes exercisable by the holders of the Voting Stock of the Affiliate; or

	  
	  
	  

	  
	 (e) 
	 During any period of two consecutive years, individuals (“Incumbent Directors”) who at the beginning of any such period constitute the directors of an Affiliate cease for any reason to constitute at least a majority thereof. For the purposes of this clause:

     
 	  
	 (i)
	 Each director who, during any such period, is elected or appointed as a director of an Affiliate with the approval of at least a majority of the Incumbent Directors will be deemed to be an Incumbent Director;

	  
	  
	  

	  
	 (ii)
	 An “Incumbent Director” does not include a director, elected or appointed pursuant to an agreement (in respect of such election or appointment) with another Person that deals with an Affiliate at arm’s length, or as part of or related to an amalgamation, a merger or a consolidation of an Affiliate into or with another person, a reorganization of the capital of an Affiliate or the acquisition of an Affiliate as a result of which securities entitled to less than fifty (50%) percent of the votes exercisable by holders of the then-outstanding securities entitled to Voting Stock of an Affiliate is converted on or immediately after such transaction are held in the aggregate by Persons who were holders of Voting Stock of an Affiliate immediately prior to such transaction; and

	  
	  
	  

	  
	 (iii)
	 References to an Affiliate shall include successors to an Affiliate as a result of any amalgamation, merger, consolidation or reorganization of an Affiliate into or with another body corporate or other legal Person.

    
 	 
	-8-
	

	 

    
 7. Non-Solicitation
  
 7.1 The Employee will gain knowledge of the Employer and the Affiliate’s business and will form a close working relationship with their respective clients, suppliers, and employees which knowledge could be used to injure the Employer and/or the Affiliates if made available to a competitor or used for competitive purposes.
  
 7.2 The Employee agrees that during employment and for a period of six (6) months after the termination of employment hereunder, howsoever brought about, the Employee will not solicit or attempt to solicit any of the Employer’s or Affiliates’ clients, provided that following the termination of the Employee’s employment, this clause shall only apply in respect of such clients with whom the Employee had serviced or solicited during the twelve (12) month period immediately preceding the termination of the Employee’s employment.
  
 7.3 The Employee agrees that during employment and for a period of six (6) months following termination of employment hereunder, howsoever brought about, the Employee will not solicit or attempt to solicit any employee of the Employer that causes or is attempted to cause such employees to cease or reduce the employment provided to the Employer by such employees, provided that following the termination of the Employee’s employment, this provision shall only apply in respect of such employees with whom the Employee worked with during the twelve (12) month period immediately preceding the termination of the Employee’s employment.
  
 7.4 The Employee acknowledges and agrees that all of the restrictions contained in clause 7 are necessary and fundamental to the protection of the business of the Employer and that all such restrictions are fair, reasonable and valid given the nature of the Employer’s business and the Employee’s position within that business. The Employee hereby waives all defences to the strict enforcement thereof. The Employee further confirms that these obligations will not unduly preclude Employee from becoming gainfully employed or from otherwise working following the termination of this Agreement.
  
 8. Notices
  
 8.1 Any notice required or permitted to be given to either party must be delivered by hand or personally to the party's address last known to the other party and will be deemed to be received on the date of hand delivery or personal delivery to such address. Personal delivery shall include delivery by a commercial courier.
  
 9. Survival
  
 9.1 The Employee's obligations contained in clauses 3, 7 and 8, shall survive the termination of this agreement.
     
 	 
	-9-
	

	 

   
 9.2 The provisions of this Agreement shall survive changes in the employment relationship including, but not limited to:
  
 	  
	 (a)
	 Changes in the Employee's duties, responsibilities, and compensation and benefits;

	  
	  
	  

	  
	 (b)
	 Changes in ownership of the Employer; and

	  
	  
	  

	  
	 (c)
	 Passage of time.

    
 10. Severability, Employment Standards and Accessibility
  
 10.1 In the event that any provision of this agreement is found to be void, invalid, illegal or unenforceable by a court of competent jurisdiction, such finding will not affect any other provision of this agreement. If any provision of this agreement is so broad as to be unenforceable, to the maximum extent permissible by law, such provision shall be interpreted to be only so broad as is enforceable. All covenants, provisions and restrictions in this agreement shall be interpreted in accordance with the ESA, and if a greater entitlement is provided for under the ESA than as set out in any covenant, provision or restriction of this agreement, that greater entitlement shall prevail, the Employee’s entitlements shall be increased only to the extent necessary to satisfy such greater entitlement, and the Employer will provide the Employee with such greater entitlement.
  
 11. Waiver
  
 11.1 The waiver by either party of any breach or violation of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach or violation. Further, no such waiver shall be effective or binding unless made in writing by the party purporting to give it.
  
 12. Entire Agreement
  
 12.1 This Agreement, in conjunction with the Schedules to the Agreement and the Employer’s policies and procedures, constitutes the entire agreement between the parties with respect to the employment of the Employee and any and all previous agreements, written or oral, express or implied between the parties or on their behalf relating to the employment of the Employee by the Employer are terminated and cancelled and each of the parties releases and forever discharges the other of and from all manner of actions, causes of action, claim or demands whatsoever under or in respect of any agreement.
  
 13. Headings
  
 13.1 The headings utilized in this agreement are for convenience only and are not to be construed in any way as additions or limitations of the covenants and agreements contained in this agreement.
   
 	 
	-10-
	

	 

    
 14. Independent Legal Advice
  
 14.1 The Employee agrees that the Employee has been afforded the opportunity to obtain independent legal advice with respect to this agreement and its terms, and the Employee fully understands the nature and effect of this agreement, and has entered it freely, voluntarily and without duress.
  
 15. Governing Law
  
 15.1 This Agreement shall be governed by and construed in accordance with the laws of the Province of British Columbia.
  
 IN WITNESS WHEREOF the parties have duly executed this agreement as of the day and year first above written.
  
 	 Kelowna Management Services Corp.
	  

	  
	  
	  

	 Per:
	  “Chris Bunka” 
	  

	  
	 Chris Bunka
	  

  
 	    
 SIGNED, SEALED & DELIVERED
 in the presence of: 
	 )
 )
 )
 )
	  
	  

	 [**]4
	 )
	  
	  

	 Signature
	 )
	  
	  

	  
	 )
	  
	  

	 Print Name
	 )
	 “Gregory Downey”  
	  

	  
	 )
	 Gregory Downey
	  

	 Address
	 )
	  
	  

	  
	 )
	  
	  

	 Occupation
	 )
	  
	  

  
 _________________
 4 Information regarding the witness has been redacted
   
 	 
	-11-
	

	 

  
 SCHEDULE “A”
  
 SERVICES
  
 The Employee shall provide the following services to the Employer and/or the Affiliates, as determined by the Employer:
  
 	  
	 (a)
	 All duties of a chief financial officer with review and signing authority, controller, and/or treasurer of a publicly traded consumer products / bioscience / biotechnology company including sourcing and/or negotiating financial proposals and corporate financings; managing accounts receivable and accounts payable; preparation and review of financial statements, notes and various monthly, quarterly and other regulatory reports; management of accounting staff; in coordination with the CEO, communications with shareholders and preparation and review of budgets, and preparation and implementation of internal accounting policies and procedures; and any other duties that should be reasonably expected by the Board of Directors or chief executive officer;

	  
	  
	  

	  
	 (b)
	 Collaborate with the president and/or chief executive officer to maintain and develop the financial reporting aspect only of the Company’s corporate/investor outreach materials as needed including overall corporate messaging through direct creation and development of corporate presentations, powerpoints, websites, shareholder and community communications, business plans, fact sheets, etc.;

	  
	  
	  

	  
	 (c)
	 Identify and evaluate opportunities for capital raising and/or strategic collaboration with suitable third-parties at appropriate points in time for the Company, including research, plan, propose, execute and close approved projects, acquisitions, mergers and partnerships, as well as locate and cultivate finance sources, all of which create value for the Company;

	  
	  
	  

	  
	 (d)
	 Work as needed with lawyers, partners, shareholders and other stakeholders as required by the Employer and/or the Affiliates and assist with the strategic corporate and financial planning; management of all the overall business operations; communications with shareholders; negotiation and management of agreements; and any other duties that should be reasonably expected by and at the pleasure of the Board of Directors.

   
 	 
	-12-
	

	 

  
 SCHEDULE “B”
  
 REMUNERATION
  
 	 1.1.
	 The Employee’s annual base salary will be [**]5 (“Base Salary”) payable semi-monthly.

	  
	  

	 1.2.
	 An annual increase equal to the Base Salary, equivalent to [**] of the Base Salary, beginning April 15, 2022 and on each subsequent anniversary thereafter until the end of the term;

	  
	  

	 1.3.
	 The Employee’s out of pocket expenses incurred on behalf of the Company shall be paid by the Company. Examples include, but are not limited to: stationery, printing, mileage allowance for personal vehicle use at $0.55/km when the Employee is required to use his vehicle for business travel purposes, and other normal day-to-day office operational expenses, but not including home office rent. In respect of expenses, the Employee shall provide statements and vouchers to the Company on a monthly basis.

	  
	  

	 1.4.
	 The Employee shall also be eligible to receive up to [**] of the total combined salary and any consulting fee compensation (“Performance Criteria Milestone Completion Payment”) Employee receives annually from the Company and any of the Affiliates as applicable based upon completion of performance criteria milestones to be approved by the Board of Directors. For greater certainty, the Employee will not be eligible for any Performance Criteria Milestone Completion Payments during the reasonable notice period, subject only to applicable ESA requirements.

	  
	  

	 1.5.
	 The Employee shall be entitled to ongoing training, continuing education and professional development programs of up to $5,000 per year. The Employee shall also be entitled to be reimbursed for any fees paid to maintain his Chartered Professional Accountant membership.

	  
	  

	 1.6.
	 The Employee shall be entitled to the following paid vacation:

   
 	  
	 ·
	During the first year of employment as Chief Financial Officer, namely during the period of April 15, 2021 to April 14, 2022, three weeks (or 15 days);
	  
	 ·
	During the second year of employment as Chief Financial Officer, namely during the period of April 15, 2022 to April 14, 2023, four weeks (or 20 days);
	  
	 ·
	For the remainder of time that the Employee is employed as Chief Financial Officer, five weeks (or 25 days).

 ______________
 5 Information redacted in Schedule “B” relates to compensation payable to the Employee which was previously disclosed in a Form 8-K filing made on April 16, 2021.
   
 	 
	-13-
	

	 

  
 	 1.7.
	 The Employee shall be issued 12,000 stock options from the Company’s registered equity incentive plan, exercisable for a period of five (5) years, which shall be vested as to 4,000 options upon assuming the role of CFO of the Company, 4,000 options on April 15, 2022 and 4,000 options on April 15, 2023 at an exercise price equal to the greater of US$0.01 more than the closing market price of the Company’s shares either on: (i) the day before grant; or (ii) the date of grant. The Employee shall be entitled to future participation in any stock option plan of the Employer or an Affiliate, with such stock option amounts and exercise price to be determined by the Board of Directors of such Employer or Affiliate.

    
 Notwithstanding anything to the contrary, in order to be eligible for any Performance Criteria Milestone Completion Payment and any other performance compensation, the Employee must be actively employed with the Employer at the time the Performance Criteria Milestone Completion Payment and any other performance compensation, as applicable, is paid to be eligible to receive payment, and for clarity (i) Performance Criteria Milestone Completion Payments and any other performance compensation are not earned, accrued, owned, owed, awarded or payable to the Employee unless the Employee is actively employed by the Employer at the time the Performance Criteria Milestone Completion Payment and any other performance compensation, as applicable, are made, and (ii) the Employee will not be considered actively employed or in active employment through any period of notice of termination that is or ought to have been given under any applicable law (including this agreement) in respect of such termination of employment, save and except as may be minimally required by the ESA. The Employee expressly agrees that the Employee waives any common law rights to any claim for loss of Performance Criteria Milestone Completion Payment and any other performance compensation. 
  
 If so requested by the Employee, through calculation with the Employee, and with the Employee’s approval: At the time of any equity award consideration that may be paid to the Employee hereunder, such equity award shall be subject to a reduction in the equity issued to the Employee per grant to be paid instead as cash proportional to the tax liability to be incurred by the Employee at the time of the award. The Company will withhold from payment to the Employee that fraction of the equity that corresponds to the federal and provincial income tax payments otherwise payable by the Employee, specifically with respect to each award only, and the Employee agrees that such a hybrid payment of cash and equity would fulfill the obligations of the Company with respect to each affected award. The intent of this partial cash payment is to provide cash compensation to the Employee in the proportionate amount of the equity award and it is expressly agreed that it remains the sole responsibility of the Employee to remit all amounts due to Provincial and Federal tax authorities.
   
 	 
	-14-Exhibit 10.1

 

AGREED FORM

 

 

Lock-Up
Agreement

 

This Lock-Up Agreement (this
 “Agreement”) is dated as of July [●], 2021, by and between the undersigned (the “Holder”)
and Lionheart Acquisition Corporation II, a Delaware corporation (“LCAP”).

 

Capitalized terms used, but
not otherwise defined herein, shall have the meanings ascribed to such terms in the Membership Interest Purchase Agreement, dated as of
July 11, 2021 (the “MIPA”) by and among LCAP, Master MSP, LLC, a newly-formed Delaware limited liability company and
a wholly-owned subsidiary of LCAP, each limited liability company set forth on Schedule 2.1(a) to the MIPA (collectively, the “MSP
Purchased Companies”), the members of the MSP Purchased Companies listed on Schedule 2.1(b) to the MIPA (each, a “Member”
and collectively the “Members”), and John H. Ruiz, as the representative of the Members.

 

BACKGROUND

 

Whereas,
pursuant to the MIPA, each Key Employee who receives Up-C Units as Equity Consideration (the “Units”) shall enter into
a Lock-Up Agreement with respect to such Units received in connection with the transactions contemplated by the MIPA.

 

Now,
Therefore, for and in consideration of the mutual covenants and agreements set forth herein, and other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties, intending to be legally bound, agree as follows:

 

AGREEMENT

 

1.              Lock-Up.

 

(a)              
During the Lock-up Period (as defined below), the Holder irrevocably agrees that he will not offer, sell, contract to sell or otherwise
dispose of, directly or indirectly, any of the Lock-Up Units, enter into a transaction that would have the same effect, enter into any
swap, hedge or other arrangement that transfers, in whole or in part, any of the economic consequences of ownership of the Lock-Up Units,
whether any of these transactions are to be settled by delivery of any Lock-Up Units, or otherwise, or publicly disclose the intention
to make any such offer, sale or disposition; provided that notwithstanding the foregoing, the Holder may pledge any Lock-Up Units
in connection with securing financing or otherwise. In this Agreement, any restrictions applicable to “Lock-Up Units” shall
also apply to the one Purchaser Class B Unit and the one share of Parent Class V Common Stock included in each of the Lock-Up Units and
any shares of Parent Class A Common Stock the Holder elects to receive in lieu of Lock-Up Units pursuant to Section 3.1(b) of the MIPA.

 

(b)              
In furtherance of the foregoing, during the Lock-up Period, LCAP will (i) place an irrevocable stop order on all the Lock-Up Units,
including those which may be covered by a registration statement, and (ii) notify LCAP’s transfer agent in writing of the stop order
and the restrictions on the Lock-Up Units under this Agreement and direct LCAP’s transfer agent not to process any attempts by the
Holder to resell or transfer any Lock-Up Units, except in compliance with this Agreement.

 

     

     

    

 

(c)              
“Lock-Up Units” means any Units beneficially owned (as defined in Rule 13d-3 promulgated under the Securities
Exchange Act of 1934, as amended (the “Exchange Act”)) by Holder as of immediately following the Closing, other than
(i) any security received pursuant to an equity incentive plan adopted by LCAP on or after the Closing Date, (ii) any shares of Parent
Class A Common Stock acquired in open market transactions, (iii) ten percent (10%) of the Units received by the Holder as Equity Consideration
pursuant to the MIPA, (iv) any Units that constitute the Escrow Consideration, and (v) any shares of Parent Class A Common Stock or Units
that are set forth on Schedule A hereto.

 

(d)              
The “Lock-up Period” means the period commencing on the Closing Date and ending on the earlier of the date that
is (i) six (6) months after the Closing Date and (ii) LCAP’s consummation of a liquidation, merger, stock exchange or other similar
transaction which results in all of LCAP’s stockholders having the right to exchange their shares of Parent Class A Common Stock
for cash, securities or other property.

 

2.              Term. This Agreement shall automatically terminate upon the earlier to occur of (a) such date and time as the MIPA is terminated
in accordance with its terms and (b) the expiration of the Lock-Up Period. Upon termination of this Agreement, none of the parties hereto
shall have any further obligations or liabilities under this Agreement; provided, that nothing in this Section 2 shall relieve
any party hereto of liability for any willful material breach of this Agreement prior to its termination.

 

3.              Fiduciary Duties. The covenants and agreements set forth herein shall not prevent any designee of any Holder from serving
on the Board of Directors of LCAP or from taking any action, subject to the provisions of the MIPA, while acting in the capacity as a
director of LCAP. Each Holder is entering into this Agreement solely in its capacity as the anticipated owner of Lock-Up Units following
the consummation of the transactions contemplated by the MIPA.

 

4.              Permitted Transfers. Notwithstanding anything to the contrary contained in this Agreement, subject to the conditions below,
the Holder may transfer Lock-Up Units (a) in connection with transfers or distributions to the Holder’s current or former general
or limited partners, managers or members, stockholders, other equityholders or direct or indirect affiliates (within the meaning of Rule
405 under the Securities Act of 1933, as amended) (the “Securities Act”) or to the estates of any of the foregoing;
(b) transfers by gift or sale to or among the spouse of the Holder, a family member of the Holder, or any trust created and existing for
the primary benefit of the Holder, the Holder's spouse or a family member of the Holder; (c) in connection with transfers by will or intestacy
to a family member of the Holder or a trust for the benefit of a family member of the Holder; (d) by virtue of the laws of descent and
distribution upon the death of the Holder; (e) pursuant to a qualified domestic relations order; provided, that in the case of
any transfer pursuant to the foregoing clauses it shall be a condition to any such transfer that (i) the transferee/donee agrees to be
bound by the terms of this Agreement to the same extent as if the transferee/donee were a party hereto; and (ii) each party (donor, donee,
transferor or transferee) shall not be required by law (including without limitation the disclosure requirements of the Securities Act
and the Exchange Act) to make, and shall agree to not voluntarily make, any filing or public announcement of the transfer or disposition
prior to the expiration of the Lock-Up Period; or (f) in connection with the entry into a written plan meeting the requirements of Rule 10b5-1
under the Exchange Act after the date of this Agreement relating to the sale of the Lock-Up Units; provided, that (A) the securities
subject to such plan may not be sold until after the expiration of the Lock-Up Period and (B) the Company shall not be required to effect,
and the undersigned shall not effect or cause to be effected, any public filing, report or other public announcement regarding the establishment
of the trading plan.

 

    	 	2	 

     

    

 

 

5.              Representations and Warranties. Each of the parties hereto, by their respective execution and delivery of this Agreement,
hereby represents and warrants to the other that (a) such party has the full right, capacity and authority to enter into, deliver and
perform its respective obligations under this Agreement, (b) this Agreement has been duly executed and delivered by such party and is
a binding and enforceable obligation of such party and is enforceable against such party in accordance with the terms of this Agreement,
and (c) the execution, delivery and performance of such party’s obligations under this Agreement will not conflict with or breach
the terms of any other agreement, contract, commitment or understanding to which such party is a party or to which the assets or securities
of such party are bound. The Holder has independently evaluated the merits of its decision to enter into and deliver this Agreement, and
such Holder confirms that it has not relied on the advice of LCAP, LCAP’s legal counsel, or any other person.

 

6.              No Additional Fees/Payment. Other than the consideration specifically referenced herein, the parties hereto agree that no
fee, payment or additional consideration in any form has been or will be paid to the Holder in connection with this Agreement.

 

7.              Notices. Any notices required or permitted to be sent hereunder shall be sent in writing, addressed as specified below,
and shall be deemed given: (a) if by hand or recognized courier service, by 4:00 PM on a Business Day, addressee’s day and time,
on the date of delivery, and otherwise on the first Business Day after such delivery; (b) if by fax or email, on the date that transmission
is confirmed electronically, if by 4:00 PM on a Business Day, addressee’s day and time, and otherwise on the first Business Day
after the date of such confirmation; or (c) five (5) Business Days after mailing by certified or registered mail, return receipt requested.
Notices shall be addressed to the respective parties as follows (excluding telephone numbers, which are for convenience only), or to such
other address as a party shall specify to the others in accordance with these notice provisions:

 

(a)           If to LCAP prior to the Closing, to:

 

4218 NE 2nd Avenue

2nd Floor

Miami, Florida 33137

Attention: Ophir Sternberg

Email: o@lheartcapital.com

 

with a copy to (which shall
not constitute notice):

 

DLA Piper LLP (US)

2525 East Camelback Road

Esplanade II Suite 1000

Phoenix, AZ 85016-4232

Attention: Steven D. Pidgeon

Email: steven.pidgeon@us.dlapiper.com

 

    	 	3	 

     

    

 

(b)           If to LCAP following the Closing, to:

 

2701 Le Jeune Road, Floor 10

Coral Gables, Florida 33134

Attn: General Counsel

Email: [●]

 

with a copy to (which
shall not consititute notice):

 

Weil, Gotshal & Manges LLP

767 Fifth Avenue

New York, NY 10153

Attention: Michael Aiello; Matthew Gilroy

Email: michael.aiello@weil.com;
matthew.gilroy@weil.com

 

(c)           If to the Holder, to the address set forth on the Holder’s signature page hereto, with a copy, which shall not constitute
notice, to:

 

[●]

 

or to such other address as any party may have
furnished to the others in writing in accordance herewith.

 

8.                Enumeration and Headings. The enumeration and headings contained in this Agreement are for convenience of reference only
and shall not control or affect the meaning or construction of any of the provisions of this Agreement.

 

9.                Counterparts. This Agreement may be executed in facsimile and in any number of counterparts, each of which when so executed
and delivered shall be deemed an original, but all of which shall together constitute one and the same agreement.

 

10.             
Successors and Assigns. Except as expressly provided otherwise in this Agreement, this Agreement and the terms, covenants,
provisions and conditions hereof shall be binding upon, and shall inure to the benefit of, the respective heirs, successors and assigns
of the parties hereto. The Holder hereby acknowledges and agrees that this Agreement is entered into for the benefit of and is enforceable
by LCAP and its successors and assigns.

 

11.             
Amendment. This Agreement may be amended or modified only by written agreement executed by each of the parties hereto.

 

12.             
Further Assurances. Each of the parties to this Agreement shall do and perform, or cause to be done and performed, all such
further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as any other
party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement.

 

    	 	4	 

     

    

 

13.             
No Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express
their mutual intent, and no rules of strict construction will be applied against any party.

 

14.             
Injunctive Relief. Each of the parties to this Agreement hereby acknowledges that in the event of a breach by any such party
of any material provision of this Agreement, the aggrieved party may be without an adequate remedy at law. Each of the parties thereto
agrees that, in the event of a breach of any material provision of this Agreement, the aggrieved party may elect to institute and prosecute
proceedings to enforce specific performance or to enjoin the continuing breach of such provision, as well as to obtain damages for breach
of this Agreement. By seeking or obtaining any such relief, the aggrieved party will not be precluded from seeking or obtaining any other
relief to which it may be entitled.

 

15.             
Governing Law; Jurisdiction. The terms and provisions of this Agreement shall be construed in accordance with the laws of
the State of Delaware. Any legal suit, action or proceeding arising out of or based upon this agreement, the other additional agreements
or the transactions contemplated hereby or thereby may be instituted in the Federal courts of the United States of America or the courts
of the State of Delaware, and each party irrevocably submits to the exclusive jurisdiction of such courts in any such suit, action or
proceeding. the parties irrevocably and unconditionally waive any objection to the laying of venue of any suit, action or any proceeding
in such courts and irrevocably waive and agree not to plead or claim in any such court that any such suit, action or proceeding brought
in any such court has been brought in an inconvenient forum.

 

16.             
WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY RIGHT IT MAY
HAVE TO A TRIAL BY JURY WITH RESPECT TO ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT.
EACH OF THE PARTIES HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE,
THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THAT FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE
OTHER HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY, AS APPLICABLE, BY, AMONG OTHER THINGS,
THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 16.

 

17.             
Severability. In the event that any term, provision, covenant or restriction of this Agreement, or the application thereof,
is held to be illegal, invalid or unenforceable under any present or future Law: (a) such provision will be fully severable; (b) this
Agreement will be construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a part hereof; (c)
the remaining provisions of this Agreement will remain in full force and effect and will not be affected by the illegal, invalid or unenforceable
provision or by its severance hereof; and (d) in lieu of such illegal, invalid or unenforceable provision, there will be added automatically
as a part of this Agreement a legal, valid and enforceable provision as similar in terms of such illegal, invalid or unenforceable provision
as may be possible.

 

    	 	5	 

     

    

 

18.             
Waiver. No failure or delay on the part of any party hereto to exercise any power, right, privilege or remedy under this
Agreement shall operate as a waiver of such power, right, privilege or remedy; and no single or partial exercise of any such power, right,
privilege or remedy shall preclude any other or further exercise thereof or of any other power, right, privilege or remedy. No party hereto
shall be deemed to have waived any claim available to such party arising out of this Agreement, or any power, right, privilege or remedy
under this Agreement, unless the waiver of such claim, power, right, privilege or remedy is expressly set forth in a written instrument
duly executed and delivered on behalf of such waiving party; and any such waiver shall not be applicable or have any effect except in
the specific instance in which it is given.

 

19.             
Controlling Agreement. To the extent the terms of this Agreement (as amended, supplemented, restated or otherwise modified
from time to time) directly conflicts with a provisions in the MIPA, the terms of this Agreement shall control.

 

[Signature Page Follows]

 

    	 	6	 

     

    

 

IN WITNESS WHEREOF, the parties
hereto have caused this Lock-up Agreement to be duly executed by their respective authorized signatories as of the date first indicated
above.

 

 

	 	Lionheart
Acquisition Corporation II
	 	 	 
	 	 	 
	 	By:	 
	 	 	Name: Ophir Sternberg
	 	 	Title: Chairman 

  

 

     

     

    

 

IN WITNESS WHEREOF, the parties
hereto have caused this Lock-up Agreement to be duly executed by their respective authorized signatories as of the date first indicated
above.

 

 

	 	HOLDER
	 	 
	 	[●]
	 	 	 
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	Address:
	 	 	 
	 	[●]

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