Document:

Exhibit
10.1

 

EMPLOYMENT
AGREEMENT

 

This
Employment Agreement, dated as of May 10, 2021 (this “Agreement”), is made and entered into by and between Worksport,
Ltd., a Nevada corporation (the “Company”), and Steven Rossi, a Canadian citizen residing in Ontario, Canada (the
“Executive” and together with the Company, the “Parties” and individually a “Party”).
Terms used herein and not otherwise defined shall have the meanings set forth in Section 11.

 

RECITALS

 

WHEREAS,
subject to the terms and conditions hereinafter set forth, Company wishes to employ Executive as its President and Chief Executive Officer
and Executive wishes to be employed by Company as its President and Chief Executive Officer.

 

NOW,
THEREFORE, in consideration of the foregoing premises and the mutual promises, terms, provisions, and conditions set forth in this
Agreement, the adequacy and sufficiency of which are hereby acknowledged, the Parties hereto, intending to be legally bound, hereby agree
as follows:

 

AGREEMENT

 

	1.	Employment.
    Subject to the terms and conditions set forth in this Agreement, Company hereby offers, and Executive hereby accepts employment with
    Company, as of the date first above written (the “Start Date”).
	 	 
	2.	Term.
    The Executive’s employment hereunder shall be effective as of the date both Parties have executed this Agreement (the “Effective
    Date”) and shall continue until the fifth (5th) anniversary thereof (the “Initial Term”),
    unless terminated earlier pursuant to the terms of this Agreement; provided that, on such fifth (5th) anniversary of the
    Effective Date and each third (3rd) annual anniversary thereafter (such date and each annual anniversary thereof, a “Renewal
    Date”), the Agreement shall be deemed to be automatically extended, upon the same terms and conditions, for successive
    periods of three (3) years (each  “Renewal Term”), unless either party provides written notice of its
    intention not to extend the term of the Agreement at least 90 days prior to the applicable Renewal Date. The Initial Term and each
    Renewal Term is hereinafter referred to as the “Term.”

 

	3.	Capacity
    and Performance.

 

	 	(a)	During
    the Term, the Executive shall be employed by Company on a full-time basis as its President and Chief Executive Officer. Executive
    shall perform such duties and responsibilities as directed by the Board of Directors of the Company (the “Board”),
    consistent with Executive’s position on behalf of Company.
	 	 	 
	 	(b)	Executive
    shall devote his full business time, attention, skill, and best efforts to the performance of his duties under this Agreement and
    shall not engage in any other business or occupation during the Term of Employment, including, without limitation, any activity that
    (x) conflicts with the interests of the Company or any other member of the Company Group, (y) interferes with the proper and efficient
    performance of Executive’s duties for the Company, or (z) interferes with Executive’s exercise of judgment in the Company’s
    best interests. Notwithstanding the foregoing, nothing herein shall preclude Executive from (i) serving, with the prior written consent
    of the Board, as a member of the Board of Directors or Advisory Board (or the equivalent in the case of a non-corporate entity) of
    a noncompeting for-profit business and one or more charitable organizations, (ii) engaging in charitable activities and community
    affairs, and (iii) managing Executive’s personal investments and affairs; provided, however, that the activities set
    out in clauses (i), (ii), and (iii) shall be limited by Executive so as not to materially interfere, individually or in the aggregate,
    with the performance of his duties and responsibilities hereunder.

 

    	 

     

    

 

	 	(c)	Executive’s
    employment with Company shall be exclusive with respect to the Business of Company. Accordingly, during the Term, Executive shall
    devote Executive’s full business time and Executive’s best efforts, business judgment, skill and knowledge to the advancement
    of the business and interests of Company and the discharge of Executive’s duties and responsibilities hereunder, except for
    permitted vacation (and other paid time off) periods, reasonable periods of illness or incapacity, and reasonable and customary time
    spent on civic, charitable and religious activities, in each case such activities shall not interfere in any material respect with
    Executive’s duties and responsibilities hereunder.
	 	 	 
	 	(d)	During
    the Term, the Executive will report directly to the Board.
	 	 	 
	 	(e)	On
    the Start Date, the Board shall appoint Executive as a director of Company and shall, during the Term, nominate and recommend Executive
    for election as a director. Executive acknowledges and agrees that Executive is not entitled to any additional compensation in respect
    of Executive’s appointment as a director of Company. If during the Term, Executive ceases to be a director of Company for any
    reason, Executive’s employment with the Company will continue (unless terminated under Section 5), and all terms
    of this Agreement (other than those relating to Executive’s position as a director of Company) will continue in full force,
    and effect and Executive will have no claims in respect of such cessation of office. Executive agrees to abide by all statutory,
    fiduciary or common law duties arising under applicable law that apply to Executive as a director of Company.
	 	 	 
	 	(f)	Executive
    shall be employed to perform his duties under this Agreement at the primary office location of Company, which currently is in Ontario,
    Canada, or at such other location or locations as may be mutually agreeable to Executive and Company (including reasonable provisions
    during the COVID-19 national public health emergency). Notwithstanding this, it is expected that the Executive shall be required
    to travel a reasonable amount of time in the performance of his duties under this Agreement.

 

	4.	Compensation
    and Benefits.

 

	 	(a)	Base
    Salary. For services performed by Executive under this Agreement, Company shall pay Executive an annual base salary during the
    Term at the rate of $300,000 per year, minus applicable withholdings and deductions, payable at the same times as salaries are payable
    to other executives of Company (the “Base Salary”). During the Term, the Base Salary shall be reviewed by the
    Compensation Committee and/or the Board each year, and the Board may, from time to time, increase such Base Salary and any reference
    to “Base Salary” herein shall refer to such Base Salary, as increased.
	 	 	 
	 	(b)	Annual
    Bonus. For each fiscal year of the Company during the Term, the Company shall afford Executive the opportunity to earn an incentive
    bonus (“Bonus”) as described in this Section 4(b). The aggregate target Bonus payable to Executive
    under such program(s) shall equal fifty percent (50%) of the Base Salary for such fiscal year and shall be payable to the extent
    the applicable performance goals are achieved (which goals and payment matrices shall be set by the Compensation Committee of the
    Board in its discretion). The amount of the Bonus will be determined by certification by the Board that the applicable goals have
    been achieved, and the Board shall promptly provide such certification following achievement of the applicable goals. The amount
    payable under this Section 4(b) shall be paid by the seventh (7th) day following the approval of the annual audited
    financial statements by the Board or its audit committee, as applicable, for the calendar year in which the Bonus is earned or if
    later, the fifteenth day of the third month following the end of the Company’s fiscal year in which the Bonus is earned.
	 	 	 
	 	(c)	Series
    A Preferred Stock Amendment. As a condition precedent and incentive for the Executive to enter into this Agreement, the Executive
    has consented to the Company amending the Certificate of Designation of the Series A Convertible Preferred Stock (the “Series
    A Preferred Stock”) of the Company (the “Series A Preferred Stock Certificate of Designation”) thereby
    (i) deleting the conversion rights of the Series A Preferred Stock and (ii) reducing the authorized amount of Series A Preferred
    Stock from 1,000,000 to 100 shares. In consideration for Executive forfeiting his Series A Preferred Stock conversion rights, the
    Company shall issue the Executive an aggregate of 34,350,6971 shares of unregistered to common stock (the “Shares”),
    thereby resulting in the Executive’s beneficially owning 25% of the Company’s issued and outstanding common stock (as
    adjusted for the issuance of the Shares) as of the date of this Agreement. In connection with the reduction in the authorized number
    of Series A Preferred Stock, the Executive shall return to the Company 900 shares of Series A Preferred Stock, resulting in the Executive
    holding 100 shares of the authorized Series A Preferred Stock.

 

 

1
Based on 165,052,348 share of common stock issued and outstanding as of the date of this Agreement.

 

    	2

     

    

 

	 	(d)	Equity
    Awards. During the Term, the Executive shall be entitled to receive equity awards either now or in the future, on terms and conditions
    similar to those applicable to other executive officers of the Company generally, inside or outside of any established equity plan.
    The amount and terms of the long-term incentive awards awarded to the Executive shall be set by the Compensation Committee in its
    discretion.
	 	 	 
	 	(e)	Other
    Executive Benefits. During the Term, the Executive shall be entitled to participate in all Executive benefit plans, including
    health and 401(k) plans, from time to time generally in effect for Company’s Executives (collectively, “Benefit Plans”).
    Such participation and receipt of benefits under any such Benefit Plans shall be on the same terms (including cost-sharing between
    Company and Executive) as are applicable to other Company Executives and shall be subject to the terms of the applicable plan documents
    and generally applicable Company policies. Company may alter, modify, add to or delete the Benefit Plans in a manner nondiscriminatory
    to Executive at any time in accordance with applicable plan rules. The Company shall reimburse Executive for premiums paid by Executive
    to receive health continuation coverage under his prior employer’s plans (pursuant to the Consolidated Omnibus Budget Reconciliation
    Act of 1985 (“COBRA”)) for the period of time from the Start Date through the date the Executive is eligible to
    participate in the Company’s medical, dental, vision plans.
	 	 	 
	 	(f)	Vacation.
    The Executive shall be entitled to an annual vacation of 20 days plus ten established holiday days per full calendar year of his
    employment with the Company hereunder. Any unused vacation in one accrued calendar year may not be carried over to any subsequent
    calendar year. However, the Company shall pay the Executive (based on the Executive’s Base Salary) for any such unused vacation
    days within 30 days of the end of any such calendar year.
	 	 	 
	 	(g)	Business
    and Travel Expenses. Company shall pay or reimburse Executive for all reasonable, customary and necessary business expenses (including
    cell phone, travel, lodging, and entertainment expenses) which are correctly documented and incurred or paid by Executive in the
    performance of Executive’s duties and responsibilities hereunder, subject to the rules, regulations, and procedures of Company
    and in effect from time to time.
	 	 	 
	 	(h)	Change
    in Control Transaction Bonus. During Executive’s employment, if (i) a Change in Control has occurred, and (ii) as of such
    Change in Control, the price per share of Company’s common stock is two (2) times or more the closing price per share of the
    common stock of the Company upon listing on an exchange, Executive shall be paid a bonus (the “Change in Control Transaction
    Bonus”), in cash, equal to two (2) times the Base Salary as in effect immediately before such Change in Control. If applicable,
    the Change in Control Transaction Bonus shall be paid in a lump sum within fifteen (15) days after the consummation of such Change
    in Control and the following certification by the Board of the occurrence of clauses (i) and (ii) above.

 

	5.	Termination
    of Employment; Severance Benefits. Notwithstanding the provisions of Section 2, the Executive’s employment
    hereunder shall terminate under the following circumstances:

 

	 	(a)	Death.
    If Executive’s dies during the Term, Executive’s employment hereunder shall immediately and automatically terminate.
    In such event, Company shall pay to Executive’s designated beneficiary or, if no beneficiary has been selected by Executive,
    to Executive’s estate, the Final Compensation. Company shall have no further obligation hereunder to Executive, Executive’s
    beneficiary, or Executive’s estate upon the termination of Executive’s employment under this Section 5(a)
    including, specifically, that the provisions of Section 5(d) shall not apply.

 

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	 	(b)	Disability.

 

	 	(i)	Company
    may terminate Executive’s employment hereunder due to Executive’s Disability during the Term by giving Executive thirty
    (30) days’ written notice of its intent to terminate, but in no event shall such termination be effective prior to the expiration
    of the time periods in the definition of “Disability.” Notwithstanding the foregoing, Company will, after engaging
    in an interactive process with Executive to discern whether reasonable accommodation(s) can be provided without undue hardship upon
    Company, offer Executive reasonable accommodation(s) to enable Executive to perform the essential functions of Executive’s
    position to the extent required by applicable law (if any) before terminating Executive’s employment hereunder. Executive may
    decline such reasonable accommodation, in which case Executive’s employment hereunder will terminate as provided in this subsection.
	 	 	 
	 	(ii)	In
    the event of such termination for Disability, Executive will receive Executive’s Final Compensation. Company shall have no
    further obligation hereunder to Executive upon termination of Executive’s employment under this Section 5(b),
    including, specifically, that the provisions of Section 5(d) shall not apply.
	 	 	 
	 	(iii)	Subject
    to Executive’s rights under the Family and Medical Leave Act (FMLA) and the Americans with Disabilities Act (ADA), Company
    may designate another Executive to act in Executive’s place during any period of Executive’s Disability during which
    Executive is unable to perform the essential functions of Executive’s position with or without a reasonable accommodation.
    Notwithstanding any such designation, Executive shall continue to receive the Base Salary in accordance with Section 4(a)
    and coverage under the Benefit Plans in accordance with Section 4(b), to the extent permitted by the then-current terms
    of the applicable benefit plans and as provided under the FMLA, if applicable, until the earliest to occur of (A) the end of the
    Term, (B) Executive becomes eligible for disability income benefits under Company’s disability income plan or (C) the termination
    of Executive’s employment.
	 	 	 
	 	(iv)	While
    receiving disability income payments under Company’s disability income plan (if applicable), Company will continue to pay to
    Executive Executive’s Base Salary under Section 4(a), but may offset any such disability income payments Executive
    receives against the Base Salary payments. Executive will also continue to participate in the Benefit Plans in accordance with Section
    4(b) and the terms of such Benefit Plans, until the end of the Term or until the termination of Executive’s employment,
    whichever occurs first.
	 	 	 
	 	(v)	If
    any question arises as to whether during any period Executive has a Disability as defined herein, Executive may, and at the request
    of Company shall, submit to a medical examination by a qualified, unbiased physician selected by Company and reasonably acceptable
    to Executive or Executive’s duly appointed guardian, if any, to determine whether Executive has a Disability and such determination
    shall for the purposes of this Agreement be conclusive of the issue.

 

	 	(c)	By
    Company for Cause. Company may terminate Executive’s employment hereunder for Cause, as defined in Section 11(c),
    at any time upon notice to Executive setting forth in reasonable detail the nature of such Cause. Upon the giving of notice of termination
    of Executive’s employment hereunder for Cause, Executive will receive Executive’s Final Compensation. Except as provided
    herein, Company will have no further obligation to Executive upon termination of Executive’s employment under this Section
    5(c). Any notice of termination of Executive’s employment hereunder for Cause, or any notice to Executive regarding
    any event, condition or circumstance that, if not cured, if applicable, in accordance with the above, could give rise to a termination
    of Executive’s employment hereunder for Cause, shall set forth in detail the applicable event(s), condition(s) or circumstance(s)
    constituting reason(s) or potential reason(s) for such termination hereunder.
	 	 	 
	 	(d)	By
    Company Other than for Cause or by Executive for Good Reason. Company may terminate Executive’s employment hereunder other
    than for Cause at any time upon thirty (30) days’ written notice to Executive and Executive may terminate Executive’s
    employment hereunder for Good Reason at any time upon thirty (30) days’ written notice to Company.

 

    	4

     

    

 

	 	(i)	In
    the event of a termination of Executive’s employment under this Section 5(d), in addition to the Final Compensation,
    Executive shall receive:

 

	 	(1)	continuation
    of Executive’s Base Salary, at the rate in effect as of the date immediately preceding the date of termination, until the earlier
    of (x) the Term End Date and (y) the first anniversary of the date of termination (provided, however,
    if the date of termination is after the first anniversary of the Start Date, the period pursuant to this subsection shall be eighteen
    (18) months after the date of termination), payable in accordance with the Company’s regular payroll practices, less applicable
    withholdings, commencing at the conclusion of the period set forth in Section 5(d)(iii), provided that the first installment
    of such payments shall include all amounts which would have been paid during the period between Executive’s date of termination
    and the date of such first installment; and
	 	 	 
	 	(2)	if
    the date of termination occurs after the end of a calendar year but prior to the date on which a Bonus is paid under Section
    4(b), payment of such Bonus as determined under Section 4(b) shall be at the time proscribed by Section
    4(b); and
	 	 	 
	 	(3)	payment
    of a pro-rata portion of the amount of Executive’s Bonus for the year in which termination occurs that would have been payable
    based on actual performance determined under the terms of the Bonus as then in effect for such year, with such pro-rata portion calculated
    by multiplying the amount of such bonus for the year in which such termination occurs (as determined by the Board based on actual
    performance for such year) by a number: (x) the numerator of which is the number of days worked by Executive during the year of such
    termination, and (y) the denominator of which is three hundred sixty-five (365), with such payment to be made after the determination
    of the Bonus pursuant to Section 4(b).

 

	 	(ii)	If
    the Executive timely and properly elects health continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of
    1985 (“COBRA”), the Company shall reimburse the Executive for the monthly COBRA premium paid by the Executive
    for himself and his dependents. Such reimbursement shall be paid to the Executive on the 1st day of the month immediately following
    the month in which the Executive timely remits the premium payment. The Executive shall be eligible to receive such reimbursement
    until the earliest of:

 

	 	(1)	the
    first anniversary of the date of termination (provided, however, if the date of termination is after the first anniversary of the
    Start Date, the period pursuant to this subsection (A) shall be eighteen (18) months after the date of termination);
	 	 	 
	 	(2)	the
    date the Executive is no longer eligible to receive COBRA continuation coverage; and
	 	 	 
	 	(3)	(C)
    the date on which the Executive receives substantially similar coverage from another employer or other source.

 

	 	(iii)	Any
    obligation of Company to Executive under this Section 5(d) (other than for the Final Compensation or for benefits required
    by law) is conditioned upon Executive’s execution and delivery to Company and the expiration of all applicable statutory revocation
    periods of a release of claims in the form attached hereto as Exhibit A (the “Executive Release”), provided,
    that the terms of such Executive Release provided, that the terms of such Executive Release shall be subject to modification to the
    extent necessary to comply with (a) the fact that Company is simultaneously terminating more than one executive as part of a group
    termination decision or (b) changes in applicable law, if any, occurring after the date hereof, and prior to the date such Executive
    Release is executed.

 

	 	(e)	By
    Executive Other than for Good Reason. Executive may terminate Executive’s employment hereunder other than for Good Reason
    upon thirty (30) days’ written notice to Company; provided, that Company may, in its sole and absolute discretion,
    by written notice accelerate such date of termination. In the event of a termination of Executive’s employment under this Section
    5(e)), Executive will receive the Final Compensation. Company shall have no further obligation hereunder to Executive upon
    termination of Executive’s employment under this Section 5(e).

 

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	 	(f)	Change
    in Control Severance. Except as otherwise set forth herein, if a Change in Control occurs, and on, or at any time during the 24 months
    following, the Change in Control, (i) the Company terminates Executive’s employment for any reason other than Good Cause or
    Disability, or (ii) Executive terminates Executive’s employment for Good Reason, Executive shall be entitled to the following
    benefits:

 

	 	(i)	The
    Company shall pay Executive, in a lump sum within 60 days following termination of Executive’s employment, severance equal
    to two times the sum of Executive’s Base Salary and Bonus (the full, non-prorated Bonus for the year of termination assuming
    attainment of the targeted performance goals at the 100% payout level).
	 	 	 
	 	(ii)	Executive
    also shall be entitled to receive any and all vested benefits accrued under any other incentive plans to the date of termination
    of employment, the amount, entitlement to, form, and time of payment of such benefits to be determined by the terms of such incentive
    plans. For purposes of calculating Executive’s benefits under the incentive plans, Executive’s employment shall be deemed
    to have terminated under circumstances that have the most favorable result for Executive under the applicable incentive plan.
	 	 	 
	 	(iii)	If,
    upon the date of termination of Executive’s employment, Executive holds any awards with respect to securities of the Company,
    (i) all such awards that are options shall immediately become vested and exercisable upon such date and shall be exercisable thereafter
    until the earlier of the third (3rd) year anniversary of Executive’s termination of employment or the expiration of
    the term of the options; (ii) all restrictions on any such awards of restricted stock, restricted stock units or other awards shall
    terminate or lapse, and all such awards of restricted stock, restricted stock units or other awards shall be vested and payable;
    and (iii) all performance goals applicable to any such performance-based awards that are “in cycle” (i.e., the performance
    period is not yet complete) shall be deemed satisfied at the “target” level (assuming 100% payout), and (iv) all such
    awards shall be paid in accordance with the terms of the applicable award agreement. The provisions of this subsection shall be subject
    (and defer) to the provisions of any incentive plan, award agreement or other agreement as it relates to an individual award to the
    extent such provisions provide treatment that is more favorable to Executive than the treatment described in this subsection and
    such more favorable provisions in such incentive plan, award agreement or other agreement shall supersede any inconsistent or contrary
    provision of this subsection. All of Executive’s awards with respect to securities of the Company that are outstanding upon
    the date of termination of Executive’s employment shall continue to be subject to, and enjoy the benefits and protections under,
    the terms of the incentive plan, the award agreement and any other plan, agreement, policy or other arrangement to which such awards
    are subject as of the effective date of Executive’s participation, including any employment security agreement or other written
    compensation arrangement (even if the remaining terms thereof are waived), without application of this subsection.
	 	 	 
	 	(iv)	Executive
    and Executive’s spouse and other qualified beneficiaries shall be eligible for continued coverage as follows:

 

	 	(A)	If
    the Executive, Executive’s spouse and/or Executive’s other qualified beneficiaries are enrolled under a group health
    plan as defined by COBRA, on the date of termination of Executive’s employment, Executive, Executive’s spouse and/or
    Executive’s qualified beneficiaries may elect to continue such coverage under COBRA, except that the maximum coverage period
    shall be extended to no less than the Severance Period (but no more than 2 years) for that Executive, unless, after electing COBRA,
    the individual attains age 65 and becomes eligible for Medicare, in which case COBRA shall end for that individual. If Executive,
    Executive’s spouse and/or Executive’s other qualified beneficiaries elect COBRA coverage, the Company shall pay a portion
    of the COBRA costs for the Severance Period for that Executive (subject to any earlier termination of COBRA). The portion to be paid
    by the Company shall equal the amount necessary so that the total of the COBRA costs paid by Executive is equal to the costs that
    would have been paid by Executive for such coverage as an active employee immediately prior to termination of Executive’s employment
    or, if less, prior to the Change in Control (except that Executive will not receive the benefit of the pre-tax treatment available
    to active employees under the Company Brands Employee Flexible Benefits Plan). The cost of COBRA coverage paid by the Company may
    be taxable income to the Executive and reported on Executive’s Internal Revenue Service Form W-2. Executive, Executive’s
    spouse and/or Executive’s qualified beneficiaries may continue coverage under COBRA after the Severance Period for that Executive,
    provided they pay the full COBRA costs and COBRA otherwise remains available.

 

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	 	(B)	The
    benefits and/or extended coverage provided under this subsection shall cease prior to the date such benefits and/or extended coverage
    would otherwise end under subsection if and when Executive (A) obtains employment with another employer during the Severance Period
    and becomes eligible for coverage under any substantially similar plan provided by his/her new employer or (B) fails to pay the required
    active employee portion of the cost of coverage provided under this subsection in the time and manner specified by the Company or
    its designee.

 

	 	(v)	Executive shall be entitled to payment for any accrued but unused vacation in accordance with the Company’s policy in effect at the time of termination of Executive’s employment, in a lump sum within 60 days following such termination. Executive shall not be entitled to receive any payments or other compensation attributable to vacation that would have been earned had Executive’s employment continued during the Severance Period, and Executive waives any right to receive any such compensation.
	 	 	 
	 	(vi)	The Company shall, at the Company’s expense, provide Executive with 12 months of executive outplacement services with a professional outplacement firm selected by the Company; provided that Executive must use the outplacement services by no later than the end of the second calendar year following the calendar year in which the termination of Executive’s employment occurred and the total cost of such outplacement services must not exceed any per individual cap on such amounts in the Company’s agreement with the professional outplacement firm selected by the Company.
	 	 	 
	 	(vii)	Executive shall not be entitled to reimbursement for any other fringe benefits or perquisite payments during the Severance Period, including but not limited to dues and expenses related to club memberships, automobile, cell phone, expenses for professional services, executive physicals, and other similar perquisites.
	 	 	 
	 	(viii)	The Company shall pay as incurred (within ten calendar days following the Company’s receipt of an invoice from Executive) Executive’s out-of-pocket expenses, including attorneys’ fees, incurred by Executive at any time from the date of this Agreement through Executive’s remaining lifetime or, if longer, the statute of limitations for contract claims under applicable state law, in connection with any action taken to enforce the Executive’s rights under this Agreement or construe or determine the validity of this Agreement or otherwise in connection herewith, including any claim or legal action or proceeding, whether brought by Executive or the Company or another party; provided, Executive must be successful through judgment in his/her favor with respect to such action in order to recover fees under this Section 7; provided further, that Executive shall have submitted an invoice for such fees and expenses at least fifteen calendar days before the end of the calendar year next following the calendar year in which such fees and expenses were incurred. The amount of such legal fees and expenses that the Company is obligated to pay in any given calendar year shall not affect the legal fees and expenses that the Company is obligated to pay in any other calendar year, and Executive’s right to have the Company pay such legal fees and expenses may not be liquidated or exchanged for any other benefit. The Company’s obligation to pay Executive’s eligible legal fees and expenses under this Section 7(c)(ii) shall not be conditioned upon the termination of Executive’s employment.

 

	6.	Effect
    of Termination.

 

	 	(a)	Upon
    termination of Executive’s employment hereunder and subject to the provisions of Section 5 and Section
    6(c)), Company’s entire obligation to Executive shall be payment of Final Compensation.
	 	 	 
	 	(b)	In
    connection with the cessation of Executive’s service as President and Chief Executive Officer of Company for any reason, except
    as may otherwise be requested by the Company in writing and agreed upon in writing by Executive, Executive shall be deemed to have
    resigned from any and all directorships, committee memberships, and any other positions Executive holds with the Company or any other
    member of the Company Group. Executive hereby agrees that no further action is required by Executive or any of the preceding to make
    the transitions and resignations provided for in this paragraph effective, but Executive nonetheless agrees to execute any documentation
    Company reasonably requests at the time to confirm it and to not reassume any such service or position without the written consent
    of Company.

 

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	 	(c)	Except
    as otherwise required by Consolidated Omnibus Budget Reconciliation Act or any similar federal or state law, benefits shall continue
    or terminate pursuant to the terms of the applicable benefit plan or agreement, without regard to any continuation of Base Salary
    or other payment to Executive following such date of termination.
	 	 	 
	 	(d)	The
    provisions of this Section 6 shall apply to any termination of employment. Provisions of this Agreement will survive
    any termination if so provided herein or if necessary or desirable to accomplish the purposes of other surviving provisions, including,
    without limitation, the obligations of Executive under Section 7 through Section 9.
	 	 	 
	 	(e)	Any
    termination of Executive’s employment with Company under this Agreement shall automatically be deemed to be simultaneous resignation
    of all other positions and titles (including any director positions) that Executive holds with Company and any Affiliate or subsidiary
    thereof. This Section 5(f)(vii) shall constitute a resignation notice for such purposes.
	 	 	 
	 	(f)	Upon
    termination of the Executive’s employment or upon the Company’s request at any other time, the Executive will deliver
    to the Company all of the Company’s property, equipment, and documents, together with all copies thereof, and any other material
    containing or disclosing any Intellectual Property or Confidential Information and certify in writing that the Executive has fully
    complied with the foregoing obligation. The Executive agrees that the Executive will not copy, delete, or alter any Company computer
    equipment information before the Executive returns it to the Company. In addition, if the Executive has used any personal computer,
    server, or email system to receive, store, review, prepare or transmit any Company information, including but not limited to, Confidential
    Information, the Executive agrees to provide the Company with a computer-usable copy of all such Confidential Information and then
    permanently delete and expunge such Confidential Information from those systems; and the Executive agrees to provide the Company
    access to the Executive’s system as reasonably requested to verify that the necessary copying and/or deletion is completed.

 

	7.	Confidential
    Information.

 

	 	(a)	Executive
    acknowledges that Company continually develops Confidential Information, that Executive may develop Confidential Information for
    Company and that Executive may learn of Confidential Information during the course of employment with Company. Executive will comply
    with the policies and procedures of Company for protecting Confidential Information and shall not disclose to any Person or use,
    other than as required by applicable law, regulation or process or for the proper performance of Executive’s duties and responsibilities
    to Company, any Confidential Information obtained by Executive incident to Executive’s employment or other association with
    Company. Executive understands that this restriction shall continue to apply after Executive’s employment terminates, regardless
    of the reason for such termination.
	 	 	 
	 	(b)	Notwithstanding
    anything contained in this Section 7 to the contrary, nothing contained herein shall prevent Executive from disclosing
    any Confidential Information required by law, subpoena, court order or other legal processes to be disclosed; provided, that, Executive
    shall give prompt written notice to Company of such requirement, disclose no more information than is so required and cooperate,
    at Company’s cost and expense, with any attempt by Company to obtain a protective order or similar treatment with respect to
    such information.
	 	 	 
	 	(c)	Pursuant
    to the Defend Trade Secrets Act of 2016, Executive understands that:

 

	 	(i)	Executive
    may not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that
    is made in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney and solely
    for the purpose of reporting or investigating a suspected violation of law; or is made in a complaint or other document that is filed
    under seal in a lawsuit or other proceeding; and
	 	 	 
	 	(ii)	if
    Executive files a lawsuit for retaliation by the Company for reporting a suspected violation of law, Executive may disclose the employer’s
    trade secrets to Executive’s attorney and use the trade secret information in the court proceeding if Executive files any document
    containing the trade secret under seal and does not disclose the trade secret, except pursuant to court order.

 

    	8

     

    

 

	8.	Assignment
    of Rights to Intellectual Property. Executive shall promptly and fully disclose to Company all Intellectual Property developed
    for the benefit of Company in the course of Executive’s employment by Company. Executive hereby assigns and agrees to assign
    to Company (or as otherwise directed by Company) Executive’s full right, title, and interest in and to all such Intellectual
    Property. Executive agrees to execute any and all applications for domestic and foreign patents, copyrights or other proprietary
    rights and to do such other acts (including without limitation the execution and delivery of instruments of further assurance or
    confirmation) requested by Company (at Company’s expense) to assign to Company the Intellectual Property developed for the
    benefit of Company in the course of Executive’s employment by Company and to permit Company to enforce any patents, copyrights
    or other proprietary rights to the Intellectual Property. Executive will not charge Company for time spent in complying with these
    obligations. All copyrightable works that Executive creates developed for the benefit of Company in the course of Executive’s
    employment by Company shall be considered “work made for hire.”
	 	 
	9.	Restricted
    Activities. Executive agrees that the restrictions on Executive’s activities during and after Executive’s employment
    set forth below are necessary to protect the goodwill, Confidential Information and other legitimate interests of Company and its
    successors and assigns:

 

	 	(a)	During
    the Term of this Agreement and during the Restricted Period following termination of employment, Executive will not, without the
    prior written consent of Company, directly or indirectly, and whether as principal or investor or as an Executive, officer, director,
    manager, partner, consultant, agent, or otherwise, alone or in association with any other Person, firm, corporation, or other business
    organization, engage or otherwise become involved in a Competing Business (as defined below) in any country in which the Company
    conducted business during the Term; provided, however, that the provisions of this Section 9 shall apply solely to
    those activities of a Competing Business which are congruent with those activities with which Executive was personally involved or
    for which Executive was responsible while employed by Company or its subsidiaries during the twelve (12) month period preceding termination
    of Executive’s employment. This Section 9 will not be violated, however, by (i) Executive’s investment
    of up to $100,000 in the aggregate in one or more publicly-traded companies that engage in a Competing Business, and (ii) Executive’s
    current investment in Encore Dermatology, Inc. “Competing Business” means a business or enterprise (other than
    Company or its subsidiaries) engaged in dermatology and plastic surgery and any other business directly competing with the business
    of the Company as currently conducted or otherwise conducted by the Company during the Term. “Restricted Period” means
    twelve (12) months.
	 	 	 
	 	(b)	During
    the Term of this Agreement and during the Restricted Period (as defined above), Executive will not engage in any Wrongful Solicitation.
    A “Wrongful Solicitation” shall be deemed to occur when Executive directly or indirectly (except in the course
    of Executive’s employment with Company), for the purpose of conducting or engaging in a Competing Business, calls upon, solicits,
    advises or otherwise does, or attempts to do, business with any Person who is, or was, during the then most recent 12-month period,
    a customer of Company or any of its subsidiaries, or takes away or interferes or attempts to take away or interfere with any custom,
    trade, business, patronage or affairs of Company or any of its subsidiaries, or hires or attempts to hire any Person who is, or was
    during the most recent 12-month period, an Executive, officer, representative or agent of Company or any of its subsidiaries, or
    solicits, induces, or attempts to solicit or induce any Person who is an Executive, officer, representative or agent of Company or
    any of its subsidiaries to leave the employ of Company or any of its subsidiaries, or violate the terms of their contract, or any
    employment agreement, with it.
	 	 	 
	 	(c)	It
    is expressly understood and agreed that although Executive and Company consider the restrictions contained in this Section
    9 to be reasonable if a court makes a final judicial determination of competent jurisdiction that the time or territory or
    any other restriction contained in this Agreement is an unenforceable restriction against Executive, the provisions of this Agreement
    shall not be rendered void but shall be deemed amended to apply as to such maximum time and territory and to such maximum extent
    as the court may judicially determine or indicate to be enforceable. Alternatively, if any court of competent jurisdiction finds
    that any restriction contained in this Agreement is unenforceable, and such restriction cannot be amended so as to make it enforceable,
    such finding shall not affect the enforceability of any of the other restrictions contained herein.

 

    	9

     

    

 

	 	(d)	Executive
    expressly understands that in the event of a violation of any period specified in this Section 9, such period shall
    be extended by a period of time equal to that period beginning with the commencement of any such violation and ending when such violation
    shall have been finally terminated in good faith.

 

Notwithstanding
anything contained in this Section 9, Executive’s service pursuant to Section 3(f)shall not constitute
a breach of this Section 9.

 

	10.	Enforcement
    of Covenants. Executive acknowledges that Executive has carefully read and considered all the terms and conditions of this Agreement,
    including the restraints imposed upon Executive pursuant to Section 7, Section 8, and Section 9,
    and Executive agrees that these restraints are necessary for the reasonable and proper protection of Company and its successors
    and assigns and that each and every one of the restraints is reasonable in respect to the subject matter, length of time and geographic
    area. Executive further acknowledges that, were Executive to breach any of the covenants in Section 7, Section 8 and Section 9 the
    damage to the Company would be irreparable. Executive therefore agrees that Company, in addition to any other remedies available
    to it, shall be entitled to preliminary and permanent injunctive relief against any breach or threatened breach by Executive of any
    of the covenants herein, without any requirement to post a bond or similar security. The Parties further agree that in the event
    that any provision of Section 7, Section 8, and Section 9 shall be determined by any court
    of competent jurisdiction to be unenforceable by reason of its being extended over too great a time, too large a geographic area
    or too great a range of activities, such provision shall be deemed to be modified to permit its enforcement to the maximum extent
    permitted by law.
	 	 
	11.	Definitions.
    Words or phrases that are initially capitalized or within quotation marks shall have the meanings provided in this Section
    11 and as provided elsewhere. For purposes of this Agreement, the following definitions apply:

 

	 	(a)	“$”
    refers to U.S. Dollars.
	 	 	 
	 	(b)	“Affiliate”
    means, with respect to any specified Person, any other Person which directly or indirectly through one or more intermediaries
    controls, or is controlled by, or is under common control with, such specified Person (for the purposes of this definition, “control”
    (including, with correlative meanings, the terms “controlling,” “controlled by” and “under
    common control with”), as used with respect to any Person, means the possession, directly or indirectly, of the power to
    either (i) direct or cause the direction of the management or policies of such Person, whether through the ownership of voting securities,
    by agreement or otherwise or (ii) vote at least fifty percent (50%) or more of the securities having voting power for the election
    of a majority of the directors (or Persons performing similar functions) of such Person.
	 	 	 
	 	(c)	“Cause”
    means if Executive is discharged by Company on account of the occurrence of one or more of the following events:

 

	 	(i)	Executive’s
    continued refusal or failure to perform (other than by reason of Disability) Executive’s material duties and responsibilities
    to Company if such refusal or failure is not cured within thirty (30) days following written notice of such refusal or failure by
    Company to Executive, or Executive’s continued refusal or failure to follow any reasonable lawful direction of the Board if
    such refusal or failure is not cured within thirty (30) days following written notice of such refusal or failure by Company to Executive;
	 	 	 
	 	(ii)	a
    material breach of this Agreement (other than Section 7, Section 8 and Section 9) by Executive
    that, if capable of being cured, is not cured within thirty (30) days following written notice of such breach by Company to Executive;
	 	 	 
	 	(iii)	an
    intentional and material breach of Section 7, Section 8, and Section 9 hereof by Executive;
	 	 	 
	 	(iv)	willful,
    grossly negligent or unlawful misconduct by Executive which causes material harm to Company or its reputation;

 

    	10

     

    

 

	 	(v)	any
    conduct engaged in by Executive that is materially detrimental to the business or reputation of Company as determined by the Board
    in good faith using its reasonable business judgment that is not cured within thirty (30) days following written notice from Company
    to Executive;
	 	 	 
	 	(vi)	Company
    is directed in writing by regulatory or governmental authorities to terminate the employment of Executive or Executive engages in
    activities that (i) are not approved or authorized by the Board, and (ii) cause actions to be taken by regulatory or governmental
    authorities that have a material adverse effect on Company; or
	 	 	 
	 	(vii)	a
    conviction, plea of guilty, or plea of nolo contendere by Executive, of or with respect to a criminal offense which is a felony
    or other crime involving dishonesty, disloyalty, fraud, embezzlement, theft, or similar action(s) (including, without limitation,
    acceptance of bribes, kickbacks or self-dealing), or the material breach of Executive’s fiduciary duties with respect to Company.

 

	 	(d)	“Change
    in Control” means the occurrence, in a single transaction or in a series of related transactions, of any one or more of
    the following events:

 

	 	(i)	A
    transaction or series of transactions (other than an offering of common stock to the general public through a registration statement
    filed with the Securities and Exchange Commission) whereby any “Person” or related “group” of “persons”
    (as such terms are used in Sections 13(d) and 14(d)(2) of the Exchange Act) (other than the Company, any of its subsidiaries, an
    Executive benefit plan maintained by the Company or any of its subsidiaries or a “Person” that, prior to such transaction,
    directly or indirectly controls, is controlled by, or is under common control with, the Company) directly or indirectly acquires
    beneficial ownership (within the meaning of Rule 13(d)(3) under the Exchange Act) of securities of the Company possessing more than
    fifty percent (50%) of the total combined voting power of the Company’s securities outstanding immediately after such acquisition;
	 	 	 
	 	(ii)	The
    consummation by the Company (whether directly involving the Company or indirectly involving the Company through one or more intermediaries)
    of (x) a merger, consolidation, reorganization, or business combination or (y) a sale or other disposition of all or substantially
    all of the Company’s assets in any single transaction or series of related transactions:

 

	 	(A)	which
    results in the Company’s voting securities outstanding immediately before the transaction continuing to represent (either by
    remaining outstanding or by being converted into voting securities of the Company or the Person that, as a result of the transaction,
    controls, directly or indirectly, the Company or owns, directly or indirectly, all or substantially all of the Company’s assets
    or otherwise succeeds to the business of the Company (the Company or such Person, the “Successor Entity”) directly
    or indirectly, at least a majority of the combined voting power of the Successor Entity’s outstanding voting securities immediately
    after the transaction, and
	 	 	 
	 	(B)	after
    which no Person or group beneficially owns voting securities representing fifty percent (50%) or more of the combined voting power
    of the Successor Entity; provided, however, that no Person or group shall be treated for purposes of this Section
    11(d) as beneficially owning fifty percent (50%) or more of the combined voting power of the Successor Entity solely
    as a result of the voting power held in the Company prior to the consummation of the transaction.

 

A
transaction shall not constitute a Change in Control if its sole purpose is to change the province of the Company’s incorporation
or to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities
immediately before such transaction.

 

	 	(e)	“Code”
    means the Internal Revenue Code of 1986, as amended.
	 	 	 
	 	(f)	“Company”
    has the meaning ascribed to it in the preamble of this Agreement.
	 	 	 
	 	(g)	“Company
    Group” shall mean the Company together with any of its direct or indirect subsidiaries.

 

	 	(h)	“Compensation
    Committee” shall mean the committee of the Board designated to make compensation decisions relating to senior executive
    officers of the Company.

 

    	11

     

    

 

	 	(i)	“Confidential
    Information” means any and all nonpublic information of the Company. Confidential Information includes, without limitation,
    such information relating to (i) the development, research, testing, manufacturing, marketing, and financial activities of the Company,
    (ii) the Services, (iii) the costs, sources of supply, financial performance, and strategic and/or business plans of Company, (iv)
    the identity and special needs of the customers and prospective customers of Company, and (v) the people and organizations with whom
    Company has business relationships and those relationships. Confidential Information also includes any information that Company has
    received, or may receive hereafter, belonging to customers or others with any understanding, express or implied, that the information
    would not be disclosed. Notwithstanding the foregoing, “Confidential Information” does not include (x) any information
    that is or becomes generally known to the industry or the public through no wrongful act of Executive or any representative of Executive
    and (y) any information that is made legitimately available to Executive by a third party without breach of any confidentiality obligation.
	 	 	 
	 	(j)	“Disability”
    means Executive’s inability, due to any illness, injury, accident or condition of either a physical or psychological nature,
    to substantially perform Executive’s duties and responsibilities hereunder for a period of one hundred twenty (120) consecutive
    days, or for any one hundred and eighty (180) days during any period of three hundred and sixty-five (365) consecutive calendar days,
    exclusive of any leave Executive may take under the Family and Medical Leave Act, 29 U.S.C. § 12101 et seq. (“FMLA”)
    or as a reasonable accommodation under the Americans with Disabilities Act, 29 U.S.C. § 2601 et seq. (“ADA”).
	 	 	 
	 	(k)	“Final
    Compensation” means the amount equal to the sum of (i) the Base Salary earned but not paid through the date of termination
    of employment, payable not later than the next scheduled payroll date, (ii) any business and related expenses and allowances incurred
    by Executive or to which Executive is entitled under Section 4(g) but unreimbursed on the date of termination of employment;
    provided that with respect to business expenses unreimbursed under Section 4(g), such expenses and required substantiation
    and documentation are submitted within one hundred eighty (180) days of termination in the case of termination on account of Executive’s
    death, or thirty (30) days on account of termination for any reason other than death, and that such expenses are reimbursable under
    Company’s applicable reimbursement policy, and (iii) any other supplemental compensation, insurance, retirement or other benefits
    due and payable or otherwise required to be provided under Section 4 in accordance with the terms and conditions of
    the applicable plan or agreement.
	 	 	 
	 	(l)	“Good
    Reason” means, without Executive’s express written consent, (i) a material reduction in the Base Salary, then in
    effect, except a material diminution generally affecting the members of the Company’s management, (ii) a material reduction
    in job title, position or responsibility, (iii) a material breach of any term or condition contained in this Agreement, or (iv) a
    relocation of Executive’s principal worksite that is more than fifty (50) miles (80.46 km) from Executive’s principal
    worksite as of the Start Date. However, none of the foregoing events or conditions will constitute “Good Reason” unless
    (i) Executive provides Company with written notice of the existence of Good Reason within ninety (90) days following the occurrence
    thereof, (ii) Company does not reverse or otherwise cure the event or condition within thirty (30) days of receiving that written
    notice, and (iii) Executive resigns Executive’s employment within thirty (30) days following the expiration of that cure period.
	 	 	 
	 	(m)	“Intellectual
    Property” means inventions, discoveries, developments, methods, processes, compositions, works, concepts and ideas (whether
    or not patentable or copyrightable or constituting trade secrets) conceived, made, created, developed or reduced to practice by Executive
    (whether alone or with others, whether or not during normal business hours or on or off Company premises) during Executive’s
    employment that relate to either the Services or any prospective activity of Company or that make use of Confidential Information
    or any of the equipment or facilities of Company.
	 	 	 
	 	(n)	“Person”
    means an individual, a corporation, a limited liability company, an association, a partnership, an estate, a trust, and any other
    entity or organization other than Company.
	 	 	 
	 	(o)	“Sale
    of Company” means the sale of Company to an independent third party or group of independent third Parties pursuant to which
    such party or Parties acquire (i) equity interests possessing the voting power under normal circumstances to elect a majority of
    the Board of Directors or similar governing body of Company (whether by merger, consolidation or sale or transfer of such equity
    interests), or (ii) all or substantially all of Company’s assets determined on a consolidated basis.
	 	 	 
	 	(p)	“Services”
    means all services planned, researched, developed, tested, manufactured, sold, licensed, leased or otherwise distributed or put
    into use by Company, together with all products provided or planned by Company, during Executive’s employment.

 

    	12

     

    

 

	 	(q)	“Severance
    Period” shall mean that number of years or partial years following termination of Executive’s employment equal to
    the number of years or partial years of Base Salary that the Executive receives under Section 5(f).
	 	 	 
	 	(r)	“Term
    End Date” shall mean the last day of the Term of this Employment Agreement.

 

	12.	Withholding.
    All payments made by Company under this Agreement may be reduced by any tax or other amounts required to be withheld by Company under
    applicable law or by any amounts authorized in writing by Executive.
	 	 
	13.	Assignment.
    Neither Company nor Executive may make any assignment of this Agreement or any interest herein, by operation of law or otherwise,
    without the prior written consent of the other; provided, however, that Company may assign its rights and obligations under this
    Agreement without the consent of Executive in the event of a Sale of Company. This Agreement shall inure to the benefit of and be
    binding upon Company and Executive, their respective successors, executors, administrators, heirs and permitted assigns.
	 	 
	14.	Compliance
    with Code Section 409A.

 

	 	(a)	Notwithstanding
    any provision of this Agreement to the contrary, Executive’s employment will be deemed to have terminated on the date of Executive
    “separation from service” (within the meaning of Treas. Reg. Section 1.409A-1(h)) with Company.
	 	 	 
	 	(b)	It
    is intended that this Agreement will comply with Section 409A of the Code, and any regulations and guideline issued thereunder (“Section
    409A”) to the extent that any compensation and benefits provided hereunder constitute deferred compensation subject to
    Section 409A. This Agreement shall be interpreted on a basis consistent with this intent. The Parties will negotiate in good faith
    to amend this Agreement as necessary to comply with Section 409A in a manner that preserves the original intent of the Parties to
    the extent reasonably possible. No action or failure to act, pursuant to this Section 14 shall subject Company to any claim, liability,
    or expense, and Company shall not have any obligation to indemnify or otherwise protect Executive from the obligation to pay any
    taxes pursuant to Section 409A of the Code.
	 	 	 
	 	(c)	For
    purposes of the application of Treas. Reg. § 1.409A-1(b)(4)(or any successor provision), each payment in a series of payments
    will be deemed a separate payment.
	 	 	 
	 	(d)	Notwithstanding
    anything in this Agreement to the contrary, if any amount or benefit that would constitute non-exempt “deferred compensation”
    for purposes of Section 409A of the Code would otherwise be payable or distributable under this Agreement by reason of Executive’s
    separation from service during a period in which Executive is a “specified Executive” (as defined under Code Section
    409A and the final regulations thereunder), then, subject to any permissible acceleration of payment by Company under Treas. Reg.
    Section 1.409A-3(j)(4)(ii) (domestic relations order), (j)(4)(iii) (conflicts of interest), or (j)(4)(vi) (payment of employment
    taxes):

 

	 	(i)	if
    the payment or distribution is payable in a lump sum, the Executive’s right to receive payment or distribution of such non-exempt
    deferred compensation will be delayed until the earlier of Executive’s death or the first day of the seventh month following
    Executive’s separation from service; and
	 	 	 
	 	(ii)	if
    the payment or distribution is payable over time, the amount of such non-exempt deferred compensation that would otherwise be payable
    during the six months immediately following Executive’s separation from service will be accumulated, and the Executive’s
    right to receive payment or distribution of such accumulated amount will be delayed until the earlier of Executive’s death
    or the first day of the seventh month following Executive’s separation from service, whereupon the accumulated amount will
    be paid or distributed to Executive and the normal payment or distribution schedule for any remaining payments or distributions will
    resume.

 

This
Section 14(d) should not be construed to prevent the application of Treas. Reg § 1.409A-1(b)(9)(iii)(or any successor
provision) to amounts payable hereunder (or any portion thereof).

 

    	13

     

    

 

	15.	Golden
    Parachute Limitation. Notwithstanding anything in this Section or elsewhere in this Agreement to the contrary, in the event the
    payments and benefits payable hereunder to or on behalf of Executive (which the Parties agree will not include any portion of payments
    allocated to the non-competition and non-solicitation provisions of Section 9) that are classified as payments of reasonable
    compensation for purposes of Section 280G of the Code, when added to all other amounts and benefits payable to or on behalf of Executive,
    would result in the loss of a deduction under Code Section 280G, or the imposition of an excise tax under Code Section 4999, the
    amounts and benefits payable hereunder shall be reduced to such extent as may be necessary to avoid such loss of deduction or imposition
    of excise tax. In applying this principle, the reduction shall be made in a manner consistent with the requirements of Code Section
    409A and where two or more economically equivalent amounts are subject to reduction, but payable at different times, such amounts
    shall be reduced on a pro-rata basis. All calculations required to be made under this subsection will be made by the Company’s
    independent public accountants, subject to the right of Executive’s professional advisors to review the same. The Parties recognize
    that the actual implementation of the provisions of this subsection are complex and agree to deal with each other in good faith to
    resolve any questions or disagreements arising hereunder.
	 	 
	16.	Successors.

 

	 	(a)	Company’s
    Successors. Subject to Section 5(f), any successor to the Company (whether direct or indirect and whether by purchase,
    merger, consolidation, liquidation or otherwise) to all or substantially all of the Company’s business and/or assets shall
    assume the obligations under this Agreement and agree expressly to perform the obligations under this Agreement in the same manner
    and to the same extent as the Company would be required to perform such obligations in the absence of a succession. For all purposes
    under this Agreement, the term “Company” shall include any successor• to the Company’s business and/or assets
    which executes and delivers the assumption agreement described in this Section 16 or which becomes bound by the terms
    of this Agreement by operation of law.
	 	 	 
	 	(b)	Executive’s
    Successors. The terms of this Agreement and all rights of Executive hereunder shall inure to the benefit of, and be enforceable
    by, Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and
    legatees

 

	17.	Clawback
    Provisions. Any amounts payable under this Agreement are subject to any policy (whether in existence as of the Effective Date
    or later adopted) established by the Company providing for clawback or recovery of amounts that were paid to the Executive. The Company
    will make any determination for clawback or recovery in its sole discretion and in accordance with any applicable law or regulation.
	 	 
	18.	Indemnification.
    Company will indemnify Executive to the fullest extent permitted by law, for all amounts (including, without limitation, judgments,
    fines, settlement payments, expenses and reasonable out-of-pocket attorneys’ fees) incurred or paid by Executive in connection
    with any action, suit, investigation or proceeding, or threatened action, suit, investigation or proceeding, arising out of or relating
    to the performance by Executive of services for, or the acting by Executive as a director, officer or Executive of, Company, or any
    subsidiary of Company. Any fees or other necessary expenses incurred by Executive in defending any such action, suit, investigation
    or proceeding shall be paid by Company in advance, subject to Company’s right to seek repayment from Executive if a determination
    is made that Executive was not entitled to indemnification.
	 	 
	19.	Severability.
    If any portion or provision of this Agreement shall to any extent be declared illegal or unenforceable by a court of competent jurisdiction,
    then the remainder of this Agreement, or the application of such portion or provision in the circumstances other than those as to
    which it is so declared illegal or unenforceable, shall not be affected thereby, and each portion and provision of this Agreement
    shall be valid and enforceable to the fullest extent permitted by law.
	 	 
	20.	Waiver.
    No waiver of any provision hereof shall be effective unless made in writing and signed by the waiving party. The failure of either
    party to require the performance of any term or obligation of this Agreement, or the waiver by either party of any breach of this
    Agreement, shall not prevent any subsequent enforcement of such term or obligation or be deemed a waiver of any subsequent breach.
	 	 
	21.	Survival.
    Section 6 through Section 32 shall survive and continue in full force in accordance with their terms
    notwithstanding the termination of Executive’s employment (and hence the Term of this Agreement) for any reason.

 

    	14

     

    

 

	22.	Notices.
    Any and all notices, requests, demands and other communications provided for by this Agreement shall be in writing and shall be effective
    when delivered in Person, with respect to notices delivered personally, or upon confirmed receipt when delivered by facsimile or
    deposited with a reputable, nationally recognized overnight courier service and addressed or faxed to Executive at Executive’s
    last known address on the books of Company or, in the case of Company, at its principal place of business, attention: Secretary,
    Board of Directors.
	 	 
	23.	Entire
    Agreement. This Agreement constitutes the entire agreement between the Parties (including with respect to Company, its successors
    and assigns) with respect to Executive’s employment and supersedes all prior communications, agreements and understandings,
    written or oral, with respect to the terms and conditions of Executive’s employment.
	 	 
	24.	Amendment.
    This Agreement may be amended or modified only by a written instrument signed by Executive and by an expressly authorized representative
    of Company.
	 	 
	25.	Headings.
    The headings and captions in this Agreement are for convenience only and in no way define or describe the scope or content of any
    provision of this Agreement.
	 	 
	26.	Counterparts.
    This Agreement may be executed in two or more counterparts, each of which shall be an original and all of which together shall constitute
    one and the same instrument. Furthermore, the delivery of a copy of such signature by facsimile transmission or other electronic
    exchange methodology shall constitute a valid and binding execution and delivery of this Agreement by such party, and such electronic
    copy shall constitute an enforceable original document. Counterpart signatures need not be on the same page and shall be deemed effective
    upon receipt.
	 	 
	27.	Additional
    Obligations. Without implication that the contrary would otherwise be true, Executive’s obligations under Section
    7, Section 8 and Section 9 are in addition to, and not in limitation of, any obligations that
    Executive may have under applicable law (including any law regarding trade secrets, duty of loyalty, fiduciary duty, unfair competition,
    unjust enrichment, slander, libel, conversion, misappropriation and fraud).
	 	 
	28.	Attorneys’
    Fees. In any action or proceeding brought to enforce any provision of this Agreement, the prevailing party shall be entitled
    to recover reasonable attorneys’ fees, costs, and expenses from the other party to the action or proceeding. For purposes of
    this Agreement, the “prevailing party” shall be deemed to be that party who obtains substantially the result sought,
    whether by settlement, mediation, judgment or otherwise, and “attorneys’ fees” shall include, without limitation,
    the reasonable out-of-pocket attorneys’ fees incurred in retaining counsel for advice, negotiations, suit, appeal or other
    legal proceeding, including mediation and arbitration.
	 	 
	29.	Confidentiality.
    The Parties acknowledge and agree that this Agreement and each of its provisions are and shall be treated strictly confidential.
    During the Term and thereafter, Executive shall not disclose any terms of this Agreement to any Person or entity without the prior
    written consent of Company, with the exception of Executive’s tax, legal or accounting advisors or for legitimate business
    purposes of Executive, or as otherwise required by law.
	 	 
	30.	No
    Rule of Construction. This Agreement shall be construed to be neither against nor in favor of any party hereto based upon any
    party’s role in drafting this Agreement, but rather in accordance with the fair meaning hereof.
	 	 
	31.	Governing
    Law. The validity, interpretation, construction and performance of this Agreement shall
    be governed by the laws of the state of Nevada. To the extent any terms of this Agreement are not applicable or enforceable due to
    the location of the Company’s executive offices or Executive’s residence in Ontario, Canada, the terms shall be interpreted
    and enforced under applicable law of similar import and to the extent most favorable to the Executive.
	 	 
	32.	WAIVER
    OF JURY TRIAL. EXECUTIVE AND COMPANY EXPRESSLY WAIVE ANY RIGHT EITHER MAY HAVE TO A JURY TRIAL CONCERNING ANY CIVIL ACTION THAT
    MAY ARISE FROM THIS AGREEMENT OR THE RELATIONSHIP OF THE PARTIES HERETO.
	 	 
	33.	Conditions.
    This Agreement and the Executive’s continued employment hereunder is conditional on the Company’s satisfaction (determined
    in the Company’s sole discretion) that the Executive has met the legal requirements to perform the Executive’s role,
    including but not limited to satisfactory results of Health Canada or any other applicable security clearance checks and criminal
    record checks and other reference checks that the Company performs. The Executive acknowledges and agrees that in signing this Agreement,
    and providing the Company with the necessary documentation to perform the checks required for the Executive’s role and with
    references, the Executive is providing consent to the Company or its agent, to performs such checks and contact the references the
    Executive provided to the Company.

 

    	15

     

    

 

	34.	Prior
    Restrictions. By signing below, the Executive represents that the Executive is not bound by the terms of any agreement with any
    Person which restricts in any way the Executive’s hiring by the Company and the performance of the Executive’s expected
    job duties; the Executive also represents that, during the Executive’s employment with the Company, the Executive shall not
    disclose or make use of any confidential information of any other persons or entities in violation of any of their applicable policies
    or agreements and/or applicable law.
	 	 
	35.	Independent
    Legal Counsel. By signing below, the Executive hereby acknowledges that the Executive has been encouraged to obtain independent
    legal advice regarding the execution of this Agreement, and that the Executive has either obtained such advice or voluntarily chosen
    not to do so, and hereby waives any objections or claims the Executive may make resulting from any failure on the Executive’s
    part to obtain such advice.
	 	 
	36.	Counterparts.
    This Agreement may be executed in one or more counterparts, each of which shall be deemed an original when executed, but all of which
    taken together shall constitute the same Agreement. Delivery of an executed counterpart of a signature page to this Agreement by
    electronic transmission, including in portable document format (.pdf), shall be deemed as effective as delivery of an original executed
    counterpart of this Agreement.

 

[SIGNATURE
PAGE FOLLOWS]

 

    	16

     

    

 

IN
WITNESS WHEREOF, this Agreement has been executed by Company (by its duly authorized representative) and by Executive, as of the
date first above written.

 

	 	WORKSPORT,
    LTD.
	 	 	 
	 	By:	/s/
    Craig Loverock

	 	Name:	 Craig Loverock
	 	Title:	Director

 

	 	EXECUTIVE:
	 	 
	 	
    /s/ Steven Rossi

	 	Steven Rossi

 

    	17

     

    

 

EXHIBIT
A

 

Release
of Claims

 

FOR
AND IN CONSIDERATION OF the benefits to be provided me in connection with the termination of my employment, as set forth in that certain
Employment Agreement, dated as of May 3, 2021 (the “Agreement”), between me and Worksport, Ltd. (the “Company”),
or under any severance pay plan applicable to me, which benefits are conditioned on my signing this Release of Claims and to which I
am not otherwise entitled, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
I, on my own behalf and on behalf of my heirs, executors, administrators, beneficiaries, representatives and assigns, and all others
connected with me, hereby release and forever discharge Company and any of its subsidiaries and Affiliates (as that term is defined in
Section 11(b) of the Agreement) and all of their respective past, present and future officers, directors, trustees, equity
holders, Executives, agents, managers, joint venturers, representatives, successors and assigns, and all others connected with any of
them (collectively, the “Released Parties”), both individually and in their official capacities, from any and all
causes of action, rights and claims of any type or description, known or unknown, which I have had in the past, now have, or might now
have, through the date of my signing of this Release of Claims, in any way resulting from, arising out of or connected with my employment
by Company or any of its Affiliates or the termination of that employment, including, but not limited to, any allegation, claim or violation
arising under: Title VII of the Civil Rights Act of 1964, as amended; the Civil Rights Act of 1991; the Age Discrimination in Employment
Act of 1967, as amended (including the Older Worker Benefit Protection Act); the Equal Pay Act of 1963, as amended; the Americans with
Disabilities Act of 1990; the Family and Medical Leave Act of 1993; the Worker Adjustment Retraining and Notification Act; Executive
Retirement Income Security Act of 1974; the Fair Labor Standards Act; any applicable Executive Orders; or their state or local counterparts;
or under any other federal, state or local civil or human rights law, or under any other federal, state or local law, regulation or ordinance;
or under any public policy, contract or tort, or under common law; or arising under any policies, practices or procedures of Company;
or any claim for wrongful discharge, breach of contract, intentional infliction of emotional distress or defamation; or any claim for
costs, fees or other expenses, including attorneys’ fees incurred in these matters (all of the foregoing collectively referred
to herein as “Claims”), other than (i) the right to payment of any vested or accrued benefits under any supplemental
compensation, insurance, retirement and/or other benefit plan or agreement applicable to Executive, (ii) the right to payment of any
amounts owed to me by Company pursuant to Section 5 or Section 5(f) of the Agreement, (iii) any rights under
applicable workers compensation or unemployment compensation laws, (iv) any rights that survive termination of my employment pursuant
to an option grant agreement or certificate to purchase Company’s (or an Affiliate’s) capital stock, (v) any rights with
respect to Company’s (or an Affiliate’s) capital stock owned by Executive or (vi) any rights to indemnification under the
Agreement, Company’s by-laws or any other applicable law.

 

In
signing this Release of Claims, I acknowledge my understanding that I may not sign it prior to the termination of my employment, but
that I may consider the terms of this Release of Claims for up to twenty-one (21) days (or such longer period as Company may specify)
from the later of the date my employment with Company terminates or the date I receive this Release of Claims. I also acknowledge that
I am advised by Company and its Affiliates to seek the advice of an attorney prior to signing this Release of Claims; that I have had
sufficient time to consider this Release of Claims and to consult with an attorney, if I wished to do so, or to consult with any other
Person of my choosing before signing; and that I am signing this Release of Claims voluntarily and with a full understanding of its terms.

 

I
represent that I have not filed against the Released Parties any complaints, charges, or lawsuits arising out of my employment, or any
other matter arising on or prior to the date of this Release of Claims, and covenant and agree that I will never individually or with
any Person file, or commence the filing of, any charges, lawsuits, complaints or proceedings with any governmental agency, or against
the Released Parties with respect to any of the matters released by me pursuant to this Release of Claims.

 

    	A-1

     

    

 

I
further acknowledge that, in signing this Release of Claims, I have not relied on any promises or representations, express or implied,
that are not set forth expressly in the Agreement. I understand that I may revoke this Release of Claims at any time within seven (7)
days of the date of my signing by written notice to the Secretary, Board of Directors of Company (or such other Person as Company may
specify by notice to me given in accordance with the Agreement) and that this Release of Claims will take effect only upon the expiration
of such seven-day revocation period and only if I have not timely revoked it.

 

Intending
to be legally bound, I have signed this Release of Claims as of the date written below.

 

	Signature:	 	 	 
	 	 	 
	Name:	 	Steven
    Rossi
	 
	 	 	 
	Date
    Signed:	 		 

 

 

    	A-2Document

EXHIBIT 10.1

Signify Health, Inc.
NON-QUALIFIED STOCK OPTION AWARD AGREEMENT
This Non-Qualified Stock Option Award Agreement (“Agreement”) is entered into by and between Signify Health, Inc. (the “Company”) and the participant whose name appears below (the “Participant”) in order to set forth the terms and conditions of Non-Qualified Stock Options (the “Options”) granted to the Participant under the Signify Health, Inc. 2021 Long-Term Incentive Plan (the “Plan”).
Participant’s Name:

															
					
	Award Type	“Date of Grant”	Number of Common Shares subject to Options	“Exercise Price”	“Vesting Schedule”
	Non-Qualified Stock Options	[●]
	[●]
	$[●]
	[●]

Subject to the attached Terms and Conditions and the terms of the Plan, which are incorporated herein by reference, the Company hereby grants to the Participant, on the Date of Grant, the number of Options, with the Exercise Price and Vesting Schedule, each as set forth above.  Capitalized terms used but not otherwise defined herein or in the attached Terms and Conditions shall have the meanings ascribed to such terms in the Plan.
IN WITNESS WHEREOF, the Company has duly executed and delivered this Agreement as of the Date of Grant.
												
	SIGNIFY HEALTH, INC.		PARTICIPANT
			
	By:			
		Name:  [●]
		Name: [●]

		Title:  [●]
		

    

Signify Health, Inc.
SIGNIFY HEALTH, INC. 2021 LONG-TERM INCENTIVE PLAN 
Terms and Conditions of Option Grant
1.GRANT OF OPTIONS.  The Options have been granted to the Participant as an incentive for the Participant to continue to provide services to the Company and its Affiliates, including the Affiliate employing the Participant (the “Employer”), and to align the Participant’s interests with those of the Company. The Options are not intended to qualify as incentive stock options under Section 422 of the Code. Each Option shall entitle the Participant to purchase from the Company, upon exercise as set forth in Section 4, a number of Common Shares as set forth above at the Exercise Price set forth above.
2.VESTING.  The Options shall vest and become exercisable in accordance with the Vesting Schedule, subject to the Participant’s continuous service with the Company and its Affiliates through each applicable vesting date.
(a)All unvested Options shall be immediately forfeited upon the Participant’s Separation from Service for any reason, and all vested but unexercised Options may be exercised by the Participant for a period of 90 days following the date of Separation from Service (or, if earlier, the Expiration Date (as defined below)); provided that in the event of the Participant’s Separation from Service (i) due to death or physical or mental incapacity to perform his or her usual duties, such condition likely to remain continuously and permanently, as determined by the Company, the Participant (or the Participant’s Beneficiary, if applicable) may exercise any vested Options until the first anniversary of the date of Separation from Service (or, if earlier the Expiration Date) or (ii) by the Company or an Affiliate for Cause (as defined below), all vested Options shall be immediately forfeited. 
(b)In the event of the Participant’s Separation from Service by the Company or an Affiliate without Cause or by the Participant for Good Reason within 24 months following a Change in Control, the Options shall become fully vested and exercisable.
(c)For purposes of this Agreement:
(i)“Cause” shall have the meaning ascribed to such term in the Participant’s employment agreement or offer letter with the Company or an Affiliate, if any, or, if not so defined or if the Participant is not a party to such employment agreement or offer letter, “Cause” shall mean (i) the Participant’s indictment for, conviction of, or a plea of guilty or nolo contendere to, a (A) felony or (B) any crime of moral turpitude; (ii) the Participant’s embezzlement, breach of fiduciary duty or fraud with regard to the Company or an Affiliate or any of their respective assets or businesses; (iii) the Participant’s continued failure to perform the duties of the Participant’s position, in the reasonable judgment of the Board; (iv) the Participant’s dishonesty, willful misconduct, or illegal conduct relating to the 
     2
    

affairs of the Company, an Affiliate or any of their respective customers; (v) the Participant’s breach of a material provision of any contractual obligation to the Company or an Affiliate; or (vi) other conduct by the Participant that may be harmful to the business, interests, or reputation of the Company or an Affiliate, including any material violation of a policy of the Company or an Affiliate. With respect to clauses (iii), (iv), (v), and (vi) above, the Company or the Employer, as applicable, shall provide ten (10) days written notice to the Participant of its intent to terminate for Cause, and during such ten (10) day period the Participant shall have a right to cure (if curable). If not cured within such period (as determined in the reasonable judgment of the Board, the Participant’s Separation from Service will be effective upon the date immediately following the expiration of the ten (10) day notice period. Notwithstanding anything to the contrary contained herein, the Participant’s right to cure as set forth above shall not apply if there are habitual or repeated breaches by the Participant.)
(ii)“Good Reason” shall have the meaning ascribed to such term in the Participant’s employment agreement or offer letter with the Company or an Affiliate, if any, or, if not so defined or if the Participant is not a party to such employment agreement or offer letter, “Good Reason” shall mean (A) a material diminution in the Participant’s duties, authorities, and responsibilities that is inconsistent with the Participant’s position; (B) a material reduction by the Company or an Affiliate in the Participant’s base salary or target bonus opportunity, other than any such reduction that applies generally to similarly situated employees of the Company and its Affiliates; or (C) the relocation of the Participant’s principal place of employment to a location outside a 50 mile radius from its current location; provided that, for the avoidance of doubt, this clause (C) shall not give rise to Good Reason in the event Participant is provided with a remote work arrangement; provided, further that, in each case, (x) the Participant shall provide the Company with written notice specifying the circumstances alleged to constitute Good Reason within 60 days following the first occurrence of such circumstances; (y) the Company shall have 30 days following receipt of such notice to cure such circumstances; and (z) if the Company has not cured such circumstances within such 30-day period, the Participant shall terminate his or her employment or service not later than 30 days after the end of such 30-day period.  For the avoidance of doubt, if the Participant does not deliver a written notice to the Company specifying the circumstances alleged to constitute Good Reason within 60 days following the first occurrence of such circumstances, the event will no longer constitute Good Reason.
3.OPTION TERM. The term of the Options shall expire on the tenth anniversary of the Date of Grant (the “Expiration Date”), unless terminated earlier in accordance with this Agreement or the Plan.  In no event may any portion of the Options be exercised after the Expiration Date.
4.OPTION EXERCISE. To the extent that the Options have become vested and exercisable in accordance with Section 2, the Options may thereafter be exercised by the Participant, 
     3
    

in whole or in part, at any time or from time to time prior to the Expiration Date. To exercise the Options, the Participant must comply with Section 6 and:
(a)deliver to the Company a written notice specifying the number of Common Shares to be purchased; and
(b)remit the aggregate Exercise Price to the Company in full, payable in the manner determined by the Committee from time to time in its sole discretion, which may include: (A) in cash or by check, bank draft or money order payable to the order of the Company; (B) through a procedure whereby the Participant delivers irrevocable instructions to a broker reasonably acceptable to the Committee to sell Common Shares obtained upon exercise of the Options and to deliver promptly to the Company an amount of the proceeds of such sale equal to the aggregate Exercise Price; (C) by a “net exercise” under which the Company reduces the number of Common Shares otherwise issuable to the Participant upon such exercise by the number of Common Shares with an aggregate Fair Market Value that equals the aggregate Exercise Price; or (D) any other method acceptable to the Committee.
5.NONTRANSFERABILITY. No portion of the Options may be sold, assigned, transferred, encumbered, hypothecated, or pledged by the Participant, other than to the Company as a result of forfeiture of the Options as provided herein, unless and until payment is made in respect of vested and exercised Options in accordance with the provisions hereof and the Participant has become the holder of record of the vested Common Shares issuable hereunder, unless otherwise provided by the Committee. During the lifetime of the Participant, the Options may be exercised only by the Participant or the Participant’s guardian or legal representative.
6.TAX AND WITHHOLDING.  Pursuant to rules and procedures that the Company or the Employer establishes, federal, state, local or foreign income or other tax or other withholding obligations arising upon exercise of the Options may be satisfied, in the Committee’s sole discretion, by having the Company or the Employer withhold Common Shares, by having the Participant tender Common Shares or by having the Company or the Employer withhold cash if the Company provides for a cash withholding option, in each case in an amount sufficient to satisfy the tax or other withholding obligations.  Common Shares withheld or tendered will be valued using the Fair Market Value of the Common Shares on the date the Options are exercised. Any withholding or tendering of Common Shares shall comply with the requirements of Financial Accounting Standards Board, Accounting Standards Codification, Topic 718, and any withholding satisfied through a net-settlement of the Options shall be limited to the maximum statutory withholding requirements. The Participant acknowledges that, if he or she is subject to taxes in more than one jurisdiction, the Company or the Employer may be required to withhold or account for taxes in more than one jurisdiction.
7.RIGHTS AS STOCKHOLDER.  The Participant will not have any rights as a stockholder in the Common Shares corresponding to the Options prior to exercise of the Options.
     4
    

8.SECURITIES LAW COMPLIANCE.  The Company may, if it determines it is appropriate, affix any legend to the stock certificates representing Common Shares issued upon exercise of the Options and any stock certificates that may subsequently be issued in substitution for the original certificates.  The Company may advise the transfer agent to place a stop order against such Common Shares if it determines that such an order is necessary or advisable.
9.COMPLIANCE WITH LAW.  Any sale, assignment, transfer, pledge, mortgage, encumbrance or other disposition of Common Shares issued upon exercise of the Options (whether directly or indirectly, whether or not for value and whether or not voluntary) must be made in compliance with any applicable constitution, rule, regulation or policy of any of the exchanges, associations or other institutions with which the Company has membership or other privileges, and any applicable law, or applicable rule or regulation of any governmental agency, self-regulatory organization or state or federal regulatory body.
10.RESTRICTIVE COVENANTS. The Participant hereby acknowledges and agrees that they will be subject to the restrictive covenants set forth in Schedule I which are incorporated herein by reference as if such provisions were set forth herein in full.
11.MISCELLANEOUS.
(a)No Right To Continued Employment or Service. This Agreement shall not confer upon the Participant any right to continue in the employ or service of the Company or an Affiliate, including the Employer, or to be entitled to any remuneration or benefits not set forth in this Agreement or the Plan nor interfere with or limit the right of the Company or an Affiliate, including the Employer, to modify the terms of or terminate the Participant’s employment or service at any time.
(b)No Advice Regarding Grant.  The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding the Participant’s participation in the Plan or acquisition or sale of the underlying Common Shares.  The Participant is hereby advised to consult with his or her own personal tax, legal and financial advisors regarding his or her participation in the Plan before taking any action related to the Plan or the Options.
(c)Cancellation/Clawback. The Participant hereby acknowledges and agrees that the Participant and the Options are subject to the terms and conditions of Section 20(o) of the Plan (regarding reduction, cancellation, forfeiture or recoupment of Awards upon the occurrence of certain specified events).
(d)Plan to Govern. This Agreement and the rights of the Participant hereunder are subject to all of the terms and conditions of the Plan as the same may be amended from time to time, as well as to such rules and regulations as the Committee may adopt for the administration of the Plan.
     5
    

(e)Amendment. Subject to the restrictions set forth in the Plan, the Company may from time to time suspend, modify or amend this Agreement or the Plan. Subject to the Company’s rights pursuant to Sections 5(b), 13 and 22 of the Plan, no amendment of the Plan or this Agreement may, without the consent of the Participant, adversely affect the rights of the Participant in a material manner with respect to the Options granted pursuant to this Agreement.
(f)Severability. In the event that any provision of this Agreement shall he held illegal or invalid for any reason, such illegality or invalidity shall not affect the remaining provisions of this Agreement, and this Agreement shall be construed and enforced as if the illegal or invalid provision had not been included.
(g)Entire Agreement. This Agreement and the Plan contain all of the understandings between the Company and the Participant concerning the Options granted hereunder and supersede all prior agreements and understandings.
(h)Successors.  This Agreement shall be binding upon and inure to the benefit of any successor or successors of the Company and any person or persons who shall, upon the Participant’s death, acquire any rights hereunder in accordance with this Agreement or the Plan.
(i)Governing Law. To the extent not preempted by federal law, this Agreement (including Schedule I) shall be construed in accordance with and governed by the laws of the State of Delaware, without regard to any conflicts or choice of law, rule or principle that might otherwise refer the interpretation of the award to the substantive law of another jurisdiction.
(j)Compliance with Section 409A of the Internal Revenue Code. The Options are intended to comply with Section 409A of the Code (“Section 409A”) to the extent subject thereto, and shall be interpreted in accordance with Section 409A and treasury regulations and other interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued after the Date of Grant.  The Company reserves the right to modify the terms of this Agreement, including, without limitation, the payment provisions applicable to the Options, to the extent necessary or advisable to comply with Section 409A and reserves the right to make any changes to the Options so that the Options do not become deferred compensation under Section 409A.
Notwithstanding any provision of the Plan or this Agreement to the contrary, in no event shall the Company or an Affiliate, including the Employer, be liable to the Participant on account of failure of the Options to (i) qualify for favorable U.S. or foreign tax treatment or (ii) avoid adverse tax treatment under U.S. or foreign law, including, without limitation, under Section 409A.
     6
    

EXHIBIT 10.1

Schedule I
1.Mutual Agreement. The Participant acknowledges the importance to the Company and its Affiliates of protecting their Confidential Information (as defined below) and other legitimate business interests, including the valuable trade secrets and good will that they have developed or acquired. In consideration of the Participant’s continued employment with the Company or any of its Affiliates, including the Employer, the Award and other good and valuable consideration, the receipt and sufficiency of which the Participant hereby acknowledges, the Participant agrees that the following restrictions on the Participant’s activities during and after employment are reasonable and necessary to protect the legitimate interests of the Company and its Affiliates.
2.Confidentiality.
(a)The Participant agrees that all Confidential Information (as defined below) which the Participant has created or will create or to which the Participant has access as a result of the Participant’s employment and other associations with the Company or any of its Affiliates is and will remain the sole and exclusive property of the Company and its Affiliates. The Participant agrees that, except as required for the proper performance of the Participant's regular duties for the Company and its Affiliates, as expressly authorized in writing in advance by a duly authorized officer of the Company, or as required by applicable law, the Participant will never, directly or indirectly, use or disclose any Confidential Information. The Participant understands and agrees that this restriction will continue to apply after the Participant’s Separation from Service for any reason. For the avoidance of doubt, nothing in this Schedule I limits, restricts or in any other way affects the Participant’s communicating with any governmental agency or entity, or communicating with any official or staff person of a governmental agency or entity, concerning matters relevant to the governmental agency or entity. The Participant will not be held criminally or civilly liable under any federal or state trade secret law for disclosing a trade secret (a) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, solely for the purpose of reporting or investigating a suspected violation of law, or (b) in a complaint or other document filed under seal in a lawsuit or other proceeding. Notwithstanding this immunity from liability, the Participant may be held liable if the Participant unlawfully access trade secrets by unauthorized means.
(b)The Participant agrees that all documents, records and files, in any media of whatever kind and description, relating to the business, present or otherwise, of the Company or any of its Affiliates, and any copies, in whole or in part, thereof (the “Documents”), whether or not prepared by the Participant, will be the sole and exclusive property of the Company and its Affiliates. The Participant agrees to safeguard all Documents and to surrender to the Company or its relevant Affiliate (or destroy, at the Company’s direction), at the time of the Participant’s Separation from Service or at such earlier time or times as an authorized officer of the Company may specify, all Documents then in the Participant’s possession or control. The Participant also agrees to disclose to the Company, at the time of the 
    

Participant’s Separation from Service or at such earlier time or times as an authorized officer of the Company may specify, all passwords necessary or desirable to obtain access to, or that would assist in obtaining access to, any information which the Participant has password-protected on any computer equipment, network or system of the Company or any of its Affiliates.
3.Assignment of Intellectual Property Rights. The Participant agrees to promptly and fully disclose all Intellectual Property (as defined below) to the Company. The Participant hereby assigns and agrees to assign to the Company (or as otherwise directed by the Company) the Participant’s full right, title and interest in and to all Intellectual Property. The Participant agrees to execute any and all applications for domestic and foreign patents, copyrights or other proprietary rights and to do such other acts (including the execution and delivery of instruments of further assurance or confirmation) requested by the Company to assign the Intellectual Property to the Company (or as otherwise directed by the Company) and to permit the Company to enforce any patents, copyrights, trademarks, designs or other proprietary rights to the Intellectual Property. The Participant will not charge the Company for time spent in complying with these obligations (a) as long as the Participant is employed by the Company or any of its Affiliates, and (b) following the Participant’s Separation from Service, provided such post-termination compliance does not require a significant amount of the Participant’s time. All copyrightable works that the Participant creates during employment with the Company will be considered "work made for hire" and will, upon creation, be owned exclusively by the Company.
4.Restricted Activities.
(a)While the Participant is employed by the Company or any of its Affiliates and during the twelve (12) month period immediately following the date of the Participant’s Separation from Service (the employment and post-employment periods, in the aggregate, the “Restricted Period”), the Participant agrees to not, directly or indirectly, whether as owner, partner, investor, consultant, agent, employee, co-venturer or otherwise, in any capacity similar or related to the capacity in which the Participant has been employed by the Company or any of its Affiliates, compete with the Company or any of its Affiliates (A) in any geographic area in which the Company or any of its Affiliates does business during the Participant’s employment or (B) within twenty five (25) miles of any location where the Company or any of its Affiliates has one or more clients or customers during the Participant’s employment or, with respect to the portion of the Restricted Period that follows the Participant’s Separation from Service, at the time of such termination (the “Restricted Area”). Specifically, but without limiting the foregoing, the Participant agrees not to work or provide services, in any capacity similar or related to the capacity in which the Participant has been employed by the Company or any of its Affiliates, anywhere in the Restricted Area, whether as an employee, independent contractor or otherwise, whether with or without compensation, to any Person that is engaged, in whole or in part, in the Business (as defined below) including, but not limited to, Matrix Medical Network, naviHealth, Archway Health, Change Healthcare, Aver, Employers 
     2
    

Direct Healthcare, Carrum, Pacific Business Group on Health, Cedargate, Optum, PatientPing, UniteUs, Trizetto, Bridge Health and SurgeryPlus.  
(b)During the Restricted Period, the Participant agrees to not, directly or indirectly, (a) solicit or encourage any customer, vendor, supplier or other business partner of the Company or any of its Affiliates to terminate or diminish its relationship with any of them; or (b) seek to persuade any such customer, vendor, supplier or other business partner, or any prospective customer, vendor, supplier or other business partner of the Company or any of its Affiliates, to conduct with anyone else any business or activity which such customer, vendor, supplier or other business partner conducts, or such prospective customer, vendor, supplier or other business partner could conduct, with the Company or any of its Affiliates; provided, however, that these restrictions will apply (y) only with respect to those Persons who are or have been a business partner of the Company or any of its Affiliates at any time within the twelve (12)-month period immediately preceding the activity restricted by this Section 4(b) or whose business has been solicited on behalf of the Company or any of the Affiliates by any of their officers, employees or agents within such twelve (12)-month period, other than by form letter, blanket mailing or published advertisement, and (z) only if the Participant has performed work for such Person during the Participant’s employment or otherwise had material contact with such Person during the Participant’s employment or other associations with the Company or any of its Affiliates, or has had access to Confidential Information which would assist in the Participant's solicitation of such Person.
(c)During the Restricted Period, the Participant agrees to not, and to not assist any other Person to, directly or indirectly, (a) hire or engage, or solicit for hiring or engagement, any employee of the Company or any of its Affiliates or seek to persuade any such employee to discontinue employment or (b) solicit or encourage any independent contractor providing services to the Company or any of its Affiliates to terminate or diminish its relationship with any of them. For purposes of this Agreement, an “employee” or an “independent contractor” of the Company or any of its Affiliates is any Person who was such at any time within the twelve (12)-month period immediately preceding the activity restricted by this Section 4(c).
5.Nondisparagement. Subject to the third to last sentence of Section 2(a) of this Schedule I, in order to protect the goodwill of the Company and any of its Affiliates, to the fullest extent permitted by law, both during and after the Restricted Period, the Participant will not publicly criticize, denigrate, or otherwise disparage any of the Company, its Affiliates, and each such entity’s employees, officers, directors, consultants, other service providers, products, processes, policies, practices, standards of business conduct, or areas or techniques of research, manufacturing, or marketing. The Board agrees not to (and shall instruct the Company’s executive officers not to), publicly criticize, denigrate, or otherwise disparage the Participant in any manner that is likely to be harmful to the Participant’s business reputation. Nothing in this Section 5 shall prevent the Participant, 
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the Company or any member of the Board from cooperating in any governmental proceeding or from providing truthful testimony pursuant to a legally-issued subpoena.
6.Enforcement of Covenants. The Participant gives the Company assurance that the Participant has carefully read and considered all of the restraints hereunder, has not relied on any agreements or representations, express or implied, that are not set forth expressly in this Agreement, and has, by signing this Agreement, agreed to the terms and conditions of this Schedule I knowingly and voluntarily. The Participant agrees that these restraints are necessary for the reasonable and proper protection of the Company and its Affiliates, and are reasonable in respect to subject matter, length of time and geographic area. The Participant further agrees that, were the Participant to breach any of the covenants contained herein, the damage to the Company and its Affiliates would be irreparable. The Participant therefore agrees that the Company, in addition to any other remedies available to it, will be entitled to preliminary and permanent injunctive relief against any breach or threatened breach by the Participant of any such covenants, without having to post bond. So that the Company may enjoy the full benefit of the covenants contained in Section 4 above, the Participant agrees that the Restricted Period will be tolled, and will not run, during the period of any breach by the Participant of such covenants. In the event that any provision of this Schedule I is determined by any court of competent jurisdiction to be unenforceable by reason of its being extended over too great a time, too large a geographic area or too great a range of activities, that provision will be deemed to be modified to permit its enforcement to the maximum extent permitted by law. The Participant agrees that each of the Company’s Affiliates will have the right to enforce the Participant’s obligations to that Affiliate under this Schedule I. No claimed breach of this Schedule I or other violation of law attributed to the Company or any of its Affiliates, or change in the nature or scope of the Participant’s employment or other relationship with the Company or any of its Affiliates, will operate to excuse the Participant from the performance of the Participant’s obligations under this Schedule I.
7.Definitions. For purposes of this Schedule I, the following definitions apply:
(a)“Business” means any business that (i) designs, implements and/or administers bundled payment programs for episodes of healthcare; (ii) offers software specifically supporting bundled payment programs, ACOs and/or other forms of capitated payment for healthcare; (iii) provides home health assessments or care management services to patients in the home; (iv) provides complex care management services in skilled nursing facilities or other post-acute facilities; or (v) any other business in which the Company or any of its Affiliates is engaged in during the Participant's employment, or, with respect to the portion of the Restricted Period that follows the Participant’s Separation from Service, at the time of such termination.
(b)“Confidential Information” means any and all information of the Company and its Affiliates that is not generally available to the public. Confidential Information also includes any information received by the Company or any of its Affiliates from any Person with any understanding, express or implied, that it will not be disclosed. Confidential Information does not include (i) information that enters 
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the public domain, other than through the Participant’s breach of the Participant’s obligations hereunder or (ii) information that the Participant receives on a non-confidential basis from a third-party source outside the Company or any of its Affiliates, provided that such source is not prohibited from disclosing such information pursuant to any legal, fiduciary or contractual obligation or otherwise.
(c)“Intellectual Property” means inventions, discoveries, developments, methods, processes, product formulations, compositions, works, concepts and ideas (whether or not patentable or copyrightable or constituting trade secrets) conceived, made, created, developed or reduced to practice by the Participant (whether alone or with others, whether or not during normal business hours or on or off Company premises) during the Participant’s employment that relate, or otherwise could be used with respect, either to the business of the Company or any of its Affiliates or to any actively planned activity of the Company or any of its Affiliates or that result from any work performed by the Participant for the Company or any of its Affiliates or that make use of Confidential Information or any of the equipment or facilities of the Company or any of its Affiliates.
8.Entire Agreement; Severability; Modification. This Schedule I sets forth the entire agreement between the Participant and the Company, and supersedes all prior and contemporaneous communications, agreements and understandings, written or oral, with respect to the subject matter hereof; provided, however, that this Agreement shall not supersede any effective assignment of any invention or other intellectual property to the Company or any of its Affiliates and shall not constitute a waiver by the Company or any of its Affiliates of any right that any of them now has or may now have under any agreement imposing obligations on the Participant with respect to confidentiality, noncompetition, non-solicitation of employees, independent contractors or like obligations. The provisions of this Schedule I are severable. This Schedule I may not be modified or amended, and no breach will be deemed to be waived, unless agreed to in writing by the Participant and an expressly authorized officer of the Company. Provisions of this Schedule I will survive any termination if so provided in this Schedule I or if necessary or desirable to accomplish the purpose of other surviving provisions.
9.Assignment. The Company may assign its rights and obligations under this Schedule I without the Participant’s consent to any of its Affiliates or to any Person with whom the Company will hereafter effect a reorganization, consolidate or merge, or to whom the Company will hereafter transfer all or substantially all of its properties or assets. This Schedule I will inure to the benefit of and be binding upon the Participant and the Company, and each of their respective successors, executors, administrators, heirs and permitted assigns.

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