SEC Contract Filing

Filing Date: 2023-05-30

Document Content:
<DOCUMENT>
<TYPE>EX-10.21
<SEQUENCE>18
<FILENAME>ea179431ex10-21_smartfor.htm
<DESCRIPTION>EXECUTIVE DEFERRED COMPENSATION CONVERSION AGREEMENT AMONG SMART FOR LIFE, INC., AND ALFONSO J. CERVANTES, JR. DATED MAY 26, 2023
<TEXT>
<HTML>
<HEAD>
 <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0; text-align: right"><B>Exhibit 10.21</B></P>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>DEFERRED COMPENSATION
CONVERSION AGREEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>THIS DEFERRED COMPENSATION
CONVERSION AGREEMENT </B>(this &ldquo;<B><I>Agreement</I></B>&rdquo;) is made and entered into as of May 26, 2023 (the &ldquo;<B><I>Effective
Date</I></B>&rdquo;), between Smart for Life, Inc., a Nevada corporation (the &ldquo;<B><I>Company</I></B>&rdquo;), and Alfonso J. Cervantes,
Jr. (the &ldquo;<B><I>Executive</I></B>&rdquo; and, together with the Company, the &ldquo;<B><I>Parties</I></B>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>RECITALS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A.&nbsp;The
Executive is the Executive Chairman of the Company and has accrued deferred compensation in such capacity as of the date hereof in the
amount of $827,484 (the &ldquo;<B><I>Deferred Compensation</I></B>&rdquo;), consisting of $347,484 in accrued but unpaid salary and $480,000
in accrued but unpaid bonus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">B.&nbsp;The
Company desires to reduce its debt load in order to improve its balance sheet, increase its shareholders equity and to enhance its ability
to secure additional financing and to maintain its listing on the Nasdaq Capital Market and the Executive understands that it is in the
Company&rsquo;s best interests for the Company to cancel the Deferred Compensation in exchange for equity in the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">C.&nbsp;The
Company desires to cancel the Deferred Compensation (the &ldquo;<B><I>Canceled Debt</I></B>&rdquo;), in exchange for 3,711 shares (the
&ldquo;<B><I>Shares</I></B>&rdquo;) of the Company&rsquo;s series B preferred stock, par value $0.0001 per share, having the rights, preferences
and privileges set forth in the form of Certificate of Designation attached hereto as <B><U>Exhibit A</U></B>&nbsp;(the &ldquo;<B><I>Preferred
Stock</I></B>&rdquo;). The number of the Shares is equal to the Canceled Debt divided by the stated value per share of Preferred Stock
of $223.00, and the conversion price is $2.23. Therefore, the ratio of Shares to number of shares of common stock into which the Shares
will convert is 1-for-100.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>AGREEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>NOW THEREFORE</B>, in consideration
of the mutual covenants and agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the undersigned do hereby agree as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.&nbsp;The
Executive hereby agrees and acknowledges that, after the cancellation of the Deferred Compensation as set forth herein, such Deferred
Compensation shall no longer be outstanding, and the Executive shall have no further rights with respect to payment of the Deferred Compensation.
In consideration for the cancellation of the Deferred Compensation and the Cancelled Debt, the Company shall promptly issue to the Executive
the Shares, but in no event more than two (2) business days after the date hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">2.&nbsp;There
is no restriction affecting the ability of the Executive to forego the Deferred Compensation and accept the Shares in lieu thereof. Neither
the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the performance of this Agreement
in compliance with its terms and conditions by the Executive will conflict with or result in any violation of any agreement, judgment,
decree, order, statute or regulation applicable to the Executive, or any breach of any agreement to which the Executive is a party, or
constitute a default thereunder, or result in the creation of any claim of any kind or nature on, or with respect to the Executive or
the Executive&rsquo;s assets, including, without limitation, The Executive&rsquo;s equity i