SEC Filing Document

Company: Synergy CHC Corp.
Ticker: SNYR
CIK: 1562733
Filing Type: S-1/A
Document Type: EX-10.5
Date Filed: 2024-07-29
Accession Number: 0001013762-24-002165
Exchange: Nasdaq
SIC Code: 2833
SIC Description: Medicinal Chemicals & Botanical Products
URL: https://www.sec.gov/Archives/edgar/data/1562733/000101376224002165/ea020832402ex10-5_synergy.htm

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used, upon such expiration, the Company shall deliver to the Participant, or his beneficiary, without charge, the share certificate evidencing the shares of Restricted Stock that have not then been forfeited and with respect to which the Restricted Period has expired (rounded down to the nearest full share). Dividends, if any, that may have been withheld by the Committee and attributable to any particular share of Restricted Stock shall be distributed to the Committee and attributable to any particular share of Restricted Stock shall be distributed to the Participant in cash or, at the sole discretion of the Committee, in Common Stock having a fair market value equal to the amount of such dividends, upon the release of restrictions on such share and, if such share is forfeited, the Participant shall have no right to such dividends (except as otherwise set forth by the Committee in the applicable Award agreement).

(ii) Unless otherwise provided
by the Committee in an Award agreement, upon the expiration of the Restricted Period with respect to any outstanding Restricted Stock
Units, the Company shall deliver to the Participant, or his beneficiary, without charge, one (1) Common Share for each such outstanding
Restricted Stock Unit; provided, however, that the Committee may, in its sole discretion, elect to (i) pay cash or part
cash and part Common Share in lieu of delivering only Common Stock in respect of such Restricted Stock Units or (ii) defer the delivery
of Common Stock (or cash or part Common Stock and part cash, as the case may be) beyond the expiration of the Restricted Period if such
delivery would result in a violation of applicable law until such time as is no longer the case. If a cash payment is made in lieu of
delivering Common Stock, the amount of such payment shall be equal to the fair market value of the Common Stock as of the date on which
the Restricted Period lapsed with respect to such Restricted Stock Units, less an amount equal to any taxes required to be withheld or
paid.

10. Stock Bonus Awards.
The Committee may issue unrestricted Common Stock, or other Awards denominated in Common Stock, under the Plan to Eligible Persons, either
alone or in tandem with other awards, in such amounts as the Committee shall from time to time in its sole discretion determine. Each
Stock Bonus Award granted under the Plan shall be evidenced by an Award agreement (whether in paper or electronic medium (including email
or the posting on a web site maintained by the Company or a third party under contract with the Company)). Each Stock Bonus Award so granted
shall be subject to such conditions not inconsistent with the Plan as may be reflected in the applicable Award agreement.

11. Performance Compensation
Awards.

(a) Generally. The Committee
shall have the authority, at the time of grant of any Award described in Sections 7 through 10 of the Plan, to designate
such Award as a Performance Compensation Award. The Committee shall have the authority to make an award of a cash bonus to any Participant
and designate such Award as a Performance Compensation Award. Unless otherwise determined by the Committee, all Performance Compensation
Awards shall be evidenced by an Award agreement.

(b) Discretion of Committee
with Respect to Performance Compensation Awards. The Committee shall have the discretion to establish the terms, conditions and restrictions
of any Performance Compensation Award. With regard to a particular Performance Period, the Committee shall have sole discretion to select
the length of such Performance Period, the type(s) of Performance Compensation Awards to be issued, the Performance Criteria that will
be used to establish the Performance Goal (s), the kind(s) and/or level(s) of the Performance Goals(s) that is (are) to apply and the
Performance Formula.

(c) Performance Criteria.
The Committee may establish Performance Criteria that will be used to establish the Performance Goal(s) for Performance Compensation Awards
which may be based on the attainment of specific levels of performance of the Company (and/or one or more Affiliates, divisions, business
segments or operational units, or any combination of the foregoing) and may include, without limitation, any of the following: (i) net
earnings or net income (before or after taxes); (ii) basic or diluted earnings per share (before or after taxes); (iii) revenue or revenue
growth (measured on a net or gross basis); (iv) gross profit or gross profit growth; (v) operating profit (before or after taxes); (vi)
return measures (including, but not limited to, return on assets, capital, invested capital, equity, or sales); (vii) cash flow (including,
but not limited to, operating cash flow, free cash flow, net cash provided by operations and cash flow return on capital); (viii) financing
and other capital raising transactions (including, but not limited to, sales of the Company’s equity or debt securities); (ix) earnings
before or after taxes, interest, depreciation and/or amortization; (x) gross or operating margins; (xi) productivity ratios; (xii) share
price (including, but not limited to, growth measures and total shareholder return); (xiii) expense targets; (xiv) margins; (xv) productivity
and operating efficiencies; (xvi) customer satisfaction; (xvii) customer growth; (xviii) working capital targets; (xix) measures of economic
value added; (xx) inventory control; (xxi) enterprise value; (xxii) sales; (xxiii) debt levels and net debt; (xxiv) combined ratio; (xxv)
timely launch of new facilities; (xxvi) client retention; (xxvii) employee retention; (xxviii) timely completion of rollouts of new products
and services; (xxix) cost targets; (xxx) reductions and savings; (xxxi) productivity and efficiencies; (xxxii) strategic partnerships
or transactions; and (xxxiii) personal targets, goals or completion of projects. Any one (1) or more of the Performance Criteria may be
used on an absolute or relative basis to measure the performance of the Company and/or one or more Affiliates as a whole or any business
unit(s) of the Company and/or one or more Affiliates or any combination thereof, as the Committee may deem appropriate, or any of the
above Performance Criteria may be compared to the performance of a selected group of comparison or peer companies, or a published or special
index that the Committee, in its sole discretion, deems appropriate, or as compared to various stock market indices. The Committee also
has the authority to provide for accelerated vesting of any Award based on the achievement of Performance Goals pursuant to the Performance
Criteria specified in this paragraph. Any Performance Criteria that are financial metrics, may be determined in accordance with United
States Generally Accepted Accounting Principles (“GAAP”) or may be adjusted when established to include or exclude
any items otherwise includable or excludable under GAAP.

(d) Modification of Performance
Goal(s). The Committee is authorized at any time to adjust or modify the calculation of a Performance Goal for such Performance Period,
based on and in order to appropriately reflect any specified circumstance or event that occurs during a Performance Period, including
but not limited to the following: (i) asset write-downs; (ii) litigation or claim judgments or settlements; (iii) the effect of changes
in tax laws, accounting principles, or other laws or regulatory rules affecting reported results; (iv) any reorganization and restructuring
programs; (v) unusual and/or infrequently occurring items as described in Accounting Principles Board Opinion No. 30 (or any successor
pronouncement thereto) and/or in management’s discussion and analysis of financial condition and results of operations appearing
in the Company’s annual report to shareholders for the applicable year; (vi) acquisitions or divestitures; (vii) discontinued operations;
(viii) any other specific unusual or infrequently occurring or non-recurring events, or objectively determinable category thereof; (ix)
foreign exchange gains and losses; and (x) a change in the Company’s fiscal year.

(e) Terms and Conditions
to Receipt of Payment. Unless otherwise provided in the applicable Award agreement, a Participant must be employed by the Company
on the last day of a Performance Period to be eligible for payment in respect of a Performance Compensation Award for such Performance
Period. A Participant shall be eligible to receive payment in respect of a Performance Compensation Award only to the extent that: (A)
the Performance Goals for such period are achieved; and (B) all or some of the portion of such Participant’s Performance Compensation
Award has been earned for the Performance Period based on the application of the Performance Formula to such achieved Performance Goals.
Following the completion of a Performance Period, the Committee shall determine whether, and to what extent, the Performance Goals for
the Performance Period have been achieved and, if so, calculate the amount of the Performance Compensation Awards earned for the period
based upon the Performance Formula. The Committee shall then determine the amount of each Participant’s Performance Compensation
Award actually payable for the Performance Period.

(f) Timing of Award Payments.
Except as provided in an Award agreement, Performance Compensation Awards granted for a Performance Period shall be paid to Participants
as soon as administratively practicable following the Committee’s determination in accordance with Section 11(e).