Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangement of Certain Officers
Employment Agreement with the Chief Scientific Officer
On April 17, 2022, Innovation1 Biotech Inc. (the "Company") entered into an
employment agreement (the "Employment Agreement") with Dr. Andrew Salzman, its
Chief Scientific Officer.
Pursuant to the Employment Agreement, Dr. Salzman was retained for a one-year
period as our Chief Scientific Officer reporting to our Chief Executive Officer.
Dr. Salzman' base salary is $120,000. Dr. Salzman shall also be eligible to earn
an annual cash performance bonus of up to 50% of his then-current annual base
salary as determined by our Chief Executive Officer based on the achievement of
performance goals and objectives established by the Company. The Employment
Agreement also contains standard confidentiality and non-competition covenants.
Pursuant to the Employment Agreement, in the event Dr. Salzman' employment is
terminated due to the expiration of the term of the Employment Agreement, his
death or disability (as defined in the Employment Agreement), by the Company for
Cause (as defined in the Employment Agreement) or by Dr. Salzman without Good
Reason (as defined in the Employment Agreement), Dr. Salzman will be entitled to
receive: (i) any accrued but unpaid base salary for services rendered to the
date of termination, (ii) any earned but unpaid performance bonus, and (iii)
reimbursement of any accrued but unpaid expenses required to be reimbursed under
the Employment Agreement.
Pursuant to the Employment Agreement, in the event Dr. Salzman' employment is
terminated by the Company without Cause or by Dr. Salzman with Good Reason, Dr.
Salzman will be entitled to receive: (i) any accrued but unpaid base salary for
services rendered to the date of termination, (ii) any performance bonus deemed
by the Company to have been earned, and (iii) reimbursement of any accrued but
unpaid expenses required to be reimbursed under the Employment Agreement. Such
payments are contingent upon the Company and Dr. Salzman executing a mutual
release.
Pursuant to the Employment Agreement in the event of a Change in Control (as
defined in the Employment Agreement), if Dr. Salzman' employment is terminated
without Cause by the Company or its successor or by Dr. Salzman with Good Reason
following the Change in Control, Dr. Salzman will be entitled to receive the
following: (i) the remaining unpaid base salary for the greater of the remaining
portion of the then-current employment term or six months; and (ii) the
remaining earned but unpaid performance bonus during the remaining portion of
the then-current employment term;
The foregoing is a summary of the material terms of the Employment Agreement.
The summary does not purport to be complete and is qualified in its entirety by
reference to Employment Agreement which is filed as Exhibit 10.1.
2
Master Services Agreement with Salzman Group
On April 17, 2022, the Company entered into a Master Services Agreement
(the "MSA") with Salzman Group Ltd., an affiliate of Dr. Salzman
("SGL"). Pursuant to the MSA, SGL (and one or more of its affiliated entities)
may perform research and development services for the Company as agreed to and
defined by the Company and SGL. The MSA has a term of one year and is terminable
by the Company upon 30 days prior written notice. Either party may terminate the
MSA for Cause (as defined in the MSA). The MSA also contains standard
confidentiality and indemnification covenants.
Also, on April 17, 2022, pursuant to the MSA, the Company entered into a
Consulting Agreement (the "Consulting Agreement") with Herring Creek
Pharmaceuticals, Inc., an affiliate of SGL ("Herring"). Pursuant to the
Consulting Agreement, the Company agreed to pay Herring $7,500 per month to
provide the Company with scientific and strategic consulting services in support
of the Company's development programs and the financing of such programs. The
Consulting Agreement is subject to the terms of the MSA and is terminable by the
Company upon 30 days prior written notice.
The foregoing is a summary of the material terms of the MSA and Consulting
Agreement. The summary does not purport to be complete and is qualified in its
entirety by reference to the MSA and Consulting Agreement which are filed as
Exhibit 10.2 and Exhibit 10.3, respectively.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
10.1 Employment Agreement dated April 14, 2022, by and between Innovation1
Biotech Inc. and Dr. Andrew Salzman.
10.2 Master Services Agreement dated April 7, 2022, by and between Salzman
Group Ltd. and Innovation1 Biotech Inc.
10.3 Consulting Agreement dated April 15, 2022, by and between Herring
Creek Pharmaceuticals, Inc. (as affiliate of Salzman Group) and
Innovation1 Biotech Inc.
104 Cover Page Interactive Data File (embedded within the Inline XBRL
Document).
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