<SEC-DOCUMENT>0001654954-20-008275.txt : 20200731
<SEC-HEADER>0001654954-20-008275.hdr.sgml : 20200731
<ACCEPTANCE-DATETIME>20200731171537
ACCESSION NUMBER:		0001654954-20-008275
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20200730
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20200731
DATE AS OF CHANGE:		20200731

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			WRAP TECHNOLOGIES, INC.
		CENTRAL INDEX KEY:			0001702924
		STANDARD INDUSTRIAL CLASSIFICATION:	ORDNANCE & ACCESSORIES, (NO VEHICLES/GUIDED MISSILES) [3480]
		IRS NUMBER:				980551945
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-38750
		FILM NUMBER:		201066883

	BUSINESS ADDRESS:	
		STREET 1:		1817 W 4TH STREET
		CITY:			TEMPE
		STATE:			AZ
		ZIP:			85281
		BUSINESS PHONE:		800-583-2652

	MAIL ADDRESS:	
		STREET 1:		1817 W 4TH STREET
		CITY:			TEMPE
		STATE:			AZ
		ZIP:			85281
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>wrtc8k_july302020.htm
<DESCRIPTION>CURRENT REPORT
<TEXT>
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<title>wrtc8k_july302020</title>
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UNITED STATES</font></div>
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SECURITIES AND EXCHANGE COMMISSION</font></div>
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Washington, DC 20549</font></div>
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FORM 8-K</font></div>
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CURRENT REPORT</font></div>
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Pursuant to Section&#xA0;13 or 15(d) of the</font></div>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Securities Exchange Act of 1934</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">Date of
Report (Date of earliest event reported): <font style="text-decoration: underline">July 30,
2020</font></font><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 24px">
WRAP TECHNOLOGIES, INC.</font></div>
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(Exact name of Registrant as specified in its Charter)</font></div>
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Delaware</font></font></font></div>
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<font style="text-decoration: underline"><font style="text-decoration: underline"><font style="font-family: Times New Roman; font-size: 13px; text-decoration: underline;">
000-55838</font></font></font></div>
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<font style="text-decoration: underline"><font style="text-decoration: underline"><font style="font-family: Times New Roman; font-size: 13px; text-decoration: underline;">
98-0551945</font></font></font></div>
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<font style="font-family: Times New Roman; font-size: 13px">(State
or other jurisdiction</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">of
incorporation)</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">(Commission
File No.)</font></div>
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Employer</font></div>
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<font style="text-decoration: underline"><font style="font-family: Times New Roman; font-size: 13px">1817 W
4<font style="font-size: 70%; vertical-align: top; text-decoration: underline;">th</font>
Street, Tempe, Arizona 85281</font></font></div>
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of principal executive offices)</font></div>
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<font style="text-decoration: underline"><font style="font-family: Times New Roman; font-size: 13px">(800)
583-2652</font></font></div>
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<font style="font-family: Times New Roman; font-size: 13px">(Registrant&#x2019;s
Telephone Number)</font></div>
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Applicable</font></font></div>
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<font style="font-family: Times New Roman; font-size: 13px">(Former
name or address, if changed since last report)</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">Check
the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant
under any of the following provisions (see General Instruction A.2.
below):</font></div>
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<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Written
communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)</font></div>
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<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Soliciting material
pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)</font></div>
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<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR 240.14d-2(b))</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
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<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR 240.13e-4(c))</font></div>
</div>
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<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">
Indicate by check mark whether the registrant is an emerging growth
company as defined in Rule 405 of the Securities Act of 1933 (17
CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934
(17 CFR 240.12b-2)&#xA0;</font><font style="color: #000000; font-family: Times New Roman">&#x2610;</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">
If an emerging growth company, indicate by check mark if the
registrant has elected not to use the extended transition period
for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange
Act&#xA0;</font><font style="color: #000000; font-family: Times New Roman">&#x2610;</font></font></div>
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<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-weight: bold; font-family: Times New Roman; font-size: 13px">
Item 1.01 Entry into a Material Definitive Agreement.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">See
Item 5.02.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="color: #000000; font-weight: bold; font-family: Times New Roman; font-size: 13px">
<font style="color: #000000">Item 5.02</font> Departure of
Directors or Certain Officers; Election of Directors; Appointment
of Certain Officers; Compensatory Arrangements of Certain
Officers.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">On July 30, 2020, Wrap Technologies, Inc. (the
&#x201C;</font><font style="font-style: italic; color: #000000">Company</font><font style="color: #000000">&#x201D;) announced the appointment of Marc Thomas
as the Company&#x2019;s Chief Executive Officer. He succeeds David
Norris, who will remain on the Board of Directors of the Company
(the &#x201C;</font><font style="font-style: italic; color: #000000">Board</font><font style="color: #000000">&#x201D;) subsequent to the transition of Chief
Executive Officers.</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">Prior
to joining the Company, Mr. Thomas, age 58, served as the President
and CEO of Thorium Capital Ventures &amp; Consulting, LLC, and has
over twenty-five years of crisis management, and operations
experience in the manufacturing, supply chain management, consumer
products, mergers &amp; acquisitions, government, and
transportation industries. Mr. Thomas has served as the former
President &amp; CEO of GE Aviation Materials, LP and has held
numerous senior leadership and board positions within GE. Prior to
joining GE, Mr. Thomas was a consultant with McKinsey &amp; Company
focusing on the energy, construction, consumer products, and
telecommunication industries. Additionally, Marc spent over ten
years in the U.S. Army serving first as a Special Forces
Operational Detachment Commander in Africa and the Middle East, and
later as an Assistant Professor of Engineering Management at the
United States Military Academy, West Point, NY. Mr. Thomas holds a
Juris Doctor in Corporate and Intellectual Property Law from the
University of Texas School of Law in Austin, a Master of Business
Administration in International Finance and Management from
Columbia University, a Master of Science in Industrial Engineering
and Operations Research from Columbia University, and a Bachelor of
Science in Civil and Environmental Engineering from Stanford
University.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000; background-color: #FFFFFF">The Company entered
into an employment agreement with Mr. Thomas (the
&#x201C;</font><font style="font-style: italic; color: #000000; background-color: #FFFFFF">Agreement</font><font style="color: #000000; background-color: #FFFFFF">&#x201D;)
dated July 30, 2020 (the &#x201C;</font><font style="font-style: italic; color: #000000; background-color: #FFFFFF">Effective
Date</font><font style="color: #000000; background-color: #FFFFFF">&#x201D;). Pursuant to
the Agreement: (i) Mr. Thomas shall be entitled to receive an
annual base salary of $400,000 (the &#x201C;Base Salary&#x201D;) as
compensation for his services as the Company&#x2019;s Chief
Executive Officer; (ii) the Company issued Mr. Thomas options
(&#x201C;</font><font style="font-style: italic; color: #000000; background-color: #FFFFFF">Options</font><font style="color: #000000; background-color: #FFFFFF">&#x201D;)
to purchase 350,000 shares of the Company&#x2019;s common stock, par
value $0.0001 per share (&#x201C;</font><font style="font-style: italic; color: #000000; background-color: #FFFFFF">Common
Stock</font><font style="color: #000000; background-color: #FFFFFF">&#x201D;), pursuant to
the Company&#x2019;s 2017 Stock Incentive Plan (the
&#x201C;</font><font style="font-style: italic; color: #000000; background-color: #FFFFFF">Plan</font><font style="color: #000000; background-color: #FFFFFF">&#x201D;),
which Options have a term of ten years, an exercise price equal to
the Fair Market Value of a share of Company Common Stock on the
date of grant of such Options, with 1/4 of the Options vesting on
the first annual anniversary of the Effective Date and the
remainder vesting in equal monthly installments over a thirty-six
month period; and (iii) following each calendar year of employment,
Mr. Thomas shall be eligible to receive an additional cash bonus of
100% of Mr. Thomas&#x2019;s base salary (the
&#x201C;</font><font style="font-style: italic; color: #000000; background-color: #FFFFFF">Annual
Milestone Bonus</font><font style="color: #000000; background-color: #FFFFFF">&#x201D;) based upon Mr.
Thomas&#x2019;s attainment of certain personal, financial, and/or
business milestones, to be established by the Board or Compensation
Committee, as defined in the Agreement, on an annual basis prior to
March 30 of the applicable calendar year.</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; background-color: #FFFFFF; font-family: Times New Roman; font-size: 13px">
The Agreement shall continue for a period of two years from the
Effective Date, unless terminated early or further extended by the
parties. The Company may terminate the Agreement at any time, with
or without Cause, as such term is defined the Agreement. If the
Agreement is terminated by the Company for Cause, Mr. Thomas will
be entitled to Termination Amounts, as defined in the Agreement. If
the Agreement is terminated by the Company without Cause, the
Company shall pay Mr. Thomas: (i) the Termination Amounts; (ii)
severance in the form of continuation of the Base Salary for the
greater of a period of twelve months following the termination date
or the remaining term, which amount shall be paid in twelve equal
monthly installments; (iii) payment of Mr. Thomas&#x2019;s premiums
to cover COBRA for a period of twelve months following the
termination date; (iv) a prorated annual bonus equal the target
Annual Milestone Bonus, if any, for the year of termination
multiplied by a fraction, the numerator of which shall be the
number of full and partial months Mr. Thomas worked for the
Company, and the denominator of which shall be twelve; and (v)
immediate accelerated vesting of any unvested outstanding stock
options.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000; background-color: #FFFFFF">The foregoing
description of the Agreement does not purport to be complete, and
is qualified in its entirety by reference to the same,</font>
<font style="color: #000000">a copy of which is attached to this
Current Report on Form 8-K as Exhibit 10.1, and is incorporated by
reference herein.</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">A
copy of the press release announcing the foregoing appointment is
attached to this Current Report on Form 8-K as Exhibit 99.1 and is
incorporated by reference herein.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Item 8.01. Other Events.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">See
Item 5.02.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Item 9.01 Financial Statements and Exhibits</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">See
Exhibit Index.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
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<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
SIGNATURES</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 36px">
<font style="font-family: Times New Roman; font-size: 13px">Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div>
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<tr>
<td style="vertical-align: middle; width: 44%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 5%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 4%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 47%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 44%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 5%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="2" style="vertical-align: top; width: 51%">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
WRAP TECHNOLOGIES, INC.</font></div>
</td>
</tr><tr>
<td style="vertical-align: middle; width: 44%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 5%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 4%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 47%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 44%">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Date:
July 31, 2020</font></div>
</td>
<td style="vertical-align: top; width: 5%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 4%">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">By:</font></div>
</td>
<td style="vertical-align: middle; width: 47%; border-bottom: 2px solid #000000">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;/s/
James A. Barnes</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 44%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 5%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 4%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 47%">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">James
A. Barnes</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 44%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 5%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 4%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 47%">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Chief
Financial Officer, Treasurer and Secretary</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 44%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 5%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 4%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 47%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Exhibit Index</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
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<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Exhibit No.</font></div>
</td>
<td style="vertical-align: bottom; width: 2%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
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<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Description</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 11%">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px"><a href="ex10-1.htm"><font style="font-family: Times New Roman; font-size: 13px">10.1</font></a></div>
</td>
<td style="vertical-align: bottom; width: 2%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 87%">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Employment
Agreement by and between Wrap Technologies, Inc., and Marc T.
Thomas, dated July 30, 2020</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 11%">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px"><a href="ex99-1.htm"><font style="font-family: Times New Roman; font-size: 13px">99.1</font></a></div>
</td>
<td style="vertical-align: bottom; width: 2%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 87%">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Press
Release, dated July 30, 2020</font></div>
</td>
</tr></table>
</div>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>ex10-1.htm
<DESCRIPTION>EMPLOYMENT AGREEMENT
<TEXT>
<html>
<head>
<!-- Document created using Blueprint(R) - powered by Issuer Direct - www.issuerdirect.com -->
<!-- Copyright 2020 Issuer Direct Corporation -->
<title>ex10-1</title>
</head>
<body style="font-family: Times New Roman; font-size: 13px;">
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</div>
</div>
<div style="text-align: right"><font style="font-family: Times New Roman; font-size: 13px;"><font style="font-family: Times New Roman; font-size: 16px;"><font style="font-weight: bold"><font style="font-size: 13px">Exhibit
10.1</font></font></font><br></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 2px; text-indent: 12px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">WRAP
TECHNOLOGIES, INC.</font><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 2px; text-indent: 12px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">&#xA0;EMPLOYMENT
AGREEMENT</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 4px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px">This
Employment Agreement<font style="font-weight: bold; font-size: 13px">&#xA0;</font>(this
<font style="font-weight: bold; font-style: italic">&#x201C;Agreement&#x201D;</font>)
is made and entered into on July 30, 2020, (the &#x201C;<font style="font-weight: bold; font-style: italic">Effective
Date</font>&#x201D;) by and between Wrap Technologies, Inc. (the
<font style="font-weight: bold; font-style: italic">&#x201C;Company&#x201D;</font>)
and Marc T. Thomas (<font style="font-weight: bold; font-style: italic">&#x201C;Executive&#x201D;</font>).
The Company and Executive are hereinafter collectively referred to
as the <font style="font-weight: bold; font-style: italic">&#x201C;Parties</font>,<font style="font-weight: bold; font-style: italic">&#x201D;</font>
and individually referred to as a <font style="font-weight: bold; font-style: italic">&#x201C;Party&#x201D;</font>.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 42px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">RECITALS</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; text-indent: 12px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">A.</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px">The
Company desires assurance of the association and services of
Executive in order to retain Executive&#x2019;s experience, skills,
abilities, background and knowledge, and is willing to engage
Executive&#x2019;s services on the terms and conditions set forth in
this Agreement.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; text-indent: 12px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">B.</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px">Executive
desires to be in the employ of the Company, and is willing to
accept such employment on the terms and conditions set forth in
this Agreement.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 42px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">AGREEMENT</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">In
consideration of the foregoing Recitals and the mutual promises and
covenants herein contained, and for other good and valuable
consideration, the Parties, intending to be legally bound, agree as
follows:</font></div>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">1.</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">E<font style="font-size: 13px">MPLOYMENT</font>.</font></div>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">1.1</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">Title.</font>
Effective as of the Effective Date, Executive&#x2019;s position
shall be Chief Executive Officer reporting to the Board of
Directors, subject to the terms and conditions set forth in this
Agreement.</font></div>
<div style="text-align: justify"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">1.2</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">Term.</font>
The term of this Agreement shall begin on the Effective Date and
shall continue for a period of two years or until it is terminated
pursuant to Section 4 herein (the <font style="font-weight: bold; font-style: italic">&#x201C;Term&#x201D;</font>).
The Term shall automatically be entended for an additional year
unless either Party gives notice to the other Party of their intent
to terminate this Agreement on or before sixty (60) days prior to
the expiration of the end of the Term.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px"><br>
</font></div>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">1.3</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">Duties.</font>
Executive shall have the customary powers, responsibilities and
authorities of Chief Executive Officer of corporations of the size,
type and nature of the Company, as it exists from time to time.
Unless otherwise directed by the Board, the Chairman of the Board
of Directors shall be the liason between the Executive and the
Board on all matters relating to the Executive&#x2019;s duties under
the terms of this Agreement.</font></div>
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<font style="font-family: Times New Roman; font-size: 10">&#xA0;</font>
<font style="font-family: Times New Roman; font-size: 13px"><br>
</font></div>
<div style="text-align: justify; margin-left: 12px; text-indent: 108px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">1.4</font><font id="tab2" style="letter-spacing: 12px;">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">Governing Agreement.</font> The employment
relationship between the Parties shall be governed by this
Agreement. <font style="background-color: rgb(255, 255, 255);">Upon
execution by both Parties, this Agreement is an offer of employment
that is contingent upon the completion of a background
investigation (including a credit check, criminal history check,
confirmation of prior employment, and confirmation of educational
background) satisfactory to the Company in its sole discretion and
the Executive providing legally required documentation of
eligibility to work in the United States
(&#x201C;</font><font style="font-weight: bold; font-style: italic;">Background
Check</font><font style="background-color: rgb(255, 255, 255);">&#x201D;). Following the
successful completion of the Background Check this Agreement shall
be a binding agreement of the parties in accordance with its
terms;</font> <font style="font-style: italic; background-color: rgb(255, 255, 255);">provided,
however</font><font style="background-color: rgb(255, 255, 255);">,
that, the Company may waive the requirement to obtain or complete a
Background Check at any time. The Executive agrees to execute all
documentations and take all action required in connection with the
completion of the Background Check. The Executive acknowledges that
he is not an employee of the Company until the Employee has
received notification from the Company that the Background Check
has been completed to the satisfaction of the Company in its sole
discretion.</font></font></div>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">2.</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">L<font style="font-size: 13px">OYALTY</font>;
N<font style="font-size: 13px">ONCOMPETITION</font>; N<font style="font-size: 13px">ONSOLICITATION</font>.</font></div>
</div>
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<font style="font-family: Times New Roman; font-size: 10">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">2.1</font>&#xA0;&#xA0;&#xA0;&#xA0; <font style="font-weight: bold">Loyalty</font>. During Executive&#x2019;s
employment by the Company, Executive shall devote substantially all
of his business time to the performance of Executive&#x2019;s duties
under this Agreement.</font></div>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">2.2</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">Agreement
not to Participate in Company&#x2019;s Competitors</font>. During
the Term, Executive agrees not to acquire, assume or participate
in, directly or indirectly, any position, investment or interest
known by Executive to be adverse or antagonistic to the Company,
its business, or prospects, financial or otherwise, or in any
company, person, or entity that is, directly or indirectly, in
competition with the business of the Company or any of its
Affiliates (as defined below). Ownership by Executive, in
professionally managed funds over which the Executive does not have
control or discretion in investment decisions, or as a passive
investment, of less than five percent (5%) of the outstanding
shares of capital stock of any corporation with one or more classes
of its capital stock listed on a national securities exchange or
publicly traded on a national securities exchange or in the
over-the-counter market shall not constitute a breach of this
Section. For purposes of this Agreement, <font style="font-weight: bold; font-style: italic">&#x201C;Affiliate,&#x201D;</font>
means, with respect to any specific entity, any other entity that,
directly or indirectly, through one or more intermediaries,
controls, is controlled by or is under common control with such
specified entity.</font></div>
<br>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">2.3</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">Covenant
not to Compete</font>. During the Term and for a period of three
(3) years thereafter (the &#x201C;<font style="font-weight: bold; font-style: italic">Restricted
Period</font>&#x201D;), Executive shall not engage in competition
with the Company and/or any of its Affiliates, either directly or
indirectly, in any manner or capacity, as adviser, principal,
agent, affiliate, promoter, partner, officer, director, employee,
stockholder, owner, co-owner, consultant, or member of any
association or otherwise (a &#x201C;<font style="font-weight: bold; font-style: italic">Competitive
Entity</font>&#x201D;), except with the prior written consent of the
Board.</font></div>
<div style="text-align: justify"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; text-indent: 108px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">2.4</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">Nonsolicitation.</font>&#xA0;
During the Restricted Period, Executive shall not: (i) solicit or
induce, or attempt to solicit or induce, any employee of the
Company or its Affiliates to leave the employ of the Company or
such Affiliate; or (ii) solicit or attempt to solicit the business
of any client or customer of the Company or its Affiliates with
respect to products, services, or investments similar to those
provided or supplied by the Company or its Affiliates.</font></div>
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<font style="font-family: Times New Roman; font-size: 10"><br>
</font></div>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">2.5</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">Acknowledgements.</font>
Executive acknowledges and agrees that his services to the Company
pursuant to this Agreement are unique and extraordinary and that in
the course of performing such services Executive shall have access
to and knowledge of significant confidential, proprietary, and
trade secret information belonging to the Company. Executive agrees
that the covenant not to compete and the nonsolicitation
obligations imposed by this Section 2 are reasonable in duration,
geographic area, and scope and are necessary to protect the
Company&#x2019;s legitimate business interests in its goodwill, its
confidential, proprietary, and trade secret information, and its
investment in the unique and extraordinary services to be provided
by Executive pursuant to this Agreement. If, at the time of
enforcement of this Section 2, a court holds that the covenant not
to compete and/or the nonsolicitation obligations described herein
are unreasonable or unenforceable under the circumstances then
existing, then the Parties agree that the maximum duration, scope,
and/or geographic area legally permissible under such circumstances
will be substituted for the duration, scope and/or area stated
herein.</font></div>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">3.</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">C<font style="font-size: 13px">OMPENSATION
OF THE</font> E<font style="font-size: 13px">XECUTIVE</font>.</font></div>
</div>
</div>
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<div style="text-align: justify; margin-left: 0px; text-indent: 96px">
&#xA0; <font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">3.1</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">Base
Salary.</font> The Company shall pay Executive a base salary (the
<font style="font-weight: bold; font-style: italic">&#x201C;Base
Salary&#x201D;</font>) at the annualized rate of Four Hundred
Thousand Dollars ($400,000), less payroll deductions and all
required withholdings, payable in regular periodic payments in
accordance with the Company&#x2019;s normal payroll practices. The
Base Salary shall be prorated for any partial year of employment on
the basis of a 365-day fiscal year. The Company may increase, but
not decrease (except in connection with a Company-wide decrease in
executive compensation), Executive&#x2019;s Base Salary from time to
time, and if so increased, &#x201C;Base Salary&#x201D; shall include
such increases for purposes of this Agreement.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">3.2</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">Bonus.</font>
At the sole discretion of the Board or the compensation committee
of the Board (the &#x201C;<font style="font-weight: bold; font-style: italic">Compensation
Committee</font>&#x201D;), following each calendar year of
employment, Executive shall be eligible to receive an additional
cash bonus of up to 100% of Executive&#x2019;s Base Salary (the
&#x201C;<font style="font-weight: bold; font-style: italic">Annual
Milestone Bonus</font>&#x201D;), which Annual Milestone Bonus shall
be based (in whole or in part) on Executive&#x2019;s attainment of
certain personal, financial and/or business milestones (the
&#x201C;<font style="font-weight: bold; font-style: italic">Milestones</font>&#x201D;)
to be established annually prior to March 30 of the applicable
calendar year by the Board or the Compensation Committee. The
determination of whether Executive has met the Milestones, and if
so, the bonus amount (if any) that will be paid, shall be
determined by the Board or the Compensation Committee in its sole
and absolute discretion. Any Annual Milestone Bonuse shall be
deemed to have been earned on December 31 of each calendar year,
and shall be paid in cash in a single lump-sum payment or in
installments, as determined by the Board or the Compensation
Committee. Notwithstanding the foregoing, any payment of an Annual
Milestone Bonus shall be payable only if Executive is employed as
of the bonus payment date.</font></div>
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<font style="font-family: Times New Roman; font-size: 10">&#xA0;</font>
<font style="font-family: Times New Roman; font-size: 13px"><br>
</font></div>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">3.3</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">Stock
Options.</font> Promptly following the date of execution of this
Agreement, Executive shall be granted an option to purchase 350,000
shares of Company&#x2019;s common stock, par value $0.0001 per share
(&#x201C;<font style="font-weight: bold; font-style: italic">Common
Stock</font>&#x201D;) (the &#x201C;<font style="font-weight: bold; font-style: italic">Option</font>&#x201D;)
pursuant to the Company&#x2019;s 2017 Stock Incentive Plan (the
<font style="font-weight: bold; font-style: italic">&#x201C;Plan&#x201D;</font>).
The Option shall have a per share exercise price equal to the Fair
Market Value of a share of Company Common Stock on the date of
grant of such Option, and shall expire on the ten (10) year
anniversary of the date of grant. To the extent permitted by under
Section 422 of the Internal Revenue Code of 1986, as amended (the
<font style="font-weight: bold; font-style: italic">&#x201C;Code&#x201D;</font>),
the Option granted hereunder shall be intended to be an
&#x201C;incentive stock option.&#x201D; The Option shall vest as
follows so long as the Executive is serving as Chief Executive
Officer at such time: (i) 1/4 on the first annual anniversary of
the Effective Date, (ii) the remaining &#xBE; shall vest ratably
monthly over a thirty-six (36) month period. In the event of any
conflict between this Agreement and the terms of the Plan, the
terms of this Agreement shall control. In the event
Executive&#x2019;s employment is terminated under the provisions of
Sections 4.5.3 or 4.5.4 hereof, all vested Options will remain
exercisable for a period of six (6) months following termination;
<font style="font-style: italic">provided, however</font>, that
those Options that are exercised after 90 days following
termination of employment shall no longer be eligible for treatment
as Incentive Stock Options. <font style="background-color: #FFFFFF">In the event any withholding or similar
tax liability is imposed on Company in connection with or with
respect to any exercise of the Option or the disposition by
Executive of the Common Stock acquired upon exercise of the Option,
Executive agrees to pay to Company an amount sufficient to provide
for such tax liability.</font></font></div>
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</font></div>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">3.4</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Expense
Reimbursements.</font></div>
<div style="text-align: justify"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 4px; text-indent: 144px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">3.5.1</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;<font style="font-weight: bold">&#xA0;</font>The
Company will reimburse Executive for all reasonable business
expenses Executive incurs in conducting his duties hereunder,
pursuant to the Company&#x2019;s usual expense reimbursement
policies, but in no event later than ninety (90) days after the end
of the calendar month following the month in which such expenses
were incurred by Executive; provided that Executive supplies the
appropriate substantiation for such expenses no later than the end
of the calendar month following the month in which such expenses
were incurred by Executive.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 4px; text-indent: 144px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">3.5.2</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Executive
shall be reimbursed for all reasonable moving expenses incurred in
connection with the relocation of his residence from Texas to the
the Company&#x2019;s corporate headquarters in Arizona; provided,
however, such amount shall not exceed $50,000. In addition to the
foregoing, Executive shall be reimbursed for up to ninety (90)
days&#x2019; temporary accomodations while travelling to the
Company&#x2019;s headquarters in Arizona during the relocation of
Executive and his family. <font style="background-color: #FFFFFF">The Company shall reimburse Executive
for the Federal income tax payable by Executive as a result of the
reimbursement of relocation expenses set forth in this Section
3.5.2, in an amount equal to the then-current maximum marginal
Federal income tax rate payable by Executive resulting from such
vesting.</font></font></div>
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<div style="text-align: justify"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; text-indent: 108px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">3.5</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">Changes
to Compensation.</font> As described above, Executive&#x2019;s
compensation will be reviewed at least on an annual basis and the
Base Salary may be increased, but not decreased (except in
connection with a Company-wide decrease in executive compensation),
from time to time in the Company&#x2019;s sole
discretion.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 10">&#xA0;</font>
<font style="font-family: Times New Roman; font-size: 13px"><br>
</font></div>
<div style="text-align: justify; margin-left: 12px; text-indent: 108px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">3.6</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">Employment
Taxes</font>. All of Executive&#x2019;s compensation shall be
subject to customary withholding taxes and any other employment
taxes as are commonly required to be collected or withheld by the
Company.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; text-indent: 108px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">3.7</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">Benefits</font>.
The Executive shall, in accordance with Company policy and the
applicable plan documents, be eligible to participate in benefits
under any benefit plan or arrangement, including health, dental,
vision, disability and life insurance programs, that may be in
effect from time to time and made available to the Company&#x2019;s
senior management employees, subject to the terms and conditions of
those benefit plans.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 10">&#xA0;</font>
<font style="font-family: Times New Roman; font-size: 13px"><br>
</font></div>
<div style="text-align: justify; margin-left: 12px; text-indent: 108px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">3.8</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">Holidays
and Vacation.</font> Executive shall be entitled to an
indeterminate amount of personal time off in the sole discretion of
the Company as operational conditions permit. This entitlement is
based on the mutual trust between Executive and Company, allowing
Executive the opportunity to work or take time off as deemed
appropriate, as long the responsibilities and duties of Executive
to the Company under the terms of this Agreement are respected.
Executive will not accrue vacation benefits under the terms of this
Agreement. In addition, Executive shall be entitled to all paid
Company holidays in accordance with Company policy.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="margin-left: 60px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">4.</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">T<font style="font-size: 13px">ERMINATION</font>.</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 10">&#xA0;</font>
<font style="font-family: Times New Roman; font-size: 13px"><br>
</font></div>
<div style="text-align: justify; margin-left: 12px; text-indent: 108px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">4.1</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">Termination
by the Company</font>. Executive&#x2019;s employment with the
Company is at will and may be terminated by the Company at any time
and for any reason, or for no reason, including, but not limited
to, under the following reasons:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; text-indent: 156px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">4.1.1</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">Termination
by the Company for Cause</font>. The Company may terminate
Executive&#x2019;s employment under this Agreement for
&#x201C;Cause&#x201D; by delivery of written notice to Executive. Any
notice of termination given pursuant to this Section 4.1.1 shall
effect termination as of the date of the notice, or as of such
other date as specified in the notice.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; text-indent: 156px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">4.1.2</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">Termination
by the Company without Cause</font>. The Company may terminate
Executive&#x2019;s employment under this Agreement without Cause at
any time and for any reason, or for no reason. Such termination
shall be effective on the date Executive is so informed, or as
otherwise specified by the Company.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; text-indent: 108px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">4.2</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">Termination
by Resignation of Executive</font>. Executive&#x2019;s employment
with the Company is at will and may be terminated by Executive at
any time and for any reason, or for no reason, including via a
resignation for Good Reason in accordance with the procedures set
forth in Section 4.6.3 below.</font></div>
<div style="text-align: justify"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font>
<font style="font-family: Times New Roman; font-size: 10"><br>
</font></div>
<div style="text-align: justify; margin-left: 12px; text-indent: 108px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">4.3</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">Termination
for Death or Complete Disability</font>. Executive&#x2019;s
employment with the Company shall automatically terminate effective
upon the date of Executive&#x2019;s death or Complete Disability (as
defined below).</font></div>
<div style="text-align: justify"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; text-indent: 108px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">4.4</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">Termination
by Mutual Agreement of the Parties</font>. Executive&#x2019;s
employment with the Company may be terminated at any time upon a
mutual agreement in writing of the Parties. Any such termination of
employment shall have the consequences specified in such
agreement.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<div id="ftr">
<div style="text-align: justify; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">-4-</font></div>
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<div style="text-align: justify; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; text-indent: 108px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">4.5</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Compensation
Upon Termination.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 4px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">4.5.1</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">Death
or Complete Disability</font>. If, during the Term of this
Agreement, Executive&#x2019;s employment shall be terminated by
death or Complete Disability, the Company shall pay to Executive,
his estate, or his heirs, as applicable, (i) any Base Salary owed
to Executive through the date of termination; (ii) expenses
reimbursement amounts owed to Executive; (iii) all unpaid amounts
of any Annual Milestone Bonus(es) Executive earned prior to the
termination date; (iv) a cash lump sum in respect to accrued and
unused vacation benefits earned through the date of termination at
the rate in effect at the time of termination; (v) any payments and
benefits to which Executive (or his estate) is entitled pursuant to
the terms of any employee benefit or compensation plan or program
in which he participates (or participated); and (vi) any amount to
which Executive is entitled pursuant to any other written
agreements between the Company or any of its affiliates and
Executive (the amounts in (i) through (vi) above being the
&#x201C;<font style="font-weight: bold; font-style: italic">Termination
Amounts</font>&#x201D;). The Company shall pay Executive: (A) the
amounts contained in items (i) through (iv) within ten (10) days
following such termination; (B) any payments associated with (v) in
accordance to the terms of such plans or programs; and (C) any such
amounts in (vi) in accordance with the terms of such agreements,
with the Termination Amounts being subject to the standard
deductions and withholdings (as applicable). The Base Salary
payments will be subject to standard payroll deductions and
withholdings.</font></div>
<div style="text-align: justify"><font style="font-family: Times New Roman; font-size: 10">&#xA0;<br></font></div>
<div style="text-align: justify; margin-left: 12px; text-indent: 156px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">4.5.2</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">Termination
For Cause or Resignation without Good Reason.</font> If, during the
Term of this Agreement, Executive&#x2019;s employment is terminated
by the Company for Cause, or Executive resigns his employment
hereunder without Good Reason, the Company shall pay Executive the
Termination Amounts, less standard deductions and withholdings. The
Company shall thereafter have no further obligations to Executive
under this Agreement, except as otherwise provided by
law.</font></div>
<div style="text-align: justify; margin-left: 12px; text-indent: 156px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; text-indent: 156px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">4.5.3</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">Termination
Without Cause or Resignation for Good Reason Not in Connection with
a Change of Control.</font> If the Company terminates
Executive&#x2019;s employment without Cause, or if Executive resigns
for Good Reason, at any time other than upon the occurrence of, or
within thirty (30) days prior to, or six (6) months following, the
effective date of a Change of Control (as defined below), the
Company shall pay Executive the Termination Amounts, less standard
deductions and withholdings. In addition, subject to Executive
furnishing to the Company an executed waiver and release of claims
in the form attached hereto as <font style="font-weight: bold">Exhibit A</font> (the &#x201C;<font style="font-weight: bold; font-style: italic">Release</font>&#x201D;), and
allowing the Release to become effective in accordance with its
terms, Executive shall be entitled to: (1) severance in the form of
continuation of his salary (at the Base Salary rate in effect at
the time of termination, but prior to any reduction triggering Good
Reason) for the greater of a period of twelve (12) months following
the termination date or the remaining term, which amount shall be
paid in twelve (12) equal monthly installments; <font style="font-style: italic">provided, however</font>, such remaining
severance payments payable to Executive as a result of his
termination of employement shall be reduced by any compensation
paid to Executive by a third party employer, provided such third
party employer is not, directly or indirectly, in competition with
the business of the Company; and, <font style="font-style: italic">provided further</font>, that
Executive&#x2019;s entitlement to the benefits set forth in clause
(1) above shall be limited to twelve (12) months of his Base Salary
in the event such termination of Employment under the terms of this
Section 4.5.3 occurs on or prior to one hundred eighty (180) days
from the Effective Date. In the event that Executive finds
alternative full- or part-time employment with an entity that is,
directly or indirectly, in competition with the business of the
Company, any remaining severance payments shall terminate and be of
no further force and effect; (2) payment of Executive&#x2019;s
premiums to cover COBRA for a period of twelve (12) months
following the termination date; and (3) a prorated annual bonus
equal to the target Annual Milestone Bonus, if any, for the year of
termination multiplied by a fraction, the numerator of which shall
be the number of full and partial months Executive worked for the
Company and the denominator of which shall be 12, and (4) immediate
accelerated vesting of any unvested outstanding stock option(s).
These payments under (1), (2), (3) and (4) above will be subject to
standard payroll deductions and withholdings and will be made on
the Company&#x2019;s regular payroll cycle, <font style="font-style: italic">provided, however</font>, that any payments
otherwise scheduled to be made prior to the effective date of the
Release shall accrue and be paid in the first payroll period that
follows such effective date.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; text-indent: 156px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">4.5.4</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">Termination
Without Cause or Resignation for Good Reason in Connection with a
Change of Control.</font> If the Company terminates
Executive&#x2019;s employment without Cause, or if Executive resigns
for Good Reason, upon the occurrence of, or within thirty(30) days
prior to, or within six (6) months following, the effective date of
a Change of Control, the Company shall pay Executive the
Termination Amounts, less standard deductions and withholdings. In
addition, subject to Executive furnishing to the Company an
executed Release within the time period specified therein, and
allowing the Release to become effective in accordance with its
terms, then Executive shall be entitled to: (1) severance equal to
the greater of twelve (12) months of his Base Salary (at the Base
Salary rate in effect at the time of termination, but prior to any
reduction triggering Good Reason) or the remaining Term, which
amount shall be paid in twelve (12) equal monthly
installments;</font> <font style="font-family: Times New Roman; font-size: 13px"><font style="font-style: italic">provided, however</font>, that
Executive&#x2019;s entitlement to the benefits set forth in clause
(1) above shall be limited to twelve (12) months of his Base Salary
in the event such termination of Employment under the terms of this
Section 4.5.4 occurs on or prior to one hundred eighty (180) days
from the Effective Date; <font style="font-style: italic">provided
further</font>, in the event Executive finds alternative full-time
employment during such twelve (12) month period following the date
of termination of Executive&#x2019;s employment with an entity that
is not, directly or indirectly, in competition with the business of
the Company, such remaining severance payments shall be reduced by
any compensation paid to Executive by such entity, and, in the
event that Executive finds alternative full- or part-time
employment with an entity that is, directly or indirectly, in
competition with the business of the Company, any remaining
severance payments shall terminate and be of no further force and
effect; (2) payment of Executive&#x2019;s premiums to cover COBRA
for a period of twelve (12) months following the termination date;
(3) a prorated annual bonus equal to the target Annual Milestone
Bonus, if any, for the year of termination multiplied by a
fraction, the numerator of which shall be the number of full and
partial months Executive worked for the Company and the denominator
of which shall be 12, and (4) immediate accelerated vesting of any
unvested outstanding stock option(s). These payments under (1),
(2), and (3) above, will be subject to standard payroll deductions
and withholdings and will be made on the Company&#x2019;s regular
payroll cycle, <font style="font-style: italic">provided,
however</font>, that any payments otherwise scheduled to be made
prior to the effective date of the Release shall accrue and be paid
in the first payroll period that follows such effective
date.</font></div>
<div style="text-align: justify"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; text-indent: 108px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">4.6</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">Definitions</font>.
For purposes of this Agreement, the following terms shall have the
following meanings:</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; text-indent: 156px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">4.6.1</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">Complete
Disability</font>. &#x201C;<font style="font-weight: bold; font-style: italic">Complete
Disability</font>&#x201D; means that Executive is determined to be
permanently disabled pursuant to the Company&#x2019;s long-term
disability plan and is receiving disability benefits under such
plan.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; text-indent: 156px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">4.6.2</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">Cause</font>.
<font style="font-weight: bold; font-style: italic">&#x201C;Cause&#x201D;</font>
for the Company to terminate Executive&#x2019;s employment hereunder
shall mean the occurrence of any of the following events, as
determined by the Company and/or the Board in its and/or their sole
and absolute discretion:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; text-indent: 156px">
<font style="font-family: Times New Roman; font-size: 13px">(i)</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px">The willful
failure, disregard or refusal by Executive to perform his material
duties or obligations under this Agreement or to follow lawful
directions received by Executive from the Board, <font style="font-style: italic">provided, however</font>, that, any such
termination of Executive shall only be deemed for Cause pursuant to
this definition if: (i) the Company gives the Executive written
notice of the condition(s) alleged to constitute Cause, which
notice shall describe such condition(s); and (ii) the Executive
fails to remedy such condition(s) within thirty (30) days following
receipt of the written notice, <font style="font-style: italic">provided, further</font>, that written notice
shall not be required to be given hereunder in the event the
failure, disregard or refusal by Executive is willful, in the
reasonable determination of the Board;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
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<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; text-indent: 156px">
<font style="font-family: Times New Roman; font-size: 13px">(ii)</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px">Any
grossly negligent act by Executive having the effect of materially
injuring (whether financially or otherwise) the business or
reputation of the Company or any willful act by Executive intended
to cause such material injury, except any acts (A) made by
Executive in connection with the enforcement of his rights, whether
under this Agreement, any other agreement between the Company or
any affiliate and Executive, or pursuant to applicable law (e.g.
disparagement, etc.), or (B) which are required by law or pursuant
to a subpoena or demand by a governmental or regulatory
body.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; text-indent: 156px">
<font style="font-family: Times New Roman; font-size: 13px">(iii)</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px">Executive&#x2019;s
indictment of any felony involving moral turpitude (including entry
of a <font style="font-style: italic">nolo contendere</font>
plea);</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; text-indent: 156px">
<font style="font-family: Times New Roman; font-size: 13px">(iv)</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px">The
determination, after a reasonable and good-faith independent
investigation, that the Executive engaged in discrimination
prohibited by law (including, without limitation, age, sex or race
discrimination);</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; text-indent: 156px">
<font style="font-family: Times New Roman; font-size: 13px">(v)</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px">Executive&#x2019;s
misappropriation or embezzlement of the property of the Company or
its Affiliates (whether or not a misdemeanor or felony);
or</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; text-indent: 156px">
<font style="font-family: Times New Roman; font-size: 13px">(vi)</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px">Material
breach by Executive of this Agreement; <font style="font-style: italic">provided, however</font>, that, any such
termination of Executive shall only be deemed for Cause pursuant to
this definition if: (i) the Company gives the Executive written
notice of the condition(s) alleged to constitute Cause, which
notice shall describe such condition(s); and (ii) the Executive
fails to remedy such condition(s) (if curable) within thirty (30)
days following receipt of the written notice.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 4px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px">For
purposes of this definition, the Parties agree that any material
breach of Sections 2 or 5 of this Agreement shall be deemed a
material breach that is not capable of cure by
Executive.</font></div>
<div style="text-align: justify"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; text-indent: 156px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">4.6.3</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">Good
Reason.</font> For purposes of this Agreement, and subject to the
caveat at the end of this Section 4.6.3, &#x201C;Good Reason&#x201D;
for Executive to terminate his employment hereunder shall mean the
occurrence of any of the following events without Executive&#x2019;s
prior written consent:</font></div>
<div style="text-align: justify"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; text-indent: 156px">
<font style="font-family: Times New Roman; font-size: 13px">(i)</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px">any reduction by
the Company of Executive&#x2019;s Base Salary as initially set forth
herein or as the same may be increased from time to time,
<font style="font-style: italic">provided, however,</font> that if
such reduction occurs in connection with a Company-wide decrease in
executive compensation, such reduction shall not constitute Good
Reason for Executive to terminate his employment;</font></div>
<div style="text-align: justify"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; text-indent: 156px">
<font style="font-family: Times New Roman; font-size: 13px">(ii)</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px">a
material breach by the Company (or any of its affiliates) of this
Agreement or any other written agreement between the Company or any
of its affiliates and Executive; or</font></div>
<div style="text-align: justify"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; text-indent: 156px">
<font style="font-size: 13px; font-family: Times New Roman">(iii)</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px">a
material adverse change in Executive&#x2019;s duties, titles,
authority, responsibilities or reporting relationships, with such
determination being made with reference to the greatest extent of
Executive&#x2019;s duties, titles, authority, responsibilities or
reporting relationships, etc. as increased (but not decreased) from
time to time;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; text-indent: 156px">
<font style="font-family: Times New Roman; font-size: 13px">(iv)</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px">any
failure of the Company or any affiliate to pay Executive any amount
owed to Executive under this Agreement or any other written
agreement plan or program between the Company, any affiliates and
Executive;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; text-indent: 156px">
<font style="font-family: Times New Roman; font-size: 13px">(v)</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px">any reduction in
Executive&#x2019;s bonus eligibility; or</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; text-indent: 156px">
<font style="font-family: Times New Roman; font-size: 13px">(vi)</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px">the
assignment to Executive of duties materially inconsistent with his
position with the Company.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: justify; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">-7-</font></div>
</div>
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<div id="hdr">
<div style="text-align: justify; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; font-style: italic">Provided, however</font>,
that, any such termination by the Executive shall only be deemed
for Good Reason pursuant to this definition if: (1)&#xA0;the
Executive gives the Company written notice of his intent to
terminate for Good Reason; which notice shall describe such
condition(s); (2) the Company fails to remedy such condition(s)
within thirty (30) days following receipt of the written notice the
<font style="font-weight: bold; font-style: italic">&#x201C;Cure
Period&#x201D;</font>); and (3) Executive voluntarily terminates his
employment within thirty (30) days following the end of the Cure
Period.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; text-indent: 156px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">4.6.4</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">Change
of Control.</font> For purposes of this Agreement, &#x201C;Change of
Control&#x201D; shall mean the occurrence, in a single transaction
or in a series of related transactions, of any one or more of the
following events (excluding in any case transactions in which the
Company or its successors issues securities to investors primarily
for capital raising purposes):</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; text-indent: 156px">
<font style="font-family: Times New Roman; font-size: 13px">(i)</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px">the acquisition by
a third party (or more than one party acting as a group) of
securities of the Company representing more than fifty percent
(50%) of the combined voting power of the Company&#x2019;s then
outstanding securities other than by virtue of a merger,
consolidation or similar transaction;</font></div>
<div style="text-align: justify"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; text-indent: 156px">
<font style="font-family: Times New Roman; font-size: 13px">(ii)</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px">a
merger, consolidation or similar transaction following which the
stockholders of the Company immediately prior thereto do not own at
least fifty percent (50%) of the combined outstanding voting power
of the surviving entity (or that entity&#x2019;s parent) in such
merger, consolidation or similar transaction; or</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; text-indent: 156px">
<font style="font-family: Times New Roman; font-size: 13px">(iii)</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px">the
sale, or other disposition of all or substantially all of the
assets of the Company.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; text-indent: 108px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">4.7</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">Survival
of Certain Sections.</font> The terms and conditions set forth in
this Agreement shall survive the termination hereof; <font style="font-style: italic">provided, however</font>, Sections 14 and 15
shall terminate and be of no further force and effect upon such
termination.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; text-indent: 60px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">5.</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-weight: bold; font-variant: small-caps; font-family: Times New Roman; font-size: 13px">Nondisclosure
and Nonuse of Confidential Information.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; text-indent: 108px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">5.1</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">Definition
and Access.</font> Executive acknowledges that performance of
Executive&#x2019;s duties under this Agreement necessarily involves
access to and familiarity with highly sensitive, confidential, and
proprietary information of the Company which includes, without
limitation, information about the Company&#x2019;s products, product
strategies, product development and production processes, customers
and prospective customers, the buying patterns and needs of
customers and prospective customers, vendors and suppliers,
pricing, quoting, costing systems, billing and collection
procedures, proprietary software and the source code thereof,
financial and accounting data, data processing and communications,
technical data, marketing concepts and strategies, business plans,
mergers and acquisitions, research and development of new or
improved products and services, and general know-how regarding the
business of the Company and its products (collectively referred to
herein as <font style="font-weight: bold; font-style: italic">&#x201C;Confidential
Information&#x201D;</font>).</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; text-indent: 108px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">5.2</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">Trade
Secrets.</font> The Company considers much of its Confidential
Information to constitute trade secrets of the Company <font style="font-weight: bold; font-style: italic">(&#x201C;Trade
Secrets&#x201D;</font>) which have independent value, provide the
Company with a competitive advantage over its competitors who do
not know the Trade Secrets, and are protected from unauthorized
disclosure under applicable law.&#xA0;However, whether or not the
Confidential Information constitutes Trade Secrets, Executive
acknowledges and agrees that the Confidential Information is
protected from unauthorized disclosure or use due to
Executive&#x2019;s covenants under this Agreement and
Executive&#x2019;s fiduciary duties as an employee of
Company.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: justify; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">-8-</font></div>
</div>
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<div id="hdr">
<div style="text-align: justify; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; text-indent: 108px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">5.3</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">Protections
and Obligations.</font> Executive acknowledges that the
Confidential Information is a valuable, special, and unique asset
of the Company such that the unauthorized disclosure or use by
unauthorized persons would cause irreparable damage to the business
of the Company.&#xA0;In recognition of the foregoing, Executive
acknowledges and agrees that the Confidential Information is, and
shall at all times remain, the sole and exclusive property of the
Company. &#xA0;Executive further agrees that both during and after
the term of this Agreement, Executive shall not disclose to anyone
or use for any purpose any Confidential Information of the Company,
except as expressly authorized by the Company. &#xA0;Executive
further agrees that, upon termination of this Agreement, Executive
will promptly return to the Company all documents, computer disks
and files, and records of any kind, in any medium, which contain
any Confidential Information, including any and all copies
thereof.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">6.
A<font style="font-size: 13px">SSIGNMENT AND</font> B<font style="font-size: 13px">INDING</font> E<font style="font-size: 13px">FFECT</font>.</font></div>
<div style="text-align: justify"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 4px; text-indent: 96px">
<font style="font-family: Times New Roman; font-size: 13px">This
Agreement shall be binding upon and inure to the benefit of
Executive and Executive&#x2019;s heirs, executors, personal
representatives, assigns, administrators and legal representatives.
Because of the unique and personal nature of Executive&#x2019;s
duties under this Agreement, neither this Agreement nor any rights
or obligations under this Agreement shall be assignable by
Executive. This Agreement shall be binding upon and inure to the
benefit of the Company and its successors, assigns and legal
representatives. Any such successor of the Company will be deemed
substituted for the Company under the terms of this Agreement for
all purposes. For this purpose, &#x201C;successor&#x201D; means any
person, firm, corporation or other business entity which at any
time, whether by purchase, merger or otherwise, directly or
indirectly acquires all or substantially all of the assets or
business of the Company.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">7.
N<font style="font-size: 13px">OTICES</font>.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 4px; text-indent: 96px">
<font style="font-family: Times New Roman; font-size: 13px">All
notices or demands of any kind required or permitted to be given by
the Company or Executive under this Agreement shall be given in
writing and shall be personally delivered (and receipted for) or
faxed during normal business hours or mailed by certified mail,
return receipt requested, postage prepaid, addressed as
follows:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 108px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">If
to the Company:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 108px; margin-right: 281px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Wrap
Technologies, Inc.</font></div>
<div style="text-align: justify; margin-left: 108px; margin-right: 281px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">1817 W.
4<font style="font-size: 70%; vertical-align: top">th</font>
Street</font></div>
<div style="text-align: justify; margin-left: 108px; margin-right: 281px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Tempe,
Arizona 85281</font></div>
<div style="text-align: justify; margin-left: 108px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Attn:
Chief Financial Officer</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 108px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">If
to Executive:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 108px; margin-right: 285px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Marc T.
Thomas</font></div>
<div style="text-align: justify; margin-left: 108px; margin-right: 285px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">1529
Lost Trail</font></div>
<div style="text-align: justify; margin-left: 108px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Keller,
Texas 76248</font></div>
<div style="text-align: justify; margin-left: 108px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">marctthomas@yahoo.com</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
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<font style="font-family: Times New Roman; font-size: 13px">Any
such written notice shall be deemed given on the earlier of the
date on which such notice is personally delivered or three (3) days
after its deposit in the United States mail as specified above.
Either Party may change its address for notices by giving notice to
the other Party in the manner specified in this Section
7.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">8.
C<font style="font-size: 13px">HOICE OF</font> L<font style="font-size: 13px">AW</font>.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 4px; text-indent: 96px">
<font style="font-family: Times New Roman; font-size: 13px">This
Agreement shall be construed and interpreted in accordance with the
internal laws of the State of Arizona, without regard to its
conflict of laws principles. Each Party agrees that any action by
either Party to enforce the terms of this Agreement may be brought
by the other Party in an appropriate state or federal court in
Arizona and waives all objections based upon lack of jurisdiction
or improper or inconvenient venue of any such court.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">9.
I<font style="font-size: 13px">NTEGRATION</font>.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 4px; text-indent: 96px">
<font style="font-family: Times New Roman; font-size: 13px">This
Agreement, including <font style="font-weight: bold; text-decoration: underline">Exhibit
A</font><font style="font-weight: bold">,</font> contains the
complete, final and exclusive agreement of the Parties relating to
the terms and conditions of Executive&#x2019;s employment and the
termination of Executive&#x2019;s employment, and supersedes all
prior and contemporaneous oral and written employment agreements or
arrangements between the Parties.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">10.
A<font style="font-size: 13px">MENDMENT</font>.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 10">&#xA0;</font>
<font style="font-family: Times New Roman; font-size: 13px"><br>
</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 4px; text-indent: 96px">
<font style="font-family: Times New Roman; font-size: 13px">This
Agreement cannot be amended or modified except by a written
agreement signed by Executive and the Company.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">11.
W<font style="font-size: 13px">AIVER</font>.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">&#xA0;
<font style="font-family: Times New Roman; font-size: 13px"><br>
</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 4px; text-indent: 96px">
<font style="font-family: Times New Roman; font-size: 13px">No
term, covenant or condition of this Agreement or any breach thereof
shall be deemed waived, except with the written consent of the
Party against whom the wavier is claimed, and any waiver or any
such term, covenant, condition or breach shall not be deemed to be
a waiver of any preceding or succeeding breach of the same or any
other term, covenant, condition or breach.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">12.
S<font style="font-size: 13px">EVERABILITY</font>.</font></div>
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font>
<font style="font-family: Times New Roman; font-size: 10"><br>
</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 4px; text-indent: 96px">
<font style="font-family: Times New Roman; font-size: 13px">The
finding by a court of competent jurisdiction of the
unenforceability, invalidity or illegality of any provision of this
Agreement shall not render any other provision of this Agreement
unenforceable, invalid or illegal. Such court shall have the
authority to modify or replace the invalid or unenforceable term or
provision with a valid and enforceable term or provision, which
most accurately represents the Parties&#x2019; intention with
respect to the invalid or unenforceable term, or
provision.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">13.
I<font style="font-size: 13px">NTERPRETATION</font>; C<font style="font-size: 13px">ONSTRUCTION</font>.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 10">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px"><br>
</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 4px; text-indent: 96px">
<font style="font-family: Times New Roman; font-size: 13px">The
headings set forth in this Agreement are for convenience of
reference only and shall not be used in interpreting this
Agreement. This Agreement has been drafted by legal counsel
representing the Company, but the Executive has been encouraged to
consult with, and has consulted with, Executive&#x2019;s own
independent counsel and tax advisors with respect to the terms of
this Agreement. The Parties acknowledge that each Party and its
counsel has reviewed and revised, or had an opportunity to review
and revise, this Agreement, and any rule of construction to the
effect that any ambiguities are to be resolved against the drafting
party shall not be employed in the interpretation of this
Agreement.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">14.
R<font style="font-size: 13px">EPRESENTATIONS AND</font>
W<font style="font-size: 13px">ARRANTIES</font>.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 84px">
<font style="font-family: Times New Roman; font-size: 13px">Executive
represents and warrants that Executive is not restricted or
prohibited, contractually or otherwise, from entering into and
performing each of the terms and covenants contained in this
Agreement, and that Executive&#x2019;s execution and performance of
this Agreement will not violate or breach any other agreements
between the Executive and any other person or entity.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">15.
C<font style="font-size: 13px">OUNTERPARTS</font>.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 4px; text-indent: 96px">
<font style="font-family: Times New Roman; font-size: 13px">This
Agreement may be executed in two counterparts, each of which shall
be deemed an original, all of which together shall contribute one
and the same instrument. Signatures to this Agreement transmitted
by fax, by email in &#x201C;portable document format&#x201D;
(&#x201C;.pdf&#x201D;) or by any other electronic means intended to
preserve the original graphic and pictorial appearance of this
Agreement shall have the same effect as physical delivery of the
paper document bearing original signature.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">16.
I<font style="font-size: 13px">NDEMNIFICATION</font>.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 4px; text-indent: 96px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company shall defend and indemnify Executive in his capacity as
Executive Chief Executive Officer of the Company, and with respect
to all services performed by Executive for the Company and as an
employee, to the fullest extent permitted under Delaware law. The
Company shall also maintain a policy for indemnifying its officers
and directors, including but not limited to the Executive, for all
actions permitted under Nevada law taken in good faith pursuit of
their duties for the Company, including but not limited to
maintaining an appropriate level of Directors and Officers
Liability coverage and maintaining the inclusion of such provisions
in the Company&#x2019;s by-laws or articles of incorporation, as
applicable and customary. The rights to indemnification shall
survive any termination of this Agreement.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">17.
T<font style="font-size: 13px">RADE</font> S<font style="font-size: 13px">ECRETS</font> O<font style="font-size: 13px">F</font> O<font style="font-size: 13px">THERS</font>.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 10">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px"><br>
</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 4px; text-indent: 96px">
<font style="font-family: Times New Roman; font-size: 13px">It is
the understanding of both the Company and Executive that Executive
shall not divulge to the Company and/or its subsidiaries any
confidential information or trade secrets belonging to others,
including Executive&#x2019;s former employers, nor shall the Company
and/or its Affiliates seek to elicit from Executive any such
information. Consistent with the foregoing, Executive shall not
provide to the Company and/or its Affiliates, and the Company
and/or its Affiliates shall not request, any documents or copies of
documents containing such information.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">18.
A<font style="font-size: 13px">DVERTISING</font> W<font style="font-size: 13px">AIVER</font>.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 10">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px"><br>
</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 4px; text-indent: 96px">
<font style="font-family: Times New Roman; font-size: 13px">Executive agrees to
permit the Company, and persons or other organizations authorized
by the Company, to use, publish and distribute advertising or sales
promotional literature concerning the products and/or services of
the Company, in which Executive&#x2019;s name and/or pictures of
Executive taken in the course of Executive&#x2019;s provision of
services to the Company appear. Executive hereby waives and
releases any claim or right Executive may otherwise have arising
out of such use, publication or distribution.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
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<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
[<font style="font-size: 13px">SIGNATURE PAGE
FOLLOWS</font>]</font></div>
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<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">I</font><font style="font-weight: bold; font-size: 13px">N</font> <font style="font-weight: bold">W</font><font style="font-weight: bold; font-size: 13px">ITNESS</font> <font style="font-weight: bold">W</font><font style="font-weight: bold; font-size: 13px">HEREOF</font>, the Parties
have executed this Agreement as of the date first above
written.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px"><br></font></div>
<br>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">WRAP
TECHNOLOGIES, INC.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 36px; margin-right: 221px; text-indent: -36px">
<font style="font-family: Times New Roman; font-size: 13px">By:
<font style="text-decoration: underline">____________</font>__________________________</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 221px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Name:
Scot Cohen</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">Its:
Executive Chairman</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Dated:
July 30, 2020</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">EXECUTIVE:</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-family: Times New Roman; font-size: 13px">
__________________________________________</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Marc T.
Thomas</font></div>
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<font style="font-family: Times New Roman; font-size: 13px"><br></font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Dated:
July 30, 2020</font></div>
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<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">EXHIBIT
A</font></div>
<div style="text-align: center"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 42px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">RELEASE
AND WAIVER OF CLAIMS</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 42px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">TO
BE SIGNED ON OR FOLLOWING THE SEPARATION DATE ONLY</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px">In
consideration of the payments and other benefits set forth in the
Employment Agreement effective as of July 30, 2020, to which this
form is attached, I, Marc T. Thomas, hereby furnish <font style="font-weight: bold">WRAP TECHNOLOGIES, INC.</font> (the
<font style="font-weight: bold; font-style: italic">&#x201C;Company&#x201D;</font>),
with the following release and waiver (<font style="font-weight: bold; font-style: italic">&#x201C;Release and
Waiver&#x201D;</font>). Payments to be made in consideration of this
Release and Waiver shall commence on the "<font style="font-weight: bold; font-style: italic">Release Payment
Date</font>" which shall mean the effective date of this release,
<font style="font-style: italic">provided however</font>, that if
the period below for review of this Release spans beyond December
31 of a given year, then the Release Payment Date shall be the
later of (i) the first payroll date in such subsequent calendar
year or (ii) the first payroll date that follows the Release
Payment Date.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 10">&#xA0;</font>
<font style="font-family: Times New Roman; font-size: 13px"><br>
</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 4px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px">In
exchange for the consideration provided to me by the Employment
Agreement that I am not otherwise entitled to receive, I hereby
generally and completely release the Company and its current and
former directors, officers, employees, stockholders, partners,
agents, attorneys, predecessors, successors, parent and subsidiary
entities, insurers, affiliates, and assigns (collectively, the
&#x201C;<font style="font-weight: bold; font-style: italic">Released
Parties</font>&#x201D;) from any and all claims, liabilities and
obligations, both known and unknown, that arise out of or are in
any way related to events, acts, conduct, or omissions occurring
prior to or on the date that I sign this Agreement (collectively,
the &#x201C;<font style="font-weight: bold; font-style: italic">Released
Claims</font>&#x201D;). Except as provided below, the Released
Claims include, but are not limited to: (a) all claims arising out
of or in any way related to my employment with the Company, or the
termination of that employment; (b) all claims related to my
compensation or benefits from the Company including salary,
bonuses, commissions, vacation pay, expense reimbursements,
severance pay, fringe benefits, stock, stock options, or any other
ownership interests in the Company; (c) all claims for breach of
contract, wrongful termination, and breach of the implied covenant
of good faith and fair dealing; (d) all tort claims, including
claims for fraud, defamation, emotional distress, and discharge in
violation of public policy; and (e) all federal, state, and local
statutory claims, including claims for discrimination, harassment,
retaliation, misclassification, attorneys&#x2019; fees, or other
claims arising under the federal Civil Rights Act of 1964 (as
amended), the federal Americans with Disabilities Act of 1990, the
federal Age Discrimination in Employment Act of 1967 (as amended)
(the &#x201C;<font style="font-weight: bold; font-style: italic">ADEA</font>&#x201D;), the
fair employment practices statutes of the state or states in which
I have provided services to the Company and/or any other federal,
state or local law, regulation or other requirement.
Notwithstanding the foregoing, the following are not included in
the Released Claims (the &#x201C;<font style="font-weight: bold; font-style: italic">Excluded
Claims</font>&#x201D;):</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 5px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(a) any
rights or claims under the Employment Agreement or any other
written agreement between the Company and me, including any stock
option award agreement or plan, (b) any rights or claims that may
arise as a result of events occurring after the date this Release
and Waiver is executed or which otherwise cannot lawfully be
waived, (c) any rights to representation and/or indemnification I
may have as a current or former officer , director, or employee of
the Company or its subsidiaries or affiliated companies, including
but not limited to any rights or claims for representation and/or
indemnification I may have pursuant to the Employment Agreement,
any written indemnification agreement with the Company to which I
am a party or beneficiary, the charter, bylaws, or operating
agreements of the Company, or under any applicable law or Company
policy, including but not limited to Directors and Officers
Liability Insurance policies, employment practice liability
insurance policies, other insurance policies, and/or Company
policies; (d) any claims for benefits under any directors&#x2019;
and officers&#x2019; liability policy maintained by the Company or
its subsidiaries or affiliated companies in accordance with the
terms of such policy, (e) any rights or claims under any employee
benefit or compensation plan or program in which I participate or
participated (or was eligible to participate), (f) any rights or
claims to unemployment compensation, (g) reimbursement for business
expenses which are consistent with the Company&#x2019;s
reimbursement policy, and (h) my rights under COBRA. I hereby
represent and warrant that, other than the Excluded Claims, I am
not aware of any claims I have or might have against any of the
Released Parties that are not included in the Released
Claims.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 5px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Notwithstanding
any other provision of this Agreement, the release of claims
against individual employees, stockholders, agents and attorneys is
limited to claims arising out of or in any way related to my
employment with Company.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 4px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px">I
expressly waive and relinquish any and all rights and benefits
under any applicable law or statute providing, in substance, that a
general release does not extend to claims which a party does not
know or suspect to exist in his or his favor at the time of
executing the release, which if known by him or his would have
materially affected the terms of such release.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 4px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px">I
acknowledge that, among other rights, I am waiving and releasing
any rights I may have under ADEA, that this Release and Waiver is
knowing and voluntary, and that the consideration given for this
Release and Waiver is in addition to anything of value to which I
was already entitled as an executive of the Company. If I am 40
years of age or older upon execution of this Release and Waiver, I
further acknowledge that I have been advised, as required by the
Older Workers Benefit Protection Act, that: (a) the release and
waiver granted herein does not relate to claims under the ADEA
which may arise after this Release and Waiver is executed; (b) I
should consult with an attorney prior to executing this Release and
Waiver; and (c) I have twenty-one (21) days from the date of
termination of my employment with the Company in which to consider
this Release and Waiver (although I may choose voluntarily to
execute this Release and Waiver earlier); (d) I have seven (7) days
following the execution of this Release and Waiver to revoke my
consent to this Release and Waiver; and (e) this Release and Waiver
shall not be effective until the seven (7) day revocation period
has expired without my having previously revoked this Release and
Waiver.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 10">&#xA0;</font>
<font style="font-family: Times New Roman; font-size: 13px"><br>
</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 4px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px">I
acknowledge that I must not use or disclose any confidential or
proprietary information of the Company and I must immediately
return all Company property and documents (including all
embodiments of proprietary information) and all copies thereof in
my possession or control except I may retain documents relating to
my compensation and/or benefits.</font></div>
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<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 4px; text-indent: 48px">
<font style="font-family: Times New Roman; font-size: 13px">This
Release and Waiver constitutes the complete, final and exclusive
embodiment of the entire agreement between the Company and me with
regard to the subject matter hereof. I am not relying on any
promise or representation by the Company that is not expressly
stated herein. This Release and Waiver may only be modified by a
writing signed by both me and a duly authorized officer of the
Company.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<div style="display: table-cell; width: 36px"><font style="font-family: Times New Roman; font-size: 13px">Date:_____________________<br>
</font></div>
</td>
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<div><font style="font-family: Times New Roman; font-size: 13px">By:&#xA0;__________________________</font>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Marc T.
Thomas</font></div>
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<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">WRAP
TECHNOLOGIES, INC.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">By:___________________________</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Name:
Scot Cohen</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Its:
Executive Chairman</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px;"><font style="font-family: Times New Roman; font-size: 13px">Dated:_____________________&#xA0;</font><br>
</font></div>
</div>
</td>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>ex99-1.htm
<DESCRIPTION>PRESS RELEASE
<TEXT>
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<head>
<!-- Document created using Blueprint(R) - powered by Issuer Direct - www.issuerdirect.com -->
<!-- Copyright 2020 Issuer Direct Corporation -->
<title>ex99-1</title>
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<font style="font-size: 13px">Exhibit
99.1</font></font><br></font></div>
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<font style="font-family: Times New Roman; font-size: 16px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px"><img src="wrap.jpg"></div>
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<font style="font-family: Times New Roman; font-size: 16px;">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 16px">
Wrap Technologies Appoints Marc Thomas as Chief Executive
Officer</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
David Norris to Remain on the Board of Directors Subsequent to CEO
Transition</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; font-style: italic">
TEMPE,</font> <font style="font-weight: bold">Arizona</font><font style="font-weight: bold; font-style: italic">,</font> <font style="font-weight: bold">July 30, 2020 -- Wrap Technologies, Inc. (the
&#x201C;Company&#x201D; or &#x201C;Wrap&#x201D;) (Nasdaq: WRTC),</font>
an innovator of modern policing solutions, today announced that its
Board of Directors has appointed Marc Thomas as its new Chief
Executive Officer, effective today. Thomas will succeed David
Norris, who has served as the Company&#x2019;s Chief Executive
Officer since December 2018, and who will retain his position as a
director following the transition.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#x201C;On
behalf of the Board of Directors, I would like to thank David for
the many contributions he has made since becoming CEO,&#x201D; said
Scot Cohen, Executive Chairman of Wrap Technologies. &#x201C;Under
David&#x2019;s leadership, Wrap has grown from a nascent business
concept into a company with an established brand, a proven product,
and a robust and growing, global customer base.&#x201D;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#x201C;It&#x2019;s
been a great privilege to lead Wrap through its startup phase, and
I&#x2019;m very proud of the work the entire team has accomplished
to bring the idea of a new remote restraint device to life,&#x201D;
said David Norris, Director of Wrap Technologies. &#x201C;With
worldwide sales accelerating, the board of directors, the rest of
the management team, and I came to the conclusion that it was an
appropriate time in the company&#x2019;s history to bring on a
leader with a deep operational background to support the
Company&#x2019;s growth. As a fellow shareholder and staunch
believer in the importance of Wrap&#x2019;s mission, I&#x2019;m very
encouraged that we&#x2019;ve found such a capable leader in Marc,
whose background and track record speak for themselves when it
comes to experience in related fields and successfully scaling
businesses.&#x201D;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#x201C;I&#x2019;d
also like to personally welcome Marc aboard,&#x201D; Cohen
continued. &#x201C;Marc has a long history of successfully leading
and growing organizations, and we&#x2019;re confident that the
expertise he has developed across a broad array of industries will
be of great benefit to Wrap. We&#x2019;re very excited to have him
as part of the team.&#x201D;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
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<div style="text-align: justify"><font style="font-family: Times New Roman; font-size: 13px">Marc Thomas is an
experienced executive with a diverse background who has
successfully led and advised teams in a variety of industries
including financial markets, aerospace engineering and
manufacturing, management consulting, government, and the armed
services.</font>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Incoming
Chief Executive Officer Marc Thomas commented, &#x201C;With the
momentum Wrap has been building over the past year, it&#x2019;s an
incredibly exciting time to be joining the team. Wrap is working to
close a critical gap that exists in policing, and by doing so, it
will benefit not just law enforcement officers, but all of us.
Today, the BolaWrap is more prominent than ever before, and more
and more agencies are beginning to view it as a &#x2018;must
have&#x2019; rather than a &#x2018;nice to have.&#x2019; I&#x2019;m
looking forward to leveraging my past experience to help
effectively scale the business and accelerate the Company&#x2019;s
growth over the coming quarters and years.&#x201D;</font></div>
</div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Thomas
joins Wrap from Thorium Capital Ventures and Consulting where,
during his 14 year tenure as president and CEO, he was responsible
for private equity deal sourcing, valuing, acquiring, and operating
small to medium sized manufacturing and services companies, as well
as serving as an interim president, CEO, and board member of
several portfolio manufacturing and asset management companies.
<font style="color: #000000">While serving as a Chief Operating
Officer in a private equity portfolio company, Marc worked
"shoulder-to-shoulder" with various direct reports and staffers to
develop SOPs / SOWs / and key metrics to design and implement a
growth strategy resulting in annual increases of 27% and 189% in
sales revenues and operating profit,
respectively.</font></font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">From
2001 to 2006, he held multiple leadership positions at General
Electric Company including manager of the Corporate Initiatives
Group, general manager of Rail, and chairman, president, and CEO of
Aviation Materials. <font style="color: #000000">At GE Aviation
Materials, Marc designed and successfully implemented a turnaround
strategy that rapidly grew the business from $151 million to $246
million in sales revenue, and $9 million to $31 million in
operating profit.</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: justify; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
<div id="pb" style="text-align: center; page-break-after: always; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000">
<!--page break--></div>
<div id="hdr">
<div style="text-align: justify; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
his career, Thomas has also served as an engagement manager at
McKinsey &amp; Company, a legislative assistant to the Office of
Senator Dirk Kempthorne, a special advisor to the Office of the
Vice President at the White House, an adjunct associate professor
to the School of Engineering &amp; Applied Sciences at Columbia
University, and an assistant professor to the Department of Systems
Engineering at the United States Military Academy.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Prior
to his work in the private sector, Thomas served as a Detachment
Commander and Civil-Military &amp; Psychological Operations Officer
in the 5<font style="font-size: 70%; vertical-align: top">th</font>
Special Forces Group in the United States Army. He holds a JD in
corporate and intellectual property law from the University of
Texas School of Law in Austin, an MBA in international finance and
management as well as an MS in industrial engineering and
operations research from Columbia University, and a BS in civil and
environment engineering from Stanford University.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
About Wrap Technologies&#xA0;(Nasdaq: WRTC)</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Wrap
Technologies is an innovator of modern policing solutions. The
Company&#x2019;s BolaWrap 100 product is a patented, hand-held
remote restraint device that discharges an eight-foot bola style
Kevlar&#xAE; tether to restrain an individual at a range of 10-25
feet. Developed by award winning inventor Elwood Norris, the
Company&#x2019;s Chief Technology Officer, the small but powerful
BolaWrap 100 assists law enforcement to safely and effectively
control encounters, especially those involving an individual
experiencing a mental crisis. For information on the Company please
visit&#xA0;www.wraptechnologies.com. Examples of recent media
coverage are available as links under the &#x201C;Media&#x201D; tab
of the website.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">
Trademark Information:&#xA0;</font>BolaWrap and Wrap are trademarks
of Wrap Technologies, Inc. All other trade names used herein are
either trademarks or registered trademarks of the respective
holders.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Cautionary Note on Forward-Looking Statements &#x2013; Safe Harbor
Statement</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">This
press release contains &#x201C;forward-looking statements&#x201D;
within the meaning of the &#x201C;safe harbor&#x201D; provisions of
the Private Securities Litigation Reform Act of 1995, including but
not limited to statements regarding the Company&#x2019;s overall
business, total addressable market and expectations regarding
future sales and expenses. Words such as &#x201C;expect,&#x201D;
&#x201C;anticipate,&#x201D; &#x201C;should,&#x201D;
&#x201C;believe,&#x201D; &#x201C;target,&#x201D; &#x201C;project,&#x201D;
&#x201C;goals,&#x201D; &#x201C;estimate,&#x201D;
&#x201C;potential,&#x201D; &#x201C;predict,&#x201D; &#x201C;may,&#x201D;
&#x201C;will,&#x201D; &#x201C;could,&#x201D; &#x201C;intend,&#x201D;
variations of these terms or the negative of these terms and
similar expressions are intended to identify these forward-looking
statements. Forward-looking statements are subject to a number of
risks and uncertainties, many of which involve factors or
circumstances that are beyond the Company&#x2019;s control. The
Company&#x2019;s actual results could differ materially from those
stated or implied in forward-looking statements due to a number of
factors, including but not limited to: the Company&#x2019;s ability
to successful implement training programs for the use of its
products; the Company&#x2019;s ability to manufacture and produce
product for its customers; the Company&#x2019;s ability to develop
sales for its new product solution; the acceptance of existing and
future products; the availability of funding to continue to finance
operations; the complexity, expense and time associated with sales
to law enforcement and government entities; the lengthy evaluation
and sales cycle for the Company&#x2019;s product solution; product
defects; litigation risks from alleged product-related injuries;
risks of government regulations; <font style="color: #000000">the
business impact of health crises or outbreaks of disease, such as
epidemics or pandemics;</font> the ability to obtain export
licenses for counties outside of the US; the ability to obtain
patents and defend IP against competitors; the impact of
competitive products and solutions; and the Company&#x2019;s ability
to maintain and enhance its brand, as well as other risk factors
included in the Company&#x2019;s most recent annual report on Form
10-K, quarterly report on Form 10-Q and other SEC filings. These
forward-looking statements are made as of the date of this press
release and were based on current expectations, estimates,
forecasts and projections as well as the beliefs and assumptions of
management. Except as required by law, the Company undertakes no
duty or obligation to update any forward-looking statements
contained in this release as a result of new information, future
events or changes in its expectations.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
WRAP TECHNOLOGIES CONTACT:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Paul M.
Manley</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">VP
&#x2013; Investor Relations</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
612-834-1804</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; color: #0563C1; font-family: Times New Roman; font-size: 13px">
pmanley@wraptechnologies.com</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
