EXHIBIT
10.1


 


IMPRIMIS
PHARMACEUTICALS, INC.


 


EMPLOYMENT
AGREEMENT


 


This
Employment Agreement (the “Agreement”), is made and entered into as of April 25, 2016, by and between
Mark L. Baum (“Executive”) and Imprimis Pharmaceuticals, Inc. (the “Company”).


 


Whereas,
the Company and Executive are parties that certain Amended and Restated Employment Agreement dated July 24, 2012 as amended and
restated on May 2, 2013 and amended on July 31, 2015 (the “Prior Agreement”);


 


Whereas,
the Company and Executive desire to amend and restate in its entirety the Prior Agreement on the terms set forth herein; and


 


Whereas,
this Agreement shall become effective as of the date set forth above (the “Effective Date”).


 


Now,
Therefore, in consideration of the mutual
promises and covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, Executive and the Company agree as follows:


 


1.
Employment by the Company.


 


1.1
Position. Executive shall serve as the Company’s Chief Executive Officer and shall report directly to the Chairman
of the Board of Directors of the Company (the “Board”). In addition, it is contemplated that at all
times during the effectiveness of this Agreement, Executive shall be nominated for election to the Board by the stockholders of
the Company so that he may continue to serve as a director of the Company in accordance with the Company’s governing instruments.
Executive’s service on the Board will be subject to any required stockholder approval and shall be without additional compensation.
If Executive’s employment with the Company terminates for any reason, Executive shall immediately resign all positions that
Executive then holds with the Company or any of its affiliates, unless otherwise agreed to with the Board. If Executive fails
to so resign, the Board shall thereupon have the right to remove Executive from all such positions without further action or notice.


 


1.2
Duties and Location. Executive shall perform such duties as are customarily associated with the position of Chief Executive
Officer and such other reasonable and customary duties as are assigned to Executive by the Board. Executive’s primary office
location shall be the Company’s principal executive offices located in San Diego, California, although the Executive understands
that reasonable travel shall be required in the performance of Executive’s duties under this Agreement. Executive shall
devote Executive’s full and exclusive business time (as opposed to personal time), energy, and ability to the business of
Company, and shall perform Executive’s duties faithfully and in compliance with the law.


 


1.3
Policies and Procedures. The employment relationship between the parties shall be governed by the general employment
policies and practices of the Company, except that when the terms of this Agreement differ from or are in conflict with the Company’s
general employment policies or practices, this Agreement shall control.


 




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2.
Compensation.


 


2.1
Base Salary. For services to be rendered hereunder, Executive will receive a base salary at the rate of $388,000 per
year (the “Base Salary”) less standard payroll deductions and withholdings and payable in accordance
with the Company’s regular payroll schedule. The Base Salary will be reviewed from time to time (at least annually) and
may be increased (but not decreased) by the Compensation Committee of the Board (the “Committee”) in
its sole discretion; provided that, subject to the terms of this Agreement, the Base Salary may be decreased in accordance with
a uniform reduction in base salaries applicable to all senior executives of the Company. 


 


2.2
Annual Bonus Opportunity. Executive will be eligible for an annual performance bonus, with a target amount of
such bonus equal to sixty percent (60%) of Executive’s then-current Base Salary (the “Annual Bonus”).
Whether Executive receives an Annual Bonus for any given year, and the amount of any such Annual Bonus, will be determined in
the good faith discretion of the Committee, based upon the Company’s management incentive plan (or equivalent annual cash
performance bonus plan or program) as established and amended by the Committee from time to time. To earn an Annual Bonus, Executive
must continue in service through the end of the applicable year to which such Annual Bonus relates, except in the case of certain
types of termination, as provided in Section 11 below. The actual Annual Bonus earned, if any, will be paid in a lump sum cash
payment on or before March 15 of the year following the year to which such Annual Bonus relates.


 


3.
Standard Company Benefits. Executive shall, in accordance with Company policy and the terms and conditions of the applicable
Company benefit plan documents, be eligible to participate in the benefit and fringe benefit programs provided by the Company
to its executive officers and other employees from time to time, which shall in any event include life insurance, AD&D and
long-term disability coverage. Executive shall be entitled to paid vacation, personal and sick days each calendar year in accordance
with the Company’s applicable plans, policies and programs then in effect. Initially Executive shall be entitled to four
(4) weeks of paid vacation per calendar year, subject to the Company’s applicable vacation policies and practices that may
be in effect from time to time (including, without limitation, any policies concerning vacation accruals and caps).


 


4.
Expenses. The Company will reimburse Executive for reasonable travel, entertainment or other expenses incurred by Executive
in furtherance or in connection with the performance of Executive’s duties hereunder, in accordance with the Company’s
expense reimbursement policy as in effect from time to time. The Company shall reimburse Executive for reasonable legal fees and
expenses which Executive incurs in connection with the negotiation and execution of this Agreement and the attachments hereto.


 


5.
Equity Incentive Awards. 


 


5.1
Option Grant. On April 1, 2016, Executive was granted a stock option to purchase 180,000 shares of the Company’s
common stock subject to the terms of the Company’s Amended and Restated 2007 Incentive Stock and Awards Plan (the “Plan”)
and the stock option agreement in the form attached hereto as Exhibit A (the
“Option Award”). The Option Award shall have an exercise price per share equal to the fair market value
of the Company’s common stock as of the date of grant (i.e. the Effective Date), and shall vest in equal quarterly installments
of 15,000 shares, on the first twelve quarterly anniversaries of the Effective Date, subject to Executive’s continued service
as further described in the stock option agreement.


 




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5.2
Performance Stock Unit Grant. Upon the Effective Date, Executive shall be granted 1,050,000 performance stock units
subject to terms of the performance stock units agreement in the form attached as Exhibit
B (the “Performance Award”). The Performance Award shall be subject to vesting and issuance
upon the five (5) year anniversary of the Effective Date, subject to Executive’s continued services through such date, provided
that the Performance Award shall become vested and issuable sooner, upon attainment of the share price targets specified in the
performance stock units agreement, or upon a Change in Control (as defined in the Plan) in which the Performance Award is not
assumed, continued or substituted for by the acquiring entity as further described in the performance stock units agreement. If
Executive’s service is terminated by the Company for any reason or no reason, any unvested portion of the Performance Award
will be forfeited, subject to Section 11.2 and Section 11.3 below. Executive and the Company agree that the performance stock
units granted to Executive on May 2, 2013 shall be cancelled in its entirety as of the Effective Date.


 


5.3
Stock Option Repricing. The Company agrees to permit, subject to any stockholder consent required by applicable law
or listing requirement, Executive to participate in the terms of any repricing or stock option exchange program that is offered
to other employees of the Company, on the same terms and conditions offered to such other employees.


 


6.
Retention Agreement. Executive shall be eligible to receive a bonus pursuant to the terms of the Retention Letter Agreement
entered into between Executive and the Company as of the Effective Date (the “Retention Agreement”)
attached hereto as Exhibit C.


 


7.
Indemnification. The indemnification agreement between the Company and Executive dated January 23, 2012 (the “Indemnification
Agreement”) shall continue in full force and effect pursuant to its terms.


 


8.
Clawback Policy. Notwithstanding anything to the contrary in this Agreement, all incentive-based compensation payable hereunder
shall be subject to any clawback policy adopted by the Company from time to time, including, without limitation, in accordance
with the Dodd-Frank Wall Street Reform and Consumer Protection Act.


 


9.
Proprietary Information Obligations.


 


9.1
Proprietary Information Agreement. Executive agrees to continue to abide by the Employee Proprietary Information and
Inventions Agreement entered into with the Company on August 31, 2012 (“Proprietary Agreement”).


 


9.2
Third-Party Agreements and Information. Executive represents and warrants that Executive’s employment by the
Company does not conflict with any prior employment or consulting agreement or other agreement with any third party, and that
Executive will perform Executive’s duties to the Company without violating any such agreement. Executive represents and
warrants that Executive does not possess confidential information arising out of prior employment, consulting, or other third
party relationships, that would be used in connection with Executive’s employment by the Company, except as expressly authorized
by that third party. During Executive’s employment by the Company, Executive will use in the performance of Executive’s
duties only information that is generally known and used by persons with training and experience comparable to Executive’s
own, common knowledge in the industry, otherwise legally in the public domain, or obtained or developed by the Company or by Executive
in the course of Executive’s work for the Company.


 


10.
Outside Activities. Throughout Executive’s employment with the Company, Executive may engage in outside activities so
long as such activities do not interfere with the performance of Executive’s duties hereunder or present a conflict of interest
with the Company or its affiliates. It shall not be a violation of this Agreement for Executive to serve on the Board of Directors
of two outside companies, or to serve on other corporate, civic or charitable boards or committees, deliver lectures, fulfill
speaking engagements or teach at educational institutions and manage personal investments. Any additional service on a Board of
Directors or similar service to an outside entity or organization shall be subject to prior approval of the Board, which shall
not be unreasonably withheld, but may be reasonably reviewed from time to time and withdrawn based on such reasonable review.


 




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11.
Termination of Employment.


 


11.1
At-Will Employment. Executive’s employment relationship is at-will. Either Executive or the Company may terminate
the employment relationship at any time, with or without cause or advance notice. In the event of any termination of Executive’s
employment, regardless of the reasons for such termination, the Company shall pay Executive his Base Salary and accrued but unused
vacation up to and through the date of termination, less applicable payroll and tax withholdings (the “Accrued Obligations”).


 


11.2
Involuntary Termination. If at any time (1) the Company terminates Executive’s employment without Cause (as defined
below and other than as a result of Executive’s death or disability), or (2) Executive resigns employment with the Company
for Good Reason (as defined below), and provided in any case such termination or resignation constitutes a “separation from
service”, as defined under Treasury Regulation Section 1.409A-1(h)) (a “Separation from Service”)
(such termination described in (1) or (2), an “Involuntary Termination”), Executive shall be entitled
to receive the following severance benefits, subject in all events to Executive’s compliance with Section 11.4 below:


 


(i)
Executive shall receive a severance payment equal to the sum of (1) twelve (12) months of Executive’s Base Salary in
effect on the effective date of Executive’s Involuntary Termination (ignoring any decrease that forms the basis for Executive’s
resignation for Good Reason, if applicable) plus (2) the greater of Executive’s (x) Annual Bonus for the calendar year preceding
the calendar year in which the Involuntary Termination occurs or (y) target Annual Bonus for the year of Involuntary Termination,
which shall be paid in a lump sum on the thirtieth (30th) day following Executive’s Involuntary Termination.


 


(ii)
Executive shall receive an Annual Bonus for the year in which the Involuntary Termination occurs, determined based on actual
results for such year and pro rated for the period of time during such year in which Executive provided services to the Company
prior to his Involuntary Termination, which shall be paid in a lump sum in accordance with Company practice for payment of the
Annual Bonus, which shall in any event be on or before March 15 of the year following the year in which the Involuntary Termination
occurs.


 


(iii)
If Executive is eligible for and timely elects to continue Executive’s health insurance coverage under the Company’s
group health plans under the Consolidated Omnibus Budget Reconciliation Act of 1985 or the state equivalent (“COBRA”)
following Executive’s Involuntary Termination, the Company will pay the COBRA group health insurance premiums for Executive
and Executive’s eligible dependents until the earliest of (A) the end of the twelve (12)-month period following Executive’s
Involuntary Termination, (B) the expiration of Executive’s eligibility for the continuation coverage under COBRA, or (C)
the date when Executive becomes eligible for substantially equivalent health insurance coverage in connection with new employment
or self-employment. For purposes of this Section, references to COBRA premiums shall not include any amounts payable by Executive
under a Section 125 health care reimbursement plan under the U.S. Internal Revenue Code. Notwithstanding the foregoing, if at
any time the Company determines, in its sole discretion, that it cannot pay the COBRA premiums without potentially incurring financial
costs or penalties under applicable law (including, without limitation, Section 2716 of the Public Health Service Act), then regardless
of whether Executive elects continued health coverage under COBRA, and in lieu of providing the COBRA premiums, the Company will
instead pay Executive on the last day of each remaining month in the twelve (12) month period following Executive’s Involuntary
Termination, a fully taxable cash payment equal to the COBRA premiums for that month, subject to applicable tax withholdings (such
amount, the “Health Care Benefit Payment”). The Health Care Benefit Payment shall be paid in monthly
installments on the same schedule that the COBRA premiums would otherwise have been paid and shall be equal to the amount that
the Company would have otherwise paid for COBRA premiums, and shall be paid until the earlier of (i) expiration of the twelve
(12)-month period following Executive’s Involuntary Termination or (ii) the date when Executive becomes eligible for substantially
equivalent health insurance coverage in connection with new employment or self-employment.


 




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(iv)
The vesting and exercisability of all outstanding stock options, restricted stock units, performance stock units or other
equity awards to purchase the Company’s common stock (the “Equity Awards”) that are held by Executive
as of immediately prior to the Involuntary Termination and subject to time-based vesting, shall be accelerated as if Executive
had completed an additional eighteen (18) months of service with the Company as of the date of such Involuntary Termination. With
respect to Equity Awards subject to vesting or vesting acceleration based on specified performance goals, including the Performance
Award, such awards shall remain eligible to vest pursuant to their terms for the eighteen (18) months following Executive’s
Involuntary Termination, provided that, with respect to the Performance Award (1) such eighteen (18) month period shall be shortened
and not extend beyond the day before the five (5) year anniversary of the Effective Date and (2) this Section 11.2(iv) shall not
apply if the Involuntary Termination occurs within the thirty (30) days prior to the five (5) year anniversary of the Effective
Date. In addition, with respect to stock options, Executive shall receive an extension of the period of time following which Executive
may exercise vested shares subject to Executive’s stock options to purchase Company common stock that are outstanding immediately
prior to Executive’s Involuntary Termination until the date that is the earlier of (i) the original Expiration Date (as
defined in the respective option agreements for such options) and (ii) eighteen (18) months following the date of Involuntary
Termination. This subsection shall supersede the terms of any individual Equity Award agreements between Executive and the Company,
except to the extent any such individual Equity Award agreement provides more favorable treatment of such awards for Executive
under the circumstances described herein.


 


11.3
Involuntary Termination in Connection with a Change in Control. In addition to the benefits set forth in above,
if Executive incurs an Involuntary Termination within one (1) month prior to and twelve (12) months following a Change in Control,
Executive shall be entitled to the benefits set forth in Section 11.2 above, except that:


 


(i)
the payment described in Section 11.2(i) shall be calculated based on eighteen (18) months of Base Salary, rather than twelve
(12) months of Base Salary;


 


(ii)
the COBRA benefits described in Section 11.2(iii) shall be paid for up to eighteen (18) months following the Involuntary Termination,
rather than twelve (12) months; and


 


(iii)
the vesting of all of Executive’s outstanding Equity Awards that are subject to time-based vesting shall accelerate
in full such that all such Equity Awards shall be deemed fully vested as of the date of such Involuntary Termination and Executive’s
outstanding Equity Awards subject to vesting or vesting acceleration based on specified performance goals, including the Performance
Award, shall accelerate in full based on greater of (x) actual performance as of such time or (y) target performance.


 


For
the avoidance of doubt, in no event shall Executive receive benefits under both this Section 11.3 and Section 11.2; in the event
of an Involuntary Termination that occurs within the one (1) month prior to a Change in Control, Executive shall receive the benefits
under this Section 11.3 in lieu of the benefits under Section 11.2.


 




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11.4
Conditions for Severance Benefits. The severance benefits set forth in Section 11.2 and 11.3 above are expressly conditioned
upon Executive signing and not revoking a general release of legal claims in the form attached hereto as Exhibit
D (the “Release”) within the applicable deadline set forth therein and permitting the Release
to become effective in accordance with its terms, which must occur no later than thirty (30) days following the date of termination.


 


11.5
Definitions. For purposes of this Agreement:


 


(i)
“Cause” means: (1) Executive’s conviction, or guilty or no contest plea, regarding any non-automotive
felony; (2) act of fraud by Executive related to or connected with Executive’s employment by the Company or otherwise likely
to cause material harm to the Company or its reputation; (3) Executive’s material breach of his fiduciary duty to the Company
which causes material harm to the Company or its reputation; (4) Executive’s gross negligence or gross misconduct in the
performance of duties reasonably and legally assigned to Executive that causes material harm to the Company or its reputation;
(5) willful and material violation by Executive of the Company’s codes of conduct or other written rules or written policies
of the Company, which causes material harm to the Company or its reputation; (6) entry of any final court order or other final
ruling that prevents Executive from performing his material duties and responsibilities hereunder; or (7) willful and material
breach of this Agreement by Executive which causes material harm to the Company or its reputation, provided, however, that with
respect to subsection (4), (5) and (7) the Board or its representative shall have delivered a written demand to Executive specifically
identifying the manner in which the Executive has violated the Company’s codes of conduct or other rules or policies, engaged
in negligence or misconduct or breached this Agreement, as applicable, and Executive has failed to cure such violation within
thirty (30) days after receiving such notice, to the extent that such violation is susceptible to cure.


 


(ii)
“Disabled” has the meaning specified in the Company’s long-term disability plan applicable
to Executive at the time of Executive’s disability or, if no such long-term disability plan exists, such term shall mean
a total and permanent disability as defined in Section 22(e)(3) of the Code (as defined below in Section 11.6).


 


(iii)
“Good Reason” means, without Executive’s prior written consent: (1) material diminution in
Executive’s responsibilities, authority, or duties (including a requirement that Executive report to a corporate officer
or employee instead of directly to the Board); (2) material reduction in Executive’s Base Salary (unless reduction is part
of an across the board uniformly applied reduction); (3) relocation of Executive’s principal place of employment with the
Company, fifty (50) miles or more from San Diego, California, and such relocation results in an increase in Executive’s
one-way driving distance by more than fifty (50) miles; or (4) a material breach of this Agreement by the Company; provided, however,
that before Executive may resign for Good Reason, Executive must provide the Company with written notice of the condition that
could constitute a “Good Reason” Event within ninety (90) days of the initial existence of such condition and such
condition must not have been remedied by the Company within thirty (30) days (the “Cure Period”) of
such written notice and Executive must resign from employment effective no later than ninety (90) days after the expiration of
the Cure Period. Executive’s continued employment from the date of notice through the date of timely resignation described
in the preceding sentence shall not constitute consent to, or wavier of rights with respect to, any act or failure to act constituting
Good Reason hereunder.


 




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12.
Section 409A. It is intended that all of the benefits and other payments payable under this Agreement satisfy, to the greatest
extent possible, an exemption from the application of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”)
and the regulations and other guidance thereunder and any state law of similar effect (collectively “Section
409A”), and this Agreement will be construed to the greatest extent possible as consistent with those provisions,
and to the extent no so exempt, this Agreement (and any definitions hereunder) will be construed in a manner that complies with
Section 409A, and any ambiguities herein shall be interpreted accordingly. Specifically, the benefits under this Agreement are
intended to satisfy the exemptions from application of Section 409A provided under Treasury Regulations Sections 1.409A-1(b)(4),
1.409A-1(b)(5) and 1.409A-1(b)(9) and each installment of severance benefits, if any, is a separate “payment” for
purposes of Treasury Regulations Section 1.409A-2(b)(2)(i). However, if such exemptions are not available and Executive is, upon
Separation from Service, a “specified employee” for purposes of Section 409A, then, solely to the extent necessary
to avoid adverse personal tax consequences under Section 409A, the timing of the severance benefits payments shall be delayed
until the earlier of (i) six (6) months and one day after Executive’s Separation from Service, or (ii) Executive’s
death. Severance benefits shall not commence until Executive has a Separation from Service. If the severance benefits are not
covered by one or more exemptions from the application of Section 409A and the Release could become effective in the calendar
year following the calendar year in which Executive’s Separation from Service occurs, the Release will not be deemed effective,
for purposes of payment of severance, any earlier than the first day of the second calendar year. Except to the minimum extent
that payments must be delayed because Executive is a “specified employee” or until the effectiveness of the Release,
all severance amounts will be paid as soon as practicable in accordance with this Agreement and the Company’s normal payroll
practices.


 


13.
Section 280G. 


 


(i)
If any payment or benefit Executive would receive from the Company or otherwise in connection with a change in control of
the Company or other similar transaction (“Payment”) would (1) constitute a “parachute payment”
within the meaning of Section 280G of the Code, and (2) but for this sentence, be subject to the excise tax imposed by Section
4999 of the Code (the “Excise Tax”), then such Payment will be equal to the Reduced Amount. The “Reduced
Amount” will be either (x) the largest portion of the Payment that would result in no portion of the Payment being
subject to the Excise Tax, or (y) the largest portion, up to and including the total, of the Payment, whichever amount ((x) or
(y)), after taking into account all applicable federal, state and local employment taxes, income taxes, and the Excise Tax (all
computed at the highest applicable marginal rate), results in Executive’s receipt, on an after-tax basis, of the greater
amount of the Payment notwithstanding that all or some portion of the Payment may be subject to the Excise Tax. If a reduction
in payments or benefits constituting “parachute payments” is necessary so that the Payment equals the Reduced Amount,
reduction will occur in the manner (the “Reduction Method”) that results in the greatest economic benefit
for Executive. If more than one method of reduction will result in the same economic benefit, the items so reduced will be reduced
pro rata (the “Pro Rata Reduction Method”).


 


(ii)
Notwithstanding the foregoing, if the Reduction Method or the Pro Rata Reduction Method would result in any portion of the
Payment being subject to taxes pursuant to Code Section 409A that would not otherwise be subject to taxes pursuant to Code Section
409A, then the Reduction Method and/or the Pro Rata Reduction Method, as the case may be, shall be modified so as to avoid the
imposition of taxes pursuant to Code Section 409A as follows: (A) as a first priority, the modification shall preserve to the
greatest extent possible, the greatest economic benefit for Executive as determined on an after-tax basis; (B) as a second priority,
Payments that are contingent on future events (e.g., being terminated without cause), shall be reduced (or eliminated) before
Payments that are not contingent on future events; and (C) as a third priority, Payments that are “deferred compensation”
within the meaning of Code Section 409A shall be reduced (or eliminated) before Payments that are not deferred compensation within
the meaning of Code Section 409A.


 




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(iii)
The independent registered public accounting firm engaged by the Company for general audit purposes as of the day prior to
the effective date of the event described in Section 280G(b)(2)(A)(i) of the Code will perform the foregoing calculations. If
the independent registered public accounting firm so engaged by the Company is serving as accountant or auditor for the individual,
entity or group effecting the change in control or similar transaction, the Company will appoint a nationally recognized independent
registered public accounting firm to make the determinations required hereunder. The Company will bear all expenses with respect
to the determinations by such independent registered public accounting firm required to be made hereunder. The independent registered
public accounting firm engaged to make the determinations hereunder will make its determination with input from Executive (or
his counsel) and provide its calculations, together with detailed supporting documentation, to the Company and Executive within
fifteen (15) calendar days after the date on which Executive’s right to a Payment is triggered (if requested at that time
by the Company or Executive) or such other time as reasonably requested by the Company or Executive.


 


14.
Restrictive Covenants.


 


14.1
Confidentiality. During Executive’s employment hereunder, Executive shall not use or disclose to any individual
or entity any Confidential Information except (A) in the performance of Executive’s duties for the Company, (B) as authorized
in writing by the Company, or (C) as required by law, so long as prior written notice of such required disclosure is delivered
to the Company and all reasonable efforts to preserve the confidentiality of such information shall be made. “Confidential
Information” means all secret or confidential information, knowledge, or data relating to the Company and all of
its subsidiaries, partnerships, joint ventures, limited liability companies, and other affiliates (the “Company Group”)
(including, without limitation, any proprietary and not publicly available information concerning any processes, methods, trade
secrets, intellectual property, research secret data, costs, names of users or purchasers of their respective products or services,
business methods, operating or manufacturing procedures, or programs or methods of promotion and sale) that Executive has obtained
or obtains during Executive’s employment hereunder and that is not common knowledge in the industry or otherwise legally
in the public domain (other than as a result of Executive’s violation of this Section 14.1).


 


14.2
No Conflict of Interest. During Executive’s employment hereunder, Executive shall not engage in any work, paid
or unpaid, that creates an actual conflict of interest with the Company Group. Such work shall include, but is not limited to,
directly or indirectly competing with the Company Group in any way, or acting as an officer, director, employee, consultant, stockholder,
volunteer, lender, or agent of any business enterprise of the same nature as, or which is in direct competition with, the business
in which the Company Group is now engaged or in which the Company Group becomes engaged during Executive’s employment hereunder.
If the Company reasonably determines such a conflict exists during Executive’s employment hereunder, the Company may ask
Executive to choose to discontinue the other work or resign employment with Company without Good Reason. In addition, Executive
agrees not to refer any client or potential client of the Company Group to competitors of the Company Group, without obtaining
Company’s prior written consent, during the Executive’s employment with the Company.


 


14.3
Non-Solicitation. Executive understands and agrees that significant information regarding the Company Group’s
employees and customers is treated as confidential and constitutes trade secrets. As such, during Executive’s employment
hereunder and for a period of one (1) year thereafter, Executive agrees not to, directly or indirectly, separately or in association
with others, intentionally use any Confidential Information to materially interfere in a harmful way with, materially impair or
materially damage the Company Group’s relationship with any of its customers or prospective customers whose identity Executive
learned about during employment with the Company hereunder. During Executive’s employment with the Company and for a period
of one (1) year thereafter, Executive further agrees not to, directly or indirectly, separately or in association with others,
materially damages the Company Group’s relationships with its employees by soliciting such employees to leave the employ
of the Company Group.


 




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14.4
Non-Disparagement. During and for the one (1) year period after termination of Executive’s employment hereunder,
Executive shall not make any voluntary statements, written or oral, or cause or encourage others to make any such statements that
defame, or materially disparage the personal and/or business reputations, practices or conduct of the Company Group, as well as
Company Group’s officers or directors and, during and for the one (1) year period following Executive’s termination
of employment hereunder, the Company Group shall direct its officers and directors not to make any voluntary statements, written
or oral, or cause or encourage others to make any such statements that defame or materially disparage Executive’s personal
and/or business reputation, practice or conduct; provided that the parties may respond accurately and fully to any question,
inquiry or request for information when required by legal process (e.g., a valid subpoena or other similar compulsion of
law) or as part of a government investigation.


 


14.5
Inventions. All plans, discoveries and improvements, whether patentable or unpatentable, made or devised by Executive,
whether alone or jointly with others, from the Effective Date and continuing until the end of any period during which Executive
is employed by the Company Group, relating or pertaining in any way to Executive’s employment with or the business of the
Company Group (each, an “Invention”), shall be promptly disclosed in writing to the Secretary of the
Company and are hereby transferred to and shall redound to the benefit of the Company and shall become and remain its sole and
exclusive property. Executive agrees to execute any assignment to the Company or its nominee, of Executive’s entire right,
title and interest in and to any Invention and to execute any other instruments and documents requisite or desirable in applying
for and obtaining patents, trademarks or copyrights, at the expense of the Company, with respect thereto in the United States
and in all foreign countries, that may be required by the Company. Executive further agrees, during and after termination of employment
hereunder, to reasonably cooperate to the extent and in the manner required by the Company, in the prosecution or defense of any
patent or copyright claims or any litigation, or other proceeding involving any trade secrets, processes, discoveries or improvements
covered by this covenant, but all necessary expenses thereof shall be paid by the Company. This Section 14.5 does not apply to
an Invention which qualifies fully as a nonassignable invention under the provisions of section 2870 of the California Labor Code.
Executive has reviewed the Limited Exclusion Notification attached as Exhibit E
and agrees that Executive’s signature acknowledges receipt of the notification. However, Executive agrees to disclose promptly
in writing to Company all innovations (including Inventions) conceived, reduced to practice, created, derived, developed, or made
by Executive during the term of employment and for three months thereafter, whether or not Executive believes such innovations
are subject to this Section 14.5, to permit a determination by Company as to whether or not the innovations should be the property
of Company. Any such information shall be received in confidence by Company.


 


14.6
Acknowledgment and Enforcement. Executive acknowledges and agrees that (i) the purpose of the foregoing covenants is
to protect the goodwill, trade secrets, and Confidential Information of the Company Group; (ii) because of the nature of the business
in which the Company Group is engaged and because of the nature of the Confidential Information to which Executive has access,
the Company Group would suffer irreparable harm and it would be impractical and excessively difficult to determine the actual
damages of the Company Group in the event Executive breached any of the covenants of this Section 14; and (iii) remedies at law
(such as monetary damages) for any breach of Executive’s obligations under this Section 14 would be inadequate. Executive
therefore agrees and consents that (I) if Executive commits any breach of the covenant under Section 14.2 and the Company does
not ask Executive to choose to discontinue the other work, or (II) if Executive commits any breach of a covenant under this Section
14 or threatens to commit any such breach at any time, the Company shall have the right (in addition to, and not in lieu of, any
other right or that may be available to it) to seek temporary and permanent injunctive relief from a court of competent jurisdiction.


 




    	 	9.	 



    	 	 	 



    

 


14.7
Effect of Termination of Employment. The period of Executive’s employment for purposes of determining the applicability
of the restrictions contained in Section 14 of this Agreement shall include any period during which Executive is employed by the
Company’s successors or assigns. Upon termination of employment, as defined herein and for whatever cause, Executive shall
promptly deliver to the Company or its successors or assigns, as soon as reasonably practicable, all Company property, including
without limitation all Confidential Information as defined above. Notwithstanding the foregoing, the Company agrees that Executive
may retain possession of Executive’s personal emails and personal files or data, if applicable, that reside on or are stored
in any Company email account or server (whether maintained by the Company or a third party); provided that Executive acknowledges
and agrees that the Company shall have the right to appoint qualified personnel to provide technical assistance and work with
Executive in the performance of this function. Additionally, within the first forty-eight (48) hours following Executive’s
employment termination, the Company agrees to instruct the Company’s Director of Human Resources (or a qualified delegate)
to cooperate with Executive to ensure that Executive’s personal effects and property are promptly removed and returned to
Executive.


 


15.
Cooperation Following Termination of Employment. Executive agrees that, for one (1) year following termination of employment
for any reason, Executive shall assist and cooperate with the Company with regard to any matter or project in which Executive
was involved during the Executive’s employment hereunder, including but not limited to any litigation that may be pending
or arise after such termination of employment. Further, Executive agrees to notify the Company at the earliest reasonable opportunity
of any contact that is made by any third parties concerning any such matter or project. The Company shall not unreasonably request
such cooperation of Executive and shall cooperate with Executive in scheduling any assistance by Executive taking into account
and not unreasonably interfering with Executive’s business and personal affairs and shall reasonably compensate Executive
for any time spent or expenses associated with such cooperation and assistance.


 


16.
Arbitration. The Company and Executive agree to attempt to resolve any dispute between them quickly and fairly. Any dispute
related to this Agreement which remains unresolved shall be resolved exclusively by final and binding arbitration conducted in
San Diego, California, pursuant to the then-current rules of the American Arbitration Association with respect to employment disputes.
The Company shall bear any and all costs of the arbitration process plus, if Executive prevails on any issues raised, any attorneys’
fees and costs incurred by Executive with regard to such issues or as otherwise permitted by applicable law.


 


17.
General Provisions.


 


17.1
Notices. Any notices provided must be in writing and will be deemed effective upon the earlier of personal delivery
(including personal delivery by fax) or the next day after sending by overnight carrier, to the Company at its primary office
location and to Executive at the address as listed on the Company payroll.


 


17.2
Severability. Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective
and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any
respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect
any other provision or any other jurisdiction, but this Agreement will be reformed, construed and enforced in such jurisdiction
to the extent possible in keeping with the intent of the Company and Executive.


 




    	 	10.	 



    	 	 	 



    

 


17.3
Waiver. Any waiver of any breach of any provisions of this Agreement must be in writing to be effective, and it shall
not thereby be deemed to have waived any preceding or succeeding breach of the same or any other provision of this Agreement.


 


17.4
Complete Agreement. This Agreement (including the attachments to this Agreement), together with the Proprietary Agreement,
constitutes the entire agreement between Executive and the Company with regard to the subject matter hereof and is the complete,
final, and exclusive embodiment of the Company’s and Executive’s agreement with regard to this subject matter, except
that this Agreement does not supersede the Indemnification Agreement and, except as otherwise provided herein, the Equity Awards
previously granted to Executive that are outstanding as of the Effective Date. This Agreement is entered into without reliance
on any promise or representation, written or oral, other than those expressly contained herein, and it supersedes any other such
promises, warranties or representations (including but not limited to the Prior Agreement). It cannot be modified or amended except
in a writing signed by an independent member of the Board, with the exception of those changes expressly reserved to the Company’s
discretion in this Agreement.


 


17.5
Counterparts. This Agreement may be executed in separate counterparts, any one of which need not contain signatures
of more than one party, but both of which taken together will constitute one and the same Agreement.


 


17.6
Headings. The headings of the paragraphs hereof are inserted for convenience only and shall not be deemed to constitute
a part hereof nor to affect the meaning thereof.


 


17.7
Binding on Successors. This Agreement shall be binding upon and inure to the benefit of the Company, Executive and
their respective successors, assigns, personnel and legal representatives, executors, administrators, heirs, distributees, devisees,
and legatees, as applicable. The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation
or otherwise) to all or substantially all of the business and/or stock or assets of the Company to assume expressly and agree
to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no succession
had taken place if such assumption does not occur as a matter of law.


 


17.8
Tax Withholding. All payments and awards contemplated or made pursuant to this Agreement will be subject to
withholdings of applicable taxes in compliance with all relevant laws and regulations of all appropriate government authorities.


 


17.9
Choice of Law. All questions concerning the construction, validity and interpretation of this Agreement will be governed
by the laws of the State of California.


 




    	 	11.	 



    	 	 	 



    

 


In
Witness Whereof, the Parties have executed
this Agreement on the day and year first written above.


 


	 	Imprimis
    Pharmaceuticals, Inc.
	 	 
	 	By:	/s/
    Robert J. Kammer
	 	 	Robert
    J. Kammer
	 	 	Director
	 	 
	 	Executive
	 	 
	 	/s/
    Mark L. Baum
	 	Mark
    L. Baum


 




    	 	12.	 



    	 	 	 



    

 


Exhibit
A


 


Stock
Option Agreement


 




    	 	 	 



    	 	 	 



    

 


Exhibit
B


 


Performance
Stock Units Agreement


 




    	 	 	 



    	 	 	 



    

 


Exhibit
C


 


Retention
Agreement


 




    	 	 	 



    	 	 	 



    

 


Exhibit
D


 


Release


 


This
RELEASE AGREEMENT by and between Imprimis Pharmaceuticals, Inc. (the “Company”) and __________ (the “Executive”)
is dated as of the ____ day of ________ , 201_ (the “Release”).


 


Release


 


Executive
hereby releases the Company and any of its predecessors, successors or assigns to all or any part of its businesses (“Imprimis”)
by execution of this Release from any and all claims and causes of action related in any way to the transactions or occurrences
between them to date, to the fullest extent permitted by law, including, but not limited to, Executive’s employment with
Imprimis, the termination of Executive’s employment, and all other losses, liabilities, claims, charges, demands and causes
of action, whether known or unknown, as of the date of Executive’s execution of this Release with the exception of any unemployment
compensation claim Executive may have and any other claims that cannot be waived by law. Executive agrees that this Release applies
to all officers, directors, employees and other representatives of Imprimis and its affiliates and any of its predecessors, successors
or assigns to all or any part of its businesses including the Company, both individually and in their respective capacities (collectively
with Imprimis, the “Releasees”). This Release is intended to have the broadest possible application permitted by law
and includes, but is not limited to any tort, contract, common law, constitutional or other statutory claims, including, but not
limited to, alleged violations of Imprimis’ policies or practices; Title VII of the Civil Rights Act of 1964, the Americans
with Disabilities Act, other federal and state fair employment practices or discrimination laws; laws pertaining to breach of
employment contract or wrongful termination; age discrimination claims under the Age Discrimination and Employment Act, 29 U.S.C.
Section 621 et seq., the Uniformed Services Employment and Reemployment Rights Act, 38 U.S.C. Section 4301 et seq.; the Worker
Adjustment and Retraining Notification Act, 29 U.S.C. Section 2101 et seq. and any applicable state laws of similar intent.


 


In
addition, Executive agrees that Executive will not initiate, bring, or prosecute any suit, action or grievance against any of
the Releasees for any released claim in any federal, state, county or municipal court, or any arbitral forum, except as specifically
stated below. Executive further agree that if Executive does so, Executive will be liable for the payment of all damages and costs,
including attorneys’ fees, incurred by any of the Releasees in connection with Executive’s suit, action, or grievance.
Executive also waives any right to any relief sought in connection with such claims, including any right to damages, attorneys’
fees, costs, and all other legal or equitable relief.


 


This
Release and agreement not to sue does not prohibit Executive from pursuing a lawsuit, claim, or charge to challenge the validity
or enforceability of this Release under the Age Discrimination in Employment Act (“ADEA”) or the Older Workers Benefit
Protection Act (“OWBPA”), nor does it render Executive liable for damages or costs, including attorneys’ fees,
incurred by the Releasees in connection with a lawsuit, claim, or charge to challenge the validity or enforceability of this Release
under the ADEA or the OWBPA. This Release and agreement not to sue also does not prohibit Executive from filing charges with government
agencies or participating in any investigation resulting from such charges. However, under this Release, Executive agrees not
to accept any monetary or personal relief or remedy, including but not limited to back pay, front pay, or reinstatement, or damages
of any nature that may be awarded to Executive in connection with such charges. In addition, this general release is not intended
to bar any claims that may not be waived by law, such as claims for workers’ compensation benefits, unemployment benefits
or statutory indemnity, if applicable.


 




    	 	 	 



    	 	 	 



    

 


Notwithstanding
anything to the contrary in this Release, this Release does not apply to any claims arising after Executive’s execution
of this Release, enforcement of Executive’s rights to payments or benefits due or rights enforceable after the execution
of this Release under the Employment Agreement dated __________, ____ between Executive and the Company (the “Employment
Agreement”), claims under any of the Company’s employee benefit plans or any rights Executive may have for indemnification
under Imprimis’ By-Laws, Certificate of Incorporation, applicable law, or any indemnification agreement, or any rights as
an insured under Imprimis’ D&O insurance policies, as in effect from time to time.


 


Complete
Release


 


Executive
also expressly agrees that Executive has read, understands, and intends to waive any and all rights or benefits described in Section
1542 of the California Civil Code, which provides as follows:


 


“A
general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time
of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.”


 


Thus,
notwithstanding the provisions of Section 1542, and for the express purpose of implementing a full and complete release and discharge
of Imprimis and the Releasees , Executive expressly acknowledges that this Release is intended to include within its effect, without
limitation, all claims Executive does not know or suspect to exist in Executive’s favor at the time of execution of this
Release, and this Release contemplates the extinguishment of any such claim(s).


 


Review
of Release


 


Executive
agrees and represents that Executive has been advised of and fully understands the right to discuss all aspects of this Release
with an attorney of Executive’s choice. Executive’s execution of this Release establishes that, if Executive wishes
the advice of an attorney, Executive has sought such advice by the date Executive signed this Release, and that Executive was
given at least 21 days to consider whether or not to sign. Executive may sign this Release before the end of the 21-day period
and Executive agrees that if Executive decides to shorten this time period for signing, Executive’s decision was knowing
and voluntary. Executive agrees that a change to the Release, whether material or immaterial, does not restart the running of
said period.


 


Executive
will have seven days from the date that Executive signs this Release to revoke the Release and to change Executive’s mind,
in which case this Release shall be ineffective and of no legal force. If Executive so revokes this Release, there will be no
obligation on the part of Imprimis to provide Executive with any of the severance benefits described in the Employment Agreement
and Executive agrees to repay to Imprimis any such severance benefits previously paid or provided to Executive. Executive’s
revocation must be in writing and received by Imprimis’ Executive Vice President, Human Resources on the seventh day in
order to be effective. If Executive does not revoke acceptance within the seven (7) day period, Executive’s acceptance of
this Release shall become binding and enforceable on the eighth day (“Effective Date”).


 


General
Provisions


 


Executive
and the Company agree to comply with their respective continuing obligations set forth in the surviving provisions of the Employment
Agreement signed by Executive.


 


By
entering into this Release, the Company makes no admission that it has engaged, or is now engaging, in any unlawful conduct. The
parties understand and acknowledge that this Release is not an admission of liability and shall not be used or construed as such
in any legal or administrative proceeding.


 




    	 	 	 



    	 	 	 



    

 


In
the event any provision of this Release shall be found unenforceable, the unenforceable provision shall be deemed deleted and
the validity and enforceability of the remaining provisions shall not be affected thereby.


 


This
Release may be pled as a full and complete defense to, and may be used as a basis for an injunction against, any action, suit
or other proceeding that may be prosecuted, instituted or attempted by Executive in breach hereof.


 


The
validity, interpretation and performance of this Release shall be construed and interpreted according to the laws of the United
States of America and the state in which Executive is employed.


 


This
Release, including the surviving provisions of Executive’s Employment Agreement, is intended to be the entire agreement
between the parties and supersedes and cancels any and all other and prior agreements, written or oral, between the parties regarding
this subject matter. This Release may be amended only by a written instrument executed by all parties hereto.


 


[Signatures
follow.]


 




    	 	 	 



    	 	 	 



    

 


IN
WITNESS WHEREOF, Executive has hereunto set Executive’s hand and the Company has caused this Release to be executed in its
name on its behalf, all as of the day and year first above written.


 





		 
	Executive 	 





 


	 	 
	Date	 
	 	 
	IMPRIMIS
    PHARMACEUTICALS, INC.	 



 


	By:	 	 
	 	 	 
	Name:	 	 
	 	 	 
	Title:	 	 
	 	 	 
	Date:	 	 


   




    	 	 	 



    	 	 	 



    

 


Exhibit
E


 


Limited
Exclusion Notification


 


THIS
IS TO NOTIFY you in accordance with Section 2872 of the California Labor Code that the foregoing Agreement between you and Imprimis
Pharmaceuticals, Inc., a Delaware corporation (the “Company”) does not require you to assign or offer to assign to
the Company any invention that you developed entirely on your own time without using the Company’s equipment, supplies,
facilities or trade secret information except for those inventions that either:


 


(1)
Relate at the time of conception or reduction to practice of the invention to the Company’s business, or actual or demonstrably
anticipated research or development of the Company; or


 


(2)
Result from any work performed by you for the Company.


 


To
the extent a provision in the Employment Agreement, dated _____________, between you and the Company purports to require you to
assign an invention otherwise excluded from the preceding paragraph, the provision is against the public policy of this state
and is unenforceable.


 


This
limited exclusion does not apply to any patent or invention covered by a contract between the Company and the United States or
any of its agencies requiring full title to such patent or invention to be in the United States.


 


I
ACKNOWLEDGE RECEIPT of a copy of this notification.


 


	By:	 
	 	 
	 	 
	 	 
	Print
    Employee’s Name	 
	 	 
	 	 
	Date	 
	 	 
	Witnessed
    by:	 
	 	 
	 	 
	Company
    Representative’s Name and Position	 
	 	 
	Dated: