Exhibit 10.1


 





EMPLOYMENT
AGREEMENT


 


This Employment Agreement (“Agreement”)
is entered into between Vericel Corporation, a Michigan corporation (the “Company”) and Joseph A. Mara (the “Executive”),
effective as of January 25, 2021, unless another date is agreed to by the Executive and the Company (the “Effective Date”).


 


WHEREAS, the Company and the Executive previously
entered into that certain offer letter dated as of December 18, 2020 (the “Offer Letter”), and both parties desire
to supersede and replace the terms set forth in the Offer Letter with the terms set forth herein;


 


WHEREAS, in connection with the Offer Letter,
and as a material condition of Executive’s employment, the Executive entered into an Employee Confidentiality, Assignment
and Noncompetition Agreement dated December 21, 2020 (the “Restrictive Covenant Agreement”) the terms of which shall
remain in full force and effect; and


 


WHEREAS, the Company desires to employ the
Executive and the Executive desires to be employed by the Company on the terms contained herein.


 


NOW, THEREFORE, in consideration of the
mutual covenants and agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the parties agree as follows:


 


1.                 
Position and Duties. The Executive’s employment with the Company will commence on the Effective Date. The Executive
shall serve as Chief Financial Officer of the Company and shall have such powers and duties as may from time to time be prescribed
by the Chief Executive Officer of the Company (the “CEO”) or other authorized executive. The Executive shall devote
his full working time and efforts to the business and affairs of the Company. Notwithstanding the foregoing, the Executive may
engage in religious, charitable or other community activities as long as such services and activities are disclosed to the CEO
and do not interfere with the Executive’s performance of his duties to the Company as provided in this Agreement.


 


2.                 
Compensation and Related Matters.


 


(a)              
Base Salary. The Executive’s initial annual base salary rate shall be $415,000. The Executive’s base
salary may be redetermined by the Company’s Compensation Committee, after consultation with the CEO. The base salary in effect
at any given time is referred to herein as “Base Salary.” The Base Salary shall be payable in a manner that is consistent
with the Company’s usual payroll practices for senior executives.


 


(b)               Incentive
Compensation. The Executive shall be eligible to receive cash incentive compensation as determined by the Company’s
Compensation Committee from time to time. The Executive’s target annual incentive compensation shall be Fifty Percent
(50%) of his Base Salary, and the actual bonus amount shall be determined by the Company’s Compensation Committee. Any
bonus for 2021 shall be prorated based on the Effective Date. The target annual incentive compensation in effect at any given
time is referred to herein as “Target Bonus.” The Target Bonus may be redetermined by the Company’s
Compensation Committee. To be eligible for incentive compensation, the Executive must be employed by the Company on the day
such incentive compensation is paid.


 






     


     


    

 


(c)              
Sign-On Bonus. The Company will pay the Executive a one-time sign-on bonus in the gross amount of $50,000, less applicable
taxes and withholdings (the “Sign-On Bonus”), to be paid at the time the Company’s other executives receive their
2020 bonuses, which shall be no later than March 31, 2021, provided that the Executive is employed by the Company on the payment
date. If within 12 months after the Effective Date, the Company terminates the Executive’s employment for Cause (as defined
below) or the Executive resigns other than for Good Reason (as defined below), then the Executive will repay the Company a pro-rata
portion of the Sign-On Bonus based on the number of months remaining until the first anniversary of the Effective Date, with such
payment to be made within 10 days following the Date of Termination (as defined below).


 


(d)              
Equity Compensation. In connection with the commencement of the Executive’s employment, he will be granted
(i) an initial equity grant in the form of an option to purchase 160,000 shares of the Company’s common stock, which shall
vest in accordance with and be subject to the terms and conditions of the underlying stock option agreement and the Company’s
2019 Omnibus Incentive Plan, as may be amended or restated from time to time (the “Plan”), and (ii) 16,000 restricted
stock units, which shall vest in accordance with and be subject to the terms and conditions of a restricted stock unit agreement
approved by the Company’s Compensation Committee on January 4, 2021, and the Plan (the Plan and any award agreements collectively
the “Equity Documents”). From time to time and at the discretion of the Company’s Compensation Committee, the
Company may grant to the Executive equity compensation, including options to purchase shares of the Company’s common stock
at an exercise price equal to the fair market value of the Company’s common stock on the effective date of grant and subject
to the Equity Documents.


 


(e)              
Expenses. The Executive shall be entitled to receive prompt reimbursement for all reasonable business expenses incurred
by him in performing services hereunder, in accordance with the policies and procedures then in effect and established by the Company
for its senior executive officers.


 


(f)               
Customary Fringe Benefits. The Executive shall be entitled to such fringe benefits as the Company customarily makes
available to the Company’s senior executives (collectively, “Fringe Benefits”). The Fringe Benefits shall include
sick leave, health insurance coverage, and 401(k) plan participation, in accordance with the terms and provisions of such plans,
policies and arrangements as adopted by the Company from time to time during the term of this Agreement. The Company reserves the
right to change the Fringe Benefits on a prospective basis, at any time, effective upon delivery of written notice to the Executive.
The Executive shall not be entitled to receive payments in lieu of Fringe Benefits, other than for any accrued but unused vacation
at the time the employment relationship terminates.


 


(g)               Paid
Time Off. The Executive is entitled to accrue 16.67 hours per month, equaling twenty-five (25) days per year, of paid
time off (including statutory sick leave), pro-rated for any partial calendar year during the term of this Agreement, in
accordance with the Company’s current Paid Time Off policy (“Paid Time Off”). The Executive also shall be
entitled to such paid holidays as are established by the Company for all regular full-time employees. The Company reserves
the right to change its Fringe Benefits and time off policies in its discretion.


 






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3.                 
Termination. The Executive’s employment hereunder may be terminated without any breach of this Agreement under
the following circumstances:


 


(a)              
Death. The Executive’s employment hereunder shall terminate upon his death.


 


(b)              
Disability. The Company may terminate the Executive’s employment if he is disabled and unable to perform the
essential functions of the Executive’s then existing position or positions under this Agreement with or without reasonable
accommodation for a period of 180 days (which need not be consecutive) in any 12-month period. If any question shall arise as to
whether during any period the Executive is disabled so as to be unable to perform the essential functions of the Executive’s
then existing position or positions with or without reasonable accommodation, the Executive may, and at the request of the Company
shall, submit to the Company a certification in reasonable detail by a physician selected by the Company to whom the Executive
or the Executive’s guardian has no reasonable objection as to whether the Executive is so disabled or how long such disability
is expected to continue, and such certification shall for the purposes of this Agreement be conclusive of the issue. The Executive
shall cooperate with any reasonable request of the physician in connection with such certification. If such question shall arise
and the Executive shall fail to submit such certification, the Company’s determination of such issue shall be binding on
the Executive. Nothing in this Section 3(b) shall be construed to waive the Executive’s rights, if any, under existing law
including, without limitation, the Family and Medical Leave Act of 1993, 29 U.S.C. §2601 et seq. and the Americans
with Disabilities Act, 42 U.S.C. §12101 et seq.


 


(c)               Termination
by Company for Cause. The Company may terminate the Executive’s employment hereunder for Cause. For purposes of
this Agreement, “Cause” shall mean: (i) conduct by the Executive constituting a material act of misconduct in
connection with the performance of his duties, including, without limitation, misappropriation of funds or property of the
Company or any of its subsidiaries or affiliates other than the occasional, customary and de minimis use of Company property
for personal purposes; (ii) the commission by the Executive of any felony or a misdemeanor involving moral turpitude, deceit,
dishonesty or fraud, or any conduct by the Executive that would reasonably be expected to result in material injury or
reputational harm to the Company or any of its subsidiaries and affiliates if he were retained in his position; (iii)
continued non-performance by the Executive of his duties hereunder (other than by reason of the Executive’s physical or
mental illness, incapacity or disability) which has continued for more than 15 days following written notice from the CEO (or
the CEO’s designee); (iv) a breach by the Executive of any of the provisions contained in Section 7 of this Agreement
or the Restrictive Covenant Agreement (as defined above); (v) a material violation by the Executive of the Company’s
written employment policies, or (vi) failure to cooperate with a bona fide internal investigation or an investigation by
regulatory or law enforcement authorities, after being instructed by the Company to cooperate, or the willful destruction or
failure to preserve documents or other materials known to be relevant to such investigation or the inducement of others to
fail to cooperate or to produce documents or other materials in connection with such investigation. Any determination of
Cause by the Company shall be conclusive.


 






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(d)              
Termination by the Company without Cause. The Company may terminate the Executive’s employment hereunder at
any time without Cause. Any termination by the Company of the Executive’s employment under this Agreement which does not
constitute a termination for Cause under Section 3(c) and does not result from the death or Disability of the Executive under Section
3(a) or (b) shall be deemed a termination without Cause.


 


(e)              
Termination by the Executive. The Executive may terminate his employment hereunder at any time for any reason, including
but not limited to Good Reason. For purposes of this Agreement, “Good Reason” shall mean that the Executive has complied
with the “Good Reason Process” (hereinafter defined) following the occurrence of any of the following events: (i) a
material diminution in the Executive’s responsibilities, authority or duties; (ii) a material diminution in the Executive’s
Base Salary except for across-the-board salary reductions based on the Company’s financial performance similarly affecting
all or substantially all senior management employees of the Company; (iii) the material breach of this Agreement by the Company;
or (iv) a material change in the geographic location of the principal office of the Company to which the Executive is assigned,
such that there is an increase of at least fifty (50) miles of driving distance to such location from the Executive’s principal
residence as of such change. “Good Reason Process” shall mean that (i) the Executive
reasonably determines in good faith that a “Good Reason” condition has occurred; (ii) the Executive notifies the Company
in writing of the first occurrence of the Good Reason condition within 30 days of the first occurrence of such condition; (iii)
the Executive cooperates in good faith with the Company’s efforts, for a period not less than 30 days following such notice
(the “Cure Period”), to remedy the condition; (iv) notwithstanding such efforts, the Good Reason condition continues
to exist; and (v) the Executive terminates his employment within 30 days after the end of the Cure Period. If the Company cures
the Good Reason condition during the Cure Period, Good Reason shall be deemed not to have occurred.


 


(f)               
Notice of Termination. Except for termination as specified in Section 3(a), any termination of the Executive’s
employment by the Company or any such termination by the Executive shall be communicated by written Notice of Termination to the
other party hereto. For purposes of this Agreement, a “Notice of Termination” shall mean a notice which shall indicate
the specific termination provision in this Agreement relied upon.


 


(g)               Date
of Termination. “Date of Termination” shall mean: (i) if the Executive’s employment is terminated by
his death, the date of his death; (ii) if the Executive’s employment is terminated on account of disability under
Section 3(b), by the Company for Cause under Section 3(c) or by the Company without Cause under Section 3(d), the date on
which Notice of Termination is given unless another date is specified therein; (iii) if the Executive’s employment is
terminated by the Executive under Section 3(e) other than for Good Reason, 30 days after the date on which a Notice of
Termination is given, and (iv) if the Executive’s employment is terminated by the Executive under Section 3(e) for Good
Reason, the date on which a Notice of Termination is given after the end of the Cure Period. Notwithstanding the foregoing,
in the event that the Executive gives a Notice of Termination to the Company, the Company may unilaterally accelerate the
Date of Termination and such acceleration shall not result in a termination by the Company for purposes of this
Agreement.


 






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4.                 
Compensation Upon Termination.


 


(a)              
Termination Generally. If the Executive’s employment with the Company terminates for any reason, the Company
shall pay or provide to the Executive (or to his authorized representative or estate) any earned but unpaid Base Salary, unpaid
expense reimbursements, accrued but unused Paid Time Off all through the Date of Termination, and any vested benefits the Executive
may have under any employee benefit plan of the Company (the “Accrued Benefit”) on or before the time required by law
but in no event more than 30 days after the Executive’s Date of Termination.


 


(b)              
Termination by the Company without Cause or by the Executive for Good Reason. If the Executive’s employment
is terminated by the Company without Cause as provided in Section 3(d), or the Executive terminates his employment for Good Reason
as provided in Section 3(e), then the Company shall, through the Date of Termination, pay the Executive his Accrued Benefit. In
addition, subject to (i) the Executive signing a separation agreement in a form and manner satisfactory to the Company which includes
a general release of claims in favor of the Company and related persons and entities, a reaffirmation of all of the Executive’s
Continuing Obligations (as defined below), and, in the Company’s sole discretion, a one-year post-employment noncompetition
agreement, and shall provide that if the Executive breaches any of the Continuing Obligations, all payments of the Severance Amount
shall immediately cease (the “Release”) and (ii) such Release becoming irrevocable within the time period set forth
in such Release, but in no event later than 60 days following the Date of Termination, which shall include a seven (7) business
day revocation period:


 


(i)                
the Company shall pay the Executive an amount equal to twelve (12) months of the Executive’s Base Salary (the “Severance
Amount”); provided in the event the Executive is entitled to any payments pursuant to the Restrictive Covenant Agreement,
the Severance Amount received in any calendar year will be reduced by the amount the Executive is paid in the same such calendar
year pursuant to the Restrictive Covenant Agreement (the “Restrictive Covenant Agreement Setoff”);


 


(ii)             
if the Executive was participating in the Company’s group health plan immediately prior to the Date of Termination
and elects continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”),
then the Company shall pay to the Executive a monthly cash payment for twelve (12) months or the Executive’s COBRA health
continuation period, whichever ends earlier, in an amount equal to the monthly employer contribution that the Company would have
made to provide health insurance to the Executive if the Executive had remained employed by the Company. The Executive may continue
to participate in COBRA benefits following the expiration of the twelve (12) months, at his sole cost, provided that he remains
eligible for such participation; and


 


(iii)            the
amounts payable under this Section 4(b) shall be paid out in substantially equal installments in accordance with the
Company’s payroll practice over twelve (12) months commencing within 60 days after the Date of Termination; provided,
however, that if the 60-day period begins in one calendar year and ends in a second calendar year, the Severance Amount shall
begin to be paid in the second calendar year by the last day of such 60-day period; provided, further, that the initial
payment shall include a catch-up payment to cover amounts retroactive to the day immediately following the Date of
Termination. Each payment pursuant to this Agreement is intended to constitute a separate payment for purposes of Treasury
Regulation Section 1.409A-2(b)(2).


 






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5.                 
Change in Control Payment. The provisions of this Section 5 set forth certain terms of an agreement reached between
the Executive and the Company regarding the Executive’s rights and obligations upon the occurrence of a Change in Control
of the Company. These provisions are intended to assure and encourage in advance the Executive’s continued attention and
dedication to his assigned duties and his objectivity during the pendency and after the occurrence of any such event. These provisions
shall apply in lieu of, and expressly supersede, the provisions of Section 4(b) regarding severance pay and benefits upon a termination
of employment, if such termination of employment occurs within eighteen (18) months after the occurrence of the first event constituting
a Change in Control (the “Change in Control Period”). These provisions shall terminate and be of no further force or
effect beginning eighteen (18) months after the occurrence of a Change in Control.


 


(a)              
Change in Control. If the Executive’s employment is terminated by the Company without Cause as provided in
Section 3(d) or the Executive terminates his employment for Good Reason as provided in Section 3(e), and the Date of Termination
occurs within the Change in Control Period, then, subject to the signing of the Release by the Executive and such Release becoming
irrevocable within the period set forth in such Release, but in no event later than 60 days following the Date of Termination:


 


(i)                
the Company shall pay the Executive a lump sum in cash in an amount equal to one (1) multiplied by the sum of (A) the Executive’s
then-effective Base Salary, and (B) the Executive’s Target Bonus for the year during which the Date of Termination occurs
(the “Change in Control Payment”); provided the Change in Control Payment shall be reduced by the amount of the Restrictive
Covenant Agreement Setoff, if applicable, paid or to be paid in the same calendar year;


 


(ii)             
 the Company shall pay a prorated annual performance bonus (the “Prorated Annual Bonus”) equal to (x) the Executive’s
Target Bonus for the year during which the Date of Termination occurs multiplied by (y) a fraction, the numerator of which is the
number of days in the fiscal year in which the Executive was employed through the Date of Termination and the denominator of which
is 365, provided that the Prorated Annual Bonus shall be less the amount of any annual performance bonus, or advance thereof, previously
paid for the period associated with the Prorated Annual Bonus;


 


(iii)            notwithstanding
anything to the contrary in any applicable option agreement or stock-based award agreement, all time-based stock options and
other stock-based awards held by the Executive shall immediately accelerate and become fully exercisable or nonforfeitable
as of the Date of Termination; and


 






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(iv)            
if the Executive was participating in the Company’s group health plan immediately prior to the Date of Termination
and elects COBRA health continuation, then the Company shall pay to the Executive a monthly cash payment for twelve (12) months
or the Executive’s COBRA health continuation period, whichever ends earlier, in an amount equal to the monthly employer contribution
that the Company would have made to provide health insurance to the Executive if the Executive had remained employed by the Company.
The Executive may continue to participate in COBRA benefits following the expiration of the twelve (12) months, at his sole cost,
provided that he remains eligible for such participation.


 


(v)              
The amounts payable under this Section 5(a) shall be paid or commence to be paid within 60 days after the Date of Termination;
provided, however, that if the 60-day period begins in one calendar year and ends in a second calendar year, such payment shall
be paid or commence to be paid in the second calendar year by the last day of such 60-day period.


 


(b)       Additional
Limitation.


 


(i)                
Anything in this Agreement to the contrary notwithstanding, in the event that the amount of any compensation, payment or
distribution by the Company to or for the benefit of the Executive, whether paid or payable or distributed or distributable pursuant
to the terms of this Agreement or otherwise, calculated in a manner consistent with Section 280G of the Code and the applicable
regulations thereunder (the “Severance Payments”), would be subject to the excise tax imposed by Section 4999 of the
Code, the following provisions shall apply:


 


(A)            
If the Severance Payments, reduced by the sum of (1) the Excise Tax and (2) the total of the Federal, state, and
local income and employment taxes payable by the Executive on the amount of the Severance Payments which are in excess of the Threshold
Amount, are greater than or equal to the Threshold Amount, the Executive shall be entitled to the full benefits payable under this
Agreement.


 


(B)              If
the Threshold Amount is less than (x) the Severance Payments, but greater than (y) the Severance Payments reduced by the sum
of (1) the Excise Tax and (2) the total of the Federal, state, and local income and employment taxes on the amount of the
Severance Payments which are in excess of the Threshold Amount, then the Severance Payments shall be reduced (but not below
zero) to the extent necessary so that the sum of all Severance Payments shall not exceed the Threshold Amount. In such event,
the Severance Payments shall be reduced in the following order: (1) cash payments not subject to Section 409A of the Code;
(2) cash payments subject to Section 409A of the Code; (3) equity-based payments and acceleration; and (4) non-cash forms of
benefits. To the extent any payment is to be made over time (e.g., in installments, etc.), then the payments shall be reduced
in reverse chronological order.


 






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(ii)             
For the purposes of this Section 5(b), “Threshold Amount” shall mean three times the Executive’s “base
amount” within the meaning of Section 280G(b)(3) of the Code and the regulations promulgated thereunder less one dollar ($1.00);
and “Excise Tax” shall mean the excise tax imposed by Section 4999 of the Code, and any interest or penalties incurred
by the Executive with respect to such excise tax.


 


(iii)           
The determination as to which of the alternative provisions of Section 5(b)(i) shall apply to the Executive shall be made
by a nationally recognized accounting firm selected by the Company (the “Accounting Firm”), which shall provide detailed
supporting calculations both to the Company and the Executive within 15 business days of the Date of Termination, if applicable,
or at such earlier time as is reasonably requested by the Company or the Executive. For purposes of determining which of the alternative
provisions of Section 5(b)(i) shall apply, the Executive shall be deemed to pay federal income taxes at the highest marginal rate
of federal income taxation applicable to individuals for the calendar year in which the determination is to be made, and state
and local income taxes at the highest marginal rates of individual taxation in the state and locality of the Executive’s
residence on the Date of Termination, net of the maximum reduction in federal income taxes which could be obtained from deduction
of such state and local taxes. Any determination by the Accounting Firm shall be binding upon the Company and the Executive.


 


(b)              
Definitions. For purposes of this Section 5, the following terms shall have the following meanings:


 


“Change in Control” shall mean
any of the following:


 


(i)                
any “person,” as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended
(the “Act”) (other than the Company, any of its subsidiaries, or any trustee, fiduciary or other person or entity holding
securities under any employee benefit plan or trust of the Company or any of its subsidiaries), together with all “affiliates”
and “associates” (as such terms are defined in Rule 12b-2 under the Act) of such person, shall become the “beneficial
owner” (as such term is defined in Rule 13d-3 under the Act), directly or indirectly, of securities of the Company representing
50 percent or more of the combined voting power of the Company’s then outstanding securities having the right to vote in
an election of the Board (“Voting Securities”) (in such case other than as a result of an acquisition of securities
directly from the Company); or


 


(ii)             
the date a majority of the members of the Board is replaced during any 12-month period by directors whose appointment or
election is not endorsed by a majority of the members of the Board before the date of the appointment or election; or


 






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(iii)           
 the consummation of (A) any consolidation or merger of the Company where the stockholders of the Company, immediately prior
to the consolidation or merger, would not, immediately after the consolidation or merger, beneficially own (as such term is defined
in Rule 13d-3 under the Act), directly or indirectly, shares representing in the aggregate more than 50 percent of the voting shares
of the Company issuing cash or securities in the consolidation or merger (or of its ultimate parent corporation, if any), or (B)
any sale or other transfer (in one transaction or a series of transactions contemplated or arranged by any party as a single plan)
of all or substantially all of the assets of the Company.


 


Notwithstanding the foregoing, a “Change
in Control” shall not be deemed to have occurred for purposes of the foregoing clause (i) solely as the result of an acquisition
of securities by the Company which, by reducing the number of shares of Voting Securities outstanding, increases the proportionate
number of Voting Securities beneficially owned by any person to 50 percent or more of the combined voting power of all of the then
outstanding Voting Securities; provided, however, that if any person referred to in this sentence shall thereafter become the beneficial
owner of any additional shares of Voting Securities (other than pursuant to a stock split, stock dividend, or similar transaction
or as a result of an acquisition of securities directly from the Company) and immediately thereafter beneficially owns 50 percent
or more of the combined voting power of all of the then outstanding Voting Securities, then a “Change in Control” shall
be deemed to have occurred for purposes of the foregoing clause (i).


 


6.                 
Section 409A.


 


(a)              
Anything in this Agreement to the contrary notwithstanding, if at the time of the Executive’s separation from service
within the meaning of Section 409A of the Code, the Company determines that the Executive is a “specified employee”
within the meaning of Section 409A(a)(2)(B)(i) of the Code, then to the extent any payment or benefit that the Executive becomes
entitled to under this Agreement or otherwise on account of the Executive’s separation from service would be considered deferred
compensation subject to the 20 percent additional tax imposed pursuant to Section 409A(a) of the Code as a result of the application
of Section 409A(a)(2)(B)(i) of the Code, such payment shall not be payable and such benefit shall not be provided until the date
that is the earlier of (A) six months and one day after the Executive’s separation from service, or (B) the Executive’s
death. If any such delayed cash payment is otherwise payable on an installment basis, the first payment shall include a catch-up
payment covering amounts that would otherwise have been paid during the six-month period but for the application of this provision,
and the balance of the installments shall be payable in accordance with their original schedule.


 


(b)               All
in-kind benefits provided and expenses eligible for reimbursement under this Agreement shall be provided by the Company or
incurred by the Executive during the time periods set forth in this Agreement. All reimbursements shall be paid as soon as
administratively practicable, but in no event shall any reimbursement be paid after the last day of the taxable year
following the taxable year in which the expense was incurred. The amount of in-kind benefits provided or reimbursable
expenses incurred in one taxable year shall not affect the in-kind benefits to be provided or the expenses eligible for
reimbursement in any other taxable year. Such right to reimbursement or in-kind benefits is not subject to liquidation or
exchange for another benefit.


 






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(c)              
To the extent that any payment or benefit described in this Agreement constitutes “non-qualified deferred compensation”
under Section 409A of the Code, and to the extent that such payment or benefit is payable upon the Executive’s termination
of employment, then such payments or benefits shall be payable only upon the Executive’s “separation from service.”
The determination of whether and when a separation from service has occurred shall be made in accordance with the presumptions
set forth in Treasury Regulation Section 1.409A-1(h).


 


(d)              
The parties intend that this Agreement will be administered in accordance with Section 409A of the Code. To the extent that
any provision of this Agreement is ambiguous as to its compliance with Section 409A of the Code, the provision shall be read in
such a manner so that all payments hereunder comply with Section 409A of the Code. Each payment pursuant to this Agreement is intended
to constitute a separate payment for purposes of Treasury Regulation Section 1.409A-2(b)(2). The parties agree that this Agreement
may be amended, as reasonably requested by either party, and as may be necessary to fully comply with Section 409A of the Code
and all related rules and regulations in order to preserve the payments and benefits provided hereunder without additional cost
to either party.


 


(e)              
The Company makes no representation or warranty and shall have no liability to the Executive or any other person if any
provisions of this Agreement are determined to constitute deferred compensation subject to Section 409A of the Code but do not
satisfy an exemption from, or the conditions of, such Section.


 


7.                 
Confidential Information, Noncompetition and Cooperation.


 


(a)              
Continuing Obligations. The terms of the Restrictive Covenant Agreement continue to be in full force and effect.
For purposes of this Agreement, the obligations in this Section 7 and those that arise in the Restrictive Covenant Agreement and
any other agreement relating to confidentiality, assignment of inventions, or other restrictive covenants shall collectively be
referred to as the “Continuing Obligations.”


 


(b)              
Third-Party Agreements and Rights. The Executive hereby confirms that the Executive is not bound by the terms of
any agreement with any previous employer or other party which restricts in any way the Executive’s use or disclosure of information
or the Executive’s engagement in any business. The Executive represents to the Company that the Executive’s execution
of this Agreement, the Executive’s employment with the Company and the performance of the Executive’s proposed duties
for the Company will not violate any obligations the Executive may have to any such previous employer or other party. In the Executive’s
work for the Company, the Executive will not disclose or make use of any information in violation of any agreements with or rights
of any such previous employer or other party, and the Executive will not bring to the premises of the Company any copies or other
tangible embodiments of non-public information belonging to or obtained from any such previous employment or other party.


 






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(c)              
 Cooperation. During and after the Executive’s employment, the Executive shall cooperate fully with the Company,
including in the defense or prosecution of any claims or actions now in existence or which may be brought in the future against
or on behalf of the Company which relate to events or occurrences that transpired while the Executive was employed by the Company.
The Executive’s full cooperation in connection with such claims or actions shall include, but not be limited to, being available
to meet with counsel to prepare for discovery or trial and to act as a witness on behalf of the Company at mutually convenient
times. During and after the Executive’s employment, the Executive also shall cooperate fully with the Company in connection
with any investigation or review of any federal, state or local regulatory authority as any such investigation or review relates
to events or occurrences that transpired while the Executive was employed by the Company. The Company shall reimburse the Executive
for any reasonable out-of-pocket expenses incurred in connection with the Executive’s performance of obligations
pursuant to this Section 7(c).


 


(d)              
Injunction. The Executive agrees that it would be difficult to measure any damages caused to the Company which might
result from any breach by the Executive of the promises set forth in this Section 7, and that in any event money damages would
be an inadequate remedy for any such breach. Accordingly, subject to Section 8 of this Agreement, the Executive agrees that if
the Executive breaches, or proposes to breach, any portion of this Agreement, the Company shall be entitled, in addition to all
other remedies that it may have, to an injunction or other appropriate equitable relief to restrain any such breach without showing
or proving any actual damage to the Company.


 


(e)              
Protected Disclosure. The Executive understands that nothing contained in this Agreement limits the Executive’s
ability to communicate with any federal, state or local governmental agency or commission, including to provide documents or other
information, without notice to the Company.


 


8.                 
Consent to Jurisdiction. The parties hereby consent to the jurisdiction of the Superior Court of the Commonwealth
of Massachusetts and the United States District Court for the District of Massachusetts. Accordingly, with respect to any such
court action, the Executive (a) submits to the personal jurisdiction of such courts; (b) consents to service of process; and (c)
waives any other requirement (whether imposed by statute, rule of court, or otherwise) with respect to personal jurisdiction or
service of process.


 


9.                 
Integration. This Agreement, including the Restrictive Covenant Agreement and the Equity Documents, constitutes the
entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements between the
parties concerning such subject matter, including without limitation, the Offer Letter.


 


10.             
Withholding. All payments made by the Company to the Executive under this Agreement shall be net of any tax or other
amounts required to be withheld by the Company under applicable law.


 


11.              Successor
to the Executive. This Agreement shall inure to the benefit of and be enforceable by the Executive’s personal
representatives, executors, administrators, heirs, distributees, devisees and legatees. In the event of the Executive’s
death after his termination of employment but prior to the completion by the Company of all payments due him under this
Agreement, the Company shall continue such payments to the Executive’s beneficiary designated in writing to the Company
prior to his death (or to his estate, if the Executive fails to make such designation).


 






    11


     


    

 


12.             
Enforceability. If any portion or provision of this Agreement (including, without limitation, any portion or provision
of any section of this Agreement) shall to any extent be declared illegal or unenforceable by a court of competent jurisdiction,
then the remainder of this Agreement, or the application of such portion or provision in circumstances other than those as to which
it is so declared illegal or unenforceable, shall not be affected thereby, and each portion and provision of this Agreement shall
be valid and enforceable to the fullest extent permitted by law.


 


13.             
Survival. The provisions of this Agreement shall survive the termination of this Agreement and/or the termination
of the Executive’s employment to the extent necessary to effectuate the terms contained herein.


 


14.             
Waiver. No waiver of any provision hereof shall be effective unless made in writing and signed by the waiving party.
The failure of any party to require the performance of any term or obligation of this Agreement, or the waiver by any party of
any breach of this Agreement, shall not prevent any subsequent enforcement of such term or obligation or be deemed a waiver of
any subsequent breach.


 


15.             
Notices. Any notices, requests, demands and other communications provided for by this Agreement shall be sufficient
if in writing and delivered in person or sent by a nationally recognized overnight courier service or by registered or certified
mail, postage prepaid, return receipt requested, to the Executive at the last address the Executive has filed in writing with the
Company or, in the case of the Company, at its main offices, attention of the Board.


 


16.             
Amendment. This Agreement may be amended or modified only by a written instrument signed by the Executive and by
a duly authorized representative of the Company.


 


17.             
Governing Law. This is a Massachusetts contract and shall be construed under and be governed in all respects by the
laws of the Commonwealth of Massachusetts, without giving effect to the conflict of laws principles of such Commonwealth. With
respect to any disputes concerning federal law, such disputes shall be determined in accordance with the law as it would be interpreted
and applied by the United States Court of Appeals for the First Circuit.


 


18.             
Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed and delivered
shall be taken to be an original; but such counterparts shall together constitute one and the same document.


 


19.             
Successor to Company. The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation
or otherwise) to all or substantially all of the business or assets of the Company expressly to assume and agree to perform this
Agreement to the same extent that the Company would be required to perform it if no succession had taken place. Failure of the
Company to obtain an assumption of this Agreement at or prior to the effectiveness of any succession shall be a material breach
of this Agreement.


 






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20.             
 Gender Neutral. Wherever used herein, a pronoun in the masculine gender shall be considered as including the feminine
gender unless the context clearly indicates otherwise.


 


IN WITNESS WHEREOF, the parties have executed
this Agreement effective on the Effective Date.


 


	 	VERICEL CORPORATION
	 	 
	 	 
	 	/s/ Dominick C. Colangelo
	 	By:	Dominick C. Colangelo
	 	Its:	President and Chief Executive Officer
	 	 	 
	 	 	 
	 	EXECUTIVE
	 	 
	 	 
	                                                                     	/s/ Joseph A. Mara
	 	Joseph A. Mara 




 






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Exhibit A 


 


Employee Confidentiality, Assignment
and Noncompetition Agreement


 


In consideration and as a condition of the
commencement of my employment by Vericel Corporation (including its subsidiaries and other affiliates and its and their successors
and assigns, the “Company”), I enter into this Employee Confidentiality, Assignment and Noncompetition Agreement
(the “Agreement”) and agree as follows:


 


1.      
Proprietary Information. I agree that all information, whether or not in writing, concerning the Company’s
business, technology, business relationships or financial affairs that the Company has not released to the general public (collectively,
“Proprietary Information”) and all tangible embodiments thereof are and will be the exclusive property of the
Company. By way of illustration, Proprietary Information may include information or material that has not been made generally available
to the public, such as: (a) corporate information, including plans, strategies, methods, policies, resolutions, negotiations
or litigation; (b) marketing information, including strategies, methods, customer or business partner identities or other
information about customers, business partners, prospect identities or other information about prospects, or market analyses or
projections; (c) financial information, including cost and performance data, debt arrangements, equity structure, investors
and holdings, purchasing and sales data and price lists; (d) operational and scientific information, including plans, specifications,
manuals, forms, templates, software, pre-clinical and clinical testing data and strategies, research and development strategies,
designs, methods, procedures, formulae, data, reports, discoveries, inventions, improvements, concepts, ideas, and other Developments
(as defined below), know-how and trade secrets; and (e) personnel information, including personnel lists, reporting or organizational
structure, resumes, personnel data, performance evaluations and termination arrangements or documents. Proprietary Information
also includes information received in confidence by the Company from its customers, suppliers, business partners or other third
parties.


 


2.      
Recognition of Company’s Rights. I will not, at any time, without the Company’s prior written
permission, either during or after my employment, disclose any Proprietary Information to anyone outside of the Company, or use
or permit to be used any Proprietary Information for any purpose other than the performance of my duties as an employee of the
Company. I will cooperate with the Company and use my best efforts to prevent the unauthorized disclosure of all Proprietary Information.
I will deliver to the Company all copies and other tangible embodiments of Proprietary Information in my possession or control
upon the earlier of a request by the Company or termination of my employment.


 


3.      
Rights of Others. I understand that the Company is now and may hereafter be subject to nondisclosure or confidentiality
agreements with third persons that require the Company to protect or refrain from use or disclosure of proprietary information.
I agree to be bound by the terms of such agreements in the event I have access to such proprietary information. I understand that
the Company strictly prohibits me from using or disclosing confidential or proprietary information belonging to any other person
or entity (including any employer or former employer), in connection with my employment. In addition, I agree not to bring any
confidential information belonging to any other person or entity onto Company premises or into Company workspaces.


 


4.      
Commitment to Company; Avoidance of Conflict of Interest. While an employee of the Company, I will devote
my full-time efforts to the Company’s business and I will not, directly or indirectly, engage in any other business activity,
except as expressly authorized in writing and in advance by a duly authorized representative of the Company. I will advise an authorized
officer of the Company or his or her designee at such time as any activity of either the Company or another business presents me
with a conflict of interest or the appearance of a conflict of interest as an employee of the Company. I will take whatever action
is requested of me by the Company to resolve any conflict or appearance of conflict which it finds to exist.


 






     


     


    

 


5.      
 Developments. I will make full and prompt disclosure to the Company of all inventions, discoveries, designs,
developments, methods, modifications, improvements, processes, algorithms, data, databases, computer programs, research, formulae,
techniques, trade secrets, graphics or images, and audio or visual works and other works of authorship, and other intellectual
property, including works-in-process (collectively “Developments”) whether or not patentable or copyrightable,
that are created, made, conceived or reduced to practice by me (alone or jointly with others) or under my direction during the
period of my employment. I acknowledge that all work performed by me is on a “work for hire” basis, and I hereby do
assign and transfer and, to the extent any such assignment cannot be made at present, will assign and transfer, to the Company
and its successors and assigns all my right, title and interest in and to all Developments that (a) relate to the business of the
Company or any customer of, supplier to or business partner of the Company or any of the products or services being researched,
developed, manufactured or sold by the Company or which may be used with such products or services; or (b) result from tasks assigned
to me by the Company; or (c) result from the use of premises or personal property (whether tangible or intangible) owned, leased
or contracted for by the Company (“Company-Related Developments”), and all related patents, patent applications,
trademarks and trademark applications, copyrights and copyright applications, sui generis database rights and other intellectual
property rights in all countries and territories worldwide and under any international conventions (“Intellectual Property
Rights”).


 


To preclude any possible uncertainty, if
there are any Developments that I have, alone or jointly with others, conceived, developed or reduced to practice prior to the
commencement of my employment with the Company that I consider to be my property or the property of third parties and that I wish
to have excluded from the scope of this Agreement (“Prior Inventions”), I have set forth on Exhibit A attached
hereto a complete list of those Prior Inventions. If disclosure of any such Prior Invention would cause me to violate any prior
confidentiality agreement, I understand that I am not to list such Prior Inventions in Exhibit A but am only to disclose
a cursory name for each such invention, a listing of the party(ies) to whom it belongs and the fact that full disclosure as to
such inventions has not been made for that reason. If there are any patents or patent applications in which I am named as an inventor,
other than those that have been assigned to the Company (“Other Patent Rights”), I have also listed those Other
Patent Rights on Exhibit A. If no such disclosure is attached, I represent that there are no Prior Inventions or Other Patent Rights.
If, in the course of my employment with the Company, I incorporate a Prior Invention into a Company product, process or machine,
research or development program, or other work done for the Company, I hereby grant to the Company a nonexclusive, royalty-free,
fully paid-up, irrevocable, worldwide license (with the full right to sublicense through multiple tiers) to make, have made, modify,
use, sell, offer for sale and import such Prior Invention. Notwithstanding the foregoing, I will not incorporate, or permit to
be incorporated, Prior Inventions in any Company-Related Development without the Company’s prior written consent.


 


This Agreement does not obligate me to
assign to the Company any Development that, in the sole judgment of the Company, reasonably exercised, is developed entirely on
my own time and does not relate to the business efforts or research and development efforts in which, during the period of my employment,
the Company actually is engaged or reasonably would be engaged, and does not result from the use of premises or equipment owned
or leased by the Company. However, I will also promptly disclose to the Company any such Developments for the purpose of determining
whether they qualify for such exclusion. I understand that to the extent this Agreement is required to be construed in accordance
with the laws of any state which precludes a requirement in an employee agreement to assign certain classes of inventions made
by an employee, this paragraph 5 will be interpreted not to apply to any invention that a court rules and/or the Company agrees
falls within such classes. I also hereby waive all claims to any moral rights or other special rights that I may have or accrue
in any Company-Related Developments.


 


6.      
Documents and Other Materials. I will keep and maintain adequate and current records of all Proprietary Information
and Company-Related Developments developed by me during my employment, which records will be available to and remain the sole property
of the Company at all times.


 


All files, letters, notes, memoranda, reports,
records, data, sketches, drawings, notebooks, layouts, charts, quotations and proposals, specification sheets, blueprints, models,
prototypes, or other written, photographic or other tangible material containing Proprietary Information, whether created by me
or others, which come into my custody or possession, are the exclusive property of the Company to be used by me only in the performance
of my duties for the Company. Any property situated on the Company’s premises and owned by the Company, including without
limitation computers, disks and other storage media, filing cabinets or other work areas, is subject to inspection by the Company
at any time with or without notice. In the event of the termination of my employment for any reason, I will deliver to the Company
all Company property and equipment in my possession, custody or control, including all files, letters, notes, memoranda, reports,
records, data, sketches, drawings, notebooks, layouts, charts, quotations and proposals, specification sheets, blueprints, models,
prototypes, or other written, photographic or other tangible material containing Proprietary Information, and other materials
of any nature pertaining to the Proprietary Information of the Company and to my work, and will not take or keep in my possession
any of the foregoing or any copies.


 






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7.      
Enforcement of Intellectual Property Rights. I will cooperate fully with the Company, both during and after
my employment with the Company, with respect to the procurement, maintenance and enforcement of Intellectual Property Rights in
Company-Related Developments. I will sign, both during and after my employment, all papers, including without limitation copyright
applications, patent applications, declarations, oaths, assignments of priority rights, and powers of attorney, which the Company
may deem necessary or desirable in order to protect its rights and interests in any Company-Related Development or Intellectual
Property Rights therein. If the Company is unable, after reasonable effort, to secure my signature on any such papers, I hereby
irrevocably designate and appoint each officer of the Company as my agent and attorney-in-fact to execute any such papers on my
behalf, and to take any and all actions as the Company may deem necessary or desirable in order to protect its rights and interests
in any Company-Related Development, including any Intellectual Property Rights therein.


 


8.      
Nonsolicitation and Noncompetition.


 


In order to protect the Company’s
Proprietary Information and goodwill, during my employment and for a period of: (i) one (1) year following the date of the cessation
of my employment with the Company (the “Last Date of Employment”), or (ii) two (2) years following the Last
Date of Employment if I breach my fiduciary duty to the Company or if I have unlawfully taken, physically or electronically, property
belonging to the Company (in either case the “Restricted Period”):


 


9.      
I shall not, directly or indirectly, in any manner, other than for the benefit of the Company, solicit or transact any business
with any of the customers of the Company or any of its vendors. For purposes of this Agreement, (i) customers shall include then
current customers to which the Company provided products or services during the twelve months prior to the Last Date of Employment
(the “One Year Lookback”) and customer prospects that the Company solicited during the One Year Lookback and
that I had significant contact with or learned confidential information about in the course of my employment, and (ii) vendors
shall include then current vendors and vendors that provided services to or in connection with the Company during the One Year
Lookback.


 


10.   
I shall not, directly or indirectly, in any manner, solicit, entice or attempt to persuade any employee or consultant of
the Company to leave the Company for any reason or otherwise participate in or facilitate the hire, directly or through another
entity, of any person who is then employed or engaged by the Company or who was engaged by the Company within six months of any
attempt to hire such person.


 


11.    Unless
(i) the Company terminates my employment without Cause (as defined below) or I have been laid off; or (ii) the Company waives
the restrictions upon post-employment activities set forth in this Section 8(c), then, the Company shall make payments to me
for the post-employment portion of the Restricted Period (but for not more than 12 months following the end of my employment)
at the rate of 50% of the highest annualized base salary paid to me by the Company within the two-year period preceding the
last day of my employment, and in exchange, I shall not directly or indirectly, whether as owner, partner, shareholder,
director, manager, consultant, agent, employee, co-venturer or otherwise, anywhere in the United States engage or otherwise
participate in any business that develops, manufactures or markets any products, or performs any services, that are
competitive with the products or services of the Company, or products or services that the Company or its affiliates has
under development or that are the subject of active planning at any time during my employment. For purposes of this
Agreement, and notwithstanding anything to the contrary in any other agreement between the Company and me,
“Cause” shall mean a reasonable and good faith basis for the Company to be dissatisfied with my job
performance, my conduct or my behavior. I acknowledge that this covenant is necessary because the Company’s legitimate
business interests cannot be adequately protected solely by the other covenants in this Agreement. I further acknowledge and
agree that any payments I receive pursuant to this Section 8(c) shall reduce (and shall not be in addition to) any severance
or separation pay that I am otherwise entitled to receive from the Company pursuant an agreement, plan or
otherwise.    


 






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12.   
Government Contracts. I acknowledge that the Company may have from time to time agreements with other persons
or with the United States Government or its agencies that impose obligations or restrictions on the Company regarding inventions
made during the course of work under such agreements or regarding the confidential nature of such work. I agree to comply with
any such obligations or restrictions upon the direction of the Company. In addition to the rights assigned under paragraph 5, I
also assign to the Company (or any of its nominees) all rights that I have or acquired in any Developments, full title to which
is required to be in the United States under any contract between the Company and the United States or any of its agencies.


 


13.   
Prior Agreements. I hereby represent that, except as I have fully disclosed previously in writing to the Company,
I am not bound by the terms of any agreement with any previous or current employer or other party to refrain from using or disclosing
any trade secret or confidential or proprietary information in the course of my employment with the Company or to refrain from
competing, directly or indirectly, with the business of such employer or any other party. I further represent that my performance
of all the terms of this Agreement as an employee of the Company does not and will not breach any agreement to keep in confidence
proprietary information, knowledge or data acquired by me in confidence or in trust prior to my employment with the Company. I
will not disclose to the Company or induce the Company to use any confidential or proprietary information or material belonging
to any previous employer or others.


 


14.   
Remedies Upon Breach.  I understand that the restrictions contained in this Agreement are necessary for the
protection of the business and goodwill of the Company and I consider them to be reasonable for such purpose. Any breach of this
Agreement is likely to cause the Company substantial and irrevocable damage and therefore, in the event of such breach, the Company,
in addition to such other remedies which may be available, will be entitled to specific performance and other injunctive relief,
without the posting of a bond. I further acknowledge that a court may render an award extending the Restricted Period as one of
the remedies in the event of my violation of this Agreement. If I violate this Agreement, in addition to all other remedies available
to the Company at law (including, without limitation, the Company’s right to discontinue any payments I may receive pursuant
to Section 8(c)), in equity, and under contract, I agree that I am obligated to pay all the Company’s costs of enforcement
of this Agreement, including reasonable attorneys’ fees and expenses.


 


15.   
No Employment Obligation. I understand that this Agreement does not create an obligation on the Company or
any other person to continue my employment. I acknowledge that, unless otherwise agreed in a formal written employment agreement
signed on behalf of the Company by an authorized officer, my employment with the Company is at will and therefore may be terminated
by the Company or me at any time and for any reason, with or without cause.


 


16.    Survival
and Assignment by the Company. I understand that my obligations under this Agreement will continue in accordance with
its express terms regardless of any changes in my title, position, duties, salary, compensation or benefits or other terms
and conditions of employment. I further understand that my obligations under this Agreement will continue following the
termination of my employment regardless of the manner of such termination and will be binding upon my heirs, executors and
administrators. The Company will have the right to assign this Agreement to its affiliates, successors and assigns. I
expressly consent to be bound by the provisions of this Agreement for the benefit of the Company or any parent, subsidiary or
affiliate to whose employ I may be transferred without the necessity that this Agreement be resigned at the time of such
transfer.


 






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17.   
Notice of Resignation. If I elect to resign from my employment with the Company, I agree to provide the Company
with written notification of my resignation at least two (2) weeks prior to my intended resignation date. Such notice shall include
information in reasonable detail about my post-employment job duties and other business activities, including the name and address
of any subsequent employer and/or person or entity with whom or which I intend to engage in business activities during the Restricted
Period and the nature of my job duties and other business activities. The Company may elect to waive all or part of the two (2)
week notice period in its sole discretion.


 


18.   
Post-Employment Notifications. During the Restricted Period, I will notify the Company of any change in my
address and of each subsequent employment or business activity, including the name and address of my employer or other post-Company
employment plans and the nature of my activities.


 


19.   
Disclosures During Restricted Period.  I will provide a copy of this Agreement to any person or entity
with whom I may enter into a business relationship, whether as an employee, consultant, partner, coventurer or otherwise, prior
to entering into such business relationship during the Restricted Period.


 


20.   
Waiver. The Company and I acknowledge and agree that the Company’s election not to provide me with
garden leave pay as set forth in Section 8(c) shall be deemed a waiver of my noncompetition obligations under Section 8(c). Otherwise,
no waiver of any of my obligations under this Agreement shall be effective unless made in writing by the Company. The failure
of the Company to require my performance of any term or obligation of this Agreement, or the waiver of any breach of this Agreement,
shall not prevent the Company’s subsequent enforcement of such term or obligation or be deemed a waiver of any subsequent
breach.


 


21.   
Severability. In case any provisions (or portions thereof) contained in this Agreement shall, for any reason,
be held invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect the
other provisions of this Agreement, and this Agreement shall be construed as if such invalid, illegal or unenforceable provision
had never been contained herein. If, moreover, any one or more of the provisions contained in this Agreement shall for any reason
be held to be excessively broad as to duration, geographical scope, activity or subject, it shall be construed by limiting and
reducing it, so as to be enforceable to the extent compatible with the applicable law as it shall then appear.


 


22.   
Choice of Law and Jurisdiction. This Agreement will be deemed to be made and entered into in the Commonwealth
of Massachusetts, and will in all respects be interpreted, enforced and governed under the laws of the Commonwealth of Massachusetts.
I hereby consent to personal jurisdiction of the state and federal courts situated within Massachusetts for purposes of enforcing
this Agreement, and waive any objection that I might have to personal jurisdiction or venue in those courts, provided, however,
the Company and I agree that all civil actions relating to the Section 8(c) of this Agreement shall be brought in the county of
Suffolk and that the superior court or the business litigation session of the superior court shall have exclusive jurisdiction.


 


23.   
Independence of Obligations. My obligations under this Agreement are independent of any obligation, contractual
or otherwise, the Company has to me. The Company’s breach of any such obligation shall not be a defense against the enforcement
of this Agreement or otherwise limit my obligations under this Agreement.


 


24.   
Protected Disclosures. I understand that nothing contained in this Agreement limits my ability to communicate
with any federal, state or local governmental agency or commission, including to provide documents or other information, without
notice to the Company. I also understand that nothing in this Agreement limits my ability to share compensation information concerning
myself or others, except that this does not permit me to disclose compensation information concerning others that I obtain because
my job responsibilities require or allow access to such information.


 






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25.   
 Defend Trade Secrets Act of 2016. I understand that pursuant to the federal Defend Trade Secrets Act
of 2016, I shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a
trade secret that (a) is made (i) in confidence to a federal, state, or local government official, either directly or indirectly,
or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (b) is made
in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.


 


26.   
Entire Agreement; Amendment. This Agreement constitutes the entire agreement between the Company and
me with respect to the subject matter hereof, and supersedes all prior agreements or understandings, both written and oral, between
the Company and me with respect to the subject matter hereof, but does not in any way merge with or supersede any other confidentiality,
assignment of inventions or other restrictive covenant agreement or obligation entered into by the Company and me, which agreements
and obligations shall supplement, and shall not limit or be limited by, this Agreement. This Agreement may be amended only in
a written agreement executed by a duly authorized officer of the Company and me.


 


[Remainder of Page Intentionally Left Blank]


 






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I UNDERSTAND THAT THIS
AGREEMENT AFFECTS IMPORTANT RIGHTS. BY SIGNING BELOW, I CERTIFY THAT (I) I WAS PROVIDED WITH THIS AGREEMENT BY THE EARLIER OF A
FORMAL OFFER OF EMPLOYMENT OR TEN (10) BUSINESS DAYS BEFORE THE COMMENCEMENT OF MY EMPLOYMENT AND (II) I HAVE BEEN ADVISED BY THE
COMPANY THAT I HAVE THE RIGHT TO CONSULT WITH COUNSEL PRIOR TO SIGNING THIS AGREEMENT.


 


IN WITNESS WHEREOF, the undersigned has
executed this agreement as a sealed instrument and shall become effective upon the later of the (i) full execution by both parties;
or (ii) ten (10) business days after the Company provided me with notice of this Agreement.


 


	EMPLOYEE	 
	 	 
	 	 
	Signed: 	/s/ Joe Mara	 
	 	 
	 	 
	Type or print name: Joe Mara	 
	 	 
	Date: 12/21/2020	 
	 	 
	 	 
	THE COMPANY	 
	 	 
	 	 
	Signed: 	/s/ Erica Logan	 
	 	 
	 	 
	Type or print name and job
    title: Erica Logan, Senior Manager, Recruiting	 
	 	 
	Date: 12/21/2020	 



 



     


     


    




 


EXHIBIT A


 


To:      Vericel Corporation


 


	From:	Joe Mara	 



 


	Date:	12/21/2020	 



 


SUBJECT:         Prior Inventions


 


The following is a complete list of all
inventions or improvements relevant to the subject matter of my employment by the Company that have been made or conceived or first
reduced to practice by me alone or jointly with others prior to my engagement by the Company:


 


		x 	No inventions or improvements



 


		 ̈	See below:



 


	 	 



 


	 	 



 


	 	 



 


		 ̈	Additional sheets attached



 


The following is a list of all patents and
patent applications in which I have been named as an inventor:


 


		 ̈	None



 


		 ̈	See below: