Document:

Szabo Employment Agreement

 EXHIBIT 10.26 
  
 EMPLOYMENT AGREEMENT 
  

THIS EMPLOYMENT AGREEMENT (the “Agreement”) dated December 19, 2003, is by and between Closure Medical Corporation, a Delaware corporation
(the “Company”), and Gabriel N. Szabo (“Employee”). 
  
 WHEREAS, the Company and Employee desire to enter into an agreement to provide for Employee’s employment by the Company, upon the terms and conditions set forth herein; 
  
 NOW, THEREFORE, the parties hereto, intending to be legally bound, agree as follows: 
  
 Terms 
  
 1. Employment. The Company hereby employs Employee, and Employee hereby accepts
such employment and agrees to perform his duties and responsibilities hereunder, in accordance with the terms and conditions hereinafter set forth. 
  
 1.1 Employment Term. The term of this Agreement (the “Employment Term”) shall commence as of January 1, 2004 and shall continue
until December 31, 2004 (unless earlier terminated in accordance with this Agreement) or extended in accordance with the following sentence. The Employment Term shall automatically be extended for successive one-year terms, subject to the
termination provisions hereof, unless the Company notifies Employee, in writing, at least sixty (60) days prior to the end of the then current Employment Term, or the Employee notifies the Company, in writing, at least sixty (60) days prior to the
end of the then current Employment Term, that the Agreement is to be terminated. In the event the Company gives such notice, unless such notice indicates that Employee’s employment also is to be terminated, then upon expiration of the
Employment Term, or any renewal, Employee shall become and be an “at will” employee. 
  
 1.2 Duties and Responsibilities. 
  
 1.2.1 During the Employment Term, Employee shall serve as Vice President, Product Development and shall perform all duties and accept all responsibilities incidental to such position or as otherwise may be reasonably
assigned to him by the Company’s President and Chief Executive Officer or its Board of Directors (the “Board”). Nothing in this Agreement, however, shall constitute a guarantee by the Company that Employee will always have the title
or duties specified herein. 
  
 1.2.2 Employee represents
to the Company that, he is not subject to, and agrees that he will not hereafter during the Employment Term become subject to, any employment agreement, non-competition covenant, non-disclosure agreement or other agreement, covenant, understanding
or restriction which would prohibit Employee from fully performing his duties and responsibilities hereunder, or which would otherwise in any manner, directly or indirectly, limit or adversely affect the duties and responsibilities which may now or
in the future be assigned to Employee by the Company’s Chief Executive Officer or the Board. 

 1.3 Extent of Service. During the Employment Term, Employee agrees to use his best efforts
to carry out his duties and responsibilities under Section 1.2.1 hereof and, consistent with the other provisions of this Agreement, to devote his full time, attention and energy thereto during normal business hours. Except as provided in Section 4
hereof, the foregoing shall not be construed as preventing Employee from making investments in other businesses or enterprises, provided that Employee agrees not to become engaged in any other business, charitable or community activity which may
materially interfere with his ability to discharge his duties and responsibilities to the Company. 
  
 1.4 Base Salary. For all the services rendered by Employee hereunder, the Company shall pay Employee an annual salary at the rate of one
hundred sixty-two thousand dollars ($162,000) for each full year of the Employment Term, plus such additional amounts, if any, as may be approved by the Board or its Compensation Committee (the “Committee”) (as such amount may be increased
from time to time hereunder, the “Base Salary”), payable in installments at such times as the Company customarily pays its other senior officers (but in no event less often than monthly). Employee’s Base Salary shall be reviewed by
the Board or the Committee at the end of each employment year to determine if an increase is appropriate for the next employment year pursuant to its normal performance review policies for executives, taking into account Employee’s performance
and increases in the cost of living. The Company shall be entitled to make proper withholdings from Employee’s Base Salary as required by law or agreed to by Employee. 
  
 1.5 Benefits. During the Employment Term, Employee shall be (a) entitled to the benefits described in
Exhibit A and to participate in such retirement, profit sharing, group insurance, life insurance, long-term disability, medical/dental and any other fringe benefit plans, if any, as may be authorized from time to time by the Board in its sole
discretion for officers of the Company generally, in accordance with the applicable plan documents, and (b) entitled to four weeks of paid vacation, in addition to customary holidays in accordance with the Company’s normal personnel policies.
Accrued and unused vacation time may be carried forward into the subsequent year only if approved in writing by the Committee, Board or Chief Executive Officer of the Company. 
  
 1.6 Incentive Compensation. Employee shall be entitled to participate in such incentive compensation or bonus
plans, if any, as may be established from time to time in respect of each complete fiscal year during the Employment Term by the Board or the Committee in their sole discretion, the terms and provisions of which shall also be in the sole discretion
of the Board or the Committee. In addition, with respect to each calendar year during the Employment Term, Employee will be entitled to receive an annual bonus, providing the Company’s performance is no less than eighty percent (80%) of the
revenue and EBIT (earnings before interest and tax) targets, payable no later than 100 days after the end of such calendar year, in a minimum amount equal to 20% of his Base Salary and a maximum amount equal to 60% of his Base Salary, and based on
performance milestones significant to the progress of the Company to be established by the Board upon the recommendation of the Committee based upon criteria to be submitted to the Committee by the end of the first calendar quarter of each year by
the Chief Executive Officer. 

 1.7 Stock Options. In consideration for Employee’s execution of this Agreement, the
Committee has granted to Employee, as of the date of execution hereof (“Execution Date”), subject to the execution and delivery of this Agreement, a nonqualified stock option to purchase twenty thousand (20,000) shares of Common Stock of
the Company pursuant to the Company’s Equity Compensation Plan and a stock option agreement in the form used generally by the Company, a copy of which is attached hereto. Notwithstanding anything herein to the contrary, Employee’s rights
and entitlements with respect to such options will be governed by the terms of such stock option agreement and Equity Compensation Plan. 
  
 1.8 Expenses. The Company shall reimburse Employee on a timely basis for all ordinary and necessary out-of-pocket business expenses incurred
in connection with the discharge of his duties and responsibilities hereunder during the Employment Term in accordance with the Company’s expense approval procedures then in effect and upon presentation to the Company of an itemized account and
written proof of such expenses. 
  
 2. Confidential Information.
Employee recognizes and acknowledges that by reason of employment by and service to the Company, he has had and will continue to have access to financial, proprietary and other confidential information of the Company and its affiliates, including,
without limitation, information and knowledge pertaining to products and services offered, research ideas, methods and results, innovations, designs, ideas, plans, trade secrets, proprietary information, distribution and sales methods and systems,
sales and profit figures, customer and client lists, and relationships between the Company and its affiliates, distributors, customers, clients, suppliers and other who have business dealings with the Company and its affiliates (“Confidential
Information”). Employee acknowledges that such Confidential Information is a valuable and unique asset and covenants that he will not, either during or after the term of this Agreement, disclose any such Confidential Information to any person
for any reason whatsoever without the prior written authorization of the Board, unless such information is in the public domain through no fault of Employee or except: (a) as may be required by law with prior notice to the Company; or (b) in the
course of his employment hereunder and solely in furtherance of the interests of the Company and its affiliates. Employee agrees that immediately upon the request of the Company and in any event upon termination of his employment with the Company,
he will deliver to the Company (and will not keep in his possession or deliver to anyone else) all Confidential Information whether developed by him pursuant to his employment with the Company or otherwise belonging to the Company. 
  
 3. Developments. All developments, including inventions, whether
patentable or otherwise, trade secrets, discoveries, improvements, ideas and writings which either directly or indirectly relate to or may be useful in the business of the Company or any of its affiliates (the “Developments”) which
Employee, either by himself or in conjunction with any other person or persons, shall conceive, make, develop, acquire or acquire knowledge of during the Employment Term or at any time thereafter during which he is employed by the Company, shall
become and remain the sole and exclusive property of the Company. Employee hereby assigns, transfers and conveys, and agrees to so assign, transfer and convey, all of his right, title and interest in and to any and all such Developments and to
disclose fully as soon as practicable, in writing, all such Developments to the Company. At any time and from time to time, upon the request and at the expense of the Company, Employee will execute and deliver any and all instruments, documents and
papers, give evidence and do any and all other acts which, in the opinion of counsel for the 

 Company, are or may be necessary or desirable to document such transfer or to enable the Company to file and prosecute
applications for and to acquire, maintain and enforce any and all patents, trademark registrations or copyrights under United States or foreign law with respect to any such Developments or to obtain any extension, validation, re-issue, continuance
or renewal of any such patent, trademark or copyright. The Company will be responsible for the preparation of any such instruments, documents and papers and for the prosecution of any such proceedings and, after employment terminates, will reimburse
Employee for all reasonable expenses incurred by him in compliance with the provisions of this Section. 
  
 4. Non-Competition. 
  
 4.1 During the Employment Term and for a period of two years thereafter, Employee will not, without prior written consent of the Board, directly or indirectly, own, manage, operate, join, control, finance or participate in the
ownership, management, operation, control or financing of, or be connected as an officer, director, employee, partner, principal, agent, representative, consultant or otherwise with or use or permit his name to be used in connection with, any
business or enterprise engaged within any state of the United States, the District of Columbia or any foreign jurisdiction in any business that competes with the business of the Company business as in effect either during the Employment Term or on
the date Employee’s employment terminates, as applicable. It is recognized by Employee that the business of the Company and Employee’s connection therewith is or will be international in scope, and that geographical limitations on this
non-competition covenant and the non-solicitation covenant set forth in Section 5 are therefore not appropriate. 
  
 4.2 The foregoing restriction shall not be construed to prohibit the ownership by Employee of not more than five percent (5%) of any class of
securities of any corporation which is engaged in any of the foregoing businesses having a class of securities registered pursuant to the Securities Exchange Act of 1934, provided that such ownership represents a passive investment and that neither
the Employee nor any group of persons including Employee in any way, either directly or indirectly, manages or exercises control of any such corporation, guarantees any of its financial obligations, otherwise takes part in its business, other than
exercising his rights as a shareholder, or seeks to do any of the foregoing. 
  
 5. No Solicitation. Employee agrees that during the Employment Term and for a period of two years thereafter, Employee will not, either directly or indirectly, (i) call on or solicit any person, firm, corporation or other
entity who or which at the time of the termination of Employee’s employment was, or within one year prior thereto had been, a customer of the Company or any of its affiliates for the purpose of offering competitive goods or services or (ii)
solicit the employment of any person who was employed by the Company or any of its affiliates on a full or part-time basis at the time of Employee’s termination of employment, unless such person (a) was involuntarily discharged by the Company
or such affiliate, or (b) voluntarily terminated his relationship with the Company or such affiliate prior to Employee’s termination of employment. 

 6. Equitable Relief. 
  
 6.1 Employee acknowledges that the restrictions contained in Sections 2, 3, 4 and 5 hereof are reasonable and
necessary to protect the legitimate interests of the Company and its affiliates, that the Company would not have entered into this Agreement in the absence of such restrictions, and that any violation of any provision of those Sections may result in
irreparable injury to the Company and its affiliates (each of which shall be deemed a third party beneficiary of such restriction). Employee represents and acknowledges that (a) he has been advised by the Company to consult his own legal counsel in
respect of this Agreement, and (b) that he has had full opportunity, prior to execution of this Agreement, to review thoroughly this Agreement with his counsel. 
  

6.2 Employee agrees that each of the Company and its affiliates shall be entitled to preliminary and permanent injunctive relief, without the
necessity of proving actual damages, as well as to an equitable accounting of all earnings, profits and other benefits arising from any violation of Section 2, 3, 4 or 5 hereof, which rights shall be cumulative and in addition to any other rights or
remedies to which the Company or any affiliate may be entitled. In the event that any provisions of Section 2, 3, 4 or 5 hereof should ever be adjudicated to exceed time, geographic, service or other limitations permitted by applicable law in any
jurisdiction, then such provision shall be deemed reformed in such jurisdiction to the maximum time, geographic, service, or other limitations permitted by applicable law. 
  
 6.3 Employee and the Company irrevocably and unconditionally (i) agree that any suit, action or other legal
proceeding arising out of this Agreement, including without limitation, any action commenced by the Company for preliminary and permanent injunctive relief and other equitable relief, may be brought in any court of competent jurisdiction in the
State of North Carolina, provided that any suit, action or other legal proceeding brought against the Company shall be brought and adjudicated in the United States District Court for the Eastern District of North Carolina or, if such court will not
accept jurisdiction, in any court of competent civil jurisdiction sitting in Wake County, North Carolina, (ii) consent to the jurisdiction of any such court in any such suit, action or proceeding and (iii) waive any objection which Employee or the
Company may have to the laying of venue of any such suit, action or proceeding in any such court. Employee and the Company also irrevocably and unconditionally consent to the service of any process, pleading, notices or other papers in any manner
permitted by the notice provisions hereof. 
  
 6.4 Employee
agrees that he will provide, and that the Company may similarly provide, a copy of Sections 2, 3, 4, and 5 of this Agreement to any business or enterprise (i) which he may directly or indirectly own, manage, operate, finance, join, control or
participate in the ownership, management, operation, financing, control or control of, or (ii) with which he may be connected with as an officer, director, employee, partner, principal, agent, representative, consultant or otherwise, or in
connection with which he may use or permit his name to be used; provided, however, that this provision shall not apply in respect of Sections 4 and 5 of this Agreement after expiration of the time periods set forth therein. 
  
 7. Termination. This Agreement shall terminate prior to the expiration of the
Employment Term upon the occurrence of any one of the following events: 
  
 7.1 Disability. The Company may terminate this Agreement if Employee is unable fully to perform his duties and responsibilities hereunder to the full extent required by the Board 

 by reason of illness, injury or incapacity for six (6) consecutive months, or for more than six (6) months in the
aggregate during any period of twelve (12) calendar months, during which time he shall continue to be compensated as provided in Section 1 hereof. In such event, the Company shall have no further liability or obligation to Employee for compensation
or other benefits under this Agreement except (i) as may be provided under any disability benefit plan or other employee benefit plan and program which may be in effect and in which he participated, and (ii) Employee shall be entitled to receive a
pro rata portion of the incentive compensation pursuant to Section 1.6 in respect of the year during which Employee first became disabled. The right and benefits of Employees under any such employee benefit plans and programs will be determined in
accordance with the terms and provisions of such plans and programs. Notwithstanding the foregoing, in no event shall Employee be entitled to Base Salary and/or Bonus under this Agreement and Monthly Benefits under the Company’s Long Term
Disability Plan for the same period of disability; and provided further, in the event that Employee becomes eligible for Monthly Benefits under the Company’s Long Term Disability Plan, such benefits shall offset, on a dollar for dollar basis,
benefits otherwise payable under this Section 7.1. Employee agrees, in the event of any dispute under this Section 7.1, to submit to a physical examination by an independent, licensed physician selected by the Board. 
  
 7.2 Death. This Agreement shall terminate if Employee dies
during the Employment Term. In such event, the Company shall pay to Employee’s executors, legal representatives or administrators an amount equal to the installment of his Base Salary set forth in Section 1.4 hereof for the month in which he
dies, all accrued incentive compensation pursuant to Section 1.6 and a pro rata portion of the incentive compensation pursuant to Section 1.6 in respect of the year during which Employee died, and, thereafter, the Company shall have no further
liability or obligation under this Agreement to his executors, legal representatives, administrators, heirs or assigns or any other person claiming under or through him, except as may be provided under any employee benefit plan or compensation
program which may be in effect for employees of the Company and in which he participated. The rights and benefits of Employee under any such employee benefit plans and programs will be determined in accordance with the terms and provisions of such
plans and programs. 
  
 7.3 Cause. The Company may
terminate this Agreement, at any time, for “cause”. For purposes of the Agreement, Employee’s employment may be terminated for “cause” if: (a) he engages in gross misconduct, or dishonesty (which in either case results in
material harm to the Company); (b) materially fails to perform or observe any of the terms or provisions of this Agreement (c) fails to carry out reasonable directives of the Chief Executive Officer of the Company or the Board in accordance with
Section 1.2; or (d) is convicted of a felony or is involved in substance abuse; provided, however, that “cause” shall not include bad judgment or any act or omission reasonably believed by Employee in good faith to have been in or not
opposed to the best interests of the Company, and provided further, however, that in any event, Employee shall be given written notice by the Board that the Company intends to terminate Employee’s employment for cause, which written notice
shall specify the act or acts on the basis of which the Company intends so to terminate Employee’s employment, and Employee shall then be given the opportunity, within fifteen (15) days of his receipt of such notice, to have a meeting with the
Board to discuss such act or acts. If the basis of such written notice is an act or acts other than an act or acts described in clause (d) of the preceding sentence, Employee will be given seven (7) days after such meeting within which to cease or
correct the performance (or 

 nonperformance) or to cure the harm giving rise to such written notice and, upon failure of Employee within such seven
(7) day period to cease or correct same, Employee’s employment by the Company shall automatically terminate hereunder for cause. If Employee ceases or cures to the satisfaction of the Board of Directors, the Employee’s employment agreement
shall continue in accordance with the terms hereof. Upon such termination or removal, Employee shall be entitled to all accrued Base Salary and a pro rata portion of all incentive compensation for the year in which termination occurs,
and any benefits due under any compensation or benefit plan including those listed in Section 1 hereof provided by the Company for officers generally or otherwise. 
  
 7.4 Change in Control Termination. 
  
 7.4.1 For purposes of this Agreement, a “Change in Control” shall be deemed to have occurred if: 
  
 (a) As a result of a tender offer, stock purchase, other stock acquisition,
merger, consolidation, recapitalization, reverse split, or sale or transfer of assets, any person or group (as such terms are used in and under Section 13(d) of the Exchange Act), but excluding Rolf D. Schmidt and F.W. Schmidt or any entity
controlled by either or both of them, becomes the beneficial owner (as defined in Rule 13-d under the Exchange Act), directly or indirectly, of securities of the Company representing more than 50.1% of the common stock of the Company or the combined
voting power of the Company’s then outstanding securities; or 
  
 (b) A liquidation or dissolution of the Company, or a sale (excluding transfers to subsidiaries) of all or substantially all of the Company’s assets occurs. 
  
 7.4.2 After the occurrence of a Change in Control, Employee shall be entitled to receive payment and benefits pursuant to
this Agreement if, after the occurrence of a Change in Control, his employment with the Company is terminated under any of the following circumstances: (a) the Company terminates Employee’s employment for reasons other than “Cause,”
“Disability,” or death; or (b) the Employee terminates his employment with the Company for “Good Reason.” For purposes of this Agreement, “Good Reason” shall mean the occurrence within one (1) year after a Change in
Control of any of the following events or conditions: (i) a material adverse change in the Employee’s status, title, position or responsibilities from that in effect immediately prior to the Change in Control; (ii) a reduction in the
Employee’s salary; (iii) the Company’s requiring the Employee to relocate beyond a twenty-five (25) mile radius from Raleigh, North Carolina; (iv) any purported termination of Employee’s employment for cause or disability without
grounds therefor; (v) any material breach by the Company of any provision of this Agreement; or (vi) the failure of the Company to obtain an agreement, satisfactory to the Employee, from any successor or assign of the Company to assume and agree to
perform this Agreement. 
  
 7.4.3 In the event that
Employee’s employment with the Company terminates under any of the circumstances described in Section 7.4.2 above, Employee shall be entitled to receive all of the following: (a) All accrued compensation and any pro rata incentive
compensation Employee may have earned up to the date of termination; (b) A continuation for one year from date of termination of Employee’s then current annual salary, and incentive 

 compensation and benefits hereunder. The Company shall maintain in full force and effect, for one (1) year after the date
of termination, all benefit plans and programs in which Employee was entitled to participate immediately prior to the date of termination, provided that Employee’s continued participation is possible under the general terms and provisions of
such plans and programs. Employee’s continued participation in such plans and programs shall be at no greater cost to Employee than the cost he bore for such participation immediately prior to the date of termination. If Employee’s
participation in any such plan or program is barred, the Company shall arrange upon comparable terms, and at no greater cost to Employee than the cost he bore for such plans and programs prior to the date of termination, to provide Employee with
benefits substantially similar to those which he is entitled to receive under any such plan or program. 
  
 7.5 Other Terminations. 
  
 7.5.1 Employee may terminate this Agreement upon ten (10) days’ prior written notice to the Company if the Company fails to fulfill any of the
material terms and provisions hereof including the failure to pay Employee any amounts payable hereunder within ten (10) business days after the same shall be due and payable. Provided, however, that Company shall be given the opportunity, within
five (5) business days of its receipt of such written notice, to have a meeting with Employee to discuss any alleged failure to fulfill any of the material terms and provisions of this Agreement. The Company will be given five (5) days after such
meeting within which to cure the alleged violation of this Agreement giving rise to such written notice. If the Company cures to the satisfaction of Employee, this Agreement shall continue in accordance with the terms hereof. In the event of such
termination, and upon Employees execution of a Release and Confidentiality Agreement, Employee shall be entitled to receive payment of his Base Salary, all incentive compensation pursuant to Section 1.6 and all other benefits and compensation to
which he would have been entitled under this Agreement until the end of the Employment Term. Employee understands that he is not otherwise entitled to receive the foregoing consideration, which is being provided in exchange for his execution of the
above-referenced Release and Confidentiality Agreement. 
  
 7.5.2
Employee may voluntarily terminate this Agreement upon thirty (30) days’ prior written notice for any reason; provided, however, that no further payments shall be due under this Agreement in that event except that Employee shall be entitled to
all accrued compensation and a pro rata portion of all incentive compensation for the year in which termination occurs, and any benefits due under any compensation or benefit plan including those listed in Section 1 hereof provided by
the Company for officers generally or otherwise. 
  

	7.5.3	In the event Employee terminates this Agreement pursuant to Section 1.1, no further payments shall be due to Employee under this Agreement except that Employee shall be entitled to
all accrued Base Salary and a pro rata portion of all incentive compensation for the year in which the termination occurs, and any benefits due under any compensation or benefit plan including those listed in Section 1 hereof provided
by the Company for officers generally or otherwise. 

  
 8.
Working Facilities. The Employee shall be provided with an office, and such other facilities and services as may be suitable to Employee’s position in accordance with manpower plan approved by the Board. 

 9. Location. Employee shall not be required, without his consent, to render services at any place other
than the area of Raleigh, North Carolina; however; Employee may be asked to travel in connection with the Company’s business as reasonably appropriate for the performance of his duties. 
  
 10. Professional Dues and Continuing Education. The Company agrees to reimburse
the Employee for reasonable professional dues and continuing education expenses necessary to maintain applicable certifications upon approval by the Company’s Chief Executive Officer or the Board. 
  
 11. Indemnification. The Company shall indemnify the Employee, to the maximum
extent permitted by applicable law, against all costs, charges and expenses incurred or sustained by him in connection with any action, suit or proceeding to which he may be a party or in which he may be a witness by reason of his being an officer,
director or employee of the Company or of any subsidiary or affiliate of the Company. 
  
 12. Survival. Notwithstanding the termination of this Agreement, the Company’s obligations under Sections 1.4, 1.5, 1.6, 1.7, 1.8, 6.3, 7 and 11 and Employee’s obligations under Sections 2, 3, 4, 5, 6, and 7 shall
survive and remain in full force and effect. 
  
 13. Governing Law.
This Agreement shall be governed by and interpreted under the laws of the State of North Carolina without giving effect to any conflict of law provisions. 
  
 14. Notices. All notices and other communications hereunder or in connection herewith shall be in writing and shall be deemed to have been given when
delivered by hand or reputable express delivery service, mailed by certified or registered mail, return receipt requested, or sent by fax to the party as follows (provided that notice of change of address shall be deemed given only when received):

  
 If to the Company, to: Closure Medical Corporation 

5250 Greens Dairy Road 
 Raleigh, North
Carolina 27616 
 Fax: (919) 876-7874 
 Attn: Daniel A. Pelak, CEO 
  
 If to Employee,
to:                      Gabriel N. Szabo 
 c/o Closure Medical Corporation 
 5250 Greens Dairy Road 
 Raleigh, NC 27616 
  
 or to such other names or addresses as the Company or Employee, as the case may be, shall designate by notice to the other person in the manner specified
in this Section. 

 15. Miscellaneous. 
  
 15.1 This Agreement supersedes all prior agreements and sets forth the entire understanding among the parties hereto with
respect to the subject matter hereof and cannot be changed, modified, extended or terminated except upon written amendment approved by the Board and executed on the Company’s behalf by a duly authorized officer. 
  
 15.2 All of the terms of this Agreement shall be binding upon and inure to
the benefit of and be enforceable by the respective heirs, executors, administrators, legal representatives, successors and assigns of the parties hereto, (including without limitation, any person, partnership, company or corporation which may
acquire substantially all of the Company’s assets or business or with or into which the Company may be merged, liquidated, consolidated or otherwise combined), except that the duties and responsibilities of Employee hereunder are of a personal
nature and shall not be assignable or delegatable in whole or in part by Employee. 
  
 15.3 If any provision of this Agreement or application thereof to anyone or any circumstances is held invalid or unenforceable in any jurisdiction, the remainder of this Agreement, and the application of such
provision to such person or entity or such circumstance in any other jurisdiction or to other persons, entities or circumstances in any jurisdiction, shall not be affected thereby, and to this end the provisions of this Agreement are severable.

  
 15.4 No remedy conferred upon the Company or Employee by this
Agreement is intended to be exclusive of any other remedy, and each and every such remedy shall be cumulative and shall be in addition to any other remedy given hereunder or now or hereafter existing at law or in equity. No delay or omission by the
Company or Employee exercising any right, remedy or power hereunder or existing at law or in equity shall be construed as a waiver thereof, and any such right, remedy or power may be exercised by the Company or Employee from time to time and as
often as may be deemed expedient or necessary by the Company or Employee in its sole discretion. 
  
 15.5 All section headings are for convenience only. This Agreement may be executed in several counterparts, each of which shall be original. It shall not
be necessary in marking proof of this Agreement or any counterpart hereof to produce or account for any of the other counterparts. 
  
 15.6 If either party should file a lawsuit against the other to enforce any right such party has hereunder, the prevailing party shall also be entitled to
recover a reasonable attorney’s fee and costs of suit in addition to other relief awarded such prevailing party. 

 IN WITNESS WHEREOF, the undersigned, intending to be legally bound, have executed this Agreement as of the date first
above written. 
  

			
	 CLOSURE MEDICAL CORPORATION

		
	 By:
	 	 DANIEL A. PELAK

	 	 	 Daniel A. Pelak
 President and Chief Executive Officer

		
	 	 	 December 17, 2003

 Date

  

	
	AGREED TO AND ACCEPTED:
	
	 GABRIEL N. SZABO

	

	 Gabriel N. Szabo

	
	 December 19, 2003

	 Date

  

 EXHIBIT A 
  
 Employee’s Benefits 
  
 MEDICAL/DENTAL INSURANCE. The Company will provide, at no charge, medical and dental insurance for Employee and his dependents.

  
 LIFE INSURANCE. The Company will provide life insurance based upon
Employee’s salary or position. The amount of an employee’s coverage is four times annual salary-set forth in Section 1.4 of the Employment Agreement, up to a limit of $600,000. 
  
 ACCIDENTAL DEATH AND DISMEMBERMENT (AD&D) INSURANCE. The Company will provide AD&D insurance for Employee. This program pays
a benefit if Employee dies or is seriously injured as a direct result of an accident. The benefits received vary according to the nature of the injury and the Employee’s salary or position. 
  
 SALARY CONTINUATIONS. Salary continuation takes effect after Employee has been absent
from work for more than three continuous weeks due to medical reasons. Employee earns one month of salary continuation at normal pay up to a maximum of six months or until LTD insurance begins, whichever occurs first. Certification by a physician is
required prior to any salary continuation payment. 
  
 LONG-TERM
DISABILITY. Employee is eligible for long-term disability (LTD) after being accepted by insurance company. LTD payments begin after six months of disability and are based on a certain portion of normal pay up to a certain maximum dollar amount
per month.Clark Employment Agreement

 EXHIBIT 10.27 
  
 AMENDED AND RESTATED 
 EMPLOYMENT AGREEMENT 
  
 THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the “Agreement”), effective as of January 8, 2004 (the “Effective Date”), is made between JEFFREY G. CLARK (“Employee”) and CLOSURE MEDICAL CORPORATION, a
Delaware corporation with its principal place of business in Raleigh, North Carolina (“Employer”). 
  
 WHEREAS, Employee currently works for Employer pursuant to an Employment Agreement dated as of May 31, 1996, as extended or renewed (the
“Original Agreement”), in a capacity as a Vice President of Employer, which relationship the parties mutually have decided to amend and restate as set forth below; and 
  
 WHEREAS, Employer desires to continue to employ Employee for the term of this Agreement and Employee desires to
accept such employment, and the parties wish to amend and restate in its entirety the Original Agreement under all of the terms and conditions set forth herein; 
  

NOW, THEREFORE, in consideration of the terms, conditions, premises, and the mutual covenants set forth herein, the parties to this Agreement
hereby agree as follows: 
  
 1. Employment

  
 (a) Scope and Nature of Employment Assignment.

  
 (i) Employer hereby employs Employee in the position or
capacity of an employee on “Special Assignment,” subject to the direction of the President and Chief Executive Officer of Employer, and Employee accepts such employment. The President and Chief Executive 

 
Officer of Employer and Employee shall mutually agree on the nature and scope of each special assignment, the Employee’s deliverables for each
assignment, and an estimated timeframe for the completion of each special assignment. During the Term, Employee may work on each special assignment at his home, or other location convenient to Employee. Upon request by Employer and subject to
Employee’s schedule, Employee shall travel on behalf of Employer in connection with such special assignments. 
  
 (b) Expenses. Employer shall reimburse Employee on a timely basis for all ordinary and necessary out-of-pocket business expenses incurred in
connection with the discharge of his duties and responsibilities hereunder during the Term (defined below) in accordance with the Employer’s expense approval procedures then in effect and upon presentation to the Employer of an itemized account
and written proof of such expenses. 
  
 2. Term of
Agreement. The term of this Agreement (the “Term”) shall begin on the Effective Date and expire at 5:00 p.m. local time on January 7, 2006, unless it is terminated sooner in accordance with, and subject to, Paragraph 6 herein. On
January 7, 2006, unless terminated sooner pursuant to Paragraph 6 herein, Employee’s employment also shall terminate. 
  
 3. Compensation. 
  
 (a) In General. The term “Compensation” shall mean Employee’s “Base Salary” and “Incentive Compensation,” as
defined below. 
  
 (b) Base Salary: 
  

	 	(i)	 During the Term, Employer shall pay Employee, utilizing payroll practices consistent with those applicable to employees of 

	 	 
Employer at the time such payments are made, a Base Salary at an annual rate of one hundred five thousand dollars ($105,000), less applicable and usual tax
and other withholdings and employee contributions to benefit plans. 

  
 (c) Incentive Compensation: 
  

	 	(i)	Employer shall pay a bonus award to Employee, in the amount of fifty-two thousand five hundred dollars ($52,500) in the calendar year 2004, and fifty-two thousand five
hundred dollars ($52,500) in the calendar year 2005, payable in equal installments, combined with the Base Salary payments during the Term, utilizing payroll practices consistent with those applicable to employees of Employer at the time such
payments are made, less applicable and usual tax and other withholdings, and subject to the provisions of Paragraphs 6. 

  
 4. Stock Options: 
  

	 	(a)	Additional Grants. Employee shall not be entitled to any additional grants of stock options after the Effective Date. 

  

	 	(b)	Vesting. 

  

	 	i.	“In-the-money” Options. With respect to all of Employee’s stock options which on the Effective Date have an exercise price below the market price of the stock
(“in-the-money”) and are unvested, such options shall continue to vest, in accordance with the terms of the grants, during the Term such that Employee’s service under this Agreement shall be deemed employment service under
Employer’s stock option plan. 

	 	ii.	“Out-of-Money” Options. With respect to all of Employee’s unvested stock options which on the Effective Date only have an exercise price in excess of the
market price of the stock (“out-of-money”), all such unvested options shall automatically vest on the Effective Date. This provision does not apply to any options which become “out-of-money” subsequent to the Effective Date.

  

	 	(c)	Exercise Period. 

  

	 	i.	All stock options which are fully vested as of the date of termination of this Agreement, (January 7, 2006, or earlier if this Agreement is terminated pursuant to the provisions of
Paragraph 6), and were “in-the-money” on the Effective Date, shall be fully exercisable in accordance with the terms of the Closure Medical Corporation Amended and Restated 1996 Equity Compensation Plan, i.e., for a period up to ninety
(90) days from termination of employment. 

  

	 	ii.	All of Employee’s stock options which were “out-of-money” on the Effective Date only, are fully vested and fully exercisable through December 31, 2006.
Employee’s “out-of-money” options which were already vested on the Effective Date are also fully exercisable through December 31, 2006. 

 5. Benefits. During the Term, Employee shall be entitled to participate in such non-officer
retirement, profit sharing, stock purchase plans, group insurance, life insurance, short-term disability, long-term disability, medical/dental and any other fringe benefit plans, if any. Employee shall no longer be entitled to receive payment from
Employer for deductible medical expenses, for Employee or his dependents. Payment for vacation time shall be deemed made with any payment of salary, whether the time is taken or not taken. No additional payment for vacation time shall be made to
Employee. 
  
 6. Termination. 
  
 (a) In General. This Agreement shall terminate only upon the
expiration of its Term, unless terminated sooner as set forth below; provided, however, that certain obligations of the parties hereto shall survive termination of the Agreement, as may be specified herein. 
  

	 	b)	Involuntarily, for “Cause” by Employer. Employer hereby specifically reserves the right to terminate this Agreement and Compensation and employee benefits otherwise
due in the future under Paragraphs 3 through 5 immediately “for cause”; provided, however, that such termination shall not apply or cause a forfeiture of any benefits with respect to which Employee has a vested interest or in contravention
to his rights under ERISA with respect to such plan or program. As used herein, the term “for cause” shall mean willful misconduct or gross negligence by Employee that causes demonstrable injury to the reputation of the Employer and its
affiliates, material breach of this Agreement by Employee (such as breach of the non-competition provision of Paragraph 8), theft by Employee from the Employer, or interference with the business operations of the Employer. 

	 	c)	Notwithstanding the foregoing, before Employer may terminate this Agreement “for cause,” Employee must be given thirty (30) days’ advance written notice of the act
giving rise to the reason “for cause,” and the opportunity to cure (if it can be cured) within such thirty (30) day notice period, and, provided further, that the term “interference with the business operations of Employer” shall
not be deemed to include Employee discharging his ordinary duties as an employee of any subsequent employer. 

  

	 	d)	Voluntarily, by Employee. Employee may terminate this Agreement prior to the expiration of the Term at any time upon notice to Employer. Such voluntary termination, for
reasons other than Employee commencing regular, full-time employment, shall terminate all compensation and benefits provided in Paragraphs 3 and 5 of this Agreement. 

  

	 	e)	Automatically, by Employee Commencing Regular, Full-Time Employment Prior to Termination of Agreement. If Employee commences regular, full-time employment with another
employer prior to January 7, 2006, this Agreement shall terminate (subject to the survival provisions in Paragraph 21, and Employer shall be obligated to make such payments and provide such coverages or benefits as follows: 

 

	 	(i)	accrued Base Salary to the date of termination; 

  

	 	(ii)	accrued Incentive Compensation as defined in Paragraph 3 (c) above; 

  

	 	(iii)	With respect to stock options, the provisions of Paragraph 4 (b) and (c) shall apply. 

  
 7. Confidential Information. Employee agrees that in addition to any other limitations to which he already is
subject, regardless of the circumstances of the termination of his employment with Employer, he shall not communicate to any person, or entity any 

 confidential information relating to customer lists, prices, advertising, or any other confidential knowledge which he
has or might from time to time acquire with respect to the business of Employer or information received from third parties for which there is an obligation to maintain as confidential. This provision shall not apply to confidential information which
(i) becomes known to the public, through no act or failure to act on the part of Employee and (ii) is required to be disclosed by law or by court order, provided that Employer has been given sufficient advance written notice to permit Employer to
seek a protective or other similar order or other remedy. 
  
 8.
Non-Competition. 
  
 (a) During the Term and for a
period of one (1) year thereafter, Employee shall not, without the prior written consent of Employer, directly or indirectly, own, manage, operate, join, control, finance or participate in the ownership, management, operation, control or financing
of, or be connected as an officer, director, employee, partner, principal, agent, representative, consultant, or otherwise with or use or permit his name to be used in connection with, any business or enterprise engaged within any state of the
United States, the District of Columbia or any foreign jurisdiction in any business that competes with the business of Employer’s business as in effect either during the Term or on the date Employee’s employment terminates, as applicable.
It is recognized by Employee that the business of the Employer and Employee’s connection therewith is or will be international in scope, and that geographical limitations on this non-competition covenant and the non-solicitation covenant set
forth in Paragraph 9 are therefore not appropriate. 
  
 (b) The
foregoing restriction shall not be construed to prohibit the ownership by Employee of not more than five percent (5%) of any class of securities of any corporation 

 
which is engaged in any of the foregoing businesses, having a class of securities registered pursuant to the Securities Exchange Act of 1934, provided that
such ownership represents a passive investment and that neither the Employee nor any group of persons including Employee in any way, either directly or indirectly, manages or exercises control of any such corporation, guarantees any of its financial
obligations, otherwise takes part in its business, other than exercising his rights as a shareholder, or seeks to do any of the foregoing. 
  
 9. No Solicitation. Employee agrees that during the employment Term and for a period of one (1) year thereafter, Employee shall not, either
directly or indirectly, (i) call on or solicit any person or entity who or which at the time of the termination of Employee’s employment was, or within one year prior thereto had been, a customer of the Employer or its affiliates, or (ii)
solicit the employment of any person who was employed by the Employer or any of its affiliates on a full or part-time basis at the time of Employee’s termination of employment, unless such person (a) was involuntarily discharged by the Employer
or such affiliate, or (b) voluntarily terminated his relationship with the Employer or such affiliate prior to Employee’s termination of employment. 
  
 10. Assignment. This Agreement shall be binding upon and inure to the benefit of Employer, and its respective successors, assigns, and legal
representatives, as applicable; provided, however, that neither this Agreement nor any rights or obligations hereunder will be assignable or otherwise subject to hypothecation by Employee or by the Employer, except that Employer may assign this
Agreement to any successor (whether by merger, purchase or otherwise) to all or substantially all of the stock, assets or businesses of Employer, if such successor expressly agrees to assume the obligations of Employer hereunder. 

 11. Entirety. This Agreement embodies the entire understanding and agreement between the
parties relative to the subject matter hereof. 
  
 12.
Controlling Law. The interpretation and performance of this Agreement shall be governed by the laws of the State of North Carolina, to the extent not otherwise preempted by the Employee Retirement Income Security Act of 1974
(“ERISA”). 
  
 13. Release. EMPLOYEE, ON
BEHALF OF HIMSELF, HIS HEIRS, AGENTS, SUCCESSORS, ASSIGNS AND REPRESENTATIVES, HEREBY WAIVES, RELEASES AND DISCHARGES EMPLOYER AND ITS PAST, PRESENT AND FUTURE OWNERS, PARENTS, SUBSIDIARIES, AFFILIATES, PREDECESSORS, SUCCESSORS, ASSIGNS, OFFICERS,
DIRECTORS, STOCKHOLDERS, EMPLOYEES, EMPLOYEE BENEFIT PLANS, PLAN ADMINISTRATORS AND AGENTS (COLLECTIVELY, “PERSONS”), WITH RESPECT TO ANY AND ALL ACTIONS INCLUDING, BUT NOT LIMITED TO, CLAIMS, LIABILITIES OR DEMANDS CONCERNING, BASED UPON
OR ARISING OUT OF ANY ALLEGED WRONGFUL TERMINATION, BREACH OF EMPLOYMENT CONTRACT, BREACH OF THE IMPLIED COVENANT OF GOOD FAITH AND FAIR DEALING, DEFAMATION, WORKERS’ COMPENSATION, INTENTIONAL OR NEGLIGENT INFLICTION OF EMOTIONAL DISTRESS,
HARASSMENT, OR DISCRIMINATION BASED ON RACE, NATIONAL ORIGIN, SEX, RELIGION, AGE OR HANDICAP, (INCLUDING, WITHOUT LIMITATION, CLAIMS OR RIGHTS UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967 AS AMENDED OR SIMILAR STATE LAWS).

  
 EMPLOYER, ON BEHALF OF ITSELF, ITS OFFICERS, DIRECTORS, STOCKHOLDERS, AGENTS,
EMPLOYEES, PREDECESSORS, SUCCESSORS, ASSIGNS, PAST, PRESENT 

 
AND FUTURE OWNERS, PARENTS, SUBSIDIARIES, AFFILIATES, REPRESENTATIVES, AND ALL PERSONS ACTING ON ITS BEHALF HEREBY WAIVES, RELEASES AND DISCHARGES EMPLOYEE,
HIS HEIRS, AGENTS, SUCCESSORS, ASSIGNS, REPRESENTATIVES AND ALL PERSONS ACTING ON HIS BEHALF FROM ANY AND ALL CLAIMS, LIABILITIES, COSTS, ATTORNEY’S FEES, EXPENSES, ACTIONS OR CAUSES OF ACTION OF ANY KIND OR CHARACTER WHATSOEVER, WHETHER AT LAW
OR EQUITY, WHETHER KNOWN OR UNKNOWN, WHETHER CONTINGENT OR ABSOLUTE, WHICH EMPLOYER NOW HAS, EVER HAD OR MAY HEREAFTER HAVE (OTHER THAN FOR BREACH OF FIDUCIARY DUTY, AND CRIMINAL ACTS) ARISING OUT OF EMPLOYEE’S EMPLOYMENT WITH EMPLOYER AND ANY
CORRESPONDING ACTS, OMISSIONS OR TRANSACTION RELATING THERETO. THIS RELEASE DOES NOT EXTEND TO ANY OF EMPLOYEE’S OBLIGATIONS INCURRED OR SPECIFIED UNDER THIS AGREEMENT OR EMPLOYEE’S BREACH OF THIS AGREEMENT. 
  
 THIS RELEASE DOES NOT COVER ANY RIGHTS EMPLOYEE MAY HAVE UNDER ANY PLAN COVERED BY ERISA, NOR
DOES THIS RELEASE COVER ANY ACT, ACTIONS, CLAIMS, LIABILITIES, DEMANDS OR OMISSIONS BY ANY PERSON OCCURRING ON OR AFTER THE EFFECTIVE DATE, OR ANY BREACH BY EMPLOYEE OR EMPLOYER OF THIS AGREEMENT. 
  
 14. Right to Attorney; Opportunity to Review. Employee
represents and agrees that: (i) he fully understands his right to have this Agreement reviewed by and to discuss all aspects of this Agreement with his private attorney and that to the extent, if any, he desires, he has availed himself to this
right; (ii) he has had a period of not less than twenty-one (21) days 

 within which to review and consider this Agreement and has used as much of this twenty-one (21) day period as he desired
prior to executing the same; and (iii) he is voluntarily entering into this Agreement. 
  
 15. Nondisclosure. Employer and Employee agree that the terms and provisions of this Agreement and all events leading thereto are to remain confidential and shall not be discussed by either of them,
after the date of execution of this Agreement, with anyone other than their respective attorneys, tax and financial planning advisors (and for Employee, immediate family members) or as otherwise required by law. Employer specifically agrees that
Employee may discuss the reasons his employment with Employer terminated, provided that Employee does not disparage or malign Employer. 
  
 16. Indemnification. Nothing in this Agreement shall terminate any obligation of Employer to defend or indemnify Employee for any act,
action, or omission by Employee while he was acting in the course and scope of his employment prior to the Effective Date or during the Term, as may be evidenced by any indemnification agreement between the parties, by-laws of Employer, or insurance
carried by Employer for this purpose; it being expressly understood that any indemnification protection afforded non-officer employees shall be afforded to Employee during the Term. 
  
 17. No Other Representations. The making, execution and delivery of this Agreement have been induced by no
representations, statements, warranties or agreements other than those expressed or referred to herein. 
  
 18. Miscellaneous. 
  
 (a) This Agreement supersedes all prior agreements, including without limitation, the Original Agreement which is hereby terminated, and this Agreement
sets forth the 

 
entire understanding between the parties hereto with respect to the subject matter hereof and cannot be changed, modified, extended or terminated except upon
written amendment approved by the Board of Directors of Employer and executed on the Employer’s behalf by a duly authorized officer. 
  
 (b) All of the terms of this Agreement shall be binding upon and inure to the benefit of and be enforceable by the legal representatives, successors and
assigns of Employer (including, without limitation, any person or entity which may acquire substantially all of the Employer’s assets or business or with or into which the Employer may be merged, liquidated, consolidated, or otherwise
combined), and the duties and responsibilities of Employee hereunder are of a personal nature and shall not be assignable or delegatable in whole or in part by Employee. 
  
 (c) If any provision of this Agreement or application thereof to anyone or any circumstances is held invalid or
unenforceable in any jurisdiction, the remainder of this Agreement, and the application of such provision to such person or entity or such circumstance in any other jurisdiction, or to other persons, entities or circumstances in any jurisdiction,
shall not be affected thereby, and to this end the provisions of this Agreement are severable. 
  
 (d) No remedy conferred upon the Employer or Employee by this Agreement is intended to be exclusive of any other remedy, and each and every such remedy shall be cumulative and shall be in addition to any other remedy
given hereunder or now or hereafter existing at law or in equity. No delay or omission by the Employer or Employee exercising any right, remedy or power hereunder or existing at law or in equity shall be construed as a waiver thereof, and any such
right, remedy or power may be exercised by the Employer or Employee from time to time and as often as may be deemed expedient or necessary by the Employer or Employee in its sole discretion. 

 (e) All section headings are for convenience only. This Agreement may be executed in several
counterparts, each of which shall be original. It shall not be necessary in marking proof of this Agreement or any counterpart hereof to produce or account for any of the other counterparts. 
  
 (f) If either party should file a lawsuit against the other to enforce any
right such party has hereunder, the prevailing party shall also be entitled to recover a reasonable attorney’s fee and costs of suit in addition to other relief awarded such prevailing party. 
  

	 	19.	Non-Disparagement and Cooperation. Both parties agree to refrain from making any disparaging remarks about the other; however, this provision is not intended to limit
the parties’ rights and obligations to speak the truth. Employee will use his best efforts to cooperate and transition the workload at the time of the termination of this Agreement. Employee shall take all necessary steps and cooperate with
Employer to assign, obtain, perfect, patent, register, explain, protect or enforce any protection for all ideas and/or inventions conceived by Employee while an Employee of Employer. 

  

	 	20.	 Developments. All developments, including inventions, whether patentable or otherwise, trade secrets, discoveries, improvements, ideas and writings
which either directly or indirectly relate to or may be useful in the business of Employer or any of its affiliates (the “Developments”) which Employee, either by himself or in conjunction with any other person or persons, shall conceive,
make, develop, acquire or acquire knowledge of during the Term, shall become and remain the sole and exclusive property of Employer. Employee hereby assigns, transfers and conveys, and 

	 	 
agrees to so assign, transfer and convey, all of his right, title and interest in an to any and all such Developments and to disclose fully as soon as
practicable, in writing, all such Developments to Employer. At any time and from time to time, including after the Term, upon the request and at the expense of Employer, Employee will execute and deliver any and all instruments, documents and
papers, give evidence and do any an all other acts which, in the opinion of counsel for Employer, are or may be necessary or desirable to document such transfer or to enable the Company to file and prosecute applications for and to acquire, maintain
and enforce law with respect to any such Developments (including past Developments) or to obtain any extension, validation, re-issue, continuance or renewal of any such patent, trademark or copyright. Employer will be responsible for the preparation
of any such instruments, documents and papers for the prosecution of any such proceedings and will reimburse Employee for all reasonable expenses incurred by him in compliance with the provisions of this Paragraph. 

  
 21. Survival. To the extent not otherwise inconsistent with any
other provision of this Agreement, the provisions of Paragraphs 7, 8, 9, 10, 13, 15,16, and 19 shall remain in full force and effect after termination or expiration of this Agreement for any reason for the terms specifically stated in each
referenced paragraph except that with regard to Paragraphs 10, 13, 15, 16,19 and 20 which provisions will be deemed not to expire or otherwise terminate. 
  
 22. Enforceability. This Agreement may be revoked by Employee during the seven (7) day period immediately following the date he executes
this Agreement. 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the dates indicated below.

  
 READ CAREFULLY. THIS DOCUMENT CONTAINS A RELEASE.

  

			
	 CLOSURE MEDICAL CORPORATION

		
	 By:
	 	 DANIEL A. PELAK

	 	 	 Daniel A. Pelak
 President & Chief Executive Officer

	
	 Date: January 12, 2004

  

	
	AGREED TO AND ACCEPTED:
	
	 JEFFREY G. CLARK

	

	 Jeffrey G. Clark

  
 Date:
January 12, 2004

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