Document:

Exhibit

Exhibit 10(c) 

EMPLOYMENT AGREEMENT
THIS AGREEMENT (the “Agreement”), made in Stamford, Connecticut effective as of May 8, 2019, between United Rentals, Inc., a Delaware corporation (the “Company” and together with its affiliates, the “Group”), and Matthew J. Flannery (“Executive”).
WHEREAS, the Company has employed Executive as its President and Chief Operating Officer; 
WHEREAS, Executive was appointed Chief Executive Officer of the Company, effective as of May 8, 2019;
WHEREAS, the Company desires to continue to employ Executive as its President and to employ Executive as its Chief Executive Officer, and Executive desires to accept such continued employment on the terms and conditions hereinafter set forth;
NOW, THEREFORE, IN CONSIDERATION of the mutual covenants and agreements hereinafter set forth, the Company and Executive agree as follows:
1.At Will Employment.
Executive will be employed by the Company at will, which means that either Executive or the Company may terminate the employment relationship at any time and for any reason or no reason. Notwithstanding the foregoing, following the termination of Executive’s employment, Executive shall be entitled to the compensation and benefits provided for in Section 4 of this Agreement, as applicable depending on the circumstances of such termination, in accordance with such provisions.
2.Employment.
(a)Employment by the Company. Executive agrees to be employed by the Company upon the terms and subject to the conditions set forth in this Agreement. Executive shall serve as President and Chief Executive Officer of the Company and shall report to the Board of Directors of the Company. In addition, throughout Executive’s employment hereunder, the Company shall use its best efforts to cause Executive to be nominated to the Board of Directors of the Company.
(b)Performance of Duties. During his employment, Executive shall faithfully and diligently perform Executive’s duties in conformity with the directions of the Board of Directors of the Company and serve the Company to the best of Executive’s ability. Executive shall devote his full business time, attention and best efforts to the business and affairs of the Company. In his capacity as President and Chief Executive Officer, he shall have such duties and responsibilities as are customary for Executive’s position and any other duties and responsibilities he may be assigned by the Board of Directors of the Company.
(c)Place of Performance. Executive shall be based at the Company’s offices in Stamford, Connecticut. Executive recognizes that his duties will require, at the Company’s expense, travel to domestic and international locations.
3.Compensation and Benefits.
(a)Base Salary. The Company agrees to pay to Executive a base salary (the “Base Salary”) at the annual rate of $850,000. The Compensation Committee of the Board of Directors of the Company may determine in its sole discretion to increase, but not decrease, the Base Salary. Payments of the Base Salary shall be payable in equal installments in accordance with the Company’s standard payroll practices. 

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If Executive’s Base Salary is increased, such adjusted Base Salary will then constitute the Base Salary for all purposes of this Agreement.
(b)Annual Incentive Bonus. With respect to each year during Executive’s employment hereunder, Executive shall be eligible to receive an annual cash incentive bonus (the “Annual Bonus”) pursuant to the terms of the United Rentals, Inc. Annual Incentive Compensation Plan or any successor thereto, as it may be amended from time to time (the “Annual Incentive Plan”). Executive’s target incentive opportunity under such plan shall be 125% of Base Salary (as at the beginning of the applicable performance period). The Annual Bonus for a year (if any) shall be paid to Executive in accordance with the terms of the Annual Incentive Plan.
(c)Long Term Incentive Awards. Executive will be eligible to participate in and receive awards under the long-term incentive programs maintained by the Company from time to time in the sole discretion of the Company. Any such long-term incentive awards will be subject to the terms and conditions set forth in the applicable plan and award agreement.
(d)Benefits and Perquisites. Executive shall be entitled to participate in, to the extent Executive is otherwise eligible under the terms thereof, the benefit plans and programs, and receive the benefits and perquisites, generally provided by the Company to executives of the Company, as such plans or programs may be in effect from time to time, including, without limitation, health, medical, dental, long-term disability and life insurance plans (subject to applicable employee contributions). Executive shall be entitled to not less than twenty (20) vacation days per year, such days to be accrued and used in accordance with Company policy.
(e)Business Expenses. The Company agrees to reimburse Executive for all reasonable and necessary travel, business entertainment and other business expenses incurred by Executive in connection with the performance of his duties under this Agreement in accordance with, and subject to, the Company’s standard policies and procedures. Such reimbursements shall be made by the Company on a timely basis upon submission by Executive of reasonably itemized statements of such expenses in accordance with the Company’s standard policies and procedures as in effect from time to time.
(f)Indemnification. The Company shall continue to indemnify Executive in accordance with, and subject to, the terms of the Indemnification Agreement between the Company and Executive entered into as of August 25, 2014, as may be amended by the Company and the Executive from time to time (the “Indemnification Agreement”). Notwithstanding anything in this Agreement to the contrary, the rights and obligations of the parties with respect to indemnification (including dispute resolution, governing law and notice) shall be governed by the Indemnification Agreement.
(g)Reimbursement of Compensation. In the event that payment of any compensation to Executive is predicated upon the achievement of certain financial results that subsequently are the subject of a Mandatory Restatement (as defined below) and a lower payment (or no payment) would have been made to Executive based upon the restated financial results, Executive shall reimburse the Company the difference between (i) the amount actually paid to Executive and (ii) the amount that would have been payable to Executive reduced by the Net Tax Costs (as defined below), based upon the restated financial results. Executive’s reimbursement to the Company shall be made within thirty (30) business days after receiving written notice of the amount owed and the calculations thereof. A “Mandatory Restatement” shall mean a restatement of the Company’s financial statement which, in the good faith opinion of the Company’s public accounting firm, is required to be implemented pursuant to generally accepted accounting principles, but excluding (i) any restatement which is required with respect to a particular year as a consequence of a change in generally accepted accounting rules effective after the publication of the financial statements for such year, or (ii) any restatement that (A) in the good faith judgment of the Audit Committee of the Board of Directors of the Company (the “Audit Committee”), is required due to a change in the manner in which the Company’s auditors interpret the application of generally accepted accounting principles (as opposed to a change in a prior accounting conclusion due to a change in the facts upon which such conclusion was based), or (B) is otherwise required due to events, facts or changes in 

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law or practice that the Board of Directors concludes were beyond the control and responsibilities of Executive and that occurred regardless of Executive’s diligent and thorough performance of his duties and responsibilities. “Net Tax Costs” shall mean the net amount of any federal, foreign, state or local income and employment taxes paid by Executive in respect of the portion of the compensation subject to reimbursement, after taking into account any and all available deductions, credits or other offsets allowable to Executive (including without limit, any deductions permitted under the claim of right doctrine), and regardless of whether Executive would be required to amend any prior income or other tax returns.
(h)No Other Compensation or Benefits; Payment; Withholdings. The compensation and benefits specified in this Section 3 and in Section 4 of this Agreement shall be in lieu of any and all other compensation and benefits. Payment of all compensation and benefits to Executive specified in this Section 3 and in Section 4 of this Agreement (i) shall be made in accordance with the relevant Company policies in effect from time to time to the extent the same are consistently applied, including normal payroll practices, and (ii) shall be subject to all legally required and customary withholdings.
(i)Cessation of Employment. In the event Executive shall cease to be employed by the Company for any reason, then Executive’s compensation and benefits shall cease on the date of such event, except as otherwise specifically provided herein or in any applicable employee benefit plan or program or as required by law.
4.Compensation Following Termination. Except as provided in this Section 4, Executive will not be entitled to any payments or benefits from the Company as a result of the termination of Executive’s employment, regardless of the reason for such termination.
(a)General. On any termination of Executive’s employment, he shall be entitled to:
(i)any accrued but unpaid Base Salary for services rendered through the date of termination;
(ii)any vacation accrued but unused as of the date of termination;
(iii)any accrued but unpaid expenses required to be reimbursed in accordance with Section 3(e) of this Agreement;
(iv)receive any benefits to which he may be entitled upon termination pursuant to the plans and programs referred to in Section 3(d) hereof or as may be required by applicable law;
(v)receive any amounts or benefits to which he may be entitled upon termination pursuant to the plans and agreement referred to in Sections 3(b) and 3(c) hereof in accordance with the terms of such plans and agreements; and
(vi)such rights as he has under the terms of the Indemnification Agreement.
(b)Termination by the Company for Cause; Termination by Executive Without Good Reason. In the event that Executive’s employment is terminated (i) by the Company for Cause (as defined below) or (ii) by Executive without Good Reason (as defined below), Executive shall be entitled only to those items identified in Section 4(a).
(c)Termination by Reason of Death or Disability. In the event that Executive’s employment is terminated by reason of Executive’s death or Disability (as defined below), Executive (or his estate, as the case may be) shall be entitled only to the following:
(i)those items identified in Section 4(a); and
(ii)if Executive (or, following his death, his spouse) is eligible for and timely elects medical continuation coverage under the Consolidated Omnibus Reconciliation Act of 1985 for Executive and Executive’s spouse and/or dependents then currently enrolled in such coverage (“COBRA Continuation Coverage”), the Company will pay through the COBRA Payment End Date (as defined below) the monthly premiums for the level of coverage Executive maintained on the date of termination. The “COBRA Payment End Date” shall be the earlier of (A) eighteen (18) months following the date of termination and (B) the date Executive becomes employed by a third party and is eligible for coverage under the group health plan of the new employer. If during the 

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period Executive is receiving this benefit, Executive obtains new employment and becomes eligible for coverage under the group health plan of the new employer, Executive shall promptly notify the Company in writing of such eligibility.
(d)Termination by the Company Without Cause or by Executive for Good Reason Not in Connection with a Change in Control. In the event that Executive’s employment is terminated by the Company without Cause or by Executive for Good Reason, in either event not within twelve (12) months following a Change in Control (as defined below), Executive shall be entitled only to the following:
(i)those items identified in Section 4(a);
(ii)if Executive is eligible for and timely elects COBRA Continuation Coverage, the Company will pay through the COBRA Payment End Date the monthly premiums for the level of coverage Executive maintained on the date of termination, provided that if during the period Executive is receiving this benefit, Executive obtains new employment and becomes eligible for coverage under the group health plan of the new employer, Executive must promptly notify the Company in writing of such eligibility; and
(iii)an amount equal to 2 times the sum of (x) Executive’s Base Salary as of the date of Executive’s termination and (y) the target incentive opportunity pursuant to Section 3(b) for the then-current fiscal year, payable in substantially equal installments during the twenty-four (24) month period following the date of termination in accordance with the Company’s normal payroll practices (the “Severance Pay”); provided, however, that the first payment shall be on the payday coinciding with or next following the sixtieth (60th) day after the date of Executive’s termination, and such first payment shall include the amounts that would have been paid had payments begun immediately after the date of Executive’s termination.
(e)Termination by the Company Without Cause or by Executive for Good Reason in Connection With a Change in Control. In the event that Executive’s employment is terminated by the Company without Cause or by Executive for Good Reason, in either event within twelve (12) months following a Change in Control, Executive shall be entitled only to the following:
(i)those items identified in Section 4(a);
(ii)if Executive is eligible for and timely elects COBRA Continuation Coverage, the Company will pay through the COBRA Payment End Date the monthly premiums for the level of coverage Executive maintained on the date of termination, provided that if during the period Executive is receiving this benefit, Executive obtains new employment and becomes eligible for coverage under the group health plan of the new employer, Executive shall promptly notify the Company in writing of such eligibility; and
(iii)the payment of 2.99 times the sum of (x) Executive’s Base Salary as of the date of Executive’s termination and (y) the target incentive opportunity pursuant to Section 3(b) for the then-current fiscal year (the “Change in Control Severance”). The Change in Control Severance shall be paid as follows:
(A)    If the Change in Control does not constitute a “change in the ownership or effective control of a corporation, or a change in the ownership of substantial portion of the assets of a corporation” within the meaning of Treas. Reg. § 1.409A-3(i)(5) (a “Section 409A Change in Control Event”), the Change in Control Severance shall be paid in substantially equal installments during the twenty-four (24) month period following the date of Executive’s termination; provided, however, that the first payment shall be on the payday coinciding with or next following the sixtieth (60th) day after the date of Executive’s termination, and such first payment shall include the amounts that would have been paid had payments begun immediately after the date of Executive’s termination; and
(B)    If the Change in Control is a Section 409A Change in Control Event, the Change in Control Severance shall be paid, subject to Section 4(j), in a lump sum.

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(f)Definitions of Cause, Good Reason, Disability, and Change in Control.
(i)Executive shall not be deemed to have been terminated for Cause unless and until there shall have been delivered to Executive a copy of a resolution duly adopted by the affirmative vote of not less than a majority of the Nominating and Corporate Governance Committee of the Board of Directors of the Company finding that in the good faith opinion of such committee, Executive, after giving effect to any applicable cure period described below, was guilty of conduct set forth in this Section 4(f)(i) and that reasonably identifies the reason(s) for such opinion provided, however, that no such action based upon Cause as described in clauses (C) through (K) of the next sentence may be taken prior to giving Executive an opportunity to address the Nominating and Corporate Governance Committee with his counsel present if he so elects upon 72 hours advance notice from the Committee of the scheduled Committee meeting. For purposes of this Agreement, the term “Cause” shall mean any of the following: (A) Executive has willfully misappropriated any funds or property of the Group, or has willfully destroyed property of the Group; (B) Executive has committed (1) a felony or (2) any crime (x) involving fraud, material dishonesty or moral turpitude or (y) that materially impairs Executive’s ability to perform his duties and responsibilities with the Company or that causes material damage to the Group or its operations or reputation; (C) Executive has (1) obtained personal profit from any transaction of or involving the Group (or engaged in any activity with the intent of obtaining such a personal profit) without the prior approval of the Company or (2) engaged in any other willful misconduct which constitutes a breach of fiduciary duty or the duty of loyalty to the Group and which has resulted or is reasonably likely to result in material damage to the Group; (D) Executive’s willful and material failure to perform his duties with the Company (other than as a result of total or partial incapacity due to physical or mental illness), provided, however, that, if susceptible of cure, a termination by the Company for Cause under this Section 4(f)(i)(D) shall be effective only if, within twenty (20) days following delivery of a written notice by the Company to Executive that Executive has materially failed to perform his duties and that reasonably identifies the reason(s) for such determination, Executive has failed to cure such failure to perform (nothing herein being intended to eliminate the requirement included in the first sentence of this Section 4(f)(i)); (E) Executive’s use of alcohol or drugs has materially interfered with his ability to perform his duties and responsibilities with the Group; (F) Executive has knowingly made any untrue statement or omission of a material nature to the Group which causes material damage to the Group; (G) Executive has knowingly falsified Company records (or those of one of its affiliates); (H) Executive has willfully committed any act (1) which is intended to materially damage the reputation of the Group or (2) which in fact materially damages the reputation of the Group; (I) Executive (1) has willfully violated the Group’s material policies or rules (including, but not limited to, the Group’s equal employment opportunity and anti-harassment policies), which violation has resulted or is reasonably likely to result in damage to the Group, or (2) is guilty of gross negligence or willful misconduct in the performance of his duties with the Group, which has resulted or is reasonably likely to result in material damage to the Group; (J) Executive has materially breached a covenant set forth in Section 5 or otherwise materially violated any confidentiality, non-competition or non-solicitation prohibitions imposed on Executive under common law or under the terms of any agreement with the Group; or (K) Executive has willfully obstructed or attempted to obstruct, or has willfully failed to cooperate with, any investigation authorized by the Board of Directors of the Company or any governmental or self-regulatory authority regarding a Group matter.  No act or failure to act on Executive’s part shall be deemed “willful” unless done, or omitted to be done, by Executive not in good faith and without reasonable belief that the Executive’s act, or failure to act, was in the best interest of the Group.
(ii)For purposes of this Agreement, the term “Good Reason” shall mean any of the following: (A) the Company removes Executive from the position of President or Chief Executive 

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Officer or, following his election to the Board of Directors, Executive ceases to be a director of the Company other than due to his resignation or failure to be reelected by the Company’s shareholders; (B) the Company decreases or fails to pay the compensation described in Section 3 of this Agreement (in accordance with, and subject to, such provisions); (C) a material breach of this Agreement by the Company; (D) Executive’s job site is relocated to a location which is more than fifty (50) miles from Stamford, Connecticut, unless the parties mutually agree in writing to such relocation; (E) a material diminution of Executive’s duties or responsibilities or (F) the failure by the Company to obtain the express written assumption of this Agreement by any successor to all or substantially all of the Company’s business or operations; provided, however, that a termination by Executive for Good Reason under this Section 4(f)(ii) shall be effective only if, within thirty (30) days following delivery of a written notice by Executive to the Company that Executive is terminating his employment for Good Reason and that reasonably identified the reason(s) for such determination, such notice to be given not later than ninety (90) days after the occurrence (or, if later, the date that Executive becomes aware or reasonably should have become aware of such occurrence) of the event(s) claimed to constitute Good Reason, the Company has failed to cure the circumstances giving rise to Good Reason.
(iii)For purposes of this Agreement, a “Disability” shall occur in the event Executive is unable to perform the duties and responsibilities contemplated under this Agreement for a period of either (A) ninety (90) consecutive days or (B) six (6) months in any twelve (12)-month period due to physical or mental incapacity or impairment. During any period that Executive fails to perform Executive’s duties hereunder as a result of incapacity or impairment due to physical or mental illness (the “Disability Period”), Executive shall continue to receive the compensation and benefits provided by Section 3 of this Agreement until Executive’s employment hereunder is terminated; provided, however, that the amount of base compensation and benefits received by Executive during the Disability Period shall be reduced by the aggregate amounts, if any, payable to Executive under any disability benefit plan or program provided to Executive by the Company in respect of such period.
(iv)For purposes of this Agreement, a “Change in Control” shall be deemed to have occurred if:
(A)any “person” (together with any other persons acting as a group) is or becomes a “beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange Act of 1934, (the “Act”)) directly or indirectly, of securities of the Company representing more than 50% of the total fair market value or total voting power in each case represented by then outstanding voting securities of the Company (calculated in accordance with Rule 13d-3 of the Act); provided, that the term “persons” as defined in Sections 13(d) and 14(d) of the Act shall not include a trustee or other fiduciary holding securities under any employee benefit plan of the Company or any person (or an affiliate thereof) who directly or indirectly owns 10% or more of the total voting power represented by the outstanding voting securities of the Company as of the date hereof;
(B)a majority of the individuals constituting the Board of Directors is replaced during any twenty-four (24)-month period by directors whose appointment or election is not endorsed by a majority of the members of the Board of Directors before the date of the appointment or election; or
(C)there shall be consummated a merger of the Company, or a sale or disposition by the Company of all or substantially all of its assets, or any other business combination of the Company with any other corporation, other than any such merger or business combination which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) at least 

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50% of the total voting power represented by the voting securities of the Company or such surviving entity outstanding immediately after such merger or business combination.
Notwithstanding the foregoing, a “Change in Control” shall not be deemed to have occurred for purposes of this Agreement (i) in the event of a sale, exchange, transfer or other disposition of substantially all of the assets of Employer to, or a merger, consolidation or other reorganization of Employer and any entity in which Executive (alone or with other officers) has, directly or indirectly, an equity or ownership interest; or (ii) in a transaction otherwise commonly referred to as a “management leveraged buy-out”, as a result of which Executive (alone or with other officers) has, retains or obtains an equity or ownership interest in the Company or its successor.
(g)Section 280G. Notwithstanding anything herein to the contrary, in the event that Executive receives any payments or distributions, whether payable or distributed or distributable pursuant to the terms of this Agreement or otherwise, that constitute “parachute payments” within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), and but for this Section 4(g), would be subject to the excise tax imposed by Section 4999 of the Code, then such payments or benefits shall be either (x) delivered in full or (y) delivered as to such lesser extent that would result in no portion of such payments and benefits being subject to excise tax under Section 4999 of the Code, whichever of the foregoing amounts, taking into account the applicable federal, state and local income and employment taxes and the excise tax imposed by Section 4999 of the Code (and any equivalent state or local excise taxes), results in the receipt by Executive on an after-tax basis, of the greatest amount of benefits, notwithstanding that all or some portion of such payments and benefits may be taxable under Section 4999 of the Code. The determinations to be made with respect to this Section 4(g) shall be made by a nationally recognized certified public accounting firm designated by the Company, whose determination will be conclusive and binding upon Executive and the Company for all purposes. The determination of the specific compensation or benefits to be reduced shall be made jointly by the Company and Executive.
(h)Effect of Material Breach of Section 5 on Compensation Following Termination of Employment. If, at the time of termination of Executive’s employment or any time thereafter, Executive is in material breach of any covenant contained in Section 5 hereof, except as otherwise required by law, Executive shall not be entitled to any payments (or if payments have commenced, any continued payment) under this Section 4.
(i)Resignation of Offices Upon Termination. Upon termination of Executive’s employment for any reason, Executive agrees that he shall resign from all offices and positions he holds with the Group; including, without limitation his position as a director of the Company (if applicable), and further agrees that he shall execute such documents as shall be reasonably necessary to give effect to such resignations. Notwithstanding the foregoing, Executive shall not be required to resign his position as a director of the Company if, prior to or upon the termination of the Executive’s employment, the Board of Directors provides Executive with a written request that he remain as a director of the Company.
(j)No Further Liability; Release. Other than providing the compensation and benefits provided for in accordance with this Section 4, upon and following Executive’s termination of employment, the Company and its directors, officers, employees, subsidiaries, affiliates, stockholders, successors, assigns, agents and representatives shall have no further obligation or liability to Executive or any other person under this Agreement. The payment of any amounts pursuant to this Section 4 (other than payments required by law) is expressly conditioned upon (i) the delivery by Executive to the Company of a release in form and substance reasonably satisfactory to the Company of any and all claims Executive may have against the Company and its directors, officers, employees, subsidiaries, affiliates, stockholders, successors, assigns, agents and representatives arising out of or related to Executive’s employment by the Company and the termination of such employment and (ii) Executive not revoking 

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such release within the seven (7) day revocation period following his delivery of the release. The Company shall provide Executive with the proposed form of such release no later than seven (7) days following the date of termination, and Executive shall execute and cause to become irrevocable such release no later than fifty-two (52) days after the date of Executive’s termination (and Executive shall be provided a seven (7) day revocation period following his delivery of such release).  Subject to Section 7(i) hereof, any lump sum payments provided pursuant to this Section 4 will be paid to Executive within 30 days after such release becomes effective; provided, however, that if Executive’s date of termination occurs on or after November 1 of a given calendar year, such payment will, subject to Section 7(i) hereof, be paid in January of the immediately following calendar year.
5.Exclusive Employment; Noncompetition; Nonsolicitation; Nondisclosure of Proprietary Information; Surrender of Records; Inventions and Patents.
5.1No Conflict; No Other Employment. During the period of Executive’s employment with the Company, Executive shall not: (i) engage in any activity which conflicts or interferes with or derogates from the performance of Executive’s duties hereunder nor shall Executive engage in any other business activity, whether or not such business activity is pursued for gain or profit, except as approved in advance in writing by the Company; provided, however, that Executive shall be entitled to manage his personal investments and otherwise attend to personal affairs, including charitable, social and political activities, in a manner that does not unreasonably interfere with his responsibilities hereunder, or (ii) accept or engage in any other employment, whether as an employee or consultant or in any other capacity, and whether or not compensated therefor.
5.2Noncompetition; Nonsolicitation.
(a)Executive acknowledges and recognizes the highly competitive nature of the Company’s business and that access to the Company’s confidential records and proprietary information and exposure to customers, vendors, distributors and suppliers of the Company renders him special and unique within the Company’s industry. In consideration of Executive’s promotion and continued employment, any payment(s) by the Company to Executive of amounts that may hereafter be paid to Executive pursuant to this Agreement (including, without limitation, pursuant to Sections 3 and 4 hereof) and other obligations undertaken by the Company hereunder, Executive agrees that during (i) his employment with the Company, and (ii) the period beginning on the date of termination of employment for any reason and ending twenty-four (24) months after the date of termination of employment (the “Covered Time”), Executive shall not, directly or indirectly (whether through affiliates, relatives, or otherwise), engage (as owner, investor, partner, stockholder, employer, employee, consultant, advisor, director or otherwise) in any Competing Business in any Restricted Area (each as defined below), provided that the provisions of this Section 5.2(a) will not be deemed breached solely because Executive owns less than 5% of the outstanding common stock of a publicly-traded company.  
(b)In further consideration of any payment(s) by the Company to Executive of amounts that may hereafter be paid to Executive pursuant to this Agreement (including, without limitation, pursuant to Sections 3 and 4 hereof) and other obligations undertaken by the Company hereunder, Executive agrees that during his employment and the Covered Time, he shall not, directly or indirectly (whether through affiliates, relatives, or otherwise), (i) solicit, encourage or attempt to solicit or encourage any of the employees, agents, consultants or representatives of the Group to terminate his, her, or its relationship with the Company or such affiliate; (ii) solicit, encourage or attempt to solicit or encourage any of the employees, agents, consultants or representatives of the Group to become employees, agents, representatives or consultants of any other person or entity; (iii) solicit or attempt to solicit any customer, vendor, distributor or supplier of the Group in connection with a Competing Business with respect to any product or service being furnished, made, sold, rented or leased by the Company or such affiliate; or (iv) persuade or seek to persuade any customer, vendor, distributor or supplier of the Company or any affiliate to cease to do business or to reduce the amount of business which such customer, vendor, distributor or supplier has customarily done or contemplates doing with the Company or such affiliate, 

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whether or not the relationship between the Company or its affiliate and such customer, vendor, distributor or supplier was originally established in whole or in part through Executive’s efforts. For purposes of this Section 5.2(b) only, during the Covered Time, the terms “customer,” “vendor,” “distributor” and “supplier” shall mean a customer, vendor, distributor or supplier who has done business with the Group within twelve (12) months preceding the termination of Executive’s employment.
(c)Executive understands that the provisions of this Section 5.2 may limit his ability to earn a livelihood in a business similar to the business of the Group but nevertheless agrees and hereby acknowledges that the consideration provided under this Agreement, including any amounts or benefits provided under Sections 3 and 4 hereof and other obligations undertaken by the Company hereunder, is sufficient to justify the restrictions contained in such provisions. In consideration thereof and in light of Executive’s education, skills and abilities, which may allow Executive to sufficiently earn a living in other available industries, Executive agrees that he will not assert in any forum that any provisions of this Agreement prevent him from earning a living or otherwise are void or unenforceable or should be held void or unenforceable. Executive further affirms that Executive has had an opportunity to review this provision, as well as this Agreement in its entirety, with counsel of Executive’s choosing.
(d)For purposes of this Agreement, “Competing Business” shall mean (i) any business in which the Group is currently engaged, including, but not limited to, renting and selling equipment and merchandise to the commercial and general public, including construction equipment, earthmoving equipment, aerial work platforms, traffic safety equipment, trench safety equipment, pumps, tanks, filtration, power and HVAC equipment, industrial equipment, sanitation equipment, landscaping equipment, home repair equipment, maintenance equipment, contractor supplies, general tools, light equipment and specialty equipment, as well as the buying of companies that engage in such activities, along with the training and computer systems designed, developed and utilized with respect to support any of the foregoing; (ii) any other future business which the Group engages, or has planned to engage, in to a material extent during Executive’s employment with the Company; and (iii) any entities such as, but not limited to 1) Aggreko, 2) Ahern Rentals, 3) Caterpillar, 4) CAT Rental, 5) Deere & Co., 6) H & E Equipment, 7) Herc Rentals, 8) Home Depot, 9) Mobile Mini, 10) Sunstate Equipment, 11) Sunbelt Rentals, 12) Synergy Equipment, 13) any company on the “RER 100” list, and 14) any affiliate or dealer of any of the foregoing.
(e)For purposes of this Agreement, “Restricted Area” means (i) the (A) states of: 1) Alabama, 2) Alaska, 3) Arizona, 4) Arkansas, 5) California, 6) Colorado, 7) Connecticut, 8) Delaware, 9) Florida, 10) Georgia, 11) Hawaii, 12) Idaho, 13) Illinois, 14) Indiana, 15) Iowa, 16) Kansas, 17) Kentucky, 18) Louisiana, 19) Maine, 20) Maryland (including the District of Columbia), 21) Massachusetts, 22) Michigan, 23) Minnesota, 24) Mississippi, 25) Missouri, 26) Montana, 27) Nebraska, 28) Nevada, 29) New Hampshire, 30) New Jersey, 31) New Mexico, 32) New York, 33) North Carolina, 34) North Dakota, 35) Ohio, 36) Oklahoma, 37) Oregon, 38) Pennsylvania, 39) Rhode Island, 40) South Carolina, 41) South Dakota, 42) Tennessee, 43) Texas, 44) Utah, 45) Vermont, 46) Virginia, 47) Washington, 48) West Virginia, 49) Wisconsin, and 50) Wyoming; (B) the Canadian Provinces of 1) New Brunswick, 2) Newfoundland and Labrador, 3) Nova Scotia, 4) Ontario, 5) Prince Edward Island, 6) Quebec, 7) Manitoba, 8) Saskatchewan, 9) Alberta, and 10) British Columbia; and (C) the countries of 1) United Kingdom, 2) France, 3) Germany, 4) Netherlands and 5) Poland; (ii) any state in the United States, any province in Canada and any country in Europe in which the Group conducts any business on the date of the determination of whether Executive is engaged in a Competing Business or at any time within twelve (12) months preceding such date; and (iii) the area within a 50 mile radius of any office, branch or facility of the Group (whether foreign or domestic) in which the Group conducts any business on the date of the determination of whether Executive is engaged in a Competing Business or at any time within twelve (12) months preceding such date.
5.3Proprietary Information. Executive acknowledges that during the course of his employment with the Company he will necessarily have access to and make use of proprietary information and 

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confidential records of the Group. Executive covenants that he shall not during his employment or at any time thereafter, directly or indirectly, use for his own purpose or for the benefit of any person or entity other than the Company, nor otherwise disclose to any individual or entity, any proprietary information, unless such disclosure is made in the good faith performance of Executive’s duties hereunder, has been authorized in writing by the Company, or is otherwise required by law. Executive acknowledges and understands that the term “proprietary information” includes, but is not limited to: (a) the software products, programs, applications, and processes utilized by the Group; (b) the name and/or address of any customer, vendor, distributor or supplier of the Group or any information concerning the transactions or relations of any customer, vendor, distributor or supplier of the Group with the Company or such affiliate or any of its partners, principals, directors, officers or agents; (c) any information concerning any product, technology, or procedure employed by the Group but not generally known to its or their customers, vendors, competitors, distributors or suppliers, or under development by or being tested by the Group but not at the time offered generally to customers, vendors, distributors or suppliers; (d) any information relating to the computer software, computer systems, pricing or marketing methods, sales margins, cost of goods, cost of material, capital structure, operating results, borrowing arrangements or business plans of the Group; (e) any information which is generally regarded as confidential or proprietary in any line of business engaged in by the Group; (f) any business plans, budgets, advertising or marketing plans; (g) any information contained in any of the written or oral policies and procedures or manuals of the Group; (h) any information belonging to customers, vendors, distributors or suppliers of the Group or any other person or entity which the Group has agreed to hold in confidence; (i) any inventions, innovations or improvements covered by this Agreement; (j) information regarding the Company’s current employees and their assigned duties and compensation; (k) all written, graphic, electronic, digital, and other material relating to any of the foregoing; and (l) all trade secrets of the Group. Executive acknowledges and understands that information that is not novel or copyrighted or patented or a trade secret may nonetheless be proprietary information. The term “proprietary information” shall not include information that is or becomes generally available to and known by the public through no direct or indirect efforts of Executive or information that is or becomes available to Executive on a non-confidential basis from a source other than the Group or the directors, officers, employees, partners, principals or agents of the Group (other than as a result of a breach of any obligation of confidentiality). 
5.4Confidentiality; Surrender of Records; Nondisclosure. 
(a)Executive shall not during his employment or at any time thereafter (irrespective of the circumstances under which Executive’s employment by the Company terminates), except as required by law, directly or indirectly publish, make known or in any fashion disclose any confidential records to, or permit any inspection or copying of confidential records by, any individual or entity other than in the course of such individual’s or entity’s employment or retention by the Company. Upon termination of employment for any reason or request by the Company, Executive shall deliver promptly to the Company all property and records of the Group, including, without limitation, all confidential records. For purposes hereof, “confidential records” means all correspondence, reports, memoranda, files, manuals, books, lists, financial, operating or marketing records, magnetic tape, digital or electronic or other media or equipment of any kind which may be in Executive’s possession or under his control or accessible to him which contain any proprietary information. All property and records of the Group (including, without limitation, all confidential records) shall be and remain the sole property of the Company or such affiliate during Executive’s employment with the Company and thereafter.
(b)Notwithstanding anything to the contrary in this Agreement or otherwise, nothing shall limit Executive’s rights under applicable law to provide truthful information to any governmental entity or to file a charge with or participate in an investigation conducted by any governmental entity. Notwithstanding the foregoing, Executive agrees to waive Executive’s right to recover monetary damages in connection with any charge, complaint or lawsuit filed by Executive or anyone else on Executive’s behalf (whether involving a governmental entity or not); provided that Executive is not agreeing to waive, 

10

and this Agreement shall not be read as requiring Executive to waive, any right Executive may have to receive an award for information provided to any governmental entity. Executive is hereby notified that the immunity provisions in Section 1833 of title 18 of the United States Code provide that an individual cannot be held criminally or civilly liable under any federal or state trade secret law for any disclosure of a trade secret that is made (1) in confidence to federal, state or local government officials, either directly or indirectly, or to an attorney, and is solely for the purpose of reporting or investigating a suspected violation of the law, (2) under seal in a complaint or other document filed in a lawsuit or other proceeding, or (3) to Executive’s attorney in connection with a lawsuit for retaliation for reporting a suspected violation of law (and the trade secret may be used in the court proceedings for such lawsuit) as long as any document containing the trade secret is filed under seal and the trade secret is not disclosed except pursuant to court order.
(c)Executive will not disclose to the Company, use, or induce the Company to use, any proprietary information, trade secrets or confidential business information of others.
5.5Non-Disparagement. During the term of this Agreement and thereafter, Executive will not, in any manner, directly or indirectly make or publish any statement (orally or in writing) that would libel, slander, disparage, denigrate, ridicule or criticize the Group or any of its employees, officers or directors.
5.6Inventions and Patents. All inventions, innovations or improvements (including policies, procedures, products, improvements, software, ideas and discoveries, whether patent, copyright, trademark, service mark, trade secret or otherwise) conceived or made by Executive, either alone or jointly with others, in the course of his employment by the Company, belong to the Company. Executive will promptly disclose in writing such inventions, innovations or improvements to the Company and perform all actions reasonably requested by the Company to establish and confirm such ownership by the Company, including, but not limited to, cooperating with and assisting the Company in obtaining patents, copyrights, trademarks, or service marks for the Company in the United States and in foreign countries.
5.7Enforcement. Executive acknowledges and agrees that, by virtue of his position, his services and access to and use of confidential records and proprietary information, any violation by him of any of the undertakings contained in this Section 5 would cause the Company and/or its affiliates immediate, substantial and irreparable injury for which it or they have no adequate remedy at law. Accordingly, Executive agrees and consents to the entry of an injunction or other equitable relief by a court of competent jurisdiction restraining any violation or threatened violation of any undertaking contained in this Section 5. Executive waives posting by the Group of any bond otherwise necessary to secure such injunction or other equitable relief. Rights and remedies provided for in this Section 5 are cumulative and shall be in addition to rights and remedies otherwise available to the parties hereunder or under any other agreement or applicable law. Executive agrees that his obligations under this Agreement supplement and are in addition to, and shall not supersede, modify or otherwise affect, his obligations under any other agreement between Executive and the Company. 
6.Successors; Binding Agreement.
(a)Company’s Successors. This Agreement shall inure to the benefit of and be enforceable by, and may be assigned by the Company without Executive’s consent to, any purchaser of all or substantially all of the Company’s business or assets, any successor to the Company (whether direct or indirect, by purchase, merger, consolidation or otherwise) or any assignee thereof.
(b)Executive’s Successors. The parties hereto agree that Executive is obligated under this Agreement to render personal services of a special, unique, unusual, extraordinary and intellectual character, thereby giving this Agreement special value. Executive’s rights and obligations under this Agreement shall not be transferable by Executive by assignment or otherwise, and any purported assignment, transfer or delegation thereof shall be void; provided, however, that if Executive shall die, all amounts then payable to Executive hereunder shall be paid in accordance with the terms of this Agreement to such person or persons so appointed in writing by Executive, or otherwise to Executive’s legal representatives or Executive’s estate.

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7.Miscellaneous.
(a)Other Obligations. Executive represents and warrants that neither Executive’s employment with the Company nor Executive’s performance of Executive’s obligations hereunder will conflict with or violate or otherwise are inconsistent with any other obligations, legal or otherwise, which Executive may have. Executive covenants that he shall perform his duties hereunder in a professional manner and not in conflict or violation, or otherwise inconsistent with other obligations legal or otherwise, which Executive may have.
(b)Cooperation. Following termination of employment with the Company for any reason, Executive shall cooperate with the Company, as reasonably requested by the Company, to effect a transition of Executive’s responsibilities and to ensure that the Company is aware of all matters being handled by Executive. The Company shall (i) pay Executive a per diem fee based on Executive’s Base Salary for work performed in connection with such obligation, provided that Executive shall not be entitled to receive per diem fees in respect of cooperation provided during any period for which Executive is receiving payments pursuant to Section 4 above and further provided that such work shall be approved in advance in writing by the Company and (ii) reimburse Executive’s reasonable expenses incurred in connection with such pre-approved work.
(c)Assistance in Proceedings, Etc. Executive shall, during and after his employment, upon reasonable notice, furnish such information and proper assistance to the Company as may reasonably be required by the Company in connection with any legal or quasi-legal proceeding, including any external or internal investigation, involving the Group. The Company shall (i) pay Executive a per diem fee based on Executive’s Base Salary (with portions of days being aggregated to form days of eight (8) hours) for material work performed in connection with such obligations (i.e., Executive is required to attend a meeting or spend more than one hour during a day responding to or otherwise participating in telephone, email, or telecopy communications) subsequent to termination of Executive’s employment with the Company, provided that (A) such work is approved in advance in writing by the Company, (B) no payments shall be due in connection with assistance provided during any period for which Executive is receiving payments pursuant to Section 4 above and (C) no payments shall be due for any time Executive spends testifying before the U.S. Securities and Exchange Commission or in any proceeding; and (ii) reimburse Executive’s reasonable expenses incurred in connection with the foregoing obligations.
(d)Mitigation. Executive shall not be required to mitigate damages or the amount of any payment provided to him under Section 4 of this Agreement by seeking other employment or otherwise, nor shall the amount of any payments provided to Executive under Section 4 be reduced by any compensation earned by Executive as the result of employment by another employer after the termination of Executive’s employment or otherwise.
(e)No Right of Set-off. Subject to Section 4(h), the obligation of the Company to make the payments provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by any circumstances, including without limitation, set-off, counterclaim, recoupment, defense or other claim, right or action which the Company may have against Executive or others.
(f)Protection of Reputation. During Executive’s employment with the Company and thereafter, Executive agrees that he will take no action which is intended, or would reasonably be expected, to harm the reputation of the Group or which would reasonably be expected to lead to unwanted or unfavorable publicity to the Group. Nothing herein shall prevent Executive from making any truthful statement in connection with any investigation by the Company or any governmental authority or in any legal proceeding.
(g)Governing Law. This Agreement shall be governed by and construed (both as to validity and performance) and enforced in accordance with the internal laws of the State of Connecticut applicable to agreements made and to be performed wholly within such jurisdiction, without regard to the principles of conflicts of law or where the parties are located at the time a dispute arises.
(h)Arbitration.

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(i)General. Executive and the Company specifically, knowingly, and voluntarily agree that they shall use final and binding arbitration to resolve any dispute (an “Arbitrable Dispute”) between Executive, on the one hand, and the Company (or any affiliate of the Company), on the other hand. This arbitration agreement applies to all matters arising out of or related to this Agreement, any other agreement between Executive and the Company, or Executive’s employment with the Company or the termination thereof, including without limitation disputes about the validity, interpretation, or effect of this Agreement, or alleged violations of it, any payments due hereunder and all claims arising out of any alleged discrimination, harassment or retaliation, including, but not limited to, those covered by Title VII of the Civil Rights Act of 1964, as amended, the Age Discrimination in Employment Act of 1967, as amended, and the Americans With Disabilities Act or any other federal, state or local law relating to discrimination in employment, provided, however, that disputes under the Indemnification Agreement shall not be arbitrable pursuant to this provision.
(ii)Injunctive Relief. Notwithstanding anything to the contrary contained herein, the Company and any affiliate of the Company (if applicable) shall have the right to seek injunctive or other equitable relief from a court of competent jurisdiction to enforce Section 5 of this Agreement. For purposes of seeking enforcement of Section 5, the Company and Executive hereby exclusively consent to the jurisdiction of any state court sitting in Fairfield County, Connecticut; any federal court in the District of Connecticut; or any state or federal court sitting in the City, County, and State of New York.
(iii)The Arbitration. Any arbitration pursuant to this Section 7(h) will take place within Fairfield County, Connecticut or within New York, New York, under the auspices of the American Arbitration Association, in accordance with the Employment Arbitration Rules and Mediation Procedures of the American Arbitration Association then in effect, and before a panel of three arbitrators selected in accordance with such rules. Judgment upon the award rendered by the arbitrators will be final and binding on both parties and may be entered in any state court sitting in Fairfield County, Connecticut; any federal court in the District of Connecticut; or any state or federal court sitting in the City, County, and State of New York.
(iv)Fees and Expenses. In any arbitration or action for injunctive relief pursuant to this Agreement except as otherwise required by law, each party shall be responsible for the fees and expenses of its own attorneys and witnesses, and the fees and expenses of the arbitrators shall be divided equally between the Company, on the one hand, and Executive, on the other hand.
(v)Exclusive Forum. Except as permitted by Section 7(h)(ii) hereof, arbitration in the manner described in this Section 7(h) shall be the exclusive forum for any Arbitrable Dispute. Except as permitted by Section 7(h)(ii), should Executive or the Company attempt to resolve an Arbitrable Dispute by any method other than arbitration pursuant to this Section 7(h), the responding party shall be entitled to recover from the initiating party all damages, expenses, and attorneys’ fees incurred as a result of that breach.
(i)Section 409A of the Code. 
(i)This Agreement is intended to comply with, or be exempt from, Section 409A of the Code (together with the applicable regulations thereunder, “Section 409A”) with respect to amounts, if any, subject thereto and shall be interpreted, construed and performed consistent with such intent. Each payment under this Agreement shall be designated as a “separate payment” within the meaning of Section 409A. The Company makes no representations regarding the tax implications of the compensation and benefits to be paid to Executive under this Agreement, including, without limit, under Section 409A. Executive further acknowledges that any tax liability incurred by Executive under Section 409A of the Code is solely the responsibility of Executive. In no event may the Executive, directly or indirectly, designate the calendar year of any payment to be made under this Agreement. 

13

(ii)Notwithstanding anything herein to the contrary, if (a) at the time of Executive’s “separation from service” (as defined in Treas. Reg. Section 1.409A-1(h)) with the Company other than as a result of death, (b) Executive is a “specified employee” (as defined in Section 409A(a)(2)(B)(i)), (c) one or more of the payments or benefits received or to be received by Executive pursuant to this Agreement would constitute deferred compensation subject to Section 409A, and (d) the deferral of the commencement of any such payments or benefits otherwise payable hereunder as a result of such separation of service is necessary in order to prevent any accelerated or additional tax under Section 409A, then the Company will defer the commencement of the payment of any such payments or benefits hereunder to the extent necessary (without any reduction in such payments or benefits ultimately paid or provided to Executive) until the date that is six (6) months following Executive’s separation from service with the Company (or the earliest date as is permitted under Section 409A of the Code). Any payment deferred during such six-month period shall be paid in a lump sum on the day following such six (6)-month period, together with interest at the applicable federal rate pursuant to Section 1274 of the Code. Any remaining payments or benefits shall be made as otherwise scheduled under this Agreement.
(iii)To the extent any reimbursements or in-kind benefits due to Executive under this Agreement constitute deferred compensation under Section 409A of the Code, any such reimbursements or in-kind benefits shall be paid to Executive in a manner consistent with Treas. Reg. Section 1.409A-3(i)(1)(iv). 
(j)Entire Agreement. This Agreement (including the plans and agreements referenced in Section 3), together with the terms of any equity grant awarded to Executive prior to the date hereof, contains the entire agreement and understanding between the parties hereto in respect of Executive’s employment and supersedes, cancels and annuls any prior or contemporaneous written or oral agreements, understandings, commitments and practices between them respecting Executive’s employment, including, but not limited to, the Employment Agreement between Executive and the Company dated as of March 12, 2010.
(k)Amendment. This Agreement may be amended only by a writing which makes express reference to this Agreement as the subject of such amendment and which is signed by Executive and, on behalf of the Company, by its duly authorized officer.
(l)Severability. If any provision of this Agreement or the application of any such provision to any party or circumstances shall be determined by any court of competent jurisdiction or arbitration panel to be invalid or unenforceable to any extent, the remainder of this Agreement, or the application of such provision to such person or circumstances other than those to which it is so determined to be invalid or unenforceable, shall not be affected thereby, and each provision hereof shall be enforced to the fullest extent permitted by law. If any provision of this Agreement, or any part thereof, is held to be invalid or unenforceable because of the scope or duration of or the area covered by such provision, the parties hereto agree that the court or arbitration panel making such determination shall reduce the scope, duration and/or area of such provision (and shall substitute appropriate provisions for any such invalid or unenforceable provisions) in order to make such provision enforceable to the fullest extent permitted by law and/or shall delete specific words and phrases, and such modified provision shall then be enforceable and shall be enforced. The parties hereto recognize that if, in any judicial or arbitral proceeding, a court or arbitration panel shall refuse to enforce any of the separate covenants contained in this Agreement, then that invalid or unenforceable covenant contained in this Agreement shall be deemed eliminated from these provisions to the extent necessary to permit the remaining separate covenants to be enforced. In the event that any court or arbitration panel determines that the time period or the area, or both, are unreasonable and that any of the covenants is to that extent invalid or unenforceable, the parties hereto agree that such covenants will remain in full force and effect, first, for the greatest time period, and second, in the greatest geographical area that would not render them unenforceable, and that the court or arbitration panel may 

14

enforce each provision to the fullest extent enforceable even if such particular provision is not expressly divisible.
(m)Construction. The headings and captions of this Agreement are provided for convenience only and are intended to have no effect in construing or interpreting this Agreement. The language in all parts of this Agreement shall be in all cases construed according to its fair meaning and not strictly for or against the Company or Executive. As used herein, the words “day” or “days” shall mean a calendar day or days.
(n)Nonwaiver. Neither any course of dealing nor any failure or neglect of either party hereto in any instance to exercise any right, power or privilege hereunder or under law shall constitute a waiver of any other right, power or privilege or of the same right, power or privilege in any other instance. All waivers by either party hereto must be contained in a written instrument signed by the party to be charged and, in the case of the Company, by its duly authorized officer.
(o)Notices. Any notice required or permitted hereunder shall be in writing and shall be sufficiently given if personally delivered or if sent by registered or certified mail, postage prepaid, with return receipt requested, addressed: (i) in the case of the Company, to United Rentals, Inc., 100 First Stamford Place - Suite 700, Stamford, CT 06902, attn: Chief Administrative & Legal Officer; and (ii) in the case of Executive, to Executive’s last known address as reflected in the Company’s records, or to such other address as Executive shall designate by written notice to the Company. Any notice given hereunder shall be deemed to have been given at the time of receipt thereof by the person to whom such notice is given if personally delivered, on the date following delivery to an overnight delivery service for next day delivery prior to such service’s deadline for such delivery, or on the date that is three days after the date of mailing if sent by registered or certified mail.
(p)Survival. Cessation or termination of Executive’s employment with the Company shall not result in termination of this Agreement, the Indemnification Agreement or any other equity grant awarded to Executive prior to the date hereof. The respective obligations of Executive and the Company as provided in the Indemnification Agreement, and Sections 4, 5, 6 and 7 of this Agreement shall survive cessation or termination of Executive’s employment hereunder.
(q)Counterparts. This Agreement may be executed digitally, electronically and/or by facsimile, and may be transmitted digitally, electronically, and/or by facsimile, in any number of counterparts, each of which upon execution and delivery shall be considered an original for all purposes; provided, however, all such counterparts shall, together, upon execution and delivery, constitute one and the same instrument.

IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed on its behalf by an officer thereunto duly authorized and Executive has duly executed this Agreement, all as of the date and year first written above.
	
		
	UNITED RENTALS, INC.
	EXECUTIVE:

	By:/s/ Craig A. Pintoff
	/s/ Matthew J. Flannery

	Name: Craig A. Pintoff 
	Matthew J. Flannery

	Title: EVP - Chief Administrative & Legal Officer
	 

15BPMX Exh 101_071719

		
			 
		

		
			
		

		
			July 16, 2019
		

		
			Mr. Steven Bosacki
		

		
			VIA EMAIL
		

		
			Dear Steve:  
		

		
			On behalf of BioPharmX, Inc. (the “Company”),  I am very pleased to confirm our offer to you of employment with the Company.  Subject to your acceptance of this offer and the conditions set forth below, your employment with the Company shall be governed by the following terms and conditions (this “Agreement”).  
		

			
	
			
				 1.
			

			
	
			
			Duties and Scope of Employment.

		
			 
		

			
	
			
				 a.
			

			
	
			
			Position.  For the term of your employment (your “Employment”), the Company agrees to employ you as a senior executive officer in the position of the sole Chief Operating Officer (“COO”). You will report solely to the Company’s Chief Executive Officer (“CEO”) and you will be working out of the Company’s office in San Jose, CA, provided, however, that the Company agrees you may telecommute from your residence in New Jersey as much as practical, provided such telecommuting does not materially interfere with your duties as COO, and provided you will be expected to regularly travel to the Company’s San Jose office as well as engage in other business travel, as needed.  You will be responsible for developing and executing the Company’s strategies, achieving business objectives as set forth by the CEO, increasing the Company’s stockholder value, and other duties commensurate with your position as COO. Your duties and responsibilities always will be at least commensurate with those duties and responsibilities normally associated with and appropriate for someone in the position of COO.  Effective on July 16, 2019, you will be appointed as the Company’s COO (the “Effective Date”).

		
			 
		

			
	
			
				 b.
			

			
	
			
			Obligations to the Company.  While you render services to the Company, (1) you may deliver lectures, fulfill speaking engagements, and teach at educational institutions provided that such activities do not materially interfere with the performance of your duties to the Company, and (2) you agree that you will not engage in any other employment, consulting, or other outside business activity (“Outside Activities”) except as set forth on the attached Exhibit A.  Any additional Outside Activities must be authorized in writing in advance by the CEO.  In addition, while you render services to the Company, you will not assist any other person or entity in competing with the Company, in preparing to compete with the Company or in hiring any employees or consultants of the Company. As an employee, you will also be expected to comply with the Company’s policies and procedures.

		
			 
		

			
	
			
				 c.
			

			
	
			
			No Conflicting Obligations.  You represent and warrant to the Company that you are under no obligations or commitments, whether contractual or otherwise, that are materially inconsistent with your obligations under this Agreement. In connection with your Employment, you shall not use or disclose any trade secrets or other proprietary 

		 

		

			

		

	information or intellectual property in which you or any other person has any right, title or interest and your Employment will not infringe or violate the rights of any other person. You represent and warrant to the Company that you have returned (or will return) all property and confidential information belonging to any prior employer, other than confidential information that has become generally known to the public or within the relevant trade industry.

		
			    
		

			
	
			
				 3.
			

			
	
			
			Term.      

		
			Subject to the terms of this Agreement and the payment obligations set forth herein, this       Agreement will remain in effect until terminated in accordance with the terms of the Agreement.  Upon a termination of employment, and to the extent requested in writing by the Company, you agree to resign from all positions you may hold with the Company and any of its subsidiaries or affiliated entities at such time.  
		

			
	
			
				 2.
			

			
	
			
			Cash Compensation.  

		
			 
		

			
	
			
				 a.
			

			
	
			
			Base Salary. Your initial annual base salary (the “Base Salary”) will be $300,000 following the Effective Date, payable in accordance with the Company’s normal payroll practices.  Thereafter, your annual base salary may be increased as determined by the Board following the recommendation of the Compensation Committee of the Board (the “Compensation Committee”). 

		
			 
		

			
	
			
				 b.
			

			
	
			
			Target Bonus.  You will be eligible for an annual bonus.  Your initial annual bonus target will be  40% of your Base Salary for the applicable fiscal year (your “Target Bonus”), and the actual bonus amount awarded (your “Actual Bonus”) will be determined by the Compensation Committee of the Board, in its sole discretion, based upon its evaluation of whether you and the Company have achieved mutually agreed Company and individual performance objectives.  To receive payment of any Actual Bonus, you must be employed by the Company on the last day of the period to which such bonus relates and at the time bonuses are paid, except as otherwise provided herein.  The Actual Bonus shall paid no later than March 15 of the year following the year to which the performance objectives relate. Your bonus participation will be subject to all the terms, conditions and restrictions of the applicable Company bonus plan or program,  if any, as may be amended from time to time, but only to the extent such plan or program is consistent with this Agreement.  Your Actual Bonus for fiscal year 2020, year ended January 31, 2020, will be determined by the Board based on achievement of Company financial and other performance metrics determined by the Board, pro-rated based upon the number of days you are employed during fiscal year 2020 after the Effective Date.  

		
			 
		

			
	
			
				 3.
			

			
	
			
			Benefits & Paid Time Off. You will be entitled to participate in all employee retirement, welfare, insurance, benefit and paid time off programs of the Company as are in effect from time to time and in which other senior executives of the Company are eligible to participate, on the same terms as such other senior executives.

		
			 
		

			
	
			
				 4.
			

			
	
			
			Equity Awards. Subject to this Section 5, you will be granted an Option, as follows:  

		
			 
		

			
	
			
				 a.
			

			
	
			
			Time-Based Stock Option.  Within thirty (30) days of the Effective Date (the “Grant Date”), the Company will grant you a stock option to purchase 91,000 shares of the Company’s common stock (the “Option”) under the Company’s 2016 Equity Incentive Plan (the “Equity Plan”).  The Option shall be granted with an exercise price equal to the closing price of the Company’s common stock on the NYSE American on the Grant Date. 

		 

		

			2

		

	The Option will be an incentive stock option to the maximum extent permitted by applicable law and the remainder will be a nonqualified stock option.  The Option will vest as to one thirty-sixth (1/36) of the shares subject to this Option on the last day of each calendar month until all such shares have vested; provided that, subject to Section 8 below, vesting will depend on your continued employment or services with the Company on the applicable vesting dates, and will be subject to the terms and conditions of the written agreement governing the grant, the Equity Plan and this Agreement.      

		
			 
		

			
	
			
				 b.
			

			
	
			
			Non-Assumption upon Change in Control.  Notwithstanding anything to the contrary, if the Option or any other then-outstanding equity awards are not assumed, continued or substituted in a Change in Control (as defined below), then such unvested equity awards shall accelerate and become vested and exercisable (to the extent applicable) as to 100% of the then-unvested shares subject to the equity awards in effect immediately prior to the Change in Control.  

		
			 
		

			
	
			
				 c.
			

			
	
			
			Future Equity. You will be eligible for future equity grants as determined by and pursuant to the terms established by the Board or the Compensation Committee. The amount and vesting terms for such future awards will be determined by the Board or the Compensation Committee.  

		
			 
		

			
	
			
				 5.
			

			
	
			
			Expenses.  The Company will, in accordance with applicable Company policies and guidelines and the general oversight of the Compensation Committee, reimburse you for all reasonable and necessary expenses incurred by you in connection with your performance of services on behalf of the Company.    The Company will reimburse you for the reasonable and necessary expenses that result from you traveling from your home in New Jersey to the Company’s San Jose office (or other business locations) in accordance with the Company’s policies and guidelines.

		
			 
		

			
	
			
				 6.
			

			
	
			
			Definitions. As used in this Agreement, the terms below have the following meanings.

		
			 
		

			
	
			
				 a.
			

			
	
			
			Cause. For purposes of this Agreement, “Cause” for the Company to terminate your employment hereunder shall mean the occurrence of any of the following events, as determined by the Company and/or the Board in its and/or their sole and absolute discretion:  

		
			 
		

			
	
			
				i.
			

			
	
			
			your theft, dishonesty, breach of fiduciary duty, or falsification of any Company documents or records that has a material detrimental effect on the Company’s reputation or business;  

		
			 
		

			
	
			
				ii.
			

			
	
			
			your material failure to abide by the Company’s code of conduct or other material policies (including, without limitation, policies relating to confidentiality and reasonable workplace conduct); 

		
			 
		

			
	
			
				iii.
			

			
	
			
			your unauthorized use, misappropriation, destruction or diversion of any tangible or intangible asset or corporate opportunity of the Company (including, without limitation, your improper use or disclosure of the Company’s confidential or proprietary information); 

		
			 
		

			
	
			
				iv.
			

			
	
			
			any intentional act by you that has a material detrimental effect on the Company’s reputation or business; 

		
			 
		

		
			

		 

		

			3

		

		

			
	
			
				v.
			

			
	
			
			your willful disregard of any reasonable instructions from the Board after written notice from the Board of such disregard; or

		
			 
		

			
	
			
				vi.
			

			
	
			
			your conviction (including any plea of guilty or nolo contendere) for a felony or conviction of any other criminal act that impairs your ability to perform your duties to the Company or has a material detrimental effect on the Company’s reputation or business.

		
			 
		

		
			provided, however, that the action or conduct described in clauses (ii), (iii), (iv) and (v) above will constitute “Cause” only if such action or conduct continues after the Company has provided you with written notice thereof and thirty (30) days to cure the same if such action or conduct is curable.
		

		
			 
		

			
	
			
				 b.
			

			
	
			
			Change in Control.  For purposes of this Agreement, “Change in Control” means the occurrence of any of the following events: (i) any “Person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes the “beneficial owner” (as defined in Rule 13d‐3 of the Exchange Act), directly or indirectly, of securities of the Company representing more than fifty percent (50%) of the total voting power represented by the Company’s then‐outstanding voting securities; provided, however, that for purposes of this subclause (i) the acquisition of additional securities by any one Person who is considered to own more than fifty percent (50%) of the total voting power of the securities of the Company will not be considered a Corporate Transaction (as defined in the Equity Plan); (ii) the consummation of the sale or disposition by the Company of all or substantially all of the Company’s assets; (iii) the consummation of a merger or consolidation of the Company with any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or its parent) at least fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation; or (iv) a change in the effective control of the Company that occurs on the date that a majority of members of the Board is replaced during any twelve (12) month period by members of the Board whose appointment or election is not endorsed by a majority of the members of the Board prior to the date of the appointment or election. For purpose of this subclause (iv), if any Person is considered to be in effective control of the Company, the acquisition of additional control of the Company by the same Person will not be considered a Corporate Transaction (as defined in the Equity Plan). For purposes of this definition, Persons will be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the Company. Notwithstanding the foregoing, to the extent that any amount constituting deferred compensation (as defined in Section 409A of the Code) would become payable under this Plan by reason of a Corporate Transaction, such amount shall become payable only if the event constituting a Corporate Transaction would also qualify as a change in ownership or effective control of the Company or a change in the ownership of a substantial portion of the assets of the Company, each as defined within the meaning of Code Section 409A, as it has been and may be amended from time to time, and any proposed or final Treasury Regulations and IRS guidance that has been promulgated or may be promulgated thereunder from time to time.

		
			 
		

			
	
			
				 c.
			

			
	
			
			COBRA. For purposes of this Agreement, “COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended.

		
			 
		

		
			

		 

		

			4

		

		

			
	
			
				 d.
			

			
	
			
			Disability. For purposes of this Agreement, “Disability” shall have that meaning set forth in Section 22(e)(3) of the Code; provided, however, that the Company may not terminate your employment by reason of Disability unless you cannot perform the essential functions of your position, with or without reasonable accommodation, for a period of at least six months.

		
			 
		

			
	
			
				 e.
			

			
	
			
			Good Reason. For purposes of this Agreement, “Good Reason” for you to terminate your employment hereunder shall mean the occurrence of any of the following events or conditions without your written consent: 

		
			 
		

			
	
			
				i.
			

			
	
			
			a material decrease in your Base Salary, other than a decrease that applies generally to other senior executives of the Company (provided, however, that: (i) any such decrease without Executive’s consent will constitute a breach of this Agreement; and (ii) any such decreased Base Salary will not be considered your final Base Salary for purposes of Section 8 below);  or

		
			 
		

			
	
			
				ii.
			

			
	
			
			a material, adverse change in your authority, responsibilities, or duties as COO, including without limitation any requirement that you report to any person(s) other than the Chief Executive Officer prior to a Change in Control;

		
			 
		

		
			provided, however, that, any such termination by you shall only be deemed for Good Reason pursuant to this definition if: (1) you give the Company written notice of your intent to terminate for Good Reason within ninety (90) days following the first occurrence of the condition(s) that you believe constitute(s) Good Reason, which notice shall describe such condition(s); (2) the Company fails to remedy such condition(s) within thirty (30) days following receipt of the written notice; and (3) you voluntarily terminate your employment thirty (30) days following the expiration of the foregoing thirty (30) day cure period if such condition(s) are not cured within such cure period.  The definition of “Good Reason” is intended to satisfy the Good Reason safe harbor requirements under Section 409A of the Code.
		

		
			 
		

			
	
			
				 7.
			

			
	
			
			Effect of Termination of Employment.

		
			 
		

			
	
			
				 a.
			

			
	
			
			Termination for Cause, Death or Disability, or Voluntary Resignation without Good Reason. In the event your employment is terminated for Cause, your employment terminates due to your death or Disability, you voluntarily resign your employment other than for Good Reason, you will be paid: (i) any earned but unpaid Base Salary, (ii)  the amount of any Actual Bonus earned and payable from a prior bonus period which remains unpaid by the Company as of the date of the termination of employment determined in good faith in accordance with customary practice, to be paid at the same time as bonuses are paid for that period to other eligible executives (for the avoidance of doubt, no bonus will be paid in respect of the year in which such termination occurs), (iii) other unpaid and then-vested amounts, including any amount payable to you under the specific terms of any agreements, plans or awards, including insurance and health and benefit plans in which you participate, unless otherwise specifically provided in this Agreement and (iv) reimbursement for all reasonable and necessary expenses incurred by you in connection with your performance of services on behalf of the Company in accordance with applicable Company policies and guidelines, in each case as of the effective date of such termination of employment (the “Accrued Compensation”).  

		
			 
		

		
			

		 

		

			5

		

		

			
	
			
				 b.
			

			
	
			
			Termination without Cause or Resignation for Good Reason, Absent a Change in Control. If the Company terminates your employment without Cause or if your employment is terminated by you due to your resignation for Good Reason, in either case more than one (1) month before or more than twelve (12) months following a Change in Control,  provided that (except with respect to the Accrued Compensation) you deliver to the Company a signed general release of claims in favor of the Company in the form attached hereto as Exhibit B (the “Release”) and satisfy all conditions to make the Release effective within sixty (60) days following your termination of employment, then, you shall be entitled to:  

		
			 
		

			
	
			
				i.
			

			
	
			
			the Accrued Compensation;

		
			 
		

			
	
			
				ii.
			

			
	
			
			a lump sum payment equal to nine (9) months of your then-current Base Salary; and

		
			 
		

			
	
			
				iii.
			

			
	
			
			payment of the COBRA premiums (provided you timely elect COBRA coverage) by the Company to its insurer (or reimbursement to you of such premiums) for continued health coverage for you and your eligible dependents until the earlier of (x) nine (9) months; or (y) the date you become covered under a group health plan of another employer.

		
			 
		

			
	
			
				 c.
			

			
	
			
			Termination without Cause or Resignation for Good Reason, in Connection with a Change in Control. In the event a Change in Control occurs and if the Company terminates your employment without Cause or if you resign for Good Reason, in either case within the period beginning one (1) month before, and ending twelve (12) months following, such Change in Control; provided that (except with respect to the Accrued Compensation) you deliver to the Company the signed Release and satisfy all conditions to make the Release effective within sixty (60) days following your termination of employment, then, (in lieu of any benefits pursuant to Section 8(b)), you shall be entitled to: 

		
			 
		

			
	
			
				i.
			

			
	
			
			the Accrued Compensation;

		
			 
		

			
	
			
				ii.
			

			
	
			
			a lump sum payment equal to eighteen  (18) months of your then-current Base Salary;  

		
			 
		

			
	
			
				iii.
			

			
	
			
			payment of the COBRA premiums (provided you timely elect COBRA coverage) by the Company to its insurer (or reimbursement to you of such premiums) for continued health coverage for you and your eligible dependents until the earlier of (x) Twelve (12) months; or (y) the date you  become covered under a group health plan of another employer; and

		
			 
		

			
	
			
				iv.
			

			
	
			
			with respect to the Option and any other outstanding equity award the vesting shall accelerate and become vested and exercisable as to 100% of the then-unvested shares subject to the Option and other equity awards effective immediately prior to the Change in Control. 

		
			 
		

			
	
			
				 8.
			

			
	
			
			Miscellaneous.  For the avoidance of doubt, the benefits payable pursuant to Sections 8(b) through (c) are mutually exclusive and not cumulative. All lump sum payments provided in this Section 8 shall be made no later than the 60th day following your termination of employment (unless explicitly provided otherwise above).  Notwithstanding anything to the contrary in this Agreement, (i) any reference herein to a termination of your employment is intended to constitute a “separation from service” within the meaning of Section 409A of the Code, and Section 1.409A-1(h) of the regulations promulgated thereunder, and shall be so 

		 

		

			6

		

	construed, and (ii) no payment will be made or become due to you during any period that you continue in a role with the Company that does not constitute a separation from service, and will be paid once you experience a “separation from service” from the Company within the meaning of Section 409A of the Code.  In addition, notwithstanding anything to the contrary in this Agreement, upon a termination of your employment, you agree to resign prior to the time you deliver the Release from all positions you may hold with the Company and any of its subsidiaries or affiliated entities at such time (including as a member of the Board and the boards or equivalent governing bodies of any subsidiaries or entities), and no payment will be made or become due to you until you resign from all such positions, unless requested otherwise by the Board.

		
			 
		

			
	
			
				 9.
			

			
	
			
			Parachute Payments. In the event that the severance and other benefits provided for in this Agreement or otherwise payable to you (i) constitute “parachute payments” within the meaning of Section 280G of the Code and (ii) but for this Section, would be subject to the excise tax imposed by Section 4999 of the Code, then, at your discretion, your severance and other benefits under this Agreement shall be payable either (i) in full, or (ii) as to such lesser amount which would result in no portion of such severance and other benefits being subject to the excise tax under Section 4999 of the Code, whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes and the excise tax imposed by Section 4999, results in the receipt by you on an after-tax basis, of the greatest amount of severance benefits under this Agreement, notwithstanding that all or some portion of such severance benefits may be taxable under Section 4999 of the Code. Any reduction shall be made in the following manner: first a pro-rata reduction of (i) cash payments subject to Section 409A of the Code as deferred compensation and (ii) cash payments not subject to Section 409A of the Code, and second a pro rata cancellation of (i) equity-based compensation subject to Section 409A of the Code as deferred compensation and (ii) equity-based compensation not subject to Section 409A of the Code, with equity all being reduced in reverse order of vesting and equity not subject to treatment under Treasury regulation 1.280G- Q & A 24(c) being reduced before equity that is so subject. Unless the Company and you otherwise agree in writing, any determination required under this Section shall be made in writing by the Company’s independent public accountants (the “Accountants”), whose determination shall be conclusive and binding upon you and the Company for all purposes. For purposes of making the calculations required by this Section, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code. The Company and you shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section. The Accountants shall deliver to the Company and you sufficient documentation for you to rely on it for purpose of filing your tax returns. The Company shall bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section.

		
			 
		

			
	
			
				 10.
			

			
	
			
			Section 409A. To the extent (i) any payments to which you become entitled under this Agreement, or any agreement or plan referenced herein, in connection with your termination of employment with the Company constitute deferred compensation subject to Section 409A of the Code and (ii) you are deemed at the time of such termination of employment to be a “specified” employee under Section 409A of the Code, then such payment or payments shall not be made or commence until the earlier of (i) the expiration of the six (6)-month period measured from the date of your “separation from service” (as such term is at the time defined in regulations under Section 409A of the Code) with the Company; or (ii) the date of your death following such separation from service; provided, however, that such deferral shall only be effected to the extent required to avoid adverse tax treatment to you, including (without limitation) the additional twenty percent (20%) tax for which you would otherwise be liable 

		 

		

			7

		

	under Section 409A(a)(1)(B) of the Code in the absence of such deferral. Upon the expiration of the applicable deferral period, any payments which would have otherwise been made during that period (whether in a single sum or in installments) in the absence of this paragraph shall be paid to you or your beneficiary in one lump sum (without interest).

		
			 
		

		
			Except as otherwise expressly provided herein, to the extent any expense reimbursement or the provision of any in-kind benefit under this Agreement (or otherwise referenced herein) is determined to be subject to (and not exempt from) Section 409A of the Code, the amount of any such expenses eligible for reimbursement, or the provision of any in-kind benefit, in one calendar year shall not affect the expenses eligible for reimbursement or in kind benefits to be provided in any other calendar year, in no event shall any expenses be reimbursed after the last day of the calendar year following the calendar year in which you incurred such expenses, and in no event shall any right to reimbursement or the provision of any in-kind benefit be subject to liquidation or exchange for another benefit. 
		

		
			 
		

		
			To the extent that any provision of this Agreement is ambiguous as to its exemption or compliance with Section 409A, the provision will be read in such a manner so that all payments hereunder are exempt from Section 409A to the maximum permissible extent, and for any payments where such construction is not tenable, that those payments comply with Section 409A to the maximum permissible extent. To the extent any payment under this Agreement may be classified as a “short-term deferral” within the meaning of Section 409A, such payment shall be deemed a short-term deferral, even if it may also qualify for an exemption from Section 409A under another provision of Section 409A.  Payments pursuant to this Agreement (or referenced in this Agreement), and each installment thereof, are intended to constitute separate payments for purposes of Section 1.409A-2(b)(2) of the regulations under Section 409A.
		

		
			 
		

			
	
			
				 11.
			

			
	
			
			At-Will Employment. Employment with the Company is for no specific period of time. Your employment with the Company will be “at-will,” meaning that either you or the Company (acting through the Board, excluding you) may terminate your employment at any time and for any reason, with or without cause, subject to the applicable payment obligations set forth herein. Any contrary representations that may have been made to you are superseded by this Agreement. This is the full and complete agreement between you and the Company on this term. Although your compensation and benefits, as well as the Company’s personnel policies and procedures, may change from time to time, the “at-will” nature of your employment may only be changed in an express written agreement signed by you and a duly authorized officer of the Company (other than you).

		
			 
		

			
	
			
				 12.
			

			
	
			
			Confidential Information and Other Company Policies. You will be bound by and comply fully with the Company’s standard confidentiality agreement (a form of which was been provided to you), insider trading policy, code of conduct, and any other policies and programs adopted by the Company regulating the behavior of its employees, as such policies and programs may be amended from time to time to the extent the same are not inconsistent with this Agreement, unless you consent to the same at the time of such amendment.

		
			 
		

			
	
			
				 13.
			

			
	
			
			Company Records and Confidential Information.  

		
			 
		

			
	
			
				 a.
			

			
	
			
			Records. All records, files, documents and the like, or abstracts, summaries or copies thereof, relating to the business of the Company or the business of any subsidiary or affiliated companies, which the Company or you prepare or use or come into contact with, will remain the sole property of the Company or the affiliated or subsidiary company, as the case may be, and will be promptly returned upon termination of employment. 

		
			 
		

		
			

		 

		

			8

		

		

			
	
			
				 b.
			

			
	
			
			Confidentiality. You acknowledge that you have acquired and will acquire knowledge regarding confidential, proprietary and/or trade secret information in the course of performing your responsibilities for the Company, and you further acknowledge that such knowledge and information is the sole and exclusive property of the Company. You recognize that disclosure of such knowledge and information, or use of such knowledge and information, to or by a competitor could cause serious and irreparable harm to the Company.

		
			 
		

			
	
			
				 14.
			

			
	
			
			Indemnification. You and the Company will enter into the form of indemnification agreement provided to other similarly situated officers and directors of the Company. In addition, you will be named as an insured on the director and officer liability insurance policy currently maintained by the Company, or as may be maintained by the Company from time to time.

		
			 
		

			
	
			
				 15.
			

			
	
			
			Arbitration. You and the Company agree that any and all claims arising out of or related to this Agreement and your employment with the Company and termination thereof, shall be submitted to arbitration in Santa Clara County, California, before a single arbitrator, in accordance with the JAMS employment arbitration rules then in effect;  provided, however, that provisional injunctive relief may, but need not, be sought in a court of law while arbitration proceedings are pending, and any provisional injunctive relief granted by such court shall remain effective until the matter is finally determined by the arbitrator. This agreement to arbitrate does not restrict your right to file administrative claims before any government agency where, as a matter of law, the parties may not restrict your ability to file such claims (including, but not limited to, the National Labor Relations Board, the Equal Employment Opportunity Commission and the Department of Labor). However, you and the Company agree that, to the fullest extent permitted by law, arbitration shall be the exclusive remedy for the subject matter of such administrative claims.  The arbitrator shall issue a written decision that contains the essential findings and conclusions upon which the decision is based. Final resolution of any dispute through arbitration may include any remedy or relief which the arbitrator deems just and equitable. Any award or relief granted by the arbitrator hereunder shall be final and binding on the parties hereto and may be enforced by any court of competent jurisdiction. The parties acknowledge that they are hereby waiving any rights to trial by jury in any action, proceeding or counterclaim brought by either of the parties against the other in connection with any matter whatsoever arising out of or in any way connected with this Agreement.

		
			 
		

			
	
			
				 16.
			

			
	
			
			Compensation Recoupment. All amounts payable to you hereunder shall be subject to recoupment pursuant to the Company’s current compensation recoupment policy, and any additional compensation recoupment policy or amendments to the current policy adopted by the Board or as required by law, regulation or securities exchange listing agreement during the term of your employment with the Company that is applicable generally to executive officers of the Company.

		
			 
		

			
	
			
				 17.
			

			
	
			
			Miscellaneous. 

		
			 
		

			
	
			
				 a.
			

			
	
			
			Absence of Conflicts; Competition with Prior Employer. You represent that the performance of your duties under this Agreement will not breach any other agreement as to which you are a party. You agree that you have disclosed to the Company all of your existing employment and/or business relationships, including, but not limited to, any consulting or advising relationships, outside directorships, investments in privately held companies, and any other relationships that may create a conflict of interest. You are not to bring with you to the Company, or use or disclose to any person associated with the Company, any confidential or proprietary information belonging to any former employer or other person or entity with respect to which you owe an obligation of confidentiality 

		 

		

			9

		

	under any agreement or otherwise. The Company does not need and will not use such information and we will assist you in any way possible to preserve and protect the confidentiality of proprietary information belonging to third parties. Also, we expect you to abide by any obligations to refrain from soliciting any person employed by or otherwise associated with any former employer and suggest that you refrain from having any contact with such persons until such time as any non-solicitation obligation expires.

		
			 
		

			
	
			
				 b.
			

			
	
			
			Successors. This Agreement is binding on and may be enforced by the Company and its successors and permitted assigns and is binding on and may be enforced by you and your heirs and legal representatives. Any successor to the Company or substantially all of its business (whether by purchase, merger, consolidation or otherwise) will in advance assume in writing and be bound by all of the Company’s obligations under this Agreement and shall be the only permitted assignee.

		
			 
		

			
	
			
				 c.
			

			
	
			
			Notices. Notices under this Agreement must be in writing and will be deemed to have been given when personally delivered or two days after mailed by U.S. registered or certified mail, return receipt requested and postage prepaid. Mailed notices to you will be addressed to you at the home address which you have most recently communicated to the Company in writing. Notices to the Company will be addressed to the Chairman of the Board at the Company’s corporate headquarters with a copy to the Company’s General Counsel.

		
			 
		

			
	
			
				 d.
			

			
	
			
			Waiver. No provision of this Agreement will be modified or waived except in writing signed by you and an officer of the Company duly authorized by its Board. No waiver by either party of any breach of this Agreement by the other party will be considered a waiver of any other breach of this Agreement.

		
			 
		

			
	
			
				 e.
			

			
	
			
			Severability. In the event that any provision hereof becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement shall continue in full force and effect without said provision.

		
			 
		

			
	
			
				 f.
			

			
	
			
			Withholding. All sums payable to you hereunder shall be reduced by all federal, state, local and other withholding and similar taxes and payments required by applicable law 

		
			 
		

			
	
			
				 g.
			

			
	
			
			Entire Agreement. This Agreement represents the entire agreement between the parties concerning the subject matter herein.  This Agreement may be amended, or any of its provisions waived, only by a written document executed by both parties in the case of an amendment, or by the party against whom the waiver is asserted.

		
			 
		

			
	
			
				 h.
			

			
	
			
			Governing Law. This Agreement will be governed by the laws of the State of California without reference to conflict of laws provisions.

		
			 
		

			
	
			
				 i.
			

			
	
			
			Survival. The provisions of this Agreement shall survive the termination of your employment for any reason to the extent necessary to enable the parties to enforce their respective rights under this Agreement.

		
			[SIGNATURE PAGE TO AGREEMENT FOLLOWS]
		

		
			

		 

		

			10

		

		

		
			Best regards,
		

		
			 
		

		
			/s/ David S. Tierney
		

		
			David S. Tierney
		

		
			President and Chief Executive Officer
		

		
			BioPharmX, Inc.
		

		
			 
		

		
			 
		

		
			I, the undersigned, hereby accept and agree to the terms and conditions of my employment with the Company as set forth in this Agreement.
		

		
			 
		

		
			Accepted and agreed July 16, 2019:
		

		
			 
		

		
			/s/ Steven Bosacki
		

		
			     Steven Bosacki
		

		
			 
		

		
			 
		

		
			 
		

		
			
		

		
			 
		

		
			 [SIGNATURE PAGE TO AGREEMENT]
		

		
			

		 

		

			

		

		

		
			Exhibit A 
		

		
			 
		

		
			Outside Activities
		

		
			 
		

		
			 
		

		
			

		 

		

			

		

Exhibit B 
		

		
			Release 
		

		
			In consideration of the termination benefits (the “Benefits”) provided and to be provided to me by BioPharmX Corporation, or any successor thereof (the “Company”) pursuant to my Agreement with the Company dated            , 2019 (the “Agreement”) and in connection with the termination of my employment, I agree to the following general release (the “Release”). 
		

			
	
			
				 1.
			

			
	
			
			On behalf of myself, my heirs, executors, administrators, successors, and assigns, I hereby fully and forever generally release and discharge Company, its current, former and future parents, subsidiaries, affiliated companies, related entities, employee benefit plans, and, in such capacities, their fiduciaries, predecessors, successors, officers, directors, shareholders, agents, employees and assigns (collectively, the “Company”) from any and all claims, causes of action, and liabilities up through the date of my execution of the Release. The claims subject to this release include, but are not limited to, those relating to my employment with Company and/or any predecessor to Company and the termination of such employment. All such claims (including related attorneys’ fees and costs) are barred without regard to whether those claims are based on any alleged breach of a duty arising in statute, contract, or tort. This expressly includes waiver and release of any rights and claims arising under any and all laws, rules, regulations, and ordinances, including, but not limited to: Title VII of the Civil Rights Act of 1964; the Older Workers Benefit Protection Act; the Americans With Disabilities Act; the Age Discrimination in Employment Act; the Fair Labor Standards Act; the National Labor Relations Act; the Family and Medical Leave Act; the Employee Retirement Income Security Act of 1974, as amended (“ERISA”); the Workers Adjustment and Retraining Notification Act; the California Fair Employment and Housing Act (if applicable); the provisions of the California Labor Code (if applicable); the Equal Pay Act of 1963; and any similar law of any other state or governmental entity. The parties agree to apply California law in interpreting the Release. Accordingly, I further waive any rights under Section 1542 of the Civil Code of the State of California or any similar state statute. Section 1542 states: “A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which, if known to him or her, must have materially affected his or her settlement with the debtor.” This Release does not extend to, and has no effect upon, any benefits that have accrued or equity that has vested, and to which I have become vested or otherwise entitled to, under any employee benefit plan, program or policy sponsored or maintained by the Company, or to my right to indemnification by the Company, and continued coverage by the Company’s director’s and officer’s insurance.

		
			 
		

			
	
			
				 2.
			

			
	
			
			In understanding the terms of the Release and my rights, I have been advised to consult with an attorney of my choice prior to executing the Release. I understand that nothing in the Release shall prohibit me from exercising legal rights that are, as a matter of law, not subject to waiver such as: (a) my rights under applicable workers’ compensation laws; (b) my right, if any, to seek unemployment benefits; (c) my right to indemnity under California Labor Code section 2802 or other applicable state-law right to indemnity; and (d) my right to file a charge or complaint with a government agency such as but not limited to the Equal Employment Opportunity Commission, the National Labor Relations Board, the Department of Labor, the California Department of Fair Employment and Housing, or other applicable state agency (“Government Agencies”).  I further understand that this Release does not limit my ability to communicate with any Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information without notice to the Company.  This Release does not limit my right to receive an award for information provided to any Government Agencies.  Moreover, I will continue to be indemnified for my actions taken while employed by the Company to the same extent as other 

		 

		

			13

		

	former directors and officers of the Company under the Company’s Certificate of Incorporation and Bylaws and the Director and Officer Indemnification Agreement between me and the Company, if any, and I will continue to be covered by the Company’s directors and officers liability insurance policy as in effect from time to time to the same extent as other former directors and officers of the Company, each subject to the requirements of the laws of the State of California. To the fullest extent permitted by law, any dispute regarding the scope of this general release shall be resolved through binding arbitration as set forth below, and the arbitration provision set forth in my Agreement.

		
			 
		

			
	
			
				 3.
			

			
	
			
			I understand and agree that Company will not provide me with the Benefits unless I execute the Release. I also understand that I have received or will receive, regardless of the execution of the Release, all wages owed to me together with any accrued but unused vacation pay, less applicable withholdings and deductions, earned through my termination date.

		
			 
		

			
	
			
				 4.
			

			
	
			
			As part of my existing and continuing obligations to Company, I have returned to Company all Company documents (and all copies thereof) and other Company property that I have had in my possession at any time, including but not limited to Company files, notes, drawings, records, business plans and forecasts, financial information, specification, computer-recorded information, tangible property (including, but not limited to, computers, laptops, pagers, etc.), credit cards, entry cards, identification badges and keys; and any materials of any kind which contain or embody any proprietary or confidential information of Company (and all reproductions thereof). I understand that, even if I did not sign the Release, I am still bound by any and all confidential/proprietary/trade secret information, non-disclosure and inventions assignment agreement(s) signed by me in connection with my employment with Company, or with a predecessor or successor of Company pursuant to the terms of such agreement(s).

		
			 
		

			
	
			
				 5.
			

			
	
			
			I represent and warrant that I am the sole owner of all claims relating to my employment with Company and/or with any predecessor of Company, and that I have not assigned or transferred any claims relating to my employment to any other person or entity.

		
			 
		

			
	
			
				 6.
			

			
	
			
			I agree to keep the Benefits and the provisions of the Release confidential and not to reveal its contents to anyone except my lawyer, my spouse or other immediate family member, and/or my financial consultant, or as required by legal process or applicable law unless and until they become publicly available.

		
			 
		

			
	
			
				 7.
			

			
	
			
			I understand and agree that the Release shall not be construed at any time as an admission of liability or wrongdoing by either Company or myself.

		
			 
		

			
	
			
				 8.
			

			
	
			
			I agree that, for twenty-four (24) months following my termination of employment, I will not, directly or indirectly, make any disparaging statements or comments, either as fact or as opinion, about Company, its employees, officers, directors, shareholders, vendors, products or services, business, technologies, market position or performance, and the Company agrees that neither it formally nor its officer or members of the Board of Directors will make, directly or indirectly, any disparaging statements or comments, either as fact or as opinion, about me. Nothing in this paragraph shall prohibit me or Company from providing truthful information in response to a subpoena or other legal process.

		
			 
		

			
	
			
				 9.
			

			
	
			
			I agree that, for twelve (12) months following my termination of employment, I will not, directly or indirectly, solicit away any employees or consultants of the Company for my own benefit or for the benefit of any other person or entity, nor will I encourage or assist others to do 

		 

		

			14

		

	so  (provided, however, that this restriction will not apply to any consultants with whom I have a pre-existing business relationship).

		
			 
		

			
	
			
				 10.
			

			
	
			
			You and the Company agree that any and all claims arising out of or related to this Agreement and your employment with the Company and termination thereof, shall be submitted to arbitration in Santa Clara County, California, before a single arbitrator, in accordance with the JAMS employment arbitration rules then in effect;  provided, however, that provisional injunctive relief may, but need not, be sought in a court of law while arbitration proceedings are pending, and any provisional injunctive relief granted by such court shall remain effective until the matter is finally determined by the arbitrator. This agreement to arbitrate does not restrict your right to file administrative claims before any government agency where, as a matter of law, the parties may not restrict your ability to file such claims (including, but not limited to, the National Labor Relations Board, the Equal Employment Opportunity Commission and the Department of Labor). However, you and the Company agree that, to the fullest extent permitted by law, arbitration shall be the exclusive remedy for the subject matter of such administrative claims.  The arbitrator shall issue a written decision that contains the essential findings and conclusions upon which the decision is based. Final resolution of any dispute through arbitration may include any remedy or relief which the arbitrator deems just and equitable. Any award or relief granted by the arbitrator hereunder shall be final and binding on the parties hereto and may be enforced by any court of competent jurisdiction. The parties acknowledge that they are hereby waiving any rights to trial by jury in any action, proceeding or counterclaim brought by either of the parties against the other in connection with any matter whatsoever arising out of or in any way connected with this Agreement.

		
			 
		

			
	
			
				 11.
			

			
	
			
			I agree that I have had at least twenty-one (21) calendar days in which to consider whether to execute the Release, no one hurried me into executing the Release during that period, and no one coerced me into executing the Release. I understand that the offer of the Benefits and the Release shall expire on the twenty-second (22nd) calendar day after my employment termination date if I have not accepted it by that time. I further understand that Company’s obligations under the Release shall not become effective or enforceable until the eighth (8th) calendar day after the date I sign the Release provided that I have timely delivered it to Company (the “Effective Date”) and that in the seven (7) day period following the date I deliver a signed copy of the Release to Company I understand that I may revoke my acceptance of the Release. I understand that the Benefits will become available to me at such time after the Effective Date.

		
			 
		

			
	
			
				 12.
			

			
	
			
			In executing the Release, I acknowledge that I have not relied upon any statement made by Company, or any of its representatives or employees, with regard to the Release unless the representation is specifically included herein. Furthermore, the Release contains our entire understanding regarding eligibility for Benefits and supersedes any or all prior representation and agreement regarding the subject matter of the Release. However, the Release does not modify, amend or supersede written Company agreements that are consistent with enforceable provisions of this Release such as my Agreement, proprietary information and invention assignment agreement, and any stock, stock option and/or stock purchase agreements between Company and me. Once effective and enforceable, this agreement can only be changed by another written agreement signed by me and an authorized representative of Company.

		
			 
		

			
	
			
				 13.
			

			
	
			
			Should any provision of the Release be determined by an arbitrator, court of competent jurisdiction, or government agency to be wholly or partially invalid or unenforceable, the legality, validity and enforceability of the remaining parts, terms, or provisions are intended to remain in full force and effect. Specifically, should a court, arbitrator, or agency conclude that a particular claim may not be released as a matter of law, it is the intention of the parties that the 

		 

		

			15

		

	general release and the waiver of unknown claims above shall otherwise remain effective to release any and all other claims. I acknowledge that I have obtained sufficient information to intelligently exercise my own judgment regarding the terms of the Release before executing the Release.

		
			 
		

			
	
			
				 14.
			

			
	
			
			The Benefits provided and to be provided to me by the Company consist of the benefits and payments in accordance with Section 8 of the Agreement.

		
			[SIGNATURE PAGE TO GENERAL RELEASE AGREEMENT FOLLOWS]
		

		
			

		 

		

			16

		

		

			 

		

		

		
			EMPLOYEE’S ACCEPTANCE OF RELEASE
		

		
			 
		

		
			BEFORE SIGNING MY NAME TO THE RELEASE, I STATE THE FOLLOWING: I HAVE READ THE RELEASE, I UNDERSTAND IT AND I KNOW THAT I AM GIVING UP IMPORTANT RIGHTS.  I HAVE OBTAINED SUFFICIENT INFORMATION TO INTELLIGENTLY EXERCISE MY OWN JUDGMENT.  I HAVE BEEN ADVISED THAT I SHOULD CONSULT WITH AN ATTORNEY BEFORE SIGNING IT, AND I HAVE SIGNED THE RELEASE KNOWINGLY AND VOLUNTARILY.
		

		
			EFFECTIVE UPON EXECUTION BY EMPLOYEE AND THE COMPANY.
		

		
			 
		

		
			Date delivered to employee ___________, ______.
		

		
			Executed this ___________ day of ___________, ______.
		

		
			 
		

		
			 
		

		
			
		

		
			Your Signature
		

		
			 
		

		
			
		

		
			Your Name (Please Print)
		

		
			 
		

		
			 
		

		
			 
		

		
			Agreed and Accepted:
		

		
			 
		

		
			BioPharmX Corporation
		

		
			 
		

		
			 
		

		
			___________________________
		

		
			By:
		

		
			Date:
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			[Signature Page to General Release Agreement]

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