Document:

EXHIBIT 4.14

STRATA SKIN SCEINCES, INC.

INCENTIVE STOCK OPTION AGREEMENT

THIS AGREEMENT ("Agreement") is made as of __________, 20__ by and between STRATA Skin Sciences, Inc., a Delaware corporation (the "Company"), and ___________("Optionee").

R E C I T A L

The Board of Directors of the Company (the "Board of Directors") has authorized the granting to Optionee of an incentive stock option to purchase the number of shares of Common Stock of the Company specified in Paragraph 1 hereof, at the price specified therein, such option to be for the term and upon the terms and conditions hereinafter stated.

A G R E E M E N T

NOW, THEREFORE, in consideration of the premises and of the undertakings of the parties hereto contained herein, it is hereby agreed:

1.            Grant of Option.  The Company hereby grants to Optionee, subject to all the terms and provisions of the STRATA Skin Sciences, Inc. 2013 Stock Incentive Plan, as such Plan may be hereinafter amended, a copy of which is attached hereto and incorporated herein by this reference (the "Plan"), the right, privilege and option ("Option") to purchase __________ shares of its common stock ("Stock") at $________ per share, in the manner and subject to the conditions provided hereinafter and in the Plan and any amendments thereto and any rules and regulations thereunder.

2.            Term.  This Option shall expire _____ (__) years from the date first written above.

3.            Shares Subject to Exercise.  The Options shall be exercisable as follows:

(a)            __________ on __________, 20__;

(b)            __________ on __________, 20__;

(c)            __________ on __________, 20__; and

(d)            __________ on __________, 20__.

Notwithstanding anything in this Agreement to the contrary, unless this Option shall expire by its term in accordance with Section 2 hereof: (i) if Optionee shall be an officer, director or other employee of THE COMPANY (as such term is defined in the Plan), this Option shall terminate 90 days following the date of Optionee's retirement, pursuant to Section 7(b) of the Plan; and (ii) in any event, this Option shall terminate 90 days following the date of any Other Termination, pursuant to Section 7(c) of the Plan, or shall terminate within six months upon death or disability of the Optionee, pursuant to Section 7 (b) of the Plan.

4.            Method and Time of Exercise.  The Option may be exercised by written notice delivered to the Company stating the number of shares with respect to which the Option is being exercised, together with a check made payable to the Company in the amount of the purchase price of such shares plus the amount of applicable federal, state and local withholding taxes, together with a duly completed and signed Election to Purchase substantially in the form attached to this Option, and a duly completed and signed Form of Stockholders Certificate provided for in Section 8 hereof and substantially in the form attached to this Option, if required by such Section 8.  No fewer than 100 shares may be purchased at any one time unless the number purchased is the total number purchasable under such Option at the time.  Only whole shares may be purchased.

5.            Tax Withholding.  As a condition to exercise of this Option, the Company may require the Optionee to pay over to the Company all applicable federal, state and local taxes which the Company is required to withhold with respect to the exercise of this Option.  At the discretion of the Company and upon the request of the Optionee, the minimum statutory withholding tax requirements may be satisfied by the withholding of shares of Common Stock otherwise issuable to the Optionee upon the exercise of this Option.

6.            Nontransferability.  This Option may not be assigned or transferred except, if applicable, by will or by the laws of descent and distribution, and may be exercised only by Optionee during Optionee's lifetime and after Optionee's death, by Optionee's representative or by the person entitled thereto under Optionee's will or the laws of intestate succession, provided, however, that, Optionee, with the approval of the Plan Committee, may transfer this Option, for no consideration, to or for the benefit of Optionee's Immediate Family (including, without limitation, to a trust for the benefit of members of Optionee's Immediate Family or to a partnership or limited liability company for one or more members of Optionee's Immediate Family), subject to such limits as the Plan Committee may establish, and the transferee shall remain subject to all terms and conditions applicable to the Option prior to such transfer.  The foregoing right to transfer the Option shall apply to the right to consent to amendments to this Agreement and, in the discretion of the Plan Committee, shall also apply to the right to transfer ancillary rights associated with the Option.  The term "Immediate Family" shall mean Optionee's spouse, parents, children, stepchildren, adoptive relationships, sisters, brothers and grandchildren (and for this purpose, shall also include Optionee).  In no event shall any purported transfer be effective until such time that the Optionee shall deliver to the Company a duly completed and signed written Assignment, substantially in the form attached to this Option.  The Company shall have no obligation whatever to give notice to any transferee of any matter, including without limitation early termination of any Option in accordance with Section 3 hereof or otherwise in accordance with the Plan.

7.            Optionee Not a Shareholder.  Optionee shall have no rights as a shareholder with respect to the Common Stock of the Company covered by the Option until the date of issuance of a stock certificate or stock certificates to him upon exercise of the Option.  No adjustment will be made for dividends or other rights for which the record date is prior to the date such stock certificate or certificates are issued.

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8.            Restrictions on Sale of Shares.  Optionee represents and agrees that, upon Optionee's exercise of the Option in whole or part, unless there is in effect at that time under the Securities Act of 1933 a registration statement relating to the shares issued to him, he will acquire the shares issuable upon exercise of this Option for the purpose of investment and not with a view to their resale or further distribution, and that upon each exercise thereof Optionee will furnish to the Company a duly completed and signed written statement to such effect, satisfactory to the Company in the form and substance of the Stockholders Certificate attached to this Option.  Optionee agrees that any certificates issued upon exercise of this Option may bear a legend indicating that their transferability is restricted in accordance with applicable state or federal securities law.  Any person or persons entitled to exercise this Option under the provisions of Section 5 hereof shall, upon each exercise of the Option under circumstances in which Optionee would be required to furnish such a written statement, also furnish to the Company a written statement to the same effect, satisfactory to the Company in the form and substance of the Election to Purchase.

9.            Notices.  All notices to the Company shall be addressed to the Company at the principal office of the Company, and all notices to Optionee shall be addressed to Optionee at the address, email address, and/or telecopier number of Optionee on file with the Company, or to such other address, email address, and/or telecopier number as either may designate to the other in writing.  A notice shall be deemed to be duly given if and when enclosed in a properly addressed sealed envelope deposited, postage prepaid, with the United States Postal Service and followed by telecopier to the addressee.  In lieu of giving notice by mail as aforesaid, written notices under this Agreement may be given by personal delivery to Optionee or to the Company (as the case may be).

10.            Adjustments.  If there is any change in the capitalization of the Company affecting in any manner the number or kind of outstanding shares of Common Stock of the Company, whether by stock dividend, stock split, reclassification or recapitalization of such stock, or because the Company has merged or consolidated with one or more other corporations (and provided the Option does not thereby terminate pursuant to Section 2 hereof), then the number and kind of shares then subject to the Option and the price to be paid therefor shall be appropriately adjusted by the Board of Directors; provided, however, that in no event shall any such adjustment result in the Company's being required to sell or issue any fractional shares.  Any such adjustment shall be made without change in the aggregate purchase price applicable to the unexercised portion of the Option, but with an appropriate adjustment to the price of each Share or other unit of security covered by this Option.

11.            Cessation of Corporate Existence.  Notwithstanding any other provision of this Option, upon the dissolution or liquidation of the Company, the reorganization, merger or consolidation of the Company with one or more corporations as a result of which the Company is not the surviving corporation, or the sale of substantially all the assets of the Company or of more than 50% of the then outstanding stock of the Company to another corporation or other entity, the Option granted hereunder shall terminate; provided, however, that: (i) each Option for which no option has been tendered by the surviving corporation in accordance with all of the terms of provision (ii) immediately below shall, within five days before the effective date of such dissolution or liquidation, merger or consolidation or sale of assets in which the Company is not the surviving corporation or sale of stock, become fully exercisable; or (ii) in its sole and absolute discretion, the surviving

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corporation may, but shall not be so obligated to, tender to any Optionee, an option to purchase shares of the surviving corporation, and such new option or options shall contain such terms and provisions as shall be required substantially to preserve the rights and benefits of this Option.

12.  Invalid Provisions.  In the event that any provision of this Agreement is found to be invalid or otherwise unenforceable under any applicable law, such invalidity or unenforceability shall not be construed as rendering any other provisions contained herein invalid or unenforceable, and all such other provisions shall be given full force and effect to the same extent as though the invalid or unenforceable provision were not contained herein.

13.            Binding Effect.  This Agreement shall be binding upon and inure to the benefit of Optionee, his heirs and successors, and of the Corporation, its successors and assigns.

14.            Descriptive Headings.  Titles to Sections are solely for information purposes.

15.            Application of Plan.  The Corporation has delivered and the Optionee hereby acknowledges receipt of a copy of the Plan.  The parties agree and acknowledge that the Option granted hereunder is granted pursuant to the Plan and subject to the terms and provisions thereof, and the rights of the Optionee are subject to modifications and termination (including, without limitation, the provisions of Sections 7, 9 and 10 of the Plan) in certain events as provided in the Plan.  All capitalized terms not otherwise defined herein shall have the same meanings ascribed to them in the Plan.

16.  Applicable Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware.

17. Counterparts.  This Agreement may be executed in counterparts, all of which shall be considered one and the same agreement, and shall become effective when one or more counterparts have been signed by each of the parties hereto and delivered to the other.

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year first above written.

 

	 	 	
("Company")

	 
	 	 	 	 
	 	 	
STRATA SKIN SCEINCES, INC.

	 
	 	 	 	 
	 	 	 	 
	 	 	
By:_________________________________________

	 
	 	 	 	 
	 	 	 	 
	 	 	
("Optionee")

	 
	 	 	 	 
	 	 	 	 
	 	 	 ____________________________________________	 
	 	 	
NAME

	 

 

 

 

 

Address of Optionee:

_____________________________

_____________________________

_____________________________

Social Security Number

or Employer Identification

Number of Optionee:

_____________________________

 

 

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ELECTION TO PURCHASE

The undersigned hereby irrevocably elects to exercise ____________________ of the Options represented by this Option Agreement and to purchase the Common Shares issuable upon the exercise of the Options, and requests that Certificates for such shares be issued and delivered as follows:

ISSUE TO:

_____________________________________________________________

(Name)

_____________________________________________________________

(Address, Including Zip Code)

_____________________________________________________________

(Social Security or Tax Identification Number)

DELIVER TO:

_____________________________________________________________

(Name)

at            _______________________________________________________

(Address, Including Zip Code)

If the number of Options hereby exercised is less than all the Options represented by this Option Agreement, the undersigned requests that a new Option Agreement representing the number of full Options not exercised be issued and delivered as set forth above or otherwise as the undersigned shall direct in writing.

In full payment of the purchase price with respect to the Options exercised and transfer taxes, if any, the undersigned hereby tenders payment of $_______________ by check, bank cashier's check or money order payable in United States currency to the order of the Company, or by cashless exercise, if permissible under the terms and conditions of the Option Agreement, in the manner set forth in the written statement attached hereto.

Dated:  ____________________, ______

____________________________________

Signature

(Signature must conform in all respects to name of holder as specified in the Option Agreement)

PLEASE INSERT SOCIAL SECURITY OR TAX IDENTIFICATION NUMBER OF HOLDER

________________________________________

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ASSIGNMENT

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto the Assignee named below all of the rights of the undersigned represented by the within Option Agreement, with respect to the number of Options set forth below:

	
 

Name of

 Assignee

	
 

Social Security No.

 or Tax I.D.

	
 

 

Address

	
 

No. of

 Options

	 	 	 	 
	 	 	 	 
	 	 	 	 

and does hereby irrevocably constitute and appoint __________________________________ Attorney, to make such transfer on the books of STRATA Skin Sceinces, Inc., a Delaware corporation (the "Company"), maintained for that purpose, with full power of substitution in the premises.

The undersigned hereby represents and warrants to the Company that the Assignee is a member of the undersigned's "Immediate Family," as such term is defined in Section 6 of the Option Agreement.

Dated:  ____________________, ______

_________________________________________

Signature

(Signature must conform in all respects to name of Optionee as specified in the Option Agreement)

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FORM OF STOCKHOLDER'S CERTIFICATE

The undersigned (the "Purchaser") is exercising the options (the "Options") tendered with this certificate, and in connection with such exercise, hereby certifies to STRATA Skin Sciences, Inc. a Delaware corporation (the "Company") that the Purchaser understands and agrees that:

1.            The shares of common stock of the Company (the "Common Shares") deliverable upon exercise of the Options are not registered pursuant to the Securities Act of 1933, as amended (the "Securities Act"), and the offering and sale of the Common Shares is intended to be exempt from registration under the Securities Act;

2.            The Common Shares to be acquired by the Purchaser pursuant to exercise of the Options are being acquired for the Purchaser's own account and without a view to the distribution of such Common Shares or any interest therein; provided that (i) this representation shall not prejudice the Purchaser's right at all times to sell or otherwise dispose of all or any part of the Common Shares so acquired by the Purchaser pursuant to a registration under the Securities Act or an exemption from such registration available under the Securities Act and (ii) the disposition of the Purchaser's property shall be at all times within its control;

3.            The Purchaser has such knowledge and experience in financial and business matters so as to be capable of evaluating the merits and risks of its investment in the Common Shares, and the Purchaser is capable of bearing the economic risks of such investment and is able to bear a complete loss of its investment in the Common Shares;

4.            The Purchaser represents and agrees that the Options that the Company has made available to the Purchaser or its agents all documents and information relating to an investment in Common Shares requested by or on behalf of the Purchaser; and

5.            The Purchaser acknowledges that the offer and sale of the Common Shares has not been accomplished by the publication of any advertisement.

6.            All Common Shares issued on delivery of this certificate shall bear a legend, which the Company may affix on such certificate, in the sole judgment of the Company, in accordance with Section 8 of the Option Agreement.

In witness whereof, the Purchaser has caused this Certificate to be duly executed on this ____ day of ____________, ___________.

 

	 	
[Name of Purchaser]

 

	 	
By: ____________________________________

	 	
 

Name:  ______________________________

	 	
 

Title:    ______________________________

8EXHIBIT 4.15

FORM OF

STOCK OPTION AGREEMENT

(Non-Qualified Stock Option)

THIS STOCK OPTION AGREEMENT (this "Agreement"), dated as ____________ (the "Grant Date"), is between STRATA SKIN SCIENCES, INC., a Delaware corporation (the "Company"), and __________________________ ("Optionee").

R E C I T A L S

A.            The Company has adopted the 2013 Stock Incentive Plan (the "Plan") to provide a flexible vehicle through which it may offer equity-based compensation incentives in the form of options to purchase shares of the Company's common stock (the "Common Stock") to employees, directors or consultants of the Company in order to attract, motivate, reward and retain such personnel and to further align the interests of such personnel with those of the stockholders of the Company.

B.            Optionee is eligible to receive a stock option under the Plan and, upon executing a Notice of Exercise in the form attached hereto, to become a stockholder of the Company.

C.            Subject to the satisfaction of the conditions set forth herein, the Company desires to grant to Optionee a stock option to purchase shares of Common Stock, and Optionee is willing to accept such option, upon the terms and conditions hereinafter set forth.

D.            The Company and Optionee are parties to an Employment Agreement dated as of ____________, 20__ (the "Employment Agreement").

E.            Capitalized terms used herein and not defined in this Agreement shall have the meanings specified in the Plan.

NOW, THEREFORE, the parties hereto, in consideration of the mutual covenants contained herein, agree as follows:

1.            Option.  The Company hereby grants to Optionee an unvested option to purchase up to ________________ shares of Common Stock (the "Option Shares") at an exercise price of $____ per share (the "Option").  The Option shall be subject to the terms and provisions of this Agreement and of the Plan, which is incorporated herein by reference.

2.            Vesting.  The Option shall vest and may be exercised in accordance with the following vesting schedule:

options to purchase up to _________________ Option Shares shall vest in three equal installments of ___________ shares each on _________________, ____________________and ______________, respectively; provided, however, that vesting shall accelerate and the right to purchase all such Option Shares shall vest in full upon the consummation of a Change in Control of the Company; and

3.            Term.  The Option shall continue in effect until the _______ anniversary of the Grant Date (the "Term").  During the Term, Optionee may exercise the Option in whole or in part at any time and from time to time.  Thereafter, the Option shall expire and become unexercisable.  The foregoing notwithstanding, subject to the other provisions of the Plan, if Optionee's employment with, or other service to, the Company terminates for any reason (other than death, Disability or Cause, as described in the Plan and as outlined below) or for no reason, then (i) any portion of the Option that is not then exercisable shall thereupon terminate, and (ii) any portion of the Option that is then exercisable shall remain exercisable during the 90-day period following such termination or, if sooner, until the expiration of the Term and, to the extent not exercised within such period, shall thereupon terminate.  The foregoing notwithstanding, if Optionee's employment with, or other service to, the Company terminates by reason of death or Disability, then the phrase "90-day period following such termination" in subsection (ii) above shall be replaced with the phrase "one-year period following such termination."  In addition, notwithstanding anything to the contrary set forth herein, if Optionee's employment or other service is terminated for Cause, then the Option, whether or not then exercisable, shall immediately terminate and cease to be exercisable.

4.            Manner of Exercising Option.

(a)            Subject to the satisfaction of the conditions contained in this Agreement, the Option may be exercised by delivering to the Secretary of the Company a Notice of Exercise in the form attached hereto as Exhibit A, duly completed and executed by Optionee or his or her legal representative, together with payment in full for the shares of Common Stock purchased thereby.

(b)            Notwithstanding anything in this Agreement to the contrary, at the discretion of the Company, the aggregate exercise price of the portion of this Option being exercised may be paid, in whole or in part, (i) by cash or check payable to the Company; (ii) by surrender to the Company of that number of fully paid and non-assessable shares of Common Stock owned by Optionee based on the Fair Market Value (as that term is defined in the Plan) equal to applicable exercise price; or (iii) by means of a "net value" exercise which reduces the number of Option Shares to be received upon such exercise to a "Net Number" of Option Shares determined according to the following formula:

Net Number = (A x (B - C))/B. For purposes of the foregoing formula:

A = the total number of Option Shares with respect to which this Option is then being exercised;

B = the last reported sale price (as reported by the principal national securities exchange on which the Common Stock is then traded) of the Common Stock on the trading date immediately preceding the date of the applicable exercise of this Option; and

C = the exercise price then in effect at the time of such exercise.

 

It is specifically intended that any such exercise contemplated hereunder be exempt from the "short-swing profit" rule of Section 16(b) of the Exchange Act of 1934, as amended (the "Exchange Act"), as provided by Rule 16b-3 of the Exchange Act.

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5.            Release.  By signing below, Optionee, on behalf of himself or herself, his or her successors and assigns, hereby releases and forever discharges the Company and the present and former officers, directors, shareholders, employees, agents and attorneys of each of them from any and all actions, causes of action, damages, judgments, liabilities, obligations and claims whatsoever, in law or in equity, whether known or unknown, relating to, and covenants not to sue based on, any and all of the Company's commitments made by the Company prior to the date hereof to issue Optionee stock options or other equity incentives.

6.            No Transfer or Assignment.  The Option may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by (i) will and by the laws of descent and distribution and (ii) during the lifetime of Optionee, to the extent and in the manner authorized by the Compensation Committee, but only to the extent such transfers are made to family members, to family trusts, to family controlled entities, to charitable organizations, and pursuant to domestic relations orders, in all cases without payment for such transfers. Any purported sale, pledge, assignment, hypothecation, transfer, or disposition in contravention of this Section 6 shall be null and void ab initio.

7.            Compliance with Laws and Regulations.

(a)            The Company will not be obligated to issue or deliver shares of Common Stock pursuant to the Plan unless the issuance and delivery of such shares complies with applicable law, including, without limitation, the Securities Act of 1933, as amended, the Securities Act of 1934, as amended, and the requirements of any stock exchange or market upon which the Common Stock may then be listed, and shall be further subject to the approval of counsel for the Company with respect to such compliance.

(b)            In connection with the exercise of this Option, Optionee will execute and deliver to the Company such representations in writing as may be requested by the Company that it may comply with the applicable requirements of federal and state securities laws.

8.            Notices.  All notices, requests, demands, waivers, consents, approvals or other communications pursuant to this Agreement shall be in writing and delivered to the Company at its principal executive offices, Attention: Secretary, or to Optionee at the residence address reflected in the records maintained by the Company.

9.            No Rights of Stockholder.  Neither Optionee nor any legal representative of Optionee shall be, or have any of the rights and privileges of, a stockholder of the Company with respect to any shares subject to the Option except to the extent that certificates for such shares shall have been issued upon the exercise of the Option as provided for herein.

10.            Construction.  The Compensation Committee shall have exclusive author-ity to interpret and construe the Plan and the Option, and its determinations with respect thereto shall be final and binding on the Company and Optionee.  In the event of any conflict between the Plan and this Agreement, the terms of the Plan shall control.

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11.            No Rights Conferred.  Nothing contained in this Agreement shall confer upon Optionee any right with respect to the continuation of his or her employment or other service with the Company or its subsidiaries or interfere in any way with the right of the Company and its subsidiaries at any time to terminate such employment or other service or to increase or decrease, or otherwise adjust, the other terms and conditions of Optionee's employment or other service.

12.            Withholding.  All amounts that, under federal, state or local law, are required to be withheld from the amount payable with respect to the Option shall be withheld by the Company.

13.            Entire Agreement; Amendment.  This Agreement and the Plan sets forth the entire understanding of the parties hereto with respect to the subject matter hereof.  This Agreement may not be amended or supplemented except by a written instrument duly executed by each of the parties hereto; provided, however that the Company's Board of Directors or Compensation Committee may amend the terms of this Agreement at any time without the written consent of Optionee provided that such amendment does not adversely affect the rights of Optionee.

14.            Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to its principles of conflict of laws.

 

 

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IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized officer, and Optionee has executed this Agreement, as of the day and year above written.

 

 

	
STRATA SKIN SCIENCES, INC.   

	
OPTIONEE:

	
 

	
 

	
 

	
 

	
By: ____________________________________

	
____________________________________

	
 

 

 

                                                                                               

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Exhibit A

NOTICE OF EXERCISE

TO:            STRATA Skin Sciences, Inc.

The undersigned hereby exercises his/her option to purchase _____ shares of Common Stock of STRATA Skin Sciences, Inc. (the "Company"), as provided in the Stock Option Agreement dated as of ________________  $____ per share, for an aggregate purchase price of $ _____________ (the "Purchase Price").

The undersigned is hereby paying the Purchase Price as follows (check one of the following):

____            (i) The undersigned has enclosed herewith payment by cash or check made payable to the order of the Company in the amount of the Purchase Price; or

____            (ii) The undersigned has received the prior approval of the Company that it will accept payment of the Purchase Price by the surrender to the Company of that number of fully paid and non-assessable shares of Common Stock owned by the undersigned Optionee which have an aggregate value equal to the Purchase Price and the undersigned has therefore enclosed herewith stock certificate number __ representing a total of ______ shares of Common Stock in order to surrender to the Company ____ shares of Common Stock in payment of the Purchase Price; or

____            (iii) The undersigned has received the prior approval of the Company that it will accept payment of the Purchase Price by means of a "net value" exercise and the undersigned hereby requests the Company to deliver to him/her ______ shares of Common Stock (the number of shares derived by a net value exercise) in full satisfaction of the exercise hereunder.

The undersigned hereby represents and warrants that it is his/her present intention to acquire and hold the aforesaid shares of Common Stock of the Company for his/her own account for investment, and not with a view to the distribution of any thereof, and agrees that he/she will make no sale, thereof, except in compliance with the applicable provisions of the Securities Act of 1933, as amended.

Signature:                          ________________________

Name (print)                          ________________________

Address:                          ________________________

________________________

Dated:                          ________________________

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