Document:

ex10-2.htm

Exhibit 10.2

 

 

SEPARATION AND RELEASE AGREEMENT

 

This SEPARATION AND RELEASE AGREEMENT (the “Agreement”) is made and entered into this 17th day of June, 2015 by and between Oscar Bronsther, M.D. (“Bronsther”) and MetaStat, Inc., a Nevada corporation (the “Company”).

 

WHEREAS, Bronsther has been employed by the Company as its Chief Executive Officer and Chief Medical Officer;

 

WHEREAS, Bronsther desires to resign of his own accord as Chief Executive Officer and Chief Medical Officer, and the Company desires to accept such resignation, effective as of the Separation Date (as defined below); and

 

WHEREAS, notwithstanding Bronsther’s resignation, the Company desires to benefit from Bronsther’s expertise by retaining Bronsther as a consultant, and Bronsther wishes to perform consulting services for the Company, as provided in separate written agreement in a form attached hereto as Exhibit A (the “Consulting Agreement”).

 

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

 

1. Resignation of Employment. Effective as of June 17, 2015 (the “Separation Date”), Bronsther will resign (i) as an employee of the Company, and (ii) from any other officer positions he may hold with the Company. If requested by the Company, Bronsther will execute any additional resignation letters, forms or other documents which acknowledge Bronsther’s resignation from such employment, offices, and positions. Bronsther will receive his regular salary (minus applicable federal, state and local payroll taxes, and other withholdings required by law or properly requested by Bronsther) for his work through the Separation Date on the Company’s next regular payday following the Separation Date. Except as expressly provided herein or required by applicable law, after the Separation Date, Bronsther will be entitled to no further employee benefits from the Company. Upon receipt of his final paycheck from the Company, Bronsther acknowledges and agrees that he will have been paid all compensation for labor or services rendered by him for the Company or on the Company’s behalf through the Separation Date and that no other payments remain due to him, except as may be expressly provided by the terms of this Agreement or the Consulting Agreement.

 

2. Stock Options.   Subject to the terms of the Company’s 2012 Amended and Restated Omnibus Securities and Incentive Plan (the “Plan”), Bronsther shall be issued promptly following the date hereof an aggregate of 400,000 stock options pursuant to the Plan, which options shall vest immediately. Any options issued hereunder will be governed by the Plan and the exercise price per share of such stock options shall be $0.55.  Notwithstanding the foregoing to the contrary, it is acknowledged and agreed that such options, if necessary, may be issued outside the Plan so long as the terms and provisions of the Plan as if such options were actually issued pursuant to the Plan.  In addition, Bronsther shall have the right to exercise any stock options held by him for a period of one hundred eighty (180) days following the expiration or termination of the Consulting Agreement.  Any stock options not exercised by such date shall expire and be deemed void and of no further force or effect.

 

3. Separation Benefits. In exchange for Bronsther’s execution of this Agreement, the Company will provide Bronsther with the following additional benefits (collectively the “Separation Benefits”):

 

(a) COBRA Benefits. If Bronsther timely elects to continue his health insurance benefits pursuant to COBRA after the Separation Date, the Company will reimburse him for his applicable COBRA premiums for the lesser of: (i) a period of twelve (12) months from the Separation Date, or (ii) until Bronsther becomes eligible for insurance benefits from another employer.

 

4. Consulting Relationship. As additional consideration for the parties’ entry into this Agreement, the Company will engage Bronsther to serve in a consulting role with the Company pursuant to the terms of the Consulting Agreement. If Bronsther signs and agrees to the terms of the Consulting Agreement, Bronsther will be eligible to receive certain consulting fees as well as an additional grant of stock options from the Company as provided therein.

	
 

	  	  

  

  

  

 

5. Release of Claims.

 

(a) In exchange for the Company’s providing Bronsther with the Separation Benefits described in Section 2 above, Bronsther releases and forever discharges the Company, as well as its parent companies, affiliates, subsidiaries, divisions, officers, directors, stockholders, employees, agents, representatives, attorneys, and their respective successors, assigns, heirs, executors and administrators (collectively, the “Company Parties”), from any and all claims, demands, and causes of action of every kind and nature, whether known or unknown, direct or indirect, accrued, contingent or potential, which Bronsther ever had or now has arising out of or related to his employment with the Company and the termination thereof (except where and to the extent that such a release is expressly prohibited or made void by law). The release includes, without limitation, Bronsther’s release of the Company Parties from any claims for lost wages or benefits, compensatory damages, punitive damages, attorneys’ fees and costs, equitable relief or any other form of damages or relief. In addition, this release is meant to release Company Parties from all common law claims, including claims in contract or tort, including, without limitation, claims for breach of contract, wrongful or constructive discharge, intentional or negligent infliction of emotional distress, misrepresentation, tortious interference with contract or prospective economic advantage, invasion of privacy, defamation, negligence or breach of any covenant of good faith and fair dealing. Bronsther also specifically and forever releases the Company Parties (except where and to the extent that such a release is expressly prohibited or made void by law) from any claims under federal, state or local law based on unlawful employment discrimination, harassment, or retaliation, including but not limited to, claims for violation of Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of 1967, the Americans with Disabilities Act, the Genetic Information and Discrimination Act, the Family and Medical Leave Act, and any state laws prohibiting discrimination, harassment and/or retaliation.

 

(b) Bronsther hereby acknowledges that this release applies both to known and unknown claims that may exist between Bronsther and the Company Parties. Bronsther expressly waives and relinquishes all rights and benefits which he may have under any state or federal statute or common law principle that would otherwise limit the effect of this Agreement to claims known or suspected prior to the date he executes this Agreement, and does so understanding and acknowledging the significance and consequences of such specific waiver. In addition, Bronsther hereby expressly understands and acknowledges that it is possible that unknown losses or claims exist or that present losses may have been underestimated in amount or severity, and he explicitly took that into account in giving this release.

 

(c) Unless prohibited by applicable law or regulation, Bronsther further agrees not to hereafter, directly or indirectly, sue, assist in or be a voluntary party to any litigation against the Company or any one or more of the Company Parties for any claims relating to events occurring prior to or simultaneously with the execution of this Agreement. Notwithstanding the foregoing, nothing in this Agreement prohibits Bronsther from filing a charge with, or participating in any investigation or proceeding conducted by, the U.S. Equal Employment Opportunity Commission or a comparable state or federal fair employment practices agency; provided, however, that this Agreement fully and finally resolves all monetary matters between Bronsther and the Company Parties, and by signing this Agreement, Bronsther acknowledges that he is waiving any right to monetary damages, attorneys’ fees and/or costs related to or arising from any such charge, complaint or lawsuit filed by Bronsther or on Bronsther’s behalf, individually or collectively.

 

(d) Bronsther agrees and acknowledges that he has no cause to believe that any violation of any local, state or federal law that has occurred with respect to his employment or separation of employment from the Company. Nothing in this Agreement extinguishes any claims Bronsther may have against the Company for breach of this Agreement or any claims arising from events that occur following the effective date of this Agreement.

 

(e) The parties hereby acknowledge and agree, notwithstanding anything contained herein to the contrary, that the provisions of this Section 5 shall not apply to any claims that may arise pursuant to the Consulting Agreement.

 

6. No Admissions. Bronsther understands, acknowledges and agrees that the release set out above in Section 4 is a final compromise of potential claims, and is not an admission by any of the Company Parties that any such claims exist or that the Company Parties are liable for any such claims.

	
 

	
 

	  

  

  

  

 

7. Confidentiality. Bronsther hereby agrees and acknowledges that his post-employment obligations to the Company pursuant to the Employment Agreement and the Proprietary Information and Inventions Agreement (the “Confidentiality Agreements”) that he signed in connection with his employment with the Company remain in full force and effect, notwithstanding the termination of his employment. Bronsther agrees to carefully guard the Company’s confidential and proprietary information that he learned of or had access to during his employment with the Company and that he learns of or has access to during the term of the Consulting Agreement, and Bronsther will not, during the term of the Consulting Agreement or at any time thereafter, disclose to anyone, directly or indirectly, or use to his benefit or the benefit of others, any of the Company’s confidential and proprietary information without the Company’s written consent.

 

8. Company Property. Bronsther agrees that he will return to the Company all property of the Company in his possession including, without limitation, any Company-owned equipment, and all originals and any copies of all disks, tapes, files, correspondence, notes, software, programs, back up discs or other media, and other documents pertaining to the Company’s proprietary products, customers and business, in any format, whether paper or electronic.

 

9. No Disparagement. Bronsther agrees that he will not denigrate, defame, disparage or cast aspersions upon the Company, its management, products, services, business and manner of doing business. Upon inquiry from any third party regarding any and all services Bronsther has rendered to the Company, including but not limited to services rendered pursuant to the Consulting Agreement, the Company, its officers and its directors will release only Bronsther’s dates of employment and positions held, unless the Company receives prior written authorization from Bronsther to provide additional information.

 

10. Non-Competition and Non-solicitation. Notwithstanding the termination of his employment, Bronsther hereby agrees and acknowledges that his post-employment obligations to the Company pursuant to Sections 2.3 (Covenant not to Compete) and 2.4 (Non-solicitation) of the Employment Agreement that he signed in connection with his employment with the Company shall remain in full force and effect through the date that is six months following the expiration or termination of the Consulting Agreement.

 

11. Relief and Enforcement. Bronsther understands and agrees that if he violates the terms of Sections 5, 7, 8, 9 and/or 10 of this Agreement, Bronsther will cause injury to the Company (and/or one or more of the Company Parties) that will be difficult to quantify or repair, so that the Company (and/or the Company Parties) will have no adequate remedy at law. Accordingly, Bronsther agree that if he violates Sections 5, 7, 8, 9 and/or 10 of this Agreement, the Company (or one or more of the Company Parties) will be entitled to obtain temporary, preliminary, and permanent injunctive relief from a court of competent jurisdiction, restraining Bronsther from any further violation of this Agreement. Bronsther further understands and agrees that, upon any breach of this Agreement or the Consulting Agreement by him, he will forfeit any right to receive further payments or benefits as described in Section 2 above, and he will repay to the Company any and all Separation Benefits that have been paid to him pursuant to Section 2 above. The above-listed remedies are in addition to any other remedies the Company (or the Company Parties) may have at law or in equity.

 

12. Lock-Up. In connection with any public offering that may be undertaken by the Company, Bronsther hereby agrees to enter into a standard “lock-up” agreement with the underwriters of the offering with respect to securities of the Company owned by Bronsther in the form requested by such underwriters and signed by other insiders of the Company.

 

13. Assignment. This Agreement may not be assigned by Bronsther without the prior written consent of the Company. The Company will have the right to assign this Agreement to its successors and assigns, and all covenants and agreements hereunder will inure to the benefit of and be enforceable by said successors or assigns.

 

14. No Modifications; Entire Agreement. This Agreement cannot be changed or terminated orally, and no modification or waiver of any of the provisions of this Agreement is effective unless in writing and signed by all of the parties hereto. This Agreement, along with the surviving terms of the Confidentiality Agreements, the Consulting Agreement, and any stock option agreement(s) between Bronsther and the Company, set forth the entire and fully integrated understanding between the parties, and there are no representations, warranties, covenants or understandings, oral or otherwise, that are not expressly set out herein.

 

15. Governing Law. The parties agree that this Agreement is to be governed by and construed in accordance with the laws of the State of New York.

[signature page follows]

	
 

	
 

	  

  

  

  

 

IN WITNESS WHEREOF, each of the parties hereto, acknowledging having read and understood the contents and effect of this Agreement, has executed this Agreement freely and intending to be bound.

 

	 	METASTAT, INC.
	 	 
	 	By:	/s/ Douglas Hamilton
	 	Name:	Douglas Hamilton
	 	Title: 	President and CEO

 

	 	 
	 	OSCAR BRONSTHER, M.D.
	 	 
	 	/s/ Oscar Bronsther	6/17/15
	 	Signature	Dateex10-3.htm

Exhibit 10.3

CONSULTING AGREEMENT

 

 

This Consulting Agreement (the “Agreement”) is made as of the 17th day of June 2015, by and between MetaStat, Inc., a Nevada corporation with its principal place of business located at 27 Drydock Ave, Boston, MA 02210 (the “Company”), and Oscar Bronsther, with his principal place of business located at 11500 Dahlia Terrace, Potomac, Maryland 20854 (the “Consultant”).

 

RECITALS

 

WHEREAS, the Consultant has agreed to make his services available to the Company;

 

WHEREAS, the Consultant possesses expertise in areas of interest to the Company; and

 

WHEREAS, the Company desires that it be able to utilize the services of the Consultant and the Consultant is willing to perform such services on the terms set forth herein.

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein and other good and valuable consideration, the parties agree as follows:

 

1.           Term; Termination. This Agreement shall be in effect for a period of twelve (12) months from the date hereof unless terminated by either party upon thirty (30) days prior written notice delivered to the other party (the “Term”); provided, however, the parties agree that cash payments made pursuant to Section 3(a) shall be paid monthly over a period of eighteen months following the date hereof. In addition, in the event of any termination of this Agreement by the Company for any reason, Consultant shall be entitled to all compensation under Section 3 hereof as if he remained a Consultant for the remainder of the Term.  For the avoidance of doubt, upon any such termination, Consultant shall be entitled to the monthly cash payments made pursuant to Section 3(a) hereof for the eighteen month period following the date hereof.

 

2.           Services. The Consultant shall serve as the Chair, Scientific Advisory Board, and shall perform such services relating to management of the Scientific Advisory Board, gaining access to tumor cohorts for use in analytical and validation studies, supporting scientific and clinical due diligence, participating in fundraising efforts, including introduction of retail investors, and any medical or scientific affairs support commensurate with such role as the Board of Directors or Chief Executive Officer of the Company may reasonably request (the “Services”).

 

3.           Payment for Services; Vacation. In consideration of the Consultant’s performance of the Services, the Company hereby agrees to pay Consultant as follows:

 

(a)  $14,444.44 per month payable in cash;

 

(b)  subject to the terms of the Company’s 2012 Amended and Restated Omnibus Securities and Incentive Plan (the “Plan”), Consultant shall be issued promptly following the date hereof an aggregate of 150,000 stock options pursuant to the Plan, which options shall vest as follows: (i) 50,000 shares underlying such options shall vest upon the closing of $1 million investment by retail investors, introduced by the Consultant, in the next round of financing; (ii) 50,000 shares underlying such options shall vest upon securing delivery of tumor cohort(s) for the purposes of conducting clinical analytical or validation studies; and (iii) 50,000 shares underlying such options shall vest upon expansion of the Scientific Advisory Board to include new Key Opinion Leaders subject to approval by the CEO. Any options issued hereunder will be governed by the Plan and the exercise price per share of such stock options shall be $0.55.  Notwithstanding the foregoing to the contrary, it is acknowledged and agreed that such options, if necessary, may be issued outside the Plan so long as the terms and provisions of the Plan as if such options were actually issued pursuant to the Plan. In addition, Consultant shall have the right to exercise any of such stock options for a period of one hundred eighty (180) days following the expiration or termination of this Agreement.  Any stock options not exercised by such date shall expire and be deemed void and of no further force or effect; and

 

(c)  reimbursement of all reasonable and necessary documented travel expenses incurred or paid by the Consultant in connection with, or related to, the performance of the Services in accordance with the policies and procedures, and subject to limitations, adopted by the Company from time to time (the “Expenses”). Notwithstanding the foregoing, the Consultant shall not incur total Expenses in excess of five hundred dollars ($500.00) per month without the prior written approval of the Company.

 

(d)  Consultant shall be entitled to 10-days of vacation time in August 2015 (which shall not in any way affect Consultant’s rights to his monthly payments under Section 3(a) hereof).

 

  

  

  

 

4.           Consultant’s Representation. Consultant hereby represents that there are no binding agreements to which the Consultant is a party or by which the Consultant is bound, forbidding or restricting the performance of the Services hereunder.  In addition, the Consultant consents to the Consultant being named as a consultant in various reports, brochures or other documents produced by or on behalf of the Company, including documents filed with the Securities and Exchange Commission and/or the Food and Drug Administration.

 

5.           Property Ownership. In consideration for the compensation paid to Consultant pursuant to Section 3 above, the Consultant hereby assigns to the Company all right, title and interest in all Work Product which arises from the Services hereunder. “Work Product” shall mean all intellectual property rights, including all trade secrets, U.S. and international copyrights, patentable inventions, discoveries and improvements, and other intellectual property rights, in any documentation, technology or other work product that (a) relates to the Company’s business, and (b) the Consultant conceives or develops during the Term. Work Product shall include all materials, documents, information, and suggestions of every kind and description supplied to Company by Consultant or prepared or developed by Consultant pursuant to this Agreement using Proprietary Information, as that term is defined in Section 6 below shall be the sole and exclusive property of the Company, and Company shall have the right to make whatever use it deems desirable of any such materials, documents, and information.

 

6.           Proprietary Information. The Consultant acknowledges that the Consultant’s relationship with the Company is one of high trust and confidence and that in the course of his service to the Company and to its clients, the Consultant shall have access to and contact with Proprietary Information developed by the Company.

 

(a) Consultant shall not, during the Term or at any time thereafter, disclose to others, or use for its benefit or the benefit of others, any Proprietary Information.

 

(b) For purposes of this Agreement, Proprietary Information shall mean, by way of illustration and not limitation, all information (whether or not patentable and whether or not copyrightable) owned, possessed or used by the Company or by its clients, including, without limitation, any invention, formula, vendor information, customer information, apparatus, device design, equipment, trade secret, process, research, report, technical data, know-how, clinical trial design, computer program, software, software documentation, hardware design, technology, marketing or clinical or business plan, forecast, unpublished financial statement, budget, license, price, cost and employee list that is communicated to, learned of, developed or otherwise acquired by the Consultant in the course of his service as a consultant to the Company.

 

(c) The obligations under this Section 6 shall not apply to any information that (i) is or becomes known to the Consultant and/or the general public under circumstances involving no breach by the Consultant or others of the terms of this Section 6, (ii) is generally disclosed to third parties by the Company without restriction on such third parties, (iii) is approved for release by written authorization of Company, or (iv) is legally required to be disclosed provided the Consultant provides the Company with not less than thirty (30) days’ prior written notice of such requirement and consults with the Company on the advisability of taking legally available steps to resist or narrow such request and reasonably cooperate with the Company to do the same.

 

(d) Upon termination of this Agreement or at any other time upon request by the Company, the Consultant shall promptly deliver to the Company all Company records, files, memoranda, notes, designs, data, reports, price lists, customer lists, drawings, plans, computer programs, software, software documentation, sketches, laboratory and research notebooks and other documents (and all copies or reproductions of such materials) relating to the business of the Company.

 

(e) Consultant shall not disclose to the Company any trade secrets or confidential or proprietary information of any other party.

 

7.           Independent Contractor. The Consultant shall be deemed at all times to be an independent contractor and shall be wholly responsible for the manner in which he performs the services required of him by the terms of this Agreement.  Consultant shall, at Company’s expense, be available for in-person meetings at the Company’s offices as reasonably requested by Company; otherwise, Consultant shall be solely responsible for providing all facilities, computers and other equipment necessary to provide the services hereunder.   Consultant shall be liable for any grossly negligent or intentionally wrongful act or omission of Consultant, and nothing contained in this Agreement shall be construed as creating the relationship of employer and employee between the Consultant and the Company.

 

  

  

  

 

8.           Indemnification and Insurance.  Except to the extent resulting from the grossly negligent or intentionally wrongful acts or omissions of Consultant, Company shall indemnify and hold Consultant harmless from any and all claims, liabilities, damages, losses, costs and expenses of whatever nature, including legal fees and expenses, incurred or arising from or I in connection with the provision of the services.   Company covenants and agrees that at all times during which this Agreement is in effect it shall have and maintain Directors and Officers Liability and Errors and Omissions insurance policies, or equivalents thereof, each in a form and scope reasonably acceptable to, and having limits reasonably acceptable to, Consultant, which policies shall cover, among other risks, the acts and omissions of Consultant.

 

 9.           Lock-Up. In connection with any public offering that may be undertaken by the Company, Consultant hereby agrees to enter into a standard “lock-up” agreement with the underwriters of the offering with respect to securities of the Company owned by Consultant in the form requested by such underwriters and signed by other insiders of the Company.

 

10.           Assignment.  It is understood and agreed that the services to be performed by the Consultant under this Agreement are personal in character and neither this Agreement nor any duties or obligations hereunder shall be assigned or delegated by the Consultant without prior approval by the Company.

 

11.           Notices. All notices required or permitted under this Agreement shall be in writing and shall be deemed effective upon personal delivery or upon deposit in the United States Post Office, by registered or certified mail, postage prepaid, addressed to the other party at the address shown above, or at such other address or addresses as either party shall designate to the other.

 

12.           Severability. If any term or provision of this Agreement shall be found to be illegal or unenforceable by a court of competent jurisdiction, the remaining provisions will nevertheless continue in full force and effect without being impaired or invalidated in any way.

 

13.           Governing Law. This Agreement shall be construed, interpreted and enforced in accordance with the laws of the State of New York without giving effect to any conflicts of law principles that would result in the application of the substantive laws of another jurisdiction.

 

14.           Entire Agreement: Modifications. This Agreement constitutes the entire agreement between the parties regarding the subject matters set forth herein and supersedes any and all prior and contemporaneous agreements, representations, and understandings of the parties, whether written or oral, regarding such matters.  This Agreement may not be changed, modified, amended or supplemented except by written instrument signed by both parties.

 

[Remainder of this page intentionally left blank]

 

  

  

  

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

	
METASTAT, INC.

	
Consultant

	
 

By: /s/ Douglas Hamilton

Name: Douglas Hamilton

Title: CEO

	
 

By: ­­­/s/ Oscar Bronsther

Name: Oscar Bronsther

Title: Consultant

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00246-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00246-of-00352.parquet"}]]