Document:

EXHIBIT 10.3

 

 

CONSULTING AGREEMENT

CONSULTING AGREEMENT effective as of November 4, 2015 between MELA Sciences, Inc. (the "Company"), a Delaware corporation, and Samuel E. Navarro (the "Consultant").

Recitals:

The Consultant is a member of the Company's Board of Directors and serves on the Transaction Committee of the Board.  He has longstanding experience and extensive contacts in the medical device industry.

Following the Company's acquisition of the XTRAC excimer laser and VTRAC excimer lamp businesses in June 2015, the Consultant has devoted a considerable amount of time and effort to provide strategic support and guidance to the Company and its senior management in connection with the integration and operation of the Company's expanded business.

The parties wish to enter into this Agreement to set forth the basis on which the Consultant will continue to provide such support to the Company and its senior management as a consultant to the Company and with respect to certain other matters in connection with such engagement, all as set forth more fully in this Agreement.

NOW, THEREFORE, in consideration of the premises and covenants set forth herein, and intending to be legally bound hereby, the parties to this Agreement hereby agree as follows:

1.            Engagement.  The Company hereby engages the Consultant as a consultant to the Company, and the Consultant hereby accepts such engagement, on the terms and conditions set forth in this Agreement.

2.            Duties.  As a consultant to the Company, the Consultant agrees to perform the services described on Exhibit A.  The Consultant shall report to the Board of Directors of the Company or its designee.

3.            Term.  The term of the Consultant's engagement hereunder shall commence on the effective date of this Agreement and shall continue in effect through June 30, 2016.  The parties may renew this Agreement thereafter upon their mutual written agreement.  This Agreement shall terminate immediately if the Consultant ceases to serve as a member of the Company's Board of Directors.

4.            Compensation.

(a)            Consulting Fees.  In consideration of the services performed and to be performed hereunder, the Consultant shall be paid the consulting fees set forth on Exhibit A.

 

(b)            Reimbursement of Expenses.  The Consultant shall be reimbursed for out-of-pocket expenses reasonably incurred by the Consultant in performing the consulting services contemplated by this Agreement, provided that such expenses are pre-approved by the Company, documented and submitted in accordance with the reimbursement policies of the Company as in effect from time to time.

(c)            Entire Compensation.  The compensation provided for in this Section 4 shall constitute full payment for the services to be rendered by the Consultant to the Company as a consultant pursuant to this Agreement.

5.            Non-Disclosure.

(a)            Confidentiality and Non-Use Obligations.  The Consultant acknowledges that, in the course of performing services for the Company, the Consultant may obtain knowledge of the Company's inventions, discoveries, know-how, trade secrets, business plans, products, processes, software, formulas, methods, models, prototypes, materials, disclosures, contractor and supplier lists, names and positions of employees and/or other proprietary and/or confidential information (collectively, the "Confidential Information").  The Consultant agrees to keep the Confidential Information secret and confidential and not to publish, disclose or divulge any confidential information to any other person, or use any confidential information for the Consultant's own benefit or to the detriment of the Company, or for any purpose other than in connection with the performance of consulting services to the Company, without the prior written consent of the Company, whether or not such Confidential Information was discovered or developed by the Consultant.  The Consultant also agrees not to divulge, publish or use any proprietary and/or confidential information of others that the Company is obligated to maintain in confidence.

(b)            Exclusions.  The restrictions on use and disclosure of the Confidential Information set forth in this Agreement shall not apply to any portion of the Confidential Information that:  (i) is at the time of disclosure or thereafter becomes generally available to the public other than as a result of disclosure by the Consultant; (ii) becomes available to the Consultant on a non-confidential basis from a source other than the Company that has represented to the Consultant (and regarding which the Consultant reasonably believes) that such source is entitled to disclose it; (iii) was known to or in the possession of the Consultant immediately prior to the time of disclosure as evidenced by the Consultant's records and files at such time; or (iv) is independently developed or acquired by the Consultant without use of or reference to the Company's Information, as evidenced by documentation or other evidence in the Consultant's possession.

6.            Inventions and Discoveries.

(a)            Disclosure.  The Consultant shall promptly and fully disclose to the Company, with all necessary detail, all developments, know-how, discoveries, inventions, improvements, concepts, ideas, formulae, processes and methods (whether copyrightable, patentable or otherwise) made, received, conceived, acquired or written by the Consultant (whether or not at the request or upon the suggestion of the Company), solely or jointly with others, during the course of performing services for the Company as a consultant or that are

 

2

otherwise made by the Consultant through the use of the Company's time, facilities or materials (the foregoing being hereinafter referred to collectively as the "Inventions").

(b)            Assignment and Transfer.  The Consultant hereby assigns and transfers to the Company all of the Consultant's rights, titles and interests in and to each of the Inventions, and the Consultant further agrees to deliver to the Company any and all drawings, notes, specifications and data relating to each of the Inventions, and to sign, acknowledge and deliver all such further papers, including applications for and assignments of copyrights and patents, and all renewals thereof, as may be necessary to obtain copyrights and patents for any and all of the Inventions in any and all countries and to vest title thereto in the Company and its successors and assigns and to otherwise protect the Company's interests therein.

(c)            Company Documentation.  The Consultant shall hold for the benefit of the Company all documentation, programs, data, records, research materials, drawings, manuals, disks, reports, sketches, blueprints, letters, notes, notebooks and all other writings, electronic data, graphics and tangible information and materials of a secret, confidential or proprietary information nature relating to the Company or the Company's business that are, at any time, in the possession or under the control of the Consultant.

7.            Injunctive Relief.  The Consultant acknowledges that the Consultant's compliance with the agreements in Sections 5 and 6 hereof is necessary to protect the good will and other proprietary interests of the Company and that the Consultant has been and will be entrusted with highly confidential information regarding the Company and its technology and is conversant with the Company's affairs, its trade secrets and other proprietary information.  The Consultant acknowledges that a breach of the Consultant's agreements in Sections 5 and 6 hereof will result in irreparable and continuing damage to the Company for which there will be no adequate remedy at law; and the Consultant agrees that, in the event of any breach of the aforesaid agreements, the Company and its successors and assigns shall be entitled to injunctive relief and to such other and further relief as may be proper.

8.            Certain Representations, Warranties and Agreements of the Consultant.  The Consultant hereby represents and warrants to the Company that: (a) the Consultant is not a party to or otherwise subject to any agreements or restrictions that would prohibit the Consultant from entering into this Agreement and carrying out the transactions contemplated by this Agreement in accordance with the terms hereof, and this Agreement and the transactions contemplated hereby will not infringe or conflict with, and are not inconsistent with, the rights of any other person or entity; and (b) the Consultant is not: (i) an individual who has been debarred by the U.S. Food and Drug Administration (the "FDA") pursuant to 21 U.S.C. 335a (a) or (b) (a "Debarred Individual") from providing services in any capacity to a person that has an approved or pending drug product application, or (ii) an employer, employee or partner of a Debarred Individual.

9.            Survival of Representations, Warranties and Covenants.  The provisions of this Agreement that by their terms are intended to endure beyond the term of this Agreement shall survive the termination of this Agreement.

 

3

10.            Supersedes Other Agreements.  This Agreement supersedes and is in lieu of any and all other consulting, employment and compensation arrangements between the Consultant and the Company, but shall not supersede any existing confidentiality, nondisclosure or invention assignment agreements between the Consultant and the Company.

11.            Independent Contractor.  The parties intend that the Consultant shall render services hereunder as an independent contractor, and nothing herein shall be construed to be inconsistent with this relationship or status.  The Consultant shall not be entitled to any benefits paid by the Company to its employees.  The Consultant shall be solely responsible for any tax consequences applicable to the Consultant by reason of this Agreement and the relationship established hereunder, and the Company shall not be responsible for the payment of any federal, state or local taxes or contributions imposed under any employment insurance, social security, income tax or other tax law or regulation with respect to the Consultant's performance of consulting services hereunder.

12.            Amendments.  Any amendment to this Agreement shall be made in writing and signed by the parties hereto.

13.            Enforceability.  If any provision of this Agreement shall be invalid or unenforceable, in whole or in part, then such provision shall be deemed to be modified or restricted to the extent and in the manner necessary to render the same valid and enforceable, or shall be deemed excised from this Agreement, as the case may require, and this Agreement shall be construed and enforced to the maximum extent permitted by law as if such provision had been originally incorporated herein as so modified or restricted or as if such provision had not been originally incorporated herein, as the case may be.

14.            Construction.  This Agreement shall be construed and interpreted in accordance with the internal laws of the State of Delaware.

15.            Assignment.  The rights and obligations of the Company under this Agreement shall inure to the benefit of, and shall be binding upon, the successors and assigns of the Company.  This Agreement and the obligations created hereunder may not be assigned by the Consultant.

16.            Notices.  All notices, requests, consents and other communications hereunder to any party shall be deemed to be sufficient if contained in a written instrument delivered in person or duly sent by certified mail, postage prepaid; by an overnight delivery service, charges prepaid; or by confirmed telecopy; addressed to such party at the address set forth below or such other address as may hereafter be designated in writing by the addressee to the addressor:

If to the Company:

MELA Sciences, Inc.

100 Lakeside Drive, Suite 100

Horsham, PA  19044

Attention: Chair, Nominating and Governance Committee

 

4

If to the Consultant, at the address set forth on the signature page.

Any party may from time to time change such party's address for the purpose of notices to that party by a similar notice specifying a new address, but no such change shall be deemed to have been given until it is actually received by the party sought to be charged with its contents.

17.            Waivers.  No claim or right arising out of a breach or default under this Agreement shall be discharged in whole or in part by a waiver of that claim or right unless the waiver is supported by consideration and is in writing and executed by the aggrieved party hereto or such party's duly authorized agent.  A waiver by any party hereto of a breach or default by the other party hereto of any provision of this Agreement shall not be deemed a waiver of future compliance therewith, and such provisions shall remain in full force and effect.

18.            Counterparts; Facsimile or Electronic Transmission.  This Agreement may be exercised by the parties in separate counterparts, each of which shall be an original and both of which, taken together, shall constitute one and the same agreement.  A facsimile or electronic transmission of a scanned copy of a signed counterpart signature page hereto shall be deemed to be an originally executed copy for purposes of this Agreement.

(Signature page follows.)

 

5

IN WITNESS WHEREOF, this Agreement has been executed by the parties as of the date first above written.

MELA SCIENCES, INC.

By:/s/ David K. Stone                                    

David K. Stone, Chair

                                                                                                                                                                                    Nominating and Governance Committee

/s/ Samuel E. Navarro                                    

Samuel E. Navarro

Consultant's Address: 

                                                                                    

                                                                                    

 

6

EXHIBIT A

Services:

The Consultant shall provide the following consulting services to the Company: strategic support, advice and guidance to the Company and its management team in connection with the integration and operation of the Company's expanded business, investor relations and internal and external business development activities.

The Consultant shall make himself available to consult with the Company's President and Chief Executive Officer, and other members of its management team, on request at mutually convenient times, throughout the term of this Agreement.

The Consultant shall report to the Board of Directors on at least a quarterly basis, and otherwise when requested by the Board, regarding the time devoted by the Consultant to the performance of the Services and a description of the specific Services performed during the period since his prior report.

Consulting Fees:

The Consultant shall be paid (i) an upfront payment of $40,000 within five business days after the date of this Agreement for his advice and services prior to the date of this Agreement and (ii) a retainer in the amount of $10,000 per month, commencing November 10, 2015 and continuing on the tenth day of each month thereafter through June 10, 2016.EXHIBIT 10.4

 

 

TRANSITION AGREEMENT AND RELEASE

* * * * *

This Transition Agreement and Release ("Agreement") is made as of the 10th day of November, 2015, by and between MELA Sciences, Inc. (hereinafter "COMPANY") and Robert W. Cook (hereinafter "EMPLOYEE").

WHEREAS, EMPLOYEE has been employed by the COMPANY in the position of Chief Financial Officer pursuant to an Employment Agreement dated April 4, 2014 (the "Employment Agreement");

WHEREAS, EMPLOYEE also has served the COMPANY in the roles of Treasurer and Corporate Secretary;

WHEREAS, effective November 9, 2015, EMPLOYEE resigned from the positions of Chief Financial Officer, Treasurer and Corporate Secretary;

WHEREAS, EMPLOYEE will remain employed by the COMPANY in the position of Senior Financial Advisor and will provide transition services to the COMPANY in that capacity until January 15, 2016;

WHEREAS, EMPLOYEE's employment with the COMPANY shall end as of January 15, 2016 (the "Separation Date");

WHEREAS, EMPLOYEE and the COMPANY wish to agree on matters relating to EMPLOYEE's continued employment with the COMPANY through the Separation Date, and on matters relating to the end of EMPLOYEE's employment with the COMPANY, on the terms set forth herein; and

NOW THEREFORE, for good and valuable consideration, receipt of which is hereby acknowledged, and fully intending to be legally bound hereby, EMPLOYEE and the COMPANY agree as follows:

Section 1:                          Payments and Benefits to EMPLOYEE

  (a)            Severance Payments

In consideration for the execution of this Agreement and the Agreement referenced in Section 3(a) below, the COMPANY shall pay EMPLOYEE an amount equal to his current Base Salary from the Separation Date through October 6, 2016, less applicable tax deductions and withholdings ("Severance Pay").  The Severance Pay shall be paid in equal installments in accordance with the COMPANY's prevailing payroll practices, beginning on the first regular payroll date following the Effective Date of the Agreement referenced in Section 3(a) below.

  (b)            Transition Payment

In consideration for the execution of this Agreement, the COMPANY shall provide to EMPLOYEE a one-time lump sum transition payment in the amount of Twenty Thousand Eight Hundred Thirty-Three Dollars and Thirty-Three Cents ($20,833.33), equal to one month of EMPLOYEE's current base salary, less applicable tax deductions and withholdings.  This one-time lump sum payment shall be made on the first regular monthly payroll date in 2016.

  (c)            Consideration and Value

The parties acknowledge that the payments set forth above in Section 1(a) and (b) represent amounts and terms in addition to anything of value to which EMPLOYEE is otherwise entitled and represents good, valuable, and sufficient consideration for the mutual promises and duties set forth in this Agreement.  

Section 2:                          Complete Release by EMPLOYEE

  (a)            In General

For and in consideration of the payments and promises contemplated by Section 1 of this Agreement and for other good and valuable consideration as more fully described herein, the receipt and adequacy of which is hereby acknowledged, EMPLOYEE hereby irrevocably and unconditionally releases, waives, and forever discharges all the Claims described in Section 2(b) that EMPLOYEE may now have against the Released Parties listed in Section 2(d) up to the date of this Agreement.  However, EMPLOYEE does not release the right to enforce this Agreement or any rights EMPLOYEE may have for the continuation of health insurance coverage under the Consolidated Omnibus Budget Reconciliation Act ("COBRA"), nor does EMPLOYEE release claims under federal, state or local laws providing workers' compensation benefits or accrued benefits under an employee benefit plan of the COMPANY.  EMPLOYEE acknowledges that EMPLOYEE will not be entitled to receive the monies payable under Section 1(a) and (b) unless EMPLOYEE signs and does not revoke this Agreement.

  (b)            Claims Released

Subject only to the exceptions noted in Section 2(a) above, EMPLOYEE hereby releases all known and unknown claims, promises, causes of action, or similar rights of any type that EMPLOYEE may have ("Claims") with respect to any Released Party listed in Section 2(d).  These include, but are not limited to, any and all Claims that in any way relate to:  (i) EMPLOYEE'S employment with COMPANY, or EMPLOYEE's separation from that employment, such as Claims for compensation, bonuses, commissions, incentive payments, lost wages, or unused accrued vacation or sick pay; (ii) any Claims or rights EMPLOYEE may have to severance or similar benefits; and/or (iii) any Claims to attorneys' fees, costs, or other indemnities.  EMPLOYEE understands that the Claims EMPLOYEE is releasing might arise under many different laws, including but not limited to the following:

2

 

            Antidiscrimination statutes, such as Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1866 (42 U.S.C. 1981), and Executive Order 11246, which prohibit discrimination based on race, color, national origin, religion, or sex; the Americans with Disabilities Act and Sections 503 and 504 of the Rehabilitation Act of 1973, which prohibit discrimination against individuals with disabilities; the Age Discrimination in Employment Act (ADEA), 29 U.S.C. § 621 et seq., which prohibits discrimination based on age; the Genetic Information Non-Discrimination Act, which prohibits discrimination based on genetic information; the National Labor Relations Act; the Equal Pay Act; the Pennsylvania Human Relations Act; the Pennsylvania Equal Pay Law; and any and all other federal, state or local laws, rules, regulations, constitutions, ordinances or public policies, whether known or unknown, prohibiting employment discrimination.                                          

 

            Employment statutes, such as the Worker Adjustment Retraining and Notification (WARN) Act; the Employee Retirement Income Security Act of 1974 (ERISA) which, among other things, protects employee benefits; the Fair Labor Standards Act of 1938, which regulates wage and hour matters; the National Labor Relations Act, which protects forms of concerted activity; the Family and Medical Leave Act of 1993, which requires employers to provide leaves of absence under certain circumstances; the Pennsylvania Wage Payment and Collection Law; the Pennsylvania Minimum Wage Act of 1968, as amended; and any and all other federal, state or local laws, rules, regulations, constitutions, ordinances or public policies, whether known or unknown relating to employment laws, such as veterans' reemployment rights laws.

Other laws, such as federal, state, or local laws restricting an employer's right to terminate employees, or otherwise regulating employment; any federal, state, or local law enforcing express or implied employment contracts or requiring an employer to deal with employees fairly or in good faith; any other federal, state, or local laws providing recourse for alleged wrongful discharge, physical or personal injury, emotional distress, assault, battery, false imprisonment, fraud, negligent misrepresentation, defamation, and similar or related claims.

The laws referred to in this subsection include statutes, regulations, other administrative guidance, and common law doctrines.

  (c)            Unknown Claims

EMPLOYEE understands that EMPLOYEE is releasing Claims that EMPLOYEE may not know about, and that is EMPLOYEE's intent.  EMPLOYEE expressly waives all rights EMPLOYEE might have under any law that is intended to prevent unknown claims from being released.  EMPLOYEE understands the significance of doing so.

  (d)            Released Parties

The "Released Parties" or "Releasees" are the COMPANY, all related companies, partnerships, or joint ventures, parents and subsidiaries, and affiliates, and with respect to each of them, all of the COMPANY's or such related entities' predecessors and successors, and, with respect to each such entity, all of its past and present employees, officers, directors, stockholders, owners, representatives, assigns, attorneys, agents, insurers, employee

3

benefit plans or programs (and the trustees, administrators, fiduciaries, and insurers of such plans or programs), and any other persons acting by, through, under, or in concert with any of the persons or entities listed in this subsection.  

Section 3:                          EMPLOYEE's Promises and Representations

  (a)            Additional Release

For and in consideration of the payments contemplated by Section 1(a) of this Agreement and for other good and valuable consideration as more fully described herein, the receipt and adequacy of which is hereby acknowledged, EMPLOYEE hereby agrees to sign and not revoke a Severance Agreement and Release, in the form attached hereto as Exhibit "A," following the Separation Date.  EMPLOYEE acknowledges that if EMPLOYEE does not sign and not revoke such a Severance Agreement and Release following the Separation Date, EMPLOYEE shall not be entitled to receive the payments contemplated by Section 1(a) of this Agreement.

  (b)             Pursuit of Released Claims and Forfeiture in the Event of Breach

EMPLOYEE represents that EMPLOYEE will not in the future file any lawsuit or civil complaint against any of the Released Parties based on the claims released in this Agreement.  EMPLOYEE agrees that in the event EMPLOYEE files any civil complaint or commences any litigation of any kind that is covered by the Release in this Agreement, EMPLOYEE shall pay all of the attorneys' fees, expenses and costs incurred by Releasees in responding to such action including, but not limited to, any consequential damages that Releasees, or any of them, may suffer or incur.  The COMPANY shall also have the right of set-off against any obligation to EMPLOYEE under this Agreement including, but not limited to, the obligations set forth under Section 1(a) above.  As required by regulations issued by the Equal Employment Opportunity Commission, the provisions of this Section 3(b) do not apply with respect to a claim under the ADEA.  This Section is subject to the exceptions described in Section 3(c) below.

  (c)            Exceptions Related to Employee's Promises and Representations.

(i)            None of EMPLOYEE's obligations or restrictions in this Agreement apply to EMPLOYEE's communications with any governmental agency or commission, communications with EMPLOYEE's attorney, or EMPLOYEE's ability to file any claims with any governmental agency or commission including, but not limited to, the Equal Employment Opportunity Commission.  Nothing in this Agreement is intended to or shall be interpreted to:  (i) restrict or otherwise interfere with EMPLOYEE's obligation to testify truthfully in any forum; or (ii) restrict or otherwise interfere with EMPLOYEE's right and/or obligation to contact, cooperate with, file a claim with, or provide information to any government agency or commission.  Notwithstanding the foregoing, EMPLOYEE's release of Claims does prevent EMPLOYEE, to the maximum extent permitted by law, from obtaining in connection with any agency, commission or court proceeding, any monetary or other personal relief including, but not limited to, personal injunctive relief, for any of the Claims EMPLOYEE has released.

4

(ii)            Nothing set forth in this Agreement is intended to prohibit EMPLOYEE from reporting possible violations of federal, state or local law, ordinance or regulation to any governmental agency or entity, including, but not limited to, the Department of Justice, the U.S. Securities and Exchange Commission, the Congress and any agency Inspector General, or otherwise taking action or making disclosures that are protected under the whistleblower provisions of any federal, state or local law, ordinance or regulation, including, but not limited to, Rule 21F‐17 promulgated under the Securities Exchange Act of 1934, as amended.  EMPLOYEE is entitled to make reports and disclosures or otherwise take action under this Section 3(c)(ii) without the prior authorization from or subsequent notification to the COMPANY and may do so with the express understanding that the COMPANY shall not engage in or tolerate retaliation of any kind.  EMPLOYEE is entitled to make reports and disclosures or otherwise take action under this Section 3(c)(ii) without fear of retaliation of any kind by the COMPANY.

  (d)            Ownership of Claims

EMPLOYEE affirms that EMPLOYEE has not assigned or transferred any Claim against the COMPANY or any Released Party, nor has EMPLOYEE purported to do so.

  (e)            Nonadmission of Liability

EMPLOYEE agrees that the payments made and other consideration received pursuant to this Agreement are not to be construed as an admission of legal liability by COMPANY and that no person or entity shall utilize this Agreement or the consideration received pursuant to this Agreement as evidence of any admission of liability since COMPANY expressly denies liability.  EMPLOYEE agrees not to assert that this Agreement is an admission of guilt or wrongdoing and acknowledges that the Released Parties do not believe or admit that any of them has done anything wrong.

  (f)            Confidentiality

EMPLOYEE agrees not to divulge or reveal at any time for any reason to any third party any of the facts, details, allegations or circumstances surrounding this Agreement including, but not limited to, the amount of any consideration paid or payable hereunder, with the exception that EMPLOYEE may disclose the terms of or the existence of this Agreement to EMPLOYEE's spouse, attorney, financial advisor, or accountant, provided that the recipient of such information agrees to abide by the terms of confidentiality, non-disclosure, and non-disparagement in this Agreement or as is necessary to comply with the law or governmental regulations.  This Section is subject to the exceptions described in Section 3(c) above.

  (g)            Non-Disclosure of Confidential Information

EMPLOYEE acknowledges that during the course of employment with the COMPANY, EMPLOYEE had access to and received proprietary and confidential information relating to the COMPANY and its clients or its affiliates including, but not limited to, information relating to the operations, finances and business plans of the COMPANY, and that EMPLOYEE will continue to have access to such information during the Transition Period.

5

EMPLOYEE covenants that EMPLOYEE will continue to maintain the confidentiality of that information.

Section 4:                          Consideration for Release

EMPLOYEE acknowledges that EMPLOYEE has voluntarily signed this Agreement in exchange for the benefits that will be received because EMPLOYEE signed this Agreement, and that the benefits EMPLOYEE is receiving by signing this Agreement are in addition to anything of value to which EMPLOYEE is otherwise entitled.  EMPLOYEE acknowledges that EMPLOYEE is signing this Agreement freely and voluntarily and that no one pressured EMPLOYEE into signing this Agreement.  EMPLOYEE acknowledges that, before signing this Agreement:  (a) EMPLOYEE carefully read this Agreement; (b) EMPLOYEE fully understood it; (c) it is written in a manner that is understandable to EMPLOYEE; and (d) EMPLOYEE is entering into it voluntarily.

Section 5:                          Miscellaneous

  (a)            Modification of Employment Agreement

By this Agreement, EMPLOYEE and the COMPANY agree to modify the Employment Agreement by deleting Section 5(e) of the Employment Agreement in its entirety.

  (b)            Cash Bonus Relating to Fiscal Year 2015

EMPLOYEE acknowledges and agrees that EMPLOYEE shall not be eligible for a Cash Bonus (as set forth in Section 3(c) of the Employment Agreement) relating to fiscal year 2015.

  (c)            Entire Agreement

This Agreement, the Employment Agreement (as modified by Section 5(a) above), EMPLOYEE's Nondisclosure, Proprietary Information and Developments Agreement with the COMPANY, and EMPLOYEE's Indemnification Agreement with the COMPANY are the entire agreement between EMPLOYEE and the COMPANY.  This Agreement may not be modified or canceled in any manner except by a writing signed by both EMPLOYEE and an authorized COMPANY official.  EMPLOYEE acknowledges that the COMPANY has made no promises, assurances, or representations of any kind to EMPLOYEE other than those explicitly contained in this Agreement.  If any provision in this Agreement is found to be unenforceable, all other provisions will remain fully enforceable.

  (d)            Successors

This Agreement binds EMPLOYEE's heirs, administrators, representatives, executors, successors, and assigns, and will inure to the benefit of all Released Parties and their respective heirs, administrators, representatives, executors, successors, and assigns.

6

  (e)            Consideration Period

EMPLOYEE acknowledges that the COMPANY has advised EMPLOYEE to consult with an attorney prior to executing this Agreement.  EMPLOYEE also acknowledges that EMPLOYEE has been given a period of twenty-one (21) days within which to consider the Agreement.  For a period of seven (7) days following the execution of this Agreement, EMPLOYEE may revoke the Agreement.  For the revocation to be effective, EMPLOYEE must send a certified letter to Michael R. Stewart, MELA Sciences, Inc., 100 Lakeside Drive, Suite 100, Horsham, PA 19044.  The letter must be post‐marked within seven (7) days of EMPLOYEE's execution of this Agreement.  If the seventh day is a Sunday or federal holiday, then the letter must be post-marked on the following business day.  This Agreement shall not become effective or enforceable until both parties have signed the Agreement and the revocation period has expired, and the last date of the revocation period shall be the Effective Date of this Agreement (the "Effective Date").

  (f)            Severability

Should any clause of this Agreement be found to be in violation of law, or ineffective or barred for any reason whatsoever, the remainder of the Agreement shall be in full force and effect; provided, however, that if any release, waiver or agreement set forth in this Agreement is declared to be invalid, illegal or unenforceable in whole in or in part, COMPANY shall have the right to elect to consider its obligations under this Agreement to be nullified and in such case, any payments or benefits that had been or were to be afforded under this Agreement shall be returned to COMPANY with interest, provided further, however, that this right shall be inapplicable in any matter regarding the ADEA.

  (g)            Interpretation and Governing Law

This Agreement shall be construed as a whole according to its fair meaning.  It shall not be construed strictly for or against EMPLOYEE, the COMPANY, or any Released Party.  This Agreement shall be governed by the statutes and common law of the Commonwealth of Pennsylvania excluding its choice of law statutes and common law.

  (h)            Knowing and Voluntary

EMPLOYEE affirms that EMPLOYEE has carefully read the foregoing Agreement, that EMPLOYEE fully understands the meaning and intent of this document, that EMPLOYEE has signed this Agreement voluntarily and knowingly, and that EMPLOYEE intends to be bound by the promises contained in this Agreement for the aforesaid consideration.  EMPLOYEE acknowledges that EMPLOYEE is signing this Agreement freely and voluntarily and that no one pressured EMPLOYEE into signing this Agreement.

TAKE THIS TRANSITION AGREEMENT AND RELEASE HOME, READ IT, AND CAREFULLY CONSIDER ALL OF ITS PROVISIONS BEFORE SIGNING IT:  IT INCLUDES A RELEASE OF KNOWN AND UNKNOWN CLAIMS.

7

IN WITNESS WHEREOF and intending to be legally bound, EMPLOYEE and the COMPANY have executed this Agreement on the dates indicated below:

 

	 	 	 	 	 
	 	 	 	 	 
	 	  /s/ Robert W. Cook	 	 November 10, 2015	 
	
 

	
Robert W. Cook

	 	
Date

	 
	 	 	 	 	 
	 	
FOR MELA SCIENCES, INC.

	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 /s/ Michael R. Stewart	 	 November 10, 2015	 
	 By:	
Michael R. Stewart

	 	
Date

	 
	 Title:	
Title: Chief Executive Officer

	 	 	 

 

                                                                                                                                                                      

 

 

 

8

EXHIBIT A

SEVERANCE AGREEMENT AND RELEASE

* * * * *

This Severance Agreement and Release ("Agreement") is made this ____ day of _____________, 2016, by and between MELA Sciences, Inc. (hereinafter "COMPANY") and  Robert W. Cook (hereinafter "EMPLOYEE").

WHEREAS, on ______________, 2015, EMPLOYEE executed a Transition Agreement and Release (the "Transition Agreement"), pursuant to which EMPLOYEE agreed to execute this Agreement following the conclusion of EMPLOYEE's employment with the COMPANY;

WHEREAS, EMPLOYEE's employment with COMPANY ended as of January 15, 2016 (the "Separation Date");

WHEREAS, EMPLOYEE and COMPANY wish to agree on matters relating to the end of EMPLOYEE's employment with COMPANY on the terms set forth herein; and

NOW THEREFORE, for good and valuable consideration, receipt of which is hereby acknowledged, and fully intending to be legally bound hereby, EMPLOYEE and COMPANY agree as follows:

Section 1:                          Payments and Benefits to EMPLOYEE

	
(a)

	
Severance Payments

In consideration for the execution of this Agreement, the COMPANY shall pay EMPLOYEE an amount equal to his current Base Salary from the Separation Date through October 6, 2016, less applicable tax deductions and withholdings ("Severance Pay").  The Severance Pay shall be paid in equal installments in accordance with the COMPANY's prevailing payroll practices, beginning on the first regular payroll date following the Effective Date of this Agreement, as defined in Section 5(c) below.

	
(b)

	
COBRA Premium Payments

In consideration for the execution of this Agreement, the COMPANY shall pay the same portion of the monthly premium for EMPLOYEE's continued participation in the Company's group health coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act ("COBRA") through November 6, 2016, as if EMPLOYEE was still employed by the COMPANY, provided that:  (i) EMPLOYEE is eligible for and timely elects to receive COBRA coverage; and (ii) EMPLOYEE pays the remaining portion of the premium on a timely basis.  Thereafter, EMPLOYEE's continued participation in the COMPANY's group health coverage pursuant to COBRA shall be at EMPLOYEE's sole expense.

A-1

	
(c)

	
Other Earned Compensation

The parties agree that EMPLOYEE shall be reimbursed for all bona-fide business-related expenses incurred by EMPLOYEE prior to the date of EMPLOYEE's termination of employment with COMPANY, and for which EMPLOYEE has submitted appropriate and necessary receipts (or other documentation as may be required by COMPANY) on or before the date EMPLOYEE signs this Agreement, in accordance with the prevailing practices and policies of COMPANY, less any and all amounts owed to COMPANY for personal expenses.  The parties also agree that EMPLOYEE shall be paid for his accrued but unused vacation hours as of December 31, 2015, if any, less applicable tax deductions and withholdings.

EMPLOYEE acknowledges that, other than the foregoing payments described in this Section, EMPLOYEE has received payment in full of all of the compensation, wages, benefits and/or payments of any kind otherwise due EMPLOYEE from the COMPANY, including, but not limited to, compensation, bonuses, commissions, lost wages, expense reimbursements, payments to benefit plans or unused accrued vacation, personal, or severance pay.

	
(d)

	
Consideration and Value

The parties acknowledge that the payments and benefits set forth above in Section 1(a) and (b) represent amounts and terms in addition to anything of value to which EMPLOYEE is otherwise entitled and represents good, valuable, and sufficient consideration for the mutual promises and duties set forth in this Agreement.

Section 2:                          Complete Release by EMPLOYEE

	
(a)

	
In General

For and in consideration of the payments and promises contemplated by Section 1 of this Agreement and for other good and valuable consideration as more fully described herein, the receipt and adequacy of which is hereby acknowledged, EMPLOYEE hereby irrevocably and unconditionally releases, waives, and forever discharges all the Claims described in Section 2(b) that EMPLOYEE may now have against the Released Parties listed in Section 2(d) up to the date of this Agreement.  However, EMPLOYEE does not release the right to enforce this Agreement or any rights EMPLOYEE may have for the continuation of health insurance coverage under COBRA, nor does EMPLOYEE release claims under federal, state or local laws providing workers' compensation benefits or accrued benefits under an employee benefit plan of COMPANY.  EMPLOYEE acknowledges that EMPLOYEE will not be entitled to receive the monies and benefits payable under Section 1(a) and (b) unless EMPLOYEE signs and does not revoke this Agreement.

	
(b)

	
Claims Released

Subject only to the exceptions noted in Section 2(a) above, EMPLOYEE hereby releases all known and unknown claims, promises, causes of action, or similar rights of any type that EMPLOYEE may have ("Claims") with respect to any Released Party listed in

A-2

Section 2(d).  These include, but are not limited to, any and all Claims that in any way relate to:  (i) EMPLOYEE'S employment with COMPANY, or EMPLOYEE's separation from that employment, such as Claims for compensation, bonuses, commissions, incentive payments, lost wages, or unused accrued vacation or sick pay; (ii) any Claims or rights EMPLOYEE may have to severance or similar benefits; and/or (iii) any Claims to attorneys' fees, costs, or other indemnities.  EMPLOYEE understands that the Claims EMPLOYEE is releasing might arise under many different laws, including but not limited to the following:

Antidiscrimination statutes, such as Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1866 (42 U.S.C. 1981), and Executive Order 11246, which prohibit discrimination based on race, color, national origin, religion, or sex; the Americans with Disabilities Act and Sections 503 and 504 of the Rehabilitation Act of 1973, which prohibit discrimination against individuals with disabilities; the Age Discrimination in Employment Act (ADEA), 29 U.S.C. § 621 et seq., which prohibits discrimination based on age; the Genetic Information Non-Discrimination Act, which prohibits discrimination based on genetic information; the National Labor Relations Act; the Equal Pay Act; the Pennsylvania Human Relations Act; the Pennsylvania Equal Pay Law; and any and all other federal, state or local laws, rules, regulations, constitutions, ordinances or public policies, whether known or unknown, prohibiting employment discrimination.

Employment statutes, such as the Worker Adjustment Retraining and Notification (WARN) Act; the Employee Retirement Income Security Act of 1974 (ERISA) which, among other things, protects employee benefits; the Fair Labor Standards Act of 1938, which regulates wage and hour matters; the National Labor Relations Act, which protects forms of concerted activity; the Family and Medical Leave Act of 1993, which requires employers to provide leaves of absence under certain circumstances; the Pennsylvania Wage Payment and Collection Law; the Pennsylvania Minimum Wage Act of 1968, as amended; and any and all other federal, state or local laws, rules, regulations, constitutions, ordinances or public policies, whether known or unknown relating to employment laws, such as veterans' reemployment rights laws.

Other laws, such as federal, state, or local laws restricting an employer's right to terminate employees, or otherwise regulating employment; any federal, state, or local law enforcing express or implied employment contracts or requiring an employer to deal with employees fairly or in good faith; any other federal, state, or local laws providing recourse for alleged wrongful discharge, physical or personal injury, emotional distress, assault, battery, false imprisonment, fraud, negligent misrepresentation, defamation, and similar or related claims.

The laws referred to in this subsection include statutes, regulations, other administrative guidance, and common law doctrines.

	
(c)

	
Unknown Claims

EMPLOYEE understands that EMPLOYEE is releasing Claims that EMPLOYEE may not know about, and that is EMPLOYEE's intent.  EMPLOYEE expressly waives all rights EMPLOYEE might have under any law that is intended to prevent unknown claims from being released.  EMPLOYEE understands the significance of doing so.

A-3

	
(d)

	
Released Parties

The "Released Parties" or "Releasees" are the COMPANY, all related companies, partnerships, or joint ventures, parents and subsidiaries, and affiliates, and with respect to each of them, all of the COMPANY's or such related entities' predecessors and successors, and, with respect to each such entity, all of its past and present employees, officers, directors, stockholders, owners, representatives, assigns, attorneys, agents, insurers, employee benefit plans or programs (and the trustees, administrators, fiduciaries, and insurers of such plans or programs), and any other persons acting by, through, under, or in concert with any of the persons or entities listed in this subsection.

Section 3:                          EMPLOYEE's Promises and Representations

	
(a)

	
Pursuit of Released Claims and Forfeiture in the Event of Breach

EMPLOYEE represents that EMPLOYEE will not in the future file any lawsuit or civil complaint against any of the Released Parties based on the claims released in this Agreement.  EMPLOYEE further represents that EMPLOYEE has not filed any lawsuit or civil complaint against any of the Released Parties based on the claims released in the Transition Agreement.  EMPLOYEE agrees that in the event EMPLOYEE files any civil complaint or commences any litigation of any kind that is covered by the Release in this Agreement, EMPLOYEE shall pay all of the attorneys' fees, expenses and costs incurred by Releasees in responding to such action including, but not limited to, any consequential damages that Releasees, or any of them, may suffer or incur.  The COMPANY shall also have the right of set-off against any obligation to EMPLOYEE under this Agreement including, but not limited to, the obligations set forth under Section 1(a) and (b) above.  As required by regulations issued by the Equal Employment Opportunity Commission, the provisions of this Section 3(a) do not apply with respect to a claim under the ADEA.  This Section is subject to the exceptions described in Section 3(b) below.

	
(b)

	
Exceptions Related to Employee's Promises and Representations.

(i)            None of EMPLOYEE's obligations or restrictions in this Agreement apply to EMPLOYEE's communications with any governmental agency or commission, communications with EMPLOYEE's attorney, or EMPLOYEE's ability to file any claims with any governmental agency or commission including, but not limited to, the Equal Employment Opportunity Commission.  Nothing in this Agreement is intended to or shall be interpreted to:  (i) restrict or otherwise interfere with EMPLOYEE's obligation to testify truthfully in any forum; or (ii) restrict or otherwise interfere with EMPLOYEE's right and/or obligation to contact, cooperate with, file a claim with, or provide information to any government agency or commission.  Notwithstanding the foregoing, EMPLOYEE's release of Claims does prevent EMPLOYEE, to the maximum extent permitted by law, from obtaining in connection with any agency, commission or court proceeding, any monetary or other personal relief including, but not limited to, personal injunctive relief, for any of the Claims EMPLOYEE has released.

A-4

(ii)            Nothing set forth in this Agreement is intended to prohibit EMPLOYEE from reporting possible violations of federal, state or local law, ordinance or regulation to any governmental agency or entity, including, but not limited to, the Department of Justice, the U.S. Securities and Exchange Commission, the Congress and any agency Inspector General, or otherwise taking action or making disclosures that are protected under the whistleblower provisions of any federal, state or local law, ordinance or regulation, including, but not limited to, Rule 21F‐17 promulgated under the Securities Exchange Act of 1934, as amended.  EMPLOYEE is entitled to make reports and disclosures or otherwise take action under this Section 3(b)(ii) without the prior authorization from or subsequent notification to the COMPANY and may do so with the express understanding that the COMPANY shall not engage in or tolerate retaliation of any kind.  EMPLOYEE is entitled to make reports and disclosures or otherwise take action under this Section 3(b)(ii) without fear of retaliation of any kind by the COMPANY.

	
(c)

	
Ownership of Claims

EMPLOYEE affirms that EMPLOYEE has not assigned or transferred any Claims against COMPANY or any Released Party, nor has EMPLOYEE purported to do so.

	
(d)

	
Nonadmission of Liability

EMPLOYEE agrees that the payments made and other consideration received pursuant to this Agreement are not to be construed as an admission of legal liability by COMPANY and that no person or entity shall utilize this Agreement or the consideration received pursuant to this Agreement as evidence of any admission of liability since COMPANY expressly denies liability.  EMPLOYEE agrees not to assert that this Agreement is an admission of guilt or wrongdoing and acknowledges that the Released Parties do not believe or admit that any of them has done anything wrong.

	
(e)

	
Confidentiality

EMPLOYEE agrees not to divulge or reveal at any time for any reason to any third party any of the facts, details, allegations or circumstances surrounding this Agreement including, but not limited to, the amount of any consideration paid or payable hereunder, with the exception that EMPLOYEE may disclose the terms of or the existence of this Agreement to EMPLOYEE's spouse, attorney, financial advisor, or accountant, provided that the recipient of such information agrees to abide by the terms of confidentiality, non-disclosure, and non-disparagement in this Agreement or as is necessary to comply with the law or governmental regulations.  This Section is subject to the exceptions described in Section 3(b) above.

	
(f)

	
Return of Company Property

EMPLOYEE affirms that EMPLOYEE has returned to COMPANY, on or before the date EMPLOYEE signs this Agreement, all originals and copies of all files, memoranda, documents, records, credit cards, keys, electronically stored copies of the foregoing, and any and all other property of COMPANY, its clients or its affiliates in EMPLOYEE's possession or control, including but not limited to COMPANY's office equipment, such as computers and related equipment, pagers, blackberries, telephones, etc.  EMPLOYEE further

A-5

agrees that EMPLOYEE will promptly notify COMPANY if EMPLOYEE discovers any files, memoranda, documents, records, credit cards, keys, electronically stored copies of the foregoing, and any and all other property of COMPANY and/or its clients in the future.  Any such materials shall immediately be provided to COMPANY.

	
(g)

	
Cooperation and Transition of Duties

EMPLOYEE agrees to fully cooperate in the transition of EMPLOYEE's duties and responsibilities as directed by COMPANY including, but not limited to, being available to meet or speak with the Chief Executive Officer and/or Board of Directors of COMPANY for a reasonable amount of time concerning the status of various projects and the locations of any files or other documents.  EMPLOYEE also agrees to fully cooperate with the COMPANY and its affiliates or subsidiaries in any internal investigation or administrative, regulatory or judicial proceeding as reasonably requested by the COMPANY (including, without limitation, EMPLOYEE's being available to the COMPANY upon reasonable notice for interviews and factual investigations, appearing at the COMPANY's request to give testimony without requiring service of a subpoena or other legal process, volunteering to the COMPANY all pertinent information and turning over to the COMPANY all relevant documents which are in or may come into EMPLOYEE's possession).  Nothing about the foregoing shall preclude EMPLOYEE from testifying truthfully in any forum or from providing truthful information to any government agency or commission.  The COMPANY will reimburse EMPLOYEE for all reasonable out-of-pocket expenses incurred by EMPLOYEE as a result of such cooperation.

	
(h)

	
Non-Disclosure of Confidential Information

EMPLOYEE acknowledges that during the course of employment with the COMPANY, EMPLOYEE had access to and received proprietary and confidential information relating to the COMPANY and its clients or its affiliates including, but not limited to, information relating to the operations, finances and business plans of the COMPANY.  EMPLOYEE covenants that EMPLOYEE will continue to maintain the confidentiality of that information.  EMPLOYEE further agrees to continue to abide by the confidentiality obligations more fully described in EMPLOYEE's Nondisclosure, Proprietary Information and Developments Agreement with the COMPANY (the "Nondisclosure Agreement").

	
(i)

	
Post-Employment Obligations

EMPLOYEE agrees to continue to abide by all of EMPLOYEE's post-employment obligations as more fully described in Section 7 of EMPLOYEE's Employment Agreement with the COMPANY dated April 4, 2014, and these terms of the Employment Agreement survive the termination of EMPLOYEE's employment.

Section 4:                          Consideration for Release

EMPLOYEE acknowledges that EMPLOYEE has voluntarily signed this Agreement in exchange for the benefits that will be received because EMPLOYEE signed this Agreement, and that the benefits EMPLOYEE is receiving by signing this Agreement are in addition to anything of value to which EMPLOYEE is otherwise entitled.  EMPLOYEE acknowledges that EMPLOYEE is signing this Agreement freely and voluntarily and that no one

A-6

pressured EMPLOYEE into signing this Agreement.  EMPLOYEE acknowledges that, before signing this Agreement:  (a) EMPLOYEE carefully read this Agreement; (b) EMPLOYEE fully understood it; (c) it is written in a manner that is understandable to EMPLOYEE; and (d) EMPLOYEE is entering into it voluntarily.

Section 5:                          Miscellaneous

	
(a)

	
Entire Agreement

This Agreement, the Nondisclosure Agreement and EMPLOYEE's Indemnification Agreement with the COMPANY are the entire agreement between EMPLOYEE and the COMPANY.  This Agreement may not be modified or canceled in any manner except by a writing signed by both EMPLOYEE and an authorized COMPANY official.  EMPLOYEE acknowledges that the COMPANY has made no promises, assurances, or representations of any kind to EMPLOYEE other than those explicitly contained in this Agreement.  If any provision in this Agreement is found to be unenforceable, all other provisions will remain fully enforceable.

	
(b)

	
Successors

This Agreement binds EMPLOYEE's heirs, administrators, representatives, executors, successors, and assigns, and will inure to the benefit of all Released Parties and their respective heirs, administrators, representatives, executors, successors, and assigns.

	
(c)

	
Consideration Period

EMPLOYEE acknowledges that the COMPANY has advised EMPLOYEE to consult with an attorney prior to executing this Agreement.  EMPLOYEE also acknowledges that EMPLOYEE has been given a period of twenty-one (21) days within which to consider the Agreement.  For a period of seven (7) days following the execution of this Agreement, EMPLOYEE may revoke the Agreement.  For the revocation to be effective, EMPLOYEE must send a certified letter to Michael R. Stewart, MELA Sciences, Inc., 100 Lakeside Drive, Suite 100, Horsham, PA 19044.  The letter must be post‐marked within seven (7) days of EMPLOYEE's execution of this Agreement.  If the seventh day is a Sunday or federal holiday, then the letter must be post-marked on the following business day.  This Agreement shall not become effective or enforceable until both parties have signed the Agreement and the revocation period has expired, and the last date of the revocation period shall be the Effective Date of this Agreement (the "Effective Date").

	
(d)

	
Severability

Should any clause of this Agreement be found to be in violation of law, or ineffective or barred for any reason whatsoever, the remainder of the Agreement shall be in full force and effect; provided, however, that if any release, waiver or agreement set forth in this Agreement is declared to be invalid, illegal or unenforceable in whole in or in part, COMPANY shall have the right to elect to consider its obligations under this Agreement to be nullified and in such case, any payments or benefits that had been or were to be afforded under this Agreement

A-7

shall be returned to COMPANY with interest, provided further, however, that this right shall be inapplicable in any matter regarding the ADEA.

	
(e)

	
Interpretation and Governing Law

This Agreement shall be construed as a whole according to its fair meaning.  It shall not be construed strictly for or against EMPLOYEE, the COMPANY, or any Released Party.  This Agreement shall be governed by the statutes and common law of the Commonwealth of Pennsylvania excluding its choice of law statutes and common law.

	
(f)

	
Knowing and Voluntary

EMPLOYEE affirms that EMPLOYEE has carefully read the foregoing Agreement, that EMPLOYEE fully understands the meaning and intent of this document, that EMPLOYEE has signed this Agreement voluntarily and knowingly, and that EMPLOYEE intends to be bound by the promises contained in this Agreement for the aforesaid consideration.  EMPLOYEE acknowledges that EMPLOYEE is signing this Agreement freely and voluntarily and that no one pressured EMPLOYEE into signing this Agreement.

TAKE THIS SEVERANCE AGREEMENT AND RELEASE HOME, READ IT, AND CAREFULLY CONSIDER ALL OF ITS PROVISIONS BEFORE SIGNING IT:  IT INCLUDES A RELEASE OF KNOWN AND UNKNOWN CLAIMS.

IN WITNESS WHEREOF and intending to be legally bound, EMPLOYEE and COMPANY have executed this Agreement on the dates indicated below:

 

 

	 	 	 	 	 
	 	 	 	 	 
	 		 		 
	
 

	
Robert W. Cook

	 	
Date

	 
	 	 	 	 	 
	 	
FOR MELA SCIENCES, INC.

	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 		 		 
	 By:	
Michael R. Stewart

	 	
Date

	 
	 Title:	
Title: Chief Executive Officer

	 	 	 

 

A-8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00251-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00251-of-00352.parquet"}]]