Document:

Exhibit (10)A

 

Execution Version

 

TRANSITION AGREEMENT

 

THIS TRANSITION AGREEMENT (the “Agreement”) is made and entered into effective January 7, 2019 (“Effective Date”), by and among Target Corporation, a Minnesota corporation (“Target”), Target Enterprise, Inc. (“Target Enterprise”) a subsidiary of Target (Target and Target Enterprise collectively, the “Company”) and Cathy R. Smith (“Executive”).

 

RECITALS

 

WHEREAS, Executive, who serves as the Company’s Executive Vice President & Chief Financial Officer, has notified the Company of her intent to retire;

 

WHEREAS, The Company desires to retain the benefit of Executive’s services through May 1, 2020 (the “Retirement Date”);

 

WHEREAS, Executive has agreed to remain employed by the Company through the Retirement Date;

 

WHEREAS, the following terms, together with any documents referenced herein, constitute the entire terms of Executive’s employment during this transition period.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the promises and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and Executive, intending to be legally bound, acknowledge and agree as follows:

 

1.                                      Term.  The term of this Agreement shall extend from the Effective Date through the earlier of the Retirement Date or the termination of this Agreement pursuant to Section 7 hereof (the “Agreement Term”).  The end of the Agreement Term is referred to as the “Agreement End Date.”

 

2.                                      Duties and Responsibilities.  Executive shall serve as the Executive Vice President & Chief Financial Officer until such time as her successor assumes those responsibilities.  Following the installation of her successor, Executive will become a strategic advisor to the Company and perform such duties as may be assigned by the Chief Executive Officer or his delegate. Throughout the Agreement Term Executive will devote her full working time, effort and attention to the business of the Company. Executive will fully comply with the standard policies, procedures, and practices of the Company that are in effect during the Agreement Term.

 

3.                                      Base Salary.  Throughout the Agreement Term the Company will pay to Executive the rate of base salary in effect immediately prior to the Effective Date.  Such salary shall be payable in accordance with the Company’s customary payroll practices applicable to executives.

 

4.                                      Short Term Incentive Plan.  Throughout the Agreement Term Executive will continue to participate in the Company’s Short Term Incentive Plan in accordance with the terms of such plan as applied to other executive officers.

 

5.                                      Long Term Incentive Plan.  Executive’s outstanding Price Vested Stock Options, Performance Share Units and Performance Based Restricted Stock Units (“Equity Awards”) will continue

 

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to be governed by all terms of the applicable award agreements and the Long Term Incentive Plan, including applicable vesting provisions.

 

6.                                      Benefits.  Executive will be entitled to participate in all employee benefit plans and programs of the Company in effect during the Agreement Term, to the extent that Executive meets the eligibility requirements for each individual plan or program.  The Company provides no assurance as to the adoption or continuance of any particular plan or program, and Executive’s participation in any such plan or program will be pursuant to the provisions, rules and regulations applicable thereto.

 

7.                                      Limited Termination Right.  This is a fixed term employment contract.  The Company’s only right to terminate this Agreement shall be for “Cause” as defined in the Amended and Restated Target Corporation Long Term Incentive Plan (as amended and restated effective September 1, 2017).  Executive may terminate her employment voluntarily at any time.  Upon such a for-Cause termination or voluntary termination by Executive, each of the Company and Executive will be released from any and all further obligations under this Agreement except for: (i) accrued base salary and benefits owing to Executive through the Agreement End Date; and (ii) the parties respective obligations under Sections 8, 9 and 10 hereof, which shall survive any termination of this Agreement.

 

8.                                      Cooperation.  Following the Agreement End Date, the Company may request that Executive consult or cooperate with the Company (including, without limitation, providing truthful information to the Company or serving as a witness or testifying at the Company’s request without subpoena).  Executive agrees to be available at mutually agreeable times to perform such duties and provide such cooperation in connection with the various business and legal matters in which Executive was involved or of which Executive has knowledge as a result of Executive’s employment with the Company.  In so consulting or cooperating, Executive shall be reimbursed her reasonable out-of-pocket expenses.

 

9.                                      Prohibited Activities; Additional Compensation.  In exchange for the fixed employment term provided by this Agreement and additional payments by the Company of $750,000 on each of the next two anniversary dates of the Agreement End Date, Executive agrees to comply with the Company’s standard post-employment covenants and execute the Company’s standard form of release as set forth below.    Specifically, Executive agrees:

 

(a)                                 during her employment and until twenty-four months after the Agreement End Date, to refrain from accepting employment with, or directly or indirectly becoming a consultant or advisor to or performing any services for, or becoming a director of any competitor of the Company, and

 

(b)                                 during her employment and until twenty-four months after the Agreement End Date, to refrain from doing any of the following:

 

(i)                                     using or disclosing Non-Public Information, as defined in Executive’s separate Confidentiality and Inventions/Creative Works Agreement, for or to any person or organization not expressly authorized by the Company to receive or use such information; or

 

(ii)                                  directly inducing, soliciting, or requesting any Company employee to accept employment or a consulting relationship with, or perform services for, anyone other than the Company, or to otherwise take any action detrimental to the relationships between the Company and its employees; or

 

(iii)                               disparaging the Company or any of its directors, officers, or employees in a manner that causes significant harm to the Company.

 

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(c)                                  to sign, deliver and not revoke a release of identical or substantially similar content to the release in Exhibit B (as prescribed by the applicable laws then in effect) on or around the Agreement End Date.

 

Nothing in this Agreement is intended to prohibit Executive from: (i) communicating with any governmental authority without notice to the Company concerning possible legal violations; or (ii) receiving any applicable award for information provided to governmental authorities.  The Company reserves all rights to and does not waive any attorney-client privilege that otherwise applies to any such information disclosed to governmental  authorities.

 

10.                               Arbitration.  As further described in Exhibit A, the parties agree that any and all disputes which arise out of or relate to Executive’s employment, the termination of Executive’s employment, or the terms of this Agreement, shall be resolved through final and binding arbitration. Such arbitration shall be in lieu of any trial before a judge and/or jury, and Executive and the Company expressly waive all rights to have such disputes resolved via trial before a judge and/or jury.

 

11.                               Miscellaneous.

 

(a)                                 Complete Agreement; Governing Documents. This Agreement, together with the separate Confidentiality and Inventions/Creative Works Agreement and Equity Award agreements previously entered into by Executive and the Company, shall constitute the entire agreement and understanding of the Company’s obligation to provide compensation and benefits to Executive and shall supersede all prior and contemporaneous written or verbal agreements and understandings between Executive and the Company relating to such subject matter. Executive acknowledges that the fixed term nature of this Agreement is in lieu of any continuing right to be covered by the Company’s Income Continuation Plan and that the end of her employment on the Retirement Date will be treated as a voluntary retirement for all purposes and that she has no further rights to claim compensation or benefits from the Company.  To the extent the terms of this Agreement conflict with the terms of the separate Confidentiality and Inventions/Creative Works Agreement and Equity Award agreements, the terms of this Agreement will control. This Agreement may only be amended by written instrument signed by Executive and a duly authorized employee of the Company.

 

(b)                                 Successors and Assigns. This Agreement and all rights hereunder are personal to Executive and may not be transferred or assigned by Executive at any time. The Company may assign its rights, together with its obligations hereunder, to any parent, subsidiary, affiliate or successor, or in connection with any sale, transfer or other disposition of all or substantially all of its business and assets, provided, however, that any such assignee assumes the Company’s obligations hereunder.

 

(c)                                  Governing Law. The provisions of this Agreement shall be construed and interpreted under the laws of the State of Minnesota applicable to agreements executed and wholly performed within the State of Minnesota. If any provision of this Agreement as applied to any party or to any circumstance should be adjudged by a court of competent jurisdiction to be void or unenforceable for any reason, the invalidity of that provision shall in no way affect (to the maximum extent permissible by law) the application of such provision under circumstances different from those adjudicated by the court, the application of any other provision of this Agreement, or the enforceability or invalidity of this Agreement as a whole.

 

(d)                                 Jurisdiction and Venue.  Executive and the Company consent to jurisdiction of the courts of the State of Minnesota and/or the federal courts, District of Minnesota, for the purpose of resolving all issues of law, equity, or fact, arising out of or in

 

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connection with this Agreement that are not subject to arbitration.  Any action involving claims of a breach of this Agreement must be brought in such courts. Each party consents to personal jurisdiction over such party in the state and/or federal courts of Minnesota and hereby waives any defense of lack of personal jurisdiction. Venue, for the purpose of all such suits, will be in Hennepin County, State of Minnesota.

 

(e)                                  Section 409A. The payments under Section 9 of this Agreement are intended to comply with the requirements of section 409A of the Code.  The remaining payments under this  Agreement are intended to  be exempt from the requirements of sections 409A; provided, however, if any payment is or becomes subject to the requirements of Code section 409A, the Agreement as it relates to such payment is intended to comply with the requirements of section 409A of the Code.  For all purposes under section 409A of the Code, each payment under this Agreement shall be treated as a separate payment. Notwithstanding anything in the Agreement to the contrary, if, at the time of Executive’s termination of employment, Executive is a “specified employee” (within the meaning of section 409A of the Code), then to the extent any payment under this Agreement is determined by the Company to be deferred compensation subject to the requirements of section 409A of the Code payable upon separation from service, payment of such deferred compensation shall be suspended and not made until the first day of the month next following the end of the 6-month period following the Agreement End Date, or, if earlier, upon Executive’s death.

 

(f)                                   Counterparts. This Agreement may be executed in more than one counterpart, each of which shall be deemed an original, but all of which together shall constitute but one and the same instrument.

 

IN WITNESS WHEREOF, the parties have executed and delivered this Agreement as of the date set forth below.

 

	
Target   Corporation:
    	
 
    	
Target   Enterprise, Inc.:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/ Don   H. Liu
    	
 
    	
By:
    	
/s/ Don H. Liu
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
Don H. Liu
    	
 
    	
Name:
    	
Don   H. Liu
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
Executive   Vice President and Chief Legal and Risk Officer
    	
 
    	
Title:
    	
Executive   Vice President and Chief Legal and Risk Officer
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
January 7, 2019
    	
 
    	
Date:
    	
January 7,   2019
    

 

 

	
Cathy R. Smith:  
    	
 
    
	
 
    	
 
    
	
/s/ C.R.   Smith
    	
 
    
	
 
    	
 
    
	
Date: January 7, 2019
    	
 
    

 

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Execution Version

 

Exhibit A

 

Arbitration Terms and Provisions

 

1.                                      Disputes subject to arbitration shall include, without limitation, claims for breach of contract or of the covenant of good faith and fair dealing, claims of discrimination, claims under any federal, state or local law or regulation now in existence or hereinafter enacted and as amended from time to time concerning in any way Executive’s employment with the Company or its termination. The only claims relating to Executive’s employment, termination or this Agreement that are not covered by this Agreement to arbitrate disputes, which shall instead be resolved pursuant to applicable law, are: (i) claims for temporary, preliminary or other emergency injunctive or equitable relief; (ii) claims for benefits under the unemployment insurance benefits; (iii) claims for workers’ compensation benefits under any of the Company’s workers’ compensation insurance policy or fund; (iv) claims under the National Labor Relations Act; and (v) claims that may not be arbitrated as a matter of law.

 

2.                                      Arbitration will be conducted in Minneapolis, Minnesota. Arbitration shall be conducted in accordance with the Federal Arbitration Act (“FAA”) and the National Rules for the Resolution of Employment Disputes of the American Arbitration Association (“AAA Rules” available at www.adr.org), provided, however, that the arbitrator shall allow the discovery authorized or required by applicable law in arbitration proceedings, including, but not limited to, discovery available under the applicable state and/or federal arbitration statutes. Also, to the extent that any of the AAA Rules or anything in this arbitration section conflicts with any arbitration procedures required by applicable law, the arbitration procedures required by applicable law shall govern.

 

3.                                      The Company agrees to bear the cost of (i) the arbitrator’s fee, and (ii) any other expense or cost Executive would not be required to bear if Executive were free to bring the dispute or claim in court. Each party shall bear their own attorneys’ fees incurred in connection with the arbitration. The arbitrator will not have authority to award attorneys’ fees unless a statute or contract at issue in the dispute authorizes the award of attorneys’ fees to the prevailing party. In such case, the arbitrator shall have the authority to make an award of attorneys’ fees as required or permitted by the applicable statute or contract.

 

4.                                      The arbitrator shall issue a written award that sets forth the essential findings of fact and conclusions of law on which the award is based. The arbitrator shall have the authority to award any relief authorized by law in connection with the asserted claims or disputes. The arbitrator’s award shall be subject to correction, confirmation, or vacation, as provided by applicable law setting forth the standard of judicial review of arbitration awards. Judgment upon the arbitrator’s award may be entered in such court specified in Section 11(d) of the attached Agreement.

 

5.                                      This arbitration provision does not prohibit Executive from pursuing an administrative claim with a local, state or federal administrative agency such as the Department of Fair Employment and Housing, the Equal Employment Opportunity Commission, or any workers’ compensation board, but this provision does prohibit Executive’s from seeking or pursuing court action regarding any such claim.

 

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Exhibit B

 

Model Release

 

1.              Definitions.  The definitions below are intended solely for the purpose of this release.  All words used in this release are intended to have their plain meanings in ordinary English, except that capitalized words not defined in this Exhibit shall have the same meaning as in that certain Transition Agreement dated January 7, 2019 (the “Agreement”).  Specific terms in this release have the following meanings:

 

(a)                                 “Executive” includes Executive and anyone who has or obtains any legal rights or claims through Executive.

 

(b)                                 “Target” means Target Corporation and any company related to Target Corporation in the present or past (including without limitation, its predecessors, parents, subsidiaries, affiliates and divisions) and any successor of Target Corporation.

 

(c)                                  “Corporation” means Target and any company providing insurance to Target in the present or past, any employee benefit plan sponsored or maintained by Target in the present or past and the present and past fiduciaries of any such plans, Target’s present and past officers, directors, employees, committees and agents and any person who acted on behalf of Target or on instructions from Target.

 

(d)                                 “Executive Claims” means all of the rights Executive has now to any relief of any kind from the Corporation, including without limitation:

 

(i)                                     all claims arising out of or relating to Executive’s service with Target and Executive’s service termination; and

 

(ii)                                  all claims arising out of or relating to statements, actions, or omissions of the Corporation; and

 

(iii)                               all claims for any alleged unlawful discrimination, harassment, retaliation or reprisal, or other alleged unlawful practices arising under any federal, state, or local statute, ordinance, or regulations, including without limitation, claims under the Age Discrimination in Employment Act, Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, 42 U.S.C § 1981, the Employee Retirement Income Security Act, the Equal Pay Act, the Worker Adjustment and Retraining Notification Act, the Family and Medical Leave Act, the Fair Credit Reporting Act, and workers’ compensation non-interference or non-retaliation statutes; and

 

(iv)                              all claims for alleged wrongful discharge; breach of contract; breach of implied contract; failure to keep any promise; breach of a covenant of good faith and fair dealing; breach of fiduciary duty; estoppel; defamation; infliction of emotional distress; fraud; misrepresentation; negligence; harassment; retaliation or reprisal; constructive discharge; assault; battery; false imprisonment; invasion of privacy; interference with contractual or business relationships; any other wrongful employment practices; and violation of any other principle of common law; and

 

(v)                                 all claims for compensation of any kind, including without limitation, bonuses, commissions, stock, stock options or other equity interests, vacation pay, perquisites, and expense reimbursements; and

 

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(vi)                              all claims for back pay, front pay, severance pay or income continuation under any Company plan, program, or agreement, reinstatement, equitable relief, compensatory damages, damages for alleged personal injury, liquidated damages, and punitive damages; and

 

(vii)                           all claims for attorney’s fees, costs, and interest.

 

However, Executive Claims do not include any claims related to post-termination benefits accrued before the Agreement End Date under the generally-applicable terms of benefit plans or programs maintained by the Corporation (including without limitation, Executive’s rights under the Company’s Long Term Incentive Plan and related Equity Award agreements), claims relating to Executive’s rights as a shareholder of the Company, claims that the law does not allow to be waived, claims that may arise after the date on which Executive signs this release, claims relating to the enforcement of the Agreement, or claims for defense, indemnification or contribution to the maximum extent permitted under the laws of the State of Minnesota, including without limitation Minn. Stat. § 302A.521, or otherwise for claims brought against Executive in her capacity as an officer, attorney, employee or agent of the Corporation. This paragraph does not preclude Executive from bringing a charge of discrimination with the EEOC however, Executive hereby agrees to give up any right to receive compensation or damages as a result of such a charge.

 

2.              Agreement to Execute Releases of Executive Claims.  In exchange for all consideration provided by the Agreement, Executive gives up and releases all Executive Claims.  Executive will not make any demands or claims against the Corporation for compensation or damages relating to Executive Claims.

 

7Exhibit 10.1

 

 

January 8, 2019

 

C/O Christine Berni Silverstein

  

 

 

Dear Christine:

 

I am
pleased to offer you the position of Senior Vice President, Chief Financial Officer with Abeona Therapeutics Inc. (the “Company”)
reporting to the CEO, effective January 8, 2019, (the “Effective Date”).

 

Your
position will be exempt, and you will be based in our New York office.

  

 

1.  Compensation
and benefits.

 

Your annualized base salary of $350,000
(subject to required tax withholdings and other authorized deductions) will be paid at a semi-monthly rate of $14,583.33 in accordance
with customary payroll practices and procedures, subject to applicable law. This salary covers all hours worked by exempt employees.
You will receive your semi-monthly pay on the 15th and the last day of each month.

 

During your employment,
you may be considered for an annual discretionary bonus (“Annual Bonus”) in addition to your Base Salary with
a target of 30% of your Base Salary (“Target Annual Bonus Opportunity”). Annual Bonus compensation in any year,
if any, will be determined in the Company sole discretion and shall be based on your performance and that of the Company, as well
as market factors, in accordance with a general bonus program established by the Compensation Committee (the “Compensation
Committee”) of the Board of Directors of the Company (the “Board”). Except as provided below in the
event of certain terminations of your employment, to be eligible to receive an Annual Bonus for any year, if any, you must be employed
in good standing on the date that the Annual Bonus is paid.

 

You will be eligible
to participate in employee benefit plans that the Employer may establish for similarly situated employees, except to the extent
such plans are duplicative of benefits otherwise provided under any other agreement. Your participation will be subject to the
terms of the applicable plan documents and generally applicable Company policies.

 

These plans are subject
to review and change at any point, however, currently we offer comprehensive health, vision and dental insurance, employer funded
life, short- and long-term disability insurance and up to 4% employer matching on 401k contributions.

 

2.  Stock
Options.

 

Subject
to Compensation Committee approval, at the first regularly scheduled meeting of the Compensation Committee after the Effective
Date, you will be granted stock options (“Options”) under the Abeona Therapeutics
Inc. 2015 Equity Incentive Plan (the “Plan”) to purchase 20,000 shares of Company common stock. The Option Shares
will vest over a forty-eight (48) month period, with one quarter (25%) vesting on the one-year anniversary of the Effective Date
and the remaining seventy-five percent (75%) of the Options vesting in equal monthly installments thereafter over the remaining
thirty-six (36) months, commencing with the first month following the first anniversary of the Effective Date, and subject to (i)
your continued employment with the Company and/or its affiliates through to the applicable vesting dates, and (ii) the terms and
conditions of the Plan and the agreement memorializing the terms of the Options. If you remain continuously employed from the Effective
Date through the date of a Change in Control (as defined below), any unvested portion of the Options as of the date of the Change
in Control shall become fully vested immediately prior to the date of the Change in Control. Pursuant to the terms of the Plan,
the exercise price of the Options will be the fair market value of the Company’s common stock on the date of the grant. 

 

     

     

    

 

3.  Employment Termination.

 

The Company may terminate
your employment for any reason, and you may voluntarily terminate your employment hereunder for any reason, in each case at any
time upon written notice to the other party (the date on which your employment terminates for any reason is herein referred to
as the “Termination Date”). Upon your termination of employment for any reason, you (or your beneficiary or
estate, as applicable, in the event of your death) will be entitled to (i) payment of any Base Salary earned but unpaid through
the Termination Date, (ii) any accrued unused vacation days, (iii) additional vested benefits (if any) in accordance with the applicable
terms of applicable Company arrangements, and (iv) any unreimbursed expenses in accordance with the Company’s business expense
reimbursement policies (collectively, the “Accrued Amounts”); provided, however, that if your
employment hereunder is terminated (a) by the Company without Cause (as defined below), (b) by you for Good Reason (as defined
below), (c) on account of your death or (d) by the Company on account of your Disability (as defined below), then you will be eligible
to receive any Annual Bonus awarded in a prior year, but not yet paid or due to be paid.

 

If your employment
is terminated (a) by the Company other than for Cause, death or Disability or (b) by you for Good Reason, in addition to the Accrued
Amounts, you will be entitled to: (i) a payment equal to the sum of your Base Salary plus your Target Annual Bonus Opportunity
(such amount, the “Severance Amount”); (ii) a payment equal to the premiums that you would pay if you elected
continued health coverage under the Company’s health plan for you and your eligible dependents for the twelve (12) month
period following the Termination Date, less the applicable active employee rate, which premiums will be calculated based on the
rate determined under the COBRA rate in effect on the Termination Date (“Medical Benefit Payment”); (iii) a
pro-rata Annual Bonus, which pro-rated Annual Bonus shall be determined by multiplying the full year Annual Bonus that would otherwise
have been awarded to you, based upon the achievement of the applicable performance goals for the year in which the Termination
Date occurs (without any exercise of negative discretion disproportionate to any such exercise respecting other executives and
all subjective performance requirements deemed fully satisfied), multiplied by a fraction, the numerator of which is the number
of days during which you were employed by the Company in the year in which the Termination Date occurs and the denominator of which
is three hundred sixty-five (365); and (iv) accelerated vesting equivalent to twelve (12) months of continued employment from the
Termination Date (disregarding such termination for such purpose) with respect to all unvested equity and any other long-term incentive
awards granted to you and then outstanding on the Termination Date; provided, that, any delays in the settlement
or payment of such awards that are set forth in the applicable award agreement and that are required under Section 409A of the
Internal Revenue Code, as amended (the “Code”), and the Treasury Regulations thereunder (“Section 409A”)
shall remain in effect. The Company’s obligations to make the payments and provide the benefits set forth in (i) –
(iv) in this Paragraph shall be conditioned upon your continued compliance with your obligations under Section 4 below and your
execution and nonrevocation of a release of claims in favor of the Company and its affiliates in a form provided by the Company
(“Release”). Notwithstanding any provision to the contrary herein, and without limitation of any remedies to
which the Company may be entitled, (A) the Severance Amount shall be paid in installments in accordance with the Company’s
regular payroll practices during a twelve (12) month period commencing within sixty (60) days following the Termination Date (with
the first such payment to include all installment amounts from the Termination Date), (B) the Medical Benefit Payment will be made
in a lump sum within sixty (60) days following the Termination Date and (C) the pro-rated Annual Bonus shall be paid to you in
the ordinary course at the same time annual bonuses are paid to other senior executives, but in no event later than March 15 of
the year following the year in which the Termination Date occurs; provided, that, the Release is effective.

 

Notwithstanding any
other provision contained herein, if your employment hereunder is terminated by you for Good Reason or by the Company without Cause
(other than on account of your death or Disability), in each case within twelve (12) months following a Change in Control, you
will be entitled to receive the Severance Amount, the Medical Benefit Payment, and the pro-rata Annual Bonus, as provided above,
except that (i) if the Change in Control is a “change in control event” as defined under Section 409A, the Severance
Amount shall be payable in a lump sum within sixty (60) days following the Termination Date; and (ii) notwithstanding the
terms of any equity incentive plan or award agreements, as applicable, all outstanding unvested stock options/stock appreciation
rights granted to your during your employment with the Company shall become fully vested and exercisable and will remain exercisable
for six (6) months following the Termination Date and all outstanding equity-based and other long-term compensation awards, other
than stock options/stock appreciation rights, shall become fully vested and the restrictions thereon shall lapse; provided,
that, any delays in the settlement or payment of such awards that are set forth in the applicable award agreement and that
are required under Section 409A shall remain in effect. The Company’s obligations to provide the payments and benefits described
in this Paragraph shall be conditioned upon your continued compliance with your obligations under Section 4 below and your execution
and delivery to the Company of an effective Release.

 

     

     

    

 

The foregoing payments
and benefits upon termination of your employment shall constitute the exclusive severance payments and benefits due to you upon
a termination of your employment.

 

Upon your termination
of employment with the Company for any reason, you will be deemed to have resigned, as of the Termination Date, from all positions
you then hold with the Company and its affiliates.

 

Following the termination
of your employment with the Company for any reason, you will reasonably cooperate with the Company upon reasonable request of the
CEO or the Board or and be reasonably available to the Company (taking into account your other business endeavors) with respect
to matters arising out of your services to the Company and its subsidiaries, including, in connection with any legal proceeding,
providing testimony and affidavits; provided, that, the Company shall make reasonable efforts to minimize disruption
of your other activities. The Company shall reimburse you for reasonable expenses including reasonably
incurred attorney’s fees incurred in connection with such cooperation.

 

For purposes of this
offer letter, the following terms have the following meanings:

 

(i)        “Cause”
shall mean: (a) your substantial failure to perform your duties (other than any such failure resulting from incapacity due to physical
or mental disability) that continues for fifteen (15) calendar days after written notice from the Company; (b) your failure to
comply with any valid and legal directive of the CEO or the Board (as applicable) that continues for fifteen (15) calendar days
after written notice from the Company; (c) your engagement in dishonesty, illegal conduct, or misconduct (or the discovery of your
having engaged in such conduct), which, in each case, materially harms or is reasonably likely to materially harm the Company or
its subsidiaries; (d) your embezzlement, misappropriation, or fraud, whether or not related to your employment with the Company;
(e) your conviction of or plea of guilty or nolo contendere to a crime that constitutes a felony; (f) your willful violation of
a material policy of the Company; (g) your willful or grossly negligent unauthorized disclosure of Confidential Information (as
defined below); or (h) your material breach of any material obligation under this offer letter or any other written agreement between
you and the Company that continues for fifteen (15) calendar days after written notice from the Company (if such breach is reasonably
curable); or (i) any willful material failure by you to comply with the Company’s written policies or written rules, as they
may be in effect from time to time.

 

(ii)       “Change
in Control” shall have the meaning defined in subparagraph (ii) of the definition of such term under the Appendix in
the Plan as in effect on the date hereof.

 

(iii)       “Disability”
shall occur, subject to applicable law, when you are entitled to receive long-term disability benefits under the Company’s
long-term disability plan, or if there is no such plan, your inability, due to physical or mental incapacity, to perform the essential
functions of your job for one hundred eighty (180) calendar days out of any three hundred sixty-five (365) day period or one hundred
twenty (120) consecutive calendar days. Any question as to the existence of your Disability as to which you and the Company cannot
agree shall be determined in writing by a qualified independent physician mutually acceptable to you and the Company. If you and
the Company cannot agree as to a qualified independent physician, each shall appoint such a physician and those two physicians
shall select a third who shall make such determination in writing. The determination of Disability made in writing to the Company
and you shall be final and conclusive for all purposes of this offer letter.

 

(iv)      “Good
Reason” shall mean the occurrence of any of the following, in each case without your written consent: (a) a material
reduction of at least ten percent (10%) of your Base Salary other than a general reduction in Base Salary that affects all similarly
situated executives in substantially the same position; (b) a material reduction of at least thirty percent (30%) of the Target
Annual Bonus Opportunity other than a general reduction in the Target Annual Bonus Opportunity that affects all similarly situated
executives in substantially the same position; (c) a permanent relocation of your principal place of employment by more than thirty-five
(35) miles; (d) any material breach by the Company of any material provision of this offer letter; or (e) a material adverse change
in your title, authority, duties, or responsibilities (including the reporting structure applicable to you, other than temporarily
while you are physically or mentally incapacitated); provided, however, that you cannot terminate your employment
for Good Reason unless you have provided written notice to the Company of the existence of the circumstances providing grounds
for termination for Good Reason within sixty (60) calendar days following the initial existence of such grounds and the Company
has had thirty (30) calendar days from the date on which such notice is provided to cure such circumstances. If you do not terminate
your employment for Good Reason within sixty (60) calendar days after expiration of the cure period (in which the Company shall
not have so cured such grounds), then you will be deemed to have waived your right to terminate for Good Reason with respect to
such grounds.

 

     

     

    

 

4.  Restrictive Covenants.

 

This offer
of employment is contingent on your signing the Company’s standard Employee Confidentiality, Non-competition, Policy on Insider
Trading, Whistle Blower Policy, Code of Ethics, Proprietary Information Agreement, attached hereto as Exhibit A, the terms
of which are incorporated by reference.

  

5.  At-Will Employment.

 

Your employment
with the Company is at-will. This means that you will have the right to terminate your employment relationship with the Company
at any time for any reason. Similarly, the Company will have the right to terminate its employment relationship with you at any
time for any reason.

  

6.  Miscellaneous.

 

All amounts
paid to you under this offer letter during or following your employment shall be subject to withholding and other employment taxes
imposed by applicable law, and the Company shall withhold from any payments under this offer letter all federal, state and local
taxes as the Company is required to withhold pursuant to any law or governmental rule or regulation. You shall be solely responsible
for the payment of all taxes imposed on you relating to the payment or provision of any amounts or benefits hereunder.

 

This offer
letter may be executed by .pdf or facsimile signatures in any number of counterparts, each of which shall be deemed an original,
but all such counterparts shall together constitute one and the same instrument.

 

From and
after the Effective Date, this offer letter (including Exhibit A hereto) constitutes the entire agreement between you and
the Company, and supersedes all prior representations, agreements and understandings (including any prior course of dealings),
both written and oral, between you and the Company with respect to the subject matter hereof. In the event of any inconsistency
between this offer letter and any other plan, program, practice or agreement in which you are a participant or a party, this offer
letter shall control unless such other plan, program, practice or agreement is more favorable to you (term by term) or specifically
refers to this offer letter as not controlling.

 

This offer
letter and any of the provisions hereof may be amended, waived (either generally or in a particular instance and either retroactively
or prospectively), modified or supplemented, in whole or in part, only by written agreement signed by you and the Company. This
offer letter and your rights and obligations hereunder, may not be assigned by you, and any purported assignment by you in violation
hereof shall be null and void. The Company is authorized to assign this offer letter to a successor to substantially all of its
assets or business. Nothing in this offer letter shall confer upon any person not a party hereof, or the legal representatives
of such person, any rights or remedies of any nature or kind whatsoever under or by reason of this offer letter, except the personal
representative of the deceased. This offer letter shall inure to the benefit of, and be binding on, the successors and assigns
of each of the parties, including, without limitation, your heirs and the personal representatives of your estate and any successor
to all or substantially all of the business and/or assets of the Company.

 

No remedy
conferred upon a party by this offer letter is intended to be exclusive of any other remedy, and each and every such remedy shall
be cumulative and shall be in addition to any other remedy given under this offer letter or now or hereafter existing at law or
in equity. Except as explicitly provided herein, no delay or omission by a party in exercising any right, remedy or power under
this offer letter or existing at law or in equity shall be construed as a waiver thereof, and any such right, remedy or power may
be exercised by such party from time to time and as often as may be deemed expedient or necessary by such party in its sole discretion.

 

     

     

    

 

This offer
letter shall be construed and enforced in accordance with, and the laws of the State of New York, without giving effect to the
conflicts of law principles thereof.

 

Any reference
to a Section of the Code shall be deemed to include any successor to such Section.

 

This offer letter and the compensation payable
hereunder shall be subject to any applicable clawback or recoupment policies, share trading policies, and other policies that may
be implemented by the Board from time to time with respect to officers of the Company.

 

Any notices required or permitted hereunder
or necessary or convenient in connection herewith shall be in writing and shall be deemed to have been given when hand delivered
or mailed by registered or certified mail, if to the Company, to the CEO at the address above, and if to you at the most recent
address in the Company’s records.

 

Please acknowledge
your acceptance of this offer by returning a signed copy of this offer letter. If there are any other agreements of any type that
you are aware of that may impact or limit your ability to perform your job at the Company, please let us know as soon as possible.
In accepting this offer, you represent and warrant to the Company that you are not subject to any legal or contractual restrictions
that would in any way impair your ability to perform your duties and responsibilities to the Company, and that all information
you provided to the Company is accurate and complete in all respects. This offer will remain open until January 8, 2019.

 

Formalities
aside, we are very excited about having you join our team. Your skills and experiences are a great match with our goals, and I
anticipate you being a critical part of the Company’s success.

 

Very truly yours,

 

 

Joao Siffert

Interim CEO and Chief Medical officer

Abeona Therapeutics Inc.

 

I accept this offer of
employment with Abeona Therapeutics.

 

 

	Signature:	 	Date:	 
	 	 	 	 
		 		 

 

     

     

    

 

EMPLOYEE CONFIDENTIALITY, NON-COMPETITION,
AND PROPRIETARY INFORMATION AGREEMENT

   

AGREEMENT, effective as of January
8, 2019 between Abeona Therapeutics Inc., a Delaware corporation (the “Company”), and Christine Berni
Silverstein (the “Employee”).

 

1.        Employee
will make full and prompt disclosure to the Company of all inventions, improvements, modifications, discoveries, methods, technologies,
biological materials, and developments, and all other materials, items, techniques, and ideas related directly or indirectly to
the business of the Company (collectively, “Intellectual Property”), whether patentable or not, made or conceived by
Employee or under Employee’s direction during Employee’s employment with the Company, whether or not made or conceived
during normal working hours, or on the premises of the Company.

 

2.        Employee
agrees that all Intellectual Property, as defined above, shall be the sole property of the Company and its assigns, and the Company
and its assigns shall be the sole owner of all patents and other rights in connection therewith. Employee hereby assigns to the
Company any rights Employee may have or acquire in all Intellectual Property and all related patents, copyrights, trademarks, trade
names, and other industrial and intellectual property rights and applications therefore, in the United States and elsewhere. Employee
further agrees that with regard to all future developments of Intellectual Property, Employee will assist the Company in every
way that may be reasonably required by the Company (and at the Company’s expense) to obtain and, from time to time, enforce
patents on Intellectual Property in any and all countries that the Company may require, and to that end, Employee will execute
all documents for use in applying for and obtaining such patents thereon and enforcing the same, as the Company may desire, together
with any assignment thereof to the Company or persons designated by the Company, and Employee hereby appoints the Company as Employee’s
attorney to execute and deliver any such documents or assignments requested by the Company. Employee’s obligation to assist
the Company in obtaining and enforcing patents for Intellectual Property in any and all countries shall continue beyond the termination
of Employee’s employment with the Company, but the Company shall compensate Employee at a reasonable, standard hourly rate
following such termination for time directly spent by Employee at the Company’s request for such assistance.

 

3.        Employee
hereby represents that Employee has no continuing obligation to assign to any former employer or any other person, corporation,
institution, or firm any Intellectual Property as described above. Employee represents that Employee’s performance of all
the terms of this Agreement and as an employee of the Company does not and will not breach any agreement to keep in confidence
proprietary information acquired by Employee, in confidence or in trust, prior to Employee’s employment by the Company. Employee
has not entered into, and Employee agrees not to enter into, any agreement (either written or oral), which would put Employee in
conflict with this Agreement.

 

4.        Employee
agrees to assign to the Company any and all copyrights and reproduction rights to any material prepared by Employee in connection
with this Agreement and/or developed during the term of Employee’s employment with the Company.

 

5.        Employee
understands and agrees that a condition of Employee’s employment and continued employment with the Company is that Employee
has not brought and will not bring to the Company or use in the performance of Employee’s duties at the Company any materials
or documents rightfully belonging to a former employer which are not generally available to the public. Employee may bring such
materials and documents to the Company only to the extent that Employee has obtained written authorization from such former employer
for their possession and use. Accordingly, this is to advise the Company that any materials and/or documents belonging to a former
employer and which are not generally available to the public that Employee has brought or will bring to the Company or has used
or will use in Employee’s employment are identified in Exhibit A appended to this Agreement, and as to each such item,
Employee represents that Employee has obtained prior to the effective date of this Agreement written authorization for their possession
and use in Employee’s employment with the Company.

 

     

     

    

 

6.        Employee
recognizes that the services to be performed by Employee hereunder are special, unique, and extraordinary and that, by reason of
Employee’s employment with the Company, Employee may acquire Confidential Information (as hereinafter defined) concerning
the operation of the Company, the use or disclosure of which would cause the Company substantial loss and damage which could not
be readily calculated and for which no remedy at law would be adequate. Accordingly, Employee agrees that Employee will not (directly
or indirectly) at any time, whether during or after Employee’s employment with the Company:

 

		(i)	knowingly
use for personal benefit or for any other reason not authorized by the Company any Confidential Information that Employee may acquire
or has acquired by reason of Employee’s employment with the Company, or;

 

		(ii)	disclose
any such Confidential Information to any person or entity except (A) in the performance of Employee obligations to the Company
hereunder, (B) as required by a court of competent jurisdiction, (C) in connection with the enforcement of Employee rights under
this Agreement, or (D) with the prior consent of the Board of Directors of the Company.

 

As
used herein, “Confidential Information” includes information with respect to the facilities and methods of the
Company, reagents, chemical compounds, cell lines or subcellular constituents, organisms, or other biological materials, trade
secrets, and other Intellectual Property, systems, patents and patent applications, procedures, manuals, confidential reports,
financial information, business plans, prospects, or opportunities, personnel information, or lists of customers and suppliers;
provided, however, that Confidential Information shall not include any information that is known or becomes generally known or
available publicly other than as a result of disclosure by Employee which is not permitted as described in clause (ii) above, or
the Company discloses same to others without obtaining an agreement of confidentiality.

 

Employee
confirms that all Confidential Information is the exclusive property of the Company. All business records, papers, documents and
electronic materials kept or made by Employee relating to the business of the Company which comprise Confidential Information shall
be and remain the property of the Company during the Employee’s employment and at all times thereafter. Upon the termination,
for any reason, of Employee’s employment with the Company, or upon the request of the Company at any time, Employee shall
deliver to the Company, and shall retain no copies of any written or electronic materials, records and documents made by Employee
or coming into Employee’s possession concerning the business or affairs of the Company and which comprise Confidential Information.

 

7.        During
the term of Employee’s employment with the Company and for one (1) year thereafter (the “Restricted Period”),
the Employee shall not directly or indirectly, for Employee’s own account or for the account of others, as an officer, director,
stockholder (other than as the holder of less than 1% of the outstanding stock of any publicly traded company), owner, partner,
employee, promoter, consultant, manager or otherwise participate in the promotion, financing, ownership, operation, or management
of, or assist in or carry on through proprietorship, a corporation, partnership, or other form of business entity which is in competition
with the Company in the field of RNA interference (RNAi) (the “Company Business”) within the United States or any other
country in which the Company is conducting or is actively seeking or planning to conduct the Company Business as of the date of
such termination.

 

During
the Restricted Period, the Employee shall not, whether for Employee’s own account or for the account of any other person
(excluding the Company): solicit or contact in an effort to do business with any person who was or is a customer of the Company
during the term of this Agreement or after its termination, or any affiliate of any such person, if such solicitation or contact
is for the purpose of competition with the Company; or

 

		(i)	solicit
or contact in an effort to do business with any person who was or is a customer of the Company during the term of this Agreement
or after its termination, or any affiliate of any such person, if such solicitation or contact is for the purpose of competition
with the Company; or

		(ii)	solicit
or induce any of the Company’s employees to leave their employment with the Company or accept employment with anyone else,
or hire any such employees or persons who were employed by the Company during the preceding 12 months.

 

Nothing
herein shall prohibit or preclude the Employee from performing any other types of services that are not precluded by this Section
7 for any other person.

 

     

     

    

 

Employee
has carefully read and considered the provisions of this Section 7 (including the Restricted Period, scope of activity to be restrained,
and the restriction’s geographical scope) and concluded them to be fair, appropriate and reasonably required for the protection
of the legitimate business interests of the Company, its officers, directors, employees, creditors, and shareholders. Employee
understands that the restrictions contained in this Section may limit Employee’s ability to engage in a business similar
to the Company’s business, but acknowledges that Employee will receive adequate and affluent remuneration and other benefits
from the Company hereunder to justify such restrictions.

 

The
Employee shall give prompt notice to the Company of the Employee’s acceptance of employment or other fees for services relationship
during the Restricted Period, which notice shall include the name of, the business of, and the position that Employee shall hold
with such other employer.

 

8.        In
the event that Employee’s employment is transferred by the Company to a subsidiary, affiliated company, or acquiring company
(as the case may be), Employee’s employment by such company will, for the purpose of this Agreement, be considered as continued
employment with the Company, unless Employee executes an agreement, substantially similar in substance to this Agreement, and until
the effective date of said agreement in any such company for which Employee becomes employed. It is likewise agreed that no changes
in Employee’s position or title will operate to terminate the provisions of this Agreement unless expressly agreed to in
writing.

 

9.        Upon
termination of Employee’s employment for any reason, unless such employment is transferred to a subsidiary, affiliated or
acquiring company of the Company, Employee agrees to leave with, or return to, the Company all records, drawings, notebooks, and
other documents pertaining to the Company’s Confidential Information, whether prepared by Employee or others, as well as
any equipment, tools or other devices owned by the Company, that are then in Employee’s possession, however such items were
obtained, and Employee agrees not to reproduce or otherwise retain any document or data relating thereto.

 

10.       Employee
obligations under this Agreement shall survive the termination of Employee’s employment with the Company regardless of the
manner of, and reason for, such termination, and shall be binding upon Employee’s heirs, executors, and administrators.

 

11.       Prior
to entering the employ of the Company, Employee has lawfully terminated employment with all previous employers. Employee acknowledges
that this Agreement does not constitute a contract of employment for a term and does not otherwise imply that the Company will
continue his or her employment for any period of time.

 

12.       As
a matter of record, Employee has identified in Exhibit B, appended to this Agreement, all Intellectual Property relevant to the
subject matter of Employee’s employment with the Company, which has been made or conceived or first reduced to practice by
Employee alone or jointly with others prior to Employee’s employment with the Company, which Employee desires to exclude
from Employee’s obligations under this Agreement; and Employee represents that such list is complete. If there is no such
list set forth in Exhibit B, Employee represents that Employee has no such Intellectual Property at the time of execution of this
Agreement.

 

13.       No
delay or omission by the Company in exercising any right under this Agreement will operate as a waiver of that or any other right.
A waiver or consent given by the Company on any one occasion is effective only in that instance and will not be construed as a
bar to or waiver of any right on any other occasion.

 

14.       Employee
agrees that in addition to any other rights and remedies available to the Company for any breach or threatened breach by Employee
of Employee’s obligations hereunder, the Company shall be entitled to enforcement of Employee’s obligations hereunder
by whatever means are at the Company’s disposal, including court injunction. In the event of any such breach or threatened
breach by Employee, the Company shall be entitled to recover all of its reasonably incurred costs and attorney’s fees in
enforcing its rights hereunder.

 

15.       The
Company may assign this Agreement to any other corporation or entity which acquires (whether by purchase, merger, consolidation
or otherwise) all or substantially all of the business and/or assets of the Company. Employee shall have no rights of assignment.

 

     

     

    

 

16.       If
any provision of this Agreement shall be declared invalid, illegal, or unenforceable, then such provision shall be enforceable
to the extent that a court deems it reasonable to enforce such provision. If such provision shall be unreasonable to enforce to
any extent, such provision shall be severed and all remaining provisions shall continue in full force and effect.

 

 17.       Employee hereby acknowledges receipt of the Company’s Confidentiality Policy.

 

18.       This
Agreement shall be effective as of the date set forth below next to Employee’s signature.

 

19.       This
Agreement and the employment offer letter constitute the entire contract between the parties hereto with regard to the subject
matter hereof. They supersede any other agreements, representations or understandings (whether oral or written and whether express
or implied) which relate to the subject matter hereof.

 

20.       This
Agreement shall be governed in all respects by the laws of the State of Delaware. Each of the Company and Employee (a) hereby irrevocably
submits to the exclusive jurisdiction of the state courts of the State of Delaware or the United States District Court located
in the State of Delaware for the purpose of any action between the Company and Employee arising in whole or in part under or in
connection with this Agreement, (b) hereby waives, to the extent not prohibited by applicable law, and agrees not to assert, by
way of motion, as a defense or otherwise, in any such action, any claim that it is not subject personally to the jurisdiction of
the above-named courts, that its property is exempt or immune from attachment or execution, that any such action brought in one
of the above-named courts should be dismissed on grounds of forum non conveniens, should be transferred or removed to any
court other than one of the above-named courts, or should be stayed by reason of the pendency of some other proceeding in any other
court other than one of the above-named courts, or that this Agreement or the subject matter hereof may not be enforced in or by
such court, and (c) hereby agrees not to commence any such action other than before one of the above-named courts. Notwithstanding
the previous sentence, the Company or Employee may commence any action in a court other than the above-named courts solely for
the purpose of enforcing an order or judgment issued by one of the above-named courts.

 

IN
WITNESS WHEREOF, Employee has executed this Agreement under seal as of the date set forth above:

 

ACCEPTED AND AGREED TO BY THE

 

	COMPANY: 	 	EMPLOYEE:	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	By:	              	 	By:	                 	 
	Name: Joao Siffert	 	Name: 	 
	Title: CEO

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