Document:

EXHIBIT 10.2

 

EXHIBIT 10.2

 

IMPRIMIS PHARMACEUTICALS, INC.

AMENDED AND RESTATED 2007 INCENTIVE
STOCK AND AWARDS PLAN

 

PERFORMANCE STOCK UNITS AGREEMENT

 

Effective as of
February 1, 2015 (the “Grant Date”), Imprimis Pharmaceuticals, Inc., a Delaware corporation (the “Company”),
has awarded to Andrew R. Boll (“Grantee”) a targeted number of 157,500 Performance Stock Units (the “Performance
Stock Units” or “Award”) to be calculated and determined as discussed below. Each Performance Stock Unit will
represent an unfunded and unsecured promise of the Company to deliver shares of common stock, par value $0.01 per share, of the
Company (the “Shares”) to Grantee as set forth herein. Each Performance Stock Unit will be subject to forfeiture until
the date such Performance Stock Unit vests pursuant to Section 1 of this Performance Stock Units Agreement (this “Agreement”).
The Performance Stock Units have been granted pursuant to the Imprimis Pharmaceuticals, Inc. Amended and Restated 2007 Incentive
Stock and Awards Plan (the “Plan”), and shall be subject to all provisions of the Plan, which are incorporated herein
by reference, and of this Agreement. Capitalized terms used in this Agreement that are not specifically defined will have the meanings
ascribed to such terms in the Plan.

 

1.Vesting.
The Performance Stock Units consist of the following five tranches (each, a “Tranche”) that vest upon the attainment
of the target share price (the “Target Share Price”) as specified below:

 

	Tranche	 	No. of Shares	 	Target Share Price
	Tranche 1	 	30,000 Performance Stock Units	 	$10.00 or greater
	Tranche 2	 	30,000 Performance Stock Units	 	$15.00 or greater
	Tranche 3	 	30,000 Performance Stock Units	 	$20.00 or greater
	Tranche 4	 	30,000 Performance Stock Units	 	$25.00 or greater
	Tranche 5	 	37,500 Performance Stock Units	 	$30.00 or greater

 

Each Tranche may
only vest once. Except as otherwise specified below, for each respective Tranche to vest, all three of the following conditions
must be met:

 

(a) a Trigger Date
may occur any time after the Grant Date. A “Trigger Date” means any trading day on which the official closing price
per Share (the “Closing Price”) is at or above the Target Share Price for the respective Tranche. Notwithstanding the
foregoing, the Committee will, in such manner as the Committee determines is appropriate in its discretion, include the value of
stock dividends distributed to the stockholders of the Company in connection with spin-offs or similar transactions for purposes
of determining whether the Target Share Price has been achieved;

 

(b)during the
period that includes the Trigger Date and the immediately following 19 trading days (each, a “Measurement Period”),
the arithmetic mean of the 20 Closing Prices during the Measurement Period must be at or above the Target Share Price for such
Tranche (the “20 Closing Price Condition”); and

 

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(c)the Grantee
must be in continuous service with the Company and its Affiliates through the third anniversary of the Grant Date (the “Service
Condition”).

 

To the extent all
three of the above conditions are met, the third anniversary of the Grant Date shall be the “Vesting Date.” If the
Grantee’s employment is terminated as a result of death or by the Company due to the Grantee’s Disability, in each
case before the third anniversary of the Grant Date, then all Tranches for which a Trigger Date has occurred and the 20 Closing
Price Condition has been satisfied on or before the date of termination but which are not vested solely because the Service Condition
has not been satisfied shall vest, and the date of termination shall be the Vesting Date. If the Grantee’s employment is
terminated by the Company without Cause (as defined in his Amended and Restated Employment Agreement with the Company effective
as of February 1, 2015 (the “Employment Agreement”)), or by the Grantee for Good Reason (as defined in his Employment
Agreement), in each case before the third anniversary of the Grant Date, then (i) all Tranches for which a Trigger Date has occurred
and the 20 Closing Price Condition has been satisfied on or before the date of termination but which are not vested solely because
the Service Condition has not been satisfied shall vest, and the date of termination shall be the Vesting Date; and (ii) all Tranches
for which a Trigger Date occurs and the 20 Closing Price Condition has been satisfied on or after the date of termination but on
or before the first anniversary of the date of termination and with respect to which the Grantee would have vested had he satisfied
the Service Condition shall vest on the date on which both the Trigger Date occurs and the 20 Closing Price Condition has been
satisfied and such date shall be the Vesting Date; provided, in each case, that the Grantee executes and delivers to the Company
the Severance Release (as defined in the Employment Agreement) within sixty (60) days following the date of termination, without
revocation or modification; provided, further, that if a Change of Control has occurred prior to such termination, the subsequent
sentence shall govern; provided, further, that in no event shall the Vesting Date or a Trigger Date extend beyond the third anniversary
of the Grant Date. Notwithstanding anything to the contrary in the Employment Agreement (including, without limitation, Section
6(c) thereof), if, after the first anniversary but before the third anniversary of the Grant Date, the Grantee’s employment
is terminated by the Company or its successor without Cause (as defined in the Employment Agreement) or by the Grantee for Good
Reason (as defined in the Employment Agreement), in either case on or within twelve (12) months after a Change of Control (as defined
in the Employment Agreement), then the following Tranches shall vest, and the date of termination shall be the Vesting Date: (A)
all Tranches for which a Trigger Date has occurred and the 20 Closing Price Condition has been satisfied on or immediately before
the Change of Control but which are not vested solely because the Grantee has not satisfied the Service Condition; and (B) all
other Tranches with a Target Share Price at or below the per-Share transaction consideration received by stockholders of the Company
upon the Change of Control (as determined in accordance with the terms and conditions of the applicable definitive agreement that
results in the Change of Control); provided that the Grantee executes and delivers to the Company the Severance Release (as defined
in the Employment Agreement) within sixty (60) days following the date of termination, without revocation or modification; provided,
further, that in no event shall the Vesting Date or a Trigger Date extend beyond the third anniversary of the Grant Date. Any Tranche
that has not vested by the third anniversary of the Grant Date shall expire.

 

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2.Transferability.
The Performance Stock Units shall not be transferable.

 

3.Termination
of Employment. Except as set forth in Section 1, if a termination of employment of Grantee occurs prior to the vesting in full
of the Performance Stock Units, any unvested portion of such Performance Stock Units shall be forfeited by Grantee.

 

4.Triggering
Conduct. As used in this Agreement, “Triggering Conduct” shall mean Grantee’s material breach of any provision
of Section 7 of the Employment Agreement or Grantee’s breach of any provision of Grantee’s Proprietary Information
Agreement (as defined in the Employment Agreement).

 

5.Special
Forfeiture/Repayment Rules. For so long as Grantee continues as an employee with the Company or any of its affiliates and for
one (1) year following termination of employment regardless of the reason, Grantee agrees not to engage in Triggering Conduct.
If Grantee engages in Triggering Conduct during the time period set forth in the preceding sentence, then Grantee shall, within
thirty (30) days following written notice from the Company, pay to the Company an amount equal to (x) the aggregate gross gain
realized or obtained by Grantee resulting from the settlement of all Performance Stock Units pursuant to Section  6
hereof (measured as of the settlement date (i.e., the market value of the Performance Stock Units on such settlement date)) that
have already been settled and that had vested at any time within three years prior to the Triggering Conduct (the “Look-Back
Period”), minus (y) $1.00. Grantee may be released from Grantee’s obligations under this Section  5
if and only if the Committee (or its duly appointed designee) authorizes, in writing and in its sole discretion, such release.
The parties acknowledge and agree that nothing in this Section  5
constitutes a so-called “non-compete” covenant. This Section  5
does, however, prohibit certain conduct while Grantee is associated with the Company or any of its affiliates and thereafter and
does provide for the forfeiture or repayment of the benefits granted by this Agreement under certain circumstances. No provisions
of this Agreement shall diminish, negate or otherwise impact any separate agreement to which Grantee may be a party, including,
without limitation, any certificate of compliance or similar attestation/certification signed by Grantee; provided, however, that
to the extent that any provisions contained in any other agreement are inconsistent in any manner with the restrictions and covenants
of Grantee contained in this Agreement, the provisions of this Agreement shall take precedence and such other inconsistent provisions
shall be null and void as to this Agreement. Grantee acknowledges and agrees that the restrictions contained in this Agreement
are being made for the benefit of the Company in consideration of Grantee’s receipt of the Performance Stock Units, in consideration
of employment, in consideration of exposing Grantee to the Company’s business operations and confidential information, and
for other good and valuable consideration, the adequacy of which consideration is hereby expressly confirmed. Grantee further acknowledges
that the receipt of the Performance Stock Units and execution of this Agreement are voluntary actions on the part of Grantee and
that the Company is unwilling to provide the Performance Stock Units to Grantee without including the restrictions and covenants
of Grantee contained in this Agreement. Further, the parties agree and acknowledge that the provisions contained in Sections 
4 and  5 are
ancillary to, or part of, an otherwise enforceable agreement at the time the agreement is made. 

 

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6.Payment.
Subject to the provisions of Sections  4 and  5
of this Agreement, and unless Grantee makes an effective election to defer receipt of the Shares represented by the Performance
Stock Units, on the Vesting Date, Grantee shall be entitled to receive from the Company (without any payment on behalf of Grantee
other than as described in Section  10) the Shares represented by
such Performance Stock Units; provided, however, that where the vesting of any Performance Stock Unit occurs in connection with
Grantee’s termination without Cause, termination for Good Reason or termination due to Disability, Section 409A of the Code
applies to the distribution in connection with such acceleration and Grantee is a “specified employee” (determined
in accordance with Section 409A of the Code), Grantee shall be entitled to receive the corresponding Shares from the Company on
the date that is the first day of the seventh (7th) month after Grantee’s “separation from service”
with the Company (determined in accordance with Section 409A of the Code). Elections to defer receipt of the Shares beyond the
date of settlement provided herein may be permitted in the discretion of the Committee pursuant to procedures established by the
Committee in compliance with the requirements of Section 409A of the Code. 

 

7.Dividend
Equivalents. Grantee shall not be entitled to receive any cash dividends on the Performance Stock Units. However, to the extent
the Company determines to pay a cash dividend to holders of the Shares, Grantee shall, with respect to each Performance Stock Unit,
be entitled to receive a cash payment from the Company on each cash dividend payment date with respect to the Shares with a record
date between the Grant Date and the settlement of such Performance Stock Unit pursuant to Section  6
hereof, such cash payment to be in an amount equal to the dividend that would have been paid on the Shares represented by such
Performance Stock Unit. Cash payments on each cash dividend payment date with respect to the Shares with a record date prior to
a Vesting Date shall be accrued until the Vesting Date and paid thereon (subject to the same vesting requirements as the underlying
Performance Stock Units). Elections to defer receipt of the cash payments in lieu of cash dividends beyond the date of settlement
provided herein may be permitted in the discretion of the Committee pursuant to procedures established by the Company in compliance
with the requirements of Section 409A of the Code.

 

8.Right of
Set-Off. By accepting these Performance Stock Units, Grantee consents to a deduction from, and set-off against, any amounts
owed to Grantee that are not treated as “non-qualified deferred compensation” under Section 409A of the Code by the
Company or any of its affiliates from time to time (including, but not limited to, amounts owed to Grantee as wages, severance
payments or other fringe benefits) to the extent of the amounts owed by Grantee to the Company or any of its affiliates under this
Agreement.

 

9.No Stockholder
Rights. Grantee shall have no rights of a stockholder with respect to the Performance Stock Units, including, without limitation,
any right to vote the Shares represented by the Performance Stock Units.

 

10.Withholding
Tax.

 

(a)Generally.
Grantee is liable and responsible for all taxes owed in connection with the Performance Stock Units (including taxes owed with
respect to any cash payments described in Section 7 hereof), regardless of any action the Company takes with respect to any tax
withholding obligations that arise in connection with the Performance Stock Units. The Company does not make any representation
or undertaking regarding the tax treatment or the treatment of any tax withholding in connection with the grant or vesting of the
Performance Stock Units or the subsequent sale of Shares issuable upon settlement of the Performance Stock Units. The Company does
not commit and is under no obligation to structure the Performance Stock Units to reduce or eliminate Grantee’s tax liability.

 

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(b)Payment
of Withholding Taxes. Prior to any event in connection with the Performance Stock Units (e.g., vesting or settlement) that
the Company determines may result in any domestic or foreign tax withholding obligation, whether national, federal, state or local,
including any employment tax obligation (the “Tax Withholding Obligation”), Grantee is required to arrange for the
satisfaction of the minimum amount of such Tax Withholding Obligation in a manner acceptable to the Company.

 

(i)By Share
Withholding. Unless Grantee elects to satisfy the Tax Withholding Obligation pursuant to Sections 10(b)(ii) or 10(b)(iii),
Grantee’s acceptance of this Agreement constitutes Grantee’s instruction and authorization to the Company to retain
on Grantee’s behalf the number of Shares from those Shares issuable to Grantee under the Award as the Company determines
to be sufficient to satisfy the Tax Withholding Obligation as owed when any such obligation becomes due. The value of any Shares
retained for such purposes shall be based on the Fair Market Value, as the term is defined in the Plan, of the Shares on the date
of vesting of the Performance Stock Units. To the extent that the Company retains any Shares to cover the Tax Withholding Obligation,
it will do so at the minimum statutory rate, but in no event shall such amount exceed the minimum required by applicable law and
regulations.

 

(ii)By Sale
of Shares. No later than five (5) business days prior to a Vesting Date, Grantee may instruct and authorize the Company and
any brokerage firm determined acceptable to the Company for such purpose to sell on Grantee’s behalf a whole number of Shares
from those Shares issuable to Grantee as the Company determines to be appropriate to generate cash proceeds sufficient to satisfy
the minimum applicable Tax Withholding Obligation. Such Shares will be sold on the day such Tax Withholding Obligation arises (e.g.,
a vesting date) or as soon thereafter as practicable. Grantee will be responsible for all broker’s fees and other costs of
sale, and Grantee agrees to indemnify and hold the Company harmless from any losses, costs, damages, or expenses relating to any
such sale. To the extent the proceeds of such sale exceed Grantee’s minimum Tax Withholding Obligation, the Company agrees
to pay such excess in cash to Grantee. Grantee acknowledges that the Company or its designee is under no obligation to arrange
for such sale at any particular price, and that the proceeds of any such sale may not be sufficient to satisfy Grantee’s
minimum Tax Withholding Obligation. Accordingly, Grantee agrees to pay to the Company or any Subsidiary as soon as practicable,
including through additional payroll withholding, any amount of the Tax Withholding Obligation that is not satisfied by the sale
of Shares described herein.

 

(iii)By Check,
Wire Transfer or Other Means. No later than five (5) business days prior to a Vesting Date, Grantee may elect to satisfy Grantee’s
Tax Withholding Obligation by delivering to the Company an amount that the Company determines is sufficient to satisfy the Tax
Withholding Obligation by (x) wire transfer to such account as the Company may direct, (y) delivery of a certified check payable
to the Company, or (z) such other means as specified from time to time by the Administrator.

 

(iv)Notwithstanding
anything to the contrary set forth above, the Company shall have the right to deduct from all cash payments paid pursuant to Section
7 hereof the amount of any taxes which the Company is required to withhold with respect to such payments.

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11.Governing
Law/Venue for Dispute Resolution. This Agreement shall be governed by the laws of the State of Delaware, without regard to
principles of conflicts of law, except to the extent superseded by the laws of the United States of America. The parties agree
and acknowledge that the laws of the State of Delaware bear a substantial relationship to the parties and/or this Agreement and
that the Performance Stock Units and benefits granted herein would not be granted without the governance of this Agreement by the
laws of the State of Delaware. In addition, all disputes relating to this Agreement shall be resolved exclusively pursuant to the
terms of Section 8 of the Employment Agreement.

 

12.Action
by the Committee. The parties agree that the interpretation of this Agreement shall rest exclusively and completely within
the sole discretion of the Committee. The parties agree to be bound by the decisions of the Committee with regard to the interpretation
of this Agreement and with regard to any and all matters set forth in this Agreement. The Committee may delegate its functions
under this Agreement to an officer of the Company designated by the Committee (hereinafter the “designee”). In fulfilling
its responsibilities hereunder, the Committee or its designee may rely upon documents, written statements of the parties or such
other material as the Committee or its designee deems appropriate. The parties agree that there is no right to be heard or to appear
before the Committee or its designee and that any decision of the Committee or its designee relating to this Agreement, including,
without limitation, whether particular conduct constitutes Triggering Conduct, shall be final and binding unless such decision
is arbitrary and capricious.

 

13.Prompt
Acceptance of Agreement. The Performance Stock Unit award evidenced by this Agreement shall, at the discretion of the Committee,
be forfeited if this Agreement is not manually executed and returned to the Company, or electronically executed by Grantee by indicating
Grantee’s acceptance of this Agreement in accordance with the Company’s applicable acceptance procedures, within ninety
(90) days after the Grant Date.

 

14.Electronic
Delivery and Consent to Electronic Participation. The Company may, in its sole discretion, decide to deliver any documents
related to the Performance Stock Unit grant under and participation in the Plan or future Performance Stock Units that may be granted
under the Plan by electronic means. Grantee hereby consents to receive such documents by electronic delivery and to participate
in the Plan through an on-line or electronic system established and maintained by the Company or another third party designated
by the Company, including the acceptance of this Performance Stock Unit award and the execution of this Agreement through electronic
signature.

 

15.Notices.
All notices, requests, consents and other communications required or provided under this Agreement to be delivered by Grantee to
the Company will be in writing and will be deemed sufficient if delivered by hand, facsimile, nationally recognized overnight courier,
or certified or registered mail, return receipt requested, postage prepaid, and will be effective upon delivery to the Company
at the address set forth below:

 

Imprimis Pharmaceuticals, Inc.

12264 El Camino Real, Suite
350

San Diego, CA 92130

Attention: Chief Executive Officer

Facsimile: 858-345-1745

 

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All notices, requests,
consents and other communications required or provided under this Agreement to be delivered by the Company to Grantee may be delivered
by e-mail or in writing and will be deemed sufficient if delivered by e-mail, hand, facsimile, nationally recognized overnight
courier, or certified or registered mail, return receipt requested, postage prepaid, and will be effective upon delivery to the
Grantee at the address set forth on the Grantee’s acceptance of this Agreement or such other address provided by the Grantee
to the Company pursuant to this Section 15.

 

* * * * *

 

IN WITNESS WHEREOF,
the Company and the Grantee have executed this Notice and agree that the Award is to be governed by the terms and conditions of
this Notice, the Plan, and the Agreement.

 

IMPRIMIS PHARMACEUTICALS, INC.

a Delaware corporation

 

	By:	/S/
    Mark L. Baum	 
	Its:	Chief Executive Officer	 
	Date:	2/1/2015	 

 

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ACCEPTANCE OF AGREEMENT

 

Grantee, Andrew
R. Boll, hereby: (a) acknowledges receiving a copy of the Plan, which has either been previously delivered or is provided with
this Agreement, and represents that he or she is familiar with and understands all provisions of the Plan and this Agreement; and
(b) voluntarily and knowingly accepts this Agreement and the Performance Stock Units granted to him under this Agreement subject
to all provisions of the Plan and this Agreement, including, without limitation, the provisions in the Agreement regarding “Triggering
Conduct” and “Special Forfeiture/Repayment Rules” set forth in Sections 4 and 5 of this Agreement. Grantee further
acknowledges receiving a copy of the Company’s most recent annual report to stockholders and other communications routinely
distributed to the Company’s stockholders and a copy of the Prospectus pertaining to the Plan.

 

	/S/
    Andrew R. Boll	 
	Grantee’s Signature	 
	 	 
	2/1/2015	 
	Date	 
	 	 
	Address	 
	 	 
	City, Sate & Zip	 
	 	 
	Email Address	 
	 	 
	Facsimile Number	 

 

    	8EXHIBIT 10.3

 

EXHIBIT
10.3

 

IMPRIMIS
PHARMACEUTICALS, INC.

 

EMPLOYMENT
AGREEMENT

 

This
EMPLOYMENT AGREEMENT (the “Agreement”) is entered into effective as of February 1, 2015 (the “Effective Date”),
by and between Imprimis Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and John P. Saharek (“Executive”).
The parties hereby agree as follows:

 

1.Term.
The Company hereby agrees to employ Executive, and Executive hereby agrees to be employed by the Company, upon the terms and
subject to the conditions set forth in this Agreement. The initial period of Executive’s employment under the terms of this
Agreement shall begin as of the Effective Date and shall continue until the third anniversary of the Effective Date, unless sooner
terminated in accordance with Section 5 or extended by a written instrument executed by Executive and the Company. After the end
of such initial three (3)-year period, this Agreement shall automatically be renewed for successive one (1)-month periods unless
either party provides to the other party written notice of non-renewal at least twenty (20) calendar days prior to the end of
the then current employment period (such initial three (3)-year period and any such monthly renewal period(s), the “Term”).

 

2.Duties.

 

(a)Position.
Executive shall serve as the Company’s Chief Commercial Officer and shall perform such duties and have such responsibilities
as are customarily performed by a person holding such position and such other duties as may be determined from time to time by
the Company’s Chief Executive Officer and/or the Company’s Board of Directors (or a committee thereof). Executive
shall perform faithfully, cooperatively and diligently all of his job duties and responsibilities and agrees to and shall devote
his full time, attention and effort to the business of the Company and other assignments as directed by the Company’s Chief
Executive Officer and/or the Company’s Board of Directors (or a committee thereof). Executive will report to the Company’s
Chief Executive Officer.

 

(b)Best
Efforts. Executive will expend his best efforts on behalf of the Company in connection with his employment and will abide
by all of the Company’s applicable employment policies and decisions made by Company’s Board of Directors (or a committee
thereof), as well as all applicable federal, state and local laws, regulations or ordinances.

 

(c)Other
Activities. Except upon the prior written consent of the Company, Executive will not, during the term of this Agreement, (i)
accept any other employment, or (ii) engage, directly or indirectly, in any other business activity (whether or not pursued for
pecuniary advantage) that might interfere with Executive’s duties and responsibilities hereunder or create a conflict of
interest with the Company.

 

(d)No
Conflict. Executive represents and warrants that Executive’s execution of this Agreement, Executive’s employment
with the Company, and the performance of Executive’s duties under this Agreement shall not violate any obligations Executive
may have to any other employer, person or entity, including any obligations with respect to proprietary or confidential information
of any other person or entity.

 

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3.Compensation
and Benefits. 

 

(a)Annual
Base Salary. As compensation for Executive’s performance of his duties hereunder, the Company shall pay to Executive
an initial annual base salary of Two Hundred Twenty Thousand Dollars ($220,000), effective as of the Effective Date (the “Annual
Base Salary”), payable in accordance with the normal payroll practices of Company, less required deductions for state and
federal withholding tax, social security and all other employment taxes and payroll deductions. Executive’s Annual Base
Salary will be reviewed from time to time and at least annually by the Company’s Board of Directors (or a committee thereof),
with such input as it may request from the Company’s Chief Executive Officer, and otherwise in accordance with the established
procedures of the Company for adjusting salaries for similarly situated employees.

 

(b)Annual
Cash Bonus. Executive shall be eligible, at the sole discretion of the Board of Directors of the Company (or any committee
thereof), to receive an annual cash bonus, with his target bonus set at fifty percent (50%) of his then-current Annual Base Salary
(the “Annual Bonus”). The actual amount of the Annual Bonus will be determined by the Company’s Board of Directors
(or a committee thereof) based on Executive’s achievement of Company and personal goals established by the Company. If awarded,
the Annual Bonus will be paid on or before March 15 of the year following the year in which the Annual Bonus was earned.

 

(c)Initial
Equity Awards. Subject to approval by the Company’s Board of Directors (or a committee thereof), Executive shall be
eligible to receive (i) a non-qualified stock option award for up to 90,000 shares of the Company’s common stock (the “Initial
Option”), and (ii) a restricted stock unit award for up to 30,000 shares of the Company’s common stock (the “Initial
RSU”), in each case in accordance with the Company’s Amended and Restated 2007 Incentive Stock and Awards Plan (as
amended, the “Plan”). The Initial Option and the Initial RSU shall be evidenced by the award agreements attached hereto
as Exhibit A and Exhibit B, respectively, and shall be governed by the terms, provisions and definitions of such respective award
agreements and the Plan.

 

(d)Benefits.
Executive shall be eligible to participate in all of the Company’s employee benefit plans as in effect from time to
time and subject to the terms and conditions thereof, consistent with an employee of Executive’s position.

 

(e)Business
Expenses. The Company shall reimburse Executive for reasonable out-of-pocket business expenses incurred in the performance
of Executive’s duties hereunder, provided that such expenses are incurred for business reasons and Executive timely provides
to the Company, in form and substance reasonably satisfactory to the Company, reasonable documentation evidencing such expenses.

 

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(f)Vacation.
Executive shall be entitled to paid vacation, personal and sick days each calendar year in accordance with the Company’s
applicable plans, policies and programs then in effect. Initially Executive shall be entitled to four (4) weeks of paid vacation
per calendar year, subject to the Company’s applicable vacation policies and practices that may be in effect from time to
time (including, without limitation, any policies concerning vacation accruals and caps).

 

(g)Clawback
Policy. Notwithstanding anything to the contrary in this Agreement, all incentive-based compensation payable hereunder shall
be subject to any clawback policy adopted by the Company from time to time.

 

4.Indemnification.
In connection with the execution of the Agreement, the Company and Executive shall enter into a customary indemnification
agreement, unless the Company and Executive are already a party to such an agreement as of the Effective Date, in which case such
agreement shall continue to apply for the term of Executive’s Employment under the terms of this Agreement.

 

5.Termination
of Employment. During the Term, Executive’s employment may be terminated by either party without any breach of this
Agreement only under the circumstances set forth in this Section 5. Any termination of Executive’s employment during the
Term of this Agreement, other than by reason of Executive’s death, shall be communicated by a written notice of termination
to the other party delivered in accordance with the terms of this Agreement, describing in reasonable detail the reason for such
termination and specifying the effective date of such termination. Upon and after any termination of Executive’s employment,
all obligations of the Company under this Agreement shall cease in their entirety, except as otherwise expressly set forth herein.

 

(a)Executive’s
Death. Executive’s employment shall terminate automatically upon Executive’s death.

 

(b)Executive’s
Disability. If during the Term Executive becomes eligible for the Company’s long-term disability benefits or the Company
determines that Executive is unable to carry out the responsibilities and functions of the position held by Executive by reason
of any physical or mental impairment for more than ninety (90) consecutive days or more than one hundred twenty (120) days in
any twelve (12)-month period, then, to the extent permitted by law (each, a “Disability”), the Company may deliver
to Executive written notice of the Company’s termination of Executive’s employment by reason of such Disability. In
such event, Executive’s employment with the Company shall terminate effective on the thirtieth (30th) day after
receipt of such notice by Executive if, within such thirty (30)-day period, Executive shall not have returned to full-time performance
of Executive’s duties hereunder with or without a reasonable accommodation. Nothing in this Section 5(b) shall affect Executive’s
rights under any disability plan in which Executive is a participant.

 

(c)Termination
for Cause. The Company may terminate Executive’s employment for Cause at any time during the Term upon delivery of written
notice thereof. For purposes of this Agreement, “Cause” shall mean: (i) Executive commits a crime involving dishonesty,
breach of trust, or physical harm to any person; (ii) Executive willfully engages in conduct that is in bad faith and materially
injurious to the Company, including, without limitation, misappropriation of trade secrets, fraud or embezzlement; (iii) Executive
commits a material breach of this Agreement, which breach is not cured within twenty (20) calendar days after written notice thereof
to Executive from the Company; (iv) Executive willfully refuses to implement or follow a lawful policy or directive of the Company,
which breach is not cured within twenty (20) calendar days after written notice thereof to Executive from the Company; or (v)
Executive engages in misfeasance or malfeasance demonstrated by a pattern of failure to perform job duties diligently and professionally.

 

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(d)Termination
for Good Reason. Executive may terminate his employment with the Company for Good Reason at any time during the Term, subject
to the notice and other requirements set forth in this Section 5(d). For purposes of this Agreement, “Good Reason”
shall mean the occurrence of any of the following without Executive’s prior written consent: (i) a material reduction in
Executive’s Annual Base Salary; (ii) the relocation of Executive to a facility or location that is more than fifty (50)
miles from his primary place of employment and such relocation results in an increase in Executive’s one-way driving distance
by more than fifty (50) miles; or (iii) a material and adverse change in Executive’s authority, duties, or responsibilities
with the Company or a material and adverse change in Executive’s reporting relationship, in each case other than any isolated,
insubstantial and inadvertent failure by the Company that is not in bad faith and is cured within ten (10) business days after
Executive gives the Company notice of such event, which must be given within ninety (90) calendar days after the event giving
rise to the claim of Good Reason occurs Executive’s continued employment shall not constitute consent to, or a waiver of
rights with respect to, any act or failure to act constituting Good Reason hereunder; provided, however, that no event described
above shall constitute Good Reason unless (A) Executive gives notice of termination to the Company specifying the condition or
event relied upon for such termination within ninety (90) calendar days of the initial existence of such event, and (B) the Company
fails to cure the condition or event constituting Good Reason within thirty (30) days following receipt of Executive’s notice
of termination (the “Cure Period”). If the Company fails to remedy the condition or event constituting Good Reason
during the applicable Cure Period, Executive’s “separation from service” (within the meaning of Section 409A
of the Internal Revenue Code of 1986, as amended (together with the Treasury regulations and guidance issued thereunder, the “Code”))
must occur, if at all, within ninety (90) days following such Cure Period in order for such termination as a result of such condition
or event to constitute a termination for Good Reason.

 

(e)Termination
without Cause or without Good Reason. The Company may terminate Executive’s employment without Cause, or Executive may
terminate his employment without Good Reason, at any time during the Term upon delivery of written notice thereof not less than
thirty (30) calendar days prior to the date of such termination. During such thirty (30)-calendar day notice period, Executive
shall continue to diligently perform all of Executive’s duties hereunder. For purposes of this Agreement, including without
limitation Section 6, a termination due to Executive’s death or Executive’s Disability shall not be deemed a termination
by the Company without Cause.

 

(f)Expiration
of Agreement. Executive’s employment under this Agreement shall terminate upon expiration of this Agreement as set forth
in Section 1 (which, for purposes of clarity, shall include expiration in connection with the non-renewal of this Agreement).
For purposes of this Agreement, including without limitation Section 6, a termination due to expiration of this Agreement shall
not be deemed a termination by the Company without Cause or a termination by Executive for Good Reason.

 

    	4

    	 

    

 

6.Compensation
after Termination of Employment.

 

(a)Any
Termination. Upon any termination of Executive’s employment under this Agreement, Executive (or such payee as Executive
designates in writing or Executive’s estate) shall be entitled to receive (i) any amount of Executive’s Annual Base
Salary for services rendered to the date of termination and any accrued but unpaid expenses required to be reimbursed under the
terms of this Agreement, subject to any other rights or remedies of the Company under applicable law, and (ii) any other compensation
or benefits (including retirement or deferred compensation benefits) to which Executive may be entitled at the time of termination,
determined and paid in accordance with the terms of such plans, policies, and arrangements providing such compensation or benefits.
Except as expressly provided in this Agreement, Executive shall have no right to receive any other compensation, or to participate
in any other plan, arrangement, or benefit, with respect to future periods after any such termination.

 

(b)Termination
by the Company without Cause or by Executive for Good Reason Other Than in Connection with a Change of Control. In the event
that the Company terminates Executive’s employment without Cause or Executive terminates his employment for Good Reason
(any such termination, a “Qualifying Termination”) and such termination is not in connection with a Change of Control
as described in Section 6(c), subject to Section 6(e) and Executive’s continued compliance with Sections 6(g), 7 and 9,
Executive shall be eligible to receive from the Company continued payment of Executive’s then-current Annual Base Salary
for a period of six (6) months following the date of his termination (“Severance”). The Severance described herein
shall be subject to required deductions for state and federal withholding tax, social security and all other employment taxes
and payroll deductions and paid in accordance with the Company’s standard payroll practice.

 

(c)Termination
by the Company without Cause or by Executive for Good Reason in Connection with a Change of Control. In the event of a Qualifying
Termination on or within twelve (12) months after a Change of Control, subject to Section 6(e) and Executive’s continued
compliance with Sections 6(g), 7 and 9, (i) Executive shall be eligible to receive Severance from the Company as described in
Section 6(b) except that (i) in lieu of the payments under clause (i) of Section 6(b), Executive shall be eligible to receive
from the Company continued payment of Executive’s then-current Annual Base Salary for a period of twelve (12) months following
the date of his termination (and such continued payments shall be considered Severance for purposes of this Agreement), and (ii)
all outstanding and unvested equity awards held by Executive as of the date of such termination shall, on the date of such termination,
become fully vested and exercisable, in accordance with the terms of the award agreements governing such equity awards. For purposes
of this Agreement, a “Change of Control” shall be deemed to occur if (i) a tender offer (or series of related offers)
shall be made and consummated for the ownership of fifty percent (50%) or more of the outstanding voting securities of the Company,
unless as a result of such tender offer more than fifty percent (50%) of the outstanding voting securities of the surviving or
resulting corporation shall be owned in the aggregate by the stockholders of the Company (as of the time immediately prior to
the commencement of such offer), any employee benefit plan of the Company or its subsidiaries and their respective affiliates;

 

    	5

    	 

    

 

(ii)
the Company shall be merged or consolidated with another corporation, unless as a result of such merger or consolidation more
than fifty percent (50%) of the outstanding voting securities of the surviving or resulting corporation shall be owned in the
aggregate by the stockholders of the Company (as of the time immediately prior to such transaction), any employee benefit plan
of the Company or its subsidiaries and their respective affiliates; (iii) the Company shall sell substantially all of its assets
to another corporation that is not wholly owned by the Company, unless as a result of such sale more than fifty percent (50%)
of such assets shall be owned in the aggregate by the stockholders of the Company (as of the time immediately prior to such transaction),
any employee benefit plan of the Company or its subsidiaries and their respective affiliates; or (iv) a Person (as defined below)
shall acquire fifty percent (50%) or more of the outstanding voting securities of the Company (whether directly, indirectly, beneficially
or of record), unless as a result of such acquisition more than fifty percent (50%) of the outstanding voting securities of the
surviving or resulting corporation shall be owned in the aggregate by the stockholders of the Company (as of the time immediately
prior to the first acquisition of such securities by such Person), any employee benefit plan of the Company or its subsidiaries
and their respective affiliates. For purposes of determining whether a Change of Control has occured, (A) ownership of voting
securities shall take into account and shall include ownership as determined by applying the provisions of Rule 13d-3(d)(I)(i)
(as in effect on the date hereof) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and
(B) “Person” shall have the meaning given to it in Section 3(a)(9) of the Exchange Act, as modified and used in Sections
13(d) and 14(d) thereof; provided, however, that a Person shall not include (1) the Company or any of its subsidiaries; (2) a
trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its subsidiaries; (3) an
underwriter temporarily holding securities pursuant to an offering of such securities; or (4) a corporation owned, directly or
indirectly, by the stockholders of the Company in substantially the same proportion as their ownership of stock of the Company.

 

(d)Termination
by Death or Disability, by the Company for Cause or by Executive without Good Reason. Except as expressly provided in Section
6(a), Executive shall not be entitled to any Severance or any other compensation or payments if Executive’s employment is
terminated at any time by death or Disability, by the Company for Cause or by Executive without Good Reason.

 

(e)Release.
The Company’s payment of any Severance pursuant to this Section 6 shall be subject to Executive timely signing and not
revoking a customary release of all claims in a form reasonably satisfactory to the Company (the “Severance Release”).
To be timely, the Severance Release must become effective and irrevocable no later than sixty (60) days following the date of
Executive’s termination (the “Severance Release Deadline”). If the Severance Release does not become effective
and irrevocable by the Severance Release Deadline, then Executive hereby forfeits any rights to the Severance set forth in this
Section 6. In no event will any Severance be paid under Section 6 until the Severance Release becomes effective and irrevocable.
Subject to Annex A attached hereto, payments of Severance shall commence once the Severance Release becomes effective and irrevocable
and the first payment shall include any installments that otherwise would have been paid during the period commencing on the date
of termination and ending on the date the Severance Release becomes effective.

 

    	6

    	 

    

 

(f)Exclusive
Remedy. Executive agrees that the payments and benefits contemplated by this Section 6 (and any applicable acceleration of
vesting of an equity-based award in accordance with the terms of such award in connection with the termination of Executive’s
employment) shall constitute the exclusive and sole remedy for any termination of Executive’s employment and Executive covenants
not to assert or pursue any other remedies, at law or in equity, with respect to any termination of employment.

 

(g)Executive’s
Obligations Upon Termination.

 

(i)Return
of Property. Executive agrees that all property (including, without limitation, all equipment, tangible proprietary information,
documents, records, notes, contracts and computer-generated materials) furnished to or created or prepared by Executive incident
to Executive’s employment belongs to the Company and shall be promptly returned to the Company upon termination of Executive’s
employment.

 

(ii)Resignation
and Cooperation. Upon termination of Executive’s employment, Executive shall be deemed to have resigned from all offices
and directorships then held with the Company. Following any termination of employment, Executive shall cooperate with the Company
in the winding up of pending work on behalf of the Company and the orderly transfer of work to other employees. Executive shall
also cooperate with the Company in the defense of any action brought by any third party against the Company that relates to Executive’s
employment with the Company.

 

(h)Section
280G.

 

(i)In
the event that (i) the severance and other benefits provided for in this Agreement or otherwise payable or provided to Executive
but determined without regard to any additional payments required by this Section 6(h) (collectively, the “Payment”)
would be subject to the excise tax imposed by Section 4999 of the Code and the regulations issued thereunder (the “Excise
Tax”) and (ii) the value of the Payment (as determined in accordance with Section 280G of the Code and the regulations issued
thereunder (collectively referred to as “Section 280G”)) exceeds three (3) times Executive’s “base amount”
(within the meaning of Section 280G) (such three times amount referred to as Executive’s “280G Threshold”) by
the greater of Fifty Thousand Dollars ($50,000) or ten percent (10%) of Executive’s 280G Threshold, Executive shall be paid
an additional amount (the “Gross-Up Payment”) such that the net amount retained by Executive after deduction of the
Excise Tax, and any federal, state and local income and employment tax and excise tax imposed upon the Gross-Up Payment shall
be equal to the Payment. In the event that the value of the Payment (as determined in accordance with Section 280G) does not exceed
Executive’s 280G Threshold by the greater of Fifty Thousand Dollars ($50,000) or ten percent (10%) of Executive’s
280G Threshold, the Payment shall be reduced to an amount equal to Executive’s 280G Threshold less $1 so that no portion
of the Payment shall be subject to the Excise Tax.

 

    	7

    	 

    

 

(ii)Unless
the Company and Executive otherwise agree in writing, any determination required under this Section 6(h) will be made in writing
by a national accounting firm selected by the Company or such other person or entity to which the parties mutually agree (the
“Accountants”), whose determination will be conclusive and binding upon the Executive and the Company for all purposes.
For purposes of making the calculations required by this Section 6(h) the Accountants may make reasonable assumptions and approximations
concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Section 280G
and Section 4999 of the Code. The Company and Executive shall furnish to the Accountants such information and documents as the
Accountants may reasonably request in order to make a determination under this Section 6(h). Any reduction in payments and/or
benefits required by this Section 6(h) shall occur in the following order: (1) reduction of cash payments, (2) reduction of equity
acceleration (full-value awards first, then stock options), and (3) reduction of other benefits paid or payable to Executive.
Notwithstanding anything to the contrary herein, any such reduction shall be structured in a manner intended to comply with Section
409A. In the event that acceleration of vesting of equity awards is to be reduced, such acceleration of vesting shall be cancelled
in the reverse order of the date of grant for Executive’s equity awards. The Company shall bear all costs that the Accountants
may reasonably incur in connection with any calculations contemplated by this Section 6(h).

 

7.Inventions
and Proprietary Information; Prohibition on Third Party Information.

 

(a)Proprietary
Information Agreement. Executive shall sign and be bound by the terms of the Company’s standard form of Employee Proprietary
Information and Inventions Agreement, unless the Company and Executive are already a party to such an agreement as of the Effective
Date, in which case such agreement shall continue to apply for the term of Executive’s employment under the terms of this
Agreement (such agreement, in either case, the “Proprietary Information Agreement”).

 

(b)Non-Disclosure
of Third Party Information. Executive represents, warrants and covenants that Executive shall not disclose to the Company,
or use, or induce the Company to use, any proprietary information or trade secrets of others at any time, including, without limitation,
any proprietary information or trade secrets of any former employer, if any; and Executive acknowledges and agrees that any violation
of this provision shall be grounds for Executive’s immediate termination and could subject Executive to substantial civil
liabilities and criminal penalties. Executive further specifically and expressly acknowledges that no officer or other employee
or representative of the Company has requested or instructed Executive to disclose or use any such third party proprietary information
or trade secrets.

 

8.Arbitration;
Jury Trial Waiver. Executive and the Company agree that any dispute or claim relating to or arising out of Executive’s
employment relationship with Company, this Agreement or the termination of Executive’s employment with Company for any reason
(including, without limitation, any claims of breach of contract, defamation, wrongful termination or age, sex, sexual orientation,
race, color, national origin, ancestry, marital status, religious creed, physical or mental disability or medical condition or
other discrimination, retaliation or harassment) shall be fully resolved by confidential, binding arbitration conducted by a single
neutral arbitrator in San Diego, California through the American Arbitration Association (“AAA”) pursuant to the AAA’s
then-current Employment Arbitration Rules. The arbitrator shall permit adequate discovery and is empowered to award all remedies
otherwise available in a court of competent jurisdiction and any judgment rendered by the arbitrator may be entered by any court
of competent jurisdiction. The arbitrator shall issue an award in writing and state the essential findings and conclusions on
which the award is based. To the fullest extent permitted by applicable law, by signing
this Agreement, Executive and Company HEREBY IRREVOCABLY waive ANY AND ALL RIGHTS to have disputes or claims ARISING OUT OF OR
RELATING TO THIS AGREEMENT tried before a judge or A jury.

 

    	8

    	 

    

 

9.General
Provisions.

 

(a)Amendment.
The terms of this Agreement may be amended, or any term hereof may be waived, by a written instrument executed by the parties
hereto.

 

(b)Waiver.
The rights and remedies of the parties to this Agreement are cumulative and not alternative. Neither the failure nor any delay
by any party in exercising any right, power or privilege under this Agreement or the documents referred to in this Agreement will
operate as a waiver of such right, power or privilege; and no single or partial exercise of any such right, power or privilege
will preclude any other or further exercise of such right, power or privilege or the exercise of any other right, power or privilege.
To the maximum extent permitted by applicable law, (i) no claim or right arising out of this Agreement or the documents referred
to in this Agreement can be discharged by one party, in whole or in part, by a waiver or renunciation of the claim or right unless
in writing signed by both parties; (ii) no waiver that may be given by a party will be applicable except in the specific instance
for which it is given; and (iii) no notice to or demand on one party will be deemed to be a waiver of any obligation of such party
or of the right of the party giving such notice or demand to take further action without notice or demand as provided in this
Agreement or the documents referred to in this Agreement.

 

(c)Validity.
The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability
of any other provision of this Agreement, which shall remain in full force and effect. The parties agree that any unenforceable
provision shall, to the maximum extent permitted by law, be reformed and construed in a manner that so far as possible results
in the same effect, or if such provision or term is not reformable then it shall be deemed not to be a part of this Agreement.

 

(d)Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their heirs, personal
representatives and successors, including any successor of the Company by reason of any dissolution, merger, consolidation, sale
of assets or other reorganization of the Company.

 

(e)Survival.
Sections 6, 7 (including the terms of the Proprietary Information Agreement that by their terms survive such termination),
8 and 9 of this Agreement shall survive any termination of Executive’s employment with Company.

 

    	9

    	 

    

 

(f)Notices.
All notices, consents, waivers and other communications under this Agreement shall be in writing and will be deemed to have
been duly given when (i) delivered by hand (with written confirmation of receipt); (ii) sent by facsimile (with written confirmation
of receipt); or (iii) when received by the addressee, if sent by a nationally recognized overnight delivery service; or (iv) when
received by the addressee, if sent by United States first class registered or certified mail, return receipt requested and postage
prepaid. Any such notices, consents, waivers or other communications shall be addressed as follows, or to such other address as
either party shall have furnished to the other in writing in accordance herewith:

 

If
to Executive:

 

To
the address set forth on the signature page hereto

 

If
to the Company:

 

Imprimis
Pharmaceuticals, Inc.

Attn:
Chief Executive Officer

12264
El Camino Real, Suite 350

Solana
Beach, California 92130

 

(g)Governing
Law. This Agreement will be governed by and construed in accordance with the laws of the United States and the State of California,
without reference to its conflicts of laws rules or principles.

 

(h)Headings.
The headings set forth in this Agreement are for convenience only and shall not be used in interpreting this Agreement.

 

(i)Counterparts.
This Agreement may be executed in one or more counterparts, all of which when fully executed and delivered by all parties
hereto and taken together shall constitute a single agreement, binding against each of the parties.

 

(j)Entire
Agreement. This Agreement is intended to be the final, complete, and exclusive statement of the terms of Executive’s
employment with the Company or any of the Company’s affiliates and may not be contradicted by evidence of any prior or contemporaneous
statements or agreements, including, without limitation, the Prior Employment Agreement and except for other agreements specifically
referenced herein (including the Proprietary Information Agreement, the indemnification agreement referenced in Section 4, and
the award agreements evidencing the Initial Option and the Initial RSU attached hereto as Exhibits A and B and any other agreement
relating to any other equity award that has been or may in the future be granted to Executive). Without limiting the generality
of the foregoing, this Agreement and the employment relationship governed hereby shall supersede and replace in its entirety the
Prior Employment Agreement. Except as otherwise expressly provided herein, any subsequent change in Executive’s duties,
position, or compensation will not affect the validity or scope of this Agreement.

 

EXECUTIVE
ACKNOWLEDGES THAT EXECUTIVE HAS HAD THE OPPORTUNITY TO CONSULT LEGAL COUNSEL CONCERNING THIS AGREEMENT, THAT EXECUTIVE HAS READ
AND UNDERSTANDS THIS AGREEMENT IN FULL, THAT EXECUTIVE IS FULLY AWARE OF ITS LEGAL EFFECT, AND THAT EXECUTIVE HAS ENTERED INTO
IT FREELY BASED ON EXECUTIVE’S OWN JUDGMENT AND NOT ON ANY REPRESENTATIONS OR PROMISES OTHER THAN THOSE CONTAINED IN THIS
AGREEMENT.

 

[Remainder
of Page Intentionally Left Blank]

 

    	10

    	 

    

 

IN
WITNESS WHEREOF, the parties have duly executed this Agreement effective as of the date first written above.

 

	EXECUTIVE	 
	 	 	 
	/S/
    John P. Saharek	 
	John
    P. Saharek	 
	 	 	 
	Address:	 
	 	 	 
	COMPANY	 
	 	 	 
	IMPRIMIS
    PHARMACEUTICALS, INC.	 
	 	 	 
	By:	 /S/
    Mark L. Baum	 
	Name:	Mark L. Baum	 
	Title:	Chief Executive
    Officer	 

 

    	 

    	 

    

 

ANNEX
A

 

SECTION
409A ADDENDUM

 

Notwithstanding
anything to the contrary in the Agreement, no Severance pay or benefits to be paid or provided to Executive, if any, pursuant
to the Agreement that, when considered together with any other Severance payments or separation benefits, are considered deferred
compensation under Section 409A (together, the “Deferred Payments”) will be paid or otherwise provided until Executive
has had a “separation from service” within the meaning of Section 409A. Similarly, no Severance payable to Executive,
if any, that otherwise would be exempt from Section 409A pursuant to Treasury Regulation Section 1.409A-1(b)(9) will be payable
until Executive has had a “separation from service” within the meaning of Section 409A. Each payment and benefit payable
under the Agreement is intended to constitute a separate payment for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations.

 

Any
Severance payments or benefits under the Agreement that would be considered Deferred Payments will be paid or will commence on
the sixtieth (60th) day following Executive’s separation from service, or, if later, such time as required by the next paragraph,
with the first payment including any installments that otherwise would have been paid during the period commencing on the date
of termination and the date the Severance payments are permitted to commence in accordance with this Annex A.

 

Notwithstanding
anything to the contrary in the Agreement, if Executive is a “specified Executive” within the meaning of Section 409A
at the time of Executive’s termination (other than due to death), then the Deferred Payments that would otherwise have been
payable within the first six (6) months following Executive’s separation from service, will be paid on the first payroll
date that occurs on or after the date six (6) months and one (1) day following the date of Executive’s separation from service,
but in no event later than seven (7) months after the date of such separation from service. All subsequent Deferred Payments,
if any, will be payable in accordance with the payment schedule applicable to each payment or benefit. Notwithstanding anything
herein to the contrary, if Executive dies following Executive’s separation from service, but prior to the six (6) month
anniversary of the separation from service, then any payments delayed in accordance with this paragraph will be payable in a lump
sum as soon as administratively practicable after the date of Executive’s death and all other Deferred Payments will be
payable in accordance with the payment schedule applicable to each payment or benefit.

 

Any
amount paid under the Agreement that satisfies the requirements of the “short-term deferral” rule set forth in Section
1.409A-1(b)(4) of the Treasury Regulations will not constitute Deferred Payments. Any amount paid under the Agreement that qualifies
as a payment made as a result of an involuntary separation from service pursuant to Section 1.409A-1(b)(9)(iii) of the Treasury
Regulations that does not exceed the Section 409A Limit (as defined below) will not constituted Deferred Payments. For this purpose,
the “Section 409A Limit” will mean two (2) times the lesser of: (i) Executive’s annualized compensation based
upon the annual rate of pay paid to him during Executive’s taxable year preceding his taxable year of his separation from
service as determined under Treasury Regulation Section 1.409A-1(b)(9)(iii)(A)(1) and any Internal Revenue Service guidance issued
with respect thereto; or (ii) the maximum amount that may be taken into account under a qualified plan pursuant to Section 401(a)(17)
of the Internal Revenue Code for the year in which Executive’s separation from service occurred.

 

The
foregoing provisions are intended to comply with the requirements of Section 409A so that none of the Severance payments and benefits
to be provided hereunder will be subject to the additional tax imposed under Section 409A, and any ambiguities herein will be
interpreted to so comply. The Company and Executive agree to work together in good faith to consider amendments to the Agreement
and to take such reasonable actions which are necessary, appropriate or desirable to avoid imposition of any additional tax or
income recognition prior to actual payment to Executive under Section 409A.

 

    	 

    	 

    

 

EXHIBIT
A

 

INITIAL
OPTION AWARD AGREEMENT

 

    	 

    	 

    

 

EXHIBIT
B

 

INITIAL
RSU AWARD AGREEMENT

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