Document:

Exhibit 4.16

      

     

      

    DESCRIPTION OF OUR COMMON STOCK

     

    General

     

    The following description of the material provisions of our capital stock (which includes a description of securities we may offer pursuant to the registration statement of which this prospectus, as the same may be
      supplemented, forms a part) does not purport to be complete and is based on and qualified by our Certificate of Incorporation, as amended and restated (the “Charter”), our Bylaws, and our Warrant Agreement to Purchase Shares of the Common Stock of
      STRATA Skin Sciences, Inc., dated as of September 30, 2021, between us and MidCap Funding XXVII Trust (“Warrant Agreement”), each of which is incorporated by reference in the registration statement of which this prospectus is a part.  The summary
      below is also qualified by reference to provisions of the Delaware General Corporation Law (“DGCL”).

     

    Our authorized capital stock consists of 160,000,000 shares, consisting of 150,000,000 shares of common stock, $0.001 par value per share, and 10,000,000 shares of preferred stock, $0.10 par value per share.  As of
      December 31, 2021, our outstanding capital stock consists of 34,364,679 shares of common stock, and no shares of preferred stock.  These figures do not include (i) securities that may be issued upon exercise or vesting of our outstanding derivative
      securities including our options to purchase shares of common stock and restricted stock units under our equity incentive plans and a stock purchase warrant, and (ii) 358,367 shares of common stock issued to Theravant Corporation, a Delaware
      corporation (“Theravant”), pursuant to the terms and conditions of an Asset Purchase Agreement entered into between us, Theravant and certain other parties thereto.

     

    We, directly or through agents, dealers or underwriters designated from time to time, may offer, issue and sell, together or separately, up to $25,000,000 in the aggregate of:

     

    	

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            common stock;

          

     

    	

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            preferred stock;

          

     

    	

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            secured or unsecured debt securities consisting of notes, debentures or other evidences of indebtedness which may be senior debt securities, senior subordinated debt securities or subordinated debt securities, each of which may be
              convertible into equity securities;

          

     

    	

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            warrants to purchase our securities;

          

     

    	

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            rights to purchase our securities; or

          

     

    	

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            units comprised of, or other combinations of, the foregoing securities.

          

     

    We may issue the debt securities as exchangeable for or convertible into shares of common stock, preferred stock or other securities.  The preferred stock may also be exchangeable for and/or convertible into shares of
      common stock, another series of preferred stock or other securities.  The debt securities, the preferred stock, the common stock and the warrants are collectively referred to in this prospectus as the “securities.”  When a particular series of
      securities is offered, a supplement to this prospectus will be delivered with this prospectus, which will set forth the terms of the offering and sale of the offered securities.

     

    Common Stock

     

    As of December 31, 2021, there were 34,364,679 shares of common stock issued and outstanding.  The outstanding shares of common stock are duly authorized, validly issued, fully paid and non-assessable.

     

    Voting Power

     

    Except as otherwise required by law or as provided in any certificate of designation for any series of Preferred Stock, the holders of common stock possess all the voting power for the election of our directors and all
      other matters requiring stockholder action.  Holders of common stock are entitled to one vote per share held of record on matters to be voted on by stockholders.

     

    
      
        

    

    Dividends

     

    Holders of common stock will be entitled to receive such dividends, if any, as may be declared from time to time by our board of directors in its discretion out of funds legally available therefor and shall share equally
      on a per share basis in such dividends and distributions, provided that such holder is not an Unsuitable Person (as defined below).

     

    Liquidation, Dissolution and Winding-Up

     

    In the event of our voluntary or involuntary liquidation, dissolution, distribution of assets or winding-up, the holders of our common stock will be entitled to receive an equal amount per share of all of our assets of
      whatever kind available for distribution to stockholders, after the rights of our creditors and the rights of holders of Preferred Stock, if any, have been satisfied.

     

    Preemptive or Other Rights

     

    There are no sinking fund provisions applicable to the common stock.  Our stockholders have no preemptive or other subscription rights.

     

    Preferred Stock

     

    Our board of directors has the authority to issue up to an aggregate of 10,000,000 shares of Preferred Stock in one or more series, and to fix the designations, preferences, rights, qualifications, limitations and
      restrictions thereof or thereon, without any further vote or action by the stockholders.  No shares of Preferred Stock are outstanding as of the date hereof.

     

    You should refer to any filing with the SEC relating to the series of preferred stock being offered for the specific terms of that series, including:

     

    	

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            the title of the series and the number of shares in the series;

          

     

    	

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            the price at which the preferred stock will be offered;

          

     

    	

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            the dividend rate or rates or method of calculating the rates, the dates on which the dividends will be payable, whether or not dividends will be cumulative or noncumulative and, if cumulative, the dates from which dividends on the
              preferred stock being offered will cumulate;

          

     

    	

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            the voting rights, if any, of the holders of shares of the preferred stock being offered;

          

     

    	

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            the provisions for a sinking fund, if any, and the provisions for redemption, if applicable, of the preferred stock being offered, including any restrictions on the foregoing as a result of arrearage in the payment of dividends or sinking
              fund installments;

          

     

    	

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            the liquidation preference per share;

          

     

    	

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            the terms and conditions, if applicable, upon which the preferred stock being offered will be convertible into our common stock, including the conversion price, or the manner of calculating the conversion price, and the conversion period;

          

     

    	

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            the terms and conditions, if applicable, upon which the preferred stock being offered will be exchangeable for debt securities, including the exchange price, or the manner of calculating the exchange price, and the exchange period;

          

     

    
      
        

    

    	

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            any listing of the preferred stock being offered on any securities exchange;

          

     

    	

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            a discussion of any material federal income tax considerations applicable to the preferred stock being offered;

          

     

    	

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            any preemptive rights;

          

     

    	

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            the relative ranking and preferences of the preferred stock being offered as to dividend rights and rights upon liquidation, dissolution or the winding up of our affairs;

          

     

    	

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            any limitations on the issuance of any class or series of preferred stock ranking senior or equal to the series of preferred stock being offered as to dividend rights and rights upon liquidation, dissolution or the winding up of our
              affairs; and

          

     

    	

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            any additional rights, preferences, qualifications, limitations and restrictions of the series.

          

     

    Upon issuance, the shares of preferred stock will be fully paid and nonassessable, which means that its holders will have paid their purchase price in full and we may not require them to pay additional funds.

     

    Any preferred stock terms selected by our board of directors could decrease the amount of earnings and assets available for distribution to holders of our common stock or adversely affect the rights and power, including
      voting rights, of the holders of our common stock without any further vote or action by the stockholders.  The rights of holders of our common stock will be subject to, and may be adversely affected by, the rights of the holders of any preferred
      stock that may be issued by us in the future.  The issuance of preferred stock could also have the effect of delaying or preventing a change in control of our company or make removal of management more difficult.

     

    Certain Anti-Takeover Provisions of Our Charter and Bylaws and Certain Provisions of Delaware Law

     

    Our Charter and Bylaws contain provisions that could have the effect of delaying or preventing changes in control or changes in our management without the consent of our board of directors.  These provisions include:

     

    	

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            no cumulative voting in the election of directors, which limits the ability of minority stockholders to elect director candidates;

          

     

    	

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            the exclusive right of our board of directors to elect a director to fill a vacancy created by the expansion of the board of directors or the resignation, death, or removal of a director with or without cause by stockholders, which
              prevents stockholders from being able to fill vacancies on our board of directors;

          

     

    	

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            the ability of our board of directors to determine whether to issue shares of our Preferred Stock and to determine the price and other terms of those shares, including preferences and voting rights, without stockholder approval, which
              could be used to significantly dilute the ownership of a hostile acquirer;

          

     

    	

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            limiting the liability of, and providing indemnification to, our directors and officers;

          

     

    	

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            specifying the Court of Chancery of the State of Delaware as the exclusive forum for adjudication of disputes;

          

     

    	

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            controls over the procedures for the conduct and scheduling of stockholder meetings; and

          

     

    	

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            advance notice procedures that stockholders must comply with in order to nominate candidates to our board of directors or to propose matters to be acted upon at a stockholders’ meeting, which may discourage or deter a potential acquirer
              from conducting a solicitation of proxies to elect the acquirer’s own slate of directors or otherwise attempting to obtain control of us.

          

     

    
      
        

    

    These provisions, singly or together, could delay hostile takeovers and changes in control of us or changes in our board of directors and management.

     

    As a Delaware corporation, we are also subject to provisions of Delaware law, including Section 203 of the DGCL, which prevents some stockholders holding more than 15% of our outstanding common stock from engaging in
      certain business combinations without approval of the holders of substantially all of our outstanding common stock.  Any provision of our Charter or Bylaws, or Delaware law that has the effect of delaying or deterring a change in control could limit
      the opportunity for our stockholders to receive a premium for their shares of our common stock and could also affect the price that some investors are willing to pay for our common stock.

     

    MidCap Warrant

     

    As of the date of this prospectus, there is a warrant outstanding exercisable for 373,626 shares of common stock (the “Warrant”).

     

    The Warrant was originally issued in connection with a loan and security agreement between us and MidCap.  Pursuant to the terms of the Warrant Agreement, the Warrant entitles the registered holder to purchase 373,626
      shares of our common stock at a per share price of $1.82, subject to adjustment as discussed below.  The Warrant may be exercised only for a whole number of shares of our common stock.  The Warrant is exercisable and will expire on September 30,
      2031, which shall be automatically exercised on a “cashless” basis upon expiration if the fair market value of our common stock is greater than the exercise price of the Warrant on the expiration date of the Warrant.

     

    The Warrant provides that the holder thereof may elect to exercise the warrant on a net “cashless” basis at any time prior to the expiration thereof.  Pursuant to a registration rights agreement, we agreed to file a
      registration statement covering the resale of the shares underlying the Warrant by November 14, 2021.

     

    In connection with a Merger Event (defined below) that is a Liquid Sale (defined below) where the value per share of our common stock is greater than the exercise price then in effect, the Warrant shall, on and after the
      closing of the Merger Event, automatically and without further action on the part of any party or other person, represent the right to receive, in lieu of the shares of our common stock that are issuable under the Warrant Agreement as of immediately
      prior to the closing of such Merger Event, the consideration payable on or in respect of such shares of our common stock less the amount equal to then-effective exercise price multiplied by the number of shares of our common stock as to which the
      Warrant is then exercised (such amount being the “purchase price”) for all such shares of our common stock (such consideration to include both the consideration payable at the closing of such Merger Event and all deferred consideration payable
      thereafter, if any, including, but not limited to, payments of amounts deposited at such closing into escrow and payments in the nature of earn-outs, milestone payments or other performance-based payments), and such Merger Event consideration shall
      be paid to the holder of the Warrant as and when it is paid to the holders of the outstanding shares of our common stock; provided, however, in the event of a Merger Event that is an arm’s length sale of all or substantially all of our assets (and
      only its assets) to a third party that is not an affiliate of us (a “True Asset Sale”), the holder of the Warrant may either (a) exercise its conversion or purchase right under the Warrant and such exercise will be deemed effective immediately prior
      to the consummation of such Merger Event, or (b) permit the Warrant to continue for the term of the Warrant Agreement if we continue as a going concern following the closing of any such True Asset Sale.  In connection with a Merger Event that is not
      a Liquid Sale, we shall cause the successor or surviving entity to assume the Warrant Agreement and our obligations thereunder on the closing thereof, and thereafter the Warrant shall be exercisable for the same number, class, and type of securities
      or other property as the holder of the Warrant would have received in consideration for the shares of our common stock issuable under the Warrant Agreement had it exercised the Warrant in full as of immediately
        prior to such closing, at an aggregate exercise price no greater than the aggregate exercise price in effect as of immediately prior to such closing, and subject to further adjustment from time to time in accordance with the provisions of this
        Agreement.  This provision shall similarly apply to successive Merger Events.  For purposes of this section of the Prospectus:

     

    
      
        

    

    	

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            A “Merger Event” means any of the following:  (i) a sale, lease or other transfer of all or substantially all of our assets, (ii) any merger or consolidation involving us in which we are not the surviving entity or in which our outstanding
              shares of capital stock are otherwise converted into or exchanged for shares of capital stock or other securities or property of another entity or converted into the right to receive cash, or (iii) any sale by holders of our outstanding
              voting equity securities in a single transaction or series of related transactions of shares constituting a majority of the outstanding combined voting power of us; and

          

     

    	

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            A “Liquid Sale” means the closing of a Merger Event in which the consideration received by us and/or our stockholders, as applicable, consists solely of cash and/or securities meeting all of the following requirements:

          

     

    	

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            the issuer thereof is then subject to the reporting requirements of Section 13 or Section 15(d) of the Exchange Act and is then current in its filing of all required reports and other information under the Act and the Exchange Act;

          

     

    	

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            the class and series of shares or other security of the issuer that would be received by the holder of the Warrant in connection with the Merger Event were the holder to exercise the Warrant on or prior to the closing thereof is then
              traded on a national securities exchange or over-the-counter market; and

          

     

    	

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            following the closing of such Merger Event, the holder of the Warrant would not be restricted from publicly re-selling all of the issuer’s shares and/or other securities that would be received by the holder in
              such Merger Event were the holder to exercise the Warrant in full on or prior to the closing of such Merger Event, except to the extent that any such restriction (x) arises solely under federal or state securities laws, rules or regulations,
              and (y) does not extend beyond six (6) months from the closing of such Merger Event.

          

     

    Except for Merger Events discussed above, if we at any time shall, by combination, reclassification, exchange or subdivision of securities or otherwise, change any of the securities as to which purchase rights under the
      Warrant Agreement exist into the same or a different number of securities of any other class or classes of securities, the Warrant Agreement shall thereafter represent the right to acquire such number and kind of securities as would have been
      issuable as the result of such change with respect to the securities which were subject to the purchase rights under the Warrant Agreement immediately prior to such combination, reclassification, exchange, subdivision or other change.  This provision
      shall similarly apply to successive combination, reclassification, exchange, subdivision or other change.

     

    If we at any time shall combine or subdivide our common stock, (i) in the case of a subdivision, the exercise price of the Warrant shall be proportionately decreased and the number of shares for which the Warrant is
      exercisable shall be proportionately increased, or (ii) in the case of a combination, the exercise price of the Warrant shall be proportionately increased and the number of shares for which the Warrant is exercisable shall be proportionately
      decreased.

     

    If we at any time while the Warrant Agreement is outstanding and unexpired shall pay a dividend with respect to the outstanding shares of our common stock payable in additional shares of our common stock, then the
      exercise price of the Warrant shall be adjusted to that price determined by multiplying the exercise price in effect immediately prior to such date of determination by a fraction (i) the numerator of which shall be the total number of shares of our
      common stock outstanding immediately prior to such dividend or distribution, and (ii) the denominator of which shall be the total number of shares of our common stock outstanding immediately after such dividend or distribution, and the number of
      shares of our common stock for which the Warrant is exercisable shall be proportionately increased.

     

    If we at any time while the Warrant Agreement is outstanding and unexpired shall make any other dividend or distribution on or with respect to our common stock, except any dividend or distribution (i) in cash, or (ii)
      specifically provided for in any other clause of the Warrant Agreement, then, in each such case, provision shall be made by us such that the holder of the Warrant shall receive upon exercise or conversion of the Warrant a proportionate share of any
      such distribution as though it were the holder of our common stock (or other stock for which our common stock is convertible) as of the record date fixed for the determination of our stockholders entitled to receive such distribution.

     

    
      
        

    

    MidCap Credit Facility

     

    On September 30, 2021, we entered into an $8.0 million senior secured credit facility (the “Credit Facility”) with MidCap pursuant to that certain Credit and Security Agreement with MidCap as agent and the lenders party
      thereto (the “MidCap Credit Agreement”), of which the full amount was drawn by us on September 30, 2021.  Borrowings under the Credit Facility bear interest at a rate per annum equal to LIBOR (with a LIBOR floor rate of 0.50%) plus 7.50%.  We are
      obligated to make only interest payments (payable monthly in arrears) through September 30, 2024.  Commencing on October 1, 2024 and continuing for the remaining twenty-four months of the facility, we will be required to make monthly interest
      payments and monthly principal payments based on the amortization schedule set forth in the MidCap Credit Agreement, subject to certain adjustments as described in the MidCap Credit Agreement.  The final maturity date under the MidCap Credit
      Agreement is September 1, 2026, unless earlier terminated.

     

    Further, the MidCap Credit Agreement contains a quarterly financial covenant that requires us to not have less than $24.0 million of net revenue (raised to $30.0 million by December 31, 2023) for the trailing 12-month
      period as of September 30, 2021, with compliance measured on the last day of each fiscal quarter beginning on September 30, 2021.  Further, there are additional covenants that, among other things, restrict our ability and certain of our subsidiaries
      to (i) incur, assume or guarantee additional indebtedness; (ii) pay dividends or redeem or repurchase capital stock; (iii) make other restricted payments; (iv) incur liens; (v) redeem debt that is junior in right of payment to the Credit Facility;
      (vi) sell or otherwise dispose of assets, including capital stock of subsidiaries; (vii) enter into mergers or consolidations; and (viii) enter into transactions with affiliates.  These covenants are subject to a number of exceptions and
      qualifications.Exhibit 10.79

     

    August 2, 2021

     

    [Executive Name]

    [Home Address]

    [Home Address]

    

    

    	Re:	
            Severance Agreement

          

    

    

    Dear ___:

     

    STRATA Skin Sciences, Inc., a Delaware corporation (the “Company”) considers it essential and in the best interests of its stockholders to foster the continuous employment of key management personnel.  In this regard,
      the Board of Directors of the Company (the “Board”) recognizes that the possibility of a termination of employment related to a change in control of the Company may exist and that such possibility, and the uncertainty and questions that it may raise
      among management, may result in the departure or distraction of management personnel to the detriment of the Company and its stockholders.

     

    The Board has determined that appropriate steps should be taken to reinforce and encourage the continued attention and dedication of members of the Company’s senior management, including you, to their assigned duties
      without distraction in the face of potentially disturbing circumstances arising from the possibility of a termination of employment.

     

    In order to induce you to remain in the employ of the Company, the Company agrees that you will receive the severance benefits set forth in this letter agreement (the “Agreement”) in the event your employment with the
      Company is terminated under the circumstances described below.

     

    1.          Term of Agreement.

     

    The term of this Agreement will commence on the date above (the “Effective Date”) and will continue  until termination of your employment in accordance with the terms of this Agreement.  Notwithstanding
      the foregoing, if a Change in Control occurs after the Effective Date and during the term of this Agreement, this Agreement will continue in effect for a limited period of two (2) years after the date of such Change in Control, unless terminated
      sooner in accordance with this Agreement.

     

    1.1  You acknowledge that your employment with the Company constitutes “at-will” employment and that, because you are an at-will employee, either you or the Company may terminate your employment at any time, upon
      written notice of termination within a reasonable period of time before the effective date of the termination, subject to the procedures and consequences set forth in this Agreement.

     

    
      
        

    

     2.          Severance Benefits.

     

    

    2.1  Termination by the Company without Cause or by You with Good Reason in connection with a Change in Control:  If your employment hereunder is terminated by the Company other than for death, disability, or
      Cause or by you for Good Reason, in each case (i) during the six (6) month period prior to a Change in Control and it is reasonably demonstrated by you that your termination of employment was at the request of a third party who has taken steps
      reasonably calculated to effect a Change in Control or otherwise arose in connection with or anticipation of a Change in Control or (ii) on or within twenty-four (24) months after a Change in Control (such time periods, the “Protection Period”), you
      will be entitled to receive:

     

    	

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            Severance in an amount equal to your then annual base compensation then in effect (or immediately prior to any reduction resulting in a termination for Good Reason) for nine (9) months payable in equal installments, less
                  applicable taxes and withholdings, pursuant to the Company’s normal payroll procedures over nine (9) months.

          

     

    	

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            A pro-rata payment from the Company’s annual bonus plan for the fiscal year in which your termination occurred, equal to the payment you would have received had you remained in the employment of the Company through the end of such fiscal
              year, multiplied by a fraction, the numerator of which is the number of full months elapsed from the start of such fiscal year to the date of your termination of employment, and the denominator of which is 12.  Such amount, if any, will be
              paid at the time such award would otherwise have been paid to other participants had your employment not terminated, but in no event later than two and one-half months following the end of such fiscal year.

          

     

    	

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            For a period of nine (9) months  following your termination, you and your beneficiaries will remain eligible to participate, on the same terms and conditions as apply from time to time to the Company’s senior management generally, in the
              health, vision and dental programs of the Company; provided, however, that such eligibility will cease at such time as you become eligible to participate in comparable programs of a subsequent employer; and further provided that if you are
              precluded from participating in any such plan or program by its terms or applicable law, you will receive a dollar amount equal to the cost (estimated in good faith by the Company) of obtaining such benefits, or substantially similar
              benefits, within thirty (30) days following the date of your termination.

          

     

    2.2  Good Reason: You will be considered to have terminated employment hereunder for Good Reason if such termination of employment is on account of any of the following actions by the Company, which occur
      during the Protection Period, without your express written consent:

     

    	

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            A reduction of in your annual base compensation;

          

     

    	

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            Any material diminution of your positions, duties, or responsibilities;

          

     

    	

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            Any permanent reassignment of you to a location greater than sixty (60) miles from your primary residence; or

          

     

    
      
        

    

    	

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            A material breach by the Company of its obligations under this Agreement.

          

     

              Notwithstanding the foregoing, a termination by you will not be for “Good Reason,” unless you have given the Company at least ten (10) business days written notice specifying the grounds upon
      which you intend to terminate your employment hereunder for “Good Reason”.  In addition, any action or inaction by the Company which is remedied within thirty (30) days following such written notice will not constitute “Good Reason” for termination
      hereunder and will render such notice null and void.

     

    2.3  Change in Control. The term “Change of Control” is defined as: (i) any “person,” as such term is used in sections 13(d) and 14(d) of Securities Exchange Act of 1934, as amended (the “Exchange Act”),
      becomes the beneficial owner (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 75% or more of the total voting power represented by the Company’s then outstanding voting securities;
      provided, however, that no Change of Control shall be deemed to occur by reason of the acquisition of securities of the Company by one or more investors in the Company in capital-raising transactions; (ii) the direct or indirect sale or exchange by
      the stockholders of the Company of all or substantially all of the outstanding capital stock of the Company; (iii) a merger or consolidation in which the Company is a party and in which the stockholders of the Company before such Change of Control do
      not retain, directly or indirectly, at least a majority of the beneficial interest in the voting stock of the Company after such transaction; or (iv) an agreement for the sale or disposition by the Company of all or substantially all the Company’s
      assets.

     

    2.4  Cause. “Cause” is defined as: (i) the conviction for (or your plea of  nolo contendere to) a felony or a crime involving moral turpitude; (ii) your material
      violation of any written Company policy or the material terms of this Agreement after written notice of such failure and failure to cure within ten (10) days; (iii) your failure to follow a lawful direction of the Board after written notice of such
      failure and failure to cure within ten (10) days; (iv) a breach of a fiduciary responsibility owing to the Company or any of its affiliates; (v) your failure to perform such duties as are reasonably delegated or assigned to you after written notice
      of such failure and failure to cure within ten (10) days; (vi) drug or alcohol abuse, but in the first instance of such drug or alcohol abuse, only if you fail to seek appropriate counseling or fails to complete a prescribed counseling program to the
      satisfaction of the Board; and (vii) a breach of any obligation relating to non-competition, non-solicitation of employees, customers, licensees or licensors, confidentiality, or ownership and/or rights as to creations and/or proprietary information
      or property, under any written agreement in effect from time to time, in favor of the Company.

     

    2.5  Accrued Benefits.  Upon your termination of employment for any reason, you, or your estate, as applicable, will receive your accrued but unpaid annual base compensation and any accrued but unpaid or
      otherwise vested benefits under any Company benefit or incentive plan.

     

    
      
        

    

    3.          Parachute Provisions. Payments under this Agreement shall be made without regard to whether the deductibility of such payments (or any other payments)
        would be limited or precluded by Section 280G of the Code, and without regard to whether such payments would subject Employee to the federal excise tax levied on certain “excess parachute payments” under Section 4999 of the Code; provided, however,
        that if the Total After-Tax Payments (as defined below) would be increased by the limitation or elimination of any amount payable under this Agreement, then the amount payable under this Agreement will be reduced to the extent necessary to maximize
        the Total After-Tax Payments. The determination of whether and to what extent payments under this Agreement are required to be reduced in accordance with the preceding sentence will be made by the Company’s independent auditors. In the event of any
        underpayment or overpayment under this Agreement (as determined after the application of this Section 5(f)), the amount of such underpayment or overpayment will be immediately paid by the Company to Employee or refunded by Employee to the Company,
        as the case may be, with interest at the applicable federal rate provided for in Section 7872(f)(2) of the Code. For purposes of this Agreement, “Total After-Tax Payments” means the total of all “parachute payments” (as that term is defined in
        Section 280G(b)(2) of the Code) made to or for the benefit of Employee (whether made hereunder or otherwise), after reduction for all applicable federal taxes (including, without limitation, the tax described in Section 4999 of the Code)..

     

    	 	4.	
            Covenant Not to Compete; Nonsolicitation; Confidential Information; Nondisparagement.

          

     

    4.1  You agree with the Company that you will not at any time, except in performance of your obligations to the Company or with the prior written consent of the Company, directly or indirectly, reveal to any “Person”
      (as defined in Section 3(9) of the Employee Retirement Income Security Act of 1974, as amended) (other than the Company, or its employees, officers, directors, shareholders, or agents) or use for your own benefit any information deemed to be
      confidential by the Company or any of its subsidiaries or affiliates (such subsidiaries and affiliates, collectively “Affiliates”) (“Confidential Information”) relating to the assets, liabilities, employees, goodwill, business affairs of the Company
      or any of its Affiliates, including, without limitation, any information concerning past, present, or prospective customers, manufacturing processes, marketing, operating, or financial data, or other confidential information used by, or useful to,
      the Company or any of its Affiliates and known (whether or not known with the knowledge and permission of the Company or any of its Affiliates and whether or not at any time prior to the Effective Date developed, devised, or otherwise created in
      whole or in part by your efforts) to you by reason of your employment by, shareholdings in or other association with the Company or any of its Affiliates.  You further agree that you will retain all copies and extracts of any written or electronic
      Confidential Information acquired or developed by you during any such employment, shareholding, or association in trust for the sole benefit of the Company, its Affiliates, and their successors and assigns.  You further agree that you will not,
      without the prior written consent of the Company, remove or take from the Company’s or any of its Affiliate’s premises (or if previously removed or taken, you will promptly return) any written or electronic Confidential Information or any copies or
      extracts thereof.  Upon the request and at the expense of the Company, you will promptly make all disclosures, execute all instruments and papers, and perform all acts reasonably necessary to vest and confirm in the Company and its Affiliates, fully
      and completely, all rights created or contemplated by this Section 4.1.  The term “Confidential Information” will not include information that is or becomes generally available to the public other than as a result of a disclosure by, or at the
      direction of, you.  Your agreements set forth in this Section 4.1 regarding Confidential Information are independent of, and in addition to, your agreements set forth in the rest of Section 4 and will not be construed either to enlarge or to contract
      the scope of such other agreements.

     

    
      
        

    

    4.2  You agree with the Company that, for so long as you are employed by the Company or any of its Affiliates and continuing for the Restricted Period (as defined below), you will not, without the prior written consent
      of the Company, directly or indirectly, and whether as principal or investor or as an employee, officer, director, manager, partner, consultant, agent, or otherwise, alone or in association with any other Person, become involved in a Competing
      Business (as defined below) in any geographic area in which the Company or any of its Affiliates has engaged during such period in any of the activities which comprise a Competing Business, or in which you have knowledge of the Company’s plans to
      engage in any of the activities which comprise a Competing Business (including, without limitation, any area in which any customer of the Company or any of its Affiliates may be located).  This Section 4.2 will not be violated, however, by owning in
      the aggregate less than one percent of any class of securities listed on a national securities exchange or traded publicly in the over-the-counter market.

     

    4.3  As a separate and independent covenant, you agree with the Company that, for so long as you are employed by the Company or any of its Affiliates and continuing for the Restricted Period (as defined below), you
      will not in any way,(a) solicit, encourage or entice any client, customer, vendor, licensee, licensor, consultant or supplier of or to the Company to cease to do business with, or to reduce or modify the business such person or entity has done with
      or intends to do with, or to end, reduce or modify any relationship or proposed relationship of such person or entity with, the Company, or (b) interfere with, disrupt or attempt to disrupt or otherwise jeopardize any relationship of the Company with
      any client, customer, vendor, licensee, licensor, consultant or supplier or any other person or entity with whom the Company has a business relationship.

     

    4.4  For purposes of this Section 4, a “Competing Business” means a business or enterprise (other than Company or its subsidiaries) that competes directly or indirectly with the business conducted by the Company or
      proposed to be conducted by the Company during the time you were employed by the Company or during the Restricted Period, within the geographical areas in which the Company is doing business or proposes to do business at the time of your termination
      of employment.

     

    4.5  You confirm that all Confidential Information is and will remain the exclusive property of the Company and its Affiliates.  All business records, papers, and documents kept or made by you relating to the business
      of the Company will be and remain the property of the Company and its Affiliates.

     

    4.6  You agree to refrain during the Restricted Period and at all times thereafter from, disparaging, criticizing or making statements which may be perceived as negative, detrimental or injurious to the Company, or any
      of the management, owners, business, policies or practices of the Company.

     

    4.7  Without intending to limit the remedies available to the Company and its Affiliates, you agree that a breach of any of the covenants contained in this Section 4 may result in
        material and irreparable injury to the Company or its Affiliates for which there is no adequate remedy at law, that it will not be possible to measure damages for such injuries precisely and that, in the event of such a breach or threat thereof,
        the Company and its Affiliates will be entitled to seek a temporary restraining order or a preliminary or permanent injunction, or both, without bond or other security, restraining you from engaging in activities prohibited by this Section 4 or
        such other relief as may be required specifically to enforce any of the covenants in this Section 4.  Such injunctive relief in any court will be available to the Company and its Affiliates in lieu of, or prior to or pending determination in, any
        arbitration proceeding.

     

    
      
        

    

    4.8  Although you and the Company consider the restrictions contained in this Section 4 to be the minimum restriction reasonable for the purposes of preserving the Company’s
      goodwill and other proprietary rights, if a final determination is made by a court that the time or territory, or any other restriction contained in this Section 4 is an unreasonable or otherwise
      unenforceable restriction against you, the provisions of this Section 4 will not be rendered void, but will be deemed amended to apply as to such maximum time and territory and to such other extent as the
      court may determine to be reasonable.

     

    4.9  Notwithstanding anything to the contrary in Section 2.1, in the event that you breach any of the covenants contained in this Section 4:

     

    	

          	a.	
            Any remaining payments or benefits to be provided under Section 2.1 will not be paid or will cease immediately upon such breach; and

          

     

    	

          	b.	
            The Company will be entitled to the immediate repayment of all payments and benefits provided under Section 2.1.

          

     

    4.10  You agree that the covenants contained in this Section 4 may be assigned by the Company, as needed, to affect its purpose and intent and that the Company’s assignee will be entitled to the full benefit of the
      restrictions enjoyed by the Company under the terms of these covenants.

     

    4.11  The term “Restricted Period” means one (1) year following the termination of your employment for any reason; provided, however, that the Restricted Period will be extended by a period of time equal to any period
      during which you are in breach of any of the covenants set forth in this Section 4.

     

    5.          Binding Effect and Benefit.

     

    5.1  The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation, or otherwise) to all or substantially all of the business or assets of the Company to expressly assume and
      agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place.  Failure by the Company to obtain such assumption and agreement prior to the
      effectiveness of any such succession will constitute a material breach of this Agreement.  As used in this Agreement, “the Company” means the Company as defined above and any successor to the respective business or assets of the Company as
      abovementioned which assumes and agrees to perform this Agreement by operation of law, or otherwise.

     

    5.2  This Agreement will inure to the benefit of and be enforceable by your personal or legal representatives, executors, administrators, heirs, distributees, devisees, and legatees.  If you should die while any amount
      is payable to you under this Agreement if you had continued to live, all such amounts, unless otherwise provided herein, will be paid in accordance with the terms of this Agreement to your devisee, legatee, or other designee, or, if there is no such
      designee, to your estate.

     

    6.          Assignment.  This Agreement will not be assignable by either party hereto, except as provided in Section 4.10 and by the Company to any successor in
      interest to the business of the Company, provided that the Company (if it remains a separate entity) will remain fully liable under this Agreement for all obligations, payments, and otherwise.

     

    
      
        

    

    7.          Governing Law; Venue. This Agreement and the legal relations among the parties shall be governed by the internal
        laws of the Commonwealth of Pennsylvania, without regard to principles of conflict of laws. Any litigation arising in connection with or related to this Agreement or any of the subject hereof shall be tried solely by and in the United States
        District Court for the Eastern District of Pennsylvania, provided that, if such litigation shall not be permitted to be tried by such court, then such litigation shall be held solely in the state courts of Pennsylvania sitting in Montgomery County.
        Each party hereto irrevocably consents to and confers personal jurisdiction on the United States District Court for the Eastern District of Pennsylvania, or, if (but only if) the litigation in question shall not be permitted to be tried by such
        court, or the state courts of Pennsylvania sitting in Montgomery County, and expressly waives any objection to the venue of such court, as the case may be and any argument that any case filed should be transferred to a more convenient forum. . EACH PARTY HERETO HEREBY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED UPON, ARISING OUT OF, OR IN ANY WAY RELATING TO THIS
        AGREEMENT, OR THE EMPLOYMENT OF EMPLOYEE, WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE. EACH PARTY HERETO AGREES THAT EITHER OF THEM MAY FILE A COPY OF THIS AGREEMENT UNDER SEAL WITH THE COURT AS WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY, AND
        BARGAINED AGREEMENT BETWEEN THE PARTIES IRREVOCABLY TO WAIVE TRIAL BY JURY, AND THAT ANY DISPUTE OR CONTROVERSY WHATSOEVER BETWEEN THEM SHALL INSTEAD BE TRIED IN A COURT OF COMPETENT JURISDICTION BY A JUDGE SITTING WITHOUT A JURY.

     

    8.          No Mitigation or Offset.  In the event of termination of your employment, you will be under no obligation to seek other employment and there will be
      no offset against any payment or benefit provided for in this Agreement on account of any remuneration or benefits from any subsequent employment that you may obtain.

     

    9.          Application of Code Section 409A. This Agreement shall be interpreted and administered to the extent practicable in a manner consistent with the
      following statement of intent: All benefits and compensation payable to Employee pursuant to this Agreement are intended to be exempt from the definition of “nonqualified deferred compensation plan” or “deferral of compensation” under Code Section
      409A in accordance with one or more exemptions available under the Treasury Regulations promulgated under Code Section 409A. To the extent that any benefit or payment is or becomes subject to Code Section 409A, this Agreement is intended to comply
      with the requirements of Code Section 409A as applicable to such benefit or payment.

     

    
      
        

    

    10.         Miscellaneous.

     

    10.1  The invalidity or unenforceability of any provision of this Agreement will not affect the validity or enforceability of any other provision of this Agreement, which will remain in full force and effect.

     

    10.2  No waiver by you or the Company at any time of any breach of, or compliance with, any provision of this Agreement to be performed by the Company or you, respectively, will be deemed a waiver of that or any other
      provision at any subsequent time.

     

    10.3  Upon any termination of employment that entitles you to payments and benefits under Section 2, you must, within 60 days of your termination of employment, execute a legally enforceable release agreement
      substantially in the form of Exhibit A attached hereto prior to the receipt of such payments and benefits.  If such 60 day period begins in one taxable year and ends in a second taxable year, the payments and benefits will be provided or commence
      being provided, if at all, in the second taxable year.  Any payments made to you will be paid net of any applicable withholding required under federal, state, local, or foreign law.

     

    10.4  This Agreement is the exclusive agreement with respect to the severance benefits payable to you in the event of a termination of your employment.  All prior negotiations and agreements are hereby merged into this
      Agreement.  You acknowledge and agree that any employment agreement, offer letter, and/or any agreement regarding change in control or termination benefits, previously entered into between you and the Company is immediately null and void.

     

    10.5  Notwithstanding the termination of this Agreement, the provisions which specify continuing obligations, compensation and benefits, and rights will remain in effect until such time as all such obligations are
      discharged, all such compensation and benefits are received, and no party or beneficiary has any remaining actual or contingent rights under this Agreement.

     

    11.         Legal Fees.  In the event of a dispute following a Change in Control, the Company, or its successor, will reimburse you for all reasonable legal
      fees and expenses incurred by you in attempting to obtain or enforce rights or benefits provided by this Agreement, if, with respect to any such right or benefit, you are successful in obtaining or enforcing such right or benefit (including by
      negotiated settlement).

     

    
      

     

    If you agree to the terms of this Agreement, please sign on the line provided below and return two signed copies to the Company.  A fully executed copy will be returned to you for your files after it is signed by the
      Company.

     

    
      
        

    

    Sincerely,

    

    

    
      	
              STRATA Skin Sciences, Inc.

            	 
	 	 	 
	
              By:

            	 	 
	 	 	 
	
              Title:

            	 	 
	 	 	 
	
              Dated:

            	 	 
	 	 	 
	 	 	 
	
              Agreed to and accepted:

            	 
	 	 	 
	 	 	 
	
              [EXECUTIVE]

            	 
	 	 	 
	
              Dated:

            	 	 	 

    

    

    

    
      
        

    

    APPENDIX A

     

    FORM OF GENERAL RELEASE

     

     Reference is made to the Severance Agreement dated as of ____________ (the “Severance Agreement”), between STRATA Skin Sciences, Inc., a Delaware corporation (the “Company”), and ______________ (the “Executive”). 
      Capitalized terms used herein without definition shall have the meanings assigned to them in the Severance Agreement, a copy of which is attached hereto.

     

    SECTION 1.         Mutual Release.

     

    (a)            General Waiver and Release.  In consideration of their respective obligations under the Severance Agreement in connection with and following the Executive’s termination of employment with the
      Company and its affiliates, and subject to the limitations set forth in Section 2 hereof, the Company, on the one hand, does hereby release and forever discharge the Executive, and the Executive, on the other hand, does hereby release and forever
      discharge the Company, its present, former, and future shareholders, affiliates, direct and indirect parents, subsidiaries, successors, directors, officers, employees, agents, attorneys, heirs, and assigns (the “Company Parties” and, together with
      the Executive, the “Released Parties”), from any and all claims, actions, causes of action, suits, costs, controversies, judgments, decrees, verdicts, damages, liabilities, attorneys’ fees, covenants, contracts, and agreements that the Executive may
      have against the Company Parties or the Company Parties may have against the Executive, or in the future may possess based on events occurring during the term of the Executive’s employment with the Company arising out of (i) the Executive’s
      employment relationship with or service as an employee or officer of the Company and its affiliates or the termination of such relationship or service or (ii) any event, condition, circumstance or obligation that occurred, existed or arose on or
      prior to the date the Executive signs this Release, with respect to each other, including, but not limited to, any claims arising under Title VII of the Civil Rights Act of 1964, the Rehabilitation Act of 1973, the Americans with Disabilities Act of
      1990, the Civil Rights Act of 1866, the Civil Rights Act of 1991, the Employee Retirement Income Security Act of 1974, the Family Medical Leave Act of 1993, or any other federal or state or local law or any foreign jurisdiction, whether such claim
      arises under statute, common law, or in equity, and whether or not any of the Released Parties are presently aware of the existence of such claim, damage, action or cause of action, suit, or demand (collectively, including claims, actions, and causes
      of action set forth in Section 1(b) below, the “Claims”).  The Executive and the Company Parties also do forever release, discharge, and waive any right the Executive or the Company Parties may have to recover in any proceeding brought by any
      federal, state, or local agency against the Company Parties and the Executive, respectively, to enforce any laws.  Each of the parties hereto agrees that the value received or to be received in the future as described in the Severance Agreement shall
      be in full satisfaction of any and all claims, actions, or causes of action for payment or other benefits of any kind that the Executive may have against the Company Parties and that the Company Parties may have against the Executive; provided,
      however, that nothing in this Agreement shall preclude the Company from recouping, or refusing to pay, (i) severance benefits under the Severance Agreement in accordance with Section 2.5 thereof or (ii) cash or equity incentive-based compensation
      paid or payable to the Executive in the event of a restatement of the Company’s financial statements pursuant to applicable law or regulation or Company policy adopted consistent with applicable law or regulation.

     

    
      
        

    

    (b)            ADEA Release.  In further recognition of the above, the Executive hereby releases and forever discharges each of the Company Parties from any and all claims, actions and causes of action that the
      Executive may have as of the date the Executive signs and delivers to the Company this Release arising under the federal Age Discrimination in Employment Act of 1967, as amended, and the applicable rules and regulations promulgated thereunder
      (“ADEA”).

     

    SECTION 2.          Limitations.

     

    (a)             No Impact on Obligations under the Severance Agreement or the Shareholder Agreement.  The releases contained herein do not, are not intended to, and shall not be interpreted to serve as a release
      or waiver by the Executive or the Company Parties with respect to their respective rights and obligations set forth in the Severance Agreement.  In particular, and without limiting the generality of the preceding sentence, the Executive does not
      waive or release any claim the Executive might now or in the future have to be paid or receive the payments and benefits provided for in Section 2 of the Severance Agreement, and the Company Parties do not waive or release any claim they might now or
      in the future have under Section 4 of the Severance Agreement.

     

    (b)            No Impact on Indemnification Rights.  The releases contained herein do not, are not intended to, and shall not be interpreted to serve as a release or waiver by the Executive with respect to any
      indemnification rights the Executive may have and such indemnification rights shall not be effected, modified, or extinguished by the Executive’s execution of this Release.

     

    SECTION 3.         No Pending Litigation.

     

    The Executive represents and agrees that the Executive has not filed, and will not file, any action, complaint, charge, grievance, or arbitration against any Company Party, except that such agreement shall not apply to
      any claim based on any matter which, pursuant to Section 2, is excluded from the scope of this Release.  The Company hereby represents and agrees that no Company Party has filed, and no Company Party will file, any action, complaint, charge,
      grievance, or arbitration against the Executive except that such agreement shall not apply to any claim based on any matter which, pursuant to Section 2, is excluded from the scope of this Release.

     

    SECTION 4.          Acknowledgment.

     

    The Executive acknowledges and confirms that (i) the Executive has been advised in writing by the Company in connection with the Executive’s termination to consult with an attorney of the Executive’s choice prior to
      signing this Release and to have such attorney explain to the Executive the terms of the Release, including, without limitation, the terms relating to the Executive’s release of Claims arising under ADEA; (ii) the Executive has read this Release
      carefully and completely and understands each of the terms hereof; and (iii) the Executive was given not less than twenty-one (21) days to consider the terms of the Release and to consult with an attorney of the Executive’s choosing with respect
      thereto, and that for a period of seven (7) days following the Executive’s signing of this Agreement, the Executive shall have the option to revoke this Agreement in accordance with the terms set forth in Section 6 below.

     

    
      
        

    

    SECTION 5.          Successors.

     

    The rights and obligations under this Agreement shall inure to any and all successors of the Company.

     

    SECTION 6.          Revocation.

     

    The Executive shall have the right to revoke this Release during the seven-day period commencing immediately following the date the Executive signs and delivers this Agreement to the Company (the “Revocation Period”). 
      The period shall expire at 5:00 p.m., Eastern Standard Time, on the last day of the seven-day period; provided, however, that if such seventh day is not a business day, the period shall extend to 5:00 p.m. on the next succeeding business day.  In the
      event of any such revocation by the Executive, the obligations of the Company under this Release shall terminate and be of no further force and effect as of the date of such revocation.  No such revocation by the Executive shall be effective unless
      it is in writing and signed by the Executive and received by a representative of the Company prior to the expiration of the Revocation Period.

     

    SECTION 7.         Counterparts.

     

    This Release may be executed in two or more counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument.

     

    
      	
              STRATA Skin Sciences, Inc.

            
	 	 
	
              By:

            	 	 
	 	
              Name:

            
	 	 
	 	
              Title:

            

    

     

    

    
      	
              ACCEPTED AND AGREED:

            
	

            	 
	
              [Name]

            	 
	 	 
	
              Dated:

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