Document:

EXHIBIT 10.47

 

 

 

 

October 31, 2016

Michael R. Stewart

3930 Ruckman Way

 Doylestown, PA 18902

Re:          Severance Agreement and General Release

Dear Michael:

We thank you for your service to STRATA Skin Sciences, Inc. (the "Company").  We are interested in resolving cooperatively your separation of employment with the Company, effective October 31, 2016 (the "Separation Date").  Toward this end, we propose the following Severance Agreement, which includes a General Release ("the Agreement").

Please note that some provisions of this Agreement apply whether or not you sign this Agreement.  Other provisions apply only if you sign.  Throughout this Agreement, we have tried to make this distinction clear.

For example, the terms and conditions set forth in Paragraph 1 below will apply regardless of whether you decide to sign this Agreement.  Conversely, you will not be eligible to receive the Severance Benefits set forth in Paragraph 2 below unless you sign and do not revoke this Agreement.  (Please see Paragraph 19 below for what it means to revoke this Agreement.)

This Agreement is a very important legal document.  I encourage you to read it carefully and make certain that you understand and agree with it before you sign it.

You may consider for twenty-one (21) days after you receive this Agreement whether you wish to sign it.  Because this is a legal document, you are encouraged to review the proposed Agreement with your attorney.

1.          General Terms of Termination.  As noted above, whether or not you sign this Agreement:

(a)          Your last day of employment will be the Separation Date.  You will be paid for all time worked up to and including your last day of employment.

(b)          You will be paid for accrued but unused vacation in accordance with Company policy.

(c)          Your eligibility to participate in Company sponsored group health coverage as an employee of the Company will end effective October 31, 2016.  However, you will be eligible to continue to participate in this health coverage in accordance with a federal law called the Consolidated Omnibus Budget Reconciliation Act ("COBRA"), subject to COBRA's terms, conditions and restrictions.

 

Michael Stewart

October 31, 2016

Page 2

  

If you decide not to sign this Agreement, you will be responsible for paying the entire cost of this coverage.  However, if you sign and do not revoke this Severance Agreement, the Company will pay a portion of the premium you otherwise would be required to pay, as described below in Paragraph 2(b).

(d)          Your eligibility to participate in all other Company-sponsored group benefits will end effective October 31, 2016.

(e)          You will be reimbursed for any expenses properly incurred on or before the Separation Date, provided that you submit receipts for such expenses in accordance with the Company's reimbursement policy on or before November 30, 2016.

(f)          Any Option Shares granted to you and which have vested as of the Separation Date pursuant to that certain Stock Option Agreement (Non-Qualified Stock Option) dated as of December 15, 2014 between the Company and you (the "Stock Option Agreement") shall continue to be exercisable for a period of ninety (90) days following the Separation Date, and thereafter shall expire and no longer be exercisable.

(g)          Any Option Shares granted to you and which have not vested as of the Separation Date pursuant to the Stock Option Agreement shall terminate as of the Separation Date.

(h)          You are required to comply with Paragraphs 7, 8 and 9 below.

2.          Severance Benefits.  If you sign and do not revoke this Agreement, agreeing to be bound by the General Release in Paragraph 3 below and the other terms and conditions of this Agreement described below, the Company will do the following:

(a)          The Company will pay you twelve (12) months of severance pay at your current Base Salary as of October 31, 2016, less withholding of all applicable federal, state and local taxes.  The severance payments will be paid to you in equal monthly installments pursuant to the Company's normal payroll procedures.  The first payment will be made on the Company's first payroll pay date that is at least ten (10) days after the expiration of the Revocation Period described in Paragraph 19 below.

(b)          The Company will reimburse you on a monthly basis for a portion of the premium for your continued participation in the Company's group health coverage pursuant to COBRA in an amount such that your net cost (after tax) for continued health insurance coverage is the same as your cost for such benefits as in effect on the Separation Date, until the earlier of (i) the date that is twelve (12) months after the date of termination, or (ii) the date you become eligible for health benefits through another employer or otherwise become ineligible for COBRA, provided that: (A) you are eligible for and timely elect to receive COBRA coverage from a source other than a new employer, and (B) you pay the remaining portion of the premium on a timely basis and present proof of such payment to the Company.  Thereafter, your continued participation in the Company's group health coverage pursuant to COBRA shall be at your sole

 

Michael Stewart

October 31, 2016

Page 3

 

 

expense.  In the event you become eligible to receive health insurance coverage from another employer prior to October 31, 2017, the Company shall no longer have any obligation to make any payments pursuant to this Section 2(b), and you agree to immediately notify the Company in writing of such eligibility.

(c)          The Company will enter into a Consulting Agreement with you, pursuant to which the Company will engage you to provide consulting services to the Company for a period of six (6) months on the terms and conditions set forth in the Consulting Agreement, which is attached hereto as Exhibit A.

(d)          Notwithstanding the provisions of Section 3 of the Stock Option Agreement and Paragraph 1(g) of this Agreement, any Option Shares granted to you that have vested as of the Separation Date pursuant to the Stock Option Agreement shall continue to be exercisable until the later of (i) ninety (90) days following the Separation Date, or (ii) the termination of the Consulting Agreement referenced in Paragraph 2(c) and attached hereto as Exhibit A, and thereafter shall expire and no longer be exercisable.

(e)          For purposes of this Agreement, the term "Severance Benefits" includes the payments and other benefits set forth above in this Paragraph 2.

(f)          You will not be eligible for the Severance Benefits described in this Paragraph 2 if you revoke this Agreement on a timely basis in accordance with Paragraph 19 below.  You also will not be eligible for the Severance Benefits described in this Paragraph 2 until: (i) the Company has received an executed copy of this Agreement; (ii) you execute and deliver your resignation as an officer and director of the Company in the form attached hereto as Exhibit B; and (iii) you have returned all Company property and documents in accordance with Paragraph 9 below.

3.          General Release.

(a)          In exchange for the Company's Severance Benefits described in Paragraph 2, you release and forever discharge, to the maximum extent permitted by law, the Company and each of the other "Releasees" as defined below, from any and all claims, causes of action, complaints, lawsuits, demands or liabilities of any kind (collectively "Claims") as described below which you, your heirs, agents, administrators or executors have or may have against the Company or any of the other Releasees.

(b)          By agreeing to this General Release, you are waiving any and all Claims that can be waived, to the maximum extent permitted by law, which you have or may have against the Company or any of the other Releasees arising out of or relating to any conduct, matter, event or omission existing or occurring before you sign this Agreement, and any monetary or other personal relief for such Claims, including but not limited to the following:

(i)          any Claims having anything to do with your employment with the Company and/or any of its parent, subsidiary, related and/or affiliated companies;

 

Michael Stewart

October 31, 2016

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(ii)         any Claims having anything to do with the termination of your employment with the Company and/or any of its parent, subsidiary, related and/or affiliated companies;

(iii)        any Claims for severance, benefits, bonuses, commissions and/or other compensation of any kind;

(iv)        any Claims for reimbursement of expenses of any kind;

(v)         any Claims for attorneys' fees or costs;

(vi)        any Claims under the Employee Retirement Income Security Act ("ERISA");

(vii)       any Claims of discrimination and/or harassment based on age, sex, pregnancy, race, religion, color, creed, disability, handicap, failure to accommodate, citizenship, marital status, national origin, ancestry, sexual orientation, gender identity, genetic information or any other factor protected by Federal, State or Local law as enacted or amended (such as the Age Discrimination in Employment Act, 29 U.S.C. § 621 et seq., Title VII of the Civil Rights Act of 1964, Section 1981 of the Civil Rights Act of 1866, the Americans with Disabilities Act, the Equal Pay Act, the Genetic Information Non-Discrimination Act and the Pennsylvania Human Relations Act) and any Claims for retaliation under any of the foregoing laws;

(viii)      any Claims regarding leaves of absence including, but not limited to, any Claims under the Family and Medical Leave Act;

(ix)         any Claims arising under the Immigration Reform and Control Act ("IRCA");

(x)          any Claims arising under the Uniformed Services Employment and Reemployment Rights Act ("USERRA") or any state law governing military leave;

(xi)         any Claims for violation of public policy;

(xii)        any whistleblower or retaliation Claims;

(xiii)       any Claims for emotional distress or pain and suffering;

(xiv)       any Claims under your Amended and Restated Employment Agreement dated as of December 15, 2015 (the "Employment Agreement"); and/or

(xv)        any other statutory, regulatory, common law or other Claims of any kind, including, but not limited to, Claims for breach of contract, libel, slander, fraud, wrongful discharge, promissory estoppel, equitable estoppel, invasion of privacy and misrepresentation.

 

 

Michael Stewart

October 31, 2016

Page 5

  

(c)          The term "Releasees" includes:  the Company and any parent, subsidiary, related or affiliated companies of the Company, and each of their past and present employees, officers, directors, attorneys, owners, partners, insurers, benefit plan fiduciaries and agents, and all of their respective successors and assigns.

(d)          Please note also that this General Release includes all Claims known or unknown by you, those that you may have already asserted or raised as well as those that you have never asserted or raised.

(e)          For purposes of this Agreement, the term "General Release" shall refer to this Paragraph 3 and all of its subparagraphs.

4.          Non-Released Claims.  The General Release in Paragraph 3 above does not apply to:

(a)          Any Claims for vested benefits under any Company retirement, 401(k), profit-sharing or other deferred compensation plan;

(b)          Any Claims to require the Company to honor its commitments set forth in this Agreement;

(c)          Any Claims to interpret or to determine the scope, meaning, enforceability or effect of this Agreement;

(d)          Any Claims that arise after you have signed this Agreement;

(e)          Any Claims for workers' compensation benefits, any Claims for unemployment compensation benefits, and any other Claims that cannot be waived by a private agreement.

The General Release is subject to and restricted by your Retained Rights in Paragraph 5.

5.          Retained Rights.

(a)          Regardless of whether or not you sign this Agreement, nothing in this Agreement is intended to or shall be interpreted to restrict or otherwise interfere with your: (i) obligation to testify truthfully in any forum; (ii) right and/or obligation to contact, cooperate with,  provide information to – or testify or otherwise participate in any action, investigation or proceeding of – any government agency or commission (including, but not limited, to the Equal Employment Opportunity Commission ("EEOC")); or (iii) obligation to disclose any information or produce any documents as is required by law or legal process.

(b)          Further, the General Release in Paragraph 3 does not prevent you from contacting or filing a charge with any federal, state or local government agency or commission (including, but not limited to, the EEOC).  However, the General Release does prevent you, to

 

          

Michael Stewart

October 31, 2016

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the maximum extent permitted by law, from obtaining any monetary or other personal relief for any of the Claims you have released in Paragraph 3 with regard to any charge you may file or which may be filed on your behalf, subject to Paragraph 5(c).

(c)          Nothing set forth in this Agreement is intended to prohibit you from reporting possible violations of federal, state or local law, ordinance or regulation to any governmental agency or entity, including, but not limited to, the Department of Justice, the U.S. Securities and Exchange Commission, the Congress and any agency Inspector General, or otherwise taking action or making disclosures that are protected under the whistleblower provisions of any federal, state or local law, ordinance or regulation, including, but not limited to, Rule 21F-17 promulgated under the Securities Exchange Act of 1934, as amended.  You are entitled to make reports and disclosures or otherwise take action under this Paragraph without the prior authorization from or subsequent notification to the Company.  Similarly, nothing set forth in this Agreement limits your right to receive a monetary award for information provided to the U.S. Securities and Exchange Commission pursuant to Rule 21F-17 promulgated under the Securities Exchange Act of 1934, as amended.

6.          Adequacy of Consideration.  You acknowledge and agree that the Severance Benefits under Paragraph 2 above:

(a)          Are not required by any policy, plan or prior agreement;

(b)          Constitute adequate consideration to support your General Release in Paragraph 3 above; and

(c)          Fully compensate you for the Claims you are releasing.

For purposes of this paragraph, "consideration" means something of value to which you are not already entitled.

7.          Prohibition on Your Using or Disclosing Confidential Information.  Regardless of whether you sign this Agreement, you are prohibited from using or disclosing confidential and/or proprietary information that you created or acquired in the course of your employment with the Company and that is not generally known by or readily accessible to the public.  This confidential and/or proprietary information includes, but is not limited to: trade secrets and confidential or proprietary information and property, and personal information pertaining to the business and affairs of the Company, and its customers, clients, licensors, licensees, employees, consultants and suppliers of or to any of them, including, without limitation, data, databases, know-how, trade secrets, marketing plans and opportunities, cost and pricing information, strategies, forecasts, licensee and customer lists, reports and surveys, concepts and ideas, computer software, systems and programs (including source code and documentation), and techniques and technical information.  For purposes of the remainder of this Agreement, confidential and/or proprietary information shall be referred to as "confidential information."  This prohibition is subject to and limited by your Retained Rights in Paragraph 5 above.

 

Michael Stewart

October 31, 2016

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8.          Duty to Notify the Chief Financial Officer.  Regardless of whether you sign this Agreement, and in order to protect confidential information consistent with Paragraph 7, in the event you receive a request or demand, orally, in writing, electronically or otherwise, for the disclosure or production of confidential information that you created or acquired in the course of your employment (as defined above in Paragraph 7), you must notify immediately the Company's Chief Financial Officer by calling her at the following phone number:  (215) 619-3267.  Regardless of whether you are successful in reaching the Chief Financial Officer by telephone, you also must notify her immediately in writing, via certified mail, at the following address:  100 Lakeside Drive, Horsham, PA 19044.  A copy of the request or demand as well as any and all documents potentially responsive to the request or demand shall be included with the written notification.  You shall wait a minimum of ten (10) days (or the maximum time permitted by such legal process, if less) after sending the letter before making a disclosure or production to give the Company time to determine whether the disclosure or production involves confidential and/or proprietary information, in which event the Company may seek to prohibit and/or restrict the production and/or disclosure and/or to obtain a protective order with regard thereto.  This obligation is subject to and limited by your Retained Rights in Paragraph 5 above.

9.          Company Property and Documents.  Regardless of whether you sign this Agreement, and as a condition of receiving the Severance Benefits set forth in Paragraph 2 above:

(a)          You must return to the Company, retaining no copies: (i) all Company property (including, but not limited to, office, desk or file cabinet keys, Company identification/pass cards, Company-provided credit cards and Company equipment, such as computers and prints outs); and (ii) all Company documents (including, but not limited to, all hard copy, electronic and other files, forms, lists, charts, photographs, correspondence, computer records, programs, notes, memos, disks, DVDs, etc.); and

(b)          You also must download all Company-related electronically stored information (including but not limited to emails) from any personal computer and/or other storage devices or equipment or personal email accounts and return all downloaded material or otherwise electronically stored information and completely remove all such electronically stored information from the hard drive of such personal computer and/or all other storage devices or personal email accounts.

11.          Post-Termination Restrictions.

(a)          By signing this Agreement, in accordance with Section 12 of the Employment Agreement, you and the Company agree to amend Section 7(a)(i) of the Employment Agreement to delete the phrase "12 months following the date of termination of Employee's employment for any reason" and replace it with the phrase "the later of eighteen (18) months following the date of termination of Employee's employment for any reason or twelve (12) months following the termination of any consulting relationship entered into between Employee and the Company after the termination of Employee's employment," the effect of such amendment being to increase the duration of the Restricted Period applicable to the restrictive

 

          

Michael Stewart

October 31, 2016

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covenants set forth in Section 7 of the Employment Agreement from a period of twelve (12) months following the Separation Date to a period ending eighteen (18) months following the Separation Date or twelve (12) months after the termination of the Consulting Agreement, whichever is later.

(b)          You reaffirm that you will comply with: (i) all of your post-employment obligations as set forth in the Employment Agreement, including, but not limited to, the restrictive covenants (as amended) set forth in Section 7 of the Employment Agreement; and (ii) all of your post-employment obligations as set forth in your Employee Confidentiality and Invention Agreement dated as of December 15, 2014.

(c)          You acknowledge and agree that if you breach your post-employment restrictions set forth in the Employment Agreement (including, but not limited to, the restrictive covenants set forth in Section 7 of the Employment Agreement, as amended) and/or your Employee Confidentiality and Invention Agreement dated as of December 15, 2014, the Company (in addition to any rights it may have in law or in equity) shall have no further obligation to make future payments of the Severance Benefits described in Paragraph 2 of this Agreement.  You further acknowledge and agree that if the Company ceases to make future payments of the Severance Benefits described in Paragraph 2 of this Agreement pursuant to this Paragraph 10(c), the Severance Benefits already received by you constitute adequate consideration to support your General Release in Paragraph 3 above.

11.          Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of Pennsylvania.

12.          Statement of Non-Admission.  Nothing in this Agreement is intended as or shall be construed as an admission or concession of liability or wrongdoing by the Company or any other Releasee as defined above.  Rather, the proposed Agreement is being offered for the sole purpose of settling cooperatively and amicably any and all possible disputes between the parties.

13.          Interpretation of Agreement.  Nothing in this Agreement is intended to violate any law or shall be interpreted to violate any law.  If any paragraph or part or subpart of any paragraph in this Agreement or the application thereof is construed to be overbroad and/or unenforceable, then the court making such determination shall have the authority to narrow the paragraph or part or subpart of the paragraph as necessary to make it enforceable and the paragraph or part or subpart of the paragraph shall then be enforceable in its/their narrowed form.  Moreover, each paragraph or part or subpart of each paragraph in this Agreement is independent of and severable (separate) from each other.  In the event that any paragraph or part or subpart of any paragraph in this Agreement is determined to be legally invalid or unenforceable by a court and is not modified by a court to be enforceable, the affected paragraph or part or subpart of such paragraph shall be stricken from the Agreement, and the remaining paragraphs or parts or subparts of such paragraphs of this Agreement shall remain in full, force and effect.

14.          Entire Agreement.  This Agreement constitutes the entire agreement between the parties and supersedes any and all prior representations, agreements, written or oral, expressed or

 

          

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October 31, 2016

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implied, except for the Employment Agreement and your Employee Confidentiality and Invention Agreement dated as of December 15, 2014, which, as amended herein where applicable, survive the termination of your employment and are incorporated herein by reference.  This Agreement may not be modified or amended other than by an agreement in writing signed by a duly authorized officer of the Company or a member of the Compensation Committee of the Company's Board of Directors.

15.          Acknowledgment.  You acknowledge and agree that, subsequent to the termination of your employment, you shall not be eligible for any payments from the Company or Company-paid benefits, except as expressly set forth in this Agreement.  You also acknowledge and agree that you have been paid for all time worked and have received all other compensation owed to you, except for any payments owed to you pursuant to Paragraph 1 which shall be paid to you regardless of whether you sign this Agreement.

16.          Assignment.  This Agreement shall be binding upon and be for the benefit of the parties as well as your heirs and the Company's successors and assigns.

17.          Headings/Days.  The headings contained in this Agreement are for convenience of reference only and are not intended, and shall not be construed, to modify, define, limit, or expand the intent of the parties as expressed in this Agreement, and they shall not affect the meaning or interpretation of this Agreement.  All references to a number of days throughout this Agreement refer to calendar days.

18.          Representations.  You agree and represent that:

(a)          You have read carefully the terms of this Agreement, including the General Release;

(b)          You have had an opportunity to and have been encouraged to review this Agreement, including the General Release, with an attorney;

(c)          You understand the meaning and effect of the terms of this Agreement, including the General Release;

(d)          You were given twenty-one (21) days following your receipt of this Agreement to determine whether you wished to sign this Agreement, including the General Release;

(e)          Your decision to sign this Agreement, including the General Release, is of your own free and voluntary act without compulsion of any kind;

(f)          No promise or inducement not expressed in this Agreement has been made to you;

(g)          You understand that you are waiving your Claims as set forth in Paragraph 3 above, including, but not limited to, Claims for age discrimination under the Age

 

Michael Stewart

October 31, 2016

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Discrimination in Employment Act (subject to the limitations in Paragraph 4 above and your Retained Rights in Paragraph 5 above); and

(h)          You have adequate information to make a knowing and voluntary waiver of any and all Claims as set forth in Paragraph 3 above.

19.          Revocation Period.  If you sign this Agreement, you will retain the right to revoke it for seven (7) days.  If you revoke this Agreement, you are indicating that you have changed your mind and do not want to be legally bound by this Agreement.  The Agreement shall not be effective until after the Revocation Period has expired without your having revoked it.  To revoke this Agreement, you must send a certified letter to my attention at the following address:  100 Lakeside Drive, Suite 100, Horsham, PA 19044.  The letter must be post‐marked within seven (7) days of your execution of this Agreement.  If the seventh day is a Sunday or federal holiday, then the letter must be post-marked on the following business day.  If you revoke this Agreement on a timely basis, you shall not be eligible for the Severance Benefits set forth in Paragraph 2.

20.          Offer Expiration Date.  As noted above, you have twenty-one (21) days after your receipt of this Agreement  to decide whether you wish to sign this Agreement.  Any changes that were made to this Agreement, whether material or immaterial, including those made at your request, do not restart the running of the twenty-one (21) day consideration period.  If you do not sign this Agreement within twenty-one (21) days of your receipt of it, then this offer shall expire and you will not be eligible for the Severance Benefits set forth in Paragraph 2 above.

If you agree with the all of the terms of this Agreement, please sign below, indicating that you understand, agree with and intend to be legally bound by this Agreement, including the General Release, and return the signed Agreement to me.

We wish you the best in the future.

Sincerely,

_/s/ Jeffrey F. O'Donnell, Sr.

Jeffrey F. O'Donnell, Sr.

Chairman, Board of Directors

 Strata Skin Sciences, Inc.

UNDERSTOOD AND AGREED,

INTENDING TO BE LEGALLY BOUND:

_/s/ Michael R. Stewart

Michael R. Stewart

_October 31, 2016     

Date

_/s/ Marilyn B. Gensel

WitnessEXHIBIT 10.48

 

CONSULTING AGREEMENT

This Consulting Agreement (this "Agreement") is between Strata Skin Sciences, Inc. (the "Company"), a Delaware corporation, and Michael R. Stewart ("Consultant") (each a "Party" and collectively the "Parties"), and is effective October 31, 2016 (the "Effective Date").

W I T N E S S E T H:

The Company and Consultant are parties to a Severance Agreement and General Release executed by Consultant on November 1st, 2016 (the "Release").  The Parties desire to enter into this Agreement to provide for Consultant to provide certain consulting services to the Company as described herein.

NOW, THEREFORE, in consideration of the mutual promises and covenants set forth herein, and intending to be legally bound hereby, the Company and Consultant hereby agree as follows:

	
1.

	
Term.

	
(a)

	
The term of this Agreement shall begin on the Effective Date and terminate upon the earlier of (i) six (6) months following the Effective Date (i.e. April 1, 2017), (ii) immediately upon termination by the Company for Cause, (iii) immediately upon the death of Consultant, or (iv) immediately upon Consultant's disability (the "Term").  Consultant acknowledges that there is no guarantee of continued compensation or work following the conclusion of the Term.

	
(b)

	
For purposes of this Agreement, "Cause" is defined as:  (i) Consultant's material violation of the material terms of this Agreement or the Release; (ii) a breach by Consultant of a fiduciary responsibility owing to the Company; (iii) Consultant's failure to perform the Services after written notice of such failure and failure to cure within five (5) days; or (iv) a breach by Consultant of Paragraph 12 of this Agreement, the Employee Confidentiality and Invention Agreement dated as of December 15, 2014 between Consultant and the Company, or Section 7 (as amended) of the Amended and Restated Employment Agreement between the Parties dated as of December 15, 2015.

	
(c)

	
For purposes of this Agreement, Consultant shall be deemed to be under a "disability (i) if Consultant and the Company agree that Consultant is disabled, or (ii) in the event that Consultant shall be unable to or shall fail to render and perform services under this Agreement for a total of fifteen (15) days during the Term.

	
2.

	
Services.  Consultant shall provide such services to the Company as may be required by the Company from time to time (the "Services"), including, but not limited to: (a) providing the Company, its Board of Directors and its Chief Executive Officer with assistance and information necessary to the transition of Chief Executive Officer and other management job responsibilities; (b) providing assistance to and cooperation with the Company in locating information or data, providing other known information, and

transitioning business relationships; and (c) performing work on special projects identified by the Company's Chief Executive Officer.

	
3.

	
Relationship of the Parties. It is understood and agreed that all Services that Consultant performs for the Company shall be as an independent contractor and not as an employee.  Nothing herein shall be deemed to create an employer-employee relationship between the Company and Consultant.

	
4.

	
Payment.  During the Term, the Company shall pay Consultant a monthly fee in the amount of Twelve Thousand Five Hundred Dollars ($12,500.00).  The Company shall pay the monthly fee owing to Consultant under this Agreement in accordance with the Company's standard accounts payable practices and procedures.

	
5.

	
Benefits. Consultant shall not be eligible for any Company-paid benefits pursuant to this Agreement, including, but not limited to, medical, disability or other insurance, vacation, holiday or sick pay, or any other compensation or consideration commonly known as fringe benefits.

	
6.

	
Expenses.  The Company shall reimburse Consultant for the reasonable and necessary out-of-pocket business expenses incurred by Consultant for or on behalf of the Company in furtherance of the performance of the Services in accordance with the Company's then-existing policies relating to expense reimbursement, subject in all cases to the Company's requirements with respect to reporting and documentation of such expenses.

	
7.

	
Location.  Consultant will not be required to perform Services for the Company as set forth in this Agreement at the Company's workplace.  Consultant may perform Services pursuant to this Agreement anywhere else that Consultant desires, including Consultant's own office.

	
8.

	
Timing and Days of Work. The Company will not establish hours or days of work for Consultant; provided, however, that Consultant shall perform Services for the equivalent of a minimum of two (2) days per week during the Term.

	
9.

	
Authority. Consultant has no authority to bind, obligate or contract on behalf of the Company.

	
10.

	
Status of Work. Consultant is neither required to submit regular reports to the Company nor to attend the Company's general employee meetings.  However, Consultant shall keep the Company informed of the status of Consultant's performance of Services and provide the deliverables associated with the Services in a timely manner.

	
11.

	
Taxes. Consultant acknowledges that Consultant will not be treated as an employee of the Company for purposes of employment taxes, federal and state income tax withholding, social security taxes, city and county taxes, employee benefit provisions, workers' compensation and state and federal unemployment compensation.  Consultant is solely responsible for the payment of federal self-employment and all other federal, state and local taxes and agrees to defend, indemnify and hold harmless the Company for

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Consultant's nonpayment of such taxes on a timely basis.  The Company will issue to Consultant an IRS Form 1099 as required by law.

	
12.

	
Non-Exclusive Service. During the Term, Consultant is generally free to provide services to any other person or entity, provided that: (a) such work does not interfere with Consultant's performance of Services for the Company, (b) Consultant abides by the provisions of this Agreement relating to Confidential Information, and (c) Consultant abides by the provisions of Section 7 (as amended) of the Amended and Restated Employment Agreement between the Parties dated as of December 15, 2015.

	
13.

	
Confidential Information.

	
(a)

	
"Confidential Information" shall mean any information not generally known outside the Company.  Confidential Information is sometimes referred to as proprietary information or trade secrets.  Examples of Confidential Information include without limitation: trade secrets; technical and non-technical business knowledge; technology; the business methods, systems or practices (including pricing policies and process for products and services) used by the Company; sales and marketing, competitive and logistical information; financial records, the names of customers, prospective customers, suppliers, vendors, creditors or other parties with which the Company has or proposes to have business dealings, the nature of the relationship with such persons or entities, or any other information relating to such persons or entities or the Company's dealings with such persons or entities; computer software used by the Company or provided to its customers; and other information relating to the business of the Company that is not known to the general public.

	
(b)

	
During the Term and at all times thereafter, unless authorized in writing by the Company, Consultant will not:

	
(i)

	
use any Confidential information for any purpose other than to perform the Services;

	
(ii)

	
use for Consultant's benefit or advantage the Confidential Information or for the benefit of any third party or in any way that would be detrimental to the Company; or

	
(iii)

	
disclose or cause to be disclosed the Confidential Information or authorize or permit such disclosure of the Confidential Information to any third party.

	
(c)

	
Consultant will surrender to the Company at any time upon request, and at the conclusion of the Term, all written or otherwise tangible documentation representing or embodying Confidential Information, in whatever form, whether or not copyrighted or patented, and any copies or imitations of the Confidential Information, whether or not made by Consultant, including without limitation all notes, computer software and data files, documents, books, records, data

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compilations, and other written materials obtained during the Term, and all copies thereof, including electronic media containing any of those items.

	
(d)

	
Consultant shall promptly and fully disclose to the Company, with all necessary detail, all developments, know-how, discoveries, inventions, improvements, concepts, ideas, formulae, processes and methods (whether copyrightable, patentable or otherwise) made, received, conceived, acquired or written by Consultant (whether or not at the request or upon the suggestion of the Company, solely or jointly with others), during the Term that: (i) result from, arise out of, or relate to any work, project, assignment or task performed by Consultant on behalf of the Company, whether undertaken voluntarily or assigned to Consultant by the Company; (i) were developed using the Company's resources; (iii) result from Consultant's use or knowledge of the Company's Confidential Information; or (iv) relate to the Company's business or any of the products or services being developed, manufactured or sold by the Company or that may be used in relation therewith (collectively referred to as "Inventions").  Consultant hereby acknowledges that all original works of authorship that are made by Consultant (solely or jointly with others) within the above terms and that are protectable by copyright are "works made for hire," as that term is defined in the United States Copyright Act, including but not limited to blog posts and other marketing materials.  Consultant understands and hereby agrees that the decision whether or not to commercialize or market any Invention developed by Consultant solely or jointly with others is within the Company's sole discretion and for the Company's sole benefit and that no royalty shall be due to Consultant as a result of the Company's efforts to commercialize or market any such Invention.

	
(e)

	
Consultant hereby assigns and transfers to the Company all of Consultant's right, title and interest in and to the Inventions, and Consultant further agrees to deliver to the Company any and all drawings, notes, specifications and data relating to the Inventions, and to sign, acknowledge and deliver all such further papers, including applications for and assignments of copyrights and patents, and all renewals thereof, as may be necessary to obtain copyrights and patents for any Inventions in any and all countries and to vest title thereto in the Company and its successors and assigns and to otherwise protect the Company's interests therein.  Consultant shall not charge the Company for time spent in complying with these obligations.  Consultant hereby irrevocably designates and appoints the Company and its duly authorized officers and agents as Consultant's agent and attorney in fact, to act for and in Consultant's behalf and stead to apply for or to pursue any application for any United States or foreign patents or copyright registrations covering Inventions or original works of authorship assigned to the Company as above and to do all other lawfully permitted acts to further the prosecution and issuance of letters patent or copyright registrations thereon with the same legal force and effect as if executed by Consultant.

	
(f)

	
The Consultant acknowledges that compliance with this Agreement is necessary to protect the goodwill and other proprietary interests of the Company and that the Consultant has been and will be entrusted with highly confidential information

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regarding the Company and its products and is conversant with the Company's affairs, its trade secrets and other proprietary information.  The Consultant acknowledges that a breach of this Agreement will result in irreparable and continuing damage to the Company and its business, for which there will be no adequate remedy at law.  The Consultant further agrees that in the event of any breach of this Agreement, the Company and its successors and assigns shall be entitled to injunctive relief and to such other and further relief, including damages, as may be proper.

	
(g)

	
Consultant acknowledges that the Defend Trade Secrets Act of 2016 (the "Act") provides that an individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that:  (i) is made (A) in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney; and (B) solely for the purpose of reporting or investigating a suspected violation of law; or (ii) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.  Consultant further acknowledges that the Act provides that an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual:  (x) files any document containing the trade secret under seal; and (y) does not disclose the trade secret, except pursuant to court order.

	
14.

	
Workers' Compensation. Consultant shall not be eligible for workers' compensation insurance from the Company and shall be solely responsible for any injuries or damages that Consultant may sustain in the course of performing Services pursuant to this Agreement.

	
15.

	
Indemnification. The Company agrees to indemnify and hold harmless Consultant with respect to any claim made, or action, suit or proceeding instituted against Consultant, that is based upon or arises out of the Services performed by the Consultant in accordance with the terms and provisions of this Agreement to the extent that consultants to the Company may be indemnified under the By-laws of the Company, except if such claim, action or proceeding arises from the fault or negligence of Consultant or from the Consultant's failure to comply with any term or provision of this Agreement.  Consultant shall defend, indemnify and hold harmless the Company from any and all liability, damages, suits and losses, including attorneys' fees, arising out of Consultant's performance under this Agreement, including but not limited to (a) any breach by Consultant of any term, condition or obligation under this Agreement, or (b) Consultant's gross negligence or willful misconduct.  The Company shall have the right to offset against any fees due to Consultant for any claims, losses, liabilities, expenses, fees or other disbursement incurred by the Company pursuant to this paragraph. Each Party shall provide the other Party with prompt notice of any claim for which indemnification will be sought and shall cooperate with the other Party in the investigation and defense of such claim.

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16.

	
Successor and Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective heirs and successors.  The Company may assign this Agreement to any person or entity, including, but not limited to, any successor, parent, subsidiary or affiliated entity of the Company.  The Company also may assign this Agreement in connection with any sale or merger (whether a sale or merger of stock or assets or otherwise) of the Company or the business of the Company.  Consultant expressly consents to the assignment of the commitments, restrictions and undertakings set forth in this Agreement to any new owner of the Company's business or purchaser of the Company.  Consultant may not assign, pledge, or encumber its interest in this Agreement, or any part thereof, without the written consent of the Company.

	
17.

	
Waiver; Severability.  A waiver by either Party of any provision or condition of this Agreement shall not be construed or deemed to be a waiver of any other provision or condition of this Agreement, or a waiver of a subsequent breach of the same provision or condition, unless such waiver is so expressed in writing and signed by the Party to be bound.  If any provision of this Agreement is determined to be invalid under applicable law and regulations by a court of competent jurisdiction, such provisions shall be inapplicable and deemed omitted to the extent of such invalidity without impairing the validity of the remaining provisions of this Agreement.

	
18.

	
Entire Agreement. This Agreement constitutes the entire agreement between the Parties, supersedes all prior and contemporaneous agreements or understandings, oral or written, between the Parties, and may be modified only by a writing signed by both Parties; provided, however, that this Agreement does not supersede or otherwise modify (a) the Amended and Restated Employment Agreement between the Parties dated as of December 15, 2015, or (b) the Release.

	
19.

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

	
20.

	
Governing Law and Venue.  This Agreement shall be construed and enforced under the substantive laws of the Commonwealth of Pennsylvania, without reference to its conflict of laws principles.

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

 

[signature page follows]

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IN WITNESS HEREOF, the Parties have executed this Agreement on the day and year first above written, intending to be legally bound.

	 	
MICHAEL R. STEWART

	 	
STRATA SKIN SCIENCES, INC.

	 
	 	
 

  /s/ Michael R. Stewart

	 	
 

  /s/ Jeffrey F. O'Donnell, Sr. 

	 
	 	 Michael R. Stewart	 	
 By:          Jeffrey F. O'Donnell, Sr.

	 
	 	 	 	
Title:          Chairman of the Board

	 

 

 

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