Document:

EX-10.1

 EXHIBIT 10.1 

Apogee Enterprises, Inc. 
 4400 West 78th Street, Suite 520 

Minneapolis, Minnesota 55435 
 February 8, 2019 

Re: Confidentiality Agreement 
 Ladies and
Gentlemen: 
 This Confidentiality Agreement (this “Agreement”), dated as of February 8, 2019, is made by and among Apogee
Enterprises, Inc., a Minnesota corporation (the “Company”), and Engaged Capital LLC, Engaged Capital Flagship Master Fund, LP, Engaged Capital Co-Invest VIII, LP, Engaged Capital Flagship
Fund, LP, Engaged Capital Flagship Fund, Ltd., Engaged Capital Holdings, LLC and Glenn W. Welling (collectively, “Engaged Capital,” “you” or “your”). 

1.    Upon the terms of, and subject to the conditions in, this Agreement, you and your Representatives (as defined below), may receive
certain information about the Company that is confidential and proprietary, the disclosure of which could harm the Company and its Affiliates (as defined below). 

2.    As a condition to you or any of your Representatives being furnished such information, you agree to treat, and to instruct your
Representatives to treat, any information, whether written or oral, concerning the Company or any of its Affiliates that is furnished to you or your Representatives (such information herein collectively referred to as the “Confidential
Information”) in accordance with the provisions of this Agreement, and to take or abstain from taking, and to instruct your Representatives to take or abstain from taking, certain other actions as set forth herein. The term
“Confidential Information” includes, without limitation, all notes, analyses, data or other documents furnished to you or your Representatives or prepared by you or your Representatives to the extent such materials reflect or are based
upon, in whole or in part, the Confidential Information. The term “Confidential Information” does not include information that (a) was within your or any of your Representatives’ possession on a
non-confidential basis (or any confidentiality restrictions have lapsed) prior to it being furnished to you by the Company or its Representatives; (b) is or becomes available to you or your
Representatives from a source other than the Company or its Representatives, provided that such source is not known by you or your Representatives to be bound by a confidentiality agreement with, or other contractual, legal or fiduciary
obligation to, the Company or any of its Affiliates that prohibits such disclosure; (c) is or becomes generally available to the public other than as a result of a disclosure by you or your Representatives in violation of this Agreement; or
(d) has been or is independently developed by you or your Representatives without the use of the Confidential Information or in violation of the terms of this Agreement. For the avoidance of doubt, the term “Confidential Information”
does not include the existence and the terms and conditions of this Agreement. 

 3.    You hereby agree that you shall keep the Confidential Information confidential and
shall use the Confidential Information solely for the purpose of monitoring and evaluating your investment in the Company; provided, however, that you may disclose the Confidential Information (a) to any of your Representatives
who need to know such information for the purpose of monitoring and evaluating your investment in the Company, or (b) as the Company may otherwise consent in writing. Any such Representatives shall (i) be informed by you of the
confidential nature of the Confidential Information, (ii) be subject to a contractual, legal or fiduciary obligation to keep the Confidential Information strictly confidential, and (iii) be advised of the terms of this Agreement. You agree
to be responsible for any breaches of any of the provisions of this Agreement by any of your Representatives as if they were party hereto (it being understood that such responsibility shall be in addition to and not by way of limitation of any right
or remedy the Company may have against your Representatives with respect to such breach). 
 4.    Notwithstanding anything to the
contrary provided in this Agreement, in the event you or any of your Representatives receive a request or are required by deposition, interrogatory, request for documents, subpoena, court order, similar judicial process, civil investigative demand
or similar process or pursuant to a formal request from a regulatory examiner (any such requested or required disclosure, an “External Demand”) or are otherwise required pursuant to applicable law, regulation or the rules of any
national securities exchange (as determined based on advice of your external legal counsel) to disclose all or any part of the Confidential Information, you agree, and you agree to instruct your Representatives, to the extent permitted by applicable
law, to (a) promptly notify the Company of the existence, terms and circumstances surrounding such External Demand or other requirement and (b) in the case of any External Demand, cooperate with the Company, at the Company’s
reasonable request and sole expense, in seeking a protective order or other appropriate remedy to the extent available under the circumstances. In the event that such protective order or other remedy is not obtained or not available or that the
Company waives compliance with the provisions hereof, (i) you or your Representatives, as the case may be, may disclose only that portion of the Confidential Information which you or your Representatives are advised by your external legal
counsel is legally required to be disclosed, and you or your Representatives shall inform the recipient of such Confidential Information of the existence of this Agreement and the confidential nature of such Confidential Information and exercise
reasonable efforts to obtain assurance that confidential treatment will be accorded, and (ii) you and your Representatives shall not be liable for such disclosure, unless such disclosure was caused by or resulted from a previous disclosure by
you or your Representatives in violation of this Agreement. For the avoidance of doubt, it is understood and agreed that there shall be no “applicable law,” “regulation” or “rule” requiring you or your Representatives
to disclose any Confidential Information solely by virtue of the fact that, absent such disclosure, you or your Representatives would be prohibited from purchasing, selling or engaging in derivative or other voluntary transactions with respect to
the securities of the Company or you or your Representatives would be unable to file any proxy materials or tender or exchange offer materials in compliance with Section 14 of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”) or the rules promulgated thereunder. 
 5.    Except as required by law, regulation, regulator or legal
process, until the occurrence of a Cleansing Event (as defined below) neither Engaged Capital nor the Company shall directly or indirectly, including through their Representatives, make or issue, or cause to be made or issued,

  
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any public disclosure or announcement that comments upon the other, including the filing or furnishing of any document with the U.S. Securities and Exchange Commission (the
“SEC”) or discussions with the press. For the avoidance of doubt, the Company acknowledges and agrees that you may file an amendment to your Schedule 13D in respect of the Company regarding the fact that this Agreement has been
entered into and attaching a copy of this Agreement as an exhibit thereto (a “Schedule 13D Amendment”). Prior to filing a Schedule 13D Amendment, if any, you shall provide the Company and its Representatives with a reasonable
opportunity to review and propose comments to the Schedule 13D Amendment and consider in good faith any comments of the Company and its Representatives. The Company will be responsible for the compliance of its Representatives with this Agreement.
For the avoidance of doubt, Engaged Capital acknowledges and agrees that the Company may file a Form 8-K regarding the fact that this Agreement has been entered into and attaching a copy of this Agreement as
an exhibit thereto (a “Form 8-K”). Prior to filing a Form 8-K, if any, the Company shall provide Engaged Capital and its Representatives with a
reasonable opportunity to review and propose comments to the Form 8-K and consider in good faith any comments of Engaged Capital and its Representatives. 

6.    Promptly upon request by the Company, you and your Representatives shall either (at your option) (a) destroy the Confidential
Information and any copies thereof, or (b) return to the Company all Confidential Information and any copies thereof, and, in either case, confirm in writing to the Company that all such material has been destroyed or returned, as applicable,
in compliance with this Agreement; provided, however, that you and your Representatives shall be permitted to retain Confidential Information to the extent necessary to comply with applicable law, professional standards or such
person’s document retention policies of general application, or to the extent disclosed pursuant to an External Demand. Notwithstanding the destruction or return of Confidential Information, you and your Representatives shall continue to be
bound by the obligations contained herein with respect to any Confidential Information retained by you or your Representatives for such period of time as you and such Representatives retain such Confidential Information until such Confidential
Information is returned or destroyed or no longer constitutes Confidential Information pursuant to the terms hereof. 
 7.    Other than
in connection with a Cleansing Event permitted by Paragraph 10, you agree that until 5:30 PM New York City time on the Termination Date (as defined below), neither you nor your Representatives may, directly or indirectly, without the prior approval
of the Company’s board of directors (the “Board”) (a) make any public announcement with respect to the Company’s management, policies, strategies, equity securities (except for disclosures required under the Exchange Act,
or disclosures in response to statements made by the Company identifying you and your Affiliates) or the Board, or take any action that would reasonably be expected to require the Company to make such a public announcement; (b) nominate, give notice
of an intent to nominate or recommend for nomination a person for election at any meeting of the Company’s shareholders (a “Shareholder Meeting”) at which the Company’s directors are to be elected; (c) knowingly
initiate, encourage or participate in any solicitation of proxies in respect of (i) any election contest or removal contest with respect to the Company’s directors or (ii) any shareholder proposal for consideration at, or other
business brought before, any Shareholder Meeting; (d) knowingly initiate, encourage or participate in any “withhold” or similar campaign with respect to any Shareholder Meeting; (e) form, join or in any way knowingly participate
in any group or agreement of any kind with respect to any voting 

  
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securities of the Company in connection with any election or removal contest with respect to the Company’s directors or any shareholder proposal or other business brought before any
Shareholder Meeting; (f) seek publicly, alone or in concert with others, to amend any provision of the Company’s charter or bylaws; (g) demand an inspection of the Company’s books and records pursuant to Section 302A.461 of
the Minnesota Business Corporation Act; (h) make or seek to make an offer or proposal (with or without conditions) with respect to any merger, tender (or exchange) offer, acquisition, recapitalization, restructuring, disposition or other
business combination involving the Company, or encourage, facilitate, initiate or support any third party in making or seeking to make such an offer or proposal; (i) violate any other such restrictions you agree to in writing (including email)
prior to or subsequent to the signing of this Agreement or (j) enter into any negotiations, agreements or understandings with any third party with respect to the foregoing clauses (a) through (i) of this Paragraph 7, or knowingly advise,
assist, encourage or seek to persuade any third party to take any action with respect to any of the foregoing clauses (a) through (j) of this Paragraph 7. Nothing in this Paragraph 7 shall be deemed to prohibit you or your Affiliates or
Representatives from communicating privately with the Company’s directors, officers and Representatives so long as such private communications would not be reasonably determined to trigger public disclosure obligations for any party and would
not circumvent any of your obligations under this Paragraph 7. 
 8.    The Company shall hold its 2019 annual meeting of shareholders
(the “2019 Annual Meeting”) no earlier than 45 days after the Termination Date. The Company shall consider any notice from Engaged Capital pursuant to Section 1.09 of the Company’s Amended and Restated By-laws with respect to the 2019 Annual Meeting timely if such notice is received by the Company by 5:30 PM New York City time on the 15th day following the Termination Date. In addition to any other access rights
granted to you by the Company in writing (including email) prior to or subsequent to the signing of this Agreement, prior to the Termination Date and subject to applicable laws, the Company shall provide Glenn W. Welling reasonable opportunities to
meet with the Chief Executive Officer of the Company or the Chairman of the Board on a periodic basis, including reasonable access to certain advisors of the Company; provided, however, that the Company shall not be required to provide any such
opportunities that would unreasonably interfere with the business or operations of the Company. 
 9.    This Agreement shall terminate
at 5:30 PM New York City time on the date that is six months from the effective date of this Agreement, except that the Company may terminate this Agreement at any time by giving Engaged Capital written notice (including by email) (the effective
date of termination, the “Termination Date”); provided, however, that you and your Representatives shall maintain in accordance with the confidentiality obligations set forth herein any Confidential Information constituting
trade secrets for such longer time as such information constitutes a trade secret of the Company or any of its Affiliates under applicable law; and provided, further, (x) that any liability for breach of this Agreement prior to
such termination and (y) the provisions of Paragraph 8 through Paragraph 11 and Paragraph 13 through Paragraph 15 shall survive such termination. 

10.    Engaged Capital acknowledges that it is aware (and Engaged Capital shall also advise each of its Representatives that is provided
with Confidential Information) of its obligations under applicable United States securities laws. No later than 8:30 AM New York City time on the second business day following the Termination Date, the Company shall publicly disclose

  
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any and all material nonpublic information delivered to Engaged Capital by means of a filing on Form 8-K or other periodic report required or permitted to
be filed under applicable laws an appropriate summary description of any Confidential Information that the Company determines, based on advice of the Company’s outside counsel, constitutes material nonpublic information as of such date. In the
event that the Company fails to comply with the foregoing obligation by 8:30 AM New York City time on the second business day following the Termination Date, then Engaged Capital shall thereafter be permitted to publicly disclose without liability a
summary that reflects any Confidential Information that it in good faith believes constitutes material nonpublic information regarding the Company. The occurrence of any of the actions described in the preceding two sentences (each a
“Cleansing Event”) shall constitute definitive proof that Engaged Capital is free from any trading restriction imposed by or associated with this Agreement and not in possession of material
non-public information of the Company, and the Company and its Representatives shall not directly or indirectly, publicly (including in court) or privately (including via confidential communications with the
SEC) take any contrary position. In addition, nothing contained in this Agreement shall restrict the ability of Engaged Capital from purchasing, selling or otherwise trading securities of the Company pursuant to any Rule 10b5-1 under the Exchange Act trading plan adopted prior to the execution of this Agreement. 

11.    The parties acknowledge and agree that money damages would not be a sufficient remedy for any breach (or threatened breach) of this
Agreement and that the non-breaching party shall be entitled to equitable relief, including injunction and specific performance, as a remedy for any such breach (or threatened breach), without proof of
damages, and the parties further agree to waive, and to instruct their Representatives to waive any requirement for the securing or posting of any bond in connection with any such remedy. Such remedies shall not be the exclusive remedies for a
breach of this Agreement, but will be in addition to all other remedies available at law or in equity. If any action, suit or proceeding is initiated by a party to enforce the provisions hereof, the prevailing party in such action, suit or
proceeding shall be entitled to reimbursement of all costs and expenses, including attorneys’ fees, incurred by such prevailing party in connection therewith. 

12.    You agree that (a) none of the Company or its Representatives shall have any liability to you or any of your Representatives
resulting from the selection, use or content of the Confidential Information by you or your Representatives and (b) none of the Company or its Representatives makes any representation or warranty, express or implied, as to the accuracy or
completeness of any Confidential Information. All Confidential Information shall remain the property of the Company and its Affiliates. Neither you nor any of your Representatives shall by virtue of any disclosure of and/or your or their use of any
Confidential Information acquire any rights with respect thereto, all of which rights shall remain exclusively with the Company and its Affiliates. No failure or delay by any party or any of its Representatives in exercising any right, power or
privilege under this Agreement shall operate as a waiver thereof, and no modification hereof shall be effective, unless in writing and signed by the parties hereto. 

13.    All notices and other communications to be given or delivered under or by reason of the provisions of this Agreement shall be in
writing and shall be deemed to have been given (a) when delivered by hand, with written confirmation of receipt; (b) upon sending if sent by electronic mail to the electronic mail addresses below, with confirmation of receipt from the
receiving party by electronic mail; (c) one day after being sent by a nationally recognized 

  
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overnight carrier to the addresses set forth below or (d) when actually delivered if sent by any other method that results in delivery, with written confirmation of receipt: 

 

			
	If to the Company:	  	with mandatory copies (which shall not constitute notice) to:
		
	 Apogee Enterprises, Inc.
 4400 West 78th Street,
Suite 520
 Minneapolis, MN 55435
 Attention: Patricia A.
Beithon
 Email: pbeithon@apog.com
	  	 Sidley Austin LLP
 787 Seventh Avenue, 23rd
Floor
 New York, NY 10019

Attention:   Kai H. Liekefett

          Scott R. Williams

Email:   kliekefett@sidley.com

         swilliams@sidley.com

		
	If to Engaged Capital:	  	with mandatory copies (which shall not constitute notice) to:
		
	 Engaged Capital, LLC
 610 Newport Center Drive,
Suite 250
 Newport Beach, CA 92660
 Attention: Glenn W.
Welling
 Email: glenn@engagedcapital.com
	  	 Olshan Frome Wolosky LLP
 1325 Avenue of the
Americas
 New York, NY 10019

Attention:   Steve Wolosky

          Ryan P. Nebel

Email:   swolosky@olshanlaw.com

         rnebel@olshanlaw.com

 14.    The illegality, invalidity or unenforceability of any provision hereof under the laws of any
jurisdiction shall not affect its legality, validity or enforceability under the laws of any other jurisdiction, nor the legality, validity or enforceability of any other provision. 

15.    This Agreement and all matters arising out of or relating to this Agreement or the validity thereof shall be governed by, and
construed in accordance with, the laws of the State of Minnesota, without giving effect to its principles or rules regarding conflicts of laws. The parties agree that the State and Federal courts in Hennepin County, Minnesota shall have exclusive
jurisdiction for purposes of any action, suit or proceeding arising hereunder. Each party hereto hereby irrevocably submits with regard to any such action or proceeding for itself and in respect of its property, generally and unconditionally, to the
personal jurisdiction of the aforesaid courts and agrees that it will not bring any action relating to this Agreement in any court other than the aforesaid courts. Each party hereto hereby irrevocably waives, and agrees not to assert in any action
or proceeding with respect to this Agreement, any claim that it is not personally subject to the jurisdiction of the above-named courts for any reason, (b) any claim that it or its property is exempt or immune from jurisdiction of any such
court or from any legal process commenced in such courts (whether through service of notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise) and (c) to the fullest extent permitted
by applicable legal requirements, any claim that (i) the suit, action or proceeding in such court is brought in an inconvenient forum, (ii) the venue of such suit, action or proceeding is improper or (iii) this Agreement, or the
subject matter hereof, may not be enforced in or by 

  
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such courts. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT. 

16.    As used in this Agreement: (a) the terms “Affiliate” and “Associate” (and any plurals
thereof) shall have the meanings ascribed to such terms under Rule 12b-2 promulgated by the SEC under the Exchange Act, and (b) the term “Representatives” shall mean a person’s
Affiliates and Associates and its and their respective directors, officers, employees, partners, members, managers, consultants, accountants, attorneys, legal or other advisors, agents and other representatives. Notwithstanding anything in this
Agreement to the contrary, without the prior written consent of the Company, you shall not directly or indirectly share any Confidential Information with any of your Representatives other than (i) your officers, directors (including any members
of your advisory board) and employees, (ii) Olshan Frome Wolosky LLP, and (iii) such other advisors that the Company and you agreed upon in writing (including email). 

17.    This Agreement constitutes the only agreement between the parties hereto with respect to the subject matter hereof and supersedes
all prior agreements, understandings, negotiations and discussions, whether oral or written. This Agreement may be amended only by an agreement in writing executed by the parties hereto. 

18.    This Agreement may be executed in separate counterparts (including by fax, .jpeg, .gif, .bmp and .pdf), each of which when so
executed shall be an original, but all such counterparts shall together constitute one and the same instrument. 
 19.    Each party to
this Agreement acknowledges that it has been represented by counsel of its choice throughout all negotiations that have preceded the execution of this Agreement, and that it has executed this Agreement with the advice of such counsel. Each party and
its counsel cooperated and participated in the drafting and preparation of this Agreement, and any and all drafts relating thereto exchanged among the parties hereto shall be deemed the work product of all of the parties and may not be construed
against any party by reason of its drafting or preparation. Accordingly, any rule of law or any legal decision that would require interpretation of any ambiguities in this Agreement against any party that drafted or prepared it is of no application
and is hereby expressly waived by each of the parties hereto, and any controversy over interpretations of this Agreement shall be decided without regards to events of drafting or preparation. 

 

					
	 Very truly yours,
  

APOGEE ENTERPRISES, INC.

		
	By:	 	/s/ Patricia A. Beithon
		 	Name:	 	Patricia A. Beithon
		 	Title:	 	General Counsel and Secretary

  
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 ACCEPTED AND AGREED TO BY: 

 

					
	 Engaged Capital Flagship Master Fund, LP
  

By: Engaged Capital, LLC

       General Partner

		
	By:	 	/s/ Glenn W. Welling
		 	Name:	 	Glenn W. Welling
		 	Title:	 	Founder and Chief Investment Officer

  

					
	 Engaged Capital Co-Invest VIII, LP

 
 By: Engaged Capital, LLC

       General Partner

		
	By:	 	/s/ Glenn W. Welling
		 	Name:	 	Glenn W. Welling
		 	Title:	 	Founder and Chief Investment Officer

  

					
	 Engaged Capital Flagship Fund, LP

 
 By: Engaged Capital, LLC

       General Partner

		
	By:	 	/s/ Glenn W. Welling
		 	Name:	 	Glenn W. Welling
		 	Title:	 	Founder and Chief Investment Officer

  

					
	Engaged Capital Flagship Fund, Ltd.
		
	By:	 	/s/ Glenn W. Welling
		 	Name:	 	Glenn W. Welling
		 	Title:	 	Director

 
					
	Engaged Capital, LLC
		
	By:	 	/s/ Glenn W. Welling
		 	Name:	 	Glenn W. Welling
		 	Title:	 	Founder and Chief Investment Officer

  

					
	Engaged Capital Holdings, LLC
		
	By:	 	/s/ Glenn W. Welling
		 	Name:	 	Glenn W. Welling
		 	Title:	 	Sole Member

  

	
	
	/s/ Glenn W. Welling
	Glenn W. WellingExhibit 10.1

 

December 10, 2018

 

Via
Email and Hand Delivery

Mr. James A. Joyce

Chief Executive Officer

 

Re: Separation and Consulting Agreement

 

Dear James:

 

This letter sets forth
the substance of our agreement (the “Agreement”) regarding your transition and separation from Aethlon
Medical, Inc. (the “Company”). This Agreement will become effective only upon the Effective Date specified
in Section 11 below.

 

1.              
Separation. Your employment from any and all employment and officer positions you hold or have held shall
cease effective December 10, 2018 (the “Separation Date”), which will be your last day of employment
with the Company. Your service on the Company’s Board of Directors (the “Board”) shall also cease
as of the Separation Date. Pursuant to the terms of your Employment Agreement with the Company dated April 1, 1999, as amended
by Amendment No. 1 to Employment Agreement, dated October 16, 2015 (together, the “Employment Agreement”),
and provided that the Effective Date occurs, the Company will provide you with the involuntary termination benefits specified in
Section 4.3 of your Employment Agreement, which include, for the avoidance of doubt (i) commencing on the 30th
day following your Separation Date, continued payment of your current base salary for twelve (12) months (the “Severance
Period”), and (ii) payment of COBRA premiums for up to twelve (12) months (collectively, the “Separation
Benefits”). The Separation Benefits will be paid in the forms and at the times specified in the Employment Agreement.
Your receipt of the Separation Benefits is expressly conditioned upon your continuing to comply with your obligations under the
Employment Agreement, including Article V thereof, and the Effective Date.

 

2.              
Consultancy. The Company agrees to retain you as a consultant, and you agree to provide consulting services,
under the terms specified below.

 

a.    
Consulting Period. The consulting relationship shall commence on the Separation Date and continue until
the earlier of: (i) the date that is twelve (12) months from the Separation Date; (ii) in the event you breach your Post-Employment
Obligations (as defined in Section 2(e) below), the date of any such breach; or (iii) a date mutually agreed between you and the
Board (the “Consulting Period”).

 

b.    
Consulting Services. You agree to make yourself available to provide consulting services consistent with
your expertise and experience, at the request of the Board, up to a maximum of ten (10) hours per month (the “Consulting
Services”). You agree to exercise the highest degree of professionalism and utilize your expertise and creative talents
to the fullest in performing the Consulting Services. Your relationship with the Company during the Consulting Period will be that
of an independent contractor, and nothing in this Agreement is intended to, or should be construed to, create a partnership, agency,
joint venture or employment relationship after the Separation Date.

 

c.     
Consulting Compensation. You will be paid at the rate of $5,000 per month for your Consulting Services
during the Consulting Period (the “Consulting Fees”). The Consulting Fees shall be payable in equal monthly
installments on the first payroll date following each month and, because you will be providing the Consulting Services as an independent
contractor, the Company will not withhold any amount for taxes, social security or other payroll deductions from the Consulting
Fees.

 

d.    
Protection of Confidential and Proprietary Information, Non-Compete Period. You acknowledge your obligations
and promises to the Company under Article V, Section 5.1 (Confidentiality), Section 5.2 (Non-Competition; Non-Solicitation; etc.),
Section 5.3 (Non-Disparagement), Section 5.4 (Remedies), and Section 5.5 (Ownership of Inventions) of the Employment Agreement
(collectively, the “Post-Employment Obligations”) and you agree that such Post-Employment Obligations
shall continue to apply in full force and effect during the Consulting Period; for the avoidance of doubt, the length of the Non-Compete
Period (as defined in the Employment Agreement) extends through the Consulting Period and your continued receipt of the Consulting
Fees and Separation Benefits during the Consulting Period is contingent on your compliance with the Post-Employment Obligations.
Any and all work product you create in connection with the Consulting Services will be the sole and exclusive property of the Company.
You hereby assign to the Company all right, title, and interest in all inventions, techniques, processes, materials, and other
intellectual property developed in the course of performing the Consulting Services.

 

 

 

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e.     
Authority and Facilities Usage During Consulting Period. After the Separation Date, you will have no authority
to bind the Company (or to represent that you have authority to bind the Company) to any contractual obligations, whether written,
oral or implied. You hereby agree that after the Separation Date, you will not represent or purport to represent the Company in
any manner whatsoever to any third party, unless authorized to do so in writing by the Board. Access to and use of Company facilities
or equipment to perform the Consulting Services will be coordinated through the Board or the Company’s Chief Executive Officer.

 

f.     
Breach of Obligations. If you breach your Post-Employment Obligations or the nondisparagement obligations
under this Agreement during the Consulting Period, the Company’s obligation to pay you Consulting Compensation and your severance
under the Employment Agreement will cease immediately. Nothing in this paragraph waives the Company’s right to pursue other
action against you for any breach of your obligations under this Agreement or the Employment Agreement.

 

3.              
Accrued Salary and Vacation. On the Separation Date, the Company shall pay you all accrued salary, and
all accrued and unused vacation, earned through the Separation Date, subject to standard payroll deductions and withholdings. You
are entitled to these payments by law.

 

4.              
Equity Awards. The stock options to purchase Company common stock that you hold as of your Separation
Date (the “Options”) and the restricted stock units to be issued to you in Company common stock that
you hold as of your Separation Date (the “RSUs” and, collectively with the Options, the “Equity
Awards”) will continue to vest during the Consulting Period. All terms, conditions, and limitations applicable to
your Equity Awards will remain in full force and effect pursuant to the applicable Equity Award agreements between you and the
Company, the applicable equity incentive plan documents, and any other documents applicable to the Equity Awards (the “Equity
Documents”). You will be eligible to exercise any vested Options for up to the period set forth in the Equity Documents
and you will immediately forfeit any unvested RSUs upon conclusion of the Consulting Period. Pursuant to tax rules, any Options
that you hold which are “incentive stock options” under Section 422 of the Internal Revenue Code of 1986, as amended,
shall cease to qualify as “incentive stock options” on the date three (3) months following your Separation Date. You
are advised by the Company to seek independent legal advice with respect to tax and securities law issues regarding your Options
and any sale of Company stock you may make.

 

5.              
Other Compensation or Benefits. You acknowledge that, except as expressly provided in this Agreement,
you will not receive any additional compensation, severance or benefits after the Separation Date. Because your relationship with
the Company during the Consulting Period will be that of an independent contractor, other than the severance benefits set forth
in this Agreement, you will not be entitled to any of the benefits that the Company may make available to its employees, including
but not limited to, group health or life insurance, equity or option vesting, profit-sharing or retirement benefits, and you acknowledge
and agree that your relationship with the Company during the Consulting Period will not be subject to the Fair Labor Standards
Act or other laws or regulations governing employment relationships.

 

6.              
Expense Reimbursement. You agree that, no later than thirty (30) days following the Separation Date, you
will submit your final documented employee expense reimbursement statement reflecting all business expenses you incurred through
the Separation Date, if any, for which you seek reimbursement. You will also be reimbursed for reasonable and appropriate expenses
you incur in performing the Consulting Services. All claims for reimbursement shall be submitted by documented business expense
report upon Company-approved forms and shall include receipts. The Company will reimburse you for these expenses pursuant to its
regular business practice.

 

7.              
Return of Company Property. You hereby represent that you have returned to the Company all Company documents
(and all copies thereof) and other Company property in your possession or control, including, but not limited to, Company files,
correspondence, memoranda, notes, notebooks, drawings, books and records, plans, forecasts, reports, proposals, studies, agreements,
financial information, personnel information, sales and marketing information, research and development information, systems information,
specifications, computer-recorded information, tangible property and equipment, credit cards, entry cards, identification badges
and keys; and any materials of any kind that contain or embody any proprietary or confidential information of the Company (and
all reproductions thereof in whole or in part) (“Company Property”); provided, however, that the foregoing
shall not apply to information and documentation you received solely in your capacity as a member of the Board, or as a stockholder,
option holder or restricted stock unit holder of the Company. You also represent that you have performed a good faith search to
ensure that you are no longer in possession or control of any Company Property.

 

 

 

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8.              
Nondisparagement. Both you and the Company (and its officers and directors) agree not to disparage the
other party, and the other party’s officers, directors, employees, shareholders and agents, to any third party in any manner
likely to be harmful to them or their business, business reputation or personal reputation; provided that both you and the Company
may respond accurately and fully to any question, inquiry or request for information when required by legal process.

 

9.              
Release. (a) General Release. In exchange for the consideration provided to you by this Agreement that
you are not otherwise entitled to receive, you hereby generally and completely release the Company and its directors, officers,
employees, shareholders, members, partners, agents, attorneys, predecessors, successors, parent and subsidiary entities, insurers,
affiliates, and assigns from any and all claims, liabilities and obligations, both known and unknown, that arise out of or are
in any way related to events, acts, conduct, or omissions occurring prior to your signing this Agreement. (b) Scope of Release.
This general release includes, but is not limited to: (1) all claims arising out of or in any way related to your employment with
the Company or service on the Board or the termination of that employment or service; (2) all claims related to your compensation
or benefits from the Company, including, but not limited to, salary, bonuses, commissions, vacation pay, expense reimbursements,
severance pay, fringe benefits, stock, stock options, or any other ownership interests in the Company; (3) all claims for
breach of contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing; (4) all tort
claims, including, but not limited to, claims for fraud, defamation, emotional distress, and discharge in violation of public policy;
and (5) all federal, state, and local statutory claims, including, but not limited to, claims for discrimination, harassment, retaliation,
attorneys’ fees, or other claims arising under the federal Civil Rights Act of 1964 (as amended), and the federal Americans
with Disabilities Act of 1990, the federal Age Discrimination in Employment Act of 1967 (as amended) (“ADEA”).
(c) Excluded Claims. The claims described above that you are releasing do not include: (1) any rights or claims for
indemnification you may have pursuant to any written indemnification agreement with the Company to which you are a party, the charter
or bylaws of the Company, or under applicable law; (2) any rights which cannot be waived as a matter of law; or (3) any claims
arising from breach of this Agreement.  Nothing in this Agreement prevents you from filing a charge or complaint with the
Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration,
the Securities and Exchange Commission or any other federal, state or local governmental agency or commission (collectively, the
“Government Agencies”). You understand this Agreement does not limit your ability to communicate with
any Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency,
including providing documents or other information, without notice to the Company.  While this Agreement does not limit your
right to receive an award for information provided to the Securities and Exchange Commission, you understand and agree that, to
maximum extent permitted by law, you are otherwise waiving any and all rights you may have to individual relief based on any claims
that you have released and any rights you have waived by signing this Agreement. You represent and warrant that you are not aware
of any claims you have or might have against any of the Released Parties that are not included in the Released Claims.

 

10.           
Waiver of Unknown Claims. In giving the releases set forth in this Agreement, which include claims which
may be unknown to you at present, you acknowledge that you have read and understand Section 1542 of the California Civil Code which
reads as follows: “A general release does not extend to claims which the creditor does not know or suspect to exist in
his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement
with the debtor.” You hereby expressly waive and relinquish all rights and benefits under that section and any law or
legal principle of similar effect in any jurisdiction with respect to your release of claims herein, including but not limited
to the release of unknown and unsuspected claims.

 

11.           
ADEA Waiver. You acknowledge that you are knowingly and voluntarily waiving and releasing any rights you
may have under ADEA, and that the consideration given for the waiver and release in the preceding paragraph is in addition to anything
of value to which you were already entitled. You further acknowledge that you have been advised by this writing that: (a)
your waiver and release do not apply to any rights or claims that may arise after the execution date of this Agreement; (b)
you should consult with an attorney prior to executing this Agreement; (c)
you have twenty-one (21) days after the date of your receipt of this Agreement to consider this Agreement (although you may choose
to voluntarily execute this Agreement earlier); (d) you have seven
(7) days following the execution of this Agreement by the parties to revoke the Agreement; and (e) this
Agreement will not be effective until the eighth day after you sign this Agreement, provided the revocation period has expired
without your having revoked (the “Effective Date”), and you will not receive the benefits specified by
this Agreement unless and until it becomes effective.

 

 

 

    	 	3	 

     

    

 

12.           
Disputes. Any dispute or controversy between you and the Company, arising out of or relating to this Agreement,
the breach of this Agreement, your employment or consulting to the Company, or otherwise, shall be settled by binding arbitration
conducted by and before a single arbitrator in San Diego, California administered by the American Arbitration Association in accordance
with its Employment Arbitration Rules (the “AAA Rules”) then in effect and judgment on the award rendered
by the arbitrator may be entered in any court having jurisdiction thereof. Both you and the Company hereby waive the right to a
trial by jury or judge, or by administrative proceeding, for any covered claim or dispute. To the extent the AAA Rules conflict
with any provision or aspect of this Agreement, this Agreement shall control. The arbitrator shall have the authority to award
any remedy or relief that a court of competent jurisdiction could order or grant, including, without limitation, the issuance of
an injunction. However, either party may, without inconsistency with this arbitration provision, apply to any court having jurisdiction
over such dispute or controversy and seek interim provisional, injunctive or other equitable relief until the arbitration award
is rendered or the controversy is otherwise resolved. Except as necessary in court proceedings to enforce this arbitration provision
or an award rendered hereunder, or to obtain interim relief, neither a party nor an arbitrator may disclose the existence, content
or results of any arbitration hereunder without the prior written consent of the Company and you. All claims, disputes, or causes
of action under this Agreement, whether by you or the Company, must be brought in an individual capacity, and shall not be brought
as a plaintiff (or claimant) or class member in any purported class or representative proceeding, nor joined or consolidated with
the claims of any other person or entity. The arbitrator may not consolidate the claims of more than one person or entity, and
may not preside over any form of representative or class proceeding. This Agreement is made under the provisions of the Federal
Arbitration Act (9 U.S.C., Sections 1-14) (“FAA”) and will be construed and governed accordingly. It
is the parties’ intention that both the procedural and the substantive provisions of the FAA shall apply. Questions of
arbitrability (that is whether an issue is subject to arbitration under this agreement) shall be decided by the arbitrator. Likewise,
procedural questions which grow out of the dispute and bear on the final disposition are also matters for the arbitrator. However,
where a party already has initiated a judicial proceeding, a court may decide procedural questions that grow out of the dispute
and bear on the final disposition of the matter. Each party shall bear its or his costs and expenses in any arbitration hereunder
and one-half of the arbitrator’s fees and costs; provided, however, that the arbitrator shall have the discretion to award
the prevailing party reimbursement of its or his reasonable attorney’s fees and costs, unless such award is prohibited by
applicable law. Notwithstanding the foregoing, you and the Company shall each have the right to resolve any dispute or cause of
action involving trade secrets, proprietary information, or intellectual property (including, without limitation, inventions assignment
rights, and rights under patent, trademark, or copyright law) by court action instead of arbitration.

 

13.           
Miscellaneous. This Agreement, together with the continuing obligations under the Employment Agreement
described herein, constitutes the complete, final and exclusive embodiment of the entire agreement between you and the Company
with regard to this subject matter. It is entered into without reliance on any promise or representation, written or oral, other
than those expressly contained herein, and it supersedes any other such promises, warranties or representations. This Agreement
may not be modified or amended except in a writing signed by both you and an authorized member of the Board. This Agreement will
bind the heirs, personal representatives, successors and assigns of both you and the Company, and inure to the benefit of both
you and the Company, their heirs, successors and assigns. The failure to enforce any breach of this Agreement shall not be deemed
to be a waiver of any other or subsequent breach. For purposes of construing this Agreement, any ambiguities shall not be construed
against either party as the drafter. If any provision of this Agreement is determined to be invalid or unenforceable, in whole
or in part, this determination will not affect any other provision of this Agreement and the provision in question will be modified
so as to be rendered enforceable in a manner consistent with the intent of the parties insofar as possible. This Agreement will
be deemed to have been entered into and will be construed and enforced in accordance with the laws of the State of California as
applied to contracts made and to be performed entirely within California. This Agreement may be executed in counterparts or with
facsimile signatures, which shall be deemed equivalent to originals.

 

Signature Page Follows.

 

 

 

 

    	 	4	 

     

    

 

 

If this Agreement is acceptable to you, please
sign below and return one original to me.

 

I wish you all the best in your future endeavors.

 

 Sincerely,

 

Aethlon Medical,
Inc.

 

By: /s/ Charles
J. Fisher, Jr.

Name: Charles
J. Fisher, Jr., M.D.

Title: Chairman
of the Board

 

	Agreed and Accepted:	 
	 	 
	/s/ James A. Joyce	__________________
	James A. Joyce	            Date
	Chief Executive Officer	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Signature page to Separation Agreement.

 

 

 

 

    	 	5

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