Document:

Director Comensation Policy

 Exhibit 10.6 
  
 SKINMEDICA, INC. 
  
 DIRECTOR COMPENSATION POLICY 
  
 Non-employee members of the board of directors (the “Board”) of SkinMedica, Inc. (the “Company”) shall be
eligible to receive cash and equity compensation commencing on the first date upon which the Company is subject to the reporting requirements of Section 13 or 15(d)(2) of the Exchange Act (the “Public Trading Date”) as set
forth in this Director Compensation Policy. The cash compensation and option grants described in this Director Compensation Policy shall be paid or be made, as applicable, automatically and without further action of the Board, to each member of the
Board who is not an employee of the Company or any parent or subsidiary of the Company (each, an “Independent Director”) who may be eligible to receive such cash compensation or options, unless such Independent Director
declines the receipt of such cash compensation or options by written notice to the Company. This Director Compensation Policy shall remain in effect until it is revised or rescinded by further action of the Board. All share numbers set forth in this
policy give effect to the reverse stock split to be implemented by the Company in connection with its initial public offering. 
  
 1. Cash Compensation. 
  
 (a) Quarterly Retainer. Each Independent Director shall be eligible to receive a quarterly retainer of $4,000, or $16,000 per year, for service on
the Board. In addition, an Independent Director serving as Chairman of the Board shall be eligible to receive an additional quarterly retainer of $8,750, or $35,000 per year, for service as Chairman of the Board. 
  
 (b) Meeting Stipends. Each Independent Director shall be eligible to
receive a $1,500 stipend for each Board meeting attended in person and $750 for each Board meeting attended by telephone. In addition, each Independent Director who serves on a committee of the Board shall be eligible for an additional stipend of
$1,000 for each committee meeting attended in person and $500 for each committee meeting attended by telephone. 
  
 2. Equity Compensation. The options described below shall be granted under and shall be subject to the terms and provisions of the Company’s
2005 Equity Incentive Award Plan (the “2005 Plan”) and shall be granted subject to the execution and delivery of option agreements, including attached exhibits, in substantially the same forms previously approved by the
Board, setting forth the vesting schedule applicable to such options and such other terms as may be required by the 2005 Plan. 
  
 (a) Initial Options. A person who is an Independent Director as of the Public Trading Date shall be eligible to receive a non-qualified stock
option to purchase 25,000 shares of common stock (subject to adjustment as provided in the 2005 Plan) on the Public Trading Date, and (ii) a person who is initially elected or appointed to the Board following the Public Trading Date, and who is an
Independent Director at the time of such initial election or appointment, shall be eligible to receive a non-qualified stock option to purchase 25,000 shares of common stock (subject to adjustment as provided in the 2005 Plan) on the date of such
initial election or appointment (each, an “Initial Option”). 
  
 (b) Subsequent Options. A person who is an Independent Director automatically shall be eligible to receive a non-qualified stock option to purchase 10,000 shares of common stock (subject to adjustment as
provided in the 2005 Plan) on the date of each annual meeting of the Company’s stockholders after the Public Trading Date. An Independent Director elected for the first time to the Board at an annual meeting of stockholders shall only receive
an Initial Option in connection with such election, and shall not receive a Subsequent Option on the date of such meeting as well. 

 (c) Chairman of the Board. On the date of each annual meeting of the Company’s stockholders
after the Public Trading Date, an Independent Director serving as Chairman of the Board shall be eligible to receive a non-qualified stock option to purchase 15,000 shares of common stock (subject to adjustment as provided in the 2005 Plan).

  
 (d) Committee Chairmen. On the date of each
annual meeting of the Company’s stockholders after the Public Trading Date, (i) the chairman of the Audit Committee shall be eligible to receive a non-qualified stock option to purchase 5,000 shares of common stock (subject to adjustment as
provided in the 2005 Plan), (ii) the chairman of the Compensation Committee shall be eligible to receive a non-qualified stock option to purchase 2,500 shares of common stock (subject to adjustment as provided in the 2005 Plan), and (iii) the
chairman of the Corporate Governance Committee shall be eligible to receive a non-qualified stock option to purchase 2,500 shares of common stock (subject to adjustment as provided in the 2005 Plan). The option grants described in clauses 2(b), 2(c)
and 2(d) shall be referred to as “Subsequent Options.” 
  
 (e) Termination of Employment of Employee Directors. Members of the Board who are employees of the Company or any parent or subsidiary of the Company who subsequently terminate their employment with the Company
and any parent or subsidiary of the Company and remain on the Board will not receive an Initial Option grant pursuant to clause 2(a) above, but to the extent that they are otherwise eligible, will be eligible to receive, after termination from
employment with the Company and any parent or subsidiary of the Company, Subsequent Options as described in clauses 2(b), 2(c) and 2(d) above. 
  
 (f) Terms of Options Granted to Independent Directors. 
  
 (i) Exercise Price. The per share exercise price of each option granted to an Independent Director shall equal 100% of the Fair Market Value (as
defined in the 2005 Plan) of a share of common stock on the date the option is granted; provided, however, that the per share exercise price of each option granted to an Independent Director on the Public Trading Date shall equal the
initial public offering price per share. 
  
 (ii) Vesting.
Initial Options granted to Independent Directors shall become exercisable in thirty-six equal monthly installments of 1/36 of the shares subject to such option on the first day of each calendar month following the date of the Initial Option grant,
such that each Initial Option shall be 100% vested on the first day of the 36th month following the date of grant,
subject to the director’s continuing service on the Board through such dates. Subsequent Options granted to Independent Directors shall become vested in twelve equal monthly installments of 1/12 of the shares subject to such option on the first
day of each calendar month following the date of the Subsequent Option Grant, subject to a director’s continuing service on the Board through such dates (and, with respect to grants to the Chairman of the Board or chairmen of Board committees,
service as Chairman of the Board or chairman of such committee, as applicable, through such dates). The term of each option granted to an Independent Director shall be ten years from the date the option is granted. No portion of an option which is
unexercisable at the time of an Independent Director’s termination of membership on the Board shall thereafter become exercisable.Letter Agreement and Amendment dated December 30, 2004

 Exhibit 10.20 
  

	
	*** CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT (INDICATED BY ASTERISKS) HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT UNDER 17 C.F.R. SECTIONS 200.80(B)(4), 200.83 AND 230.406.

  
 SKINMEDICA, INC. 
 5909 SEA LION
PLACE, SUITE H 
 CARLSBAD, CALIFORNIA 92008 
  
 STRICTLY PRIVATE AND CONFIDENTIAL 
  
 December 30, 2004 
  
 Dow Pharmaceutical Sciences 
 1330A Redwood Way 
 Petaluma, California 94954-1169 
  
 Ladies and Gentlemen: 
  
 As we have discussed, SkinMedica, Inc. (“SkinMedica”) is interested in (i) expanding the licensed territory under that certain
Development and License Agreement (the “Desonide Agreement”) dated as of June 16, 2003 between SkinMedica and Dow Pharmaceutical Sciences (“Dow”) and (ii) exploring the possibility of licensing or
acquiring certain additional intellectual property rights of Dow related to its hydrogel technology used in conjunction with topical steroids as described more particularly in the enclosed term sheet. 
  
 1. Fee. In consideration of the amendment and for the
exclusivity period and right of first refusal set forth below, SkinMedica agrees to pay to Dow a nonrefundable fee of *** on or before December 31, 2004 (the “Fee”). Dow acknowledges that such payment shall be subject to the
approval of SkinMedica’s Board of Directors. 
  
 2.
Expansion of Licensed Territory. Subject to Dow’s timely receipt of the Fee, SkinMedica and Dow hereby agree to amend and restate Section 2.1 of the Desonide Agreement as follows: 
  

	 	“2.1	Subject to the terms and conditions of this Agreement, DOW hereby grants to SKINMEDICA a worldwide, exclusive right and license: (i) under the Licensed Patent, to make or have made,
use, and sell the Licensed Product in the Field; and (ii) to utilize the Licensed Know-How to make or have made, use, and sell the Licensed Product in the Field (sometimes collectively the ‘SKINMEDICA Licenses’). The foregoing shall
not be construed to limit DOW’s rights to use or practice under the Licensed Know-How or the Licensed Patent (a) outside the scope of the SKINMEDICA Licenses or (b) for the purposes of performing its responsibilities under this Agreement,
including the Development Plan.” 

  

	***	Portions of this page have been omitted pursuant to a request for Confidential Treatment and filed separately with the Commission. 

  
  

 All other terms of the Desonide Agreement shall remain unchanged. Capitalized terms used below in this
letter, and not otherwise defined, shall have the meaning assigned to them in the Desonide Agreement. 
  
 3. Exclusivity Period. Subject to Dow’s timely receipt of the Fee, from the date of this letter agreement until the earlier of (i)
March 31, 2005 or (ii) the execution of a definitive license agreement between SkinMedica and Dow pertaining to the enclosed term sheet (the “Exclusivity Period”): 
  

	 	•	 	Dow will not sell, license, offer for sale, offer for license or agree to sell or license any of its rights or assets that are the subject of the term sheet or the transaction
proposed therein; and 

  

	 	•	 	neither Dow nor any of Dow’s subsidiaries, directors, officers, employees, affiliates, agents, advisors or representatives will, directly or indirectly, initiate contact with,
solicit or encourage any inquiries or proposals from, or participate in any discussions or negotiations with, any other corporation, person or other entity concerning any such transaction. 

  
 Dow agrees that any such discussions or negotiations with any party other
than SkinMedica in progress as of the date of this letter agreement will be suspended during the Exclusivity Period, and in no event will Dow accept or enter into any agreement with any party other than SkinMedica concerning any such transaction
during the Exclusivity Period. The Exclusivity Period may be extended by the mutual agreement of the parties. Dow will notify SkinMedica immediately upon receipt by Dow (or any of its subsidiaries, directors, officers, employees, affiliates, agents,
advisors or representatives) during the Exclusivity Period of any proposal for, or inquiry with respect to, any transaction or request described in the preceding paragraph. 
  
 4. Right of First Refusal. Subject to Dow’s timely receipt of the Fee, if at any time prior to June 30,
2005, Dow or any of its Affiliates develops or acquires any rights to, or plans to offer a license with respect to, any topical aqueous gel compound or other product (other than a product containing ***) with application in the Field and covered by
a Valid Claim under the Licensed Patent, Dow shall offer, or cause its applicable Affiliate to offer, to SkinMedica such rights upon terms and conditions developed in good faith by Dow. Such offer shall be made in the form of a written term sheet,
describing the rights and all economic terms in reasonable detail (the “Offer”). Dow shall cooperate with SkinMedica in its due diligence review including, but not limited to, providing SkinMedica with projections for
development cost of such potential candidates. SkinMedica shall have *** to negotiate the licensing of the applicable candidate for development by giving Dow written notice of such election. During such *** period, both SkinMedica and Dow shall
conduct any such negotiations in good faith. 
  
 In the event
SkinMedica does not exercise its right to negotiate with Dow, or the parties otherwise fail to come to terms within *** period of negotiation, Dow or its Affiliate, as applicable, shall then have the right to offer the same rights to any other third
party on terms that are consistent with (or more expensive or onerous than, from the third party’s perspective) those offered to SkinMedica by Dow in the Offer or, if applicable, the last draft of a definitive agreement proposed by Dow to
SkinMedica in the parties’ good faith negotiations. In the event that Dow enters into any definitive agreement with a third party with respect to a development candidate that was the subject of an Offer to SkinMedica in accordance with the
foregoing, Dow shall provide SkinMedica with written confirmation signed by an officer of Dow certifying that Dow has complied with the provisions of this letter. 
  
 5. Term Sheet. The enclosed term sheet serves as a non-binding indication of interest and should not be
considered a binding offer or agreement. The proposed transaction is subject to the completion of our due diligence review, the negotiation and execution of a definitive license agreement and the satisfaction of the other conditions outlined in the
term sheet. 
  
 6. Announcements. The parties will
not make any public announcement concerning this letter agreement, discussions relating to a possible transaction between them, except to the extent required by applicable law and then only if the other party, to the extent practicable, is given
reasonable notice of such disclosure and an opportunity to review and comment thereon. 
  

	***	Portions of this page have been omitted pursuant to a request for Confidential Treatment and filed separately with the Commission. 

  

 7. Expenses. Each party will pay its own expenses incident to this letter agreement, any
definitive agreements and the transaction proposed by the term sheet (whether or not the transaction is consummated), including counsel fees and accounting fees. 
  
 8. Prior Letter Agreement. This letter agreement and the enclosed term sheet shall supersede and replace in
its entirety that certain letter agreement and related term sheet between SkinMedica and Dow dated December 13, 2004. 
  
 9. Governing Law. This letter shall be governed by and construed in accordance with the laws of the State of California without regard to
conflicts of law principles. 
  
 If this letter correctly sets
forth our understanding, please so indicate by signing two duplicate originals of this letter in the space provided below and returning one original to us. We look forward to hearing from you soon. 
  

			
	Very truly yours,
	
	SKINMEDICA, INC.
		
	By:	 	         /s/ Diane S. Goostree

	 	 	 Name: Diane S. Goostree

	 	 	 Title:   Senior Vice President

  

			
	Agreed to as of December 30, 2004:
	
	DOW PHARMACEUTICAL SCIENCES
		
	By:	 	         /s/ Steven R. Smith

	 	 	 Name: Steven R. Smith

	 	 	 Title:   Vice President Marketing and Business Development

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