Document:

Exhibit 10.1

 

 

November 12, 2015

 

Hani Zeini

Address: last address on file with the Company

 

RE:  Separation Agreement

 

Dear Hani,

 

This letter sets forth the terms and conditions of our agreement (the “Agreement”) regarding the separation of your employment with Sientra, Inc. (the “Company”).  This Agreement will become effective on the “Effective Date” as defined in Section 12 herein.  You and the Company hereby agree as follows:

 

1.                                      SEPARATION.  You have submitted and the Company has accepted your resignation as Chief Executive Officer and President of the Company, and all other positions and offices held by you except as set forth in Section 2 below, effective November 12, 2015 (the “Separation Date”).  As soon as practicable following the Separation Date, the Company will pay to you your accrued but unpaid Base Salary and accrued but unpaid vacation after having provided you with a reasonable opportunity to review the Company’s calculations.

 

2.                                      CONTINUING BOARD AND CONSULTING SERVICE. Notwithstanding your resignation of employment with the Company, you will continue to serve as a non-independent, non-employee member of the Board of Directors of the Company (the “Board”) and you will retain your title as “Founder” of the Company. Commencing the day following the end of the Consulting Period, you will begin to be compensated for your service as a member of the Board in the same way that the other non-employee directors serving on the Board are compensated; provided, however, that you will be treated as a newly appointed director as of such date and will receive the compensation provided to newly appointed directors (in terms of timing, form and amount).  In addition, the Company agrees to retain you as a consultant to the Company under the terms specified in a Consulting Agreement of even date herewith (the “Consulting Agreement”).

 

3.                                      SEPARATION BENEFITS.  In exchange for your covenants and releases herein, and provided that this Agreement becomes effective as specified in Section 12 below, the Company will provide you with the following separation benefits (collectively, the “Separation Benefits”), which are equivalent in amount to those described in Section 6.3(a) and (b) of the Employment Agreement between you and the Company effective October 15, 2014 (the “Employment Agreement”). Notwithstanding Section 6.3(c) of the Employment Agreement, the unvested portion of all Company equity awards granted to you will not accelerate as of the Separation Date as such equity awards shall continue to vest for so long as you continue to provide service to the Company as either a member of the Board or a consultant.

 

 

Hani Zeini

November 12, 2015

Page Two

 

(a)                                 Severance.  The Company shall pay you, within thirty (30) days following the Effective Date, a lump sum payment of $871,000, which is equivalent to the sum of (i) twelve (12) months of your base salary as in effect on the Separation Date; and (ii) the annual bonus earned by you in connection with the completion of the fiscal year prior to the Separation Date.

 

(b)                                 Health Care Coverage. Provided further that you timely elect continued coverage under COBRA, the Company shall pay your COBRA premiums to continue your coverage (including coverage for eligible dependents, if applicable) (“COBRA Premiums”) through the period (the “COBRA Premium Period”) starting on the Separation Date and ending on the earliest to occur of: (i) twelve (12) months following the Separation Date; (ii) the date you become eligible for group health insurance coverage through a new employer; or (iii) the date you cease to be eligible for COBRA continuation coverage for any reason, including plan termination.  In the event you become covered under another employer’s group health plan or otherwise cease to be eligible for COBRA during the COBRA Premium Period, you must immediately notify the Company of such event.  Notwithstanding the foregoing, if the Company determines, in its sole discretion, that it cannot pay the COBRA Premiums without a substantial risk of violating applicable law (including, without limitation, Section 2716 of the Public Health Service Act), the Company shall in lieu thereof provide to you a taxable monthly payment in an amount equal to the monthly COBRA premium that you would be required to pay to continue your group health coverage in effect on the date of your employment termination (which amount shall be based on the premium for the first month of COBRA coverage), which payments shall be made on the last day of each month regardless of whether you elect COBRA continuation coverage and shall end on the earlier of (x) the date upon which you obtain other employment or (y) the last day of the 12th calendar month following the Separation date.

 

(c)                                  Tax Withholding. All compensation described in this Section 3 will be subject to the Company’s collection of all applicable federal, state and local income and employment withholding taxes.

 

(d)                                 Final Expense Report. You will have thirty (30) days from the Separation Date to submit a final expense report for business expenses incurred through the Separation Date.  Reimbursement for such expenses will be made to you within five (5) days after receipt of the expense report.

 

(e)                                  Post-Service Option Exercise Period.  With respect to your outstanding options to purchase common stock of the Company and any options you may be granted as a non-employee director, notwithstanding anything to the contrary in the governing plan or award agreement, you will be permitted to exercise such options until the later of (i) the final day of the post-termination exercise period provided in the relevant option agreement (including any longer period applicable in the case of death or disability, if your service terminates by reason of death or disability); or (ii) March 31, 2017; provided, however, that no option shall be exercisable later than the expiration of the term of such option.

 

(f)                                   Legal Fees.  The Company agrees to pay your reasonable legal fees incurred in connection with the negotiation of this Agreement and the Consulting Agreement directly to your counsel promptly upon presentation of a statement(s) of fees actually incurred.

 

 

Hani Zeini

November 12, 2015

Page Three

 

4.                                      OTHER COMPENSATION AND BENEFITS.  Except as expressly provided herein or pursuant to the terms of any plan providing for retirement benefits, including, without limitation, any 401(k) plan, sponsored by the Company for your benefit, you acknowledge and agree that you are not entitled to and will not receive any additional compensation, wages, reimbursement, severance, or benefits from the Company.

 

5.                                      TERMINATION OF THE COMPANY’S OBLIGATIONS.  Notwithstanding any provisions in this Agreement to the contrary and except as consented to above, the Company’s obligations hereunder shall cease and be rendered a nullity immediately should you fail to comply with any of the provisions of this Agreement.

 

6.                                      COMPANY PROPERTY.  You represent and confirm that no later than the final day of the Consulting Period (as defined in the Consulting Agreement) you will return to the Company all Company documents (and all copies thereof) and other property of the Company in your possession or control, including, but not limited to, computer security access, files, business plans, notes, financial information, financial information, data, computer-recorded information, tangible property, including entry cards, keys and any other materials of any nature pertaining to your work with the Company, and any documents or data of any description (or any reproduction of any documents or data) containing or pertaining to any proprietary or confidential material of the Company; provided that you shall be permitted to retain copies of documents relating to the terms and conditions of your employment with the Company (for example, copies of Stock Option Agreements).

 

7.                                      CONFIDENTIAL INFORMATION AND PROPRIETARY INFORMATION OBLIGATIONS.  You acknowledge signing the Company’s Confidentiality, Inventions and Non-Interference Agreement (the “CINA”) containing a confidentiality agreement in connection with your employment with the Company.  You represent that you have complied with and will continue to comply with the terms of the CINA.

 

8.                                      NON-DISPARAGEMENT; INQUIRIES.  You shall not make any disparaging comments or statements about the Company, its services, its products, its work, the members of its Board, or executive management.  The Company will follow its standard neutral reference policy in response to any inquiries regarding you from prospective employers, i.e., only dates of employment and position(s) held will be disclosed.  The Company agrees to direct the members of the Board and executive officers of the Company not to make any disparaging comments about you, your professional capabilities or your service to the Company.  Nothing in this Agreement shall preclude you or the Company (or its employees, officers, directors, or agents) from responding accurately and fully to any question, inquiry or request for information when required by legal process.

 

9.                                      COOPERATION AND ASSISTANCE.  You agree that you will not voluntarily provide assistance, information, encouragement, or advice, directly or indirectly (including through agents or attorneys), to any person or entity in connection with any claim by or against the Company, nor shall you induce or encourage any person or entity to do so.  The foregoing sentence shall not prohibit you from testifying truthfully under subpoena.  You warrant that you have not previously provided assistance, information, encouragement, or advice, directly or

 

 

Hani Zeini

November 12, 2015

Page Four

 

indirectly, to any person or entity in connection with any claim by or against the Company.  You agree to provide (voluntarily and without legal compulsion) prompt cooperation and accurate and complete information to the Company in the event of litigation involving the Company or its officers or directors and to respect and preserve all privileges held by or available to the Company.  The Company agrees to compensate you for your time spent consulting with and traveling to any litigation-related proceeding at a reasonable the rate to be agreed between you and the Company plus reimbursement of reasonable travel costs.

 

10.                               INJUNCTIVE RELIEF.  The parties agree that any remedy at law will be inadequate for any breach by you or the Company of the covenants under Sections 7, 8, and 9 of this Agreement, and that each party shall be entitled to an injunction both preliminary and final, and any other appropriate equitable relief to enforce her or its rights set forth in these Sections.  Such remedies shall be cumulative and non-exclusive, being in addition to any and all other remedies either party may have.

 

11.                               RELEASE OF CLAIMS.

 

(a)                                 General Release.  In exchange for the consideration provided to you under this Agreement to which you would not otherwise be entitled, including but not limited to the Separation Benefits, you hereby generally and completely release the Company and its current and former directors, officers, employees, shareholders, partners, agents, attorneys, predecessors, successors, parent and subsidiary entities, insurers, affiliates, investors and assigns (collectively, the “Released Parties”) of and from any and all claims, liabilities and obligations, both known and known, that arise out of or are in any way related to events, acts, conduct, or omissions occurring prior to or on the date you sign this Agreement (collectively, the “Released Claims”).

 

(b)                                 Scope of Release.  The Released Claims include, but are not limited to: (i) all claims arising out of or in any way related to your employment with the Company, the Employment Agreement, or the termination of your employment: (ii) all claims related to your compensation or benefits from the Company, including salary, bonuses, commissions, vacation pay, expense reimbursements, severance pay, fringe benefits, stock, stock options, or any other ownership interests in the Company: (iii) all claims for breach of contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing; (iv) all tort claims, including claims for fraud, defamation, emotional distress, wrongful termination, and discharge in violation of public policy; and (v) all federal, state, and local statutory claims, including claims for discrimination, harassment, retaliation, attorneys’ fees, or other claims arising under the federal Civil Rights Act of 1964 (as amended), the federal Americans with Disabilities Act of 1990, the Age Discrimination in Employment Act (“ADEA”), the federal Family and Medical Leave Act (as amended) (“FMLA”), the California Family Rights Act (“CFRA”), the California Labor Code (as amended), the California Unruh Act, and the California Fair Employment and Housing Act (as amended).

 

(c)                                  Excluded Claims.  Notwithstanding the foregoing, the following are not included in the Released Claims (the “Excluded Claims”): (i) any rights or claims for indemnification you may have pursuant to any written indemnification agreement with the

 

 

Hani Zeini

November 12, 2015

Page Five

 

Company to which you are a party, the charter, bylaws, or operating agreements of the Company, or under applicable law; (ii) any rights or claims which are not waivable as a matter of law; and (iii) any claims for breach of this Agreement.  In addition, nothing in this Agreement prevents you from filing, cooperating with, or participating in any proceeding before the Equal Employment Opportunity Commission, the Department of Labor, the California Department of Fair Employment and Housing, or any other government agency, except that you acknowledge and agree that you hereby waive your right to any monetary benefits in connection with any such claim, charge or proceeding.  You represent and warrant that, other than the Excluded Claims, 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.

 

(d)                                 Acknowledgements.  You acknowledge that (i) the consideration given to you in exchange for the waiver and release in this Agreement is in addition to anything of value to which you were already entitled; (ii) that you have been paid for all time worked, have received all the leave, leaves of absence and leave benefits and protections for which you are eligible, and have not suffered any on-the-job injury for which you have not already filed a claim; (iii) you have been given sufficient time to consider this Agreement and to consult an attorney or advisor of your choosing; and (iv) you are knowingly and voluntarily executing this Agreement waiving and releasing any claims you may have as of the date you execute it.

 

(e)                                  Company, on behalf of itself, and each of its parents, subsidiaries and affiliates, and each of them, hereby covenants not to sue you and fully releases and discharges you, your descendants, dependents, heirs, executors, administrators, assigns, and successors with respect to and from any and all claims, demands, rights, liens, agreements or contracts (written or oral), covenants, actions, suits, causes of action, obligations, debts, costs, expenses, attorneys’ fees, damages, judgments, orders and liabilities of whatever kind or nature in law, equity or otherwise, to the extent known by the Company or any member of the Board (other than you) as of the Separation Date (each, a “Claim”) (including, without limitation, any Claim arising out of or in any way connected with your service as an officer, director, or employee of Company, or any other transactions, occurrences, acts or omissions or any loss, damage or injury whatever), resulting from any act or omission by or on the part of you, committed or omitted prior to the date of Company’s execution of this Agreement.

 

12.                               ADEA WAIVER.  You knowingly and voluntarily waive and release any rights you may have under the ADEA (defined above).  You also acknowledge that the consideration given for your releases in this Agreement is in addition to anything of value to which you were already entitled.  You are advised by this writing that:  (a) your waiver and release do not apply to any claims that may arise after you sign this Agreement; (b) you should consult with an attorney prior to executing this release (and you have done so); (c) you have twenty-one (21) days within which to consider this release (although you may choose to voluntarily execute this release earlier); (d) you have seven (7) days following the execution of this release to revoke this Agreement; and (e) this Agreement will not be effective until the eighth day after you sign this Agreement, provided that you have not earlier revoked this Agreement (the “Effective Date”).  You will not be entitled to receive any of the benefits specified by this Agreement unless and until it becomes effective.

 

 

Hani Zeini

November 12, 2015

Page Six

 

13.                               SECTION 1542 WAIVER.  In giving the applicable releases set forth herein, which include claims which may be unknown at present, each party acknowledges that you or it have or has read and understand(s) Section 1542 of the Civil Code of the State of California 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.

 

Each party expressly waives and relinquishes all rights and benefits under this section and any law or legal principle of similar effect in any jurisdiction with respect to claims released hereby.

 

14.                               NO ADMISSIONS.  The parties hereto hereby acknowledge that this is a compromise settlement of various matters, and that the promised payments in consideration of this Agreement shall not be construed to be an admission of any liability or obligation by either party to the other party or to any other person whomsoever.

 

15.                               ENTIRE AGREEMENT.  This Agreement and the Consulting Agreement constitute the complete, final and exclusive embodiment of the entire Agreement between you and the Company with regard to the subject matter hereof.  It is entered into without reliance on any promise or representation, written or oral, other than those expressly contained herein.  It may not be modified except in writing signed by you and the Chairman of the Board of the Company.  Each party has carefully read this Agreement, has been afforded the opportunity to be advised of its meaning and consequences by his or its respective attorneys, and signed the same of his or its free will.

 

16.                               SUCCESSORS AND ASSIGNS.  This Agreement shall bind the heirs, personal representatives, successors, assigns, executors, and administrators of each party, and inure to the benefit of each party, its agents, directors, officers, employees, servants, heirs, successors and assigns.

 

17.                               APPLICABLE LAW.  This Agreement shall be deemed to have been entered into and shall 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.

 

18.                               SEVERABILITY.  If a court or arbitrator of competent jurisdiction determines that any term or provision of this Agreement is invalid or unenforceable, in whole or in part, the remaining terms and provisions hereof shall be unimpaired.  Such court or arbitrator will have the authority to modify or replace the invalid or unenforceable term or provision with a valid and enforceable term or provision that most accurately represents the parties’ intention with respect to the invalid or unenforceable term or provision.

 

19.                               INDEMNIFICATION.  You will indemnify and save harmless the Company from any loss incurred directly or indirectly by reason of the falsity or inaccuracy of any representation

 

 

Hani Zeini

November 12, 2015

Page Seven

 

made herein.  The Company will indemnify and save harmless you from any loss incurred directly or indirectly by reason of the falsity or inaccuracy of any representation made herein.  The Company and you acknowledge and agree that the terms of the Company’s standard form of indemnification agreement for members of the Board and executive officers of the Company have applied to you in your role as an executive officer of the Company, and the Company hereby affirms its continuing agreements and obligations as set forth in such indemnification agreement with you.

 

20.                               AUTHORIZATION.  You and the Company warrant and represent that there are no liens or claims of lien or assignments in law or equity or otherwise of or against any of the claims or causes of action released herein and, further, that each of them are fully entitled and duly authorized to give their complete and final general release and discharge.

 

21.                               COUNTERPARTS.  This Agreement may be executed in two counterparts, each of which shall be deemed an original, all of which together shall constitute one and the same instrument.

 

22.                               SECTION HEADINGS.  The section and paragraph headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

 

23.                               PHOTOCOPIES.  A photocopy of this executed Agreement shall be as valid, binding, and effective as the original Agreement.

 

24.                               SECTION 409A.  It is intended that all of the benefits and payments payable under this Agreement satisfy, to the greatest extent possible, an exemption from Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”), and this Agreement will be construed to the greatest extent possible as consistent with those exemptions, and to the extent not so exempt, this Agreement (and any definitions hereunder) will be construed to the greatest extent possible in a manner that complies with Section 409A. For purposes of Section 409A, your right to receive any installment payments under this Agreement (whether severance payments, reimbursements or otherwise) shall be treated as a right to receive a series of separate payments and, accordingly, each installment payment hereunder shall at all times be considered a separate and distinct payment. Notwithstanding any provision to the contrary in this Agreement, if you are deemed by the Company at the time of your separation from service to be a “specified employee” for purposes of Section 409A, and if any of the payments upon separation from service set forth herein and/or under any other agreement with the Company are deemed to be “deferred compensation”, then to the extent delayed commencement of any portion of such payments is required in order to avoid a prohibited distribution under Section 409A and the related adverse taxation under Section 409A, such payments shall not be provided to you prior to the earliest of (i) the expiration of the six-month period measured from the date of your separation from service, (ii) the date of your death or (iii) such earlier date as permitted under Section 409A without the imposition of adverse taxation. If the release revocation period spans two calendar years, payments will commence in the second of those two calendar years to the extent required to comply with Section 409A.

 

 

Please confirm your assent to the foregoing terms and conditions of our Agreement by signing and returning a copy of this letter to me.

 

	
Sincerely,
    	
 
    
	
 
    	
 
    
	
SIENTRA, INC.
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Matthew Pigeon
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Matthew Pigeon
    	
 
    
	
 
    	
(Printed   Name)
    	
 
    
	
 
    	
 
    
	
Title:
    	
Chief Financial Officer
    	
 
    
				

 

Having read and reviewed the foregoing, I hereby agree to and accept the terms and conditions of this Agreement as stated above.

 

	
/s/ Hani Zeini
    	
 
    	
November 12, 2015
    
	
Hani Zeini
    	
Date
    

 

[Signature Page to Separation Agreement – Hani Zeini]Exhibit 10.2

 

CONSULTING AGREEMENT

 

THIS CONSULTING AGREEMENT (the “Agreement”) is made as of November 12, 2015 (the “Effective Date”) by and between SIENTRA, INC., a Delaware corporation (“Company”), and HANI ZEINI (“Consultant”).

 

Company desires to benefit from Consultant’s expertise and experience by retaining Consultant as a consultant, and Consultant wishes to perform consulting services for Company, as provided for below.  Accordingly, Company and Consultant agree as follows:

 

1.                                      ENGAGEMENT OF SERVICES.  Consultant agrees to provide consulting services to Company as described in Exhibit A hereto (collectively, the “Services”) during the term of this Agreement.  Consultant agrees to exercise the highest degree of professionalism and to utilize his expertise and creative talents in performing the Services.  Consultant may not subcontract or otherwise delegate his obligations under this Agreement without Company’s prior written consent.

 

2.                                      CONSULTING PERIOD.  The consulting period shall be the period from November 12, 2015 until December 31, 2016 unless terminated earlier pursuant Sections 7.1 or 7.2 below (the “Consulting Period”).

 

3.                                      COMPENSATION.  As sole compensation for the performance of the Services, Company will pay to Consultant the amount(s) and on the schedule specified in Exhibit A hereto.  Consultant will be reimbursed for any reasonable expenses incurred in connection with the performance of Services under this Agreement provided Consultant submits verification of such expenses as Company may reasonably require.

 

4.                                      INDEPENDENT CONTRACTOR RELATIONSHIP.  Consultant’s relationship with Company will be that of an independent contractor and nothing in this Agreement should be construed to create a partnership, joint venture, or employer-employee relationship.  Consultant is not the agent of Company and is not authorized to make any representation, contract, or commitment on behalf of Company.  Consultant will not be entitled to any of the fringe benefits that Company makes available exclusively to its employees, such as group insurance, profit-sharing, or retirement benefits.  Consultant will be solely responsible for all tax returns and payments required to be filed with or made to any federal, state, or local tax authority with respect to Consultant’s performance of services and receipt of fees under this Agreement.  Company will regularly report amounts paid to Consultant by filing Form 1099-MISC with the Internal Revenue Service as required by law.  Because Consultant is an independent contractor, Company will not withhold or make payments for social security, make unemployment insurance or disability insurance contributions, or obtain worker’s compensation insurance on Consultant’s behalf.  Consultant accepts exclusive liability for complying with all applicable state and federal laws governing self-employed individuals, including obligations such as payment of taxes, social security, disability, and other contributions based on fees paid to Consultant, his/her agents, or employees under this Agreement, and agrees to indemnify and defend Company against any and all such taxes or contributions, including penalties and interest.

 

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5.                                      TRADE SECRETS; INTELLECTUAL PROPERTY RIGHTS.

 

5.1                               Proprietary Information.  Consultant agrees during the term of this Agreement and thereafter that Consultant will take all steps necessary to hold Company’s Proprietary Information in trust and confidence, will not use Proprietary Information in any manner or for any purpose not expressly set forth in this Agreement, and will not disclose any such Proprietary Information to any third party without first obtaining Company’s express written consent on a case-by-case basis.  By way of illustration but not limitation, “Proprietary Information” includes (a) tangible and intangible information relating to compounds, biological materials, cell lines, samples of assay components, media and/or cell lines and procedures and formulations for producing any such assay components, media and/or cell lines, formulations, products, ideas, processes, know-how, inventions, developments, designs, techniques, formulas, works of authorship, methods, developmental or experimental work, clinical data, test data, improvements, discoveries and trade secrets (hereinafter collectively referred to as “Inventions”); and (b) plans for research, development and new products, marketing and selling information, business plans, budgets and unpublished financial statements, licenses, prices and costs, suppliers and customers, and (c) information regarding the skills and compensation of employees or other consultants of Company.  In addition, and notwithstanding any other provision of this Agreement to the contrary, Company “Work Product” (defined below) shall constitute Proprietary Information.  Notwithstanding the other provisions of this Agreement, nothing received by Consultant will be considered to be Proprietary Information if Consultant can demonstrate by clear and convincing evidence that: (1) it has been published or is otherwise readily available to the public other than by a breach of this Agreement; (2) it has been rightfully received by Consultant from a third party without confidential limitations; (3) it has been independently developed for Consultant by personnel or agents having no access to Company Proprietary Information; or (4) it was known to Consultant prior to its first receipt from Company, except in the case of Work Product, which shall not be subject to the exception in this clause (4).

 

5.2                               Third Party Information.  Consultant understands that Company has received and will in the future receive from third parties confidential or proprietary information (“Third Party Information”) subject to a duty on Company’s part to maintain the confidentiality of such information and use it only for certain limited purposes.  Consultant agrees to hold Third Party Information in confidence and not to disclose to anyone (other than Company personnel who need to know such information in connection with their work for Company) or to use, except in connection with Consultant’s work for Company, Third Party Information unless expressly authorized in writing by an executive officer of Company.

 

5.3                               No Conflict of Interest.  Consultant agrees during the term of this Agreement not to accept work or enter into a contract or accept an obligation inconsistent or incompatible with Consultant’s obligations under this Agreement or the scope of services rendered for Company.  Consultant warrants that to the best of his knowledge, there is no other existing contract or duty on Consultant’s part inconsistent with this Agreement.  Consultant further agrees not to disclose to Company, or bring onto Company’s premises, or induce Company to use any confidential information that belongs to anyone other than Company or Consultant.

 

5.4                               Disclosure of Work Product.  As used in this Agreement, the term “Work Product” means any Invention, whether or not patentable, and all related know-how, designs,

 

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trademarks, formulae, processes, manufacturing techniques, trade secrets, ideas, artwork, software or other copyrightable or patentable works.  Consultant agrees to disclose promptly in writing to Company, or any person designated by Company, all Work Product which is solely or jointly conceived, made, reduced to practice, or learned by Consultant in the course of any Services performed for Company.

 

5.5                               Assignment of Company Work Product.  Consultant irrevocably assigns to Company all right, title, and interest worldwide in and to Work Product and all applicable intellectual property rights related to Work Product, including without limitation, copyrights, trademarks, trade secrets, patents, moral rights, contract, and licensing rights (the “Proprietary Rights”).  Consultant retains no rights to use Work Product and agrees not to challenge the validity of Company’s ownership in Work Product.

 

5.6                               Waiver of Assignment of Other Rights.  If Consultant has any rights to Work Product that cannot be assigned to Company, Consultant unconditionally and irrevocably waives the enforcement of such rights and all claims and causes of action of any kind against Company with respect to such rights.  Consultant agrees, at Company’s request and expense, to consent to and join in any action to enforce such rights.  If Consultant has any right to Work Product that cannot be assigned to Company or waived by Consultant, Consultant unconditionally and irrevocably grants to Company during the term of such rights, an exclusive, irrevocable, perpetual, worldwide, fully paid and royalty-free license, with rights to sublicense through multiple levels of sublicensees, to reproduce, create derivative works of, distribute, publicly perform and publicly display by all means now known or later developed, such rights.

 

5.7                               Assistance.  Consultant agrees to cooperate with Company or its designee(s), both during and after the term of this Agreement, in the procurement and maintenance of Company’s rights in Company Work Product, and to execute, when requested, any other documents deemed necessary by Company to carry out the purpose of this Agreement.

 

5.8                               Enforcement of Proprietary Rights.  Consultant will assist Company in every proper way to obtain, and from time to time enforce, United States and foreign Proprietary Rights relating to Company Work Product in any and all countries.  To that end Consultant will execute, verify, and deliver such documents and perform such other acts (including appearances as a witness) as Company may reasonably request for use in applying for, obtaining, perfecting, evidencing, sustaining, and enforcing such Proprietary Rights and the assignment thereof.  In addition, Consultant will execute, verify, and deliver assignments of such Proprietary Rights to Company or its designee.  Consultant’s obligation to assist Company with respect to Proprietary Rights relating to such Company Work Product in any and all countries shall continue beyond the termination of this Agreement, but Company shall compensate Consultant at a reasonable rate after such termination for the time actually spent by Consultant at Company’s request on such assistance.

 

5.9                               Execution of Documents.  In the event Company is unable for any reason, after reasonable effort, to secure Consultant’s signature on any document needed in connection with the actions specified in the preceding Sections 5.7 and 5.8, Consultant hereby irrevocably designates and appoints Company and its duly authorized officers and agents as Consultant’s agent and attorney in fact, which appointment is coupled with an interest, to act for and in his

 

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behalf to execute, verify, and file any such documents and to do all other lawfully permitted acts to further the purposes of the preceding paragraph with the same legal force and effect as if executed by Consultant.  Consultant hereby waives and quitclaims to Company any and all claims, of any nature whatsoever, which Consultant now or may hereafter have for infringement of any Proprietary Rights assigned hereunder to Company.

 

6.                                      CONSULTANT REPRESENTATIONS AND WARRANTIES. Consultant hereby represents and warrants that (a) Work Product will be an original work of Consultant; (b) neither Work Product nor any element thereof will be subject to any restrictions or to any mortgages, liens, pledges, security interests, encumbrances, or encroachments; (c) Consultant will not grant, directly or indirectly, any rights or interest whatsoever in Work Product to third parties; and (d) Consultant has full right and power to enter into and perform this Agreement without the consent of any third party.

 

7.                                      TERMINATION.

 

7.1                               Termination by Company.  Company may terminate this Agreement at its convenience and without any breach by Consultant upon 30 days prior written notice to Consultant.  Company may also terminate this Agreement immediately in its sole discretion upon Consultant’s material breach of Section 5 and/or Section 7.3.  In the event Company terminates this Agreement other than as a result of Consultant’s material breach of Section 5 and/or Section 7.3, (i) Consultant shall be entitled to continued payment of the Consulting Fee through the remainder of the Consulting Period, payable on the same schedule as if his consultancy had not been terminated; and (ii)  Consultant’s then outstanding equity awards covering common stock of the Company shall continue to vest and, if applicable, become exercisable and any forfeiture restrictions or rights of repurchase thereon shall lapse, in each case, on the same schedule had Consultant continued to provide the Services through the end of the Consulting Period.

 

7.2                               Termination by Consultant.  Consultant may terminate this Agreement at any time upon 30 days prior written notice to Company.

 

7.3                               Non-Competition.  During the term of this Agreement, Consultant agrees not to directly or indirectly, whether as owner, partner, shareholder, director, manager, consultant, agent, employee, co-venturer or otherwise, engage, participate or invest in any business activity anywhere in the United States that develops, manufactures or markets any products, or performs any services involving breast implants or that are otherwise materially competitive with or substantially similar to the products or services of the Company, or products or services that the Company has under significant development or that are or were the subject of active and significant planning at any time during your service relationship with the Company; provided that this shall not prohibit any possible investment in publicly traded stock of a company representing less than one percent of the stock of such company.

 

7.4                               Noninterference with Business.  During the term of this Agreement and for a period of one (1) year immediately following termination of this Agreement by either party, Consultant agrees not to solicit or induce any employee, consultant, agent, or independent contractor to terminate or breach an employment, contractual, or other relationship with Company.

 

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7.5                               Return of Company Property.  Upon termination of the Agreement or earlier as requested by Company, Consultant will deliver to Company any and all drawings, notes, memoranda, specifications, devices, formulas, and documents, together with all copies thereof, and any other material containing or disclosing any Work Product, Third Party Information, or Proprietary Information of Company.  Consultant further agrees that any property situated on Company’s premises and owned by Company, including all forms of storage media, filing cabinets or other work areas, is subject to inspection by Company personnel at any time with or without notice.

 

7.6                               Survival.  The following provisions shall survive termination of this Agreement:  Section 5, Section 6, Section 7.3, Section 7.4, Section 7.5 and Section 8.

 

8.                                      GENERAL PROVISIONS.

 

8.1                               Governing Law.  This Agreement will be governed and construed in accordance with the laws of the State of California as applied to transactions taking place wholly within California between California residents.  Consultant hereby expressly consents to the personal jurisdiction of the state and federal courts located in Los Angeles, California for any lawsuit filed there against Consultant by Company arising from or related to this Agreement.

 

8.2                               Severability.  In case any one or more of the provisions contained in this Agreement shall, for any reason, be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect the other provisions of this Agreement, and this Agreement shall be construed as if such invalid, illegal, or unenforceable provision had never been contained herein.  If moreover, any one or more of the provisions contained in this Agreement shall for any reason be held to be excessively broad as to duration, geographical scope, activity, or subject, it shall be construed by limiting and reducing it, so as to be enforceable to the extent compatible with the applicable law as it shall then appear.

 

8.3                               No Assignment.  This Agreement may not be assigned by Consultant without Company’s consent, and any such attempted assignment shall be void and of no effect.

 

8.4                               Notices.  All notices, requests, and other communications under this Agreement must be in writing and must be mailed by registered or certified mail, postage prepaid and return receipt requested, or delivered by hand to the party to whom such notice is required or permitted to be given.  If mailed, any such notice will be considered to have been given five (5) business days after it was mailed, as evidenced by the postmark.  If delivered by hand, any such notice will be considered to have been given when received by the party to whom notice is given, as evidenced by written and dated receipt of the receiving party.  The mailing address for notice to either party will be the address shown on the signature page of this Agreement.  Either party may change its mailing address by notice as provided by this section.

 

8.5                               [Intentionally omitted.]

 

8.6                               Injunctive Relief.  A breach of any of the promises or agreements contained in this Agreement may result in irreparable and continuing damage to Company for which there may be no adequate remedy at law, and Company is therefore entitled to seek injunctive relief as well as such other and further relief as may be appropriate.

 

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8.7                               Export.  Consultant agrees not to export, directly or indirectly, any U.S. source technical data acquired from Company or any products utilizing such data to countries outside the United States, which export may be in violation of the United States export laws or regulations.

 

8.8                               Waiver.  No waiver by Company of any breach of this Agreement shall be a waiver of any preceding or succeeding breach.  No waiver by Company of any right under this Agreement shall be construed as a waiver of any other right.  Company shall not be required to give notice to enforce strict adherence to all terms of this Agreement.

 

8.9                               Entire Agreement.  This Agreement is the final, complete, and exclusive agreement of the parties with respect to the subject matter hereof.  This Agreement supersedes all prior discussions between us.  No modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement, will be effective unless in writing and signed by the party to be charged.  The terms of this Agreement will govern all Services undertaken by Consultant for Company.

 

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

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IN WITNESS WHEREOF, the parties have caused this Consulting Agreement to be executed by their duly authorized representative.

 

	
SIENTRA, INC.
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Matthew Pigeon
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Matthew Pigeon
    	
 
    
	
 
    	
(Printed   Name)
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
Chief Financial Officer
    	
 
    
	
 
    	
 
    	
 
    
	
Address:
    	
420 S. Fairview ave   #200
    	
 
    
	
 
    	
Santa Barbara, CA 93117
    	
 
    
	
 
    	
 
    	
 
    
	
CONSULTANT
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Hani Zeini
    	
 
    
	
Hani Zeini
    	
 
    
	
 
    	
 
    	
 
    
	
Address: last address on file with the Company
    	
 
    
	
 
    	
 
    
				

 

[Signature Page to Consulting Agreement – Hani Zeini]

 

 

EXHIBIT A

 

Consultant will provide one or more of the following services, as reasonably requested by Company:

 

Services:

 

During the Consulting Period, you shall make yourself available to provide services for up to thirty (30) hours per month at the request of the Company. Your title during the Consulting Period will be Founder and Director, and you will report to the Company’s Chief Executive Officer.  You agree to use your best efforts to provide consulting services in the area of your experience and expertise, as such services may be assigned and requested in the reasonable discretion of the Company’s Chief Executive Officer.

 

Compensation:

 

During the Consulting Period, and provided that you remain in compliance with this Agreement and any other agreements with or policies of the Company, you will receive as consulting fees a monthly payment amount of $43,416.67 (the “Consulting Fees”).  The Consulting Fees for each month during the Consulting Period shall be paid on the Company’s regularly-scheduled payroll dates beginning with the first such payroll date following the Effective Date.

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