Document:

EXHIBIT 10.2

 

SEPARATION AGREEMENT 

 

and

 

GENERAL RELEASE

 

THIS SEPARATION AGREEMENT AND GENERAL RELEASE (hereinafter
“Agreement”) is entered into by and between David M. Orwasher (hereinafter “Employee”), on
the one hand and The Joint Corp., (hereinafter “Employer”) on the other hand.

 

R E C I T A L S:

 

WHEREAS, Employee has been employed by Employer as its President
and Chief Operating Officer since January 2014 until September 2015, and as its Chief Development and Strategy Officer since September
2015, under the terms and conditions set forth in an employment agreement dated December 10, 2013 (hereinafter the “Employment
Agreement”) which terminates without action of either party on December 10, 2016;

 

WHEREAS, Employee and Employer have entered into an Agreement
of Confidentiality and Noninterference dated December 10, 2013 (hereinafter the “Confidentiality Agreement”);

 

WHEREAS, Employee and Employer have entered into an Indemnification
Agreement dated December 12, 2013 (hereinafter the “Indemnification Agreement”); and

 

WHEREAS, Employee and Employer desire to end the employment
relationship between each other and, in the process, settle, compromise and resolve any and all potential differences and disputes
between them without the burden, expense and delay of litigation, and without any admission of fault or liability by Employer or
Employee.

 

A G R E E M E N T:

 

NOW, THEREFORE, in consideration of the mutual covenants and
promises herein contained, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
Employer and Employee voluntarily and knowingly agree as follows:

 

1.Recitals
Incorporated. The foregoing recitals are incorporated as part of this Agreement by this reference.

 

2.Definitions.
For the purposes of this entire Agreement:

 

(a)“Employer” means The Joint Corp., and, to
the extent applicable, as direct, intended and third party beneficiaries hereof, its past, present, and future officers, employees,
directors, representatives, trustees, administrators, fiduciaries, attorneys, insurers, agents, parent corporations, subsidiaries,
affiliated entities, predecessors, successors, heirs, and assigns, jointly and severally, in both their personal and official capacities.

 

(b)“Employee” means David M. Orwasher and his
heirs and assigns.

 

3.Consideration.

 

(a)To Employee. The parties agree that the following shall
be continuing obligations of Employer, after termination of Employee’s employment, and such terms shall supersede and govern
any contrary terms in the Employment Agreement or any stock option or restricted stock agreements between Employer and Employee:

 

     

     

    

(i)Provided that Employee
continues to perform his obligations as set forth in Section 3(b) of this Agreement, Employer shall:

 

(A)make the payments to Employee set forth in
Section 9(a) of the Employment Agreement for nine (9) consecutive months pursuant to Employer’s regular payroll schedule
beginning on the next regularly scheduled payroll date following the effective date of this Agreement;

 

(B)for the avoidance of doubt, cause
all options to purchase common stock of Employer, whether granted to Employee pursuant to the Employment Agreement or pursuant
to any subsequent grant of options, and all restricted shares of the Employer’s stock, whether granted to Employee pursuant
to the Employment Agreement or pursuant to any subsequent grant of restricted shares, to vest as of the effective date of this
Agreement, notwithstanding any provision of the Employment Agreement or applicable stock option or restricted stock agreements
to the contrary;

 

(C)extend the period in which any vested option to
purchase common stock of Employer held by Employee may be exercised, to expire on December 31, 2017;

 

(D)continue Employee’s participation in Employer’s
health and welfare insurance plans for a period of nine (9) months from the effective date of this Agreement to the extent and
at the level Employee is participating at the time of his termination of employment;

 

(E) pay Employee all accrued vacation pay and paid
time off in a lump sum payment on the next regularly scheduled payroll date following the effective date of this Agreement;

 

(F) timely pay the rent and any other costs associated
with Employee’s obligations under the lease for his current residence in Scottsdale, Arizona for the remainder of its term,
commencing on May 05, 2016; and

 

(G)pay all reasonable costs associated with moving
Employee’s personal possessions and contents, as well as shipping Employee’s vehicle, from Arizona back to Connecticut;
and

 

(H)reimburse Employee for all other reasonable incidental
expenses associated with Employee’s move from Arizona back to Connecticut.

 

(ii)Employer acknowledges that the Indemnification
Agreement remains in full force and effect and shall provide indemnification benefits to Employee for periods following the termination
of Employee’s employment with Employer in accordance with the terms of the Indemnification Agreement.

 

(b) To Employer. The parties agree that the following shall
be continuing obligations of Employee, after the termination of his employment, and such terms shall supersede and govern any contrary
terms in the Employment Agreement or Confidentiality Agreement:

 

    	2

     

    

(i)Confidentiality and Return of Property.

 

(A)Employee acknowledges that in the course of his
employment by the Employer, he has had access to and become informed of confidential and secret information that is a competitive
asset of Employer (“Confidential Information”), including, without limitation, (i) the terms of agreements between
Employer and its employees, regional developers, franchisees and suppliers (ii) pricing strategy, (iii) sales and marketing methods,
(iv) product development ideas and strategies, (v) personnel and franchisee training and development programs, (vi) financial results,
(vii) strategic plans and demographic analyses, (viii) proprietary computer and systems software and (ix) any non-public information
concerning Employer, its employees, regional developers, franchisees, suppliers and customers. Regardless of any actual or alleged
breach by Employer of this Agreement, Employee shall keep all Confidential Information in strict confidence and shall not directly
or indirectly make known, divulge, reveal, furnish, make available or use any Confidential Information until and unless such Confidential
Information becomes, through no fault of Employee, generally known to the public or Employee is required by law to make disclosure
(after giving Employer reasonable notice and an opportunity to contest such requirement). Employee’s obligations under this
Section 3(b)(i)(a) are in addition to, and not in limitation or preemption of, all other obligations of confidentiality which Employee
may have to Employer under general legal or equitable principles.

 

(B)Employee has returned to Employer all documents
relating to the business of Employer, all property of Employer, and all Confidential Information which are in his custody or control.
Employee represents that he has not made and shall never make or cause to be made, any copies, pictures, duplicates, facsimiles
or other reproductions or recordings or any abstracts or summaries including or reflecting Confidential Information which have
not been returned to Employer. All such documents and other property furnished to Employee by Employer or otherwise acquired or
developed by Employer shall at all times be the property of Employer.

 

(C)Employer shall reimburse Employee in accordance
with Employer policies and procedures for reasonable travel and related expenses incurred in connection with this Agreement.

 

(ii)Covenant
not to Compete; No Inducement; No Solicitation.

 

(A)for a period of twelve (12) months from the effective
date of this Agreement, Employee shall not, without the prior written consent of Employer (which consent may be withheld for any
reason or no reason), directly or indirectly or by action in concert with others, own, manage, operate, join, control, perform
consulting services for, be employed by, participate in or be connected with any business, enterprise or other entity (or the ownership,
management, operation, or control of any such business, enterprise or other entity) (a “Competing Enterprise”)
engaged anywhere in the United States in the Restricted Business as defined in Section 1(l) in the Employment Agreement (hereinafter
“Restricted Business”).

 

Notwithstanding the foregoing, Employee may make purely
passive investments on behalf of himself, his immediate family or any trust in public companies engaged in a Competing Enterprise
so long as the aggregate interest represented by such investments does not exceed 1% of any class of the outstanding debt or equity
securities of any Competing Enterprise.

 

(B)for a period of two years from the effective date
of this Agreement, Employee shall not, directly or indirectly, in any capacity, on his own behalf or on behalf of any other firm,
person or entity, induce or attempt to induce any regional developer, franchisee or clinic manager of Employer to cease doing business
in whole or in part with Employer, solicit the business of any such person for any Restricted Business or otherwise create any
ill will or negative publicity with respect to Employer.

 

    	3

     

    

(C)for a period of two years from the effective date
of this Agreement, Employee shall not, directly or indirectly, in any capacity, on his own behalf or on behalf of any other firm,
person or entity, undertake or assist in the solicitation of any employee of Employer (including without limitation, employees
of Employer’s franchisees), to terminate his or her employment with Employer or with a franchisee.

 

  (iii) Non Disparagement.  From the effective date of this Agreement forward, Employee and Employer each agrees not to make any statements or take any actions which:

 

(A)in any way disparage each other; or

 

(B) could foreseeably harm the reputation and/or good
will of each other; or

 

(C)knowingly cause, encourage, or condone the making
of any actions or statements prohibited by sections (A) or (B), above, directly or indirectly.

 

(iv) Cooperation. From the date of this Agreement forward,
Employee shall:

 

(A)       
fully cooperate with and assist Employer in any dispute in which Employer is involved and in which Employee may have information
about or has been involved. Such cooperation and assistance shall be provided at a time and manner mutually and reasonably agreeable
to Employee and Employer, and shall include, but not be limited to, providing information, documents, and testimony; submitting
to depositions, and generally cooperating to assist Employer; and

 

(B)       
fully cooperate with and assist Employer in the transition in all areas of Employee’s responsibility for the conduct
of Employer’s business to the officers and employees of Employer who have been assigned by Employer to assume such duties.
In this regard, Employee shall within one week of the effective date of this Agreement, deliver a transition memorandum to Employer
setting forth in reasonable detail, all material open matters with respect to which Employee has devoted his attention during the
six month period ending on the effective date of this Agreement, including the status of such matters, the timeline for completion
of such uncompleted matters, key persons within and outside of the Company who are involved in such matters and their respective
roles, and any other information reasonably necessary or appropriate in order to effect the transition of responsibility for such
matters from Employee to the persons to whom they have been reassigned.

 

4.Release.

 

(a)Employee. Employer hereby irrevocably and unconditionally
releases and forever discharges Employee from any and all claims, whether currently known or unknown, liabilities, costs, expenses,
fees, attorneys’ fees, demands, liens, agreements, covenants, actions, suits at law or equity, obligations, debts, damages,
judgments, liabilities, expenses of whatever kind, known or unknown, suspected or unsuspected and damages of any nature whatsoever
in connection with Employee’s employment, application for employment and discontinuation of employment with Employer, including
but not limited to any contract or tort claims, which it had or now or may believe that it has against Employee based on any matter
or thing occurring prior to its execution of this Agreement.

 

    	4

     

    

Employer understands and acknowledges that this release forever bars
it from suing or otherwise asserting a claim against Employee on the basis of any event occurring through its execution of this
Agreement, whether the facts are now known or unknown, and whether the legal theory upon which such claim might be based is now
known or unknown.

 

(b)Employer. Employee hereby irrevocably and unconditionally
releases Employer and all other Released Parties from any and all claims, whether currently known or unknown, demands, liens, agreements,
covenants, actions, suits at law or equity, obligations, debts, damages, judgments, liabilities, attorneys’ fees, costs,
and expenses of whatever kind, known or unknown, suspected or unsuspected, which he had or has based on any matter or thing occurring
prior to his execution of this Agreement, including but not limited to claims that arise from or relate to Employee’s employment
with Employer. The released claims include any claims arising under the Age Discrimination in Employment Act, the Arizona Civil
Rights Act, the Arizona Wage Payment Act, or Title VII of the Civil Rights Act of 1964. The released claims further include, but
are not limited to, all claims for breach of contract, wrongful discharge or layoff, constructive discharge, retaliatory discharge,
impairment of economic opportunity, intentional or negligent infliction of emotional harm, distress, or any other tort, including
but not limited to defamation, invasion of privacy, intentional interference with contract or prospective advantage, violation
of any constitutional right, sex discrimination, race discrimination, disability discrimination, age discrimination or any other
form of employment discrimination or retaliation, and any and all claims arising from any alleged violations by or on behalf of
Employer or any other Released Party under every applicable federal, state or local law, rule, regulation, ordinance, public policy
or common law, including under the Arizona Employment Protection Act, the Civil Rights Act of 1991, the Equal Pay Act, the Americans
with Disabilities Act, or the Family and Medical Leave Act.

 

Employee understands and acknowledges that this release forever bars
him from suing or otherwise asserting a claim against Employer or any of the other Released Parties on the basis of any event occurring
through his execution of this Agreement, whether the facts are now known or unknown, and whether the legal theory upon which such
claim might be based is now known or unknown. Employee further agrees and acknowledges that the Released Parties are intended third
party beneficiaries of this release of claims.

 

Except as prohibited by law, should any charge or complaint be filed
relating to Employee’s employment with Employer, Employee agrees that he will not accept any relief or recovery therefrom,
and it shall be dismissed with prejudice upon presentation of this Agreement.

 

5.Acknowledgement of Full Payment. Employee
acknowledges and agrees that upon Employer’s delivery of the entire consideration outlined in Section 3 of this Agreement,
he will have received payment in full by Employer for all wages, overtime, accrued vacation and paid time off pay, bonuses, or
other forms of compensation to which he was entitled as a result of his Employment with Employer. Employee agrees that this representation
is a material term that has induced Employer to enter into this Agreement.

 

6.Provision for Unknown Claims. Employee
and Employer each warrant that he/it does not have any claim or charge pending against Employer or any of the other Released Parties/
Employee with any court, tribunal, administrative agency, governmental agency, or other such body.

 

7.Waiver of Right to Recovery and No Inducement.
Employee waives any right to monetary recovery should any administrative agency pursue any released claim on his behalf. To the
extent permitted by law, and/or unless required by law, Employee agrees that he will not induce, aid, or abet anyone in instituting
or prosecuting any pending or future claim against Employer or any other Released Party in any court, arbitral tribunal, or administrative
agency. However, nothing in this provision shall be construed as prohibiting Employee from communicating with any government agency
regarding any matter within such agency’s jurisdiction.

 

    	5

     

    

8.Consultation with Legal Counsel. Employee
acknowledges that this Agreement constitutes written notice from Employer that it advises him to seek legal counsel before signing
this Agreement.

 

9.Notice of Time for Reflection and Waiver.
Employee acknowledges that he has fully discussed all aspects of this Agreement with his attorney to the extent he wishes to do
so. Employee agrees that he has carefully read and fully understands all of the provisions of this Agreement and that he is voluntarily
entering into this Agreement. Employee agrees that, as part of this Agreement, he will be provided with consideration in addition
to anything of value to which he is already entitled. Employee is advised that, prior to waiving claims he may have under the Age
Discrimination in Employment Act, he may take up to twenty-one (21) calendar days to consider this Agreement before signing, and
he may revoke this Agreement within seven (7) calendar days after he signs the Agreement. If Employee wishes to revoke the Agreement,
he must do so by delivering written notification of the revocation before the expiration of the revocation period to [INSERT
NAME OF PERSON TO RECEIVE NOTICE]. In the event this Agreement is signed prior to the expiration of 21 days, Employee acknowledges
that he has voluntarily and knowingly agreed to waive his entitlement to take 21 days to consider this Agreement before signing
for the purpose of expediting the settlement.

 

10.Effective Date of Agreement. This Agreement
will be effective upon execution by both parties and the expiration of the seven-day revocation period outlined in Section 9 above,
if applicable.

 

11.Representations and Warranties regarding Medicare.
Employee hereby warrants that he is not, and has never been, a beneficiary of Medicare as of the effective date of this Agreement.
Employee further acknowledges and agrees that he has not incurred medical expenses for any physical or emotional injuries that
were allegedly caused by Employer or any other Released Party for which coverage or reimbursement has been provided by Medicare.

 

12.Full Consideration. Employee agrees that
payment by Employer of the consideration stated in Section 3(a) as well as compliance with the above described terms constitutes
full and sufficient legal consideration for the promises and covenants set forth in this Agreement.

 

13.No Admission of Wrongdoing. The parties
each agree that nothing in this Agreement shall be construed as an admission by either of them of any wrongdoing or violation of
any applicable law, and that nothing in this Agreement shall be so construed by any other person.

 

14.Bar. Employee and Employer specifically
agree that this Agreement may be pled by Employee, Employer or any of the other Released Parties as an absolute bar to any released
claim.

 

15.Complete Agreement. Unless as otherwise
stated herein, this Agreement sets forth all of the terms and conditions of the agreement between the parties regarding the subject
matter hereof and shall be considered and understood to be a contractual commitment and not a mere recital. This Agreement shall
be binding upon Employer and its successors and assigns and upon Employee and his respective agents, heirs, executors, representatives,
and assigns.

 

16.Fees and Costs. Each party shall bear
and pay his or its own costs and attorneys’ fees with regard to this Agreement and any matters covered herein. However, in
an action to enforce any term or terms of this Agreement or to seek damages for breach of this Agreement, the prevailing party
in that action shall be entitled to recover reasonable attorneys’ fees.

 

    	6

     

    

17.Waiver and Amendment. A waiver of any
right under this Agreement must be in writing to be effective. This Agreement may be amended only by a writing signed by the parties.
Any oral representation or modification concerning this Agreement shall be of no force or effect.

 

18.Severability.
If any portion of this Agreement is held invalid by operation of law, the remaining terms of this
Agreement shall not be affected, provided, however, that if the release in paragraph 4(b) of this Agreement is held invalid, Employer
shall have the right to seek rescission of this Agreement. 

 

19.Choice of Law.
The language of all parts of this Agreement shall in all cases be construed as a whole, according
to its fair meaning, and not strictly for or against either of the parties. This Agreement shall be governed by and construed in
accordance with the laws of the State of Arizona, except to the extent that federal laws apply.

 

20. Acknowledgement.
Employee acknowledges that in executing this Agreement, he does not rely on any inducements, promises
or representations made by Employer other than those expressly stated herein. Further, Employee declares that he has read this
Agreement and fully understands its terms and contents, including his rights and obligations hereunder, and freely, voluntarily
and without coercion enters into this Agreement. Employee agrees and acknowledges that the waiver and release of all rights or
claims he may have under any local state or federal law is knowing and voluntary.

 

21. No Re-Employment.
Employee agrees that he is ineligible and will not apply for or accept future employment with Employer,
and that if he should make such an application, he acknowledges that Employer is under no obligation to consider it. Notwithstanding
the same, Employer and Employee acknowledge that they have agreed to enter into discussions regarding a separate consulting agreement
following Employee’s termination of employment under which Employee will provide specified limited services to Employer for
an agreed upon compensation and duration to which this Section 21 shall not apply.

 

22. Section Headings.
The section headings in this Agreement are solely for convenience of reference and shall not, in
any way, affect the interpretation of this Agreement.

 

 

	The Joint Corp.	 	 
	 	 	 
	By	/s/ John B. Richards	 	DAVID M. ORWASHER 
	 	Its:  	CEO	 	/s/ David M. Orwasher 
	 	Dated:  	4/29/16	 	Dated:  	4/29/16

 

 

 

7Exhibit 10.1

 

		

8201 E Riverside
Dr. Bldg. 4, Ste. 100— Austin, TX 78744—
Phone: (512) 386-2900 — Fax: (512) 386-5505

Web: www.xbiotech.com

 

Scott Whitehurst

 

Re: Offer of Employment

 

 

Dear Scott,

 

On behalf of XBiotech USA Inc., I am pleased
to offer you a position as Chief Financial Officer. In this capacity, you will be paid at a gross semi-monthly rate of $16,666.67.
You will report to John Simard, CEO of XBiotech, and the effective date of the agreement will be May 2nd, 2016.

 

Your job responsibilities may include but
not limited to:

	Communicate, engage and interact with Board and All of XBiotech Team.
	Create presentations, press releases and other communication materials for earnings
releases, industry events and presentations to analysts, brokers, and investors.
	Oversee the production of all annual reports, SEC filings, and proxy statements.
	Serve as a key point of contact for the investment community.
	Establish and maintain relationships with stock exchange representatives.
	Organize and conduct conferences, road shows, earnings conference calls, and investor
meetings.
	Play key role in building and managing commercialization team for imminent product
launch in Europe and subsequent launches in Europe the USA and elsewhere.
	Building and representing credible revenue models for the company product candidates.
	Contribute to strategic business transactions and corporate development initiatives.

For the purposes of relocation you will
be provided by XBiotech with $1,500 house hunting trip to Austin, and up to $10,000 moving allowance. These expenses will be paid
as expense reimbursements or directly to the vendors you use. The offer described above is contingent upon the results of your
reference/background check and completion of an I-9 form as well as e-verify. Your employment is also contingent upon your signing
and returning a Confidentiality and Non-disclosure Agreement on your first day of work. XBiotech will provide you 100% employer-paid
Medical and Dental Plan for individuals (not including family members). These benefits will begin after a waiting period not to
exceed two months of your employment. Subject to approval by XBiotech, Inc’s (the “Company”) Board of Directors,
you will be granted Incentive Stock Options* under the Company's 2015 Equity Incentive Plan to purchase 300,000 shares of XBiotech
Inc. Common Stock at an exercise price equal to the closing sales price per share of the Company’s Common Stock on the date
of grant, as quoted by The Nasdaq Stock Market.  The options will vest over a four-year period with the following schedule:

 

    

     

    

 

*Option to purchase Common Shares
with the intention that it qualifies as an Incentive Stock Option within the meaning of Section 422 of the U.S. Internal Revenue
Code of 1986, as amended. Incentive Stock Option benefits are subject to all qualifying rules and regulations. 

 

 

	Year	Vesting Date	Percentage
of Shares as to which the Option Becomes Exercisable
	
        YEAR 1

        (Quarterly vest over the first year, beginning on May 2, 2016
        (the “Vesting Commencement Date”)
	August 1, 2016	6.25%
	October 31, 2016	6.25%
	January 30, 2017	6.25%
	May 2, 2017	6.25%
	YEAR 2	Two-year anniversary of the Vesting Commencement Date	25%
	YEAR 3	Three-year anniversary of the Vesting Commencement Date	25%
	YEAR 4	Four-year anniversary of the Vesting Commencement Date	25%

 

 

We understand, based on what you have told
us, that by coming to work for XBiotech in the above position you will not be violating any Employment Agreement, Confidentiality/Non-disclosure
Agreement, Covenant Not to Compete Agreement, or Shareholder Agreement with any former employer. If you have signed any such agreements,
we need you to provide us with a copy of each agreement before beginning employment with XBiotech. Further, we expect that you
do not currently possess from your former employers any:

		1.	Biological samples.

		2.	Client, customer, vendor, consultant or employee files or lists.

		3.	Confidential or trade secret information.

 

Please let us know if you possess any of
the above. If you do, you will need to return them immediately to your former employer.

 

    
		2

 

     

    

 

Your employment with XBiotech will be on
an “at-will” basis, meaning that you can be terminated or released from your employment at any time, with or without
cause or notice. Likewise, we respect your ability to leave employment at anytime, for any reason, with or without notice.

 

Please indicate your acceptance of our
offer by signing below and returning one copy of the letter, with your original signature, to me by 5:00pm, April 26, 2016. If
you have any questions, please do not hesitate to contact me.

 

 

 

Sincerely,

 

John Simard, President, Chairman &
Chief Executive Officer

 

/s/ John Simard

 

I accept the terms and conditions of employment
as set forth above and understand that I am not relying on any prior statements or representations not contained within this letter.
I also confirm that I do not have possession of any of the types of files described above from any former employer. Finally, to
the best of my knowledge, my employment with XBiotech will not violate any agreement that I have with any former employer.

 

	
         

        Date:
	
         

        5/2/2016
	 	
         

        Signature:
	
         

        /s/ Scott Whitehurst

 

 

 

 

 

		3

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