AGREEMENT AND RELEASE
THIS AGREEMENT AND RELEASE, made this 23 day of December, 1996, by and
between Derma Sciences, Inc. ("DSI") and ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇ ("▇▇▇▇▇▇").
WHEREAS, ▇▇▇▇▇▇ has heretofore been employed as Vice President for Sales
and Marketing for DSI,
WHEREAS, DSI is in the process of consolidating and downsizing its
executive staff,
WHEREAS, by reason of the foregoing, ▇▇▇▇▇▇ has tendered his resignation as
Vice President for Sales and Marketing of DSI, and DSI has accepted same with
regret,
NOW, THEREFORE, the parties hereto, in consideration of the promises and
covenants herein contained, and intending to be legally bound, hereby agree as
follows:
1. Severance Payment. DSI shall pay to ▇▇▇▇▇▇ a cash severance payment in
the total amount of One Hundred Eighty-nine Thousand Dollars ($189,000), to be
tendered no later than Thirty (30) days from the date hereof, which payment
shall be applied as provided in paragraphs 2 and 3 hereinbelow.
2. Repayment of Promissory Notes. The remaining debt owed to DSI by ▇▇▇▇▇▇
in the amount of Thirty-one Thousand Nine Hundred Ninety-eight Dollars and
Thirty-nine Cents ($31,998.39) relative to that certain promissory note dated
May 12, 1995 by ▇▇▇▇▇▇, maker, and DSI, payee, and the remaining debt owed to
DSI by ▇▇▇▇▇▇ in the amount of Seventy-eight Thousand Eight Hundred Forty-one
Dollars and Sixty-seven Cents ($78,841.67) relative to that certain promissory
note dated January 17, 1995 by ▇▇▇▇▇▇, maker, and DSI, payee, shall be deducted
from the severance payment provided in paragraph 1 and applied in satisfaction
of said promissory notes.
3. Character of Severance Payment. The severance payment provided in
paragraph 1 hereof shall constitute, in its entirety, taxable compensation to
▇▇▇▇▇▇ and DSI shall withhold Federal, state and local tax obligations of ▇▇▇▇▇▇
incident thereto as required by applicable law.
4. Health Benefits. Health benefits heretofore provided to ▇▇▇▇▇▇ pursuant
to his Employment Agreement dated February 4, 1994, by DSI, shall continue until
the earlier of June 30, 1997, or the date ▇▇▇▇▇▇ secures employment and becomes
eligible for health benefits.
5. Performance References. DSI agrees to provide positive references
relative to ▇▇▇▇▇▇'▇ performance while employed by DSI to all inquiries made in
respect of same.
6. Maintenance of Confidentiality. ▇▇▇▇▇▇ hereby undertakes and agrees to
maintain, in perpetuity, the strict confidentiality of all customer lists, trade
secrets, technology, formulas, research, product information, studies and all
other knowledge of DSI regardless of whether same is, or may be, proprietary.
7. Covenant Not-to-Compete. ▇▇▇▇▇▇ hereby agrees that he shall not,
directly or indirectly, own, manage, operate, control, be employed by,
participate in, render advice with respect to, or be connected in any manner
with the ownership, management, operation or control of any business that
manufactures, develops or sells "wound care products" within the United States
for a period of One (1) year from the date of this Agreement. As used herein,
"wound care products" shall include, but shall not be limited to, those products
listed in Exhibit 1 attached hereto and made a part hereof. DSI shall be
entitled, in addition to such other remedies as it may have, to equitable relief
from any breach of this paragraph without proof of actual damages that it has
suffered or may suffer by such breach.
8. Further Assurances. ▇▇▇▇▇▇ hereby agrees, without additional
consideration, to cooperate with DSI relative to DSI's prosecution or defense of
any and all litigation, whether same is pending or instituted in the future, as
to which ▇▇▇▇▇▇ has, or may have, material factual information. Such cooperation
shall include, but shall not necessarily be limited to, consultation with
personnel of DSI and its counsel, giving of depositions and rendering of
testimony.
9. Release by ▇▇▇▇▇▇. ▇▇▇▇▇▇ hereby releases DSI, its officers, directors,
shareholders and agents from any and all causes of action, claims, rights or
obligations which he may have, of whatsoever nature, which have arisen from the
beginning of the world to the date of these presents.
10. Release by DSI. DSI hereby releases ▇▇▇▇▇▇ from any and all causes of
action, claims, rights or obligations which it may have, of whatsoever nature,
which have arisen from the beginning of the world to the date of these presents.
11. Entire Agreement. This Agreement constitutes the entire Agreement
between the parties pertaining to the subject matter hereof and supersedes all
prior agreements, representations and undertakings of the parties whether oral
or written. No supplement, modification or waiver of this Agreement shall be
binding unless contained in a writing executed by the party against whom such
supplement, modification or waiver is sought to be enforced.
12. Governing Law. This Agreement shall be construed under and governed by
the laws of the Commonwealth of Pennsylvania.
WHEREFORE, the parties have hereunder set their set their hands and seals
as of the date first hereinabove written.
DERMA SCIENCES, INC.
By: /s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇
----------------------
▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇
President and Chief Executive Officer
/s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
----------------------
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Wound Care Products
--------------------------- ---------------------------------- -----------------
CATEGORY PRODUCT MANUFACTURER
--------------------------- ---------------------------------- -----------------
1. Skin Sealants
▇▇▇▇ ▇▇ Protective Barrier Film Bard
Nu-Guard TM Nu-Hope
Skin Cote(R) Dynamed
Skin Gel Hollister
Skin Prep TM SNU
Skin Shield(R) Mentor
▇▇▇▇▇ Prep ▇▇ ▇▇▇▇▇
--------------------------- ---------------------------------- -----------------
2. Wound Cleansers
a. Saline Multiple Multiple
b. Hydrogen Peroxide Multiple Multiple
c. Wound Cleansers Biolex TM Wound Cleanser Catalina
▇▇▇▇-▇▇▇▇▇ ▇▇ ▇▇▇▇▇▇▇▇▇▇ Labs
PuriClens ▇▇ ▇▇▇▇▇
Shur Clens (R) Calgon-▇▇▇▇▇▇
--------------------------- ---------------------------------- -----------------
3. Gauze Dressings
a. Cotton Mesh Multiple Multiple
b. Synthetic (Non-Wovens) Multiple Multiple
c. Packing/Wrapping Cotton
Mesh Hermitex Fluff Sponge(R) Hermitage
Kerlix(R)/Kerlix(R) Lite ▇▇▇▇▇▇▇
▇. Wrapping ▇▇▇▇▇ ▇▇.Sof-▇▇▇▇▇ ▇▇ J & J
e. Hypertonic Absorbing Mesalt(R) ▇▇▇▇▇
--------------------------- ---------------------------------- -----------------
4. Nonadherent/
Impregnated Dressings
Adaptic TM J & J
ETE(R)Sterile Protective Dressing ▇▇▇▇▇
EXU-DRY(R) Frastec
Melolite TM SNU
Metalline(R) Selomas
Release(R) J & J
Scarlet Red(R) Sherwood
Telfa(R) ▇▇▇▇▇▇▇
Vaseline(R) Gauze Sherwood
Xeroflo(R) Sherwood
Xeroform(R) Sherwood
--------------------------- ---------------------------------- -----------------
5. Antimicrobials/
Antiseptics/Antibiotics
a. Solutions Multiple Multiple
b. Creams Multiple Multiple
c. Ointments Multiple Multiple
d. Scrubs Multiple Multiple
e. Sprays Multiple Multiple
--------------------------- ---------------------------------- -----------------
6. Transparent Films
ACU-Derm(R) Acme United
Bioclusive TM J & J
BlisterFilm(R) Sherwood
Ensure-It TM Deseret
OpraFlex(R) Professional
Medical
OpSite(R) SNU
Polyderm TM Picture Frame
Film Dressing Laivan
Polyskin(R) II ▇▇▇▇▇▇▇
Tegaderm(R) 3M
Tegaderm TM Pouch 3M
Transite Exudate
Transfer Film TM SNU
Uniflex TM United
--------------------------- ---------------------------------- -----------------
7. Composites
Airstrip TM SNU
PolyDerm WBC TM Laivan
Polymeric Membrane Dressing ▇▇▇▇▇▇
Viasorb(R) Sherwood
--------------------------- ---------------------------------- -----------------
8. Hydrocolloids
a. Regular Biofilm(R)(UK) Clinimed
Comfeel(R) ▇▇▇▇▇▇▇
Dermaflex (UK) J & J
DuoDERM(R)/Granuflex(R) (UK) ConvaTec
Hydrapad ▇▇ ▇▇▇▇▇▇
Intact ▇▇ ▇▇▇▇
Intrasite TM SUN
J & J Ulcer Dressing TM J & J
Restore ▇▇ ▇▇▇▇▇▇▇▇▇
Tegasorb TM 3M
ULTEC ▇▇ ▇▇▇▇▇▇▇▇
b. Pastes Comfeel(R) ▇▇▇▇▇▇▇
DuoDERM(R) ConvaTec
c. Granules DuoDERM(R) ConvaTec
d. Powder Comfeel(R) ▇▇▇▇▇▇▇
▇. Special Actiderm(R) ConvaTec
Comfeel(R)Pressure Relief Dressing ▇▇▇▇▇▇▇
DuoDERM(R)Extra-Thin TM ConvaTec
DuoDERM(R) CGF TM ConvaTec
Restore CX ▇▇ ▇▇▇▇▇▇▇▇▇
--------------------------- ---------------------------------- -----------------
9. Gels/Hydrogels
Biolex TM Wound Gel ▇▇▇▇▇▇▇▇
▇▇▇▇▇▇▇▇▇▇ Dermal Wound Gel ▇▇ ▇▇▇▇▇▇▇▇▇▇ Labs
Elasto-Gel TM Southwest
Technolgies
Geliperm(R)Wet/Geliperm(R)Granulate Fougera
Hydron Wound Dressing(R) Bioderm Sciences
Intrasite Gel TM SNU
Second Skin(R) Spenco
Vigilon(R) Bard
--------------------------- ---------------------------------- -----------------
10. Wound Care Systems
Biolex TM Wound Cleanser
Biolex TM Wound Gel Catalina
▇▇▇▇-▇▇▇▇▇ ▇▇
▇▇▇▇▇▇▇▇▇▇ Dermal Wound Gel ▇▇ ▇▇▇▇▇▇▇▇▇▇
Dermagran(R) Spray
Dermagran(R) Ointment Derma Sciences
Optipore Sponge(R)
Shur Clens(R) Calgon-▇▇▇▇▇▇
Chloresium(R) Ointment/ Solution
Panafil(R) Ointment
Panafil(R) White Ointment Rystan
--------------------------- ---------------------------------- -----------------
11. Calcium Alginates
Kaltocarb(R) (UK)
Kaltostat TM
Sorbsan TM
--------------------------- ---------------------------------- -----------------
12. Exudate Absorbers
Beads/Pastes
Bard(R) Absorption Dressing Bard
Debrisan(R) J & J
Envisan ▇▇ ▇▇▇▇▇▇ Labs
Hydragran TM Pharmaseal
Iodosorb(R) Beads/Ointment (UK) Perstop
Mesalt(R) ▇▇▇▇▇
Span-Gel(R) Medi-Tech
--------------------------- ---------------------------------- -----------------
13. Foams
Allevyn TM SNU
Epi-Lock TM Calgon ▇▇▇▇▇▇
LYOfoam(R) Acme United
LYOfoam(R) "C" Acme United
Mitraflex Calgon ▇▇▇▇▇▇
Silastic Foam Dressing(R)(UK) Dow Corning
Silastic Gel Sheeting(R) (UK) Dow Corning
--------------------------- ---------------------------------- -----------------
14. Growth Factors
Thirty-two growth factors have been identified to date. Some
growth factors that now have different names, may be found
to be identical in the future. Growth factors are not
available at this time for routine clinical use.
--------------------------- ---------------------------------- -------------
15. Wound Pouches
Wound Drainage Collector Hollister
Wound Manager TM ConvaTec
--------------------------- ---------------------------------- -------------
16. Carbon-impregnated
Dressings
Carbonet TM SNU
LYOfoam(R) "C" Acme United
Odor-Absorbent Dressing Hollister
--------------------------- ---------------------------------- -------------
17. Miscellaneous
a. Debriding Agents Biozyme-C(R) Armour
Elase(R) ▇▇▇▇▇-▇▇▇▇▇
Panafil(R) Ointment Rystam
Panafil(R) White Ointment Rystam
Santy1(R) ▇▇▇▇▇
Travase(R) Flint
b. Leg Ulcer Wraps Dome-Paste(R) Miles
(Unna Boot)
c. Lubricating Sprays Granules ▇▇ ▇▇▇ ▇. ▇▇▇▇▇▇
Proderm ▇▇ ▇▇▇ ▇. ▇▇▇▇▇▇
--------------------------- ---------------------------------- -------------
