AGREEMENT AND RELEASE
THIS AGREEMENT AND RELEASE, made this 23 day of December, 1996, by and
between Derma Sciences, Inc. ("DSI") and Xxxxxx X. XxXxxx ("XxXxxx").
WHEREAS, XxXxxx 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, XxXxxx 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 XxXxxx 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 XxXxxx
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 XxXxxx, maker, and DSI, payee, and the remaining debt owed to
DSI by XxXxxx 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 XxXxxx, 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
XxXxxx and DSI shall withhold Federal, state and local tax obligations of XxXxxx
incident thereto as required by applicable law.
4. Health Benefits. Health benefits heretofore provided to XxXxxx pursuant
to his Employment Agreement dated February 4, 1994, by DSI, shall continue until
the earlier of June 30, 1997, or the date XxXxxx secures employment and becomes
eligible for health benefits.
5. Performance References. DSI agrees to provide positive references
relative to XxXxxx'x performance while employed by DSI to all inquiries made in
respect of same.
6. Maintenance of Confidentiality. XxXxxx 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. XxXxxx 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. XxXxxx 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 XxXxxx 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 XxXxxx. XxXxxx 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 XxXxxx 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/ Xxxx X. Xxxxxxxxx
----------------------
Xxxx X. Xxxxxxxxx
President and Chief Executive Officer
/s/ Xxxxxx X. XxXxxx
----------------------
Xxxxxx X. XxXxxx
Wound Care Products
--------------------------- ---------------------------------- -----------------
CATEGORY PRODUCT MANUFACTURER
--------------------------- ---------------------------------- -----------------
1. Skin Sealants
Xxxx XX Protective Barrier Film Bard
Nu-Guard TM Nu-Hope
Skin Cote(R) Dynamed
Skin Gel Hollister
Skin Prep TM SNU
Skin Shield(R) Mentor
Xxxxx Prep XX Xxxxx
--------------------------- ---------------------------------- -----------------
2. Wound Cleansers
a. Saline Multiple Multiple
b. Hydrogen Peroxide Multiple Multiple
c. Wound Cleansers Biolex TM Wound Cleanser Catalina
Xxxx-Xxxxx XX Xxxxxxxxxx Labs
PuriClens XX Xxxxx
Shur Clens (R) Calgon-Xxxxxx
--------------------------- ---------------------------------- -----------------
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 Xxxxxxx
x. Wrapping Xxxxx XX.Sof-Xxxxx XX J & J
e. Hypertonic Absorbing Mesalt(R) Xxxxx
--------------------------- ---------------------------------- -----------------
4. Nonadherent/
Impregnated Dressings
Adaptic TM J & J
ETE(R)Sterile Protective Dressing Xxxxx
EXU-DRY(R) Frastec
Melolite TM SNU
Metalline(R) Selomas
Release(R) J & J
Scarlet Red(R) Sherwood
Telfa(R) Xxxxxxx
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 Xxxxxxx
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 Xxxxxx
Viasorb(R) Sherwood
--------------------------- ---------------------------------- -----------------
8. Hydrocolloids
a. Regular Biofilm(R)(UK) Clinimed
Comfeel(R) Xxxxxxx
Dermaflex (UK) J & J
DuoDERM(R)/Granuflex(R) (UK) ConvaTec
Hydrapad XX Xxxxxx
Intact XX Xxxx
Intrasite TM SUN
J & J Ulcer Dressing TM J & J
Restore XX Xxxxxxxxx
Tegasorb TM 3M
ULTEC XX Xxxxxxxx
b. Pastes Comfeel(R) Xxxxxxx
DuoDERM(R) ConvaTec
c. Granules DuoDERM(R) ConvaTec
d. Powder Comfeel(R) Xxxxxxx
x. Special Actiderm(R) ConvaTec
Comfeel(R)Pressure Relief Dressing Xxxxxxx
DuoDERM(R)Extra-Thin TM ConvaTec
DuoDERM(R) CGF TM ConvaTec
Restore CX XX Xxxxxxxxx
--------------------------- ---------------------------------- -----------------
9. Gels/Hydrogels
Biolex TM Wound Gel Xxxxxxxx
Xxxxxxxxxx Dermal Wound Gel XX Xxxxxxxxxx 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
Xxxx-Xxxxx XX
Xxxxxxxxxx Dermal Wound Gel XX Xxxxxxxxxx
Dermagran(R) Spray
Dermagran(R) Ointment Derma Sciences
Optipore Sponge(R)
Shur Clens(R) Calgon-Xxxxxx
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 XX Xxxxxx Labs
Hydragran TM Pharmaseal
Iodosorb(R) Beads/Ointment (UK) Perstop
Mesalt(R) Xxxxx
Span-Gel(R) Medi-Tech
--------------------------- ---------------------------------- -----------------
13. Foams
Allevyn TM SNU
Epi-Lock TM Calgon Xxxxxx
LYOfoam(R) Acme United
LYOfoam(R) "C" Acme United
Mitraflex Calgon Xxxxxx
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) Xxxxx-Xxxxx
Panafil(R) Ointment Rystam
Panafil(R) White Ointment Rystam
Santy1(R) Xxxxx
Travase(R) Flint
b. Leg Ulcer Wraps Dome-Paste(R) Miles
(Unna Boot)
c. Lubricating Sprays Granules XX Xxx X. Xxxxxx
Proderm XX Xxx X. Xxxxxx
--------------------------- ---------------------------------- -------------
