EX-10.6



 Exhibit 10.6 

May 2, 2016 
 Scott K. Murcray, CPA 

Dear Scott: 
 I am pleased to offer you a
position with AirXpanders, Inc. (the “Company”), as our Chief Financial Officer and Chief Operating Officer (CFO/COO), reporting to me, the President and CEO. As a CFO/COO, you will be expected to perform the duties typical for such
a position, as assigned by your supervisor. In addition, you will devote your full energies, abilities and productive business time to the performance of your job for the Company and will not engage in any activity that would in any way interfere or
conflict with the full performance of any of your duties for the Company. 
 Salary and Benefits. 

If you decide to join us, you will receive a salary paid at the annual rate of $265,000, less payroll deductions and withholdings, which will
be paid semi-monthly in accordance with the Company’s normal payroll procedures. Your salary will be reviewed annually in accordance with the Company’s normal review process. 

In addition, in the event that the Company adopts and implements a written executive cash bonus plan, you will be eligible to participate in
such plan, subject to the terms and conditions of such plan and any written notice to you. 
 As an employee, you will be eligible to
receive health care benefits (100% employee/ 50% dependents) for medical, dental and vision. Other Company benefits include Life Insurance and a 401k plan for employee-based contributions. You will be entitled to accrue Personal Time Off (PTO) at
the rate of fifteen (20) days per year (1.66 days per month), in accordance with the Company’s PTO policy. You should note that the Company may modify job titles, salaries and benefits from time to time as it deems necessary. 

Equity Compensation. 
 In
addition, if you decide to join the Company, the Company will recommend to its Board of Directors (the “Board”) to grant you an option to purchase 240,000 shares of the Company’s Common Stock at a price per share equal to the
fair market value per share of the Common Stock on the date of grant, as determined by the Board. If granted, 25% of the shares subject to the option shall vest twelve (12) months after the vesting commencement date, subject to your continuing
employment with the Company. No shares shall vest before the vesting commencement date. The remaining shares shall vest monthly thereafter over the next 36 months in equal monthly amounts subject to your continuing employment with the Company on
each such vesting date. This option grant, including its vesting requirements, shall be subject to the terms and conditions of the Company’s Stock Option Plan and Stock Option Agreement. No right to any stock is earned or accrued until such
time that vesting occurs, nor does the grant confer any right to continued vesting or employment. 

  
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 Protection of Third Party Information / Compliance with Confidentiality Agreement and Company
Policies. 
 We ask that, if you have not already done so, you disclose to the Company any and all agreements relating to your prior
employment that may affect your eligibility to be employed by the Company or restrict your activities on behalf of the Company. By signing below, you represent that you have not signed any agreements that will prevent you from performing the duties
of your position. Moreover, you agree that, during the term of your employment with the Company, you will not engage in any other employment, occupation, consulting or other business activity directly related to the business in which the Company is
now involved or becomes involved during the term of your employment, nor will you engage in any other activities that conflict with your obligations to the Company. 

In your work for the Company, you will be expected not to make any unauthorized use or disclosure of any confidential or proprietary
information, including trade secrets, of any former employer or other third party to whom you have contractual obligations to protect such information. Rather, you will be expected to use only that information which is generally known and used by
persons with training and experience comparable to your own, which is common knowledge in the industry or otherwise legally in the public domain, or which is provided or developed by the Company. You represent and agree that you are not in
unauthorized possession of, and will not to bring onto Company premises, any former employer or third party confidential information or property. 

As a Company employee, you will be expected to abide by the Company’s rules, policies and standards (including, but not limited to, the
Company’s Employee Handbook), as adopted or modified by the Company from time to time. As a condition of your employment, you are also required to sign and comply with the Employee Confidential Information and Invention Assignment Agreement
which requires, among other provisions, the assignment of patent rights to any invention made during your employment at the Company, and non-disclosure of Company proprietary information (the
“Agreement”). Please note that we must receive your signed Agreement on or before your first day of employment. 
 At-Will Employment; Severance. 
 At-Will Employment.
The Company is excited about your joining and looks forward to a beneficial and productive relationship. Nevertheless, you should be aware that your employment with the Company is for no specified period and constitutes at-will employment. As a result, you are free to resign at any time, for any reason or for no reason. Similarly, the Company is free to terminate its employment relationship with you at any time, with or without
Cause (as defined below), and with or without advance notice. We request that, in the event of your employment resignation, you give the Company at least two weeks’ notice. 

  
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 Termination without Cause. If, at any time, the Company terminates your employment without
Cause (and other than as a result of your death or disability), and provided such termination constitutes a Separation from Service (as defined below) (such termination, a “Qualifying Termination”), then subject to your signing and
delivering to the Company an effective Release and your continued compliance with the terms of the Agreement, the Company will provide you with the following severance benefits: 

(a) Cash Severance. The Company will pay you, as cash severance, six (6) months of your base salary in effect as of your
Separation from Service date, less standard payroll deductions and tax withholdings (the “Cash Severance”). The Severance will be paid in installments in the form of continuation of your base salary payments, paid on the
Company’s ordinary payroll dates, commencing on the Company’s first regular payroll date that is more than sixty (60) days following your Separation from Service date, and shall be for any accrued base salary for the sixty (60)-day period plus the period from the sixtieth (60th) day until the regular payroll date, if applicable, and all salary continuation payments thereafter, if
any, shall be made on the Company’s regular payroll dates. 
 (b) COBRA Severance. The Company will continue to pay the cost of
your health care coverage in effect at the time of your Separation from Service for a maximum of six (6) months, either under the Company’s regular health plan (if permitted), or by paying your COBRA premiums (the “COBRA
Severance”). The Company’s obligation to pay the COBRA Severance on your behalf will cease if you obtain health care coverage from another source (e.g., a new employer or spouse’s benefit plan), unless otherwise prohibited by
applicable law. You must notify the Company within two (2) weeks if you obtain coverage from a new source. This payment of COBRA Severance by the Company would not expand or extend the maximum period of COBRA coverage to which you would
otherwise be entitled under applicable law. Notwithstanding the above, if the Company determines in its sole discretion that it cannot provide the foregoing, COBRA Severance without potentially 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 termination (each payment, a “Special Payment”) (which amount shall be based on the premium for the first month of COBRA coverage), which Special 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 coverage or (y) the last day of the sixth
(6th) calendar month following your Separation from Service date. The first installment of any Special Payment, including any installments that you would have otherwise received earlier, will be
made in the month that the Release becomes effective, but, if the Release Period spans two (2) calendar years, you will not be paid any Special Payments until the second calendar year. 

Termination without Cause in Connection with Change of Control. In the event of a Qualifying Termination that occurs in connection with
or within twelve (12) months following the effective closing date of a Change in Control (as defined below), then subject to your signing and delivering to the Company an effective Release (as defined below) and your continued compliance with
the terms of this offer letter agreement and the Agreement (as defined below), as an additional severance benefit the Company shall accelerate the vesting of any then-unvested shares subject to the Option such that one hundred percent (100%) of such
shares shall be deemed immediately vested and exercisable as of your Separation from Service date (the “Accelerated Vesting”). 

  
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 Resignation; Termination for Cause; Death or Disability. If, at any time, you resign your
employment, or the Company terminates your employment for Cause, or if either party terminates your employment as a result of your death or disability, you will receive your base salary accrued through your last day of employment, as well as any
unused vacation (if applicable) accrued through your last day of employment. Under these circumstances, you will not be entitled to any other form of compensation from the Company, including any Cash Severance, COBRA Severance or Accelerated
Vesting, other than your rights to the vested portion of your Option and any other rights to which you are entitled under the Company’s benefit programs. 

Conditions to Receipt of Cash Severance, COBRA Severance and Accelerated Vesting. Prior to and as a condition to your receipt of the
Cash Severance, COBRA Severance or Accelerated Vesting described above, you shall execute and deliver to the Company an effective release of claims in favor of and in a form acceptable to the Company (the “Release”) within the
timeframe set forth therein, but not later than forty-five (45) days following your Separation from Service date, and allow the Release to become effective according to its terms (by not invoking any legal right to revoke it) within any
applicable time period set forth therein (such latest permitted effective date, the “Release Deadline”). 
 Definitions.

 For purposes of this Agreement, the following terms shall have the following meanings: 

“Cause” for termination will mean your: (a) commission or conviction (including a guilty plea or plea of nolo
contendere) of any felony or any other crime involving fraud, dishonesty or moral turpitude; (b) your commission or attempted commission of or participation in a fraud or act of dishonesty or misrepresentation against the Company;
(c) material breach of your duties to the Company; (d) intentional damage to any property of the Company; (e) misconduct, or other violation of Company policy that causes harm; (f) your material violation of any written and fully
executed contract or agreement between you and the Company, including without limitation, material breach of your Confidentiality Agreement, or of any Company policy, or of any statutory duty you owe to the Company; or (g) conduct by you which
in the good faith and reasonable determination of the Company demonstrates gross unfitness to serve. The determination that a termination is for Cause shall be made by the Company in its sole discretion. 

“Change of Control” shall mean: (a) any consolidation or merger of the Company with or into any other corporation or
other entity or person, or any other corporate reorganization, other than any such consolidation, merger or reorganization in which the stockholders of the Company immediately prior to such consolidation, merger or reorganization, continue to hold a
majority of the voting power of the surviving entity (or, if the surviving entity is a wholly owned subsidiary, its parent) immediately after such consolidation, merger or reorganization; (b) any transaction or series of related transactions to
which the Company is a party in which in excess of fifty percent (50%) of the Company’s voting power is transferred; provided that the foregoing shall not include any transaction or series of transactions principally for bona fide equity
financing purposes in which cash is received by the Company or indebtedness of the Company is cancelled or converted or a combination thereof; or (c) a sale, lease, exclusive license or other disposition of all or substantially all of the
assets of the Company. 

  
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 “Separation from Service” shall mean a “separation from service” as
such term is defined in Treasury Regulation Section 1.409A-1(h). 
 Compliance with Section
409A. 
 It is intended that the Cash Severance, COBRA Severance and Accelerated Vesting set forth in this Agreement satisfy, to the
greatest extent possible, the exemptions from the application of Section 409A of the Internal Revenue Code of 1986, as amended, (the “Code”) (Section 409A, together with any state law of similar effect, “Section
409A”) provided under Treasury Regulations 1.409A-1(b)(4), 1.409A-1(b)(5) and 1.409A-1(b)(9). For purposes of Section
409A (including, without limitation, for purposes of Treasury Regulations 1.409A-2(b)(2)(iii)), 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 the Company (or, if applicable, the successor entity thereto) determines that the Cash Severance, COBRA Severance or Accelerated Vesting constitute “deferred compensation” under Section 409A and you are, on the date
of your Separation from Service, a “specified employee” of the Company or any successor entity thereto, as such term is defined in Section 409A(a)(2)(B)(i) of the Code (a “Specified Employee”), then, solely to the extent
necessary to avoid the incurrence of adverse personal tax consequences under Section 409A, the timing of the Cash Severance, COBRA Severance and Accelerated Vesting shall be delayed until the earliest of: (i) the date that is six
(6) months and one (1) day after your Separation from Service date, (ii) the date of your death, or (iii) such earlier date as permitted under Section 409A without the imposition of adverse taxation. Upon the first business day
following the expiration of such applicable Code Section 409A(a)(2)(B)(i) period, all payments or benefits deferred pursuant to this Section 17 shall be paid in a lump sum or provided in full by the Company (or the successor entity thereto, as
applicable), and any remaining payments due shall be paid as otherwise provided herein. No interest shall be due on any amounts so deferred. If the Cash Severance, COBRA Severance and Accelerated Vesting benefits are not covered by one or more
exemptions from the application of Section 409A and the Release could become effective in the calendar year following the calendar year in which you have a Separation from Service, the Release will not be deemed effective any earlier than the
Release Deadline. The Cash Severance, COBRA Severance and Accelerated Vesting benefits are intended to qualify for an exemption from application of Section 409A or comply with its requirements to the extent necessary to avoid adverse personal tax
consequences under Section 409A, and any ambiguities herein shall be interpreted accordingly. 
 Section 280G; Parachute Payments.

 (a) If any payment or benefit you will or may receive from the Company or otherwise (a “280G Payment”) would
(i) constitute a “parachute payment” within the meaning of Section 280G of the Code, and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then
any such 280G Payment provided pursuant to this Agreement (a “Payment”) shall be equal to the Reduced Amount. The “Reduced Amount” shall be either (x) the largest portion of the Payment that would result in no portion
of the Payment (after reduction) being subject to the Excise Tax or (y) the largest portion, up to and including the total, of the Payment, whichever amount (i.e., the amount 

  
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determined by clause (x) or by clause (y)), after taking into account all applicable federal, state and local employment taxes, income taxes, and the Excise Tax (all computed at the highest
applicable marginal rate), results in your receipt, on an after-tax basis, of the greater economic benefit notwithstanding that all or some portion of the Payment may be subject to the Excise Tax. If a
reduction in a Payment is required pursuant to the preceding sentence and the Reduced Amount is determined pursuant to clause (x) of the preceding sentence, the reduction shall occur in the manner (the “Reduction Method”) that
results in the greatest economic benefit for you. If more than one method of reduction will result in the same economic benefit, the items so reduced will be reduced pro rata (the “Pro Rata Reduction Method”). 

(b) Notwithstanding any provision of subsection (a) above to the contrary, if the Reduction Method or the Pro Rata Reduction
Method would result in any portion of the Payment being subject to taxes pursuant to Section 409A that would not otherwise be subject to taxes pursuant to Section 409A, then the Reduction Method and/or the Pro Rata Reduction Method, as the case may
be, shall be modified so as to avoid the imposition of taxes pursuant to Section 409A as follows: (A) as a first priority, the modification shall preserve to the greatest extent possible, the greatest economic benefit for you as determined on
an after-tax basis; (B) as a second priority, Payments that are contingent on future events (e.g., being terminated without Cause), shall be reduced (or eliminated) before Payments that are not contingent
on future events; and (C) as a third priority, Payments that are “deferred compensation” within the meaning of Section 409A shall be reduced (or eliminated) before Payments that are not deferred compensation within the meaning of
Section 409A. 
 (c) Unless you and the Company agree on an alternative accounting firm or law firm, the accounting firm engaged by
the Company for general tax compliance purposes as of the day prior to the effective date of the Change in Control transaction shall perform the foregoing calculations. If the accounting firm so engaged by the Company is serving as accountant or
auditor for the individual, entity or group effecting the change in control transaction, the Company shall appoint a nationally recognized accounting or law firm to make the determinations required by this Section 18. The Company shall bear all
expenses with respect to the determinations by such accounting or law firm required to be made hereunder. The Company shall use commercially reasonable efforts to cause the accounting or law firm engaged to make the determinations hereunder to
provide its calculations, together with detailed supporting documentation, to you and the Company within fifteen (15) calendar days after the date on which your right to a 280G Payment becomes reasonably likely to occur (if requested at that
time by you or the Company) or such other time as requested by you or the Company. 
 (d) If you receive a Payment for which the
Reduced Amount was determined pursuant to clause (x) of Section 18(a) and the Internal Revenue Service determines thereafter that some portion of the Payment is subject to the Excise Tax, Executive agrees to promptly return to the Company a
sufficient amount of the Payment (after reduction pursuant to clause (x) of Section 18(a)) so that no portion of the remaining Payment is subject to the Excise Tax. For the avoidance of doubt, if the Reduced Amount was determined pursuant to
clause (y) of Section 18(a), you shall have no obligation to return any portion of the Payment pursuant to the preceding sentence. 

  
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 Dispute Resolution. 

To ensure the timely and economical resolution of disputes that may arise in connection with your employment with the Company, you and the
Company agree that any and all disputes, claims, or causes of action arising from or relating to the enforcement, breach, performance, negotiation, execution, or interpretation of this Agreement, or your employment, or the termination of your
employment, including but not limited to all statutory claims, shall be resolved pursuant to the Federal Arbitration Act, 9 U.S.C. §1-16, and to the fullest extent permitted by law, by final, binding and
confidential arbitration by a single arbitrator conducted in San Francisco, California, by Judicial Arbitration and Mediation Services Inc. (“JAMS”) under the then applicable JAMS rules, which can be found at the following web
address: http://www.jamsadr.com/rulesclauses). A hard copy of the rules will be provided to you upon request. By agreeing to this arbitration procedure, both you and the Company waive the right to resolve any such dispute through a trial
by jury or judge or administrative proceeding. In addition, all claims, disputes, or causes of action under this section, whether by you or the Company, must be brought in an individual capacity, and shall not be brought as a plaintiff (or
claimant) or class member in any purported class or representative proceeding, nor joined or consolidated with the claims of any other person or entity. The Arbitrator may not consolidate the claims of more than one person or entity, and may not
preside over any form of representative or class proceeding. This paragraph shall not apply to an action or claim brought in court pursuant to the California Private Attorneys General Act of 2004, as amended. The Company acknowledges that you will
have the right to be represented by legal counsel at any arbitration proceeding. Questions of whether a claim is subject to arbitration under this agreement) shall be decided by the arbitrator. Likewise, procedural questions which grow out of the
dispute and bear on the final disposition are also matters for the arbitrator. The arbitrator shall: (a) have the authority to compel adequate discovery for the resolution of the dispute and to award such relief as would otherwise be permitted
by law; (b) issue a written arbitration decision, to include the arbitrator’s essential findings and conclusions and a statement of the award; and (c) be authorized to award any or all remedies that you or the Company would be
entitled to seek in a court of law. The Company shall pay all JAMS’ arbitration fees in excess of the amount of court fees that would be required of you if the dispute were decided in a court of law. Nothing in this Agreement is intended to
prevent either you or the Company from obtaining injunctive relief in court to prevent irreparable harm pending the conclusion of any such arbitration. Any awards or orders in such arbitrations may be entered and enforced as judgments in the federal
and state courts of any competent jurisdiction. 
 Miscellaneous. 

For purposes of federal immigration law, you will be required to provide to the Company documentary evidence of your identity and eligibility
for employment in the United States. Such documentation must be provided to us within three (3) business days of your date of hire, or your employment may be terminated. 

This letter, along with the Agreement, forms the complete and exclusive agreement regarding your employment with the Company. It supersedes
any prior representations or agreements including, but not limited to, any representations made during your recruitment, interviews or pre-employment negotiations, whether written or oral. Except for those
changes expressly reserved to the Company’s discretion, the terms in this letter, including, but not 

  
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limited to, its at-will employment provision, may not be modified or amended except by a written agreement signed by an authorized officer or member of the
Board of the Company and you. If any provision of this offer letter agreement is determined to be invalid or unenforceable, in whole or in part, this determination shall not affect any other provision of this offer letter agreement and the provision
in question shall be modified so as to be rendered enforceable in a manner consistent with the intent of the parties insofar as possible under applicable law. 

To accept the Company’s offer, please sign and date this letter in the space provided below. If you accept our offer, your first day of
employment will be on or around May 16 for the Company’s AGM in Sydney Australia – June 6, 2016. Due to ongoing obligations at employee’s current employer, it may be necessary to work through the end of May at his current
company. AirXpanders will make every effort to allow the needed time for the employee to close out his required work flow. This offer of employment will terminate if it is not accepted, signed and returned by the close of business on May 6,
2016. If you choose to electronically submit your signed offer of employment, please send to my confidential email at sdodson@airxpanders.com or my confidential fax
650-390-9002. 
 [Signature Page to Follow] 

  
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 We look forward to your favorable reply and to working with you at AirXpanders, Inc. 

 

	
	Sincerely,
	
	




	Scott Dodson
	President and CEO
	AirXpanders, Inc.


  

			
	Agreed to and accepted:
		
	Signature:	 	 




  

		
	Date:	 	 2-May-2016



  
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