Exhibit 10.27


 


TITAN PHARMACEUTICALS, INC. 

EMPLOYMENT AGREEMENT


 


This EMPLOYMENT AGREEMENT
(this "Agreement") is made and entered into on November 1, 2018 (the "Effective Date") by and
between Titan Pharmaceuticals, Inc. (the "Company") and Katherine Beebe DeVarney, Ph.D. ("Executive").
The Company and Executive are hereinafter collectively referred to as the "Parties", and individually
referred to as a "Party".


 


Recitals


 


A.           The
Company desires assurance of the association and services of Executive in order to retain Executive's experience, skills, abilities,
background and knowledge, and is willing to engage Executive's services on the terms and conditions set forth in this Agreement.


 


B.           Executive
desires to be in the employ of the Company, and is willing to accept such employment on the terms and conditions set forth in this
Agreement.


 


AGREEMENT


 


In consideration
of the foregoing Recitals and the mutual promises and covenants herein contained, and for other good and valuable consideration,
the Parties, intending to be legally bound, agree as follows:


 


1.          EMPLOYMENT.


 


1.1           Title.
Executive's position shall be Executive Vice President and Chief Scientific Officer, subject to the terms and conditions set
forth in this Agreement.


 


1.2           Term.
The term of this Agreement shall begin on the Effective Date and shall continue until it is terminated pursuant to Section
4 herein (the "Term").


 


1.3           Duties.
Executive shall have the customary powers, responsibilities and authorities of Executive Vice President and Chief Scientific
Officer of corporations of the size, type and nature of the Company, as it exists from time to time. Executive shall report to
the Company's Chief Executive Officer.


 


2.          NONCOMPETITION;
NON-SOLICITATION.


 


2.1           Covenant
not to Compete. During the Term and for a period of six (6) months thereafter (the "Restricted Period"), Executive
shall not engage in competition with the Company, either directly or indirectly, in any manner or capacity, as adviser, principal,
agent, affiliate, promoter, partner, officer, director, employee, stockholder, owner, co-owner, consultant, or member of any association
or otherwise, in any phase of the business of developing, manufacturing and marketing of products for the treatment of opioid addiction
or implantable long-term, continuous drug delivery (a "Competitive Entity"), except with the prior written
consent of the Board. Ownership by Executive, in professionally managed funds over which the Executive does not have control or
discretion in investment decisions, or as a passive investment, of less than five percent (5%) of the outstanding shares of capital
stock of any corporation with one or more classes of its capital stock listed on a national securities exchange or publicly traded
on a national securities exchange or in the over-the-counter market shall not constitute a breach of this Section.


 




     


     


    

 


2.2           Non-solicitation.
During the Restricted Period, Executive shall not: (i) solicit or induce, or attempt to solicit or induce, any employee of the
Company to leave the employ of the Company; or (ii) solicit or attempt to solicit the business of any client or customer of the
Company with respect to products, services, or investments similar to those provided or supplied by the Company.


 


2.3           Acknowledgements.
Executive acknowledges and agrees that her services to the Company pursuant to this Agreement are unique and extraordinary
and that in the course of performing such services Executive shall have access to and knowledge of significant confidential, proprietary,
and trade secret information belonging to the Company. Executive agrees that the covenant not to compete and the non-solicitation
obligations imposed by this Section 2 are reasonable in duration, geographic area, and scope and are necessary to protect the Company's
legitimate business interests in its goodwill, its confidential, proprietary, and trade secret information, and its investment
in the unique and extraordinary services to be provided by Executive pursuant to this Agreement. If, at the time of enforcement
of this Section 2, a court holds that the covenant not to compete and/or the non-solicitation obligations described herein are
unreasonable or unenforceable under the circumstances then existing, then the Parties agree that the maximum duration, scope, and/or
geographic area legally permissible under such circumstances will be substituted for the duration, scope and/or area stated herein.


 


3.          COMPENSATION
OF THE EXECUTIVE.


 


3.1           Base
Salary. The Company shall pay Executive a base salary (the "Base Salary") at the annualized rate of
Three Hundred and Sixty-five Thousand Dollars ($365,000), less payroll deductions and all required withholdings, payable in regular
periodic payments in accordance with the Company's normal payroll practices. The Base Salary shall be prorated for any partial
year of employment on the basis of a 365-day fiscal year. Executive's compensation will be reviewed at least on an annual basis
and the Company may increase, but not decrease (except in connection with a Company-wide decrease in executive compensation), Executive's
Base Salary from time to time, and if so increased, "Base Salary" shall include such increases for purposes of this Agreement.


 


3.2           Bonuses.
Executive may, at the sole discretion of the Board of Directors of the Company (the "Board'') or the compensation
committee of the Board (the "Committee") be considered for an annual bonus of up to an aggregate of fifty (50%) percent
of the Executive's then Base Salary, payable in (i) cash and/or (ii) awards under the Company's equity incentive plans ("Annual
Bonus"). Both the amount and make-up of any Annual Bonus shall be at the sole discretion of the Board or the Committee.


 


3.3           Stock
Options. In the event Executive’s employment is terminated under the provisions of Sections 4.5.3 or 4.5.4 hereof, all
vested stock options will remain exercisable for a period of twelve (12) months following termination.


 




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3.4           Expense
Reimbursements. The Company will reimburse Executive for all reasonable business expenses Executive incurs in conducting her
duties hereunder, pursuant to the Company's usual expense reimbursement policies


 


3.5           Benefits.
The Executive shall, in accordance with Company policy and the applicable plan documents, be eligible to participate in benefits
under any benefit plan or arrangement, including medical, dental, vision, disability and life insurance programs, that may be in
effect from time to time and made available to the Company's senior management employees, subject to the terms and conditions of
those benefit plans. The Company reserves the right to suspend, amend or terminate any employee benefit plan or program at any
time.


 


3.6           Holidays
and Vacation. Executive shall be entitled to four (4) weeks of Company paid vacation per year. In addition to such paid vacation,
Executive shall receive all paid Company holidays and sick leave in accordance with Company policy.


 


4.          TERMINATION.


 


4.1           Termination
by the Company. Executive's employment with the Company is at will and may be terminated by the Company at any time and for
any reason, or for no reason, including, but not limited to, under the following conditions:


 


4.1.1       Termination
by the Company for Cause. The Company may terminate Executive's employment under this Agreement for "Cause" by delivery
of written notice to Executive. Any notice of termination given pursuant to this Section 4.1.1 shall effect termination as of the
date of the notice, or as of such other date as specified in the notice.


 


4.1.2       Termination
by the Company without Cause. The Company may terminate Executive's employment under this Agreement without Cause at any time
and for any reason, or for no reason. Such termination shall be effective on the date Executive is so informed, or as otherwise
specified by the Company.


 


4.2           Termination
by Resignation of Executive. Executive's employment with the Company is at will and may be terminated by Executive at any time
and for any reason, or for no reason, including via a resignation for Good Reason in accordance with the procedures set forth in
Section 4.6.3 below.


 


4.3           Termination
for Death or Complete Disability. Executive’s employment with the Company shall automatically terminate effective upon
Executive's death or Complete Disability (as defined below).


 


4.4           Termination
by Mutual Agreement of the Parties. Executive's employment with the Company may be terminated at any time upon a mutual agreement
in writing of the Parties. Any such termination of employment shall have the consequences specified in such agreement.


 




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4.5         Compensation
Upon Termination.


 


4.5.1           Death
or Complete Disability. If, during the Term of this Agreement, Executive's employment shall be terminated by death or Complete
Disability, the Company shall pay to Executive, her estate, or her heirs, as applicable, (i) any Base Salary owed to Executive
through the date of termination; (ii) expenses reimbursement amounts owed to Executive; (iii) all unpaid amounts of any Annual
Bonus(es) Executive earned prior to the termination date; (iv) a cash lump sum in respect to accrued and unused vacation benefits
earned through the date of termination at the rate in effect at the time of termination; (v) any payments and benefits to which
Executive (or her estate) is entitled pursuant to the terms of any employee benefit or compensation plan or program in which she
participates (or participated); and (vi) any amount to which Executive is entitled pursuant to any other written agreements between
the Company or any of its affiliates and Executive (the amounts in (i) through (vi) above being the "Termination Amounts").
The Company shall pay Executive: (A) the amounts contained in items (i) through (iv) within ten (10) days following such
termination; (B) any payments associated with (v) in accordance to the terms of such plans or programs; and (C) any such amounts
in (vi) in accordance with the terms of such agreements, with the Termination Amounts being subject to the standard deductions
and withholdings (as applicable). In addition, subject to Executive (or her estate or heirs, as applicable) furnishing to the Company
an executed waiver and release of claims in the form attached hereto as Exhibit A (the "Release") within
the time period specified therein, and allowing the Release to become effective in accordance with its terms, then Executive, her
estate, or her heirs, as applicable, shall also be entitled to: (1) continuation of Executive's salary (at the Base Salary rate
in effect at the time of termination) for a period of ninety (90) days following the termination date; and (2) a prorated annual
bonus equal to the Annual Bonus, if any, for the year of termination multiplied by a fraction, the numerator of which shall be
the number of full and partial months Executive worked for the Company and the denominator of which shall be 12. The Base Salary
payments will be subject to standard payroll deductions and withholdings and will be made on the Company's regular payroll cycle,
provided, however, that any payments otherwise scheduled to be made prior to the effective date of the Release shall accrue and
be paid in the first payroll period that follows such effective date. The prorated annual bonus payment will be subject to standard
payroll deductions and withholdings and will paid at the same time as the Annual Bonus, if any, would have been paid to Executive
under Section 3.2 above, had Executive remained employed with the Company.


 


4.5.2           Termination
For Cause or Resignation without Good Reason. If, during the Term of this Agreement, Executive's employment is terminated by
the Company for Cause, or Executive resigns her employment hereunder without Good Reason, the Company shall pay Executive the Termination
Amounts, less standard deductions and withholdings. The Company shall thereafter have no further obligations to Executive under
this Agreement, except as otherwise provided by law.


 




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4.5.3           Termination
Without Cause or Resignation For Good Reason Not In Connection with a Change of Control. If the Company terminates Executive's
employment without Cause, or if Executive resigns for Good Reason, at any time other than upon the occurrence of, or within thirty
(30) days prior to, or six (6) months following, the effective date of a Change of Control (as defined below), the Company shall
pay Executive the Termination Amounts, less standard deductions and withholdings. In addition, subject to Executive furnishing
to the Company an executed Release within the time period specified therein, and allowing the Release to become effective in accordance
with its terms, Executive shall be entitled to: (1) severance in the form of continuation of her salary (at the Base Salary rate
in effect at the time of termination, but prior to any reduction triggering Good Reason) for a period of twelve (12) months following
the termination date; (2) payment of Executive's premiums to cover COBRA for a period of twelve (12) months following the termination
date; and (3) a prorated annual bonus equal to the target Annual Bonus, if any, for the year of termination multiplied by a fraction,
the numerator of which shall be the number of full and partial months Executive worked for the Company and the denominator of which
shall be 12, and (4) immediate accelerated vesting of any unvested Restricted Shares and unvested outstanding stock option(s).
These payments under (1), (2) and (3) above will be subject to standard payroll deductions and withholdings and will be made on
the Company's regular payroll cycle, provided, however, that any payments otherwise scheduled to be made prior to the effective
date of the Release shall accrue and be paid in the first payroll period that follows such effective date.


 


4.5.4           Termination
Without Cause or Resignation For Good Reason In Connection with a Change of Control. If the Company terminates
Executive's employment without Cause, or if Executive resigns for Good Reason, upon the occurrence of, or within thirty (30)
days prior to, or within six (6) months following, the effective date of a Change of Control, the Company shall pay Executive
the Termination Amounts, less standard deductions and withholdings. In addition, subject to Executive furnishing to the
Company an executed Release within the time period specified therein, and allowing the Release to become effective in
accordance with its terms, then Executive shall be entitled to: (1) severance in the form of a lump sum payment equivalent to
twelve (12) months of her Base Salary (at the Base Salary rate in effect at the time of termination, but prior to any
reduction triggering Good Reason); (2) payment of Executive's premiums to cover COBRA for a period of twelve (12) months
following the termination date; (3) a prorated annual bonus equal to the target Annual Bonus, if any, for the year of
termination multiplied by a fraction, the numerator of which shall be the number of full and partial months Executive worked
for the Company and the denominator of which shall be 12, and (4) immediate accelerated vesting of any unvested Restricted
Shares and unvested outstanding stock option(s). These payments under (1), (2), and (3) above, will be subject to standard
payroll deductions and withholdings and will be made on the Company's regular payroll cycle, provided, however, that any
payments otherwise scheduled to be made prior to the effective date of the Release shall accrue and be paid in the first
payroll period that follows such effective date.


 


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


 


4.6.1     Complete
Disability. "Complete Disability" means that Executive is determined to be permanently disabled pursuant to
the Company's long term disability plan and is receiving disability benefits under such plan.


 




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4.6.2     Cause.
"Cause" for the Company to terminate Executive's employment hereunder shall mean the occurrence of any of
the following events, as determined by the Company and/or the Board in its and/or their sole and absolute discretion:


 


(i)          The
willful failure, disregard or refusal by Executive to perform her material duties or obligations under this Agreement or to follow
lawful directions received by Executive from the Chief Executive Officer;


 


(ii)         Any
grossly negligent act by Executive having the effect of materially injuring (whether financially or otherwise) the business or
reputation of the Company or any willful act by Executive intended to cause such material injury, except any acts (A) made by Executive
in connection with the enforcement of her rights, whether under this Agreement, any other agreement between the Company or any
affiliate and Executive, or pursuant to applicable law (e.g. disparagement, etc.) or (B) which are required by law or pursuant
to a subpoena or demand by a governmental or regulatory body;


 


(iii)        Executive's
indictment of any felony involving moral turpitude (including entry of a nolo contendere plea);


 


(iv)        The
determination, after a reasonable and good-faith investigation by the Company, that the Executive engaged in discrimination prohibited
by law (including, without limitation, age, sex or race discrimination);


 


(v)         Executive's
material misappropnat1on or embezzlement of the property of the Company or its Affiliates (whether or not a misdemeanor or felony);
or


 


(vi)        Material
breach by Executive of this Agreement and/or of the Company's Proprietary Information and Inventions Agreement or other non-disclosure
agreement to which Executive is a party (collectively, the "Pl/A"); provided, however, that, any such termination
of Executive shall only be deemed for Cause pursuant to this definition if: (1) the Company gives the Executive written notice
of the condition(s) alleged to constitute Cause, which notice shall describe such condition(s); and (2) the Executive fails to
remedy such condition(s) (if curable) within thirty (30) days following receipt of the written notice.


 


For purposes of this
definition, the Parties agree that (1) a change in Executive's role and/or title to no less than Senior Vice President shall not
constitute Cause under this Agreement; and (2) any breach of Sections 2 or 5 of this Agreement shall be deemed a material breach
that is not capable of cure by Executive.


 


4.6.3     Good
Reason. For purposes of this Agreement, and subject to the caveat at the end of this Section, "Good Reason" for Executive
to terminate her employment hereunder shall mean the occurrence of any of the following events without Executive's prior written
consent:


 


(i)          any
reduction by the Company of Executive's Base Salary as initially set forth herein or as the same may be increased from time to
time, provided, however, that if such reduction occurs in connection with a Company-wide decrease in executive compensation, such
reduction shall not constitute Good Reason for Executive to terminate her employment;


 




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(ii)         a
material breach by the Company (or any of its affiliates) of this Agreement or any other written agreement between the Company
or any of its affiliates and Executive; or


 


(iii)        a
material diminution in Executive's duties, authority or responsibilities, especially as they pertain to clinical development and
medical affairs functions; provided, however, a change in Executive's title shall not constitute Good Reason under this Agreement;


 


(iv)        any
failure of the Company to pay Executive any amount owed to Executive under this Agreement or any other written agreement plan or
program between the Company and Executive;


 


(v)         any
reduction in Executive's bonus eligibility; or


 


(vi)        the
assignment to Executive of duties materially inconsistent with her position with the Company.


 


Provided, however, that,
any such termination by the Executive shall only be deemed for Good Reason pursuant to this definition if: (1) the Executive gives
the Company written notice of her intent to terminate for Good Reason; which notice shall describe such condition(s); (2) the Company
fails to remedy such condition(s) within thirty (30) days following receipt of the written notice the "Cure Period");
and (3) Executive voluntarily terminates her employment within thirty (30) days following the end of the Cure Period.


 


4.6.4     Change
of Control. For purposes of this Agreement, "Change of Control" shall mean the occurrence, in a single transaction
or in a series of related transactions, of any one or more of the following events (excluding in any case transactions in which
the Company or its successors issues securities to investors primarily for capital raising purposes):


 


(i)          the
acquisition by a third party (or more than one party acting as a group) of securities of the Company representing more than fifty
percent (50%) of the combined voting power of the Company's then outstanding securities other than by virtue of a merger, consolidation
or similar transaction;


 


(ii)         a
merger, consolidation or similar transaction following which the stockholders of the Company immediately prior thereto do not own
at least fifty percent (50%) of the combined outstanding voting power of the surviving entity (or that entity's parent) in such
merger, consolidation or similar transaction;


 


(iii)        the
dissolution or liquidation of the Company; or


 


(iv)        the
sale, lease, exclusive license or other disposition of all or substantially all of the assets of the Company.


 




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4.7          Survival
of Certain Sections. Sections 3, 4, 5, 6, 7, 8, 9, 12, 13, 16, 17, 19 and 21 of this Agreement will survive the termination
of this Agreement.


 


4.8           Parachute
Payment. Payments made by the Company to Executive shall be subject to withholding for applicable federal, state or local income
tax withholding requirements and Social Security or other employee tax requirements applicable to the payment of compensation and
benefits hereunder. If it shall be determined that any payment or distribution by the Company to or for the benefit of Executive
under this Agreement or any other plans or arrangements between the parties would be subject to the deduction limitations and excise
tax imposed by Sections 2800 and 4999 of the Internal Revenue Code, (including any applicable interest and penalties, collectively
referred to herein as "Excise Taxes"), then the parties agree to take such action as may be necessary to
place Executive in the best after-tax position taking into account all income, employment and Excise Taxes, without regard to the
deductibility of any payments by the Company. Thus, for example, any amount deemed to constitute a "parachute payment"
under Section 2800, shall be reduced to the extent necessary to avoid Excise Taxes that would otherwise be imposed if, and only
if, such reduction would result in Executive retaining a larger total after-tax amount of compensation, taking into account all
employee compensation, benefits, income, employment and excise taxes. For avoidance of doubt, Executive shall be fully responsible
for and the Company shall have no liability to Executive for the payment of any Excise Taxes.


 


4.9           Application
of Internal Revenue Code Section 409A. The parties intend that any compensation, benefits and other amounts payable or provided
to Executive under this Agreement be paid or provided in a manner that is either exempt from, or in compliance with, Section 409A
of the United States Internal Revenue Code of 1986, as amended from time to time and related rules, regulations and Treasury pronouncements
(together, "Section 409A") such that there will be no adverse tax consequences, interest, or penalties
for Executive under Section 409A as a result of the payments and benefits so paid or provided to him. The parties agree to modify
this Agreement, or the timing (but not the amount) of the payment hereunder of severance or other compensation, or both, to the
extent necessary to comply with and to the extent permissible under Section 409A. In addition, notwithstanding anything to the
contrary contained in any other provision of this Agreement, the payments and benefits to be provided Executive under this Agreement
shall be subject to the provisions set forth below.


 


(i)          The
date of Executive's "separation from service," as defined in the regulations issued under Section 409A, shall be
treated as Executive's date of termination of employment for purpose of determining the time of payment of any severance that
becomes payable to Executive pursuant to Section 6 upon the termination of Executive's employment and that is deemed to be
nonqualified deferred compensation for purposes of Section 409A. To the extent that any severance payable to Executive
pursuant to Section 6 constitutes nonqualified deferred compensation within the meaning of Section 409A, such amounts shall
not commence on the Payment Date, and instead, the first installment shall not be paid until the sixtieth (60th) day
following Executive's separation from service to the extent necessary to avoid adverse tax consequences under Section 409A;
provided, that such first installment shall be in an amount equal to the amount of the installments to which Executive would
have been paid on the Company's regular paydays prior to the sixtieth (60th) day following Executive's separation from
service had such installments not been delayed pursuant to this Section 20(b). Any remaining payments due under this
Agreement that are not required to be delayed pursuant to the preceding sentence will be paid as scheduled as otherwise
provided in the Agreement.


 




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(ii)         Notwithstanding
any provision in this Agreement to the contrary, if Executive is a "specified employee" within the meaning of Section
409A at the time of her "separation from service" within the meaning of Section 409A, then any payment otherwise required
to be made to him under this Agreement on account of her separation from service, to the extent such payment (after taking in to
account all exclusions applicable to such payment under Section 409A) is properly treated as nonqualified deferred compensation
subject to Section 409A, shall not be made until the first (1st) business day after: (i) the expiration of six (6) months from
the date of Executive's separation from service, or (ii) if earlier, the date of Executive's death. Any remaining payments due
under this Agreement that are not required to be delayed pursuant to the preceding sentence will be paid as scheduled as otherwise
provided in the Agreement.


 


(iii)        In
the case of any amounts that are payable to Executive under this Agreement, Executive's right to receive such payments shall be
treated as a right to receive a series of separate payments under Section 409A.


 


(iv)        To
the extent that the reimbursement of any expenses or the provision of any in-kind benefits pursuant to this Agreement is subject
to Section 409A: (i) the amount of such expenses eligible for reimbursement, or in-kind benefits to be provided hereunder during
any one calendar year shall not affect the amount of such expenses eligible for reimbursement or in-kind benefits to be provided
hereunder in any other calendar year; provided, however, that the foregoing shall not apply to any limit on the amount of any expenses
incurred by Executive that may be reimbursed or paid under the terms of the Company's medical plan, if such limit is imposed on
all similarly situated participants in such plan; (ii) all such expenses eligible for reimbursement hereunder shall be paid to
Executive as soon as administratively practicable after any documentation required for reimbursement for such expenses has been
submitted, but in any event by no later than December 31 of the calendar year following the calendar year in which such expenses
were incurred; and (iii) Executive's right to receive any such reimbursements or in-kind benefits shall not be subject to liquidation
or exchange for any other benefit.


 


5.          CONFIDENTIAL
AND PROPRIETARY INFORMATION.


 


As a condition of employment Executive agrees to execute and
abide by the PIIA.


 


6.          ASSIGNMENT
AND BINDING EFFECT.


 


This
Agreement shall be binding upon and inure to the benefit of Executive and Executive's heirs, executors, personal representatives,
assigns, administrators and legal representatives. Because of the unique and personal nature of Executive's duties under this Agreement,
neither this Agreement nor any rights or obligations under this Agreement shall be assignable by Executive. This Agreement shall
be binding upon and inure to the benefit of the Company and its successors, assigns and legal representatives. Any such successor
of the Company will be deemed substituted for the Company under the terms of this Agreement for all purposes. For this purpose,
"successor" means any person, firm, corporation or other business entity which at any time, whether by purchase, merger
or otherwise, directly or indirectly acquires all or substantially all of the assets or business of the Company.


 




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7.          NOTICES.


 


All notices or demands
of any kind required or permitted to be given by the Company or Executive under this Agreement shall be given in writing and shall
be personally delivered (and receipted for) or faxed during normal business hours or mailed by certified mail, return receipt requested,
postage prepaid, addressed as follows:


 


If to the Company:


Titan Pharmaceuticals, Inc.


400 Oyster Point Blvd., Suite 505


South
San Francisco, CA


(650) 989-2660


Attn: CEO and Chairman


 


If to Executive:


 


Kate Beebe DeVarney, Ph.D.


 


(Current Address on File in Human Resources/Payroll Records)


 


Any such written notice shall be deemed
given on the earlier of the date on which such notice is personally delivered or three (3) days after its deposit in the United
States mail as specified above. Either Party may change its address for notices by giving notice to the other Party in the manner
specified in this Section.


 


8.          CHOICE
OF LAW.


 


This Agreement shall be construed and
interpreted in accordance with the internal laws of the State of California without regard to its conflict of laws principles.


 


9.          INTEGRATION.


 


This Agreement, including
Exhibit A and the PIIA, contains the complete, final and exclusive agreement of the Parties relating to the terms and conditions
of Executive's employment and the termination of Executive's employment, and supersedes all prior and contemporaneous oral and
written employment agreements or arrangements between the Parties.


 


10.         AMENDMENT.


 


This Agreement cannot be amended or modified
except by a written agreement signed by Executive and the Company.


 




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11.         WAIVER.


 


No term, covenant
or condition of this Agreement or any breach thereof shall be deemed waived, except with the written consent of the Party against
whom the wavier is claimed, and any waiver or any such term, covenant, condition or breach shall not be deemed to be a waiver of
any preceding or succeeding breach of the same or any other term, covenant, condition or breach.


 


12.         SEVERABILITY.


 


The finding by a
court of competent jurisdiction of the unenforceability, invalidity or illegality of any provision of this Agreement shall not
render any other provision of this Agreement unenforceable, invalid or illegal. Such court shall have the authority to modify or
replace the invalid or unenforceable term or provision with a valid and enforceable term or provision, which most accurately represents
the Parties' intention with respect to the invalid or unenforceable term, or provision.


 


13.         INTERPRETATION;
CONSTRUCTION.


 


The headings set
forth in this Agreement are for convenience of reference only and shall not be used in interpreting this Agreement. This Agreement
has been drafted by legal counsel representing the Company, but the Executive has been encouraged to consult with, and has consulted
with, Executive's own independent counsel and tax advisors with respect to the terms of this Agreement. The Parties acknowledge
that each Party and its counsel has reviewed and revised, or had an opportunity to review and revise, this Agreement, and any rule
of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation
of this Agreement.


 


14.         REPRESENT
ATIONS AND WARRANTIES.


 


Executive represents
and warrants that Executive is not restricted or prohibited, contractually or otherwise, from entering into and performing each
of the terms and covenants contained in this Agreement, and that Executive's execution and performance of this Agreement will not
violate or breach any other agreements between the Executive and any other person or entity.


 


15.         COUNTERPARTS.


 


This Agreement may be
executed in two counterparts, each of which shall be deemed an original, all of which together shall contribute one and the same
instrument. Signatures to this Agreement transmitted by fax, by email in "portable document format" (".pdf")
or by any other electronic means intended to preserve the original graphic and pictorial appearance of this Agreement shall have
the same effect as physical delivery of the paper document bearing original signature.


 




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16.         ARBITRATION.


 


To ensure the rapid
and economical resolution of disputes that may arise in connection with the Executive's employment with the Company, Executive
and the Company agree that any and all disputes, claims, or causes of action, in law or equity, arising from or relating to Executive's
employment, or the termination of that employment, will be resolved, to the fullest extent permitted by law, by final, binding
and confidential arbitration pursuant to the Federal Arbitration Act in San Francisco, California conducted by the Judicial Arbitration
and Mediation Services/Endispute, Inc. (" JAMS"), or its successors, under the then current rules of JAMS
for employment disputes; provided that 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; and (b) issue a written arbitration decision including
the arbitrator's essential findings and conclusions and a statement of the award. Accordingly, Executive and the Company hereby
waive any right to a jury trial. Both Executive and the Company shall be entitled to all rights and remedies that either Executive
or the Company would be entitled to pursue in a court of law. The Company shall pay any JAMS filing fee and shall pay the arbitrator's
fee. The arbitrator shall have the discretion to award attorney’s fees to the party the arbitrator determines is the prevailing
party in the arbitration. Nothing in his Agreement is intended to prevent either Executive or the Company from obtaining injunctive
relief in court to prevent irreparable harm pending the conclusion of any such arbitration. Notwithstanding the foregoing, Executive
and the Company each have the right to resolve any issue or dispute involving confidential, proprietary or trade secret information,
or intellectual property rights, by Court action instead of arbitration.


 


17.         INDEMNIFICATION.


 


The Company shall
defend and indemnify Executive in her capacity as Senior Vice President of Clinical Development and Medical Affairs of the Company
to the fullest extent permitted under the Delaware General Corporation Law ("D GCL" ). The Company shall
also maintain a policy for indemnifying its Executives and directors, including but not limited to the Executive, for all actions
permitted under the DGCL taken in good faith pursuit of their duties for the Company, including but not limited to maintaining
an appropriate level of Directors and Executives Liability coverage and maintaining the inclusion of such provisions in the Company'
s by-laws or articles of incorporation, as applicable and customary. The rights to indemnification shall survive any termination
of this Agreement.


 


18.         TRADE
SECRETS OF OTHERS.


 


It is the understanding
of both the Company and Executive that Executive shall not divulge to the Company and/or its subsidiaries any confidential information
or trade secrets belonging to others, including Executive's former employers, nor shall the Company seek to elicit from Executive
any such information. Consistent with the foregoing, Executive shall not provide to the Company, and the Company shall not request,
any documents or copies of documents containing such information.


 




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19.         ADVERTISING
WAIVER.


 


Executive agrees
to permit the Company, and persons or other organizations authorized by the Company, to use, publish and distribute advertising
or sales promotional literature concerning the products and/or services of the Company, or the machinery and equipment used in
the provision thereof, in which Executive's name and/or pictures of Executive taken in the course of Executive's provision of services
to the Company appear. Executive hereby waives and releases any claim or right Executive may otherwise have arising out of such
use, publication or distribution.


 


20.         NO
MITIGATION.


 


Executive shall not
be required to mitigate damages or the amount of any payment provided for under this Agreement by seeking other employment or otherwise
after the termination of her employment hereunder, and any amounts earned by Executive, whether from self-employment, as a common-law
employee or otherwise, shall not reduce the amount of any payment otherwise payable to him.


 


IN WITNESS WHEREOF, the Parties
have executed this Agreement as of the date first above written.


 


TITAN PHARMACEUTICALS, INC.


 


	By:	/s/ Sunil Bhonsle	 
	 	Name: Sunil Bhonsle
	 	Title: President and Chief Executive Officer


 


	By:	/s/ Marc Rubin, M.D.	 
	 	Name: Marc Rubin, M.D.
	 	Title: Executive Chairman


 


EXECUTIVE:


 


	 	/s/ Katherine Beebe DeVarney, Ph.D.	 
	 	Name: Katherine Beebe DeVarney, Ph.D.
	 	Title: Executive Vice President and Chief Scientific Officer


 




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EXHIBIT A


 


RELEASE AND WAIVER OF CLAIMS


 


TO BE SIGNED ON OR FOLLOWING THE SEPARATION DATE ONLY


 


In consideration
of the payments and other benefits set forth in the Employment Agreement effective as of ______________ , to which this form is
attached, I, ______________________ hereby furnish (the "Company”), with the following release and waiver
("Release and Waiver”).


 


In
exchange for the consideration provided to me by the Employment Agreement that I am not otherwise entitled to receive, I hereby
generally and completely release the Company and its current and former directors, Executives, employees, stockholders, partners,
agents, attorneys, predecessors, successors, parent and subsidiary entities, insurers, affiliates, and assigns (collectively, the
"Released Parties") from any and all claims, liabilities and obligations, both known and unknown, that
arise out of or are in any way related to events, acts, conduct, or omissions occurring prior to or on the date that I sign this
Agreement (collectively, the "Released Claims"). Except as provided below, the Released Claims include,
but are not limited to: (a) all claims arising out of or in any way related to my employment with the Company, or the termination
of that employment; (b) all claims related to my 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; (c) all claims for breach of contract, wrongful termination, and breach of the implied covenant of good faith and
fair dealing; (d) all tort claims, including claims for fraud, defamation, emotional distress, and discharge in violation of public
policy; and (e) all federal, state, and local statutory claims, including claims for discrimination, harassment, retaliation, misclassification,
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 federal Age Discrimination in Employment Act of 1967 (as amended) (the "ADEA"), the fair
employment practices statutes of the state or states in which I have provided services to the Company and/or any other federal,
state or local law, regulation or other requirement. Notwithstanding the foregoing, the following are not included in the Released
Claims (the "Excluded Claims"): (a) any rights or claims under the Agreement or any other written agreement
between the Company and me, including any stock option award agreement or plan, (b) any rights or claims that may arise as a result
of events occurring after the date this Release and Waiver is executed or which otherwise cannot lawfully be waived, (c) any indemnification
rights I may have as a former Executive or director of the Company or its subsidiaries or affiliated companies, including any rights
or claims for indemnification I may have pursuant to any written indemnification agreement with the Company to which I am a party,
the charter, bylaws, or operating agreements of the Company, or under applicable law; (d) any claims for benefits under any directors'
and Executives' liability policy maintained by the Company or its subsidiaries or affiliated companies in accordance with the terms
of such policy, (e) any rights or claims under any employee benefit or compensation plan or program in which I participate or participated
(or was eligible to participate), (f) any rights or claims to unemployment compensation, and (g) reimbursement for business expenses
which are consistent with the Company's reimbursement policy. I hereby represent and warrant that, other than the Excluded Claims,
I am not aware of any claims I have or might have against any of the Released Parties that are not included in the Released
Claims.


 




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I expressly waive
and relinquish any and all rights and benefits under any applicable law or statute providing, in substance, that a general release
does not extend to claims which a party does not know or suspect to exist in her or her favor at the time of executing the release,
which if known by him or her would have materially affected the terms of such release.


 


I acknowledge that,
among other rights, I am waiving and releasing any rights I may have under ADEA, that this Release and Waiver is knowing and voluntary,
and that the consideration given for this Release and Waiver is in addition to anything of value to which I was already entitled
as an executive of the Company. If I am 40 years of age or older upon execution of this Release and Waiver, I further acknowledge
that I have been advised, as required by the Older Workers Benefit Protection Act, that: (a) the release and waiver granted herein
does not relate to claims under the ADEA which may arise after this Release and Waiver is executed; (b) I should consult with an
attorney prior to executing this Release and Waiver; and (c) I have twenty-one (21) days from the date of termination of my employment
with the Company in which to consider this Release and Waiver (although I may choose voluntarily to execute this Release and Waiver
earlier); (d) I have seven (7) days following the execution of this Release and Waiver to revoke my consent to this Release and
Waiver; and (e) this Release and Waiver shall not be effective until the seven (7) day revocation period has expired without my
having previously revoked this Release and Waiver.


 


I acknowledge my
continuing obligations under my Proprietary Information and Inventions Agreement. Pursuant to the Proprietary Information and Inventions
Agreement I understand that among other things, I must not use or disclose any confidential or proprietary information of the Company
and I must immediately return all Company property and documents (including all embodiments of proprietary information) and all
copies thereof in my possession or control. I understand and agree that my right to the severance pay I am receiving in exchange
for my agreement to the terms of this Release and Waiver is contingent upon my continued compliance with my Proprietary Information
and Inventions Agreement.


 


This Release and
Waiver constitutes the complete, final and exclusive embodiment of the entire agreement between the Company and me with regard
to the subject matter hereof. I am not relying on any promise or representation by the Company that is not expressly stated herein.
This Release and Waiver may only be modified by a writing signed by both me and a duly authorized Executive of the Company.


 


	Date:	 	 	By:	 


 




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