EX-10.1



 Exhibit 10.1 

EMPLOYMENT AGREEMENT 

This Employment Agreement (the “Agreement”), is effective as of June 10, 2014 (the “Effective Date”), and executed
June 4, 2014, between Ampio Pharmaceuticals, Inc., a Delaware corporation headquartered at 5445 DTC Parkway, Suite 925, Greenwood Village, CO 80111 USA, hereinafter referred to as the “Company”, and Gregory A. Gould
(“Employee”). 
 RECITALS 

WHEREAS, the Company is a duly organized Delaware corporation, with its principal place of business within the State of Colorado, and
is in the business of developing and marketing pharmaceutical products; and 
 WHEREAS, the Company desires assurance of the
continued association and services of the Employee in order to continue to retain the Employee’s experience, skills, abilities, background and knowledge, and is willing to continue to engage the Employee’s services on the terms and
conditions set forth in this Agreement; and 
 WHEREAS, Employee desires to be in the continued employ of the Company, and is
willing to accept such continued employment on the terms and conditions set forth in this Agreement. 
 NOW, THEREFORE,
the parties hereto agree to the terms and conditions of this Agreement as follows: 
 1. Employment for Term. The
Company hereby agrees to employ Employee and Employee hereby accepts such employment with the Company for the period of 36 months beginning on the Effective Date. The term of this Agreement (the “Term”) shall continue until the termination
of Employee’s employment in accordance with the provisions of this Agreement. The termination of Employee’s employment under this Agreement shall end the Term, but shall not terminate Employee’s or the Company’s other obligations
that are intended to survive the termination of this Agreement (including without limitation, the payments under Section 7 and 8 and Employee’s obligations under Section 9). 

2. Position and Duties. During the Term, Employee shall serve as Chief Financial Officer of the Company, and perform such
duties as are consistent with this position. The Employee shall report to the Chief Executive Officer of the Company. During the Term, Employee shall also hold such additional positions and titles as the Chief Executive Officer or the Board of
Directors of the Company (the “Board”) may determine from time to time. During the Term, Employee shall devote his full business time to his duties as the Chief Financial Officer of the Company. Notwithstanding the foregoing, the Company
hereby acknowledges that it consents to Employee’s participation in those outside activities described on Exhibit A hereto. During the Term of this Agreement, Employee agrees not to acquire, assume or participate in, directly or
indirectly, any position, investment or interest known by the Employee to be adverse to the Company, its business or prospects, its financial position, or otherwise or in any company, person or entity that is, directly or indirectly, in competition
with the business of the Company or any of its affiliates. On termination of Employee’s employment, regardless of the reason for such termination, Employee shall immediately (and with contemporaneous effect) resign any directorships, offices or
other positions that Employee may hold in the Company or any affiliate, unless otherwise agreed in writing by the parties. 







 3. Compensation. 

(a) Base Salary. The Company shall pay Employee a base salary of $250,000 per annum, payable at least monthly on the Company’s
regular pay cycle for executive officers (the “Base Salary”). Except as specifically otherwise provided herein, the Base Salary may be increased only by recommendation of the Compensation Committee of the Board and ratified by the
Compensation Committee or a majority of the independent members of the Board. 
 (b) Annual Review. The Base Salary shall be reviewed
at the end of each calendar year (the first such review to occur at the end of calendar year 2014). 
 (c) Equity Compensation. In
connection with the execution of this Agreement, and subject to approval of the Company’s Compensation Committee, which may not occur until the Effective Date, the Company hereby agrees to grant initial equity compensation to Employee in the
aggregate amount of 300,000 options to purchase shares of Company Common Stock. These options shall vest in accordance with the terms and schedule set forth in Exhibit B hereto. Such vesting schedule will be accelerated, to the extent provided
in Section 8 of this Agreement. 
 (d) Other and Additional Compensation. Subsections (a) and (c) above
establish Employee’s compensation during the Term which shall not preclude the Board from awarding Employee a higher salary or any bonuses or stock options, restricted stock or other forms of additional equity awards in the discretion of the
Board during the Term at any time. The Employee shall be eligible for an annual discretionary bonus (hereinafter referred to as the “Bonus”) with a target of fifty percent (50%) of the Base Salary, subject to standard deductions and
withholdings. The actual Bonus will be determined in good faith by the Compensation Committee, and will be based upon the Employee’s individual achievement and Company performance objectives as set by the Board or the Compensation Committee
(the “Performance Milestones”) on an annual basis. The initial Performance Milestones for the remainder of 2014 are as set forth on Exhibit B. The Employee’s Bonus target will be reviewed annually and may be adjusted by the Board
or the Compensation Committee in its discretion, provided however, that the Bonus target may only be reduced upon Employee’s written consent. The Employee must be employed on the date the Bonus is awarded to be eligible for the Bonus, subject
to the termination provisions hereof Bonuses shall be paid during the calendar quarter following the calendar quarter for which such Bonus was earned when Performance Milestones are met during a calendar quarter. Fourth quarter Bonuses, Bonuses
calculated on the basis of partial Performance Milestone satisfaction and Bonuses based upon annual milestones shall be paid by March 15 of the following year. 

4. Employee Benefits. During the Term, Employee shall be entitled to participate at the same level as other senior executive officers
of the Company in any group insurance, hospitalization, medical, health and accident, disability, fringe benefit and tax-qualified retirement plans or programs of the Company now existing or hereafter established to the extent that he is eligible
under the general provisions thereof. For the term of this Agreement, 

  
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Employee shall be entitled to paid vacation at the rate of (4) weeks per annum. In accordance with Company policy, unused vacation earned in one year may not be carried over beyond
December 31st of the following year, but individual vacations shall not exceed 3 weeks in duration. 

5. Expenses. The Company shall reimburse Employee for actual, reasonable out-of-pocket expenses incurred by him in the performance of
his services for the Company upon the receipt of appropriate documentation of such expenses which shall be submitted in such form, and with such supporting documentation, as called for or required by Company policy. 

6. Termination. 
 (a)
General. The Term shall end immediately upon Employee’s death. Employee’s employment may also be terminated by the Company immediately upon notice with or without Cause or as a result of Employee’s Disability, or by Employee with
or without Good Reason (as such terms are defined below). 
 (b) Notice of Termination. Either party shall give written notice of
termination to the other party If the Employee terminates employment hereunder with or without Good Reason, Employee shall provide the Company with 30 days’ prior written notice of termination. Notwithstanding the foregoing, in the event that
the Employee gives a notice of termination to the Company, the Company may unilaterally accelerate the date of termination and such acceleration shall not result in a termination by the Company for purposes of this Agreement. 

(c) Notification of New Employer. In the event that Employee leaves the employ of the Company, Employee grants consent to notification
by the Company to Employee’s new employer about his rights and obligations under this Agreement and the PIA (hereinafter defined). 

7. Severance Benefits. 

(a) Cause Defined. “Cause” means (i) willful malfeasance or willful misconduct by Employee in connection with his
employment; (ii) Employee’s gross negligence in performing any of his duties under this Agreement; (iii) Employee’s conviction of, or entry of a plea of guilty to, or entry of a plea of nolo contendre with respect to, any
crime other than a traffic violation; or an infraction which is a misdemeanor (iv) Employee’s willful and deliberate violation of a Company policy, (v) Employee’s unintended but material breach of any written policy applicable to
all employees adopted by the Company which, to the extent curable, is not cured to the reasonable satisfaction of the Board of Directors within thirty (30) business days after notice thereof; (vi) the Employee’s unauthorized use or
disclosure of any proprietary information or trade secrets of the Company or any other party as to which the Employee owes an obligation of nondisclosure as a result of the Employee’s relationship with the Company, (vii) the
Employee’s willful and deliberate breach of his obligations under this Agreement, or (viii) any other material breach by Employee of any of his obligations in this Agreement which, to the extent curable, is not cured to the reasonable
satisfaction of the Board of Directors within thirty (30) business days after notice thereof. 

  
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 (b) Disability Defined. “Disability” shall mean (i) Employee’s
incapacity due to a physical or mental condition and, if reasonable accommodation is required by law, after any reasonable accommodation, that results in Employee being substantially unable to perform his duties hereunder for six consecutive months
(or for six months out of any nine month period) or (ii) a qualified independent physician mutually acceptable to the Company and Employee determines that Employee is incapacitated due to a physical or mental condition and, if reasonable
accommodation is required by law, after any reasonable accommodation so as to be unable to regularly perform the duties of his position and such condition is expected to be of a permanent or near-permanent duration. Until such time as Employee is
terminated for Disability under this paragraph (b), Employee shall continue to receive his Base Salary hereunder, provided that if the Company provides Employee with disability insurance coverage, payments of Employee’s Base Salary shall
be reduced by the amount of any disability insurance payments received by Employee due to such coverage. The Company shall give Employee written notice of termination due to Disability, which shall take effect sixty (60) days after the date it
is sent to Employee unless Employee shall have returned to the performance of his duties hereunder during such sixty (60) day period (whereupon such notice shall become void). 

(c) Good Reason Defined. For purposes of this Agreement, “Good Reason” shall mean, without Employee’s written consent:
(i) there is a material reduction of the level of Employee’s compensation (excluding any bonuses) (except where there is a general reduction applicable to the management team generally, provided, however, that in no case may the Base
Salary be reduced below the amount stated in Section 3(a)), (ii) there is a material reduction in Employee’s overall responsibilities or authority, or scope of duties (it being understood that the occurrence of a Change in Control
shall not, by itself, necessarily constitute a reduction in Employee’s responsibilities or authority); or (iii) there is a material change in the principal geographic location at which Employee must perform his services (it being
understood that the relocation of Employee to a facility or a location within forty (40) miles of the State Capitol Building in Denver, Colorado shall not be deemed material for purposes of this Agreement). No event shall be deemed to be
“Good Reason” if the Company has cured the event (if susceptible to cure) within 30 days of receipt of written notice from Employee specifying the event or events which, absent cure, would constitute “Good Reason.” Notice of Good
Reason must be provided by Employee to the Company within 30 business days following the initial existence or event of Good Reason. 

(d) Accrued Compensation Defined. Accrued Compensation shall mean an amount, which shall include all amounts earned or accrued by
Employee through the date of termination of this Agreement but not paid as of such date, including (i) Base Salary, (ii) reimbursement for business expenses incurred by the Employee on behalf of the Company, pursuant to the Company’s
expense reimbursement policy in effect at such time, (iii) any expense allowance pursuant to Company policy, (iv) accrued but unused vacation pay per Company policy, and (v) bonuses and incentive compensation earned and awarded prior
to the date of termination. Accrued Compensation shall be paid on the first regular pay date after the date of termination (or earlier, if required by applicable law). 

  
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 (e) Termination. 

(i) Cause; Without Good Reason; Death. If the Company ends the Term for Cause, if Employee resigns as an employee of the Company for
reasons other than an event of Good Reason, or the Employee dies, then the Company shall pay to Employee the Accrued Compensation but shall have no obligation to pay Employee any amount, whether for salary, benefits, bonuses, or other compensation
or expense reimbursements of any kind, accruing after the end of the Term, and such rights shall, except as otherwise required by law or pursuant to the applicable award agreement or plan, be forfeited immediately upon the end of the Term. For the
sake of clarity, any stock options, restricted stock or other equity compensation shall, to the extent vested on the date of resignation without Good Reason, the date the Company ends the Term for Cause, or the date of Employee s death, remain
outstanding and exercisable to the extent provided in the applicable award agreement or plan, by the Employee or his personal representative or executor. 

(ii) Without Cause; Good Reason. In the event that the Company terminates Employee’s employment hereunder without Cause, Employee
terminates his employment with Good Reason, he shall be entitled to the Accrued Compensation and, subject to Section 21 and 22 below, 

(A) A lump sum payment equal to 2 times his Base Salary in effect at the date of termination, less applicable withholding will
be paid to Employee within 60 days of the date of termination of employment. 
 (B) Continued participation (via state or
federal insurance continuation laws such as COBRA, to the extent available) in the health and welfare plans (or comparable plans, if continued participation in the Company’s plans is not available) provided by the Company to Employee at the
time of termination for a period of two years from the date of termination or, if earlier, until he is eligible for comparable coverage with a subsequent employer. The Company agrees to reimburse the payments Employee makes for such coverage,
whether via continuation or separate comparable policy. Premium reimbursements shall be made by the Company to Employee consistent with the Company’s normal expense reimbursement policy, provided that Employee submits documentation to the
Company substantiating his payments for insurance coverage. Employee shall give the Company prompt notice of his eligibility for comparable coverage. 

(C) All vested stock options shall remain exercisable from the date of termination until the expiration date of the applicable
award. So long as the Section 8 below does not apply, then all options which are unvested at the date of termination Without Cause or for Good Reason shall be accelerated as of the date of termination such that the number of such option shares
equal to 1/36th the number of such option shares multiplied by the number of full months of Employee’s employment hereunder shall be deemed vested and immediately exercisable by the Employee.
Any unvested options over and above the foregoing shall be cancelled and of no further force or effect, and shall not be exercisable by the Employee. 

  
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 (D) Any severance payments and/or other separation benefits contemplated by this
Agreement are conditional on Employee: (i) continuing to comply with the terms of this Agreement and the PIA (as defined herein); (ii) delivering prior to or contemporaneously with any such severance payments, and not revoking, (x) a
customary general release of claims relating to Employee’s employment and/or this Agreement against the Company or its successor, its subsidiaries and their respective directors, officers and stockholders and (y) a customary affirmation of
Employee’s continuing obligations hereunder and under the PIA. 
 Unless otherwise required by law, no severance payments and/or benefits under this
Agreement will be paid and/or provided until after the expiration of any relevant revocation period. 
 8. Change in Control
Payments. The provisions of this paragraph 8 set forth the terms of an agreement reached between Employee and the Company regarding Employee’s rights and obligations upon the occurrence of a “Change in Control” (as
hereinafter defined) of the Company during the Term. These provisions are intended to assure and encourage in advance Employee’s continued attention and dedication to his assigned duties and his objectivity during the pendency and after the
occurrence of any such Change in Control. The following provisions shall apply in the event of a Change in Control, in addition to any payment or benefit that may be required pursuant to Section 7. 

(a) Equity. Upon the occurrence of a Change in Control, all stock options, restricted stock and other stock-based grants to Employee by
the Company or that may be granted in the future shall, irrespective of any provisions of his award agreements, immediately and irrevocably vest and become exercisable and any restrictions thereon shall lapse. All stock options shall terminate
immediately upon a Change in Control 
 (b) Definitions. For purposes of this paragraph 8, the following terms shall have the
following meanings: 
 “Change in Control” shall mean any of the following: 

(1) the acquisition by any individual, entity, or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (the
“Acquiring Person”), other than the Company, or any of its Subsidiaries, of beneficial ownership (within the meaning of Rule 13d-3- promulgated under the Exchange Act) of 50% or more of the combined voting power or economic interests
of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (excluding any issuance of securities by the Company in a transaction or series of transactions made principally for bona fide equity
financing purposes); or 
 (2) the acquisition of the Company by another entity by means of any transaction or series of related
transactions to which the Company is party (including, without limitation, any stock acquisition, reorganization, merger or consolidation but excluding any issuance of securities by the Company in a transaction or series of transactions made
principally for bona fide equity financing purposes), other than a transaction or series of related transactions in which the holders of the voting securities of the Company outstanding immediately prior to such transaction or series of related
transactions retain, immediately after such transaction or 

  
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series of related transactions, as a result of shares in the Company held by such holders prior to such transaction or series of related transactions, at least a majority of the total voting
power represented by the outstanding voting securities of the Company or such other surviving or resulting entity (or if the Company or such other surviving or resulting entity is a wholly-owned subsidiary immediately following such acquisition, its
parent); or 
 (3) the sale or other disposition of all or substantially all of the assets of the Company in one transaction or series of
related transactions. 
 9. Proprietary Information and Inventions Agreement. As a condition of Employee’s employment with the
Company, Employee agrees to sign the Company’s standard form of Proprietary Information and Inventions Agreement (“PIA”). 

10. Successors and Assigns. 

(a) Employee. This Agreement is a personal contract, and the rights and interests that the Agreement accords to Employee may not be
sold, transferred, assigned, pledged, encumbered, or hypothecated by him. All rights and benefits of Employee shall be for the sole personal benefit of Employee, and no other person shall acquire any right, title or interest under this Agreement by
reason of any sale, assignment, transfer, claim or judgment or bankruptcy proceedings against Employee. Except as so provided, this Agreement shall inure to the benefit of and be binding upon Employee and his personal representatives, distributees
and legatees. 
 (b) The Company. This Agreement shall be binding upon the Company and inure to the benefit of the Company and of its
successors and assigns, including (but not limited to) any Company that may acquire all or substantially all of the Company’s assets or business or into or with which the Company may be consolidated or merged. 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. 
 11. Entire
Agreement. This Agreement (together with the equity award agreements referred to herein) represents the entire agreement between the parties concerning Employee’s employment with the Company and supersedes all prior negotiations,
discussions, understanding and agreements, whether written or oral, between Employee and the Company relating to the subject matter of this Agreement. 

12. Amendment or Modification, Waiver. No provision of this Agreement may be amended or waived unless such amendment or waiver is
agreed to in writing signed by Employee and by a duly authorized officer of the Company. No waiver by any party to this Agreement or any breach by another party of any condition or provision of this Agreement to be performed by such other party
shall be deemed a waiver of a similar or dissimilar condition or provision at the same time, any prior time or any subsequent time. 

  
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 13. Notices. Any notice to be given under this Agreement shall be in writing and delivered
personally or sent by overnight courier or registered or certified mail, postage prepaid, return receipt requested, addressed to the party concerned at the address indicated below, or to such other address of which such party subsequently may give
notice in writing. 
  

					
	If to Employee:	 		  	To the address specified in the payroll records of the Company.
			
	If to the Company:	 		  	 Ampio Pharmaceuticals, Inc.
 5445 DTC
Parkway, Suite 925
 Greenwood Village, CO 80111 USA


 Any notice delivered personally or by overnight courier shall be deemed given on the date delivered and any notice sent by
registered or certified mail, postage prepaid, return receipt requested, shall be deemed given on the date mailed. 
 14.
Severability. If any provision of this Agreement or the application of any such provision to any party or circumstances shall be determined by any court of competent jurisdiction or arbitrator acting pursuant to Section 19 below to be
invalid and unenforceable to any extent, the remainder of this Agreement or the application of such provision to such person or circumstances other than those to which it is so determined to be invalid and unenforceable shall not be affected, and
each provision of this Agreement shall be validated and shall be enforced to the fullest extent permitted by law. If for any reason any provision of this Agreement containing restrictions is held to cover an area or to be for a length of time that
is unreasonable or in any other way is construed to be too broad or to any extent invalid, such provision shall not be determined to be entirely null, void and of no effect; instead, it is the intention and desire of both the Company and Employee
that, to the extent that the provision is or would be valid or enforceable under applicable law, any court of competent jurisdiction or arbitrator acting pursuant to Section 19 below shall construe and interpret or reform this Agreement to
provide for a restriction having the maximum enforceable area, time period and such other constraints or conditions (although not greater than those currently contained in this Agreement) as shall be valid and enforceable under the applicable law.

 15. Survivorship. The respective rights and obligations of the parties hereunder shall survive any termination of this Agreement
to the extent necessary to the intended preservation of such rights and obligations. 
 16. Headings. All descriptive headings of
sections and paragraphs in this Agreement are intended solely for convenience of reference, and no provision of this Agreement is to be construed by reference to the heading of any section or paragraph. 

17. Withholding Taxes. All salary, benefits, reimbursements and any other payments to Employee under this Agreement shall be subject to
all applicable payroll and withholding taxes and deductions required by any law, rule or regulation of any federal, state or local authority. 

18. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all
of which together constitute one and same instrument. The parties agree that facsimile signatures shall have the same force and effect as original signatures. 

  
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 19. Applicable Law; Arbitration. The validity, interpretation and enforcement of this
Agreement and any amendments or modifications hereto shall be governed by the laws of the State of Colorado, as applied to a contract executed within and to be performed in such State. The parties agree that any disputes shall be definitively
resolved by binding arbitration before the American Arbitration Association in Denver, Colorado in accordance with its rules of arbitration procedure then in effect. The parties consent to the jurisdiction to the federal courts of the District of
Colorado or, if there shall be no jurisdiction, to the state courts located in Arapahoe County, Colorado, to enforce any arbitration award rendered with respect thereto. Each party shall choose one arbitrator and the two arbitrators shall choose a
third arbitrator. All costs and fees related to such arbitration (and judicial enforcement proceedings, if any) shall be borne by the Company unless Employee’s claim is deemed to be frivolous by the arbitrator(s) or judge. 

20. Legal Fees. The Company shall pay the reasonable expenses of Employee’s counsel in negotiating this Agreement. 

21. Section 409A. Notwithstanding anything to the contrary in this Agreement, if Employee is a “specified employee” within
the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and the final regulations and any guidance promulgated thereunder (“Section 409A”) at the time of Employee’s termination
(other than due to death), and the severance payable to Employee, if any, pursuant to this Agreement, when considered together with any other severance payments or separation benefits which may be considered deferred compensation under
Section 409A (together, the “Deferred Compensation Separation Benefits”) will not and could not under any circumstances, regardless of when such termination occurs, be paid in full by March 15 of the year following
Employee’s termination, then only that portion of the Deferred Compensation Separation Benefits which do not exceed the Section 409A Limit (as defined below) may be made within the first six (6) months following Employee’s termination
of employment in accordance with the payment schedule applicable to each payment or benefit. For these purposes, each severance payment is hereby designated as a separate payment and will not collectively be treated as a single payment. Any portion
of the Deferred Compensation Separation Benefits in excess of the Section 409A Limit shall accrue and, to the extent such portion of the Deferred Compensation Separation Benefits would otherwise have been payable within the first six (6)
months following Employee’s termination of employment, will become payable on the first payroll date that occurs on or after the date six (6) months and one (1) day following the date of Employee’s termination. All subsequent
Deferred Compensation Separation Benefits, if any, will be payable in accordance with the payment schedule applicable to each payment or benefit Notwithstanding anything herein to the contrary, if Employee dies following his termination but prior to
the six (6) month anniversary of his termination, then any payments delayed in accordance with this paragraph will be payable in a lump sum as soon as administratively practicable after the date of Employee’s death and all other Deferred
Compensation Separation Benefits will be payable in accordance with the payment schedule applicable to each payment or benefit. The foregoing provision is intended to comply with the requirements of Section 409A so that none of the severance
payments and benefits to be provided hereunder will be subject to the additional tax imposed under Section 409A, and any ambiguities herein will be interpreted to so comply. The Company and Employee agree to work 

  
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together in good faith to consider amendments to this Agreement and to take such reasonable actions which are necessary, appropriate or desirable to avoid imposition of any additional tax or
income recognition prior to actual payment to Employee under Section 409A. For purposes of this Agreement, “Section 409A Limit” will mean the lesser of two (2) times: (A) Employee’s annualized compensation based upon the
annual rate of pay paid to Employee during the Company’s taxable year preceding the Company’s taxable year of Employee’s termination of employment as determined under Treasury Regulation 1.409A-1(b)(9)(iii)(A)(1) and any Internal
Revenue Service guidance issued with respect thereto: or (B) the maximum amount that may be taken into account under a qualified plan pursuant to Section 401(a)(17) of the Code for the year in which Employee’s employment is terminated. The
payment of the severance payments contemplated by this Agreement is subject to the above-referenced release becoming irrevocable within 60 days of the date of termination of employment. If such 60-day period begins in one calendar year and ends in a
second calendar year, the severance payments shall be paid in the second calendar year by the last day of the 60-day period. 
 22.
Application of Internal Revenue Code Section 280G. If any payment or benefit Employee would receive pursuant to a Change in Control from the Company or otherwise (“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 such 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 being subject to the Excise Tax or (y) the largest portion, up to and including the total, of the Payment,
whichever amount, 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 Employee’s 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 payments or benefits constituting “parachute payments” is necessary so that the Payment equals the
Reduced Amount, reduction shall occur in the manner that results in the greatest economic benefit for Employee. If more than one method of reduction will result in the same economic benefit, the items so reduced will be reduced pro rata. 

In the event it is subsequently determined by the Internal Revenue Service that some portion of the Reduced Amount as determined pursuant to
clause (x) in the preceding paragraph is subject to the Excise Tax, Employee agrees to promptly return to the Company a sufficient amount of the Payment so that no portion of the Reduced Amount is subject to the Excise Tax. For the avoidance of
doubt, if the Reduced Amount is determined pursuant to clause (y) in the preceding paragraph, Employee will have no obligation to return any portion of the Payment pursuant to the preceding sentence. 

Unless Employee and the Company agree on an alternative accounting 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 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, the Company shall appoint a nationally recognized accounting firm to make the determinations required hereunder. The Company shall bear all expenses with respect to the determinations by such accounting firm required to be
made hereunder. 

  
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 The Company shall use commercially reasonable efforts to cause the accounting firm engaged to
make the determinations hereunder to provide its calculations, together with detailed supporting documentation, to the Employee and the Company within fifteen (15) calendar days after the date on which Employee’s right to a Payment is
triggered (if requested at that time by the Employee or the Company) or such other time as requested by Employee or the Company. 
 23.
Indemnification. As a condition to the effectiveness of this Agreement, the Company and Employee shall enter into a mutually acceptable indemnification agreement. 

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

									
	AMPIO PHARMACEUTICALS, INC.	 		 	EMPLOYEE
				
	By:	 	 /s/ Philip H. Coelho
	 		 	 /s/ Gregory A. Gould

	Name:	 	PHILIP H. COELHO	 		 	Name:	 	Gregory A. Gould
		 	 Chairman, Compensation Committee
 Board of
Directors
	 		 		 	








 EXHIBIT A 

Outside Activities 
  

	1.	Serve on the Board of Directors of no more than one private or public company the business of which is not competitive with that of the Company. Employee shall notify the Company of the identity of the company.


 Note: No outside activity may interfere with Employee’s best efforts in meeting the responsibilities of Chief Financial Officer of the
Company, and may not require Employee to devote more than 10 hours per month to these outside activities. 







 EXHIBIT B 

Terms of Compensation 

Management equity grant: 
  

	 	•	 	300,000 total options to purchase shares of the Company’s common stock. The strike price for all options will be the last sale price of the Company’s common stock as reported on Nasdaq.com on the Effective
Date. 

  

	 	•	 	All options fully vest upon change in control, death, disability, termination without cause, termination for good reason 

  

	 	•	 	100,000 options are fully vested on the day this agreement becomes effective. 

  

	 	•	 	100,000 options vest 365 days thereafter 

  

	 	•	 	100,000 options vest 730 days thereafter 

 Specific goals and responsibilities that will be considered by
the CEO and the Board of Directors in the determination of Employees annual bonuses. 
 Finance 

 

	 	•	 	In consultation with the Chairman of the Audit Committee and our Accounting firm, choose, purchase, install and manage a new labor efficient accounting system suitable for the comprehensive management and tracking of
our expanded operations, including the manufacturing of Ampion and the financial relationships with Luoxis and Vyrix. 

  

	 	•	 	Develop and maintain a budget that tracks and controls all discretionary expenses, including legal and accounting and the monthly manufacturing costs of the key products of Ampio, Luoxis and Vyrix. 


 

	 	•	 	Identify all items that are critical to manufacturing any of the products of Ampio, Luoxis and Vyrix and negotiate back-up supply sources for every critical item 


 

	 	•	 	Accomplish the accurate reporting of financial statements and the timely filing of all required SEC reports, 


Managing Relationships with Institutional Investors and the Public 
  

	 	•	 	Prepare and execute an effective plan to persuade key Institutional investors to take significant positions in, and become long term holders of, Ampio stock. Set quarterly goals for your performance and circulate them
to the CEO and BOD at the start of each quarter. 

  

	 	•	 	Develop and continually refine a solid and defensible model of Ampio’s projected financial performance (EPS, EBITDA, etc.) with which you will engage the financial analysts of Institutional Investors, potential
licensees or acquirers and the CEO and the BOD. 

  

	 	•	 	Develop and manage a cost effective public relations program with measureable goals that will allow early termination if not effective. 


Other 
  

	 	•	 	Any other goals that the CEO or the BOD deems necessary to meet the operating goals of the company