Document:

Employment Agreement dated March 14, 2001

 Exhibit 10.11 
 [Google Letterhead] 
  
 March 14, 2001 
  
 Mr. Eric Schmidt 
 [Address] 
 [Address] 
  
 Dear Eric: 
  
 I am pleased to offer you employment with Google, Inc. (the “Company”) effective as of March 15, 2001 (the
“Effective Date”). We understand and agree that initially you will have to complete your duties as Chief Executive Officer of Novell. Thus, initially, you will serve as Chairman of the Board and you will perform those operational duties
that you are able to perform until your employment with Novell terminates. As soon as your employment with Novell terminates and you are available to work on a full-time basis but in no event later than 120 days after the Effective Date, you will be
made Chief Executive Officer of the Company. As Chief Executive Officer, you shall be reporting to the Board and have the duties and responsibilities customarily associated with such position. In addition, you shall perform such other duties as the
Board, or its authorized representative, may from time to time require, consistent with the general level and type of duties and responsibilities customarily associated with such position. Once you become Chief Executive Officer, you will still
continue to serve as Chairman of the Board. Once you are made Chief Executive Officer, you shall devote your full business efforts and time to the Company. Further, after such time, you agree not to actively engage in any other employment,
occupation or consulting activity for any direct or indirect remuneration without the prior approval of the Board, which shall not be unreasonably withheld. 
  
 You should be aware that your employment with the Company constitutes “at-will” employment. This means that your employment relationship with
the Company may be terminated at any time with or without notice, for any or no reason, with or without good cause or for any or no cause, at either party’s option. You understand and agree that neither your job performance nor promotions,
commendations, bonuses or the like from the Company give rise to or in any way serve as the basis for modification, amendment, or extension, by implication or otherwise, of your employment with the Company. 
  
 While serving as Chairman of the Board, but prior to becoming Chief Executive
Officer, you will be paid a salary of five thousand dollars ($5,000) a month. Once you become Chief Executive Officer, you shall receive a base salary at the annualized rate of two hundred and fifty thousand dollars ($250,000). Such salary shall be
paid periodically in accordance with normal Company payroll practices and be subject to the usual, required withholding. The Company shall review your base salary at least annually, and, if appropriate, increase it. Your annual salary of $250,000,
together with any increases thereto, shall be referred to herein as your “Base Salary.” 

			
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 In addition to the Base Salary, you will be eligible to receive a performance bonus during each year
of employment with the Company of up to sixty percent (60%) of the Base Salary, less applicable withholding. The award of each year’s performance bonus, if any, shall be based upon performance criteria to be determined by the Board or the
compensation committee after consultation with you within sixty (60) days of the Effective Date and each anniversary thereof. The Company shall pay any performance bonus payable hereunder within sixty (60) days of the end of each bonus period. The
full target performance bonus that may be awarded pursuant to this paragraph, as it may be increased from time to time in the discretion of the Board, shall be referred to herein as the “Target Performance Bonus.” 
  
 During your employment, you shall be eligible to participate in the employee
benefit plans currently and hereafter maintained by the Company of general applicability to other senior executives of the Company, including, without limitation, the Company’s group medical, dental, vision, disability, life insurance, and
flexible-spending account plans and vacation policies. The Company reserves the right to cancel or change the benefit plans and programs it offers to its employees at any time. 
  
 The Company also agrees to directly pay the reasonable legal fees associated with negotiating and drafting this agreement
and the other documents referred to herein, upon receiving invoices for such services. 
  
 We will recommend to the Board that, at a meeting to be held on the Effective Date, you be granted a stock option to purchase 3,582,927 shares of the Company’s Common Stock (which number represents 7% of the
Company’s fully diluted equity) on the date of grant at an exercise price equal to the then current fair market value as determined by the Board at that meeting (with such fair market value currently anticipated to be $1.20 per share) (the
“Option”). Subject to accelerated vesting provisions set forth herein, the Option shall vest as to 25% of the shares subject to the Option one year after the date of grant, and as to 1/48th of the shares subject to the Option monthly thereafter, so that all of the shares subject to the Option shall be fully vested and exercisable four (4) years
from the date of grant, subject to your continued employment with the Company on the relevant vesting dates. The Option may be exercised prior to vesting, subject to you entering into a standard form of restricted stock purchase agreement with the
Company. The Company will allow you to exercise the Option with a full recourse promissory note that will be secured by the shares underlying the Option. The promissory note will generally be due four (4) years after the date of the note and will
bear interest at a market rate sufficient to avoid the Company incurring any financial accounting compensation expense with respect to the Option. If you elect to exercise the Option as to unvested shares, then the purchased shares will be subject
to repurchase by the Company at the price you paid for such shares if your employment terminates before such shares have vested. In all other respects, the Option shall be subject to the terms, definitions and provisions of the Company’s Stock
Plan (the “Option Plan”) and the stock option agreement by and between you and the Company, including, if applicable, the corresponding restricted stock purchase agreement (the “Option Agreement”), both of which 

			
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documents are incorporated herein by reference. In the case of any conflict between the terms of the Plan or the Option Agreement and the terms of this
letter, the terms of this letter will govern. 
  
 You also agree
to purchase and the Company agrees to sell to you 106,723 shares of the Company’s Series C Preferred Stock at a purchase price of $9.37 per share on the same terms and conditions as the other investors in the Company’s Series C Preferred
Stock Financing. 
  
 The Company will pay or reimburse you for
reasonable travel, entertainment or other expenses incurred by you in the furtherance of or in connection with the performance of your duties hereunder in accordance with the Company’s established policies. 
  
 If your employment with the Company is terminated by the Company
“Without Cause” (as defined herein), and you sign and do not revoke the release of claims with the Company attached hereto as Exhibit A, then, subject to the conditions in this letter, you shall be entitled to receive the following
severance benefits: 
  

	 	(a)	Continuing payments of severance pay (less applicable withholding taxes) at a rate equal to your Base Salary, as then in effect, to be paid periodically in accordance with the
Company’s normal payroll policies for a period of twelve (12) months from the date of such termination; 

  

	 	(b)	One hundred percent (100%) of the greater of your Target Performance Bonus for the year of termination or the Target Performance Bonus actually earned for the year prior to the year
of termination, if any; this amount will be paid within thirty (30) days of the termination date; 

  

	 	(c)	The same level of health (i.e. medical, vision and dental) coverage and benefits as in effect for you on the day immediately preceding the day of termination of employment;
provided, however that (A) you constitute a qualified beneficiary, as defined in Section 4980B(g)(1) of the Internal Revenue Code of 1986, as amended; and (B) you elect continuation coverage pursuant to the Consolidated Omnibus Budget Reconciliation
Act of 1985, as amended (“COBRA”), within the time period prescribed pursuant to COBRA. The Company shall continue to provide you with such health coverage until the earlier of (i) the date you are no longer eligible to receive
continuation coverage pursuant to COBRA, or (ii) twelve (12) months from the termination date; and 

  

	 	(d)	 The vesting of the Option will accelerate on the date of termination as to that number of shares that would have become vested if you had remained employed by the
Company until the date six (6) months following the termination date. Notwithstanding the foregoing, if you resign your 

			
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employment for “Good Reason” (as defined herein) or the Company terminates your employment “Without Cause” (as defined herein) within
twelve (12) months of the Effective Date, the vesting of the Option will also accelerate as to 1/48th of the shares
subject to the Option per each full month of your employment with the Company prior to termination plus six (6) months. 

  
 Notwithstanding the foregoing, in the event that you resign your employment for “Good Reason” (as defined herein) or the Company terminates your
employment “Without Cause” (as defined herein), either of which occur within twelve (12) months after a “Change of Control” (as defined herein), then, instead of the vesting acceleration described in (d) above, the vesting and
exercisability of the Option will accelerate on the date on which your employment terminates as to that number of shares which would have become vested and exercisable if you had remained employed until the date twelve (12) months following the date
of termination. In addition, you will receive the severance payments itemized in (a), (b) and (c) above. 
  
 A termination for “Cause” will be a termination of your employment based on a determination by the Board that you committed any of the following
acts: (i) an act of material dishonesty made by you in connection with your responsibilities as an employee or director, (ii) your conviction of, or plea of nolo contendere to, a felony, or (iii) your gross misconduct. A termination of your
employment by the Company for any other reason, except due to disability, or in any other circumstances will be a termination “Without Cause.” 
  
 For this purpose, “Change of Control” of the Company is defined as: (i) any “person” (as such term is used in Sections 13(d) and 14(d)
of the Securities Exchange Act of 1934, as amended) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of the Company representing 50% or more of the total voting power
represented by the Company’s then outstanding voting securities; or (ii) change in the composition of the Board of Directors of the Company occurring within a two-year period, as a result of which fewer than a majority of the directors are
Incumbent Directors. “Incumbent Directors” shall mean directors who either (A) are directors of the Company as of the date hereof, or (B) are elected, or nominated for election, to the Board of Directors of the Company with the affirmative
votes of at least a majority of the Incumbent Directors at the time of such election or nomination (but shall not include an individual whose election or nomination is in connection with an actual or threatened proxy contest relating to the election
of directors to the Company); or (iii) the date of the consummation of a merger or consolidation of the Company with any other corporation that has been approved by the stockholders of the Company, other than a merger or consolidation which would
result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than fifty percent (50%) of the
total voting power represented by the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation, or the stockholders 

			
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of the Company approve a plan of complete liquidation of the Company; or (iv) the date of the consummation of the sale or disposition by the Company of all
or substantially all the Company’s assets. 
  
 A resignation
for “Good Reason” shall mean a resignation of your employment within sixty (60) days of the occurrence of any of the following events: (i) without your written consent, a material reduction of your duties, position or responsibilities;
provided, however, if there is a Change of Control and the Company continues to operate as a subsidiary or separate division of the acquiring corporation and you are made the Chief Executive Officer of that subsidiary or division but are not made
the Chief Executive Officer of the acquiring corporation, this will not by itself constitute “Good Reason” for your resignation, or (ii) without your written consent, a significant reduction by the Company in your Base Salary or Target
Performance Bonus as in effect immediately prior to such reduction; or (iii) without your written consent, a requirement that you relocate your office to a location more than fifty (50) miles from its then-current location. A resignation of your
employment for any other reason or in any other circumstances will be a resignation “Without Good Reason.” 
  
 If your employment with the Company terminates (i) due to a resignation “Without Good Reason”, (ii) for Cause by the Company or (iii) due to
your death or disability, then you shall only be eligible for severance benefits, if any, in accordance with the Company’s established policies as then in effect; provided, however, that if your employment terminates due to your death, the
vesting and exercisability of the Option will accelerate on the date of death as to that number of shares which would have become vested and exercisable if you had remained employed until the date twelve (12) months following the date of death.

  
 You agree to maintain the confidentiality of all confidential
and proprietary information of the Company and agree, as a condition of your employment, to enter into a Confidential Information and Invention Assignment Agreement in the standard form utilized by the Company, a copy of which is enclosed.

  
 Except as provided below, you agree that any dispute or
controversy arising out of, relating to, or in connection with this letter, or the interpretation, validity, construction, performance, breach, or termination thereof shall be settled by arbitration, to the extent permitted by law, to be held in
Santa Clara County, California in accordance with the National Rules for the Resolution of Employment Disputes then in effect of the American Arbitration Association (the “Rules”). The arbitrator may grant injunctions or other relief in
such dispute or controversy. The decision of the arbitrator shall be final, conclusive and binding on the parties to the arbitration. Judgment may be entered on the arbitrator’s decision in any court having jurisdiction. 
  
 The arbitrator shall apply California law to the merits of any dispute or
claim, without reference to rules of conflict of law. You hereby expressly consent to the personal jurisdiction of 

			
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the state and federal courts located in California for any action or proceeding arising from or relating to this offer letter and/or relating to any
arbitration in which the parties are participants. 
  
 YOU HAVE
READ AND UNDERSTAND THESE PROVISIONS, WHICH DISCUSS ARBITRATION. YOU UNDERSTAND THAT BY SIGNING THIS OFFER LETTER, YOU AGREE TO SUBMIT ANY FUTURE CLAIMS ARISING OUT OF, RELATING TO, OR IN CONNECTION WITH THIS OFFER LETTER, OR THE INTERPRETATION,
VALIDITY, CONSTRUCTION, PERFORMANCE, BREACH, OR TERMINATION THEREOF TO BINDING ARBITRATION TO THE EXTENT PERMITTED BY LAW, AND THAT THIS ARBITRATION CLAUSE CONSTITUTES A WAIVER OF YOUR RIGHT TO A JURY TRIAL AND RELATES TO THE RESOLUTION OF ALL
DISPUTES RELATING TO ALL ASPECTS OF THE EMPLOYER/EXECUTIVE RELATIONSHIP, INCLUDING BUT NOT LIMITED TO, THE FOLLOWING CLAIMS: 
  
 (i) ANY AND ALL CLAIMS FOR WRONGFUL DISCHARGE OF EMPLOYMENT; BREACH OF CONTRACT, BOTH EXPRESS AND IMPLIED; BREACH OF THE COVENANT OF GOOD FAITH AND FAIR
DEALING, BOTH EXPRESS AND IMPLIED; NEGLIGENT OR INTENTIONAL INFLICTION OF EMOTIONAL DISTRESS; NEGLIGENT OR INTENTIONAL MISREPRESENTATION; NEGLIGENT OR INTENTIONAL INTERFERENCE WITH CONTRACT OR PROSPECTIVE ECONOMIC ADVANTAGE; AND DEFAMATION;

  
 (ii) ANY AND ALL CLAIMS FOR VIOLATION OF ANY FEDERAL STATE OR
MUNICIPAL STATUTE, INCLUDING, BUT NOT LIMITED TO, THE CIVIL RIGHTS ACT OF 1991, THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967, THE AMERICANS WITH DISABILITIES ACT OF 1990, THE FAIR LABOR STANDARDS ACT; 
  
 (iii) ANY AND ALL CLAIMS ARISING OUT OF ANY OTHER LAWS AND REGULATIONS
RELATING TO EMPLOYMENT OR EMPLOYMENT DISCRIMINATION. 
  
 Upon your
commencement of employment with the Company, you will be offered an indemnification agreement comparable in form and substance to indemnification agreements entered into by and between the Company and its executive officers. 
  
 This letter, the documents incorporated herein by reference and the
Confidential Information and Invention Assignment Agreement dated __________ represent the entire agreement and understanding between you and the Company concerning your employment relationship with the Company, and supersede in their
entirety any and all prior agreements and understandings concerning your employment relationship with the Company, whether written or oral. 

			
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 The terms of this letter may only be amended, canceled or discharged in writing signed by you and the
Company. This letter shall be governed by the internal substantive laws, but not the choice of law rules, of the State of California. 
  
 In the event that any provision hereof becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable, or void, this letter
shall continue in full force and effect without such provision. 
  
 You acknowledge that you have had the opportunity to discuss this matter with and obtain advice from your private attorney, have had sufficient time to, and have carefully read and fully understand all the provisions of this letter, and are
knowingly and voluntarily entering into this letter. 
  
 To
indicate your acceptance of the Company’s offer, please sign and date this letter in the space provided below and return it to me. A duplicate original is enclosed for your records. We look forward to working with you at Google, Inc.

  

							
	 GOOGLE, INC.
	 	 	  	 ERIC SCHMIDT

				
	 By:
	 	 /s/    Sergey Brin, Larry Page

	 	 	  	 /s/    Eric Schmidt

	 	 	 	 	 	  	 Signature

				
	 Name:
	 	 Sergey Brin, Larry Page

	 	 	  	 March 15, 2001

	 Title:
	 	 President, Ex. CEO

	 	 	  	 DateAgreement between Insmed and Ronald D. Gunn

 EXHIBIT 10.1 
  
 AGREEMENT 
  
 This Agreement dated as of May 11, 2004, is entered into by and between RONALD D. GUNN (“Employee”) and Insmed Incorporated, a Virginia
corporation (“Insmed”). 
  
 Employee and Insmed hereby
agree to the following terms and conditions: 
  
 1. Purpose of
Agreement. The purpose of this Agreement is to provide that, in the event of a “Change in Control,” Employee may become entitled to receive additional benefits in the event of his termination. It is believed that the existence of these
potential benefits will benefit Insmed by discouraging turnover and causing such employee to be more able to respond to the possibility of a Change in Control without being influenced by the potential effect of a Change in Control on his job
security. 
  
 2. Change in Control. As used in this
Agreement, “Change in Control” means an event or occurrence set forth in any one or more of subsections (a) through (d) below (including an event or occurrence that constitutes a Change in Control under one of such subsections but is
specifically exempted from another such subsection): 
  
 (a) the
acquisition by an individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”) of beneficial ownership of any capital stock
of Insmed if, after such acquisition, such Person beneficially owns (within the meaning of Rule 13d-3 promulgated under the Exchange Act) 40% or more of either (x) the then-outstanding shares of common stock of Insmed (the “Outstanding Company
Common Stock”) or (y) the combined voting power of the then-outstanding securities of Insmed entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that for purposes
of this subsection (a), the following acquisitions shall not constitute a Change in Control: (i) any acquisition directly from Insmed (excluding an acquisition pursuant to the exercise, conversion or exchange of any security exercisable for,
convertible into or exchangeable for common stock or voting securities of Insmed, unless the Person exercising, converting or exchanging such security acquired such security directly from Insmed or an underwriter or agent of Insmed), (ii) any
acquisition by Insmed, (iii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by Insmed or any corporation controlled by Insmed, or (iv) any acquisition by any corporation pursuant to a transaction which
complies with clauses (i) and (ii) of subsection (c) of this Section 2; or 
  
 (b) such time as the Continuing Directors (as defined below) do not constitute a majority of the Board of Directors of Insmed (the “Board”) (or, if applicable, the Board of Directors of a successor
corporation to Insmed), where the term “Continuing Director” means at any date a member of the Board (i) who was a member of the Board on the date of the execution of this Agreement or (ii) who was nominated or elected subsequent to such
date by at least a majority of the directors who were Continuing Directors at the time of such nomination or election 

 or whose election to the Board was recommended or endorsed by at least a majority of the directors who were Continuing
Directors at the time of such nomination or election; provided, however, that there shall be excluded from this clause (ii) any individual whose initial assumption of office occurred as a result of an actual or threatened election contest with
respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents, by or on behalf of a person other than the Board; or 
  
 (c) the consummation of a merger, consolidation, reorganization, recapitalization or statutory share exchange involving
Insmed or a sale or other disposition of all or substantially all of the assets of Insmed in one or a series of transactions (a “Business Combination”), unless, immediately following such Business Combination, each of the following two
conditions is satisfied: (i) all or substantially all of the individuals and entities who were the beneficial owners of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such Business Combination
beneficially own, directly or indirectly, more than 60% of the then-outstanding shares of common stock and the combined voting power of the then-outstanding securities entitled to vote generally in the election of directors, respectively, of the
resulting or acquiring corporation in such Business Combination (which shall include, without limitation, a corporation which as a result of such transaction owns Insmed or substantially all of the Insmed’s assets either directly or through one
or more subsidiaries) (such resulting or acquiring corporation is referred to herein as the “Acquiring Corporation”) in substantially the same proportions as their ownership, immediately prior to such Business Combination, of the
Outstanding Company Common Stock and Outstanding Company Voting Securities, respectively; and (ii) no Person (excluding the Acquiring Corporation or any employee benefit plan (or related trust) maintained or sponsored by Insmed or by the Acquiring
Corporation) beneficially owns, directly or indirectly, 40% or more of the then outstanding shares of common stock of the Acquiring Corporation, or of the combined voting power of the then-outstanding securities of such corporation entitled to vote
generally in the election of directors (except to the extent that such ownership existed prior to the Business Combination); or 
  
 (d) approval by the stockholders of Insmed of a complete liquidation or dissolution of Insmed. 
  
 3. Rights and Obligations Prior to a Change in Control. Prior to a
Change in Control the rights and obligations of Employee with respect to his employment by Insmed shall be whatever rights and obligations are negotiated between Insmed and Employee from time to time. The existence of this Agreement, which deals
with such rights and obligations subsequent to a Change in Control, shall not be treated as raising any inference with respect to what rights and obligations exist prior to a Change in Control unless specifically stated elsewhere in this Agreement.

  
 4. Effect of a Change in Control. In the event of a
Change in Control and the Employee’s employment is terminated pursuant to a “Qualifying Termination” (as set forth below) on or prior to the date that is within twelve (12) months of the effective date of the Change in Control
(the “Change in Control Date”), the Employee shall be entitled to the severance payments and other benefits set forth in this Agreement. 
  

 - 2 - 

 5. Qualifying Termination. If, subsequent to a Change in Control, Employee’s employment
terminates within one year of the Change in Control Date, such termination shall be considered a Qualifying Termination unless: 
  
 (a) Employee voluntarily terminates employment. However, it shall not be considered a voluntary termination of employment if, following the Change in
Control, Employee’s compensation or duties are changed in any material respect from what they were immediately prior to a Change in Control, and subsequent to such change Employee elects to terminate employment. A “change in any material
respect” shall encompass (i) any significant diminution in Employee’s position, authority, duties, responsibilities, or reporting relationship, (ii) any material reduction in Employee’s then compensation and/or benefits, unless such
reduction is an across-the-board reduction of the compensation and/or benefits of all similarly situated executives, (iii) any change in Employee’s job location to a site more than 50 miles away from his place of employment prior
to the Change in Control or (iv) the failure of Insmed to obtain the agreement of any successor to Insmed to assure and agree to perform this Agreement. 
  
 (b) The termination is on account of Employee’s death or disability. As used herein, “disability” refers to an illness or accident that
causes Employee to be unable to perform the duties of his job for at least six consecutive months, as determined by a physician mutually acceptable to Insmed and the Employee. 
  
 (c) Employee is involuntarily terminated for “Cause”, or it is determined that the facts conclusively demonstrate
that Employee would have been terminated had any of the events set forth in clauses (i) through (iii) below had been known at the date of termination. For this purpose “Cause” means: 
  
 (i) the Employee’s willful and continued failure to
substantially perform his reasonable assigned duties (other than any such failure resulting from incapacity due to physical or mental illness or any failure after the Employee gives notice of termination for any of the reasons set forth in Section
5(a)), which failure is not cured within 60 days after a written demand for substantial performance is received by the Employee from the Chief Executive Officer which specifically identifies the manner in which the Chief Executive Officer believes
the Employee has not substantially performed his duties; 
  
 (ii) the Employee’s willful engagement in illegal conduct or gross misconduct that is materially and demonstrably injurious to Insmed; or 
  
 (iii) the Employee’s conviction of a felony involving a crime of moral turpitude. 
  
 For purposes of this Section 5(c), no act or failure to act by the Employee shall be
considered “willful” unless it is done, or omitted to be done, in bad faith and without reasonable belief that the Employee’s action or omission was in the best interests of Insmed. 
  

 - 3 - 

 6. Constructive Qualifying Termination. If within six months prior to a Change in Control
Employee’s employment terminates as a result of any change described in Section 5(a) of this Agreement, Employee shall be entitled to the compensation, payments and other benefits that the Employee would have received if such termination had
occurred after a Change in Control. 
  
 7. Date and Notice of
Termination. Any termination of Employee’s employment by Insmed or by Employee shall be communicated by a written notice of termination to the other party (the “Notice of Termination”). Where applicable, the Notice of Termination
shall indicate the specific termination provision in this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances claimed. 
  
 8. Severance Payments. If Employee is terminated as a result of a Qualifying Termination, Insmed shall pay Employee within 30 days of said
Qualifying Termination a cash lump sum equal 1.0 times Employee’s “Compensation” as a severance payment (“Severance Payment”). 
  
 (a) “Compensation” means the sum of Employee’s highest annual salary rate (i.e. the Employee’s highest rate of annual salary while an
employee of Insmed) plus a bonus calculated by multiplying an employee’s annual salary by the maximum bonus potential for the change of control year prorated as of the date of the Change of Control. 
  
 (b) In lieu of a cash lump sum, Employee may, at his option, elect in writing
to receive the payments provided by this Section 8 in equal monthly installments over 18 months. 
  
 (c) The Severance Payment set forth in this Section 8 is in lieu of any severance payments that Employee might otherwise be entitled to receive from
Insmed under the terms of any severance pay arrangement not referred to in this Agreement. 
  
 9. Stock Option Grants and Other Forms of Employee Compensation. In the event of a Change in Control, (i) all stock options then held by Employee will vest and the Employee’s time to exercise these options
will continue until the earlier of (a) the end of the regular option term (not including provisions for acceleration or early termination of the option term) or (b) five years form the date of the Change in Control and (ii) any restricted stock held
by Employee shall remain subject to the restrictions set forth in his restricted stock agreement. 
  
 10. Additional Benefits. In the event of a Qualifying Termination, Insmed shall continue to provide to the Employee health, dental, long-term
disability, life insurance, continuation of D&O insurance, and the other fringe benefits that Employee received prior to the Qualifying Termination on the same terms and conditions as though the Employee had remained an active employee of Insmed
for the 18 month period immediately subsequent to the Qualifying Termination. Insmed shall provide COBRA benefits to the Employee following the end of this 18-month period, such benefits to be determined as though the Employee’s employment had
terminated at the end of such period. 
  

 - 4 - 

 11. Taxes. 
  
 (a) The benefits that an Employee may be entitled to receive under this Agreement and other benefits that an Employee is
entitled to receive under other plans, agreements and arrangements (which, together with the benefits provided under this Plan, are referred to as “Payments”), may constitute Parachute Payments that are subject to the “golden
parachute” rules of Section 280G of the Internal Revenue Code of 1986 (the “Code”) and the excise tax of Code Section 4999. As provided in this Section 11, the Parachute Payments will be reduced if, and only to the extent that, a
reduction will allow an Employee to receive a greater Net After Tax Amount than an Employee would receive absent a reduction. 
  
 (b) The Accounting Firm will first determine the amount of any Parachute Payments that are payable to an Employee. The Accounting Firm also will determine
the Net After Tax Amount attributable to the Employee’s total Parachute Payments. 
  
 (c) The Accounting Firm will next determine the largest amount of Payments that may be made to the Employee without subjecting the Employee to tax under Code Section 4999 (the “Capped Payments”). Thereafter,
the Accounting Firm will determine the Net After Tax Amount attributable to the Capped Payments. 
  
 (d) The Employee will receive the total Parachute Payments or the Capped Payments, whichever provides the Employee with the higher Net After Tax Amount.
If the Employee will receive the Capped Payments, the total Parachute Payments will be adjusted by first reducing the amount of any noncash benefits under this Agreement or any other plan, agreement or arrangement (with the source of the reduction
to be directed by the Employee) and then by reducing the amount of any cash benefits under this Agreement or any other plan, agreement or arrangement (with the source of the reduction to be directed by the Employee). The Accounting Firm will notify
the Employee and Insmed if it determines that the Parachute Payments must be reduced to the Capped Payments and will send the Employee and Insmed a copy of its detailed calculations supporting that determination. 
  
 (e) As a result of the uncertainty in the application of Code Sections 280G
and 4999 at the time that the Accounting Firm makes its determinations under this Section 11, it is possible that amounts will have been paid or distributed to the Employee that should not have been paid or distributed under this Section 11
(“Overpayments”), or that additional amounts should be paid or distributed to the Employee under this Section 11 (“Underpayments”). If the Accounting Firm determines, based on either the assertion of a deficiency by the Internal
Revenue Service against Insmed or the Employee, which assertion the Accounting Firm believes has a high probability of success or controlling precedent or substantial authority, that an Overpayment has been made, that Overpayment will be treated for
all purposes as a loan ab initio that the Employee must repay to Insmed together with interest at the applicable Federal rate under Code Section 7872; provided, however, that no loan will be deemed to have been made and no amount will be
payable by the Employee to Insmed unless, and then only to the extent that, the deemed loan and payment would either reduce the amount on which the Employee is subject to tax under Code 
  

 - 5 - 

 Section 4999 or generate a refund of tax imposed under Code Section 4999. If the Accounting Firm determines, based upon
controlling precedent or substantial authority, that an Underpayment has occurred, the Accounting Firm will notify the Employee and Insmed of that determination and the amount of that Underpayment will be paid to the Employee promptly by Insmed.

  
 (f) For purposes of this Section 11, the following terms shall
have their respective meanings: 
  
 (i)
“Accounting Firm” means the independent accounting firm engaged by Insmed immediately before the Change in Control Date. 
  
 (ii) “Net After Tax Amount” means the amount of any Parachute Payments or Capped Payments, as applicable, net of taxes imposed
under Code Sections 1, 3101(b) and 4999 and any State or local income taxes applicable to the Employee on the date of payment. The determination of the Net After Tax Amount shall be made using the highest combined effective rate imposed by the
foregoing taxes on income of the same character as the Parachute Payments or Capped Payments, as applicable, in effect on the date of payment. 
  
 (iii) “Parachute Payment” means a payment that is described in Code Section 280G(b)(2), determined in accordance with Code
Section 280G and the regulations promulgated or proposed thereunder. 
  
 12. Term of Agreement. This Agreement shall be effective from March 3, 2004, through March 3, 2005. Insmed may, in its sole discretion and for any reason, provide written notice of termination (effective as of the then applicable
expiration date) to Employee no later than 60 days before expiration date of this Agreement. If written notice is not so provided, this Agreement shall be automatically extended for an additional period of 12 months past the expiration date. This
Agreement shall continue to be automatically extended for an additional twelve (12) months at the end of such 12-month period and each succeeding 12-month period unless notice is given in the manner described in this Section 12. 
  
 13. Governing Law. Except to the extent that federal law is
applicable, this Agreement is made and entered into in the Commonwealth of Virginia and the laws of Virginia shall govern its validity and interpretation in the performance by the parties hereto of their respective duties and obligations hereunder.

  
 14. Entire Agreement. This Agreement constitutes the
entire agreement between the parties respecting the compensation, payments and benefits due Employee in the event of a Change in Control followed by a Qualifying Termination, and there are no representations, warranties or commitments, other than
those set forth herein, which relate to such benefits. This Agreement may be amended or modified only by an instrument in writing executed by Insmed and the Employee. 
  

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 15. No Duty to Mitigate. Employee shall not be required to mitigate the amount of any payment
contemplated by this Agreement (whether by seeking new employment or in any other manner), nor shall any earnings that Employee may receive from any other source reduce any such payment. 
  
 16. Successors: Binding Agreement. 
  
 (a) Assumption by Successor. Insmed shall require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business or assets of Insmed expressly to assume and to agree to perform its obligations under this Agreement in the same manner and to the same extent that Insmed would be required to
perform such obligations if no such assumption had occurred. As used herein, Insmed shall mean any successor to its business and/or assets as aforesaid that assumes and agrees to perform its obligations by operation of law or otherwise. 

 
 (b) Enforceability by Beneficiaries. This Agreement shall be binding upon
and inure to the benefit of Employee (and Employee’s personal representatives and heirs) and Insmed and any organization which succeeds to substantially all of the business or assets of Insmed, whether by means of merger, consolidation,
acquisition of all or substantially all of the assets of Insmed or otherwise, including, without limitation, as a result of a Change in Control, or by operation of law. This Agreement shall inure to the benefit of and be enforceable by
Employee’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. If the Employee should die while any amount would still be payable to such Employee hereunder if he had continued
to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to his designee or, if there is no such designee, to his estate. 
  
 17. Confidentiality. Employee acknowledges that in the course of his employment with Insmed, he has acquired
non-public privileged or confidential information and trade secrets concerning the operations, future plans and methods of doing business (“Proprietary Information”) of Insmed, and the Employee agrees that it would be extremely damaging to
Insmed if such Proprietary Information were disclosed to a competitor of Insmed or to any other person or corporation. Employee understands and agrees that all Proprietary Information Employee has acquired during the course of such employment has
been divulged to Employee in confidence and further understands and agrees to keep all Proprietary Information secret and confidential (except for such information which is or becomes publicly available other than as a result of a breach by Employee
of this provision) without limitation in time. In view of the nature of Employee’s employment and the Proprietary Information Employee has acquired during the course of such employment, Employee likewise agrees that Insmed would be irreparably
harmed by any disclosure of Proprietary Information in violation of the terms of this Section 16 and that Insmed shall therefore be entitled to preliminary and/or permanent injunctive relief prohibiting Employee from engaging in any activity or
threatened activity in violation of the terms of this Section and to any other judicial relief available to it. Inquiries regarding whether specific information constitutes Proprietary Information shall be directed to Insmed’s General Counsel
(or, if such position is vacant, Insmed’s Chairman of the Compensation Committee); provided, however, that Insmed shall not unreasonably classify information as Proprietary Information. 
  

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 18. Non-Competition. 
  
 (a) For a period of twelve (12) months after the termination of Employee’s employment with Insmed, Employee will not:

  
 (i) as an individual proprietor, partner,
stockholder, officer, director, employee, director, joint venturer, investor, lender, or in any capacity whatsoever (other than as the holder of not more than one percent (1%) of the total outstanding stock of a publicly held company), engage in any
business that competes directly with the products or services provided by Insmed at the time of termination or for which definitive Insmed plans then exist to so provide such products or services; 
  
 (ii) directly or indirectly recruit or solicit any person
who is then an employee of Insmed or was an employee of Insmed at any time within six months prior to such retirement or solicitation; or 
  
 (iii) solicit, divert or take away, or attempt to divert or to take away, the business or patronage of any of the clients, customers or
accounts, or prospective clients, customers or accounts of Insmed. 
  
 (b) If any restriction set forth in this Section 18 is found by any court of competent jurisdiction to be unenforceable because it extends for too long a period of time or over too great a range of activities or in too broad a geographic
area, it shall be interpreted to extend only over the maximum period of time, range of activities or geographic area to which it may be enforceable. 
  
 (c) The restrictions contained in this Section 18 are necessary for the protection of the business and goodwill of Insmed and are considered by Employee
to be reasonable for such purpose. Employee agrees that any breach of this Section will cause Insmed substantial and irrevocable damage and therefore, in the event of any such breach, in addition to such other remedies that may be available, Insmed
shall have the right to seek specific performance and injunctive relief. 
  
 19. Outplacement Services. In the event the Employee is terminated by Insmed (other than for Cause, disability or death), or the Employee voluntarily terminates employment for the reasons set forth in Section
5(a), within twelve (12) months following the Change in Control Date, Insmed shall provide outplacement services through one or more outside firms of the Employee’s choosing up to an aggregate of $10,000, with such services to extend until the
earlier of (i) 12 months following termination of Employee’s employment or (ii) the date the Employee secures full time employment. 
  
 20. Notices. All notices, instructions and other communications given hereunder or in connection herewith shall be in writing. Any such notice,
instruction or communication shall 
  

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 be sent either (i) by registered or certified mail, return receipt requested, postage prepaid, or (ii) prepaid via a
reputable nationwide overnight courier service, in each case addressed to Insmed and to the Employee at their respective addresses set forth below (or to such other address as either Insmed or the Employee may have furnished to the other in writing
in accordance herewith). Any such notice, instruction or communication shall be deemed to have been delivered five business days after it is sent by registered or certified mail, return receipt requested, postage prepaid, or two business days after
it is sent via a reputable nationwide overnight courier service. Either party may give any notice, instruction or other communication hereunder using any other means, but no such notice, instruction or other communication shall be deemed to have
been duly delivered unless and until it actually is received by the party for whom it is intended. 
  
 If to Insmed: 
  
 Insmed
Incorporated 
 4851 Lake Brook Drive 
 Glen Allen, Virginia 23058-2400 
 Attention: Chairman, Compensation Committee 
  
 If to Employee: 
  
 Ronald D. Gunn 
 (home address redacted) 
  
 21. Captions. The
captions of this Agreement are inserted for convenience and do not constitute a part hereof. 
  
 22. Severability. In case any one or more of the provisions contained in this Agreement shall for any reasons be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provision of this Agreement, but this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein and there shall be deemed substituted such other
provision as will most nearly accomplish the intent of the parties to the extent permitted by applicable law. In case this Agreement, or any one or more of the provisions hereof, shall be held to be invalid, illegal or unenforceable within any
governmental jurisdiction or subdivision thereof, this Agreement or any such provision thereof shall not as a consequence thereof be deemed to be invalid, illegal or unenforceable in any other governmental jurisdiction or subdivision thereof.

  
 23. Counterparts. This Agreement may be executed in two
or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same Agreement. 
  
 [Signature Page Follows] 
  

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 IN WITNESS HEREOF, the parties hereto have caused this Agreement to be duly executed and delivered as of
the day and year first written above in Glen Allen, Virginia. 
  

					
	 	 	INSMED INCORPORATED
			
	
	 	By	 	 /s/ Geoffrey Allan

	Witness	 	 	 	 Geoffrey Allan, President and CEO

			
	
	 	 	 	 /s/ Ronald D. Gunn

	Witness	 	 	 	 Ronald D. Gunn

  

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