Document:

Exhibit
10.16

 

AMPLIPHI
BIOSCIENCES CORPORATION 2013 STOCK INCENTIVE PLAN

 

NOTICE
OF STOCK OPTION AWARD

 

	Grantee’s Name and Address:	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

You (the “Grantee”) have been
granted an option to purchase shares of Common Stock, subject to the terms and conditions of this Notice of Stock Option Award
(the “Notice”), the AmpliPhi Biosciences Corporation 2013 Stock Incentive Plan, as amended from time to time (the “Plan”)
and the Stock Option Award Agreement (the “Option Agreement”) attached hereto, as follows. Unless otherwise defined
herein, the terms defined in the Plan shall have the same defined meanings in this Notice.

 

	Award Number	 	 
	 	 	 
	Date of Award	 	 
	 	 	 
	Vesting Commencement Date	 	 
	 	 	 
	Exercise Price per Share	 	 
	 	 	 
	Total Number of Shares Subject	 	 
	to the Option (the “Shares”)	 	 
	 	 	 
	Total Exercise Price	 	 
	 	 	 
	Type of Option:  	 	______    Incentive Stock Option
	 	 	 
	 	 	______    Non-Qualified Stock Option
	 	 	 
	Expiration Date:	 	 
	 	 	 
	Post-Termination Exercise Period:	 	[Three (3) Months]

 

Vesting Schedule:

 

Subject to the Grantee’s Continuous
Service and other limitations set forth in this Notice, the Plan and the Option Agreement, the Option may be exercised, in whole
or in part, in accordance with the following schedule:

 

[12.5% of the Shares subject to the Option
shall vest six (6) months after the Vesting Commencement Date, and 1/42 of the remaining unvested Shares subject to the Option
shall vest on each of the next forty-two (42) monthly anniversaries of the Vesting Commencement Date thereafter.

 

During any authorized leave of absence,
the vesting of the Option as provided in this schedule shall be suspended after the leave of absence exceeds a period of three
(3) months. Vesting of the Option shall resume upon the Grantee’s termination of the leave of absence and return to service
to the Company or a Related Entity. The Vesting Schedule of the Option shall be extended by the length of the suspension.]

 

    	 	 1	 

     

    

 

IN WITNESS WHEREOF, the Company and the
Grantee have executed this Notice and agree that the Option is to be governed by the terms and conditions of this Notice, the Plan,
and the Option Agreement.

 

	 	
        AmpliPhi Biosciences Corporation

        a Washington corporation

	 
	 	 	 
	 	By: 	 
	 	 	 
	 	Title:	 

 

THE GRANTEE ACKNOWLEDGES AND AGREES THAT THE
SHARES SUBJECT TO THE OPTION SHALL VEST, IF AT ALL, ONLY DURING THE PERIOD OF THE GRANTEE’S CONTINUOUS SERVICE (NOT THROUGH
THE ACT OF BEING HIRED, BEING GRANTED THE OPTION OR ACQUIRING SHARES HEREUNDER). THE GRANTEE FURTHER ACKNOWLEDGES AND AGREES THAT
NOTHING IN THIS NOTICE, THE OPTION AGREEMENT, OR THE PLAN SHALL CONFER UPON THE GRANTEE ANY RIGHT WITH RESPECT TO FUTURE AWARDS
OR CONTINUATION OF THE GRANTEE’S CONTINUOUS SERVICE, NOR SHALL IT INTERFERE IN ANY WAY WITH THE GRANTEE’S RIGHT OR
THE RIGHT OF THE COMPANY OR RELATED ENTITY TO WHICH THE GRANTEE PROVIDES SERVICES TO TERMINATE THE GRANTEE’S CONTINUOUS SERVICE,
WITH OR WITHOUT CAUSE, AND WITH OR WITHOUT NOTICE. THE GRANTEE ACKNOWLEDGES THAT UNLESS THE
GRANTEE HAS A WRITTEN EMPLOYMENT AGREEMENT WITH THE COMPANY TO THE CONTRARY, THE GRANTEE’S STATUS IS AT WILL.

 

The Grantee acknowledges receipt of a copy
of the Plan and the Option Agreement, and represents that he or she is familiar with the terms and provisions thereof, and hereby
accepts the Option subject to all of the terms and provisions hereof and thereof. The Grantee has reviewed this Notice, the Plan,
and the Option Agreement in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Notice,
and fully understands all provisions of this Notice, the Plan and the Option Agreement. The Grantee hereby agrees that all questions
of interpretation and administration relating to this Notice, the Plan and the Option Agreement shall be resolved by the Administrator
in accordance with Section 13 of the Option Agreement. The Grantee further agrees to the venue selection and waiver of a jury
trial in accordance with Section 14 of the Option Agreement. The Grantee further agrees to notify the Company upon any change
in the residence address indicated in this Notice.

 

	Dated: ______________________	 	Signed:  	 
	 	 	 	Grantee

 

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Award Number: ___________

 

ampliphi
biosciences corporation 2013 STOCK INCENTIVE PLAN

 

STOCK
OPTION AWARD AGREEMENT

 

1.            Grant of Option. AmpliPhi Biosciences
Corporation, a Washington corporation (the “Company”), hereby grants to the Grantee (the “Grantee”) named
in the Notice of Stock Option Award (the “Notice”), an option (the “Option”) to purchase the Total Number
of Shares of Common Stock subject to the Option (the “Shares”) set forth in the Notice, at the Exercise Price per Share
set forth in the Notice (the “Exercise Price”) subject to the terms and provisions of the Notice, this Stock Option
Award Agreement (the “Option Agreement”) and the Company’s 2013 Stock Incentive Plan, as amended
from time to time (the “Plan”), which are incorporated herein by reference. Unless otherwise defined herein, the terms
defined in the Plan shall have the same defined meanings in this Option Agreement.

 

If designated in the Notice as an Incentive
Stock Option, the Option is intended to qualify as an Incentive Stock Option as defined in Section 422 of the Code. However,
notwithstanding such designation, the Option will qualify as an Incentive Stock Option under the Code only to the extent the $100,000
dollar limitation of Section 422(d) of the Code is not exceeded. The $100,000 limitation of Section 422(d) of the Code
is calculated based on the aggregate Fair Market Value of the Shares subject to options designated as Incentive Stock Options which
become exercisable for the first time by the Grantee during any calendar year (under all plans of the Company or any Parent or
Subsidiary of the Company). For purposes of this calculation, Incentive Stock Options shall be taken into account in the order
in which they were granted, and the Fair Market Value of the shares subject to such options shall be determined as of the grant
date of the relevant option.

 

2.           Exercise of Option.

 

(a)          Right to Exercise. The Option
shall be exercisable during its term in accordance with the Vesting Schedule set out in the Notice and with the applicable provisions
of the Plan and this Option Agreement. The Option shall be subject to the provisions of Section 11 of the Plan relating
to the exercisability or termination of the Option in the event of a Corporate Transaction or Change in Control. The Grantee shall
be subject to reasonable limitations on the number of requested exercises during any monthly or weekly period as determined by
the Administrator. In no event shall the Company issue fractional Shares.

 

(b)         Method of Exercise. The Option
shall be exercisable by delivery of an exercise notice (a form of which is attached as Exhibit A) or by such other procedure as
specified from time to time by the Administrator which shall state the election to exercise the Option, the whole number of Shares
in respect of which the Option is being exercised, and such other provisions as may be required by the Administrator. The exercise
notice shall be delivered in person, by certified mail, or by such other method (including electronic transmission) as determined
from time to time by the Administrator to the Company accompanied by payment of the Exercise Price and all applicable income and
employment taxes required to be withheld. The Option shall be deemed to be exercised upon receipt by the Company of such notice
accompanied by the Exercise Price and all applicable withholding taxes.

 

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(c)         Taxes. No Shares will be delivered
to the Grantee or other person pursuant to the exercise of the Option until the Grantee or other person has made arrangements acceptable
to the Administrator for the satisfaction of applicable income tax and employment tax withholding obligations, including, without
limitation, such other tax obligations of the Grantee incident to the receipt of Shares. Upon exercise of the Option, the Company
or the Grantee’s employer may offset or withhold (from any amount owed by the Company or the Grantee’s employer to
the Grantee) or collect from the Grantee or other person an amount sufficient to satisfy such tax withholding obligations. Furthermore,
in the event of any determination that the Company has failed to withhold a sum sufficient to pay all withholding taxes due in
connection with the Option, the Grantee agrees to pay the Company the amount of such deficiency in cash within five (5) days after
receiving a written demand from the Company to do so, whether or not the Grantee is an employee of the Company at that time.

 

(d)         Section 16(b). Notwithstanding
any provision of this Option Agreement to the contrary, other than termination of the Grantee’s Continuous Service for Cause,
if a sale within the applicable time periods set forth in Sections 5, 6 or 7 herein of Shares acquired upon the exercise of the
Option would subject the Grantee to suit under Section 16(b) of the Exchange Act, the Option shall remain exercisable until the
earliest to occur of (i) the tenth (10th) day following the date on which a sale of such Shares by the Grantee would no longer
be subject to such suit, (ii) the one hundred and ninetieth (190th) day after the Grantee’s termination of Continuous Service,
or (iii) the date on which the Option expires.

 

3.           Method of Payment. Payment
of the Exercise Price shall be made by any of the following, or a combination thereof, at the election of the Grantee; provided,
however, that such exercise method does not then violate any Applicable Law:

 

(a)         cash;

 

(b)         check; or

 

(c)         a combination of the foregoing.

 

4.           Restrictions on Exercise. The
Option may not be exercised if the issuance of the Shares subject to the Option upon such exercise would constitute a violation
of any Applicable Laws. If the exercise of the Option within the applicable time periods set forth in Section 5, 6 and 7 of
this Option Agreement is prevented by the provisions of this Section 4, the Option shall remain exercisable until one (1)
month after the date the Grantee is notified by the Company that the Option is exercisable, but in any event no later than the
Expiration Date set forth in the Notice.

 

5.           Termination or Change of Continuous
Service. In the event the Grantee’s Continuous Service terminates, the Grantee may, but only during the Post-Termination
Exercise Period, exercise the portion of the Option that was vested at the date of such termination (the “Termination Date”).
The Post-Termination Exercise Period shall commence on the Termination Date. In no event, however, shall the Option be exercised
later than the Expiration Date set forth in the Notice. In the event of the Grantee’s change in status from Employee, Director
or Consultant to any other status of Employee, Director or Consultant, the Option shall remain in effect and the Option shall continue
to vest in accordance with the Vesting Schedule set forth in the Notice; provided, however, that with respect to any Incentive
Stock Option that shall remain in effect after a change in status from Employee to Director or Consultant, such Incentive Stock
Option shall cease to be treated as an Incentive Stock Option and shall be treated as a Non-Qualified Stock Option on the day three (3)
months and one (1) day following such change in status. Except as provided in Sections 6 and 7 below, to the extent that
the Option was unvested on the Termination Date, or if the Grantee does not exercise the vested portion of the Option within the
Post-Termination Exercise Period, the Option shall terminate.

  

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6.           Disability of Grantee. In the
event the Grantee’s Continuous Service terminates as a result of his or her Disability, the Grantee may, but only within
twelve (12) months commencing on the Termination Date (but in no event later than the Expiration Date), exercise the portion of
the Option that was vested on the Termination Date; provided, however, that if such Disability is not a “disability”
as such term is defined in Section 22(e)(3) of the Code and the Option is an Incentive Stock Option, such Incentive Stock
Option shall cease to be treated as an Incentive Stock Option and shall be treated as a Non-Qualified Stock Option on the day three (3)
months and one (1) day following the Termination Date. To the extent that the Option was unvested on the Termination Date,
or if the Grantee does not exercise the vested portion of the Option within the time specified herein, the Option shall terminate.
Section 22(e)(3) of the Code provides that an individual is permanently and totally disabled if he or she is unable to engage
in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected
to result in death or which has lasted or can be expected to last for a continuous period of not less than twelve (12) months.

 

7.           Death of Grantee. In the event
of the termination of the Grantee’s Continuous Service as a result of his or her death, or in the event of the Grantee’s
death during the Post-Termination Exercise Period or during the twelve (12) month period following the Grantee’s termination
of Continuous Service as a result of his or her Disability, the person who acquired the right to exercise the Option pursuant to
Section 8 may exercise the portion of the Option that was vested at the date of termination within twelve (12) months
commencing on the date of death (but in no event later than the Expiration Date). To the extent that the Option was unvested on
the date of death, or if the vested portion of the Option is not exercised within the time specified herein, the Option shall terminate.

 

8.           Transferability of Option.
The Option, if an Incentive Stock Option, may not be transferred in any manner other than by will or by the laws of descent and
distribution and may be exercised during the lifetime of the Grantee only by the Grantee. The Option, if a Non-Qualified Stock
Option, may not be transferred in any manner other than by will or by the laws of descent and distribution, provided, however,
that a Non-Qualified Stock Option may be transferred during the lifetime of the Grantee to the extent and in the manner authorized
by the Administrator. Notwithstanding the foregoing, the Grantee may designate one or more beneficiaries of the Grantee’s
Incentive Stock Option or Non-Qualified Stock Option in the event of the Grantee’s death on a beneficiary designation form
provided by the Administrator. Following the death of the Grantee, the Option, to the extent provided in Section 7, may be
exercised (a) by the person or persons designated under the deceased Grantee’s beneficiary designation or (b) in
the absence of an effectively designated beneficiary, by the Grantee’s legal representative or by any person empowered to
do so under the deceased Grantee’s will or under the then applicable laws of descent and distribution. The terms of the Option
shall be binding upon the executors, administrators, heirs, successors and transferees of the Grantee. 

 

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9.           Term of Option. The Option
must be exercised no later than the Expiration Date set forth in the Notice or such earlier date as otherwise provided herein.
After the Expiration Date or such earlier date, the Option shall be of no further force or effect and may not be exercised.

 

10.          Tax Consequences. The Grantee
may incur tax liability as a result of the Grantee’s purchase or disposition of the Shares. THE GRANTEE SHOULD CONSULT A
TAX ADVISER BEFORE EXERCISING THE OPTION OR DISPOSING OF THE SHARES.

 

11.          Entire Agreement: Governing Law.
The Notice, the Plan and this Option Agreement constitute the entire agreement of the parties with respect to the subject matter
hereof and supersede in their entirety all prior undertakings and agreements of the Company and the Grantee with respect to the
subject matter hereof, and may not be modified adversely to the Grantee’s interest except by means of a writing signed by
the Company and the Grantee. Nothing in the Notice, the Plan and this Option Agreement (except as expressly provided therein) is
intended to confer any rights or remedies on any persons other than the parties. The Notice, the Plan and this Option Agreement
are to be construed in accordance with and governed by the internal laws of the State of Virginia without giving effect
to any choice of law rule that would cause the application of the laws of any jurisdiction other than the internal laws of the
State of Virginia to the rights and duties of the parties. Should any provision of the Notice, the Plan or this Option Agreement
be determined to be illegal or unenforceable, such provision shall be enforced to the fullest extent allowed by law and the other
provisions shall nevertheless remain effective and shall remain enforceable.

 

12.          Construction. The captions
used in the Notice and this Option Agreement are inserted for convenience and shall not be deemed a part of the Option for construction
or interpretation. Except when otherwise indicated by the context, the singular shall include the plural and the plural shall include
the singular. Use of the term “or” is not intended to be exclusive, unless the context clearly requires otherwise.

 

13.          Administration and Interpretation.
Any question or dispute regarding the administration or interpretation of the Notice, the Plan or this Option Agreement shall be
submitted by the Grantee or by the Company to the Administrator. The resolution of such question or dispute by the Administrator
shall be final and binding on all persons.

 

14.         Venue and Waiver of Jury Trial.
The Company, the Grantee, and the Grantee’s assignees pursuant to Section 8 (the “parties”) agree that any
suit, action, or proceeding arising out of or relating to the Notice, the Plan or this Option Agreement shall be brought in the
United States District Court for the Eastern District of Virginia (or should such court lack jurisdiction to hear such action,
suit or proceeding, in a Virginia state court in the County of Henrico) and that the parties shall submit to the jurisdiction of
such court. The parties irrevocably waive, to the fullest extent permitted by law, any objection the party may have to the laying
of venue for any such suit, action or proceeding brought in such court. THE PARTIES ALSO EXPRESSLY WAIVE ANY RIGHT THEY HAVE OR
MAY HAVE TO A JURY TRIAL OF ANY SUCH SUIT, ACTION OR PROCEEDING. If any one or more provisions of this Section 14 shall for
any reason be held invalid or unenforceable, it is the specific intent of the parties that such provisions shall be modified to
the minimum extent necessary to make it or its application valid and enforceable.

 

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15.         Notices. Any notice required
or permitted hereunder shall be given in writing and shall be deemed effectively given upon personal delivery, upon deposit for
delivery by an internationally recognized express mail courier service or upon deposit in the United States mail by certified mail
(if the parties are within the United States), with postage and fees prepaid, addressed to the other party at its address as shown
in these instruments, or to such other address as such party may designate in writing from time to time to the other party.

 

END OF AGREEMENT

 

    	 	 5	 

     

    

 

EXHIBIT
A

 

AMPLIPHI
BIOSCIENCES CORPORATION 2013 STOCK INCENTIVE PLAN

 

EXERCISE
NOTICE

 

AmpliPhi Biosciences Corporation

4870 Sadler Road, Suite 300

Glen Allen, Virginia 23060

 

Attention: Secretary

 

1.            Exercise of Option. Effective
as of today, ______________, ___ the undersigned (the “Grantee”) hereby elects to exercise the Grantee’s option
to purchase ___________ shares of the Common Stock (the “Shares”) of AmpliPhi Biosciences Corporation (the “Company”)
under and pursuant to the Company’s 2013 Stock Incentive Plan, as amended from time to time (the “Plan”) and
the [  ] Incentive [  ] Non-Qualified Stock Option Award Agreement (the “Option Agreement”)
and Notice of Stock Option Award (the “Notice”) dated ______________, ________. Unless otherwise defined herein, the
terms defined in the Plan shall have the same defined meanings in this Exercise Notice.

 

2.            Representations of the Grantee.
The Grantee acknowledges that the Grantee has received, read and understood the Notice, the Plan and the Option Agreement and agrees
to abide by and be bound by their terms and conditions.

 

3.            Rights as Stockholder. Until
the stock certificate evidencing such Shares is issued (as evidenced by the appropriate entry on the books of the Company or of
a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder shall
exist with respect to the Shares, notwithstanding the exercise of the Option. The Company shall issue (or cause to be issued) such
stock certificate promptly after the Option is exercised. No adjustment will be made for a dividend or other right for which the
record date is prior to the date the stock certificate is issued, except as provided in Section 10 of the Plan.

 

4.            Delivery of Payment. The Grantee
herewith delivers to the Company the full Exercise Price for the Shares as provided in Section 3(e) of the Option Agreement.

 

5.            Tax Consultation. The Grantee
understands that the Grantee may suffer adverse tax consequences as a result of the Grantee’s purchase or disposition of
the Shares. The Grantee represents that the Grantee has consulted with any tax consultants the Grantee deems advisable in connection
with the purchase or disposition of the Shares and that the Grantee is not relying on the Company for any tax advice.

 

6.            Taxes. The Grantee agrees to
satisfy all applicable foreign, federal, state and local income and employment tax withholding obligations and herewith delivers
to the Company the full amount of such obligations or has made arrangements acceptable to the Company to satisfy such obligations.
In the case of an Incentive Stock Option, the Grantee also agrees, as partial consideration for the designation of the Option as
an Incentive Stock Option, to notify the Company in writing within thirty (30) days of any disposition of any shares acquired
by exercise of the Option if such disposition occurs within two (2) years from the Date of Award or within one (1) year
from the date the Shares were transferred to the Grantee.

 

    	 	 1	 

     

    

 

7.            Successors and Assigns. The
Company may assign any of its rights under this Exercise Notice to single or multiple assignees, and this agreement shall inure
to the benefit of the successors and assigns of the Company. This Exercise Notice shall be binding upon the Grantee and his or
her heirs, executors, administrators, successors and assigns.

 

8.            Construction. The captions
used in this Exercise Notice are inserted for convenience and shall not be deemed a part of this agreement for construction or
interpretation. Except when otherwise indicated by the context, the singular shall include the plural and the plural shall include
the singular. Use of the term “or” is not intended to be exclusive, unless the context clearly requires otherwise.

 

9.            Administration and Interpretation.
The Grantee hereby agrees that any question or dispute regarding the administration or interpretation of this Exercise Notice shall
be submitted by the Grantee or by the Company to the Administrator. The resolution of such question or dispute by the Administrator
shall be final and binding on all persons.

 

10.           Governing Law; Severability.
This Exercise Notice is to be construed in accordance with and governed by the internal laws of the State of Virginia without giving
effect to any choice of law rule that would cause the application of the laws of any jurisdiction other than the internal laws
of the State of Virginia to the rights and duties of the parties. Should any provision of this Exercise Notice be determined by
a court of law to be illegal or unenforceable, such provision shall be enforced to the fullest extent allowed by law and the other
provisions shall nevertheless remain effective and shall remain enforceable.

 

11.          Notices. Any notice required
or permitted hereunder shall be given in writing and shall be deemed effectively given upon personal delivery, upon deposit for
delivery by an internationally recognized express mail courier service or upon deposit in the United States mail by certified mail
(if the parties are within the United States), with postage and fees prepaid, addressed to the other party at its address as shown
below beneath its signature, or to such other address as such party may designate in writing from time to time to the other party.

 

12.          Further Instruments. The parties
agree to execute such further instruments and to take such further action as may be reasonably necessary to carry out the purposes
and intent of this agreement.

 

13.          Entire Agreement. The Notice,
the Plan and the Option Agreement are incorporated herein by reference and together with this Exercise Notice constitute the entire
agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements
of the Company and the Grantee with respect to the subject matter hereof, and may not be modified adversely to the Grantee’s
interest except by means of a writing signed by the Company and the Grantee. Nothing in the Notice, the Plan, the Option Agreement
and this Exercise Notice (except as expressly provided therein) is intended to confer any rights or remedies on any persons other
than the parties.

 

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	Submitted by:	 	Accepted by:
	 	 	 
	GRANTEE:	 	AMPLIPHI BIOSCIENCES CORPORATION
	 	 	 
	 	 	By:	 
	 	 	 	 
	 	 	Title:	 
	(Signature)	 	 	 

 

	Address:	 	Address:
	 	 	 
	 	 	4870 Sadler Road, Suite 300
	 	 	Glen Allen, Virginia 23060

 

    	 	 3Exhibit 10.23

 

 

 

April 24, 2015

 

Scott Salka

14778 El Rodeo Court

Rancho Santa Fe, CA 92067

 

Dear Scott:

 

We are pleased to confirm our offer of employment with Ampliphi
Biosciences Corporation (the “Company”), in the position of Chief Executive Officer.

 

Position. As Chief Executive Officer, you will be responsible
for managing the day to day operations and strategy of the Company and you will report directly to the Board of Directors of the
Company. In addition, you will be appointed to the Board of Directors upon your commencement of employment. You agree to devote
your full business time and attention to your work for the Company. Except upon the prior written consent of the Board of Directors,
you will not, during your employment with the Company, (i) accept or maintain any other employment, or (ii) engage, directly or
indirectly, in any other business activity (whether or not pursued for pecuniary advantage) that might interfere with your duties
and responsibilities as a Company employee or create a conflict of interest with the Company. However, the Company agrees that
you may continue to serve in the capacity of Chief Executive Officer of Aspyrian Therapeutics, Inc. (“Aspyrian”) for
a period of up to six (6) months from the date of this letter, provided that you seek to wind-down such activities and such activities
do not interfere with your duties and responsibilities as a Company employee or create a conflict of interest with the Company.
In addition, the Company agrees that you can continue to serve on the Board of Directors of Aspyrian so long as such activities
do not interfere with your duties and responsibilities as a Company employee or create a conflict of interest with the Company.

 

Salary. Your initial base salary will be $425,000 per year,
less applicable withholdings. Your salary will be reviewed from time to time by the Board of Directors or its compensation committee,
and may be adjusted in the sole discretion of the Board of Directors or its compensation committee.

 

Bonus. You will be eligible
to earn an annual performance bonus based on achievement of Company performance objectives to be established by the Board of Directors
or its compensation committee, which for 2015 will be substantially as set forth in the Company’s
communications to investors regarding plans for the year, as previously provided to you. For 2015, your annual target performance
bonus will equal 40% of your base salary, although the amount of any payment will be dependent upon actual performance as determined
by the Board of Directors or its compensation committee. You must be employed by the Company through the date on which bonuses
are paid in order to be eligible to receive a bonus. In order to receive a 2015 bonus, you also must have terminated your relationship
with Aspyrian Therapeutics, Inc. in accordance with this letter agreement, and your bonus for 2015 will be pro-rated for the partial
year of service.

 

 

US: 4870 Sadler Rd. Suite 300, Glen Allen, VA
23060

AU: Unit 7 27 Dale Street, Brookvale 2100 NSW

 

    	 	 

     

    

 

Scott Salka

Page 2 of 5

 

Equity Award. Promptly after the earlier of (i) the completion
by the Company of a reverse stock split that results in the Company having additional authorized but unissued shares of Common
Stock and (ii) an increase in the number authorized but unissued shares of Common Stock, in either case, which results in the number
of authorized but unissued shares of Common Stock equaling or exceeding the number of shares available for issuance under the Company’s
2013 Stock Incentive Plan (the “Plan”) at the time of such increase, the Board of Directors will grant you an option
to purchase a number of shares of Common Stock of the Company equal to four percent (4%) of the then current fully diluted number
of shares of Common Stock (assuming conversion or exercise of all outstanding convertible or exercisable securities, and including
shares available for issuance pursuant to the Plan). The exercise price of such option will be the fair market value on the date
of grant, as determined by the Board of Directors. The options shall vest with respect to one-third of the total number of shares
on the date of achievement of each milestone or as otherwise set forth on Exhibit A. Vesting will depend on your continued employment
with the Company on the date on which vesting would occur. If the milestones set forth in (a) on Exhibit A do not occur by the
date specified in such section, the option shall terminate with respect to the shares that would have otherwise vested on the attainment
of such milestone. The option shall be subject to the terms and conditions of the Plan and the option agreement to be entered between
you and the Company. The Company agrees that it will take such actions as are reasonably required so that the conditions set forth
in (i) or (ii) above are satisfied.

 

Benefits: You will be eligible to participate in the benefits
made generally available by the Company to its senior executives, in accordance with the benefit plans established by the Company,
and as may be amended from time to time in the Company’s sole discretion.

 

At-Will Employment;
Severance: The Company is an “at-will” employer. Accordingly, either you or the Company may terminate the employment
relationship at any time, with or without advance notice, and with or without cause. Upon any termination of your employment, you
will be deemed to have resigned, and you hereby resign, from the Company’s Board of Directors and from all offices and directorships
then held with the Company or any subsidiary. In the event the Company terminates your employment
without Cause,1 or you terminate your employment for
Good Reason,2 you will be eligible
to receive an amount equal to twelve (12) months of your base salary, payable in the form of salary continuation (“Severance
Pay”). Your eligibility for this Severance Pay is conditioned upon your execution of a release of claims in a form provided
by the Company (the “Release”) within forty-five (45) days following your termination date and non-revocation of the
Release during any applicable statutory revocation period. If you comply with these conditions, the Severance payments will commence
on the sixtieth (60th) day following your termination date. In order to be eligible for any Severance Pay, you also must have terminated
your relationship with Aspyrian Therapeutics, Inc. in accordance with this letter agreement.

 

 

1
For purposes of this paragraph, “Cause” means (1) your gross negligence or willful failure substantially
to perform your duties and responsibilities to the Company or deliberate violation of a Company policy; your commission of any
act of fraud, embezzlement or dishonesty against the Company or any other willful misconduct that has caused or is reasonably
expected to result in material injury to the Company; your unauthorized use or disclosure of any proprietary information or trade
secrets of the Company or any other party to whom you owe an obligation of nondisclosure as a result of your relationship with
the Company; or (iv) your willful breach of any of your obligations under any written agreement or covenant with the Company,
including without limitation your obligation to cease serving as Chief Executive Officer of Aspyrian Therapeutics, Inc. within
six (6) months from the date of this letter, and that such activities do not interfere with your duties and responsibilities as
a Company employee or create a conflict of interest with the Company.

2
For the purposes of this paragraph, “Good Reason” means the occurrence at any time of any of the following
without your prior written consent: (a) removal from the position of Chief Executive Officer with respect to the Company resulting
in the material diminution in your authority, duties or responsibilities (other than a mere change in title following any merger
or consolidation of the Company with another entity); (b) the assignment of duties or responsibilities materially inconsistent
with those customarily associated with the position of Chief Executive Officer or a material diminution of your position, authority,
duties or responsibilities (other than a mere change in title following any merger or consolidation of the Company with another
entity); (c) a material reduction in your overall compensation, including your base salary and potential to earn incentive or
equity compensation; or (d) any willful failure or willful breach by the Company of any of the material obligations of this Agreement.
For purposes of this subsection, no act, or failure to act, on the Company’s part shall be deemed “willful”
unless done, or omitted to be done, by the Company not in good faith and without reasonable belief that the Company’s act,
or failure to act, was in the best interest of the Company. You may terminate your employment under this Agreement for Good Reason
at any time on or prior to the 180th day after the initial occurrence of any of the foregoing Good Reason events; provided, however,
that, within ninety (90) days of any such events having first occurred, you shall have provided the Company with notice that such
event(s) have occurred and afforded the Company thirty (30) days to cure same.

 

 

US: 4870 Sadler Rd. Suite 300, Glen Allen, VA
23060

AU: Unit 7 27 Dale Street, Brookvale 2100 NSW

 

    	 	 

     

    

 

Scott Salka

Page 3 of 5

 

Taxes: All amounts paid under
this letter shall be paid less all applicable state and federal tax withholdings (if any) and any other withholdings required by
any applicable jurisdiction or authorized by you. Notwithstanding any other provision of this letter whatsoever, the Company, in
its sole discretion, shall have the right to provide for the application and effects of Section 409A of the Code (relating
to deferred compensation arrangernents) and any related administrative guidance issued by the Internal Revenue Service. The Company
shall have the authority to delay the payment of any amounts under this Agreement to the extent it deems necessary or appropriate
to comply with Section 409A(a)(2)(B)(i) of the Code (relating to payments made to certain “key employees” of publicly-traded
companies); in such event, any such amount to which you would otherwise be entitled during the six (6), month period immediately
following your termination of employment with the Company will be paid in a lump sum on the date six (6) months and one (1) day
following the date of your termination of employment with the Company (or the next business day if such date is not a business
day), provided that you have complied with the requirements for such payment. You shall be treated as having a termination of employment
under this Agreement only if such termination meets the requirements of a “separation from service” as that term is
defined in Section 409A(a)(2)(A)(i) of the Internal Revenue Code of 1986, as amended (the “Code”) and Treas. Regs.
Section l.409A-1(h), and as amplified by any other official guidance. This Agreement is intended to comply with the provisions
of Code Section 409A; provided, however, that the Company makes no representation that the amounts payable under this Agreement
will comply with Code Section 409A and makes no undertaking to prevent Code Section 409A from applying to amounts payable under
this Agreement or to mitigate its effects on any deferrals or payments made under this Agreement.

 

Entire Agreement. Please let us know of your decision to
join the Company by signing a copy of this offer letter and returning it to us not later than May 1, 2015. This letter sets forth
our entire agreement and understanding regarding the terms of your employment with the Company and supersedes any prior representations
or agreements, whether written or oral. This letter may not be modified in any way except in a writing signed by a duly authorized
member of the Company’s Board of Directors and you. It shall be governed by California law, without regard to principles
of conflicts of laws. Your employment is contingent upon your execution of the Company’s Proprietary Information and Invention
Assignment Agreement.

 

 

US: 4870 Sadler Rd. Suite 300, Glen Allen, VA
23060

AU: Unit 7 27 Dale Street, Brookvale 2100 NSW

 

    	 	 

     

    

 

Scott Salka

Page 4 of 5

 

	Sincerely,	 
	 	 
	/s/ Jeremy Curnock Cook	 
	Jeremy Curnock Cook	 
	Chairman of the Board of Directors	 
	 	 
	ACCEPTED AND AGREED:	 
	 	 
	/s/ Scott Salka	 
	Scott Salka	 
	 	 
	28Apr15	 
	Date	 

 

 

US: 4870 Sadler Rd. Suite 300, Glen Allen, VA
23060

AU: Unit 7 27 Dale Street, Brookvale 2100 NSW

 

    	 	 

     

    

 

Scott Salka

Page 5 of 5

Exhibit A

 

Option Vesting Milestones

 

		(a)	The date on or before June 30, 2016, when the Company shall have secured at least $20
million in capital after the start of your employment, either through financings, licenses, grants or other means, to fund the
Company’s operations according to a plan approved by the Board of Directors into the second quarter of 2018.

 

		(b)	The date on which the Company shall have completed one Phase 1 human clinical trial of its phage products (delivery of final
trial report) and had the first patient dosing of a second human clinical trial, in the same or a different indication, as determined
by the Board of Directors.

 

		(c)	With respect to one-third of the total number of shares subject to your option (the “Vesting Shares”), the option
shall vest with respect to 25% of the Vesting Shares on the one-year anniversary of the start of your employment with the Company,
and thereafter with respect to 1/48th of the total number of Vesting Shares on each monthly anniversary of the start of your employment
with the Company.

 

 

US: 4870 Sadler Rd. Suite 300, Glen Allen, VA
23060

AU: Unit 7 27 Dale Street, Brookvale 2100 NSW

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