Document:

EX-10.3

 EXHIBIT 10.3 

CERULEAN PHARMA INC. 
 840
Memorial Drive 
 Cambridge, Massachusetts 02139 

January 8, 2015 
 Hercules
Technology Growth Capital, Inc. 
 400 Hamilton Avenue, Suite 310 

Palo Alto, California 94301 
 Attention: Mr. Manuel A.
Henriquez 
 Ladies and Gentlemen: 
 For good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by Cerulean Pharma Inc, a Delaware corporation (the “Company”), the Company hereby grants to Hercules Technology Growth Capital, Inc., a
Maryland corporation, in its capacity under and pursuant to the Loan Agreement (as defined below) as administrative agent for itself and the Lender (as defined in the Loan Agreement) (“Hercules”), the right to participate in and/or
designate one or more of its affiliates (Hercules, together with such affiliates, collectively, “Hercules Purchasers”) to participate in any one or more Subsequent Financings (as defined below) selected by Hercules in its sole
discretion by permitting all Hercules Purchasers who participate in such Subsequent Financings to purchase up to a maximum aggregate (for all Subsequent Financings) of $2,000,000.00 of Subsequent Financing Securities (as defined below) therein.
Hercules Purchasers shall have no obligation to purchase Subsequent Financing Securities in any Subsequent Financing. Each Hercules Purchaser acquiring Subsequent Financing Securities in a Subsequent Financing shall be an “accredited
investor” as defined in Regulation D promulgated under the Securities Act of 1933, as amended (the “Act”). 
 As used
herein: 
 “Subsequent Financing” means each sale and issuance by the Company on or after the date hereof, in a single
transactions or series of related transactions, of shares of its common stock, convertible preferred stock or other equity securities of the Company, whether or not currently authorized (or instruments exercisable for or convertible into shares of
common stock, convertible preferred stock or other equity securities of the Company), to one or more accredited investors in a private placement for cash for financing purposes in an offering that is broadly marketed to multiple investors, other
than a sale effected pursuant to an effective registration statement under the Act. 
 “Subsequent Financing Securities”
means, with respect to any Subsequent Financing, the class and series of common stock, convertible preferred stock or other equity security of the Company, whether or not currently authorized (or instruments exercisable for or convertible into
shares of common stock, convertible preferred stock or other equity securities of the Company), sold and issued by the Company to the investor purchasers in such Subsequent Financing. 

 The purchase by each Hercules Purchaser of Subsequent Financing Securities in any Subsequent
Financing shall be made, subject to the provisions of this letter agreement (and subject to Hercules’ rights set forth in the Loan Agreement (as defined below)), upon the same terms and conditions (including, without limitation, price) as
purchases by the other investor purchasers of Subsequent Financing Securities therein, and each such Hercules Purchaser shall execute the definitive stock or securities purchase agreement, investor rights agreement, stockholders agreement, voting
agreement and other agreements and documents (collectively, the “Operative Documents”) executed by such other investor purchasers in connection with such Subsequent Financing. As used herein, “Loan Agreement” means
that certain Loan and Security Agreement of even date herewith between the Company and Hercules in its capacity as administrative agent for itself and the Lenders as defined therein, as amended and/or restated and in effect from time to time. As
used herein, “Warrant” means that certain warrant issued by the Company to Hercules on the date hereof. 
 The Company
shall give Hercules not less than fifteen (15) days’ written notice prior to the anticipated closing of each Subsequent Financing summarizing the principal terms and conditions of such Subsequent Financing (including, without limitation,
price), and shall provide such drafts and definitive copies of the Operative Documents and other documents and information in connection with such Subsequent Financing as are provided to the other investor purchasers or prospective investor
purchasers of a similar amount of Subsequent Financing Securities therein. Any Hercules Purchaser may exercise its purchase rights hereunder by delivering written notice thereof to the Company no later than the later to occur of (i) five
(5) days prior to such anticipated closing, and (ii) ten (10) days after Hercules’ actual receipt of such Company notice. The Operative Documents and other materials and information provided by the Company to Hercules Purchasers
in connection with each Subsequent Financing shall be held and treated by each such Hercules Purchaser in confidence in accordance with the provisions of Section 11.12 of the Loan Agreement. All notices and other communications from the Company
to Hercules hereunder shall be given in accordance with the requirements of the notice provisions set forth in the Loan Agreement. 
 This
Agreement, and all rights and obligations hereunder, shall terminate upon the earlier of (i) such time when the Hercules Purchasers have purchased $2,000,000.00 of Subsequent Financing Securities in the aggregate, and (ii) the later of
(a) the repayment of all indebtedness under the Loan Agreement, and (b) the exercise in full of the Warrant or the expiration or termination of the exercise period for the Warrant. 

[Remainder of page left blank intentionally] 

  
 2 

 This Agreement shall be governed by, and interpreted and enforced in accordance with, the laws of
the State of New York, excluding its conflict of laws provisions that would cause the application of the laws of any other jurisdiction. 
  

			
	Very truly yours,
	
	CERULEAN PHARMA INC.
		
	By:	 	 /s/ Christopher Guiffre

	Name:	 	 Christopher Guiffre

	Title:	 	 Chief Operating Officer

 Acknowledged and agreed to: 
  

			
	HERCULES TECHNOLOGY GROWTH
	CAPITAL, INC.
		
	By:	 	 /s/ Christine Fera

	Name:	 	 Christine Fera

	Its:	 	 Director of Contract Originations

 [Signature page to Right to Invest Letter]CHIEF
OPERATING OFFICER EMPLOYMENT AGREEMENT

 

This
EMPLOYMENT AGREEMENT is made and entered into effective as of the date last signed below (the “Effective Date”) by
and between Surna, Inc. (the “Company”), and Bryon Keith Jorgenson of 6825 Black Duck Circle, Lino Lakes, MN 55014,
the undersigned individual (“COO”).

 

RECITAL

 

WHEREAS,
the COO is willing to be employed by the Company, and the Company is willing to employ the COO, on the terms, covenants and conditions
hereinafter set forth; and

 

NOW,
THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth, the Company and COO agree as follows:

 

1.            Employment.

 

(a)         Term.
The Company hereby employs COO to serve as the Chief Operating Officer beginning January 12, 2015. The term of employment shall
be for a period of three (3) years (“Employment Period”) to commence on the Effective Date.

 

(b)         Duties
and Responsibilities. COO will be responsible for all duties asked of his position by the Company and other duties as agreed
upon with the Company’s Board of Directors. The COO shall report to the CEO and Board of Directors. COO shall be expected
to work a minimum of four days per week at a minimum 10-12 hours per day. COO may modify to a 5 day work week, at COO’s
sole discretion, with appropriate modification of hours worked to reflect similar hours worked per week.

 

2.            Compensation.

 

(a)           Base
Salary. COO shall be paid a base salary (“Base Salary”) at the annual rate of $130,000.00. Base Salary is made
payable twice monthly or monthly at Company’s sole discretion. The Base Salary shall be reviewed mid-2015 (in or around
July or August) to determine if such Base Salary should be revised or changed. Any change or revision to the Base Salary shall
not affect the other provisions and restrictions in this Employment Agreement.

 

(b)           Payment.
Payment of the Base Salary, as discussed in Section 2(a), shall be made in accordance with the relevant Company policies, including
normal payroll practices, and shall be subject to all applicable employment and withholding taxes. It is understood and agreed
to, by both the COO and the Company, that payment of the Base Salary will commence upon hiring and subject to normal Company pay
periods. Additionally, the COO and the Company agree that should cash shortfalls preclude payment of the COO’s salary that
any unpaid salary shall be accrued.

 

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(c)           Stock.
COO may be entitled to additional compensation in the form of stock options. If stock options become available, those options
shall be negotiated in a separate agreement or pursuant to Company policy or practice.

 

(d)           Vacation
and Benefits. COO shall be entitled to 4 weeks of vacation, plus holidays, leave, and other benefits, if available.

 

(e)           Signing
Bonus. COO will receive a signing bonus of $15,000.00 from Company. In addition, COO shall receive 1,200,000 options of Company’s
common stock subject to a one year cliff, with 25% earned one year following the date employment begins for COO, and thereafter
accruing monthly (on a 25% annual basis) for three years thereafter.

 

(f)           Moving
Reimbursement. Up to a maximum of $20,000.00, COO shall receive reimbursement of actual expenses, as an expense report, for
costs incurred as a result of moving. This one time reimbursement occurrence is planned for mid-Summer 2015 as COO plans on completing
said move near in time to this date.

 

(g)           Moving
Work Day Offset. Until fully moved to Colorado, Company permits COO to treat every other weekend as a 4 day weekend (Friday-Monday)
for the purpose of facilitating Minnesota home sale and necessary relocation preparations.

 

(h)           Additional
Understandings: MIROPEX, LLC Consulting Client Transition:

 

(i)
Company acknowledges that there will be a transition period after COO’s start date to wind down services to existing MIROPEX,
LLC consulting clients.

 

(ii)
COO commits to transition out of MIROPEX, LLC consulting services as quickly as practicable without creating unreasonable commercial
issues for Company or the existing MIROPEX clients.

 

(iii)
Consulting activity will occur outside of the Company work week as defined above, and all Company commercial requirements shall
take priority over MIROPEX transition activities.

 

(iv)
COO estimates the transition to extend through 1st Quarter of 2015.

 

3.            COO’s
Business Activities. During the term of his Agreement, COO shall not engage in any business activity or venture, except those
which will not impair COO’s ability to properly meet his obligations to the Company. COO shall devote the substantial portion
of his entire business time, attention and energy, exclusively to the business and affairs of the Company and its affiliates.
With permission of the Board of Directors of the Company, COO may serve as a member of the board of directors, or officer, of
other organizations that do not compete with the Company, and may participate in other professional, civic, governmental organizations
and activities that do not materially affect his ability to carry out his duties to the Company.

 

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4.           At-Will
Employment. Nothing in this Agreement shall be construed as a guarantee of employment or continued employment. COO and
the Company agree that COO’s employment with the Company is at will and employment may be terminated at any time, with or
without cause.

 

5.            Termination
of Employment. The Company or the COO may terminate COO’s employment at any time in writing. In the event COO provides
notice of termination, the Company may elect to accelerate the effective date of termination.

 

(a)         Resignation.
Upon termination of employment, COO shall be deemed to have resigned from the Board of Directors of the Company if she is a director.

 

(b)         Cooperation.
After notice of termination, COO shall cooperate with the Company, as reasonably requested by the Company, to effect a transition
of COO’s responsibilities and to ensure that the Company is aware of all matters being handled by COO.

 

(c)         Severance.
Company agrees to pay COO six month’s severance if terminated upon change of control, change of employment or termination
without cause.

 

6.            Disability
of COO. The Company may terminate this Agreement without liability if COO shall be permanently prevented from properly performing
his essential duties hereunder with reasonable accommodation by reason of illness or other physical or mental incapacity for a
period of more than one hundred twenty (120) consecutive days. Upon such termination, COO shall be entitled to all accrued but
unpaid Base Salary and vacation.

 

7.            Death
of COO. In the event of the death of COO during the Employment Period, the Company’s obligations hereunder shall automatically
cease and terminate; provided, however, that within 15 days the Company shall pay to COO’s heirs or personal representatives
COO’s Base Salary and accrued vacation accrued at the date of death.

 

8.            Company
Property. All work performed, notes, records, manuals, work papers, financial statements, operating documents, marketing
reports, and all other materials used or created in the conduct of COO’s work shall belong to the Company (“Company
Property”). COO shall have no right to retain such Company Property or copies of any Company Property and shall surrender
such Company Property upon termination of employment. COO agrees that any patentable inventions or copyrightable works related
to the work performed are Company Property. Further, any patentable inventions or copyrightable works conceived, created or improved
by employee are the sole property of the Company, and any patents or copyrights that shall issue shall immediately become the
property of the Company. COO agrees to fully cooperate in the prosecution or filing of patent or copyright applications, and to
assign all interests in the rights to all issues patents and copyrights to the Company, by formal act and deed, without further
or additional consideration.

 

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9.           Confidential
Information. COO acknowledges that by virtue of this employment, she will acquire confidential and proprietary information,
including, but not limited to, information that relates to the Company’s operations, trade secrets, design information,
proprietary information, intellectual property information, customer and clients lists, personnel information, financial information,
business plans, and marketing information of the Company (“Confidential Information”). COO agrees not to disclose
or allow others to disclose any Confidential Information either during the term of this Agreement or upon termination of employment.

 

As
COO, you agree to return all Confidential Information, including any trade secret information within three (3) calendar days following
the termination of your employment for any reason. To the extent you maintain Confidential Information and/or Trade Secrets in
electronic form on any computers or other electronic devices owned by you, you will agree to irretrievably delete all such information
and to confirm the fact of deletion in writing within three (3) calendar days following termination of employment with the Company.
You also agree to return all property in your possession at the time of the termination of the employment with the Company, including,
but not limited to, all documents, records, cd’s, dvd’s, and other media of every kind and description relating to
the Business of the Company and its customers, company documents, proprietary information, intellectual property information,
and any and all copies, in whole or in part, whether or not prepared by you, all of which shall remain the sole and exclusive
property of the Company.

 

10.          Restriction
on Competition. COO and the Company agree that, in return for the payment of the Base Salary by the Company, to Employee,
the receipt and sufficiency of which are hereby acknowledged by COO, the parties agree that: during employment with the Company,
and for one (1) year after the termination of employment, COO shall not in any matter, directly or indirectly, including, but
not limited to, as an individual, or as an employee (including acting as employee for a current or former client of the Company),
partner, or shareholder of a company, partnership or professional corporation, consultant, or independent contractor with a competitor
of the Company, anywhere in the United States:

 

(a)         Call
upon, accept or solicit any of the present clients or customers of the Company for the purpose of performing or having another
person or party perform professional or consulting services of any kind, either directly or indirectly.

 

(b)         In
any way employ, seek to employ or solicit for employment any person who is an employee or agent of the Company or who has been
and employee or agent for the Company within six (6) months prior to termination of this Agreement.

 

(c)         Interfere
in any manner with the Company’s continuing business relationship with any present clients or customers of the Company.

 

The
parties hereto agree that the Company will be irreparably harmed in the event of a breach of any of the covenants contained in
the provisions of this paragraph 10. In the event of such a breach, the parties agree that the Company shall have the right to
an injunction to prevent any such breach and to pursue any and all other concurrent and legal remedies. The parties agree that
damages for any breach under this paragraph 10 are not readily ascertained. Should the Company bring an action in a court of competent
jurisdiction to enforce any of the provisions thereof, and prevail on any aspect of such action, COO agrees to pay reasonable
attorney’s fees, costs, and disbursements incurred by the Company in such action.

 

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11.          Assignment
and Transfer. COO’s rights and obligations under this Agreement shall not be transferable by assignment or otherwise,
and any purported assignment, transfer or delegation thereof shall be void. This Agreement shall inure to the benefit of, and
be binding upon and enforceable by, any purchaser of substantially all of Company’s assets, any corporate successor to Company
or any assignee thereof.

 

12.          No
Inconsistent Obligations. COO is aware of no obligations, legal or otherwise, inconsistent with the terms of this Agreement
or with his undertaking employment with the Company. COO will not disclose to the Company, or use, or induce the Company to use,
any proprietary information or trade secrets of others. COO represents and warrants that she has returned all property and confidential
information belonging to all prior employers.

 

13.          Miscellaneous.

 

(a)         Attorneys’
Fees. Should either party to this Employment Agreement, or any heir, personal representative, or successor of either party,
resort to legal proceedings in connection with this Agreement or COO’s employment with the Company, the party or parties
prevailing in such legal proceedings shall be entitled, in addition to such other relief as may be granted, to reasonable attorneys’
fees and costs in such legal proceedings from the non-prevailing party or parties.

 

(b)
         Governing Law. This Agreement shall be governed by and construed
in accordance with the laws of the State of Colorado without regard to conflict of law principles.

 

(c)
         Entire Agreement. This Agreement contains the entire agreement and
understanding between the parties hereto and supersedes any prior or contemporaneous written or oral agreements, representations
and warranties between them respecting the subject matter hereof.

 

(d)
         Amendment. This Agreement may be amended only by a writing signed
by COO and by a duly authorized representative of the Company.

 

(e)
         Severability. If any term, provision, covenant or condition of this
Agreement, or the application thereof to any person, place or circumstance, shall be held to be invalid, unenforceable or void,
the remainder of this Agreement, and such term, provision, covenant or condition as applied to other persons, places and circumstances
shall remain in full force and effect.

 

(f)
         Construction. The headings and captions of this Agreement are provided
for convenience only and are intended to have no effect in construing or interpreting this Agreement. The language in all parts
of this Agreement shall be in all cases construed according to its fair meaning and not strictly for or against the Company or
COO.

 

(g)
         Rights Cumulative. The rights and remedies provided by this Agreement
are cumulative, and the exercise of any right or remedy by either party (or by his or its successor), pursuant to this Agreement,
shall not preclude or waive its right to exercise any or all other rights and remedies.

 

(h)
         Non-waiver. No failure or neglect of either party to exercise any
right, power or privilege shall constitute a waiver. All waivers by either party must be contained in a written instrument signed
by the party to be charged and, in the case of the Company, by an officer of the Company (other than COO) or other person duly
authorized by the Company.

 

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(i)
         Remedy for Breach; Attorneys’ Fees. The parties agree that,
in the event of breach or threatened breach of any covenants of COO, the damage or imminent damage to the value and the goodwill
of the Company’s business shall be inestimable, and that therefore any remedy at law or in damages shall be inadequate.
Accordingly, the parties agree that the Company shall be entitled to injunctive relief against COO in the event of any breach
or threatened breach of any of such provisions by COO, in addition to any other relief (including damages) available to the Company
under this Agreement or under law. The prevailing party in any action instituted pursuant to this Agreement shall be entitled
to recover from the other party its reasonable attorneys’ fees and other expenses incurred in such action.

 

(j)         Notices.
Any notice, request, consent or approval required or permitted to be given under this Agreement or pursuant to law shall be sufficient
if in writing, and if and when sent by certified or registered mail, with postage prepaid, to COO’s residence (as noted
in the Company’s records), or to the Company’s principal office, as the case may be.

 

(k)         Assistance
in Litigation. COO shall, during and after termination of employment, upon reasonable notice, furnish such information and
proper assistance to the Company as may reasonably be required by the Company in connection with any litigation in which it or
any of its subsidiaries or affiliates is, or may become a party; provided, however, that such assistance following termination
shall be furnished at mutually agreeable times and for mutually agreeable compensation.

 

14.           Acknowledgment.
COO acknowledges that he has read and understands this Agreement and agrees to abide by its terms.

 

IN
WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the date set forth below.

   

	SURNA,
    INC.	 	CHIEF OPERATING OFFICER:
	 	 	 	 	 
	By:
    	/s/
    Tom Bollich	 	By:
    	 /s/
    Bryon Keith Jorgenson
	Name: 	Tom Bollich	 	Name: 	Bryon Keith Jorgenson
	Title: 	Chief Executive
    Officer	 	Title: 	Chief Operating
    Officer
	Date: 	January 5,
    2015	 	Date: 	January 5, 2015

 

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