Document:

DC6618.pdf -- Converted by SEC Publisher 4.2, created by BCL Technologies Inc., for SEC Filing

	
Exhibit 10.1

	
CONSULTING AGREEMENT

     This CONSULTING AGREEMENT (“Agreement”) is made as of this 27th day of April, 2009 by and between Michael Gast (“Consultant”) and Genaera Corporation (“GENAERA”), located at 5110 Campus Drive, Plymouth Meeting, PA
19462.

WHEREAS, Consultant was formerly employed by GENAERA;

     WHEREAS, Consultant’s employment with GENAERA was involuntarily terminated on April 15, 2009 (the “Separation Date”) as part of a reduction in force;

     WHEREAS, GENAERA desires to retain Consultant to provide consulting services, pursuant to the terms of this Agreement, on an as-needed basis to be determined in advance of services rendered by
GENAERA, and Consultant desires to provide such consulting services; and

     WHEREAS, GENAERA and Consultant acknowledge and agree that the consulting services pursuant to this Agreement are the only services Consultant is expected to perform for GENAERA during the term of
this Agreement and the parties reasonably anticipate that such consulting services will constitute 20% or less of the average level of services provided by Consultant as an employee of GENAERA during the 36-month period immediately preceding the
Separation Date.

     NOW THEREFORE, in consideration of the mutual promises hereinafter set forth, and intending to be legally bound hereby, GENAERA and Consultant agree as follows:

	
1.      		
Subject to the terms and conditions set forth in this Agreement, GENAERA hereby engages Consultant as an independent contractor to perform services, as requested by GENAERA during the term hereof, in the area of research and
development, and Consultant hereby agrees to perform such services for GENAERA.	
	 
	
2.      		
The initial term of this Agreement shall commence April 28, 2009 and end June 30, 2009, subject to extension by written agreement of the parties.	
	 
	
3.      		
GENAERA shall compensate Consultant for the services rendered by Consultant under this Agreement as set forth in this Paragraph 3.	
	 
	 	
a.      		
GENAERA shall pay Consultant $144.23 per hour for services rendered payable monthly within 30 days of receipt of Consultant’s invoice. Invoices shall be submitted
to:	
	 

	
Genaera Corporation

Attn: Accounts Payable

5110 Campus Drive

Plymouth Meeting, PA 19462

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b.      		
GENAERA shall reimburse Consultant for (i) out-of-pocket expenses reasonably incurred by Consultant in performing his or her obligations hereunder, including postage, overnight courier and duplicating expenses, and (ii)
out-of-pocket travel, hotel and meal expenses reasonably incurred by Consultant, provided that the expense was requested or approved in advance by GENAERA.	
	 
	
4.      		
This Agreement will be effective for the term stated above unless earlier terminated by GENAERA upon five (5) days written notice to Consultant. Any such termination shall not affect the rights or obligations of either party
accruing prior thereto.	
	 
	
5.      		
Consultant will return to GENAERA any property of GENAERA that has come into his or her possession, upon the request of GENAERA, and, in any event, upon termination of this Agreement.	
	 
	
6.      		
Consultant shall not disclose any information relating to the business or technology of GENAERA to any third party, or use any such information for any purpose, except to perform the services as indicated in this Agreement.
Additionally, Consultant shall not use any material, compounds, chemicals, biologicals, or derivatives thereof which may be provided by GENAERA	
	 
	 	
("Materials"), except as necessary to perform the services an indicated in this Agreement. Nothing contained herein shall be deemed to be a license to Consultant to any GENAERA technology or Materials. No copies are to be made of
any proprietary or confidential information of GENAERA that is provided to Consultant in tangible form, and all such tangible information shall remain GENAERA property. If Consultant is requested or required (by oral questions, interrogatories,
request for information or documents, subpoena, civil investigation demand or similar process) to disclose any proprietary or confidential information of GENAERA, Consultant shall provide prompt written notice to GENAERA. The provisions of this
Section 6 shall survive the expiration or sooner termination of this Agreement.	
	 
	
7.      		
Consultant acknowledges that any and all inventions and discoveries, whether or not patentable, that he or she conceives and/or makes, which are a direct or indirect result of his or her performance under this Agreement and/or
relate to information received from GENAERA or Materials, shall be the sole property of GENAERA, and shall be promptly disclosed to GENAERA. GENAERA shall have the sole right to use, sell, license, publish or otherwise disseminate or transfer rights
in any such invention or discovery. Consultant shall execute all applications, assignments or other instruments which GENAERA shall deem necessary or useful in order to apply for and obtain copyrights and Letters Patent in the United States and any
foreign countries, or other protections for any such invention and discovery. Consultant shall assign, grant and convey to GENAERA all of his or her rights, title and interest, now existing or that may exist in the future, in and to any such
inventions, discoveries and copyrights. The provisions of this Section 7 shall survive the expiration or sooner termination of the term of this Agreement.	
	 

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8.      		
Consultant represents that he or she is not a party to any existing agreement which would prevent his or her fulfilling their obligations under this Agreement, and that the terms and obligations are not inconsistent with any
obligation he/she may have. Consultant is responsible for ensuring that any consulting agreement he or she enters into is not in conflict with other commitments to any other person or entity.	
	 
	
9.      		
Consultant is an independent contractor under this Agreement. Consultant is not an employee of GENAERA and will not be entitled to participate in or receive any benefit or right under any GENAERA employee benefit and welfare
plans, including, without limitation, insurance, pension, savings and security plans. The Consultant expressly acknowledges and agrees that the Consultant shall be responsible for all taxes imposed pursuant to the requirements of applicable local,
state and federal law on all fees and compensation received under this Agreement.	
	 
	
10.      		
This Agreement constitutes the sole agreement between Consultant and GENAERA with respect to the services to be performed by Consultant hereunder and shall supersede all prior agreements and understandings with respect thereto. No
change, modification, alteration or addition to any provision of this Agreement shall be binding unless in writing and signed by both Consultant and a duly authorized representative of GENAERA.	
	 
	
11.      		
This Agreement shall become binding when any one or more counterparts hereof, individually or taken together, shall bear the signatures of Consultant and GENAERA. This Agreement may be executed in two or more counterparts, each of
which shall be deemed to be an original as against any party whose signature appears therein, but all of which together shall constitute one in the same instrument.	
	 
	
12.      		
This Agreement shall be construed, interpreted and applied in accordance with laws in the Commonwealth of Pennsylvania.	
	 
	
13.      		
Consultant certifies that his or her Social Security Number is 
______________
. Consultant acknowledges that GENAERA will rely upon the foregoing certification in filing certain documents and instruments required by law in
connection with this Agreement including, without limitation, Form 1099 under the Internal Revenue Code of 1986, as amended (or any successor form).	
	 

	
[SIGNATURE PAGE FOLLOWS]

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

	
 
		
 		
 
		
 		
GENAERA CORPORATION 
	
	
		
		

		
		

	
	
Dated: 
		
 		
April 27, 2009 
		
 		
By: 
		
 		
/s/ John. L Armstrong, Jr. 
	
	
		
		
		
		
		
		

	
	
 
		
 		
 
		
 		
Name: 
		
 		
John L. Armstrong, Jr. 
	
	
		
		
		
		
		
		

	
	
 
		
 		
 
		
 		
Title: 
		
 		
President and Chief Executive Officer 
	
	
 
	
	
 
		
 		
 
		
 		
CONSULTANT 
	
	
		
		

		
		

	
	
Dated: 
		
 		
April 27, 2009 
		
 		
By: 
		
 		
/s/ Michael J. Gast 
	
	
		
		
		
		
		
		

	
	
 
		
 		
 
		
 		
Name: Michael J. Gast, M.D., Ph.D. 
	

4DC6620.pdf -- Converted by SEC Publisher 4.2, created by BCL Technologies Inc., for SEC Filing

	
Exhibit 10.2

	
[GENAERA LETTERHEAD]

	
April 15, 2009

	
Michael Gast

c/o Genaera Corporation

5110 Campus Drive

Plymouth Meeting, PA 19462

	
Dear Mike:

As has been discussed, I regret that it has become necessary to terminate your employment with Genaera Corporation (“Genaera”), effective April 15, 2009 (the “Separation Date”). The purpose of this
letter agreement is to confirm the terms of your separation.

     1. Regardless of whether you sign this letter agreement, you will receive your regular salary through the Separation Date. Your health insurance coverage under Genaera’s health care plan
will end on the Separation Date. After that date, you will be eligible to participate in Genaera’s health care plans as offered to active employees under the provisions of COBRA. You are being provided with COBRA information under separate
cover along with information regarding the disposition of your 401(k) plan assets. Your participation in all other Company benefit plans will end on the Separation Date. Accrued but unused vacation time as of the Separation Date will be paid in the
first normal pay cycle post-Separation Date, as a lump-sum at your most current salary rate, less applicable tax withholding.

     2. Provided that you return a signed copy of this letter agreement within 45 days after you receive it, you also will receive the following, to which you would not otherwise be
entitled:

     a. A lump sum severance payment equal to twelve (12) months salary or such greater amount to which you may be entitled under the Change of Control Agreement between you and Genaera dated as of
March 9, 2006, as amended (the “Change of Control Agreement”), less applicable tax withholdings, payable as soon as practicable following the date that is eight days after you return a signed copy of this letter agreement; provided however, that such payment shall be delayed to the extent necessary to avoid the imposition of tax pursuant to Section 409A of the Internal Revenue Code; and

     b. If you timely and validly elect to purchase COBRA continuation coverage under Genaera’s group health plan, Genaera will continue to pay the applicable premiums for twelve (12) months
following the Separation Date; provided however, that you continue to be eligible for COBRA continuation coverage during such period. Thereafter, you may be eligible to
continue coverage under COBRA at your own cost. All COBRA benefits are available only during the time that you are not eligible for Medicare or group health plan coverage through another employer. Should you obtain such coverage, it is your
obligation to immediately notify Genaera.

     3. All benefits of any kind, other than as expressly provided in this letter agreement, will cease as of the Separation Date.

     4. You agree not to engage in any conduct, or make any statements or representations that disparage, demean or impugn Genaera or its parents, subsidiaries or affiliates, or any of their
respective directors, managers, partners, officers, employees or consultants.

     5. You agree that, after the Separation Date, you remain bound by and will continue to comply with the Company’s policies relating to proprietary information, including but not limited to
those contained in the proprietary information agreement attached hereto as Attachment A, which you executed and delivered to Genaera when you first became an employee of Genaera.

     6. You agree to return on or before the Separation Date, in good working condition, all equipment or property which had been on loan to you while you were an employee of Genaera, regardless of
current location, including without limitation any mobile telephones, laptop computers, security access cards, and credit cards. In addition, on or before the Separation Date, you shall deliver to Genaera any documents, files, papers, computer
disks, or otherwise (and all copies thereof) containing any information relating to or concerning Genaera, regardless of current location. To the extent you have any such information in electronic or computer format, you shall delete it.

     7. In consideration of the benefits you will receive under paragraph 2 of this letter agreement, to which you would not otherwise be entitled, you hereby release and discharge Genaera, and its
affiliates, parents, subsidiaries, successors and predecessors, and all of their respective employees, agents, shareholders, officers and directors (collectively referred to in this letter as “the Company”) from any and all claims and/or
causes of action, known and unknown, which you may have or could claim to have against the Company up to and including the date of signing this agreement. This general release includes, but is not limited to, all claims arising from or during your
employment or as a result of the end of your employment and all claims arising under federal, state or local laws prohibiting employment discrimination based upon age, race, sex, religion, handicap, national origin or any other protected
characteristic, including but not limited to any and all claims arising under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Pennsylvania Human Relations Act, and any other state or federal statute, as well
as any claim for breach of contract, wrongful termination, defamation, interference with contractual/prospective economic advantage, invasion of privacy, promissory estoppel, negligence, breach of the covenant of good faith and fair dealing, fraud,
emotional distress, and any other common law claims under the laws of any jurisdiction.

     You represent and warrant that you have not filed any complaints against the Company with any administrative agency, state or federal court. You further agree that you will not file a complaint
with an agency or a lawsuit in court asserting any claims released above and that if you do assert a claim which is found to be barred in whole or part by this general release, you will pay the legal fees incurred by the Company in defending those
claims found to be barred. The only exception to the foregoing provision regarding the reimbursement of costs and attorneys’ fees is to the extent the provision relates to claims under the Age Discrimination in Employment Act in which you are
contesting the validity of this separation agreement and general release.

     8. You agree that you shall not disclose the contents of this letter agreement to any person or entity (other than your attorney, accountant, advisor, and spouse, all of whom shall be bound by
this confidentiality provision), unless required to do so by law.

     9. The invalidity or unenforceability of any clause of this letter agreement shall not affect the validity or enforceability of any other clause.

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     10. The agreement set forth in this letter (a) supercedes any prior understanding, agreement, practice or contract, oral or written, between you and Genaera relating to your employment or
compensation, except for the Change of Control Agreement; (b) may be modified only by a writing signed by both parties; (c) is not assignable or transferable by you; and (d) will be governed by the substantive law of the Commonwealth of
Pennsylvania.

This is a very important document and you should thoroughly review and understand the terms and effect of this document before signing it. By signing this letter agreement you will be releasing the Company from all
liability to you. This is known as a “General Release.” Therefore, you should consult with an attorney before signing this letter agreement and General Release. You have 45 days from the date of the distribution of these materials to
consider this document. If you have not returned a signed copy of the letter agreement by that time, we will assume that you have elected not to sign it and the offer will be considered withdrawn. If you choose to sign the letter agreement, you will
have an additional 7 days following the date of your signature to revoke the letter agreement and the agreement shall not become effective or enforceable until the revocation period has expired. Any revocation must be in writing and must be received
by Genaera within the 7 day revocation period.

By signing below you agree to be legally bound by the terms of this letter agreement and acknowledge that you have carefully read and completely understand the terms of this letter agreement and are signing it knowingly,
voluntarily and without duress, coercion or undue influence. You further agree that this letter contains the entire agreement between you and Genaera. You acknowledge that, in executing this letter agreement, you have not relied on any
representation or statement not contained in this letter agreement with respect to the subject matter of this letter agreement.

	
Genaera Corporation

/s/ John L. Armstrong, Jr. 

John L. Armstrong, Jr.

President and Chief Executive Officer

	
Acknowledged and agreed to:

/s/ Michael J. Gast________________________

Michael Gast

Dated: April 27, 2009_____________________

	
Witness:

	
By: /s/ Jennifer L. Bilotti_________________

Dated: April 27, 2009_____________
 
______

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Attachment A

Proprietary Information Agreement

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