Document:

ex103stockoptionagreemen

                          PACIFIC MERCANTILE BANCORP                                  2019 EQUITY INCENTIVE PLAN                                 STOCK OPTION AGREEMENT                                  Type of Option:  [AWARD NAME]    This Stock Option Agreement (the “Agreement”) is entered into as of [GRANT DATE] (the   “Grant Date”) by and between PACIFIC MERCANTILE BANCORP, a California corporation   (the “Company”), and [PARTICIPANT NAME] (the “Optionee”) pursuant to the Company’s   2019 Equity Incentive Plan (the “Plan”).  Unless otherwise defined in this Agreement, terms   with initial capital letters shall have the meanings set forth in the Plan.          1.    Grant of Option.  The Company hereby grants to Optionee an option (the   “Option”) to purchase all or any portion of a total of [TOTAL AWARDS] shares (the “Shares”)   of the Common Stock of the Company at a purchase price of [GRANT PRICE] per Share (the   “Exercise Price”), subject to the terms and conditions set forth herein and the provisions of the   Plan.  If the Type of Option noted above is “Option (ISO)”, then this Option is intended to   qualify as an “incentive stock option” as defined in Code Section 422.  If this Option fails in   whole or in part to qualify as an ISO, or the Type of Option noted above is “Option (NQ)”, then   this Option shall to that extent constitute a Nonqualified Stock Option.          2.    Vesting of Option.                 (a)   The right to exercise this Option shall vest as follows:    [VEST SCHEDULE TABLE]    From and after the date that any installment of the Shares become vested, but subject to the   provisions of Paragraph 2(b) hereof, Optionee shall be entitled to exercise the vested portion of   this Option at any time in whole or from time to time in part as the Optionee desires.                (b)   No additional Shares shall vest after the date of termination of Optionee’s   Continuous Service, but this Option shall continue to be exercisable in accordance with Section   3 hereof with respect to that number of Shares that have vested as of the date of termination of   Optionee’s Continuous Service.            3.    Term of Option.  Subject to Section 14 hereof, Optionee’s right to exercise this   Option shall terminate upon the first to occur of the following:                 (a)   the expiration of ten (10) years from the Grant Date;                (b)   the expiration of three (3) months from the date of termination of   Optionee’s Continuous Service if such termination occurs for any reason other than Disability   or death of the Optionee, voluntary resignation by the Optionee, or termination of the Optionee    SMRH:4832-4754-5239.3                 -1-                                              

 

    by the Company for Cause; provided, however, that if Optionee dies during such three-month   period the provisions of Section 3(e) below shall apply;                (c)   the expiration of three (3) months from the date of termination of   Optionee’s Continuous Service if such termination occurs due to voluntary resignation;   provided, however, that if Optionee dies during such three-month period the provisions of   Section 3(e) below shall apply;                (d)   the expiration of one (1) year from the date of termination of Optionee’s   Continuous Service if such termination is due to the Disability of the Optionee;                (e)   the expiration of one (1) year from the date of termination of Optionee’s   Continuous Service if such termination is due to Optionee’s death or if Optionee’s death occurs   during either the three-month periods following termination of Optionee’s Continuous Service   pursuant to Section 3(b) or 3(c) above, as the case may be;                (f)   the date of termination of Optionee’s Continuous Service if such   termination is due to the termination of the Optionee by the Company for Cause, as such term is   defined below; or                (g)   upon the consummation of a Change of Control, unless otherwise   provided pursuant to Section 9 below.    Notwithstanding the foregoing, Optionee’s right to exercise this Option may be suspended by   the Committee in accordance with Section 10 hereof.  After such suspension, Optionee’s right   to exercise this Option shall be terminated or reinstated upon a determination that Cause for   termination of the Optionee’s Continuous Service does or does not exist, respectively.     For purposes of this Agreement and as used herein, the term “Cause” means, with respect to the   Optionee, the occurrence of any of the following: (i) Optionee’s personal dishonesty, willful   misconduct, or breach of fiduciary duty involving personal profit, (ii) Optionee’s continuing   intentional or habitual failure to perform stated duties, (iii) Optionee’s violation of any   law  (other than minor traffic violations or similar misdemeanor offenses not involving moral   turpitude), including but not limited to any state or federal banking or securities law, (iv)   Optionee’s willful and intentional violation of the bylaws, rules, policies or resolutions of the   Company or Pacific Mercantile Bank, a California banking corporation, or the rules or   regulations of or any final order issued by the Federal Reserve System, the California   Department of Financial Institutions, or the Federal Deposit Insurance Corporation, (v)   Optionee’s material breach of any provision of an employment or independent contractor   agreement with the Company, or (vi) any other act or omission by Optionee that could   reasonably be expected to adversely affect the Company’s business, financial condition,   prospects and/or reputation.  In each of the foregoing subclauses (i) through (vi), whether or not   “Cause” exists will be determined in accordance with the Plan.  Optionee’s Continuous Service   shall be deemed to have been terminated for Cause if, after Optionee’s Continuous Service has    SMRH:4832-4754-5239.3                 -2-                                              

 

    terminated, facts and circumstances are discovered that would have justified a termination of   Optionee’s Continuous Service for Cause.          4.    Exercise of Option.  On or after the vesting of any portion of this Option in   accordance with the terms of this Agreement or the Plan, and until termination of the right to   exercise this Option in accordance with this Agreement or the Plan, the portion of this Option   which has vested may be exercised in whole or in part by the Optionee (or, after his or her   death, by the person designated in Section 5 below) upon delivery of the following to the   Company at its principal executive offices:                 (a)   a written notice of exercise which identifies this Agreement and states the   number of Shares then being purchased (but no fractional Shares may be purchased);                (b)   a check or cash in the amount of the Exercise Price (or payment of the   Exercise Price in such other form of lawful consideration as the Committee may approve from   time to time under the provisions of Section 6.5 of the Plan); and                (c)   a check or cash in the amount reasonably requested by the Company to   satisfy the Company’s withholding obligations under federal, state or other applicable tax laws   with respect to the taxable income, if any, recognized by the Optionee in connection with the   exercise of this Option (unless the Company and Optionee shall have made other arrangements   for deductions or withholding from Optionee’s wages, bonus or other compensation payable to   Optionee, or by the withholding of Shares issuable upon exercise of this Option or the delivery   of Shares owned by the Optionee in accordance with Section 5.4 of the Plan, provided such   arrangements satisfy the requirements of applicable tax laws).          5.    Death of Optionee; No Assignment.  The rights of the Optionee under this   Agreement may not be assigned or transferred except by will or by the laws of descent and   distribution, and may be exercised during the lifetime of the Optionee only by such   Optionee.  Any attempt to sell, pledge, assign, hypothecate, transfer or dispose of this Option in   contravention of this Agreement or the Plan shall be void and shall have no effect.  If the   Optionee’s Continuous Service terminates as a result of his or her death, Optionee’s rights   hereunder shall automatically accelerate immediately and Optionee’s legal representative, his or   her legatee, or the person who acquired the right to exercise this Option by reason of the death   of the Optionee (individually, a “Successor”) shall succeed to the Optionee’s rights and   obligations under this Agreement.  After the death of the Optionee, only a Successor may   exercise this Option.          6.    Disability of Optionee. If the Optionee’s Continuous Service terminates as a   result of his or her Disability, Optionee’s rights hereunder shall automatically accelerate   immediately and Optionee or Optionee’s Successor, as applicable, shall succeed to the   Optionee’s rights and obligations under this Agreement.            7.    Receipt of Plan by Optionee.  Optionee acknowledges receipt of a copy of the   Plan (and the Plan’s prospectus) and understands that all rights and obligations connected with   this Option are set forth in this Agreement and in the Plan.    SMRH:4832-4754-5239.3                 -3-                                              

 

          8.    Adjustments Upon Changes in Capital Structure .  If the outstanding Shares   are hereafter increased or decreased or changed into or exchanged for a different number or kind   of shares or other securities of the Company by reason of a stock split, combination of shares,   reclassification, stock dividend or other similar change in the capital structure of the Company,   then appropriate adjustment shall be made by the Committee to the number of Shares subject to   the unexercised portion of this Option and to the Exercise Price per Share, in order to preserve,   as nearly as practical, but not to increase, the benefits of the Optionee under this Option, in   accordance with the provisions of Section 11.1 of the Plan.          9.    Change of Control.                 (a)   In the event of a Change of Control , the vesting of this Option pursuant to   Section 2 above shall automatically accelerate in full upon the occurrence of a Qualifying   Termination if the Qualifying Termination occurs on the date of or within one (1) year   following a Change of Control.  For purposes of this Agreement and as used herein, “Qualifying   Termination” shall mean:                      (i)   Optionee’s Continuous Service is terminated by the Company   without Cause.                      (ii)  Optionee’s Continuous Service is terminated by Optionee within   seventy five (75) days following the initial occurrence of any of the following conditions which   arise without Optionee’s consent (and which must initially occur on or after the date of the   Change of Control) and are not remedied by the Company within thirty (30) days following   written notice to the Company of such condition from Optionee (and such Optionee notice must   be provided to the Company within thirty (30) days of the initial occurrence of the condition):          (A)   a material diminution in Optionee’s base compensation;          (B)   a material diminution in Optionee’s authority, duties or responsibilities; or          (C)   a material change in the geographic location at which Optionee must perform his   or her duties.                (b)   Following a Change of Control, this Option shall terminate on   consummation of the Change of Control if and to the extent not exercised prior thereto, unless:                      (i)   The Company succeeds in obtaining an agreement of the other   parties to the Change of Control transaction, that provides for (i) the continuance of this Option   and the Plan, subject to any adjustments in the terms of this Option determined by the   Committee to be necessary to maintain the continued effectiveness of the Option and to   preserve, but not increase, the economic benefits conferred on the Optionee by this Option   Agreement, or (ii) this Option to be assumed and the Plan to continue in full force and effect, or   (iii) there is issued by another party to the Change of Control transaction, in exchange for or in   substitution of this Option, new options or rights of comparable value covering shares of such   successor corporation or its parent corporation, with appropriate adjustments as to the number    SMRH:4832-4754-5239.3                 -4-                                              

 

    and kind of shares and Exercise Price, in which event the Plan and this Option, or the new   option substituted therefor, shall continue in the manner and under the terms so provided; or                      (ii)  the Change of Control takes the form of a purchase of newly   issued or outstanding Shares, in which the Company’s corporate structure is left unchanged and   ther e is no plan or intention to merge or combine the Company with another entity, such that the   Change of Control will have no adverse effect on the Option or the rights or economic benefits   conferred on the Optionee by this Agreement.                (c)   Following a Change in Control and notwithstanding Section 9(b) hereof,   the Company shall not compel the forfeiture of this Option except in accordance with the Plan.    The Committee shall cause written notice of the proposed transaction to be given to the   Optionee not less than fifteen (15) days prior to the anticipated effective date of the proposed   transaction; provided, however, that the failure to give, or any delay in giving, such notice shall   not invalidate or entitle Optionee or any other person to delay, the effectiveness of the Change   of Control.          10.   Suspension or Termination of Option .  If at any time (including after a notice   of exercise has been delivered) it is suspected that Optionee has committed an act that gives rise   to the Company’s right to terminate Optionee’s Continuous Service for Cause (which includes a   failure to act), the Committee may suspend Optionee’s right to exercise any Award (or vesting   or settlement of any Award) including the Option granted hereunder, pending a determination of   whether there was in fact an act giving rise to Cause.  If it is determined that Optionee has   committed an act giving rise to Cause, neither Optionee nor Optionee’s Successor shall be   entitled to exercise any outstanding Award whatsoever and all of Optionee’s outstanding   Awards, including the Option granted hereunder, shall automatically terminate without any   further action by the Company and without any consideration to Optionee.          11.   No Employment Contract Created.  Neither the granting of this Option nor the   exercise hereof shall be construed as granting to the Optionee any right with respect to   continuance of employment by the Company or any of its subsidiaries.  The right of the   Company or any of its subsidiaries to terminate at will the Optionee’s employment at any time   (whether by dismissal, discharge or otherwise), with or without Cause, is specifically reserved.          12.   No Rights as Shareholder.  The Optionee (or transferee of this Option by will   or by the laws of descent and distribution) shall have no rights as a shareholder with respect to   any Shares covered by this Option until the date of the issuance of a stock certificate or   certificates to him or her for such Shares, notwithstanding the exercise of this Option.          13.   Tax Consequences.  The Optionee has reviewed with the Participant’s own tax   advisors the federal, state, local and foreign tax consequences of this investment and the   transactions contemplated by this Agreement.  The Optionee is relying solely on such advisors   and not on any statements or representations of the Company or any of its employees or agents.   The Optionee understands that the Optionee (and not the Company) shall be responsible for the    SMRH:4832-4754-5239.3                 -5-                                              

 

    Optionee’s own tax liability that may arise as a result of the transactions contemplated by this   Agreement.          14.   Clawback Policy. By accepting this Award, the Optionee is expressly   acknowledging and agreeing to be bound by the Clawback Policy provisions contained in   Section 10.8 of the Plan.            15.   Interpretation.  This Option is granted pursuant to the terms of the Plan, and   shall in all respects be interpreted in accordance therewith.  The Committee shall interpret and   construe this Option and the Plan, and any action, decision, interpretation or determination   made in good faith by the Committee shall be final and binding on the Company and the   Optionee.            16.   Notices.  Any notice, demand or request required or permitted to be delivered by   either the Company or the Optionee pursuant to the terms of this Agreement shall be in writing   and shall be deemed given when delivered personally, deposited with a reputable courier   service, or deposited in the U.S. Mail, First Class with postage prepaid, and addressed to the   parties at the respective addresses, or such other address as a party may request by notifying the   other in writing.          17.   Employment Agreement . If any employment agreement (or other similar   written agreement) exists between Optionee and the Company as of the Grant Date and   expressly includes a different definition of “Cause” than as set forth herein, the defined term   contained in the employment agreement (or other similar written agreement) shall govern and   shall supersede the definition of Cause set forth herein.          18.   Rights and Cooperation.  The rights of the Company under this Agreement and   the Plan shall be transferable to any one or more persons or entities, and all covenants and   agreements hereunder shall inure to the benefit of, and be enforceable by the Company’s   successors and assigns. The rights and obligations of the Optionee under this Agreement may   only be assigned with the prior written consent of the Company.  The Optionee agrees upon   request to execute any further documents or instruments necessary or desirable to carry out the   purposes or intent of this Agreement.          19.   Governing Law.  The validity, construction, interpretation, and effect of this   Option shall be governed by and determined in accordance with the laws of the State of   California.          20.   Severability.  Should any provision or portion of this Agreement be held to be   unenforceable or invalid for any reason, the remaining provisions and portions of this   Agreement shall be unaffected by such holding.          21.   Counterparts.  This Agreement may be executed in two or more counterparts,   each of which shall be deemed an original and all of which together shall be deemed one   instrument.    SMRH:4832-4754-5239.3                 -6-                                              

 

          22.   Acknowledgements .  By signing below, Optionee accepts this grant of an   Option and hereby represents that Optionee: (i) agrees to the terms and conditions of the Plan   and this Agreement; (ii) has reviewed the Plan (and the Plan’s prospectus) and this Agreement   in their entirety, and has had an opportunity to obtain the advice of legal counsel and/or   Optionee’s tax advisor with respect thereto; (iii) fully understands and accepts all provisions of   the Plan and this Agreement; (iv) agrees to accept as binding, conclusive, and final all of the   Committee’s decisions regarding, and all interpretations of, the Plan and this Agreement; and   (v) agrees to promptly notify the Company in writing upon any change in Optionee’s home   address.      IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above   written.    PACIFIC MERCANTILE BANCORP                “OPTIONEE”        ______________________________            [PARTICIPANT NAME]   Signature:                                Signature:        [PARTICIPANT NAME]    Print Name:                               Print Name:    Title:          [GRANT DATE]                              [ACCEPTANCE DATE]   Date:                                      Date:                                                  SMRH:4832-4754-5239.3                 -7-EX-10.1

 Exhibit 10.1 

GENERAL RELEASE AND SEVERANCE AGREEMENT 

This General Release and Severance Agreement (the “Agreement”), dated as of May 16, 2019, is made and entered
into by and between Robert Clarke, Ph.D. (“Executive”) and Pulmatrix, Inc. (the “Company”).For good and valuable consideration, receipt of which is hereby acknowledged, in order to effect a mutually
satisfactory and amicable separation of employment from the Company and to resolve and settle finally, fully and completely all matters and disputes that now or may exist between them, as set forth below, Executive and the Company agree as follows:

 1.    Separation from Employment. Effective May 16, 2019 (the “Separation
Date”), Executive’s employment with the Company shall cease and he shall relinquish all positions, offices, directorships, and authority with the Company and any affiliates. On or before the Separation Date, Executive shall also
execute and deliver a resignation letter confirming his resignation from the Company’s Board of Directors effective as of the Separation Date. Executive acknowledges and agrees, except for the payments described hereunder and outstanding
expenses which shall be paid in accordance with Company policy, Executive has no rights to any other wages and other compensation or remuneration of any kind due or owed from the Company, including, but not limited, to all wages, reimbursements,
bonuses, advances, vacation pay, severance pay, vested or unvested equity or stock options, awards, and any other incentive-based compensation or benefits to which Executive was or may become entitled or eligible. 

2.    Employment Agreement. The employment agreement between the parties (the “Employment
Agreement”) has terminated forever and no party shall have any further obligation or liability thereunder, except that Executive acknowledges and agrees that Section 5 Prohibited Competition and Solicitation and
Section 6 Property and Records of the Employment Agreement, and all provisions thereunder, shall remain in full force and effect in accordance with their terms. 

3.    Continuing Obligations. Executive shall remain bound by, and agrees to comply with, any obligations
that survive an employment termination as set forth in any other agreement or employee policy to which he became subject during and in connection with his employment with the Company, including without limitation his continuing obligations as set
forth in the Confidentiality, Assignment of Inventions and Non-Competition Agreement he executed. 

4.    Consideration. In consideration of this Agreement and the release herein, and his compliance with his
obligations hereunder, the Company will provide Executive with the following: (i) a target Annual Performance Bonus (as defined in the Employment Agreement) for the year 2018 in the amount of $ 176,516, less applicable taxes and other
withholdings, payable on the Company’s first regular pay date following the Effective Date (as defined below); (ii) severance pay in an amount equal to Executive’s base salary of $441,291, less applicable taxes and other withholdings, for
twelve (12) months (the “Severance Period”) payable in equal installments in accordance with the normal payroll policies of the Company, with the first installment being paid on the Company’s first regular pay date
following the Effective Date (as defined below); (iii) a separation bonus in the amount of $32,885, less applicable taxes and other withholdings, which is equal to fifty percent (50%) of the target Annual Performance Bonus (as defined in the
Employment Agreement) to which Executive may have been entitled for 2019, 

  
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prorated to reflect the portion of the year in which Executive was employed prior to the Separation Date, paid on the Company’s first regular pay date following the Effective Date (as
defined below); (iv) during the Severance Period or until Executive begins employment with another employer, upon completion of appropriate forms and subject to applicable terms and conditions under the Consolidated Omnibus Budget Reconciliation Act
of 1985, as Amended, medical insurance coverage at no cost to Executive to the same extent that such insurance continues to be provided to similarly situated executives at the time of Executive’s termination; and (v) full vesting in any
and all outstanding equity awards that would have vested during the twenty-four (24) month period following the Separation Date, with the exception of the Second Option (as defined in the Employment Agreement). 

5.    Transition Services. Executive agrees to cooperate with the Company and perform such services as the
Company may reasonably request relating to the transition of his responsibilities and the Company’s matters, files and materials. Executive further agrees to assist with the execution of all documents and all other instruments which the Company
shall deem necessary to accomplish any such transition as well as cooperating with the Company in the future in relation to any queries or requests from any regulators, taxation or governmental authorities relating to the activities of the Company
and its affiliates in the period prior to the Separation Date. 
 6.    Consulting Services. In
further exchange for the consideration Executive shall receive hereunder, for a period of ninety (90) days following the Separation Date, Executive shall make himself available to provide to the Company consulting services concerning such
matters and responsibilities as are reasonably requested by the Company. Executive’s relationship with the Company in connection with the consulting services contemplated herein shall be that of independent contractor, and Executive shall not
be an employee of the Company for any purpose whatsoever, on and as of the Separation Date, such that Executive will not be entitled to the benefit of any employee plans, programs or benefits, as a result of or in connection with such consulting
services. 
 7.    Release of Claims. For and in consideration of the right to receive the consideration
described in Section 4 of this Agreement, Executive fully and irrevocably releases and discharges the Company, including all of its affiliates, parent companies, subsidiary companies, employees, owners, directors, officers, principals, agents,
insurers, and attorneys (collectively, the “Releasees”) from any and all actions, causes of action, suits, debts, sums of money, attorneys’ fees, costs, accounts, covenants, controversies, agreements, promises, damages,
claims, grievances, arbitrations, and demands whatsoever, known or unknown, at law or in equity, by contract (express or implied), in tort, or pursuant to statute, or otherwise (collectively, “Claims”) arising or existing on,
or at any time prior to, the date this Agreement is signed by Executive. Such released Claims include, without limitation, Claims relating to or arising out of: (i) Executive’s hiring, compensation, benefits and employment with the
Company, (ii) Executive’s separation from employment with the Company, and (iii) all Claims known or unknown or which could or have been asserted by Executive against the Company, at law or in equity, or sounding in contract (express
or implied) or tort, including claims arising under any federal, state, or local laws of any jurisdiction that prohibit age, sex, race, national origin, color, disability, religion, veteran, military status, pregnancy, sexual orientation, or any
other form of discrimination, harassment, or retaliation, including, without limitation, age discrimination 

  
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claims under the Age Discrimination in Employment Act; the Americans with Disabilities Act; claims under Title VII of the Civil Rights Act of 1964; the Rehabilitation Act; the Equal Pay Act; the
Family and Medical Leave Act, 42 U.S.C. §1981; the Civil Rights Act of 1991; the Civil Rights Act of 1866 and/or 1871; the Sarbanes Oxley Act; the Executive Polygraph Protection Act; the Uniform Services and Employment and Re-Employment Rights Act; the Worker Adjustment Retraining Notification Act; the National Labor Relations Act and the Labor Management Relations Act; the Massachusetts Fair Employment Practices Act, the
Massachusetts Equal Rights Act, the Massachusetts Equal Pay Act, the Massachusetts Privacy Statute, the Massachusetts Earned Sick Leave law, the Massachusetts Parental Leave law, the Massachusetts Civil Rights Act and any other similar or equivalent
state laws; and any other federal, state, local, municipal or common law whistleblower protection claim, discrimination or anti-retaliation statute or ordinance; claims arising under the Executive Retirement Income Security Act; claims arising under
the Fair Labor Standards Act; or any other statutory, contractual or common law claims. Executive does not release Executive’s right to enforce the terms of this Agreement. 

8.    No Legal Actions. Executive represents that he has not filed or caused to be filed any lawsuit,
complaint, or charge against any Releasees in any court, any municipal, state, or federal agency, or any other tribunal. To the fullest extent permitted by law, Executive agrees that he will not sue or file a complaint in any court, or file or
pursue a demand for arbitration, pursuing any Claims released under this Agreement, or assist or otherwise participate in any such proceeding. Executive represents and warrants further that he has not assigned or conveyed to any other person or
entity any of his rights vis-à-vis the Releasees, including any of the Claims released in this Agreement. He further expressly waives any claim to any monetary or
other damages or any other form of recovery in connection with any proceeding made by him in violation of this Agreement. 

9.    No Interference. Nothing in this Agreement is intended to interfere with Executive’s right to
report possible violations of federal, state or local law or regulation to any governmental or law enforcement agency or entity (including, without limitation, the Securities and Exchange Commission), or to make other disclosures that are protected
under the whistleblower provisions of federal or state law or regulation. Executive further acknowledges that nothing in this Agreement is intended to interfere with Executive’s right to file a claim or charge with, or testify, assist, or
participate in an investigation, hearing, or proceeding conducted by, the Equal Employment Opportunity Commission (the “EEOC”), any state human rights commission, or any other government agency or entity. However, by
executing this Agreement, Executive hereby waives the right to recover any damages or benefits in any proceeding Executive may bring before the EEOC, any state human rights commission, or any other government agency or in any proceeding brought by
the EEOC, any state human rights commission, or any other government agency on Executive’s behalf with respect to any claim released in this Agreement; provided, however, for purposes of clarity, Executive does not waive any right to any
whistleblower award pursuant to Section 21F of the Securities Exchange Act of 1934 or any other similar provision. 

10.    Review and Consultation. Executive acknowledges that: (a) this Agreement is written in terms and
sets forth conditions in a manner which he understands; (b) he has carefully read and understands all of the terms and conditions of this Agreement; (c) he agrees with the 

  
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terms and conditions of this Agreement; and (d) he enters into this Agreement knowingly and voluntarily. Executive acknowledges that he does not waive rights or claims that may arise
after the date this Agreement is executed, that he has been given twenty-one (21) days from receipt of this Agreement in which to consider whether he wanted to sign it, that any modifications, material or
otherwise made to this Agreement do not restart or affect in any manner the original twenty-one (21) day consideration period, and that the Company advises Executive to consult with an attorney before he
signs this Agreement. The Company agrees, and Executive represents that he understands, that he may revoke his acceptance of this Agreement at any time for seven (7) days following his execution of the Agreement and must provide notice of such
revocation by giving written notice to the Company. If not revoked by written notice received on or before the eighth (8th) day following the date of his execution of the Agreement, this
Agreement shall be deemed to have become enforceable on such eighth (8th) day (the “Effective Date”).  

11.    Return of Property. Executive represents that within ten (10) days from the date upon which this
Agreement becomes effective, he shall have returned to the Company all Company property and materials, including but not limited to, Company files, correspondence, e-mail, memoranda, models, notes, drawings,
records, plans, forecasts, reports, studies, analyses, proposals, agreements, financial information, information regarding current or prospective investors, research and development information, sales and marketing information, intangible
information stored on hard drives or thumb drives, software passwords or codes, security passwords or codes, software code, software, databases, computer-recorded information, tangible property and equipment (including, but not limited to,
computers, laptops, iPads, mobile telephones), credit cards, entry cards, identification badges and keys, and any materials of any kind which contain or embody any proprietary or confidential information of the Company (and all reproductions thereof
in whole or in part). 
 12.    Non-Disparagement. The parties
agree that goodwill and reputation of each are assets of great value to each, which have been obtained and maintained through great costs, time and effort. Therefore, the parties agree that neither shall make, publish or otherwise transmit any
disparaging or knowingly false statements, whether written or oral, regarding the other (and with respect to the Company, its officers, directors, executives, employees, contractors, consultants, products, programs, studies, business or business
practices). The Company agrees to respond to any requests for reference by complying with the Company’s policy of providing a neutral reference, including Executive’s title and dates of employment. 

13.    No Further Services. Executive agrees that he will not seek, apply for, accept, or otherwise pursue
employment, engagement, or arrangement to provide further services with or for the Company, as an employee, independent contractor or otherwise, except as provided herein. 

14.    Confidentiality of Agreement. Executive agrees that he will keep both the fact of this Agreement and
the terms of this Agreement confidential, and will not disclose the fact of this Agreement or the terms of this Agreement to anyone other than Executive’s spouse/registered domestic partner, attorney or accountant/tax advisor, unless otherwise
required to under applicable law or regulation after providing reasonable notice in writing to the Company and a reasonable opportunity to challenge any such disclosure. 

  
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 15.    Mediation/Dispute Resolution/Governing Law. 

(a)    In the event of a dispute regarding any of the terms and conditions of this Agreement, either party may request
that the other party engage in a mediation to resolve such dispute. If such request is made, the other party shall respond in writing by no later than seven (7) business days thereafter, stating whether such other party is willing to
participate in such mediation, and such mediation shall occur within thirty (30) days following such notification. If the parties are unable to agree to a mediator, then the matter shall be submitted to the mediation program conducted by the
American Arbitration Association in Boston, Massachusetts, and a mediator shall be selected pursuant to the rules applicable to such program. 

(b)    In the event that the other party declines to participate in a mediation, either party may require that the dispute
be submitted to binding arbitration, and in such event the dispute shall be settled by arbitration in accordance with the National Rules for the Resolution of Employment Disputes of the American Arbitration Association, except that both parties
agree that the matter shall be submitted to and resolved by a single arbitrator. Such arbitration shall occur in Boston, Massachusetts. Each party hereby agrees to a speedy hearing upon the matter in dispute and the judgment upon the award rendered
by the arbitrator may be entered in a court as set forth in Section (c) below. Notwithstanding anything to the contrary in the rules cited above, and unless prohibited by applicable law: (i) the costs and expenses of the arbitration,
including the arbitrator’s fees and expenses, shall be evenly split between the parties; (ii) each party shall pay for and bear the cost of his or its own experts, evidence, and counsel; and (iii) no award of punitive damages may be
rendered by the arbitrator in such proceedings. Notwithstanding the foregoing, nothing shall be deemed to limit the Company’s right to seek immediate judicial relief (including injunctive relief) in the event of a claimed breach by the
Executive of this Agreement or the Confidentiality, Assignment of Inventions and Non-Competition Agreement, or other agreement related to non-competition, non-solicitation, non-disclosure and/or intellectual property, without the need to submit to arbitration or post any bond or other financial guarantee in such court action.

 (c)    This Agreement shall be governed by and construed in accordance with the substantive laws of the Commonwealth
of Massachusetts, without giving effect to any choice or conflict of law provision or rule, and any legal action permitted by this Agreement to enforce an award under Section or for a claimed breach by the Executive of the obligations contained in
the by the Confidentiality, Assignment of Inventions and Non-Competition Agreement shall be governed by the laws of the Commonwealth of Massachusetts and shall be commenced and maintained solely in any state
or federal court located in the Commonwealth of Massachusetts, and both parties hereby submit to the jurisdiction and venue of any such court. 

16.    Voluntary. This Agreement is executed voluntarily and without any duress or undue influence on the
part or behalf of the parties hereto. The parties acknowledge that they have had ample opportunity to have this Agreement reviewed by the counsel of their choice. 

17.    Acknowledgment. Executive acknowledges and agrees that the severance payments and other consideration
provided herein are consideration to which Executive is not otherwise entitled except pursuant to the terms of this Agreement, and are being provided in exchange for Executive’s compliance with his obligations set forth hereunder. 

  
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 18.    No Admission of Liability. This Agreement shall not
in any way be construed as an admission by the Company or Executive of any acts of wrongdoing or violation of any statute, law or legal right. 

19.    No Third-Party Beneficiaries. Except as expressly provided to the contrary in this Agreement, no
third party is intended to be, and no third party shall be deemed to be, a beneficiary of any provision of this Agreement. Executive agrees that all Releasees shall be express third-party beneficiaries of this Agreement (and the release of Claims
contained herein), and shall be permitted to enforce the terms of this Agreement as if they were parties hereto. 

20.    Sole Agreement and Severability. Except as set forth herein, this Agreement is the sole, entire and
complete agreement of the parties relating in any way to the subject matter hereof. No statements, promises or representations have been made by any party to any other party, or relied upon, and no consideration has been offered, promised, expected
or held out other than as expressly set forth herein, provided only that the release of claims in any prior agreement or release shall remain in full force and effect. The covenants contained in this Agreement are intended by the parties hereto as
separate and divisible provisions, and in the event that any or all of the covenants expressed herein shall be determined by a court of competent jurisdiction to be invalid or unenforceable, the remaining parts, terms or provisions of this Agreement
shall not be affected and such provisions shall remain in full force and effect. 
 SIGNATURE PAGE FOLLOWS 

  
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 PLEASE READ CAREFULLY. THIS GENERAL RELEASE AND SEVERANCE AGREEMENT INCLUDES A RELEASE OF ANY AND ALL
CLAIMS, KNOWN OR UNKNOWN, AGAINST THE COMPANY 
  

					
	PULMATRIX, INC.	 		 	ROBERT CLARKE, Ph.D.
			
	By:    /s/ William Duke, Jr.	 		 	/s/ Robert Clarke, Ph.D.
	Title: Chief Financial Officer	 		 	Date: May 16, 2019
	Date: May 16, 2019	 		 	

  
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