Document:

Document

Exhibit 10.1

ADVISOR AGREEMENT 

This Advisor Agreement (the “Agreement”) is entered into by and between Exicure, Inc. (the “Company”) and Brian C. Bock, an individual (“Advisor”) (each of the Advisor and the Company, a “Party,” and collectively, the “Parties”) is effective as of February 4, 2022 (the “Effective Date”).

RECITALS
Whereas, the Company and the Advisor are party to that certain Employment Agreement effective April 16, 2021 as amended by the First Amendment to the Employment Agreement dated December 10, 2021 (the “Employment Agreement”);
Whereas, the Advisor is currently employed by the Company as its Chief Executive Officer;
Whereas, the Advisor will separate from his position as Chief Executive Officer of the Company effective as of the date on which the Company has hired a new Chief Executive Officer (the “Transition Date”); and
Whereas, the Company desires to retain the services of the Advisor to serve as the Special Advisor to the Chief Executive Officer and perform the services described herein from the Transition Date through the end of the Advising Period (as defined below) and the Advisor desires to be engaged by the Company to provide such services on the terms and conditions described herein from the Transition Date through the end of the Advising Period (as defined below).
Now Therefore, for the promises and covenants set forth herein and for such other good and valuable consideration, the receipt of which is hereby acknowledged, the Advisor and the Company enter into this Agreement on the following terms and conditions:

1.Transition.  Advisor will continue to be employed as the Chief Executive Officer of the Company from the Effective Date through the Transition Date. Effective as of the Transition Date, (i) the Advisor’s employment with the Company will terminate, and (ii) the Advisor will commence his service as an advisor to the Company in the role of Special Advisor to the Chief Executive Officer pursuant to the terms of this Agreement. 
2.Advising Period.  The term of the “Advising Period” is for three (3) months from the Transition Date, unless earlier terminated as provided in this Agreement. Thereafter, this Agreement will automatically renew on a quarterly basis, unless either Party terminates the Agreement prior to such quarterly anniversary date. 
3.Engagement of Advising Services. Advisor shall provide the following services as an advisor of the Company, with hours to be mutually agreed between the Parties, during the Advising Period: (i) assisting the Company in the transition of his duties to his successor, (ii) serving as a non-executive special advisor to the Chief Executive Officer and advising with respect to matters including, but not limited to, providing services to the Company relating to financing and strategic matters, and (iii) assisting with special projects, as reasonably requested and mutually agreed upon from time to time. The Advisor shall not, by virtue of the advising services provided hereunder, be considered an officer or executive of the Company or its affiliates, and he shall have no power or authority to contract in the name of or bind the Company or its affiliates.
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4.Compensation.  During the Advising Period, the Company shall provide Advisor with compensation at a flat rate of $25,000.00 per month, payable in accordance with the Company’s normal payroll practices. In addition, during the Advising Period, the Company shall reimburse the Advisor for all pre-approved reasonable expenses incurred by him in the course of performing his services under this Agreement (which expenses are consistent with the Company’s policies in effect from time to time with respect to travel and other business expenses), subject to the Company’s requirements with respect to reporting and documentation of expenses. 
5.Independent Contractor Relationship.  Executive is an independent contractor and not an employee of the Company.  Nothing in this Agreement is intended to, or should be construed to, create a partnership, agency, joint venture or employment relationship.  The manner and means by which Advisor chooses to complete the advising services are in Advisor’s sole discretion and control. Advisor shall be free at all times to arrange the time and manner of performance of the advising services.  Advisor is not required to maintain any schedule of duties or assignments. 
6.Tax Treatment.  Advisor and the Company agree that the Company will treat Advisor as an independent contractor for purposes of all tax laws (local, state and federal) and file forms consistent with that status. Advisor agrees, as an independent contractor, that neither he nor his employees are entitled to unemployment benefits in the event this Agreement terminates, or workers’ compensation benefits in the event that Advisor, or any employee of Advisor, is injured in any manner while performing obligations under this Agreement.  Advisor will be solely responsible to pay any and all local, state, and/or federal income, social security and unemployment taxes for Advisor and his employees.  The Company will not withhold any taxes or prepare W-2 Forms for Advisor, but will provide Advisor with a Form 1099, if required by law.  Advisor is solely responsible for, and will timely file all tax returns and payments required to be filed with, or made to, any federal, state or local tax authority with respect to the performance of services and receipt of fees under this Agreement. No part of Advisor’s compensation will be subject to withholding by Company for the payment of any social security, federal, state or any other employee payroll taxes.  Company will regularly report amounts paid to Advisor with the appropriate taxing authorities, as required by law. 
7.Employee Benefits.  Advisor acknowledges and agrees that he shall not receive any employee benefits of any kind from the Company as of the Transition Date.  Advisor is excluded from participating in any fringe benefit plans or programs as a result of the performance of services under this Agreement, without regard to Advisor’s independent contractor status.  In addition, Advisor (on behalf of his and on behalf of Advisor’s agents, employees, and contractors) waives any and all rights, if any, to participation in any of the Company’s fringe benefit plans or programs including, but not limited to, health, sickness, accident or dental coverage, life insurance, disability benefits, severance, accidental death and dismemberment coverage, unemployment insurance coverage, workers’ compensation coverage, and pension or 401(k) benefit(s) provided by the Company to its employees.  Notwithstanding the above, this Agreement does not amend or abrogate in any manner any benefit continuation or conversion rights provided by the provision of a benefit plan or by law arising out of Advisor’s previous employment relationship with Company.
8.Return of Company Property. All correspondence, records, documents, software, promotional materials, and other Company property including all copies, which came into the Advisor’s possession by, through or in the course of Advisor’s employment, regardless of the source and whether created by the Advisor, are the sole and exclusive property of the Company, and immediately upon the termination of this Agreement, or any time at the Company’s request, the Advisor shall return to the Company all such property of the Company. Notwithstanding the foregoing, the Advisor may retain his contacts and calendar.
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9.Conflict of Interest.  During the term of this Agreement, unless written permission is given by the Board, Advisor will not accept work, enter into a contract, or provide services to any third party that provides products or services which compete with the products or services provided by the Company nor may Advisor enter into any agreement or perform any services which would conflict or interfere with the services provided pursuant to or the obligations under this Agreement.  Advisor warrants that there is no other contract or duty on his part that prevents or impedes Advisor’s performance under this Agreement.  Advisor agrees to indemnify Company from any and all loss or liability incurred by reason of the alleged breach by Advisor of any services agreement with any third party.
10.Confidential Information.  Advisor agrees to hold Company’s Confidential Information (as defined below) in strict confidence and not to disclose such Confidential Information to any third parties.  Advisor also agrees not to use any of Company’s Confidential Information for any purpose other than performance of Advisor’s services hereunder.  “Confidential Information” as used in this Agreement shall mean all information disclosed by Company to Advisor, or otherwise, regarding Company or its business obtained by Advisor pursuant to services provided under this Agreement that is not generally known in the Company’s trade or industry and shall include, without limitation, (a) concepts and ideas relating to the development and distribution of content in any medium or to the current, future and proposed products or services of Company or its subsidiaries or affiliates; (b) trade secrets, drawings, inventions, know-how, software programs, and software source documents; (c) information regarding plans for research, development, new service offerings or products, marketing and selling, business plans, business forecasts, budgets and unpublished financial statements, licenses and distribution arrangements, prices and costs, suppliers and customers; and (d) any information regarding the skills and compensation of employees, contractors or other agents of the Company or its subsidiaries or affiliates.  Confidential Information also includes proprietary or confidential information of any third party who may disclose such information to Company or Advisor in the course of Company’s business.  Advisor’s obligations set forth in this Section shall not apply with respect to any portion of the Confidential Information that Advisor can document by competent proof that such portion: (i) is in the public domain through no fault of Advisor; (ii) has been rightfully independently communicated to Advisor free of any obligation of confidence; or (iii) was developed by Advisor independently of and without reference to any information communicated to Advisor by Company.  In addition, Advisor may disclose Company’s Confidential Information in response to a valid order by a court or other governmental body, as otherwise required by law.  All Confidential Information furnished to Advisor by Company is the sole and exclusive property of Company or its suppliers or customers.  Upon request by Company, Advisor agrees to promptly deliver to Company the original and any copies of such Confidential Information.  Notwithstanding the foregoing or anything to the contrary in this Agreement or any other agreement between Company and Advisor, nothing in this Agreement shall limit Advisor’s right to discuss Advisor’s engagement with the Company or report possible violations of law or regulation with the Equal Employment Opportunity Commission, United States Department of Labor, the National Labor Relations Board, the Securities and Exchange Commission, or other federal government agency or similar state or local agency or to discuss the terms and conditions of Advisor’s engagement with others to the extent expressly permitted by applicable provisions of law or regulation, including but not limited to "whistleblower" statutes or other similar provisions that protect such disclosure. Further, notwithstanding the foregoing, pursuant to 18 U.S.C. Section 1833(b), Advisor shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that: (1) is made in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney, and solely for the purpose of reporting or investigating a suspected violation of law; or (2) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.  Advisor’s duty of confidentiality under this Agreement does not amend or abrogate in any manner Advisor’s continuing duties under any prior agreement between Advisor and the Company.
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11.Termination. Either Party may terminate this Agreement at any time and for any reason, or no reason, upon two week’s advance written notice.  
a.Effect of Termination.  Upon any termination or expiration of this Agreement, Advisor (i) shall immediately discontinue all use of Company’s Confidential Information delivered under this Agreement; (ii) shall  delete (subject to any litigation hold relating to the Lawsuit) any such Company Confidential Information from Advisor’s computer storage or any other media, including, but not limited to, online and off-line libraries; and (iii) shall return to Company, or, at Company’s option, destroy, all copies of such Confidential Information then in Advisor’s possession.  
b.Survival.  The rights and obligations contained in Sections 5-10, 11(a), 13,-18  will survive any termination or expiration of this Agreement.
12.Indemnification.  Advisor shall indemnify and hold harmless the Company and its officers, directors, agents, owners, and employees, for any claims brought or liabilities imposed against the Company by Advisor or by any other party (including private parties, governmental bodies and courts), including claims related to worker’s compensation, wage and hour laws, employment taxes, and benefits, and whether relating to Advisor’s status as an independent contractor or any other matters involving the acts or omissions of Advisor.  Indemnification shall be for any and all losses and damages, including costs and attorneys’ fees.
13.Successors and Assigns. The Company’s rights and obligations under this Agreement will inure to the benefit of, and be binding on, a successor of the Company. No rights or obligations of the Advisor under this Agreement may be assigned or transferred by him. This Agreement may be assigned or transferred by the Company.
14.Notices.  Any notice required or permitted by this Agreement shall be in writing and shall be delivered as follows with notice deemed given as indicated: (i) by overnight courier upon written verification of receipt; or (ii) by electronic email transmission upon acknowledgment of receipt of electronic transmission.  Notice shall be sent to the Advisor at his last known address of the Advisor as set forth in the Company’s records, or to such other address as either Party may specify by notice to the other actually received.
15.Governing Law.  This Agreement shall be governed in all respects by the laws of the State of Illinois, as such laws are applied to agreements entered into and to be performed entirely within Illinois between Illinois residents.  Any suit involving this Agreement shall be brought in a court sitting in Illinois.  The Parties agree that venue shall be proper in such courts, and that such courts will have personal jurisdiction over them.
16.Severability.  Should any provisions of this Agreement be held by a court of law to be illegal, invalid or unenforceable, the legality, validity and enforceability of the remaining provisions of this Agreement shall not be affected or impaired thereby.
17.Waiver.  The waiver by Company of a breach of any provision of this Agreement by Advisor shall not operate or be construed as a waiver of any other or subsequent breach by Advisor.
18.Entire Agreement.  This Agreement constitutes the entire understanding of the Parties relating to the subject matter and supersedes any previous oral or written communications, representations, understanding, or agreement between the Parties concerning such subject matter.  This Agreement shall not be changed, modified, supplemented or amended except by express written agreement signed by Advisor and the Company.  This Agreement may 
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be executed in two or more counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, Uniform Electronic Transactions Act or other applicable law) or other transmission method and any counterpart so delivered will be deemed to have been duly and validly delivered and be valid and effective for all purposes.

[The remainder of this page is intentionally blank. Signature page follows.]
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In Witness Whereof, the Parties have executed this Agreement effective as of the date first written above.

Exicure, Inc.  

/s/ Timothy P. Walbert            
Timothy P. Walbert
Chairman of the Board of Directors

Advisor

/s/ Brian C. Bock                
                        
Brian C. Bock

			
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Exhibit 10.2

SECOND AMENDED AND RESTATED EMPLOYMENT AGREEMENT

THIS SECOND AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the "Agreement") is entered into as of January 26, 2022, by and between Exicure, Inc., a Delaware corporation (the "Company"), and Matthias Schroff, Ph.D. ("Executive") (each of the Executive and the Company, a "Party," and collectively, the "Parties"), amends and restates in its entirety the Amended and Restated Employment Agreement between the Parties effective as of December 10, 2019 (the “Executive Agreement”), that certain side letter agreement between the Parties dated June 9, 2020 (the “Side Letter”), and that certain Second Amendment to the Amended and Restated Employment Agreement between the Parties effective December 10, 2021 (the “Amendment” and together with the Executive Agreement and the Side Letter collectively, the “Prior Agreements”). This Agreement is effective as of February 4, 2022 (the "Effective Date").
WHEREAS, the Company and Executive previously entered into the Prior Agreements, pursuant to which the Executive currently serves as Chief Scientific Officer of the Company;
WHEREAS, the Company wishes to promote Executive to Chief Executive Officer;
WHEREAS, the Company and Executive desire to employ Executive as its Chief Executive Officer and Executive desires to accept such employment and to perform the duties to the Company on the terms and conditions hereinafter set forth in this Agreement; and
WHEREAS, the Company and Executive wish to restate and amend the Prior Agreements as set forth in this Agreement.
NOW, THEREFORE, in consideration of the mutual covenants contained herein and other valid consideration, the sufficiency of which is acknowledged, the Parties hereto agree as follows:
1.Employment. Executive’s employment under this Agreement shall commence as of the Effective Date and continue until the termination of Executive’s employment under this Agreement. The period from the Effective Date until the termination of Executive's employment under this Agreement is referred to as the “Employment Period.”
2.Position and Duties. Subject to the terms and conditions of this Agreement, Executive shall serve as the Company’s Chief Executive Officer, and shall have the duties, responsibilities and authority of an executive serving in such position, and such other duties as may be assigned and/or prescribed from time to time by the Company’s Board of Directors (the “Board”). Executive shall report directly to the Board.  Executive agrees promptly and faithfully to comply with (i) all reasonable and lawful directions and requests of the Board or a designated committee thereof and (ii) all present and future policies of the Company in connection with the Company’s business. While serving as Chief Executive Officer of the Company, Executive shall serve on the Board of the Company. At the Company’s request, Executive shall serve the Company and/or its subsidiaries and affiliates in such other capacities in addition to the foregoing as the Company shall designate, provided that such additional capacities are consistent with Executive’s position as the Company’s Chief Executive Officer. In the event that Executive serves in any one or more of such additional capacities, Executive’s compensation shall not automatically be increased on account of such additional service beyond that specified in this Agreement. Except with the prior written approval of the Board (which may grant or withhold in its sole and absolute discretion), Executive shall devote substantially all of Executive’s working time, attention, and energies to the business of the Company, except during any paid vacation or other excused absence periods. Nothing in this section prevents Executive from (i) engaging in additional activities in connection with personal investments and community affairs, and (ii) serving as a member of the board of directors of no more than one (1) organization that is not a competitor of the Company and is approved by the Board (such approval not to be unreasonably withheld); provided such activities do not individually or in the aggregate interfere with the performance of Executive’s duties under this Agreement, do not violate the Company’s standards of conduct then in effect, comply with the Company’s insider trading policies, or raise a conflict under the Company’s conflict of interest policies.
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3.Compensation and Benefits.
(a)Base Salary. As compensation for Executive’s performance of Executive’s duties hereunder, Executive shall receive a base salary at the rate of five hundred and fifty thousand ($550,000) per year (the “Base Salary”), subject to standard payroll deductions and withholdings and payable in accordance with the Company’s normal payroll practices. Executive’s Base Salary shall be reviewed by the Board for possible adjustment annually. The Base Salary shall be reviewed for adjustments by the Compensation Committee of the Board (the “Compensation Committee”) in good faith, and the Compensation Committee may, but is not required to, amend the Base Salary; provided, that Executive’s Base Salary may only be decreased as part of an across-the-board reduction in base salaries of all Company executive officers, with the percentage reduction in Executive’s Base Salary being not greater than the percentage reduction applicable to other executive officers.  The term “Base Salary” shall refer to the Base Salary as may be in effect from time to time.
(b)Annual Incentive Compensation. Executive shall be eligible to participate in the annual cash bonus program maintained for executive officers of the Company (the “Annual Incentive Program”). Executive's minimum target annual bonus shall be equal to at least 50% of the Base Salary for each year during the Employment Period in which Executive participates in the Annual Incentive Program. The actual amount of the annual bonus earned by and payable to Executive in any year shall be determined upon the satisfaction of goals and objectives established by the Compensation Committee and communicated to Executive, and shall be subject to such other terms and conditions of the Annual Incentive Program as in effect from time to time. Except as otherwise provided herein, Executive must be employed by the Company on the day a bonus is paid in order to earn such bonus. Each bonus paid under the Annual Incentive Program shall be paid to Executive no later than March 15th of the calendar year following the calendar year to which the bonus relates.
(c)Other Benefits.
(i)Savings and Retirement Plans. Except as otherwise limited by applicable law, Executive shall be entitled to participate in all qualified and non-qualified savings and retirement plans applicable generally to other senior executive officers of the Company, in accordance with the terms of the plans, as may be amended from time to time.
(ii)Welfare Benefit Plans. Except as otherwise limited by applicable law, Executive and/or his eligible dependents shall be eligible to participate in and shall receive all benefits under the Company's welfare benefit plans and programs applicable generally to other senior executive officers of the Company, in accordance with the terms of the plans, as may be amended from time to time.
(iii)Perquisites. Except as otherwise limited by applicable law, Executive shall be entitled to such perquisites as may be available generally from time to time to other senior executive officers of the Company, but at levels commensurate with executive’s position as Chief Executive Officer.
(iv)Business Expenses. Subject to Section 14, Executive shall be reimbursed for reasonable travel and other expenses incurred in the performance of Executive’s duties on behalf of the Company in a manner consistent with the Company’s policies regarding such reimbursements, as may be in effect from time to time.
(d)Retention Award.  The terms and conditions of the Retention Award (as defined in the Amendment) shall remain in full force and effect.
4.Termination of Employment.
(a)Executive’s employment under this Agreement shall terminate upon the earliest to occur of: (i) Termination due to Disability (as defined below); (ii) termination of Executive’s employment by the Company for any reason other than Termination due to Disability; (iii) Executive’s death; or (iv) termination of Executive’s employment by Executive for any reason. Upon the termination of 
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Executive's employment with the Company for any reason, Executive shall be deemed to have resigned from the Board and all other positions with the Company or any of its affiliates held by Executive as of the date immediately preceding his termination of employment.
(b)If Executive's employment ends for any reason, except as otherwise contemplated in this Section 4, Executive shall cease to have any rights to salary, bonus (if any) or other benefits, other than (i) the earned but unpaid portion of Executive's Base Salary through the date of termination or resignation, (ii) a lump-sum payment in respect of accrued but unused vacation days at the Executive’s per-business-day Base Salary rate, (iii) any unpaid expense or other reimbursements due to Executive, and (iv) any other amounts or benefits required to be paid or provided by law or under any plan, program, policy or practice of the Company, provided that Executive shall not be entitled to any payment or benefit under any severance plan maintained by the Company.
(c)Termination without Cause or for Good Reason. If Executive’s employment hereunder shall be terminated by the Company without Cause, or by Executive for Good Reason, then in addition to the payments and benefits described in Section 4(b) and subject to Executive’s execution and non-revocation of the release contemplated in Section 4(f) of this Agreement and Executive’s continuing compliance with the Confidentiality and Work Product Assignment Agreement (as defined below):
(i)the Company shall pay Executive continuation of twelve (12) months of Executive’s annual Base Salary, as in effective immediately prior to Executive’s termination of employment hereunder, payable during the 12-month period following Executive’s termination of employment in the form of salary continuation in accordance with the Company’s normal payroll practices;
(ii)the Company shall pay Executive an annual cash bonus for the year of termination, payable at the same time as annual cash bonuses are paid to senior management, based on actual achievement of performance targets (as if Executive had remained employed through the end of the applicable performance period), subject, however, to proration based on the number of days in the applicable performance period that had elapsed prior to the date of termination; and
(iii)if the Executive timely elects to receive continued coverage under the Company's group health care plan pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), the Company shall pay the employer portion of applicable COBRA premium payments for the Executive’s and, as applicable, Executive’s dependents’, continued health coverage under such plan (as in effect or amended from time to time) (the “COBRA Subsidy”) until the earlier of: (1) twelve (12) months following the Executive’s termination of employment, or (2) the date upon which the Executive obtains or becomes eligible for other health care coverage from a new employer or otherwise (such period referred to as the “COBRA Subsidy Period”). The Executive shall promptly inform the Company in writing when Executive obtains or becomes eligible for any such other health care coverage. The Executive shall be responsible for paying a share of such COBRA premiums during the COBRA Subsidy Period at active employee rates as in effect from time to time, and shall be responsible for the full unsubsidized costs of such COBRA coverage thereafter.
(d)Termination without Cause or for Good Reason in Connection with a Change in Control. If Executive’s employment hereunder shall be terminated by the Company without Cause, or by Executive for Good Reason, in either case within 12 months following a Change in Control, then, subject to Executive’s execution and non-revocation of the release contemplated in Section 4(f) of this Agreement and Executive’s continuing compliance with the Confidentiality and Work Product Assignment Agreement (as defined below), in lieu of the payments and benefits described in Section 4(c) of this Agreement:
(i)The Company shall pay Executive continuation of eighteen (18) months of Executive’s annual Base Salary, as in effect immediately prior to Executive’s termination of employment hereunder, payable during the 6-month period following Executive’s termination of 
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employment in the form of salary continuation in accordance with the Company’s normal payroll practices; 
(ii)The Company shall pay Executive an annual cash bonus equal to Executive’s annual target bonus as set forth in Section 3(b) for the year in which the termination of employment occurs, payable at the same time as annual cash bonuses are paid to senior management; 
(iii)All equity awards, to the extent outstanding as of immediately prior to such termination, will be (or will be deemed to have been) fully vested and exercisable as of immediately prior to the latter of: (1) the date of termination and (2) the date of the Change in Control;
(iv)If the Executive timely elects to receive continued coverage under the Company’s group health care plan pursuant to the COBRA, the Company shall pay the  COBRA Subsidy until the earlier of: (1) eighteen (18) months following the Executive’s termination of employment, or (2) the date upon which the Executive obtains or becomes eligible for other health care coverage from a new employer or otherwise (such period referred to as the “COBRA Subsidy Period”). The Executive shall promptly inform the Company in writing when Executive obtains or becomes eligible for any such other health care coverage. The Executive shall be responsible for paying a share of such COBRA premiums during the COBRA Subsidy Period at active employee rates as in effect from time to time, and shall be responsible for the full unsubsidized costs of such COBRA coverage thereafter.
(e)Section 280G. Notwithstanding anything to the contrary in this Agreement, Executive expressly agrees that if the payments and benefits provided for in this Agreement or any other payments and benefits which Executive has the right to receive from the Company and its affiliates (collectively, the “Payments”), would constitute a “parachute payment” (as defined in Section 280G(b)(2) of the Code), then the Payments shall be either (a) reduced (but not below zero) so that the present value of the Payments will be one dollar ($1.00) less than three times Executive’s “base amount” (as defined in Section 280G(b)(3) of the Code) and so that no portion of the Payments received by Executive shall be subject to the excise tax imposed by Section 4999 of the Code or (b) paid in full, whichever produces the better net after-tax position to Executive. The reduction of Payments, if any, shall be made by reducing first any Payments that are exempt from Section 409A of the Code and then reducing any Payments subject to Section 409A of the Code in the reverse order in which such Payments would be paid or provided (beginning with such payment or benefit that would be made last in time and continuing, to the extent necessary, through to such payment or benefit that would be made first in time). The determination as to whether any such reduction in the Payments is necessary shall be made by the Compensation Committee in good faith. If a reduced Payment is made or provided and, through error or otherwise, that Payment, when aggregated with other payments and benefits from Company (or its affiliates) used in determining if a “parachute payment” exists, exceeds one dollar ($1.00) less than three times Executive’s base amount, then Executive shall immediately repay such excess to the Company.
(f)Release. Executive’s execution of a complete and general release of any and all of Executive’s potential claims (other than for benefits and payments described in this Agreement or any other vested benefits with the Company and/or its affiliates) against the Company, any of its affiliated companies, and their respective successors and any officers, employees, agents, directors, attorneys, insurers, underwriters, and assigns of the Company or its affiliates and/or successors, is an express condition of Executive’s right to receive the payments and benefits set forth in Section 4(c) and Section 4(d), as applicable. Executive shall be required to execute within 45 days after Executive’s termination of employment a general waiver and release agreement in a form reasonably satisfactory to the Company.
(g)Certain Definitions.
"Cause" shall mean the occurrence of any one of the following:
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(i)gross negligence or willful misconduct in the performance of, or Executive’s abuse of alcohol or drugs rendering Executive unable to perform, the material duties and services required for Executive’s position with the Company;
(ii)Executive’s conviction or plea of nolo contendere for any crime involving moral turpitude or a felony;
(iii)Executive’s commission of an act of deceit or fraud intended to result in personal and unauthorized enrichment of Executive at the expense of the Company or any of its affiliates; or
(iv)Executive’s material violation of the written policies of the Company or any of its affiliates (including ethics and compliance policies, as in effect from time to time), Executive’s material breach of a material obligation of Executive to the Company pursuant to Executive’s duties and obligations under the Company’s Bylaws, or Executive’s material breach of a material obligation of Executive to the Company or any of its affiliates pursuant to this Agreement or any award or other agreement between Executive and the Company or any of its affiliates.
“Change in Control” shall be deemed to have occurred upon the occurrence of any of the following events:
(i)The acquisition, other than from the Company, by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 50% or more of either the then outstanding shares of the Company or the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors, but excluding, for this purpose, any such acquisition by the Company or any of its subsidiaries, or any employee benefit plan (or related trust) of the Company or its subsidiaries, or any corporation with respect to which, following such acquisition, more than 50% of, respectively, the then outstanding shares of such corporation and the combined voting power of the then outstanding voting securities of such corporation entitled to vote generally in the election of all or substantially all directors is then beneficially owned, directly or indirectly, by the individuals and entities who were the beneficial owners, respectively, of shares and voting securities of the Company immediately prior to such acquisition in substantially the same proportion as their ownership, immediately prior to such acquisition, of the then outstanding shares of the Company or the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors, as the case may be;
(ii)The consummation of a reorganization, merger or consolidation of the Company, in each case, with respect to which all or substantially all of the individuals and entities who were the respective beneficial owners of shares and voting securities of the Company immediately prior to such reorganization, merger or consolidation do not, following such reorganization, merger or consolidation, beneficially own, directly or indirectly, more than 50% of, respectively, the then outstanding shares and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such reorganization, merger or consolidation;
(iii)During any twenty-four (24) month period, individuals who, as of the beginning of such period, constitute the Board (the “Incumbent Directors”) cease for any reason to constitute at least a majority of the Board, provided that any person becoming a director subsequent to the beginning of such period whose election or nomination for election was approved by a vote of at least a majority of the Incumbent Directors then on the Board (either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for director, without written objection to such nomination) shall be an Incumbent Director, provided, however, that no individual initially elected or nominated as a director of the Company as a result of an actual or threatened election contest with respect to directors or as a result of any other actual or threatened solicitation of proxies by or on behalf of any person other than the Board shall be deemed to be an Incumbent Director; or
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(iv)a complete liquidation or dissolution of the Company or of the sale or other disposition of all or substantially all of the assets of the Company.
In no event shall a Change in Control include any bona fide primary or secondary public offering of the Company.
“Good Reason” shall mean the existence of any of the following:
(i)a material diminution in Executive's authority, duties, or responsibilities from those applicable to him as of the Effective Date;
(ii)a material diminution in Executive’s annual Base Salary, except to the extent contemplated by Section 3(a) of this Agreement;
(iii)a relocation of Executive’s principal place of employment by more than 50 miles from the location where Executive was assigned to work immediately prior to such relocation, which for purposes of this Agreement shall mean the Company requiring Executive to be permanently based in a location that is more than 50 miles from either (A) the Executive’s assigned Company office if such office is assigned, or (B) if Executive is assigned to work remotely, from the approved remote work location; or
(iv)a material breach by the Company of any provision of this Agreement.
Notwithstanding the foregoing or any other provision in this Agreement to the contrary, any assertion by Executive of a Good Reason termination shall not be effective unless all of the following conditions are satisfied:
(i)the conditions described in the preceding sentence giving rise to Executive’s termination of employment must have arisen without Executive’s written consent;
(ii)Executive must provide written notice to the Company of such condition and Executive’s intent to terminate employment within 90 days after the initial existence of the condition;
(iii)the condition specified in such notice must remain uncorrected for 30 days after receipt of such notice by the Company; and
(iv)the date of Executive’s termination of employment must occur within 90 days after the notice provided by Executive pursuant to clause (ii).
“Termination due to Disability” shall mean Executive’s termination of employment as a result of Executive becoming incapacitated for a period of at least 180 days by accident, sickness or other circumstance that renders Executive mentally or physically incapable of performing the material duties as Chief Executive Officer.
5.Confidentiality and Work Product Assignment Agreement. Executive agrees to continue to be bound by that certain Confidentiality, Non-Hire, Non-Disparagement, and Work Product Agreement by and between the Company and Executive, dated as of August 21, 2019 (the “Confidentiality and Work Product Assignment Agreement”).
6.Survival. Sections 5, 6, 8, 9 and 14 hereof shall survive and continue in full force and effect in accordance with their respective terms, notwithstanding any termination of the Employment Period.
7.Notices. Any notice provided for in this Agreement shall be in writing and shall be delivered (i) personally, (ii) by certified mail, postage prepaid, (iii) by Federal Express or other reputable courier service regularly providing evidence of delivery (with charges paid by the party sending the notice), or (iv) by facsimile or a PDF or similar attachment to an email, provided that such telecopy or email attachment shall be followed within one (1) business day by delivery of such notice pursuant to clause (i), 
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(ii) or (iii) above. Any such notice to a party shall be addressed at the address set forth below (subject to the right of a party to designate a different address for itself by notice similarly given):
			
	If to the Company:
	Exicure, Inc.
	2430 N. Halsted St.
	Chicago, Illinois 60614
	If to Executive:

	Matthias Schroff
	At the most recent address on file with the Company.

8.Entire Agreement. This Agreement, including the Confidentiality and Work Product Assignment Agreement, constitutes the entire agreement and understanding between the Parties with respect to the subject matter hereof and supersedes and preempts any prior understandings, agreements or representations by or between the Parties, written (including the Prior Agreements, except as set forth herein) or oral, which may have related in any manner to the subject matter hereof. For the avoidance of doubt, any equity awards and applicable equity documents governing such equity awards shall remain in full force and effect in accordance with their terms.
9.No Conflict. Executive represents and warrants that Executive is not bound by any employment contract, restrictive covenant, or other restriction preventing Executive from carrying out Executive's responsibilities for the Company, or which is in any way inconsistent with the terms of this Agreement. Executive further represents and warrants that Executive shall not disclose to the Company or induce the Company to use any confidential or proprietary information or material belonging to any previous employer or others.
10.Successors and Assigns. This Agreement shall inure to the benefit of and be enforceable by Executive and his heirs, executors and personal representatives, and the Company and its successors and assigns. Any successor or assignee of the Company shall assume the liabilities of the Company hereunder.
11.Governing Law. This Agreement shall be governed by the internal laws (as opposed to the conflicts of law provisions) of the State of Illinois.
12.Amendment and Waiver. The provisions of this Agreement may be amended or waived only with the prior written consent of the Company and Executive, and no course of conduct or failure or delay in enforcing the provisions of this Agreement shall affect the validity, binding effect or enforceability of this Agreement.
13.Withholding. All payments and benefits under this Agreement are subject to withholding of all applicable taxes.
14.Code Section 409A. This Agreement is intended to comply with the requirements of Section 409A of the Code, and shall be interpreted and construed consistently with such intent. The payments to Executive pursuant to this Agreement are also intended to be exempt from Section 409A of the Code to the maximum extent possible, under either the separation pay exemption pursuant to Treasury regulation § 1.409A-l(b)(9)(iii) or as short-term deferrals pursuant to Treasury regulation§ 1.409A-l(b)(4), and for such purposes, each payment to Executive under this Agreement shall be considered a separate payment. In the event the terms of this Agreement would subject Executive to taxes or penalties under Section 409A of the Code (“409A Penalties”), the Company and Executive shall cooperate diligently to amend the terms of the Agreement to avoid such 409A Penalties, to the extent possible. To the extent any amounts under this Agreement are payable by reference to Executive's “termination of employment” such 
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term and similar terms shall be deemed to refer to Executive's "separation from service," within the meaning of Section 409A of the Code. Notwithstanding any other provision in this Agreement, to the extent any payments made or contemplated hereunder constitute nonqualified deferred compensation, within the meaning of Section 409A, then (i) each such payment which is conditioned upon Executive’s execution of a release and which is to be paid or provided during a designated period that begins in one taxable year and ends in a second taxable year, shall be paid or provided in the later of the two taxable years and (ii) if Executive is a specified employee (within the meaning of Section 409A of the Code) as of the date of Executive’s separation from service, each such payment that is payable upon Executive’s separation from service and would have been paid prior to the six-month anniversary of Executive's separation from service, shall be delayed until the earlier to occur of (A) the first day of the seventh month following Executive’s separation from service or (B) the date of Executive’s death. Any reimbursement payable to Executive pursuant to this Agreement shall be conditioned on the submission by Executive of all expense reports reasonably required by Company under any applicable expense reimbursement policy, and shall be paid to Executive within 30 days following receipt of such expense reports, but in no event later than the last day of the calendar year following the calendar year in which Executive incurred the reimbursable expense. Any amount of expenses eligible for reimbursement, or in-kind benefit provided, during a calendar year shall not affect the amount of expenses eligible for reimbursement, or in-kind benefit to be provided, during any other calendar year. The right to any reimbursement or in-kind benefit pursuant to this Agreement shall not be subject to liquidation or exchange for any other benefit.
15.Clawbacks. The payments to Executive pursuant to this Agreement are subject to forfeiture or recovery by the Company or other action pursuant to any clawback or recoupment policy which the Company may adopt from time to time, including without limitation any such policy or provision that the Company has included in any of its existing compensation programs or plans or that it may be required to adopt under the Dodd-Frank Wall Street Reform and Consumer Protection Act and implementing rules and regulations thereunder, or as otherwise required by law.
16.Company Policies. Executive shall be subject to additional Company policies as they may exist from time-to-time, including policies with regard to stock ownership by senior executives and policies regarding trading of securities, provided such policies are not intended to be contractual in nature and may be changed or rescinded at any time by the Company in its sole discretion.

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IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first written above.
			
	EXICURE, INC.

	
	/s/ Timothy P. Walbert
	Timothy P. Walbert
	Chairman of the Board of Directors
	
	EXECUTIVE
	
	/s/ Matthias Schroff
	Matthias Schroff

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