Document:

EX-10.2

 Exhibit 10.2 
  

 
 September 18, 2018 

Dear Hayley: 
 This letter will confirm the terms
and conditions of your employment with Zosano Pharma Corporation, a Delaware corporation (the “Company”). This letter amends, restates, supersedes and replaces that certain Employment Letter Agreement dated as of
September 14, 2015 by and between the Company (as successor in interest to ZP Opco, Inc. f/k/a Zosano Pharma, Inc.) and you. 
 1.
Position and Duties. Effective September 18, 2018 (the “Effective Date”), you will continue to be the Senior Vice President, Operations of the Company. You will report to the Chief Executive Officer of the Company
(the “CEO”). You agree to perform the duties of your position and such other duties as may reasonably be assigned to you from time to time by the CEO. You also agree that, while employed by the Company, you will devote your
full business time and your best efforts, business judgment, skill and knowledge to the advancement of the business and interests of the Company and its respective Affiliates (as defined in Section 6) and to the discharge of your duties and
responsibilities for them. 
 2. Compensation and Benefits. During your employment, as compensation for the services performed by you
for the Company and its Affiliates, the Company will provide you the following pay and benefits: 
 (a) Base Salary. Effective on the
Effective Date, the Company will pay you a base salary at the rate of $335,000 per year, payable in accordance with the regular payroll practices of the Company and subject to increase from time to time by the Board of Directors of the Company (the
“Board”) or the Compensation Committee of the Board (the “Compensation Committee”) in its sole discretion. 

(b) Bonus Compensation. During employment, you will be considered annually for a bonus. Your bonus target for each year is an
amount equal to 35% of your base salary as of the end of such year. The amount of any bonus awarded will be determined by the Board or the Compensation Committee in its discretion after consideration of a proposal from the CEO, and will be based on
your performance and the performance of the Company against goals established annually by the Board or the Compensation Committee. Any such bonus will be paid to you in a lump sum prior to March 15 of the year following the year in which your
right to the bonus became vested. 
 (c) Participation in Employee Benefit Plans. You shall be entitled to participate in any and all
employee benefit plans from time to time in effect for the full-time employees of the Company generally, but the Company shall not be required to establish any such program or plan. Such participation shall be subject to (i) the terms of the
applicable plan documents and (ii) generally applicable Company policies. The Company may alter, modify, add to or delete its employee benefit plans at any time as it, in its sole discretion, determines to be appropriate. 

 
  
 

 

 

 
  

 (d) Vacations. You will be entitled to three weeks of paid vacation per year, in
addition to holidays observed by the Company, subject to the Company’s policies, as may be amended from time to time. Vacation may be taken at such times and intervals as you shall determine, subject to the reasonable business needs of the
Company. 
 (e) Business Expenses. The Company will pay or reimburse you for all reasonable business expenses incurred or paid by you
in the performance of your duties and responsibilities for the Company, subject to any maximum annual limit and other restrictions on such expenses set by the Company and to such reasonable substantiation and documentation as it may specify from
time to time. 
 3. Confidential Information and Restricted Activities. 

(a) Confidential Information. During the course of your employment with the Company, you will learn of Confidential Information
(as defined in Section 6), and you may develop Confidential Information on behalf of the Company. You agree that you will not use or disclose to any Person (as defined in Section 6) any Confidential Information obtained by you incident to
your employment or any other association with the Company or any of its Affiliates, except as required by applicable law or for the proper performance of your regular duties and responsibilities for the Company. You understand that this restriction
shall continue to apply during all times after your employment terminates, regardless of the reason for such termination. In addition, you agree to continue to abide by the terms of the Company’s standard form of confidentiality and invention
assignment agreement, which are hereby incorporated by reference into this letter agreement, as a condition of your employment hereunder. 

(b) Protection of Documents. All documents, records and files, in any media of whatever kind and description, relating to the business,
present or otherwise, of the Company or any of its Affiliates, and any copies, in whole or in part, thereof (the “Documents”), whether or not prepared by you, shall be the sole and exclusive property of the Company. You agree
to safeguard all Documents and to surrender to the Company, at the time your employment terminates or at such earlier time or times as the CEO may specify, all Documents then in your possession or control. Following termination, you shall not retain
any written or other tangible material containing any proprietary information of the Company or its subsidiaries or affiliates. 
 (c) Non-Solicitation. You acknowledge that in your employment with the Company you will have access to Confidential Information which, if disclosed, would assist in competition against the Company and its
Affiliates, and that you will also generate good will for the Company and its Affiliates in the course of your employment. Therefore, you agree that the following restrictions on your activities during and after the termination of your employment
are necessary to protect the good will, Confidential Information and other legitimate interests of the Company and its Affiliates: While you are employed by the Company and during the 12 months immediately following termination of your employment
for whatever reason, you shall not, directly or through any other Person, (A) seek to persuade any employee of the Company or any of its Affiliates to discontinue 

  
 

 

 

 
  

 
employment or (B) solicit or encourage any customer, distributor, vendor, or other business partner of the Company or any of its Affiliates or any independent contractor providing services
to the Company or any of its Affiliates to terminate or diminish its relationship with them. For purposes of the foregoing, the terms “employee,” “customer,” “distributor,” and
“vendor” shall also include any person or party who held such status during the immediately preceding six (6) months. 

(d) Enforcement of Restrictions. In signing this letter agreement, you give the Company assurance that you have carefully read and
considered all the terms and conditions of this letter agreement, including the restraints imposed on you under this Section 3. You agree without reservation that these restraints are necessary for the reasonable and proper protection of the
Company and its Affiliates, and that each and every one of the restraints is reasonable in respect to subject matter, length of time and geographic area. You further agree that, were you to breach any of the covenants contained in this
Section 3, the damage to the Company and its Affiliates would be irreparable. You therefore agree that the Company, in addition to any other remedies available to it, shall be entitled to preliminary and permanent injunctive relief against any
breach or threatened breach by you of any of those covenants, without having to post bond. You also agree that the period of restriction in Section 3(c) shall be tolled and shall not run during any period you are in violation thereof. You and
the Company further agree that, in the event that any provision of this Section 3 is determined by any court of competent jurisdiction to be unenforceable by reason of its being extended over too great a time, too large a geographic area or too
great a range of activities, that provision shall be deemed to be modified to permit its enforcement to the maximum extent permitted by law. It is also agreed that each of the Company’s Affiliates shall have the right to enforce all of your
obligations to that Affiliate under this letter agreement, including without limitation pursuant to this Section 3. It is agreed and understood that the terms of this letter agreement are severable, and that no breach of any provision of this
letter agreement or any other purported violation of law by the Company shall operate to excuse you from the performance of your obligations under this Section 3. 

4. Termination of Employment. Your employment under this letter agreement shall continue for no definite term until terminated
pursuant to this Section 4. The Company and you acknowledge that your employment is and shall continue to be at-will, as defined under applicable law. This means that it is not for any specified
period of time and can be terminated by you or by the Company at any time, with or without advance notice, and for any or no particular reason or cause.  

(a) The Company may terminate your employment for Cause upon written notice to you setting forth in reasonable detail the nature of the Cause
(as defined below); provided that the failure by the Company to set forth in the notice all of the facts and circumstances which contribute to a showing of Cause shall not waive any right of the Company hereunder or preclude the Company from
asserting such fact or circumstance in enforcing their rights hereunder. The following, as determined by the Company in its reasonable judgment, shall constitute “Cause” for termination: (i) your conviction of, or plea of
nolo contendere to, a felony or other crime involving moral turpitude; (ii) your persistent and willful refusal to follow reasonable directives of the CEO; (iii) gross negligence or willful misconduct in the performance of your
duties and responsibilities to the Company or any of its Affiliates; (iv) your material breach of this letter agreement or any other agreement between you and the Company or any of its Affiliates, which breach continues for more than 15 days
after the Company gives you written notice which sets forth in reasonable detail the nature of such breach; or (v) other conduct by you that is or could reasonably anticipated to be materially harmful to the business, interests or reputation of
the Company or any of its Affiliates. The Company also may terminate your employment other than for Cause upon written notice to you. 

  
 

 

 

 
  

 (b) You may terminate your employment for Good Reason (as defined below) subject to the
conditions set forth below. The following shall constitute “Good Reason” for termination: (i) any action by the Company that results in a material diminution in your position, authority, duties or responsibilities, or
(ii) the material reduction of your annual base salary or annual bonus opportunity in accordance with the terms of Section 2, above, for more than ten (10) business days after notice from you specifying in reasonable detail the nature
of such failure, except in connection with a decrease in salary affecting each senior management employee of the Company in a proportionate manner, (iii) relocation of your principal place of employment to a location other than the greater San
Francisco Bay area, California, or (iv) the Company’s material breach of this letter agreement or the failure of the Company’s successor to assume the Company’s obligations under this agreement upon a Change in Control. You will
not be deemed to have Good Reason unless (i) you first provides the Company with written notice of the condition giving rise to Good Reason within thirty (30) days of its initial occurrence, (ii) the Company or the successor company
fails to cure such condition within thirty (30) days after receiving such written notice (the “Cure Period”), and (iii) your resignation based on such Good Reason is effective within thirty (30) days after the
expiration of the Cure Period. 
 (c) In the event you become disabled during employment and, as a result, are unable to continue to perform
substantially all of your duties and responsibilities under this letter agreement, either with or without reasonable accommodation, subject to your continued compliance with the terms of this letter agreement, the Company will continue to pay you
your base salary and to provide you benefits in accordance with Section 2(d) above, to the extent permitted by plan terms, for up to twelve (12) weeks of disability during any period of three hundred and sixty-five (365) consecutive
calendar days. If you are unable to return to work after twelve (12) weeks of such disability, the Company may terminate your employment, upon notice to you. If the Company sponsors a disability plan, the determination of whether you have a
disability shall be made by the person or persons required to make disability determinations under the Company’s long-term disability plan. At any time the Company does not sponsor a long-term disability plan, if any question shall arise as to
whether you are disabled to the extent that you are unable to perform substantially all of your duties and responsibilities for the Company and its Affiliates, you shall, at the Company’s request, submit to a medical examination by a physician
selected by the Company to whom you or your guardian, if any, has no reasonable objection to determine whether you are so disabled, and such determination shall for the purposes of this letter agreement be conclusive of the issue. If such a question
arises and you fail to submit to the requested medical examination, the Company’s determination of the issue shall be binding on you. 

  
 

 

 

 
  

 5. Severance Payments and Other Matters Related to Termination.  

(a) Involuntary Termination. Subject to your continued compliance with the terms of this letter agreement, in the event of termination
of your employment by the Company other than for Cause, or in the event of your termination of employment for Good Reason in either case outside the Change in Control period stated in Section 5(b), and provided you execute and not revoke an
effective Employee Release (as defined below), the Company will (i) continue to pay you your base salary in effect at the time of such termination (disregarding any decrease that forms the basis of a resignation for Good Reason pursuant to
Section 4(b)(ii)) for a period of six (6) months from and after the date of termination with such installments to commence on the first regularly-scheduled Company payroll date your signed Employee Release pursuant to Section 5(c) is
effective and irrevocable; and (ii) if you elect to receive continued healthcare coverage pursuant to the provisions of COBRA, the Company shall directly pay, or reimburse you for, the premium for you and your covered dependents through the
earlier of (i) a period of six (6) months from and after the date of your termination and (ii) the date you and your covered dependents, if any, become eligible for healthcare coverage under another employer’s plan(s).
Notwithstanding the foregoing, (i) if any plan pursuant to which such benefits are provided is not, or ceases prior to the expiration of the period of continuation coverage to be, exempt from the application of Section 409A
(“Section 409A”) of the Internal Revenue Code of 1986, as amended (the “Code”) under Treasury Regulation
Section 1.409A-1(a)(5), or (ii) the Company is otherwise unable to continue to cover you under its group health plans without penalty under applicable law (including without limitation,
Section 2716 of the Public Health Service Act), then, in either case, an amount equal to each remaining Company subsidy shall thereafter be paid to you in substantially equal monthly installments. The Company will also pay you on the date of
termination any base salary, bonus and other wages earned but not paid through the date of termination, and pay for any vacation time accrued but not used to that date. In addition, the vesting for any stock options and other equity incentive awards
outstanding on the date of termination will automatically accelerate so that 25% of any then unvested option shares and other equity incentive awards shall immediately vest and become exercisable upon such termination. Except as set forth in clause
(ii) of the first sentence of this Section 5(a), benefits shall terminate in accordance with the terms of the applicable benefit plans based on the date of termination of your employment. 

(b) Involuntary Termination within One Year after Change in Control. Subject to your continued compliance with the terms of this letter
agreement, in the event of termination of your employment by the Company (or its successor) other than for Cause, or in the event of your termination of employment for Good Reason, in either case during the one (1)-year period following a Change in
Control (a “Constructive Termination Event”), the Company (or its successor) will, in lieu of any severance under Section 5(a) above, pay you, subject to and on the first regularly-scheduled Company payroll date your signed
Employee Release pursuant to Section 5(c) is effective and irrevocable: (i) a lump sum severance payment equal to twelve (12) months of your base salary in effect at the time of such termination (disregarding any decrease that forms
the basis of a resignation for Good Reason pursuant to Section 4(b)(ii)) and (ii) if you elect to receive continued healthcare coverage pursuant to the provisions of COBRA, the Company shall directly pay, or reimburse you for, the premium
for you and your covered dependents through the earlier of (i) a period of twelve (12) months from and after the date of your termination and (ii) the date you and your covered dependents, if any, become eligible for healthcare
coverage under another employer’s plan(s). Notwithstanding the foregoing, (i) if any plan pursuant to which such benefits are provided is not, or ceases prior to the expiration of the period of continuation coverage to be, exempt from the
application of Section 409A under Treasury Regulation Section 1.409A-1(a)(5), or (ii) the Company is otherwise unable to continue to cover you under its group health plans without penalty under
applicable law (including without limitation, Section 2716 of the Public Health Service Act), then, in either case, an 

  
 

 

 

 
  

 amount equal to each remaining Company subsidy shall thereafter be paid to you in substantially equal monthly
installments. The Company (or its successor) will also pay you on the date of termination any base salary, bonus and other wages earned but not paid through the date of termination, and pay for any vacation time accrued but not used to that date. In
addition, the vesting for any stock options and other equity incentive awards outstanding on the date of termination will automatically accelerate so that 100% of any then unvested option shares and other equity incentive awards shall immediately
vest and become exercisable upon such termination. Except as set forth in clause (ii) of the first sentence of this Section 5(b), benefits shall terminate in accordance with the terms of the applicable benefit plans based on the date of
termination of your employment. 
 (c) Severance Conditional Upon Release. Any obligation of the Company to provide you severance
payments under Sections 5(a) and 5(b) above shall be conditioned upon your signing a general release of claims in the form provided by the Company and reasonably acceptable to you (the “Employee Release”) within twenty-one (21) days after the date on which you receive such Employee Release (the “Release Expiration Date”) and upon your not revoking the Employee Release thereafter. All severance
payments will be payable in accordance with the normal payroll practices of the Company and will begin at the Company’s (or its successor’s) next regular payroll period following the date of the Employee Release is effective and
irrevocable, but shall be retroactive to the date of termination, if applicable; provided that in any case where your date of termination and the Release Expiration Date fall in two separate taxable years, any payments required to be made to you
that are conditioned on the Employee Release and are treated as nonqualified deferred compensation for purposes of Section 409A shall be made in the later taxable year. For the avoidance of doubt, no cash compensation that may be earned by you
pursuant to employment or a consulting arrangement with a Person other than the Company during the period of time that the Company (or its successor) is making payments to you pursuant to this Section 5 shall be credited toward the
Company’s severance obligations under this Section 5. 
 (d) Section 409A. Notwithstanding anything in this Agreement to the
contrary, any compensation or benefits payable under this agreement that is considered nonqualified deferred compensation under Section 409A and is designated under this agreement as payable upon your termination of employment shall be payable
only upon your “separation from service” with the Company within the meaning of Section 409A (a “Separation from Service”). Notwithstanding anything to the contrary contained in this letter agreement, in the
event that at the time of your separation from service you are a “specified employee,” as hereinafter defined, any and all amounts payable under this Section 5 in connection with such Separation from Service that constitute deferred
compensation subject to Section 409A, as determined by the Company in its sole discretion, and that would (but for this sentence) be payable within six (6) months following such Separation from Service, shall instead be paid on the earlier
of (i) the first business day that follows the date of such Separation from Service by six (6) months or (ii) the date of your death. For purposes of the preceding sentence, the term “specified employee” shall mean an
individual determined by the Company to be a specified employee as defined in subsection (a)(2)(B)(i) of Section 409A. For purposes of Section 409A (including, without limitation, for purposes of Treasury Regulation Section 1.409A-2(b)(2)(iii)), your right to receive installment payments under this letter agreement shall be treated as a right to receive a series of separate payments and, accordingly, each installment
payment hereunder shall at all times be considered a separate and distinct payment. 

  
 

 

 

 
  

 (d) Termination for Cause or Voluntary Termination. In the event of termination of
your employment by the Company for Cause or your termination other than for Good Reason, the Company will pay you any base salary and other wages earned but not paid through the date of termination and pay for any vacation time accrued but not used
to that date. The Company shall have no obligation to pay you any bonus compensation or severance payments. Except for any right you may have under COBRA to continue participation in the Company’s group health and dental plans at your cost,
benefits shall terminate in accordance with the terms of the applicable benefit plans based on the date of termination of your employment. 

(e) Survival of Certain Provisions. Provisions of this letter agreement shall survive any termination if so provided in this letter
agreement or if necessary or desirable to accomplish the purposes of other surviving provisions, including without limitation your obligations under Section 3 of this letter agreement. The obligation of the Company (or its successor) to make
severance payments to you under Section 5(a) or 5(b) above, and your right to retain such payments, are expressly conditioned upon your continued full performance of your obligations under Section 3 hereof. Upon termination by either you
or the Company, all rights, duties and obligations of you and the Company to each other shall cease, except as otherwise expressly provided in this letter agreement. 

6. Definitions. For purposes of this letter agreement, the following definitions apply: 

“Affiliates” means all persons and entities directly or indirectly controlling, controlled by or under common control with the
Company, where control may be by management authority, equity interest or otherwise. 
 “Confidential Information” means any
and all information of the Company and its Affiliates that is not generally available to the public. Confidential Information also includes any information received by the Company or any of its Affiliates from any Person with any understanding,
express or implied, that it will not be disclosed. Confidential Information does not include information that enters the public domain, other than through your breach of your obligations under this letter agreement. 

“Change in Control” shall have the meaning set forth in the Company’s 2014 Equity and Incentive Plan, as amended or
restated from time to time. 
 “Person” means an individual, a corporation, a limited liability company, an association, a
partnership, an estate, a trust or any other entity or organization, other than the Company or any of its Affiliates. 
 7. Dispute
Resolution. To ensure the timely and economical resolution of disputes that arise in connection with this agreement, you and the Company agree that any and all controversies, claims and disputes arising out of or relating to this agreement,
including without limitation any alleged violation of its terms, shall be resolved be resolved solely and exclusively by final and binding arbitration held in San Mateo County, California through JAMS in conformity with California law and the
then-existing JAMS employment arbitration rules, which can be found at https://www.jamsadr.com/rules-employment-arbitration/. The arbitrator shall: (a) provide adequate discovery for the resolution of the dispute; and (b) issue a written
arbitration decision, to include the arbitrator’s essential findings and conclusions and a statement of the award. The arbitrator shall award 

  
 

 

 

 
  

 the prevailing party attorneys’ fees and expert fees, if any. Notwithstanding the foregoing, it is
acknowledged that it will be impossible to measure in money the damages that would be suffered if the parties fail to comply with any of the obligations imposed on them under Section 3, and that in the event of any such failure, an aggrieved
person will be irreparably damaged and will not have an adequate remedy at law. Any such person shall, therefore, be entitled to injunctive relief, including specific performance, to enforce such obligations, and if any action shall be brought in
equity to enforce any of the provisions of Section 3, none of the parties shall raise the defense that there is an adequate remedy at law. You and the Company understand that by agreement to arbitrate any claim pursuant to this Section 7,
you will not have the right to have any claim decided by a jury or a court, but shall instead have any claim decided through arbitration. You and the Company waive any constitutional or other right to bring claims covered by this agreement other
than in your individual capacities. Except as may be prohibited by applicable law, the foregoing waiver includes the ability to assert claims as a plaintiff or class member in any purported class or representative proceeding. 

8. Golden Parachute Excise Tax. 

(a) Best Pay. Any provision of this agreement to the contrary notwithstanding, if any payment or benefit you would receive from
the Company pursuant to this agreement or otherwise (“Payment”) would (i) constitute a “parachute payment” within the meaning of Section 280G of the Code and (ii) but for this sentence, be
subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then such Payment will be equal to the Reduced Amount (as defined below). The “Reduced Amount” will be either
(A) the largest portion of the Payment that would result in no portion of the Payment (after reduction) being subject to the Excise Tax or (B) the entire Payment, whichever amount after taking into account all applicable federal, state,
and local employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate, net of the maximum reduction in federal income taxes which could be obtained from a deduction of such state and local taxes), results
in your receipt, on an after-tax basis, of the greater economic benefit notwithstanding that all or some portion of the Payment may be subject to the Excise Tax. If a reduction in a Payment is required
pursuant to the preceding sentence and the Reduced Amount is determined pursuant to clause (A) of the preceding sentence, the reduction shall occur in the manner (the “Reduction Method”) that results in the
greatest economic benefit for you. If more than one method of reduction will result in the same economic benefit, the items so reduced will be reduced pro rata (the “Pro Rata Reduction Method”). Notwithstanding the
foregoing, if the Reduction Method or the Pro Rata Reduction Method would result in any portion of the Payment being subject to taxes pursuant to Section 409A (as defined below) that would not otherwise be subject to taxes pursuant to
Section 409A, then the Reduction Method and/or the Pro Rata Reduction Method, as the case may 
 (b) be, shall be modified so as
to avoid the imposition of taxes pursuant to Section 409A as follows: (1) as a first priority, the modification shall preserve to the greatest extent possible, the greatest economic benefit for you as determined on an after-tax basis; (2) as a second priority, Payments that are contingent on future events (e.g., being terminated without cause), shall be reduced (or eliminated) before Payments that are not contingent
on future events; and (3) as a third priority, Payments that are “deferred compensation” within the meaning of Section 409A shall be reduced (or eliminated) before Payments that are not deferred compensation within the meaning of
Section 409A. 

  
 

 

 

 
  

 (c) Accounting Firm. The accounting firm engaged by the Company for general tax
purposes as of the day prior to the Change in Control will perform the calculations set forth in Section 8(a) above. If the firm so engaged by the Company is serving as the accountant or auditor for the acquiring company, the Company will
appoint a nationally recognized accounting firm to make the determinations required hereunder. The Company will bear all expenses with respect to the determinations by such firm required to be made hereunder. The accounting firm engaged to make the
determinations hereunder will provide its calculations, together with detailed supporting documentation, to the Company within thirty (30) days before the consummation of a Change in Control (if requested at that time by the Company) or such
other time as requested by the Company. If the accounting firm determines that no Excise Tax is payable with respect to a Payment, either before or after the application of the Reduced Amount, it will furnish the Company with documentation
reasonably acceptable to the Company that no Excise Tax will be imposed with respect to such Payment. Any good faith determinations of the accounting firm made hereunder will be final, binding and conclusive upon the Company and you. 

9. Conflicting Agreements. You hereby represent and warrant that your signing of this letter agreement and the performance of your
obligations under it will not breach or be in conflict with any other agreement to which you are a party or are bound, and that you are not now subject to any covenants against competition or similar covenants or any court orders that could affect
the performance of your obligations under this letter agreement. You agree that you will not disclose to or use on behalf of the Company any proprietary information of a third party without that party’s consent. 

10 Withholding. All payments made by the Company under this letter agreement shall be reduced by any tax or other amounts required to be
withheld by the Company under applicable law. 
 11. Assignment. Neither you nor the Company may make any assignment of this letter
agreement or any interest in it, by operation of law or otherwise, without the prior written consent of the other parties; provided, however, that the Company may assign its rights and obligations under this letter agreement without your
consent to one of its Affiliates or to any Person with whom it shall hereafter effect a reorganization, consolidate with, or merge into or to whom it transfers all or substantially all of its properties or assets. This letter agreement shall inure
to the benefit of and be binding upon you, the Company, and each of our respective successors, executors, administrators, heirs and permitted assigns. 

12. Severability. If any portion or provision of this letter agreement shall to any extent be declared illegal or unenforceable by a
court of competent jurisdiction, then the remainder of this letter agreement, or the application of such portion or provision in circumstances other than those as to which it is so declared illegal or unenforceable, shall not be affected thereby,
and each portion and provision of this letter agreement shall be valid and enforceable to the fullest extent permitted by law. 
 13.
Miscellaneous. This letter agreement sets forth the entire agreement between you and the Company and replaces all prior and contemporaneous communications, agreements and understandings, written or oral, with respect to the terms and
conditions of your employment with the Company. This letter agreement may not be modified or amended, and no breach shall be deemed to be waived, unless agreed to in writing by you and the Company. The headings and captions in this letter agreement
are for convenience only and in no way define or describe the scope or content of any provision of this letter agreement. The words “include,” “includes” and “including” when used herein shall be
deemed in each case to be followed by the words “without limitation.” This letter agreement may be executed in two or more counterparts, each of which shall be an original and all of which 

  
 

 

 

 
  

 together shall constitute one and the same instrument. This is a California contract and shall be governed
and construed in accordance with the laws of the State of California, without regard to the conflict of laws principles thereof. Nothing in this letter agreement or any other Company agreement, policy, practice, procedure, directive or
instruction limits your ability to (a) file a charge or complaint with any governmental agency, governmental commission or other governmental authority (“Governmental Authority”), (b) report possible
violations of law or regulation to any Governmental Authority, (c) make other disclosures that are protected under the whistleblower provisions of applicable law or regulation, or (d) receive a whistleblower or other award from a
Governmental Authority for information provided to a Governmental Authority. You do not need permission from anyone at the Company or the Company’s legal counsel in order to take any of the actions described in the preceding sentence, and you
do not have to notify the Company that you have taken or intend to take any of these actions. In addition, nothing in this Agreement is intended to interfere with or restrain the immunity provided under 18 U.S.C. section 1833(b) for confidential
disclosures of trade secrets (x) to lawyers or government officials solely for the purpose of reporting or investigating a suspected violation of law or (y) in a sealed filing in court or another legal proceeding. 

14. Notices. Any notices provided for in this letter agreement shall be in writing and shall be effective when delivered in person or
deposited in the United States mail, postage prepaid, and addressed to you at your last known address on the books of the Company or, in the case of the Company, to it at its principal place of business, or to such other address as either party may
specify by notice to the other actually received. 
 * * * * * 

  
 

 

 

 
  

 At the time this letter agreement is signed by you and on behalf of the Company, it will take
effect as a binding agreement between you and the Company on the basis set forth above. 
  

									
	ZOSANO PHARMA CORPORATION	 		 		 	EMPLOYEE:
					
	By:	 	 /s/ John Walker
	 		 		 	 /s/ Hayley Lewis

		 	Name: John Walker	 		 		 	Hayley Lewis
		 	Title: President and Chief Executive Officer	 		 		 	
					
		 		 		 		 	Date signed: September 19, 2018EXECUTION
VERSION

 

EMPLOYMENT
AGREEMENT

 

AGREEMENT,
made as of September 24, 2018, by and between Marina Biotech, Inc., a Delaware corporation (the “Company”) and R.
Eric Teague (the “Executive”).

 

RECITALS

 

In
order to induce Executive to serve as the Chief Financial Officer of the Company, the Company desires to provide Executive with
compensation and other benefits on the terms and conditions set forth in this Agreement.

 

Executive
is willing to accept such employment and perform services for the Company, on the terms and conditions hereinafter set forth.

 

It
is therefore hereby agreed by and between the parties as follows:

 

1.
Employment.

 

1.1
Subject to the terms and conditions of this Agreement, the Company agrees to employ Executive during the term hereof as its Chief
Financial Officer (“CFO”). In his capacity as CFO, Executive shall report to the Chief Executive Officer (the “CEO”)
of the Company or, to the extent applicable, the Audit Committee of the Board of Directors (the “Board”), and shall
have the powers, responsibilities and authorities lawfully assigned to him by the Company from time to time.

 

1.2
Subject to the terms and conditions of this Agreement, Executive hereby accepts employment as CFO commencing September 24, 2018
(the “Commencement Date”), and agrees to devote his full working time and efforts, to the best of his ability, experience
and talent, to the performance of services, duties and responsibilities in connection therewith. Executive shall perform such
duties and exercise such powers, commensurate with his position as CFO, as the Company shall lawfully from time to time delegate
to him on such terms and conditions and subject to such restrictions as the Company may reasonably from time to time impose.

 

    	 	 	 

    	 

    

 

1.3
Except as provided in Section 12, nothing in this Agreement shall preclude Executive from engaging, so long as, in the reasonable
determination of the Company, such activities do not interfere with his duties and responsibilities hereunder, in charitable and
community affairs, from managing any passive investment made by him in publicly traded equity securities or other property (provided
that no such investment may exceed 1% of the equity of any entity, without the prior written approval of the Company) or from
serving, subject to the prior written approval of the Board, as a member of the boards of directors or as a trustee of any other
corporation, association or entity.

 

2.
Term of Employment. Executive’s term of employment under this Agreement shall commence on the Commencement Date and,
subject to the terms hereof, shall terminate on the earlier of: (i) the third anniversary of the Commencement Date (the “Termination
Date”); or (ii) the termination of Executive’s employment pursuant to this Agreement (the period from the Commencement
Date until the termination of this Agreement shall be the “Term”). This Agreement shall be renewed automatically for
succeeding terms of one (1) year following the Termination Date (in which case both the Termination Date and the Term shall be
extended one year on each renewal), unless either party gives written notice to the other at least ninety (90) days prior to the
applicable Termination Date of its intention not to renew.

 

3.
Compensation.

 

3.1
Salary. The Company shall pay Executive a base salary (“Base Salary”) at the rate of $285,000 per annum during
the Term (prorated for partial years). Base Salary shall be payable in accordance with the ordinary payroll practices of the Company.
Any adjustment in Base Salary shall be in the sole discretion of the Company and, as so adjusted, shall constitute “Base
Salary” hereunder. The Company shall consider Executive’s Base Salary for annual increase no later than the end of
the first quarter of each calendar year beginning in the first full calendar year after the Commencement Date.

 

    	 	2	 

    	 

    

 

3.2
Annual Bonus. In addition to his Base Salary, starting for fiscal years 2019 (with the first such bonus payable in 2020)
Executive shall be eligible to receive an annual bonus (the “Bonus”) during the Term with a target amount equal to
thirty-five percent (35%) of Base Salary, based on performance criteria mutually determined in good faith by the Company and the
Executive (see Section 3.6 below for a discussion on 2018 bonuses). The Company shall endeavor to propose the performance criteria
for the Bonus not later than November 30 of each calendar year. The Company shall pay Executive the Bonus (if earned) for a year
in the year following the year for which it is earned, within 30 days of the Company’s public reporting of the fiscal results
for the year in respect of which the Bonus is earned, but in no event later than the end of such following year.

 

3.3
Compensation Plans and Programs. Executive shall be eligible to participate in any compensation plan or program maintained
by the Company and generally made available to other executives of the Company, on terms comparable to those applicable to such
other senior executives.

 

3.4
Stock Options

 

(a)
As soon as practicable following the Commencement Date, provided that the Executive is an employee of the Company on such grant
date, the Company shall grant Executive an option (the “Option”) to purchase 400,000 shares of common stock of the
Company (“Common Stock”). The per share exercise price of the Option shall be the fair market value of a share of
Common Stock on the Option’s grant date, which shall be the closing price of the Common Stock on the Option’s grant
date. The Executive shall be vested in 25% of the Option as of the grant date (covering 100,000 underlying shares of Common Stock),
and the remaining unvested portion of the Option shall vest 25% on each of the first three (3) anniversaries of the grant date
such that on the third (3rd) anniversary of the grant date, Executive shall be fully vested in the Option; provided
that Executive must be employed by the Company on each vesting date in order to vest in the applicable portion of the Option.

 

    	 	3	 

    	 

    

 

(b)
Notwithstanding anything herein to the contrary, the Option shall be subject to the terms and conditions of the Plan and award
agreement (as applicable) and in the event of any conflict between this Agreement and such Plan and/or award agreement, the Plan
and award agreement shall control.

 

3.5
2018 Stock Options

 

(a)
In addition to the Option discussed in Section 3.5 above, as soon as practicable following the Commencement Date, provided that
the Executive is an employee of the Company on such grant date, the Company shall grant Executive two additional options as follows:

 

(i)
The Company shall grant Executive an option (the “2018 Revenue Option”) to purchase 25,000 shares of Common Stock.
The 2018 Revenue Option shall be unvested as of the grant date and shall only vest if and on the date that the Company determines
that the 2018 Revenue Target (see below) is achieved.

 

(ii)
The Company shall grant Executive an additional option (the “2018 Stock Price Option” and together with the 2018 Revenue
Option, the “2018 Options”) to purchase 25,000 shares of Common Stock. The 2018 Stock Price Option shall be unvested
as of the grant date and shall only vest if and on the date that the Company determines that the 2018 Stock Price Target (see
below) is achieved.

 

    	 	4	 

    	 

    

 

(iii)
For the avoidance of doubt, the Executive must be employed by the Company on the vesting dates described above in (i) and (ii)
(as applicable) in order to vest in the 2018 Options.

 

(b)
The per share exercise price of the 2018 Options shall be the fair market value of a share of Common Stock on the 2018 Options’
grant dates, which shall be the closing price of the Common Stock on such grant date(s).

 

(c)
Definitions:

 

(i)
2018 Revenue Target. The 2018 Revenue Target requires that the Company’s Gross Revenue for the Prorated 2018 Fiscal Year
(such terms defined below) equals or exceeds $1.2 million, as determined by the Company’s auditors. For purposes of this
Agreement, the “Prorated 2018 Fiscal Year” means that portion of the 2018 fiscal year starting on June 18, 2018 and
ending on the last day of the 2018 fiscal year. “Gross Revenue” shall mean the total amount of sales recognized by
Company from the Commencement Date through the remainder of the 2018 calendar year, less the sum of any returns, rebates, chargebacks
and distribution discounts.

 

(ii)
2018 Stock Price Target. The 2018 Stock Price Target requires that the daily volume weighted average price of the Company’s
common stock on the trading market or exchange on which the Company’s common stock is then listed or quoted for trading
is not less than $2.00 per share (as adjusted for any stock splits, combinations or similar events) for a sixty (60) consecutive
day period beginning on any day within the Prorated 2018 Fiscal Year.

 

    	 	5	 

    	 

    

 

(d)
Notwithstanding anything herein to the contrary, the 2018 Options shall be subject to the terms and conditions of the Plan and
award agreements (as applicable) and in the event of any conflict between this Agreement and such Plan and/or award agreements,
the Plan and award agreements shall control. For the avoidance of doubt, the Company’s grant to Executive of the 2018 Options
(as described above) is an unique award and in the event that this Agreement is renewed or extended pursuant to Section 2 above
(or otherwise), the Company is under no obligation to make additional or similar grants.

 

3.6
2018 Bonuses. For 2018 only, instead of the Bonus discussed above in Section 3.2, Executive shall be eligible to receive
(2) two different bonuses, as follows:

 

(a)
2018 Revenue Bonus. In the event that the Company determines that it has achieved the 2018 Revenue Target (as defined above),
then the Company shall pay Executive an amount equal to $21,000 (the “2018 Revenue Bonus”) in 2019 within 30 days
of the Company’s public reporting of its 2018 final results; provided that the Executive must be an employee in good standing
with the Company on the date the 2018 Revenue Bonus is otherwise due to be paid in order to receive it.

 

(b)
2018 Stock Price Bonus. In the event that the Company determines that it has achieved the 2018 Stock Price Target (as defined
above), then the Company shall pay Executive an amount equal to $21,000 (“2018 Stock Price Bonus”) in 2019; provided
that the Executive must be an employee in good standing with the Company on the date the 2018 Stock Price Bonus is otherwise due
to be paid in order to receive it.

 

    	 	6	 

    	 

    

 

4.
Employee Benefits.

 

4.1
Employee Benefit Programs, Plans and Practices. The Company shall provide Executive during the Term with coverage under
all employee pension and welfare benefit programs, plans and practices (commensurate with his position in the Company and to the
extent permitted under any employee benefit plan) in accordance with the terms thereof, which the Company generally makes available
to its senior executives. During the Term, Executive and his dependents shall be eligible for family coverage under the Company’s
group health insurance plan, subject to the terms of such plan. If Executive elects to enroll in such plan, the Company will pay
100% of the premiums thereunder (for both single or family coverage, as applicable). However, nothing herein requires the Company
to keep a health insurance plan or arrangement in place, or continue any health insurance plan or arrangement, and the Company
may modify, amend or terminate such plan or program at any time in its sole discretion. Furthermore, the Company may, in its sole
discretion, amend, modify, or cease paying the portion of the premiums it pays on Executive’s behalf, including, but not
limited to, in the event that the Company or any employee can become subject to any tax or penalty under the Patient Protection
and Affordable Care Act (as amended from time to time) or Sections 105(h), 106 or 125 of the Internal Revenue Code of 1986, as
amended, (the “Code”), or applicable regulations or guidance issued thereunder.

 

4.2
Vacation and Fringe Benefits. Executive shall be entitled to vacation time consistent with that set forth in the currently
effective Employee Handbook of the Company (but not less than fifteen (15) business days paid vacation in each calendar year),
as it may change from time to time. In addition, Executive shall be entitled to the perquisites and other fringe benefits generally
made available to senior executives of the Company, commensurate with his position with the Company.

 

    	 	7	 

    	 

    

 

5.
Expenses. Executive is authorized to incur reasonable expenses in carrying out his duties and responsibilities under this
Agreement, including, without limitation, expenses for travel and similar items related to such duties and responsibilities. The
Company will reimburse Executive for all such expenses upon presentation by Executive, from time to time, of accounts of such
expenditures (appropriately itemized and approved consistent with the Company’s policy).

 

6.
Termination of Employment.

 

6.1
Termination Not for Cause or for Good Reason.

 

(a)
The Company or Executive may terminate Executive’s employment at any time for any reason or no reason. If Executive’s
employment is terminated by the Company other than for Cause (as defined in Section 6.2 hereof) or as a result of Executive’s
death or Permanent Disability (as defined in Section 6.2 hereof), or if Executive terminates his employment for Good Reason (as
defined in Section 6.1(d) hereof) prior to the Termination Date, Executive shall receive: (i) any accrued but unpaid portion of
Base Salary through the date of such termination, payable within fifteen (15) days of the date of such termination (or earlier
if required by applicable law); (ii) any unreimbursed business expenses incurred through the date of such termination and for
which reimbursement is permitted under the Company’s policies (payable in accordance with the Company’s policies);
and (iii) all other payments and benefits to which Executive is entitled pursuant to the terms of any employment benefit plan
or program in which Executive participated on the date of such termination, payable in accordance with the terms of such plans
or programs (the amounts described above in (i) through (iii) being the “Accrued Amounts”). In addition to the Accrued
Amounts, subject to Executive’s continued compliance with the terms of this Agreement, including, but not limited to, the
provisions of Section 12 hereof, the Executive shall be entitled to: (A) continue to receive Base Salary for the Severance Period
(defined below), payable in accordance with the Company’s payroll practices (“Salary Continuation); (B) immediately
vest in the unvested portion of the Option (if any) which would have vested during the Severance Period had Executive remained
employed with the Company through the end of the Severance Period; and (C) if Executive then participates in the Company’s
medical plan(s) and the Executive timely elects to continue to receive group health insurance coverage under the Consolidated
Omnibus Budget Reconciliation Act (“COBRA”), the Company shall either directly pay or reimburse the Executive for
all monthly COBRA premiums incurred by Executive on behalf of both himself and his dependents for the Severance Period (such monthly
payments being the “COBRA Amount”), provided that in order to be reimbursed, the Executive must provide the Company
with adequate documentation of his payment of such monthly COBRA premiums. The COBRA Amount shall maintain the coverage the Executive
and his dependents (if applicable) had immediately prior to the date of termination of Executive’s employment with the Company
(subject to any changes in coverage that effect employees generally). In the event the Executive does not elect COBRA coverage,
the Executive subsequently becomes ineligible for continued COBRA coverage, the Executive fails to provide the Company with adequate
documentation of his payment of such COBRA premiums (if applicable), or the Executive does not execute the Release or subsequently
revokes the Release, the Company shall no longer be obligated to pay the Executive any remaining portion of the COBRA Amount.

 

    	 	8	 

    	 

    

 

(b)
In order to receive the Salary Continuation, the accelerated vesting of a portion of the Option, and to continue receiving the
COBRA Amount, Executive must first execute and deliver to the Company a general release of claims in a form and substance acceptable
to the Company (the “Release”) by the date specified in such Release and such Release must become irrevocable by its
terms. The Company will begin paying Executive the Salary Continuation as described above, once the Release has become binding
upon and irrevocable by him, provided that in the event that the period Executive has to sign the Release and/or revoke the Release
spans two calendar years, the Company will begin paying Executive the Salary Continuation as soon as possible but in no event
earlier than the beginning of such second calendar year.

 

(c)
For purposes of this Agreement, “Change of Control” shall mean:

 

(i)
The acquisition by any individual, entity or group (within the meaning of Rule 13d-3 promulgated under the Securities Exchange
Act of 1934, as amended (the “Exchange Act”) or any successor provision) (any of the foregoing hereafter a “Person”)
of forty percent (40%) or more of either (a) the then outstanding shares of the capital stock of the Company (the “Outstanding
Capital Stock”) or (b) the combined voting power of the then outstanding voting securities of the Company entitled to vote
generally in the election of directors (the “Voting Securities”), provided, however, that such an acquisition by one
of the following shall not constitute a change of control: (1) the Company or any of its subsidiaries, or any employee benefit
plan (or related trust) sponsored or maintained by the Company or any of its subsidiaries or (2) any Person that is eligible,
pursuant to Rule 13d-1(b) under the Exchange Act, to file a statement on Schedule 13G with respect to its beneficial ownership
of Voting Securities, whether or not such Person shall have filed a statement on Schedule 13G, unless such Person shall have filed
a statement on Schedule 13D with respect to beneficial ownership of forty percent (40%) or more of the Voting Securities or (3)
any corporation with respect to which, following such acquisition, more than sixty percent (60%) of both the then outstanding
shares of common stock 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 directors is then beneficially owned, directly or indirectly, by all or substantially
all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Capital Stock or Voting Securities
immediately prior to such acquisition in substantially the same proportions as their ownership, immediately prior to such acquisition,
of the Outstanding Capital Stock or Voting Securities, as the case may be; or

 

    	 	9	 

    	 

    

 

(ii)
Individuals who, as of the Commencement Date, constitute the Board (the “Incumbent Board”) cease for any reason to
constitute at least a majority of the Board, provided that any individual becoming a director subsequent to the Commencement Date
whose election or nomination for election by the Company’s shareholders was approved by a vote of at least a majority of
the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent
Board, but excluding, for this purpose, any such individual whose initial assumption of office is in connection with an actual
or threatened election contest relating to the election of the directors of the Company (as such terms are used in Rule 14a-11
of Regulation 14A, or any successor section, promulgated under the Exchange Act); or

 

(iii)
Approval by the shareholders of the Company of a reorganization, merger or consolidation (a “Business Combination”),
in each case, with respect to which all or substantially all holders of the Outstanding Capital Stock and Voting Securities immediately
prior to such Business Combination do not, following such Business Combination, beneficially own, directly or indirectly, in substantially
the same proportions, more than sixty percent (60%) of, respectively, the then outstanding shares of common stock 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 the Business Combination; or

 

(iv)
A complete liquidation or dissolution of the Company; or

 

(v)
A sale or other disposition of all or substantially all of the assets of the Company other than to a corporation with respect
to which, following such sale or disposition, more than sixty percent (60%) of the then outstanding shares of common stock and
the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors are
then owned beneficially, directly or indirectly, by all or substantially all of the individuals and entities who were the beneficial
owners, respectively, of the Outstanding Capital Stock or Voting Securities immediately prior to such sale or disposition in substantially
the same proportions as their ownership of the Outstanding Capital Stock and Voting Securities, as the case may be, immediately
prior to such sale or disposition.

 

    	 	10	 

    	 

    

 

(d)
For purposes of this Agreement, “Good Reason” shall mean any of the following (without Executive’s express prior
written consent):

 

(i)
Any material breach by the Company of this Agreement, including any material reduction by the Company of Executive’s authorities,
duties or responsibilities (except in connection with the termination of Executive’s employment for Cause, as a result of
Permanent Disability, as a result of Executive’s death or by Executive other than for Good Reason);

 

(ii)
A failure by the Company to pay Executive his Base Salary, as and when due;

 

(iii)
The Company requiring Executive to report to a corporate officer or employee instead of the Chief Executive Officer, the Board
and/or the Audit Committee;

 

(iv)
any change in Executive’s primary place of business to a location more than fifty (50) miles from its current location;
or

 

(v)
a material diminution in the Executive’s Base Salary, other than a proportional reduction pursuant to a Company-wide reduction
of all executive salaries due to economic conditions or corporate restructuring;

 

provided,
however, that “Good Reason” shall not exist unless: (A) the Executive shall have given the Company written notice
within ninety (90) days after the date when Executive first learns of a condition constituting Good Reason, setting forth (1)
the conduct or condition deemed to constitute Good Reason and (2) a reasonable time, not less than thirty (30) days, within which
the Company may cure (if curable) such conduct or condition giving rise to Good Reason; and (B) the Company shall have failed
to so cure within such period. For the avoidance of doubt, if cured, such conduct or condition shall not constitute “Good
Reason” for purposes of this Agreement. In order for the Executive to resign for Good Reason, the Executive must terminate
his employment with the Company no later than ninety (90) days following the end of the Company’s cure period.

 

    	 	11	 

    	 

    

 

(e)
For purposes of this Agreement, “Severance Period”  shall mean: (i) twelve (12) months; or (ii) in the event the Company
terminates Executive’s employment for any reason other than for Cause within six (6) months following a Change of Control,
eighteen (18) months.

 

6.2
Discharge for Cause; Termination by Executive; Death or Permanent Disability.

 

(a)
The Company shall have the right to terminate the employment of Executive for Cause. In the event that Executive’s employment
is terminated: (i) by the Company for Cause, as hereinafter defined; (ii) as a result of Executive’s Death or Permanent
Disability; or (iii) by Executive other than for Good Reason, Executive shall only be entitled to receive the Accrued Amounts.
Executive shall not be entitled, among other things, to the payment of any Bonus in respect of all or any portion of the fiscal
year in which such termination occurs. After the termination of Executive’s employment under this Section 6.2, the obligations
of the Company under this Agreement to make any further payments, or provide any benefits specified herein, to Executive shall
thereupon cease and terminate.

 

(b)
As used herein, the term “Cause” shall be limited to: (i) willful malfeasance, willful misconduct or gross negligence
by Executive in connection with his employment; (ii) any willful failure by Executive to perform his duties hereunder or any lawful
direction of the Company as required under Section 1.2, within ten (10) business days after notice of any such failure to perform
such duties or direction was given to Executive; (iii) the Executive’s breach of the provisions of Section 12 of this Agreement
or any other breach of a material provision of this Agreement; (iv) Executive’s indictment for or being charged with: (A)
any felony; or (B) a misdemeanor involving moral turpitude; (v) the Executive’s engaging in theft, fraud, dishonesty or
embezzlement or similar acts in the performance of his duties for the Company or any affiliate; (vi) any act by the Executive
that brings the Company or any of its subsidiaries into disrepute, including any dishonesty, fraud, intentional misrepresentation
of a material fact, moral turpitude, illegality or conduct actionable under law as harassment; or (vii) the Executive’s
material violation of any Company policy.

 

    	 	12	 

    	 

    

 

(c)
As used herein, the term “Permanent Disability” shall mean that during the Term: (i) even with reasonable accommodations,
in Company’s sole discretion, Executive is unable to perform his duties hereunder due to a physical or mental condition,
sickness, injury or disability for ninety (90) consecutive days, or an aggregate period of one hundred twenty (120) days in any
six (6) months period; or (ii) the Executive becomes totally and permanently disabled under the Company’s long-term disability
benefit plan applicable to senior executive officers as in effect from time to time (if such a plan exists).

 

6.3
Continued Employment Beyond the Expiration of the Employment Term. Unless the parties otherwise agree in writing, continuation
of Executive’s employment with the Company beyond the Termination Date shall be deemed an employment at will and shall not
be deemed to extend any of the provisions of this Agreement and Executive’s employment may thereafter be terminated at will
by either Executive or the Company; provided that the provisions of Section 12 of this Agreement shall survive any termination
of this Agreement or Executive’s termination of employment hereunder.

 

7.
Mitigation of Damages. Executive shall not be required to mitigate damages or the amount of any payment provided for under
this Agreement by seeking other employment or otherwise after the termination of his employment hereunder, and any amounts earned
by Executive, whether from self-employment, as a common-law employee or otherwise, shall not reduce the amount of any payments
otherwise payable to him.

 

    	 	13	 

    	 

    

 

8.
Notices. All notices or communications hereunder shall be in writing, addressed as follows:

 

	 	To the Company:	 
	 	 	 
	 	 	Marina Biotech, Inc.
	 	 	4721 Emperor Boulevard, Suite 350
	 	 	Durham, North Carolina 27703
	 	 	Attn: Chief Executive Officer
	 	 	 	 
	 	with a copy to:	 
	 	 	 	 
	 	 	Pryor Cashman LLP
	 	 	7 Times Square (Times Square Tower)
	 	 	New York, NY 10036
	 	 	Attn: Lawrence Remmel, Esq.
	 	 	 	 
	 	To Executive:	 
	 	 	 	 
	 	 	R.
    Eric Teague	 
	 	 		 
	 	 		 
	 	 	 	 
	 	with a copy to:	 
	 	 	 	 
	 	 		 
	 	 		 
	 	 		 
	 	 	Attn:	 

 

Any
such notice or communication shall be delivered by hand or by courier or sent certified or registered mail, return receipt requested,
postage prepaid, addressed as above (or to such other address as such party may designate in a notice duly delivered as described
above), and the third business day after the actual date of mailing shall constitute the time at which notice was given.

 

    	 	14	 

    	 

    

 

9.
Separability; Legal Fees. If any provision of this Agreement shall be declared to be invalid or unenforceable, in whole
or in part, such invalidity or unenforceability shall not affect the remaining provisions hereof which shall remain in full force
and effect. Each party shall bear the costs of any legal fees and other fees and expenses which may be incurred in respect of
enforcing its respective rights under this Agreement.

 

10.
Assignment. This contract shall be binding upon and inure to the benefit of the heirs and representatives of Executive
and the assigns and successors of the Company, but neither this Agreement nor any rights or obligations hereunder shall be assignable
or otherwise subject to hypothecation by Executive (except by will or by operation of the laws of intestate succession) or by
the Company, except that the Company may assign this Agreement to any successor (whether by merger, purchase or otherwise) to
the stock, assets or businesses of the Company.

 

11.
Amendment. This Agreement may only be amended by written agreement of the parties hereto.

 

12.
Nondisclosure of Confidential Information; Non-Disparagement; Non-Competition.

 

(a)
Executive shall not, without the prior written consent of the Company, use, divulge, disclose or make accessible to any other
person, firm, partnership, corporation or other entity any Confidential Information (as defined below) pertaining to the business
of the Company or any of its subsidiaries, except (i) while employed by the Company, in the business of and for the benefit of
the Company, or (ii) when required to do so by a court of competent jurisdiction, by any governmental agency having supervisory
authority over the business of the Company, or by any administrative body or legislative body (including a committee thereof)
with jurisdiction to order Executive to divulge, disclose or make accessible such information. For purposes of this Section 12(a),
“Confidential Information” shall mean non-public information concerning the financial data, strategic business plans,
product development (or other proprietary product data), customer lists, marketing plans and other non-public, proprietary and
confidential information of the Company or its subsidiaries (the “Restricted Group”) or customers, that, in any case,
is not otherwise available to the public (other than by Executive’s breach of the terms hereof).

 

    	 	15	 

    	 

    

 

(b)
During the Term and for twelve (12) months thereafter, Executive agrees that, without the prior written consent of the Company,
he will not, directly or indirectly, either as principal, manager, agent, consultant, officer, director, stockholder, partner,
investor, lender or employee or in any other capacity, carry on, be engaged in or have any financial interest in, any business
which is in competition with any business of the Restricted Group.

 

(c)
During the Term and for twenty-four (24) months thereafter, Executive agrees that, without the prior written consent of the Company,
he will not, directly or indirectly, on his own behalf or on behalf of any person, firm or company, (A) solicit or offer employment
to any person who has been employed by the Restricted Group at any time during the 12 months immediately preceding such solicitation,
and (B) solicit, call upon, or otherwise communicate in any way with any client, customer, prospective client or prospective customer
of the Company or of any member of the Restricted Group for the purposes of causing or of attempting to cause any such person
to purchase products sold or services rendered by the Company or by any member of the Restricted Group from any person other than
the Company or any member of the Restricted Group.

 

(d)
Executive agrees that he will not, directly or indirectly, individually or in concert with others, engage in any conduct or make
any statement that is likely to have the effect of undermining or disparaging the reputation of the Company or any member of the
Restricted Group, or their good will, products, or business opportunities, or that is likely to have the effect of undermining
or disparaging the reputation of any officer, director, agent, representative or employee, past or present, of the Company or
any member of the Restricted Group.

 

    	 	16	 

    	 

    

 

(e)
For purposes of this Section 12, a business shall be deemed to be in competition with the Restricted Group if it is principally
involved in the purchase, sale or other dealing in any property or the rendering of any service purchased, sold, dealt in or rendered
by the Restricted Group as a material part of the business of the Restricted Group within the same geographic area in which the
Restricted Group effects such purchases, sales or dealings or renders such services. Nothing in this Section 12 shall be construed
so as to preclude Executive from investing in any publicly or privately held company, provided Executive’s beneficial ownership
of any class of such company’s securities does not exceed 1% of the outstanding securities of such class.

 

(f)
Executive and the Company agree that this covenant not to compete is a reasonable covenant under the circumstances, and further
agree that if in the opinion of any court of competent jurisdiction such restraint is not reasonable in any respect, such court
shall have the right, power and authority to excise or modify such provision or provisions of this covenant as to the court shall
appear not reasonable and to enforce the remainder of the covenant as so amended. Executive agrees that any breach of the covenants
contained in this Section 12 would irreparably injure the Company. Accordingly, Executive agrees that the Company may, in addition
to pursuing any other remedies it may have in law or in equity, cease making any payments otherwise required by this Agreement
and obtain an injunction against Executive from any court having jurisdiction over the matter restraining any further violation
of this Agreement by Executive.

 

    	 	17	 

    	 

    

 

(g)
Notice of Immunity Under the Economic Espionage Act of 1996, as amended by the Defend Trade Secrets Act of 2016. Notwithstanding
any other provision of this Agreement:

 

(i)
Executive will not be held criminally or civilly liable under any federal or state trade secret law for any disclosure of a trade
secret that is made: (A) 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 (B) in a complaint or other
document that is filed under seal in a lawsuit or other proceeding.

 

(ii)
If Executive files a lawsuit for retaliation by the Company for reporting a suspected violation of law, Executive may disclose
the Company’s trade secrets to his or her attorney and use the trade secret information in the court proceeding if Executive:
(A) files any document containing the trade secret under seal; and (B) does not disclose the trade secret, except pursuant to
court order.

 

13.
Beneficiaries; References. Executive shall be entitled to select (and change, to the extent permitted under any applicable
law) a beneficiary or beneficiaries to receive any compensation or benefit payable hereunder following Executive’s death,
and may change such election, in either case by giving the Company written notice thereof. In the event of Executive’s death
or a judicial determination of his incompetence, reference in this Agreement to Executive shall be deemed, where appropriate,
to refer to his beneficiary, estate or other legal representative. Any reference to the masculine gender in this Agreement shall
include, where appropriate, the feminine.

 

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14.
Survivorship. The respective rights and obligations of the parties hereunder shall survive any termination of this Agreement
to the extent necessary to the intended preservation of such rights and obligations. In particular, the provisions of Section
12 hereunder shall remain in effect as long as is necessary to give effect thereto.

 

15.
Governing Law; Jurisdiction; Disputes; Fees. This Agreement shall be construed, interpreted and governed in accordance
with the laws of the State of Delaware, without reference to rules relating to conflicts of law. In the event of any controversy
arising out of or relating to this Agreement, or any breach thereof, the parties shall first use their diligent and good faith
efforts to resolve the dispute by exchanging relevant information and negotiating in good faith. If such dispute resolution efforts
are unsuccessful, the parties to this Agreement agree to participate in non-binding mediation. Any party may, by written notice
to the other parties, require that the parties participate in non-binding mediation to attempt to resolve such dispute. Such mediation
shall be conducted in either Raleigh, North Carolina or Greensboro, North Carolina and shall be administered by a mediator mutually
acceptable to the Company and Executive, but absent their mutual agreement, by a mediator selected by the American Arbitration
Association (“AAA”) and administered by AAA in accordance with its then-existing Employment Arbitration Rules and
Mediation Procedures. Any suit with respect to this Agreement will be brought in the federal or state courts in the State of Delaware,
and Executive agrees and submits to the personal jurisdiction and venue thereof. Executive irrevocably waives any objection he
may have to the venue of any such suit brought in such court and any claim that such suit has been brought in an inconvenient
forum. Each party shall bear his or its own costs incurred in connection with enforcing its rights under this Agreement, including
attorney fees.

 

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16.
Effect on Prior Agreements. This Agreement contains the entire understanding between the parties hereto and supersedes
in all respects any prior or other agreement or understanding between the Company or any affiliate of the Company and Executive.
Under no circumstances shall Executive be entitled to any other severance payments or benefits of any kind, except for the payments
and benefits described herein.

 

17.
Withholding. The Company shall be entitled to withhold from payment any amount of withholding required by law.

 

18.
Counterparts. This Agreement may be executed in two or more counterparts, each of which will be deemed an original.

 

19.
Section 409A. This Agreement is intended to comply with the requirements of Section 409A of the Code (“Section 409A”),
and the parties hereby agree to amend this Agreement as and when necessary or desirable to conform to or otherwise properly reflect
any guidance issued under Section 409A after the date hereof without violating Section 409A. In case any one or more provisions
of this Agreement fails to comply with the provisions of Section 409A, the remaining provisions of this Agreement shall remain
in effect, and this Agreement shall be administered and applied as if the non-complying provisions were not part of this Agreement.
The parties in that event shall endeavor to agree upon a reasonable substitute for the non-complying provisions, to the extent
that a substituted provision would not cause this Agreement to fail to comply with Section 409A, and, upon so agreeing, shall
incorporate such substituted provisions into this Agreement. In no event whatsoever shall the Company be liable for any additional
tax, interest or penalty that may be imposed on Executive by Section 409A or damages for failing to comply with Section 409A.
A termination of Executive’s employment hereunder shall not be deemed to have occurred for purposes of any provision of
this Agreement providing for the payment of any amount or benefit constituting “deferred compensation” under Section
409A upon or following a termination of employment unless such termination is also a “separation from service” within
the meaning of Section 409A and, for purposes of any such provision of this Agreement, references to a “termination,”
“termination of employment” or like terms shall mean “separation from service.” In the event that any
payment or benefit made hereunder or under any compensation plan, program or arrangement of the Company would constitute payments
or benefits pursuant to a non-qualified deferred compensation plan within the meaning of Section 409A and, at the time of Executive’s
“separation from service” Executive is a “specified employee” within the meaning of Section 409A, then
any such payments or benefits shall be delayed until the six-month anniversary of the date of Executive’s “separation
from service”. Each payment made under this Agreement shall be designated as a “separate payment” within the
meaning of Section 409A. All reimbursements and in-kind benefits provided under this Agreement shall be made or provided in accordance
with the requirements of Section 409A to the extent that such reimbursements or in-kind benefits are subject to Section 409A.
All reimbursements for expenses paid pursuant hereto that constitute taxable income to Executive shall in no event be paid later
than the end of the calendar year next following the calendar year in which Executive incurs such expense or pays such related
tax. Unless otherwise permitted by Section 409A, the right to reimbursement or in-kind benefits under this Agreement shall not
be subject to liquidation or exchange for another benefit and the amount of expenses eligible for reimbursement, or in-kind benefits,
provided during any taxable year shall not affect the expenses eligible for reimbursement, or in-kind benefits to be provided,
respectively, in any other taxable year.

 

[Signature
Page Follows]

 

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

 

	MARINA BIOTECH, INC.	 	 
	 	 	 
	By:	/s/ Robert
    C. Moscato, Jr.	 	Date:
    September 21, 2018
	Name:	Robert
    C. Moscato, Jr.	 	 
	Title:	Chief
    Executive Officer	 	 
	 	 	 
	/s/
    R. Eric Teague	 	Date:
    September 21, 2018
	R. Eric Teague	 	 

 

    	 	21

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