Document:

EX-10.6

 Exhibit 10.6 

March 19, 2016 
 Gail Brown, MD 

Re: Employment Offer; Employment Agreement 
 Dear Gail:

 On behalf of ARMO BioSciences (the “Company”), I am very excited to offer you the position of Chief Medical Officer (CMO).
Speaking for myself, as well as the Company’s Board of Directors (the “Board”), we are looking forward to work with you and to the skills you will bring to the Company. We believe that with your background, you will make significant
contributions to the success of the Company. 
 If you accept this offer and the conditions of this offer are satisfied, this letter will
become the Employment Agreement between you and the Company. 
 1.    Position. You will be
employed as the CMO of the Company, working out of the Company’s offices located in Redwood City. As CMO you will report directly to the Chief Executive Officer (CEO) and you shall be responsible for the establishment of a highly competitive
team and supervise all activities related to clinical development at the Company. As the Company grows, your responsibilities may change. You are expected to present work related to your responsibilities as CMO to the Board of Directors. While
employed by the Company you will not actively engage in any other employment, occupation, consulting or business activity but will devote your best efforts and full business time to the Company. 

2.    Cash Compensation. 

a.    Base Salary. As CMO, you will earn a monthly salary in the gross amount of $33,333, which is equivalent to
$400,000 on an annualized basis. Your salary will be payable pursuant to the Company’s regular payroll schedule (or in the same manner as other officers of the Company), and will be subject to tax and other required withholdings. 

b.    Bonus. In addition, you will be eligible to earn an annual bonus up to 30% of the amount of base salary
actually paid to you during that calendar year. The precise amount of the bonus will be determined by the Board, based on the extent to which the Company meets minimum and exceeds minimum performance-related goals proposed by management and approved
by the Board for the Company’s fiscal year ending December 31. The annual bonus, if any, will be payable as soon as reasonably practicable in the following calendar year, but only if you are employed by the Company at the time of payment. 

 3.    Equity. 

a.    Initial Option. In connection with the commencement of your employment, the Company will recommend that the
Board of Directors grant you an option to purchase 525,234 shares of Common Stock (the (“Initial Option”). The exercise price per share will be determined by the Board of Directors when the Initial Option is granted. The shares will vest
and become exercisable, contingent on your continued employment with the Company on each respective vesting date, over a period of 4 years as follows: the shares will vest on a monthly schedule of 1/48 of the total number of shares of the Initial
Option upon your completion of each month of employment. The Initial Option will be an incentive stock option to the maximum extent allowed by the tax code and will be subject to the terms of the Company’s Stock Option Plan and standard Stock
Option Agreement. The Initial Option will have the same double trigger acceleration terms provided in the restricted stock that you currently hold. 

The terms of the Company’s Stock Option Plan will provide you the opportunity to exercise option grants before shares are vested, in
exchange for restricted stock subject to repurchase rights. You should consult your tax advisor about the tax consequences and appropriate elections of such an exercise. 

b.    Other Option Awards. During your employment with the Company, you will be eligible for additional option
awards, as may be determined in the sole discretion of the Board of Directors. 
 4.    Benefits.
You will be eligible for the employee benefits and to participate in the employee benefit plans, including paid vacation time and medical and dental insurance, that the Company generally makes available to its regular full-time employees pursuant to
the terms and condition of the applicable benefit policy or benefit plan as may exist from time-to-time. 

5.    Introductory Period; At-Will Employment. The first six
months of your employment is set as an introductory period to give both you and the Company an opportunity to evaluate each other. You and the Company will have a chance to determine your ability and interest in the job. It is also a time to decide
whether you are suited to your work and our Company. Your employment with the Company is and shall at all times during your employment hereunder, including during the “introductory period,” be
“at-will” employment. Your employment with the Company may be terminated by you or the Company at any time, with or without cause or advance notice. The
“at-will” nature of your employment shall remain unchanged while you are an employee of the Company, and may only be changed by an express written agreement that is signed by you and by the CEO. 

6.    Termination of Employment. 

a.    If you resign your employment with the Company or if the Company terminates your employment for Cause, at any time,
you will receive your base salary, as well as any accrued but unused vacation (if applicable), earned through the effective resignation or termination date, and no additional compensation or benefits shall be due. 

b.    If the Company terminates your employment for any reason, other than for Cause and a Separation occurs: 

  
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 (1)    The Company will give you written notice of
termination, your base salary well as any accrued but unused vacation (if applicable) earned through the effective termination date. 

(2)    You will be eligible to receive “severance” from the Company, consisting of; continuation
of your base salary for 3 months after the effective termination date, payable in accordance with the Company’s regular payroll schedule. The salary continuation payments will begin within 30 days after the release deadline specified below,
and, once they commence, will be retroactive to your Separation. 
 (3)    This “severance”
shall be conditioned on: (i) you signing and not revoking a general release of any and all claims, known and unknown, in a form provided by the Company, and (ii) your return to the Company of all of its property and confidential
information that is in your possession, custody or control. You must execute and return the release on or before the date specified by the Company in the prescribed form, which will in no event be later than 60 days after your Separation. If you
fail to return the release on or before the release deadline, or if you revoke the release, then you will not be entitled to the benefits described in this Section 6(b) or in Section 7(a). 

c.    For all purposes under this Agreement, a termination for “Cause” shall mean a determination by the Board
that your employment be terminated for any of the following reasons: (i) failure or refusal to comply in any material respect with lawful policies, standards or regulations of Company; (ii) a violation of a federal or state law or
regulation applicable to the business of the Company; (iii) conviction or plea of no contest to a felony under the laws of the United States or any State; (iv) fraud or misappropriation of property belonging to the Company or its
affiliates; (v) a breach in any material respect of the terms of any confidentiality, invention assignment or proprietary information agreement with the Company or with a former employer; (vi) your failure to perform your material duties
after having received written notice of such failure and at least thirty (30) days to cure such failure; or (vii) your misconduct or gross negligence in connection with the performance of your duties. For all purposes under this Agreement,
a “Separation” shall mean a “separation from service” as defined in the regulations under Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”). 

d.    For purposes of Section 409A of the Code, each salary continuation payment under Sections 6(b) or 7(a), as
applicable, is hereby designated as a separate payment. If the Company determines that you are a “specified employee” under Section 409A(a)(2)(B)(i) of the Code at the time of your Separation, then (i) the salary continuation
payments under Section 6(b) or 7(a), to the extent that they are subject to Section 409A of the Code, will commence during the seventh month after your Separation and (ii) the installments that otherwise would have been paid during
the first six months after your Separation will be paid in a lump sum when the salary continuation payments commence. 

7.    Conditions. This offer and employment with the Company is conditioned on the following: 

a.    As required by federal law, your completion of the INS Form 1-9 and
production of satisfactory documentary evidence of your identity and right to work in the United States. 

  
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 b.    Your signature agreement, without modification, to the Company’s
standard form of employee confidentiality/proprietary/trade secret and inventions assignment agreement, a copy of which is enclosed (“Employee Confidentiality Agreement”). 

c.    Your signature agreement, without modification, to this offer on or before April 16, 2013, after which time this
offer automatically will expire if not accepted. 
 8.    No Inconsistent Obligations or
Agreements. By accepting this offer of employment, you represent and warrant to the Company as follows: 

a.    You are not subject to any obligations or commitments, whether contractual or otherwise, that would preclude or
otherwise interfere with your ability to meet your obligations under this Agreement or that would infringe upon or violate the right of any other person or entity. 

b.    You shall not use or disclose, in connection with your employment by the Company, any confidential/proprietary/trade
secret information or intellectual property in which you or any other person or entity. 
 c.    You shall not bring onto
any Company premises, any property or material relating to any prior employer, or to any person or entity to whom you previously provided services in any capacity. 

d.    You are not relying on any negotiations, representations or agreements (oral or written) that may previously been
made to you about employment with the Company that is not expressly written in this Agreement 

9.    Dispute Resolution. In the event of any dispute or claim relating to or arising out of your
employment relationship with the Company, this agreement, or the termination of your employment with the Company for any reason (including, but not limited to, any claims of breach of contract, wrongful termination for age, sex, race, national
origin, disability or other discrimination or harassment), you and the Company agree that all such disputes shall be fully, finally and exclusively resolved by binding arbitration conducted by the American Arbitration Association in San Mateo
County, California. You and the Company hereby waive your respective rights to have any such disputes or claims tried to a judge or jury; provided, however, that this arbitration provision shall not apply to any disputes or claims relating to or
arising out of the actual or alleged misuse or misappropriation of the Company’s property, including, but not limited to, its trade secrets or proprietary information. 

10.    Complete Agreement. This letter, together with the Employee Confidentiality Agreement, sets
forth the entire understand and agreement between you and the Company regarding the terms and condition of your employment with Company and it cancels, supersedes and replaces any and all prior and contemporaneous representations or agreements,
whether written or oral. This Agreement cannot be changed, except by another written agreement, signed by you and by the CEO of the Company. 
 Gail, we are
all delighted to be able to extend this offer and look forward to working with you. To indicate your acceptance of this offer, please sign and date this letter the space provided below, sign the enclosed Employee Confidentiality Agreement, and
return both documents to me no later than close of business on March 23, 2016. A duplicate original of each document is enclosed for your records. 

  
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 The start date of your employment at the Company is April 11, 2016. Please discuss with the CEO in case this
date is not feasible. 
 Sincerely, 
  

	
	
	/s/ Peter Van Vlasselaer, Ph.D.
	Peter Van Vlasselaer, Ph.D.
	President and CEO
	ARMO BioSciences

 Agreed and Accepted March 21, 2016 
  

	
	
	/s/ Gail Brown, MD
	 Gail Brown, MD

  
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 EMPLOYMENT, CONFIDENTIAL INFORMATION AND 

INVENTION ASSIGNMENT AGREEMENT 

As a condition of my employment with ARMO BioSciences, Inc. (“Company”), and in consideration of my employment with Company and my
receipt of the compensation now and hereafter paid to me by Company, I agree to the following: 
 1.    At-Will Employment. I understand and acknowledge that my employment with Company is for an unspecified duration and constitutes “at-will” employment. I
acknowledge that this employment relationship may be terminated at any time, with or without cause, at the option of either Company or me, with or without notice. 

2.    Confidential Information. 

a.    Company and Third Party Information. I agree at all times during the term of my employment and
thereafter, to hold in strictest confidence, and not to use, except for the benefit of Company, or to disclose to any person, firm or corporation without written authorization of an officer of Company, any Confidential Information of Company. I
understand that “Confidential Information” means any Company proprietary information, technical data, trade secrets or know-how, including, but not limited to, research and product plans, products,
services, customer lists and customers, markets, developments, inventions, processes, formulas, technology, marketing, finances or other business information disclosed to me by Company either directly or indirectly in writing, orally or otherwise. I
recognize that Company has received and in the future will receive from third parties their confidential or proprietary information subject to a duty on Company’s part to maintain the confidentiality of such information and to use it only for
certain limited purposes, and I understand that such information is also Confidential Information. I further understand that Confidential Information does not include any of the foregoing items that has become publicly known and made generally
available through no wrongful act of mine or of others who were under confidentiality obligations as to the item or items involved. 

b.    Former Employer Information. I agree that I will not, during my employment with Company, improperly use
or disclose any proprietary information or trade secrets of any former or concurrent employer or other person or entity and that I will not bring onto the premises of Company any unpublished document or proprietary information belonging to any such
employer, person or entity unless consented to in writing by such employer, person or entity. 

3.    Inventions. 

a.    Inventions Retained and Licensed. I have attached hereto, as Exhibit A, a list describing all
inventions, original works of authorship, developments, improvements, and trade secrets that were made by me prior to my employment with Company (collectively referred to as “Prior Inventions”), that belong to me, that relate to
Company’s proposed business, products or research and development, and that are not assigned to Company hereunder; or, if no such list is attached, I represent that there are no such Prior Inventions. If in the course of my employment with
Company, I incorporate into a Company product, process or machine a Prior Invention 

 
owned by me or in which I have an interest, Company is hereby granted and will have a nonexclusive, royalty-free, irrevocable, perpetual, worldwide license, with the right to grant sublicenses,
to make, have made, modify, use and sell such Prior Invention as part of or in connection with such product, process or machine. 

b.    Assignment of Inventions. I agree that I will promptly make full written disclosure to Company, and
will hold in trust for the sole right and benefit of Company, and hereby assign to Company, or its designee, all my right, title, and interest in and to any and all inventions, original works of authorship, developments, concepts, improvements or
trade secrets, whether or not patentable or registrable under patent, copyright or similar laws, that I may solely or jointly conceive or develop or reduce to practice, or cause to be conceived or developed or reduced to practice, during the period
of time I am in the employ of Company (collectively referred to as “Inventions”), except as provided in Section 3(e) below. 

c.    Maintenance of Records. I agree to keep and maintain adequate and current written records of all
Inventions made by me (solely or jointly with others) during the term of my employment with Company. The records will be in the form of notes, sketches, drawings, and any other format that may be specified by Company. The records will be available
to and remain the sole property of Company at all times. 
 d.    Patent and Copyright Registrations. I
agree to assist Company, or its designee, at Company’s expense, in every way to secure Company’s rights in the Inventions and any copyrights, patents, mask work rights or other intellectual property rights relating thereto in any and all
countries, including disclosing to Company all pertinent information and data with respect thereto, and executing all applications, specifications, oaths, assignments and all other instruments that Company shall deem necessary in order to apply for
and obtain such rights and in order to assign and convey to Company, its successors, assigns and nominees the sole and exclusive rights, title and interest in and to such Inventions, and any copyrights, patents, mask work rights or other
intellectual property rights relating thereto. I further agree that my obligation to execute or cause to be executed, when it is in my power to do so, any such instrument or papers will continue after the termination of this Agreement. If Company is
unable because of my mental or physical incapacity or for any other reason to secure my signature to apply for or to pursue any application for any United States or foreign patents or copyright registrations covering Inventions or original works of
authorship assigned to Company as above, then I hereby irrevocably designate and appoint Company and its duly authorized officers and agents as my agent and attorney in fact, to act for and in my behalf and stead to execute and file any such
applications and to do all other lawfully permitted acts to further the prosecution and issuance of letters patent or copyright registrations thereon with the same legal force and effect as if executed by me. 

e.    Exception to Assignments. I understand that the provisions of this Agreement requiring assignment of
Inventions to Company do not apply to any invention that qualifies fully under the provisions of California Labor Code Section 2870 (attached hereto as Exhibit B). I will advise Company promptly in writing of any inventions that I believe
meet the criteria in California Labor Code Section 2870 and that are not otherwise disclosed on Exhibit A. 

  
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 4.    Conflicting Employment. I agree that, during the
term of my employment with Company, I will not engage in any other employment, occupation, consulting or other business activity directly related to the business in which Company is now involved or becomes involved during the term of my employment,
nor will I engage in any other activities that conflict with my obligations to Company. 
 5.    Returning
Company Documents. I agree that, at the time of leaving the employ of Company, I will deliver to Company (and will not keep in my possession, recreate or deliver to anyone else) any and all documents or property, or reproductions of any such
documents or property, developed by me pursuant to my employment with Company or otherwise belonging to Company, its successors or assigns. 

6.    Solicitation of Employees. I agree that for a period of twelve (12) months immediately
following the termination of my relationship with Company for any reason, whether with or without cause, I will not either directly or indirectly solicit, induce, recruit or encourage any of Company’s employees to leave their employment, or
take away such employees, or attempt to solicit, induce, recruit, encourage or take away employees of the Company, either for myself or for any other person or entity. 

7.    Representations. I agree to execute any proper oath or verify any proper document requested by
Company to carry out the terms of this Agreement. I represent that my performance of all the terms of this Agreement will not breach any agreement to keep in confidence proprietary information acquired by me in confidence or in trust prior to my
employment by Company. I have not entered into, and I agree I will not enter into, any oral or written agreement in conflict with the terms of this Agreement. 

8.    Arbitration and Equitable Relief. 

a.    Arbitration. Except as provided in Section 8(b) below, I agree that any dispute or controversy
arising out of or relating to any interpretation, construction, performance or breach of this Agreement, will be settled by arbitration to be held in __________, __________, in accordance with the rules then in effect of the American Arbitration
Association. The arbitrator may grant injunctions or other relief in such dispute or controversy. The decision of the arbitrator will be final, conclusive and binding on the parties to the arbitration. Judgment may be entered on the
arbitrator’s decision in any court having jurisdiction. Company and I will each pay one-half of the costs and expenses of such arbitration, and each of us will separately pay our counsel fees and
expenses. 
 b.    Equitable Remedies. I agree that it would be impossible or inadequate to measure and
calculate Company’s damages from any breach of the covenants set forth in Sections 2, 3, and 5 herein. Accordingly, I agree that if I breach any of such Sections, Company will have, in addition to any other right or remedy available, the right
to obtain an injunction from a court of competent jurisdiction restraining such breach or threatened breach and to specific performance of any such provision of this Agreement. I further agree that no bond or other security will be required in
obtaining such equitable relief and I hereby consent to the issuance of such injunction and to the ordering of specific performance. I hereby further consent to the personal jurisdiction of the state and federal courts located in California for any
lawsuit filed there against me by Company arising from or relating to this Agreement. 

  
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 9.    General Provisions. 

a.    Governing Law. This Agreement will be governed by, and construed and interpreted in accordance with and
under, the laws of the State of California, without reference to choice of laws or conflicts of laws principles. 

b.    Entire Agreement. This Agreement sets forth the entire agreement and understanding between Company and
me relating to the subject matter hereof and merges all prior and contemporaneous discussions between us. No modification of or amendment to this Agreement, or any waiver of any rights under this Agreement, will be effective unless in writing signed
by the party to be charged. Any subsequent change or changes in my duties, salary or compensation will not affect the validity or scope of this Agreement. 

c.    Severability. If one or more of the provisions in this Agreement are deemed void by law, then the
remaining provisions will continue in full force and effect. 
 d.    Successors and Assigns. This
Agreement will be binding upon my heirs, executors, administrators and other legal representatives and will be for the benefit of Company, its successors, and its assigns. 
  

							
	Date: March 21, 2016	 		 		 	
		 		 		 	 Signature

  

	
	 /s/ Gail Brown

	Gail Brown
	
	ARMO Biosciences, Inc.
	
	/s/ Peter Van Vlasselaer
	Signature
	Print Name: Peter Van Vlasselaer
	Title: President & Chief Executive Officer

  
 9EX-10.7

 Exhibit 10.7 

ARMO BIOSCIENCES 
 September 5, 2017 

Joseph Leveque, MD 
 [Address] 

 

	Re:	Employment Offer: Employment Agreement 

 Dear Joe: 

ARMO BioSciences, Inc. (the “Company”) is pleased to offer you employment on the following terms: 

1.    Position. Your initial title will be Chief Medical Officer, and you will initially report to the
Company’s Chief Executive Officer. This is a full-time position. You will be responsible for the establishment of a highly competitive team and supervise all activities related to clinical and regulatory development at the Company. As the
company grows, your responsibilities may change. While you render services to the Company, you will not engage in any other employment, consulting or other business activity (whether full-time or part-time) that would create a conflict of interest
with the Company. By signing this letter agreement, you confirm to the Company that you have no contractual commitments or other legal obligations that would prohibit you from performing your duties for the Company. 

2.    Cash Compensation. You will earn a monthly salary in the gross amount of $37,500, which is equivalent
to $450,000 on an annualized basis. At the start date of your employment you will receive a sign.-on bonus of $200,000 (the “Sign-on Bonus”). You will receive
an additional payment of $145,000 that will be paid at the time of the pay-out of the 2017 performance bonus (the “2017 Bonus”). In the event that you resign from your position at the Company or if
you are terminated for Cause prior to January 1, 2019, you agree to return the 11111 amount of the Sign-on Bonus and the 2018 Bonus. 

For fiscal year 2018 and each fiscal year thereafter, you will be eligible to earn an annual bonus up to 40% of the amount of base salary actually paid to you
during that calendar year. The precise amount of such bonus will be determined by the Board, based on the extent to which the Company meets minimum and exceeds minimum performance-related goals proposed by management and approved by the Board for
the Company’s fiscal year ending December 31. The determinations of the Company’s Board of Directors with respect to your bonus will be final and binding. 

 Dr. Leveque 

September 4, 2017 
  Page
 2
 
  

 Any bonus for a fiscal year will be paid within 21/2 months after the close of that fiscal year, but only if
you are still employed by the Company at the time of payment. 
 In addition to your regular salary, the Company will pay you an amount equal to $3,500 per
month from the time you start employment at the Company until December 31, 2018. 
 3.    Employee
Benefits. As a regular employee of the Company, you will be eligible to participate in a number of Company-sponsored benefits. In addition, you will be entitled to paid vacation in accordance with the Company’s vacation policy, as in
effect from time to time. 
 4.    Stock Options. Subject to the approval of the Company’s Board of
Directors or its Compensation Committee, you Swill be granted an option to purchase 1,359,997 shares of the Company’s Common Stock (the “Option”). The exercise price per share of the Option will be determined by the Board of Directors
or the Compensation Committee when the Option is granted. The Option will be subject to the terms and conditions applicable to options granted under the Company’s Stock Plan (the “Plan”), as described in the Plan and the applicable
Stock Option Agreement. You will vest 25% of the Option shares after 12 months of continuous service, and the balance will vest in equal monthly installments over the next 36 months of continuous service, as described in the applicable Stock Option
Agreement. You will vest in 100% of your remaining unvested Option shares if (a) the Company is subject to a Change in Control before your service with the Company terminates and (b) you are subject to an Involuntary Termination within 12
months after that Change in Control. The Option will be immediately exercisable, but in the event that your service terminates for any reason before you vest in the shares, the unvested portion of the purchased shares will be subject to repurchase
by the Company pursuant to the terms of the Plan. 
 5.    Proprietary Information and
Inventions Agreement. Like all Company employees, you will be required, as a condition of your employment with the Company, to sign the Company’s standard Proprietary Information and Inventions Agreement, a copy of which is
attached hereto as Exhibit A. 
 6.    Employment Relationship. Employment with the Company is for no
specific period of time. Your employment with the Company will be “at will,” meaning that either you or the Company may terminate your employment at any time and for any reason, with or without cause. Any contrary representations that may
have been made to you are superseded by this letter agreement. This is the full and complete agreement between you and the Company on this term. Although your job duties, title, compensation and benefits, as well as the Company’s personnel
policies and procedures, may change from time to time, the “at will” nature of your employment may only be changed in an express written agreement signed by you and a duly authorized officer of the Company (other than you). 

 Dr. Leveque 

September 4, 2017 
  Page
 3
 
  

 7.    Tax Matters. 

(a)    Withholding. All forms of compensation referred to in this letter agreement are subject to reduction to
reflect applicable withholding and payroll taxes and other deductions required by law. 
 (b)    Tax
Advice. You are encouraged to obtain your own tax advice regarding your compensation from the Company. You agree that the Company does not have a duty to design its compensation policies in a manner that minimizes your tax liabilities, and
you will not make any claim against the Company or its Board of Directors related to tax liabilities arising from your compensation. 

8.    Interpretation, Amendment and Enforcement. This letter agreement and Exhibit A supersede
and replace any prior agreements, representations or understandings (whether written, oral, implied or otherwise) between you and the Company and constitute the complete agreement between you and the Company regarding the subject matter set forth
herein. This letter agreement may not be amended or modified, except by an express written agreement signed by both you and a duly authorized officer of the Company. The terms of this letter agreement and the resolution of any disputes as to the
meaning, effect, performance or validity of this letter agreement or arising out of, related to, or in any way connected with, this letter agreement, your employment with the Company or any other relationship between you and the Company (the
“Disputes”) will be governed by California law, excluding laws relating to conflicts or choice of law. You and the Company submit to the exclusive personal jurisdiction of the federal and state courts located in California in connection
with any Dispute or any claim related to any Dispute. 
 9.    Definitions. The following terms have the meaning
set forth below wherever they are used in this letter agreement: 
 “Cause” means a determination by the Board that your
employment be terminated for any of the following reasons: (i) failure or refusal to comply in any material respect with lawful policies, standards or regulations of Company; (ii) a violation of a federal or state law or regulation
applicable to the business of the Company; (iii) conviction or plea of no contest to a felony under the laws of the United States or any State; (iv) fraud or misappropriation, of property belonging to the Company or its affiliates;
(v) a breach in any material respect of the terms of any confidentiality, invention assignment or proprietary information agreement with the Company or with a former employer, (vi) your failure to perform your material duties after having
received written notice of such failure and at least thirty (30) days to cure such failure; or (vii) your misconduct or gross negligence in connection with the performance of your duties. 

“Change in Control” means (i) the consummation of a sale, merger or consolidation of the Company with or
into another entity or (ii) the dissolution, liquidation or winding up of the Company. The foregoing notwithstanding, a sale, merger or consolidation of the Company shall not constitute a “Corporate Transaction” if immediately after
such sale, 

 Dr. Leveque 

September 4, 2017 
  Page
 4
 
  

 
merger or consolidation a majority of the voting power of the capital stock of the continuing or surviving entity, or any direct or indirect parent corporation of such continuing or surviving
entity, will be owned by the persons who were the Company’s stockholders immediately prior to such sale, merger or consolidation in substantially the same proportions as their ownership of the voting power of the Company’s capital stock
immediately prior to such merger or consolidation.. 
 “Involuntary Termination” means either (a) your
Termination Without Cause or (b) your Resignation for Good Reason. 
 “Resignation for Good
Reason” means that you resign within 12 months after one of the following conditions has come into existence without your consent: (i) a reduction in your base salary by more than 10%; (ii) a material, diminution of your authority,
duties or responsibilities; or (iii) a relocation of your principal workplace by more than 30 miles. A condition shall not be considered “Good Reason” unless you give the Company written notice of such condition within 90 days after
such condition comes into existence and the Company fails to remedy such condition within 30 days after receiving your written notice_ 

“Separation” means a “separation from service,” as defined in the regulations under Section 409A of the Code.

 “Termination Without Cause” means a Separation as a result of a termination of your employment by the
Company without Cause, provided you are willing and able to continue performing services within the meaning of Treasury Regulation 1A09A-1(n)(1). 

* * * * * 
 We hope that you will
accept our offer to join the Company. You may indicate your agreement with these terms and accept this offer by signing and dating both the enclosed duplicate original of this letter agreement and the enclosed Proprietary Information and Inventions
Agreement and returning them to me. As required by law, your employment with the Company is contingent upon your providing legal proof of your identity and authorization to work in the United States. 

The start date of your employment at the Company is October 1, 2017. Please discuss with the CEO in case this date is not feasible. 

 

	
	Very truly yours,
	
	ARMO BIOSCIENCES, INC.
	
	             /s/ Peter Van
Vlasselaer

	Peter Van Vlasselaer, President and CEO

 Dr. Leveque 

September 4, 2017 
  Page
 5
 
  

 I have read and accept this employment offer: 

 

	
	 /s/ Joseph A. Leveque

	Signature of Joseph A. Leveque, MD
	Dated: September 5, 2017

 PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT 

The following confirms and memorializes an agreement that ARMO Biosciences, Inc., a Delaware corporation (the “Company”) and I
(Joseph A. Leveque, MD) have had since the commencement of my employment (which term, for purposes of this agreement, shall be deemed to include any relationship of service to the Company that I may have had prior to actually becoming an employee)
with the Company in any capacity and that is and has been a material part of the consideration for my employment by Company: 

1.    I have not entered into, and I agree I will not enter into, any agreement either written or oral in conflict with
this Agreement or my employment with Company. I will not violate any agreement with or rights of any third party or, except as expressly authorized by Company in writing hereafter, use or disclose my own or any third party’s confidential
information or intellectual property when acting within the scope of my employment or otherwise on behalf of Company. Further, I have not retained anything containing any confidential information of a prior employer or other third party, whether or
not created by me. 
 2.    Company shall own all right, title and interest (including patent rights, copyrights, trade
secret rights, mask work rights, sun generis database rights and all other intellectual property rights of any sort throughout the world) relating to any and all inventions (whether or not patentable), works of authorship, mask works, designs, know-how, ideas and information made or conceived or reduced to practice, in whole or in part, by me during the term of my employment with Company to and only to the fullest extent allowed by California Labor Code
Section 2870 (which is attached as Appendix A) (collectively “Inventions”) and I will promptly disclose all Inventions to Company. Without disclosing any third party confidential information, I will also disclose anything I believe is
excluded by Section 2870 so that the Company can make an independent assessment I hereby make all assignments necessary to accomplish the foregoing. I shall further assist Company, at Company’s expense, to further evidence, record and
perfect such assignments, and to perfect, obtain, maintain, enforce, and defend any rights specified to be so owned or assigned. I hereby irrevocably designate and appoint Company as my agent and attorney-in-fact, coupled with an interest and with full power of substitution, to act for and in my behalf to execute and file any document and to do all other lawfully permitted acts to further the purposes
of the foregoing with the same legal force and effect as if executed by me. Without limiting Section 1 or Company’s other rights and remedies, if, when acting within the scope of my employment or otherwise on behalf of Company, I use or
disclose my own or any third party’s confidential information or intellectual property (or if any Invention cannot be fully made, used, reproduced, distributed and otherwise exploited without using or violating the foregoing), Company will have
and I hereby grant Company a perpetual, irrevocable, worldwide royalty-free, non-exclusive, sublicensable right and license to exploit and exercise all such confidential information and intellectual property
rights. 
 3.    To the extent allowed by law, paragraph 2 includes all rights of paternity, integrity, disclosure and
withdrawal and any other rights that may be known as or referred to as “moral rights,” “artist’s rights,” “droit moral,” or the like (collectively “Moral Rights”). To the extent I retain any such Moral
Rights under applicable law, I hereby ratify and consent to any action that may be taken with respect to such Moral Rights by or authorized by Company and agree not to assert any Moral Rights with respect thereto. I will confirm any such
ratifications. consents and agreements from time to time as requested by Company. 

 4.    I agree that all Inventions and all other business, technical and
financial information (including, without limitation, the identity of and information relating to customers or employees) I develop, learn or obtain during the term of my employment that relate to Company or the business or demonstrably anticipated
business of Company or that are received by or for Company in confidence, constitute “Proprietary Information.- I will hold in confidence and not disclose or, except within the scope of my employment, use any Proprietary Information. However, I
shall not be obligated under this paragraph with respect to information I can document is or becomes readily publicly available without restriction through no fault of mine. Upon termination of my employment, I will promptly return to Company all
items containing or embodying Proprietary Information (including all copies), except that I may keep my personal copies of (1) my compensation records, (ii) materials distributed to shareholders generally and (iii) this Agreement. I
also recognize and agree that I have no expectation of privacy with respect to Company’s telecommunications, networking or information processing systems (including, without limitation, stored computer files, email messages and voice messages)
and that my activity and any files or messages on or using any of those systems may be monitored at any time without notice. 

5.    Until one year after the term of my employment, I will not encourage or solicit any employee or consultant of
Company to leave Company for any reason (except for the bona fide firing of Company personnel within the scope of my employment). 

6.    I agree that during the term of my employment with Company (whether or not during business hours), I will not engage
in any activity that is in any way competitive with the business or demonstrably anticipated business of Company, and I will not assist any other person or Organization in competing or in preparing to compete with any business or demonstrably
anticipated business of Company. 
 7.    I agree that this Agreement is not an employment contract for any particular
term and that I have the right to resign and Company has the right to terminate my employment at will, at any time, for any or no reason, with or without cause. In addition, this Agreement does not purport to set forth all of the terms and
conditions of my employment, and, as an employee of Company, I have obligations to Company which are not set forth in this Agreement. However, the terms of this Agreement govern over any inconsistent terms and can only be changed by a subsequent
written agreement signed by the President of Company. 
 8.    I agree that my obligations under paragraphs 2, 3, 4 and
5 of this Agreement shall continue in effect after termination of my employment, regardless of the reason or reasons for termination, and whether such termination is voluntary or involuntary on my part, and that Company is entitled to communicate my
obligations under this Agreement to any future employer or potential employer of mine. My obligations under paragraphs 2, 3 and 4 also shall be binding upon my heirs, executors, assigns, and administrators and shall inure to the benefit of Company,
its subsidiaries, successors and assigns. 

 9.    Any dispute in the meaning, effect or validity of this Agreement shall
be resolved in accordance with the laws of the State of California without regard to the conflict of laws provisions thereof. I further agree that if one or more provisions of this Agreement are held to be illegal or unenforceable under applicable
California law, such illegal or unenforceable portion(s) shall be limited or excluded from this Agreement to the minimum extent required so that this Agreement shall otherwise remain in -MI force and effect
and enforceable in accordance with its terms. This Agreement is fully assignable and transferable by Company, but any purported assignment or transfer by me is void. I also understand that any breach of this Agreement will cause irreparable harm to
Company for which damages would not be an adequate remedy, and, therefore, Company will be entitled to injunctive relief with respect thereto in addition to any other remedies and without any requirement to post bond_ 

NOTICE: This agreement does not affect any immunity under 18 USC Sections 1833(b) (1) or (2), which read as follows (note that for purposes of this
statute only, individuals performing work as contractors or consultants are considered to be employees): 
 (1)    An
individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that (A) is made (i) in confidence to a Federal, State, or local government official, either
directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing
is made under seal. 
 (2)    An individual who files a lawsuit for retaliation by an employer for reporting a suspected
violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual (A) files any document containing the trade secret under seal; and (B) does
not disclose the trade secret, except pursuant to court order. 
 I HAVE READ THIS AGREEMENT CAREFULLY AND I UNDERSTAND AND ACCEPT THE
OBLIGATIONS WHICH IT IMPOSES UPON ME WITHOUT RESERVATION. NO PROMISES OR REPRESENTATIONS HAVE BEEN MADE TO ME TO INDUCE ME TO SIGN THIS AGREEMENT. I SIGN THIS AGREEMENT VOLUNTARILY AND FREELY, IN DUPLICATE, WITH THE UNDERSTANDING THAT THE COMPANY
WILL RETAIN ONE COUNTERPART AND THE OTHER COUNTERPART WILL BE RETAINED BY ME. 

					
	September 5, 2017	 		 	Employee
			
		 		 	 /s/ Joseph A. Leveque

		 		 	Signature
			
		 		 	 Joseph A. Leveque, MD

		 		 	Name (Printed)

  

			
	Accepted and Agreed to:
		
	By:	 	 /s/ Peter Van Vlasselaer

	Name:	 	Peter Van Vlasselaer, PhD
	Title:	 	President and CEO

 APPENDIX A 

California Labor Code Section 2870. Application of provision providing that employee shall assign or offer to assign rights in invention
to employer. 
 (a)    Any provision in an employment agreement which provides that an employee shall assign, or offer
to assign, any of his or her rights in an invention to his or her employer shall not apply to an invention that the employee developed entirely on his or her own time without using the employer’s equipment, supplies, facilities, or trade secret
information except for those inventions that either: 
 (1)    Relate at the time of conception or reduction to
practice of the invention to the employer’s business, or actual or demonstrably anticipated research or development of the employer; or 

(2)    Result from any work performed by the employee for his employer. 

(b)    To the extent a provision in an employment agreement purports to require an employee to assign an invention
otherwise excluded from being required to be assigned under subdivision (a), the provision is against the public policy of this state and is unenforceable.

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