Document:

Exhibit 4.5 

 

Form of Subordinated Note 

 

(FACE OF SECURITY) 

 

[Each Global Security shall bear substantially the following
legend: 

 

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES
IN DEFINITIVE REGISTERED FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY
OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE
TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

 

[If the Security has original issue discount for U.S. federal
income tax purposes, insert tax legend: 

 

[FOR PURPOSES OF SECTIONS 1272, 1273, and 1275 OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED (“THE CODE”), THIS SECURITY IS BEING ISSUED WITH ORIGINAL ISSUE DISCOUNT. THE AMOUNT
OF ORIGINAL ISSUE DISCOUNT (AS DEFINED IN SECTION 1273(A)(1) OF THE CODE AND TREASURY REGULATION SECTION 1.1273-1(A)) WITH RESPECT
TO THIS SECURITY IS , THE ISSUE DATE (AS DEFINED IN SECTION 1275(A)(2) OF THE CODE AND TREASURY REGULATION SECTION 1.1273-2(A)(2))
OF THIS SECURITY IS , THE ISSUE PRICE (AS DEFINED IN SECTION 1273(B) OF THE CODE AND TREASURY REGULATION SECTION 1.1273-2(A)) OF
THIS SECURITY IS , AND THE YIELD TO MATURITY (AS DEFINED IN TREASURY REGULATION SECTION 1.1272-1(B)) OF THIS SECURITY IS .]
] 

 

     

     

    

 

TFF PHARMACEUTICALS, INC.

[ Title of Security ]

 

	 	 	 
	No. [  ]	 	CUSIP No.: [  ]
	 	 	[Common Code][ISIN]: [  ]
	 	 	[$ ]

 

TFF PHARMACEUTICALS, INC., a Delaware corporation (“Issuer”,
which term includes any successor corporation), for value received promises to pay to [If the Security is a Global Security
— CEDE & CO.][If the Security is not a Global Security — ] or registered assigns, the principal sum
of on , (the “Maturity Date”) [If the Security is to bear interest prior to maturity, insert—, and to
pay interest thereon from or from the most recent interest payment date to which interest has been paid or duly provided for, [semiannually
in arrears on and in each year], commencing , (each, an “Interest Payment Date”) at the rate of [ % per annum],
until the principal hereof is paid or made available for payment [If applicable insert—, and (to the extent that the
payment of such interest shall be legally enforceable) at the rate of % per annum on any overdue principal and on any overdue installment
of interest]. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided
in the Indenture (as defined below), be paid to the Holder in whose name this Security (or one or more predecessor Securities)
is registered at the close of business on the record date for such interest, which shall be the or (whether or not a Business Day),
as the case may be, next preceding such Interest Payment Date (each, an “Interest Record Date”). Interest will be computed
on the basis of [a 360-day year of twelve 30-day months].]

 

[If the Security is not to bear interest prior to maturity,
insert—The principal of this Security shall not bear interest except in the case of a default in payment of principal
upon acceleration, upon redemption or at maturity and, in each such case, the overdue principal of this Security shall bear interest
at the rate of % per annum (to the extent that the payment of such interest shall be legally enforceable), which shall accrue from
the date of such default in payment to the date payment of such principal has been made or duly provided for. Interest on any overdue
principal shall be payable on demand.]

 

Reference is made to the further provisions set forth on the
reverse of this Security contained herein, which will for all purposes have the same effect as if set forth at this place.

 

     

     

    

 

IN WITNESS WHEREOF, the Issuer has caused this Security to be
signed manually or by facsimile by its duly authorized officer under its corporate seal.

 

	 	 	 	 	 	 
	 	TFF PHARMACEUTICALS, INC.
	 	 	 
	 	By:	 	

	 	 	 	Name:	 	
                        
	 	 	 	Title:	 	

 

	 	 	 	 
	Attest:	 
	 	 	 
	By:	 	
                	 
	Name:	 	
	 
	Title:	 	
	 

 

This is one of the Securities of the series designated herein
and referred to in the within-mentioned Indenture.

 

Dated: [  ]

	 	 	 	 	 	 
	 	, as Trustee
	 	 	 
	 	By:	 	

	 	 	 	Title:	 	
                     

 

     

     

    

 

(REVERSE OF SECURITY) 

 

TFF PHARMACEUTICALS, INC. 

 

[ Title of Security ] 

 

		1.	Indenture

 

This Security is one of a duly authorized issue of debentures,
notes or other evidence of indebtedness (hereinafter called the “Securities”) of the Issuer of the series hereinafter
specified, which series is initially limited in aggregate principal amount to [$] , all of such Securities issued and to
be issued under an Indenture dated as of , (the “Indenture”) between the Issuer and as trustee (the “Trustee”).
Capitalized terms herein are used as defined in the Indenture unless otherwise indicated. The terms of the Securities include those
stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as in effect on the
date of the Indenture. The Securities are subject to all such terms, and Holders are referred to the Indenture and the Trust Indenture
Act for a statement of all such terms. To the extent permitted by applicable law, in the event of any inconsistency between the
terms of this Security and the terms of the Indenture, the terms of the Indenture shall control. 

 

This Security is one of a series of Securities designated pursuant
to the Indenture [and an [Supplemental Indenture] dated ____________, issued pursuant to Section 2.01 and Section 2.03 thereof
(the “Supplement”)] as . The Securities are general unsecured obligations of the Issuer. The Issuer may, subject to
the provisions of the Indenture and applicable law, issue additional Securities of any series under the Indenture. 

 

		2.	Method
of Payment.

 

The Issuer shall pay interest on the Securities (except defaulted
interest) to the persons who are the registered Holders at the close of business on the Interest Record Date immediately preceding
the Interest Payment Date notwithstanding any transfer or exchange of such Security subsequent to such Interest Record Date and
prior to such Interest Payment Date. Holders must surrender Securities to the Trustee to collect principal payments. The Issuer
shall pay Principal and interest in money of [the United States] that at the time of payment is legal tender for payment
of public and private debts. [However, the payments of interest, and any portion of the Principal (other than interest payable
at maturity or on any redemption or repayment date or the final payment of Principal) shall be made by the Paying Agent, upon receipt
from the Issuer of immediately available funds by [a./p.m.], New York City time (or such other time as may be agreed to
between the Issuer and the Paying Agent or the Issuer), directly to a Holder (by Federal funds wire transfer or otherwise) if the
Holder has delivered written instructions to the Trustee 15 days prior to such payment date requesting that such payment will be
so made and designating the bank account to which such payments shall be so made and in the case of payments of Principal surrenders
the same to the Trustee in exchange for a Security or Securities aggregating the same principal amount as the unredeemed principal
amount of the Securities surrendered.] 

 

	3.	Redemption. 

 

[The Securities of this series may be redeemed at any time
[on or after , ], as a whole or in part, at the option of the Issuer, upon mailing notice of such redemption not
less than 30 and not more than 60 days to the Holders of such Securities, at a redemption price equal to .] 

 

		4.	Paying
Agent and Security Registrar

 

Initially, the Trustee will act as Paying Agent and Security
Registrar. The Issuer may change any Paying Agent or Security Registrar without notice to the Holders.

 

		5.	Denominations;
Transfer; Exchange.

 

The Securities are in registered form, without coupons, in denominations
of [$1,000] and multiples of [$1,000]. A Holder shall register the transfer of or exchange Securities in accordance
with the Indenture. The Issuer may require a Holder, among other things, to furnish appropriate endorsements and transfer documents
and to pay certain transfer taxes or similar governmental charges payable in connection therewith as permitted by the Indenture.
[The Issuer need not register the transfer of or exchange (a) any Securities for a period of fifteen (15) days preceding the
first mailing of notice that such Securities are to be redeemed, or (b) any Securities selected, called or being called for redemption
in whole or in part, except, in the case of any Security to be redeemed in part, the portion thereof not to be so redeemed.] 

 

    1

     

    

 

		6.	Persons
Deemed Owners.

 

The registered Holder of a Security shall be treated as the
owner of it for all purposes.

 

		7.	Unclaimed
Funds.

 

If funds for the payment of principal or interest remain unclaimed
for two years, the Trustee and the Paying Agent will repay the funds to the Issuer. After that, all liability of the Trustee and
such Paying Agent with respect to such funds shall cease.

 

		8.	Defeasance.

 

The Indenture [as amended by the Supplement] contains
provisions for defeasance at any time of (a) the entire indebtedness of the Issuer on this Security and (b) certain restrictive
covenants and the related Events of Default, upon compliance by the Issuer with certain conditions set forth therein, which provisions
[apply] to this Security. 

 

		9.	Amendment;
Supplement; Waiver.

 

Subject to certain exceptions, the Securities of this series,
[the Supplement] and the provisions of the Indenture relating to the Securities of this series may be amended or supplemented with
the written consent of the Holders of at least a majority in aggregate principal amount of the Securities of this series then outstanding,
and any existing Default or Event of Default, other than the non-payment of the principal amount of or interest on the Securities
of this series, or compliance with certain provisions may be waived with the consent of the Holders of a majority in aggregate
principal amount of all the Securities of this series, then outstanding.

 

Without notice to or consent of any Holder, the parties thereto
may amend or supplement the Indenture and the Securities to, among other things, cure any ambiguity, defect or inconsistency, provide
for uncertificated Securities in addition to or in place of certificated Securities, or make any other change that does not adversely
affect the rights of any Holder of a Security.

 

		10.	Defaults
and Remedies.

 

If an Event of Default (other than certain bankruptcy Events
of Default with respect to the Issuer) occurs and is continuing, the Trustee or the Holders of at least 25% in aggregate principal
amount of Securities of this series then outstanding (voting as a separate class) by notice in writing to the Issuer (and also
to the Trustee if such notice is given by the Holders) may declare [the entire principal] of the Securities of this series
and the interest accrued thereon, if any, to be due and payable immediately in the manner and with the effect provided in the Indenture.
If a bankruptcy Event of Default with respect to the Issuer occurs and is continuing, then [the entire principal] of the
Securities then outstanding and interest accrued thereon, if any, shall become due and payable immediately in the manner and with
the effect provided in the Indenture. Holders of Securities may not enforce the Indenture or the Securities except as provided
in the Indenture. The Trustee is not obligated to enforce the Indenture or the Securities unless it has received indemnity satisfactory
to it. The Indenture permits, subject to certain limitations therein provided, Holders of a majority in aggregate principal amount
of the Securities then outstanding to direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Holders
of Securities notice of certain continuing Defaults or Events of Default if it determines that withholding notice is in their interest. 

 

		11.	Subordination.

 

Reference is made to the Indenture, including, without limitation,
provisions subordinating the payment of principal of and premium, if any, and interest on the Securities to the prior payment in
full of all Senior Indebtedness as defined in the Indenture. Such further provisions shall for all purposes have the same effect
as though fully set forth at this place.

 

		12.	Trustee
Dealings with Issuer.

 

The Trustee under the Indenture, in its individual or any other
capacity, may become the owner or pledgee of Securities and may otherwise deal with the Issuer as if it were not the Trustee.

 

    2

     

    

 

		13.	No
Recourse Against Others.

 

No stockholder, director, officer, employee or incorporator,
past, present or future as such, of the Issuer or any predecessor or successor corporation thereof shall have any liability for
any obligation under the Securities or the Indenture or for any claim based on, in respect of or by reason of, such obligations
or their creation. Each Holder of a Security by accepting a Security waives and releases all such liability. The waiver and release
are part of the consideration for the issuance of the Securities.

 

		14.	Authentication.

 

This Security shall not be valid until the Trustee manually
signs the certificate of authentication on this Security.

 

		15.	Abbreviations
and Defined Terms.

 

Customary abbreviations may be used in the name of a Holder
of a Security or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants
with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

 

		16.	CUSIP
Numbers.

 

Pursuant to a recommendation promulgated by the Committee on
Uniform Security Identification Procedures, the Issuer has caused CUSIP numbers to be printed on the Securities as a convenience
to the Holders of the Securities. No representation is made as to the accuracy of such numbers as printed on the Securities and
reliance may be placed only on the other identification numbers printed hereon.

 

		17.	Governing
Law.

 

The laws of the State of New York shall govern the Indenture
and this Security thereof, and for all purposes this Security shall be governed by and construed in accordance with the laws of
such State without regard to any principle of conflict of laws that would require or permit the application of the laws of any
other jurisdiction, except as may otherwise be required by mandatory provisions of law.

 

    3

     

    

 

ASSIGNMENT FORM 

 

I or we assign and transfer this Security to

 

	 
	
 

	(Print or type name, address and zip code of assignee or transferee)
	 
	 
	
 

	(Insert Social Security or other identifying number of assignee or transferee)

 

and irrevocably appoint agent to transfer this Security on the
books of the Issuer. The agent may substitute another to act for him.

 

	 	 	 	 	 	 	 	 	 
	Dated:	 	
	 	 	 	Signed:	 	

	 	 	 	 	 	 	 	 	(Signed exactly as name appears on the other side of this Security)

 

	Signature	 	 	 
	Guarantee:	 	
	 
	 	 	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor program reasonably acceptable to the Trustee)	 

 

 

4Document

Exhibit 10.1

EMPLOYMENT AGREEMENT

EMPLOYMENT AGREEMENT (“Agreement”) made this 23rd day of July, 2020 (the “Effective Date”) between Dicerna Pharmaceuticals, Inc., a Delaware corporation (“Company”), on the one hand and Shreeram Aradhye, M.D. (the “Executive”) on the other hand.

WHEREAS, the Company desires to employ the Executive and the Executive desires to be employed by the Company, on terms set forth herein;

NOW, THEREFORE, in consideration of the mutual agreements set forth herein, the parties agree as follows:

1.Term of Employment. The Executive’s employment under this Agreement shall commence on September 8, 2020 (the “Start Date”) and shall end on such date as the Executive’s employment terminates in accordance with Section 4 of this Agreement. Subject to the balance of this Agreement, the Executive shall be an at-will employee of the Company whose employment may be terminated (by the Company or by the Executive) at any time, for any or no reason, in which case the Executive will be entitled to the separation benefits set forth in Section 4, below.

2.Duties. During his employment with the Company, the Executive shall have the title of Executive Vice President & Chief Medical Officer.  The Executive shall devote his full business time and effort to the performance of his duties for the Company, which he shall perform faithfully and to the best of his ability, subject to his reasonable obligations pursuant to Section 9 (“Litigation And Regulatory Cooperation”) of the Employment Agreement dated January 1, 2019 between Axcella Health Inc. and the Employee (the “Axcella Employment Agreement”), and provided that such reasonable obligations do not present a conflict of interest for the Company. Notwithstanding the foregoing, the Executive may serve on boards of directors of other companies, with the approval of the Chief Executive Officer of the Company or engage in charitable, civic and educational activities and community affairs, provided that any such activities and affairs do not, in the aggregate, materially interfere with the proper performance of the Employee’s duties and responsibilities to the Company. The Executive shall have all of the customary powers and duties associated with his position and shall be subject to the Company’s policies, procedures, and approval practices, as generally in effect from time to time for all senior executives of the Company and the direction and oversight of the Board. The Executive will report directly to the Chief Executive Officer & President of the Company.

3.Compensation and Related Matters.
a.Base Salary. The Company shall pay the Executive base salary at a gross rate of $20,833.00 paid twice monthly (which annualizes to $500,000.00), less withholdings and deductions required and/or permitted by law. The Executive’s base salary shall be paid in conformity with the Company’s payroll practices generally applicable to the Company’s senior executives.  For merit increases to the Executive’s base salary for 2021 based on performance during 2020, if any, the Executive merit increase shall be 75% of a full calendar year increase (i.e., determined as if the Executive were employed by the Company for 75% of 2020).

b.Signing and Annual Bonus. The Company shall pay the Executive a one-time signing bonus (the “Signing Bonus”) in the gross amount of $100,000.00 (less applicable withholding taxes and deductions) payable within 30 days of the Executive’s start date at the Company. The Signing Bonus is subject to the following repayment obligations: as a condition of the Executive’s employment with the Company and for receiving the Signing Bonus, the Executive agrees that if, at any time during the twelve months following the Executive’s first date of employment with the Company, the Executive (a) resigns his employment with the Company without Good Reason, he shall repay the Signing Bonus, on a pro-rata basis based on length of service (e.g., if the Executive were to resign after nine months, he shall repay one-quarter of the Signing Bonus); or (b) the Company terminates the Executive’s employment for Cause, he shall repay the Signing Bonus in-full, and in all cases specifically authorize the Company to deduct all of the Signing Bonus required to be repaid from his last paycheck and to the extent that there is a balance still owed by the Executive, he will provide payment of such balance within thirty days (30) of his last date of employment. The Executive shall be eligible to be considered for an Annual Bonus upon achieving of certain pre-determined performance targets consistent with any Incentive Compensation Plan established by the Compensation Committee (the “Committee”). The Annual Bonus shall be based, in part, on the Executive’s performance. The grant of such a bonus shall be in the sole discretion of the Committee. The maximum bonus amount for which the Executive will be eligible is forty-five percent (45%) of base salary earned for the calendar year, provided that, the Annual Bonus for 2020 shall be seventy-five percent (75%) of a full calendar year Annual Bonus if one 
1

is determined to be payable. The Annual Bonus will be earned only after it has been granted by the Committee. The Annual Bonus shall be paid to the Executive following the close of the fiscal year to which it relates, in no event later than March 15th of the calendar year immediately following the calendar year in which it was earned. The Executive must be actively employed by the Company at the time the Committee approves granting of bonuses to be eligible to receive such bonus.

c.Equity Compensation. Subject to the approval of the Board or an appropriate committee thereof, the Executive shall be eligible for:
i.a stock option grant (the “Option Grant”) to purchase in total up to 124,700 shares of the Company’s Common Stock at an exercise price equal to the fair market value of each share on the date of grant as determined by the Board or an appropriate committee thereof. The Option Grant shall vest in accordance with the following schedule: 25% of the shares underlying the Option Grant will vest on the twelve (12) month anniversary of Executive’s commencement of full-time employment with the Company and the remaining shares will vest and become exercisable on a pro rata, monthly basis thereafter on the same day of the month as the vesting commencement date (or if there is no corresponding day, on the last day of the month), such that all shares underlying the Option Grant shall have vested on the fourth anniversary of the vesting commencement date. Vesting of the Option Grant will be subject to Executive’s continued status as an employee, consultant or other service provider with the Company at each such vesting period. The Option Grant will be subject to the terms of a stock plan and a stock option agreement that the Company and Executive will be required to execute.

ii.a grant of an award of an aggregate 28,100 restricted stock units (the “RSU Grant”). The RSU Grant shall vest in accordance with the following schedule: 25% of the total number of restricted stock units granted will vest on September 15, 2021 and on the first, second and third anniversaries of that date. Vesting of the RSU Grant will be subject to Executive’s continued status as an employee, consultant or other service provider with the Company at each such vesting period. The RSU Grant will be subject to the terms of the governing plan document and a restricted stock unit award agreement that the Company and the Executive will be required to execute.

Such equity compensation grants and awards shall be brought to the Board or appropriate committee for approval promptly, but in any event within thirty (30) days of the Start Date.

For equity compensation grants and awards issued in 2021 based on performance during 2020, if any, the Executive grants and/or awards shall be 75% of a full calendar year grant or award (i.e., determined as if the Executive were employed by the Company for 75% of 2020).

d.Benefits. During his employment with the Company, the Executive shall be entitled to participate in all employee benefit plans and programs, including paid sick leave and holidays, life insurance, disability, medical, dental, and retirement savings plans, to the same extent generally available to senior executives of the Company, in accordance with the terms of those plans and programs. The Executive shall be permitted up to four weeks of paid vacation per year, which will accrue on a monthly basis. The Executive will not be allowed to accumulate more than three weeks of unused vacation days at any given time. The Executive may carry over a maximum of ten unused vacation days from one calendar year to the next.

e.Expenses. The Company agrees to reimburse the Executive for reasonable out-of-pocket expenses incurred in connection with Company business and within standards to be established by the Board from time to time, including, without limitation, travel and accommodations for authorized business trips, provided vouchers therefor, or other supporting information as the Company may reasonably require, are presented to the Company. All reimbursements provided under this Agreement shall be made or provided in accordance with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and the rules and regulations thereunder (“Section 409A”) including, where applicable, the requirement that (i) any reimbursement is for expenses incurred during the Executive’s lifetime (or during a shorter period of time specified in this Agreement); (ii) the amount of expenses eligible for reimbursement during a calendar year may not affect the expenses eligible for reimbursement in any other calendar year;
(iii) the reimbursement of an eligible expense shall be made no later than the last day of the calendar year following the year in which the expense is incurred; and (iv) the right to reimbursement or in kind benefits is not subject to liquidation or exchange for another benefit.
2

4.Termination
a.Rights and Duties. The Executive is an employee “at will.” Accordingly, the Company or the Executive may terminate his employment, at any time with or without cause, for any lawful reason, or no reason. The Executive and the Company agree that, without modifying or altering the Executive’s “at will” status, each will provide the other with at least thirty (30) days’ prior written notice of termination of the Executive’s employment with the Company. If the Executive gives notice of termination, except in the case of a termination by the Executive for “Good Reason” as set forth below, such notice will be deemed a voluntary resignation by the Executive and the Company, in its sole discretion, may elect to relieve the Executive of any obligation to perform duties during the notice period, waive the notice period and immediately accept termination of the Executive’s employment, without changing the status of such termination as a voluntary resignation by the Executive. Should the Company in the event of a voluntary resignation decide to relieve the Executive of any obligation to perform duties during the notice period, waive the notice period and immediately accept termination of the Executive’s employment, it shall nonetheless continue his compensation and benefits for the term of the notice period, except that no bonus shall be earned or awarded during and after the notice period.

b.Termination for “Good Reason.” The Executive may terminate his employment at any time for “Good Reason.” “Good Reason” shall comport with the requirements of Regulation §1.409A-l(n)(2)(ii) and shall mean:
i.A material diminution in the Executive’s title, authority, duties, responsibilities or reporting responsibilities;
ii.A material diminution by the Company of the Executive’s annual base compensation or total annual compensation opportunity then in effect, except a material diminution generally affecting the members of the Company’s management;
iii.Any action or inaction by the Company that constitutes a material breach by the Company of the terms of this Agreement; or
iv.A requirement that the Executive be based more than 50 miles from the offices at which he was principally employed immediately prior to the date of termination.

The parties acknowledge and agree that “Good Reason” shall not be deemed to have occurred unless: (1) the Executive provides the Company with written notice that he intends to terminate his employment hereunder for one of the Good Reason grounds set forth in Section 4.b. within sixty (60) days of the initial occurrence of such ground, with such notice containing a description of such ground, (2) if such Good Reason ground is capable of being cured, the Company has failed to cure such ground within a period of thirty (30) days from the date of such written notice, and (3) the Executive terminates his employment within ninety-one (91) days from the date that such Good Reason ground first occurs. For purposes of clarification, the above-listed conditions shall apply separately to each occurrence of a Good Reason ground, and failure to adhere to such conditions in the event of the occurrence of grounds that would otherwise have constituted Good Reason had the conditions herein been satisfied shall not disqualify the Executive from asserting and satisfying the conditions for Good Reason for any subsequent occurrence that may constitute Good Reason.

c.Termination by the Company for Cause. The Company may terminate the Executive’s employment at any time for “Cause.” “Cause” shall mean:
i.The Executive’s commission of an act of fraud, dishonesty, breach of fiduciary duty or misappropriation which may reasonably or does adversely affect the Company;
ii.The Executive’s conviction or plea of guilty or nolo contendere to or engaging in any felony or crime involving moral turpitude, fraud, misrepresentation or other crime and/or indictment for a crime that, in the reasonable opinion of the Company,  affects the Executive’s ability to perform the duties set forth in this Agreement and/or  reflects negatively upon the Company;
iii.Unauthorized disclosure by the Executive of the Company’s Confidential Information, as defined in the Nondisclosure Agreement (as defined in Section 5 below), which results or could have been reasonably foreseen to result, in a material financial loss to the Company;
iv.The Executive’s material breach of this Agreement or the Nondisclosure Agreement or any other agreement with the Company; provided, that if such breach is reasonably possible of being cured in 
3

the reasonable opinion of the Company, then the Executive will be given thirty (30) days after written notice from the Company of such breach to cure such breach; or
v.The Executive’s failure (which shall not include any Disability as defined below) or refusal to perform the duties and responsibilities of his employment and/or to follow the policies and procedures of the Company, including without limitation the failure or refusal to carry out lawful instructions from the Board. If such failure or refusal is reasonably possible of being cured in the reasonable opinion of the Company, then the Executive will be given thirty (30) days after written notice from the Company of such failure or refusal to cure such breach.

d.Termination in the Event of Death or Disability. The Agreement shall terminate upon the Executive’s death or Disability, and the Executive’s employment with the Company shall thereupon terminate. For purposes of the Agreement, “Disability” is defined as any illness, injury, accident or condition of either a physical or psychological nature as a result of which the Executive is unable to perform the essential functions of his duties and responsibilities hereunder for 120 days during any period of 365 consecutive calendar days or for any consecutive 120-day  period.

e.Effect of Termination.
i.If the Executive is terminated by the Company for Cause, or by the Executive voluntarily other than for Good Reason, then the Executive will only be entitled to payment when due of any unpaid base salary, expense reimbursements, and vacation days accrued but unused prior to termination of  employment.
ii.If the Executive’s employment is terminated by the Company other than for Cause, or by the Company due to the Executive’s Disability, or by the Executive for Good Reason (each of which will be deemed an involuntary termination), then the Executive will be entitled to payment when due of any unpaid base salary, any expense reimbursements, and vacation days accrued prior to termination of employment and, in exchange for the Executive’s execution of a separation agreement and general release provided by the Company (including, at the Company’s option, a non-competition obligation during any salary continuation period and (at the Company’s option or as required by applicable law) a revocation period of seven (7) business days) and expressly subject to the conditions described in Section 4.e.vi. below, the following:
1)Continuation of the Executive’s base salary at the rate in effect as of the day immediately preceding his date of termination for a twelve (12) month period, payable in accordance with the Company’s regular payroll practices, less applicable withholdings, commencing at the conclusion of  the Review Period (as described below), provided that the first installment of such payments shall include all amounts which would have been paid during the period between the Executive’s date of termination and the date of such first installment;
2)Payment of a pro-rata portion of the actual amount of the Executive’s Annual Bonus based on actual performance determined under the terms of the Company’s annual bonus program as then in effect, with such pro-rata portion calculated by multiplying the actual amount of such bonus for the year in which such termination occurs by a number: (x) the numerator of which is the number of days during the fiscal year prior to termination in which Executive was employed by the Company, and (y) the denominator of which is three hundred sixty five (365), with such payment to be made after the determination of the bonus funding level (but in no event later than March 15 of the calendar year following the year in which the Executive’s termination occurs); provided that any Annual Bonus granted by the Committee at the time of such termination but not yet paid shall be paid in full; and
3)The Executive shall be eligible to continue health benefits pursuant to COBRA or the appropriate state equivalent. If the Executive is eligible for and properly elects continuation of such coverage during the permissible time frame, the Company will pay the premiums for such group health insurance coverage for the shorter of (i) twelve (12) months or (ii) until the Executive becomes eligible for health insurance through another employer. After the shorter period, the Executive will be responsible for premium payments for continuation of such group health insurance coverage pursuant to the terms and conditions of COBRA.
iii.If the Agreement is terminated because of the Executive’s death, the Company shall pay to the estate of the Executive unpaid base salary, any Annual Bonus (as calculated in the manner set forth in (ii)(b) above)  granted by the Committee but not yet paid, expense reimbursements, and vacation days 
4

accrued but unused prior to termination of employment which would otherwise have been payable to the Executive up to the date of termination of his employment because of death.
iv.In the event of a Change of Control (as defined below) occurs and, if within one (1) year thereafter, the Executive’s employment is terminated by the Company other than for Cause, or by the Company due to the Executive’s Disability, or by the Executive for Good Reason (each of which will be deemed an involuntary termination), then the Executive will be entitled to payment when due of any unpaid base salary, any Annual Bonus granted by the Committee but not yet paid, expense reimbursements, and vacation days accrued prior to termination of employment and, in exchange for the Executive’s execution of a separation agreement and general release provided by the Company (including, at the Company’s option, a non-competition obligation during any salary continuation period and (at the Company’s option or as required by applicable law) a revocation period of seven (7) business days) and expressly subject to the conditions described in Section 4.e.vi. below, the following:
1)A lump sum payment equal to the sum of (i) one (1) year of the Executive’s base salary at the rate in effect as of the day immediately preceding his date of termination, less applicable withholdings, plus
(ii) the Executive’s target annual bonus for the year in which the termination occurs, less applicable withholdings, payable at the conclusion of the Review Period (as described below);
2)The Executive shall be eligible to continue health benefits pursuant to COBRA or the appropriate state equivalent. If the Executive is eligible for and properly elects continuation of such coverage during the permissible time frame, the Company will pay the premiums for such group health insurance coverage for the shorter of (i) one (1) year or (ii) until the Executive becomes eligible for health insurance through another employer. After the shorter period, the Executive will be responsible for premium payments for continuation of such group health insurance coverage pursuant to the terms and conditions of COBRA; and
3)Payment of a pro-rata portion of the target amount of the Executive’s Annual Bonus, with such pro-rata portion calculated by multiplying the target amount of such bonus for the year in which such termination occurs by a number: (x) the numerator of which is the number of days during the fiscal year prior to termination in which the Executive was employed by the Company, and (y) the denominator of which is three hundred sixty five (365), with such payment to be made at the conclusion of the Review Period (but in no event later than March 15 of the calendar year following the year in which the Executive’s termination occurs).
v.In addition, in the event of a Change of Control, notwithstanding anything to the contrary in any applicable option agreement or stock-based award agreement, all time-based stock options and other time- based stock-based awards, including restricted stock units, held by the Executive, to the extent unvested as of immediately prior to the Change of Control shall immediately accelerate and become fully exercisable or nonforfeitable immediately prior to the consummation of the Change of Control.

For purposes of this Agreement, “Change of Control” means (A) the occurrence of a merger or consolidation of the Company whether or not approved by the Board, other than (i) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or the parent of such corporation) at least 50% of the total voting power represented by the voting securities of the Company or such surviving entity or parent of such corporation outstanding immediately after such merger or consolidation, or (ii) a merger or consolidation which is in effect a financing transaction for the Company, including, but not limited to, a reverse merger of the Company into a publicly traded “shell” company, or (B) the stockholders of the Company approve an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets, provided that, in any case, “Change of Control” shall be in accordance with Regulation §1.409A-3(i)(5).
vi.Payment of the severance pay and benefits described in Section 4.e.ii. or 4.e.iv., as applicable, is expressly conditioned on the Executive’s execution without revocation of the separation agreement and general release described therein, within the time period prescribed in the separation agreement and general release (which release shall include, at the Company’s option, a non-competition obligation during any salary continuation period and (at the Company’s option) a revocation period of seven (7) 
5

business days), and will commence immediately following a sixty (60) day period following the effective date of the Executive’s separation from service from the Company (the “Review Period”) (with the exception of the pro rata annual bonus payment described in Section 4.e.ii.b., which shall be payable after the bonus funding level is determined but in no event later than March 15 of the calendar year following the year in which the Executive’s termination occurs). The separation agreement and general release will be provided to the Executive on or before the fifth (5th) day following such separation from service. If the Executive fails or refuses to return such agreement within the Review Period, the applicable severance payments and benefits will be forfeited. If the Executive is eligible for the severance pay and benefits described in Section 4.e.ii., then he shall not be eligible for and shall not receive the severance pay and benefits described in Section 4.e.iv. Similarly, if the Executive is eligible for the severance pay and benefits described in Section 4.e.iv., then he shall not be eligible for and shall not receive the severance pay and benefits described in Section 4.e.ii.
vii.The rights and obligations set forth in Sections 3.e., 4.e., 6, and 10 and the other terms and provisions contained in this Agreement that, by their sense and context are intended to survive the expiration or earlier termination of this Agreement shall continue to be binding upon the parties and their permitted assignees, heirs and successors following such expiration or termination.

5.Nondisclosure, Non-Solicitation and Assignment Agreement. As a condition of the Executive’s employment by the Company and the payment of compensation and receipt of benefits referred to above, the Executive agrees to continue to be bound by the terms of the Nondisclosure, Non-Solicitation and Assignment Agreement, entered into by the Executive as of 7/31/2020 (the “Nondisclosure Agreement”). The Executive acknowledges that the Company would not offer him employment or provide compensation and/or benefits set forth above if he was not willing to be bound by the terms of such Nondisclosure Agreement.
 
6.Notice.
a.To the Company. The Executive will send all communications to the Company relating to this Agreement in writing, addressed as follows (or in any other manner the Company notifies him to use):

With a copy to:
Douglas M. Fambrough III, Ph.D. President and CEO Dicerna Pharmaceuticals, Inc.
33 Hayden Avenue
Lexington, MA 02421

General Counsel
Dicerna Pharmaceuticals, Inc. 33 Hayden Avenue
Lexington, MA 02421
b.To the Executive. All communications from the Company to the Executive relating to this Agreement shall be sent to the Executive in writing, at the most recent address on file with the Company.

With a copy to:

William Fabbri, Esq.
Fabbri Law, LLC
40 Davis Avenue
Brookline, MA 02445

c.Time Notice Deemed Given. Notice shall be deemed to have been given when delivered or, if earlier (1) three business days after mailing by United States certified or registered mail, return receipt requested, postage prepaid, or
(2) one business days after being sent by overnight mail or delivery with confirmation of delivery, in either case, addressed as required in this section.

6

7.Amendment. No provisions of this Agreement may be modified, waived, or discharged except by a written document signed by a Company officer duly authorized by the Board and the Executive. A waiver of any conditions or provisions of this Agreement in a given instance shall not be deemed a waiver of such conditions or provisions at any other time in the future.

8.Choice of Law; Forum Selection. The validity, interpretation, construction, and performance of this Agreement shall be governed by the laws of the Commonwealth of Massachusetts without regard to its conflicts of laws principles. Any claims or legal actions by one party against the other regarding this Agreement shall be commenced and maintained exclusively in any state or federal court located in the Commonwealth of Massachusetts, and the parties hereby submit to the jurisdiction and venue of any such court.

9.Successors. This Agreement shall be binding upon, and shall inure to the benefit of, the Executive and his estate, but the Executive may not assign or pledge this Agreement or any rights arising under it. Without the Executive’s consent, the Company may assign this Agreement to any affiliate or to a successor to substantially all the business and assets of the Company.

10.Taxes; Code Sections 409A and 280G.
a.The Company shall withhold taxes from payments it makes pursuant to this Agreement as it reasonably determines to be required by applicable law.

b.If the benefits set forth in Section 4.e. of this Agreement constitute “non-qualified deferred compensation” subject to Section 409A, then the following conditions apply to the payment of such benefits:
i.Any termination of the Executive’s employment triggering payment of benefits under Section 4.e. must constitute a “separation from service” under Section 409A(a)(2)(A)(i) of the Code, and Treas. Reg. §1.409A-1(h) before distribution of such benefits can commence. To the extent that the termination of the Executive’s employment does not constitute a separation of service under Section 409A(a)(2)(A)(i) of the Code and Treas. Reg. §1.409A-1(h) (as the result of further services that are reasonably anticipated to be provided by the Executive to the Company at the time the Executive’s employment terminates), any benefits payable under Section 4.e. that constitute non-qualified deferred compensation under Section 409A shall be delayed until after the date of a subsequent event constituting a separation of service under Section 409A(a)(2)(A)(i) of the Code and Treas. Reg. §1.409A-1(h). For purposes of clarification, this Section shall not cause any forfeiture of benefits on the Executive’s part, but shall only act as a delay until such time as a “separation from service” occurs.
ii.If the Executive is a “specified employee” (as that term is used in Section 409A and regulations and other guidance issued thereunder) on the date his separation from service becomes effective, any benefits payable under Section 4.e. that constitute non-qualified deferred compensation subject to Section 409A shall be delayed until the earlier of: (A) the business day following the six-month anniversary of the date his separation from service becomes effective, or (B) the date of the Executive’s death, but only to the extent necessary to avoid the adverse tax consequences and penalties under Section 409A. On the earlier of: (A) the business day following the six-month anniversary of the date his separation from service becomes effective, or (B) the Executive’s death, the Company shall pay the Executive in a lump sum the aggregate value of the non-qualified deferred compensation that the Company otherwise would have paid the Executive prior to that date under Section 4.e. and the balance of any remaining amounts pursuant to Section 4.e.ii or 4.e.iv., as applicable.
iii.If any amount to be paid to the Executive pursuant to this Agreement is “deferred compensation” subject to Section 409A, then each such payment which is conditioned upon Executive’s execution of a release and which is to be paid or provided during a designated period that begins in one taxable year and ends in a second taxable year, shall be paid or provided in the later of the two taxable years.
iv.It is intended that each installment of the payments and benefits provided under Section 4.e. shall be treated as a separate “payment” for purposes of Section 409A.
v.Neither the Company nor the Executive shall have the right to accelerate or defer the delivery of any such payments or benefits except to the extent specifically permitted or required by Section 409A.
7

c.Notwithstanding any other provision of this Agreement to the contrary, in the event of any ambiguity in the terms of this Agreement, such term(s) shall be interpreted and at all times administered in a manner that avoids the inclusion of compensation in income under Section 409A, or the payment of increased taxes, excise taxes or other penalties under Section 409A.

d.The parties intend this Agreement to be in compliance with Section 409A. Executive acknowledges and agrees that Company does not guarantee the tax treatment or tax consequences associated with any payment or benefit arising under this Agreement, including but not limited to consequences related to Section409A.

e.If any payment or benefit the Executive would receive under this Agreement, when combined with any other payment or benefit Executive receives pursuant to a Change of Control (whether under this Agreement or otherwise) (such payment or benefit, for purposes of this section, a “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 shall be either: (A) the full amount of such Payment; or (B) such lesser amount as would result in no portion of the Payment being subject to the Excise Tax, whichever of the foregoing amounts, taking into account the applicable federal, state and local employments taxes, income taxes, and the Excise Tax, results in Executive’s receipt, on an after-tax basis, of the greater amount of the Payment notwithstanding that all or some portion of the Payment may be subject to the Excise Tax. The Payments will be reduced in the following order: (A) reduction of any cash severance payments otherwise payable to the Executive that are exempt from Section 409A of the Code;
(B) reduction of any other cash payments or benefits otherwise payable to the Executive that are exempt from Section 409A of the Code, but excluding any payments attributable to any acceleration of vesting or payments with respect to any equity awards that are exempt from Section 409A of the Code; (C) reduction of any other payments or benefits otherwise payable to the Executive on a pro-rata basis or such other manner that complies with Section 409A of the Code, but excluding any payments attributable to any acceleration of vesting and payments with respect to any equity awards that are exempt from Section 409A of the Code; and (D) reduction of any payments attributable to any acceleration of vesting or payments with respect to any equity awards that are exempt from Section 409A of the Code, in each case beginning with payments that would otherwise be made last in time.

11.Validity. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect.

12.Counterparts, Electronic Copies and Signatures. This Agreement may be executed in one or more counterparts, whether in original ink or electronically through DocuSign or similar application,  and by different Parties hereto on separate counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument.  Facsimile signatures and signatures delivered in PDF or the like, and delivered by electronic mail shall be deemed as good as the original.

13.Entire Agreement; Prior Agreements. This Agreement, together with the Nondisclosure, Non-Solicitation and Assignment Agreement referenced in Section 5 above and the letter Agreement between the Parties signed by executive on 7/31/2020 (which is incorporated by reference), constitute the entire agreement among the parties with respect to the subject matter hereof and, unless otherwise provided herein, supersedes all prior agreements, negotiations or understandings, written or oral, in respect thereof.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
8

   DICERNA PHARMACEUTICALS, INC.

Date: 7/24/2020                  /s/ Douglas. M. Fambrough                         
    By: Douglas Fambrough III, Ph.D.
    Its: President and CEO

   SHREERAM ARADHYE, M.D.

Date: 7/31/2020                  /s/ Shreeram Aradhye                                                
    Shreeram Aradhye, M.D.

9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00316-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00316-of-00352.parquet"}]]