Document:

Exhibit 10.16

 

CONSULTING AGREEMENT

 

This
CONSULTING AGREEMENT (this “Consulting Agreement”) is executed as of October 30, 2017 to be effective as of
November 1, 2017 (the “Effective Date”), by and between Assembly Biosciences, Inc., a Delaware corporation with
its principal place of business at 11711 N. Meridian Street, Suite 301, Carmel, IN 46032 (the “Company”) and
Miguel S. Barbosa, Ph.D. (the “Consultant”). This Consulting Agreement is being entered into by the parties
pursuant to that certain Transition and Resignation Agreement dated October 30, 2017 (the “Resignation Agreement”)
and is Exhibit A to such Resignation Agreement.

 

WITNESSETH:

 

WHEREAS,
Company desires to engage Consultant to provide certain strategic advisory services on an independent contractor basis as outlined
below, and Consultant wishes to provide such services to Company; and

 

WHEREAS,
Company and Consultant desire to establish and document the terms and conditions of such consulting relationship between them.

 

NOW,
THEREFORE, in consideration of the mutual promises and obligations of the parties set forth herein and for other good and valuable
consideration, the receipt and legal sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1. Appointment of Consultant;
Services. Company appoints Consultant and Consultant hereby accepts appointment as Consultant to the Company. In this capacity,
Consultant shall perform strategic advisory services as may be requested from time to time by the Chief Executive Officer of the
Company or by the senior management team of the Microbiome Program, and agreed to by Consultant, including providing an orderly
transition of Consultant’s responsibilities to Microbiome personnel, providing strategic advisory services to the Microbiome
Program and assisting in the formation of a scientific advisory board (the “Services”). Consultant and Company
shall work together delineate the scope of each project and the timeline and deliverables related thereto. Consultant and Company
anticipate that Consultant's Services for the Company will require on average up to 16 hours per month.

 

2. Term; Termination. This
Consulting Agreement will be effective as of the Effective Date and will continue in effect until March 31, 2018, and then will
continue on a month-to-month basis thereafter, unless sooner terminated as provided below (the “Term”). This
Consulting Agreement may be terminated at any time by either party, with or without cause, and without prejudice to any right or
remedy a party may have due to any failure of the other party to perform their obligations under this Consulting Agreement, upon
thirty (30) days written notice to the other party. In addition, the Company may terminate this Consulting Agreement immediately
and without prior notice if Consultant is in breach of any material provision of this Consulting Agreement or the Resignation Agreement.  

 

3. Duties of Consultant.
Consultant agrees to faithfully, diligently, competently, and to the best of his ability within the allotted time commitment perform
the Services; provided, that Consultant will at all times retain sole and absolute discretion and judgment in the manner and means
of carrying out the Services. Consultant shall use best efforts to perform the Services in a manner satisfactory to the Company.  Without
limiting the foregoing, Consultant shall provide Services to Company in accordance with generally accepted professional standards
as applied to similar projects performed under similar conditions prevailing in the industry at the time such Services are rendered
to the Company. Consultant shall not subcontract any portion of Consultant’s duties or obligations under this Consulting
Agreement without the prior written consent of the Company. 

 

     

     

    

 

4. Services for Others. During
the Term and for six (6) months thereafter, Consultant will not directly or indirectly, (i) engage in any business for Consultant’s
own account that competes with the Business (as defined below) of Company in any geographical area in which Company does business,
(ii) enter the employ of, or render any services to, any person engaged in any business that competes with the Business of
Company in any geographical area in which Company does business but only to the extent Consultant is being employed or retained
to provide services to the competitor in the Business, (iii) acquire a financial interest in, or otherwise become actively
involved with, any person engaged in any business that competes with the Business of Company in any geographical area in which
Company does business as an individual, partner, shareholder, officer, director, principal, agent, trustee or consultant, or (iv) interfere
with business relationships (whether formed before or after the Term with Company) between Company and strategic partner, vendor
or suppliers of, or consultants to, Company that were engaged in, or were immediate prospects for engaging in, business with Company
before my consulting relationship with Company was terminated. For purposes of this Section 4, “Business” shall mean
any business directly that engages (A) the development of novel molecules aimed at hepatitis B core protein for the specific disease
treatment of hepatitis B virus (HBV); (B) the development of (i) drug products that treat diseases with living bacteria, and (ii)
products that orally deliver oral synthetic live biotherapeutics to restore health to a dysbiotic microbiome; and (C) any other
business of the Company that Consultant provides Services to during the Term of this Agreement. Notwithstanding the foregoing,
Consultant may, directly or indirectly own, solely as an investment, securities of any person engaged in the Business of Company
which are publicly traded on a national or regional stock exchange or on the over-the-counter market if Consultant (i) is
not a controlling person of, or a member of a group which controls, such person and (ii) does not, directly or indirectly,
own 3% or more of any class of securities of such person. Company agrees and acknowledges that Consultant may provide consulting
services to third parties and this provision is not intended to unreasonably restrict Consultant’s ability to engage in such
other business activities. 

 

5. Compensation of
Consultant. As compensation for the performance of the Services, the Company will pay Consultant a monthly consulting fee in
the amount of Six Thousand Dollars ($6,000.00), pro-rated for any partial month of Services. The monthly consulting fee covers
a maximum of 16 hours/month at rate of $375/hour. Such fee is to be paid to Consultant within thirty (30) days after the completion
of a given calendar month.

 

6. Expenses. Consultant
shall be reimbursed for any reasonable expenses incurred while performing Services on behalf of Company, including travel (i.e.,
airfare, meals and lodging), provided such expenses are approved by Company in advance. All air travel on behalf of Company shall
be coach class unless otherwise mutually agreed by the parties. Requested travel will be subject to Consultant approval and subject
to a $275 per travel hour fee for actual transit time (not to exceed 8 hours in any one day). As a condition to receipt of reimbursement,
Consultant shall be required to submit to Company reasonable evidence that the amount involved was expended and related to Services
provided under this Consulting Agreement.

 

7. Independent Contractor
Status of Consultant.

 

(a) Consultant's
legal status is an independent contractor of Company. Nothing in this Consulting Agreement makes Consultant the agent, partner,
joint venturer, employee or legal representative of Company for any purpose whatsoever; nor shall Consultant hold himself out as
such. Consultant will have no authority to bind Company in any manner or for any purpose.

 

(b) Consultant will
not be an employee of Company for any purpose, including for purposes of the Fair Labor Standards Act's minimum wage and overtime
provisions, nor any other provision of federal, state, or local law applicable to employees. Further, Consultant understands and
agrees that he will not be entitled to any employment benefits that may be made available by the Company to its employees, including
but not limited to vacation pay, sick leave, retirement benefits, social security, workers' compensation, health or disability
benefits, and unemployment insurance benefits.

 

(c) Consultant acknowledges
that he has not relied on any statements or representations by the Company or its attorneys with respect to the tax treatment of
any compensation due under this Consulting Agreement. Consultant understands that the Company will not be responsible for withholding
or paying any federal or state income, social security or other taxes in connection with any compensation paid under this Consulting
Agreement, and Consultant agrees that he is solely responsible for any such tax payments.

 

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8. Representations.
Consultant hereby represents and warrants to Company that (a) Consultant is free to enter into this Consulting Agreement with
Company and to perform the Services described herein; (b) the execution of this Consulting Agreement and the performance of the
Services by Consultant will not result in the breach of any express or implied, oral or written, contract or agreement, to which
Consultant is bound (including, without limitation, any non-competition agreement with a current or prior employer); and (c) the
execution of this Consulting Agreement and the performance of the Services will not at any time interfere with or violate any third
party rights (including, without limitation, the use, disclosure, misappropriation, or infringement of any confidential information,
proprietary rights or intellectual property belonging to any other person or entity).

 

9. Indemnification.
Company will indemnify Consultant for all losses, liabilities, damages and expenses resulting from any and all actions, demands
or claims arising from Consultant’s provision of the Services in good faith.

 

10. Ownership of Intellectual
Property

 

(a) Consultant will
immediately and fully disclose in writing to the Company all intellectual property and other proprietary information, including
without limitation, all inventions, methods, processes, innovations, discoveries, developments, ideas, technologies, computer code
and programs, macros, trade secrets, know-how, formulae, designs, patterns, marks, names, improvements, industrial designs, mask
works, works of authorship, technical materials relating to the business of the Company conceived or developed by the Consultant
during the Term (collectively, “Intellectual Property”) whether or not any such Intellectual Property is patentable,
copyrightable, or otherwise protectable. Notwithstanding the foregoing, this Consulting Agreement shall not be construed to apply
to, and shall not create any assignment of any Intellectual Property of Consultant that Consultant developed entirely on his own
time without using the Company's equipment, facilities, confidential or trade secret information, except for Intellectual Property
that results from any work performed by the Consultant for the Company.

 

(b) Consultant does
hereby, and will from time to time immediately upon the conception or development of any Intellectual Properly in the course of
Consultant's engagement with the Company assign to the Company all of his right, title and interest in and to all such Intellectual
Property (whether or not patentable, registrable, recordable or protectable by copyright and regardless of whether the Company
pursues any of the foregoing). If any Intellectual Property falls within the definition of “work made for hire,” as
such term is defined in 17 U.S.C. § 101, such Intellectual Property will be considered “work made for hire,” and
the copyright of such Intellectual Property will be owned solely and exclusively by the Company. If any Intellectual Property does
not fall within such definition of “work made for hire”, then the right, title, and interest in and to such Intellectual
Property of Consultant will be assigned to the Company pursuant to the first sentence of this Section 9(b).

 

(c) Consultant will
execute and deliver any assignment instruments and do all other things reasonably requested by the Company (both during and after
Consultant's engagement with the Company) in order to more fully vest in the Company sole and exclusive right, title, and interest
in and to all Intellectual Property. Consultant agrees to cooperate with and provide reasonable assistance to the Company in the
preparation of applications for letters patent, copyright, and other forms of protection for Intellectual Property, including but
not limited to the execution and delivery of any instruments reasonably requested by the Company (both during and after Consultant's
engagement with the Company), in order to protect the Company’s interest in and to all Intellectual Property. If the Company
is unable for any reason to secure Consultant's signature on any lawful and necessary document required to apply for or execute
any patent, trademark, copyright or other applications with respect to any Intellectual Property (including renewals, extensions,
continuations, divisions or continuations in part thereof), Consultant hereby irrevocably designates and appoints the Company and
its then current Chief Executive Officer or General Counsel as Consultant's agent and attorney-in-fact to act for and in behalf
and instead of Consultant, to execute and file any such application and to do all other lawfully permitted acts to further the
prosecution and issuance of patents, trademarks, copyrights or other rights thereon with the same legal force and effect as if
executed by Consultant.

 

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11. Confidential Information.

 

(a) Consultant acknowledges
that during his engagement with Company he will have access to certain highly-sensitive, confidential, and proprietary information
belonging to the Company or third parties who may have furnished such information under obligations of confidentiality, relating
to and used in the Company's business (collectively, “Confidential Information”). Consultant acknowledges that, unless
otherwise available to the public, Confidential Information includes, but is not limited to, the following categories of information
and material, including all copies, notes, or other reproductions or replicas thereof: financial statements and information; budgets,
forecasts, and projections; business and strategic plans; marketing, sales, and distribution strategies; research and development
projects; records relating to any intellectual property developed by, owned by, controlled, licensed, or maintained by the Company;
information related to the Company's inventions, research, products, designs, methods, know-how, formulae, techniques, systems,
processes; customer lists; non-public information relating to the Company's customers, suppliers, employees, distributors, or investors;
the specific terms of the Company's agreements or arrangements, whether oral or written, with any customer, supplier, vendor, collaborator
or contractor with which the Company may be associated from time to time; and any and all information relating to the operation
of the Company's business which the Company may from time to time designate as confidential or proprietary or that Consultant reasonably
knows should be, or has been, treated by the Company as confidential or proprietary. Confidential Information encompasses all formats
in which information is preserved, whether electronic, print, or any other form, including all originals, copies, notes, or other
reproductions or replicas thereof.

 

(b) Consultant agrees
that he will maintain the confidentiality of the Confidential Information at all times during and for ten years following the Term
and will not, directly or indirectly, use or disclose any Confidential Information for any purpose other than to the extent necessary
to perform the Services.

 

(c) Consultant's
obligations under this Section 11 will not apply to any information that (i) becomes generally known to the public without any
breach of this Consulting Agreement by Consultant or of any similar agreement by any other employee or contractor of the Company,
(ii) is disclosed to Consultant by a third party under no obligation of confidentiality to the Company and/or any client of the
Company, or (iii) the Consultant is required to disclose by law, provided that Consultant first notifies Company of the existence
and terms of such requirement, gives Company a reasonable opportunity to seek a protective order or similar relief to prevent or
limit such disclosure, and only discloses that information actually required to be disclosed.

 

(d) The foregoing
notwithstanding, pursuant to the federal Defend Trade Secrets Act of 2016, Consultant 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 in confidence to a federal,
state or local government official, either directly or indirectly, or to an attorney, and solely for the purpose of reporting or
investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding,
if such filing is made under seal. Nothing in this Consulting Agreement shall limit Consultant’s right to report possible
violations of law or regulation with any federal, state or local government agency or to discuss the terms and conditions of Consultant’s
engagement by the Company to the extent that such disclosure is protected under applicable provisions of law or regulation, including
but not limited to “whistleblower” statutes or other similar provisions that protect such disclosure.

 

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12. Return of Property.
Upon termination of Consultant's engagement with the Company for any reason, or at any time upon request of the Company, Consultant
will promptly deliver to the Company all Confidential Information in any form along with all personal property belonging to the
Company that is in Consultant's possession, custody, or control, including, without limitation, all files, memoranda, designs,
correspondence, manuals, programs, data, records, notes, notebooks, reports, papers, equipment, computer software, proposals, or
any other files, material, document or possession (whether in hard copy or any electronic format), however obtained, along with
any reproductions or copies.

 

13. Remedies. Consultant
acknowledges and agrees that the breach or threatened breach of Sections 4, 10, 11 and/or 12 of this Consulting Agreement may result
in immediate and irreparable injury to Company, which injury may not be subject to redress by monetary damages. Accordingly, Consultant
agrees that Company is entitled to enforce this Consulting Agreement by seeking a temporary restraining order, preliminary and
permanent injunction and/or any other appropriate equitable relief. Nothing in this Section prohibits the Company from pursuing
any other remedies available to it in law or equity, including but not limited to the recovery of monetary damages.

 

14. Assignment. Due
to the personal nature of the Services to be rendered hereunder, Consultant may not assign this Consulting Agreement.  The
Company may assign this Consulting Agreement without the consent of Consultant.  Subject to the foregoing, this Consulting
Agreement will inure to the benefit of and be binding upon each of the heirs, assigns and successors of the respective parties.

 

15. Governing Law; Venue.
This Consulting Agreement will be governed by and construed in accordance with the laws of the State of Indiana, without regard
to that body of law known as choice of law. Any litigation arising out of or related to this Consulting Agreement will be brought
exclusively in any state or federal court in Indianapolis, Indiana. Each party (i) consents to the personal jurisdiction of said
courts, (ii) waives any venue or inconvenient forum defense to any proceeding maintained in such courts, and (iii) agrees not to
bring any proceeding arising out of or relating to this Consulting Agreement in any other court.

 

16. Miscellaneous.

 

(a)
The provisions of Sections 2, 4 and 6-16 will survive the termination of this Consulting Agreement for any reason.

 

(b)
Should any provision of this Consulting Agreement or the application thereof, to any extent, be held invalid or unenforceable,
the remainder of this Consulting Agreement and the application thereof other than those provisions held invalid or unenforceable,
shall not be affected thereby and shall continue valid and enforceable to the fullest extent permitted by law or equity.

 

(c)
No waiver by either party of any breach of this Consulting Agreement shall be construed as a waiver of any succeeding breach
of this Consulting Agreement.

 

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(d)
This Consulting Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of
which together shall constitute one and the same agreement. Any facsimile, PDF reproduction of original signatures or other electronic
transmission of a signed counterpart shall be deemed to be an original counterpart and any signature appearing thereon shall be
deemed to be an original signature.

 

(e)
This Consulting Agreement, together with the Resignation Agreement and the documents referenced therein, represents the entire
and integrated agreement between the parties and supersedes all prior negotiations, representations or agreements, either written
or oral regarding the subject matter thereof.

 

(f)
This Consulting Agreement may be amended only by a written instrument signed by both Company and Consultant.

 

[Signature Page Follows]

 

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IN WI'INESS WHEREOF, the parties
hereto have executed this Consulting Agreement to be effective as of the Effective Date.

 

	CONSULTANT: 	 	COMPANY:
	 	 	 	 
	 	 	 	 
	 	 	ASSEMBLY BIOSCIENCES, INC.
	 	 	 	 
	 	 	 	 
	/s/ Miguel S. Barbosa, Ph.D. 	 	By:	/s/ Derek A Small
	Miguel S. Barbosa, Ph.D.	 	Derek A. Small
	 	 	Chief Executive Officer and President

 

[Signature Page to Consulting Agreement]

 

    7Exhibit 10.17

 

FIRST AMENDMENT TO STOCK OPTION GRANT

 

THIS FIRST AMENDMENT TO STOCK OPTION
Grant (the “Amendment”) is dated effective as of November 1, 2017 and is entered into by and among Assembly
Biosciences, Inc., a Delaware corporation (“Company”) and Miguel S. Barbosa, Ph.D. ("Optionee").
Capitalized terms used in this Amendment that are not defined shall have the meaning assigned to such term in the that certain
Stock Option Grant No. 2016-60 dated September 26, 2016 (the “Stock Option”). This Amendment is being entered
into by the parties pursuant to that certain Transition and Resignation Agreement dated October 30, 2017 (the “Resignation
Agreement”) and is Exhibit B to such Resignation Agreement.

 

RECITALS

 

WHEREAS,
Optionee was awarded the Stock Option on September 26, 2016 in connection with joining the Company as its Chief Scientific
Officer, Head of Microbiome and employee pursuant to that certain Employment Agreement dated September 14, 2016 and effective
as of September 26, 2016 (the “Employment Agreement”).

 

WHEREAS,
Optionee has voluntarily resigned as an officer and employee of Assembly effective October 31, 2017 (the “Resignation
Date”).

 

WHEREAS,
Company and Optionee desire that Optionee continue to provide strategic advisory services to the Company, without any interruption
of services, pursuant to a Consulting Agreement dated October 31, 2017 and effective as of November 1, 2017 (the “Consulting
Agreement”).

 

WHEREAS,
in connection with execution and delivery of the Consulting Agreement, the Company and Optionee intend for there to be a continuation
of service under the Stock Option and agree that terms of the Stock Option should be amended to reduce the number of unvested options
in light of the change in services.

 

AGREEMENT

 

NOW, THEREFORE,
in consideration of the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, Optionee and Parent hereby agree as follows.

 

1.
Amendments.

 

1.1.
No. of Shares; Vesting. The aggregate number of shares of common stock, par value $0.001 per share, of the Company (the
“Common Stock”) underlying the Stock Option shall be reduced from 190,000 shares of Common Stock to 62,500 shares of
Common Stock, of which 47,500 shares of Common Stock vested as of September 26, 2017 as provided in the Stock Option, and the remaining
15,000 shares of Common Stock are unvested as of this date and shall vest in accordance with the original vesting schedule set
forth in the Stock Option in equal increments of 5,000 shares of Common Stock on each of the second, third and fourth anniversary
of the vesting commencement date set forth in the Stock Option assuming that Optionee is still providing Continuous Services to
the Company as of such vesting commencement date.

 

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1.2.
Continuous Service. The Company and Optionee agree and acknowledge that so long as Optionee is providing services under
the Consulting Agreement and the Consulting Agreement has not been terminated by either party, Optionee’s service to the
Company shall be deemed Continuous Service. Upon the termination of all employment and/or consulting services to the Company (whether
under the Consulting Agreement or otherwise), then as provided in the Stock Option, Optionee may exercise Optionee’s vested
options for up to 90 days post termination of Continuous Service.

 

1.3.
Termination of Acceleration of Vesting. Company and Optionee agree and acknowledge that the provisions of the Stock Option
relating to acceleration of vesting and/or the extension of the period in which to exercise an option in connection with a termination
of employment that were included in the Stock Option pursuant to Optionee’s Employment Agreement shall have no further effect.
Accordingly, the second paragraph in the “Vesting Schedule” of the Stock Option is hereby deleted.

 

2.
Miscellaneous.

 

2.1
Counterparts. This Amendment may be executed in one or more counterparts, each of which shall be deemed an original, and
all of which together shall constitute one and the same agreement. Any facsimile, PDF reproduction of original signatures or other
electronic transmission (including pdf) of a signed counterpart shall be deemed to be an original counterpart and any signature
appearing thereon shall be deemed to be an original signature.

 

2.2
Option Agreement; Governing Provisions. Except as otherwise modified by this Amendment, the Stock Option remains in full
force and effect without modification or waiver. Except as otherwise provided herein, the terms of the Stock Option shall govern
this Amendment.

 

[Remainder of Page Intentionally Left Blank]

 

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IN WITNESS WHEREOF,
each of the parties has caused this First Amendment to Stock Option Grant to be duly executed on its behalf as of the day and
year first above written.

 

	 	ASSEMBLY BIOSCIENCES, INC.
	 	 	 
	 	 	 
	 	By:	/s/ Derek A. Small
	 	Name: 	Derek A. Small
	 	Its:	Chief Executive Officer and President
	 	 	 
	 	 	 
	 	/s/ Miguel S. Barbosa, Ph.D.
	 	Miguel S. Barbosa, Ph.D.

 

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