Document:

EX-10.5

 Exhibit 10.5 

September 11, 2019 
 VIA ELECTRONIC
MAIL 
 Pamela Wapnick 
 Re: Terms
of Separation 
 Dear Pamela: 
 This letter
confirms the agreement (“Agreement”) between you and Graybug Vision, Inc. (the “Company”) concerning the terms of your separation and offers you the separation compensation we discussed in exchange for
a general release of claims and covenant not to sue. If you choose to enter into this Agreement, please sign below no earlier than the Separation Date (as defined below), and no later than the last day of the Consideration Period (as defined below).

 1. Separation Date: Your employment is being terminated without Cause pursuant to Sections 5 and 13 of your offer letter with
the Company dated November 11, 2017 (the “Offer Letter”), attached hereto as Exhibit A and incorporated herein by reference. September 6, 2019 is your last day of employment with the Company (the
“Separation Date”). 
 2. Acknowledgment of Payment of Wages: By your signature below, you acknowledge that on
the Separation Date, except for payments not yet processed, we provided you one or more final paychecks for all wages, salary, bonuses, reimbursable expenses previously submitted by you, accrued vacation and any similar payments due you from the
Company as of the Separation Date. By signing below, you acknowledge that the Company does not owe you any other amounts other than reimbursable expenses not yet submitted. Please promptly submit for reimbursement all final outstanding expenses.

 3. Separation Compensation: In exchange for your agreement to the general release and waiver of claims and covenant not to sue set forth below and
your other promises herein (including, but not limited to, the consulting arrangement described in Section 3(d) below), the Company agrees to provide you with the severance benefits outlined in Section 6(b)-(e) of the Offer Letter,
enhanced as follows: 
 a. Severance: The Company agrees to pay you severance in the gross aggregate amount of $319,300 less
applicable state and federal payroll deductions, which equals twelve (12) months of your base salary. The Severance will be paid in consecutive, equal installments in accordance with the Company’s regular payroll cycle, with the first
payment commencing within thirty (30) days following the Effective Date, and continuing thereafter until paid in full. 

 b. COBRA: Upon your timely election to continue your existing health benefits under
COBRA, and consistent with the terms of COBRA and the Company’s health insurance plan, the Company will pay the insurance premiums to continue your existing health benefits until: (i) the close of the eighteen (18) month period
following the Separation Date, or (ii) you commence new full time employment or full time self-employment, whichever occurs first. You will remain responsible for, and must continue to pay, the portion of premiums, co-payments, etc. that you would have paid had your employment continued. 
 c. Target Bonus
Opportunity: The Company agrees and hereby commits to award you a pro rata bonus of $64,179 (equivalent to 8/12ths of your annual target bonus.) This pro rata bonus payment will be subject to the payment timing terms in Section 5 of the
Offer Letter, but paid no later than February 29, 2020. 
 d. Consultancy: The Company agrees to engage you as a consultant
pursuant to the terms of the consulting agreement attached hereto as Exhibit B (the “Consulting Agreement”) immediately following your termination through December 31, 2019 (unless extended by mutual agreement).
Your termination of employment on the Separation Date is intended to constitute a “separation from service” as defined in the regulations under Section 409A of the Internal Revenue Code of 1986, as amended (a
“Separation”). Services provided pursuant to the Consulting Agreement shall constitute a permanent reduction in your services to the Company to not more than 20% of the average level of bona fide services you provided to the
Company during the 36-month period immediately preceding the Separation Date (or, if you have provided services to the Company for less than 36 months, your full period of service prior to the Separation
Date), such that any services provided pursuant to the Consulting Agreement shall continue to be deemed a Separation. 
 e. The Company will
continue to refer to you on the management page of its website and in other customary marketing and other external communications as its “Chief Financial Officer” until the earlier of: (i) the termination of the Consulting Agreement
(as defined below), and (ii) the Company’s employment of a new Chief Financial Officer. 
 f. Frederic Guerard as the
Company’s Chief Executive Officer and Christy Shaffer, Ph. D., as Chair of the Company’s Board of Directors, shall provide you the letter of recommendation in the form of Exhibit C attached hereto. 

g. Partial Acceleration of Equity Vesting: The Company agrees to partially accelerate the vesting of your Unvested Shares (as defined
below), as described more fully in Paragraph 9 below. 
 h. Stock Option Exercise Deadline Extension: The Company agrees to extend the
post-employment stock option exercise deadline for your stock option grants, subject to certain limitations as described more fully in Paragraph 9 below. 

By signing below, you acknowledge that you are receiving the separation compensation outlined in this Agreement in consideration for waiving
your rights to claims referred to in this Agreement, that the separation compensation fully satisfies any obligations by the Company to you pursuant to the Offer Letter and that you would not otherwise be entitled to the separation compensation.

 4. Return of Company Property: You hereby warrant to the Company that the Company has access to all
property or data of the Company of any type whatsoever that has been in your possession or control, including all Company data stored on your Company laptop computer and any personal computer device. You will be allowed continued use of your Company
issued computer during the period of the Consulting Agreement, along with ongoing access to Company systems that you may need to access in relation to your Consulting Agreement. 

5. Proprietary Information: You hereby acknowledge that you are bound by the attached Employee Invention Assignment and Confidentiality Agreement
(Exhibit D hereto) and that as a result of your employment with the Company you have had access to the Company’s Proprietary Information (as defined in the agreement), that you will hold all Proprietary Information in strictest
confidence and that you will not make use of such Proprietary Information on behalf of anyone. You further confirm that you have delivered to the Company all documents and data of any nature containing or pertaining to such Proprietary Information
and that you have not taken with you any such documents or data or any reproduction thereof. 
 6. General Release and Waiver of Claims: 

a. The payments and promises set forth in this Agreement are in full satisfaction of all accrued salary, vacation pay, bonus and commission
pay, profit-sharing, stock, stock options or other ownership interest in the Company, termination benefits or other compensation to which you may be entitled by virtue of your employment with the Company or
your separation from the Company. To the fullest extent permitted by law, you hereby release and waive any other claims you may have against the Company and its owners, agents, officers, shareholders, employees, directors, attorneys, subscribers,
subsidiaries, affiliates, successors and assigns (collectively “Releasees”), whether known or not known, including, without limitation, claims arising out of or related in any way to the Offer Letter or the Graybug Vision,
Inc. Change in Control Severance Policy, claims under any employment laws, including, but not limited to, claims of unlawful discharge, breach of contract, breach of the covenant of good faith and fair dealing, fraud, violation of public policy,
defamation, physical injury, emotional distress, claims for additional compensation or benefits arising out of your employment or your separation of employment, claims under Title VII of the 1964 Civil Rights Act, as amended, the California Fair
Employment and Housing Act and any other laws and/or regulations relating to employment or employment discrimination, including, without limitation, claims based on age or under the Age Discrimination in Employment Act or Older Workers Benefit
Protection Act, and/or claims based on disability or under the Americans with Disabilities Act. 
 b. By signing below, you expressly waive
any benefits of Section 1542 of the Civil Code of the State of California, which provides as follows: 
 “A GENERAL RELEASE DOES
NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE
DEBTOR OR RELEASED.” 

 c. You and the Company do not release claims that you may not release as a matter of law,
including but not limited to claims for indemnity under California Labor Code Section 2802, or any claims for enforcement of this Agreement. To the fullest extent permitted by law, any dispute regarding the scope of this general release shall
be determined by an arbitrator under the procedures set forth in the arbitration clause below. 
 7. Covenant Not to Sue: 

a. To the fullest extent permitted by law, at no time subsequent to the execution of this Agreement will you pursue, or cause or knowingly
permit the prosecution, in any state, federal or foreign court, or before any local, state, federal or foreign administrative agency, or any other tribunal, of any charge, claim or action of any kind, nature and character whatsoever, known or
unknown, which you may now have, have ever had, or may in the future have against Releasees, which is based in whole or in part on any matter released by this Agreement. 

b. Nothing in this section shall prohibit or impair you or the Company from complying with all applicable laws, nor shall this Agreement be
construed to obligate either party to commit (or aid or abet in the commission of) any unlawful act. 
 8. Protected Rights: You understand that
nothing in the General Release and Waiver of Claims and Covenant Not to Sue sections above, or otherwise in this Agreement, limits your ability to file a charge or complaint with the Equal Employment Opportunity Commission, the National Labor
Relations Board, the Occupational Safety and Health Administration, the Securities and Exchange Commission or any other federal, state or local government agency or commission (“Government Agencies”). You further understand
that this Agreement does not limit your ability to communicate with any Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other
information, without notice to the Company. This Agreement does not limit your right to receive an award for information provided to any Government Agencies. 

9. Stock Options: 
 a. Pursuant to your
Stock Option Agreements with the Company dated December 20, 2017, February 6, 2018 and December 18, 2018, and the Company’s 2015 Equity Incentive Plan (hereafter collectively referred to as the “Stock Option
Agreements”), you were granted options to purchase an aggregate of 1,278,652 shares of the Company’s common stock (the “Option”). The Option has vested as to 365,702 shares (the “Vested
Shares”) and remains unvested as to 912,950 shares (the “Unvested Shares”). You have exercised none of the Vested Shares leaving all of the Vested Shares unexercised (the “Unexercised Vested
Shares”). 

 
Because your employment is terminating on the Separation Date, in the normal course, none of the Unvested Shares can ever vest except as provided in this Section 9, and per the Stock Option
Agreements, you will have twelve (12) months following the Consulting Termination Date (as defined below) (such date, the “Second Separation Date”), to exercise the Unexercised Vested Shares. 

b. Notwithstanding the preceding paragraph, if you execute this Agreement and the Consulting Agreement and each becomes effective on its terms,
then, in exchange for the general release and waiver of claims contained herein, your Option shall continue to vest pursuant to the terms of the Stock Option Agreements until the earlier of: (i) the termination of the Consulting Agreement,
pursuant to the terms therein, and (ii) December 31, 2019, (such date, the “Consulting Termination Date”, and any additional shares of the Option that vest pursuant to this sentence, the “Consulting
Vested Shares”). Following the Consulting Termination Date, none of the Unvested Shares can ever vest (except as provided in 9.c. below), and per the Stock Option Agreements, you will have twelve (12) months following the
Consulting Termination Date (as defined below) to exercise the Unexercised Vested Shares and the Consulting Vested Shares. 
 c. In addition
to the prior paragraph, if you execute this Agreement and it becomes effective on its terms, then, in exchange for the general release and waiver of claims contained herein, the Company agrees to, and hereby does, (a) accelerate the vesting of
384,889 shares subject to the Option, which represents the number of shares that would have vested had you remained employed with the Company for twelve (12) months following the Separation Date (the “Accelerated Vested
Shares”) and (b) extend the deadline to exercise the Accelerated Vested Shares to the twelve (12) month anniversary of the Second Separation Date. After the twelve-month anniversary of the Second Separation Date, you will no
longer have a right to exercise the Options as to any shares. You acknowledge that the foregoing extension to the exercise period may cause an incentive stock option to be reclassified as a non-qualified stock
option under applicable tax laws, and that you and not the Company shall be solely responsible for any tax consequences relating to such reclassification, including satisfaction of all applicable tax withholding requirements, excluding any employer
withholding taxes that are the responsibility of the Company as defined under applicable tax laws, that become due upon exercise of the Options. Your rights concerning the Options will continue to be governed by the Stock Option Agreements, as
amended by this Agreement. 
 10. Non-disparagement: You agree that you will not disparage Releasees or their
products, services, agents, representatives, directors, officers, shareholders, attorneys, employees, vendors, affiliates, successors or assigns, or any person acting by, through, under or in concert with any of them, with any written or oral
statement. Nothing in this section shall prohibit you from providing truthful information in response to a subpoena or other legal process. 
 11.
Arbitration: Except for any claim for injunctive relief arising out of a breach of a party’s obligations to protect the other’s proprietary information, the parties agree to arbitrate, in Los Angeles County, California through JAMS,
any and all disputes or claims arising out of or related to the validity, enforceability, interpretation, performance or breach of this Agreement, whether sounding in tort, contract, statutory violation or otherwise, or involving the construction

 
or application or any of the terms, provisions, or conditions of this Agreement. Any arbitration may be initiated by a written demand to the other party. The arbitrator’s decision shall be
final, binding, and conclusive. The parties further agree that this Agreement is intended to be strictly construed to provide for arbitration as the sole and exclusive means for resolution of all disputes hereunder to the fullest extent permitted by
law. The parties expressly waive any entitlement to have such controversies decided by a court or a jury. 
 12. Attorneys’ Fees: If any action
is brought to enforce the terms of this Agreement, the prevailing party will be entitled to recover its reasonable attorneys’ fees, costs and expenses from the other party, in addition to any other relief to which the prevailing party may be
entitled. 
 13. Confidentiality: The contents, terms and conditions of this Agreement must be kept confidential by you and the Company, including
its directors, officers, employees and agents (together, the “Parties”). The Parties may not disclose the terms except as required to your immediate family, or to accountants or attorneys or pursuant to subpoena or court
order. Notwithstanding the two previous sentences, the Company may disclose the existence, contents and terms of this Agreement: (i) to its personnel for purposes of carrying out the terms of this Agreement, and (ii) as required by
applicable laws and regulations, including but not limited to the U.S. Securities Act and any Securities and Exchange Commission, any market or exchange rules or requirement, or other governmental entity reporting requirement. The Parties agree that
if they are asked for information concerning this Agreement, they will state only that you and the Company reached an amicable resolution concerning your voluntary separation from the Company. Any breach of this confidentiality provision shall be
deemed a material breach of this Agreement. 
 14. No Admission of Liability: This Agreement is not and shall not be construed or contended by you to
be an admission or evidence of any wrongdoing or liability on the part of Releasees, their representatives, heirs, executors, attorneys, agents, partners, officers, shareholders, directors, employees, subsidiaries, affiliates, divisions, successors
or assigns. This Agreement shall be afforded the maximum protection allowable under California Evidence Code Section 1152 and/or any other state or federal provisions of similar effect. 

15. Complete and Voluntary Agreement: This Agreement, together with Exhibits A-D hereto and the Stock Option
Agreements, constitute the entire agreement between you and Releasees with respect to the subject matter hereof and supersedes all prior negotiations and agreements, whether written or oral, relating to such subject matter. You acknowledge that
neither Releasees nor their agents or attorneys have made any promise, representation or warranty whatsoever, either express or implied, written or oral, which is not contained in this Agreement for the purpose of inducing you to execute the
Agreement, and you acknowledge that you have executed this Agreement in reliance only upon such promises, representations and warranties as are contained herein, and that you are executing this Agreement voluntarily, free of any duress
or coercion. 
 16. Severability: The provisions of this Agreement are severable, and if any part of it is found to be invalid or unenforceable,
the other parts shall remain fully valid and enforceable. Specifically, should a court, arbitrator, or government agency conclude that a particular claim may not be released as a matter of law, it is the intention of the parties that the general
release, the waiver of unknown claims and the covenant not to sue above shall otherwise remain effective to release any and all other claims. 

 17. Modification; Counterparts; Facsimile/PDF Signatures: It is expressly agreed that this Agreement
may not be altered, amended, modified, or otherwise changed in any respect except by another written agreement that specifically refers to this Agreement, executed by authorized representatives of each of the parties to this Agreement. This
Agreement may be executed and delivered by electronic signature and in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Counterparts may be delivered via
electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly
delivered and be valid and effective for all purposes. 
 18. Review of Separation Agreement; Expiration of Offer: You understand that you may take
up to twenty-one (21) days to consider this Agreement (the “Consideration Period”). The offer set forth in this Agreement, if not accepted by you before the end of the
Consideration Period, will automatically expire. By signing below, you affirm that you were advised to consult with an attorney prior to signing this Agreement. You also understand you may revoke this Agreement within seven (7) days of signing
this document and that the separation compensation to be provided to you pursuant to Section 3 will be provided only after the expiration of that seven (7) day revocation period. 

19. Effective Date: This Agreement is effective on the eighth (8th) day after you sign it and without revocation by you (the “Effective
Date”). 
 20. Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of California.

 If you agree to abide by the terms outlined in this Agreement, please sign and return it to
me. I wish you the best in your future endeavors. 
  

			
	 Sincerely,
	 	
	
	 Graybug Vision, Inc.

		
	By: 	 	/s/ Frederic Guerard
		 	 Frederic Guerard,

		 	 Chief Executive Officer

 

			
	READ, UNDERSTOOD AND AGREED	  	
		
	 /s/ Pamela Wapnick
	  	Date: 9/11/2019
	Pamela Wapnick,	  	
	Chief Financial Officer	  	

 EXHIBIT A 

Offer Letter 

 GRAYBUG VISION, INC 

275 SHORELINE DRIVE, SUITE 450 

REDWOOD CITY, CA 94065 

November 11, 2017 
 Pamela
Wapnick 
 Dear Pam: 
 Graybug Vision, Inc.
(the “Company”) is pleased to offer you employment on the following terms: 
 1.    Position.
Your title will be Chief Financial Officer and you will report to the Company’s Chief Executive Officer (the “CEO”). This is a full-time position. This position will require such travel as is necessary to fulfill your duties under
this Letter Agreement. You agree to be physically present in the workplace at Graybug’s corporate offices, or such other location as Graybug may specify, at least 50% of the regular business days per month and this agreement will be mutually
evaluated annually to determine if revisions are required. 
 2.    Start Date. Subject to fulfillment of any
conditions imposed by this Letter Agreement, you will commence employment on December 11, 2017 or a mutually acceptable date within 30 days of this date (the “Start Date”). 

3.    Background Check/Proof of Right to Work. This offer is contingent upon a background check clearance and
reference check. In addition, for purposes of federal immigration law, you will be required to provide to the Company satisfactory documentary proof of your identity and eligibility for employment in the United States, and this offer is contingent
upon such satisfactory proof. Such documentation must be provided to the Company within three business days of your date of hire. 

4.    Cash Compensation. The Company will pay you a starting salary at the rate of $310,000 per year,
subject to applicable withholdings, payable in accordance with the Company’s standard payroll schedule which is currently semi-monthly payments. This salary will be subject to adjustment pursuant to the Company’s employee compensation
policies in effect from time to time. As an exempt salaried employee, you will be expected to work hours as required by the nature of your work assignments, including hours beyond the Company’s normal business hours, and you will not be
eligible for nor entitled to receive overtime compensation. 

 Pamela Wapnick 

November 11, 2017 
 Page 2 

 

 In addition to your salary, the Company will reimburse you for reasonable rental and travel expenses to and
from your current home. The Company will gross up these expenses for the applicable taxes. The maximum Company reimbursement will be $50,000 per annum, and can be adjusted with approval by the CEO. 

5.    Bonus. In addition, you will be eligible to be considered for a discretionary incentive and retention
bonus for each fiscal year of the Company. Whether you are awarded any bonus for a given fiscal year, and the amount of the bonus (if any), will be determined by the Company in its sole discretion based on your or the Company’s achievement of
objective or subjective criteria established and approved by the Company’s Board of Directors. Your target bonus will be equal to up to 30% of your annual base salary. Any bonus for the fiscal year in which your employment begins
will be prorated, based on the number of days you are employed by the Company during that fiscal year. Any bonus for a fiscal year will be paid within 21⁄2 months
after the close of that fiscal year, and you must remain actively employed by the Company at the time of payment in order to earn a bonus for that fiscal year. The determinations of the Company’s Board of Directors with respect to your bonus
will be final and binding. 
 6. Severance Benefits Not in Connection with a Change in Control.1 
 (a)    General. Except as set forth in Section 7, if
the Company terminates your employment for any reason other than for Cause or other than as a result of death or Permanent Disability, and a Separation occurs, then you will be entitled to the benefits described in this Section 6. However, this
Section 6 will not apply unless you (i) have returned all Company property in your possession, (ii) have resigned as a member of the Boards of Directors of the Company and all of its subsidiaries, to the extent applicable, and
(iii) have executed a general release of all claims that you may have against the Company or persons affiliated with the Company. The release must be in the form prescribed by the Company, without alterations. You must execute and return the
release on or before the date specified by the Company in the prescribed form (the “Release Deadline”). The Release Deadline 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)    Salary Continuation. If the Company terminates your employment for any reason other than for
Cause or other than as a result of death or Permanent Disability and a Separation occurs, then the Company will continue to pay your base salary for a period of six months after your Separation. Your base salary will be paid at the rate in effect at
the time of your Separation and in accordance with the Company’s standard payroll procedures. The salary continuation payments will commence within 30 days after the Release Deadline and, once they commence, will be retroactive to the date of
your Separation. The salary continuation payments will end when you commence new employment or substantial self-employment. 

(c)    COBRA. If the Company terminates your employment for any reason other than for Cause or other than as a
result of death or Permanent Disability, a Separation occurs, and you elect to continue your health insurance coverage under the Consolidated Omnibus Budget 

 

	1 	 Several capitalized terms are defined in Section 17. 

 Pamela Wapnick 

November 11, 2017 
 Page 3 

 

 
Reconciliation Act (“COBRA”) following your Separation, then the Company will pay the same portion of your monthly premium under COBRA as it pays for active employees until the earliest
of (i) the close of the six-month period following your Separation, (ii) the expiration of your continuation coverage under COBRA or (iii) the date when you commence new employment or
substantial self-employment and become covered under another group health plan. 
 (d)    Accelerated
Vesting. If the Company terminates your employment for any reason other than for Cause or other than as a result of death or Permanent Disability and a Separation occurs, and if vesting does not accelerate under Section 9, then the
vested percentage of the shares subject to the Option (as defined below) will be determined by adding twelve months to the actual period of service that you have completed with the Company. 

(e)    Exercise of Option. If the Company terminates your employment for any reason other than for Cause and a
Separation occurs, you will have the opportunity to exercise the vested portion of your Option until the first anniversary of your termination. 

7.    Severance Benefits in Connection with a Change in
Control. You will also be entitled to the benefits set forth in the Company’s Change in Control Severance Policy adopted by the Company’s Board of Directors on October 6, 2017, as amended from time to time (the
“Policy”), subject to the terms and conditions set forth therein. For the avoidance of doubt, the severance payments and benefits payable pursuant to Section 6 above and this Section 7 are not cumulative. You hereby
acknowledge that the severance benefits payable pursuant to this Section 7 are intended to be the sole and exclusive severance benefits payable to you in connection with a Change in Control (as defined in the Policy) and you hereby waive any
and all rights you may have with respect to any severance benefits in connection with a Change in Control other than such benefits provided pursuant to the Policy. 

8.    Employee Benefits. You will be eligible to participate in such Company-sponsored benefits, including
its medical, dental and 401(k) plans or arrangements, under the terms and conditions of the benefit plans that the Company may offer to its senior management from time to time. In addition, you will be entitled to accrue and use paid vacation
benefits, in accordance with the Company’s vacation policy, as in effect from time to time. 
 9. Stock Options.2 
 (a)    In connection with the commencement of your employment and
subject to the approval of the Company’s Board of Directors (or an authorized committee thereof), you will be granted an option to purchase shares of the Company’s Common Stock (the “Option”) to result in an immediate
post-Series B financing fully-diluted equity ownership of 1.25% after each tranche of the Series B as described in more detail below. 

(b)    First Tranche. This Subsection (b) will apply to the first 695,128 Option shares (the “First
Tranche”), which represents a fully-diluted equity ownership of 1.25 % as of the date hereof. You will vest in 25% of the First Tranche after the first 12 months of continuous 

 

	2 	 Several capitalized terms are defined in Section 17. 

 Pamela Wapnick 

November 11, 2017 
 Page 4 

 

 
service, commencing on the Start Date, and will vest in the balance of the First Tranche in equal monthly installments over the next three years of continuous service. The vested percentage of
the First Tranche will be determined by adding 12 months to the actual period of service that you have completed with the Company if the Company terminates your service without Cause. 

(c)    Second Tranche. This Subsection (c) will apply to 161,267 Option shares (the “Second
Tranche”) which, together with the First Tranche, represents a fully-diluted equity ownership of 1.25 % as of the date hereof assuming the consummation of the remaining tranche of the Series B financing (and assuming no other changes to
the fully diluted capitalization between the date hereof and such tranche closing). You will vest in the Second Tranche only if (i) the Milestone, as defined in the Company’s Series B Preferred Stock Purchase Agreement dated April 29,
2016 as amended on June 30, 2017 (the “Purchase Agreement”), is satisfied on or before April 1, 2018, and (ii) all “Milestone Closings,” as defined in the Purchase Agreement, have occurred. Provided that the
requirements described in the preceding sentence have been met, you will vest in 25% of the Second Tranche options after the first 12 months of continuous service after the Second Tranche, and will vest in the balance of the Second Tranche in equal
monthly installments over the next 36 months of continuous service. 
 (d)    The exercise price per share of the Option
will equal the fair market value on the date of grant as determined by the Company’s Board of Directors. The Option will be subject to the terms and conditions applicable to options granted under the Company’s 2015 Stock Incentive Plan
(the “Plan”), as described in the Plan and the applicable Stock Option Agreement, including vesting provisions consistent with Subsections 9(b)&(c) above. You will have the right to early exercise of the Option pursuant to
approval by the Board of Directors. 
 10.    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 or advance notice. 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). 
 11.    No Breach of Obligations to Prior
Employers. You represent that your signing of this letter agreement, agreement(s) concerning stock options granted to you, and the Employee Confidential Information and Inventions Assignment Agreement and your commencement of
employment with the Company will not violate any agreement currently in place between yourself and current or past employers. You further represent that you have not, and agree that you will not, during the term of your employment with the Company,
enter into any oral or written agreement in conflict with any of the provisions of this letter or the Company’s policies. You are not to bring with you to the Company, or use or disclose to any person associated with the Company, any
confidential or proprietary information belonging to any former employer or other person or entity with respect to which you owe an obligation of confidentiality under any agreement or otherwise. The Company does not want or need and will not use
such information, will assist you to preserve and protect the 

 Pamela Wapnick 

November 11, 2017 
 Page 5 

 

 
confidentiality of proprietary information belonging to third parties, and expects you to use in performing your duties for the Company only information which is generally known and used by
persons with training and experience comparable to your own, which is common knowledge in the industry or otherwise legally in the public domain, or which is otherwise provided or developed by the Company. Also, we expect you to abide by any
obligations to refrain from soliciting any person employed by or otherwise associated with any former employer and suggest that you refrain from having any contact with such persons until such time as any
non-solicitation obligation expires. 
 12.    Confidentiality. As
an employee of the Company, you will have access to certain confidential information of the Company and you may, during the course of your employment, develop certain information or inventions that will be the property of the Company. To protect the
interests of the Company, you will need to sign the Company’s standard “Employee Confidential Information and Inventions Assignment Agreement” as a condition of your employment. 

13.    Duty of Loyalty; Duty Not to Compete. You agree to the best of your ability and experience that you will at
all times loyally and conscientiously perform all of the duties and obligations required of and from you, and to the reasonable satisfaction of the Company. During the term of your employment, you further agree that you will devote all of your
business time and attention to the business of the Company, the Company will be entitled to all of the benefits and profits arising from or incident to all such work services and advice, you will not render commercial or professional services of any
nature to any person or organization, whether or not for compensation, without the prior written consent of the Company, and you will not directly or indirectly engage or participate in any business that is competitive in any manner with the
business of the Company or that would create a conflict of interest with the Company. Nothing in this letter agreement will prevent you from accepting speaking or presentation engagements in exchange for honoraria or from serving on boards of
charitable organizations or such private or public companies, so long as these activities do not interfere with the performance of your duties with the Company, or from owning no more than one percent (1%) of the outstanding equity securities of a
corporation whose stock is listed on a national stock exchange. 
 14.    Tax Matters. 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. 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. 
 15.    Interpretation, Amendment and Enforcement.
This letter agreement, together with the Employee Confidential Information and Inventions Assignment Agreement, constitutes the complete agreement between you and the Company with respect to the subject matter hereof and supersedes any prior
agreements, representations or understandings (whether written, oral or implied) between you and the Company. Once signed, changes to the terms of this letter agreement, other than those changes expressly reserved to the Company’s modification
and/or discretion, require an express written modification 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 

 Pamela Wapnick 

November 11, 2017 
 Page 6 

 

 
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. Not withstanding any provisions
of this Letter to the contrary, to the extent of any conflict between the provisions of this Letter and the 2015 Stock Incentive Plan, the terms of the Plan shall take precedence and superseded any conflicting terms of this Letter. 

16.    Definitions. The following terms have the meaning set forth below wherever they are used in this letter
agreement: 
 “Cause” means (a) your unauthorized use or disclosure of the Company’s confidential information or
trade secrets, which use or disclosure causes material harm to the Company, (b) your material breach of any agreement between you and the Company, (c) your material failure to comply with the Company’s written policies or rules,
(d) your conviction of, or your plea of “guilty” or “no contest” to, a felony under the laws of the United States or any State, (e) your gross negligence or willful misconduct, (f) your continuing failure to perform
assigned duties after receiving written notification of the failure from the Company’s Board of Directors or (g) your failure to cooperate in good faith with a governmental or internal investigation of the Company or its directors, officers or
employees, if the Company has requested your cooperation. 
 “Permanent Disability” means that you are unable to perform
the essential functions of your position, with or without reasonable accommodation, for a period of at least 120 consecutive days because of a physical or mental impairment. 

“Separation” means a “separation from service,” as defined in the regulations under Section 409A of the
Internal Revenue Code of 1986, as amended. 
 **** 

 Pamela Wapnick 

November 11, 2017 
 Page 7 

 

 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. This offer, if not accepted, will
expire at the close of business on November 15, 2017. 
 If you have any questions, please do not hesitate to contact me. 

 

	
	Very truly yours,
	
	GRAYBUG VISION, INC.
	
	/s/ Jeffrey L. Cleland
	By: Jeffrey L. Cleland, Ph.D.
	Title: President & Chief Executive Officer

 I have read and understood this letter agreement and hereby acknowledge, accept and agree to the terms as set forth
above and further acknowledge that no other commitments were made to me as part of my employment offer except as specifically set forth herein. 
 /s/
Pamela Wapnick 
  

			
		 	Signature of Employee
	Dated:	 	 11/13/17

 EXHIBIT B 

Consulting Agreement 

 CONSULTING AGREEMENT 

This Consulting Agreement (“Agreement”) is entered into as of September 11, 2019 (the “Effective Date”),
between Graybug Vision, Inc., a Delaware corporation having its principal place of business at 275 Shoreline Drive, Suite 450, Redwood City, CA 94065 (“Company”) and Pamela Wapnick (“Consultant”). 

Company and Consultant desire to have Consultant perform services for Company, subject to and in accordance with the terms and conditions of this Agreement.

 THEREFORE, the parties agree as follows: 

 

 1.    SERVICES 

1.1    Statement of Work. Company and Consultant have executed (or will execute) a statement of work, substantially in the form
attached hereto as Exhibit A, that describes the specific services to be performed by Consultant (as executed, a “Statement of Work”). The Statement of Work will expressly refer to this
Agreement, will form part of this Agreement, and will be subject to the terms and conditions contained herein. The Statement of Work may be amended only by written agreement of the parties. 

1.2    Performance of Services. Consultant will perform the services described in the Statement of Work (the
“Services”) in accordance with the terms and conditions set forth in such Statement of Work and this Agreement. 

1.3    Delivery. Consultant will deliver to Company the deliverables, designs, modules, software, products, documentation and other
materials specified in the Statement of Work (individually or collectively, “Deliverables”) in accordance with the delivery schedule and other terms and conditions set forth in the Statement of Work. 

2.    PAYMENT 

2.1    Fees. As Consultant’s sole compensation for the performance of Services, Company will pay Consultant the compensation
specified in the Statement of Work in accordance with the terms set forth therein. Without limiting the generality of the foregoing, Consultant acknowledges and agrees that, if specified in the Statement of Work,

 
Company’s payment obligation will be expressly subject to Consultant’s completion or achievement of certain milestones to Company’s reasonable satisfaction. 

2.2    Expenses. Unless otherwise provided in the Statement of Work, Company will also reimburse Consultant for all reasonable and
customary out-of-pocket travel, lodging and related expenses incurred by Consultant in connection with Consultant’s performance of Services. At Company’s
request, Consultant will furnish Company with copies of receipts and other customary documentation for any expenses for which Consultant requests reimbursement hereunder. 

2.3    Payment Terms. All fees and other amounts set forth in the Statement of Work, if any, are stated in and are payable in U.S.
dollars. Unless otherwise provided in the Statement of Work, Consultant will invoice Company on a monthly basis for all fees and expenses payable to Consultant. Company will pay the full amount of each such invoice within thirty (30) days
following receipt thereof, except for any amounts that Company disputes in good faith. The parties will use their respective commercially reasonable efforts to promptly resolve any such payment disputes. 

3.    RELATIONSHIP OF THE PARTIES 

3.1    Independent Contractor. Consultant is an independent contractor and nothing in this Agreement will be construed as
establishing an employment or agency relationship between Company and Consultant. Consultant has no

 

 
authority to bind Company by contract or otherwise. Consultant will perform Services under the general direction of Company, but Consultant will determine, in Consultant’s sole discretion,
the manner and means by which Services are accomplished, subject to the requirement that Consultant will at all times comply with applicable law. 

3.2    Taxes and Employee Benefits. Consultant will report to all applicable government agencies as income all compensation
received by Consultant pursuant to this Agreement. Consultant will be solely responsible for payment of all withholding taxes, social security, workers’ compensation, unemployment and disability insurance or similar items required by any
government agency. Consultant will not be entitled to any benefits paid or made available by Company to its employees, including, without limitation, any vacation or illness payments, or to participate in any plans, arrangements or distributions
made by Company pertaining to any bonus, stock option, profit sharing, insurance or similar benefits. Consultant will indemnify and hold Company harmless from and against all damages, liabilities, losses, penalties, fines, expenses and costs
(including reasonable fees and expenses of attorneys and other professionals) arising out of or relating to any obligation imposed by law on Company to pay any withholding taxes, social security, unemployment or disability insurance or similar items
in connection with compensation received by Consultant pursuant to this Agreement. 
 3.3    Liability Insurance. Consultant
acknowledges that Company will not carry any liability insurance on behalf of Consultant. Consultant will maintain in force adequate liability insurance to protect Consultant from claims of personal injury (or death) or tangible or intangible
property damage (including loss of use) that arise out of any act or omission of Consultant. 
 4.    OWNERSHIP 

4.1    Disclosure of Work Product. Consultant will, as an integral part of the performance of Services, disclose in writing to
Company all inventions, products, designs, drawings, notes,

 
documents, information, documentation, improvements, works of authorship, processes, techniques, know-how, algorithms, specifications, biological or
chemical specimens or samples, hardware, circuits, computer programs, databases, user interfaces, encoding techniques, and other materials of any kind that Consultant may make, conceive, develop or reduce to practice, alone or jointly with others,
in connection with performing Services, or that result from or that are related to such Services, whether or not they are eligible for patent, copyright, mask work, trade secret, trademark or other legal protection (collectively,
“Consultant Work Product”). Consultant Work Product includes without limitation any Deliverables that Consultant delivers to Company pursuant to Section 1.3. 

4.2    Ownership of Consultant Work Product. Consultant agrees that all Consultant Work Product will be the sole and exclusive
property of Company. Consultant hereby irrevocably transfers and assigns to Company, and agrees to irrevocably transfer and assign to Company, all right, title and interest in and to the Consultant Work Product, including all worldwide patent rights
(including patent applications and disclosures), copyright rights, mask work rights, trade secret rights, know-how, and any and all other intellectual property or proprietary rights (collectively,
“Intellectual Property Rights”) therein. At Company’s request and expense, during and after the term of this Agreement, Consultant will assist and cooperate with Company in all respects, and will execute documents, and
will take such further acts reasonably requested by Company to enable Company to acquire, transfer, maintain, perfect and enforce its Intellectual Property Rights and other legal protections for the Consultant Work Product. Consultant hereby
appoints the officers of Company as Consultant’s attorney-in-fact to execute documents on behalf of Consultant for this limited purpose. 

4.3    Moral Rights. To the fullest extent permitted by applicable law, Consultant also hereby irrevocably transfers and assigns to
Company, and agrees to irrevocably transfer and assign to Company, and waives and agrees never

 

  
 2 

 
to assert, any and all Moral Rights (as defined below) that Consultant may have in or with respect to any Consultant Work Product, during and after the term of this Agreement. “Moral
Rights” mean any rights to claim authorship of a work, to object to or prevent the modification or destruction of a work, to withdraw from circulation or control the publication or distribution of a work, and any similar right, existing
under judicial or statutory law of any country in the world, or under any treaty, regardless of whether or not such right as called or generally referred to as a “moral right.” 

4.4    Related Rights. To the extent that Consultant owns or controls (presently or in the future) any patent rights, copyright
rights, mask work rights, trade secret rights, or any other intellectual property or proprietary rights that may block or interfere with, or may otherwise be required for, the exercise by Company of the rights assigned to Company under this
Agreement (collectively, “Related Rights”), Consultant hereby grants or will cause to be granted to Company a non-exclusive, royalty-free, irrevocable, perpetual, transferable,
worldwide license (with the right to sublicense) to make, have made, use, offer to sell, sell, import, copy, modify, create derivative works based upon, distribute, sublicense, display, perform and transmit any products, software, hardware, methods
or materials of any kind that are covered by such Related Rights, to the extent necessary to enable Company to exercise all of the rights assigned to Company under this Agreement. 

5.    CONFIDENTIAL INFORMATION 
 For
purposes of this Agreement, “Confidential Information” means and will include: (i) any information, materials or knowledge regarding Company and its business, financial condition, products, programming techniques,
customers, suppliers, technology or research and development that is disclosed to Consultant or to which Consultant has access in connection with performing Services; (ii) the Consultant Work Product; and (iii) the terms and conditions of
this Agreement. Confidential Information will not include any information that: (a) is or becomes part

 
of the public domain through no fault of Consultant; (b) was rightfully in Consultant’s possession at the time of disclosure, without restriction as to use or disclosure; or
(c) Consultant rightfully receives from a third party who has the right to disclose it and who provides it without restriction as to use or disclosure. At all times, both during Consultant’s engagement by Company as an independent
contractor and after its termination, and to the fullest extent permitted by law, Consultant agrees to hold all Confidential Information in strict confidence, not to use it in any way, commercially or otherwise, except in performing Services, and
not to disclose it to others. Consultant further agrees to take all actions reasonably necessary to protect the confidentiality of all Confidential Information. Nothing in this Section 5 or otherwise in this Agreement shall limit or restrict in
any way Consultant’s immunity from liability for disclosing Company’s trade secrets as specifically permitted by 18 U.S. Code Section 1833, the pertinent provisions of which are attached hereto as Exhibit B. 

6.    WARRANTIES 

6.1    No Pre-existing Obligations. Consultant represents and warrants that Consultant has
no pre-existing obligations or commitments (and will not assume or otherwise undertake any obligations or commitments) that would be in conflict or inconsistent with or that would hinder Consultant’s
performance of its obligations under this Agreement. 
 6.2    Performance Standard. Consultant represents and warrants that
Services will be performed in a thorough and professional manner, consistent with high professional and industry standards by individuals with the requisite training, background, experience, technical knowledge and skills to perform Services. 

6.3    Non-infringement. Consultant represents and warrants that the Consultant Work
Product will not infringe, misappropriate or violate the rights of any third party, including, without limitation, any Intellectual Property Rights or any rights of privacy or rights of publicity, except to the extent any portion of the Consultant
Work Product is created, developed or supplied by Company or by a third party on behalf of Company. 

 

  
 3 

 6.4    Competitive Activities. During the term of this Agreement, Consultant will
not, directly or indirectly, in any individual or representative capacity, engage or participate in or provide services to any business that is competitive with the types and kinds of business being conducted by Company. 

6.5    Non-Solicitation of Personnel. During the term of this Agreement and for a period of
one (1) year thereafter, Consultant will not directly or indirectly solicit the services of any Company employee or consultant for Consultant’s own benefit or for the benefit of any other person or entity. 

7.    INDEMNITY 
 Consultant will
defend, indemnify and hold Company harmless from and against all claims, damages, liabilities, losses, expenses and costs (including reasonable fees and expenses of attorneys and other professionals) arising out of or resulting from: 

(a)    any action by a third party against Company that is based on a claim that any Services performed under this
Agreement, or the results of such Services (including any Consultant Work Product), or Company’s use thereof, infringe, misappropriate or violate such third party’s Intellectual Property Rights; and 

(b)    any action by a third party against Company that is based on any act or omission of Consultant and that results
in: (i) personal injury (or death) or tangible or intangible property damage (including loss of use); or (ii) the violation of any statute, ordinance, or regulation. 

8.    TERM AND TERMINATION 

8.1    Term. This Agreement will commence on the Effective Date and, unless terminated earlier in accordance with the terms of this
Agreement, will remain in force and effect for as long as Consultant is performing Services pursuant to the Statement of Work.

 8.2    Termination for Breach. Either party may terminate this Agreement (including
the Statement of Work) if the other party breaches any material term of this Agreement and fails to cure such breach within thirty (30) days following written notice thereof from the non-breaching party.

 8.3    Termination for Convenience. Company may terminate this Agreement (including the Statement of Work) at any time, for
any reason or no reason, upon at least thirty (30) days written notice to Consultant. 
 8.4    Effect of Termination. Upon
the expiration or termination of this Agreement for any reason: (i) Consultant will promptly deliver to Company all Consultant Work Product, including all work in progress on any Consultant Work Product not previously delivered to Company, if
any; (ii) Consultant will promptly deliver to Company all Confidential Information in Consultant’s possession or control; and (iii) Company will pay Consultant any accrued but unpaid fees due and payable to Consultant pursuant to
Section 2. 
 8.5    Survival. The rights and obligations of the parties under Sections 2, 3.2, 3.3, 4, 5, 6.3, 6.5, 7,
and 8.4 will survive the expiration or termination of this Agreement. 
 9.    GENERAL 

9.1    Assignment. Consultant may not assign or transfer this Agreement, in whole or in part, without Company’s express prior
written consent. Any attempt to assign this Agreement, without such consent, will be void. Subject to the foregoing, this Agreement will bind and benefit the parties and their respective successors and assigns. 

9.2    No Election of Remedies. Except as expressly set forth in this Agreement, the exercise by Company of any of its remedies
under this Agreement will not be deemed an election of remedies and will be without prejudice to its other remedies under this Agreement or available at law or in equity or otherwise.

 

  
 4 

 9.3    Equitable Remedies. Because the Services are personal and unique and because
Consultant will have access to Confidential Information of Company, Company will have the right to enforce this Agreement and any of its provisions by injunction, specific performance or other equitable relief, without having to post a bond or other
consideration, in addition to all other remedies that Company may have for a breach of this Agreement at law or otherwise. 

9.4    Attorneys’ Fees. If any action is necessary to enforce the terms of this Agreement, the substantially prevailing party
will be entitled to reasonable attorneys’ fees, costs and expenses in addition to any other relief to which such prevailing party may be entitled. 

9.5    Governing Law. This Agreement will be governed by and construed in accordance with the laws of the State of California,
excluding its body of law controlling conflict of laws. Any legal action or proceeding arising under this Agreement will be brought exclusively in the federal or state courts located in the Northern District of California and the parties irrevocably
consent to the personal jurisdiction and venue therein. 
 9.6    Severability. If any provision of this Agreement is held
invalid or unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement will remain in full force and effect, and the provision affected will be construed so as to be enforceable to the maximum extent permissible by
law. 
 9.7    Waiver. The failure by either party to enforce any provision of this Agreement will not constitute a waiver of
future enforcement of that or any other provision. 

 

 9.8    Notices. All notices required or permitted under this Agreement will be in
writing, will reference this Agreement, and will be deemed given: (i) when delivered personally; (ii) one (1) business day after deposit with a nationally-recognized express courier, with written confirmation of receipt; or
(iii) three (3) business days after having been sent by registered or certified mail, return receipt requested, postage prepaid. All such notices will be sent to the addresses set forth above or to such other address as may be specified by
either party to the other party in accordance with this Section. 
 9.9    Entire Agreement. This Agreement, together with the
Statement of Work, constitutes the complete and exclusive understanding and agreement of the parties with respect to its subject matter and supersedes all prior understandings and agreements, whether written or oral, with respect to its subject
matter. No term in the Statement of Work will be deemed to amend the terms of this Agreement unless the Statement of Work references a specific provision in this Agreement and provides that the Statement of Work is amending only that specific
provision of this Agreement and only with respect to Services performed pursuant to such Statement of Work. 
 9.10     Any waiver,
modification or amendment of any provision of this Agreement will be effective only if in writing and signed by the parties hereto. 

9.11    Counterparts. This Agreement may be executed in counterparts, each of which will be deemed an original, but all of which
together will constitute one and the same instrument. 

 

  
 5 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date. 

 

							
	COMPANY:	    	CONSULTANT:
				
	By:	 	 /s/ Frederic Guerard
	    	By:	 	 /s/ Pamela Wapnick

				
	Name:	 	 Frederic Guerard
	    	Name:	 	 Pamela Wapnick

				
	Title:	 	 Chief Executive Officer
	    	Title:	 	 Chief Financial Officer

				
	Date:	 	 9/11/2019
	    	Date:	 	 9/11/2019

  
 6 

 EXHIBIT A 

STATEMENT OF WORK 
 This Statement of Work
is issued under and subject to all of the terms and conditions of the Consulting Agreement dated as of September 11, 2019, between Graybug Vision, Inc. (“Company”) and Pamela Wapnick
(“Consultant”). 
 1.    Description of Services Assist with the transition of Chief Financial Officer
and VP Finance related duties and related projects as so requested. 
 2.    Payment Terms  

 

			
	Hourly Consulting Rate:	  	$400
	Start Date:	  	September 11, 2019

 Consultant shall not work, and the Company shall not be responsible for payment, in excess of 40 hours per month, unless
otherwise approved in writing by the Company’s Chief Executive Officer. 
 AGREED AS OF SEPTEMBER 11, 2019 

 

							
	COMPANY:	    	CONSULTANT:
				
	By:	 	 /s/ Frederic Guerard
	    	By:	 	 /s/ Pamela Wapnick

				
	Name:	 	 Frederic Guerard
	    	Name:	 	 Pamela Wapnick

				
	Title:	 	 Chief Executive Officer
	    	Title:	 	 Chief Financial Officer

				
	Date:	 	 9/11/2019
	    	Date:	 	 9/11/2019

  
 7 

 EXHIBIT B 

DEFEND TRADE SECRETS ACT, 18 U.S. CODE § 1833 NOTICE: 

18 U.S. Code Section 1833 provides as follows: 

Immunity From Liability For Confidential Disclosure Of A Trade Secret To The Government Or In A Court Filing. 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. 

Use of Trade Secret Information in Anti-Retaliation Lawsuit. 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. 

  
 8EX-10.6

 Exhibit 10.6 

February 1, 2019 
 Fred Guerard 

Dear Fred: 
 On behalf of Graybug Vision, Inc.
(the “Company”), this letter employment agreement (the “Agreement”) sets forth the terms and conditions of your appointment as Chief Executive Officer of the Company,
effective as of a date to be mutually agreed upon between the Company and you but not later than February 1, 2019 (the “Employment Date”). 

Position. Effective on the Employment Date, you will be appointed as the Company’s Chief Executive Officer (“CEO”)
reporting to the Chairman of the Company’s Board of Directors (the “Board”). You will be expected to devote substantially all of your working time and attention to the business of the Company, and you will not render
services to any other business without the prior approval of the Board. Further, you may participate in charitable and other activities and you may have personal interests in investments, but such activities shall be done in a manner that does not
impair or interfere with your obligations hereunder. 
 1. You will be appointed to the Board as a director for each year of
the Employment Term. 
 2. Term. Subject to the terms of this Agreement, this Agreement will remain in effect for a
period commencing on the Employment Date and ending on the last day of your employment (the “Employment Term”). Either party hereto shall give the other party written notice of termination of employment at least thirty
(30) days prior to such last day of employment, except in the case of termination for Cause or due to your death or Disability. Upon a termination of employment, and to the extent requested in writing by the Company, you agree to resign from
all positions you may hold with the Company at such time (including as a member of the Board). 
 3. Compensation and
Benefits. Your annual base salary will be $475,000, payable in accordance with the Company’s normal payroll practices (as such may be adjusted from time to time, the “Base Salary”), less any payroll deductions and
withholdings as are required by law. During the Employment Term you will be eligible to receive an annual cash bonus, with a target amount equal to 40% of your Base Salary (the “Target Bonus” and the actual amount awarded,
the “Actual Bonus”), based upon the achievement of performance objectives established by the Board and subject to the terms of the applicable bonus plan(s). To receive payment of any Actual Bonus, you must be employed by the
Company on the last day of such fiscal year to which such bonus relates and at the time bonuses are paid. Your Actual Bonus will be paid by the fifteenth day of the third month following your or the Company’s taxable year in which it is earned,
whichever is later. 
 You shall be entitled to participate in all employee retirement, welfare and benefit programs of the Company as are in effect from
time to time and in which other senior management employees of the Company are eligible to participate, on the same terms as such other senior management employees. 

4. Equity Award. You are eligible for the following equity awards from the Company: 

a. Option. The Company will grant you a stock option to purchase 4,900,379 shares of the Company’s common stock
under the Company’s 2015 Stock Incentive Plan (the “Plan”), with a per share exercise price equal to the fair market value per share as determined by the Board (the “Equity Award”).

 b. Vesting. The Equity Award will be “incentive stock options” to the extent permitted under the Internal
Revenue Code of 1986 as amended (the “Code”), and will be early exercisable. The Equity Award will vest over four (4) years, twenty-five percent (25%) on the first anniversary of the vesting commencement date and in
equal installments on each of the thirty-six (36) months thereafter. Vesting will depend on your continued employment with the Company and will be subject to the terms and conditions of the Plan and the
written agreement governing the Equity Award. 

 5. Expenses. The Company will, in accordance with applicable Company
policies and guidelines, reimburse you for all reasonable and necessary expenses incurred by you in connection with your performance of services on behalf of the Company. Initially, and as the parties agree and review periodically going forward, the
Company will reimburse you, subject to applicable taxes and withholdings, for reasonable travel and lodging expenses incurred in connection with your travel from your home in Texas to the Company’s San Francisco, California office
(“Commuting Reimbursement”). The Commuting Reimbursement is intended to cover the following expenses, each to be secured at a reasonable rate and in a manner consistent with the Company’s travel policies: (i) your
travel to and from California; (ii) hotels or temporary housing in California; (iii) automobile rental in California; and (iv) a reasonable meal allowance while in California. Any Commuting Reimbursement payments which are
deemed taxable to you will be grossed up for federal and state income and employment taxes (the “Tax Gross-Up”). The total monthly amount of the Commuting Reimbursement and Tax Gross-Up will not exceed $5,000 per month, unless written approval of amounts over $5,000 per month is received from the Chairman of the Board. The Commuting Reimbursement will be made in accordance with Treas. Reg.
Sec. 1.409A-3(i)(1)(iv)(A) and Tax Gross-Up will be made in accordance with Treas. Reg. Sec. 1.409A-3(i)(1)(v). For the avoidance
of doubt, to the extent that any reimbursements payable to you are subject to the provisions of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”): (a) any such reimbursements will be paid no later than
December 31 of the year following the year in which the expense was incurred, (b) the amount of expenses reimbursed in one year will not affect the amount eligible for reimbursement in any subsequent year, and (c) the right to
reimbursement under this Agreement will not be subject to liquidation or exchange for another benefit. In addition, the Company shall reimburse you for all reasonable costs and expenses (including fees and disbursements of counsel) incurred by you
in negotiating the terms and conditions of this Agreement, up to $5,000. 
 6. Employment and Termination. Your
employment with the Company will be at-will and may be terminated by you or by the Company at any time for any reason as follows: (a) you may terminate your employment upon written notice to the Board at
any time in your discretion (“Voluntary Termination”); (b) the Company may terminate your employment upon written notice to you at any time following a determination that there is “Cause,” as defined
below, for such termination (“Termination for Cause”); and (c) the Company may terminate your employment upon written notice to you at any time without Cause for such termination
(“Termination without Cause”). Notwithstanding anything to the contrary in this Agreement, (i) any reference herein to a termination of your employment is intended to constitute a “separation from
service” within the meaning of Section 409A of the Code (as defined below), and Section 1.409A-1(h) of the regulations promulgated thereunder, and shall be so construed, and (ii) no payment
will be made or become due to you upon termination of your employment unless such termination constitutes a “separation from service” within the meaning of Section 409A of the Code (as defined below) and you further resign from all
positions held at the Company (including as a member of the Board) consistent with Section 2 of this Agreement. 
 7.
Definitions. As used in this Agreement, the following terms have the following meanings: 
 a. Cause. For
purposes of this Agreement, “Cause” shall mean (a) your unauthorized use or disclosure of the Company’s confidential information or trade secrets, which use or disclosure causes material harm to the Company,
(b) your material breach of any agreement between you and the Company, (c) your material failure to comply with the Company’s written policies or rules, (d) your commission of, conviction of, or your plea of “guilty” or
“no contest” to, a felony under the laws of the United States or any State, (e) your gross negligence or willful misconduct with respect to the Company, (f) your continuing failure to perform assigned duties which failure remains
uncured (if curable) for a period of 20 days after written notice of such failure from the Board to you (such notice to specify the nature of the claimed failure), or (g) your failure to cooperate in good faith with a governmental or internal
investigation of the Company or its directors, officers or employees, if the Company has requested your cooperation. 
 b.
Change in Control. For purposes of this Agreement, “Change in Control” shall have the meaning set forth in the CIC Policy (referenced below). 

 c. COBRA. For purposes of this Agreement,
“COBRA” shall mean the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended. 

d. Disability. For purposes of this Agreement, “Disability” shall have that meaning set forth in
Section 22(e)(3) of the Internal Revenue Code of 1986, as amended (the “Code”). 
 8. Effect
of Termination of Employment. 
 a. Termination for Cause, Death or Disability, or Voluntary Termination.
In the event you are subject to a Termination for Cause, in the event of your death or Disability, or in the event of your Voluntary Termination, you will be paid only (i) any earned but unpaid Base Salary and earned but unused vacation or paid
time off, (ii) except in the case of Termination for Cause, the amount of any Actual Bonus earned and payable from a prior year which remains unpaid by the Company as of the date of the termination of employment determined in accordance with
customary practice, (iii) other unpaid and then vested amounts, including any amount payable to you under the specific terms of any agreements, plans or awards in which you participate (and subject to the terms of the foregoing), unless
otherwise specifically provided in this Agreement and (iv) reimbursement for all reasonable and necessary expenses incurred by you in connection with your performance of services on behalf of the Company in accordance with applicable Company
policies and guidelines, in each case as of the effective date of such termination of employment (the “Accrued Compensation”). 

b. Termination During Employment Term without Cause, Not in Connection with a Change in Control. In
the event of your Termination without Cause during the Employment Term not in connection with a Change in Control (as defined in Section 8(c) below), provided that (except with respect to the Accrued Compensation) you deliver to the Company a
signed settlement agreement and general release of claims in favor of the Company in the Company’s standard form (the “Release”) and satisfy all conditions to make the Release effective within sixty (60) days
following your termination of employment, then, you shall be entitled to (i) your Accrued Compensation, (ii) a lump sum payment equal to twelve (12) months of your then current Base Salary, payable on the regular first payroll date
after the 60th day following your termination of employment, (iii) provided you timely elect to continue health coverage under COBRA, reimbursement for any monthly COBRA premium payments made
by you in the twelve (12) months following your termination of employment, provided that, if the Company determines in its sole discretion that it cannot provide the COBRA benefits described herein without violating applicable law (including,
without limitation, Section 2716 of the Public Health Service Act), the Company shall in lieu thereof provide you with a taxable lump sum payment in an amount equal to the then unreimbursed monthly COBRA premiums, which lump sum payment will be
made on the first regular payroll date after the 60th day following your termination of employment, and (iv) the Company will accelerate the vesting of the Equity Award, such that, for the 9
periods following the termination date, any remaining incentive stock options that were not otherwise vested will continue to vest in equal monthly installments. 

c. Termination without Cause in Connection with a Change in Control. In the event of your Termination without
Cause in connection with a Change in Control or that occurs within the period beginning 3 months before and ending twelve (12) months following a Change in Control; provided that (except with respect to the Accrued Compensation) you deliver to
the Company the signed Release and satisfy all conditions to make the Release effective within sixty (60) days following your termination of employment, then, (in lieu of any benefits pursuant to Section 8(b)), you shall be entitled to
(i) your Accrued Compensation, (ii) the severance benefits provided in the Company’s Change in Control Severance Policy adopted October 6, 2017 (the “CIC Policy”). 

d. Miscellaneous. For the avoidance of doubt, the benefits payable pursuant to Section 8(b) or Section 8(c)
are not cumulative. If a Termination with Cause occurs during the Employment Term, then you will remain eligible to receive the benefits under Section 8(b) or Section 8(c). 

9. Parachute Payments. In the event that the severance and other benefits provided for in this Agreement or otherwise
payable to you (i) constitute “parachute payments” within the meaning of Section 280G of the Code, and (ii) but for this subparagraph, would be subject to the excise tax imposed by Section

 
4999 of the Code, then the severance benefits under will be either: (a) delivered in full, or (b) delivered as to such lesser extent which would result in no portion of such benefits
being subject to excise tax under Section 4999 of the Code, whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes and the excise tax imposed by Section 4999, results in the receipt by
you on an after-tax basis, of the greatest amount of benefits, notwithstanding that all or some portion of such benefits may be taxable under Section 4999 of the Code. Unless you and the Company otherwise
agree in writing, any determination required under this subparagraph will be made in writing by the Company’s public accountants immediately prior to any change of control or such other person or entity to which the parties mutually agree (the
“Accountants”), whose determination will be conclusive and binding upon you and the Company for all purposes. For purposes of making the calculations required by this subparagraph, the Accountants may make reasonable
assumptions and approximations concerning applicable taxes and may rely on reasonable good faith interpretations concerning the application of Sections 280G and 4999 of the Code. You and the Company will furnish to the Accountants such information
and documents as the Accountants may reasonably request in order to make a determination under this subparagraph. The Company will bear all costs the Accountants may incur in connection with any calculations contemplated by this subparagraph. 

10. Section 409A. To the extent (i) any payments to which you become entitled under this Agreement, or any
agreement or plan referenced herein, in connection with your termination of employment with the Company constitute deferred compensation subject to Section 409A of the Code and (ii) you are deemed at the time of such termination of
employment to be a “specified” employee under Section 409A of the Code, then such payment or payments shall not be made or commence until the earlier of (i) the expiration of the six (6)-month period measured from the date of
your “separation from service” (as such term is at the time defined in regulations under Section 409A of the Code) with the Company; or (ii) the date of your death following such separation from service; provided, however, that
such deferral shall only be effected to the extent required to avoid adverse tax treatment to you, including (without limitation) the additional twenty (20%) percent tax for which you would otherwise be liable under Section 409A(a)(1)(B) of the
Code in the absence of such deferral. Upon the expiration of the applicable deferral period, any payments which would have otherwise been made during that period (whether in a single sum or in installments) in the absence of this paragraph shall be
paid to you or your beneficiary in one lump sum (without interest). 
 Except as otherwise expressly provided herein, to the extent any
expense reimbursement or the provision of any in-kind benefit under this Agreement (or otherwise referenced herein) is determined to be subject to (and not exempt from) Section 409A of the Code, the
amount of any such expenses eligible for reimbursement, or the provision of any in-kind benefit, in one calendar year shall not affect the expenses eligible for reimbursement or in kind benefits to be provided
in any other calendar year, in no event shall any expenses be reimbursed after the last day of the calendar year following the calendar year in which you incurred such expenses, and in no event shall any right to reimbursement or the provision of
any in-kind benefit be subject to liquidation or exchange for another benefit. 
 To the extent that
any provision of this Agreement is ambiguous as to its exemption or compliance with Section 409A, the provision will be read in such a manner so that all payments hereunder are exempt from Section 409A to the maximum permissible extent,
and for any payments where such construction is not tenable, that those payments comply with Section 409A to the maximum permissible extent. To the extent any payment under this Agreement may be classified as a “short-term deferral”
within the meaning of Section 409A, such payment shall be deemed a short-term deferral, even if it may also qualify for an exemption from Section 409A under another provision of Section 409A. 

Payments pursuant to this Agreement (or referenced in this Agreement) are intended to constitute separate payments for purposes of Section 1.409A-2(b)(2) of the regulations under Section 409A. 
 11.
Confidential Information and Other Company Policies. You shall sign and abide by the Company’s standard confidentiality agreement (a form of which has been provided to you), code of conduct and any other policies and programs adopted by
the Company regulating the behavior of its employees, as such policies and programs may be amended from time to time. 

 12. Restrictive Covenants 

a. Records. All records, files, documents and the like, or abstracts, summaries or copies thereof, relating to the
business of the Company or the business of any subsidiary or affiliated companies, which the Company or you shall prepare or use or come into contact with, shall remain the sole property of the Company or the affiliated or subsidiary company, as the
case may be, and shall be promptly returned upon termination of employment. 
 b. Confidentiality. You acknowledge
that you have acquired and will acquire knowledge regarding confidential, proprietary and/or trade secret information in the course of performing your responsibilities for the Company, and you further acknowledge that such knowledge and information
is the sole and exclusive property of the Company. You recognize that disclosure of such knowledge and information, or use of such knowledge and information, to or by a competitor could cause serious and irreparable harm to the Company. 

c. Non-Solicitation/Non-Piracy. During
the Restriction Period, you will not solicit, aid in solicitation of, or intentionally induce, contact for the purpose of, or encourage any employee of the Company to leave the employ of the Company, hire any such person or otherwise interfere with
such employee’s relationship with the Company, except that general advertisements and internet or similar postings not directed to any employees of the Company and hiring any employees who respond to such advertisements or postings shall not be
deemed to be breaches of the foregoing covenant. 
 13. Indemnification. The Company shall indemnify you against all
actions, suits, claims, legal proceedings and the like to the fullest extent permitted by law, including advancement of expenses, partial indemnification, indemnification following the termination of this Agreement, indemnification of your estate
and similar matters. 
 14. Arbitration. You and the Company agree to submit to mandatory binding arbitration, in
Redwood City, CA, any and all claims arising out of or related to this agreement and your employment with the Company and the termination thereof, except that each party may, at its or his option, seek injunctive relief in court related to the
improper use, disclosure or misappropriation of a party’s proprietary, confidential or trade secret information. YOU AND THE COMPANY HEREBY WAIVE ANY RIGHTS TO TRIAL BY JURY IN REGARD TO SUCH CLAIMS. This agreement to arbitrate does not
restrict your right to file administrative claims you may bring before any government agency where, as a matter of law, the parties may not restrict your ability to file such claims (including, but not limited to, the National Labor Relations Board,
the Equal Employment Opportunity Commission and the Department of Labor). However, you and the Company agree that, to the fullest extent permitted by law, arbitration shall be the exclusive remedy for the subject matter of such administrative
claims. The arbitration shall be conducted through the American Arbitration Association (the “AAA”), provided that, (i) the arbitrators shall have no authority to make any ruling or judgment that would confer any
rights with respect to the trade secrets, confidential and proprietary information or other intellectual property of the Company upon you or any third party and (ii) this arbitration provision shall not preclude the Company or you from seeking
legal and equitable relief from any court having jurisdiction with respect to any disputes or claims relating to or arising out of the alleged misuse or misappropriation of the Company’s intellectual property. The arbitrator shall issue a
written decision that contains the essential findings and conclusions on which the decision is based. The parties acknowledge that they are hereby waiving any rights to trial by jury in any action, proceeding or counterclaim brought by either of the
parties against the other in connection with any matter whatsoever arising out of or in any way connected with this Agreement. 

15. Miscellaneous. 

a. Absence of Conflicts. You represent that your performance of your duties under this Agreement will not breach any
other agreement as to which you are a party. 
 b. Successors. This Agreement is binding on and may be enforced by the
Company and its successors and assigns and is binding on and may be enforced by you and your heirs and legal representatives. Any successor to the Company or substantially all of its business (whether by purchase, merger, consolidation or otherwise)
will in advance assume in writing and be bound by all of the Company’s obligations under this Agreement. 

 c. Notices. Notices under this Agreement must be in writing and will
be deemed to have been given when personally delivered or two days after mailed by U.S. registered or certified mail, return receipt requested and postage prepaid. Mailed notices to you will be addressed to you at the home address which you have
most recently communicated to the Company in writing. Notices to the Company will be addressed to the Chairman of the Board at the Company’s corporate headquarters. 

d. Waiver. No provision of this Agreement will be modified or waived except in writing signed by you and an officer of
the Company duly authorized by its Board. No waiver by either party of any breach of this Agreement by the other party will be considered a waiver of any other breach of this Agreement. 

e. Severability. In the event that any provision hereof becomes or is declared by a court of competent jurisdiction to
be illegal, unenforceable or void, this Agreement shall continue in full force and effect without said provision. 
 f.
Withholding. All sums payable to you hereunder shall be reduced by all federal, state, local and other withholding and similar taxes and payments required by applicable law. 

g. Entire Agreement. This Agreement represents the entire agreement between the parties concerning the subject matter of
your employment by the Company. It may be amended, or any of its provisions waived, only by a written document executed by both parties in the case of an amendment, or by the party against whom the waiver is asserted. 

h. Governing Law. This Agreement will be governed by the laws of the State of New York without reference to conflict of
law’s provisions. 
 i. Survival. The provisions of this Agreement shall survive the termination of your
employment for any reason to the extent necessary to enable the parties to enforce their respective rights under this Agreement. 

 Please sign and date this Agreement, and return it to me if you wish to accept employment at the Company
under the terms described above. Please be advised that this offer of employment is contingent upon successful completion of a final reference evaluation and background check to be conducted by the Company. 

 

	
	Best regards,
	
	 /s/ Christy L. Shaffer

	Christy L. Shaffer, Ph. D.
	Chair of Board of Directors, Graybug Vision, Inc.

 I, the undersigned, hereby accept and agree to the terms and conditions of my employment with the
Company as set forth in this Agreement. 
  

			
	Accepted and agreed to:
		
	By:	 	 /s/ Fred Guerard

		 	Fred Guerard
		
	Date:	 	 2/1/2019

	
	Address:
	
	  

	
	  

	
	  

 [SIGNATURE PAGE TO AGREEMENT]

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