Document:

2004 Stock-Based Incentive Plan

 EXHIBIT 10.1 
  
 GENAERA CORPORATION 
  
 2004 STOCK-BASED INCENTIVE COMPENSATION PLAN 
  

	1.	Purpose of the Plan 

  
 The purpose of the Plan is to assist the Company, its Subsidiaries and Affiliates in attracting and retaining valued Employees, Consultants and Directors
by offering them a greater stake in the Company’s success and a closer identification with it, and to encourage ownership of the Company’s stock by such Employees, Consultants and Directors. 
  

	2.	Definitions 

  
 2.1 “Affiliate” means any entity other than the Subsidiaries in which the Company has a substantial direct or indirect equity interest,
as determined by the Board. 
  
 2.2 “Award” means
an award of Deferred Stock, Restricted Stock or Options under the Plan. 
  
 2.3 “Board” means the Board of Directors of the Company. 
  
 2.4 “Cause” means the Participant’s (i) willful misconduct with respect to the business and affairs of the Company or any Subsidiary or Affiliate thereof; (ii) gross neglect of duties or failure
to act which materially and adversely affects the business or affairs of the Company or any Subsidiary or Affiliate thereof; (iii) commission of an act involving embezzlement or fraud or conviction for any felony; or (iv) the breach of an employment
or consulting agreement with the Company or any Subsidiary or Affiliate thereof. The Committee shall have the sole discretion to determine whether “Cause” as set forth in (i), (ii), (iii) or (iv) above exists, and its determination shall
be final. 
  
 2.5 “Change of Control” means
occurrence of any of the following: 
  
 (a) Any
“person” (as such term is used in sections 13(d) and 14(d) of the Exchange Act) is or becomes a “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company
representing 40% or more of the voting power of the then outstanding securities of the Company; 
  
 (b) During any period of two consecutive calendar years there is a change of 25% or more in the composition of the Board in office at the beginning of the
period except for changes approved by at least two-thirds of the Directors then in office who were Directors at the beginning of the period; 
  
 (c) The shareholders of the Company approve an agreement providing for (A) the merger or consolidation of the Company with another corporation where the
shareholders of the Company, immediately prior to the merger or consolidation, will not beneficially own, immediately after the merger or consolidation, shares entitling such shareholders to 50% or more of all votes (without consideration of the
rights of any class of stock to elect Directors by a separate class vote) to which all shareholders of the corporation issuing cash or securities in the merger or consolidation would be entitled in the election of directors, or where the members of
the Board, immediately prior to the merger or consolidation, would not, immediately after the merger or consolidation, constitute a majority of the board of directors of the corporation issuing cash or securities in the merger or consolidation, or
(B) the sale or other disposition of all or substantially all the assets of the Company, or a liquidation, dissolution or statutory exchange of the Company; or 

 (d) Any person has commenced, or announced an intention to commence, a tender offer or exchange offer for
40% or more of the voting power of the then-outstanding securities of the Company. 
  
 2.6 “Code” means the Internal Revenue Code of 1986, as amended. 
  
 2.7 “Common Stock” means the common stock of the Company, par value $.002 per share, or such other class or kind of shares or other
securities resulting from the application of Section 9. 
  
 2.8
“Company” means Genaera Corporation, a Delaware corporation, or any successor corporation. 
  
 2.9 “Committee” means the committee designated by the Board to administer the Plan under Section 4. The Committee shall have at least two
members, each of whom shall be a member of the Board, a Non-Employee Director and an Outside Director. 
  
 2.10 “Consultant” means a consultant or advisor to the Company, its Subsidiaries or Affiliates who is not an Employee. 
  
 2.11 “Deferred Stock” means an Award made under Section 6 of
the Plan to receive Common Stock at the end of a specified Deferral Period. 
  
 2.12 “Deferral Period” means the period during which the receipt of a Deferred Stock Award under Section 6 of the Plan will be deferred. 
  
 2.13 “Director” means a member of the Board. 
  
 2.14 “Disability” means disabled within the meaning of section 22(e)(3) of the Code. 
  
 2.15 “Employee” means an officer or other employee of the
Company, a Subsidiary or an Affiliate including a director who is such an employee. 
  
 2.16 “Fair Market Value” means, on any given date (i) if shares of Common Stock are then listed on a national stock exchange, the closing sales price per share of Common Stock on the exchange for the
last preceding date on which there was a sale of shares of Common Stock on such exchange, as determined by the Committee, (ii) if shares of Common Stock are then listed on the Nasdaq National Market or the Nasdaq SmallCap Market, the closing sales
price (or the closing bid price if no sales were reported) per share of Common Stock on the Nasdaq National Market or the Nasdaq SmallCap Market, as applicable, for the last preceding date on which there was a sale of shares of Common Stock on the
Nasdaq National Market or the Nasdaq SmallCap Market, as applicable, as determined by the Committee, (iii) if shares of Common Stock are not then listed on a national stock exchange, the Nasdaq National Market or the Nasdaq Small Cap Market but are
then traded on an over-the-counter market, the average of the closing bid and asked prices for the shares of Common Stock in such over-the-counter market for the last preceding date on which there was a sale of such shares of Common Stock in such
market, as determined by the Committee, or (iv) if shares of Common Stock are not then listed on a national stock exchange or traded on an over-the-counter market, or if the Committee determines that the value as determined pursuant to Section (i),
(ii) or (iii) above does not reflect fair market value, the Committee shall determine fair market value after taking into account such factors that it deems appropriate. 
  
 2.17 “Holder” means a Participant to whom an Award is made. 
  
 2.18 “Incentive Stock Option” means an Option intended to
meet the requirements of an incentive stock option as defined in section 422 of the Code and designated as an Incentive Stock Option. 
  
 2.19 “1934 Act” means the Securities Exchange Act of 1934, as amended. 
  

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 2.20 “Non-Employee Director” means a member of the Board who meets the definition of a
“non-employee director” under Rule 16b-3(b)(3) promulgated by the Securities and Exchange Commission under the 1934 Act. 
  
 2.21 “Non-Qualified Option” means an Option not intended to be an Incentive Stock Option, and designated as a Non-Qualified Option.

  
 2.22 “Option” means any stock option granted
from time to time under Section 8 of the Plan. 
  
 2.23
“Outside Director” means a member of the Board who meets the definition of an “outside director” under Treasury Regulation § 1.162-27(e)(3)(i). 
  
 2.24 “Participant” means a Consultant, Director or Employee. 
  
 2.25 “Performance Goal” means a goal that must be met by the
end of a period specified by the Committee (but that is substantially uncertain to be met before the grant of an Award) based upon: (i) the price of Common Stock, (ii) the market share of the Company, its Subsidiaries or Affiliates (or any business
unit thereof), (iii) sales by the Company, its Subsidiaries or Affiliates (or any business unit thereof), (iv) earnings per share of Common Stock, (v) return on shareholder equity of the Company, (vi) costs of the Company, its Subsidiaries or
Affiliates (or any business unit thereof), (vii) cash flow of the Company, its Subsidiaries or Affiliates (or any business unit thereof), (viii) return on total assets of the Company, its Subsidiaries or Affiliates (or any business unit thereof),
(ix) return on invested capital of the Company, its Subsidiaries or Affiliates (or any business unit thereof), (x) return on net assets of the Company, its Subsidiaries or Affiliates (or any business unit thereof), (xi) operating income of the
Company, its Subsidiaries or Affiliates (or any business unit thereof), (xii) net income of the Company, its Subsidiaries or Affiliates (or any business unit thereof), (xiii) the achievement of certain developmental or commercial milestones achieved
by the Company or its products or (xiv) any other goal the Committee deems appropriate. 
  
 2.26 “Person” means any individual, partnership, corporation, company, limited liability company, association, trust, joint venture, unincorporated organization, entity or division, or any government,
governmental department or agency or political subdivision thereof. 
  
 2.27 “Plan” means the Genaera Corporation 2004 Stock-Based Incentive Compensation Plan herein set forth, as amended from time to time. 
  

2.28 “Restricted Stock” means Common Stock awarded by the Committee under Section 7 of the Plan. 
  
 2.29 “Restriction Period” means the period during which
Restricted Stock awarded under Section 7 of the Plan is subject to forfeiture. 
  
 2.30 “Retirement” means retirement from the active employment of the Company, a Subsidiary or an Affiliate pursuant to the relevant provisions of the applicable pension plan of such entity or as
otherwise determined by the Board. 
  
 2.31
“Subsidiary” means any corporation (other than the Company) in an unbroken chain of corporations beginning with the Company (or any subsequent parent of the Company) if each of the corporations other than the last corporation in the
unbroken chain owns stock possession 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. 
  
 2.32 “Ten Percent Shareholder” means a Person who on any given date owns, either directly or indirectly (taking into account the
attribution rules contained in section 424(d) of the Code), stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or a Subsidiary. 
  

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	3.	Eligibility 

  
 Any Participant is eligible to receive an Award. 
  

	4.	Administration and Implementation of Plan 

  
 4.1 The Plan shall be administered by the Committee, which shall have full power to interpret and administer the Plan and full authority to act in
selecting the Participants to whom Awards will be granted, in determining the type and amount of Awards to be granted to each such Participant, the terms and conditions of Awards granted under the Plan and the terms of grant instruments which will
be entered into with Holders. Notwithstanding the foregoing, the Board may designate one or more of its members or officers of the Company to serve as a secondary committee and delegate to the secondary committee authority to grant Awards to
eligible individuals who are not subject to the requirements of Rule 16b-3 under the 1934 Act or section 162(m) of the Code. The secondary committee shall have the same authority with respect to selecting the individuals to whom such Awards are
granted and establishing the terms and conditions of such Awards as the Committee has under the terms of the Plan. 
  
 4.2 The Committee’s powers shall include, but not be limited to, the power to determine whether, to what extent and under what circumstances an
Option may be exchanged for cash, Restricted Stock, Deferred Stock or some combination thereof; to determine whether, to what extent and under what circumstances an Award is made and operates on a tandem basis with other Awards made hereunder; to
determine whether, to what extent and under what circumstances Common Stock or cash payable with respect to an Award shall be deferred, either automatically or at the election of the Holder (including the power to add deemed earnings to any such
deferral); to grant Awards (other than Incentive Stock Options) that are transferable by the Holder; and to determine the effect, if any, of a change in control of the Company upon outstanding Awards. 
  
 4.3 The Committee shall have the power to adopt regulations for carrying out
the Plan and to make changes in such regulations as it shall, from time to time, deem advisable. The Committee shall have the power unilaterally and without approval of a Holder to amend an existing Award in order to carry out the purposes of the
Plan so long as such an amendment does not take away any benefit granted to a Holder by the Award and as long as the amended Award comports with the terms of the Plan. Any interpretation by the Committee of the terms and provisions of the Plan and
the administration thereof, and all action taken by the Committee, shall be final and binding on Holders. 
  
 4.4 The Committee may condition the grant of any Award or the lapse of any Deferral or Restriction Period (or any combination thereof) upon the
Holder’s achievement of a Performance Goal that is established by the Committee before the grant of the Award. The Committee shall have discretion to determine the specific targets with respect to each Performance Goal. Before granting an Award
or permitting the lapse of any Deferral or Restriction Period subject to this Section, the Committee shall certify that an individual has satisfied the applicable Performance Goal. 
  

	5.	Shares of Stock Subject to the Plan 

  
 5.1 Subject to adjustment as provided in Section 9, the total number of shares of Common Stock available for Awards under the Plan shall be 4,500,000
shares. 
  
 5.2 The maximum number of shares of Common Stock
subject to Awards that may be granted to any Participant shall not exceed 500,000 during any calendar year (the “Individual Limit”). 
  

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 Subject to Section 5.3, Section 9 and Section 12.7, any Award that is canceled or repriced by the Committee shall count
against the Individual Limit. Notwithstanding the foregoing, the Individual Limit may be adjusted to reflect the effect on Awards of any transaction or event described in Section 9. 
  
 5.3 Any shares issued by the Company through the assumption or substitution of outstanding grants from an acquired company
shall not (i) reduce the shares available for Awards under the Plan, or (ii) be counted against the Individual Limit. Any shares issued hereunder may consist, in whole or in part, of authorized and unissued shares or treasury shares. If any shares
subject to any Award granted hereunder are forfeited or such Award otherwise terminates without the issuance of such shares or the payment of other consideration in lieu of such shares, the shares subject to such Award, to the extent of any such
forfeiture or termination, shall again be available for Awards under the Plan. 
  

	6.	Deferred Stock 

  
 An Award of Deferred Stock is an agreement by the Company to deliver to the recipient a specified number of shares of Common Stock at the end of a
specified deferral period or periods. Such an Award shall be subject to the following terms and conditions: 
  
 6.1 Deferred Stock Awards shall be evidenced by Deferred Stock grant instruments. Such grant instruments shall conform to the requirements of the Plan and
may contain such other provisions as the Committee shall deem advisable. 
  
 6.2 Upon determination of the number of shares of Deferred Stock to be awarded to a Holder, the Committee shall direct that the same be credited to the Holder’s account on the books of the Company but that
issuance and delivery of the same shall be deferred until the date or dates provided in Section 6.5 hereof. Prior to issuance and delivery hereunder the Holder shall have no rights as a stockholder with respect to any shares of Deferred Stock
credited to the Holder’s account. 
  
 6.3 Subject to the
provisions of Section 6.4 concerning Deferred Stock Awards that are subject to the achievement of Performance Goals, amounts equal to any dividends declared during the Deferral Period with respect to the number of shares covered by a Deferred Stock
Award will be paid to the Holder currently, or deferred and deemed to be reinvested in additional Deferred Stock, or otherwise reinvested on such terms as are determined at the time of the Award by the Committee, in its sole discretion, and
specified in the Deferred Stock grant instrument. 
  
 6.4 The
Committee may condition the grant of an Award of Deferred Stock or the expiration of the Deferral Period upon the Holder’s achievement of one or more Performance Goal(s) specified in the Deferred Stock grant instrument. Unless otherwise
specified in a Deferred Stock grant instrument, if the Holder fails to achieve the specified Performance Goal(s), the Committee shall not grant the Deferred Stock Award to the Holder, or the Holder shall forfeit the Award and no Common Stock shall
be transferred to him pursuant to the Deferred Stock Award. Dividends paid during the Deferral Period on Deferred Stock subject to a Performance Goal shall be reinvested in additional Deferred Stock and the expiration of the Deferral Period for such
Deferred Stock shall be subject to the Performance Goal(s) previously established by the Committee. 
  
 6.5 The Deferred Stock grant instrument shall specify the duration of the Deferral Period, taking into account termination of employment or service on
account of death, Disability, Retirement or other cause. The Deferral Period may consist of one or more installments. At the end of the Deferral Period or any installment thereof the shares of Deferred Stock applicable to such installment credited
to the account of a Holder shall be issued and delivered to the Holder (or, where appropriate, the Holder’s legal representative) in accordance with the terms of the Deferred Stock grant instrument. The Committee may, in its sole discretion,
accelerate the delivery of all or any part of a Deferred Stock Award or waive the deferral limitations for all or any part of a Deferred Stock Award. 
  

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	7.	Restricted Stock 

  
 An Award of Restricted Stock is a grant by the Company of a specified number of shares of Common Stock to the Participant, which shares are subject to
forfeiture upon the happening of specified events. Such an Award shall be subject to the following terms and conditions: 
  
 7.1 Restricted Stock shall be evidenced by Restricted Stock grant instruments. Such grant instruments shall conform to the requirements of the Plan and
may contain such other provisions as the Committee shall deem advisable. 
  
 7.2 Upon determination of the number of shares of Restricted Stock to be granted to the Holder, the Committee shall direct that a certificate or certificates representing the number of shares of Common Stock be issued
to the Holder with the Holder designated as the registered owner. The certificate(s) representing such shares shall be legended as to sale, transfer, assignment, pledge or other encumbrances during the Restriction Period and deposited by the Holder,
together with a stock power endorsed in blank, with the Company, to be held in escrow during the Restriction Period. 
  
 7.3 During the Restriction Period the Holder shall have the right to vote the shares of Restricted Stock. Subject to the provisions of Section 7.4
concerning Restricted Stock Awards that are subject to the achievement of Performance Goals, amounts equal to any dividends declared during the Restriction Period with respect to the number of shares covered by a Restricted Stock Award will be paid
to the Holder currently, or deferred and deemed to be reinvested in additional Restricted Stock, or otherwise reinvested on such terms as are determined at the time of the Award by the Committee, in its sole discretion, and specified in the
Restricted Stock grant instrument. 
  
 7.4 The Committee may
condition the grant of an Award of Restricted Stock or the expiration of the Restriction Period upon the Holder’s achievement of one or more Performance Goal(s) specified in the Restricted Stock grant instrument. Unless otherwise specified in a
Restricted Stock grant instrument, if the Holder fails to achieve the specified Performance Goal(s), the Committee shall not grant the Restricted Stock to the Holder, or the Holder shall forfeit the Award of Restricted Stock and the Common Stock
shall be forfeited to the Company. Dividends paid during the Restriction Period on Restricted Stock subject to a Performance Goal shall be reinvested in additional Restricted Stock and the expiration of the Restriction Period for such Restricted
Stock shall be subject to the Performance Goal(s) previously established by the Committee. 
  
 7.5 The Restricted Stock grant instrument shall specify the duration of the Restriction Period and the performance, employment or other conditions (including termination of employment or service on account of death,
Disability, Retirement or other cause) under which the Restricted Stock may be forfeited to the Company. At the end of the Restriction Period the restrictions imposed hereunder shall lapse with respect to the number of shares of Restricted Stock as
determined by the Committee, and the legend shall be removed and such number of shares delivered to the Holder (or, where appropriate, the Holder’s legal representative). The Committee may, in its sole discretion, modify or accelerate the
vesting and delivery of shares of Restricted Stock. 
  

	8.	Options 

  
 Options give a Participant the right to purchase a specified number of shares of Common Stock from the Company for a specified time period at a fixed
price. Options may be either Incentive Stock Options or Non-Qualified Stock Options. The grant of Options shall be subject to the following terms and conditions: 
  
 8.1 Option Grants: Options shall be evidenced by Option grant instruments. Such grant instruments shall conform to
the requirements of the Plan, and may contain such other provisions as the Committee shall deem advisable. 
  

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 8.2 Specific Option Grants to Directors: Each Director who is not an employee of the Company shall
receive an Option to purchase 20,000 shares of Common Stock upon his or her initial election to the Board, and the shares of Common Stock underlying such Options shall vest one-quarter (1/4) per year that such Director remains a Director for four
years beginning on the first anniversary of the grant. Beginning at the 2004 annual meeting of the stockholders of the Company and at each annual meeting of the stockholders of the Company held thereafter while the Plan is in effect, each Director
continuing as such after such meeting who is not an employee of the Company shall receive an Option to purchase 20,000 shares of Common Stock, and the shares of Common Stock underlying such Options shall vest one-quarter (1/4) per year that such
Director remains a Director for four years beginning on the first anniversary of the grant; provided, however, that in the event a Director resigns from the Board other than for Cause prior to such four-year anniversary, the vesting of such Option
shall accelerate so that such Option becomes immediately exercisable with respect to one-forty-eighth (1/48) of the shares of Common Stock underlying such Option for each full month that has elapsed between the date of the grant of such Option and
the date of such resignation. Notwithstanding anything to the contrary in the Plan, the price per share at which Common Stock may be purchased upon the exercise of an Option granted pursuant to this Section 8.2 shall be not less than the Fair Market
Value of a share of Common Stock on the date of grant. 
  
 8.3
Option Price: The price per share at which Common Stock may be purchased upon exercise of an Option shall be determined by the Committee, but, in the case of grants of Incentive Stock Options, shall be not less than the Fair Market Value of a
share of Common Stock on the date of grant. In the case of any Incentive Stock Option granted to a Ten Percent Shareholder, the option price per share shall not be less than 110% of the Fair Market Value of a share of Common Stock on the date of
grant. The option price per share for Non-Qualified Options may not be less than the Fair Market Value of a share of Common Stock on the date of grant. 
  
 8.4 Term of Options: The Option grant instruments shall specify when an Option may be exercisable and the terms and conditions applicable thereto.
The term of an Option shall in no event be greater than ten years (five years in the case of an Incentive Stock Option granted to a Ten Percent Shareholder and ten years in the case of all other Incentive Stock Options). The Committee may, in its
sole discretion, accelerate the time at which an Option vests. The Committee may, in its sole discretion, extend the period of exercise for Options that have vested. 
  
 8.5 Incentive Stock Options: Each provision of the Plan and each Option grant instrument relating to an Incentive
Stock Option shall be construed so that each Incentive Stock Option shall be an incentive stock option as defined in section 422 of the Code, and any provisions of the Option grant instrument thereof that cannot be so construed shall be disregarded.
In no event may a Holder be granted an Incentive Stock Option which does not comply with such grant and vesting limitations as may be prescribed by section 422(b) of the Code. Incentive Stock Options may only be granted to Employees; provided,
however, that they may not be granted to employees of Affiliates. Without limiting the foregoing, the aggregate Fair Market Value (determined as of the time the Option is granted) of the Common Stock with respect to which an Incentive Stock Option
may first become exercisable by a Participant in any one calendar year under the Plan shall not exceed $100,000. 
  
 8.6 Restrictions on Transferability of Incentive Stock Options: No Incentive Stock Option shall be transferable otherwise than by will or the laws
of descent and distribution and, during the lifetime of the Holder, shall be exercisable only by the Holder. Upon the death of a Holder, the Person to whom the rights have passed by will or by the laws of descent and distribution may exercise an
Incentive Stock Option only in accordance with this Section 8. 
  
 8.7 Payment of Option Price: The option price of the shares of Common Stock upon the exercise of an Option shall be paid: (i) in full in cash at the time of the exercise, (ii) with the consent of the Committee, in whole or in part in
Common Stock held by the Holder for at least six months valued at 
  

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 Fair Market Value on the date of exercise, or (iii) by such other method as the Committee may approve, including payment
through a broker in accordance with procedures permitted by Regulation T of the Federal Reserve Board. With the consent of the Committee, payment upon the exercise of a Non-Qualified Option may be made in whole or in part by Restricted Stock which
has been held by the Holder for at least six months (based on the fair market value of the Restricted Stock on the date the Option is exercised, as determined by the Committee). In such case the Common Stock to which the Option relates shall be
subject to the same forfeiture restrictions originally imposed on the Restricted Stock exchanged therefor. 
  
 8.8 Termination by Death: Unless otherwise provided in an Option grant instrument, if a Holder’s employment or service by the Company, a
Subsidiary or Affiliate terminates by reason of death, any Option granted to such Holder may thereafter be exercised (to the extent such Option was exercisable at the time of death) by, where appropriate, the Holder’s transferee or by the
Holder’s legal representative, for a period of 12 months from the date of death or until the expiration of the stated term of the Option, whichever period is shorter. 
  
 8.9 Termination by Reason of Disability: Unless otherwise provided in an Option grant instrument, if a Holder’s
employment or service by the Company, a Subsidiary or Affiliate terminates by reason of Disability, any unexercised Option granted to the Holder may thereafter be exercised by the Holder (or, where appropriate, the Holder’s transferee or legal
representative), to the extent it was exercisable at the time of termination, for a period of 12 months from the date of such termination of employment or service or until the expiration of the stated term of the Option, whichever period is shorter.

  
 8.10 Termination by Reason of Retirement: Unless
otherwise provided in an Option grant instrument, if a Holder’s employment by or service with the Company, a Subsidiary or Affiliate terminates by reason of Retirement, any unexercised Option granted to the Holder may thereafter be exercised by
the Holder (or, where appropriate, the Holder’s transferee or legal representative), to the extent it was exercisable at the time of termination, for a period of 90 days from the date of such termination of employment or service or until the
expiration of the stated term of the Option, whichever period is shorter. 
  
 8.11 Termination Not for Cause: Unless otherwise provided in an Option grant instrument, if a Holder’s employment by or service with the Company, a Subsidiary or Affiliate is terminated by the Company, the
Subsidiary or Affiliate not for Cause, any unexercised Option granted to the Holder may thereafter be exercised by the Holder (or, where appropriate, the Holder’s transferee or legal representative), to the extent it was exercisable at the time
of termination, for a period of 90 days from the date of such termination of employment or service or until the expiration of the stated term of the Option, whichever period is shorter. 
  
 8.12 Termination for Cause: Unless otherwise provided in an Option grant instrument, if a Holder’s employment or
service with the Company, a Subsidiary or Affiliate is terminated by the Company, the Subsidiary or Affiliate for Cause, all unexercised Options awarded to the Holder shall terminate on the date of such termination. 
  
 8.13 Termination for Other Reason: Unless otherwise provided in an
Option grant instrument, if a Holder’s employment or service with the Company, a Subsidiary or Affiliate terminates for any reason not specified in this Section 8 (including voluntary termination), any unexercised Option granted to the Holder
may thereafter be exercised by the Holder (or, where appropriate, the Holder’s transferee or legal representative), to the extent it was exercisable at the time of termination, for a period of 90 days from the date of such termination of
employment or service or until the expiration of the stated term of the Option, whichever period is shorter. 
  

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 8.14 Continuation of Service: Notwithstanding anything to the contrary in this Section 8, a
Holder’s cessation of service as an Employee, Director or Consultant other than for Cause shall not be treated as a termination under this Section 8 if the Holder continues without interruption to serve thereafter in a material manner in one
(or more) of such other capacities, as determined by the Committee in its sole discretion. 
  

	9.	Changes in Capitalization; Change of Control 

  
 9.1 In the event of a reorganization, recapitalization, stock split, spin-off, split-off, split-up, stock dividend, issuance of stock rights, combination
of shares, merger, consolidation or any other change in the corporate structure of the Company affecting Common Stock, or any distribution to stockholders of the Company other than a cash dividend, the Board shall make appropriate adjustment in the
number and kind of shares authorized by the Plan and any other adjustments to outstanding Awards as it determines appropriate. No fractional shares of Common Stock shall be issued pursuant to such an adjustment. The Fair Market Value of any
fractional shares resulting from adjustments pursuant to this Section shall, where appropriate, be paid in cash to the Holder. 
  
 9.2 Upon a Change of Control and unless the Committee determines otherwise, the Committee shall fully vest all Awards made under the Plan. In addition,
upon a Change of Control, the Committee may, at its discretion (i) cancel any outstanding Awards in exchange for a cash payment of an amount equal to the difference between the then Fair Market Value of the Award less the option or base price of the
Award, (ii) after having given the Award Holder a chance to exercise any outstanding Options, terminate any or all of the Award Holder’s unexercised Options, or (iii) where the Company is not the surviving corporation, cause the surviving
corporation to assume or replace all outstanding Awards with comparable awards. 
  
 9.3 The judgment of the Committee with respect to any matter referred to in this Section 9 shall be conclusive and binding upon each Holder without the need for any amendment to the Plan. 
  

	10.	Effective Date, Termination and Amendment 

  
 The Plan shall become effective on March 22, 2004, subject to shareholder approval. Options granted under the Plan prior to such shareholder approval
shall expressly not be exercisable prior to such approval. The Plan shall remain in full force and effect until the earlier of ten years from the date of its adoption by the Board, or the date it is terminated by the Board. The Board shall have the
power to amend, suspend or terminate the Plan at any time, provided that no such amendment shall be made without shareholder approval which shall (i) increase (except as provided in Section 9) the total number of shares available for issuance
pursuant to the Plan; (ii) change the class of Participants eligible to be Holders; (iii) modify the Individual Limit (except as provided Section 9) or the categories of Performance Goals set forth in Section 4.4; or (iv) change the provisions of
this Section 10. Termination of the Plan pursuant to this Section 10 shall not affect Awards outstanding under the Plan at the time of termination. 
  

	11.	Transferability 

  
 Except as provided in Section 8.6 and this Section 11, Awards may not be pledged, assigned or transferred for any reason during the Holder’s
lifetime, and any attempt to do so shall be void and the relevant Award shall be forfeited. The Committee may grant Awards (except Incentive Stock Options) that are transferable by the Holder during his lifetime, but such Awards shall be
transferable only to the extent specifically provided in the grant instrument entered into with the Holder. The transferee of the Holder shall, in all cases, be subject to the provisions of the grant instrument between the Company and the Holder.

  

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	12.	General Provisions 

  
 12.1 Nothing contained in the Plan, or any Award granted pursuant to the Plan, shall confer upon any Employee or Consultant any right with respect to
continuance of employment or service by the Company, a Subsidiary or Affiliate, nor interfere in any way with the right of the Company, a Subsidiary or Affiliate to terminate the employment or service of any Employee or Consultant at any time.

  
 12.2 Nothing contained in the Plan, and no action taken
pursuant to the provisions of the Plan, shall create or shall be construed to create a trust of any kind, or a fiduciary relationship between the Company or its Subsidiaries, or their officers or the Committee, on the one hand, and any Participant,
the Company, its Subsidiaries or any other Person or entity, on the other. 
  
 12.3 For purposes of this Plan, neither (i) transfer of employment between the Company and its Subsidiaries and Affiliates nor (ii) transfer of status from Employee to Consultant shall be deemed termination of
employment. 
  
 12.4 Holders shall be responsible to make
appropriate provision for all taxes required to be withheld in connection with any Award, the exercise thereof and the transfer of shares of Common Stock pursuant to this Plan. Such responsibility shall extend to all applicable Federal, state, local
or foreign withholding taxes. In the case of the payment of Awards in the form of Common Stock, or the exercise of Options, the Company shall have the right to retain the number of shares of Common Stock whose Fair Market Value equals the amount to
be withheld in satisfaction of the applicable withholding taxes. Grant instruments evidencing such Awards shall contain appropriate provisions to effect withholding in this manner. 
  
 12.5 Without amending the Plan, Awards may be granted to Participants who are foreign nationals or employed outside the
United States or both, on such terms and conditions different from those specified in the Plan as may, in the judgment of the Committee, be necessary or desirable to further the purpose of the Plan. 
  
 12.6 To the extent that Federal laws (such as the 1934 Act, the Code or the
Employee Retirement Income Security Act of 1974) do not otherwise control, the Plan and all determinations made and actions taken pursuant hereto shall be governed by the law of the State of Delaware and construed accordingly. 
  
 12.7 The Committee may amend any outstanding Awards to the extent it deems
appropriate; provided, however, except as provided in Section 9, no Award may be repriced, replaced, regranted through cancellation, or modified without shareholder approval if the effect would be to reduce the exercise price for the shares
underlying the Award. The Committee may amend Awards without the consent of the Holder, except in the case of amendments adverse to the Holder, in which case the Holder’s consent is required to any such amendment. 
  
 12.8 All shares of Common Stock purchased upon the exercise of an Option or
issued pursuant to an Award of Deferred Stock or Restricted Stock shall be subject to restrictions on transfer pursuant to applicable securities laws and such other agreements as the Committee shall deem appropriate and shall bear a legend
subjecting such shares to those restrictions on transfer in accordance with the applicable Award. The certificates shall also bear a legend referring to any restrictions on transfer arising hereunder or under any other applicable law, regulation,
rule or agreement. 
  
 12.9 The Plan and each Award under the Plan
shall be subject to the requirement that if at any time the Committee shall determine that (i) the listing, registration or qualification of the shares of Common Stock purchased upon the exercise of an Option or issued pursuant to an Award of
Deferred Stock or Restricted Stock upon any securities exchange or under any state or federal law, (ii) the consent or approval of any government regulatory body or (iii) an agreement by the recipient of an Award with respect to the disposition of
such shares is necessary or desirable as a condition of, or in connection with, the Plan or the granting of such Award or the issue or purchase of such shares thereunder, the Award may not be consummated in whole or in part until such listing,
registration, qualification, consent, approval or agreement shall have been effected or obtained free of any conditions not acceptable to the Committee. 
  
 Adopted by the Board of Directors on March 22, 2004 
  
 Approved by Stockholders on May 11, 2004 
  

 10Employment Agreement with Roy C. Levitt, M.D

 EXHIBIT 10.2 
  
 EMPLOYMENT AGREEMENT 
  

This EMPLOYMENT AGREEMENT (“Agreement”) is entered into as of this 11th day of May, 2004 by and among Genaera Corporation, a Delaware
corporation (the “Company”), and Roy C. Levitt (the “Executive”). 
  
 WHEREAS, the Company desires that Executive continue to be employed by the Company; and 
  
 WHEREAS, the Executive has agreed to continue to be employed by the Company; and 
  
 WHEREAS, in consideration for the Executive entering into this Agreement, the Compensation Committee of the Board, by
written consent dated May 10, 2004, awarded to the Executive 150,000 restricted shares of the Company’s Common Stock on the terms set forth in the consent and in the award agreement; and 
  
 WHEREAS, the parties hereto wish to enter into the arrangements set forth
herein with respect to the terms and conditions of the Executive’s employment with the Company. 
  
 NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein and other good and valuable consideration, the receipt and
sufficiency of which hereby are acknowledged, the parties hereto agree as follows: 
  
 1. Employment Agreement. On the terms and conditions set forth in this Agreement, the Company agrees to employ the Executive and the Executive agrees to be employed by the Company in the position and with the
duties set forth in Section 3 hereof. Terms used herein with initial capitalization and not otherwise defined herein are defined in Section 20 below. 

 2. Term. Unless earlier terminated pursuant to Section 7, the term of the Executive’s
employment hereunder shall commence as of January 1, 2004 (the “Effective Date”) and shall conclude one year after the Effective Date (the “Renewal Date”) (the “Employment Period”); provided, however, that the
Employment Period shall be automatically extended for an additional one-year term on the Renewal Date and on each anniversary of the Renewal Date, unless either party gives at least sixty (60) days’ advance written notice to the other party (a
“Notice of Non-Renewal”) that it no longer wishes such automatic extensions to continue. 
  
 3. Position and Duties. The Executive shall serve as the President and Chief Executive Officer of the Company during the Employment Period. As the
President and Chief Executive Officer of the Company, subject to the terms and conditions of this Agreement, the Executive shall render executive, policy and other management services to the Company as reasonably determined by the Board. The
Executive shall devote the Executive’s best efforts and substantially full business time to the performance of the Executive’s duties hereunder and the advancement of the business and affairs of the Company during the Employment Period
(provided that the Executive may devote time to managing his personal investments and to charitable and community activities, and, with the consent of the Board, take up other offices and positions during the Employment Period). The Executive shall
report directly to the Board. 
  
 4. Place of Performance.
During the Employment Period, the Executive’s principal place of employment and work location shall be Plymouth Meeting, Pennsylvania except for reasonable travel on Company business. 
  

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 5. Compensation. 
  
 (a) Base Salary. During the Employment Period, the Company shall pay to the Executive an annual base salary (the
“Base Salary”) of Four Hundred Twenty-Five Thousand Dollars ($425,000). Beginning in January, 2005, the Base Salary shall be reviewed by the Board no less frequently than annually, and may be increased (but not decreased) at the discretion
of the Board. If the Executive’s Base Salary is increased, the increased amount shall be the Base Salary for the remainder of the Employment Period (until the date of any subsequent increase). The Base Salary shall be payable bi-weekly or in
such other installments as shall be consistent with the Company’s payroll procedures in effect from time to time. 
  
 (b) Bonus. In addition to the bonuses set forth in this subsection (b), during the Employment Period, the Executive shall be eligible to earn an
annual performance bonus in an amount determined at the discretion of the Board for each fiscal year. The Company shall pay to the Executive on March 31, 2004, a bonus of Two Hundred Thousand Dollars ($200,000) in recognition for his performance
during 2002 to 2003. If the Company enters into an agreement for the commercialization and development of squalamine for the treatment of age-related macular degeneration with a third party pharmaceutical company in 2004, then promptly following the
execution of such agreement by the parties, the Company shall pay to the Executive an additional bonus in 2004 of Fifty Thousand Dollars ($50,000). The Company shall pay to the Executive on January 15, 2005, a bonus of One Hundred Thousand Dollars
($100,000) (the “Minimum Bonus”). The Executive shall also be eligible to receive an additional bonus up to One Hundred Fifty Thousand Dollars ($150,000) (the “Target Bonus”) determined at the discretion of the Board. 

 
 (c) Benefits. During the Employment Period, the Executive will be
entitled to all employee benefits and perquisites (including health, welfare, life insurance, stock option, 
  

 - 3 - 

 equity and incentive plans and other arrangements) made available to similarly situated executives of the Company.
Nothing contained in this Agreement shall prevent the Company from terminating plans, changing carriers or from effecting modifications in employee benefits coverage for the Executive as long as such modifications are Company-wide modifications that
affect all similarly situated employees of the Company. 
  
 (d)
Vacation. During the Employment Period, the Executive shall be entitled to six (6) weeks vacation during each calendar year, which shall be taken at a reasonable time or times. 
  
 (e) Withholding Taxes and Other Deductions. To the extent required by law, the Company shall withhold from any
payments due to the Executive under this Agreement any applicable federal, state or local taxes and such other deductions as are prescribed by law. 
  
 6. Expenses. The Executive is expected and is authorized, subject to the business expense policies as determined by the Board, to incur reasonable
expenses in the performance of his duties hereunder, including the costs of entertainment, travel, and similar business expenses. The Company shall promptly reimburse the Executive for all such expenses upon periodic presentation by the Executive of
an accounting of such expenses on terms applicable to senior executives of the Company. 
  
 7. Termination of Employment. Any termination of the Executive’s employment under this Agreement by the Company or the Executive shall be communicated by written Notice of Termination to the other party
hereto in accordance with Section 10 hereof. For purposes of this Agreement, a “Notice of Termination” shall mean a notice which shall indicate the specific termination provision in this Agreement relied upon, if any, and shall set forth
in reasonable detail the facts and circumstances claimed to provide a basis for termination of the 
  

 - 4 - 

 Employment Period under the provision so indicated. Termination of the Employment Period shall take effect on the Date of
Termination. The Executive’s employment under this Agreement can be terminated under the following circumstances: 
  
 (a) Death. The Employment Period shall terminate upon the Executive’s death; 
  
 (b) Disability; Cause. The Company may terminate the Employment Period (i) if the Executive shall have been unable to
perform all of the Executive’s duties hereunder by reason of illness, physical or mental disability or other similar incapacity, which inability shall continue for more than three consecutive months, or any six months in a twelve-month period
(a “Disability”); or (ii) with or without Cause upon 30 days notice under Section 10; 
  
 (c) Voluntary Termination by the Executive; Good Reason. The Executive may voluntarily terminate his employment hereunder at any time with or
without Good Reason; provided, however, that the Executive must give 30 days prior notice to terminate the Employment Period for Good Reason and 90 days prior notice to terminate the Employment Period without Good Reason; or 
  
 (d) Non-Renewal. The Employment Period may terminate pursuant to the
terms of Section 2. 
  
 8. Compensation upon Termination.

  
 (a) Death. If the Employment Period terminates as a
result of the Executive’s death, the Company shall promptly pay to the Executive’s estate, or as may be directed by the legal representatives of such estate, after the Date of Termination any accrued but unpaid Base Salary through the Date
of Termination, the Minimum Bonus, as pro rated for the Employment Period (the “Pro rated Bonus”), all accrued vacation days (other than the vacation days covered 
  

 - 5 - 

 by the Lump Sum Vacation Payment, as defined below), all other unpaid amounts, if any, which the Executive has accrued as
of the Date of Termination in connection with any fringe benefits or under any bonus or incentive compensation plan or program of the Company pursuant to Sections 5(b) and (c) hereof, and an amount equal to 0.25 times the Executive’s then
applicable Base Salary to cover the three months vacation accrued and unpaid as of December 31, 2003 (the “Lump Sum Vacation Payment”), and the Company shall have no further obligations to the Executive under this Agreement or otherwise
(other than pursuant to any employee benefit plan and any life insurance, death in service or other equivalent policy for the benefit of the Executive). In addition, the Executive’s estate or personal representative shall have a period of one
year following the Executive’s death during which it can exercise the Executive’s vested options. 
  
 (b) Disability. If the Company terminates the Employment Period because of the Executive’s Disability, the Company shall promptly pay to the
Executive after the Date of Termination any accrued but unpaid Base Salary through the Date of Termination, the Pro Rated Bonus, the Lump Sum Vacation Payment, all accrued vacation days and all other unpaid amounts, if any, which the Executive has
accrued as of the Date of Termination in connection with any fringe benefits or under any bonus or incentive compensation plan or program of the Company pursuant to Sections 5(b) and (c) hereof, and the Company shall have no further obligations to
the Executive under this Agreement or otherwise (other than pursuant to any employee benefit plan and any disability or other medical or life insurance policy for the benefit of the Executive (and with respect to life insurance, to the extent the
Executive is covered by a Company provided life insurance policy at the time of his death)). In addition, the Executive or his personal representative shall have a period of one year following the Executive’s disability during which it can
exercise the Executive’s vested options. 
  

 - 6 - 

 (c) By the Company for Cause; By the Executive without Good Reason. If the Company terminates the
Employment Period for Cause or if the Executive voluntarily terminates the Employment Period without Good Reason (including pursuant to the Executive’s delivery of a Notice of Non-Renewal), the Company shall promptly pay to the Executive after
the Date of Termination any accrued but unpaid Base Salary through the Date of Termination, the Lump Sum Vacation Payment, all accrued vacation days, and all other unpaid amounts, if any, which the Executive has accrued and is entitled to as of the
Date of Termination in connection with any fringe benefits or under any bonus or incentive compensation plan or program of the Company pursuant to Sections 5(b) and (c) hereof, and other than pursuant to employee benefit plans, the Company shall
have no further obligations to the Executive under this Agreement; provided that if the Executive terminates without Good Reason, the Company shall also assign or otherwise transfer to the Executive, to the extent permitted under the applicable
insurance policies and at no additional cost to the Company, any disability or other medical or life insurance policy for the benefit of the Executive (and with respect to life insurance, to the extent the Executive is covered by a Company provided
life insurance policy at the time of his death)). 
  
 (d) By
the Company Without Cause; By the Executive for Good Reason. If the Company terminates the Employment Period (including pursuant to the Company’s delivery of a Notice of Non-Renewal) other than for Cause, Disability or death or if the
Executive terminates the Employment Period for Good Reason, (i) the Company shall promptly pay to the Executive after the Date of Termination a cash lump sum equal to the Base Salary plus the 
  

 - 7 - 

 Target Bonus in effect for the year in which the notice of Termination is given, the Minimum Bonus, plus any earned but
unpaid bonus for any prior year and the Lump Sum Vacation Payment; (ii) the Company shall continue to provide welfare benefits pursuant to Section 5(c) to the Executive for the Continuation Period (or, to the extent such benefits cannot be so
provided, the Company shall make a cash payment to the Executive in an amount sufficient (on an after-tax basis) to allow the Executive to obtain comparable benefits for such period), unless and until the Executive receives any such or similar
benefits while employed in any capacity by any other employer during the Continuation Period; (iii) all unvested options to purchase Company stock and shares of restricted Company stock then held by the Executive shall become fully vested,
exercisable and free from restriction and the Executive shall be entitled to exercise all such vested options only during the Continuation Period and the ninety-day period commencing at the end of the Continuation Period, after which time all
options to purchase Company stock held by the Executive will immediately expire; and (iv) all unvested shares of restricted Company stock then held by the Executive shall become fully vested and free from restriction. Other than as set forth herein,
the Company shall have no further obligations to the Executive under this Agreement or otherwise (except pursuant to employee benefit plans and as otherwise set forth in this Agreement). 
  
 (e) Liquidated Damages. The parties acknowledge and agree that damages suffered by the Executive as a result of
termination by the Company without Cause shall be extremely difficult or impossible to establish or prove, and agree that the payments and benefits provided pursuant to Section 8(d) shall constitute liquidated damages for any breach of this
Agreement by the Company through the Date of Termination. The Executive agrees that, except for such other payments and benefits to which the Executive may be entitled as expressly 
  

 - 8 - 

 provided by the terms of this Agreement or any applicable Company plan, such liquidated damages shall be in lieu of all
other claims that the Executive may make with respect to termination of his employment, the Employment Period or any such breach of this Agreement. In no event shall the Executive be obligated to seek other employment or take any other action by way
of mitigation of the amounts payable to the Executive under any of the provisions of this Agreement, and, except as specifically provided in clause (ii) of Section 8(d), such amounts shall not be reduced whether or not the Executive obtains other
employment. 
  
 (f) Consulting. If the Company terminates
the Employment Period (including pursuant to the Company’s delivery of a Notice of Non-Renewal) other than for Cause, Disability or death or if the Executive terminates the Employment Period for Good Reason or pursuant to the Executive’s
delivery of a Notice of Non-Renewal, then during the one year period following the Date of Termination (the “Consulting Period”), the Company shall engage the Executive to provide consulting services (the “Consulting Services”)
to the Company. The Consulting Services shall be provided at such times and at such place as the Company and the Executive shall reasonably agree and shall not require the Executive to spend more than 20 days during the Consulting Period nor more
than one day each week during the Consulting Period nor more than eight hours per day during the Consulting Period. During the Consulting Period, the Executive shall not be an employee of the Company but shall be an independent contractor. In
consideration for the provision of the Consulting Services and for the non-competition agreement under Section 9, the Company shall pay to the Executive an annual consulting fee of One Hundred Twenty Thousand Dollars ($120,000) payable bi-weekly.
The Consulting Period may be extended upon agreement of the Executive and the Company. In the event that the Executive’s employment is terminated by reason of Disability, the Company and the Executive 
  

 - 9 - 

 will mutually consider in good faith to have the Executive provide the Consulting Services. In addition, the Executive
shall have the right to (i) during the Consulting Period, continue to vest in any outstanding unvested options to purchase, or awards to acquire, securities of the Company, and (ii) for a period of one year following the termination of the
Consulting Period, exercise the Executive’s vested options. Notwithstanding any provision to the contrary contained in this Section 9(f), in the event that the Executive accepts a position (the “Position”) with similar
responsibilities that he had at the Company prior to the termination of the Employment Period with an entity in the life science, biotech or pharmaceutical sectors, the Consulting Period shall immediately terminate and the Executive shall cease
vesting in any outstanding unvested options to purchase, or awards to acquire, securities of the Company as of such date of acceptance and the Executive shall have a period of thirty days following such date of acceptance to exercise any vested
options. The Executive shall notify the Company in writing of his date of acceptance of the Position no later than five days following such acceptance. 
  
 9. Noncompetition; Nonsolicitation; Confidentiality. 
  
 (a) Noncompetition. The Executive acknowledges that in the course of his employment with the Company and its Affiliates and their predecessors, he
has and will continue to become familiar with the intellectual property and trade secrets of, and other confidential information concerning, the Company and its Affiliates, that the Executive’s services will be of special, unique and
extraordinary value to the Company and its Affiliates and that the Company’s ability to accomplish its purposes and to successfully pursue its business plan and compete in the marketplace depends substantially on the skills and expertise of the
Executive. Therefore, and in further consideration of the compensation being paid to the Executive hereunder, the Executive agrees that, during the Employment Period and for a period of twelve months following the 
  

 - 10 - 

 Executive’s termination of employment with the Company for any reason during the Employment Period (the
“Restricted Period”), he shall not directly or indirectly own, manage, control, participate in, consult with, render services for, or in any manner engage in any business directly competing with the businesses of the Company or its
Affiliates, in any country where the Company or its Affiliates conducts business; provided, however, that passive investments amounting to no more than three percent of the voting equity of a business shall not be prohibited hereby. 
  
 (b) Nonsolicitation. During the Restricted Period, the Executive shall
not directly or indirectly through another entity (i) induce, attempt to induce or hire any employee of the Company or any Affiliate to leave the employ of the Company or such Affiliate, or in any way willfully interfere with the relationship
between the Company or any Affiliate and any employee thereof; or (ii) induce or attempt to induce any partner, joint venturer, licensor, customer, supplier, licensee or other business relation of the Company or any Affiliate to cease doing business
with the Company or such Affiliate, or in any way interfere with the relationship between any such customer, supplier, licensee or business relation and the Company or any Affiliate. 
  
 (c) Information. The Executive acknowledges that the information, observations and data obtained by the Executive
concerning the business and affairs of the Company and its Affiliates and their predecessors during the course of the Executive’s performance of services for, or employment with, any of the foregoing entities (whether or not compensated for
such services) are the property of the Company and its Affiliates, including information concerning partnership, licensing, joint venture or acquisition opportunities in or reasonably related to the business or industry of the Company or its
Affiliates of which the 
  

 - 11 - 

 Executive becomes aware during such period. Therefore, the Executive agrees that he will not at any time (whether during
or after the Employment Period) disclose to any unauthorized person or, directly or indirectly, use for the Executive’s own account, any of such information, observations, data or any Work Product (as defined below) or Copyrightable Work (as
defined below) without the Board’s consent, unless and to the extent that: (a) the aforementioned matters become generally known to and available for use by the public other than as a direct or indirect result of the Executive’s acts or
omissions to act or the acts or omissions to act of other senior or junior management employees of the Company and its Affiliates; (b) the Executive is required to do so by a lawful order of a court of competent jurisdiction, any governmental
authority or agency, or any recognized subpoena power; or (c) such disclosure is necessary to prosecute the Executive’s rights against the Company or its Affiliates or to defend himself against any allegations. The Executive agrees to deliver
to the Company at the termination of the Executive’s employment, or at any other time the Company may request in writing (whether during or after the Employment Period), all memoranda, notes, plans, records, reports and other documents,
regardless of the format or media (and copies thereof), relating to the business of the Company and its Affiliates and their predecessors (including, without limitation, all acquisition prospects, lists and contact information) which the Executive
may then possess or have under the Executive’s control. 
  
 (d) Intellectual Property. The Executive acknowledges that all inventions, innovations, improvements, developments, methods, designs, analyses, drawings, reports, trade secrets, know-how, ideas, computer programs, and all similar or
related information (whether or not patentable) that relate to the actual or anticipated business, research and development or existing or future products or services of the Company or its Affiliates that are conceived, 
  

 - 12 - 

 developed, made or reduced to practice by the Executive while employed by the Company or any of its predecessors
(“Work Product”) belong to the Company, and the Executive hereby assigns, and agrees to assign, all of the Executive’s rights, title and interest in and to the Work Product to the Company. Any copyrightable work (“Copyrightable
Work”) prepared in whole or in part by the Executive in the course of the Executive’s work for any of the foregoing entities shall be deemed a “work made for hire” under the copyright laws, and the Company shall own all rights
therein. To the extent that it is determined, by any authority having jurisdiction, that any such Copyrightable Work is not a “work made for hire,” the Executive hereby assigns and agrees to assign to the Company all the Executive’s
rights, title and interest, including, without limitation, copyright in and to such Copyrightable Work. The Executive shall promptly disclose such Work Product and Copyrightable Work to the Board and perform all actions reasonably requested by the
Board (whether during or after the Employment Period) to establish and confirm the Company’s ownership (including, without limitation, assignments, consents, powers of attorney and other instruments). 
  
 (e) Enforcement. The Executive acknowledges that the restrictions
contained in this Section 9 are reasonable and necessary, in view of the nature of the Company’s business, in order to protect the legitimate interests of the Company, and that any violation thereof would result in irreparable injury to the
Company. If, at the time of enforcement of this Section 9, a court holds that the restrictions stated herein are unreasonable under circumstances then existing, the parties hereto agree that the maximum duration, scope or geographical area
reasonable under such circumstances shall be substituted for the stated period, scope or area and that the court shall be allowed to revise the restrictions contained herein to cover the maximum duration, scope and area permitted by law. If the
provisions of this Section 9 shall be deemed illegal by any 
  

 - 13 - 

 jurisdiction, the provisions in this Section 9 shall be deemed ineffective within such jurisdiction. Because the
Executive’s services are unique and because the Executive has access to confidential information, the parties hereto agree that money damages would be an inadequate remedy for any breach of any provision of this Agreement. Therefore, in the
event of a breach or threatened breach by the Executive of any provision of this Agreement, the Company may, in addition to other rights and remedies existing in its favor, apply to any court of competent jurisdiction for specific performance and/or
injunctive or other relief in order to enforce, or prevent any violations of, the provisions hereof (without posting a bond or other security). 
  
 10. Notices. All notices, demands, requests or other communications required or permitted to be given or made hereunder shall be in writing and
shall be delivered, telecopied or mailed by first class registered or certified mail, postage prepaid, addressed as follows: 
  

	 	(a)	  If to the Company: 

  
     Genaera Corporation 
     5110 Campus Drive 
     Plymouth Meeting, PA
19462 
     Fax: (610) 941-5399 
     Attention: Chief Financial Officer 
  
 With a copy to: 
  
     Dechert LLP 
     1717 Arch Street 
     Philadelphia, PA 19103

     Fax: (215) 994-2222 
     Attention: James A. Lebovitz 
  

	 	(b)	If to the Executive: 

  
 at the address on the books and records of the Company at the time of such notice, or to such other address as may be designated by either party in a
notice to the other. Each notice, demand, request or other communication that shall be given or made in the manner described above shall be deemed sufficiently given or made for all purposes three days after it is deposited 
  

 - 14 - 

 in the U.S. mail, postage prepaid, or at such time as it is delivered to the addressee (with the return receipt, the
delivery receipt, the answer back or the affidavit of messenger being deemed conclusive evidence of such delivery) or at such time as delivery is refused by the addressee upon presentation. 
  
 11. Severability. The invalidity or unenforceability of any one or
more provisions of this Agreement shall not affect the validity or enforceability of the other provisions of this Agreement, which shall remain in full force and effect. 
  
 12. Survival. It is the express intention and agreement of the parties hereto that the provisions of Sections 6, 7,
8, 9 and 10 hereof shall survive the termination of employment of the Executive. In addition, all obligations of the Company to make payments hereunder shall survive any termination of this Agreement or the Executive’s employment on the terms
and conditions set forth herein. 
  
 13. Assignment. The
rights and obligations of the parties to this Agreement shall not be assignable or delegable, except that (i) in the event of the Executive’s death, the personal representative or legatees or distributees of the Executive’s estate, as the
case may be, shall have the right to receive any amount owing and unpaid to the Executive hereunder; and (ii) the rights and obligations of the Company hereunder shall be assignable and delegable in connection with any subsequent merger,
consolidation, sale of all or substantially all of the assets of the Company and any similar event with respect to any successor corporation (collectively, the “Company’s Successor”). 
  
 14. Binding Effect. Subject to any provisions hereof restricting
assignment, this Agreement shall be binding upon the parties hereto and shall inure to the benefit of the parties and their respective heirs, devisees, executors, administrators, legal representatives, successors (including the Company’s
Successor) and assigns. 
  

 - 15 - 

 15. Amendment; Waiver. This Agreement shall not be amended, altered or modified except by an
instrument in writing duly executed by the parties hereto. Neither the waiver by either of the parties hereto of a breach of or a default under any of the provisions of this Agreement, nor the failure of either of the parties, on one or more
occasions, to enforce any of the provisions of this Agreement or to exercise any right or privilege hereunder, shall thereafter be construed as a waiver of any subsequent breach or default of a similar nature, or as a waiver of any such provisions,
rights or privileges hereunder. 
  
 16. Headings. Section
and subsection headings contained in this Agreement are inserted for convenience of reference only, shall not be deemed to be a part of this Agreement for any purpose, and shall not in any way define or affect the meaning, construction or scope of
any of the provisions hereof. 
  
 17. Governing Law. This
Agreement, the rights and obligations of the parties hereto, and any claims or disputes relating thereto, shall be governed by and construed in accordance with the laws of the State of Delaware. 
  
 18. Entire Agreement. This Agreement constitutes the entire agreement
between the parties respecting the employment of the Executive and supersedes any other employment agreement or arrangement between the Executive and the Company. 
  
 19. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be an original and
all of which shall be deemed to constitute one and the same instrument. 
  

 - 16 - 

 20. Definitions. 
  
 “Affiliates” means any entity, as may from time to time be designated by the Board, and other entity directly or
indirectly controlling or controlled by or under common control with the Company. For purposes of this definition, “control” means the power to direct the management and policies of such entity, whether through the ownership of voting
securities, by contract or otherwise; and the terms “controlling” and “controlled” have meaning correlative to the foregoing. 
  
 “Board” means the board of directors of the Company. 
  
 “Cause” means (i) the Executive’s conviction of a felony or a crime involving moral turpitude or the intentional commission of any other
act or omission involving fraud; (ii) habitual gross neglect of the Executive’s duties as described in Section 3, which neglect continues uncorrected for ten days following written notice to the Executive by the Company; or (iii) the continued
and willful failure to follow the lawful directions of the Board, which failure continues uncorrected for ten days following written notice to the Executive by the Company. 
  
 “Continuation Period” means the 12-month period commencing on the Date of Termination. 
  
 “Date of Termination” means (i) if the Executive’s employment
is terminated by the Executive’s death, the date of the Executive’s death; (ii) if the Executive’s employment is terminated because of the Executive’s Disability, thirty days after Notice of Termination, provided that the
Executive shall not have returned to the performance of the Executive’s duties on a full-time basis during such thirty-day period; (iii) if the Executive’s employment is terminated by the Company for Cause, the date specified in the Notice
of Termination; (iv) if the Executive’s employment is terminated pursuant to delivery of a Notice of Non-Renewal, the end of the then effective term of employment hereunder; or (v) if the Employment Period is terminated for any other reason,
the date on which Notice of Termination is given. 
  

 - 17 - 

 “Good Reason” means and shall be deemed to exist if, without the prior express written consent
of the Executive, (a) the Executive suffers a material change in his reporting obligations, (b) the Executive suffers a material change in the duties, responsibilities or effective authority associated with his titles and positions, as set forth and
described in Section 3 of this Agreement; (c) a reduction by the Company of the Executive’s “Base Salary” (as increased from time to time in accordance with Section 5) or in the other compensation and benefits below a level which is
substantially equivalent in the aggregate, to those payable to the Executive hereunder, or a material adverse change in the terms or conditions on which any such compensation or benefits are payable as in effect on the date hereof or as the same may
be increased from time to time during the term of this Agreement; (d) the Company fails to pay the Executive’s accrued compensation or to provide for the Executive’s accrued benefits when due; (e) the Executive’s place of employment
and work location, as provided under Section 4 is moved to a location more than 25 miles from Plymouth Meeting, Pennsylvania or (f) the failure or refusal of the Company’s Successor to expressly assume this Agreement in writing. 
  
 IN WITNESS WHEREOF, the undersigned have duly executed this Agreement, or
have caused this Agreement to be duly executed on their behalf, as of the day and year first hereinabove written. 
  

			
	 GENAERA CORPORATION

		
	 By:
	 	 /s/ John A. Skolas

	 Name:
	 	John A. Skolas
	 Title:
	 	Senior Vice President, Chief Financial Officer and General Counsel

  

	
	 /s/ Roy C. Levitt

	 Roy C. Levitt

  

 - 18 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}]]