Document:

EX-10.1

 Exhibit 10.1 

[On Lombard Medical, Inc. letterhead] 

Terms and Conditions of Employment 

(including particulars of terms of employment 

required by the Employment Rights Act 1996) 
  

	EMPLOYER:	 Lombard Medical Limited, 4 Trident Park, Didcot, Oxon, OX11 7HJ, a subsidiary of Lombard Medical Inc., as a group, hereafter referred to as the “Company” 

 

	EMPLOYEE:	 Kurt Lemvigh, ADDRESS REDACTED  

  

	1	EMPLOYMENT 

  

	1.1	With effect from 20 April 2017, you are employed as Chief Executive Officer and you will report to the Board of Directors (or any director or Committee of directors authorised by the Board) (the
“Board”). 

  

	2	SALARY 

  

	2.1	Your salary is £250,000 per annum which is payable monthly on the 26th day of each month, in arrears, subject to the deduction of income tax and national insurance contributions. Funds will be credited direct
to your bank (“Salary”). 

  

	2.2	You agree that the Company may, both during this agreement and on termination, deduct from the Salary any sum due from you to the Company including but not limited to any outstanding loans, advances, damage or loss to
the Company caused by you, excess holiday, bonuses and over payments. 

  

	2.3	Your salary will be subject to periodic review and adjustments at the discretion of the Board. 

  

	3	BONUS 

  

	3.1	You shall be entitled to participate in such bonus scheme as the Company may operate from time to time. The current scheme provides you with the opportunity of earning up to fifty percent (50%) of base salary per
calendar year, subject to achievement of milestones mutually agreed with the Board at the beginning of each calendar year. You will not be entitled to payment for any bonus year if you are under notice or no longer employed by the Company at the
date of payment. The scheme is discretionary and the Company can withdraw or amend the scheme at any time. 

  

	4	SHARE OPTIONS 

  

	4.1	Promptly following the Start Date, you will be issued an option to purchase two million (2,000,000) shares of the Common Stock of the Company (the “Option”). The Option will be granted under and subject to the
Company’s current Stock Incentive Plan, as amended, and include the following additional terms: 

  

	4.1.1	The Option shall have a per share exercise price equal to the NASDAQ quoted price of a share of Common Stock on the date of grant thereof. 

 

	4.1.2	The Option will become exercisable and vest over a four (4) year period. Twenty-five percent (25%) of the shares shall be vested and may be exercised immediately. The balance of the remaining shares shall vest
monthly over a four-year period. 

  

	4.1.3	All unvested Options will accelerate upon a trade sale of substantially all the assets of the Company (“Exit Event”). 

  

	4.1.4	The Option will be evidenced by the Company’s standard form of Stock Option Agreement. 

  
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	5	CAR ALLOWANCE 

  

	5.1	You will be entitled to a car allowance of six thousand (£6,000) per annum to be paid in monthly instalments with your Salary. For the purposes of benefits related to salary, such as pension and life
assurance, this allowance shall not be taken into account. 

  

	5.2	You are required to notify the Company should you receive any driving convictions on your license. Such notifications should be made to the VP HR at the earliest opportunity following their issue. If you are
disqualified from driving then the allowance would be withdrawn. 

  

	6	DUTIES 

 You shall during your employment under this agreement: 

 

	 	(a)	perform such duties and exercise such powers as the Board may from time to time reasonably assign to you relating to the business of the Company; 

 

	 	(b)	well and faithfully serve the Company and use the utmost endeavours to promote its interests; 

  

	 	(c)	devote the whole of your time, attention and ability to your duties under this Agreement; 

  

	 	(d)	comply with the rules, procedures and regulations of the Company; 

  

	 	(e)	comply with all reasonable requests, instructions and directions given or made by the Board; 

  

	 	(f)	keep the Board regularly informed of your activities and the activities or the business of the Company as they may reasonably require or in which it may be reasonable to assume they would be interested;

  

	 	(g)	promptly disclose to the Board any misconduct or breach of duty on your part (or that of any other employee or director or officer of the Company) and any information that comes into your possession which adversely
affects the business or interests, or may adversely affect the business or interests, of the Company; 

  

	 	(h)	comply with all relevant laws recommendations and regulations applying to the NASDAQ Stock Exchange and any other regulatory authority applicable to you and all relevant rules, policies and procedures of the Company
including without limitation, the Company’s code for dealing in securities; and 

  

	 	(i)	owe a fiduciary duty to the Company by virtue of your senior position. 

  

	7	PLACE OF WORK 

 Your place of employment shall be the Company’s premises at 4
Trident Park, Didcot, Oxfordshire, or any other premises the Company may have, within reasonable proximity to this location. You will be required to travel on the business of the Company both within the UK and overseas. 

 

	8	EXPENSES 

 The Company will reimburse all authorised purchases and expenses claims in
line with its current Expenses Policy. 

  
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	9	HOURS OF WORK 

  

	 	The nature of your position is such that your working time cannot be measured or pre-determined and so your employment falls within regulation 20 of the Working Time Regulations 1998. Accordingly, you are responsible
for determining your own hours of work, providing that such hours are consistent with the proper performance of your duties. 

  

	10	HOLIDAYS AND HOLIDAY PAY 

  

	10.1	The Company’s holiday year runs from 1 January to 31 December. In addition to the usual English bank and public holidays, in each calendar year of employment you are entitled to twenty-five (25) days
annual paid holidays. Holiday must be taken at times convenient to the Company. Unused holiday entitlement to a maximum of five (5) days may be carried forward to the next year with prior written permission. 

 

	10.2	Where you are employed for part of a calendar year only—either in your first year or on termination of your employment—you will be entitled to paid holiday pro rata to the number of complete days worked by you
in the relevant calendar year. The Company uses as the basis for calculating the value of a day’s pay the following formula: current annual salary divided by 260. 

 

	10.3	On the termination of your employment, where you have taken more or less than your holiday entitlement as calculated above, an adjustment based on your normal rate of pay will be made in your final pay. This will be
either by way of deduction if you have taken more than your entitlement, or by way of an additional payment where you have taken less than your entitlement, calculated on a pro rata basis. 

 

	10.4	The Company may require you to use up any accrued but untaken holiday during your notice period; any payment in lieu of accrued holiday will be at the Company’s discretion. 

 

	11	INCAPACITY 

  

	11.1	If you are prevented by illness accident or other incapacity from properly performing your duties under this Agreement you must report this fact as soon as reasonably practicable to the VP Human Resources and the
Chairman of the Board and, if you are so prevented, you must if required by the Company provide appropriate doctor’s certificates in respect of any period of absence in excess of seven (7) consecutive days. 

 

	11.2	For Statutory Sick Pay (“SSP”) purposes your normal working days are Monday to Friday. 

  

	11.3	If prevented by illness, accident or other incapacity from performing your duties you may be suspended from carrying out those duties for so long as the Company considers such ill health to continue and the Company may
appoint a temporary replacement to undertake all or some of your duties. 

  

	11.4	If required by the Company you shall, at the expense of the Company, undergo a medical examination by such medical practitioner as the Company nominates. You shall authorise the medical practitioner to disclose to and
discuss with Human Resources and the Chairman of the Board the results of the examination. You consent to the Company processing sensitive personal data relating to the results of such examination. You further agree that you will co-operate with the
Company’s reasonable requests to permit your own GP or other medical consultant to disclose your medical records, and to discuss your medical prognosis with the Company’s nominated doctor. 

 

	12	COMPANY SICK PAY SCHEME 

  

	12.1	To qualify for Company Sick Pay (“CSP”) you must follow company procedures on notification and certification of absence. 

  
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	12.2	If during your employment you are unable to work due to illness or accident, then at the Company’s discretion you may continue to be paid at the following levels: 

 

	 	(a)	Up to three months of sickness absence in any 12 consecutive months—full pay 

  

	 	(b)	Up to three further months of sickness absence in any 12 consecutive months—half pay. 

  

	12.3	No guarantee is made that your employment would continue for the periods of time in clause 12.2. 

  

	12.4	It is at the Company’s discretion thereafter to continue paying CSP but, if payment of CSP does not continue, your entitlement to SSP is unaffected. 

 

	12.5	Your entitlement to CSP and SSP will not exceed your normal full pay. Payments made under CSP will be subject to tax and NI. 

  

	13	EMPLOYMENT BENEFITS 

  

	13.1	You will be entitled to the employment benefits that the Company has in place. Your participation in any benefit schemes, as referred to below will be subject to the rules from time to time of any such scheme, which may
be amended or replaced or discontinued by the Company at any time. 

  

	 	Pension Scheme 

  

	13.2	The Company operates a group personal pension plan in which the Company will match your pension contributions up to a maximum of 6% of Salary. The Company’s contributions will be paid in equal monthly instalments
in arrears. The Company’s contributions are subject to the rules of the scheme and to any HM Revenue and Customs or other applicable limits from time to time. 

 

	 	Insurance Benefits 

  

	13.3	You shall be entitled to participate at the Company’s expense in the Company’s life assurance scheme, the Company’s long term disability insurance scheme and for yourself, your spouse or civil partner and
your children up to 21 years (or 25 if in full time education, unmarried and financially dependent on you) in the Company’s private medical insurance scheme. 

 

	13.4	Your participation in any such insurance scheme, as referred to above, will be subject to the insurer’s acceptance and the rules from time to time of any such scheme, which may be amended or replaced or
discontinued by the Company at any time. 

  

	14	TERMINATION 

  

	14.1	Your employment may be terminated by the Company on statutory notice. You may terminate this employment upon not less than three (3) months’ prior notice in writing. 

 

	14.2	The Company shall be entitled to terminate your employment summarily without notice if you are guilty of serious misconduct or gross negligence 

 

	14.3	Termination by the Company without cause shall give rise to a severance payment equal to twelve (12) months of your then prevailing base salary less any payment in lieu of notice. In addition to this, you may,
subject to statutory provisions, be entitled to receive a statutory redundancy payment if made redundant. Any severance payment is conditional upon you entering into a Severance Agreement in settlement of all claims you may have connected with your
employment (to the extent permitted by law) that is mutually agreeable. For the avoidance of doubt, termination without cause shall not include termination by reason of misconduct or capability. 

  
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	14.4	In the event of termination of your employment by the Company by reason of a Change in Control shall be treated as a dismissal without cause and the terms of Clause 14.3 (Termination without cause) shall apply. For the
sake of clarity, Change in Control shall be defined as 

  

	 	a)	a merger or consolidation of the Company with or into another entity; 

  

	 	b)	the dissolution, liquidation or winding up of the Company; or 

  

	 	c)	the sale of all or substantially all of the Company’s assets, 

  

	14.5	The Company may terminate your employment at any time with immediate effect by paying a sum in lieu of all (or any unexpired part) of notice to you. This shall be calculated as a sum that is equal to the Salary that you
would have been entitled to receive under this Agreement during the unexpired part of your applicable notice period. If notice has already been given, this will be calculated based on that portion of the notice period that has not been worked out.
Any delay by the Company in exercising any right of termination under this Clause does not constitute a waiver of such right. 

  

	14.6	If your employment is terminated on notice by either party the Company may require you to cease to perform your duties and not to attend at the Company’s premises during the notice period or any part of the notice
period. The Company may require you during part or all of such period to perform part but not all of your normal duties or duties different from your normal duties, including carrying out specific projects or tasks (but not being duties
inappropriate to your status). You shall comply with any other reasonable conditions imposed by the Company during such period and shall not contact customers of the Company if so requested by the Company. During this period the Company shall
continue to pay your Salary and other benefits to which you have an entitlement under this Agreement, but you shall not be entitled to any bonus payments. During this period you shall remain in employment and shall continue to be bound by all
obligations owed to the Company under this Agreement. 

  

	15	OBLIGATIONS ON TERMINATION 

  

	15.1	On the termination of the your employment however arising or, if earlier, at any time after the start of a period of garden leave under Clause 14.6 or after you give notice to terminate your employment, you will (if so
requested by the Company): 

  

	 	(a)	immediately resign from any directorships or other offices (and from any related trusteeships) that you hold without any compensation for loss of office. Should you fail to do so within five days of said request, you
hereby irrevocably appoint any director or the secretary of the Company as your lawful attorney, in your name and on your behalf, to sign any documents and do any thing to give effect to such resignations; and 

 

	 	(b)	subject to Clause 15.2, immediately deliver to the Company all documents, books, materials, records, correspondence, papers and information (on whatever information storage media and wherever located) and any other
property relating to the affairs or business of or belonging to the Company or any Group Company which is in your possession or under your control; 

  

	 	(c)	irretrievably delete any information relating to the affairs and business of or belonging to the Company or any Group Company stored on any media belonging to you and all matter derived from such sources which is in
your possession or under your control outside the premises of the Company or any Group Company; 

  

	 	(d)	immediately deliver to the Company all passwords and encryption codes which you have used in relation to any document produced or processed by you or in respect of any equipment belonging to the Company or any Group
Company; and 

  

	 	(e)	provide a signed statement that you have complied fully with your obligations under this Clause 15.1. 

  
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	15.2	If you are on garden leave under Clause 14.6 you are not required under Clause 15 to return any property provided to you as a contractual benefit until the end of the period of garden leave. 

 

	16	CONFIDENTIALITY 

  

	16.1	In this Clause 16, “Confidential Information” means: 

  

	 	(a)	any confidential information relating to the Company including, but not limited to, any information and materials pertaining to any of its prospects, proprietary rights, trade secrets, customer lists, trading details,
licenses, software, computer programs, designs, technology, ideas, know-how, processes, formulas, compositions, data, techniques, improvements, inventions (whether patentable or not), works of authorship, business, marketing and product development
plans, the skills or salaries or terms of compensation of other employees, information about customers, budgets, prices, costs and other information concerning the Company’s actual or anticipated business, technical or financial information,
marketing plans, proposals, research or development; 

  

	 	(b)	any other information designated by the Company as confidential; and 

  

	 	(c)	any information in relation to which the Company owes a duty of confidentiality to any third party. 

  

	16.2	You may not either during your employment with the Company, or at any time after it has terminated, disclose to any other person or otherwise make use of any Confidential Information. You agree to use your best
endeavours to prevent the publication or disclosure of Confidential Information by another person or entity. 

  

	17	INVENTIONS 

  

	17.1	If in the course of your employment you make or discover, or participate in the making or discovery of, Intellectual Property relating to or capable of being used in the business carried on by the Company, full details
of the Intellectual Property shall immediately be communicated to the Company and shall be the sole property of the Company. 

  

	17.2	At the request and expense of the Company you shall give and supply all such information, data, drawings and assistance as is requisite to enable the Company to exploit the Intellectual Property to the best advantage.
If so requested, you shall, at the Company’s expense but without receiving payment, execute all documents and do all things necessary to vest the title to the invention, design or discovery in the Company. 

 

	17.3	If you make or discover or participate in the making or discovery of an Intellectual Property during your employment but which is not the property of the Company, the Company shall, subject only to the provisions of the
Patents Act 1977, have the right to acquire for itself or its nominee your rights in the Intellectual Property. 

  

	17.4	Rights and obligations under this Clause 17 shall continue in force after termination of this Agreement in respect of Intellectual Property made or discovered during your employment under this Agreement and shall be
binding upon your representatives. 

  

	17.5	“Intellectual Property” includes patents, trade marks, service marks, designs, utility models, copyrights, design rights, applications for registration of any of the foregoing and the right to apply for them
in any part of the world, moral rights, inventions, confidential information, know-how, and rights of a similar nature arising or subsisting anywhere in the world in relation to all of the foregoing, whether registered or unregistered.

  
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	18	ACTIVITIES DURING YOUR EMPLOYMENT 

  

	18.1	During your employment you shall not be directly or indirectly engaged or interested in any other trade, business or occupation whatsoever without the prior written consent of the Board. Such consent may be given
subject to any terms or conditions which the Board requires. Any breach of this section which will be deemed to be a breach of the terms of this Agreement; you must not, during your employment, introduce to any other competing business orders for
goods or services with which the Company produces or may reasonable plan to produce. 

  

	19	RESTRICTIVE COVENANTS 

  

	  	You agree to be bound by the post termination obligations set out in the Schedule to this Agreement. 

  

	20	DISCIPLINARY AND GRIEVANCE PROCEDURE 

  

	20.1	The Company has a disciplinary procedure and a grievance procedure both of which are available from HR. These procedures are not incorporated as part of your terms and conditions of employment and, therefore, do not
form part of your contract of employment. 

  

	20.2	Any disciplinary matters affecting you will be dealt with by the Chairman of the Board, or his nominee. You may appeal against any disciplinary decision in writing to the Board, whose decision is final. The person with
whom you should first raise a grievance is the Chairman of the Board. In the event of your being dissatisfied with the outcome of the grievance hearing or a disciplinary hearing which you are requested to attend, then you may lodge an appeal which
will be heard by the full Board. Grievances and appeals should be submitted in writing. 

  

	21	REGULATORY REQUIREMENTS 

  

	21.1	You must comply at all times with the Company’s quality system and pay special regard to ensuring the overall safety of the technology, products and components being developed by the Company. 

 

	21.2	You must also ensure that your work and conduct adheres to any Regulatory procedures or requirements that apply to the business. 

  

	22	CHANGES TO YOUR TERMS AND CONDITIONS OF EMPLOYMENT 

  

	 	The Company reserves the right to make reasonable changes to any of the terms and conditions of your employment. 

  

	23	DATA PROTECTION 

  

	23.1	You acknowledge that the Company will collect data about you as part of the application process and during your employment. Such data will only be used by the Company to fulfil its obligations to you as your employer
and for other purposes relating to your employment with the Company. This processing may take place in the UK or US, and will principally be for HR, administrative, financial, regulatory or payroll purposes. 

 

	23.2	You are responsible for ensuring that personal data about other employees, customers, or persons in whom the Company’s products are or may be implanted, which you may use or access during your employment is kept
secure from unauthorised access or disclosure. 

  

	23.3	You consent to the transfer and disclosure of personal data regardless of the country of residence of the person to whom the data is to be transferred. Where the disclosure or transfer is to a person resident outside of
the European Economic Area, the Company shall take reasonable steps to ensure that the Employee’s rights and freedoms in relation to the processing of the relevant personal data are adequately maintained. 

  
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	24	USE OF TELECOMMUNICATIONS EQUIPMENT 

 You acknowledge that the Company may legitimately
monitor any communication sent or received by you either in the performance of your duties or by way of the Company’s networks and consent to such monitoring for the following purposes: 

 

	 	(a)	to ensure the proper working of our IT systems; 

  

	 	(b)	to ensure that our employees comply with our practices and procedures; 

  

	 	(c)	to ensure that employees achieve acceptable standards in relation to the performance of their duties; 

  

	 	(d)	to prevent and detect crime; and 

  

	 	(e)	in order to investigate or detect the unauthorised use of the Company’s IT systems. 

  

	25	NOTICES 

 All communications between the parties with respect to any of the provisions of
this Agreement will be sent to the addresses set out in this Agreement, or to such other addresses as may be notified by the parties for the purpose of this Clause, by personal service, pre-paid registered or recorded delivery post or by facsimile
transmission or other electronic means of written communication such as email with confirmation by letter given by the close of business on the next following business day. Any communication to the Company must be marked “For the attention of
the VP Human Resources or Company Secretary”. 
  

	26	GENERAL 

  

	26.1	In this Agreement “the Company” means the parent Company any holding company and/or any subsidiary of the Company or of any such holding Company, from time to time and their successors and assigns. Holding
Company means a parent undertaking as defined in section 1162 of the Companies Act 2006. Subsidiary means a subsidiary undertaking as defined in section 1162 of the Companies Act 2006. 

 

	26.2	This Agreement shall take effect when signed by both the parties and will from that date replace any previous agreements between the Company and you. 

 

	26.3	There are no collective agreements relating to your employment with the Company. 

  

	26.4	The construction, validity and performance of this agreement shall be governed by the Laws of England and the parties submit to the exclusive jurisdiction of the English courts. 

 

					
			
	/s/ Raymond W. Cohen 	 		 	Date 27 April 2017
	Raymond W Cohen	 		 	
	Chairman of the Board of Directors	 		 	

 I understand and agree to the above terms and conditions of my Contract of Employment. 

 

					
			
	/s/ Kurt Lemvigh 	 		 	Date 08 June 2017 
	Kurt Lemvigh	 		 	

  
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 Definitions and Schedule of Post-Termination Obligations 

 

	1	Definitions: 

 “Business” means the business or any part of it carried on by any The Company and any
Group Company as at the Termination Date in respect of which you have been concerned or involved to any material extent at any time during the 12 month period immediately prior to the Termination Date. 

“Customer” means any person, firm, company or other organisation who, at any time during the twelve months immediately preceding the Termination
Date was a customer of or in the habit of dealing with the Company or any Group Company, and with whom you possess Confidential Information about and had personal dealings in the course of your employment or for whom you were responsible on behalf
of the Company or any Group Company during that period. 
 “Key Person” means a person employed as a senior employee, director or engaged as a
consultant of a Group Company with whom you worked directly or for whom you had management responsibility in the course of your employment at any time during the 12 month period immediately prior to the Termination Date. 

“Material Interest” means: 
  

	 	(a)	the holding of any position as director, officer, employee, consultant, owner, partner, principal or agent; 

  

	 	(c)	the direct or indirect provision of any financial assistance. 

 “Prospective Customer” means any
person, firm, company or other organisation with whom the Company or any Group Company had negotiations or discussions regarding a possible business relationship during the six months immediately preceding the Termination Date and with whom you had
material dealings in the course of your employment, or for whom you were responsible for developing the relationship on behalf of the Company or any Group Company during that period. 

“Termination Date” means the date on which this Agreement terminates howsoever occurring. 

 

	2	You agree that you will not (other than on behalf of the Company) without the prior written consent of the Company (such consent to be withheld only in so far as may be reasonably necessary to protect the legitimate
interests of the Group) directly or indirectly, and on your own behalf or on behalf of, or in conjunction with, any firm, company or person: 

  

	 	(a)	during the period of 9 months from the Termination Date hold a Material Interest in a business the same as or in competition with the Business in the UK. 

 

	 	(b)	during the period of 12 months from the Termination Date: 

 (i) solicit or endeavour to entice
away from the Company or any Group Company the business or custom of any person, firm or company who was a Customer of the Company or any Group Company for the purpose of obtaining business, orders or custom, or providing goods or services, in
competition with the Business; or 
 (ii) solicit or endeavour to entice away from the Company or any Group Company the business or
custom of any person, firm or company who was a Prospective Customer of the Company or any Group Company for the purpose of obtaining business, orders or custom, or providing goods or services, in competition with the Business; or 

(iii) in relation to a business the same as or in competition with the Business perform or provide any services or supply any goods or
otherwise have any business dealings with any person, firm or company who was a Customer of the Company or any Group Company; 
 (iv) in
relation to a business the same as or in competition with the Business perform or provide any services or supply any goods or otherwise have any business dealings with any person, firm or company who was a Prospective Customer of the Company or any
Group Company; 
 (v) in relation to a business the same as or in competition with the Business, offer to employ or engage or otherwise
solicit or endeavour to entice away from the Company or any Group Company any Key Person; 

  
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	(c)	at any time: 

  

	 	(i)	represent yourself as being connected with the Company or any Group Company as director, officer, employee, consultant, owner, partner, principal or agent, shareholder or in any other capacity other than as a former
employee, or use any registered names or trading names associated with the Company or any Group Company; or 

  

	 	(ii)	do or say anything likely or calculated to lead any person firm or company to withdraw from or cease to continue offering to a Group Company any rights of purchase, sale, import, distribution or agency then enjoyed by
it. 

  

	3	The periods for which the restrictions in paragraph 2 apply shall be reduced by any period that you spend on garden leave (in accordance with Clause 14.6 of your Teams and Conditions of Employment) immediately before
the Termination Date. 

  

	4	None of the restrictions in paragraph 2 will prevent you from: 

  

	 	(a)	holding an investment by way of shares or other securities of not more than 3% of the total issued share capital of any company, whether or not it is listed or dealt in on a recognised stock exchange; or

  

	 	(b)	being engaged or concerned in any business concern, provided that your duties or work shall relate solely to services or activities of a kind with which you were not concerned to a material extent in the 12 months
before the Termination Date. 

  

	5	You agree that: 

  

	 	(a)	each of the sub-paragraphs contained in paragraph 2 above constitutes an entirely separate, severable and independent covenant and restriction on you; 

 

	 	(b)	with reference to the nature of your employment and the potential time required to recruit and train a replacement, the duration, extent and application of each of the restrictions contained in paragraph 2 is no greater
than is necessary for the protection of the goodwill and trade connections of the Business; and 

  

	 	(c)	if a restriction on you contained in paragraph 2 is found void but would be valid if some part of it were deleted, the restriction shall apply with such deletion as may be necessary to make it valid and effective.

  

	6	If you receive an offer to be involved in a business concern as a director, officer, employee, consultant, owner, partner, principal or agent, shareholder or in any other capacity during your employment, or before the
expiry of the last of the covenants in paragraph 2, you will give the person making the offer a copy of this Schedule and shall tell the Company the identity of that person as soon as possible after accepting the offer. 

 

	7	If your employment is transferred to any firm, company, person or entity other than a Group Company (the “New Employer”) pursuant to the Transfer of Undertakings (Protection of Employment) Regulations 2006,
you will, if required, enter into an agreement with the New Employer containing post-termination restrictions corresponding to those restrictions in paragraph 2, protecting the Confidential Information, trade secrets and business connections of the
New Employer. 

  

	8	You will, at the request and expense of the Company, enter into a separate agreement with any Group Company in which you agree to be bound by restrictions corresponding to those restrictions in this Schedule (or such of
those restrictions as may be appropriate) in relation to that Group Company. 

  
 10EX-10.40

 EXHIBIT 10.40 
  

 
 VIA HAND DELIVERY 

March 19, 2017 
 Scott Eliasof 

 

	 	Re:	Retention Agreement 

 Dear Scott: 

As you know, Cerulean Pharma, Inc. (the “Company”) is exploring the possibility of a number of business opportunities and
transactions. We recognize and appreciate the contributions you have made to the Company during your employment and want you to remain committed to and focused on the tasks that you are assigned during this time. 

Accordingly, in lieu of providing you with any of the post-employment separation benefits set forth in the Amended and Restated Employment
Agreement between you and the Company dated October 25, 2016 (the “Employment Agreement”), the Company has determined that you will be eligible to (i) receive a retention bonus payment equal to six (6) months of pay at your
current base salary rate (the “Retention Amount”), and (ii) receive an additional lump sum payment to assist you with the costs of obtaining health insurance in the amount of (x) the Company’s current monthly contribution to
Company-provided health and dental insurance coverage currently in effect with respect to your current coverage elections multiplied by (y) six (6) (the “Health Assistance Payment”), in each case payable at the time and on the
conditions set forth below and less all applicable taxes and withholdings, provided that: (a) your employment with the Company is not terminated by the Company for Cause (as defined below) or, for at least six (6) months following the date
of this letter agreement, by you for any reason without the Company’s agreement; (b) you execute and deliver to the Company no later than March 23, 2017 the Release of Claims Agreement attached hereto as Exhibit A (the “Release
Agreement”); and (c) you execute and deliver to the Company on, but not before, your last day of employment, the Reaffirmation of Release of Claims Agreement attached hereto as Exhibit B (the “Reaffirmation”). 

In addition, pursuant to the letter from the Company dated November 8, 2016 (the “November 2016 Letter”), you became eligible
for a retention bonus payment upon a Change in Control of the Company (as defined in Exhibit C) to the extent that you remained employed with the Company upon the closing of such Change in Control, on the terms and subject to the conditions in the
November 2016 Letter (the “CIC Bonus”). Notwithstanding that your last day of employment (the “Separation Date”) may be prior to any Change in Control of the Company, in the discretion of the Board of Directors, you may
nevertheless be eligible for a CIC Bonus of up to $82,042.90, payable on the terms and subject to the conditions determined by the Board. 

The Retention Amount will be paid to you within three (3) business days following your timely return of the Release Agreement, and the
Health Assistance Payment will be paid to you within three (3) business days following your timely return of the Reaffirmation. However, if you resign your employment 

  
 Cerulean Pharma Inc. | 35
Gatehouse Drive | Waltham, MA 02451 | P: 781-996-4300 | F: 844-894-CERU 

 

 
  

 
with the Company without the Company’s agreement for any reason prior to the date that is six (6) months following the date of this letter agreement, or should the Company terminate
your employment for Cause at any time, you will not be eligible to receive the Health Assistance Payment or the CIC Bonus, you will be required to repay the full amount of the Retention Amount to the Company immediately, and by signing below and
accepting the Retention Amount you agree to do so. For purposes of hereof, “Cause” means: (a) a good faith finding by the Company that you have (i) engaged in dishonesty, misconduct or gross negligence, or (ii) violated a
material Company policy or procedure or (b) your conviction of, or plea of guilty or nolo contendere to, any crime involving dishonesty or moral turpitude or any felony. 

Please note that your employment with the Company shall continue to be on an at-will basis, pursuant
to which both the Company and you remain free to end the employment relationship for any reason, at any time, with or without Cause or notice. To be clear, however, if the Company terminates your employment for any reason other than for Cause or if
you resign your employment with the Company’s agreement after you receive the Retention Amount, you will remain eligible to receive the Health Assistance Payment and CIC Bonus (to the extent payable), and you will not be required to repay any
portion of the Retention Amount to the Company. 
 Nothing in this letter agreement shall be construed as an agreement, either express or
implied, to pay you any compensation or grant you any benefit beyond the end of your employment with the Company, except as explicitly set forth herein. You may, however, if eligible, elect to continue receiving group health insurance at your own
expense pursuant to the law known as “COBRA.” Please consult the COBRA materials to be provided under separate cover for details regarding this benefit. Please also note that if, following the end of your employment, the Company ceases to
maintain a group health plan, your COBRA coverage will cease. You may, however, be able to obtain health coverage through the Massachusetts health exchange, to the extent you are eligible and as permitted by applicable law. 

This letter agreement shall be interpreted and construed by the laws of the Commonwealth of Massachusetts, without regard to conflict of laws
provisions. You hereby irrevocably submit to and acknowledge and recognize the jurisdiction of the courts of the Commonwealth of Massachusetts or if appropriate, a federal court located in the Commonwealth of Massachusetts (which courts, for
purposes of this letter agreement, are the only courts of competent jurisdiction), over any suit, action or other proceeding arising out of, under or in connection with this letter agreement or the subject matter hereof. This letter agreement is
intended to comply with or be exempt from the provisions of Section 409A and the letter agreement will, to the extent practicable, be construed in accordance therewith. The Company makes no representations or warranty and will have no liability to
you or any other person if any provisions of or payments under this letter agreement are determined to constitute deferred compensation subject to Code Section 409A but not to satisfy the conditions of that section. 

Please note that this letter agreement supersedes in their entirety the provisions of the Employment Agreement providing for post-employment
separation benefits, and that by signing this letter agreement and Exhibit A you will be waiving any rights or claims to receive any such benefits pursuant to, or otherwise arising out of or relating to, the Employment Agreement. 

Please review carefully this letter agreement and Exhibits A, B and C and let me know if you have any questions. If you wish to be eligible to
receive, in lieu of and in exchange for relinquishing the post-employment 

  
 Cerulean Pharma Inc. | 35
Gatehouse Drive | Waltham, MA 02451 | P: 781-996-4300 | F: 844-894-CERU 

 

 
  

 
separation benefits set forth in the Employment Agreement, the Retention Amount, Health Assistance Payment and CIC Bonus (to the extent payable) described herein pursuant to the terms and
conditions hereof, please sign this letter agreement and Exhibit A and return them to me no later than March 23, 2017, and please sign and return Exhibit B on, but not before, the Separation Date. 

 

			
	Sincerely,
		
	By:	 	 /s/ Alejandra Carvajal

		 	Alejandra Carvajal
		 	Vice President, General Counsel

 Received, acknowledged and agreed: 
  

					
	/s/ Scott Eliasof                	 		 	March 19, 2017                
	Scott Eliasof	 		 	Date

  
 Cerulean Pharma Inc. | 35
Gatehouse Drive | Waltham, MA 02451 | P: 781-996-4300 | F: 844-894-CERU 

 

 
  

 EXHIBIT A 

RELEASE OF CLAIMS AGREEMENT 
 In
exchange for the consideration set forth in the letter agreement dated March 19, 2017 (the “Letter Agreement”) to which this Release of Claims Agreement (the “Release Agreement”) is attached as Exhibit A, including receipt
of the Retention Amount (as defined therein) and eligibility to receive the Health Assistance Payment and CIC Bonus (to the extent payable) (each as defined therein), all of which I acknowledge I would not otherwise be entitled to receive, I hereby
agree as follows: 
 1.    Release – I hereby fully, forever, irrevocably and unconditionally
release, remise and discharge the Company, its affiliates, subsidiaries, parent companies, predecessors, and successors, and all of their respective past and present officers, directors, stockholders, partners, members, managers, employees, agents,
representatives, plan administrators, attorneys, insurers and fiduciaries (each in their individual and corporate capacities) (collectively, the “Released Parties”) from any and all claims, charges, complaints, demands, actions, causes of
action, suits, rights, debts, sums of money, costs, accounts, reckonings, covenants, contracts, agreements, promises, doings, omissions, damages, executions, obligations, liabilities, and expenses (including attorneys’ fees and costs), of every
kind and nature that I ever had or now have against any or all of the Released Parties, including, but not limited to, any and all claims arising out of or relating to my employment with and/or separation from the Company, including, but not limited
to, the following and any and all claims for or related to aiding or abetting the following, whether direct or derivative, and whether brought myself or by or through the Company or any trustee, assignee, agent, or other representative thereof: all
claims under Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq., the Americans With Disabilities Act of 1990, 42 U.S.C. § 12101 et seq., the Genetic Information Nondiscrimination Act of
2008, 42 U.S.C. § 2000ff et seq., the Family and Medical Leave Act, 29 U.S.C. § 2601 et seq., the Worker Adjustment and Retraining Notification Act (“WARN”), 29 U.S.C. § 2101 et seq., the
Rehabilitation Act of 1973, 29 U.S.C. § 701 et seq., Executive Order 11246, Executive Order 11141, the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq., and the Employee Retirement Income Security Act
of 1974 (“ERISA”), 29 U.S.C. § 1001 et seq., all as amended; all claims arising out of the Massachusetts Fair Employment Practices Act, Mass. Gen. Laws ch. 151B, § 1 et seq., the Massachusetts
Wage Act, Mass. Gen. Laws ch. 149, § 148 et seq. (Massachusetts law regarding payment of wages and overtime), the Massachusetts Civil Rights Act, Mass. Gen. Laws ch. 12, §§ 11H and 11I, the Massachusetts Equal Rights
Act, Mass. Gen. Laws. ch. 93, § 102 and Mass. Gen. Laws ch. 214, § 1C, the Massachusetts Labor and Industries Act, Mass. Gen. Laws ch. 149, § 1 et seq., Mass. Gen. Laws ch. 214, § 1B (Massachusetts right of privacy
law), the Massachusetts Maternity Leave Act, Mass. Gen. Laws ch. 149, § 105D, and the Massachusetts Small Necessities Leave Act, Mass. Gen. Laws ch. 149, § 52D, all as amended; all common law claims including, but not limited to, actions
in defamation, intentional infliction of emotional distress, breach of duty, misrepresentation, fraud, fraudulent transfer, wrongful discharge, and breach of contract (including, without limitation, any claims arising out of or related to the
Employment Agreement (as defined in the Letter Agreement)); all claims to any ownership interest in the Company, contractual or otherwise; all state and federal whistleblower claims to the maximum extent permitted by law; and any claim or damage
arising out of my employment with and/or separation from the Company (including a claim for retaliation) under any common law theory or any federal, state or local statute or ordinance not expressly referenced above; provided, however, that nothing
in this Release Agreement (a) prevents me from filing a charge with, cooperating with, or 

  
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Gatehouse Drive | Waltham, MA 02451 | P: 781-996-4300 | F: 844-894-CERU 

 

 
  

 
participating in any investigation or proceeding before, the Equal Employment Opportunity Commission or a state fair employment practices agency (except that I acknowledge that I may not recover
any monetary benefits in connection with any such charge, investigation, or proceeding, and I further waive any rights or claims to any payment, benefit, attorneys’ fees or other remedial relief in connection with any such charge, investigation
or proceeding). 
 2.    Continuing Obligations – I acknowledge and reaffirm my obligation to
keep confidential and not to use or disclose any and all non-public information concerning the Company that I acquired during the course of my employment with the Company, including any non-public information concerning the Company’s business affairs, business prospects, and financial condition, except as otherwise permitted by paragraph 7 below. Further, I acknowledge that I remain subject to
any and all continuing confidentiality and other obligations that I have pursuant to any previous agreement with the Company, including, but not limited to, the Invention and Non-Disclosure Agreement which I
executed in connection with my employment, and which remains in full force and effect. 

3.    Non-Disparagement – I understand and agree that, to the extent permitted by law and except as
otherwise permitted by paragraph 7 below, I will not, in public or private, make any false, disparaging, derogatory or defamatory statements, online (including, without limitation, on any social media, networking, or employer review site) or
otherwise, to any person or entity, including, but not limited to, any media outlet, industry group, financial institution or current or former employee, board member, consultant, client or customer of the Company, regarding the Company or any of
the other Released Parties, or regarding the Company’s business affairs, business prospects, or financial condition. 

4.    Cooperation – I agree that, to the extent permitted by law, I shall cooperate fully with
the Company in the investigation, defense or prosecution of any claims or actions which already have been brought, are currently pending, or which may be brought in the future against the Company by a third party or by or on behalf of the Company
against any third party, whether before a state or federal court, any state or federal government agency, or a mediator or arbitrator. My full cooperation in connection with such claims or actions shall include, but not be limited to, being
available to meet with the Company’s counsel, at reasonable times and locations designated by the Company, to investigate or prepare the Company’s claims or defenses, to prepare for trial or discovery or an administrative hearing,
mediation, arbitration or other proceeding and to act as a witness when requested by the Company. I further agree that, to the extent permitted by law, I will notify the Company promptly in the event that I am served with a subpoena (other
than a subpoena issued by a government agency), or in the event that I am asked to provide a third party (other than a government agency) with information concerning any actual or potential complaint or claim against the Company. 

5.    Return of Company Property and Information – I agree that on the Separation Date (as defined in
the Letter Agreement), or earlier upon request by the Company, I will return to the Company all keys, files, records (and copies thereof), equipment (including, but not limited to, computer hardware, software and printers, flash drives and storage
devices, wireless handheld devices, cellular phones, tablets, etc.), Company identification, and any other Company-owned property and information in my possession or control and that I will leave intact all electronic Company documents and
information, including but not limited to those documents and that information that I developed or helped to develop during my employment, and I will not retain any copies. I further confirm that I will, on the Separation Date, or earlier upon
request by the Company, cancel all accounts for my benefit, if any, in the Company’s name, including but not limited to, credit cards, telephone charge cards, cellular phone accounts, and computer accounts. 

  
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Gatehouse Drive | Waltham, MA 02451 | P: 781-996-4300 | F: 844-894-CERU 

 

 
  

 6.    Confidentiality – I understand and agree that,
to the extent permitted by law and except as otherwise permitted by paragraph 7 below, the terms and contents of this Release Agreement and the Letter Agreement, and the contents of the negotiations and discussions resulting in this Release
Agreement and the Letter Agreement, shall be maintained as confidential by me and my agents and representatives and shall not be disclosed except as otherwise agreed to in writing by the Company. 

7.    Scope of Disclosure Restrictions – I understand that nothing in this Release Agreement or
elsewhere prohibits me from communicating with government agencies about possible violations of federal, state, or local laws or otherwise providing information to government agencies, filing a complaint with government agencies, or participating in
government agency investigations or proceedings. I understand that I am not required to notify the Company of any such communications; provided, however, that nothing herein authorizes the disclosure of information I obtained through a communication
that was subject to the attorney-client privilege. Further, notwithstanding my confidentiality and nondisclosure obligations, I understand that I am hereby being advised as follows pursuant to the Defend Trade Secrets Act: “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. 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.” 

8.    Amendment and Waiver; Successors and Assigns – This Release Agreement may not be modified
in any manner, except by an instrument in writing of concurrent or subsequent date signed by duly authorized representatives of the Company. This Release Agreement is binding upon me and my agents, assigns, heirs, executors, successors and
administrators, and any party acting on my behalf or by or through myself or my rights, and shall inure to the benefit of the Company’s agents, assigns, successors and administrators. No delay or omission by the Company in exercising any right
under this Release Agreement shall operate as a waiver of that or any other right. A waiver or consent given by the Company on any one occasion shall be effective only in that instance and shall not be construed as a bar to or waiver of any right on
any other occasion. 
 9.    Validity – Should any provision of this Release Agreement be declared or
be determined by any court of competent jurisdiction to be illegal or invalid, the validity of the remaining parts, terms or provisions shall not be affected thereby and said illegal or invalid part, term or provision shall be deemed not to be a
part of this Release Agreement. 
 10.    Nature of Agreement – I understand and agree that
this Release Agreement does not constitute an admission of liability or wrongdoing on the part of the Company. 

  
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Gatehouse Drive | Waltham, MA 02451 | P: 781-996-4300 | F: 844-894-CERU 

 

 
  

 11.    Acknowledgments and Voluntary Assent – I
acknowledge that I have been given a reasonable amount of time to consider this Release Agreement. I affirm that no other promises or agreements of any kind have been made to or with me by any person or entity whatsoever to cause me to sign this
Release Agreement, and that I fully understand the meaning and intent of this Release Agreement. I state and represent that I have had an opportunity to fully discuss and review the terms of this Release Agreement with an attorney. I further state
and represent that I have carefully read this Release Agreement, understand the contents herein, freely and voluntarily assent to all of the terms and conditions hereof, and sign my name of my own free act. 

12.    Applicable Law – This Release Agreement shall be interpreted and construed by the laws of the
Commonwealth of Massachusetts, without regard to conflict of laws provisions. I hereby irrevocably submit to and acknowledge and recognize the jurisdiction of the courts of the Commonwealth of Massachusetts, or if appropriate, a federal court
located in the Commonwealth of Massachusetts (which courts, for purposes of this Release Agreement, are the only courts of competent jurisdiction), over any suit, action or other proceeding arising out of, under or in connection with this Release
Agreement or the subject matter hereof. 
 13.    Entire Agreement – This Release Agreement, together
with the Letter Agreement, contains and constitutes the entire understanding and agreement between the parties hereto with respect to the subject matter thereof and cancels any and all previous oral and written negotiations, agreements, and
commitments in connection therewith. 
 14.    Tax Acknowledgement – In connection with the Retention
Amount, Health Assistance Payment and CIC Bonus (to the extent payable) described in the Letter Agreement, I understand that the Company shall withhold and remit to the tax authorities the amounts required under applicable law, and that I shall be
responsible for all applicable taxes with respect to such payments and benefits under applicable law. I further acknowledge that I am not relying upon the advice or representation of the Company with respect to the tax treatment of any payments or
benefits described in the Letter Agreement. 
 I hereby agree to the terms and conditions set forth above. 

 

					
	/s/ Scott
Eliasof                                        
        	 		 	March 19,
2017                                        

	Scott Eliasof	 		 	Date

 To be returned in a timely manner as set forth in the Letter Agreement. 

  
 Cerulean Pharma Inc. | 35
Gatehouse Drive | Waltham, MA 02451 | P: 781-996-4300 | F: 844-894-CERU 

 

 
  

 EXHIBIT B 

REAFFIRMATION OF RELEASE OF CLAIMS AGREEMENT 

I hereby reaffirm as of the date below my agreement to all of the terms and conditions set in the forth in the Release of Claims Agreement attached as Exhibit
A to the letter agreement dated March 19, 2017 (the “Letter Agreement”) to which this Exhibit B is attached. I further agree that I have received payment for all wages due, all accrued but unused paid time off and any other amounts
due and owing through the Separation Date (as defined in the Letter Agreement). I further confirm that I have complied with all of the provisions of paragraph 5 of Exhibit A. 
  

					
	                                      
                                         
 	 		 	                                     
                                         
  
	Scott Eliasof	 		 	Date

  
 Cerulean Pharma Inc. | 35
Gatehouse Drive | Waltham, MA 02451 | P: 781-996-4300 | F: 844-894-CERU 

 

 
  

 EXHIBIT C 

Definition of Change in Control 

1.    “Change in Control” means an event or occurrence set forth in any one or more of subsections (i) through (iii)
below (including an event or occurrence that constitutes a Change in Control under one of such subsections but is specifically exempted from another such subsection), provided that such event constitutes a “change in control event” within
the meaning of Treasury Regulation Section 1.409A-3(i)(5)(i): 
 (i)    the
acquisition by an individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”) of beneficial ownership of any capital stock
of the Company if, after such acquisition, such Person beneficially owns (within the meaning of Rule 13d-3 promulgated under the Exchange Act) more than 50% of either (x) the then-outstanding shares of
common stock of the Company (the “Outstanding Company Common Stock”) or (y) the combined voting power of the then-outstanding securities of the Company entitled to vote generally in the election of directors (the “Outstanding
Company Voting Securities”); or 
 (ii)    the consummation of a merger, consolidation, reorganization,
recapitalization or share exchange involving the Company or a sale or other disposition of all or substantially all of the assets of the Company in one or a series of transactions (a “Business Combination”), unless, immediately following
such Business Combination, all or substantially all of the individuals and entities who were the beneficial owners of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such Business Combination
beneficially own, directly or indirectly, more than 50% of the then-outstanding shares of common stock and the combined voting power of the then-outstanding securities entitled to vote generally in the election of directors, respectively, of the
resulting or acquiring corporation in such Business Combination (which shall include, without limitation, a corporation which as a result of such transaction owns the Company or substantially all of the Company’s assets either directly or
through one or more subsidiaries) (such resulting or acquiring corporation is referred to herein as the “Acquiring Corporation”) in substantially the same proportions as their ownership, immediately prior to such Business Combination, of
the Outstanding Company Common Stock and Outstanding Company Voting Securities, respectively; or 
 (iii)    approval by
the stockholders of the Company of a complete or substantially complete liquidation or dissolution of the Company. 

  
 Cerulean Pharma Inc. | 35
Gatehouse Drive | Waltham, MA 02451 | P: 781-996-4300 | F: 844-894-CERU 

 

 
  

 AMENDED AND RESTATED EMPLOYMENT AGREEMENT 

THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the “Agreement”), made this 25th day of October, 2016, is entered into by Cerulean
Pharma Inc., a Delaware corporation with its principal place of business at 35 Gatehouse Drive, Waltham, MA 02145 (the “Company”), and Scott Eliasof (the “Employee”). 

The Company desires to continue to employ the Employee and the Employee desires to continue to be employed by the Company. In consideration of
the mutual covenants and promises contained herein, and other good and valuable consideration, the receipt and sufficiency of which are acknowledged by the parties hereto, the parties agree as follows: 

2.    Term of Employment. The Company hereby agrees to continue to employ the Employee and the Employee hereby
accepts continued employment with the Company, upon the terms set forth in this Agreement. There shall be no definite term of employment, and the Employee’s employment shall be at-will such that
both the Company and the Employee remain free to end the employment relationship for any reason, at any time, with or without notice. 

3.    Title and Capacity. The Employee shall serve as Senior Vice President and Chief Scientific Officer of the
Company and shall report to the Chief Executive Officer of the Company. The Employee shall be based at the Company’s headquarters in Waltham, Massachusetts. 

The Employee agrees to undertake the duties and responsibilities inherent in such position and such other duties and responsibilities as the
Chief Executive Officer shall from time to time reasonably assign to him. The Employee agrees to devote his entire business time, attention and energies to the business and interests of the Company. The Employee agrees to abide by the rules,
regulations, instructions, personnel practices and policies of the Company and any changes therein that may be adopted from time to time by the Company. 

  
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Gatehouse Drive | Waltham, MA 02451 | P: 781-996-4300 | F: 844-894-CERU 

 

 
  

 4.    Compensation and Benefits. 

4.1    Base Salary. The Company shall pay the Employee, in accordance with the Company’s regular payroll
practices, a base salary at the annualized rate of $320,000, subject to adjustment thereafter by the Board of Directors of the Company (the “Board”) or the Chief Executive Officer. 

4.2    Bonus. In addition to a base salary, the Employee will be eligible to receive a performance-based annual
bonus for each fiscal year in which he is employed by the Company in the capacity of Senior Vice President and Chief Scientific Officer. This bonus shall be based upon reasonably attainable annual quantitative and qualitative performance objectives
established by the Board or the Chief Executive Officer. The Employee’s annual bonus level target shall be set at 40 percent (40%) of the Employee’s base salary for the currently applicable fiscal year and shall be subject to
adjustment thereafter by the Board or the Chief Executive Officer. The Board or the Chief Executive Officer will determine, in its sole discretion, based upon its review of the achievement of the performance objectives for a given fiscal year,
whether (and in what amount) a bonus award is payable to the Employee. 
 To be eligible to receive a bonus award, the Employee must be an
active employee on the date any such bonuses are distributed. 
 4.3    Employee Benefits. The Employee shall be
entitled to participate in all benefit plans and programs that the Company establishes and makes available to its employees to the extent that the Employee is eligible under (and subject to the provisions of) the plan documents governing those
programs. The Employee shall be entitled to twenty (20) days paid vacation per year plus personal days and paid holidays generally offered by the Company to its employees, each to be administered in accordance with Company policy. 

  
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Gatehouse Drive | Waltham, MA 02451 | P: 781-996-4300 | F: 844-894-CERU 

 

 
  

 4.4    Reimbursement of Expenses. The Company shall reimburse the
Employee for all reasonable travel, entertainment and other expenses incurred or paid by the Employee in connection with, or related to, the performance of his duties, responsibilities or services under this Agreement in accordance with the
Company’s expense reimbursement policies as set forth in the Company’s employee handbook, a copy of which has been provided to the Employee. The reimbursement of expenses hereunder shall be subject to the terms and conditions set forth in
Section 18(e) of this Agreement. 
 4.5    Withholding. All salary, bonus and other compensation or benefits
payable to the Employee shall be subject to applicable withholdings and taxes. 
 5.    Payments Upon Resignation By
The Employee Without Good Reason or Termination By The Company For Cause. 
 5.1    Payment upon Voluntary
Resignation or Termination for Cause. If the Employee voluntarily resigns his employment other than for Good Reason (as defined in Section 4.2), or if the Company terminates the Employee for Cause (as defined in Section 4.3), the
Company shall pay the Employee all accrued and unpaid base salary through the Employee’s date of termination and any vacation that is accrued but unused as of such date. The Employee shall not be eligible for any severance or separation
payments (including, but not limited to, those described in Section 7 of this Agreement) or any continuation of benefits (other than those provided for under the Federal Consolidated Omnibus Budget Reconciliation Act (“COBRA”)), or
any other compensation pursuant to this Agreement or otherwise. The Employee also shall have such rights, if any, with respect to outstanding equity awards as may be provided under the agreement applicable to each. 

  
 Cerulean Pharma Inc. | 35
Gatehouse Drive | Waltham, MA 02451 | P: 781-996-4300 | F: 844-894-CERU 

 

 
  

 5.2    Definition of “Good Reason”.
For purposes of this Agreement, “Good Reason” means the occurrence, without the Employee’s written consent, of any of the events or circumstances set forth in clauses (a) through (c) below, provided, however, that an event
described in clauses (a) through (c) below shall not constitute Good Reason unless it is communicated in writing, within 90 days of the first occurrence of an event giving rise to the claim, by the Employee to the Board or its successor and
unless it is not corrected by the Company or its successor within thirty (30) days of the Company’s receipt of such written notice: 

(a)    the material diminution of the Employee’s duties, authority or responsibilities; 

(b)    a material reduction in the Employee’s base salary; or 

(c)    a change by the Company in the location at which the Employee performs his principal duties for the Company to a
new location that is both (i) outside a radius of 50 miles from the Employee’s principal residence and (ii) more than 30 miles from the location at which the Employee performed his principal duties for the Company. 

If the Company fails to timely correct an event of Good Reason, the termination of Executive’s employment shall become effective 60 days
after such notice is received by the Company. 
 5.3    Definition of “Cause”. For
purposes of this Agreement, “Cause” is defined as: (i) a good faith finding by the Company (excluding the Employee, if applicable) of (a) the Employee’s failure to (1) perform reasonably assigned lawful duties or
(2) comply with a lawful instruction of the Company so long as, in the case of (2), the instruction is consistent with the scope and responsibilities of the Employee’s position, or (b) the Employee’s dishonesty, willful
misconduct or gross negligence, or (c) the Employee’s substantial and material failure or refusal to perform according to, or to comply with, the policies, procedures or practices established by the Company or the Board and, in the case of
(a) or 

  
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Gatehouse Drive | Waltham, MA 02451 | P: 781-996-4300 | F: 844-894-CERU 

 

 
  

 
(c), the Employee has had ten (10) days written notice to cure his failure to so perform or comply; or (ii) the Employee’s indictment, or the entering of a guilty plea or plea of
“no contest” with respect to a felony or any crime involving moral turpitude. 
 6.    Termination
Without Cause; Resignation for Good Reason. If the Employee’s employment with the Company is terminated by the Company without Cause (as defined in Section 4.3), or by the Employee’s voluntary resignation for Good
Reason (as defined in Section 4.2), other than in connection with a Change in Control (as defined in Section 7.2(a)), then the Employee shall be paid all accrued and unpaid base salary and any accrued but unused vacation through the date of
termination. In addition, subject to the Employee’s execution and non-revocation of a binding severance and mutual release agreement in a form satisfactory to the Company (hereinafter, a “Severance
Agreement”) and subject to the terms and conditions of Section 18 of this Agreement, the Employee shall be eligible to receive the following separation benefits: 

5.1    (a) an amount equal to the product of (i) one twelfth (1/12) of the Employee’s then-current annualized
base salary (provided, however, that if Employee’s employment is terminated by the Employee’s voluntary resignation for Good Reason as a result of the Company’s material reduction of the Employee’s base salary, then the
Employee’s then-current annualized base salary shall refer to his base salary as in effect immediately before such material reduction took effect) and (ii) six (6), less any amounts required to be withheld under applicable law, which
amount shall be payable in six (6) substantially equal monthly installments, in accordance with the Company’s payroll practices in effect from time to time beginning on the Payment Commencement Date (as defined below); and (b) the
amount of any bonus for the prior year that was approved but not yet paid to the Employee at the time of the Employee’s termination of employment, less any amounts required to be withheld under applicable law, which amount shall be paid in a
manner and timing consistent with the payments to 

  
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Gatehouse Drive | Waltham, MA 02451 | P: 781-996-4300 | F: 844-894-CERU 

 

 
  

 
other similarly situated employees and consistent with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended, but in no event later than March 15 of the year
following the year of performance; provided, in both cases, that the Severance Agreement has been executed and any applicable revocation period with respect thereto has expired within sixty (60) days following the Employee’s date of
termination (such 60th day, the “Payment Commencement Date”); provided, however, that if the 60th day following the Employee’s
date of termination occurs in the calendar year following the year of termination, then the Payment Commencement Date shall be no earlier than January 1 of the year following the year of termination; and 

2.    5.2 upon the Employee’s termination from employment pursuant to this Section 5, the Company shall make
contributions to the cost of COBRA (Consolidated Omnibus Budget Reconciliation Act) coverage on behalf of the Employee and any applicable dependents for a period of six (6) months after the Employee’s termination if the Employee elects
COBRA coverage, and only for so long as such coverage continues in force; provided, however, that if the Employee commences new employment and is eligible for a new group health plan, the Company’s contributions toward COBRA coverage shall end
when the new employment begins. The cost of COBRA shall be determined on the same basis as the Company’s contribution to Company-provided health and dental insurance coverage in effect immediately before termination of the Employee’s
employment for an active employee with the same coverage elections. At the end of the six (6) month period, the Employee may continue such COBRA, if applicable, and shall be responsible for all premiums thereafter.. 

7.    Termination by Reason of Death or Disability. 

7.1     If the Employee’s employment with the Company is terminated by reason of the Employee’s death or
Disability (as defined below), then the Employee (or his estate, if applicable) shall be paid, within thirty (30) days of the date of the Employee’s death or determination of Disability, all accrued and unpaid base salary and any accrued
but unused vacation through the date of termination. 

  
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 7.2    For purposes of this Agreement, “Disability” shall mean
the Employee’s absence from the full-time performance of the Employee’s duties with the Company for 180 consecutive calendar days as a result of incapacity due to mental or physical illness which is determined to be total and permanent by
a physician selected by the Company or its insurers and acceptable to the Employee or the Employee’s legal representative. 

8.    Termination Following Change of Control. 

8.1    Benefits to Employee Upon a Change of Control Termination. In the event of a Change of Control Termination
(as defined in Section 7.2(c) below), the Employee shall be entitled to all accrued and unpaid base salary and any accrued but unused vacation through the date of termination. In addition, subject to the Employee’s execution and non-revocation of a binding severance and mutual release agreement in a form satisfactory to the Company (hereinafter, a “Severance Agreement”) and subject to the terms and conditions of Section 18 of
this Agreement, the Employee shall be eligible to receive the following separation benefits: 
 (a)    an amount equal
to the product of (i) one twelfth (1/12) of the Employee’s then-current annualized base salary (provided, however, that if Employee’s employment is terminated by the Employee’s voluntary resignation for Good Reason
as a result of the Company’s material reduction of the Employee’s base salary, then the Employee’s then-current annualized base salary shall refer to his base salary as in effect immediately before such material reduction took effect)
and (ii) six (6), less any amounts required to be withheld under applicable law, which amount shall be payable, in full and in a lump-sum cash payment on the Payment Commencement Date (as defined below);
provided, however, that if the Employee’s date of termination occurs prior to the closing of the Change 

  
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of Control, then the amount payable hereunder shall instead be paid in six (6) substantially equal monthly installments, in accordance with the Company’s payroll practices in effect
from time to time beginning on the Payment Commencement Date; 
 (b)    the amount of any bonus for the prior year that
was approved but not yet paid to the Employee at the time of the Employee’s termination of employment, less any amounts required to be withheld under applicable law, which amount shall be paid in a manner and timing consistent with the payments
to other similarly situated employees and consistent with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) but in no event later than March 15 of the year following the year of
performance; provided, with respect to the separation benefits described in both Sections 7.1(a) and (b), that the Severance Agreement has been executed and any applicable revocation period with respect thereto has expired within sixty
(60) days following the Employee’s date of termination (such 60th day, the “Payment Commencement Date”), provided, however, that if the 60th day following the Employee’s date of termination occurs in the calendar year following the year of termination, then the Payment Commencement Date shall be no earlier than January 1 of the
year following the year of termination; 
 (c)    upon the Employee’s termination from employment pursuant to this
Section 7, the Company shall make contributions to the cost of COBRA (Consolidated Omnibus Budget Reconciliation Act) coverage on behalf of the Employee and any applicable dependents for a period of six (6) months after the Employee’s
termination if the Employee elects COBRA coverage, and only for so long as such coverage continues in force; provided, however, that if the Employee commences new employment and is eligible for a new group health plan, the
Company’s contributions toward COBRA coverage shall end when the new employment begins. The cost of COBRA shall be determined on the same basis as the Company’s contribution to Company-provided health and dental insurance coverage in

  
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effect immediately before termination of the Employee’s employment for an active employee with the same coverage elections. At the end of the six (6) month period, the Employee may
continue such COBRA, if applicable, and shall be responsible for all premiums thereafter; and 
 (d)    full and
immediate vesting of any equity awards subject to time-based vesting that are outstanding at the time of the termination of the Employee’s employment. Any of the Employee’s outstanding awards at the time of the termination will remain
exercisable following termination to the extent set forth in the applicable award agreements. 
 8.2    Key
Definitions. As used herein, the following terms shall have the following respective meanings: 

(a)    “Change in Control” means an event or occurrence set forth in any one or more of subsections
(i) through (iii) below (including an event or occurrence that constitutes a Change in Control under one of such subsections but is specifically exempted from another such subsection), provided that such event constitutes a “change in
control event” within the meaning of Treasury Regulation Section 1.409A-3(i)(5)(i): 

(i)    the acquisition by an individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”) of beneficial ownership of any capital stock of the Company if, after such acquisition, such Person beneficially owns (within the meaning of Rule 13d-3 promulgated under the Exchange Act) more than 50% of either (x) the then-outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”) or (y) the combined
voting power of the then-outstanding securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); or 

  
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 (ii)    the consummation of a merger, consolidation, reorganization,
recapitalization or share exchange involving the Company or a sale or other disposition of all or substantially all of the assets of the Company in one or a series of transactions (a “Business Combination”), unless, immediately following
such Business Combination, all or substantially all of the individuals and entities who were the beneficial owners of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such Business Combination
beneficially own, directly or indirectly, more than 50% of the then-outstanding shares of common stock and the combined voting power of the then-outstanding securities entitled to vote generally in the election of directors, respectively, of the
resulting or acquiring corporation in such Business Combination (which shall include, without limitation, a corporation which as a result of such transaction owns the Company or substantially all of the Company’s assets either directly or
through one or more subsidiaries) (such resulting or acquiring corporation is referred to herein as the “Acquiring Corporation”) in substantially the same proportions as their ownership, immediately prior to such Business Combination, of
the Outstanding Company Common Stock and Outstanding Company Voting Securities, respectively; or 
 (iii)    approval
by the stockholders of the Company of a complete or substantially complete liquidation or dissolution of the Company. 

(b)    “Change in Control Date” means the first date during the period of time the Employee is employed
pursuant to this Agreement on which a Change in Control occurs. Anything in this Agreement to the contrary notwithstanding, if (a) a Change in Control occurs, (b) the Employee’s employment with the Company is terminated prior to the
date on which the Change in Control occurs, and (c) it is reasonably demonstrated by the Employee that such termination of employment (i) was at the request of a third party who has taken steps reasonably calculated to effect a Change in
Control or 

  
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(ii) otherwise arose in connection with or in anticipation of a Change in Control, then for all purposes of this Agreement the “Change in Control Date” shall mean the date immediately
prior to the date of such termination of employment. 
 (c)    Change of Control Termination occurs where the
Employee is terminated without Cause (as defined in Section 4.3) or resigns for Good Reason (as defined in Section 4.2), in either case within twelve (12) months following the Change in Control Date. 

9.    Mitigation. The Employee shall not be required to mitigate the amount of any payment or benefits provided for
in Section 7 by seeking other employment or otherwise except with regard to medical and dental coverage if new employment is obtained. 

10.    Survival. The provisions of Section 7 shall survive the termination of this Agreement for any reason.

 11.    Invention and Non-Disclosure Agreement. The Employee and the
Company acknowledge (a) that they have entered into an Invention and Non-Disclosure and (b) the continuing effectiveness of such Invention and Non-Disclosure
Agreement. 
 12.    Notices. Any notices delivered under this Agreement shall be deemed duly delivered three
(3) business days after it is sent by registered or certified mail, return receipt requested, postage prepaid, or one (1) business day after it is sent for next-business day delivery signature required via a reputable nationwide overnight
courier service, to the Company’s address set forth in the introductory paragraph hereto or to the home address of the Employee then on file with the Company, as applicable. Either party may change the address to which notices are to be
delivered by giving notice of such change to the other party in the manner set forth in this Section 11. 

  
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 13.    Pronouns. Whenever the context may require, any pronouns
used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular forms of nouns and pronouns shall include the plural, and vice versa. 

14.    Entire Agreement. This Agreement and all exhibits hereto constitute the entire agreement between the parties
and supersedes all prior agreements and understandings, whether written or oral, relating to the subject matter of this Agreement. 

15.    Amendment. This Agreement may be amended or modified only by a written instrument executed by both the
Company and the Employee. 
 16.    Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the Commonwealth of Massachusetts (without reference to the conflict of laws provisions thereof). Any action, suit or other legal proceeding arising under or relating to any provision of this Agreement shall be commenced
only in a court of the Commonwealth of Massachusetts (or, if appropriate, a federal court located within the Commonwealth of Massachusetts), and the Company and the Employee each consents to the jurisdiction of such a court. The Company and the
Employee each hereby irrevocably waive any right to a trial by jury in any action, suit or other legal proceeding arising under or relating to any provision of this Agreement. 

17.    Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of both parties and
their respective successors and assigns, including any corporation with which or into which the Company may be merged or which may succeed to its assets or business; provided, however, that the obligations of the Employee are personal
and shall not be assigned by him. 
 18.    Acknowledgment. The Employee states and represents that he has had an
opportunity to fully discuss and review the terms of this Agreement with an attorney. The Employee further states and represents that he has carefully read this Agreement, understands the contents herein, freely and voluntarily assents to all of the
terms and conditions hereof, and signs his name of his own free act. 

  
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 19.    Payments Subject to Section 409A. Subject to the provisions
in this Section 18, any severance payments or benefits under this Agreement shall begin only upon the date of the Employee’s “separation from service” (determined as set forth below) which occurs on or after the date of
termination of the Employee’s employment. The following rules shall apply with respect to distribution of the payments and benefits, if any, to be provided to the Employee under this Agreement: 

(a)    It is intended that each installment of the severance payments and benefits provided under this Agreement shall be
treated as a separate “payment” for purposes of Section 409A of the Code and the guidance issued thereunder (“Section 409A”). Neither the Company nor the Employee shall have the right to accelerate or defer the delivery of any
such payments or benefits except to the extent specifically permitted or required by Section 409A. 
 (b)    If, as of
the date of the Employee’s “separation from service” from the Company, the Employee is not a “specified employee” (within the meaning of Section 409A), then each installment of the severance payments and benefits shall be
made on the dates and terms set forth in this Agreement. 
 (c)    If, as of the date of the Employee’s
“separation from service” from the Company, the Employee is a “specified employee” (within the meaning of Section 409A), then: 

(i)    Each installment of the severance payments and benefits due under this Agreement that, in accordance with the
dates and terms set forth herein, will in all circumstances, regardless of when the separation from service occurs, be paid within the short-term deferral period (as defined under Section 409A) shall be treated as a short-term deferral within the
meaning of Treasury Regulation § 1.409A-1(b)(4) to the maximum extent permissible under Section 409A and shall be paid in the manner (and at the times) set forth in this agreement; and 

  
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 (ii)    Each installment of the severance payments and benefits due
under this Agreement that is not described in paragraph c(i) above and that would, absent this subsection, be paid within the six-month period following the Employee’s “separation from service”
from the Company shall not be paid until the date that is six months and one day after such separation from service (or, if earlier, the Employee’s death), with any such installments that are required to be delayed being accumulated during the six-month period and paid in a lump sum on the date that is six months and one day following the Employee’s separation from service and any subsequent installments, if any, being paid in accordance with the
dates and terms set forth herein; provided, however, that the preceding provisions of this sentence shall not apply to any installment of severance payments and benefits if and to the maximum extent that that such installment is deemed
to be paid under a separation pay plan that does not provide for a deferral of compensation by reason of the application of Treasury Regulation § 1.409A-1(b)(9)(iii) (relating to separation pay upon
an involuntary separation from service). Any installments that qualify for the exception under Treasury Regulation § 1.409A-1(b)(9)(iii) must be paid no later than the last day of the Employee’s
second taxable year following the taxable year in which the separation from service occurs. 
 (d)    The determination
of whether and when the Employee’s separation from service from the Company has occurred shall be made and in a manner consistent with, and based on the presumptions set forth in, Treasury Regulation §
1.409A-1(h). 
 (e)    All reimbursements and
in-kind benefits provided under this Agreement shall be made or provided in accordance with the requirements of Section 409A to the extent that such reimbursements or
in-kind benefits are subject to Section 409A, including, where applicable, the 

  
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requirements that (i) any reimbursement is for expenses incurred during the Employee’s lifetime (or during a shorter period of time specified in this Agreement), (ii) the amount of
expenses eligible for reimbursement during a calendar year may not affect the expenses eligible for reimbursement in any other calendar year, (iii) the reimbursement of an eligible expense will be made on or before the last day of the calendar
year following the year in which the expense is incurred and (iv) the right to reimbursement is not subject to set off or liquidation or exchange for any other benefit. 

(f)    Notwithstanding anything herein to the contrary, the Company shall have no liability to the Employee or to any
other person if the payments and benefits provided hereunder that are intended to be exempt from or compliant with Section 409A are not so exempt or compliant. 

20.    Miscellaneous. 

20.1    No delay or omission by the Company in exercising any right under this Agreement shall operate as a waiver of that
or any other right. A waiver or consent given by the Company on any one occasion shall be effective only in that instance and shall not be construed as a bar to or waiver of any right on any other occasion. 

20.2    The captions of the sections of this Agreement are for convenience of reference only and in no way define, limit
or affect the scope or substance of any section of this Agreement. 
 20.3    In case any provision of this Agreement
shall be invalid, illegal or otherwise unenforceable, the validity, legality and enforceability of the remaining provisions shall in no way be affected or impaired thereby. 

  
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Gatehouse Drive | Waltham, MA 02451 | P: 781-996-4300 | F: 844-894-CERU 

 

 
  

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
set forth above. 
  

			
	CERULEAN PHARMA INC.
		
	By:	 	 /s/ Christopher D. T Guiffre

	Title:	 	President & CEO
	
	EMPLOYEE
	
	 /s/ Scott Eliasof

	Scott Eliasof, Ph.D.

  
 Cerulean Pharma Inc. | 35
Gatehouse Drive | Waltham, MA 02451 | P: 781-996-4300 | F: 844-894-CERU

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