Document:

Exhibit
10.14

 

FORM OF

 

AmpliPhi
Biosciences corporation

 

2012 stock
incentive plan

 

NOTICE
OF STOCK OPTION GRANT

 

________________

Grantee

 

You have been granted an option to purchase
Common Stock of Ampliphi Biosciences Corporation, a Washington corporation (“Company”), as follows:

 

	Date of Grant:	 	_______________
	 	 	 
	Exercise Price Per Share:	 	$_______________
	 	 	 
	Total Number of Shares:	 	_______________
	 	 	 
	Total Exercise Price:	 	$_______________
	 	 	 
	Type of Option:	 	[Nonstatutory Stock Option] [Incentive Stock Option]
	 	 	 
	Expiration Date:	 	_______________
	 	 	 
	
        Vesting/Exercise

        Schedule:
	 	So long as your Service does not terminate, the Shares underlying this Option shall vest and become exercisable in accordance
    with the following schedule: [6.25%] of the Total Number of Shares shall vest and become exercisable on [the
    third month anniversary of the Date of Grant] and [6.25%] of the Total Number of Shares shall vest and
    become exercisable on the [first business] day of each [three (3) month period]
    thereafter.
	 	 	 
	Termination Period:	 	You may exercise this Option for ninety (90) days after termination of your Service except as set out in Section 4 of the Stock Option Agreement (but in no event later than the Expiration Date set forth above).  You are responsible for keeping track of these exercise periods following the termination of your Service for any reason.  The Company will not provide further notice of such periods.
	 	 	 
	Transferability:	 	You may not transfer this Option.

 

Unless you affirmatively refuse the offer
of this Option, in writing, within thirty (30) days of the date of this Option, you will be deemed to have accepted this Option
under the terms and conditions provided in this Notice and the Ampliphi Biosciences Corporation 2012 Stock Incentive Plan and Stock
Option Agreement, both of which are attached to and made a part of this document.

 

    	 

    	 

    

 

By accepting this Option, you agree and
acknowledge that your rights to any Shares underlying this Option will be earned only as you provide services to the Company, a
Parent, a Subsidiary, or an Affiliate over time, that the grant of this Option is not as consideration for services you rendered
to the Company, a Parent, a Subsidiary, or an Affiliate prior to your first vest date, and that nothing in this Notice or the attached
documents confers upon you any right to continue your employment or consulting relationship with the Company, a Parent, a Subsidiary,
or an Affiliate for any period of time, nor does it interfere in any way with your right or the Company’s, Parent’s,
Subsidiary’s, or Affiliate’s right to terminate that relationship at any time, for any reason, with or without cause.

 

The grant of this Option is a one-time benefit
and does not create any contractual or other right to receive a grant of additional Options or other Awards under the Plan or other
benefits in lieu of additional Options or other Awards in the future.  The grant of future Options or any other Awards under
the Plan, if any, will be at the sole discretion of the Company, including, but not limited to, the timing of any grant, the number
of Shares subject to the Options or Awards, the vesting provisions and the exercise price, if any.  The future value of the
underlying Shares is unknown and cannot be predicted with certainty.  If the underlying Shares do not increase in value, this
Option will have no value.

 

The Plan is discretionary in nature and
the Company may amend, cancel or terminate the Plan at any time.

 

Your participation in the Plan is voluntary. 
The value of this Option is an extraordinary item of compensation outside the scope of your employment contract, if any. 
As such, the Option is not part of normal or expected compensation for purposes of calculating any severance, resignation, redundancy,
end of service payments, bonuses, long-service awards, pension or retirement benefits or similar payments.

 

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Ampliphi
Biosciences corporation

 

2012 stock
incentive plan

 

STOCK
OPTION AGREEMENT

 

1.          Grant
of Option. Ampliphi Biosciences Corporation, a Washington corporation (the “Company”), hereby grants
to __________________ (“Grantee”), an option (the “Option”) to purchase the total number
of shares of Common Stock (the “Shares”) set forth in the Notice of Stock Option Grant (the “Notice”),
at the exercise price per Share set forth in the Notice (the “Exercise Price”) subject to the terms, definitions
and provisions of the Ampliphi Biosciences Corporation 2012 Stock Incentive Plan (the “Plan”) adopted by the
Company, which is incorporated in this Agreement by reference. Unless otherwise defined in this Agreement, the terms used in this
Agreement shall have the meanings defined in the Plan.

 

2.          Exercise
of Option. This Option shall be exercisable during its term in accordance with the Vesting/Exercise Schedule set out in
the Notice and with the provisions of Section 6 of the Plan as follows:

 

(a)          Right
to Exercise.

 

(i)          This
Option may not be exercised for a fraction of a share.

 

(ii)         In
the event of Grantee’s death, Disability or other termination of Service, the exercisability of this Option is governed by
Section 4 below, subject to the limitations contained in this Section 2.

 

(iii)        In
no event may this Option be exercised after the Expiration Date set forth in the Notice.

 

(b)          Method
of Exercise.

 

(i)          This
Option shall be exercisable by execution and delivery of a Notice of Exercise form which may be obtained from the Company and shall
state Grantee’s election to exercise this Option, the number of Shares in respect of which this Option is being exercised,
and such other representations and agreements as to the holder’s investment intent with respect to such Shares as may be
required by the Company pursuant to the provisions of the Plan. Such written notice shall be signed by Grantee and shall be delivered
to the Company by such means as are determined by the Company in its discretion to constitute adequate delivery. The written notice
shall be accompanied by payment of the aggregate Exercise Price for the purchased Shares.

 

(ii)         As
a condition to the exercise of this Option and as further set forth in Section 14 of the Plan, Grantee agrees to make adequate
provision for federal, state or other tax withholding obligations or any other withholding obligations, if any, which arise upon
the grant, vesting or exercise of this Option, or disposition of Shares, whether by withholding, direct payment to the Company,
or otherwise.

 

    	 

    	 

    

 

(iii)        the
Company is not obligated, and will have no liability for failure, to issue or deliver any Shares upon exercise of this Option unless
such issuance or delivery would comply with the Applicable Laws, with such compliance determined by the Company in consultation
with its legal counsel.  This Option may not be exercised if the issuance of such Shares upon such exercise or the method
of payment of consideration for such Shares would constitute a violation of any Applicable Laws, including any applicable U.S.
federal or state securities laws or any other law or regulation, including any rule under Part 221 of Title 12 of the
Code of Federal Regulations as promulgated by the Federal Reserve Board. As a condition to the exercise of this Option, the Company
may require Grantee to make any representation and warranty to the Company as may be required by the Applicable Laws. Assuming
such compliance, for income tax purposes the Shares shall be considered transferred to Grantee on the date on which this Option
is exercised with respect to such Shares.

 

(iv)        Subject
to compliance with Applicable Laws, this Option shall be deemed to be exercised upon receipt by the Company of the appropriate
Notice of Exercise accompanied by the aggregate Exercise Price and the satisfaction of any applicable withholding obligations.

 

3.          Method
of Payment. Payment of the Exercise Price shall be by any of the following, or a combination of the following, at the election
of Grantee:

 

(a)          cash
or check;

 

(b)          by
Cashless Exercise; or

 

(c)          by
such other means as is permitted by the Committee and the Plan.

 

4.          Termination
of Relationship. Following the date of termination of Grantee’s Service for any reason (the “Termination
Date”), Grantee may exercise this Option only as set forth in the Notice and this Section 4. If Grantee does not exercise
this Option within the Termination Period set forth in the Notice or the termination periods set forth below, this Option shall
terminate in its entirety. In no event, may any Option be exercised after the Expiration Date of this Option as set forth in
the Notice.

 

(a)          Termination.
In the event of termination of Grantee’s Service other than for Cause, or as a result of Grantee’s Disability or
death, Grantee may, to the extent Grantee is vested in the Option Shares, exercise this Option during the Termination Period set
forth in the Notice.

 

(b)          Termination
upon Disability of Grantee.  In the event of termination of Grantee’s Service as a result of Grantee’s Disability,
Grantee may, but only within twelve (12) months following the Termination Date, exercise this Option to the extent Grantee
is vested in the Option Shares.

 

(c)          Death
of Grantee. In the event of termination of Grantee’s Service as a result of Grantee’s death, or in the
event of Grantee’s death within ninety (90) days following Grantee’s Termination Date, this Option may be exercised
at any time within twelve (12) months following Grantee’s Termination Date by Grantee’s estate or by a person who acquired
the right to exercise this Option by bequest or inheritance, but only to the extent Grantee is vested in the Option Shares.

 

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(d)          Termination
for Cause. In the event of termination of Grantee’s Service for Cause, this Option (whether vested or unvested) shall
terminate immediately in its entirety.

 

(e)          [Change
in Control. Notwithstanding any provision to the contrary, in the event of termination of Grantee’s Service without
Cause or for Good Reason within twelve (12) months following a Change in Control, this Option, to the extent assumed (or the applicable
substitute award, if any) shall vest in full and Grantee shall have the right to exercise this Option (or the applicable substitute
award, if any) for ninety (90) days following the Termination Date. For purposes of this Section 2, “Good Reason”
means the occurrence of any of the following events or conditions (without Grantee’ written consent) and the failure of the
Company (or its successor) to cure such event or condition within Grantee’s thirty (30) day written notice:

 

(i)          a
change in Grantee’s status, title, position or responsibilities (including reporting responsibilities) that, in Grantee’s
reasonable judgment, represents a substantial reduction in the status, title, position or responsibilities as in effect immediately
prior thereto; the assignment to Grantee of any duties or responsibilities that, in Grantee’s reasonable judgment, are materially
inconsistent with such status, title, position or responsibilities; or any removal of Grantee from or failure to reappoint or reelect
Grantee to any of such positions, except in connection with termination of Grantee’s Service for Cause or Good Reason, or
as a result of Grantee’s Disability or death;

 

(ii)         a
substantial reduction in Grantee’s annual base salary;

 

(iii)        a
requirement Grantee be based at any place outside a 35-mile radius of Grantee’s place of Service prior to the Change in Control,
except for reasonably required travel on the Company’s (or its successor’s) business that is not materially greater
than such travel requirements prior to the Change in Control;

 

(iv)        a
failure to (x) continue in effect any material compensation or benefit plan (or the substantial equivalent thereof) in which Grantee
was participating at the time of the Change in Control, or (y) provide Grantee with compensation and benefits substantially equivalent
(in terms of benefit levels and/or reward opportunities) to those provided under each material employee benefit plan, program and
practice as in effect immediately prior to the Change in Control; or

 

(v)         a
material breach by the Company (or its successor) of its obligations to Grantee under the Plan (or any substantially equivalent
plan of the Company’s successor).]

 

5.          Non-Transferability
of Option. This Option may not be transferred in any manner otherwise than by will or by the laws of descent or distribution
and may be exercised during the lifetime of Grantee only by him or her. The terms of this Option shall be binding upon the executors,
administrators, heirs, successors and assigns of Grantee.

 

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6.          Effect
of Agreement. Grantee acknowledges receipt of a copy of the Plan and represents that he or she is familiar with the terms
and provisions thereof (and has had an opportunity to consult counsel regarding the Option terms), and hereby accepts this Option
and agrees to be bound by its contractual terms as set forth herein and in the Plan. Grantee hereby agrees to accept as binding,
conclusive and final all decisions and interpretations of the Plan Administrator regarding any questions relating to this Option.
In the event of a conflict between the terms and provisions of the Plan and the terms and provisions of the Notice and this Agreement,
the Plan terms and provisions shall prevail.

 

7.          Data
Authorization.  Grantee acknowledges and consents to the collection, use, processing and transfer of personal data
as described in this Section.  The Company, its related entities, and Grantee's employer hold certain personal information
about Grantee, including Grantee’s name, home address and telephone number, date of birth, social security number or other
employee identification number, salary, nationality, job title, any shares of stock or directorships held in the Company, details
of all Options or any other entitlement to Shares awarded, canceled, purchased, vested, unvested or outstanding in Grantee’s
favor, for the purpose of managing and administering the Plan (“Data”).  The Company and/or its related
entities will transfer Data amongst themselves as necessary for the purpose of implementation, administration and management of
Grantee’s participation in the Plan, and the Company and/or any of its related entities may each further transfer Data to
any third parties assisting the Company in the implementation, administration and management of the Plan.  These recipients
may be located in the European Economic Area, or elsewhere, such as the United States.  Grantee authorizes them to receive,
possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing
Grantee’s participation in the Plan, including any requisite transfer of such Data as may be required for the administration
of the Plan and/or the subsequent holding of Shares on Grantee’s behalf to a broker or other third party with whom Grantee
may elect to deposit any Shares acquired pursuant to the Plan.  Grantee may, at any time, review Data, require any necessary
amendments to it or withdraw the consents herein in writing by contacting the Company; however, withdrawing Grantee’s consent
may affect Grantee’s ability to participate in the Plan.

 

8.          Miscellaneous.

 

(a)          Governing
Law. This Agreement and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto
shall be governed, construed and interpreted in accordance with the laws of the State of Washington, without giving effect to principles
of conflicts of law. Further, the Plan is governed by and subject to U.S. law and the interpretation of the Plan and Grantee’s
rights under the Plan will be governed by provisions of U.S. law.

 

(b)          Entire
Agreement; Enforcement of Rights. This Agreement, together with the Notice of Stock Option Grant to which this Agreement
is attached and the Plan, sets forth the entire agreement and understanding of the parties relating to the subject matter herein
and therein and merges all prior discussions between the parties. Except as contemplated under the Plan, no modification of or
amendment to this Agreement, nor any waiver of any rights under this Agreement, shall be effective unless in writing signed by
the parties to this Agreement. The failure by either party to enforce any rights under this Agreement shall not be construed as
a waiver of any rights of such party.

 

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(c)          Severability.
If one or more provisions of this Agreement are held to be unenforceable under Applicable Laws, the parties agree to renegotiate
such provision in good faith. In the event that the parties cannot reach a mutually agreeable and enforceable replacement for such
provision, then (i) such provision shall be excluded from this Agreement, (ii) the balance of this Agreement shall be
interpreted as if such provision were so excluded and (iii) the balance of this Agreement shall be enforceable in accordance
with its terms.

 

(d)          Notices.
Any notice required or permitted by this Agreement shall be in writing and shall be deemed sufficient when delivered personally
or sent by telegram or fax or forty-eight (48) hours after being deposited in the mail, as certified or registered mail, with postage
prepaid, and addressed to the party to be notified at such party’s address as set forth below or as subsequently modified
by written notice.

 

(e)          Successors
and Assigns. The rights and benefits of this Agreement shall inure to the benefit of, and be enforceable by the Company’s
successors and assigns. The rights and obligations of Grantee under this Agreement may not be assigned without the prior written
consent of the Company.

 

(f)          Electronic
Delivery. The Company may, in its sole discretion, decide to deliver any documents related to this Option and Grantee’s
participation in the Plan or future Awards that may be granted under the Plan by electronic means or to request Grantee’s
consent to participate in the Plan by electronic means. Grantee hereby consents to receive such documents by electronic delivery
and, if requested, to agree to participate in the Plan through an on-line or electronic system established and maintained by the
Company or a third party designated by the Company.

 

    	5Exhibit 10.15

 

EMPLOYMENT
AGREEMENT

 

THIS
AGREEMENT (the “Agreement”) is made and entered into effective as of October 19, 2011 by and between AmpliPhi
Biosciences Corporation, a Delaware corporation, having an address of
601 Union Street, Suite 4200, Seattle, WA 98101 (the “Company”), and Mr. Philip
J. Young (the “Executive”). 

 

In consideration of
the mutual promises, terms, provisions and conditions set forth in this Agreement, the parties hereby agree as follows:

 

1.          Employment.
Subject to the terms and conditions set forth in this Agreement, the Company hereby offers and the Executive hereby accepts employment
with the Company.

 

2.          Term.
The Executive’s employment hereunder shall commence effective as of October 19, 2011 (the “Effective Date”) and
shall continue until terminated on the terms and conditions set forth herein. The term of this Agreement is hereafter referred
to as “the term of this Agreement” or “the term hereof.”

 

3.          Capacity
and Performance; Location.

 

(a)          During
the term hereof, the Executive shall serve as the President and Chief Executive Officer of the Company. In addition, and without
further compensation, the Executive shall be appointed to serve as a member of the Board of Directors of the Company (the “Board”).
So long as Executive remains the Chief Executive Officer of the Company the Company will recommend to its members or stockholders,
as applicable, that Executive be elected to the Board at each meeting of stockholders or in connection with each action by written
consent pursuant to which Executive may be elected.

 

(b)          During
the term hereof, the Executive shall be employed by the Company on a full-time basis, shall have all powers and duties consistent
with his position, subject to the direction and control of the Board and shall perform such other duties and responsibilities on
behalf of the Company as may reasonably be designated from time to time by the Board. The Executive shall require the approval
of the Board to pursue or enter into any transaction or group of related transactions that are not in the ordinary course of business
and would be material to the Company.

 

(c)          During
the term hereof, the Executive shall devote sufficient time and his best efforts, business judgment, skill and knowledge to the
advancement of the business and interests of the Company and to the discharge of his duties and responsibilities hereunder. The
Executive shall comply with all written policies of the Company in effect from time to time and shall observe and implement those
resolutions and directives of the Board as made or issued from time to time. Without the prior approval of the Board, the Executive
shall not engage in any other business activity or serve in any industry, trade, professional, governmental or academic position
during the term of this Agreement; provided, that the Executive shall be entitled to continue to serve on the board of directors
of Osteologix Holdings Ltd, Develco Pharma, Osteologix Holdings or their successors, provided that such service does not interfere
with his performance of his duties hereunder.

 

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(d)          It
is intended that the Company’s principal executive office shall be located in the area of Richmond, Virginia. If, after the
Company's principal executive office is located in the area of Richmond, Virginia, it is determined that the principal office location
of the Company shall be relocated, the Company shall provide the Executive with ninety (90) days’ prior written notice and
upon delivery of such notice, the Company and the Executive shall reasonably and in good faith negotiate a fair and equitable relocation
package. Following such notice period and the determination of the location of the Company’s principal executive office,
the Executive shall be based in and work primarily in and from the Company’s principal executive office. It is the expectation
of the Company that the Company’s principal executive office will remain in the Richmond, Virginia area in the absence of
a compelling business reason to locate it elsewhere.

 

(e)          Upon
reasonable notice, the Executive shall be available to participate in all meetings of the Board. The Company will reimburse the
Executive for all reasonable and customary travel and living expenses (e.g., hotel and meals), if any, incurred in connection with
such meetings and the Executive shall provide the Company with reasonable documentation of such expenses.

 

4.          Compensation
and Benefits. As compensation for all services performed by the Executive hereunder during the term hereof, and subject to
performance of the Executive’s duties and obligations pursuant to this Agreement:

 

(a)          Base
Salary. Except for the following Limited Salary Period and during the term hereof, the Company shall pay the Executive a base
salary at an initial rate of Four Hundred Thousand Dollars ($400,000) per annum (the “Base Salary”). For an initial
period from the Effective Date until such time as the Company has raised at least $5,000,000 through the sale of equity securities
or otherwise (the “Limited Salary Period”), the Executive shall be paid a base salary at the rate of Three Hundred
Twenty Five Thousand Dollars ($325,000) per annum (the “Initial Salary”). The Initial Salary or Base Salary, as applicable,
will be payable in accordance with the payroll practices of the Company for its executives, but no less than once per each month.

 

(b)          Bonus
Compensation.

 

(i)          If
Executive remains employed by the Company on the last day of the Limited Salary Period, then within thirty (30) days following
the end of the Limited Salary Period, the Company shall pay Executive a lump sum bonus equal to the difference between the amount
that Executive would have been paid during the Limited Salary Period had Executive’s salary been the Base Salary, and the
amount that Executive was paid during the Limited Salary Period at the Initial Salary. Such bonus shall be subject to applicable
withholding.

 

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(ii)         During
the term hereof, the Executive shall have the opportunity to earn an annual performance bonus equal to up to 60% of the Executive’s
Base Salary based upon performance criteria set by the Board in its sole discretion on an annual basis. The Board shall conduct
a performance review of the Executive at least once a year on or prior to February 1 of each year, commencing in 2013. The Company
may, from time to time, pay such other bonus or bonuses to the Executive as the Board or a compensation committee of the Board,
in its sole discretion, deems appropriate. In order to receive the annual performance bonus, the Executive must continue to be
employed by the Company through the end of the period with respect to which the annual performance bonus has been earned. The annual
performance bonus will be paid to the Executive as soon as reasonably practicable in the calendar year following the calendar year
in which it is earned (and typically at the same time as bonuses for the applicable period are regularly paid to senior executives
of the Company) and in any event no later than March 15 of the following calendar years..

 

(c)          Stock
Options. As soon as practicable following Executive’s commencement of employment, and subject to approval of the Board
(or an authorized committee thereof), the Executive shall receive a stock option to purchase ten percent (10%) of the shares of
common stock of the Company (calculated on a fully diluted basis as of such grant date, assuming the exercise and conversion of
all exercisable or convertible securities, and including any shares reserved for issuance pursuant to an equity incentive plans
or other arrangements) at an exercise price per share equal to the fair market value of such shares on the date of grant as
reasonably determined by the Board in good faith (the “Initial Stock Option”).
The Initial Stock Option will vest and become exercisable with respect to fifty percent (50%) of the total number of shares
on the date that is six (6) months from the date of grant or, if earlier, the date that is nine (9) months after October 19, 2011.
The other fifty percent (50%) (the “Remaining Shares”) shall vest monthly on the first day of each month, commencing
on January 1, 2012, at a rate of 1/36th of the total number of Remaining Shares per month. Vesting will be subject to continued
employment on each vesting date and acceleration as set forth in Sections 5 and 6 below.

 

In addition,
following each time that the Company issues shares of capital stock or securities
convertible into shares of capital stock until such time as the Company has raised an aggregate of $10,000,000 after the Effective
Date through the sale of such securities, the Company shall issue to Executive, subject to approval of the Board (or an authorized
committee thereof), an additional stock option grant (each, an “Additional Option”), such that the total number of
shares of common stock subject to the Initial Stock Option and all Additional Options held by Executive shall be ten percent (10%)
of the fully diluted capitalization of the Company, calculated as set forth above. The exercise price per share of each Additional
Option shall be the fair market value of such shares on the date of grant. Each Additional Option shall vest and be subject to
acceleration according to the same vesting schedule as the Initial Stock Option.

 

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The Initial
Stock Option and each Additional Option shall be granted under the Company’s 2011 Stock Incentive Plan (the “2011 Plan”),
or any successor plan thereto, and pursuant to the terms of the Company’s then standard form stock option agreement approved
by the Board. Collectively, the Initial Stock Option and each Additional Option are referred to in this Agreement as the “Stock
Options.”

 

(d)          Vacations.
During the term hereof, the Executive shall be entitled to six (6) weeks of vacation per annum, to be
taken at such times and intervals as shall be determined by the Executive, subject to the reasonable business needs of the Company.
Vacation time shall not cumulate from year to year. Accrued and unused vacation time may be carried over to subsequent years
with a maximum four (4) weeks of carryover into any year.

 

(e)          Insurance
Coverage. During the term hereof, the Company shall provide Executive with medical, dental, vision, life and disability insurance
as follows: the Company shall (i) pay premiums in accordance with the Company’s usual practices, for all medical insurance,
including health, dental and vision coverage for Executive and his immediate family, (ii) provide, at its cost, disability insurance
with an annual benefit equal to seventy-five percent (75%) of the Executive’s Base Salary, and (iii) provide, at its cost,
life insurance on the life of the Executive with a death benefit equal to an aggregate of $2,000,000, payable to such beneficiaries
as may be designated by the Executive in writing from time to time. The Executive’s benefits contemplated by this Section
4(e) shall be subject to the terms and conditions of each applicable policy, as may be in effect from time to time at the discretion
of the Board. Notwithstanding the foregoing, (A) to the extent permitted under the Company's welfare plans (and by the Company’s
insurance carriers), in lieu of the foregoing, if Executive elects to retain existing insurance policies consistent with the foregoing,
the Company shall reimburse Executive for the cost of such policies and (B) Executive shall be solely responsible for the premiums
related to his existing life insurance and disability policies until December 31, 2011. Notwithstanding the foregoing or any other
provision in this Agreement to the contrary (including, without limitation, Section 20), the Company may unilaterally amend this
Section 4(e) to the extent it deems necessary to avoid the imposition of excise taxes, penalties or similar charges on the
Company, including, without limitation, under Section 4980D of the Internal Revenue Code of 1986, as amended (the “Code”),
which amendments may include, but are not limited to, eliminating benefits or eliminating premium payments by the Company, provided
that the Company and Executive shall negotiate in good faith an alternative arrangement for providing the economic equivalent of
such benefits to Executive which does not cause the imposition of such tax, penalty or similar charges.

 

(f)          Other
Benefits. During the term hereof and subject to any contribution therefor generally required of employees of the Company, the
Executive shall be entitled to participate in any and all other employee benefit plans from time to time in effect for employees
of the Company generally, except to the extent such plans are in a category of benefit (including, without limitation, bonus compensation)
otherwise provided to the Executive. Such participation shall be subject to (i) the terms of the applicable plan documents, (ii)
generally applicable Company policies and (iii) the discretion of the Board or any administrative or other committee provided for
in or contemplated by such plan. The Company may alter, modify, add to or delete such “other employee benefit plans”
at any time as it, in its sole judgment, determines to be appropriate.

 

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(g)          Automobile
Allowance. The Company shall reimburse the Executive for his automobile expenses including a monthly lease or financing payment
up to $1,275. In addition, following the end of the Limited Salary Period, the Company shall pay all expenses related to insurance,
motor vehicle registration and tax, maintenance, repair, gasoline and other expenses incurred in connection with the Executive’s
use of such car, whether it be in the Company's service or privately; provided, however, that the Company shall not be liable for
any costs or expenses incurred in connection or associated with unlawful conduct of the Executive in connection with the operation
of the vehicle, including, without limitation, speeding or traffic fines or responsibilities related to reckless driving and driving
without a proper license. In the event the Executive’s employment terminates, the Executive will retain possession of the
automobile and will assume the monthly payments, and all other obligations related to the automobile, effective on the effective
date of the termination.

 

(h)          Business
Expenses. The Company shall pay or reimburse the Executive for all reasonable and necessary business expenses incurred or paid
by the Executive in the performance of his duties and responsibilities hereunder, subject to any maximum annual limit and other
restrictions on such expenses set by the Board for senior executives of the Company, and to such reasonable substantiation and
documentation as may be specified by the Company from time to time. The Executive shall use reasonable efforts to purchase airline
tickets in advance or otherwise take advantage of low-cost fares.

 

5.          Termination
of Employment. Executive’s employment hereunder may terminate as set forth below.

 

(a)          Death.
In the event of the Executive’s death during the term hereof, the Executive’s employment hereunder shall immediately
and automatically terminate. In that event, the Company shall pay to the Executive’s designated beneficiary or, if no beneficiary
has been designated by the Executive, to his estate, any earned and unpaid Base Salary and bonus. The Company shall have no further
obligation or liability to the Executive or his estate. Upon the Executive’s death, all vested Stock Options will remain
exercisable by the estate or designated beneficiary for the time period applicable to such options.

 

(b)          Disability.

 

(i)          The
Company may terminate the Executive’s employment hereunder, upon thirty (30) days’ notice to the Executive, in the
event that the Executive becomes disabled during his employment hereunder through any illness, injury, accident or condition of
either a physical or psychological nature and, as a result, is unable to perform the essential functions of his position hereunder,
with or without reasonable accommodation, for eighty (80) days, which need not be continuous, during any period of one-hundred
eighty (180) consecutive calendar days.

 

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(ii)         The
Board may designate another employee to act in the Executive’s place during any period in which the Executive is unable to
perform the essential functions of his position as a result of any illness, injury, accident or condition of either a physical
or psychological nature. Notwithstanding any such designation, the Executive shall continue to receive the Base Salary or Initial
Salary, as applicable, in accordance with Section 4(a) and his other benefits pursuant to Sections 4(e), 4(f) and 4(g) hereof,
to the extent permitted by the then-current terms of the applicable benefit plans, until the Executive becomes eligible for disability
income benefits under any disability income plan provided by the Company or until the termination of his employment, whichever
shall first occur.

 

(iii)        If
any question shall arise as to whether during any period the Executive is disabled through any illness, injury, accident or condition
of either a physical or psychological nature so as to be unable to perform the essential functions of his position hereunder, the
Executive may, and at the request of the Company shall, submit to a medical examination by a physician selected by the Company
to whom the Executive or his duly appointed guardian, if any, has no reasonable objection, to determine whether the Executive is
so disabled, and such determination shall for the purposes of this Agreement be conclusive of the issue. If such question shall
arise and the Executive shall fail to submit to such medical examination, the Company’s determination of the issue shall
be binding on the Executive.

 

(c)          By
the Company for Cause. The Company may terminate the Executive’s employment hereunder for Cause (as defined below) at
any time upon notice to the Executive setting forth in reasonable detail the nature of such Cause. The following, as determined
by the Board in its reasonable and good faith judgment, shall constitute Cause for termination: (i) conviction or plea of nolo
contendere in a court of law of (x) any felony or (y) any misdemeanor involving dishonesty, breach of trust, misappropriation or
illegal narcotics, (ii) commission of any act involving theft, embezzlement, fraud, intentional dishonesty or moral turpitude or
that otherwise impairs the reputation, goodwill or business of the Company, (iii) material breach of any of the material provisions
of this Agreement or of any other material agreement between the Executive and the Company or any of its Affiliates (as defined
below), which breach is not cured within thirty (30) days of notice to Executive; or (iv) demonstration of gross negligence, willful
misconduct or dereliction of duty in the execution of his duties under this Agreement or breach of his duty of loyalty to the Company
or any of its Affiliates that is materially injurious to the Company. Upon the giving of notice of termination of the Executive’s
employment hereunder for Cause, the Company shall not have any further obligation or liability to the Executive, other than for
Base Salary earned and unpaid through the date of termination. Any unvested Stock Options shall be forfeited and vested Stock Options
not exercised prior to termination shall expire and no longer be exercisable.

 

    	6

    	 

    

 

(d)          By
the Company without Cause. The Company may terminate the Executive’s employment hereunder without Cause at any time upon
six (6) months months’ advance written notice.

 

(e)          By
the Executive. The Executive may terminate his employment, with or without cause, at any time upon at least fourteen (14) days’
advance written notice to the Company.

 

(f)          By
the Executive for Changed Circumstances. The Executive may terminate his employment hereunder upon the occurrence of Changed
Circumstances (as defined below) upon written notice to the Company. “Changed Circumstances” shall mean the occurrence
of any of the following, without Executive’s consent: (i) material breach hereof by the Company of its obligations under
this Agreement; (ii) subject to the Company’s right to terminate the Executive’s employment pursuant to subsections
(c) and (d) above, a material diminution in the Executive’s authority, duties or responsibilities by reason of actions taken
by or under the authority of the Board, or (iii) relocation of Executive’s principal place of employment by more than fifty
(50) miles following the establishment of the Company’s principal executive office as set forth in Section 3(d). Notwithstanding
the foregoing, the Executive's termination of employment shall not be for Changed Circumstances unless (i) the Executive
notifies the Company in writing of the existence of the condition which Executive believes constitutes Changed Circumstances within
ninety (90) days of the initial existence of such condition (which notice specifically identifies such condition), (ii) the
Company fails to remedy such condition within thirty (30) days after the date on which it receives such notice (the "Remedial
Period"), and (iii) the Executive actually terminates employment within thirty (30) days after the expiration of the
Remedial Period.

 

(g)          Severance
Benefits.

 

(i)          In
the event that the Company terminates the Executive’s employment without Cause (as defined above) or the Executive terminates
his employment for Changed Circumstances (as defined above), subject to the terms and conditions of this Section 5(g), (A) the
Company will pay severance in the form of salary continuation on a monthly basis to the Executive for a period of months (the “Severance
Period”) following Executive’s termination equal to the greater of (x) six (6) months or (y) the number of full months
between the Effective Date and Executive’s termination, provided that the Severance Period shall not exceed twelve (12) months,
(B) if the Executive is eligible for and timely (and properly) elects to continue his coverage under the Company’s group
health plans pursuant to Section 4980B(f) of the Code (commonly known as “COBRA”), the Company will pay (or reimburse
the Executive for the payment of) the regular employer portion of the premium for such coverage (i.e., the amount it pays toward
the premium for such coverage for active employees) for the duration of the Severance Period or until the Executive is no longer
entitled to COBRA continuation coverage under the Company’s group health plans, whichever period is shorter, and (C) any
options that are subject to vesting shall have vesting accelerated with respect to the number of shares that would have vested
during the Severance Period if Executive had remained employed by the Company during such period. Notwithstanding the foregoing
or any other provision in this Agreement to the contrary (including, without limitation, Section 20), the Company may unilaterally
amend clause (B) of this Section 5(g)(i) to the extent it deems necessary to avoid the imposition of excise taxes, penalties
or similar charges on the Company, including, without limitation, under Section 4980D of the Code, which amendments may include,
but are not limited to, eliminating premium payments (or reimbursement of premium payments) by the Company, provided that the Company
and Executive shall negotiate in good faith an alternative arrangement for providing the economic equivalent of such benefits to
Executive which does not cause the imposition of such tax, penalty or similar charges.

 

    	7

    	 

    

 

(ii)         The
severance amount and other benefits set forth in 5(g)(i) are referred to herein as the “Severance Benefits.” The Executive’s
right to receive Severance Benefits under Subsection 5(g)(i) is conditioned on the Executive’s continued performance of those
obligations hereunder that continue by their express terms after the termination of his employment, including without limitation
those set forth in Sections 8, 9 and 10. In addition, in order to receive the Severance Benefits under Subsection
5(g)(i), the Executive must execute and deliver to the Company a general release of any and all claims and causes of action
of the Executive against the Company and its officers and directors, excepting only the right to any compensation, benefits and/or
reimbursable expenses due and unpaid under Sections 4 and/or 5(g)(i) of this Agreement. Such release must be in a form reasonably
acceptable to the Company, must be received by the Company no later than the forty-fifth (45th) day after the date of the Executive’s
termination, and must become effective no later than the fifty-ninth (59th) day after the date of the Executive’s
termination. Any Severance Benefits to be paid hereunder shall
be payable in accordance with the payroll practices of the Company for its executives generally as in effect from time to time,
and subject to all required withholding of taxes. 

 

6.          Change
in Control. If the Executive’s employment is terminated by the Company, without Cause, in connection with or within twelve
(12) months after, or by the Executive for Changed Circumstances at the time of or within twelve (12) months after, a Change in
Control, the Executive shall receive those Severance Benefits provided in Section 5(g)(i) as if his employment were terminated
more than twelve (12) months after the Effective Date plus the pro rata portion of any eligible annual bonus compensation
as of the date of termination, which Severance Benefits shall be subject to the terms set forth in Section 5(g)(ii) and shall be
in lieu of any benefits to which the Executive is otherwise entitled pursuant to Section 5(g). “Change in Control”
means an event or occurrence set forth in any one or more of subsections (a) through (c) 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):

 

    	8

    	 

    

 

(a)          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”)) (an “Acquiring Person”) of beneficial ownership of any capital
stock of the Company if, after such acquisition, such Acquiring Person beneficially owns (within the meaning of Rule 13d-3 promulgated
under the Exchange Act) 50% or more of either (i) the then-outstanding shares of common stock of the Company (the “Outstanding
Company Common Stock”) or (ii) 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”); provided, however, that for purposes
of this subsection (a), the following acquisitions shall not constitute a Change in Control: (A) any acquisition directly from
the Company, (B) any acquisition by the Company or (C) any acquisition by any employee benefit plan (or related trust) sponsored
or maintained by the Company or any corporation controlled by the Company; or

 

(b)          such
time as the Continuing Directors (as defined below) do not constitute a majority of the Board (or, if applicable, the Board of
Directors of a successor corporation to the Company), where the term “Continuing Director” means at any date a member
of the Board (i) who was a member of the Board on the date of the execution of this Agreement or (ii) who was nominated or elected
subsequent to such date by at least a majority of the directors who were Continuing Directors at the time of such nomination or
election or whose election to the Board was recommended or endorsed by at least a majority of the directors who were Continuing
Directors at the time of such nomination or election; or

 

(c)          the
consummation of a merger, consolidation, reorganization, recapitalization or statutory share exchange involving the Company or
a sale or other disposition of all or substantially all of the assets of the Company (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 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.

 

7.          Effect
of Termination. Upon termination of this Agreement, all obligations and provisions of this Agreement shall terminate except
with respect to any accrued and unpaid monetary obligations, post-termination benefits described in Section 5 and Section 6, and
vesting acceleration provisions and except for the provisions of Sections 8 through (and inclusive of) 24 hereof.

 

    	9

    	 

    

 

8.          Confidential
Information; Assignment of Inventions.

 

(a)          The
Executive acknowledges that the Company and its Affiliates will continually develop Confidential Information and Proprietary Information
(as defined below), that the Executive may develop Confidential Information and Proprietary Information for the Company or its
Affiliates, and that the Executive may learn of Confidential Information and Proprietary Information during the course of his employment
with the Company. The Executive agrees that, except as required for the proper performance of his duties for the Company, he will
not, directly or indirectly, use or disclose any Confidential Information or Proprietary Information. The Executive understands
and agrees that this restriction will continue to apply after his employment terminates, regardless of the reason for termination.

 

(b)          The
Executive agrees that all Confidential Information and Proprietary Information, including, without limitation all work products,
inventions methods, processes, designs, software, apparatuses, compositions of matter, procedures, improvements, property, data
documentation, information or materials that the Executive, jointly or separately prepared, conceived, discovered, reduced to practice,
developed or created during, in connection with, for the purpose of, related to, or as a result of his employment with the Company,
and/or to which he has access as a result of his employment with the Company (collectively, the “Inventions”) is and
shall remain the sole and exclusive property of the Company.

 

(c)          The
Executive by his signature on this Agreement unconditionally and irrevocably transfers and assigns to the Company all rights, title
and interest in the Inventions (as defined above, including all patent, copyright, trade secret and any other intellectual property
rights therein) and will take any steps and execute any further documentation from time to time reasonably necessary to effect
such assignment free of charge to the Company. The Executive will further execute, upon request, whether during, or after the termination
of, his employment with the Company, any and all applications for patents, assignments and other papers, which the Company may
deem necessary or appropriate for securing such Inventions for the Company.

 

(d)          Except
as required for the proper performance of his duties, the Executive will not copy any and all papers, documents, drawings, systems,
databases, memoranda, notes, plans, records, reports files, data (including original data), disks, electronic media etc. containing
Confidential Information or Proprietary Information (“Documents”) or remove any Documents, or copies, from Company
premises. The Executive will return to the Company immediately after his employment terminates, and at such other times as may
be specified by the Company, all Documents and copies and all other property of the Company and its Affiliates then in his possession
or control.

 

    	10

    	 

    

 

9.          Non-Competition
Covenants. During the term hereof and for a period of one (1) year from the date the Executive’s employment with the
Company terminates (the “Restricted Period”), the Executive shall refrain from engaging or becoming interested, directly
or indirectly, as an owner, employee, director, partner, consultant, through stock ownership, investment of capital, lending of
money or property, rendering of services, or otherwise, either alone or in association with others, in the operation, management
or supervision of any type of business or enterprise that during such period manufactures, develops or sells drug delivery technologies
that compete with the businesses or enterprises of the Company and its operating subsidiaries (if any) (collectively, the “Company
Group”), or any new business or enterprise which the Company Group during such Restricted Period plans in good faith in the
near future to commence which is related to the Company Group’s then-existing businesses or enterprises, including, without
limitation, the research and development of drug delivery technology for diseases in which the Company has active research and
development programs, except through ownership of shares in a publicly-traded corporation or publicly-traded mutual fund or publicly-traded
limited partnership in which the Executive does not materially participate and in which the Executive’s ownership interest
is one percent (1%) or less. The Executive acknowledges and agrees that the entire business of the Company is based upon technology
and Proprietary Information that has world-wide application. Therefore, the restrictions contained in this Section 9 cannot be
limited to any particular geographic region and are applicable world-wide. In the event that the scope of any restriction contained
in this Section 9 is determined by a court to be too broad to permit enforcement hereof to its full extent, then such restriction
shall be enforced to the maximum extent permitted by law, based upon the geographic markets on which the Company Group conducts
its business at the time of breach of this Section.

 

10.         Non-Solicitation
Covenants. During the Restricted Period, the Executive shall refrain from, directly or indirectly, whether on behalf of himself
or anyone else: (a) soliciting or accepting orders from any present or past customer of the Company Group for a product or service
offered or sold by, or competitive with a product or service offered or sold by, the Company Group; (b) inducing or attempting
to induce any customer, supplier, licensee, licensor or other business relation of the Company Group to cease doing business with
the Company Group or in any way interfere with the relationship between that customer, supplier, licensee, licensor or other business
relation and the Company Group; (c) using for his benefit or disclosing the name and/or requirements of any such customer, supplier,
licensee, licensor, or other business relation to any other person; (d) soliciting any of the Company Group’s employees to
leave the employ of the Company Group or hiring anyone who is an employee of the Company Group or was such an employee during the
twelve (12) months preceding the proposed date of hire; or (e) inducing or attempting to induce any employee of the Company Group
to work for, render services or provide advice to or supply Confidential Information or Proprietary Information to any other person.
During the Restricted Period, the Executive shall not directly or indirectly assist or encourage any other person, in carrying
out, directly or indirectly, any activity that would be prohibited by this agreement were they carried out by the Executive himself.

 

11.         Enforcement
of Covenants. The Executive acknowledges that he has carefully read and considered all the terms and conditions of this Agreement,
including the restraints imposed upon him pursuant to Sections 8, 9 and 10 hereof. The Executive acknowledges that the covenants
contained in Sections 8, 9 and 10 are reasonably necessary to protect the goodwill of the Company that is its exclusive property.
The Executive further acknowledges and agrees that, were he to breach any of the covenants contained in Sections 8, 9 or 10 hereof,
the damage would be irreparable. The Executive therefore agrees that the Company, in addition to any other remedies available to
it, shall be entitled to preliminary and permanent injunctive relief against any breach or threatened breach by the Executive of
any of said covenants, without having to post bond.

 

12.         Conflicting
Agreements. The Executive hereby represents and warrants that the execution of this Agreement and the performance of his obligations
hereunder will not breach or be in conflict with any other agreement to which the Executive is a party or is bound and that the
Executive is not subject to any covenants against competition or similar covenants that would affect the performance of his obligations
hereunder. The Executive will not disclose to or use any confidential or proprietary information of a third party without such
party’s consent.

 

    	11

    	 

    

 

13.         Definitions.
Words or phrases which are initially capitalized or are within quotation marks shall have the meanings provided in this Section
13 and as provided elsewhere herein. For purposes of this Agreement, the following definitions apply:

 

(a)          “Affiliates”
means all persons and entities directly or indirectly controlling, controlled by or under common control with the Company, where
control may be by either management authority or equity interest.

 

(b)          “Confidential
Information” means any and all information, inventions, discoveries, ideas, writings, communications, research, engineering
methods, developments in chemistry, manufacturing information, practices, processes, systems, technical and scientific information,
formulae, designs, concepts, products, trade secrets, projects, improvements and developments that relate to the business of the
Company or any Affiliate and are not generally known by others, including but not limited to (i) products and services, technical
data, methods and processes, (ii) marketing activities and strategic plans, (iii) financial information, costs and sources of supply,
(iv) the identity and special needs of customers and prospective customers and vendors and prospective vendors, and (v) the people
and organizations with whom the Company or any Affiliate has or plans to have business relationships and those relationships. Confidential
Information also includes such information that the Company or any Affiliate may receive or has received belonging to customers
or others who do business with the Company or any Affiliate and any publication or literary creation of the Executive, developed
in whole or in part while the Executive is employed by the Company, in whatever form published the content of which, in whole or
in part, relates to the business of the Company or any Affiliate. Confidential Information shall not include any information
or materials that Executive can prove by written evidence (A) is or becomes publicly known through lawful means and without breach
of this Agreement by Executive; (B) was rightfully in Executive’s possession or part of Executive’s general knowledge
prior to the Effective Date; or (C) is disclosed to Executive without confidential or proprietary restrictions by a third party
who rightfully possesses the information or materials without confidential or proprietary restrictions.

 

(c)          “Person”
means an individual, a corporation, an association, a partnership, an estate, a trust and any other entity or organization.

 

(d)          “Proprietary
Information” means any and all intellectual property subject to protection under applicable copyright, trademark, trade
secret or patent laws if such property is similar in any material respect with the products and services offered by the Company
or any Affiliate.

 

14.         Withholding.
All payments made under this Agreement shall be reduced by any tax or other amounts required to be withheld under applicable law.

 

    	12

    	 

    

 

15.         Assignment.
Neither the Company nor the Executive may make any assignment of this Agreement or any interest herein, by operation of law or
otherwise, without the prior written consent of the other; provided, however, that the Company may assign its rights and
shall assign its obligations under this Agreement without the consent of the Executive in the event that the Company shall hereafter
effect a reorganization, or consolidate with or merge into any other Person, or transfer all or substantially all of its properties
or assets to any other Person. This Agreement shall inure to the benefit of and be binding upon the Company and the Executive,
and their respective successors, executors, administrators, heirs and permitted assigns.

 

16.         Severability.
If any portion or provision of this Agreement shall to any extent be declared illegal or unenforceable by a court of competent
jurisdiction, then the remainder of this Agreement, or the application of such portion or provision in circumstances other than
those as to which it is so declared illegal or unenforceable, shall not be affected thereby, and each portion and provision of
this Agreement shall be valid and enforceable to the fullest extent permitted by law.

 

17.         Waiver.
No waiver of any provision hereof shall be effective unless made in writing and signed by the waiving party. The failure of either
party to require the performance of any term or obligation of this Agreement, or the waiver by either party of any breach of this
Agreement, shall not prevent any subsequent enforcement of such term or obligation or be deemed a waiver of any subsequent breach.

 

18.         Notices.
Any and all notices, requests, demands and other communications provided for by this Agreement shall be in writing and shall be
effective when delivered in person or by overnight courier or delivery service, or three (3) business days after being deposited
in the Danish or United States mail, postage prepaid, registered or certified, and addressed to the Executive at his last known
address on the books of the Company or, in the case of the Company, at the Company’s principal place of business, to the
attention of the Chairman of the Board, or to such other address as either party may specify by notice to the other actually received.

 

19.         Entire
Agreement. This Agreement constitutes the entire agreement between the parties and supersedes all prior communications, agreements
and understandings, written or oral, with respect to the terms and conditions of the Executive’s employment.

 

20.         Amendment.
This Agreement may be amended or modified only by a written instrument signed by the Executive and an expressly authorized representative
of the Company.

 

21.         Headings.
The headings and captions in this Agreement are for convenience only and in no way define or describe the scope or content of any
provision of this Agreement.

 

22.         Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be an original and all of which together shall
constitute one and the same instrument.

 

23.         Governing
Law. This Agreement shall be construed and enforced under and be governed in all respects by the laws of the Commonwealth of
Virginia, without regard to the conflict of laws principles thereof.

 

    	13

    	 

    

 

24.         Tax
Matters.

 

(a)          If
any payment or benefit which the Executive would receive pursuant to a Change in Control from the Company or otherwise (collectively,
the “Payments”) would (i) constitute a “parachute payment” within the meaning of Code Section 280G, and
(ii) but for this Section 24(a) of this Agreement, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise
Tax”), then the Executive will be entitled to receive either (A) the full amount of the Payments; or (B) a portion of the
Payments having a value equal to one dollar ($1.00) less than three (3) times Executive's “base amount” (as such term
is defined in Section 280G(b)(3)(A) of the Code) (the “Safe Harbor Amount”), whichever of clauses (A) and (B), after
taking into account applicable federal, state, and local income taxes and the Excise Tax, results in the receipt by the Executive
on an after-tax basis, of the greater portion of the Payments. If a reduction in the Payments is necessary, such reduction shall
occur in the following order: reduction in cash payments; cancellation of accelerated vesting of stock awards; and reduction in
employee benefits. In the event that acceleration of vesting of stock award compensation is to be reduced, such acceleration of
vesting shall be cancelled in the reverse order of the date of grant of the Executive’s stock awards. Any determination required
under this provision shall be made in writing by the independent public accountant of the Company or another entity reasonably
approved by the Company and the Executive (the “Accountants”), whose determination shall be conclusive and binding
for all purposes upon the Company and Executive. All fees and expenses of the Accountants shall be borne solely by the Company.
For purposes of making any calculation required by this provision, the Accountants may make reasonable assumptions and approximations
concerning applicable taxes and may rely on reasonable, good-faith interpretations concerning the application of Sections 280G
and 4999 of the Code.

 

(b)          The
parties intend that this Agreement and the payments and benefits provided hereunder, including, without limitation, those provided
pursuant to Section 5 hereof, be exempt from the requirements of Code Section 409A to the maximum extent possible, whether pursuant
to the short-term deferral exception described in Treasury Regulation Section 1.409A-1(b)(4), the involuntary separation pay
plan exception described in Treasury Regulation Section 1.409A-1(b)(9)(iii), or otherwise. To the extent Code Section 409A is applicable
to this Agreement, the parties intend that this Agreement and any payments and benefits thereunder comply with the deferral, payout
and other limitations and restrictions imposed under Code Section 409A. Notwithstanding anything herein to the contrary, this Agreement
shall be interpreted, operated and administered in a manner consistent with such intentions; provided, however that in no event
shall the Company or any of its Affiliates or successors be liable for any additional tax, interest or penalty that may be imposed
on Executive pursuant to Code Section 409A or for any damages incurred by Executive as a result of this Agreement (or the payments
or benefits hereunder) failing to comply with, or be exempt from, Code Section 409A. Without limiting the generality of the
foregoing, and notwithstanding any other provision of this Agreement to the contrary:

 

    	14

    	 

    

 

(i)          If
the Executive notifies the Company (with specificity as to the reason therefor) that he believes that any provision of this Agreement
(or of any award of any compensation or benefits) would cause him to incur any additional tax or interest under Code Section 409A
and the Company concurs with such belief or the Company independently makes such determination, the Company shall, after consultation
with the Executive, to the extent legally permitted and to the extent it is possible to timely reform the provision to avoid taxation
under Code Section 409A, reform such provision to attempt to comply with Code Section 409A through good faith modifications to
the minimum extent reasonably appropriate to conform with Code Section 409A. To the extent that any provision hereof is modified
in order to comply with or be exempt from Code Section 409A, such modification shall be made in good faith and shall, to the maximum
extent reasonably possible, maintain the original intent and economic benefit to both the Executive and the Company of the applicable
provision without violating the provisions of Code Section 409A.

 

(ii)         For
purposes of Code Section 409A, including, without limitation, the application of Treasury Regulation Section 1.409A-1(b)(4) (or
any successor provision), each payment made under this Agreement shall be treated as a separate payment and the right to
a series of installment payments under this Agreement shall be treated as a right to a series of separate payments.

 

(iii)        To
the extent Code Section 409A is applicable to this Agreement, a termination of employment shall not be deemed to have occurred
for purposes of any provision of this Agreement providing for the payment of amounts or benefits upon or following a termination
of employment (including, without limitation, Sections 5 and 6 hereof) unless such termination is also a “separation from
service,” as defined in Treasury Regulation Section 1.409A-1(h), after giving effect to the presumptions contained therein
(and without regard to the optional alternative definitions available therein), and, for purposes of any such provision of this
Agreement, references to “terminate,” “termination,” “termination of employment” and like terms
shall mean separation from service. 

 

(iv)        The
Company shall delay the payment of any benefits payable under this Agreement as required to comply with Section 409A(a)(2)(B)(i)
of the Code, relating to payments made to certain “specified
employees” of certain publicly-traded companies, and in such event, any such amount to which Executive would otherwise be
entitled during the six (6) month period immediately following his termination of employment shall instead be accumulated through
and paid or provided, together with interest at the long-term applicable federal rate (annual compounding) under Section 1274(d)
of the Code in effect on his termination of employment, on the first business day following the expiration of such six (6) month
period, or if earlier, the date of his death. If the Executive is not a “specified
employee” within the meaning of Code Section 409A at the time of Executive’s termination of employment, no salary continuation
payment that Executive shall be entitled to receive under this Agreement that constitutes deferred compensation under Code Section
409A will be made to Executive prior to the sixtieth (60th) day after the date of such termination. On the first business date
that occurs on or after such sixtieth (60th) day, the Company will pay Executive the salary continuation payments that Executive
would have received on or prior to such sixtieth (60th) day, in a lump sum, with the balance of the salary continuation payments
being paid as originally scheduled. 

 

    	15

    	 

    

 

(v)         To
the extent an expense reimbursement or in-kind benefit provided pursuant to this Agreement constitutes deferred compensation within
the meaning of Code Section 409A, (A) the expenses will be reimbursed to Executive as promptly as practical and in any event not
later than the last day of the calendar year after the calendar year in which the expenses are incurred, (B) the amount of expenses
eligible for reimbursement or in-kind benefits provided during any calendar year will not affect the amount of expenses eligible
for reimbursement or in-kind benefits provided in any other calendar year, and C) the right to payment or reimbursement or in-kind
benefits hereunder may not be liquidated or exchanged for any other benefit.

 

25.         The
Company shall reimburse Executive for reasonable fees and expenses of counsel incurred in connection with the negotiation and execution
of this Agreement, up to a maximum of $4,000. 

 

IN WITNESS
WHEREOF, this Agreement has been executed as a sealed instrument by the Executive and the Company, by its duly authorized representative,
as of the date first above written.

 

	Executive:	 	AmpliPhi Biosciences Corporation
	 	 	 
	 	 	By:	 
	Philip J. Young	 	Title:  Chairman

 

    	16

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