Document:

AMENDED AND RESTATED PROMISSORY NOTE

 Exhibit 10.11 
  
 AMENDED AND RESTATED PROMISSORY NOTE 
  

			
	$750,000.00	  	 Wellesley, Massachusetts
 April 10, 2002

  
 For value received,
the undersigned, Arthur M. Krieg, M.D. of 173 Winding River Road, Wellesley, MA 02482 (the “Borrower”), promises to pay to the order of Coley Pharmaceutical Group. Inc., a Delaware corporation (“Coley”), the principal sum of
Seven Hundred Fifty Thousand Dollars ($750,000.00), plus interest on the unpaid principal balance at an annual rate of seven percent (7%). Interest shall accrue from the date hereof on the unpaid principal balance, shall not be compounded or
annualized, and shall not be payable until the Maturity Date. All unpaid principal and all accrued and unpaid interest thereon shall be due and payable on May 8, 2006. Except as otherwise agreed to by the Borrower and the holder, payments of
principal and interest shall be made in lawful money of the United States of America at the principal office of Coley in Massachusetts, or by check mailed to such other place as the holder hereof shall designate. This Amended and Restated Promissory
Note (“Amended and Restated Note”) is issued in replacement for (but not in satisfaction of the Indebtedness evidenced by) that certain Promissory Note dated May 8, 2001 issued by the Borrower in favor of Coley in the original face amount
of $750,000.00. 
  
 If there occurs a default (an “Event of
Default”) in the performance of any of the terms, agreements, covenants or conditions contained in the Loan and Pledge Agreement (as hereinafter defined), the Mortgage (as hereinafter defined) or any other documents now or hereafter executed as
security for this note or in furtherance of Coley’s protections under the Mortgage (collectively, the “Loan Documents”) continuing beyond, in each case, any applicable grace period as may be provided therein for the payment of such
amount or the performance of such term, agreement, covenant or condition, then at the option of the holder of this note the entire indebtedness evidenced hereby, with interest accrued thereon, if any, shall become due and payable, and no omission on
the part of the holder hereof to exercise such option when entitled to do so shall be construed as a waiver of such right so long as such Event of Default shall remain uncured. 
  
 The unpaid balance hereof may be paid in part or in full at any time without penalty. All prepayments shall be applied first
to the payment of interest. 
  
 This note is secured by (i) a
certain loan and pledge agreement dated as of May 8, 2001, as amended and restated by an Amended and Restated Loan and Security Agreement (as amended and restated, the “Loan and Pledge Agreement”) to be signed on or about the date hereof,
granted by the Borrower in favor of Coley and (ii) a certain mortgage (the “Mortgage”), dated on or about the date hereof, from the Borrower and the Borrower’s wife to Coley, which Mortgage grants a lien on the Premises (as defined in
the Mortgage), all as more particularly described in such Mortgage. Coley, by its acceptance hereof, shall be entitled to the benefits, and subject to the terms, of the Loan and Pledge Agreement and the Mortgage. 
  
 The undersigned agrees to pay, upon maturity (by acceleration or otherwise),
actual costs of collection, including reasonable attorneys’ fees. 
  

 No delay or omission on the part of the holder in exercising any right hereunder shall operate as a
waiver of such right or of any other right of such holder; nor shall any delay, omission or waiver on any occasion be deemed a bar to or waiver of the same or any other right on any future occasion. The undersigned and every indorser or guarantor of
this note regardless of the time, order or place of signing waives presentment, demand, protest and notices of every kind and assents to any one or more extensions or postponements of the time of payment or any other indulgences, to any
substitutions, exchanges or releases of collateral if at any time there be available to the holder collateral for this note, and to the additions or releases of any other parties or persons primarily or secondarily liable. 
  
 All rights and obligations hereunder shall be governed by and construed in
accordance with the internal laws of the Commonwealth of Massachusetts and this note shall be deemed to be under seal. 
  

	
	
	/s/    ARTHUR M. KRIEG        
	Arthur M. Krieg, individually

  

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 EXHIBIT B 

 
 Mortgage 
  

  
 MORTGAGE 

 
 KNOW ALL MEN BY THESE PRESENTS that Arthur M. Krieg and Deborah Krieg of
173 Winding River Road, Wellesley, MA 02482 (the “Mortgagor”), for consideration paid, hereby grant to Coley Pharmaceutical Group, Inc, a Delaware corporation with its principal place of business in Wellesley, Massachusetts (the
“Mortgagee”), with MORTGAGE COVENANTS, to secure the payment of Seven Hundred Fifty Thousand Dollars ($750,000) with interest thereon as provided in a certain Amended and Restated Promissory Note of even date herewith (the
“Note”) and also to secure the performance of all covenants and agreements contained herein, the real estate known as and numbered 173 Winding River Road, Wellesley, MA 02482 (the “Premises”), which Premises are more particularly
described on the attached Exhibit A, together with all equipment and fixtures now or hereafter thereon, which are or can by agreement be made a part of the Premises, and all rights, licenses and easements now or hereafter appurtenant thereto.

  
 Mortgagor covenants and agrees with the Mortgagee as follows:

  
 1. The lien of this mortgage is subject and subordinate to the
lien of that certain mortgage, dated December 12, 2001, granted by Mortgagor to Boston Private Bank and Trust Company in the original principal amount of One Million Three Hundred Thousand Dollars ($1,300,000) that is recorded with the Norfolk
County Registry of Deeds at Book 15920, Page 526 (the “Prior Mortgage”). 
  
 2. Faithfully to perform all of the terms and provisions of the Prior Mortgage; promptly to give notice to the holder hereof of any notices received by Mortgagor from the holder of the Prior Mortgage relative to any
default or delinquency under the Prior Mortgage; upon the request of the holder hereof, to inform the holder hereof of the status of the Prior Mortgage; to keep the Prior Mortgage in good standing, free of any default, condition, or event which,
with the giving of notice or lapse of time, or both, would constitute a default thereunder; in the event the Mortgagor shall fail to pay any installment of indebtedness due under the Prior Mortgage on or before the same shall become due and payable,
the holder hereof shall have the right (but shall not be obligated) to make any such payment directly to the holders of the Prior Mortgage and any sums so advanced shall be and become a part of the obligations secured hereby; that upon any default
under the Prior Mortgage the holder hereof may (but shall not be obligated to) pay any sum which may be in default under the Prior Mortgage or advance any sum for the purpose of curing any default under the Prior Mortgage, and any sum or sums so
advanced shall be and become a part of the obligations secured hereby; that the curing by the holder hereof of any default under the Prior Mortgage as aforesaid shall not constitute the curing of the default hereunder which occurred by virtue of the
default under the Prior Mortgage. 
  
 3. To pay prior to the time
when interest starts to accrue all taxes, charges, assessments and all water and sewer charges assessed on the Premises or on any interest thereon and, at holder’s option, in order to ensure payment of all such items from time to time assessed
on the Premises, to pay to the holder on dates when installments of principal or interest are payable such sums as the holder determines are sufficient to provide in the aggregate a fund adequate to pay such taxes, charges, assessments and water and
sewer charges as they become due, all sums so paid to be applied by the holder toward such payment and any balance to be accounted for to Mortgagor, but without any responsibility on the part of the holder to account to 

  

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the Mortgagor for any interest, earnings or profits on or with respect to such payments except as provided by law. 
  
 4. To keep the Premises in good repair, order, and condition, and not to
commit or suffer any strip or waste thereof or any violation of any law or ordinance affecting the same or the use thereof (any such use prohibited or enjoined by any public official or court being conclusively deemed a violation for purposes of
this mortgage), or any act thereon tending to harm the Premises whether or not such act may constitute waste; and not to make nor permit any material alteration in the use, occupancy or structural condition of the Premises without in each instance
obtaining the prior written consent of the holder. 
  
 5. To keep
the buildings now or hereafter on the Premises insured against fire and such other hazards as the holder may from time to time require, all policies of such insurance or certificates thereof to be deposited with the holder, if the holder so
requests, and first payable in case of loss to the holder and to be written by such companies, on such terms, in such form and for such periods and amounts as the holder shall from time to time require (hereby irrevocably granting to the holder, in
the event of foreclosure, full authority as Mortgagor’s true and lawful attorney-in-fact, coupled with an interest, with full power of substitution, to cancel such insurance and retain the return premiums thereof or to transfer such insurance
to any person or persons claiming title to the Premises or any part thereof by virtue of foreclosure proceedings). 
  
 6. In case of a taking of the Premises or any part thereof by any public authority pursuant to the power of eminent domain, the proceeds of all judgments
and awards of damages and of all settlements made by the parties in interest shall be paid to the holder, and, at its option, maybe applied in whole or in part to the payment of the debt secured hereby or the holder may release the same to the owner
of the Premises. 
  
 7. At any time upon notice from the holder to
submit for examination all leases then in force affecting the Premises and on demand to assign and deliver to the holder any or all of such leases, such assignments to be made by instruments in form satisfactory to the holder (hereby irrevocably
granting to the holder full authority as Mortgagor’s true and lawful attorney- in-fact, coupled with an interest, with full power of substitution, to make, execute, acknowledge and deliver such assignments). 
  
 8. To pay to the holder on demand the amount of any tax assessed on the debt
or obligation (including both principal and interest) secured hereby, and also that portion of any tax on the holder’s deposits which may result from the fact that the amount invested in this mortgage is not exempt from such tax. 
  
 9. Not to purchase any equipment, fixtures or materials now or hereafter
becoming a part of the realty whether by agreement of the parties or otherwise which are subject to a security interest in favor of others unless prior written consent there has been obtained from the holder. 
  
 10. To permit the holder or the holder’s representative to examine the
Premises at any reasonable time. 
  

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 11. To not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances
on or in the Premises. Mortgagor shall not do, nor allow anyone else to do, anything affecting the Premises that is in violation of any Environmental Law. The preceding two sentences shall not apply to the presence, use, or storage on the Premises
of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Premises. 
  
 Mortgagor shall promptly give holder written notice of any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency
or private party involving the Premises and any Hazardous Substance or Environmental Law of which Mortgagor has actual knowledge. If Mortgagor learns, or is notified by any governmental or regulatory authority, that any removal or other remediation
of any Hazardous Substance affecting the Premises is necessary, Mortgagor shall promptly take all necessary remedial actions in accordance with Environmental Law. 
  
 As used in this paragraph 9, “Hazardous Substances” are those substances defined as toxic or hazardous substances
by Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials. As used
in this paragraph 9, “Environmental Law” means federal laws and laws of the jurisdiction where the Premises are located that relate to health, safety or environmental protection, including the Comprehensive Environmental Response
Compensation and Liability Act (“CERCLA”) of 1980, 42 U.S.C. Section 9601, et seq., as amended and “hazardous material” and “oil” as those terms are defined in the Massachusetts Hazardous Material Release Prevention and
Response Act, M.G.L. c.21E, as amended and regulation adopted pursuant to such acts. 
  
 The Mortgagor agrees to hold harmless and indemnify the holder against all damages, claims, losses and liabilities, including attorneys’ fees, incurred by the holder on account of the existence of any Hazardous
Substances on the Premises to the extent that the existence of the Hazardous Substances on the Premises was caused by the acts or omissions of Mortgagor on or after the date of this mortgage. In addition, the holder may (but shall not be obligated
to) from time to time, at the Mortgagor’s expense, conduct such investigations as the holder deems reasonable to determine whether Hazardous Substances exist on any part of the Premises. 
  
 12. To indemnify and hold harmless the Mortgagee from and against any and all
claims, demands, losses, judgments and liabilities (including liabilities for penalties) of whatever kind or nature, and will reimburse the Mortgagee for all costs and expenses, including attorneys’ fees, growing out of or resulting from the
exercise by the Mortgagee of any right or remedy granted to it under this mortgage. In no event shall the holder be liable for any manner or thing in connection with this mortgage other than to account for monies actually received by and in
accordance with the terms hereof. 
  
 13. In case any default in
any covenant or condition of this mortgage or other agreements herein referred to, if any, shall exist: the entire mortgage debt shall become due at the option of the holder; the holder shall have the right to enter immediately upon and take
possession of the Premises without consent of the owner thereof and without the commencement of any action to foreclose this mortgage; the holder shall have the further right, with or without 

  

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such possession, to collect and receive all rents, issues, and profits arising out of or in connection with the Premises and to apply the same (after the
payment of all necessary charges and expenses in connection with the operation of the Premises, including any managing agent’s commission) toward any sums due the holder under the terms hereof and of said Note; and the holder, to cure such
default, may apply any deposits or any sums credited by or due from the holder to Mortgagor (without being first required to enforce any other rights of the holder against Mortgagor, or against the Premises). 
  
 14. In the event that title to the Premises becomes vested in anyone other
than Mortgagor the entire mortgage debt shall, at the option of the holder, become due and payable on demand; however, the holder may without notice to Mortgagor deal with such successor in interest with reference to the mortgage, the Premises and
the debt hereby secured, in the same manner as with Mortgagor, without in any way discharging the liability of the Mortgagor or of any endorser or guarantor under the mortgage or upon the debt hereby secured. 
  
 15. No forbearance on the part of the holder, and no change, modification or
extension, whether oral or in writing, of the time or manner for the payment of the whole or any part of the debt hereby secured or change in the interest rate on said debt, or any other indulgence given by the holder to the Mortgagor or to any
other party claiming any interest in or to the Premises, shall operate to release or in any manner affect the original liability of Mortgagor or of any endorser or guarantor, notice of any such change, modification, extension, or indulgence being
waived. 
  
 16. If there shall any breach in any condition or
covenant of this mortgage, the Mortgagee shall have the right, but without any obligation so to do, to cure such default for the account of the Mortgagor and, to the fullest extent permissible according to law, apply any funds credited by or due
from the Mortgagee to the Mortgagor against the same (without any obligation first to enforce any other rights of the Mortgagee, including, without limitation, any rights under this mortgage, or any guarantee thereof, and without prejudice to any
such rights). Without limiting the generality of the foregoing, the Mortgagor hereby authorizes the Mortgagee to pay all taxes, sewer use fees, water rates and assessments, costs, and charges accrued thereon, with interest, which may at any time be
a lien upon the Premises, or any part thereof; to pay the premiums for any insurance required hereunder; or to incur and pay reasonable expenses in protecting its ‘rights hereunder and the security hereby granted; and the payment of all amounts
so expended or incurred shall be secured hereby as fully and effectually as any other obligation of the Mortgagor secured hereby; and, to the fullest extent permissible according to law, to apply to any of these purposes or to the repayment of any
amounts so paid by the Mortgagee any sums paid on this mortgage by the Mortgagor as interest or otherwise. 
  
 17. The holder, in the exercise of the power of sale herein given, may sell the entire Premises or any part thereof, in any order, as elected by the
holder in its sole discretion; and in case the holder elects to sell in parcels, the sales of such parcels may be held from time to time and the power shall not be exhausted until all of the Premises not previously released shall have been sold.

  
 18. In the event of a conflict between the terms of this
mortgage and that certain Amended and Restated Loan and Pledge Agreement between Mortgagee and Arthur M. Krieg, 

  

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which Amended and Restated Loan and Pledge Agreement was executed on May 8, 2001, and is being amended on or about the date hereof, the terms of this
mortgage shall govern. 
  
 The word “holder” as used
herein shall be construed as descriptive of Mortgagee named herein and of any subsequent holder or holders hereof; the word “Mortgagor” as used herein shall be construed as descriptive of Mortgagor named herein and of any subsequent owner
or owners of the equity of redemption of the Premises; and all of the covenants and agreements of Mortgagor herein contained shall be joint and several if Mortgagor is more than one person and shall be binding upon the heirs, executors,
administrators, successors and assigns of Mortgagor. 
  
 This
MORTGAGE is upon the STATUTORY CONDITION, and upon the further condition that all covenants and agreements of Mortgagor herein and in said Note contained shall be kept and fully performed for any breach of which the holder hereof shall have the
STATUTORY POWER OF SALE. 
  
 For Mortgagor’s title, see deed
to Mortgagor filed with the Norfolk Registry of Deeds in Book 15043, Page 262. 
  
 [The remainder of this page has been intentionally left blank.] 
  

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 Executed under seal this 10 day of April 2002. 
  

	
	
	/s/    ARTHUR M. KRIEG        
	Arthur M. Krieg
	
	/s/    DEBORAH KRIEG        
	Deborah Krieg

  
 COMMONWEALTH
OF MASSACHUSETTS 
  
 Norfolk, ss 
  
 On this 10th day of April 2002, before me personally appeared Arthur M. Krieg, to me known to be the person described in and who executed the foregoing instrument,
and acknowledged that he executed the same as his free act and deed. 
  

					
			
	[SEAL]	 	 	 	/s/    JEAN M. ROBERTSON        
	 	 	 	 	Notary Public Jean M. Robertson
	 	 	 	 	My commission expires: 3/22/2007

  
 COMMONWEALTH OF
MASSACHUSETTS 
  
 Norfolk, ss 
  
 On this 10th day of April, 2002, before me personally appeared Deborah Krieg, to me known to be the person described in and who executed the foregoing instrument, and
acknowledged that she executed the same as her free act and deed. 
  

					
			
	[SEAL]	 	 	 	/s/    JEAN M. ROBERTSON        
	 	 	 	 	Notary Public Jean M. Robertson
	 	 	 	 	My commission expires: 3/22/2007

  

 6FORM OF CHANGE OF CONTROL AGREEMENTS

 Exhibit 10.14 
  
 COLEY PHARMACEUTICAL GROUP, INC. 
  
 Change of Control Agreement 
  

This Change of Control Agreement, effective as of
                             is entered into by and between Coley Pharmaceutical Group, Inc., a
Delaware corporation (the “Company”), with its principal offices located at 20 William Street, Suite 115, Wellesley, Massachusetts 02481, and
                             (the “Executive”). 
  
 The Executive is employed by the Company and the Company and the Executive
desire to arrange for certain provisions applicable in the event of termination of the Executive’s employment in the circumstances provided herein. The Executive is a skilled and dedicated employee who has important management responsibilities
and talents which benefit the Company. The Company believes that its best interests will be served if the Executive is encouraged to remain with the Company. The Company has determined that the Executive’s ability to perform the
Executive’s responsibilities and utilize the Executive’s talents for the benefit of the Company, and the Company’s ability to retain the Executive as an employee, will be significantly enhanced if the Executive is provided with fair
and reasonable protection from the risks of a change in ownership or control of Company. Accordingly, the Company and the Executive agree as follows: 
  
 1. Change of Control Payments; Benefits. 
  
 1.1 Termination Events Resulting in Change of Control Payments. 
  
 (a) Following a “Change of Control” (as
hereinafter defined) of the Company, in the event of the termination of the Executive’s employment by the Company, or its successor, without cause, within twenty-four (24) months after such Change of Control, then the Company shall make Change
of Control payments to the Executive in the amount set forth in, and payable in accordance with, Section 1.2 (a). 
  
 (b) In the event of the termination of the Executive’s employment by the Executive for “Good Reason” (as defined below)
within twenty-four (24) months after a “Change of Control” (as defined below), then the Company shall make Change of Control payments to the Executive in the amount set forth in, and payable in accordance with, Section 1.2 (a). 

 
 (i) For purposes of this Agreement, a “Change of
Control” shall mean the occurrence of any one of the following: 
  
 A. the acquisition by any “person” (as such term is defined in Section 3(a)(9) of the Securities Exchange Act of 1934), other than the Company or its affiliates, from any party of an amount of the capital
stock of the Company, so that such person holds or controls 50% or more of the Company’s capital stock; or 
  

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 B. a merger or similar combination between the Company and another entity after which
50% or more of the voting stock of the surviving corporation is held by persons other than the Company or its affiliates; or 
  
 C. a merger or similar combination (other than with the Company) in which the Company is not the surviving corporation; or 
  
 D. an acquisition, merger or similar combination or a
divestiture of a substantial portion of the Company’s business after which the Executive’s role is not substantially the same as such role prior to the transaction; 
  
 E. the sale of all or substantially all of the Company’s assets or business; or 
  
 (ii) For purposes of this Agreement, “Good
Reason” shall mean the following involuntary circumstances: 
  
 A. assignment to the Executive of any duties inconsistent in any material respect with the Executive’s position (including titles and reporting requirements), authority, duties or responsibilities as contemplated
by the job description of the Executive’s position, or any other action by the Company or its successor, which results in a diminution in such position, authority, duties or responsibilities, other than an isolated, insubstantial and
inadvertent action not taken in bad faith and which is remedied by the Company promptly after receipt of written notice thereof given by the Executive; 
  
 B. a reduction in the Executive’s annual base salary (or an adverse change in the form or timing of the payment thereof), other than
an isolated, insubstantial and inadvertent action not taken in bad faith and which is remedied by the Company promptly after receipt of written notice thereof given by the Executive; or the elimination of or reduction of any benefit under any bonus,
incentive or other employee benefit plan in effect on the day immediately preceding the Change in Control, without an economically equivalent replacement, if Executive was a participant or member of such plan on the day immediately preceding the
Change in Control; 
  
 C. the Company’s or
its successor’s requiring the Executive (i) to be based at any office or location more than 25 miles away from the office or location where Executive was performing services immediately prior to the Change in Control, or (ii) to relocate his
personal residence, or (iii) the Company’s requiring the Executive to travel on Company business to a substantially greater extent than required immediately prior to the Change in Control. 
  
 For purposes of this Section 1.1 (b)(ii), any good faith determination of
“Good Reason” made by the Executive shall be conclusive. 
  
 (c) No Change of Control payments shall be payable in the event that the Executive’s employment is terminated (i) by the Executive, except in accordance with Section 1.1(b) above, or (ii) by the Company in the
event of (x) the Executive’s 

  

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breach of any material duty or obligation to the Company, or (y) intentional or grossly negligent conduct that is materially injurious to the Company (as
reasonably determined by the Company’s Board of Directors), or (z) the willful failure of the Executive to follow the reasonable directions of the Company’s executive officers or Board of Directors. 
  
 (d) Anything in this Agreement to the contrary
notwithstanding, if a Change of Control occurs and if the Executive’s employment is terminated prior to the date on which the Change of Control occurs, and if it is reasonably demonstrated by the Executive that such termination of employment
(i) was at the request of a third party who has taken steps reasonably calculated to effect a Change of Control or (ii) otherwise arose in connection with or anticipation of a Change of Control, then for all purposes of this Agreement change of
Control payments shall be payable. 
  
 1.2
Amount and Payment of Change of Control Payments. 
  
 (a) The aggregate Change of Control payment referred to in Sections 1.1(a) and 1.1(b) above shall be equal to the sum of (1) one-twelfth (1/12th) of the Executive’s annual base salary at the time of such termination multiplied by twelve (12) months, plus (2) an amount equal to one-twelfth
(1/12th) of the Executive’s maximum annual incentive bonus multiplied by twelve (12) months, if any, that would
next be payable to him or her and would otherwise be due to the Executive if such termination had not occurred, such sum to be payable in one lump sum not later than thirty (30) days after date of termination of the Executive’s employment by
the Company (the “Termination Date”). 
  
 (b) The Executive shall not be required to mitigate the amount of any payment provided for in this Section 1.2 by seeking other employment or otherwise. The amount of any payment or benefit provided for in this Section 1.2 shall not be
reduced as the result of employment by the Executive with another employer after the Termination Date, or otherwise. 
  
 (c) Until the anniversary of the Termination Date, the Executive shall be entitled to participate in the Company’s medical, dental,
and life insurance plans, at the highest level provided to the Executive during the period beginning immediately prior to the Change in Control and ending on the Termination Date, and at no greater cost than the cost the Executive was paying
immediately prior to Change in Control; provided, however, that if the Executive becomes employed by a new employer, the Executive’s coverage under the applicable Coley plans shall continue, but the Executive’s coverage
thereunder shall be secondary to (i.e., reduced by) any benefits provided under like plans of such new employer. 
  
 (d) Payment of Accrued But Unpaid Amounts. Within ten (10) business days after the Termination Date, Coley shall pay
Executive: 
  
 (i) earned but unpaid
compensation, including, without limitation, any unpaid portion of the Executive’s Bonus accrued with respect to the full calendar year ended prior to the Termination Date; and 
  

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 (ii) all compensation previously deferred by the Executive on a non-qualified basis but
not yet paid. 
  
 (e) Retiree-Medical
Benefits. If the Executive is, or would become fifty-five (55) or older, or the Executive’s age and service equal fifty-five (55) and Executive has at least two (2) years of service with the Company within two (2) years of Change in
Control, the Executive is eligible for retiree medical benefits (as such are determined immediately prior to Change in Control). The Executive is eligible to commence receiving such retiree medical benefits based on the terms and conditions of the
applicable plans in effect immediately prior to the Change in Control. 
  
 1.3 Option Vesting. If the Executive’s employment with the Company is terminated pursuant to Sections 1.1(a) or 1.1(b), 100% of any options to purchase shares of Common Stock of the Company then
held by the Executive, which options are then subject to vesting, shall, notwithstanding any contrary provision in the option agreement or stock option plan pursuant to which such options had been granted, be accelerated and become fully vested and
exercisable on the date immediately preceding the effective Termination Date. All other terms of the Executive’s options shall remain in full force and effect. 
  
 1.4 Lapsing Purchase Right. If the Executive’s employment with the Company is terminated
pursuant to Sections 1.1(a) or 1.1(b) and, on the date immediately preceding the effective date of such termination, the Executive then holds (i) any shares of Common Stock of the Company received upon exercise of stock options granted to the
Executive, which shares are subject to a “Lapsing Purchase Right,” and/or (ii) any outstanding options to purchase shares of Common Stock of the Company, which, upon exercise thereof, would result in the issuance to the Executive of shares
of Common Stock subject to a “Lapsing Purchase Right,” then, notwithstanding any contrary provision in the relevant option agreement or stock option plan pursuant to which such options had been granted, such Lapsing Purchase Right shall
expire in its entirety with respect to shares of Common Stock then outstanding and with respect to shares of Common Stock issuable upon exercise of outstanding stock options, on the date immediately preceding the Termination Date and all of such
shares of Common Stock shall become transferable free of restriction (upon issuance, in the case of the exercise of outstanding stock options), subject to the applicable provisions of federal and state securities laws. All other terms of the
Executive’s options shall remain in full force and effect. 
  
 1.5 Restricted Stock. If the Executive’s employment with the Company is terminated pursuant to Sections 1.1(a) or 1.1(b) and, on the date immediately preceding the Date of Termination, the Executive
then holds shares of Common Stock of the Company that are subject to restrictions on transfer (“Restricted Stock”), which shares were issued to the Executive in a transaction other than pursuant to the exercise of a stock option, then,
notwithstanding any contrary provision in the relevant stock purchase agreement or other instrument pursuant to which the Executive acquired such shares of Restricted Stock, such restrictions shall expire in their entirety on the date immediately
preceding the Termination Date and all of such shares of Common Stock shall become transferable free of restriction, subject to the applicable provisions of federal and state securities laws. All other terms of any existing stock purchase or similar
document shall remain in full force and effect. 
  

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 2. Gross-Up. 
  
 2.1 Gross-Up Payment. In the event it shall be determined that any payment, benefit or distribution (or combination thereof)
by the Company, or one or more trusts established by the Company for the benefit of its employees, to or for the benefit of the Executive (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement, or
otherwise), including any Change of Control Payment paid in accordance with Sections 1.1(a) or 1.1(b) (a “Payment”) would be subject to the excise tax imposed by Section 4999 of the Code or any interest or penalties are incurred by
the Executive with respect to such excise tax (such excise tax, together with any such interest and penalties, hereinafter collectively referred to as the “Excise Tax”), the Executive shall be entitled to receive an additional payment (a
“Gross-Up Payment”) in an amount such that after payment by Executive of all taxes (including any interest or penalties imposed with respect to such taxes), including, without limitation, any income taxes (and any interest and
penalties imposed with respect thereto) and the Excise Tax imposed upon the Gross-Up Payment, the Executive retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Payment(s). 
  
 2.2 Determination of Gross-Up Payments
– Accounting Firm. Subject to the provisions of Section 2.3 hereof, all determinations required to be made under this Section 2, including whether and when a Gross-Up Payment is required and the amount of such Gross-Up Payment and the
assumptions to be utilized in arriving at such determination, shall be made by a nationally recognized certified public accounting firm as may be designated by the Executive (the “Accounting Firm”) which shall provide detailed
supporting calculations both to the Company and the Executive within fifteen (15) business days of the receipt of written notice from the Executive that there has been a Payment, or such earlier time as is requested by the Company. In the event that
the Accounting Firm is serving as accountant or auditor for an individual, entity or group effecting the change in ownership or effective control (within the meaning of Section 280G of the Code), the Executive shall appoint another nationally
recognized accounting firm to make the determinations required hereunder (which accounting firm shall then be referred to as the Accounting Firm hereunder). All fees and expenses of the Accounting Firm shall be borne solely by the Company. Any
Gross-Up Payment, as determined pursuant to this Section 2, shall be paid by the Company to the Executive within five (5) business days after the receipt of the Accounting Firm’s determination. If the Accounting Firm determines that no Excise
Tax is payable by the Executive, it shall so indicate to the Executive in writing. Any determination by the Accounting Firm shall be binding upon the Company and the Executive. As a result of the uncertainty in the application of Section 4999 of the
Code at the time of the initial determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments which will not have been made by Company should have been made (each an “Underpayment”), consistent with the
calculations required to be made hereunder. In the event that the Company exhausts its remedies pursuant to Section 2.3 hereof and the Executive thereafter is required to make a payment of any Excise Tax, the Accounting Firm shall determine the
amount of the Underpayment that has occurred and any such 

  

 5 

 
Underpayment shall be promptly paid by the Company to or for the benefit of the Executive. 
  
 2.3 Claim Effecting Gross-Up. The Executive shall notify the Company in writing of any written
claim by the Internal Revenue Service that, if successful, would require the payment by the Company of the Gross-Up Payment. Such notification shall be given as soon as practicable, but no later than ten (10) business days after the Executive is
informed in writing of such claim and shall apprise the Company of the nature of such claim and the date on which such claim is requested to be paid (but the Executive’s failure to comply with this notice obligation shall not eliminate his or
her rights under this Section 2 except to the extent the Company’s defense against the imposition of the Excise Tax is actually prejudiced by any such failure). The Executive shall not pay such claim prior to the expiration of the thirty (30)
day period following the date on which he or she gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company notifies the Executive in writing prior to the
expiration of such period that it desires to contest such claim, the Executive shall: 
  
 (a) Give the Company any information reasonably requested by the Company relating to such claim; 
  
 (b) take such action in connection with contesting such
claim as the Company shall reasonably request in writing, from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney reasonably selected by the Company; 
  
 (c) cooperate with the Company in good faith in order to
effectively contest such claim; and 
  
 (d)
permit the Company to participate in any proceedings relating to such claim; 
  
 provided, however, that the Company shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with such contest and shall indemnify and hold the Executive harmless,
on an after-tax basis, for any Excise Tax or income tax (including interest and penalties with respect thereto) imposed as a result of such representation and payment of costs and expenses. Without limitation on the foregoing provisions of this
Section 2.3 hereof, the Company shall control all proceedings taken in connection with such contest and, at its sole option, may pursue or forego any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in
respect of such claim and may, at its sole option, either direct the Executive to pay the tax claimed and sue for a refund, or contest the claim in any permissible manner, and the Executive agrees to prosecute such contest to a determination before
any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine; provided, however, that if the Company directs the Executive to pay such claim and sue for a refund,
the Company shall advance the amount of such payment to the Executive, on an interest-free basis, and shall indemnify and hold the Executive harmless, on an after-tax basis, 

  

 6 

 
from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed with respect to such advance or with respect to any imputed
income with respect to such advance; and provided, further, that if the Executive is required to extend the statute of limitations to enable the Company to contest such claim, the Executive may limit this extension solely to such
contested amount. The Company’s control of the contest shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder and the Executive shall be entitled to settle or contest, as the case may be, any other issue
raised by the Internal Revenue Service or any other taxing authority. 
  
 If,
after the receipt by the Executive of an amount advanced by the Company pursuant to Section 2.3, Executive receives any refund with respect to such claim, Executive shall (subject to Company’s complying with the requirements of Section 2(c))
promptly pay to the Company the amount of such refund (together with any interest paid or credited thereon after taxes applicable thereto). If, after the receipt by the Executive of an amount advanced by the Company pursuant to Section 2.3, a
determination is made that the Executive shall not be entitled to any refund with respect to such claim and the Company does not notify the Executive in writing of its intent to contest such denial of refund prior to the expiration of thirty (30)
days after such determination, then such advance shall be forgiven. 
  
 3.
Confidentiality and Noncompetition. 
  
 3.1 Confidentiality and Noncompetion Agreements. The Executive confirms that as of the date hereof he or she has executed, or agrees that he or she will execute, the Company’s standard Confidentiality and Noncompetition
Agreement pursuant to which the Executive has (i) agreed to refrain from disclosing the Company’s confidential information, and (ii) covenanted not to compete with the Company as described in such standard Confidentiality and Noncompetition
Agreement. 
  
 3.2 Noncompetition Payments
- Enforcement of Noncompetition Covenant. 
  
 (a) Subject to the provisions of Section 2.2, following the termination of the Executive’s employment with the Company, the Company may enforce its rights with respect to the Executive’s noncompetition covenant set forth in the
Company’s standard Confidentiality and Noncompetition Agreement only if: 
  
 (i) in the event that the employment of the Executive by the Company is terminated and the Executive is entitled to Change of Control payments under the terms of Section 1.1 or any other agreement or understanding
between the parties, the Company makes a Change of Control payment to the Executive hereunder and continues to provide benefits to the Executive for a total of six (6) months after the Termination Date as set forth herein; or 
  
 (ii) in the event that the employment of the Executive by
the Company is terminated and the Executive is not entitled to Change of Control payments under the terms of Section 1.1 or any other agreement or understanding between the 

  

 7 

 
parties, the Company makes a Change of Control payment to the Executive hereunder; or 
  
 (iii) during the six-month period commencing with the first week after termination, the Company makes any
payments under another agreement or understanding between the parties which, together with any voluntary payments by the Company, equal or exceed the amount payable under Section 1.2. 
  
 (b) The Company’s obligations under Section 2 are subject to the following: 
  
 (i) In the event that Executive breaches the covenant set
forth in the Company’s standard Confidentiality and Noncompetition Agreement, the Company may enforce such covenant without continuing benefits under Section 1.2 after the date of such breach. 
  
 (ii) In the event that the Company makes payments and
provides benefits under Section 2, the Company may only terminate such benefits prior to the end of such six-month period if the Company has provided the Executive with two month’s prior written notice of such termination; provided,
however, that this clause (ii) does not entitle the Company to terminate payments required by Section 1.1 or under any other agreement prior to payment in full. In the event of any such early termination of payments, the Company’s right
to enforce the Executive’s non-competition covenant set forth in the Company’s standard Confidentiality and Noncompetition Agreement will terminate upon the date of the last payment hereunder. 
  
 4. Miscellaneous. 
  
 4.1 Assignment. This Agreement may not be
assigned, in whole or in part, by either party without the prior written consent of the other party, except that the Company shall assign its rights and obligations under this Agreement to any corporation, firm or other business entity with or into
which the Company may merge or consolidate, or to which the Company may sell or transfer all or substantially all of its assets, or of which 50% or more of the equity investment and of the voting control is owned, directly or indirectly, by, or is
under common ownership with, the Company. In the event of any such assignment by the Company. 
  
 4.2 Notices. All notices, requests, demands and other communications to be given pursuant to this Agreement shall be in
writing and shall be deemed to have been duly given if delivered by hand or mailed by registered or certified mail, return receipt requested, postage prepaid, to the addresses set forth at the beginning of this Agreement or such other address as a
party shall have designated by notice in writing to the other party, provided that notice of any change in address must actually have been received to be effective hereunder. 
  

 8 

 4.3 Integration. This Agreement is the entire agreement of the parties with
respect to the subject matter hereof and supersedes any prior agreement or understanding relating to the subject matter hereof. This Agreement may not be superseded, amended, supplemented or otherwise modified except by a writing signed by the
Executive and the Company. 
  
 4.4 Binding
Effect. Subject to Section 4.1, this Agreement shall inure to the benefit of and be binding upon the parties hereto and their successors, assigns, heirs and personal representatives. 
  
 4.5 Counterparts. This Agreement may be
executed in two counterparts, each of which shall be deemed an original and shall together constitute one and the same instrument. 
  
 4.6 Severability. If any provision hereof shall, for any reason, be held to be invalid or unenforceable in any respect, such
invalidity or unenforceability shall not affect any other provision hereof, and this Agreement shall be construed as if such invalid or unenforceable provision had not been included herein. If any provision hereof shall for any reason be held by a
court to be excessively broad as to duration, geographical scope, activity or subject matter, it shall be construed by limiting and reducing it to make it enforceable to the extent compatible with applicable law as then in effect. 
  
 4.7 Governing Law. This Agreement shall be
governed by the laws of The Commonwealth of Massachusetts, without regard to its conflict-of-law provisions. 
  
 4.8 Termination. Nothing in this Agreement is intended to or shall modify the at-will nature of the Executive’s
employment relationship with the Company. The Executive may terminate his or her employment at any time with or without notice and with or without cause and the Company may do likewise, subject only to the express provisions of this Agreement.

  
 4.9 Survival of Obligations;
Enforcement. The Executive’s duties hereunder shall survive termination of the Executive’s employment by the Company. The Executive acknowledges that a remedy at law for any breach or threatened breach by the Executive of the
provisions of this Agreement may be inadequate and the Executive therefore agrees that the Company shall be entitled to injunctive relief in case of any such breach or threatened breach. 
  
 IN WITNESS WHEREOF, the undersigned have duly executed and delivered this Agreement under seal as of the date first written
above. 
  

			
	EXECUTIVE
	
	 
	 Name:
	 	 

  

 9 

					
	 COLEY PHARMACEUTICAL GROUP, INC.

		
	 By:
	 	 
	 	 	 Name:
	 	 Robert L. Bratzler

	 	 	 Title:
	 	 President and CEO

  

 10 

 List of Employees with Change of Control Agreement 
  
 Holger Ammon 
 Robert D. Ludovico 
 Ross Pettit 
 Justin Renz 
 Tess Schmalbach 
 David Schubert

 Iain Sim 
 Eugen Uhlmann 
 Benjamin Andrusaitis (pending) 
 Kevin Gillis (pending) 
 Edward Hibben (pending) 
  

  
 COLEY PHARMACEUTICAL
GROUP, INC. 
  
 Change of Control Agreement 

 
 This Change of Control Agreement, effective as of
                     is entered into by and between Coley Pharmaceutical Group, Inc., a Delaware corporation (the “Company”),
with its principal offices located at 20 William Street, Suite 115, Wellesley, Massachusetts 02481, and
                         (the “Executive”). 
  
 The Executive is employed by the Company and the Company and the Executive desire to arrange for certain provisions
applicable in the event of termination of the Executive’s employment in the circumstances provided herein. The Executive is a skilled and dedicated employee who has important management responsibilities and talents which benefit the Company.
The Company believes that its best interests will be served if the Executive is encouraged to remain with the Company. The Company has determined that the Executive’s ability to perform the Executive’s responsibilities and utilize the
Executive’s talents for the benefit of the Company, and the Company’s ability to retain the Executive as an employee, will be significantly enhanced if the Executive is provided with fair and reasonable protection from the risks of a
change in ownership or control of Company. Accordingly, the Company and the Executive agree as follows: 
  
 1. Change of Control Payments; Benefits. 
  
 1.1 Termination Events Resulting in Change of Control Payments. 
  
 (a) Following a “Change of Control” (as
hereinafter defined) of the Company, in the event of the termination of the Executive’s employment by the Company, or its successor, without cause, within twenty-four (24) months after such Change of Control, then the Company shall make Change
of Control payments to the Executive in the amount set forth in, and payable in accordance with, Section 1.2 (a). 
  
 (b) In the event of the termination of the Executive’s employment by the Executive for “Good Reason” (as defined below)
within twenty-four (24) months after a “Change of Control” (as defined below), then the Company shall make Change of Control payments to the Executive in the amount set forth in, and payable in accordance with, Section 1.2 (a). 

 
 (i) For purposes of this Agreement, a “Change of
Control” shall mean the occurrence of any one of the following: 
  
 A. the acquisition by any “person” (as such term is defined in Section 3(a)(9) of the Securities Exchange Act of 1934), other than the Company or its affiliates, from any party of an amount of the capital
stock of the Company, so that such person holds or controls 50% or more of the Company’s capital stock; or 
  

 1 

 B. a merger or similar combination between the Company and another entity after which
50% or more of the voting stock of the surviving corporation is held by persons other than the Company or its affiliates; or 
  
 C. a merger or similar combination (other than with the Company) in which the Company is not the surviving corporation; or 
  
 D. an acquisition, merger or similar combination or a
divestiture of a substantial portion of the Company’s business after which the Executive’s role is not substantially the same as such role prior to the transaction; 
  
 E. the sale of all or substantially all of the Company’s assets or business; or 
  
 (ii) For purposes of this Agreement, “Good
Reason” shall mean the following involuntary circumstances: 
  
 A. assignment to the Executive of any duties inconsistent in any material respect with the Executive’s position (including titles and reporting requirements), authority, duties or responsibilities as contemplated
by the job description of the Executive’s position, or any other action by the Company or its successor, which results in a diminution in such position, authority, duties or responsibilities, other than an isolated, insubstantial and
inadvertent action not taken in bad faith and which is remedied by the Company promptly after receipt of written notice thereof given by the Executive; 
  
 B. a reduction in the Executive’s annual base salary (or an adverse change in the form or timing of the payment thereof), other than
an isolated, insubstantial and inadvertent action not taken in bad faith and which is remedied by the Company promptly after receipt of written notice thereof given by the Executive; or the elimination of or reduction of any benefit under any bonus,
incentive or other employee benefit plan in effect on the day immediately preceding the Change in Control, without an economically equivalent replacement, if Executive was a participant or member of such plan on the day immediately preceding the
Change in Control; 
  
 C. the Company’s or
its successor’s requiring the Executive (i) to be based at any office or location more than 25 miles away from the office or location where Executive was performing services immediately prior to the Change in Control, or (ii) to relocate his
personal residence, or (iii) the Company’s requiring the Executive to travel on Company business to a substantially greater extent than required immediately prior to the Change in Control. 
  
 For purposes of this Section 1.1 (b)(ii), any good faith determination of
“Good Reason” made by the Executive shall be conclusive. 
  
 (c) No Change of Control payments shall be payable in the event that the Executive’s employment is terminated (i) by the Executive, except in accordance with Section 1.1(b) above, or (ii) by the Company in the
event of (x) the Executive’s 

  

 2 

 
breach of any material duty or obligation to the Company, or (y) intentional or grossly negligent conduct that is materially injurious to the Company (as
reasonably determined by the Company’s Board of Directors), or (z) the willful failure of the Executive to follow the reasonable directions of the Company’s executive officers or Board of Directors. 
  
 (d) Anything in this Agreement to the contrary
notwithstanding, if a Change of Control occurs and if the Executive’s employment is terminated prior to the date on which the Change of Control occurs, and if it is reasonably demonstrated by the Executive that such termination of employment
(i) was at the request of a third party who has taken steps reasonably calculated to effect a Change of Control or (ii) otherwise arose in connection with or anticipation of a Change of Control, then for all purposes of this Agreement change of
Control payments shall be payable. 
  
 1.2
Amount and Payment of Change of Control Payments. 
  
 (a) The aggregate Change of Control payment referred to in Sections 1.1(a) and 1.1(b) above shall be equal to the sum of (1) one-twelfth (1/12th) of the Executive’s annual base salary at the time of such termination multiplied by twenty-four (24) months, plus (2) an amount equal to one-twelfth
(1/12th) of the Executive’s maximum annual incentive bonus multiplied by twenty-four (24) months, if any, that
would next be payable to him or her and would otherwise be due to the Executive if such termination had not occurred, such sum to be payable in one lump sum not later than thirty (30) days after date of termination of the Executive’s employment
by the Company (the “Termination Date”). 
  
 (b) The Executive shall not be required to mitigate the amount of any payment provided for in this Section 1.2 by seeking other employment or otherwise. The amount of any payment or benefit provided for in this
Section 1.2 shall not be reduced as the result of employment by the Executive with another employer after the Termination Date, or otherwise. 
  
 (c) Until the second anniversary of the Termination Date, the Executive shall be entitled to participate in the Company’s medical,
dental, and life insurance plans, at the highest level provided to the Executive during the period beginning immediately prior to the Change in Control and ending on the Termination Date, and at no greater cost than the cost the Executive was paying
immediately prior to Change in Control; provided, however, that if the Executive becomes employed by a new employer, the Executive’s coverage under the applicable Coley plans shall continue, but the Executive’s coverage
thereunder shall be secondary to (i.e., reduced by) any benefits provided under like plans of such new employer. 
  
 (d) Payment of Accrued But Unpaid Amounts. Within ten (10) business days after the Termination Date, Coley shall pay
Executive: 
  
 (i) earned but unpaid
compensation, including, without limitation, any unpaid portion of the Executive’s Bonus accrued with respect to the full calendar year ended prior to the Termination Date; and 
  

 3 

 (ii) all compensation previously deferred by the Executive on a non-qualified basis but
not yet paid. 
  
 (e) Retiree-Medical
Benefits. If the Executive is, or would become fifty-five (55) or older, or the Executive’s age and service equal fifty-five (55) and Executive has at least two (2) years of service with the Company within two (2) years of Change in
Control, the Executive is eligible for retiree medical benefits (as such are determined immediately prior to Change in Control). The Executive is eligible to commence receiving such retiree medical benefits based on the terms and conditions of the
applicable plans in effect immediately prior to the Change in Control. 
  
 1.3 Option Vesting. If the Executive’s employment with the Company is terminated pursuant to Sections 1.1(a) or 1.1(b), 100% of any options to purchase shares of Common Stock of the Company then
held by the Executive, which options are then subject to vesting, shall, notwithstanding any contrary provision in the option agreement or stock option plan pursuant to which such options had been granted, be accelerated and become fully vested and
exercisable on the date immediately preceding the effective Termination Date. All other terms of the Executive’s options shall remain in full force and effect. 
  
 1.4 Lapsing Purchase Right. If the Executive’s employment with the Company is terminated
pursuant to Sections 1.1(a) or 1.1(b) and, on the date immediately preceding the effective date of such termination, the Executive then holds (i) any shares of Common Stock of the Company received upon exercise of stock options granted to the
Executive, which shares are subject to a “Lapsing Purchase Right,” and/or (ii) any outstanding options to purchase shares of Common Stock of the Company, which, upon exercise thereof, would result in the issuance to the Executive of shares
of Common Stock subject to a “Lapsing Purchase Right,” then, notwithstanding any contrary provision in the relevant option agreement or stock option plan pursuant to which such options had been granted, such Lapsing Purchase Right shall
expire in its entirety with respect to shares of Common Stock then outstanding and with respect to shares of Common Stock issuable upon exercise of outstanding stock options, on the date immediately preceding the Termination Date and all of such
shares of Common Stock shall become transferable free of restriction (upon issuance, in the case of the exercise of outstanding stock options), subject to the applicable provisions of federal and state securities laws. All other terms of the
Executive’s options shall remain in full force and effect. 
  
 1.5 Restricted Stock. If the Executive’s employment with the Company is terminated pursuant to Sections 1.1(a) or 1.1(b) and, on the date immediately preceding the Date of Termination, the Executive
then holds shares of Common Stock of the Company that are subject to restrictions on transfer (“Restricted Stock”), which shares were issued to the Executive in a transaction other than pursuant to the exercise of a stock option, then,
notwithstanding any contrary provision in the relevant stock purchase agreement or other instrument pursuant to which the Executive acquired such shares of Restricted Stock, such restrictions shall expire in their entirety on the date immediately
preceding the Termination Date and all of such shares of Common Stock shall become transferable free of restriction, subject to the applicable provisions of federal and state securities laws. All other terms of any existing stock purchase or similar
document shall remain in full force and effect. 
  

 4 

 2. Gross-Up. 
  
 2.1 Gross-Up Payment. In the event it shall be determined that any payment, benefit or distribution (or combination thereof)
by the Company, or one or more trusts established by the Company for the benefit of its employees, to or for the benefit of the Executive (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement, or
otherwise), including any Change of Control Payment paid in accordance with Sections 1.1(a) or 1.1(b) (a “Payment”) would be subject to the excise tax imposed by Section 4999 of the Code or any interest or penalties are incurred by
the Executive with respect to such excise tax (such excise tax, together with any such interest and penalties, hereinafter collectively referred to as the “Excise Tax”), the Executive shall be entitled to receive an additional payment (a
“Gross-Up Payment”) in an amount such that after payment by Executive of all taxes (including any interest or penalties imposed with respect to such taxes), including, without limitation, any income taxes (and any interest and
penalties imposed with respect thereto) and the Excise Tax imposed upon the Gross-Up Payment, the Executive retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Payment(s). 
  
 2.2 Determination of Gross-Up Payments
– Accounting Firm. Subject to the provisions of Section 2.3 hereof, all determinations required to be made under this Section 2, including whether and when a Gross-Up Payment is required and the amount of such Gross-Up Payment and the
assumptions to be utilized in arriving at such determination, shall be made by a nationally recognized certified public accounting firm as may be designated by the Executive (the “Accounting Firm”) which shall provide detailed
supporting calculations both to the Company and the Executive within fifteen (15) business days of the receipt of written notice from the Executive that there has been a Payment, or such earlier time as is requested by the Company. In the event that
the Accounting Firm is serving as accountant or auditor for an individual, entity or group effecting the change in ownership or effective control (within the meaning of Section 280G of the Code), the Executive shall appoint another nationally
recognized accounting firm to make the determinations required hereunder (which accounting firm shall then be referred to as the Accounting Firm hereunder). All fees and expenses of the Accounting Firm shall be borne solely by the Company. Any
Gross-Up Payment, as determined pursuant to this Section 2, shall be paid by the Company to the Executive within five (5) business days after the receipt of the Accounting Firm’s determination. If the Accounting Firm determines that no Excise
Tax is payable by the Executive, it shall so indicate to the Executive in writing. Any determination by the Accounting Firm shall be binding upon the Company and the Executive. As a result of the uncertainty in the application of Section 4999 of the
Code at the time of the initial determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments which will not have been made by Company should have been made (each an “Underpayment”), consistent with the
calculations required to be made hereunder. In the event that the Company exhausts its remedies pursuant to Section 2.3 hereof and the Executive thereafter is required to make a payment of any Excise Tax, the Accounting Firm shall determine the
amount of the Underpayment that has occurred and any such 

  

 5 

 
Underpayment shall be promptly paid by the Company to or for the benefit of the Executive. 
  
 2.3 Claim Effecting Gross-Up. The Executive shall notify the Company in writing of any written
claim by the Internal Revenue Service that, if successful, would require the payment by the Company of the Gross-Up Payment. Such notification shall be given as soon as practicable, but no later than ten (10) business days after the Executive is
informed in writing of such claim and shall apprise the Company of the nature of such claim and the date on which such claim is requested to be paid (but the Executive’s failure to comply with this notice obligation shall not eliminate his or
her rights under this Section 2 except to the extent the Company’s defense against the imposition of the Excise Tax is actually prejudiced by any such failure). The Executive shall not pay such claim prior to the expiration of the thirty (30)
day period following the date on which he or she gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company notifies the Executive in writing prior to the
expiration of such period that it desires to contest such claim, the Executive shall: 
  
 (a) Give the Company any information reasonably requested by the Company relating to such claim; 
  
 (b) take such action in connection with contesting such
claim as the Company shall reasonably request in writing, from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney reasonably selected by the Company; 
  
 (c) cooperate with the Company in good faith in order to
effectively contest such claim; and 
  
 (d)
permit the Company to participate in any proceedings relating to such claim; 
  
 provided, however, that the Company shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with such contest and shall indemnify and hold the Executive harmless,
on an after-tax basis, for any Excise Tax or income tax (including interest and penalties with respect thereto) imposed as a result of such representation and payment of costs and expenses. Without limitation on the foregoing provisions of this
Section 2.3 hereof, the Company shall control all proceedings taken in connection with such contest and, at its sole option, may pursue or forego any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in
respect of such claim and may, at its sole option, either direct the Executive to pay the tax claimed and sue for a refund, or contest the claim in any permissible manner, and the Executive agrees to prosecute such contest to a determination before
any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine; provided, however, that if the Company directs the Executive to pay such claim and sue for a refund,
the Company shall advance the amount of such payment to the Executive, on an interest-free basis, and shall indemnify and hold the Executive harmless, on an after-tax basis, 

  

 6 

 
from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed with respect to such advance or with respect to any imputed
income with respect to such advance; and provided, further, that if the Executive is required to extend the statute of limitations to enable the Company to contest such claim, the Executive may limit this extension solely to such
contested amount. The Company’s control of the contest shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder and the Executive shall be entitled to settle or contest, as the case may be, any other issue
raised by the Internal Revenue Service or any other taxing authority. 
  
 If,
after the receipt by the Executive of an amount advanced by the Company pursuant to Section 2.3, Executive receives any refund with respect to such claim, Executive shall (subject to Company’s complying with the requirements of Section 2(c))
promptly pay to the Company the amount of such refund (together with any interest paid or credited thereon after taxes applicable thereto). If, after the receipt by the Executive of an amount advanced by the Company pursuant to Section 2.3, a
determination is made that the Executive shall not be entitled to any refund with respect to such claim and the Company does not notify the Executive in writing of its intent to contest such denial of refund prior to the expiration of thirty (30)
days after such determination, then such advance shall be forgiven. 
  
 3.
Confidentiality and Noncompetition. 
  
 3.1 Confidentiality and Noncompetion Agreements. The Executive confirms that as of the date hereof he or she has executed, or agrees that he or she will execute, the Company’s standard Confidentiality and Noncompetition
Agreement pursuant to which the Executive has (i) agreed to refrain from disclosing the Company’s confidential information, and (ii) covenanted not to compete with the Company as described in such standard Confidentiality and Noncompetition
Agreement. 
  
 3.2 Noncompetition Payments
- Enforcement of Noncompetition Covenant. 
  
 (a) Subject to the provisions of Section 2.2, following the termination of the Executive’s employment with the Company, the Company may enforce its rights with respect to the Executive’s noncompetition covenant set forth in the
Company’s standard Confidentiality and Noncompetition Agreement only if: 
  
 (i) in the event that the employment of the Executive by the Company is terminated and the Executive is entitled to Change of Control payments under the terms of Section 1.1 or any other agreement or understanding
between the parties, the Company makes a Change of Control payment to the Executive hereunder and continues to provide benefits to the Executive for a total of six (6) months after the Termination Date as set forth herein; or 
  
 (ii) in the event that the employment of the Executive by
the Company is terminated and the Executive is not entitled to Change of Control payments under the terms of Section 1.1 or any other agreement or understanding between the 

  

 7 

 
parties, the Company makes a Change of Control payment to the Executive hereunder; or 
  
 (iii) during the six-month period commencing with the first week after termination, the Company makes any
payments under another agreement or understanding between the parties which, together with any voluntary payments by the Company, equal or exceed the amount payable under Section 1.2. 
  
 (b) The Company’s obligations under Section 2 are subject to the following: 
  
 (i) In the event that Executive breaches the covenant set
forth in the Company’s standard Confidentiality and Noncompetition Agreement, the Company may enforce such covenant without continuing benefits under Section 1.2 after the date of such breach. 
  
 (ii) In the event that the Company makes payments and
provides benefits under Section 2, the Company may only terminate such benefits prior to the end of such six-month period if the Company has provided the Executive with two month’s prior written notice of such termination; provided,
however, that this clause (ii) does not entitle the Company to terminate payments required by Section 1.1 or under any other agreement prior to payment in full. In the event of any such early termination of payments, the Company’s right
to enforce the Executive’s non-competition covenant set forth in the Company’s standard Confidentiality and Noncompetition Agreement will terminate upon the date of the last payment hereunder. 
  
 4. Miscellaneous. 
  
 4.1 Assignment. This Agreement may not be
assigned, in whole or in part, by either party without the prior written consent of the other party, except that the Company shall assign its rights and obligations under this Agreement to any corporation, firm or other business entity with or into
which the Company may merge or consolidate, or to which the Company may sell or transfer all or substantially all of its assets, or of which 50% or more of the equity investment and of the voting control is owned, directly or indirectly, by, or is
under common ownership with, the Company. In the event of any such assignment by the Company. 
  
 4.2 Notices. All notices, requests, demands and other communications to be given pursuant to this Agreement shall be in
writing and shall be deemed to have been duly given if delivered by hand or mailed by registered or certified mail, return receipt requested, postage prepaid, to the addresses set forth at the beginning of this Agreement or such other address as a
party shall have designated by notice in writing to the other party, provided that notice of any change in address must actually have been received to be effective hereunder. 
  

 8 

 4.3 Integration. This Agreement is the entire agreement of the parties with
respect to the subject matter hereof and supersedes any prior agreement or understanding relating to the subject matter hereof. This Agreement may not be superseded, amended, supplemented or otherwise modified except by a writing signed by the
Executive and the Company. 
  
 4.4 Binding
Effect. Subject to Section 4.1, this Agreement shall inure to the benefit of and be binding upon the parties hereto and their successors, assigns, heirs and personal representatives. 
  
 4.5 Counterparts. This Agreement may be
executed in two counterparts, each of which shall be deemed an original and shall together constitute one and the same instrument. 
  
 4.6 Severability. If any provision hereof shall, for any reason, be held to be invalid or unenforceable in any respect, such
invalidity or unenforceability shall not affect any other provision hereof, and this Agreement shall be construed as if such invalid or unenforceable provision had not been included herein. If any provision hereof shall for any reason be held by a
court to be excessively broad as to duration, geographical scope, activity or subject matter, it shall be construed by limiting and reducing it to make it enforceable to the extent compatible with applicable law as then in effect. 
  
 4.7 Governing Law. This Agreement shall be
governed by the laws of The Commonwealth of Massachusetts, without regard to its conflict-of-law provisions. 
  
 4.8 Termination. Nothing in this Agreement is intended to or shall modify the at-will nature of the Executive’s
employment relationship with the Company. The Executive may terminate his or her employment at any time with or without notice and with or without cause and the Company may do likewise, subject only to the express provisions of this Agreement.

  
 4.9 Survival of Obligations;
Enforcement. The Executive’s duties hereunder shall survive termination of the Executive’s employment by the Company. The Executive acknowledges that a remedy at law for any breach or threatened breach by the Executive of the
provisions of this Agreement may be inadequate and the Executive therefore agrees that the Company shall be entitled to injunctive relief in case of any such breach or threatened breach. 
  
 IN WITNESS WHEREOF, the undersigned have duly executed and delivered this Agreement under seal as of the date first written
above. 
  

	
	EXECUTIVE
	
	 
	 Name:

  

 9 

					
	COLEY PHARMACEUTICAL GROUP, INC.
			
	By:	 	 	 	 
	 	 	 Name:
	 	 Robert L. Bratzler

	 	 	 Title:
	 	 President and CEO

  

 10 

  
 List of Employees with
Change of Control Agreement 
  
 Charles Abdalian 
 Steven Bernitz 
 Heather Davis 
 Arthur Krieg 
 Christian Schetter 
 John Whisnant 
 Charles Yon

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}]]