Exhibit 10.8
Execution Copy
SEVERANCE AGREEMENT AND GENERAL RELEASE
This Severance Agreement and General Release (this “ Agreement ”) is made and entered into by and between Leon
Ekchian (“ Mr. Ekchian ”), on the one hand, and Arrowhead Research Corporation (the “ Company ”), on the other hand. This
Agreement is made with reference to the following facts:
1. Severance Payment. In consideration of the promises and releases set forth herein, the Company will pay Mr. Ekchian
$255,000.00, less all applicable statutory withholdings and deductions; payable in one lump sum by check or wire transfer on the
eighth day after Mr. Ekchian executes this Agreement (the “ Effective Date ”), or, if such day is a day on which national banks
are closed, the following business day.
2. Stock Options. The Company, by vote of its Board of Directors, (i) extends Mr. Ekchian’s vested options to purchase
50,000 shares of the Company’s Common Stock (the “ Common Stock ”) until the close of business on December 31, 2006 (the “
Expiration Date ”), and (ii) immediately vests Mr. Ekchian’s unvested options in the amount of 83,333 shares (700,000/42 * 5) of
the Common Stock with an exercise price of $3.90 per share of Common Stock, which options will be immediately exercisable as
of the Effective Date until the close of business on the Expiration Date, after which time, these options shall expire and shall not
be exercisable.
3. Expenses; Legal Fees . The Company has reimbursed Mr. Ekchian for all unreimbursed expenses incurred in his capacity
as an officer or director of the Company on or prior to June 2, 2006, in accordance with the Company’s current policies and
procedures. Mr. Ekchian agrees and acknowledges that he has no further unreimbursed expenses incurred in his capacity as an
officer or director of the Company. In addition, the Company shall pay Mr. Ekchian a lump sum of $25,000 for legal fees on the
Effective Date.
4. General Release by Mr. Ekchian. Mr. Ekchian, on behalf of himself and his heirs, spouse