Exhibit 10.9 


 


EMPLOYMENT AGREEMENT


 


This EMPLOYMENT AGREEMENT (the
“Agreement”) is dated and entered into as of June 10, 2016 by and between Accelerated Pharma, Inc., a
corporation organized under the laws of the State of Delaware (the “Company”), and Michael Fonstein, PhD.
(the “Executive”).


 


WHEREAS, the Executive is currently employed
as the Company’s Chief Executive Officer; and


 


WHEREAS, the Company desires to continue
to employ the Executive in such capacity, and the Executive desires to continue such employment in such capacity, in each case
on the terms and conditions contained herein.


 


NOW, THEREFORE, in consideration of the
foregoing premises and mutual covenants and agreements herein, and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereby agree as follows:


 


1.          Term
of Employment. Subject to the provisions of Section 5 of this Agreement, the Executive shall be employed by the Company for
a period commencing on the date of the consummation of the Qualified Offering (defined below) (the “Effective Date”)
and ending on the third (3rd) anniversary of the Effective Date (the “Term”). The Term shall be renewed automatically
for additional one (1) year period(s) unless terminated by the Company in writing by notice to Executive delivered no fewer than
ninety (90) days prior to expiration of the then-applicable Term.


 


2.          Position.


 


(a)          Duties.
The principal duties of the Executive shall be to serve in the position of Chief Executive Officer of the Company. As Chief Executive
Officer, the Executive shall render full time services to the Company as an executive officer of the Company and shall be responsible
for the overall management of the business of the Company, including all tasks and responsibilities normally associated with the
office of Chief Executive Officer of clinical stage biotechnology company of similar size and nature to the Company, all subject
to the direction and control of the Board of Directors of the Company (the “Board”). All references to the “Board”
in this Agreement shall include any committee of the Board (including the Compensation Committee of the Board) that has been or
is in the future delegated the power of the Board to oversee and manage the compensation of the Company’s officers and employees.


 


(b)          Devotion
of Time to Company’s Business. The Executive shall use his best efforts, skills and abilities to promote and protect
the interests of the Company and devote the substantial portion of his working time and energies to the business and affairs of
the Company. Notwithstanding anything to the contrary contained herein, the Executive (i) may serve on the board(s) of additional
companies or organizations and receive compensation for such services rendered (ii) may engage in charitable, civic, fraternal,
professional, trade association or other activities on behalf of private companies and receive compensation for such services rendered,
provided that in each such case the activities engaged in by the Executive do not materially interfere with his primary obligations
to the Company, do not compete with the Company and do not materially reduce the amount of his working time devoted to the business
and affairs of the Company. All such activities shall be reported to the Board prior to the Executive undertaking such activities
(other than those activities (all of which have been disclosed to the Company by Executive) engaged in as of the Effective Date).


 




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(c)          Directors
and Officers Liability Insurance. During the Term and for a period of six years thereafter, the Company, or any successor to
the Company resulting from a change in control, shall maintain a directors and officers liability insurance policy (or policies)
in a minimum amount of $5,000,000 which shall provide comprehensive coverage to Executive.


 


(d)          Best
Efforts. The Executive shall use his best efforts to carry out and successfully complete the assignments, tasks and job activities
required, from time to time, to be performed to carry out Executive’s duties and responsibilities during the Term. The Executive’s
duties and assignments shall be undertaken at such location(s) as may be determined from time to time by the Company, but in no
event shall Executive be required to perform his duties on a regular basis at any location more than 25 miles from the location
where Executive regularly performs his duties for the Company immediately prior to the Effective Date.


 


(e)          Company
Rules, Policies and Regulations. The Executive shall, at all times, conduct himself in a professional manner and adhere to
the standards, ethical obligations, rules, policies, regulations and procedures of the Company which are presently in force or
which may be established from time to time by the Company. Executive shall take no intentional action that violates any law, rule
or regulation whatsoever while acting in his capacity as employee.


 


3.            Compensation
and Benefits.


 


(a)        Financing
Bonus. Upon the consummation by the Company of a financing or series of related financings in which the Company receives aggregate
gross proceeds of $9 million ($9,000,000) (a “Qualified Financing”), the Executive shall be entitled to receive
a one-time cash bonus of $81,900.


 


(b)        Base
Salary. As of the Effective Date, the Executive shall be paid a base salary in consideration for his services provided to the
Company at the rate of $365,000 per annum (the “Base Salary”), payable in accordance with the Company’s
normal payroll practices. Increases in Base Salary during the Term other than the foregoing shall be determined from time to time
in the sole discretion of the Board based upon such criteria as they deem relevant, or based on no particular criteria whatsoever;
provided that, the minimum increase to the Base Salary shall be 5% per annum.


 


(c)        Additional
Compensation. The Executive shall have an annual bonus target equal to 50% of the then current Base Salary for each calendar
year during the Term (the “Annual Bonus” and, together with the Base Salary, the “Annual Compensation”).
The Annual Bonus shall be determined by the Board in its sole discretion based upon criteria and goals to be established by the
Board in consultation with the Executive and the Company’s other executive officers. The Annual Bonus shall be paid to the
Executive on or prior to the March 15 following the end of the year for which such Annual Bonus was earned; provided, that if the
criteria for determining the Annual Bonus requires a review of the Company’s audited financial statements, management performance
and impact on company’s business plan, the Annual Bonus (if payable) shall be paid no later than the 10th day following the
publishing of such audited financial statements (but in no event shall such payment violate Section 409A (“Section 409A”)
of the Internal Revenue Code of 1986, as amended (“Code”). The Executive also shall be entitled to receive additional
cash, equity or other compensation or benefits in consideration for his services provided to the Company, at such times and in
such amounts as shall be determined in the sole discretion of the Board. The Board shall conduct a review not less than once each
year, and such additional compensation, if any, shall be based on, among other things, the Executive’s and the Company’s
performance; provided, that any such additional compensation shall be structured and/or paid in a manner that avoids or complies
with the requirements of Section 409A.


 




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(d)        Equity
Awards, etc.


 


(i)          As
of the consummation of a Qualified Financing, the Executive shall receive a one-time grant of stock options (the “Initial
Option Grant”) to purchase shares of Company common stock in an amount equal to 0.82% percent of the primary shares of
Company common stock outstanding as of such date. The Initial Option Grant: (A) shall be issued under and be subject to the terms
of the Company’s 2016 Equity Incentive Plan (the “Plan”), (B) will vest in thirty-six (36) equal monthly
installments beginning on the one month anniversary of the the consummation of a Qualified Financing, (C) will have a per share
exercise price equal to the Fair Market Value (as defined in the Plan) of a share of Company common stock on the consummation of
a Qualified Financing and (D) shall provide for cashless exercise (in accordance with the applicable provisions of the Plan); and


 


(ii)         In
addition to the other compensation payable to the Executive hereunder, the Executive shall be entitled to receive grants of stock
options, restricted stock and/or any other equity incentive awards available to senior executives of the Company, under the Plan
or any other equity incentive plans adopted by the Company, at such times and in such amounts as shall be determined in the sole
discretion of the Board.


 


(e)        Tax
Gross-Up Payment. Upon the occurrence of a Change in Control (as defined below) of the Company, if all or any portion of the
payments provided under this Agreement and/or any other payments and benefits that the Executive receives or is entitled to receive
from the Company or an affiliate thereof (should the Executive be entitled to the same in accordance with the terms hereof or such
other benefits) constitutes an “excess parachute payment” within the meaning of Section 280G(b)(1) of the Code (each
such payment, a “Parachute Payment”), and would result in the imposition on the Executive of an excise tax under
Section 4999 of the Code (“Excise Tax”), then in addition to any other benefits to which the Executive is entitled
under this Agreement, the Company shall pay the Executive an additional amount in cash (the “Gross-Up Payment”)
such that the net amount received by the Executive in connection with the Change in Control, after payment of (i) any Excise Tax
and (ii) any Federal, state and local income and employment taxes on the Gross-Up Payment by Executive, shall be equal to the aggregate
Parachute Payments payable to the Executive. For purposes of determining the amount of the Gross-Up Payment, the Executive shall
be deemed to pay Federal income tax at the highest marginal rate of Federal income taxation in the calendar year in which the Gross-Up
Payment is to be made and state and local income taxes at the highest marginal rate of taxation in the state or locality of the
Executive’s residence in the calendar year in which the Gross-Up Payment is to be made, net of the maximum reduction in Federal
income taxes which could be obtained from deduction of such state and local taxes. Any Gross-Up Payment due to the Executive under
this Section 3(e) shall be paid to the Executive no later than the end of the year following the year in which the Executive or
the Company paid the related taxes.


 


(f)        Withholding.
All salaries, bonuses and other benefits payable to the Executive shall be subject to payroll, withholding and other taxes or deductions
as may be required by law.


 




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4.          Employee
Benefits; Business Expenses.


 


(a)          Employee
Benefits. During the Term, the Executive and his dependents shall be entitled to participate in the Company’s healthcare
plans, welfare benefit plans, life insurance plans or policies, fringe benefit plans and any qualified or non-qualified retirement
plans as in effect from time to time (collectively, the “Employee Benefits”), on the same basis as those benefits
are made available to the other senior executives of the Company, in accordance with the Company policy as in effect from time
to time and in accordance with the terms of the applicable plan documents (if any). If at any time the Company does provide a health
insurance plan for which the Executive is eligible, the Executive shall be entitled to reimbursement by the Company of the cost
of health insurance paid by the Executive for the Executive and his family. Any such reimbursement shall be paid to the Executive
not later than March 15 of the year following the calendar year in which the Executive paid such cost. To the extent that the Company
does not provide a health insurance plan for which the Executive is eligible, the Executive shall be entitled to reimbursement
by the Company of the cost of health insurance paid by the Executive for the Executive and his family, which reimbursement shall
be grossed-up to cover any taxes the Executive would be required to pay as the result of the Company reimbursing the Executive
for the cost of the Executive’s health plan.


 


(b)          Perquisites.
During the Term, the Executive shall be entitled to receive such perquisites as are made available to other senior executives of
the Company in accordance with Company policies as in effect from time to time.


 


(c)          Expenses.
The Executive shall be entitled to reimbursement for reasonable and necessary business expenses incurred by him in the performance
of his duties and responsibilities hereunder, such expenses to be documented and reimbursed in accordance with the Company’s
reimbursement and expenses policies as in effect from time to time.


 


(d)          Vacation.
The Executive shall be entitled to four (4) weeks paid vacation per annum; provided, that the Executive shall be paid annually
in cash for vacation days not taken by him; provided that no more than four (4) weeks of vacation may be accrued each year for
purposes of such cash payments; and provided further that any such payment shall be paid to the Executive not later than March
15 of the year following the calendar year in which the unused vacation days accrued.


 


5.          Termination.


 


(a)          Definitions.
For purposes of this Agreement:


 


(i)         “Cause”
shall mean (A) the Executive’s gross negligence and/or willful misconduct (as such terms are generally understood and applied
to the performance of an executive) in the performance of his material duties with respect to the Company as determined, in each
case, by a court of competent jurisdiction not subject to further appeal or a final arbitration award, as provided hereunder, (B)
the conviction by the Executive of a crime constituting a felony or (C) the Executive shall have committed any material act of
malfeasance, disloyalty, dishonesty or breach of fiduciary duty against the Company, for which the Executive shall have a ten (10)
day cure period following notice thereof from the Company (except for a conviction pursuant to subsection (B), for which there
shall be no cure period).


 


(ii)        “Change of Control”
means the occurrence of any one or more of the following events (it being agreed that, with respect to paragraphs (A) and (C) of
this definition below, a “Change of Control” shall not be deemed to have occurred if the applicable third party acquiring
party is an “affiliate” of the Company within the meaning of Rule 405 promulgated under the Securities Act of 1933,
as amended):


 


(A)         An
acquisition (whether directly from the Company or otherwise) of any voting securities of the Company (the “Voting Securities”)
by any “Person” (as the term person is used for purposes of Section 13(d) or 14(d) of the Securities and Exchange
Act of 1934, as amended (the “1934 Act”)), immediately after which such Person has “Beneficial Ownership”
(within the meaning of Rule 13d-3 promulgated under the 1934 Act) of forty percent (40%) or more of the combined voting power of
the Company’s then outstanding Voting Securities; or


 




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(B)         The individuals who, as of the
consummation of any transaction or series of related transactions described in paragraphs (A) and (C) of this definition, are members
of the Board cease, by reason of transactions, to constitute at least fifty-one percent (51%) of the members of the Board; or


 


(C)         The consummation, in one or
a series of related transactions, of:


 


(I)         A
merger, consolidation or reorganization involving the Company, where either or both of the events described in clauses (A) or (B)
above would be the result; or


 


(II)        The
sale or other disposition of all or substantially all of the assets of the Company to any Person (other than a transfer to a subsidiary
of the Company).


 


(iii)        “Date
of Termination” shall mean the date the Notice of Termination is given to the respective party; provided, however, that
with respect to a termination for Cause by the Company, the Date of Termination shall not occur prior to the expiration of any
applicable cure period.


 


(iv)        “Disability”
shall mean the Executive has become physically or mentally incapacitated and is therefore unable for a period of four (4) consecutive
months to perform any of the material elements of his duties hereunder. Any question as to whether the Executive has a Disability
as to which he (or his legal representative) and the Company cannot agree shall be determined in writing by a qualified independent
physician mutually acceptable to the Executive (or his legal representative) and the Company. If the Executive (or his legal representative)
and the Company cannot agree as to a qualified independent physician, each shall appoint such a physician and those two physicians
shall select a third who shall make such determination in writing. The determination of whether the Executive has a Disability,
as made in writing to the Company and the Executive by such physician(s), shall be final and conclusive for all purposes of this
Agreement.


 


(v)         “Good
Reason” shall mean (A) a breach by the Company of any of its material obligations or covenants or change to any of the
material terms set forth in this Agreement, (B) a material reduction of the duties, responsibilities or title of the Executive,
(C) the assignment to the Executive of any duties or responsibilities that are inconsistent, in any significant respect, with his
position, for which the Company shall have a ten (10) day cure period following notice thereof from Executive to the Company, (D)
an abandonment of, or fundamental change in, the primary business or primary products of the Company, (E) a Change of Control,
but only if the Executive’s termination occurs within twelve (12) months after the occurrence of such Change of Control.


 


(vi)       “Notice of Termination”
shall mean a notice which shall indicate the specific termination provision in this Agreement relied upon and shall set forth in
reasonable detail the facts and circumstances claimed to provide a basis for termination of employment under the provision so indicated,
and shall be communicated, in writing, to the other party hereto in accordance with the provisions of Section 10(g) hereof.


 


(b)          By
the Company for Cause or by the Executive Without Good Reason.


 




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(i)          The
Term and the Executive’s employment hereunder may be terminated by the Company for Cause, immediately upon the delivery of
a Notice of Termination by the Company to the Executive (except where the Executive is entitled to a cure period hereunder, in
which case such Date of Termination shall be upon the expiration of such cure period if such matter constituting Cause is not cured)
and shall terminate automatically upon the Executive’s resignation (other than for Good Reason or due to the Executive’s
death or Disability).


 


(ii)         If
the Executive’s employment is terminated by the Company for Cause, or if the Executive resigns other than for Good Reason,
the Executive shall be entitled to receive:


 


(A)         any
earned but unpaid Base Salary and/or accrued but unused vacation, all vested equity, and any earned but unpaid bonus awards through
the Date of Termination,


 


(B)         reimbursement
for any unreimbursed business expenses incurred by the Executive in accordance with the Company’s policy prior to the Date
of Termination (with such reimbursements to be paid promptly after the Executive provides the Company with the necessary documentation
of such expenses to the extent required by such policy but in no event later than the end of the second calendar month following
the year in which the Date of Termination occurred), and


 


(C)        such Employee Benefits, if any,
as to which he may be entitled upon termination of employment under the terms of the plan documents and applicable law (including
under the applicable provisions of Consolidated Omnibus Budget Reconciliation Act of 1985, as amended).


 


Following the Executive’s termination
of employment by the Company for Cause or if he resigns other than for Good Reason, except as set forth above or as required by
applicable law, the Executive shall have no further rights to any compensation or any other benefits or perquisites under this
Agreement and all unvested option or restricted stock grant awards shall immediately be cancelled without the need for any action
by the Company.


 


(c)          By
the Company Other Than for Cause or by the Executive for Good Reason.


 


(i)          The
Term and the Executive’s employment hereunder may be terminated by the Company other than for Cause, immediately upon the
delivery of a Notice of Termination by the Company to the Executive and shall terminate automatically and immediately upon the
Executive’s resignation for Good Reason at the end of any applicable cure period if the circumstances giving rise to Good
Reason are not cured.


 


(ii)         If the Executive’s employment
is terminated by the Company other than for Cause, or if the Executive resigns for Good Reason, the Executive shall receive and
the Company shall pay to Executive on the Date of Termination:


 


(A)        any earned but unpaid Base Salary
and/or accrued but unused vacation, all vested equity, and any earned but unpaid bonus awards through the Date of Termination,
plus an additional twelve (12) months of Annual Compensation (other than the case of a Change of Control, in which case the payment
shall be an additional eighteen (18) months of Annual Compensation), together in a lump sum payment;


 




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(B)        acceleration of any then-unvested
stock options, restricted stock grants or other equity awards;


 


(C)        payment or reimbursement, as
applicable, of the full health insurance costs for the Executive and his family under a Company-provided group health plan or otherwise
for twenty-four (24) months following termination by the Company other than for Cause or resignation by Executive for Good Reason,
provided that any such payment or reimbursement which constitutes deferred compensation under Section 409A shall be made annually
within thirty (30) days after the end of the calendar year in which the health insurance costs were incurred;


 


(D)        in the event any bonus or other
form of additional compensation is paid to any other executive(s) of the Company for the fiscal year during which Executive’s
employment ceased pursuant to this Section 5(c), a cash amount equal to the largest bonus or other form of additional compensation
payment made by the Company to any other executive of the Company during such fiscal year, provided that in the event such bonus
or other form of compensation is not ascertainable on the Date of Termination, such payment shall be made no later than March 15
of the year following the calendar year in which the Date of Termination occurred;


 


(E)        reimbursement for any accrued
but unused vacation days and/or unreimbursed business expenses incurred by the Executive in accordance with the Company’s
policy prior to the Date of Termination (with such reimbursements to be paid promptly after the Executive provides the Company
with the necessary documentation of such expenses to the extent required by such policy but in no event later than the end of the
second calendar month following the year in which the Date of Termination occurred); and


 


(F)        such other Employee Benefits,
if any, as to which he may be entitled upon termination of employment hereunder.


 


Following the Executive’s termination
of employment by the Company other than for Cause or if he resigns for Good Reason, except as set forth above or as required by
applicable law, the Executive shall have no further rights to any compensation or any other benefits under this Agreement. Notwithstanding
the foregoing, in order to be eligible for any of the severance payments and benefits under this Section 5(c), the Executive must
execute and deliver to the Company a general release in a form reasonably satisfactory to the Board. If the payments to be made
under this Section 5(c) are otherwise subject to Section 409A, they shall be made, or commence to be made, on the first pay period
following the date that is thirty (30) days after the Executive’s employment terminates. If the payments are not otherwise
subject to Section 409A, they shall be made, or commence to be made, on the first business day after the release becomes effective.
The initial payment shall include any unpaid amounts from the date the Executive’s employment terminated, subject to the
Executive’s executing and delivering the release on the terms as set forth above.


 


(d)          Death
or Disability. The Executive’s employment hereunder shall terminate upon the Executive’s death and may be terminated
by the Company, within ten (10) days after the delivery of a Notice of Termination by the Company to the Executive (or his legal
representative) in the event of the Executive’s Disability. Upon termination of the Executive’s employment hereunder
for either Disability or death, the Executive shall be entitled to receive the same payments and other items as set forth in clause
(ii) of Section 5(b) hereof, except that Executive (in case of Disability) or the estate (in the event of death) shall have the
right to exercise any unexercised and vested options for a period of 90 days, and, in addition, to receive payment for accrued
but unpaid vacation time, if any. Following the Executive’s termination of employment due to death or Disability, except
as set forth herein or as required by applicable law, the Executive (nor his estate) shall have no further rights to any compensation
or any other benefits under this Agreement.


 




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(e)          Payment
of Amounts Owed upon Termination of Employment. Unless otherwise provided herein, any amounts payable to the Executive for
earned but unpaid Base Salary and cash, equity or other bonus awards through the Date of Termination shall be paid within ten (10)
business days after the Date of Termination.


 


6.            Restrictive
Covenants.


 


(a)          Definitions.


 


(i)          “Confidential
Information” means all confidential and proprietary of, about, or relating to the Company and the Company Business, including,
without limitation, any and all documents received or generated by Executive, existing and potential customer lists, trade secrets
(as defined under applicable state law), pricing, financial, corporate, and personnel information, customer data, methods of operation,
business plans, techniques, prototypes, sketches, drawings, models, inventions, know-how, processes, apparatus, software programs,
computer codes, source codes, equipment, algorithms, source documents, formulae, methods, data, descriptions relating to current,
future, and proposed products and services, information concerning research, experimental work, development, specifications, engineering,
procurement requirements, purchasing, agents and suppliers, business forecasts, marketing plans and information received from third
parties (including customers) that is subject to a duty on Executive’s part to maintain its confidentiality. Confidential
Information does not include information that is generally known to the public, provided it is generally known to the public other
than as a result of disclosure of such information by Executive in violation of this Agreement.


 


(ii)         “Commercial
Partner” means each third party person or entity with whom Executive interacts on behalf of the Company during the term
of his employment with the Company, whether pursuant to this Agreement or otherwise, including, without limitation, licensors,
licensees, contract research organizations, contract sales organizations and joint venture partners; provided that, on the date
of the termination of Executive’s employment with the Company, Commercial Partner shall mean those third party persons and
entities with whom Executive interacted on behalf of the Company during the Lookback Period.


 


(iii)        “Company
Business” means the business(es) engaged in by the Company, from time to time during the term of Executive’s employment
with the Company, whether pursuant to this Agreement or otherwise; provided that, on the date of the termination of Executive’s
employment with the Company, the Company Business shall be the business(es) engaged in by the Company during the Lookback Period.


 


(iv)       “Former Employee”
means any person who has been employed or engaged as an independent contractor by the Company during the Look Back Period.


 


(v)        “Former Commercial
Partner” means each third party person or entity who is not a Commercial Partner but was a Commercial Partner during
the Look Back Period.


 




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(vi)      “Look Back Period”
means the two (2) year period immediately preceding the earlier of: (1) the date on which the definition in question is being determined;
or (2) the date when Executive is no longer employed by the Company, whether pursuant to this Agreement or otherwise.


 


(vii)      “Prospect”
means each person or entity who is not a Commercial Partner, and for whom, at any time during the Look Back Period, the Company,
whether through its employees, contractors or vendors, expended directed marketing efforts or undertook other business development
efforts which resulted in at least an indication of interest from such person or entity of becoming a Commercial Partner.


 


(viii)      “Territory”
means the United States and The Russian Federation/European Union and their respective territories and commonwealths.


 


(b)          Non-Solicitation,
Non-Competition and Non-Piracy. For the term of Executive’s employment, whether under this Agreement or otherwise, and
for a period of one (1) year after the cancellation, termination or expiration of Executive’s employment with the Company
(the “Restriction Period”), by whatever means and for whatever reason, Executive shall not, directly or indirectly,
individually, or jointly with others, for the benefit of Executive or any third party:


 


(i)          have
any equity or other ownership interest in, or become a director or manager of, or be otherwise associated with, or engaged or employed
by, any Commercial Partner, Prospect or Former Commercial Partner or their subsidiary or parent entities or affiliates in any job
or career that relates to or concerns any activity substantially similar, in whole or in part, to the Company Business;


 


(ii)         solicit,
render services to, or accept business from any Commercial Partner or Prospect or any of their subsidiary or parent entities or
affiliates for any business activity that relates to or concerns any activity substantially similar, in whole or in part, to the
Company Business; provided that Executive shall not be bound by the foregoing with respect to persons to whom Executive has made
sales or otherwise provided products and services prior to the date hereof; and provided further, however, if this Agreement is
terminated pursuant to Section 5(c), the restrictive covenant contained in this subsection shall only apply if Employee had ever
received the Base Salary and then only for so long as Employee receives payments under Section 5(c) in a timely manner; and


 


(iii)        solicit,
hire, compensate or engage as an employee, agent, contractor, shareholder, member, joint venturer, or consultant, whether or not
for consideration, any of the Company’s employees or otherwise induce any of the Company’s employees, subcontractors
or vendors to change their relationship with the Company.


 


(c)          Confidentiality.
Executive shall never: (i) disclose to any individual or entity any Confidential Information; and (ii) directly or indirectly give
or permit any individual or entity to have access to any Confidential Information; and (iii) make any use, commercial or otherwise,
of any Confidential Information, except, solely as reasonably required to perform Executive’s employment duties with the
Company and solely for the benefit of the Company.


 


(d)          Tolling
of Restriction Period. In the event of Executive’s breach of one or more of the provisions of this section, the running
of the Restriction Period shall be tolled during the continuation of such breach(es) and recommence only upon Executive’s
full and complete compliance with the provisions of this Section 6.


 




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(e)          Judicial
Modification. In the event a court of competent jurisdiction holds one or more of the provisions of the restrictive covenants
invalid as to length of time or geographic scope, then this Section 6 shall be amended to reflect a different length of time and/or
geographic scope.


 


7.          Works
for Hire and Intellectual Property. Executive acknowledges and agrees that: (a) all Work Product (as defined below) that so
qualifies shall be deemed a “work for hire” for all purposes and the property of the Company; and (b) he hereby assigns
all of his intellectual property and other rights in all other Work Product to the Company. All right, title and interest in and
to, and the right to pursue protection for, Work Product shall vest solely with the Company. Upon request by the Company, Executive
shall use all reasonable efforts to assist the Company in securing any intellectual property protection for Work Product and shall
execute all documents reasonably necessary to effect an assignment as contemplated herein. No license is granted to Executive in,
to or under any Work Product or other intellectual property (including, but not limited to, patents, trade secrets, copyrighted
materials and trademarks) owned, licensed or otherwise assertable by Executive by express or implied grant, estoppel or otherwise,
except for a limited right to use any such intellectual property solely in the performance of Executive’s employment duties
and solely for the benefit of the Company. All benefits from the use of any such intellectual property, including Work Product,
shall inure solely to the Company. “Work Product” means all tangible or intangible works: (X) (1) created, produced
or modified during or in connection with Executive’s employment by the Company; or (2) which are related to, or that can
be utilized in, the Company Business; and (Y) that could qualify as the subject matter of a copyright, patent, trade secret or
any other form of intellectual property; and shall include, without limitation, all work produced by or for the benefit of the
Company, any Company Affiliated Party, Commercial Partners, Former Commercial Partners and Prospects


 


8.          Company
Property. Executive agrees that all Company Property (as defined below) is the property solely of the Company and Executive
waives and relinquishes any and all interests or property rights he or she may have therein in favor of the Company. Executive
shall immediately return all of the Company Property to the Company at the Company’s address or such other location as may
be directed by the Company upon: (A) the Company’s request at any time; and (B) upon the termination of Executive’s
employment. “Company Property” includes, but is not limited to: (X) records relating to Commercial Partners,
Former Commercial Partners, Prospectus and Confidential Information in whatever form they exist, and by whomever prepared, including,
but not limited to, notes of Executive; (Y) tangible embodiments of or containing Work Product or Confidential Information; and
(Z) tangible and intangible property pertaining to the Company Business or arising out of or used by Executive in the performance
of his duties for the Company.


 


9.          Independent
Covenants; Scope and Injunctive Relief. Executive acknowledges and agrees that the provisions of sections 6, 7 and 8 hereof
are independent covenants and no actual or alleged breach by the Company of any provision of this Agreement or the employment
relationship shall be grounds for relieving Executive from his or her obligations thereunder. The parties acknowledge and agree
that the provisions of sections 6, 7 and 8 are necessary and reasonable to protect the legitimate business interest of the Company
and any violation of the provisions of such sections will result in irreparable injury to the Company, the exact amount of which
will be difficult to ascertain, and that the remedies at law for any such violation would not be reasonable or adequate compensation
to the Company for such violation. Accordingly, Executive agrees that if the provisions of sections 6, 7 or 8 are violated, in
addition to any other remedy which may be available in equity or at law, the Company shall be entitled to specific performance
and injunctive relief, without the necessity of proving actual damages or posting bond.





 




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10.         Miscellaneous.


 


(a)          Governing
Law. This Agreement shall be construed and governed under and by the laws of the State of Connecticut, without regard to the
conflicts of laws principles thereof.


 


(b)          Arbitration
of Claims. In the event of any dispute, claim, question or disagreement arising from or relating to this Agreement or the breach
thereof (and except for cases in which the Company is entitled to injunctive or other equitable relief as described in Section
9 hereof), the Company and Executive agree to settle the dispute, claim, question or disagreement by arbitration before a single
arbitrator in Fairfield County, Connecticut selected by, and such arbitration to be administered by, the American Arbitration Association
(“AAA”) in accordance with its Commercial Arbitration Rules, and judgment on the award rendered by the arbitrator
may be entered in any court having jurisdiction thereof. Each of the Company and Executive hereby agrees and acknowledges that
all disputes between or among them are subject to the alternative dispute resolution procedures of this Section 10(b). Each of
the Company and Executive agrees that any aspect of alternative dispute resolution not specifically covered in this Agreement shall
be covered, without limitation, by the applicable AAA rules and procedures. Each of the Company and Executive further agree that
any determination by the arbitrator regarding any dispute, claim, question or disagreement arising from or relating to this Agreement
shall be final and binding upon the parties hereto and shall not be subject to further appeal. Each of the Company and Executive
shall bear its own costs and expenses and an equal share of the arbitrator’s fees and administrative fees of arbitration;
provided, however, that upon receipt of the determination by the arbitrator the prevailing party shall have all reasonable out-of-pocket
fees and expenses reimbursed promptly (in all events within 10 calendar days following delivery to both parties of the arbitrator’s
decision) by the non-prevailing party in any such dispute.


 


(c)          Entire
Agreement; Amendments. This Agreement sets forth the entire understanding of the parties concerning the subject matter of this
Agreement and incorporates all prior negotiations and understandings. There are no covenants, promises, agreements, conditions
or understandings, either oral or written, between them relating to the subject matter of this Agreement other than those set forth
herein. The publication, amendment, supplementation or replacement of an employee handbook by the Company shall not be deemed to
alter, amend or modify the terms and conditions of this Agreement. No alteration, amendment, change or addition to this Agreement
shall be binding upon any party unless in writing and signed by the party to be charged. No purported waiver by any party of any
default by another party of any term or provision contained herein shall be deemed to be a waiver of such term or provision unless
the waiver is in writing and signed by the waiving party. No such waiver shall in any event be deemed a waiver of any subsequent
default under the same or any other term or provision contained herein. This Agreement may not be altered, modified, or amended
except by written instrument signed by the parties hereto.


 


(d)          No
Waiver. No waiver of any of the provisions of this Agreement, whether by conduct or otherwise, in any one or more instances,
shall be deemed or be construed as a further, continuing or subsequent waiver of any such provision or as a waiver of any other
provision of this Agreement. No failure to exercise and no delay in exercising any right, remedy or power hereunder will preclude
any other or further exercise of any other right, remedy or power provided herein or by law or in equity.


 


(e)          Severability.
If any term or provisions of this Agreement, or the application thereof to any person or circumstance, shall be invalid or unenforceable,
the remainder of this Agreement, or the application of such term or provision to persons or circumstances, other than those as
to which it is held invalid, shall both be unaffected thereby and each term or provision of this Agreement shall be valid and be
enforced to the fullest extent permitted by law.


 




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(f)          Assignment.
This Agreement, and all of the Executive’s rights and duties hereunder, shall not be assignable or delegable by the Executive;
provided, however, that if the Executive shall die, all amounts then payable to the Executive hereunder shall be paid in accordance
with the terms of this Agreement to the Executive’s devisee, legatee or other designee or, if there be no such devisee, legatee
or designee, to his estate. The Company and its successors and assigns may, at any time and from time to time, assign its rights
and obligations under this Agreement, including, without limitation, the rights arising pursuant to sections 6, 7 and 8, without
Executive’s consent in connection with a Change of Control. Upon such assignment, the rights and obligations of the Company
hereunder shall become the rights and obligations of such affiliate or successor person or entity.


 


(g)          Notices.
For the purpose of this Agreement, notices and all other communications provided for in the Agreement shall be in writing and shall
be deemed to have been duly given when delivered by hand or internationally recognized courier service addressed to the respective
addresses set forth below in this Agreement, or via facsimile or email transmission to the number or email address set forth below,
or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notice
of change of address shall be effective only upon receipt.


 


If to the Company:


 


Accelerated Pharma, Inc.


36 Church Lane


Westport, Connecticut 06880


Attention: Chief Financial Officer


Email: rsaluck@apipharmaceuticals.com


 


If to the Executive:


 


Michael Fonstein, PhD.


15w155 81st street


Burr Ridge, IL 60527


Email: mfonstein@apipharmaceuticals.com


 


(h)          Prior
Agreements. This Agreement supersedes all prior agreements and understandings (including verbal agreements) between the Executive
and the Company regarding the terms and conditions of the Executive’s employment with the Company.


 


(i)          Cooperation.
The Executive shall provide his reasonable cooperation in connection with any action or proceeding (or any appeal from any action
or proceeding) which relates to events occurring during the Executive’s employment hereunder, but only to the extent the
Company requests such cooperation with reasonable advance notice to the Executive and in respect of such periods of time as shall
not unreasonably interfere with the Executive’s ability to perform his duties with any subsequent employer; provided, however,
the Company shall pay any reasonable travel, lodging and related expenses that the Executive may incur in connection with providing
all such cooperation, to the extent approved by the Company prior to incurring such expenses.


 


(j)          Execution
and Counterparts. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered
one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other
party, it being understood that the parties need not sign the same counterpart. In the event that any signature is delivered by
facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and
binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if
such facsimile or “.pdf” signature page were an original thereof.


 




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(k)          Survival.
Sections 6, 7, 8 and 10 shall survive the termination, cancellation or expiration of this Agreement by whatever means for whatever
reason.


 


(l)          Section
409A.


 


(i)          The parties intend that the
payments and benefits provided for in this Agreement either be exempt from Section 409A, or be provided in a manner that complies
with Section 409A and any ambiguity herein shall be interpreted so as to be consistent with the intent of this paragraph. In no
event whatsoever shall the Company be liable for any additional tax, interest or penalty that may be imposed on the Executive by
Section 409A or damages for failing to comply with Section 409A. Notwithstanding anything contained herein to the contrary, all
payments and benefits which are payable upon a termination of employment hereunder shall be paid or provided only upon those terminations
of employment that constitute a “separation from service” from the Company within the meaning of Section 409A (determined
after applying the presumptions set forth in Treas. Reg. Section 1.409A-1(h)(1)). Further, if the Executive is a “specified
employee” as such term is defined under Section 409A at the time of a termination of employment and the deferral of the commencement
of any payments or benefits otherwise payable hereunder as a result of such termination of employment is necessary in order to
prevent any accelerated recognition of income or additional tax under Section 409A, then the Company will defer the commencement
of the payment of any such payments or benefits hereunder (without any reduction in payments or benefits ultimately paid or provided
to the Executive) until the date that is at least six (6) months following the Executive’s termination of employment with
the Company (or the earliest date permitted under Section 409A, e.g., immediately upon the Executive’s death), whereupon
the Company will promptly pay the Executive a lump-sum amount equal to the cumulative amounts that would have otherwise been previously
paid to the Executive under this Agreement during the period in which such payments or benefits were deferred. Thereafter, payments
will resume in accordance with this Agreement.


 


(ii)         Notwithstanding
anything to the contrary in this Agreement, in-kind benefits and reimbursements provided hereunder during any calendar year shall
not affect in-kind benefits or reimbursements to be provided in any other calendar year, other than an arrangement providing for
the reimbursement of medical expenses referred to in Section 105(b) of the Code, and are not subject to liquidation or exchange
for another benefit. Notwithstanding anything to the contrary in this Agreement, reimbursement requests must be timely submitted
by the Executive and, if timely submitted, reimbursement payments shall be promptly made to the Executive following such submission,
but in no event later than December 31st of the calendar year following the calendar year in which the expense was incurred. In
no event shall the Executive be entitled to any reimbursement payments after December 31st of the calendar year following the calendar
year in which the expense was incurred. This paragraph shall only apply to in-kind benefits and reimbursements that would result
in taxable compensation income to the Executive.


 


(iii)        Additionally, in the event
that following the date hereof the Company or the Executive reasonably determines that any compensation or benefits payable under
this Agreement may be subject to Section 409A, the Company and the Executive shall work together to adopt such amendments to this
Agreement or adopt other policies or procedures (including amendments, policies and procedures with retroactive effect), or take
any other commercially reasonable actions necessary or appropriate to (x) exempt the compensation and benefits payable under this
Agreement from Section 409A and/or preserve the intended tax treatment of the compensation and benefits provided with respect to
this Agreement or (y) comply with the requirements of Section 409A.


 


[Signature Page Follows]




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IN WITNESS WHEREOF, the parties hereto
have duly executed this Agreement as of the day and year first above written.


 


	 	ACCELERATED PHARMA, INC.
	 	 	 
	 	By:	/s/ Randy S. Saluck
	 	 	Name: Randy S. Saluck
	 	 	Title: Chief Financial Officer
	 	 	 
	 	EXECUTIVE:
	 	 
	 	/s/ Michael Fonstein
	 	Michael Fonstein


 








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