Exhibit 10.42


 


LEAK-OUT AGREEMENT


 


_______,
2022


 


This
agreement (the “Leak-Out Agreement”) is being delivered to you in connection with an understanding by and between
NeuroBo Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and the person or persons named on the
signature pages hereto (collectively, the “Holder”).


 


Reference
is hereby made to (a) the Underwriting Agreement, dated ________, 2022, by and among the Company and Ladenburg Thalmann &
Co. Inc. (“Ladenburg”), as representative of the several underwriters named therein (the “Underwriting Agreement”)
in connection with the follow-on public offering (the “Offering”) by the Company, pursuant to which the Holder and
certain other purchasers acquired (i) shares of voting common stock (“Common Stock”) of the Company (“Shares”),
(ii) Series B Convertible Preferred Stock of the Company (the “Preferred Shares”), (iii) Series A
Warrants of the Company to purchase Shares (the “Series A Warrants”) and (iv) Series B Warrants of
the Company to purchase Shares (the “Series B Warrants,” and together with the Shares, Preferred Shares, and
Series A Warrants, the “Securities”) and (b) the registration statement on Form S-1 (File No. 333-267482)
(the “Registration Statement”). Capitalized terms not defined herein shall have the meaning as set forth in the Underwriting
Agreement, unless otherwise set forth herein.


 


The
Holder agrees solely with the Company that from the pricing date of the Offering that the Underwriting Agreement is entered into by and
between the Company and Ladenburg and ending on the earlier of (i) the cumulative trading volume of the Company’s Common Stock
exceeds $45,000,000 and (ii) 5:00 pm (New York City time) on December 31, 2022 (such period, the “Restricted Period”),
neither the Holder, nor any affiliate of such Holder which (x) had or has knowledge of the transactions contemplated by the Underwriting
Agreement, (y) has or shares discretion relating to such Holder’s investments or trading or information concerning such Holder’s
investments, including in respect of the Securities, or (z) is subject to such Holder’s review or input concerning such affiliate’s
investments or trading (together, the “Holder’s Trading Affiliates”), collectively, shall sell, dispose or otherwise
transfer, directly or indirectly, (including, without limitation, any sales, short sales, swaps or any derivative transactions that would
be equivalent to any sales or short positions) on any Trading Day during the Restricted Period (any such date, a “Date of Determination”),
shares of Common Stock, or shares of Common Stock underlying any Common Stock Equivalents, as well as the shares of Common Stock issuable
upon conversion of the Preferred Shares and upon exercise of the Series A Warrants and the Series B Warrants, in an amount
representing more than, when measured at any given point during the applicable Date of Determination, ___%1
of the cumulative trading volume of the Common Stock for such date (which cumulative trading volume shall include pre-market,
market and post-market trading volume for such date) as reported by Bloomberg, LP (“Leak-Out Percentage”), provided
that, for purposes of clarity, the Leak-Out Percentage of the cumulative trading volume of the Common Stock on the applicable Date of
Determination applies at each moment during such Date of Determination.


 





 








1
Pro rata portion of ___% among investors executing Leak-Out Agreements, based on the aggregate
amount to be paid by each such investor for the Class A Units and/or Class B Units


 






     


     


    

 


Notwithstanding
anything herein to the contrary, during the Restricted Period, the Holder may, directly or indirectly, sell or transfer all, or any part,
of any “restricted securities” (as defined in Rule 144) to any Person (an “Assignee”) in a transaction
which does not need to be reported on the consolidated tape on the Company’s principal Trading Market, without complying with (or
otherwise limited by) the restrictions set forth in this Leak-Out Agreement; provided, that as a condition to any such sale or transfer
an authorized signatory of the Company and such Assignee duly execute and deliver a leak-out agreement in the form of this Leak-Out Agreement
(an “Assignee Agreement”, and each such transfer a “Permitted Transfer”) and, subsequent to a Permitted
Transfer, sales of the Holder and the Holder’s Trading Affiliates and all Assignees (other than any such sales that constitute
Permitted Transfers) shall be aggregated for all purposes of this Leak-Out Agreement and Assignee Agreements.


 


Any
notices, consents, waivers or other communications required or permitted to be given under the terms of this Leak-Out Agreement must
be in writing and shall be given in accordance with the terms of the Underwriting Agreement, provided that, with respect to any notices,
consents, waivers or other communications to be made by the Company to the Holder, such notice, consent, waiver or other communication
shall be delivered to the Holder at the e-mail address on the signature page hereto.


 


This
Leak-Out Agreement constitutes the entire agreement among the parties hereto with respect to the subject matter hereof and supersedes
all prior negotiations, letters and understandings relating to the subject matter hereof and are fully binding on the parties hereto.


 


This
Leak-Out Agreement may be executed simultaneously in any number of counterparts. Each counterpart shall be deemed to be an original,
and all such counterparts shall constitute one and the same instrument. This Leak-Out Agreement may be executed and accepted by facsimile
or PDF signature and any such signature shall be of the same force and effect as an original signature.


 


The
terms of this Leak-Out Agreement shall be binding upon and shall inure to the benefit of each of the parties hereto and their respective
successors and assigns.


 


This
Leak-Out Agreement may not be amended or modified except in writing signed by each of the parties hereto.


 


All
questions concerning the construction, validity, enforcement and interpretation of this Leak-Out Agreement shall be governed by Sections
7.7 and Section 7.13 of the Underwriting Agreement.


 


Each
party hereto acknowledges that, in view of the uniqueness of the transactions contemplated by this Leak-Out Agreement, the other party
or parties hereto may not have an adequate remedy at law for money damages in the event that this Leak-Out Agreement has not been performed
in accordance with its terms, and therefore agrees that such other party or parties shall be entitled to seek specific enforcement of
the terms hereof in addition to any other remedy it may seek, at law or in equity.


 


The
obligations of the Holder under this Leak-Out Agreement are several and not joint with the obligations of any other holder of any of
the Securities issued under the Underwriting


 






     


     


    

 


Agreement (each,
an “Other Holder”) or any other holder of any of the Securities issued under the Registration Statement (each, a “Prospectus
Purchaser Other Holder”) pursuant to any other agreement, and the Holder shall not be responsible in any way for the performance
of the obligations of any Other Holder or any Prospectus Purchaser Other Holder under any such other agreement. Nothing contained herein
or in this Leak-Out Agreement, and no action taken by the Holder pursuant hereto, shall be deemed to constitute the Holder and Other
Holders or any Prospectus Purchaser Other Holder as a partnership, an association, a joint venture or any other kind of entity, or create
a presumption that the Holder and the Other Holders or any Prospectus Purchaser Other Holder are in any way acting in concert or as a
group with respect to such obligations or the transactions contemplated by this Leak-Out Agreement and the Company acknowledges that
the Holder and the Other Holders or any Prospectus Purchaser Other Holder are not acting in concert or as a group with respect to such
obligations or the transactions contemplated by this Leak-Out Agreement or any other agreement. The Company and the Holder confirm that
the Holder has independently participated in the negotiation of the transactions contemplated hereby with the advice of its own counsel
and advisors. The Holder shall be entitled to independently protect and enforce its rights, including, without limitation, the rights
arising out of this Leak-Out Agreement, and it shall not be necessary for any Other Holder or any Prospectus Purchaser Other Holder to
be joined as an additional party in any proceeding for such purpose.


 


The
Company hereby represents and warrants as of the date hereof and covenants and agrees from and after the date hereof that none of the
terms offered to any Other Holder or any Prospectus Purchaser Other Holder with respect to any restrictions on the sale of Securities
substantially in the form of this Leak-Out Agreement (or any amendment, modification, waiver or release thereof) (each a “Settlement
Document”), is or will be more favorable to such Other Holder than those of the Holder and this Leak-Out Agreement, and the
Company agrees to use reasonable best efforts to enforce the terms of any Settlement Document. If, and whenever on or after the date
hereof, the Company enters into a Settlement Document with terms that are materially different from this Leak-Out Agreement, then (i) the
Company shall provide notice thereof to the Holder promptly following the occurrence thereof and (ii) the terms and conditions of
this Leak-Out Agreement shall be, without any further action by the Holder or the Company, automatically amended and modified in an economically
and legally equivalent manner such that the Holder shall receive the benefit of the more favorable terms and/or conditions (as the case
may be) set forth in such Settlement Document, provided that upon written notice to the Company at any time the Holder may elect not
to accept the benefit of any such amended or modified term or condition, in which event the term or condition contained in this Leak-Out
Agreement shall apply to the Holder as it was in effect immediately prior to such amendment or modification as if such amendment or modification
never occurred with respect to the Holder. The provisions of this paragraph shall apply similarly and equally to each Settlement Document.


 


This
Leak-Out Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not
for the benefit of, nor may any provision hereof be enforced by, any other Person.


 


 


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remainder of the page is intentionally left blank]


 






     


     


    

 


The parties hereto have executed this
Leak-Out Agreement as of the date first set forth above.


 


	 	Sincerely,
	 	 
	 	NEUROBO PHARMACEUTICALS, INC.
	 	 
	 	 
	 	 
	 	By:	          
	 	 	Name:
	 	 	Title:




 


 


 


Agreed to
and Accepted:


 


“HOLDER”


 


__________________


 


 


	By:	 	 
	 	Name:	 
	 	Title:	 
	 	E-mail: