Exhibit
99.1


 


EXCHANGE
AGREEMENT


 


Jeff
Eliot Margolis (the “Employee”) enters into this Agreement (this “Agreement”) with
RespireRx Pharmaceuticals Inc., a Delaware corporation (the “Company”) on July 13, 2020, whereby Employee
will exchange certain accrued compensation owed to the Employee by the Company for shares of Series H 2% Voting, Non-Participating,
Convertible Preferred Stock, par value $0.001 (the “Preferred Stock”), of the Company (the “Exchange”).


 


RECITALS


 


WHEREAS,
as of June 30, 2020, the Employee is entitled to approximately $731,400.00 in accrued compensation owing from the Company (the
“Accrued Compensation”);


 


WHEREAS,
the Employee wishes to exchange his right to receive $500,000.00 of the Accrued Compensation (the “Compensation”)
for 500 shares of the Preferred Stock (the “Shares”), with a stated value of $1,000.00 per share, convertible
into shares of common stock of the Company, par value $0.001 per share, and the Company wishes to issue the Shares to the Employee
in exchange for the Employee’s relinquishment of his right to receive the Compensation;


 


NOW,
THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, and on and subject to the terms and conditions set forth in this
Agreement, the parties hereto agree as follows:


 


1. The
Exchange.


 


(a) Exchange
of the Compensation. At the Closing (as defined herein), the Employee hereby agrees to relinquish his right to receive
the Compensation in cash and in exchange therefor, the Company hereby agrees to issue to the Employee the Shares registered
in the Employee’s name. No compensation accrued after June 30, 2020 or any compensation accrued up to or on June 30,
2020 in excess of the Compensation amount shall be considered to be part of the right to Compensation exchanged hereunder.
The Employee acknowledges that upon the occurrence of the Exchange and as of the Closing (as defined herein), the obligation
of the Company to pay the relinquished Compensation is extinguished. References to a “Section” or
“Schedule” are references to a Section of, or Schedule attached to, this Agreement unless otherwise
specified.


 


(b) Closing
and Delivery. The closing of the Exchange (the “Closing”) shall occur simultaneously with the
execution and entry into this Agreement and may take place by conference call and electronic transfer of signature pages and
deliverables, in each case as and to the extent required by this Agreement. For all purposes of this Agreement, the Closing
shall be deemed to be effective as of 3:59 p.m. ET on the date hereof.


 


(c) Acceptance
by the Company. This Agreement shall be deemed to be accepted by the Company only when it is signed by a duly authorized
officer of the Company and delivered to the Employee at the Closing.


 


2. Covenants,
Representations and Warranties of the Company. The Company hereby covenants as follows and, except as otherwise
stated herein, makes the following representations and warranties, each of which is true and correct at the Closing on the
date hereof, to the Employee, and all such covenants, representations and warranties shall survive the Closing.


 




    	 



    	 



    

 


(a) Due
Incorporation; Qualification. The Company (i) is a corporation duly organized, validly existing and in good standing
under the laws of its jurisdiction of organization; (ii) has the power and authority to own, lease and operate its properties
and carry on its business as now conducted; and (iii) is duly qualified, licensed to do business and in good standing as a
foreign corporation in each jurisdiction where such qualification or license is required by law, other than those
jurisdictions as to which the failure to be so qualified or in good standing could not reasonably be expected to have a
material adverse effect on the Company and its subsidiaries taken as a whole.


 


(b) Authority;
Enforceability. The execution, delivery and performance by the Company of this Agreement and the consummation of the
Exchange (i) are within the corporate power of the Company and (ii) have been duly authorized by all necessary corporate
action on the part of the Company. This Agreement has been duly executed and delivered by the Company and constitutes a
legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as
limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting the enforcement
of creditors’ rights generally and general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law).


 


(c) Non-Contravention.
The execution and delivery by the Company of this Agreement and the performance and consummation of the transactions
contemplated hereby do not (i) violate the Company’s Certificate of Incorporation, Bylaws or other formation or charter
documents, as applicable (as amended, the “Charter Documents”); (ii) violate any material judgment, order,
writ, decree, statute, rule or regulation applicable to the Company; or (iii) result in the creation or imposition of any
lien or encumbrance upon any property, asset or revenue of the Company under any material agreement or instrument to which
the Company is bound.


 


(d) Litigation.
Other than as disclosed in the Public Filings (as defined below), no actions (including, without limitation, derivative
actions), suits, proceedings or investigations are pending or, to the knowledge of the Company, threatened in writing against
the Company or the Company’s subsidiaries, if any, at law or in equity in any court or before any other governmental
authority.


 


(e) Title.
The Company and the Company’s subsidiaries own and have good and marketable title in fee simple absolute to, or a valid
leasehold in, all their respective real properties, if any, and good title to their other respective assets and properties.
Such assets and properties are subject to no liens or encumbrances.


 


(f) Confidentiality.
Since March 22, 2013, each employee of the Company has executed, or will execute, a confidential information and invention
assignment agreement in favor of the Company. Since March 22, 2013, the Company has entered into, or intends to enter into,
an agreement containing appropriate confidentiality and invention assignment provisions in favor of the Company with each
consultant to the Company that has or will have access to the Company’s intellectual property.


 


(g) Debt
for Borrowed Money. As of the date of this Agreement, the Company does not have any outstanding debt for borrowed money,
other than as disclosed in the Public Filings (as defined below).


 


(h) Exchange.
The terms of the Exchange are the result of negotiations between the Employee and the Company.


 




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3. Covenants,
Representations and Warranties of the Employee. The Employee hereby covenants as follows and makes the following
representations and warranties, each of which is true and correct at the Closing on the date hereof, to the Company, and all
such covenants, representations and warranties shall survive the Closing.


 


(a) Binding
Obligation. Employee has full legal capacity, power and authority to execute and deliver this Agreement and to perform
its obligations hereunder. This Agreement has been duly executed and delivered by the Employee and constitutes a legal, valid
and binding obligation of the Employee, enforceable in accordance with its terms, except as limited by bankruptcy,
insolvency, reorganization, moratorium or other similar laws relating to or affecting the enforcement of creditors’
rights generally and general principles of equity (regardless of whether such enforceability is considered in a proceeding in
equity or at law).


 


(b) Securities
Law Compliance. The Employee has been advised that the Shares have not been registered under the Securities Act of 1933,
as amended (the “Securities Act”), or any state securities laws, and therefore, cannot be resold unless
they are registered under the Securities Act and applicable state securities laws unless an applicable exemption from such
registration requirements is available. The Employee acknowledges that the Shares may not be freely transferable upon
receipt. The Employee has such knowledge and experience in financial and business matters that the Employee is capable of
evaluating the merits and risks of such investment, is able to incur a complete loss of such investment without impairing the
Employee’s financial condition and is able to bear the economic risk of such investment for an indefinite period of
time. The Employee is an accredited investor as such term is defined in Rule 501 of Regulation D under the Securities
Act.


 


(c) Adequate
Information; No Reliance. The Employee acknowledges and agrees that (a) the Employee has been furnished with all
materials the Employee considers relevant to making this exchange decision and to enter into this Agreement and effectuate
the Exchange and has had the opportunity to review (and has carefully reviewed) (i) the Company’s filings and
submissions with the Securities and Exchange Commission (the “SEC”), including, without limitation, all
information filed or furnished pursuant to the United States Securities and Exchange Act of 1934, as amended (collectively,
the “Public Filings”), and (ii) this Agreement, (b) the Employee has had an opportunity to submit
questions to the Company concerning the Company, its business, operations, financial performance, financial condition and
prospects, and the terms and conditions of the Exchange, and has all information that it considers necessary in making an
informed investment decision and to verify the accuracy of the information set forth in the Public Filings and this
Agreement, (c) the Employee has had the opportunity to consult with accounting, tax, financial and legal advisors of its
choosing to be able to evaluate the risks involved in the Exchange and to make an informed investment decision with respect
to such Exchange, (d) the Employee is not relying, and has not relied, upon any statement, advice (whether accounting, tax,
financial, legal or other), representation or warranty made by the Company or any of its affiliates or representatives or any
other entity or person, except for (A) the Public Filings, (B) this Agreement and (C) the representations and warranties made
by the Company in this Agreement, and (e) no statement or written material contrary to the Public Filings or this Agreement
has been made or given to the Employee by or on behalf of the Company.


 


(d) No
Publicity. The Employee acknowledges that it has a pre-existing relationship with the Company as an employee and that it
has not approached the Company about this Exchange as the result of any public offering. Neither the Company nor any other
person has approached the Employee about this Exchange by means of any form of general solicitation or
advertising.


 




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(e) Further
Action. The Employee agrees that it will, upon request, execute and deliver any additional documents deemed by the
Company to be necessary or desirable to complete the Exchange.


 


(f) Exchange.
The terms of the Exchange are the result of negotiations among the parties and their agents.


 


4. Closing
Deliveries of the Company. At the Closing, the Company shall deliver, or cause to be delivered, the
Shares.


 


5. Miscellaneous.


 


(a) Waivers;
Amendments. Any provision of this Agreement may be amended, waived or modified only upon the written consent of the
Company and the Employee.


 


(b) Governing
Law. This Agreement and all actions arising out of or in connection with this Agreement shall be governed by and
construed in accordance with the laws of the State of New York, without regard to the conflicts of law provisions of the
State of New York or of any other state.


 


(c) Survival. The
representations, warranties, covenants and agreements made herein shall survive the execution and delivery of this
Agreement.


 


(d) Successors
and Assigns. Subject to the restrictions on transfer described in Section 6(e) below, the rights and obligations
of the Company and the Employee shall be binding upon and benefit the successors, assigns, heirs, administrators and
transferees of the parties.


 


(e) Assignment.
The rights, interests or obligations hereunder may not be assigned, by operation of law or otherwise, in whole or in part, by
the Company without the prior written consent of the Employee. The rights, interests or obligations hereunder may not be
assigned by the Employee without the prior written consent of the Company.


 


(f) Entire
Agreement. This Agreement constitutes and contains the entire agreement and understanding between the Company and the
Employee with respect to the subject matter hereof and supersede any and all prior and contemporaneous agreements,
negotiations, correspondence, understandings and communications between or among the parties or any of their agents,
representatives or affiliates, whether written or oral, respecting the subject matter hereof.


 


(g) Notices.
All notices, demands, consents, or other communications hereunder shall be in writing and faxed, mailed or delivered to each
party as follows: (i) if to the Employee, at the Employee’s address or facsimile number set forth on the signature page
hereto, or at such other address as the Employee shall have furnished the Company in writing in accordance with this
paragraph, or (ii) if to the Company, at such address or fax number set forth on the signature page hereto, or at such other
address or facsimile number as the Company shall have furnished to the Employee in writing in accordance with this paragraph.
All such communications will be deemed effectively given the earlier of (i) when received, (ii) when delivered personally,
(iii) one business day after being delivered by facsimile (with receipt of appropriate confirmation), (iv) one business day
after being deposited with an overnight courier service of recognized standing, or (v) four days after being deposited in the
U.S. mail, first class with postage prepaid.


 




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(h) Expenses.
Each of the Company and the Employee will bear their own respective expenses associated with the negotiation, execution and
delivery of this Agreement and the consummation of the Exchange.


 


(i) Only
Company Liable. In no event shall any stockholder, officer, director or employee of the Company be liable for any amounts
due or payable pursuant to this Agreement.


 


(j) Severability.
If any provision of this Agreement shall be judicially determined to be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.


 


(k) Headings.
Headings used in this Agreement have been included for convenience and ease of reference only and will not in any manner
influence the construction or interpretation of any provision of this Agreement. Neither party, nor its respective counsel,
shall be deemed the drafter of this Agreement for purposes of construing the provisions of this Agreement, and all language
in all parts of this Agreement shall be construed in accordance with its fair meaning, and not strictly for or against either
party.


 


(l) Counterparts.
This Agreement may be executed in one or more counterparts, each of which will be deemed an original, but all of which
together will constitute one and the same agreement. Facsimile copies of signed signature pages will be deemed binding
originals.


 


(m) Termination.
The Company may terminate this Agreement if there has occurred any breach or withdrawal by the Employee of any covenant,
representation or warranty set forth in Section 3. The Employee may terminate this Agreement if there has occurred any
breach or withdrawal by the Company of any covenant, representation or warranty set forth in Section 2.


 


(Signature
Page Follows)


 




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The
parties have caused this Agreement to be duly executed and delivered by their proper and duly authorized officers as of the date
and year first written above.


 


	COMPANY:	 
	 	 
	RESPIRERX PHARMACEUTICALS INC.	 
	a Delaware corporation	 
	 	                             	 
	By:	/s/ Timothy Jones	 
	Name:	Timothy Jones	 
	Title:	President and Chief Executive Officer	 


 


Address
for notices:


 


RespireRx
Pharmaceuticals Inc.


Attention:
Timothy Jones


126
Valley Road, Suite C


Glen
Rock, NJ 07452


(phone):
856-278-8199


(email): tjones@respirerx.com


 




    	 



    	 



    

 


	EMPLOYEE:	 
	 	 
	 	/s/
    Jeff Eliot Margolis	 
	Name:	Jeff
    Eliot Margolis	 
	Title:	Senior
Vice President, Chief Financial Officer, Treasurer, Secretary of RespireRx Pharmaceuticals Inc.
	 


 


Address
for notices:


 


PO
Box 1167, 354 Widow Gavits Road


 


Bridgehampton,
NY 11932-1167


 


(phone):
917-834-7296


 


(email): jmargolis@respirerx.com