Exhibit 10.5


 


AMENDED AND RESTATED EMPLOYMENT AGREEMENT


 


This AMENDED AND RESTATED EMPLOYMENT AGREEMENT
(the “Agreement”) is entered into on July 1, 2021 (the “Effective Date”), between Sarah Cavanaugh (the
 “Executive”) and CELLDEX THERAPEUTICS, INC., a Delaware corporation (the “Company”) (collectively, the Executive
and the Company shall be referred to as the “Parties”).


 


W I T N E S S E T H:


 


WHEREAS,
the Executive has been employed by the Company as its Senior Vice President of Corporate Affairs and Administration pursuant to the terms
of an employment agreement dated June 15, 2017 (the “Prior Employment Agreement”);


 


WHEREAS,
as of the Effective Date the Company desires to employ the Executive as its Senior Vice President of Corporate Affairs and Administration,
and the Executive desires to accept such employment, on the terms and conditions set forth in this Agreement; and


 


WHEREAS,
the Company and the Executive have mutually agreed that, as of the Effective Date, this Agreement shall amend, restate and replace the
Prior Employment Agreement.


 


NOW,
THEREFORE, in consideration of the mutual promises and agreements contained herein, the Parties agree as follows:


 


1.       PURPOSE. 
The Company desires to avail itself of the services of the Executive as Senior Vice President of Corporate Affairs and Administration,
and the Executive desires to provide such services in accordance with the terms of this Agreement.  The Parties agree that the duties
and obligations expected of the Executive and of the Company are as set forth in this Agreement.


 


2.       EFFECTIVE
DATE AND TERM.  This Agreement shall be effective, and its term (the “Term”) shall commence as of the Effective Date. 
The Term shall continue through and until December 31, 2021 (the “Initial Term”), unless terminated sooner as provided
by this Agreement or extended by the Parties.  The Term shall be automatically renewed for successive periods of one year each (each,
a “Renewal Term”), unless either Party gives to the other written notice of intent not to renew at least ninety (90) days
prior to the expiration of the Initial Term or any Renewal Term (a “Notice of Non-Renewal”).


 


3.       COMPENSATION.


 


A.       Salary. 
During the Term, the Company shall pay or cause to be paid to the Executive, in installments pursuant to the Company’s payroll practices
as in effect from time to time, a base salary at a rate of $350,000 per annum or such greater amount as may from time to time be determined
by the Company (the “Base Salary”).  The Base Salary shall be reviewed annually in accordance with the Company’s
compensation and review policies and, in the sole discretion of the Company, may be increased.


 


B.       Annual
Bonus.  With respect to each fiscal year of the Company that ends during the Term, the Executive shall be eligible to receive
an annual bonus having a target of 40% of the Executive’s then Base Salary (the “Annual Bonus”) based upon the Executive’s
overall performance of the Services on behalf of the Company during such fiscal year.  The attainment of any applicable performance
goals and the amount to be paid in respect of the Annual Bonus shall be determined by the Chief Executive Officer (“CEO”)
in good faith and in accordance with such written goals and policies as may be established from time to time by the Company.  The
Annual Bonus shall be deemed to have been earned and accrued only upon the formal approval of the CEO of the amount of the Annual Bonus
following such determination.  The Annual Bonus, if any, shall be payable as a lump-sum payment within sixty (60) days immediately
following the last day of the applicable fiscal year.  The Board may delegate all or any of its obligations under this Agreement
to the Compensation Committee of the Board.


 


C.       Expenses. 
The Company shall reimburse the Executive for any travel, hotel, entertainment and other expenses reasonably incurred by the
Executive in furtherance of the Executive’s duties under this Agreement subject to and in accordance with the Company’s
applicable travel and expense reimbursement policies.


 






    


     


    

 


D.       Employee
Benefits.  The Executive shall be entitled to participate in any and all employee benefit plans in effect from time to time that
are provided generally to employees of the Company (excluding severance plans, if any), and in any executive perquisite programs in effect
from time to time that provide benefits to other executives of the Company of comparable stature and with comparable duties and responsibilities,
in each case to the extent permissible under the general terms and provisions of such plans or programs and in accordance with the provisions
thereof.  The Company may amend, modify or rescind any employee benefit plan or program and/or change employee contribution amounts
to benefit costs without notice in its discretion.  The Executive shall, during the Term, be entitled to paid time off in accordance
with applicable Company policies in effect from time to time, in addition to public holidays observed by the Company.  The Executive
shall be entitled to twenty (20) business days of vacation each year (increasing to twenty five (25) business days after ten (10) years
of service as an employee of the Company (including employment with any subsidiary of the Company)).  The Executive shall be entitled
to carry any unused vacation days over to the next calendar year.  However, in no event will Executive’s accrued but unused
vacation exceed 40 days.


 


E.       Directors’
and Officers’ Liability Insurance.  The Company shall indemnify the Executive to the fullest extent permitted under its
by-laws.  During the Term, the Company shall acquire and pay for directors’ and officers’ liability insurance coverage
for its senior executive officers, and the Executive shall be named as a covered officer under such policy during the Term.


 


4.       DUTIES
OF THE EXECUTIVE.


 


A.       Duties. 
During the Term, the Executive shall hold the title of Senior Vice President of Corporate Affairs and Administration and shall perform
such duties as the Company may reasonably require and shall use her best efforts to carry into effect the directions of Company senior
management.  The Executive shall report to the CEO or any other officer of the Company that the CEO or the Board of Directors (the
 “Board”) shall designate from time to time.  During the Term, the Executive shall be bound by, and comply fully with,
all of the Company’s policies and procedures in place from time to time for employees and, to the extent applicable, officers.


 


B.       Representation. 
During the Term, the Executive shall well and faithfully serve the Company and use the Executive’s best efforts to promote the interests
of the Company.  The Executive shall at all times give the Company the full benefit of her knowledge, expertise, technical skill
and ingenuity in the performance of her duties and exercise of her powers and authority in the capacity or capacities described in Section 4(A) hereof,
as the case may be.


 


C.       Time
Devoted by Executive.  The Executive agrees to devote substantially all of the Executive’s time and attention during business
hours and such additional time and attention as may reasonably be required to perform her duties hereunder.


 


5.       RESTRICTIONS
ON THE EXECUTIVE.


 


A.       Non-Disclosure
of Confidential Information.  All information learned or developed by the Executive during the course of the
Executive’s employment by the Company or any subsidiary thereof will be deemed “Confidential Information” under
the terms of this Agreement.  Examples of Confidential Information include, but are not limited to, business, scientific and
technical information owned or controlled by the Company, including the Company’s business plans and strategies; business
operations and systems; information concerning employees, customers, partners and/or licensees; patent applications; trade secrets;
inventions; ideas; procedures; formulations; processes; formulae; data and all other information of any nature whatsoever which
relate to the Company’s business, science, technology and/or products.  In addition, Confidential Information shall
include, but not be limited to, all information which the Company may receive from third parties.  The Executive will not
disclose to any person at any time or use in any way, except as directed by the Company, either during or after the employment of
the Executive by the Company, any Confidential Information.  The foregoing restrictions shall not apply to information which is
or becomes part of the public domain though no act or failure to act by the Executive.  In addition to the foregoing, in the
process of the Executive’s employment with the Company, or thereafter, under no condition is the Executive to use or disclose
to the Company, or incorporate or use in any of her work for the Company, any confidential information imparted to the Executive or
with which she may have come into contact while in the employ of her former employer(s).


 






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Executive acknowledges receipt of the following
notice under the Defend Trade Secrets Act:  An individual will not be held criminally or civilly liable under any federal or state
trade secret law for the disclosure of a trade secret if he/she (i) makes such disclosure in confidence to a Federal, State, or local
government official, either directly or indirectly, or to an attorney and such disclosure is made solely for the purpose of reporting
or investigating a suspected violation of law; or (ii) such disclosure was made in a complaint or other document filed in a lawsuit
or other proceeding if such filing is made under seal.


 


B.       Inventions. 
The term “Invention” means any invention, discovery, improvement, apparatus, implement, process, compound, composition or
formula, whether or not patentable, conceived or reduced to practice, in whole or in part, by the Executive (alone, or jointly with others)
during any term of her employment by the Company and twelve (12) months thereafter which directly or indirectly relates to the business,
science, technology or products of the Company and/or any Confidential Information.  The Executive will keep, on behalf of the Company,
complete, accurate, and authentic accounts, notes, data, and records (“Records”) of each and every Invention, which Records
will, at all times, be the property of the Company.  The Executive will comply with the directions of the Company with respect to
the manner and form of keeping or surrendering Records and will surrender to the Company all Records at the end of the Executive’s
term of employment by the Company.


 


Each Invention will be the sole and exclusive property
of the Company. The Executive will, at the request of the Company, make application in due form for United States letters patent and foreign
letters patent (each, a “Patent”) on any Invention and execute any necessary documents in connection with the Patents. 
The Executive will assign and transfer to the Company all right, title, and interest of the Executive in any Patents or Patent applications. 
The Executive agrees to cooperate with any actions necessary to continue, renew or retain the Patents.  The Company will bear the
entire expense of applying for and obtaining the Patents.


 


For
one year after the termination of the term of the Executive’s employment by the Company, the Executive will not file any applications
for Patents on any Invention other than those filed at the request of and on behalf of the Company. The Executive, as a condition
of her employment, hereby represents that, to the best of her knowledge, there is not as of the date of this Agreement any agreement or
obligation outstanding with or to any of her former employers or other party, which would restrict, limit or in any way prohibit all or
any portion of her work or employment, nor is there in her possession any confidential information used by any of her former employers
or any other party (except as may have been revealed in generally available publications or otherwise made publicly available).


 


C.       Non-Competition;
Non-Solicitation.


 


(1) 
Non-Competition.  During the Term, without the consent of the Board, and thereafter as specifically provided in Subsection
6.A.(2), 6.B.(4) or 6.C.(2), the Executive may not directly or indirectly engage in, or have any interest in, any business (whether
as employee, officer, director, agent, security holder, creditor, consultant, or otherwise) that competes with the vaccine and/or antibody
business of the Company or any subsidiary thereof (as such business may exist during the Term).


 


(2) 
Non-Solicitation of Employees.  During the Term, and thereafter as specifically provided in Subsection 6.A.(2), 6.B.(4) or
6.C.(2), the Executive shall not, directly or indirectly induce or solicit any employee or independent contractor of the Company or any
subsidiary thereof to terminate her or her employment with the Company for the purpose of  joining another company in which the Executive
has an interest (whether as an employee, officer, director, agent, security holder, creditor, consultant, or otherwise).


 


D.       Breach. 
The Executive acknowledges that there may be circumstances in which her breach of any covenant set forth in this Section 5
could cause substantial harm to the Company which may not be compensable by monetary damages alone, and which could potentially
entitle the Company to injunctive relief.  However, by acknowledging this possibility, the Executive is not agreeing to waive
her right to require the Company to meet its evidentiary burdens as required by law in any cause of action brought by the Company
seeking such injunctive relief.  The restrictions contained in Subsection 5.C. above shall not prohibit Executive from owning
(beneficially or of record) less than 5% of any class of equity or debt security issued by a publicly-held company, regardless of
whether that publicly-held company is otherwise a competitor of the Company.


 






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6.       TERMINATION.


 


A.       Termination
for Cause by the Company.


 


(1) 
This Agreement and the Term may be terminated “for cause” by the Company pursuant to the provisions of this Subsection 6.A. 
If the Company determines that “cause” exists for termination of the Executive’s employment, written notice thereof
must be given to the Executive describing the state of affairs or facts deemed by the Company to constitute such cause.  Unless the
Company determines that the conduct constituting cause is not curable, the Executive shall have thirty (30) days after receipt of such
notice to cure the reason constituting cause and if the Executive does so to the reasonable satisfaction of the Company, the Term shall
not be terminated for the cause specified in the notice.  During such thirty (30) day period, the Term shall continue and the Executive
shall continue to receive her full Base Salary, expenses and benefits pursuant to this Agreement.  If such cause is not cured to
the Company’s reasonable satisfaction within such thirty (30) day period, the Executive may then be immediately terminated by the
Company.  For purposes of this Agreement, the words “for cause” or “cause” means (i) dishonest statements
or acts of the Executive with respect to the Company or any subsidiary or other affiliate of the Company; (ii) the commission by
or indictment of the Executive for (A) a felony or (B) any misdemeanor involving moral turpitude, deceit, dishonesty or fraud
(indictment, for these purposes, meaning an indictment, probable cause hearing or any other procedure pursuant to which an initial determination
of probable or reasonable cause with respect to such offense is made); or (iii) gross negligence, willful misconduct or insubordination
of the Executive with respect to the Company or any subsidiary or other affiliate of the Company.


 


(2) 
In the event the Term is terminated by the Company for cause, the provisions of Subsections 5.C.(1) and 5.C.(2) shall continue
to apply for one year after the conclusion of the Term.


 


(3) 
In the event the Term is terminated by the Company for cause, the Executive’s entire right to salary and benefits hereunder (with
the exception of Base Salary and Annual Bonus (if any) earned and accrued prior to termination) shall cease upon such termination.


 


B.       Termination
Without Cause by the Company or for Good Reason by the Executive.


 


(1) 
The Company shall have the right to terminate the Term, at any time, without cause upon ninety (90) days’ written notice to the
Executive.


 


(2) 
The Executive shall have the right to terminate the Term for good reason on thirty (30) days written notice to the Company.  For
purposes of this Agreement, the words “for good reason” or “good reason” shall be limited to the following actions
by the Company without the Executive’s consent:  (a) the assignment to the Executive of any duties or responsibilities
that results in a material diminution in the Executive’s position or function; provided, however, that a change in the Executive’s
title or reporting relationships shall not provide the basis for a termination with good reason; (b) a relocation of the Executive’s
business office to a location more than fifty (50) miles from the location in Needham, Massachusetts at which the Executive is working
as of the Effective Date, except for required travel by the Executive on the Company’s business to an extent substantially consistent
with the Executive’s business travel obligations as of the Effective Date; or (c) a material breach by the Company of any provision
of this Agreement or any other material agreement between the Executive and the Company concerning the terms and conditions of the Executive’s
employment.  Such a termination by the Executive for good reason shall not be considered a resignation pursuant to Subsection 6.C.(1).


 


(3) 
In the event the Term is terminated pursuant to Subsection 6.B.(1) or 6.B.(2), or in the event that the Term is terminated at
the end of the Initial Term or a Renewal Term in connection with the Company providing the Executive with a Notice of Non-Renewal
effective in connection with the expiration of the Initial Term or a Renewal Term, the Company shall pay the Executive as a
severance benefit a lump sum cash severance payment in an amount equal to 100% of the Executive’s then existing annual Base
Salary (i.e., twelve (12) months of Base Salary) (the “Severance Payment”) plus Base Salary and Annual Bonus (if
any) earned and accrued prior to termination.  In addition, if and to the extent the Executive timely elects to continue her
health insurance employee benefits pursuant to COBRA, then the Company will pay the Executive for a period of 18 months, commencing
with the payroll date on or following the 63rd day after the last day of her employment with the Company, subject to the
effectiveness of the Release (as defined below) a monthly amount, payable in accordance with the Company’s regular payroll
practices, equal to the applicable COBRA costs, subject to applicable tax withholdings (the “Supplemental
Payments”).  The Severance Payment shall be paid within 10 days following the effectiveness of the Release (as defined
below); provided, however, that if necessary to comply with the restriction in Section 409A(a)(2)(B) of the
Internal Revenue Code of 1986, as amended (the “Code”) concerning payments to “specified employees,” to the
extent applicable, such payment shall be delayed until the first business day of the seventh month following the Executive’s
termination of employment and “separation from service” (within the meaning of Section 409A of the Code). 
Notwithstanding any provisions of the stock option plan or stock option agreement pursuant to which any stock options were granted
to the Executive, the Executive shall be entitled to exercise her vested equity awards until one year from the date of termination
of employment or the expiration of the stated period of the vested equity award, whichever period is the shorter.


 






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(4) 
In the event the Term is terminated or the Executive’s employment with the Company terminates in a manner described in this Section 6.B.,
the provisions of Subsections 5.C.(1) and 5.C.(2) shall continue to apply for one year after the conclusion of the Term.


 


(5) 
Notwithstanding any provision to the contrary contained herein, the Executive shall not be eligible or entitled to receive the Severance
Payment, Supplemental Payments or Change in Control Payment (as defined below), as applicable, unless she executes (and does not revoke
during any applicable revocation period) and delivers to the Company a separation agreement and release of claims, in such form prepared
in good faith by the Company and provided to the Executive to review no later than 10 days following the last day of her employment with
the Company, within 55 days following her last day of employment with the Company (the “Release”).  Notwithstanding anything
to the contrary contained herein, in the event such 55-day period covers more than one calendar year, the Severance Payment shall be paid
in the second calendar year (on the first regular pay date of such calendar year following the date that the Release becomes effective
and is no longer subject to revocation, unless a later date is required by Section 6.B.(3) above), regardless of whether the
Executive executes and delivers the Release in the first or the second calendar year encompassed in such 55-day period.


 


C.       Resignation
by the Executive.


 


(1) 
The Executive shall have the right to terminate the Term, by way of resignation, upon ninety (90) days’ written notice to the Company. 
A termination by the Executive for good reason pursuant to Subsection 6.B.(2) shall not be considered a resignation pursuant to this
Subsection 6.C.(1).


 


(2) 
In the event the Term is terminated pursuant to Subsection 6.C.(1), the provisions of Subsections 5.C.(1) and 5.C.(2) shall
continue to apply for one year after the conclusion of the Term.


 


(3) 
In the event the Term is terminated pursuant to Subsection 6.C.(1), the Executive’s entire right to salary and benefits hereunder
(with the exception of Base Salary and Annual Bonus earned and accrued prior to termination) shall cease upon such termination.


 


D.       Termination
Upon Change in Control.


 


(1) 
For the purposes of this Agreement, a “Change in Control” shall mean any of the following events that occurs following the
Effective Date:


 


(a)       An
acquisition (other than directly from the Company) of any voting securities of the Company (the “Voting Securities”)
other than in a “Non-Control Acquisition” (as defined below) by any “Person” (as the term
 “person” is used for purposes of Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as
amended, (the “1934 Act”)) which results in such Person first attaining “Beneficial Ownership” (within the
meaning of Rule 13d-3 promulgated under the 1934 Act) of fifty-one percent (51%) or more of the combined voting power of the
Company’s then outstanding Voting Securities.  For purposes of the foregoing, a “Non-Control Acquisition”
shall mean an acquisition by (i) an employee benefit plan (or a trust forming a part thereof) maintained by (x) the
Company or (y) any corporation or other Person of which a majority of its voting power or its equity securities or equity
interest is owned directly or indirectly by the Company (a “Subsidiary”), or (ii) the Company or any
Subsidiary.


 





(b)       The
individuals who, as of the date of this Agreement, were members of the Board (the “Incumbent Board”) cease for any reason
to constitute at least 66 2/3% of the Board; provided, however, that if the election, or a nomination for election by the Company’s
shareholders, of any new director was approved by a vote of at least 66 2/3% of the Incumbent Board, such new director shall be considered
as a member of the Incumbent Board; provided further, however, that no individual shall be considered a member of the Incumbent
Board if such individual initially assumed office as a result of either an actual or threatened “Election Contest” (as described
in Rule 14a-11 promulgated under the 1934 Act) or other actual or threatened solicitation of the proxies or consents by or on behalf
of a Person other than the Board (a “Proxy Contest”) including by reason of any agreement intended to avoid or settle any
Election Contest or Proxy Contest; or


 






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(c)       The
consummation of a transaction approved by the Company’s shareholders and involving:  (1) a merger, consolidation or reorganization
in which the Company is a constituent corporation, unless (i) the shareholders of the Company, immediately  before such merger,
consolidation or reorganization, own, directly or indirectly immediately following such merger, consolidation or reorganization, at least
a majority of the combined voting power of the outstanding voting securities of the corporation resulting from such merger, consolidation
or reorganization (the “Surviving Corporation”) in substantially  the same proportion as their ownership of the voting
securities immediately before such merger, consolidation or reorganization, (ii) the individuals who were members of the Incumbent
Board immediately prior to the execution of the agreement providing for such merger, consolidation or reorganization constitute at least
a majority of the members of the board of directors of the Surviving Corporation, and (iii) no Person other than (w) the Company,
(x) any Subsidiary, (y) any employee benefit plan (or any trust forming a part thereof) maintained by the Company, the Surviving
Corporation or any Subsidiary, or (z) any Person who, immediately prior to such merger, consolidation or reorganization had Beneficial
Ownership of fifty-one percent (51%) or more of the then outstanding Voting Securities, has Beneficial Ownership of fifty-one percent
(51%) or more of the combined voting power of the Surviving Corporation’s then outstanding voting securities (a transaction described
in clauses (i) and (ii) shall herein be referred to as a “Non-Control Transaction”); (2) a complete liquidation
or dissolution of the Company; or (3) an agreement for 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).


 


(d)       Notwithstanding
the foregoing, a Change in Control shall not be deemed to occur solely because the level of Beneficial Ownership held by any Person (the
 “Subject Person”) exceeds the designated percentage threshold of the outstanding Voting Securities as a result of a repurchase
or other acquisition of Voting Securities by the Company reducing the number of shares outstanding, provided that if a Change in Control
would occur (but for the operation of this sentence) as a result of the acquisition of Voting Securities by the Company, and after such
share acquisition, the Subject Person becomes the Beneficial Owner of any additional Voting Securities which, assuming the repurchase
or other acquisition had not occurred, increases the percentage of the then outstanding Voting Securities Beneficially Owned by the Subject
Person over the designated percentage threshold, then a Change in Control shall occur.


 


(2) 
In the event of a termination of the Term pursuant to an event described in Section 6.B. above, that occurs within a period of one
year immediately following a Change in Control, then this Section 6.D. shall apply instead of Section 6.B., and the Company
shall provide the Executive the following benefits:


 


(a)       Amount: 
In addition to all compensation for services rendered by Executive to the Company up to the date of termination, the Company shall
pay to Executive a single lump-sum payment in an amount equal to (i) twenty-four (24) times Executive’s highest monthly
base compensation paid hereunder during the preceding twenty-four month period, plus (ii) 150% of the highest one-year Annual
Bonus actually received by the Executive during the preceding two full fiscal years prior to the date of termination (such aggregate
amount the “Change in Control Payment”).  The Change in Control Payment shall be paid within 10 days following the
effectiveness of the Release; provided, however, that if necessary to comply with the restriction in
Section 409A(a)(2)(B) of the Code concerning payments to “specified employees,” to the extent applicable, such
payment shall be delayed until the first business day of the seventh month following the Executive’s termination of employment
and “separation from service” (within the meaning of Section 409A of the Code).


 


(b)       Benefits: 
In addition to the payment described above, the Company shall provide the Executive with the Supplemental Payments.


 






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(c)       Acceleration
of Options:  One hundred (100%) percent of the Executive’s outstanding, unvested options, restricted stock and/or equity
awards (“Equity Awards”) shall, immediately prior to the consummation of the Change in Control, become fully and immediately
vested to the extent not already so provided under the terms of such Equity Awards; provided, however, that if the acquirer in a Change
in Control grants Equity Awards having (in the reasonable opinion of the Board) a value at least equal to the value of Executive’s
then-unvested Company Equity Awards, then 50% of the Executive’s outstanding, unvested Company Equity Awards shall become fully
and immediately vested immediately prior to the consummation of the Change in Control (and the remaining 50% shall terminate upon the
consummation of the Change in Control).  Notwithstanding any provisions of the stock option plan or stock option agreement pursuant
to which any stock options subject to the preceding sentence were granted, the Executive shall be entitled to exercise such Equity Awards
until three years from the date of termination of employment or the expiration of the stated period of the Equity Award, whichever period
is the shorter.


 


(d)       Golden
Parachute Payment Provisions:  If any payment or benefit the Executive would receive pursuant to a Change in Control from the
Company or otherwise (including, without limitation, the acceleration of any Company Equity Awards) (“Payment”) would (i) constitute
a “parachute payment” within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”),
and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”),
then such Payment shall be reduced to the Reduced Amount.  The “Reduced Amount” shall be either (x) the largest
portion of the Payment that would result in no portion of the Payment being subject to the Excise Tax or (y) the largest portion,
up to and including the total, of the Payment, whichever amount, after taking into account all applicable federal, state and local employment
taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in the Executive’s receipt,
on an after-tax basis, of the greater amount of the Payment notwithstanding that all or some portion of the Payment may be subject to
the Excise Tax. If a reduction in payments or benefits constituting “parachute payments” is necessary so that the Payment
equals the Reduced Amount, reduction shall occur in the following order: reduction of cash payments; cancellation of accelerated vesting
of stock options or equity awards; reduction of employee benefits.  In the event that acceleration of vesting of stock option or
equity award compensation is to be reduced, such acceleration of vesting shall be cancelled in the reverse order of the date of grant
of the Executive’s stock options or equity awards.


 


The accounting firm engaged by the Company for
general audit purposes as of the day prior to the effective date of the Change in Control shall perform the foregoing calculations and
shall make all determinations relating to the reduction of parachute payments described in the foregoing paragraph.  If the accounting
firm so engaged by the Company is also serving as accountant or auditor for the individual, entity or group effecting the Change in Control,
the Company shall appoint a nationally recognized accounting firm to make the determinations required hereunder.  The Company shall
bear all expenses with respect to the determinations by such accounting firm required to be made hereunder.


 


The accounting firm engaged to make the determinations
hereunder shall provide its calculations, together with detailed supporting documentation, to the Company and the Executive within fifteen
(15) calendar days after the date on which the Executive’s right to a Payment is triggered (if requested at that time by the Company
or the Executive) or such other time as requested by the Company or the Executive.  If the accounting firm determines that no Excise
Tax is payable with respect to a Payment, either before or after the application of the Reduced Amount, it shall furnish the Company and
the Executive with an opinion reasonably acceptable to the Executive that no Excise Tax will be imposed with respect to such Payment. 
Any good faith determinations of the accounting firm made hereunder shall be final, binding and conclusive upon the Company and the Executive.


 














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E.       Termination
for Disability.


 


(1) 
Should the Executive be absent from work as a result of personal injury, sickness or other disability for any continuous period of time
exceeding one hundred eighty (180) days, the Term may be terminated by the Company, upon written notice given to the Executive, because
of the Executive’s disability.


 


(2) 
In the event the Term is terminated pursuant to Subsection 6.E.(1), the Company shall have no further obligation to the Executive except
to pay to the Executive any Base Salary or Annual Bonus earned and accrued but remaining unpaid prior to termination of the Term (and
to provide the Executive with the benefits under any disability insurance or disability benefits plan then-maintained by the Company for
the Executive’s benefit, in accordance with the terms and conditions of such plan).  In addition, notwithstanding any provisions
of the stock option plan or stock option agreement pursuant to which any stock options were granted, the Executive shall be entitled to
exercise any of Executive’s stock options vested as of the final day of the Term until eighteen months from the final day of the
Term or the expiration of the stated period of the option, whichever period is the shorter.


 


F.       Termination
Upon Death.  The Term shall terminate upon the death of the Executive and the Company shall have no further obligation to the
Executive or her estate except to pay the Executive’s estate any Base Salary or Annual Bonus earned and accrued but remaining unpaid
prior to her death.  In addition, notwithstanding any provisions of the stock option plan or stock option agreement pursuant to which
any stock options were granted, the Executive’s estate shall be entitled to exercise any of Executive’s stock options vested
as of the final day of the Term until eighteen months from the final day of the Term or the expiration of the stated period of the option,
whichever period is the shorter.


 


7.       MISCELLANEOUS.


 


A.       Notice. 
Any notice to be given hereunder shall either be delivered personally, sent by nationally recognized overnight courier service (with next
business day delivery requested) and/or sent by first class certified mail and regular mail.  The address for service on the Company
shall be its registered office, and the address for service on the Executive shall be her last known place of residence.  A notice
shall be deemed to have been served as follows:


 


(1) 
if personally delivered, at the time of delivery;


 


(2) 
if sent by overnight courier service, at the end of the next business day; and/or


 


(3) 
if posted, at the expiration of 48 hours (10 days if international) after the envelope containing the same was delivered into the custody
of the postal authorities.


 


B.       Taxes.  Any
payments made pursuant to this Agreement shall be subject to any tax or similar withholding requirements under applicable federal,
state or local employment or income tax laws or similar statutes or other provisions of law then in effect.  This Agreement is
intended to comply with the requirements of Section 409A (“Section 409A”) of the Code and the regulations
thereunder (including, as applicable, the exemptions and exceptions set forth therein).  The payments provided for herein are
intended to be exempt from Section 409A and to not constitute “nonqualified deferred compensation” as defined in
Section 409A.  To the extent that any provision in this Agreement is ambiguous as to its compliance with
Section 409A, the provision shall be interpreted in a manner so that no payment due to the Executive shall be deemed subject to
an “additional tax” within the meaning of Section 409A(a)(1)(B) of the Code.  For purposes of
Section 409A, each payment made under this Agreement shall be treated as a separate payment. Notwithstanding anything contained
herein to the contrary, to the extent any payment under Section 6 hereof is determined to constitute “nonqualified
deferred compensation” as defined in Section 409A, the Executive shall not be considered to have terminated employment
with the Company for purposes of Section 6 hereof unless the Executive has incurred a “termination of employment”
from the Company within the meaning of Treasury Regulation §1.409A-1(h)(1)(ii) promulgated under Section 409A of the
Code. Notwithstanding the foregoing, if necessary to comply with the restriction in Section 409A(a)(2)(B) of the Code
concerning payments to “specified employees,” any payment made to the Executive pursuant to this Agreement on account of
the Executive’s separation from service that would otherwise be due hereunder within six months after such separation from
service shall nonetheless be delayed until the first business day of the seventh month following the Executive’s separation
from service.  In no event may the Executive, directly or indirectly, designate the calendar year of any payment.  All
reimbursements provided under this Agreement shall be made or provided in accordance with the requirements of Section 409A,
including, where applicable, the requirement that (i) any reimbursement is for expenses incurred during the Executive’s
lifetime (or during a shorter period of time specified in this Agreement), (ii) the amount of expenses eligible for
reimbursement during a calendar year may not affect the expenses eligible for reimbursement in any other calendar year,
(iii) the reimbursement of an eligible expense will be made on or before the last day of the calendar year following the year
in which the expense is incurred, and (iv) the right to reimbursement is not subject to liquidation or exchange for another
benefit.  The Executive further acknowledges that, while this Agreement is intended to comply with Section 409A, any tax
liability incurred by the Executive under Section 409A is solely the responsibility of the Executive.


 






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C.       Clawback. 
Any incentive-based or other compensation paid to the Executive under this Agreement or any other agreement or arrangement with the
Company which is subject to recovery under any law, government regulation or stock exchange listing requirement will be subject to such
deductions and/or clawback as may be required by such law, government regulation or stock exchange listing requirement.  In addition,
if the Executive is or becomes an executive officer subject to the incentive compensation repayment requirements of the Dodd-Frank Wall
Street Reform and Consumer Protection Acts (the “Dodd-Frank Act”), then if required by the Dodd-Frank Act or any of its regulations
she will enter into an amendment to this Agreement or a separate written agreement with the Company to comply with the Dodd-Frank Act
and any of its regulations.


 


D.       Binding
Effect.  This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective heirs, personal
representatives, successors and assigns, provided that neither Party shall assign any of its rights or privileges hereunder without the
prior written consent of the other Party except that the Company may assign its rights hereunder to a successor in ownership of all or
substantially all the assets of the Company.


 


E.       Severability. 
Should any part or provision of this Agreement be held unenforceable by a court of competent jurisdiction, the validity of the remaining
parts or provisions shall not be affected by such holding, unless such enforceability substantially impairs the benefit of the remaining
portions of the Agreement.


 


F.       Waiver. 
No failure or delay on the part of either Party in the exercise of any right or privilege hereunder shall operate as a waiver thereof,
nor shall any single or partial exercise of any such right or privilege preclude other or further exercise thereof or of any other right
of privilege.


 


G.       Captions. 
The captions used in this Agreement are for convenience only and are not to be used in interpreting the obligations of the Parties under
this Agreement.


 


H.       Choice
of Law; Jury Trial Waiver.  The validity, construction and performance of this Agreement and all matters directly or indirectly
arising hereunder shall be governed by the laws of the State of Delaware, without regard to choice of laws provisions, and the Company
and the Executive irrevocably consent to the exclusive jurisdiction and venue of the federal and state courts located within Delaware,
and courts with appellate jurisdiction therefrom, in connection with any matter based upon or arising out of this Agreement.  THE
COMPANY AND THE EXECUTIVE HEREBY WAIVE THEIR RESPECTIVE RIGHT TO TRIAL BY JURY IN ANY ACTION CONCERNING THIS AGREEMENT OR ANY AND ALL
MATTERS ARISING DIRECTLY OR INDIRECTLY HEREFROM AND REPRESENT THAT THEY HAVE CONSULTED WITH COUNSEL OF THEIR CHOICE OR HAVE CHOSEN VOLUNTARILY
NOT TO DO SO SPECIFICALLY WITH RESPECT TO THIS WAIVER.


 


I.       Entire
Agreement.  This Agreement embodies the entire understanding of the Parties as it relates to the subject matter contained herein
and as such, supersedes any prior agreement or understanding between the Parties relating to the terms of employment of the Executive
(but not any option grant agreement issued by the Company to the Executive), including without limitation the Prior Employment Agreement. 
No amendment or modification of this Agreement shall be valid or binding upon the Parties unless in writing executed by the Parties.


 














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


 


	 	CELLDEX THERAPEUTICS, INC.
	 	 	 
	 	By:	/s/ Anthony Marucci
	 	Title:	Chief Executive Officer
	 	 	 
	 	/s/ Sarah Cavanaugh
	 	SARAH CAVANAUGH


 






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