Exhibit 10.9


 


AMENDED AND RESTATED EMPLOYMENT AGREEMENT


 


This AMENDED AND RESTATED EMPLOYMENT AGREEMENT
(the “Agreement”) is entered into as of July 1, 2021 (the “Effective Date”), between Diane Young, MD
(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 and Chief Medical Officer pursuant to the terms of an employment
agreement dated July 8, 2019 (the “Prior Employment Agreement”);


 


WHEREAS,
as of the Effective Date the Company desires to employ the Executive as its Senior Vice President and Chief Medical Officer, 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 and Chief Medical
Officer, 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 $438,141 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 and Chief Medical Officer 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 his 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).


 






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(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 his 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.


 


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
Hampton, New Jersey 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).


 






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(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.


 


(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 Subsection 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.


 






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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


 


(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.


 






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(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.


 


(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.


 






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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.


 


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 his estate except to pay the Executive’s estate any Base Salary or Annual Bonus earned and accrued but remaining
unpaid prior to his 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 his 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.


 






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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.


 


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 he 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.


 






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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).  No amendment or modification of this Agreement shall
be valid or binding upon the Parties unless in writing executed by the Parties.


 


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 S. Marucci
	 	Title:	Chief Executive Officer
	 	 	 
	 	/s/ Diane Young
	 	Diane Young, MD


 






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