Exhibit 10.4


 


AMENDED AND RESTATED EMPLOYMENT AGREEMENT


 


This AMENDED AND RESTATED EMPLOYMENT AGREEMENT
(the “Agreement”) is entered into on July 1, 2021 (the “Effective Date”), between Ronald A. Pepin, Ph.D.
(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 Business Officer pursuant to the terms of an employment
agreement January 1, 2013 (the “Prior Employment Agreement”);


 


WHEREAS,
as of the Effective Date the Company desires to employ the Executive as its Senior Vice President and Chief Business 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 Business 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 $366,586 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”) (pro-rated for partial
years) 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 Business Officer, shall report directly
to the CEO and shall perform such duties as the Company may reasonably require and shall use his best efforts to carry into effect the
directions of the CEO. 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 his knowledge, expertise, technical skill
and ingenuity in the performance of his duties and exercise of his 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 his work for the Company, any confidential information imparted to the Executive or with which he may have
come into contact while in the employ of his 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 his 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 his employment,
hereby represents that, to the best of his knowledge, there is not as of the date of this Agreement any agreement or obligation outstanding
with or to any of his former employers or other party, which would restrict, limit or in any way prohibit all or any portion of his work
or employment, nor is there in his possession any confidential information used by any of his 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 of Directors (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 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 his 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 his 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 his 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 unless he no longer reports directly to
the Chief Executive Officer or the Board; (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 his 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 his 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).  Further, in the event
that the Term is terminated pursuant to Subsection 6.B.(1) or 6.B.(2) only, 25% of the Executive’s outstanding, unvested
options, restricted stock and/or equity awards shall become fully and immediately vested.  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 to the
Executive, the Executive shall be entitled to exercise his 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 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 he 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 his employment with the Company, within
55 days following his 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:


 






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(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.


 


(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:


 






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(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.


 


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 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.


 


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.


  






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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), 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.


 


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/ Ronald A. Pepin, Ph.D.
	 	RONALD A. PEPIN, PH.D.


 






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