Exhibit 10.20


 


EXECUTIVE
EMPLOYMENT AGREEMENT


 


This Executive Employment
Agreement (the “Agreement”), dated ________, 20___, is made and entered into by and between COGNITION THERAPEUTICS, INC.,
a Delaware corporation (the “Company”) and James O’Brien (“Executive”), and will become effective
on the first date that the Company’s common stock is traded on a national stock exchange or national market system (the “Effective
Date”).


 


Introduction


 


WHEREAS, Executive is currently
employed by the Company as its Chief Financial Officer in accordance with the terms and conditions of that certain letter agreement by
and between the Company and Executive dated October 7, 2019 (the “Prior Agreement”); and


 


WHEREAS, the parties desire
to replace the Prior Agreement with this Agreement, effective as of the Effective Date.


 


NOW, THEREFORE, for good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the parties
agree as follows:


 


1.             Position.
Executive will continue to serve as the Chief Financial Officer of the Company and will continue to report to the Chief Executive Officer
of the Company or his or her delegate. In addition to performing the duties and responsibilities associated with that position, from time
to time the Company may assign to Executive other duties and responsibilities reasonable and consistent with such position. Executive
agrees to devote his full business time and best efforts to the performance of his duties and to the furtherance of the Company’s
interests. Executive also agrees that during his employment with the Company, he will not engage in any other employment, consulting or
business services without the written consent of the Company; provided, however, that without such consent, Executive may engage in charitable
or public service, so long as such activities do not interfere with the performance of his duties and obligations to the Company.


 


2.             Term.
Executive’s employment pursuant to this Agreement will commence on the Effective Date and will continue until terminated in accordance
with Section 9 hereof. Notwithstanding the foregoing, if the Company’s common stock has not commenced trading on a national
stock exchange or national market system on or prior to December 31, 2022, this Agreement shall be null and void.


 


3.             Place
of Performance. Executive will perform services hereunder at the principal executive offices
of the Company in a location to be determined by the board of directors of the Company (the “Board”); provided, however,
that Executive may be required to travel from time to time for business purposes.


 






    


     


    

 


4.             Salary.
This is a full-time exempt position. The Company will pay Executive a salary at an annual rate of $387,500 (“Base Salary”),
payable in accordance with the Company’s standard payroll schedule and subject to applicable deductions and withholdings. The Base
Salary shall be reviewed on an annual basis by the Compensation Committee of the Board (the “Committee”) and may be
adjusted from time to time by the Committee.


 


5.             Annual
Bonus. For each calendar year ending during his employment, Executive will have the opportunity
to earn an annual bonus with a target amount of 40% of the Base Salary in effect at the end of the applicable year (the “Target
Bonus”). The actual bonus payable to Executive, if any,
with respect to any year may be more or less than the Target Bonus and will be determined by the Committee, in its sole discretion, based
on the achievement of corporate and/or personal objectives established by the Committee. Except as
otherwise provided herein or determined by the Committee, payment of any otherwise earned bonus will be conditioned on Executive’s
continued service through the date that annual bonuses are paid to the Company’s executive officers generally with respect to the
applicable year.


 


6.             Equity
Incentives. Executive may receive equity awards, at times and on terms determined by the
Committee in its discretion.


 


7.             Benefits;
Business Expenses.


 


(a)           Executive
shall be entitled to participate in Company benefit plans that are generally available to other employees of the Company of similar rank
and tenure, in accordance with and subject to the terms and conditions of such plans, as in effect from time to time.


 


(b)           The
Company will pay or reimburse Executive for all reasonable business expenses incurred or paid by Executive in the performance of his duties
and responsibilities for the Company in accordance with the expense reimbursement policies of the Company, as may be amended from time
to time.


 


8.             Restrictive
Covenants Agreement. To induce the Company to enter into this Agreement, as a condition to
Executive’s continued employment by the Company, and in recognition of (i) the compensation payable to Executive pursuant to
this Agreement, and (ii) such other consideration payable to Executive by the Company or any of its affiliates, Executive must sign
and return to the Company no later than the Effective Date the restrictive covenants agreement attached hereto as Exhibit A
(the “Restrictive Covenants Agreement”).


 






    -2-


     


    

 


9.             Termination.


 


(a)           Executive’s
employment hereunder shall terminate on the earliest of: (i) on the date set forth in a written notice to Executive from the Board
that Executive’s employment with the Company has been or will be terminated, (ii) on the date not less than 30 days following
written notice from Executive to the Company that Executive is resigning from the Company, (iii) on the date of Executive’s
death, or (iv) on the date set forth in a written notice to Executive from the Board that Executive’s employment is terminated
on account of Executive’s Disability, as determined by the Board. Notwithstanding the foregoing, in the event that Executive gives
notice of termination to the Company, the Company may unilaterally accelerate the date of termination and such acceleration shall not
constitute a termination by the Company for purposes of this Agreement.


 


(b)           Upon
cessation of Executive’s employment for any reason, unless otherwise consented to in writing by the Board, Executive will resign
immediately from any and all officer, director and other positions Executive then holds with the Company and its affiliates and agrees
to execute such documents as may be requested by the Company to confirm that resignation.


 


(c)           Upon
any cessation of Executive’s employment with the Company, Executive will be entitled only to such compensation and benefits as described
in Section 10 below.


 


(d)           Executive
agrees that, following any cessation of his employment and subject to reimbursement of his reasonable expenses, he will cooperate with
the Company and its counsel with respect to any matter (including litigation, investigations, or governmental proceedings) in which Executive
was in any way involved during his employment with the Company. Executive agrees to render such cooperation in a timely manner on reasonable
notice from the Company, provided the Company exercises reasonable efforts to limit and schedule the need for Executive’s cooperation
so as not to materially interfere with his other professional obligations.


 


(e)           Executive
agrees that, upon any cessation of his employment, he will deliver to the Company (and will not retain in his possession or control, or
deliver to anyone else) all property and equipment of the Company, including without limitation (i) all keys, books, records, computer
hardware, software, cellphones, access cards, credit cards and identification, and (ii) all other Company materials (including copies
thereof), including without limitation any records, data, notes, reports, proposals, lists or correspondence.


 


10.           Rights
Upon Termination.


 


(a)           Termination
without Cause or Resignation for Good Reason. If Executive’s employment by the Company ceases due to a termination by the
Company without Cause (as defined below) or a resignation by Executive for Good Reason (as defined below):


 


(i)            the
Company shall pay to Executive the Accrued Obligations (as defined below) at the time such Accrued Obligations would otherwise be paid
according to the Company’s usual payroll practices;


 


(ii)           to
the extent then unpaid, the Company shall pay to Executive the Earned Bonus (as defined below);


 






    -3-


     


    

 


(iii)          the
Company shall make monthly severance payments equal to one-twelfth of Executive’s Base Salary as in effect immediately prior to
such cessation of employment (or, if such cessation is due to the Good Reason described in clause (i) of that definition, the Base
Salary in effect immediately prior to such material diminution) for a period equal to the Severance Period;


 


(iv)          if
Executive validly elects to receive continuation coverage under the Company’s group health plan (if any) pursuant to the Consolidated
Omnibus Budget Reconciliation Act of 1985 (“COBRA”), the Company shall pay the applicable premium otherwise payable
for COBRA continuation coverage for Executive and his eligible dependents, to the extent such premium exceeds the monthly amount charged
to active similarly-situated employees of the Company for the same coverage until the earlier of (x) the end of the Severance Period,
or (y) such date as Executive becomes eligible for group health insurance through another employer; and


 


(v)           if
such cessation of employment occurs within three (3) months prior to or twelve (12) months following a Change in Control (as
defined below), (x) the Company shall pay to Executive an amount equal to the Target Bonus, and (y) all outstanding equity awards
that are subject to vesting based solely on the passage of time and Executive’s continued employment shall become vested upon the
later of the date of Executive’s cessation of employment and the Change in Control.


 


Except as otherwise provided in this Section 10(a) or
pursuant to COBRA, all compensation and benefits will cease at the time of Executive’s cessation of employment and the Company will
have no further liability or obligation by reason of such cessation of employment. The payments and benefits described in this Section 10(a) are
in lieu of, and not in addition to, any other severance arrangement maintained by the Company. Notwithstanding any provision of this Agreement,
the payments and benefits described in Sections 10(a)(ii) - 10(a)(v) are conditioned on Executive’s execution and
delivery to the Company and the expiration of all applicable statutory revocation periods, by the 60th day following the effective
date of Executive’s cessation of employment, of a general release of claims against the Company and its affiliates in a form and
manner satisfactory to the Company (the “Release”) and on Executive’s continued compliance with the provisions
of the Restrictive Covenants Agreement.


 


Subject to Section 11 below (to the
extent applicable) and provided the Release requirement described above has been timely satisfied: (x) the payment described in Section 10(a)(ii) will
be paid on the later of the sixty-fifth (65th) day following Executive’s cessation of employment (the “Settlement
Date”), or the date such annual bonus would have otherwise been paid, absent Executive’s cessation of employment; (y) the
payments described in Sections 10(a)(iii)- 10(a)(iv) will commence to be paid on the Settlement Date, provided that the initial
payment will include any payments that, but for the above-described timing rule, would have otherwise been paid since the date of Executive’s
cessation of employment; and (z) the payment of the Target Bonus amount described in Section 10(a)(v)(x) will be paid on
the later of the Settlement Date or the tenth (10th) day following the Change in Control.


 






    -4-


     


    

 


(b)           Other
Terminations.


 


(i)            If
Executive’s employment with the Company ceases due to Executive’s death or Disability, then the Company shall not have any
further obligation or liability under this Agreement except for payment of the Accrued Obligations and the Earned Bonus. The Accrued Obligations
shall be paid on the first payroll date following the last date of employment to the extent administratively feasible and, if not, then
at the second payroll date following the last date of employment. The Earned Bonus, if any, will be paid when it would have been paid
had Executive remained employed with the Company.


 


(ii)           If
Executive’s employment with the Company ceases for any reason other than as described in Sections 10(a) and 10(b)(i) above
(including but not limited to (i) termination by the Company for Cause or (ii) resignation by Executive without Good Reason),
then the Company’s obligation to Executive will be limited solely to the payment of the Accrued Obligations through the date of
such cessation of employment. The Accrued Obligations shall be paid on the first payroll date following the last date of employment to
the extent administratively feasible and, if not, then on the second payroll date following the last date of employment. The foregoing
will not be construed to limit Executive’s right to payment or reimbursement for claims incurred prior to the date of such termination
under any insurance contract funding an employee benefit plan, policy or arrangement of the Company in accordance with the terms of such
insurance contract.


 


11.           Section 409A.


 


(a)           The
parties intend for this Agreement to comply with or be exempt from Section 409A of the Code, and all provisions of this Agreement
will be interpreted and applied accordingly. Nonetheless, the Company does not guaranty the tax treatment of any compensation payable
to Executive.


 


(b)           Notwithstanding
anything to the contrary in this Agreement, no portion of the benefits or payments to be made under Section 10(a) above
will be payable until Executive has a “separation from service” from the Company within the meaning of Section 409A of
the Code. In addition, to the extent compliance with the requirements of Treas. Reg. § 1.409A-3(i)(2) (or any successor provision)
is necessary to avoid the application of an additional tax under Section 409A of the Code to payments due to Executive upon or following
his “separation from service,” then notwithstanding any other provision of this Agreement (or any otherwise applicable plan,
policy, agreement or arrangement), any such payments that are otherwise due within six months following Executive’s “separation
from service” (taking into account the preceding sentence of this paragraph) will be deferred without interest and paid to Executive
in a lump sum immediately following that six month period. This paragraph should not be construed to prevent the application of Treas.
Reg. § 1.409A-1(b)(9)(iii) (or any successor provision) to amounts payable hereunder. For purposes of the application of Section 409A
of the Code, each payment in a series of payments will be deemed a separate payment.


 






    -5-


     


    

 


(c)           Notwithstanding
anything in this Agreement to the contrary, to the extent an expense, reimbursement or in-kind benefit provided to Executive pursuant
to this Agreement or otherwise constitutes a “deferral of compensation” within the meaning of Section 409A of the Code:
(i) the amount of expenses eligible for reimbursement or in-kind benefits provided to Executive during any calendar year will
not affect the amount of expenses eligible for reimbursement or in-kind benefits provided to Executive in any other calendar year, (ii) the reimbursements
for expenses for which Executive is entitled to be reimbursed shall be made on or before the last day of the calendar year following the
calendar year in which the applicable expense is incurred, and (iii) the right to payment or reimbursement or in-kind benefits
hereunder may not be liquidated or exchanged for any other benefit.


 


12.           Section 280G.
Notwithstanding any contrary provision of this Agreement (or any plan, policy, agreement or other arrangement covering Executive), if
any payment, right or benefit paid, provided or due to Executive, whether pursuant to this Agreement or otherwise (each, a “Payment,”
and collectively, the “Total Payments”), would subject Executive to the excise tax imposed by Section 4999 of the Code
(the “Excise Tax”), then the Total Payments will be reduced to the minimum extent necessary to avoid the imposition of the
Excise Tax, but only if (i) the amount of such Total Payments, as so reduced, is greater than or equal to (ii) the amount of
such Total Payments without reduction (in each case, determined on an after-tax basis). Any reduction of the Total Payments required by
this ‎paragraph will be implemented by determining the Parachute Ratio (as defined below) for each Payment and then by reducing the
Payments in order, beginning with the Payment with the highest Parachute Ratio. For Payments with the same Parachute Ratio, later Payments
will be reduced before earlier Payments. For Payments with the same Parachute Ratio and the same time of payment, each Payment will be
reduced proportionately. For purposes of this paragraph, “Parachute Ratio” means a fraction, (x) the numerator of which
is the value of the applicable Payment, as calculated for purposes of Section 280G of the Code, and (y) the denominator of which
is the economic value of the applicable Payment.


 


13.           Certain
Definitions. For purposes of this Agreement:


 


(a)           “Accrued
Obligations” mean any portion of Executive’s Base Salary payable for the payroll period in which Executive’s termination
of employment occurs for service prior to the termination date, and any business expenses properly incurred but not yet reimbursed, as
provided for in Section 7(b).


 


(b)           “Cause”
means (i) Executive’s refusal to comply with any lawful directive or policy of the Company which refusal is not cured by Executive
within ten (10) days of such written notice from the Company; (ii) the Company’s determination that Executive has committed
any act of dishonesty, embezzlement, unauthorized use or disclosure of confidential information or other intellectual property or trade
secrets, common law fraud or other fraud against the Company or any subsidiary or affiliate; (iii) a material breach by Executive
of any written agreement with or any fiduciary duty owed to any Company or any subsidiary or affiliate; (iv) Executive’s conviction
(or the entry of a plea of a nolo contendere or equivalent plea) of a felony or any misdemeanor involving material dishonesty or moral
turpitude; or (v) Executive’s habitual or repeated misuse of, or habitual or repeated performance of Executive’s duties
under the influence of, alcohol, illegally obtained prescription controlled substances or non-prescription controlled substances.


 






    -6-


     


    

 


(c)           “Change
in Control” will have the meaning set forth in the Cognition Therapeutics, Inc. 2021 Equity Incentive Plan.


 


(d)           “Code”
means the Internal Revenue Code of 1986, as amended.


 


(e)           “Disability”
means a condition entitling Executive to benefits under the Company’s long term disability plan, policy or arrangement; provided,
however, that if no such plan, policy or arrangement is then maintained by the Company and applicable to Executive, “Disability”
will mean illness, incapacity or a mental or physical condition that renders Executive unable or incompetent, with or without a reasonable
accommodation, to carry out the job responsibilities that Executive held or the tasks that Executive was assigned at the time the disability
commenced, as determined in good faith by a physician mutually acceptable to the Company and Executive, for a period of 90 consecutive
days, or 180 non-consecutive days in any rolling 12-month period. Termination as a result of a Disability will not be construed as a termination
by the Company “without Cause.”


 


(f)            “Earned
Bonus” means the bonus amount (if any) earned under Section 5 with respect to the fiscal year ended immediately
prior to the cessation of Executive’s employment, to the extent unpaid.


 


(g)           “Good
Reason” means: (i) a reduction in the Base Salary, as then in effect, other than in connection with the same percentage
across-the-board decrease in base salaries applicable to other key executives; (ii) a material reduction of Executive’s authority,
position, responsibilities, duties or title, except that, following a Change of Control, a reduction in authority, position, responsibilities,
duties or title, solely by virtue of the Company being acquired and becoming part of a larger entity or operated as a subsidiary shall
not constitute Good Reason, (iii) the Company’s material breach of this Agreement, or (iv) a relocation of Executive’s
principal workplace by more than 30 miles; provided, however, that no such event will constitute Good Reason unless (x)  Executive,
within 60 days after the initial existence of the act or failure to act by the Company that constitutes “Good Reason” within
the meaning of this Agreement, provides the Company with written notice that describes, in particular detail, the act or failure to act
that Executive believes to constitute “Good Reason” and identifies the particular clause of this Section 13(g) that
Executive contends is applicable to such act or failure to act; (y) the Company, within 30 days after its receipt of such notice,
fails or refuses to rescind such act or remedy such failure to act so as to eliminate “Good Reason” for the termination by
Executive of Executive’s employment relationship with the Company; and (z) Executive actually resigns from the employ of the
Company on or before that date that is 12 months after the initial existence of the act or failure to act by the Company that constitutes
 “Good Reason.” If the requirements of the immediately preceding sentence are not fully satisfied on a timely basis, then the
resignation by Executive from the employ of the Company shall not be deemed to have been for “Good Reason,” Executive shall
not be entitled to any of the benefits to which Executive would have been entitled if Executive had resigned from the employ of the Company
for “Good Reason,” and the Company shall not be required to pay any amount or provide any benefit that would otherwise have
been due to Executive under this Agreement had Executive resigned with “Good Reason.”


 






    -7-


     


    

 


(h)           “Severance
Period” means nine (9) months. Notwithstanding the foregoing, with respect to a cessation of employment due to a termination
by the Company without Cause or resignation by Executive for Good Reason that occurs (in either case) within three (3) months prior
to or twelve (12) months following a Change in Control, “Severance Period” shall mean twelve (12) months.


 


14.           Company
Policies. Executive will comply with all policies of the Company in effect from time to time,
including (without limitation) policies regarding ethics, personal conduct, stock ownership, securities trading, clawback and hedging
and pledging of securities.


 


15.           Indemnification.
In addition to any rights to indemnification to which Executive may be entitled under the Company’s governing documents, the Company
shall obtain and maintain an appropriate level of Directors and Officers Liability insurance coverage for Executive’s benefit on
the same terms as applicable to other directors and C-level executives of the Company.


 


16.           No
Conflicting Agreements. Executive represents and warrants that he is not a party to or otherwise
bound by any agreement or restriction that could conflict with, or be violated by,
the performance of his duties to the Company or his obligations under this Agreement. Executive will not use or misappropriate
any intellectual property, trade secrets or confidential information belonging to any third party.


 


17.           Taxes.
All compensation payable to Executive are subject to reduction to reflect applicable withholding and payroll taxes and other deductions
required by law. Executive hereby acknowledges that the Company does not have a duty to design its compensation policies in a manner that
minimizes Executive’s tax liabilities, and Executive not make any claim against the Company or its board of directors related to
tax liabilities arising from his compensation.


 


18.           Entire
Agreement; Assignment; Amendment.


 


(a)            This
Agreement, together with the Restrictive Covenants Agreement, constitutes the final and entire agreement of the parties with respect to
the matters covered hereby and replace and supersede all prior agreements, discussions, negotiations, representations or understandings
(whether written, oral or implied) relating to Executive’s employment by the Company, including without limitation the Prior Agreement.


 






    -8-


     


    

 


(b)           The
rights and obligations of Executive hereunder are personal and may not be assigned. The Company may assign this Agreement, and its rights
and obligations hereunder, to any entity to which the Company transfers substantially all of its assets (or an affiliate thereof). Notwithstanding
any other provision of this Agreement, any such assignment of this Agreement by the Company will not entitle Executive to severance benefits
under Section 10(a) or otherwise, whether or not Executive accepts employment with the assignee.


 


(c)           This
Agreement may be amended or modified only by a written instrument signed by a duly authorized officer of the Company and Executive.


 


19.           Governing
Law. This Agreement shall be governed by and construed in accordance with the internal laws
of the Commonwealth of Pennsylvania, without regard to its choice of law provisions.


 


20.           Arbitration.
In the event of any dispute under the provisions of this Agreement or otherwise regarding Executive’s employment or compensation
(other than a dispute in which the primary relief sought is an injunction or other equitable remedy, such as an action to enforce compliance
with the Restrictive Covenants Agreement, the parties shall be required to have the dispute, controversy or claim settled by arbitration
in Allegheny County, Commonwealth of Pennsylvania, in accordance with the National Rules for the Resolution of Employment Disputes
then in effect of the American Arbitration Association (“AAA”), by one arbitrator mutually agreed upon by the parties
(or, if no agreement can be reached within 30 days after names of potential arbitrators have been proposed by the AAA, then by one arbitrator
having relevant experience who is chosen by the AAA). Any award or finding will be confidential. The arbitrator may not award attorneys’
fees to either party unless a statute or contract at issue specifically authorizes such an award. Any award entered by the arbitrators
will be final, binding and non-appealable and judgment may be entered thereon by either party in accordance with applicable law in any
court of competent jurisdiction. This arbitration provision will be specifically enforceable. Each party will be responsible for its own
expenses relating to the conduct of the arbitration (including reasonable attorneys’ fees and expenses) and will share equally the
fees of the arbitrator.


 


21.           Headings.
The headings of the sections of this Agreement are inserted for convenience only and shall not the meaning of this Agreement.


 


22.           Notices.
All notices, demands or other communications hereunder shall be in writing and shall be deemed to have been duly given if delivered in
person, by e-mail or fax, by United States mail, certified or registered with return receipt requested, or by a nationally recognized
overnight courier service, or otherwise actually delivered: (a) if to Executive, at the most recent address contained in the Company’s
personnel files; (b) if to the Company, to the attention of its Legal Department at the address of its principal executive office;
or (c) or at such other address as may have been furnished by such person in writing to the other party. Any such notice, demand
or communication shall be deemed given on the date given, if delivered in person, e-mailed or faxed, on the date received, if given by
registered or certified mail, return receipt requested or by overnight delivery service, or three days after the date mailed, if otherwise
given by first class mail, postage prepaid.


 


23.           Counterparts.
This Agreement may be executed in separate counterparts, any one of which need not contain signatures of more than one party, but all
of which taken together will constitute one and the same Agreement.


 


[Signature Page Follows]


 






    -9-


     


    

 


This Agreement has been executed
and delivered on the date first above written.


 


	 	COGNITION THERAPEUTICS, INC.
	 	 	                           
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	EXECUTIVE
	 	 	 
	 	 	 
	 	JAMES O’BRIEN