Exhibit 10.17


 





CONSULTING SERVICES AGREEMENT


Between


PaxMedica, Inc. and 


Stephen Douglas Sheldon


 


 


This Consulting Services Agreement (this “Agreement”)
is made and entered into as of the 16th day of July, 2022 (“Effective Date”), by and between PaxMedica, Inc, located
at 303 So. Broadway, Suite 123, Tarrytown, NY 10591 (“COMPANY”), and Stephen Douglas Sheldon, (“CONSULTANT”) with
an address at 2 Revolutionary Way, Apt 321, Hopkinton MA 01748 and referred to collectively as the “Parties” or singly for
either entity as the “Party”.


 


		Agreement	



 


		1.	Performance; Independent Contractor.



 


COMPANY hereby retains
CONSULTANT, and CONSULTANT hereby agrees to be retained, to provide certain services (the “Services”) exclusively as an independent
contractor of COMPANY. CONSULTANT shall perform the Services for COMPANY and shall commit such resources and professional time as is reasonably
necessary to perform the Services.


 


		2.	Consideration 



 


COMPANY shall compensate
CONSULTANT as per the terms and conditions in Exhibit A.


 


		3.	Representations and Warranties of COMPANY.



 


The execution, delivery
and performance of this Agreement by COMPANY will not result in any breach of, or default under, any term or provision of any agreement,
obligation, instrument, judgment, decree, order, statute, rule or governmental regulation to which COMPANY is a party or by which COMPANY
may be bound or which applies to COMPANY. COMPANY has all rights and permissions necessary for CONSULTANT to perform the Services. COMPANY
is duly authorized to enter into this Agreement and perform its obligations hereunder.


 


		4.	Representations and Warranties of CONSULTANT.



 


The execution, delivery
and performance of this Agreement by CONSULTANT will not result in any breach of, or default under, any term or provision of any agreement,
obligation, instrument, judgment, decree, order, statute, rule or governmental regulation to which CONSULTANT is a party or by which CONSULTANT
may be bound or which applies to CONSULTANT. CONSULTANT has all rights and permissions necessary to perform the Services. If required,
CONSULTANT has obtained all authorizations to enter into this Agreement and perform the obligations hereunder.


 


 


		5.	Confidentiality and Nondisclosure.



 


The Confidentiality
Agreement between COMPANY and CONSULTANT dated as of July 16,2022 is hereby incorporated by reference as though fully set forth herein,
and as so amended such that:


		A.	The term shall remain in full force and effect during the Term of this Agreement and;



		B.	neither Party shall use the other Party’s Confidential Information for its own or any third party’s
benefit, or allow any persons or entities access to the Confidential Information and;



		C.	CONSULTANT’S compensation
shall be considered Confidential Information.



 






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		6.	Return
of Materials



 


The CONSULTANT agrees to promptly return,
following the termination of this Agreement or upon earlier request by the COMPANY, all tangible or digital or other electronic embodiments
of the Confidential Information in the CONSULTANT’S possession and (i) supplied by the COMPANY in conjunction with the CONSULTANT’S
performance of the Services under this Agreement or (ii) generated by the CONSULTANT in the performance of the Services under this Agreement.


 


		7.	Intellectual Property



 


CONSULTANT’S
written and other work product, including all inventions, data, and other developments of any type, whether tangible or intangible, generated
in the course of the CONSULTANT’s services rendered pursuant to this Agreement is work for hire, and is the sole property of COMPANY.
CONSULTANT shall retain no rights in such written and otherwise tangible products of its work. CONSULTANT hereby assigns to COMPANY any
and all right, title and interest it may have in any written and otherwise tangible work product which it may invent and assist in inventing,
while performing the services pursuant to this Agreement.  CONSULTANT hereby assigns to COMPANY any interest it may have in any trade
names, trademarks, service marks or other forms of intellectual property which it may create or assist in the creating in the course of
its provision of services pursuant to this Agreement.  CONSULTANT shall disclose to COMPANY all art which it has invented in the
course of rendering services pursuant to this Agreement.  CONSULTANT shall assist COMPANY in securing protection of intellectual
property by signing agreements, assignments and other documents.  CONSULTANT shall be compensated for its time spent assisting COMPANY
to secure intellectual property protections.  To the extent that CONSULTANT has contributed as an inventor or creator of patentable
or otherwise protectable intellectual property, COMPANY and its assignees shall recognize CONSULTANT, without additional compensation,
in applications for intellectual property protection.  


 


		8.	Term and Termination.



 


The term of this
Agreement shall commence upon the Effective Date. This Agreement shall be in effect for (6) months (“Initial Term”) from the
Effective Date, unless earlier terminated for breach. Following the Initial Term, this Agreement will automatically renew on a monthly
basis. After the Initial Term and any year thereafter, it may be terminated by either Party for any reason or no reason upon thirty (30)
calendar days’ written notice. Either Party may terminate this Agreement for breach of the other Parties’ material obligations
hereunder at any time, and such breach is not cured within ten (10) calendar days following notification.


 


Should COMPANY choose
to terminate a specific Service prior to completion for any reason, COMPANY agrees to pay CONSULTANT:


		A.	all reasonable direct fees for Services performed up to the effective date of termination, and;



		B.	all pre-approved non-cancelable costs for third party contracted Services and other expenses, if any,
incurred in connection with any specific Service being terminated to the date of termination.



 


		9.	Indemnification.



 


COMPANY will defend,
indemnify, and hold CONSULTANT and its officers, trustees, affiliates, agents, servants, employees and independent contractors harmless
from and against any third party claims, demands, suits, actions, causes of actions, losses, damages, fines and liabilities, including
reasonable attorneys’ fees, arising out of the Services or breach of any of the covenants of this Agreement by COMPANY (“CONSULTANT
Losses”), and will pay any costs and damages which may be assessed against CONSULTANT, except that COMPANY shall not be obligated
to indemnify CONSULTANT for CONSULTANT Losses to the extent they result from the negligence or willful misconduct of CONSULTANT.


 






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CONSULTANT will defend,
indemnify, and hold COMPANY and its officers, trustees, affiliates, agents, servants, employees and independent contractors harmless
from and against any third party claims, demands, suits, actions, causes of actions, losses, damages, fines and liabilities,
including reasonable attorneys’ fees, arising out of the breach of any of the covenants of this Agreement by CONSULTANT
(“COMPANY Losses”), and will pay any costs and damages which may be assessed against COMPANY, except that CONSULTANT
shall not be obligated to indemnify COMPANY for COMPANY Losses to the extent they result from the negligence or willful misconduct
of COMPANY.


 


		10.	Notices.



 


All notices under
this Agreement shall be in writing, and shall be deemed given when personally delivered, or three (3) calendar days after being sent by
prepaid certified or registered U.S. mail to the address of the other Party to be noticed as set forth herein or such other address as
such Party last provided to the other by written notice.


 


		11.	Counterparts; Facsimile Signatures.



 


This Agreement may
be executed simultaneously in counterparts, each of which shall be deemed an original, but all of which together shall constitute one
and the same instrument. Signatures received by facsimile shall be deemed to be original signatures.


 


		12.	Injunctive Relief, Governing Law and Limitations of Liability



 


Injunctive Relief.
Notwithstanding the foregoing, the Parties shall (in addition to any other remedies that may be available, in law, in equity or otherwise)
be entitled to seek injunctive relief in connection with the breach or threatened breach of the covenants of this Agreement without the
necessity of proving actual damages.


 


Governing Law. This
Agreement and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall be governed, construed
and interpreted in accordance with the laws of the State of New York, without giving effect to principles of conflicts of law.


 


Limitations of Liability.
Except in the case of willful misconduct, gross negligence or fraudulent behavior, in no event shall either Party or its respectful affiliates
be liable to the other Party or its respective affiliates for any special, indirect, incidental, consequential or exemplary damages, including
without limitation, lost savings, lost profits or other economic loss, or loss of records or data, as a result of or arising out of this
Agreement, the provision of Services hereunder or any other matters relating to or arising from this Agreement, whether such claim be
in tort, contract or otherwise and whether or not the possibility of such damages was reasonably foreseeable or disclosed.


 


		13.	Assignment.



 


This Agreement
may not be assigned or otherwise transferred (in whole or in part, whether voluntarily, by operation of law or otherwise) by either Party
without the prior written consent of the other Party (which consent shall not be unreasonably withheld); provided, however, that such
consent shall not be required if the COMPANY (i) makes an assignment to an affiliate, or (ii) makes an assignment in connection with the
transfer or sale of all or substantially all of its business (whether by asset sale, merger, consolidation, or similar transaction) related
to this Agreement. This Agreement shall be binding upon the permitted successors and assigns of the Parties.


 






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IN WITNESS WHEREOF, this Agreement has been executed
and delivered by duly authorized representatives of all parties hereto as of the Effective Date.


 


	Stephen Douglas Sheldon	 	PaxMedica, Inc. 
	 	 	 
	By:	/s/ Stephen Douglas Sheldon	 	By:	/s/ Howard J. Weisman
	Name:  Stephen Douglas Sheldon	 	Name: Howard J. Weisman 
	Title:    Consultant  	 	Title:   CEO



 






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Exhibit A


 


Services and Compensation


 


		I.	Services



 


		A.	CONSULTANT
shall be interim part-time Chief Financial Officer and Principal Accounting Officer. CONSULTANT shall participate in meetings (whether
virtual or in-person) relating to matters including fundraising, SEC Reporting, Maintaining the General Ledger and other typical responsibilities
for the role. CONSULTANT shall provide other reasonable consulting Services as requested by COMPANY.



		B.	CONSULTANT
will become a formal member of COMPANY’S Management team, and COMPANY can reasonably communicate this, including that COMPANY can
list CONSULTANT on its website with a biography approved by CONSULTANT.



 


	II.	Compensation
	 	 



		A.	COMPANY shall pay CONSULTANT all fees, expenses and other amounts owed to CONSULTANT for Services within
thirty (30) days of receipt of an invoice from CONSULTANT without any setoff or deduction.



 


		B.	Service activities will be billed at a rate of $7,500.00 per month and will be expected to dedicate at
least 6 hours per week on average.



 


		C.	COMPANY shall grant 15,000 Restricted Stock Units to CONSULTANT which shall vest on December 31, 2022.



 


		D.	Approved out of pocket expenses (i.e., Travel, FedEx, phone,
etc.) will be billed at cost. 



 






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