Document:

EX-10.7

 Exhibit 10.7 

VIGIL NEUROSCIENCE, INC. 

NON-EMPLOYEE DIRECTOR COMPENSATION POLICY 

The purpose of this Non-Employee Director Compensation Policy (the “Policy”) of Vigil Neuroscience, Inc.
(the “Company”) is to provide a total compensation package that enables the Company to attract and retain, on a long-term basis, high-caliber directors who are not employees or officers of the Company or its subsidiaries (“Outside
Directors”). This Policy will become effective as of the effective time of the registration statement for the Company’s initial public offering of its equity securities (the “Effective Date”). In furtherance of the purpose stated
above, all Outside Directors shall be paid compensation for services provided to the Company as set forth below: 
 Cash Retainers 

Annual Retainer for Board Membership: $35,000 for general availability and participation in meetings and conference calls of our Board
of Directors, to be paid quarterly in arrears, pro-rated based on the number of actual days served by the director during such calendar quarter. No additional compensation will be paid for attending individual
meetings of the Board of Directors. 
  

					
	 Additional Annual Retainer for Non-Executive Chair:
	  	$	30,000	 
	 Additional Annual Retainers for Committee Membership:
	  			
	 Audit Committee Chair:
	  	$	15,000	 
	 Audit Committee member:
	  	$	7,500	 
	 Compensation Committee Chair:
	  	$	10,000	 
	 Compensation Committee member:
	  	$	5,000	 
	 Nominating and Corporate Governance Committee Chair:
	  	$	8,000	 
	 Nominating and Corporate Governance Committee member:
	  	$	4,000	 

 Chair and committee member retainers are in addition to retainers for members of the Board of Directors. No
additional compensation will be paid for attending individual committee meetings of the Board of Directors. 
 Notwithstanding the foregoing, each Outside
Director may elect to receive the entirety (but not a portion) of the aforementioned cash retainers in the form of an option to acquire common stock of the Company, with an aggregate Value equal to the amount of the cash retainers to be received by
such Outside Director (each such stock option award, a “Retainer Award”). Retainer Awards shall vest in four equal quarterly installments commencing on the date of grant, provided, however, that all vesting shall cease if the director
ceases to have a Service Relationship (as defined in the Company’s 2021 Stock Option and Incentive Plan), unless the Board of Directors determines that the circumstances warrant continuation of vesting. Retainer

 
Awards shall expire ten years from the date of grant, and shall have a per share exercise price equal to the Fair Market Value (as defined in the Company’s 2021 Stock Option and Incentive
Plan) of the Company’s common stock on the date of grant. Any such election to receive Retainer Awards in lieu of cash (i) shall be made (x) for any continuing Outside Director, by December 31st of the calendar year preceding the year with respect to any cash compensation is earned and (y) for any new Outside Director, within 30 days of her or his election to the Board, (ii) shall
be irrevocable with respect to such calendar year and (iii) shall automatically apply to the cash compensation for each subsequent calendar year unless otherwise revoked prior to the start of such calendar year. 

Value: For purposes of this Policy, “Value” means the grant date fair value of the stock option (i.e., Black-Scholes Value) determined in
accordance with the reasonable assumptions and methodologies employed by the Company for calculating the fair value of options under Financial Accounting Standard Board Accounting Standards Codification Topic 718. 

Equity Retainers 
 Initial
Award: An initial, one-time stock option award (the “Initial Award”) to purchase a number of shares of the Company’s common stock equal to 0.086% of the number of shares of the
Company’s common stock outstanding on the grant date will be granted to each new Outside Director upon his or her election to the Board of Directors, which shall vest in equal monthly installments over three years from the date of grant,
provided, however, that all vesting shall cease if the director ceases to have a Service Relationship, unless the Board of Directors determines that the circumstances warrant continuation of vesting. Initial Awards shall expire ten years from the
date of grant, and shall have a per share exercise price equal to the Fair Market Value of the Company’s common stock on the date of grant. This Initial Award applies only to Outside Directors who are first elected to the Board of Directors
subsequent to the Effective Date. 
 Annual Award: On each date of each Annual Meeting of Stockholders of the Company following the
Effective Date (the “Annual Meeting”), each continuing Outside Director, other than a director receiving an Initial Award, will receive an annual stock option award (the “Annual Award”) to purchase a number of shares of the
Company’s common stock equal to 0.043% of the number of shares of the Company’s common stock outstanding on the grant date, which shall vest in full upon the earlier of (i) the first anniversary of the date of grant or (ii) the
date of the next Annual Meeting; provided, however, that all vesting shall cease if the director ceases to have a Service Relationship, unless the Board of Directors determines that the circumstances warrant continuation of vesting. Annual Awards
shall expire ten years from the date of grant, and shall have a per share exercise price equal to the Fair Market Value of the Company’s common stock on the date of grant. 

Sale Event Acceleration: All outstanding Retainer Awards, Initial Awards and Annual Awards held by an Outside Director shall become
fully vested and exercisable upon a Sale Event (as defined in the Company’s 2021 Stock Option and Incentive Plan). 

  
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 Expenses 

The Company will reimburse all reasonable out-of-pocket expenses incurred by non-employee directors in attending meetings of the Board of
Directors or any committee thereof. 
 Maximum Annual Compensation 

The aggregate amount of compensation, including both equity compensation and cash compensation, paid by the Company to any Outside Director in
a calendar year for services as an Outside Director shall not exceed $1,000,000; provided, however, that such amount shall be $1,250,000 for the calendar year in which the applicable Outside Director is initially elected or appointed to the Board of
Directors (or such other limits as may be set forth in Section 3(b) of the Company’s 2021 Stock Option and Incentive Plan or any similar provision of a successor plan). For this purpose, the “amount” of equity compensation paid
in a calendar year shall be determined based on the grant date fair value thereof, as determined in accordance with FASB ASC Topic 718 or its successor provision, but excluding the impact of estimated forfeitures related to service-based vesting
conditions. 
 Adopted November 16, 2021. 

  
 3EX-10.8

 Exhibit 10.8 

November 4, 2021 
 PERSONAL AND CONFIDENTIAL

 Richard A. Fisher, PhD 

Re:    Transition Agreement 
 Dear
Richard: 
 As discussed, we greatly appreciate your service and contributions to Vigil Neuroscience, Inc. (the “Company”), as well as your
commitment to a smooth transition for the Company during this critical time. This letter agreement (the “Transition Agreement”) summarizes your transition into an advisory role with the Company during the remainder of your employment as
well as the opportunity for you to continue as a consultant for the Company after your separation from employment. As set forth further below, this Transition Agreement will supersede your employment agreement with the Company, dated August 15,
2020 (the “Employment Agreement”), except to the extent provisions are specifically preserved and incorporated herein. 
 With those
understandings, you and the Company agree as follows: 
 1.    Transition Period 

 

	(a)	 Separation Date; Transition Period. Your employment with the Company will end on April 21, 2022,
unless you resign or the Company terminates the relationship for Cause (as defined in the Employment Agreement) on an earlier date. The actual last day of your employment will be referred to in this document as the “Separation Date”
and the time period between the October 20, 2021 and the Separation Date is the “Transition Period”. 

  

	(b)	 Advisory Role. Effective October 20, 2021, you will transition out of your role as Chief Scientific
Officer. Your new title and position will be Senior Scientific Advisor, reporting to the Company’s Chief Executive Officer (“CEO”). This will be a full-time position unless the CEO determines in her discretion to assign you a
modified schedule after consultation with you. 

  

	(c)	 Compensation During Transition Period. During the Transition Period, you will continue to receive your
base salary at its current rate and be eligible for employee benefits as currently in effect (and subject to the terms of such benefits plans) throughout the Transition Period. You will be eligible for your 2021 annual incentive bonus, but will not
be eligible for any Company bonuses in 2022. 

  

	(d)	 Termination. If the Company terminates your employment prior to April 22, 2021 without Cause you will
continue to be paid as set forth in Section 1(c) through April 21, 2022 and your stock options will continue to vest through April 21, 2022. 

 As of the Separation Date, you will be no longer be employed at the Company and you agree that you will have
resigned from any and all positions that you hold with the Company and any of its affiliates as an officer, director or otherwise, effective as of the Separation Date. You agree to execute any documents required or reasonably requested by the
Company or any of its affiliates in order to effectuate your resignations.  
 2.    Consulting Agreement 

 

	(a)	 Consulting Agreement Conditions. Provided that (i) you timely enter into and comply with this
Transition Agreement; (ii) you timely enter into and comply with the Consulting Agreement in the form attached as Exhibit A (the “Consulting Agreement”); (iii) you do not resign prior to April 22, 2022 without the
CEO’s consent; and (iv) your employment is not terminated for Cause (the “Consulting Agreement Conditions”), you may continue your Service Relationship (as defined in the Company’s Equity Documents, as defined below)
pursuant to the terms of the Consulting Agreement. 

  

	(b)	 Consulting Period. If you satisfy the Consulting Agreement Conditions, the Consulting Agreement will
become effective as of the Separation Date and end on the last day of the six (6) month period following the Separation Date, unless the Consulting Agreement is terminated earlier by either you or the Company in accordance with the Consulting
Agreement (the “Consulting Period”). 

  

	(c)	 Continued Service Relationship During Consulting Period. As described in greater detail in the
Consulting Agreement, at all times during the term of the Consulting Agreement, you will no longer be an employee or officer of the Company, but instead will be retained as an independent contractor. If the Consulting Agreement becomes effective on
the Separation Date, you will continue to vest in your outstanding stock options (“Options”) until the ending of the Consulting Period, subject in all respects to the applicable award agreement(s) and the Company’s 2020 Equity
Plan, as amended, or any predecessor or successor plan (together, the “Equity Documents”). If the Consulting Agreement does not become effective, all Options that are not vested as of your Separation Date shall lapse and terminate
on that date and will not be exercisable. Notwithstanding the foregoing or anything to the contrary in the Equity Documents, you hereby agree that 402,682 shares of common stock underlying your Options (representing the number of shares that will
remain unvested as of the end of your Consulting Period) shall terminate, lapse and be forfeited for no consideration as of the Effective Date (as defined below). 

 

	(d)	 COBRA Continuation During the Consulting Period. During the Consulting Period, you will be given the
opportunity to elect continued health insurance coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”). Subject to your election of COBRA coverage, the Company shall pay the premiums for
COBRA coverage for you until the end of the Consulting Period and will deduct from your consulting fees an amount equal to the premium contributions due from active employees for the same coverage. Notwithstanding the foregoing, if, due to future
changes in tax laws, the Company determines that its payments pursuant to this paragraph may be taxable income to you, it may convert such payments to payroll payments directly to you on the Company’s regular payroll dates, which shall be
subject to tax-related deductions and withholdings. 

  
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 3.    Waiver of Severance and Good Reason 

You and the Company agree and hereby acknowledge that neither the Company’s tendering of this Transition Agreement nor any aspect of this Transition
Agreement taking effect shall constitute an occurrence triggering “Resignation for Good Reason” under the Employment Agreement. You acknowledge and agree that you are not eligible for Severance as set forth in Section 7(b) of the
Employment Agreement. 
 4.    Restrictive Covenants 

The Company is not enforcing and will not enforce Section 6.1 of Employee Confidential Information and Inventions Assignment Agreement between you and the
Company dated August 17, 2020 (the “Restrictive Covenants Agreement”). Accordingly, you are not entitled to “Mutually Agreed Upon Consideration” or “Garden Leave Payments” as defined in Section 6.5 of
the Restrictive Covenants Agreement. However, in exchange for this Transition Agreement being entered into in connection with the cessation of your employment and the opportunity to enter into the Consulting Agreement, you agree that, for one year
after the Separation Date, you will not engage in or otherwise participate in any business that develops, manufactures or markets any products, or performs any services, including the research and development thereof, relating to TREM2 (the
“Noncompetition Obligation”). If you breach the Noncompetition Obligation, all of the legal and equitable remedies set forth in the Restrictive Covenants Agreement shall be available to the Company. You acknowledge and agree that
all other obligations under the Restrictive Covenants Agreement shall continue in effect and you hereby reaffirm all such obligations and, along with the remedies provisions, are incorporated by reference herein. 

5.    Release of Claims 
 In
consideration for, among other terms, the opportunities and benefits set forth in this Transition Agreement, to which you acknowledge you would otherwise not be entitled, you voluntarily release and forever discharge the Company, its affiliated and
related entities, its and their respective predecessors, successors and assigns, its and their respective employee benefit plans and fiduciaries of such plans, and the current and former officers, directors, shareholders, employees, attorneys,
accountants and agents of each of the foregoing in their official and personal capacities (collectively referred to as the “Releasees”) generally from all claims, demands, debts, damages and liabilities of every name and nature,
known or unknown (“Claims”) that, as of the date when you sign this Transition Agreement, you have, ever had, now claim to have or ever claimed to have had against any or all of the Releasees. This release includes, without
limitation, all Claims: 
  

	 	•	 	 relating to your employment by and the ending of employment with the Company; 

 

	 	•	 	 of wrongful discharge or violation of public policy; 

 

	 	•	 	 of breach of contract; 

  
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	 	•	 	 of defamation or other torts; 

 

	 	•	 	 of retaliation or discrimination under federal, state or local law (including, without limitation, Claims of
discrimination or retaliation under the Age Discrimination in Employment Act, the Americans with Disabilities Act, and Title VII of the Civil Rights Act of 1964); 

 

	 	•	 	 under any other federal or state statute (including, without limitation, Claims under the Fair Labor Standards
Act); 

  

	 	•	 	 for wages, bonuses, incentive compensation, commissions, stock, stock options, vacation pay or any other
compensation or benefits, either under the Massachusetts Wage Act, M.G.L. c. 149, §§148-150C, or otherwise; and 

 

	 	•	 	 for damages or other remedies of any sort, including, without limitation, compensatory damages, punitive damages,
injunctive relief and attorney’s fees; 

 provided, however, this release shall not release your rights (i) under
this Transition Agreement, (ii) under the Consulting Agreement, (iii) for workers’ compensation benefits or for unemployment benefits to the extent you are otherwise eligible for such benefits, (iv) to indemnification or
insurance as a current or former officer or employee, to the extent you are otherwise eligible for such benefits and consistent with other current or former officers and employees, (v) to benefits under any Company employee benefit plan in
which you are a participant or (vi) under your stock options or as a stockholder of the Company.  
 6.    Protected
Disclosures and Other Protected Actions 
 Nothing contained in this Agreement limits your ability to file a charge or complaint with any federal, state
or local governmental agency or commission (a “Government Agency”). In addition, nothing contained in this Agreement limits your ability to communicate with any Government Agency or otherwise participate in any investigation or
proceeding that may be conducted by any Government Agency, nor does anything contained in this Agreement apply to truthful testimony in litigation. If you file any charge or complaint with any Government Agency and if the Government Agency pursues
any claim on your behalf, or if any other third party pursues any claim on your behalf, you waive any right to monetary or other individualized relief (either individually or as part of any collective or class action). 

7.    Other Provisions 

(a)    Termination and Return of Payments; Certain Remedies. If you breach any of your obligations under this Transition Agreement,
in addition to any other legal or equitable remedies it may have for such breach, the Company shall have the right to terminate its non-wage payments to you or for your benefit under this Transition Agreement.
The termination of such payments in the event of your breach will not affect your continuing obligations under this Transition Agreement. Without limiting the Company’s remedies hereunder, if the Company prevails in any action to enforce this
Transition Agreement, then you shall be liable to the Company for reasonable attorneys’ fees and costs incurred by the Company in connection with such action. 

(b)    Enforceability; Taxes. If any portion or provision of this Transition Agreement (including, without limitation, any portion
or provision of any section of this Transition 

  
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Agreement) shall to any extent be declared illegal or unenforceable by a court of competent jurisdiction, then the remainder of this Transition Agreement, or the application of such portion or
provision in circumstances other than those as to which it is so declared illegal or unenforceable, shall not be affected thereby, and each portion and provision of this Transition Agreement shall be valid and enforceable to the fullest extent
permitted by law. All compensation and benefits provided or referred to hereunder shall be subject to taxes as required by applicable law. 

(c)    Waiver; Absence of Reliance. No waiver of any provision of this Transition Agreement shall be effective unless made in
writing and signed by the waiving party. The failure of a party to require the performance of any term or obligation of this Transition Agreement, or the waiver by a party of any breach of this Transition Agreement, shall not prevent any subsequent
enforcement of such term or obligation or be deemed a waiver of any subsequent breach. In signing this Transition Agreement, you are not relying upon any promises or representations made by anyone at or on behalf of the Company. 

(d)    Jurisdiction; Governing Law; Interpretation. You and the Company hereby agree that the state and federal courts of
Massachusetts located in Boston shall have the exclusive jurisdiction to consider any matters related to this Transition Agreement, including without limitation any claim of a violation of this Transition Agreement. With respect to any such court
action, you submit to the jurisdiction of such courts and you acknowledge that venue in such courts is proper. This Transition Agreement shall be interpreted and enforced under the laws of Massachusetts, without regard to conflict of law principles.

 (e)    Entire Agreement. This Transition Agreement constitutes the entire agreement between you and the Company and supersedes
any previous agreements or understandings between you and the Company, including the Employment Agreement, except the Restrictive Covenants Agreement (as modified herein), the Equity Documents, any other confidentiality, restrictive covenants or
invention assignment agreement or obligation you have to or with the Company and any other obligations specifically preserved in this Transition Agreement shall all remain in full force and effect. 

(f)    Time for Consideration; Effective Date. 

You acknowledge that you have been given the opportunity to consider this Transition Agreement for twenty-one
(21) days before signing it (the “Consideration Period”) and that you have knowingly and voluntarily entered into this Transition Agreement. You acknowledge that the above release of claims expressly includes without limitation
claims under the Age Discrimination in Employment Act. You are advised to consult with an attorney before signing this Transition Agreement. To accept this Transition Agreement, you must return a signed original or a signed PDF copy of this
Transition Agreement so that it is received by the undersigned at or before the expiration of the Consideration Period. If you sign this Transition Agreement before the end of the Consideration Period, you acknowledge by signing this Transition
Agreement that such decision was entirely voluntary and that you had the opportunity to consider this Transition Agreement for the entire Consideration Period. For the period of seven (7) business days from the date when you sign this
Transition Agreement (the “Revocation Period”), you have the right to revoke this Transition Agreement by written notice to the 

  
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undersigned. For such a revocation to be effective, it must be delivered so that it is received by the undersigned at or before the expiration of the Revocation Period. This Transition Agreement
shall not become effective or enforceable during the Revocation Period. It will become effective on the day after the Revocation Period ends (the “Effective Date”). 

[signature page follows] 

  
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	 Sincerely,
	 		 	
			
	 VIGIL NEUROSCIENCES, INC.
	 		 	
				
	By:	 	/s/ Ivana Magovcevic-Liebisch	 		 	11/17/2021
	Name:	 	Ivana Magovcevic-Liebisch	 		 	Date
	Title:	 	CEO	 		 	

 You are advised to consult with an attorney before signing this Transition Agreement. This is a legal document. Your
signature will commit you to its terms. By signing below, you acknowledge that you have carefully read and fully understand all of the provisions of this Transition Agreement and that you are knowingly and voluntarily entering into this Transition
Agreement. 
  

					
	/s/Richard A. Fisher	 		 	11/17/2021
	 RICHARD A. FISHER
	 		 	 Date

  
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