Document:

Exhibit 10.1

 

EXECUTIVE
EMPLOYMENT AGREEMENT

 

This Executive Employment
Agreement (the “Agreement”) is entered into as of October 30, 2015 (the “Effective Date”) by and between
Edge Therapeutics, Inc., a Delaware corporation (the “Company”), and W. Bradford Middlekauff (“Executive”).

 

W I T N E S S E T H :

 

NOW, THEREFORE, in
consideration of the promises and mutual covenants contained herein and for other good and valuable consideration, the receipt
and sufficiency of which are mutually acknowledged, the Company and Executive hereby agree as follows:

 

Section 1.           Definitions.

 

(a)           “Accrued
Obligations” shall mean (i) all accrued but unpaid Base Salary through the Date of Termination, (ii) any unpaid or unreimbursed
business expenses incurred in accordance with Section 6 hereof, (iii) any accrued but unused vacation time through the Date of
Termination, (iv) any earned but unpaid annual bonus with respect to the year immediately preceding the year in which the Date
of Termination occurs and (v) all vested benefits (including, if applicable, equity awards) in accordance with the terms of the
governing documents.

 

(b)           “Base
Salary” shall mean the salary provided for in Section 4(a) hereof, as adjusted from time to time.

 

(c)           “Board”
shall mean the Board of Directors of the Company.

 

(d)           “Confidentiality
Agreement” or “Confidentiality and Invention Assignment Agreement” shall mean the Company’s
standard Executive Confidentiality and Invention Assignment Agreement, attached hereto as Exhibit A, to be executed by Executive
as a condition to employment.

 

(e)           “Cause”
shall mean (i) Executive’s failure, neglect, or refusal to perform in any material respect Executive’s duties and responsibilities
under this Agreement (in each case, except where due to a Disability, sickness or illness); (ii) any act of Executive that has,
or could reasonably be expected to have, the effect of injuring the business of the Company or its subsidiaries in any material
respect; (iii) Executive’s conviction of, or plea of guilty or no contest to: (x) a felony or (y) any other criminal charge
that has, or could be reasonably expected to have, an adverse impact on the performance of Executive’s duties to the Company
or otherwise result in material injury to the reputation or business of the Company or any of its subsidiaries; (iv) Executive’s
commission of an act of fraud or embezzlement against the Company or any of its Subsidiaries; (v) any material violation by Executive
of the policies of the Company, including but not limited to those relating to sexual harassment or business conduct, and those
otherwise set forth in the manuals or statements of policy of the Company, as may be amended from time to time; (vi) Executive’s
material violation of federal or state securities laws; or (vii) Executive’s material breach of this Agreement or material
breach of the Confidentiality and Invention Assignment Agreement.

    	

    	 

    

(f)           “Code”
shall mean the Internal Revenue Code of 1986, as amended, and the rules and regulations promulgated thereunder.

 

(g)           “Date
of Termination” shall mean the date on which Executive’s employment terminates.

 

(h)           “Disability”
shall mean any physical or mental disability or infirmity of Executive that prevents Executive from performing his duties with
or without a reasonable accommodation for a period of (i) ninety (90) consecutive days or (ii) one hundred twenty (120) non-consecutive
days during any twelve (12) month period. Any question as to the existence, extent, or potentiality of Executive’s Disability
upon which Executive and the Company cannot agree shall be determined by a qualified, independent physician selected by the Company
and approved by Executive (which approval shall not be unreasonably withheld). The determination of any such physician shall be
final and conclusive for all purposes of this Agreement. Executive understands that he is a “key employee” in connection
with any leave qualifying for coverage under the Family and Medical Leave Act (“FMLA”).

 

(i)           
“Good Reason” shall mean, without Executive’s written consent, (i) a material diminution in Executive’s
title, duties, or responsibilities as set forth in Section 3 hereof; (ii) a material reduction in Base Salary as set forth in Section
4(a) hereof (other than pursuant to a reduction applicable to all similarly situated executives); (iii) any material breach of
this Agreement by the Company (other than a provision that is covered by clause (i) or (ii)) or
(iv) the Company’s requiring Executive to be primarily based at any office or location outside of a twenty-five (25) mile
radius of its location as of the Effective Date (provided that such relocation materially increases Executive’s commute),
except for travel reasonably required in the performance of Executive’s responsibilities. Notwithstanding the foregoing,
in the event that the Company reasonably believes that Executive may have engaged in conduct that could constitute Cause hereunder,
the Company may, in its sole and absolute discretion, suspend Executive’s duties or employment, and in no event shall any
such suspension constitute an event pursuant to which Executive may terminate employment with Good Reason or otherwise constitute
a breach of this Agreement by the Company; provided, that no such suspension shall alter the Company’s obligations
under this Agreement during such period of suspension.

 

(j)           “Release
of Claims” shall mean a separation agreement in a form acceptable to the Company under which Executive releases the Company
and certain other persons and entities from any and all claims and causes of action and the execution of which is a condition precedent
to Executive’s eligibility for the payments and benefits described in Sections 7(d), 7(e) and 10.

 

(k)           “Severance
Benefits” shall mean continued payment of Base Salary during the Severance Term, in accordance with the Company’s
regular payroll practices.

 

(l)           “Severance
Term” shall mean the twelve (12) month period, which commences on the first pay day that is at least thirty-five (35)
days after the Date of Termination following termination of Executive’s employment by the Company without Cause or by Executive
for Good Reason.

 

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Section 2.           Acceptance
and Term.

 

The Company agrees
to employ Executive on an at-will basis, and Executive agrees to accept such employment and serve the Company, in accordance with
the terms and conditions set forth herein. The term of employment (referred to herein as the “Term”) shall commence
on the Effective Date and shall continue until terminated by either party at any time, subject to the provisions herein.

 

Section 3.           Position,
Duties, and Responsibilities; Place of Performance.

 

(a)           Position,
Duties and Responsibilities. During the Term, Executive shall be engaged to serve as the Senior Vice President, General Counsel
and Secretary of the Company (together with such other position or positions consistent with Executive’s title or as the
Company shall specify from time to time) and shall have such duties and responsibilities commensurate therewith, including being
the senior executive responsible for oversight and management of all legal matters of the Company and serving as corporate secretary
of the Company, and such other duties as may be assigned and/or prescribed from time to time by Executive’s supervisor and/or
the Board. The Executive shall report to the President and Chief Executive Officer of the Company. Executive will perform business
and professional services consistent with his job title and position within the Company and as reasonably assigned to Executive
by the Company’s President and Chief Executive Officer.

 

(b)           Performance.
Executive shall devote his full business time, attention, skill, and best efforts to the performance of his duties under this Agreement
and shall not engage in any other business or occupation during the Term, including, without limitation, any activity that (x)
conflicts with the interests of the Company, (y) interferes with the proper and efficient performance of Executive’s duties
for the Company, or (z) interferes with Executive’s exercise of judgment in the Company’s best interests. Notwithstanding
the foregoing, nothing herein shall preclude Executive from (i) serving, with the prior written consent of the Board, as a member
of the boards of directors or advisory boards (or their equivalents in the case of a non-corporate entity) of non-competing businesses
and charitable organizations, (ii) engaging in charitable activities and community affairs, and (iii) managing Executive’s
personal investments and affairs; provided, however, that the activities set out in clauses (i), (ii), and (iii) shall be
limited by Executive so as not to interfere, individually or in the aggregate, with the performance of Executive’s duties
and responsibilities hereunder. Executive represents that, attached hereto as Exhibit B, is a comprehensive list of all
outside professional activities with which he is currently involved or reasonably expects to become involved. Company hereby acknowledges
that Executive’s participation in the foregoing activities at the participation levels as of the Effective Date is permitted
under this paragraph, provided that the same do not interfere, individually or in the aggregate, with the performance of Executive’s
duties and responsibilities hereunder. In the event that, during his employment by the Company, the Executive desires to engage
in other non-competitive outside professional activities, not included on such list, Executive will first seek written approval
from the President and Chief Executive Officer and such approval shall not be unreasonably withheld.

 

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Section 4.           Compensation.

 

(a)           Base
Salary. During the Term, in exchange for Executive’s satisfactory performance of his duties and responsibilities Executive
will initially be paid a Base Salary at the rate of $305,000 per annum, payable in accordance with the Company’s regular
salary payment schedule and subject to applicable taxes and withholdings. The Base Salary of the Executive for subsequent years
of this Agreement may be increased, decreased, or may stay the same, depending on the Executive’s performance and the performance
of the Company.

 

(b)           Annual
Bonus. In addition to Executive’s Base Salary, during the Term, Executive will be eligible to earn an annual discretionary
performance-based bonus, with a target bonus opportunity equal to 35% of the Base Salary. Performance metrics with respect to said
bonus will be determined by the Board or the compensation committee of the Board. Executive shall be eligible for said bonus only
if Executive is employed on the last day of the performance period. Any earned annual bonus will be paid by March 15th
of the year following the year in which the applicable performance period ends. Executive will not be entitled to a bonus under
this Section 4(b) with respect to the year 2015.

 

(c)           Equity
Awards Generally. During the Term, Executive shall be eligible to be granted equity awards by the Company, as determined by
the Board or the compensation committee of the Board. To the extent that the following would not result in a violation of Code
Section 409A, upon the consummation of a Change of Control (as defined below), provided that the Date of Termination has not occurred
earlier, Executive shall be entitled to immediate and full accelerated vesting of all equity awards granted to Executive by the
Company that are outstanding immediately prior to such Change of Control, without regard to the vesting schedule set forth in any
applicable plan or arrangement governing such equity awards (provided that any equity awards that are subject to the satisfaction
of performance goals shall be deemed earned at not less than target performance).

 

Section 5.           Executive
Benefits.

 

During the Term, Executive
shall be offered participation in health insurance and other benefits provided generally to similarly situated executives of the
Company, subject to the terms, conditions and eligibility requirements of the applicable benefit plans (which shall govern). Executive
shall be eligible for the same number of holidays and vacation days as well as any other benefits, except those excluded herein,
in each case, as are generally allowed to similarly situated executives of the Company in accordance with the Company policy as
in effect from time to time. Nothing contained herein shall be construed to limit the Company’s ability to amend, suspend,
or terminate any benefit plan or policy at any time without providing Executive notice, and the right to do so is expressly reserved.

 

Section 6.           Reimbursement
of Business Expenses.

 

During the Term, the
Company shall reimburse Executive for documented, out-of-pocket business expenses reasonably incurred by Executive in the course
of performing Executive’s duties and responsibilities hereunder, which are consistent with the Company’s policies in
effect from time to time with respect to business expenses, and subject to the Company’s requirements with respect to reporting
of such expenses.

 

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Section 7.           Termination
of Employment.

 

(a)           General.
Executive’s employment with the Company shall terminate upon the earliest to occur of: (i) Executive’s death, (ii)
a termination by reason of a Disability, (iii) a termination by the Company with or without Cause, or (iv) a termination by Executive
with or without Good Reason. Notwithstanding anything herein to the contrary, the payment (or commencement of a series of payments)
hereunder of any nonqualified deferred compensation (within the meaning of Section 409A of the Code) upon a termination of employment
shall be delayed until such time as Executive has also undergone a “separation from service” as defined in Treas. Reg.
1.409A-1(h), at which time such nonqualified deferred compensation (calculated as of the date of Executive’s termination
of employment hereunder) shall be paid (or commence to be paid) to Executive on the schedule set forth in this provision as if
Executive had undergone such termination of employment (under the same circumstances) on the date of Executive’s ultimate
“separation from service.”

 

(b)           Termination
Due to Death or Disability. Executive’s employment under this Agreement shall terminate automatically upon Executive’s
death. Executive’s employment may be terminated by the Company, in its sole discretion, upon the occurrence of a Disability,
with such termination to be effective upon Executive’s receipt of written notice of such termination. In the event of Executive’s
termination as a result of his death or Disability, Executive or Executive’s estate or beneficiaries, as the case may be,
shall be entitled only to the Accrued Obligations, and Executive shall have no further rights to or interest in any compensation
or any other benefits under this Agreement.

 

(c)           Termination
by the Company with Cause.

 

(i)           The
Company may terminate Executive’s employment at any time with Cause, effective upon Executive’s receipt of written
notice of such termination; provided, however, that with respect to any Cause termination relying on clause (i), (ii), (v) or (vii)
of the definition of Cause set forth in Section 1(e) hereof, to the extent that such act or acts or failure or failures to act
are curable, Executive shall be given ten (10) days’ written notice by the Company of its intention to terminate him with
Cause, such notice to state the act or acts or failure or failures to act that constitute the grounds on which the proposed termination
with Cause is based, and such termination shall be effective at the expiration of such ten (10) day notice period unless Executive
has fully cured such act or acts or failure or failures to act, to the Company’s complete satisfaction.

 

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(ii)         In
the event that the Company terminates Executive’s employment with Cause, Executive shall be entitled only to the Accrued
Obligations (disregarding, for this purpose, clauses (iii) and (iv) of Section 1(a)). Following such termination of Executive’s
employment with Cause, except as set forth in this Section 7(c)(ii), Executive shall have no further rights to or interest in any
compensation or any other benefits under this Agreement. For the avoidance of doubt, Executive’s sole and exclusive remedy
upon a termination of employment by the Company with Cause shall be receipt of the Accrued Obligations (disregarding, for this
purpose, clauses (iii) and (iv) of Section 1(a)).

 

(iii)         If
Executive is terminated for Cause, he shall not be entitled to compensation for any accrued, but unused vacation days.

 

(d)           Termination
by the Company without Cause. The Company may terminate Executive’s employment at any time without Cause, given 60 days’
notice (or pay in lieu thereof). In the event that, during the Term, Executive’s employment is terminated by the Company
without Cause (other than due to death or Disability), he shall be eligible for the Accrued Obligations and, provided that he fully
executes (and does not revoke) the Release of Claims as described in Section 7(g), Executive shall also be eligible for (i) Severance
Benefits and (ii) reimbursement for his (and his eligible dependents’) health care continuation (COBRA) premiums for 12 months
following such termination (provided that (A) such COBRA benefits shall not be provided beyond the date on which Executive obtains
comparable coverage from a subsequent employer and (B) such benefits shall not be provided to the extent that the Company determines
that it would result in any fine, penalty or tax on the Company or its subsidiaries for being a discriminatory benefit) (the “COBRA
Benefits”). Notwithstanding the foregoing, the Severance Benefits and the COBRA Benefits shall immediately terminate,
and the Company shall have no further obligations to Executive with respect thereto, and any Severance Benefits and COBRA Benefits
that were provided will be reimbursed or repaid promptly by Executive to the Company, in the event that Executive breaches any
provision of the Confidentiality and Invention Assignment Agreement or the Release of Claims. Any such termination, reimbursement
or repayment of Severance Benefits or COBRA Benefits shall have no effect on the Release of Claims or any of Executive’s
post-employment obligations to the Company. Following termination of Executive’s employment by the Company without Cause,
except as set forth in this Section 7(d) or Section 10, Executive shall have no further rights to any compensation or any other
benefits under this Agreement. For the avoidance of doubt, except as provided in Section 10, Executive’s sole and exclusive
remedy upon a termination of employment by the Company without Cause shall be receipt of the Severance Benefits and the COBRA Benefits,
subject to his execution and non-revocation of the Release of Claims, and the Accrued Obligations.

 

(e)           Termination
by Executive with Good Reason. Executive may terminate his employment with Good Reason by providing the Company ninety (90)
days’ written notice setting forth in reasonable specificity the event that constitutes Good Reason, which written notice,
to be effective, must be provided to the Company within thirty (30) days after the occurrence of such event. During such ninety
(90) day notice period, the Company shall have a cure right (if curable), and if not cured within such period, Executive’s
termination will be effective upon the expiration of such cure period, and in the event of such termination during the Term, except
as provided in Section 10, Executive shall be entitled to the same payments and benefits as provided in Section 7(d) hereof for
a termination by the Company without Cause, subject to the same conditions on payment and benefits (and forfeiture and repayment)
as described in Section 7(d) hereof. Following such termination of Executive’s employment by Executive with Good Reason,
except as set forth in this Section 7(e) or Section 10, Executive shall have no further rights to any compensation or any other
benefits under this Agreement. For the avoidance of doubt, except as provided in Section 10, Executive’s sole and exclusive
remedy upon a termination of employment with Good Reason shall be receipt of the Severance Benefits and the COBRA Benefits, subject
to his execution and non-revocation of the Release of Claims, and the Accrued Obligations.

 

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(f)           Termination
by Executive without Good Reason. Executive may terminate his employment without Good Reason by providing the Company ninety
(90) days’ written notice of such termination. In the event of a termination of employment by Executive under this Section
7(f), Executive shall be entitled only to the Accrued Obligations (disregarding, for this purpose, clauses (iii) and (iv) of Section
1(a)). In the event of a termination of Executive’s employment under this Section 7(f), the Company may, in its sole and
absolute discretion, by written notice, accelerate the Date of Termination without changing the characterization of such termination
as a termination by Executive without Good Reason (and no severance pay, notice pay or pay in lieu of notice or similar pay shall
be owed to Executive). Following such termination of Executive’s employment by Executive without Good Reason, Executive shall
have no further rights to or interest in any compensation or any other benefits under this Agreement. If Executive terminates his
employment without Good Reason, he shall not be entitled to compensation for any accrued, but unused vacation days. For the avoidance
of doubt, Executive’s sole and exclusive remedy upon a termination of employment by Executive without Good Reason shall be
receipt of the Accrued Obligations (disregarding, for this purpose, clauses (iii) and (iv) of Section 1(a)).

 

(g)           Release
of Claims. Notwithstanding any provision herein to the contrary, the provision of severance benefits pursuant to subsection
(d) or (e) of this Section 7 or Section 10 (other than the Accrued Obligations) shall be conditioned upon Executive’s execution,
delivery to the Company, and non-revocation of the Release of Claims (and the expiration of any revocation period contained in
such Release of Claims), such that the Release of Claims becomes effective, with all revocation periods having expired unexercised,
within sixty (60) days after the Date of Termination. If Executive fails to execute the Release of Claims in such a timely manner,
or timely revokes Executive’s execution of the Release of Claims following its execution, Executive shall not be entitled
to any of the severance benefits under Sections 7(d), 7(e) or 10 (other than the Accrued Obligations). Notwithstanding the foregoing,
if such sixty (60) day period ends in a calendar year after the calendar year in which Executive’s employment terminates,
then, to the extent required by Section 409A of the Code, any payment of any amount or provision of any benefit under Sections
7(d), 7(e) or 10 or otherwise that would have been made during the calendar year in which Executive’s employment terminates
shall instead be withheld and paid on the first payroll date in the calendar year after the calendar year in which Executive’s
employment terminates, after which any remaining severance benefits shall thereafter be provided to Executive according to the
applicable schedule set forth herein as if no such delay had occurred.

 

Section 8.           Confidentiality
Agreement; Cooperation.

 

(a)           Confidentiality
Agreement. Executive has entered into the Confidentiality and Invention Assignment Agreement. The terms and conditions of the
Confidentiality Agreement are incorporated herein by reference and the obligations and responsibilities set forth therein shall
survive the termination of Executive’s employment regardless of the reason for the termination. The Confidentiality and Invention
Assignment Agreement supersedes, in its entirety, the Confidentiality Agreement between Executive and the Company dated October
9, 2015.

 

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(b)           Litigation
and Regulatory Cooperation. During and after Executive’s employment, Executive shall cooperate fully with the Company
in the defense or prosecution of any claims or actions now in existence or which may be brought in the future against or on behalf
of the Company or any of its subsidiaries which relate to events or occurrences that transpired while the Company employed Executive,
provided that the Executive will not have an obligation under this paragraph with respect to any claim in which the Executive
has filed directly against the Company or related persons or entities or the Company has filed directly against Executive. The
Executive’s full cooperation in connection with such claims or actions shall include, but not be limited to, being available
to meet with counsel to prepare for discovery or trial and to act as a witness on behalf of the Company or any of its subsidiaries
at mutually convenient times. During and after Executive’s employment, Executive also shall cooperate fully with the Company
and its subsidiaries in connection with any investigation or review of any federal, state or local regulatory authority as any
such investigation or review relates to events or occurrences that transpired while Executive was employed by the Company, provided
that Executive will not have any obligation under this paragraph with respect to any claim in which Executive has filed directly
against the Company or related persons or entities or the Company has filed directly against Executive. The Company shall reimburse
Executive for any reasonable out-of-pocket expenses incurred in connection with Executive’s performance of obligations pursuant
to this Section 8(b).

 

Section 9.           Intentionally
Omitted.

 

Section 10.         Termination
In Connection With or Following a Change of Control.

 

In the event that,
during the Term, either (x) the Company terminates Executive’s employment with the Company other than for Cause (but not
due to death or Disability) (a) within the sixty (60) day period prior to a Change of Control, or (b) within the twelve (12) month
period after a Change of Control or (y) Executive terminates his employment with the Company for Good Reason within twelve (12)
months after a Change of Control (and pursuant to the notice and cure periods set forth in Section 7(e)), then the Executive shall
receive (i) the Severance Benefits and (ii) the COBRA Benefits, and, to the extent the following will not result in a violation
of Code Section 409A, shall also be entitled to immediate and full accelerated vesting of all equity awards received by Executive
from the Company or its parents that are outstanding as of the effective date of such termination without regard for the vesting
schedule set forth in the terms of any applicable plan or arrangement governing such equity awards (provided that any equity awards
that are subject to the satisfaction of performance goals shall be deemed earned at not less than target performance). Notwithstanding
anything herein to the contrary, the receipt of any severance pay or benefits or acceleration of vesting pursuant to this Section
10 will be subject to Executive signing and not revoking the Release of Claims in accordance with Section 7(g). No severance pursuant
to this Section 10 will be paid or provided unless and until the Release of Claims becomes effective and the revocation period
has expired, and Executive has not exercised his revocation, in accordance with Section 7(g). The receipt of any severance pay
and benefits pursuant to this Section 10 will also be subject to Executive not violating the Confidentiality and Invention Assignment
Agreement, returning all Company property, and complying with the Release of Claims. In the event of Executive’s breach of
the Confidentiality and Invention Assignment Agreement or the Release of Claims, all remaining severance payments and benefits
will immediately cease and all severance payments and benefits that were made will be reimbursed and repaid promptly by Executive
to the Company. In the event that Executive becomes entitled to any payments or benefits under this Section 10, Executive shall
not receive any payments or benefits under Section 7. In addition, upon a termination described in this Section 10, Executive shall
be entitled to receive the Accrued Obligations.

 

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Section 11.           Change
of Control. For purposes of this Agreement, a “Change of Control” occurs when:

 

(i)          any
“person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) becomes
the “beneficial owner” (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of the Company
representing 50% or more of the total voting power represented by the Company’s then outstanding voting securities; provided,
however; that sales of equity or debt securities to investors primarily for capital-raising purposes shall in no event be deemed
a Change of Control;

 

(ii)         the
date of the consummation of a merger or consolidation of the Company with any other corporation or business entity that has been
approved by the stockholders of the Company, other than a merger or consolidation which would result in the holders of voting securities
of the Company outstanding immediately prior thereto continuing to hold, directly or indirectly, more than fifty percent (50%)
of the total voting power represented by the voting securities of the Company or such surviving entity outstanding immediately
after such merger or consolidation;

 

(iii)        the
stockholders of the Company approve a plan of complete liquidation of the Company; or

 

(iv)        there
is a consummation of the sale or disposition by the Company of all or substantially all of the Company’s assets.

 

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Section 12.           Section
409A. This Agreement is intended to comply with, or be exempt from, Code Section 409A (to the extent applicable) and the parties
hereto agree to interpret this Agreement in the least restrictive manner consistent therewith. Without limiting the generality
of the foregoing, severance pay pursuant to Sections 7(d) or (e) or Section 10 constitute separate payments for purposes of Section
1.409A-2(b)(2) of the Treasury Regulations and thus, to the extent of payments made from the date of termination of Executive’s
employment through March 15 of the calendar year following such termination, such payments are intended to constitute “short-term
deferral” under Section 1.409A-1(b)(4) of the Treasury Regulations. To the extent that severance payments or benefits are
made following said March 15, they are intended to be payable upon an “involuntary separation from service” pursuant
to Section 1.409A-1(b)(9)(iii) of the Treasury Regulations, to the maximum extent permitted by said provision. Notwithstanding
any other provisions of this Agreement to the contrary, if Executive is a “specified employee” within the meaning
of Code Section 409A and the regulations issued thereunder, and a payment or benefit provided for in this Agreement or otherwise
would be subject to additional tax under Code Section 409A if such payment or benefit is paid within six (6) months after Executive’s
“separation from service” (within the meaning of Code Section 409A), then such payment or benefit shall not be paid
(or commence) during the six-month period immediately following Executive’s separation from service except as provided in
the immediately following sentence. In such an event, any payments or benefits that would otherwise have been made or provided
during such six-month period and which would have incurred such additional tax under Code Section 409A shall instead be paid to
Executive in a lump-sum cash payment on the earlier of (i) the first regular payroll date of the seventh month following Executive’s
separation from service or (ii) the 10th business day following Executive’s death (but not earlier than such payments otherwise
would have been made). In addition, no reimbursement or in-kind benefit shall be subject to liquidation or exchange for another
benefit and the amount available for reimbursement, or in-kind benefits provided, during any calendar year shall not affect the
amount available for reimbursement, or in-kind benefits to be provided, in a subsequent calendar year. Any reimbursement to which
Executive is entitled hereunder shall be made no later than the last day of the calendar year following the calendar year in which
such expenses were incurred. Notwithstanding anything herein to the contrary, neither the Company nor any of its affiliates shall
have any liability to Executive or to any other person or entity if the payments and benefits provided in this Agreement that
are intended to be exempt from or compliant with Code Section 409A are not so exempt or compliant.

 

Section 13.           Parachute
Payment. In the event that (i) Executive becomes entitled to any payments or benefits hereunder or otherwise from the Company
or any of its affiliates which constitute a “parachute payment” as defined in Code Section 280G (the “Total
Payments”) and (ii) Executive is subject to an excise tax imposed under Code Section 4999 (the “Excise Tax”),
then, if it would be economically advantageous for Executive, the Total Payments shall be reduced by an amount (including zero)
that results in the receipt by Executive on an after tax basis (including the applicable federal, state and local income taxes,
and the Excise Tax) of the greatest Total Payments, notwithstanding that some or all of the portion of the Total Payments may
be subject to the Excise Tax. Any such reduction in payments and benefits shall be applied first against the latest scheduled
cash payments; then current cash payments; then any equity or equity derivatives that are included under Code Section 280G at
full value rather than accelerated value with the highest value reduced first; then other non-cash or non-equity based benefits
will be reduced (in the order of latest scheduled payments and benefits to earliest scheduled payments); and finally, any equity
or equity derivatives included under Code Section 280G at an accelerated value (and not at full value) shall be reduced with the
highest value reduced first (as such values are determined under Treasury Regulation Section 1.280G-1, Q&A 24). All calculations
hereunder shall be performed by a nationally recognized independent accounting firm selected by the Company, with the full cost
of such firm being borne by the Company. Any determinations made by such firm shall be final and binding on Executive and the
Company.

 

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Section 14.           Clawback.
Notwithstanding anything herein to the contrary, any equity-based or incentive compensation provided to Executive, including any
bonuses or equity awards provided pursuant to Sections 4(b) or 4(c) of this Agreement, shall be subject to any “clawback”
required by law or by any national securities exchange on which the Company’s securities are listed, or to any clawback
or recoupment policy otherwise adopted by the Company from time to time. For the avoidance of doubt, notwithstanding anything
herein to the contrary, in no event shall any reduction in the amount of compensation ultimately provided to or retained by Executive
on account of this Section 14 constitute an event pursuant to which Executive may terminate employment for Good Reason or otherwise
constitute a breach of this Agreement by the Company.

 

Section 15.           No
Conflict with Existing Obligations. Executive represents that his performance of all the terms of this Agreement and his duties
as an executive of the Company do not and will not breach any agreement or obligation of any kind made prior to Executive’s
employment by the Company, including agreements or obligations Executive may have with prior employers or entities for which Executive
has provided services. Executive has not entered into, and Executive agrees that Executive will not enter into, any agreement
or obligation, either written or oral, in conflict herewith.

 

Section 16.           Assignment.
This Agreement for personal services shall not be assigned by Executive. This Agreement will be binding upon and inure to the
benefit of any successor of the Company. Any such successor of the Company will be deemed substituted for the Company under the
terms of this Agreement for all purposes. For this purpose, “successor” means any person, firm, corporation or other
business entity which at any time, whether by purchase, merger or otherwise, directly or indirectly acquires all or substantially
all of the assets or business of the Company.

 

Section 17.           Arbitration;
WAIVER OF JURY TRIAL. In consideration of Executive’s employment with the Company, the Company and Executive agree that
any and all controversies, claims, or disputes with anyone (including the Company, Executive and any executive, officer, director,
shareholder or benefit plan of the Company in their capacity as such or otherwise) arising out of, relating to, or resulting from
Executive’s employment with the Company or the termination of Executive’s employment with the Company, including any
relating to this Agreement, will be subject to binding arbitration. Disputes which Executive and Company hereby agree to arbitrate,
AND THEREBY AGREE TO WAIVE ANY RIGHT TO A TRIAL BY JURY, include, but are not limited to, any statutory claims under
state or federal law, including, but not limited to, claims under Title VII of the Civil Rights Act of 1964, the Americans with
Disabilities Act of 1990, the Age Discrimination in Employment Act of 1967, the Older Workers Benefit Protection Act, the Worker
Adjustment and Retraining Notification Act, the Family and Medical Leave Act, the New Jersey Law Against Discrimination, the New
Jersey Conscientious Executive Protection Act, the New Jersey Family Leave Act, and any other federal, state or local discrimination,
retaliation or wrongful termination claims or other statutory or common law claims. Executive further understands that this Agreement
to arbitrate also applies to any disputes that the Company may have with Executive. Executive and Company agree that any arbitration
will be administered by the American Arbitration Association (“AAA”) and that a single neutral arbitrator will be
selected in a manner consistent with its National Rules for the Resolution of Employment Disputes (the “Rules”). All
arbitration fees and costs shall be shared equally by the parties, but the parties shall be responsible for payment of their own
attorneys’ fees. Executive and Company agree that the arbitrator will administer and conduct any arbitration in a manner
consistent with the Rules. Notwithstanding the foregoing, nothing herein shall limit or alter the Company’s right to seek
injunctive or other equitable relief in any court of competent jurisdiction under (and as described in) the Confidentiality Agreement.

 

    	11

    	 

    

Section 18.           Voluntary
Nature of Agreement. Executive acknowledges and agrees that Executive is executing this Agreement voluntarily and without
any duress or undue influence by the Company or anyone else. Executive further acknowledges and agrees that Executive has carefully
read this Agreement and that Executive has asked any questions needed for Executive to understand the terms, consequences and
binding effect of this Agreement and fully understands it, including that Executive is WAIVING EXECUTIVE’S RIGHT TO
A JURY TRIAL. Finally, Executive agrees that Executive has been provided an opportunity to seek the advice of an attorney
of Executive’s choice before signing this Agreement.

 

Section 19.           Other.

 

(a)           Waiver
of Breach. The waiver by the Company of a breach by Executive of any provision of this Agreement or the Confidentiality and
Invention Assignment Agreement shall not operate or be construed as a waiver of the Company’s rights with respect to any
subsequent breach by the Executive.

 

(b)           Governing
Law and Forum. This Agreement shall be construed and administered in accordance with the laws of the State of New Jersey, exclusive
of its conflict of laws rules, and the parties hereto agree and stipulate that this Agreement shall be deemed to have been entered
into in the State of New Jersey, regardless of where it was negotiated, implemented and/or executed.

 

(c)           Severability.
In the event that any one or more of the provisions of this Agreement shall for any reason be held to be invalid, illegal, or unenforceable,
the remaining provisions of this Agreement shall be unimpaired, and shall continue in full force and effect.

 

(d)           Construction.
This Agreement shall be interpreted in accordance with its plain meaning, and the rule that ambiguities shall be construed against
the drafter of the document shall not apply in connection with the construction or interpretation hereof.

 

(e)           Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original, but all of which together
shall constitute one and the same instrument.

 

(f)           Entire
Agreement. This Agreement and the Confidentiality and Invention Assignment Agreement contain the entire agreement and understanding
of the parties with respect to the subject matter hereof, and supersede all prior or contemporaneous promises, understandings,
or agreements, whether written or oral (including, without limitation, the offer letter between the Company and Executive, dated
October 12, 2015) relating to the subject matter hereof. This Agreement may not be changed orally, but only by an agreement in
writing, signed by both parties.

 

    	12

    	 

    

(g)           Survivorship.
The provisions of Sections 1, 7(d), 7(e) and 7(g) and Sections 8 through 19 shall survive the termination of Executive’s
employment with the Company and this Agreement.

 

[Remainder of Page
Intentionally Left Blank] 

 

    	13

    	 

    

IN WITNESS WHEREOF,
each of the parties has executed this Agreement, in the case of the Company by its duly authorized officer, as of the day and year
first above written.

 

	 	EDGE THERAPEUTICS, INC.
	 	 
	 	 
	Date: 10/26/2015          	/s/ Brian A. Leuthner
	 	By:Brian A. Leuthner
	 	Title:President and Chief Executive Officer
	 	 
	 	 
	 	EXECUTIVE
	 	 
	 	 
	Date: 10/26/2015          	/s/ W. Bradford Middlekauff
	 	W. Bradford Middlekauff, Esq.

    	14

    	 

    

EXHIBIT A

 

Confidentiality and Invention Assignment
Agreement

 

    	15

    	 

    

EXHIBIT B 

 

Outside Activities

 

		1.	Board of Directors of ProteoDesign S.L.

		2.	Board of Trustees of State YMCA of Michigan

		3.	Advisory Board of YMCA Camp Hayo-Went-Ha

		4.	Executive Committee of Yale Law School

 

    	16Exhibit

EXHIBIT 10.18

CENTRUE FINANCIAL CORPORATION
2015 STOCK COMPENSATION PLAN
RESTRICTED STOCK AGREEMENT

Shares of Restricted Stock are hereby awarded effective November 4, 2015 (the “Grant Date”), by Centrue Financial Corporation (the “Company”) to ________ (the “Grantee”) in accordance with the following terms and conditions:

1.Share Award.  The Company hereby awards to the Grantee ____ shares (“Shares”) of common stock of the Company (“Common Stock”) pursuant to the Centrue Financial Corporation 2015 Stock Compensation Plan, as the same may be amended from time to time (the “Plan”), and upon the terms and conditions and subject to the restrictions in the Plan and as hereinafter set forth in this Restricted Stock Agreement (the “Agreement”).  A copy of the Plan, as currently in effect, has been provided to the Grantee and is incorporated herein by reference and is attached hereto.  

2.Restricted Stock Vesting and Holding Period.
  
a.The Grantee shall be immediately vested in the Shares subject to this Award. During the period commencing on the effective date of this Agreement and terminating on November 7, 2016 (the “Restricted Stock Holding Period”), and other than with respect to any Shares used to cover tax withholdings as expressly permitted under Section 14, the Grantee hereby irrevocably agrees not to, directly or indirectly, (i) sell, offer for sale, pledge or otherwise dispose of (except as otherwise provided herein) any of the Shares issued to the Grantee hereunder, or (ii) enter into any swap or other derivative transaction that transfers to another, in whole or in part, any of the economic benefits or risks of ownership of the Shares, whether any such transaction described in clauses (i) or (ii) above is to be settled by delivery of Common Stock or other securities, in cash or otherwise (such restrictions in clauses (i) and (ii), the “Sale Restrictions”).  Shares in which the Grantee has not become vested may not be sold, assigned, transferred, pledged, or otherwise encumbered by the Grantee, except in the event of the death of the Grantee or by will or the laws of descent and distribution.

b.One hundred percent (100%) of the Shares shall be released from, and no longer subject to, the Sale Restrictions on the first business day after the first anniversary of the Grant Date.  Notwithstanding the foregoing, one hundred percent (100%) of the Shares shall be released from, and no longer subject to, the Sale Restrictions immediately upon the Grantee’s death after the Grant Date or upon a Change in Control of the Company.

c.In all events, the holding and disposition of any shares of Common Stock acquired hereunder shall be subject to any limitation under Section 11 hereof, any applicable policies of the Company and the terms of applicable law.

d.The Committee referred to in Section 3 of the Plan shall have the authority, in its discretion, to accelerate the time at which any or all of the restrictions shall lapse with respect to any Shares or to remove any or all of such restrictions, whenever the Committee may determine that such action is appropriate by reason of changes in applicable tax or other laws, changes in circumstances occurring after the Grant Date, or for any other reason.
 
3.Execution of this Agreement.  This Agreement is contingent upon the Grantee’s execution and delivery of this Agreement and a tax withholding election, attached as Exhibit A, on or before the effective date of the Agreement and Grantee’s failure to execute and deliver any of these documents will result in the revocation of this Agreement and the award hereunder. 

4. Certificates for the Shares.  The Company shall issue certificate(s) for the Shares in book entry form in the name of the Grantee.  Such certificates shall bear the following legend:

“The transferability of this certificate and the shares of stock represented hereby are subject to the terms and conditions contained in the Centrue Financial Corporation 2015 Stock Compensation Plan.  Copies of the Plan are on file in the office of the Secretary of the Company, 122 W Madison St, Ottawa, IL 61350-5006.”
       
5.Grantee’s Rights.  Subject to all limitations provided in this Agreement, the Grantee shall have all the rights of a stockholder, including, but not limited to, the right to receive all dividends paid on the Shares and the right to vote such Shares, unless such Shares have been forfeited.

6.Expiration of Restricted Stock Holding Period.  Upon the expiration of the Restricted Stock Holding Period, the Company shall deliver to the Grantee (or in the case of a deceased Grantee, to his legal representative) the certificate in respect of such Shares, unless the Shares have been issued in book entry form.  In either case, at such time, the Shares shall be free of the restrictions referred to in Section 2 above, and such certificate shall not bear the legend provided for in Section 4 above. 

7.Effect of Change in Control.  In the event of a Change in Control of the Company, as defined in the Plan, Grantee shall, immediately following the effective date of the Change in Control, become fully vested in all Shares subject to this Agreement.  

8.Plan and Plan Interpretations as Controlling.  The Shares hereby awarded and the terms and conditions herein set forth are subject in all respects to the terms and conditions of the Plan, which are controlling.  Capitalized terms used herein which are not defined in this Agreement shall have the meaning ascribed to such terms in the Plan.  All determinations and interpretations made in the discretion of the Committee shall be binding and conclusive upon the Grantee or his legal representatives with regard to any questions arising hereunder or under the Plan.

9.Grantee Service.  Nothing in this Agreement shall limit the right of the Company or any of its Subsidiaries to terminate the Grantee’s employment (which is at-will employment), or otherwise impose upon the Company or any of its Subsidiaries any obligation to employ or accept the services of the Grantee.  Grantee is a terminable, at-will employee of the Company or one of its Subsidiaries. 

10.Withholding Tax.  Upon the Grant Date, the Grantee may pay cash to cover applicable withholding and employment taxes or the Company may withhold from any payment or distribution made under the Plan sufficient Shares to cover any applicable withholding and employment taxes, pursuant to the Grantee’s election as set forth in Exhibit A to this Agreement.  Any fraction of a share of Common Stock required to satisfy such tax obligations shall also be reduced. The Company shall have the right to deduct from all dividends paid with respect to Shares the amount of any taxes which the Company is required to withhold with respect to such dividend payments.

11.Securities Representations.  The grant of the Shares of Common Stock shall be subject to, and in compliance with, all applicable requirements of federal, state or foreign securities law.  No Shares may be issued hereunder if the issuance of such shares would constitute a violation of any applicable federal, state or foreign securities laws or other law or regulations or the requirements of any stock exchange or market system upon which such shares may then be listed.  As a condition to the issuance of Shares, the Company may require the Grantee to satisfy any qualifications that may be necessary or appropriate, to evidence compliance with any applicable law or regulation. The Shares are being issued by the Company to the Grantee under this Agreement in reliance upon the following express representations and warranties of the Grantee.  The Grantee acknowledges, represents and warrants that:

		
	a.
	He or she has been advised that he or she may be an “affiliate” within the meaning of Rule 144 under the Securities Act of 1933, as amended (the “Act”) and in this connection the Company is relying in part on his or her representations set forth in this Section.

		
	b.
	If he or she is deemed an affiliate within the meaning of Rule 144 of the Act, the Shares must be held indefinitely unless an exemption from any applicable resale restrictions is available or the Company files an additional registration statement (or a “re-offer prospectus”) with regard to such Shares and the Company is under no obligation to register the shares (or to file a “re-offer prospectus”).

		
	c.
	If he or she is deemed an affiliate within the meaning of Rule 144 of the Act, he or she understands that the exemption from registration under Rule 144 will not be available unless (i) a public trading market then exists for the Common Stock of the Company, (ii) adequate information concerning the Company is then available to the public, and (iii) other terms and conditions of Rule 144 or any exemption therefrom are complied with; and that any sales of the shares of Common Stock may be made only in limited amounts in accordance with such terms and conditions.

12.Amendment.  The Committee may waive any conditions of or rights of the Company or modify or amend the terms of this Agreement; provided, however, that the Committee may not amend, alter, suspend, discontinue or terminate any provision hereof which may adversely affect the Grantee without the Grantee’s (or his legal representative’s) written consent.

13.Grantee Acceptance.  The Grantee shall signify his acceptance of the terms and conditions of this Agreement by signing in the space provided below, including the attached withholding election, and by returning a signed copy hereof to the Company.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of ______________, 2015.

	
		
	 
	CENTRUE FINANCIAL CORPORATION

	 
	 

	By:
	 

	 
	 

	 
	President

	 
	 

	 
	ACCEPTED:

	 
	 

	 
	 

	 
	Grantee

EXHIBIT A

ELECTION REGARDING WITHHOLDING OF TAXES

The Shares awarded to Grantee pursuant to this Agreement are immediately vested and therefore, subject to income tax as of the Grant Date. Pursuant to the terms of the Plan, the Company may permit a Grantee to elect to have Shares of Common Stock subject to this Agreement withheld in satisfaction of the income and employment tax withholding requirements of applicable federal, state and local law. On or before November 4, 2015, Grantee shall elect one of the following two alternatives:

		
	☐
	I elect to pay all federal, state and local withholding taxes due as a result of the grant of Shares to me. My failure to remit such payment with this election shall constitute a revocation of this election and the Company shall withhold Shares necessary to pay all applicable tax withholding liability as determined by the Company.

		
	☐
	I elect to have the Company withhold from the Shares granted pursuant to this Agreement the number of Shares determined by the Company as necessary to pay all federal, state and local withholding taxes due as a result of the grant. I agree that after such withholding, the Company shall pay any fractional share remaining due to me in cash.

	
			
	Dated: November __, 2015
	 
	 

	 
	 
	 

	 
	 
	Grantee's Name

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