Document:

Exhibit 10.31

 

Orchestra
BioMed, Inc.

Employment Agreement

 

THIS EMPLOYMENT AGREEMENT
(this “Agreement”) is entered into as of May 31, 2018 (the “Effective Date”), by and between Orchestra
BioMed, Inc., a Delaware corporation (the “Company”), and Darren R. Sherman (“Executive”).

 

WHEREAS, the Company desires
to employ Executive, and Executive desires to be employed by the Company, upon the terms and subject to the conditions set forth herein.

 

NOW, THEREFORE, in consideration
of the employment of Executive by the Company and the mutual agreements hereinafter set forth, the parties hereto agree as follows:

 

1. Employment.
During the Employment Period (as defined below), the Company hereby agrees to employ Executive as President and Chief Operating Officer
of the Company, and Executive hereby accepts such employment and agrees to serve as President and Chief Operating Officer, all in accordance
with the terms and conditions of this Agreement. Executive hereby represents and warrants that neither Executive’s entry into this
Agreement nor Executive’s performance of Executive’s obligations hereunder will conflict with or result in a breach of the
terms, conditions or provisions of any other agreement or obligation of any nature to which Executive is a party or by which Executive
is bound, including, without limitation, any non-competition agreement, non-solicitation agreement or confidentiality agreement or policy
entered into by Executive or to which Executive is subject.

 

2. Term
of Employment. The term of Executive’s employment under this Agreement will commence on the Effective Date and will continue
until terminated in accordance with Section 8 hereof (such term, the “Employment Period”).

 

3. Position
and Responsibilities. During the Employment Period: (a) Executive shall serve in the position of President and Chief Operating Officer;
(b) Executive shall have the duties, responsibilities, functions and authority, including administrative, financial, executive and managerial,
as shall be designated by the Company’s board of directors (the “Board”) from time to time; (c) Executive will
use his best efforts to promote the interests, prospects, condition (financial and otherwise) and welfare of the Company and shall perform
his duties and responsibilities to the best of his ability in a diligent, trustworthy, businesslike and efficient manner; and (d) Executive
shall comply at all times with all policies and codes of conduct of the Company, as such policies and codes may change from time to time.

 

(a) Board
of Directors. Subject to the terms and conditions of this Agreement, in the event (an “Appointment Event”) that
either (a) Executive is no longer the designee of the Company’s Series A shareholders to serve on the Board of Directors of the
Company (a “Director”), (b) the Company’s Series A shareholders no longer have the right to designate a Director,
or (c) Executive is terminated as President or Chief Operating Officer hereunder other than for Cause, then Company shall, as of the date
of such Appointment Event, cause the Executive to be appointed as a Director, and Executive hereby agrees to serve the Company in such
position. Executive shall serve as a Director for so long as they are an Executive hereunder; provided that in the case of (c)
Executive’s service as a Director shall continue until the earlier of (i) the end of Executive’s then-current term as Director
and (ii) (a) the death of the Director; (b) the termination of the Director from his membership on the Board of Directors by the mutual
agreement of the Company and the Director; and (c) the resignation by the Director from the Board of Directors. Any service as a Director
thereafter shall be subject to any necessary approval by the Company’s shareholders.

 

     

     

    

 

4. Compensation.

 

(a) Salary.
During the Employment Period, the Company shall pay to Executive a base salary at the rate of $395,000 per annum (the “Base Salary”).
The Base Salary shall be paid in accordance with the Company’s standard payroll practices in effect from time to time.

 

(b) Bonus.
Commencing on the Effective Date, in addition to the Base Salary, Executive shall be eligible to receive a discretionary annual bonus
during each fiscal year of the Employment Period. Such bonus amount, and the performance metrics and goals required to receive such bonus
amount, shall be determined by the Board based on appropriate comparative benchmarks within sixty (60) days following the commencement
of each fiscal year. The bonus, if any, payable under this Section 4(b) shall be paid within thirty (30) days following receipt
of the Company’s audited financial statements for the applicable fiscal year, unless such payment is delayed due to an unforeseeable
administrative impracticability, in which case, such bonus will be paid as soon as administratively practicable thereafter, but in no
event later than the end of the fiscal year immediately following the applicable fiscal year; provided that Executive is an employee
in good standing with the Company at such time of payment and Executive has not breached any provision of this Agreement.

 

(c) Equity
Interest. Company shall award Executive common stock of the Company (the “Common Shares”) or options to acquire
the same, in an amount representing, in the aggregate, the Equity Award Percentage (as defined below). Within sixty (60) days after each
of the Private Placement Date and the Follow-on Offering Date (as each such term is defined below), the Company will provide Executive
with a written notice of the then-current fair market value of the Common Shares, and, within thirty (30) days of the receipt of such
fair market value, Executive shall elect in a written notice to the Company the allocation of the award as between Restricted Shares (as
defined below) and an Option Grant (as defined below) (such notice, the “Executive Award Allocation”).

 

(i) Defined
Terms. For the purposes of this Agreement, the following defined terms shall be construed to have the meanings set forth or referenced
below.

 

(1) “Equity
Award Percentage” means four percent (4%) of the fully diluted Common Shares as of each of (i) the Private Placement Date and
(ii) the Follow-on Offering Date.

 

(2) “Follow-on
Offering Date” means the earlier of (i) the date of the final closing of the Follow-on Offering (as such term is defined in
that certain Investor Rights Agreement dated as of the Effective Date), and (ii) the effective date of the Company’s first firm
commitment underwritten public offering of its Common Stock under the Securities Act.

 

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(3) “Private
Placement Date” means the date of the final closing of the private placement of Company securities conducted under that certain
Private Placement Memorandum dated January 22, 2018, as supplemented.

 

(4) “Equity
Vesting Schedule” means that thirty-three percent (33%) of any options or restricted stock awarded to the Executive shall be
fully vested at the time of the award and sixty-seven percent (67%) of any options or restricted stock award to the Executive shall vest
on a quarterly basis (on the last day of each quarter) over three years, with the first vesting date being the end of the first calendar
quarter after the date of the award.

 

(ii) Options
Award. Upon the receipt of each the Executive Award Allocation, the Company shall take all necessary action to issue to the Executive
an option grant (“Option Grant”) to purchase shares of common stock of the Company (the “Common Shares”)
in the amount (if any) set forth in such Executive Award Allocation. Such options shall vest according to the Equity Vesting Schedule.
The Option Grant shall contain the following additional terms:

 

(1) Upon
the “change-in-control” of the Company, any unvested options shall become fully vested. “Change of Control” shall
mean the consummation of any one of the following events: (i) a sale, lease, transfer or other disposition of all or substantially
all of the assets of the Company; (ii) a consolidation or merger of the Company with or into any other corporation or other entity
or person, or any other corporate reorganization, in which the stockholders of the Company immediately prior to such consolidation, merger
or reorganization, own less than fifty percent (50%) of the Company’s outstanding voting power of the surviving entity following
the consolidation, merger or reorganization; or (iii) any transaction (or series of related transactions involving a person or entity,
or a group of affiliated persons or entities) in which in excess of fifty percent (50%) of the Company’s then-outstanding voting
power is transferred, excluding any consolidation or merger effected exclusively to change the domicile of the Company and excluding any
such change of voting power resulting from a bona fide equity financing event or public offering of the stock of the Company.

 

(2) If
the Executive is terminated without Cause (as defined below), or voluntarily terminates the Employment Period with Good Reason, any unvested
options shall become fully vested.

 

(iii) Grant
of Restricted Shares. Upon the receipt of each Executive Award Allocation, the Company shall take all necessary action to grant to
the Executive, subject to the terms and conditions of a restricted stock award agreement pursuant to the Company’s equity incentive
plan, the number of Common Shares, if any, set forth in such Executive Award Allocation (the “Restricted Shares”),
such shares shall vest according to the Equity Vesting Schedule. The Restricted Shares may not be transferred by the Executive, other
than by the laws of descent and distribution or to a trust or similar vehicle created for estate planning purposes, prior to the second
anniversary of the Effective Date. Any stock certificates evidencing shares of Restricted Shares will bear a legend evidencing such restriction
as set forth in the Restricted Stock Award Agreement.

 

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5. Benefit
Plans. During the Employment Period, Executive shall be eligible to participate in and receive benefits under the employee benefit
plans, equity incentive plans, practices, policies, perquisites and programs established and maintained by the Company from time to time
for which employees of the Company are generally eligible, in each case, subject to the eligibility and participation requirements thereof;
provided that the Company shall pay (or in the case of another company paying, reimbursing) seventy-five percent (75%) of the cost
of health insurance premiums and Executive paying for the remainder.

 

6. Business
Expenses. The Company, in accordance with policies and practices established by the Company from time to time, will pay or reimburse
Executive for all expenses reasonably incurred by Executive during the Employment Period in connection with the performance of Executive’s
duties under this Agreement; provided, that Executive shall provide to the Company reasonable documentation or evidence of expenses
for which Executive seeks reimbursement in accordance with the policies and procedures established by the Company from time to time. Executive
shall be entitled to business class travel for all air travel related to the performance of his services hereunder that exceeds four hours’
scheduled flying time in duration.

 

7. Paid
Time Off. Executive shall be entitled, during the Employment Period, to four (4) weeks of paid vacation and sick time in each calendar
year. Accrued vacation and sick time not taken in any calendar year may not be carried forward or be usable in any subsequent calendar
year, nor shall Executive be entitled to compensation for unused vacation or sick days during the Employment Period or upon termination
of employment. Paid holidays may be taken in accordance with the holiday policy and schedule of the Company as from time to time in effect.

 

8. Termination.

 

(a) Termination
For Cause. The Company may terminate the Employment Period immediately upon the occurrence of any of the following events (each of
which shall constitute “Cause”):

 

(i) Executive’s
breach of any of Executive’s obligations under Section 9;

 

(ii) Executive’s
breach of any of Executive’s obligations under this Agreement other than Section 9, which, to the extent curable, has not
been cured within thirty (30) days after Executive has been provided written notice of such breach;

 

(iii) Executive
being convicted of, or pleading guilty or nolo contendere to, or being indicted for, any felony or any misdemeanor involving theft, fraud,
dishonesty or moral turpitude; or

 

(iv) fraud
or embezzlement against the Company.

 

If the Employment Period is
terminated pursuant to this Section 8(a), the Company shall have no further obligation to Executive except for (i) payment
of Base Salary accrued but unpaid through the date of termination and (ii) subject to the provisions of Section 6, reimbursement
of any expense properly incurred by Executive through the date of termination (collectively, the “Accrued Obligations”).
The Accrued Obligations shall be paid in accordance with applicable state law and in no event later than thirty (30) days after the date
of termination.

 

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(b) Termination
upon Executive’s Death. The Employment Period shall terminate immediately upon the death of Executive. If the Employment Period
is terminated pursuant to this Section ‎8(b), the Company shall have the following
obligations to Executive (or his estate) (i) the payment of the Accrued Obligations, which shall be paid in accordance with Section
‎8(a), and (ii) the payment of Severance Obligations, which shall be paid in accordance with
Section 8(f).

 

(c) Termination
by the Company without Cause. The Company may terminate the Employment Period at any time without Cause upon written notice to Executive.
If the Employment Period is terminated pursuant to this Section ‎8(c), the Company shall
have the following obligations to Executive (or his estate): (i) Payment of all Accrued Obligations, which shall be paid in accordance
with Section ‎8(a); and (ii) Payment of the Severance Obligations as described in Section
8(f).

 

(d) Voluntary
Resignation by Executive – Without Cause. Executive may terminate the Employment Period for any reason upon not less than ten
(10) days’ prior written notice. If the Employment Period is terminated pursuant to this Section ‎8(d),
the Company shall have no further obligation to Executive except for Accrued Obligations, which shall be paid in accordance with Section
‎8(a).

 

(e) Voluntary
Resignation by Executive – With Good Reason. Executive may terminate the Employment Period, with Good Reason, upon not less
than ten (10) days’ prior written notice. If Executive terminates the Employment Period with Good Reason, the Company shall have
the following obligations to Executive (or his estate):

 

(i) Payment
of all Accrued Obligations, which shall be paid in accordance with Section ‎8(a); and

 

(ii) Payment
of the Severance Obligations as described in Section 8(f).

 

(iii) For
purposes of this Section ‎8(e), “Good Reason” shall mean each of: (A)
the Company’s alteration of Executive’s title, role, work description or responsibilities without the prior express written
consent of Executive; (B) the failure to pay any of the Company’s obligations owed to Executive hereunder (subject to a cure period
of five (5) business days); (C) the requirement by the Company for the Executive to relocate from Fort Lauderdale, Florida; (D) the Company’s
performance of any illegal or civilly actionable act that materially damages Executive’s reputation or is considered harassment
under Federal or applicable state law, as determined by a court of competent jurisdiction in a final, nonappealable adjudication; or (E)
a liquidation, bankruptcy or receivership of the Company.

 

(f) Severance
Payments. In the event Executive’s employment is terminated (i) by the Company without Cause or (ii) by Executive for Good Reason,
the Company shall continue to pay Executive as severance, Executive’s then-effective Base Salary for a period of twelve (12) months
beginning on the date such termination becomes effective (such payments, the Company’s “Severance Obligations”);
provided, that Executive executes a full and final release in a form reasonably satisfactory to the Company for any and all claims against
the Company predating Executive’s execution of such release. Any and all payments of Severance Obligations shall be less applicable
withholding and deductions. Further, Executive shall have twelve (12) months to exercise vested stock options.

 

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9. Restrictive
Covenants.

 

(a) Executive’s
Acknowledgment. Executive acknowledges that: (i) the Company is and will be engaged in its business during the Employment Period and
thereafter; (ii) Executive is one of a limited number of persons who is and will be developing the business and will, during the
Employment Period, have frequent and prolonged interactions with all customers and suppliers of the Company with respect to matters significantly
affecting the business relationship between those customers and suppliers and the Company; (iii) Executive occupies a position of
trust and confidence with the Company and is familiar with the Company’s trade secrets and with other proprietary and confidential
information concerning the Company and its business; and (iv) the agreements and covenants contained in this Section 9 are
essential to protect the Company and the goodwill of the business and are a condition precedent to the Company entering into this Agreement.
Executive acknowledges that he or she has carefully read this Agreement and has given careful consideration to the restraints imposed
upon him by this Agreement, and is in full accord as to their necessity for the reasonable and proper protection of confidential and proprietary
information and goodwill of the Company now existing or to be developed or created in the future.

 

(b) Non-Solicitation.
Executive will not, during the Restricted Period, directly or indirectly (whether as an owner, partner, shareholder, member, agent, officer,
director, manager, employee, independent contractor, consultant, or otherwise) with or through any individual or entity:

 

(i) solicit
for employment or engagement, or identify for another person or entity to employ, engage or solicit for employment or engagement, any
individual who is, or was at any time during the twelve (12) month period immediately preceding any such action, an employee of the Company,
or otherwise seek to adversely influence or alter any such employee’s relationship with the Company;

 

(ii) employ
or engage any individual who is, or was at any time during the twelve (12) month period immediately preceding any such action, an employee
of the Company; or

 

(iii) solicit
or encourage any individual or entity that is, or was during the twenty four (24) month period immediately preceding any such action,
a current or prospective customer, supplier or vendor of the Company (A) to terminate or otherwise adversely alter his, her or its relationship
with the Company or (B) for any purposes which are competitive with Company’s business.

 

(c) Right
to Conduct Activities. The Company acknowledges that Executive is in the business of venture capital or private equity investing and
therefore reviews the business plans and related proprietary information of many enterprises, including enterprises which may have products
or services which compete directly or indirectly with those of the Company. Nothing in this Agreement shall preclude or in any way restrict
the Executive from investing or participating in any particular enterprise whether or not such enterprise has products or services which
compete with those of the Company. During the term of this Agreement, and provided such service does not unreasonably interfere with Executive’s
obligations hereunder, Executive may continue to serve as a member of the Board of Directors or other governing body of the up to three
(3) for-profit entities, as well as any entity in which the Company has an investment. The Company hereby agrees that, to the extent permitted
under applicable law, Executive shall not be liable to the Company for any claim arising out of, or based upon, (i) the investment by
Executive in any entity competitive with the Company, or (ii) the service by Executive as a member of the Board of Directors or other
governing body of any of the entities set forth on Exhibit A, or any other entity approved by the Company; provided, however,
that the foregoing shall not relieve Executive from liability associated with the unauthorized disclosure of the Company’s confidential
information obtained pursuant to this Agreement.

 

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(d) Scope/Severability.
The parties acknowledge that the Company’s business is and will be conducted throughout the Restricted Territory and thus the covenants
in this Section 9 would be ineffective if the covenants were to be limited to a particular geographic area within the Restricted
Territory. If any court of competent jurisdiction at any time deems the Restricted Period too lengthy, or the Restricted Territory too
extensive, or any of the covenants set forth in this Section 9 otherwise not fully enforceable, the other provisions of this Section
9, and this Agreement in general, will nevertheless stand and to the full extent consistent with law continue in full force and effect,
and it is the intention and desire of the parties that the court treat any provisions of this Agreement which are not fully enforceable
as having been modified to the extent deemed necessary by the court to render them reasonable and enforceable and that the court enforce
them to such extent (for example, that Restricted Territory be deemed to comprise the largest territory permissible by law under the circumstances
but not in excess of the territory provided for herein).

 

10. Equitable
Remedies. Executive acknowledges and agrees that the agreements and covenants set forth in Section 9 of this Agreement are
reasonable and necessary for the protection of the Company’s business interests, that irreparable injury will result to the Company
if Executive breaches any of the terms of said covenants, and that in the event of Executive’s actual or threatened breach of any
such covenants, the Company will have no adequate remedy at law. Executive accordingly agrees that, in the event of any actual or threatened
breach by Executive of any of said covenants, the Company will be entitled to immediate injunctive and other equitable relief, without
bond and without the necessity of showing actual monetary damages or the necessity of showing that monetary damages are an inadequate
remedy. Nothing in this Section ‎10 will be construed as prohibiting the Company from
pursuing any other remedies available to it for such breach or threatened breach, including the recovery of any damages that it is able
to prove.

 

11. Assistance.
From and after the date hereof (including after the termination of Executive’s employment with the Company for any reason), Executive
shall, upon reasonable notice, furnish the Company with such information as may be in Executive’s possession or control, and cooperate
with the Company, as the Company may reasonably request, in connection with any litigation, claim, or other dispute in which the Company
is or may become a party, provided that following termination of Executive’s employment with the Company, any such assistance shall
not unreasonably interfere with Executive’s personal or business affairs. The Company shall reimburse Executive for all reasonable
out-of-pocket expenses incurred by Executive in fulfilling Executive’s obligations under this Section ‎11.

 

12. Definitions.
The following terms used herein shall have the definitions set forth below:

 

“Restricted Period”
means twelve (12) months following the date of termination.

 

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“Restricted Territory”
means the United States of America.

 

13. Effect
of Prior Agreements. Unless otherwise provided herein, this Agreement contains the entire understanding between the Company and Executive
relating to the subject matter hereof and, as of the Effective Date, will supersede any prior employment agreement between Executive and
the Company and any other agreement relating to the subject matter hereof between Executive and the Company. Executive acknowledges that
he is not relying and has not relied on any oral or written statements, promises, representations or warranties (whether made by the Company
or any equity holder, director, officer, employee, agent or other representative of the Company or otherwise) that are not expressly set
forth in this Agreement and those documents expressly referred to herein. For the avoidance of doubt, the non-solicitation and other restrictive
covenants contained in this Agreement shall be in addition to, and not in lieu of, and shall not in any way limit or be limited by, any
restrictive covenant covering similar subject matter contained in any other agreement to which Executive is a party, including but not
limited to, any asset purchase agreement, equity subscription agreement or stockholder or operating agreement with respect to any equity
interest in the Company.

 

14. Confidential
Information and Intellectual Property Assignment Agreement. Notwithstanding anything herein to the contrary, the terms of that certain
Confidential Information and Intellectual Property Assignment Agreement, dated as of the date hereof, between Executive and the Company
are hereby incorporated by reference.

 

15. Withholding
and Deductions. All amounts payable to Executive (or his estate, as applicable) pursuant to this Agreement shall be subject to such
withholding and deductions by the Company as required by law and the applicable benefit plans of the Company.

 

16. Code
Section 409A. The Company and Executive agree that this Agreement and the rights granted to Executive hereunder are intended to meet
the requirements of paragraphs (2), (3) and (4) of Section 409A(a)(1)(A) of the Code. Accordingly, the parties agree that they shall negotiate
in good faith to revise any provisions of this Agreement that might otherwise fail to meet the requirements of paragraphs (2), (3) and
(4) of Section 409A of Code. However, the Company does not guarantee any particular tax effect of payments under this Agreement, and in
no event shall the Company have any obligation to “gross-up” or otherwise compensate Executive with respect to any tax effect
of payments under this Agreement. With respect to any reimbursement of expenses of, or any provision of in-kind benefits to, Executive,
as specified under this Agreement, such reimbursement of expenses or provision of in-kind benefits shall be subject to the following conditions:
(1) the expenses eligible for reimbursement or the amount of in-kind benefits provided in one taxable year shall not affect the expenses
eligible for reimbursement or the amount of in-kind benefits provided in any other taxable year, except for any medical reimbursement
arrangement providing for the reimbursement of expenses referred to in Section 105(b) of the Code; (2) the reimbursement of an eligible
expense shall be made no later than the end of the year after the year in which such expense was incurred; and (3) the right to reimbursement
or in-kind benefits shall not be subject to liquidation or exchange for another benefit. “Termination of employment,” or words
of similar import, as used in this Agreement means, for purposes of any payments under this Agreement that are payments of deferred compensation
subject to Section 409A, Executive’s “separation from service” as defined in Section 409A. For purposes of Section 409A,
the right to a series of installment payments under this Agreement shall be treated as a right to a series of separate payments.

 

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17. Modification
and Waiver. This Agreement may not be modified or amended, nor may any provisions of this Agreement be waived, except by an instrument
in writing signed by the parties hereto. No written waiver will be deemed to be a continuing waiver unless specifically stated therein,
and each such waiver will operate only as to the specific term or condition waived and shall not constitute a waiver of such term or condition
for the future or as to any act other than that specifically waived. No failure of any party hereto to exercise any right or remedy given
to such party under this Agreement or otherwise available to such party hereto or to insist upon strict compliance by any other party
hereto with its or his obligations hereunder, and no custom or practice of the parties in variance with the terms hereof, shall constitute
a waiver of any party’s right to demand exact compliance with the terms hereof.

 

18. Indemnification.
The Company hereby indemnifies Executive to the maximum extent provided in the Company’s By-Laws and organizational documents, as
currently in effect. Executive shall be entitled to coverage under the directors and officers liability insurance on terms no less favorable
to him in any respect than the coverage then being provided to any other current or former director or officer of the Company and which
the Company shall maintain with minimum coverage of One Million Dollars ($1 million).

 

19. Severability.
Without limiting Section ‎9(c): (i) if, for any reason, any provision of this Agreement
is held invalid, such invalidity will not affect any other provision of this Agreement, and each provision will, to the full extent consistent
with law, continue in full force and effect and (ii) if any provision of this Agreement is held invalid in part, such invalidity will
in no way affect the rest of such provision, and the rest of such provision, together with all other provisions of this Agreement, will,
to the full extent consistent with law, continue in full force and effect.

 

20. Notices.
Any notice, request, instruction or other document to be given hereunder by any party hereto to any other party hereto shall be in writing
and shall be given by delivery in person, by facsimile transmission, by email, by overnight courier or by registered or certified mail,
postage prepaid to the address set forth below or such other address as such party may give to the other parties by notice pursuant to
this Section ‎20. Notice shall be deemed given on (a) the date such notice is personally delivered, (b) the date of scheduled
delivery if sent by overnight courier, or (c) the date such notice is transmitted by facsimile or email, if such transmission is prior
to 5:00 p.m. Eastern Time on a business day, or the next succeeding business day if such transmission is after 5:00 p.m. Eastern Time.

 

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    If to the Board or the Company:
	
    Orchestra BioMed, Inc.

    150 Union Square Drive

    New Hope, PA 18938

    E-Mail: [Omitted pursuant to Item 601(a)(6)]

	 	
     

    If to Executive:
	
     

    Darren R. Sherman

    Address: [Omitted pursuant to Item 601(a)(6)]

    E-Mail: [Omitted pursuant to Item 601(a)(6)]

 

21. Third
Party Beneficiaries. Nothing herein expressed or implied is intended or shall be construed to confer upon or give to any person or
entity, other than the parties to this Agreement, their respective permitted successors and assigns, any rights or remedies under or by
reason of this Agreement.

 

22. Headings.
The headings and other captions in this Agreement are included solely for convenience of reference and will not control the meaning and
interpretation of any provision of this Agreement.

 

23. Governing
Law. The validity, interpretation, performance, and enforcement of this Agreement will be governed by the laws of the State of Delaware,
without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction)
that would cause the application of the laws of any jurisdiction other than the State of Delaware. Executive and the Company hereby irrevocably
submit to the exclusive jurisdiction of any state or federal court located in the State of Delaware, over any suit, action or proceeding,
whether at law or in equity, arising out of or relating to or concerning this Agreement. Each party hereto agrees that it will not challenge
the applicability of the laws of the State of Delaware, without giving effect to any choice of law or conflict of law provision or rule
(whether of the State of Delaware or any other jurisdiction), in any suit or proceeding regarding the validity, interpretation, performance,
or enforcement of any provision of this Agreement, regardless of who initiates such suit or proceeding.

 

24. Waiver
of Jury Trial. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING
OUT OF OR RELATED TO THIS AGREEMENT OR THE MATTERS CONTEMPLATED HEREBY, PROVIDED, HOWEVER, THAT THE PARTIES HERETO AGREE THAT SUCH WAIVER
SHALL NOT BE DEEMED TO CONSTITUTE A WAIVER OF ADJUDICATION BY A COURT HAVING APPROPRIATE JURISDICTION.

 

25. Non-Assignability/Binding
Effect. This Agreement shall not be assignable by either party without the prior written consent of the other party. This Agreement
will be binding upon and inure to the benefit of Executive, the Company, and their respective successors and permitted assigns.

 

26. Construction.
The parties hereto have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question
of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties hereto, and no presumption
or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement.

 

27. Survival.
Termination of the Employment Period in accordance with Section ‎8 will not affect the
provisions of Section 3(a) or Sections 9 through ‎28 of this Agreement,
each of which shall survive such termination.

 

28. Counterparts.
This Agreement may be executed in separate counterparts and may be executed and delivered by facsimile or other electronic delivery, each
of which is deemed to be an original and all of which, taken together, constitute one and the same agreement.

 

[Remainder of Page Intentionally Blank; Signature
Page to Follow]

 

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IN WITNESS WHEREOF, the Company
has caused this Agreement to be executed by its duly authorized officer, and Executive has signed this Agreement, as of the date first
above written.

 

	 	ORCHESTRA BIOMED, INC.:
	 	 	 
	 	By:	/s/ Todd Van Emburgh
	 	Name: 	Todd Van Emburgh
	 	Title:	President
	 	 	 
	 	EMPLOYEE:
	 	 	 
	 	/s/ Darren R. Sherman 
	 	Darren R. Sherman

 

[Signature Page to Employment Agreement]

 

     

     

    

 

Exhibit A

 

Boards of Directors

 

All boards of directors on which Executive serves prior to the Effective
Date.Exhibit 10.32

 

Orchestra
BioMed, Inc.

Employment Agreement

 

THIS EMPLOYMENT AGREEMENT
(this “Agreement”) is entered into as of May 31, 2018 (the “Effective Date”), by and between Orchestra
BioMed, Inc., a Delaware corporation (the “Company”), and Yuval Mika (“Executive”).

 

WHEREAS, the Company desires
to employ Executive, and Executive desires to be employed by the Company, upon the terms and subject to the conditions set forth herein.

 

NOW, THEREFORE, in consideration
of the employment of Executive by the Company and the mutual agreements hereinafter set forth, the parties hereto agree as follows:

 

1. Employment.
During the Employment Period (as defined below), the Company hereby agrees to employ Executive as Chief Technology Officer & General
Manager, Cardiac Neuromodulation of the Company, and Executive hereby accepts such employment and agrees to serve as Chief Technology
Officer & General Manager, Cardiac Neuromodulation, all in accordance with the terms and conditions of this Agreement. Executive hereby
represents and warrants that neither Executive’s entry into this Agreement nor Executive’s performance of Executive’s
obligations hereunder will conflict with or result in a breach of the terms, conditions or provisions of any other agreement or obligation
of any nature to which Executive is a party or by which Executive is bound, including, without limitation, any non-competition agreement,
non-solicitation agreement or confidentiality agreement or policy entered into by Executive or to which Executive is subject.

 

2. Term
of Employment. The term of Executive’s employment under this Agreement will commence on the Effective Date and will continue
until terminated in accordance with Section 8 hereof (such term, the “Employment Period”).

 

3. Position
and Responsibilities. During the Employment Period: (a) Executive shall serve in the position of Chief Technology Officer & General
Manager, Cardiac Neuromodulation; (b) Executive shall have the duties, responsibilities, functions and authority, including administrative,
financial, executive and managerial, as shall be designated by the Company’s Chief Executive Officer (“CEO”) or Chief
Operating Officer (“COO”) from time to time; (c) Executive will use his best efforts to promote the interests, prospects,
condition (financial and otherwise) and welfare of the Company and shall perform his duties and responsibilities to the best of his ability
in a diligent, trustworthy, businesslike and efficient manner; and (d) Executive shall comply at all times with all policies and codes
of conduct of the Company, as such policies and codes may change from time to time.

 

4. Compensation.

 

(a) Salary.
During the Employment Period, the Company shall pay to Executive a base salary at the rate of $388,800 per annum (the “Base Salary”).
The Base Salary shall be paid in accordance with the Company’s standard payroll practices in effect from time to time.

 

     

     

    

 

(b) Bonus.
Commencing on the Effective Date, in addition to the Base Salary, Executive shall be eligible to receive a discretionary annual bonus
during each fiscal year of the Employment Period. Such bonus amount, and the performance metrics and goals required to receive such bonus
amount, shall be determined by the Board based on appropriate comparative benchmarks within sixty (60) days following the commencement
of each fiscal year. The bonus, if any, payable under this Section 4(b) shall be paid within thirty (30) days following receipt
of the Company’s audited financial statements for the applicable fiscal year, unless such payment is delayed due to an unforeseeable
administrative impracticability, in which case, such bonus will be paid as soon as administratively practicable thereafter, but in no
event later than the end of the fiscal year immediately following the applicable fiscal year; provided that Executive is an employee
in good standing with the Company at such time of payment and Executive has not breached any provision of this Agreement.

 

(c) Equity
Interest. Company shall award Executive common stock of the Company (the “Common Shares”) or options to acquire
the same, in an amount representing, in the aggregate, the Equity Award Percentage (as defined below). Within sixty (60) days after each
of the Private Placement Date and the Follow-on Offering Date (as each such term is defined below), the Company will provide Executive
with a written notice of the then-current fair market value of the Common Shares, and, within thirty (30) days of the receipt of such
fair market value, Executive shall elect in a written notice to the Company the allocation of the award as between Restricted Shares (as
defined below) and an Option Grant (as defined below) (such notice, the “Executive Award Allocation”).

 

(i) Defined
Terms. For the purposes of this Agreement, the following defined terms shall be construed to have the meanings set forth or referenced
below.

 

(1) “Equity
Award Percentage” means one and one half percent (1.5%) of the fully diluted Common Shares outstanding as of each of (i) the
Private Placement Date and (ii) the Follow-on Offering Date.

 

(2) “Follow-on
Offering Date” means the earlier of (i) the date of the final closing of the Follow-on Offering (as such term is defined in
that certain Investor Rights Agreement dated as of the Effective Date), and (ii) the effective date of the Company’s first firm
commitment underwritten public offering of its Common Stock under the Securities Act.

 

(3) “Private
Placement Date” means the date of the final closing of the private placement of Company securities conducted under that certain
Private Placement Memorandum dated January 22, 2018, as supplemented.

 

(4) “Equity
Vesting Schedule” means that thirty-three percent (33%) of any options or restricted stock awarded to the Executive shall be
fully vested at the time of the award and sixty-seven percent (67%) of any options or restricted stock award to the Executive shall vest
on a quarterly basis (on the last day of each quarter) over three years, with the first vesting date being the end of the first calendar
quarter after the date of the award.

 

    2

     

    

 

(ii) Options
Award. Upon the receipt of each the Executive Award Allocation, the Company shall take all necessary action to issue to the Executive
an option grant (“Option Grant”) to purchase shares of common stock of the Company (the “Common Shares”)
in the amount (if any) set forth in such Executive Award Allocation. Such options shall vest according to the Equity Vesting Schedule.
The Option Grant shall contain the following additional terms:

 

(1) Upon
the “change-in-control” of the Company, any unvested options shall become fully vested. “Change of Control” shall
mean the consummation of any one of the following events: (i) a sale, lease, transfer or other disposition of all or substantially
all of the assets of the Company; (ii) a consolidation or merger of the Company with or into any other corporation or other entity
or person, or any other corporate reorganization, in which the stockholders of the Company immediately prior to such consolidation, merger
or reorganization, own less than fifty percent (50%) of the Company’s outstanding voting power of the surviving entity following
the consolidation, merger or reorganization; or (iii) any transaction (or series of related transactions involving a person or entity,
or a group of affiliated persons or entities) in which in excess of fifty percent (50%) of the Company’s then-outstanding voting
power is transferred, excluding any consolidation or merger effected exclusively to change the domicile of the Company and excluding any
such change of voting power resulting from a bona fide equity financing event or public offering of the stock of the Company.

 

(2) If
the Executive is terminated without Cause (as defined below) any unvested options shall become fully vested.

 

(3) If the
all of the assets related to BackBeat Medical, Inc. are sold, any unvested options shall become fully vested.

 

(iii) Grant
of Restricted Shares. Upon the receipt of each Executive Award Allocation, the Company shall take all necessary action to grant to
the Executive, subject to the terms and conditions of a restricted stock award agreement pursuant to the Company’s equity incentive
plan, the number of Common Shares, if any, set forth in such Executive Award Allocation (the “Restricted Shares”),
such shares shall vest according to the Equity Vesting Schedule. The Restricted Shares may not be transferred by the Executive, other
than by the laws of descent and distribution or to a trust or similar vehicle created for estate planning purposes, prior to the second
anniversary of the Effective Date. Any stock certificates evidencing shares of Restricted Shares will bear a legend evidencing such restriction
as set forth in the Restricted Stock Award Agreement.

 

(d) Strategic
Transaction Bonus. In the event that Executive is employed by the Company at the time of the consummation of a licensing arrangement,
distribution agreement or asset sale related to the BackBeat Cardiac Neuromodulation Therapy product of the Cardiac Neuromodulation business
unit of the Company (any of the foregoing, a “Strategic Transaction”), Executive will be entitled to a cash bonus out
of net cash proceeds received by the Company as a result of such Strategic Transaction over the entire term of such Strategic Transaction
(less taxes and other required withholdings) equal to 0.75% of the net proceeds up to $250 million, 1% of the net proceeds over $250 million
up to $500 million, and 1.25% of the net proceeds over $500 million (such amount the “Strategic Bonus Amount”). Executive’s
entitlement to the Strategic Bonus Amount shall vest as follows: thirty-three percent (33%) immediately upon closing of such Strategic
Transaction and sixty-seven percent (67%) on an annual basis over two (2) years, with the first vesting date being the one-year anniversary
of the consummation of the Strategic Transaction) such that one-third (1/3) of the Strategic Bonus Amount shall be paid within thirty
(30) days of each such vesting date. If the Executive is terminated without Cause (as defined below) any unvested portion of the Strategic
Bonus Amount shall become fully vested and Executive shall be paid any remaining vested amounts within ninety (90) days of such termination.
If Executive is terminated for Cause (as defined below), death or disability or if Executive voluntarily resigns, then any unvested portions
of the Strategic Bonus Amount shall be immediately forfeit and Executive shall have no right to the payment thereof.

 

    3

     

    

 

5. Benefit
Plans. During the Employment Period, Executive shall be eligible to participate in and receive benefits under the employee benefit
plans, equity incentive plans, practices, policies, perquisites and programs established and maintained by the Company from time to time
for which employees of the Company are generally eligible, in each case, subject to the eligibility and participation requirements thereof;
provided that the Company shall pay (or in the case of another company paying, reimbursing) seventy-five percent (75%) of the cost
of health insurance premiums and Executive paying for the remainder.

 

6. Business
Expenses. The Company, in accordance with policies and practices established by the Company from time to time, will pay or reimburse
Executive for all expenses reasonably incurred by Executive during the Employment Period in connection with the performance of Executive’s
duties under this Agreement; provided, that Executive shall provide to the Company reasonable documentation or evidence of expenses
for which Executive seeks reimbursement in accordance with the policies and procedures established by the Company from time to time. Executive
shall be entitled to business class travel for all air travel related to the performance of his services hereunder that exceeds four hours’
scheduled flying time in duration

 

7. Paid
Time Off. Executive shall be entitled, during the Employment Period, to four (4) weeks of paid vacation and sick time in each calendar
year. Accrued vacation and sick time not taken in any calendar year may not be carried forward or be usable in any subsequent calendar
year, nor shall Executive be entitled to compensation for unused vacation or sick days during the Employment Period or upon termination
of employment. Paid holidays may be taken in accordance with the holiday policy and schedule of the Company as from time to time in effect.

 

8. Termination.

 

(a) Termination
For Cause. The Company may terminate the Employment Period immediately upon the occurrence of any of the following events (each of
which shall constitute “Cause”):

 

(i) Gross
negligence or willful misconduct in performance of the Executive’s duties hereunder;

 

    4

     

    

 

(ii) After
written notice to Executive setting forth in reasonable detail the basis for such termination upon Executive’s material breach of
any of Executive’s obligations under this Agreement other than Section 9;

 

(iii) Executive’s
failure to obey a material lawful directive that is from the Board and appropriate to his position;

 

(iv) Executive’s
material breach of any of Executive’s obligations under Section 9;

 

(v) Executive
being convicted of, or pleading guilty or nolo contendere to, or being indicted for, any felony or any misdemeanor involving theft, fraud,
dishonesty or moral turpitude;

 

(vi) fraud
or embezzlement against the Company; or

 

(vii) any
other act or omission that results, or could reasonably be expected to result, in material harm to the business, reputation or prospects
of the Company.

 

If the Employment Period is
terminated pursuant to this Section 8(a), the Company shall have no further obligation to Executive except for (i) payment
of Base Salary accrued but unpaid through the date of termination and (ii) subject to the provisions of Section 6, reimbursement
of any expense properly incurred by Executive through the date of termination (collectively, the “Accrued Obligations”).
The Accrued Obligations shall be paid in accordance with applicable state law and in no event later than thirty (30) days after the date
of termination.

 

(b) Termination
upon Executive’s Death or Disability. The Employment Period shall terminate immediately upon the death or disability of Executive.
If the Employment Period is terminated pursuant to this Section 8(b), the Company shall have the following obligations to
Executive (or his estate) (i) the payment of the Accrued Obligations, which shall be paid in accordance with Section 8(a), and
(ii) the payment of Severance Obligations, which shall be paid in accordance with Section 8(f).

 

(c) Termination
by the Company without Cause. The Company may terminate the Employment Period without Cause upon thirty (30) days prior written notice
to Executive. If the Employment Period is terminated pursuant to this Section 8(c), the Company shall have the following obligations
to Executive (or his estate): (i) Payment of all Accrued Obligations, which shall be paid in accordance with Section 8(a); (ii)
payment of the Severance Obligations as described in Section 8(f); and (iii) payment of the Strategic Bonus Amount as described
in Section 4(d).

 

(d) Voluntary
Resignation by Executive. Executive may terminate the Employment Period for any reason upon not less than ten (10) days’ prior
written notice. If the Employment Period is terminated pursuant to this Section 8(d), the Company shall have no further obligation
to Executive except for Accrued Obligations, which shall be paid in accordance with Section 8(a), provided that he shall have sixty
(60) days from such resignation to exercise any vested stock options. Further, if the Executive decides to retire at age 65, he shall
be treated in accordance with Section 8(c).

 

    5

     

    

 

(e) Reserved.

 

(f) Severance
Payments. In the event Executive’s employment is terminated by the Company without Cause, the Company shall continue to pay
Executive as severance, Executive’s then-effective Base Salary for a period of six (6) months beginning on the date such termination
becomes effective (such payments, the Company’s “Severance Obligations”); provided, that Executive executes a
full and final release in a form reasonably satisfactory to the Company for any and all claims against the Company predating Executive’s
execution of such release. Any and all payments of Severance Obligations shall be less applicable withholding and deductions. Further,
Executive shall have twelve (12) months to exercise vested stock options.

 

9. Restrictive
Covenants.

 

(a) Executive’s
Acknowledgment. Executive acknowledges that: (i) the Company is and will be engaged in its business during the Employment Period and
thereafter; (ii) Executive is one of a limited number of persons who is and will be developing the business and will, during the
Employment Period, have frequent and prolonged interactions with all customers and suppliers of the Company with respect to matters significantly
affecting the business relationship between those customers and suppliers and the Company; (iii) Executive occupies a position of
trust and confidence with the Company and is familiar with the Company’s trade secrets and with other proprietary and confidential
information concerning the Company and its business; and (iv) the agreements and covenants contained in this Section 9 are
essential to protect the Company and the goodwill of the business and are a condition precedent to the Company entering into this Agreement.
Executive acknowledges that he or she has carefully read this Agreement and has given careful consideration to the restraints imposed
upon him by this Agreement, and is in full accord as to their necessity for the reasonable and proper protection of confidential and proprietary
information and goodwill of the Company now existing or to be developed or created in the future.

 

(b) Non-Solicitation.
Executive will not, during the Restricted Period, directly or indirectly (whether as an owner, partner, shareholder, member, agent, officer,
director, manager, employee, independent contractor, consultant, or otherwise) with or through any individual or entity:

 

(i) solicit
for employment or engagement, or identify for another person or entity to employ, engage or solicit for employment or engagement, any
individual who is, or was at any time during the twelve (12) month period immediately preceding any such action, an employee of the Company,
or otherwise seek to adversely influence or alter any such employee’s relationship with the Company;

 

(ii) employ
or engage any individual who is, or was at any time during the twelve (12) month period immediately preceding any such action, an employee
of the Company; or

 

(iii) solicit
or encourage any individual or entity that is, or was during the twenty-four (24) month period immediately preceding any such action,
a current or prospective customer, supplier or vendor of the Company (A) to terminate or otherwise adversely alter his, her or its relationship
with the Company or (B) for any purposes which are competitive with Company’s business.

 

    6

     

    

 

(c) Executive
Written Materials. All files, letters, memos, reports, sketches, drawings, laboratory notebooks, testing results, or other written
materials developed or created by the Executive in furtherance of performing his services under this Agreement (collectively, “Executive
Written Materials”) shall be the property of the Company and shall be delivered to the Company upon request. The Executive shall
be entitled to retain an archival copy of the Executive Written Materials subject to his confidentiality obligations hereunder.

 

(d) Exclusivity;
Non-Compete. During the Term and (except in the case of the Executive’s death, permanent disability, or termination by the Company
without Cause) the Restricted Period, the Executive shall not provide services or assistance to, or have any ownership or other financial
interest in, any enterprise engaged in any activity competitive with any then current or contemplated (and known to Executive at the time
of such termination) technology or products of the Company.

 

(e) Scope/Severability.
The parties acknowledge that the Company’s business is and will be conducted throughout the Restricted Territory and thus the covenants
in this Section 9 would be ineffective if the covenants were to be limited to a particular geographic area within the Restricted
Territory. If any court of competent jurisdiction at any time deems the Restricted Period too lengthy, or the Restricted Territory too
extensive, or any of the covenants set forth in this Section 9 otherwise not fully enforceable, the other provisions of this Section
9, and this Agreement in general, will nevertheless stand and to the full extent consistent with law continue in full force and effect,
and it is the intention and desire of the parties that the court treat any provisions of this Agreement which are not fully enforceable
as having been modified to the extent deemed necessary by the court to render them reasonable and enforceable and that the court enforce
them to such extent (for example, that Restricted Territory be deemed to comprise the largest territory permissible by law under the circumstances
but not in excess of the territory provided for herein).

 

10. Equitable
Remedies. Executive acknowledges and agrees that the agreements and covenants set forth in Section 9 of this Agreement are
reasonable and necessary for the protection of the Company’s business interests, that irreparable injury will result to the Company
if Executive breaches any of the terms of said covenants, and that in the event of Executive’s actual or threatened breach of any
such covenants, the Company will have no adequate remedy at law. Executive accordingly agrees that, in the event of any actual or threatened
breach by Executive of any of said covenants, the Company will be entitled to immediate injunctive and other equitable relief, without
bond and without the necessity of showing actual monetary damages or the necessity of showing that monetary damages are an inadequate
remedy. Nothing in this Section 10 will be construed as prohibiting the Company from pursuing any other remedies available to it
for such breach or threatened breach, including the recovery of any damages that it is able to prove.

 

11. Assistance.
From and after the date hereof (including after the termination of Executive’s employment with the Company for any reason), Executive
shall, upon reasonable notice, furnish the Company with such information as may be in Executive’s possession or control, and cooperate
with the Company, as the Company may reasonably request, in connection with any litigation, claim, or other dispute in which the Company
is or may become a party, provided that following termination of Executive’s employment with the Company, any such assistance shall
not unreasonably interfere with Executive’s personal or business affairs. The Company shall reimburse Executive for all reasonable
out-of-pocket expenses incurred by Executive in fulfilling Executive’s obligations under this Section 11.

 

    7

     

    

 

12. Definitions.
The following terms used herein shall have the definitions set forth below:

 

“Restricted Period”
means twelve (12) months following the date of termination.

 

“Restricted Territory”
means worldwide.

 

13. Effect
of Prior Agreements. Unless otherwise provided herein, this Agreement contains the entire understanding between the Company and Executive
relating to the subject matter hereof and, as of the Effective Date, will supersede any prior employment agreement between Executive and
the Company and any other agreement relating to the subject matter hereof between Executive and the Company. Executive acknowledges that
he is not relying and has not relied on any oral or written statements, promises, representations or warranties (whether made by the Company
or any equity holder, director, officer, employee, agent or other representative of the Company or otherwise) that are not expressly set
forth in this Agreement and those documents expressly referred to herein. For the avoidance of doubt, the non-solicitation and other restrictive
covenants contained in this Agreement shall be in addition to, and not in lieu of, and shall not in any way limit or be limited by, any
restrictive covenant covering similar subject matter contained in any other agreement to which Executive is a party, including but not
limited to, any asset purchase agreement, equity subscription agreement or stockholder or operating agreement with respect to any equity
interest in the Company.

 

14. Confidential
Information and Intellectual Property Assignment Agreement. Notwithstanding anything herein to the contrary, the terms of that certain
Confidential Information and Intellectual Property Assignment Agreement, dated as of the date hereof, between Executive and the Company
are hereby incorporated by reference.

 

15. Withholding
and Deductions. All amounts payable to Executive (or his estate, as applicable) pursuant to this Agreement shall be subject to such
withholding and deductions by the Company as required by law and the applicable benefit plans of the Company.

 

16. Code
Section 409A. The Company and Executive agree that this Agreement and the rights granted to Executive hereunder are intended to meet
the requirements of paragraphs (2), (3) and (4) of Section 409A(a)(1)(A) of the Code. Accordingly, the parties agree that they shall negotiate
in good faith to revise any provisions of this Agreement that might otherwise fail to meet the requirements of paragraphs (2), (3) and
(4) of Section 409A of Code. However, the Company does not guarantee any particular tax effect of payments under this Agreement, and in
no event shall the Company have any obligation to “gross-up” or otherwise compensate Executive with respect to any tax effect
of payments under this Agreement. With respect to any reimbursement of expenses of, or any provision of in-kind benefits to, Executive,
as specified under this Agreement, such reimbursement of expenses or provision of in-kind benefits shall be subject to the following conditions:
(1) the expenses eligible for reimbursement or the amount of in-kind benefits provided in one taxable year shall not affect the expenses
eligible for reimbursement or the amount of in-kind benefits provided in any other taxable year, except for any medical reimbursement
arrangement providing for the reimbursement of expenses referred to in Section 105(b) of the Code; (2) the reimbursement of an eligible
expense shall be made no later than the end of the year after the year in which such expense was incurred; and (3) the right to reimbursement
or in-kind benefits shall not be subject to liquidation or exchange for another benefit. “Termination of employment,” or words
of similar import, as used in this Agreement means, for purposes of any payments under this Agreement that are payments of deferred compensation
subject to Section 409A, Executive’s “separation from service” as defined in Section 409A. For purposes of Section 409A,
the right to a series of installment payments under this Agreement shall be treated as a right to a series of separate payments.

 

    8

     

    

 

17. Modification
and Waiver. This Agreement may not be modified or amended, nor may any provisions of this Agreement be waived, except by an instrument
in writing signed by the parties hereto. No written waiver will be deemed to be a continuing waiver unless specifically stated therein,
and each such waiver will operate only as to the specific term or condition waived and shall not constitute a waiver of such term or condition
for the future or as to any act other than that specifically waived. No failure of any party hereto to exercise any right or remedy given
to such party under this Agreement or otherwise available to such party hereto or to insist upon strict compliance by any other party
hereto with its or his obligations hereunder, and no custom or practice of the parties in variance with the terms hereof, shall constitute
a waiver of any party’s right to demand exact compliance with the terms hereof.

 

18. Indemnification.
The Company hereby indemnifies Executive to the maximum extent provided in the Company’s By-Laws and organizational documents, as
currently in effect. Executive shall be entitled to coverage under the directors and officers liability insurance on terms no less favorable
to him in any respect than the coverage then being provided to any other current or former director or officer of the Company and which
the Company shall maintain with minimum coverage of One Million Dollars ($1 million).

 

19. Severability.
Without limiting Section 9(c): (i) if, for any reason, any provision of this Agreement is held invalid, such invalidity will not
affect any other provision of this Agreement, and each provision will, to the full extent consistent with law, continue in full force
and effect and (ii) if any provision of this Agreement is held invalid in part, such invalidity will in no way affect the rest of such
provision, and the rest of such provision, together with all other provisions of this Agreement, will, to the full extent consistent with
law, continue in full force and effect.

 

20. Notices.
Any notice, request, instruction or other document to be given hereunder by any party hereto to any other party hereto shall be in writing
and shall be given by delivery in person, by facsimile transmission, by email, by overnight courier or by registered or certified mail,
postage prepaid to the address set forth below or such other address as such party may give to the other parties by notice pursuant to
this Section 20. Notice shall be deemed given on (a) the date such notice is personally delivered, (b) the date of scheduled delivery
if sent by overnight courier, or (c) the date such notice is transmitted by facsimile or email, if such transmission is prior to 5:00
p.m. Eastern Time on a business day, or the next succeeding business day if such transmission is after 5:00 p.m. Eastern Time.

 

    9

     

    

 

	 	
    If to the Board or the Company:
	
    Orchestra BioMed, Inc.

    150 Union Square Drive

    New Hope, PA 18938

    E-Mail: [Omitted pursuant to Item 601(a)(6)]

	 	
     

    If to Executive:
	
     

    Yuval Mika

    Address: [Omitted pursuant to Item 601(a)(6)]

    E-Mail: [Omitted pursuant to Item 601(a)(6)]

 

21. Third
Party Beneficiaries. Nothing herein expressed or implied is intended or shall be construed to confer upon or give to any person or
entity, other than the parties to this Agreement, their respective permitted successors and assigns, any rights or remedies under or by
reason of this Agreement.

 

22. Headings.
The headings and other captions in this Agreement are included solely for convenience of reference and will not control the meaning and
interpretation of any provision of this Agreement.

 

23. Governing
Law. The validity, interpretation, performance, and enforcement of this Agreement will be governed by the laws of the State of Delaware,
without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction)
that would cause the application of the laws of any jurisdiction other than the State of Delaware. Executive and the Company hereby irrevocably
submit to the exclusive jurisdiction of any state or federal court located in the State of Delaware, over any suit, action or proceeding,
whether at law or in equity, arising out of or relating to or concerning this Agreement. Each party hereto agrees that it will not challenge
the applicability of the laws of the State of Delaware, without giving effect to any choice of law or conflict of law provision or rule
(whether of the State of Delaware or any other jurisdiction), in any suit or proceeding regarding the validity, interpretation, performance,
or enforcement of any provision of this Agreement, regardless of who initiates such suit or proceeding.

 

24. Waiver
of Jury Trial. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING
OUT OF OR RELATED TO THIS AGREEMENT OR THE MATTERS CONTEMPLATED HEREBY, PROVIDED, HOWEVER, THAT THE PARTIES HERETO AGREE THAT SUCH WAIVER
SHALL NOT BE DEEMED TO CONSTITUTE A WAIVER OF ADJUDICATION BY A COURT HAVING APPROPRIATE JURISDICTION.

 

25. Non-Assignability/Binding
Effect. This Agreement shall not be assignable by either party without the prior written consent of the other party. This Agreement
will be binding upon and inure to the benefit of Executive, the Company, and their respective successors and permitted assigns.

 

26. Construction.
The parties hereto have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question
of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties hereto, and no presumption
or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement.

 

27. Survival.
Termination of the Employment Period in accordance with Section 8 will not affect the provisions of Section 3(a) or Sections
9 through 28 of this Agreement, each of which shall survive such termination.

 

28. Counterparts.
This Agreement may be executed in separate counterparts and may be executed and delivered by facsimile or other electronic delivery, each
of which is deemed to be an original and all of which, taken together, constitute one and the same agreement.

 

[Remainder of Page Intentionally Blank; Signature
Page to Follow]

 

    10

     

    

 

IN WITNESS WHEREOF, the Company
has caused this Agreement to be executed by its duly authorized officer, and Executive has signed this Agreement, as of the date first
above written.

 

	 	ORCHESTRA BIOMED, INC.:
	 	 	 
	 	By:	/s/ Todd Van Emburgh 
	 	Name: 	Todd Van Emburgh
	 	Title:	President
	 	 	 
	 	EMPLOYEE:
	 	 	 
	 	/s/ Yuval Mika 
	 	Yuval Mika

 

[Signature Page to Employment Agreement]

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