Document:

Exhibit 10.17

 

CONSULTING SERVICES AGREEMENT

Between

PaxMedica, Inc. and 

Stephen Douglas Sheldon

 

 

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

 

		Agreement	

 

		1.	Performance; Independent Contractor.

 

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

 

		2.	Consideration 

 

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

 

		3.	Representations and Warranties of COMPANY.

 

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

 

		4.	Representations and Warranties of CONSULTANT.

 

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

 

 

		5.	Confidentiality and Nondisclosure.

 

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

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

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

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

 

    1 

     

    

 

		6.	Return
of Materials

 

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

 

		7.	Intellectual Property

 

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

 

		8.	Term and Termination.

 

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

 

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

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

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

 

		9.	Indemnification.

 

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

 

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

 

		10.	Notices.

 

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

 

		11.	Counterparts; Facsimile Signatures.

 

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

 

		12.	Injunctive Relief, Governing Law and Limitations of Liability

 

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

 

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

 

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

 

		13.	Assignment.

 

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

 

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

 

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

 

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Exhibit A

 

Services and Compensation

 

		I.	Services

 

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

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

 

	II.	Compensation
	 	 

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

 

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

 

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

 

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

 

    5Exhibit 10.18

 

EXCHANGE AGREEMENT

 

This EXCHANGE AGREEMENT (this
 “Agreement”) is made and entered into effective as of [•], by and between PAXMEDICA, INC., a Delaware corporation
(the “Company”) and [•] (the “Holder”).

 

W I T N E S S E T H :

 

WHEREAS, the Holder is the
holder of [●] shares of preferred stock of the Company (the “Holder Preferred”);

 

WHEREAS, the Holder is willing
to accept the Securities (as defined in this Agreement) (the “Exchange”) in exchange for the Holder Preferred pursuant
to the terms of this Agreement;

 

WHEREAS, the Exchange is being
made in reliance upon the exemption from registration provided by Section 4(a)(2) of the Securities Act.

 

WHEREAS, the Company and the
Holder desire to enter into this Agreement to evidence and set forth the terms of the Exchange; and

 

NOW, THEREFORE, in consideration
of the mutual covenants herein contained, and intending to be legally bound hereby, the parties hereto, being duly sworn, do covenant,
agree and certify as follows:

 

1.       Recitals.
The parties hereto acknowledge and agree that the foregoing recitals are true and accurate and constitute part of this Agreement to the
same extent as if contained in the body hereof.

 

2.       Definitions.
In addition to the terms defined elsewhere in this Agreement: the following terms have the meanings set forth in this Section 2:

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control
with a Person, as such terms are used in and construed under Rule 405 under the Securities Act.

 

“Board of Directors”
means the board of directors of the Company.

 

“Common Stock”
means the common stock of the Company, par value $0.0001 per share, and any other class of securities into which such securities may hereafter
be reclassified or changed.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company,
joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

     

     

    

 

“Registration Statement”
means that certain Registration Statement of the Company (Reg. No. 333-239676) on Form S-1 initially filed with the SEC on July 2, 2020.

 

“Securities”
has the meaning set forth in the Preamble of this Agreement.

 

“Securities Act”
means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

3.       Exchange
and Satisfaction. Effective immediately prior the effectiveness of the Registration Statement, the Holder Preferred shall automatically
be surrendered in the entirety by the Holder and exchanged for [•] shares of Common Stock (the “Securities”) pursuant
to the terms of this Agreement. Notwithstanding anything to the contrary herein, if the Registration Statement is not declared effective
by [•], this Agreement shall be null and void and of no further force or effect.

 

4.       Representations
and Warranties of the Company. The Company hereby makes the following representations and warranties to Holder:

 

(a)              
Authorization; Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate
the transactions contemplated by this Agreement and otherwise to carry out its obligations hereunder. The execution and delivery of this
Agreement by the Company and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all
necessary action on the part of the Company and no further action is required by the Company, the Board of Directors or the Company’s
stockholders in connection herewith or therewith. This Agreement have been (or upon delivery will have been) duly executed by the Company
and, when delivered in accordance with the terms hereof and thereof, will constitute the valid and binding obligations of the Company
enforceable against the Company in accordance with their terms, except: (i) as limited by general equitable principles and applicable
bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of Holders’ rights
generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies
and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

 

(b)              
Issuance of the Securities. The Securities are duly authorized and, when issued and paid for in accordance with this Agreement,
will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company. The shares of Common
Stock underlying the Securities (if any), when issued in accordance with the terms of the Securities, will be validly issued, fully paid
and nonassessable, free and clear of all Liens imposed by the Company other than restrictions on transfer required by law. The Holder’s
holding period with respect to such Securities and the Common Stock underlying the Securities shall tack back to the original acquisition
date of the Holder Preferred pursuant to Section 3(a)(9) of the Securities Act.

 

    2 

     

    

 

5.       Representations
and Warranties of the Holder. Holder hereby represents and warrants to the Company as follows:

 

(a)       Holder’s
Status. At the time the Holder was offered the Securities, it was, and as of the date hereof it is, an “accredited investor”
as defined in Rule 501(a) under the Securities Act.

 

(b)       Experience
of Holder. Holder, either alone or together with its representatives, has such knowledge, sophistication and experience in business
and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Securities, and has
so evaluated the merits and risks of such investment. Such Holder is able to bear the economic risk of an investment in the Securities
and, at the present time, is able to afford a complete loss of such investment.

 

8.       Further
Assurances. The Holder shall hereafter, without further consideration, execute and deliver promptly to the Company such further
consents, waivers, assignments, endorsements and other documents and instruments, and to take all such further actions, as the Company
may from time to time reasonably request with respect to the Exchange and the consummation in full thereof. The Company shall hereafter,
without further consideration, execute and deliver promptly to the Holder such further consents, waivers, assignments, endorsements and
other documents and instruments, and to take all such further actions, as the Holder may from time to time reasonably request with respect
to the Exchange and the consummation in full thereof.

 

9.       Successors
and Assigns. This Agreement is binding upon, and shall inure to the benefit of, the parties hereto and their respective successors
and assigns, provided, however, that any assignment of the rights and benefits hereunder by the Company must be agreed to in a signed
writing by the Holder.

 

10.       Counterparts.
This Agreement may be executed in multiple counterparts, each of which shall be deemed an original and all of which, when taken together,
shall constitute one and the same instrument.

 

11.       Governing
Law; Jurisdiction. This Agreement and its validity, construction and performance shall be governed in all respects by the laws
of the State of Delaware, applicable to agreements to be performed wholly within the State of Delaware. The Company and the Holder hereby
irrevocably consent and submit to the exclusive jurisdiction of any federal or state court located within the State of Delaware over any
dispute arising out of or relating to this Agreement and each party hereby irrevocably agrees that all claims in respect of such dispute
or any legal action related thereto may be heard and determined in such courts. Each of the Company and the Holder hereby irrevocably
waives, to the fullest extent permitted by applicable law, any objection that it may now or hereafter have to the laying of venue of any
such dispute brought in such court or any defense of inconvenient forum for the maintenance of such dispute.

 

12.       Notice.
Any notice or other communication given hereunder shall be deemed sufficient if in writing and hand delivered or sent by certified mail
(return receipt requested, postage prepaid), or overnight mail or courier, to such address(es) identified in such party’s filings
with its respective state of incorporation or formation. Notices shall be deemed to have been given on the date of mailing, except notices
of change of address, which shall be deemed to have been given when received.

 

[signature page to follow]

 

    3 

     

    

 

IN WITNESS WHEREOF, the parties
hereto have affixed their hands and seals by signing this Agreement as of the day and year first above written.

 

	 	Company:
	 	 
	 	PAXMEDICA, INC.
	 	 
	 	 
	 	By:	               
	 	Name:
	 	Title:
	 	 
	 	 
	 	Holder:
	 	 
	 	 
	 	 
	 	Name:

 

    4

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