Document:

Document

SEVERANCE AGREEMENT AND RELEASE

THIS AGREEMENT is made and entered into by and between THE MANITOWOC COMPANY, INC. with its principal office at 2400 South 44th Street, Manitowoc, Wisconsin and CARL LAURINO (“Employee”). For purposes of this Agreement, the term “Company” and “Manitowoc” means and includes The Manitowoc Company, Inc., its successors, assigns, and spin offs, any parent, subsidiary or division of Manitowoc, and any other affiliated entity under common control with Manitowoc, whether now existing or hereafter formed or acquired. 

WHEREAS, Employee has decided to resign from his employment and all offices and directorships with Company and its affiliates, including Senior Vice President and Chief Financial Officer of the Company; and

WHEREAS, Employee and the Company have agreed to a severance package including a release of all claims.

NOW, THEREFORE, in consideration of the foregoing, the parties hereto agree as follows:

1.    Termination.  Employee’s employment and all offices and directorships with the Company and its affiliates shall terminate effective on June 30, 2016 (the “Termination Date”). Employee agrees that Employee will not apply for employment with the Company or any of its related entities at any time in the future and Employee waives any right Employee may have to be employed by the Company and any of its related entities at any time in the future.  

2.    Execution.  Employee agrees that he will not sign this Agreement until on or after the Termination Date. Notwithstanding the foregoing, Employee acknowledges and agrees that this Paragraph 2 does not in any way alter the terms and conditions set forth in Paragraph 19 of this Agreement.  Violation of the terms of this Paragraph shall render the Agreement void.

3.    Compensation and Benefits.  Employee shall receive the following as consideration for the execution of this Agreement, compliance with the terms of this Agreement, and waiver of the legal rights set forth herein:

(a)    Effective seven (7) calendar days after Employee executes this Agreement or Employee’s Termination Date, and subject to adjustment as provided below, the Company agrees to pay Employee One Million Two Hundred Eighteen Thousand Six and 00/100 Dollars ($1,218,006.00) as follows: (1) the Company will pay Employee biweekly payments of Thirty-One Thousand Two Hundred Thirty and 92/100 Dollars ($31,230.92) each, for each two-week pay period beginning on Employee’s Termination Date and continuing through December 31, 2016 (the “Severance Pay Period”), provided that the initial payment and final payment may be a greater or lesser amount so as to conform with the Company’s regular biweekly payroll period; and (2) the Company will pay Employee the amount remaining after making the payments set forth in sub-section (1) of this sub-paragraph, in a lump sum payment to be made between January 1, 2017 and January 15, 2017. This amount will be paid on the Company’s regular biweekly payroll period and is subject to federal and state withholdings.  

(b)    As of the Termination Date, any group health insurance coverage and/or dental reimbursement coverage Employee may have with the Company will be terminated and applicable COBRA coverage will be made available to Employee. The available coverage is the same coverage which is available for all non-represented employees of the Company. Beginning July 1, 2016, Employee understands that Employee is eligible to elect continued health and/or dental insurance coverage under COBRA.  If Employee elects continued coverage under COBRA, the Company agrees to reimburse Employee for 80% of the monthly COBRA cost upon receipt of proof of payment from July 1, 2016, through December 31, 2017.  To be eligible for reimbursement, Employee must submit proof of payment within 30 days of payment. Employee understands it is Employee’s sole obligation to make these COBRA payments on a monthly basis in order to continue Employee’s health or dental insurance benefits and that failure by Employee to make these payments timely will result in cessation of benefits.  If Employee obtains other employment prior to the end of the Severance Pay Period which offers any of such insurance coverage, the Company’s obligation to reimburse Employee for COBRA payments will be terminated.  Employee agrees to furnish promptly to the Company all documentation required and/or reasonably requested by the Company regarding subsequent benefit eligibility.

(c)    The payments provided in Section 3(a) above are intended to also compensate Employee for certain payments or benefits that Employee might have received under the Company’s Short-Term Incentive Plan (“STIP”) during the Severance Pay Period.  The Company will also pay Employee a pro rata share of any 2016 STIP bonus.  The pro rata STIP bonus will be equal to one-half (1/2) of the STIP bonus that Employee would have received based upon actual 2016 performance factors applied when the STIP awards are finalized in early 2017.   This pro rata STIP payment will be paid in 2017 at the same time that STIP payments for the 2016 performance year, if any, are paid or would have been paid to then-active employees of the Company. Employee acknowledges that he will not qualify for any other benefits under the Company’s STIP program for 2016 and/or 2017 because his Termination Date preceded year-end in 2016.  Employee waives all claims to any additional STIP benefits.

(d)     Employee will receive payment for any unused 2016 vacation allowance.  This will be paid out in a lump sum within thirty (30) days of Employee executing this Agreement, and will be subject to federal and state withholdings. 

(e)    Employee will be entitled to receive any vested retirement plan benefits that Employee has accrued through the Termination Date. For purposes of this provision, a retirement plan shall mean any retirement plan of the Company qualified under Section 401(a) of the Internal Revenue Code of 1986, as amended (the “Code”), The Manitowoc Company, Inc. Deferred Compensation Plan (“Deferred Compensation Plan”) and any benefits that Employee has accrued under the Company’s Supplemental Executive Retirement Plan (“SERP”) based upon all services provided and Compensation paid through June 30, 2016.  Such benefits shall be calculated and paid in accordance with the terms of such plan(s).  By way of illustration:  

		
	i.
	Employee’s Deferred Compensation Plan benefit consists of non-grandfathered amounts.  Any payment of non-grandfathered amounts will be delayed for six (6) months from Employee’s Termination Date to comply with Internal Revenue 

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Code Section 409A, during which time, Employee’s account will continue to be adjusted for earnings and losses.

		
	ii.
	Employee’s estimated SERP benefit, as of June 30, 2016 will be $2,124,274 in non-grandfathered benefits.  Non-grandfathered benefits for which no prior distribution election was made are paid in a single lump-sum, but such payment will be delayed for six (6) months from Employee’s Termination Date to comply with Internal Revenue Code Section 409A, during which time, Employee’s benefits will be credited with nine percent (9%) interest pursuant to the SERP.  

 
(f)    The Company will provide outplacement services, through an outplacement service selected by the Company, until Employee secures other employment.

(g)    The Company will reimburse Employee for costs associated with the preparation of Employee’s personal income taxes for 2016; provided, however, this benefit shall not exceed $10,000.

(h)    The Company will allow Employee to retain the cellular phone and phone number issued to him the Company.

(i)With respect to services provided by Employee on or prior to the Termination Date, the Company shall maintain Director and Officer insurance coverage for Employee consistent with that provided to other Company directors and officers, and provide Employee with indemnification as permitted by law. Specifically, the Company will secure appropriate tail coverage in order to protect the Employee for actions while he rendered his services as a Director on the Board of the Company. 

4.    Equity Compensation.  In accordance with the terms of The Manitowoc Company, Inc. 2003 Incentive Stock and Awards Plan and The Manitowoc Company, Inc. 2013 Omnibus Incentive Plan (each a “Plan”), the individual award agreements between Employee and Company and subsequent action by the Company’s Compensation Committee:

(a)All currently outstanding equity grants shall be deemed fully vested on the Termination Date with the exception of any grant(s) received by Employee in the 2016 calendar year, which, if granted in the past or the future, will be immediately forfeited as of the Termination Date. 

		
	i.
	Employee will have until June 30, 2018, to exercise all vested awards that are stock options for which the award price is not less than the market price on the Termination Date. 

		
	ii.
	Any Incentive Stock Options (“ISOs”) not exercised within three (3) months of the Termination Date will be converted into Non-Qualified Stock Options (“NQSOs”).

		
	iii.
	Any options not exercised by June 30, 2018, will be forfeited.

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	iv.
	Restricted Stock that has been vested will be transferred immediately, without restrictions, upon expiration of the Revocation Period described in Paragraph 20 below.

		
	v.
	Restricted Stock Units will be paid out as cash payments, equal to the amount calculated at 100% of the target award, at such time as the payments would have been paid if Employee had remained employed by the Company.

(b)The parties agree that the schedule on the next page represents Employee’s outstanding equity grants by type and date, as of the date of this Agreement, with the exception that the amounts and numbers in the schedule represent Employee’s equity grants as expressed in Manitowoc shares and have not yet been adjusted based on the post-spinoff calculations:
	
								
	AWARD DATE
	AWARD TYPE
	ADJUSTED AWARD PRICE POST-SPLIT
	ORIGINAL AWARD PRICE
	SHARES AWARDED
	SHARES VESTED
	EXERCISABLE UNTIL JUNE 30, 2018
	FORFEIT ON TERMINATION

	05/03/06
	ISO
	$5.3270
	 
	3,830
	3,830
	3,830
	0

	02/27/07
	ISO
	$6.0240
	$29.5150
	3,388
	3,388
	3,388
	0

	02/15/08
	ISO
	$7.9864
	$39.1300
	2,555
	2,555
	2,555
	0

	 
	 
	 
	 
	 
	 
	 
	 

	05/03/06
	NQ
	$5.3270
	 
	43,370
	43,370
	43,370
	0

	02/27/07
	NQ
	$6.0240
	$29.5150
	24,212
	24,212
	24,212
	0

	02/15/08
	NQ
	$7.9864
	$39.1300
	15,845
	15,845
	15,845
	0

	02/24/09
	NQ
	$0.9001
	$4.4100
	75,300
	75,300
	No Extension
	0

	02/11/10
	NQ
	$2.3165
	$11.3500
	80,000
	80,000
	No Extension
	0

	02/14/11
	NQ
	$4.0371
	$19.7800
	63,600
	63,600
	63,600
	0

	02/28/12
	NQ
	$3.3227
	$16.2800
	45,360
	45,360
	45,360
	0

	02/26/13
	NQ
	$3.7024
	$18.1400
	30,500
	22,875
	30,500
	0

	02/14/14
	NQ
	$5.9332
	$29.0700
	22,712
	11,356
	22,712
	0

	02/17/15
	NQ
	$4.4494
	$21.8000
	42,180
	10,545
	42,180
	0

	03/28/16
	NQ
	$4.3500
	$4.3500
	193,317
	0
	0
	193,317

	 
	 
	 
	 
	 
	 
	 
	 

	04/08/15
	RSA
	$0.0000
	N/A
	32,635*
	0
	32,635
	0

	 
	 
	 
	 
	 
	 
	 
	 

	02/14/14
	RSU
	$0.0000
	N/A
	17,034*
	0
	17,034
	0

	02/17/15
	RSU
	$0.0000
	N/A
	23,170*
	0
	23,170
	0

	 
	 
	 
	 
	 
	 
	 
	 

	03/28/16
	PSA/RSU
	$0.0000
	N/A
	90,814*
	0
	0
	ALL

*Target award, based upon 100% of performance target

5.    No Other Obligations.  Employee acknowledges and agrees that aside from Paragraphs 3 and 4, there are no other amounts, obligations or benefits due Employee by the Company.  Further, Employee acknowledges and agrees that Employee is not eligible for any separation or termination benefit other than as set forth herein and Employee acknowledges that Employee’s right to any benefit or payment authorized under this Agreement is conditioned upon:      (a) Employee’s execution of the Agreement; (b) Employee not revoking the Agreement as described 

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in Paragraph 20 of the Agreement; and (c) Employee’s compliance with all obligations ascribed to Employee under this Agreement.

6.    Employment Reference.  The Company agrees that all inquiries to the Company regarding Employee’s employment shall be directed and responded to by the Senior Vice President of Human Resources and Administration for The Manitowoc Company, Inc., and shall reference only Employee’s dates of employment and positions held.

7.    Non-Disclosure of Confidential Information.  Employee acknowledges and agrees that Employee’s work required access to Confidential Information of the Company, and that the Company’s Confidential Information is valuable proprietary information belonging to the Company. Maintaining the confidentiality of such information is crucial to the Company’s present and future success. The parties acknowledge and agree that protection of the Company’s Confidential Information constitutes a legitimate protectable interest of the Company. Employee acknowledges and agrees that the Company would not have been willing to provide Employee access to this Confidential Information without the assurance of reasonable protection against any use of this information by Employee in a manner inconsistent with the Company’s best interests. Therefore, the parties agree as follows:

(a)Employee agrees that a duty to protect the Company’s Confidential Information is imposed upon Employee by law. “Confidential Information” includes, but is not limited to, trade secrets, design documents, copyright material, inventions (whether patentable or not), processes, marketing data, business strategies, product information (including, without limitation, any product designs, specifications, capabilities, drawings, diagrams, blueprints, models and similar items), customer and prospective customer lists, supplier and vendor lists, manufacturing procedures, methods, equipment, compositions, technology, formulas, know-how, research and development programs, strategic marketing plans, company-developed sales methods, customer usages and requirements, computer programs, business plans, company policies, personnel-related information and Company employee Personal Data (defined as any individually identifiable information about a natural person or from which a natural person reasonably could be identified) obtained from the Company’s confidential personnel files or by virtue of employee's performance of assigned job responsibilities, pricing and nonpublic financial information and records, software and similar information, in any form (whether oral, electronic, written, graphic or other printed form or obtained from access to or observation of the Company’s (and/or any affiliate’s) facilities or operations), which is not generally known by or readily available to the public at the time of disclosure or use.

(b)In addition, and without limiting the duties imposed on Employee by law, Employee agrees that, for a period of two (2) years following the termination of Employee’s employment, Employee will not disclose to any third party or use, directly or indirectly, any Confidential Information of the Company, except as required by law or with the express written consent of the Company. Employee agrees that, in the event any person or entity seeks to legally compel Employee to disclose any such Confidential Information of the Company, Employee shall provide the Company with prompt written notice within three (3) calendar days so that the Company may, in its sole discretion, seek a protective order or other appropriate remedy and/or waive compliance with the provisions of this Agreement. In any event, Employee agrees to furnish only that portion of the Confidential Information of the Company which is legally required to be disclosed, and will exercise 

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Employee’s best efforts to obtain commercially reasonable assurances that confidential treatment shall be accorded to such Confidential Information of the Company. 

(c)Employee also acknowledges that certain of the Company’s Confidential Information is a “trade secret” as that term is defined in Section 134.90(1)(c) of the Wisconsin Uniform Trade Secrets Act. Employee agrees that Employee shall never disclose to a third party or use any trade secrets of the Company. Employee agrees that nothing in this Agreement shall be construed to limit or negate the common law of torts or trade secrets where it provides the Company with broader protection than that provided herein.

(d)Employee acknowledges that all original works of authorship made within the scope of Employee’s employment and which are protectable by copyright are “works made for hire” as that term is defined in the United States Copyright Act (17 USCA § 101). 

(e)The Company has informed Employee that it has (and may have in the future) duties to third parties (including the Company’s customers and vendors) to maintain information in confidence and secrecy. Employee agrees to be bound by (and to adhere to) the Company’s duties of confidentiality to third parties. Employee further agrees that Employee will carefully preserve, in accordance with the Company’s policies and procedures, all documents, records, correspondence, prototypes, models and other written or tangible data relating to Inventions or Confidential Information in every form coming into Employee’s possession (the “Records”). Employee will return all such Records, along with any copies of them, to the Company upon the Termination Date.

(f)Employee agrees that any breach by Employee of any aspect of this Paragraph 7 will entitle the Company to any and all relief provided for under Paragraph 12 of this Agreement, including immediate cessation of any severance payments and/or benefits under this Agreement and the return of any severance payments and/or benefits previously made to or received by Employee pursuant to this Agreement.

8.    Company Property.  Employee acknowledges and agrees that Employee’s work required access to property of the Company.  The parties acknowledge and agree that protection of the Company’s property constitutes a legitimate protectable interest of the Company.  Therefore, the parties agree as follows:

(a)Any and all Company property shall, at all times, remain the property of the Company.  Any Company property over which Employee has any control, is in Employee’s possession or which was in Employee’s possession or was otherwise entrusted to Employee for use in Employee’s employment must and will be turned over and must remain on Company premises immediately on the Termination Date. Any Company property over which the Employee has any control, was in the Employee’s possession or which was otherwise entrusted to Employee that is not on Company premises as of the Termination Date will be returned to the Company as soon as possible following the Termination Date.  Employee agrees to provide all codes, passwords, usernames, or other identification or information necessary to access any of the Company’s computer files, e-mail accounts, or voicemail systems and agrees to cooperate with the Company in an effort to transfer any files, data, systems, or other information to the Company or its designated agent or employee.  

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Employee agrees that, as of the date of Employee’s termination, Employee will not access or attempt to access any computer, e-mail, voicemail, or other system of the Company.  

(b)Employee understands and agrees that, during the course of Employee’s employment, Employee had access to the Company’s Proprietary Information. “Proprietary Information” is information developed by or for the Company, which is used by the Company, but does not rise to the level of Confidential Information. Proprietary Information includes, but is not limited to, general policies, operating manuals, forms, spreadsheets, slides, Power Point presentations, graphs, and other items used internally by the Company, which do not contain Confidential Information. Employee acknowledges and agrees that Proprietary Information was developed, created, and/or modified on Company work time and/or at the Company’s expense and, as such, has value and constitutes Company property. Employee acknowledges and agrees that, following the termination of Employee’s employment, Employee is not entitled to disclose, use, possess, and/or have access to any Company property including, but not limited to Proprietary Information. Employee understands and agrees that, following the termination of Employee’s employment, it shall be a material breach of this Agreement to request and/or receive Company property from any source without the express written permission of the Senior Vice President of Human Resources and Administration for The Manitowoc Company, Inc. In the event Employee receives such Company property from any source, which was not requested by Employee, Employee may rectify the aforementioned breach by immediately notifying the Senior Vice President of Human Resources and Administration for The Manitowoc Company, Inc. of such receipt, along with an explanation of the manner in which Employee received said Company property and prompt return of said Company property.

(c)Employee agrees that any breach by Employee of any aspect of this Paragraph 8 will entitle the Company to any and all relief provided for under Paragraph 12 of this Agreement, including immediate cessation of any severance payments and/or benefits under this Agreement and the return of any severance payments and/or benefits previously made to or received by Employee pursuant to this Agreement.

9.    Non-Solicitation of Employees. Employee understands and agrees that the Company’s relationship with its employees is one of the Company’s most valuable assets. The relationships that the Company has developed with its employees are crucial to the Company’s present and future success. Employee acknowledges and agrees that the Company’s employee relationships are established and maintained at great expense and investment, and constitute a legitimate protectable interest of the Company. Employee acknowledges and agrees that assurance of reasonable protection against any interference by Employee with the Company’s relationships with its employees in a manner inconsistent with the Company’s best interests is warranted. Therefore, the parties agree as follows: 

(a)Employee agrees that, for a period of two (2) years following the termination of Employee’s employment, Employee will not interfere with or attempt to impair the relationship between the Company, and/or any one or more entities comprised within the definition of the Company as of the effective date of this Agreement, and any of its employees by attempting, directly or indirectly, to solicit, entice, or otherwise induce any employee to terminate his/her association with the Company to accept employment with a competitor of the Company. The term “solicit, 

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entice or induce” includes, but is not limited to, the following: (i) communicating with an employee of the Company relating to possible employment with a competitor of the Company; (ii) offering bonuses or additional compensation to encourage employees of the Company to terminate their employment to accept employment with a competitor of the Company; (iii) referring employees of the Company to personnel or agents employed or engaged by competitors of the Company; or (iv) referring personnel or agents employed or engaged by competitors of the Company to employees of the Company. Employee acknowledges and agrees that this restriction does not prevent any competitor of the Company from hiring any employees of the Company without Employee’s involvement. 

(b)Employee further agrees that, for a period of two (2) years following the termination of Employee’s employment, Employee will not interfere with or attempt to impair the relationship between the Company, and/or any one or more entities comprised within the definition of the Company as of the effective date of this Agreement, and any of its employees by attempting, directly or indirectly, to solicit, entice, or otherwise induce any employee to terminate his/her association with the Company to accept employment with any entity with which Employee is or becomes an employee, officer, agent, independent contractor, consultant, and/or representative (the “Entity”). For purposes of this subparagraph, Entity shall include any affiliates of the Entity. The term “solicit, entice or induce” includes, but is not limited to, the following: (i) communicating with an employee of the Company relating to possible employment with the Entity; (ii) offering bonuses or additional compensation to encourage employees of the Company to terminate their employment to accept employment with the Entity; (iii) referring employees of the Company to personnel or agents employed or engaged by the Entity; or (iv) referring personnel or agents employed or engaged by the Entity to employees of the Company. Employee acknowledges and agrees that this restriction does not prevent Employee’s future employer from hiring any employees of the Company without Employee’s involvement. 

(c)Employee agrees that any breach by Employee of any aspect of this Paragraph 9 will entitle the Company to any and all relief provided for under Paragraph 12 of this Agreement, including immediate cessation of any severance payments and/or benefits under this Agreement and the return of any severance payments and/or benefits previously made to or received by Employee pursuant to this Agreement.

10.Non-Solicitation of Customers.  Employee understands and agrees that the Company’s relationship with its customers is one of the most valuable assets of the Company. These relationships and the goodwill that the Company has developed with its customers are crucial to the Company’s present and future success. Employee agrees that the Company’s customer contacts and its relationships are established and maintained at great expense and that Employee, by virtue of employment with the Company, had unique and extensive exposure to and personal contact directly with the Company’s customers.  Therefore, the parties agree as follows:
(a)The terms and conditions of the restrictive covenants contained in this Paragraph 10 are reasonable and necessary for the protection of the Company’s business and confidential information and to prevent damages or loss to the Company as a result of action taken by Employee.  Employee acknowledges that this non-solicitation restriction is reasonable and does not inhibit the free flow of trade or business.

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(b)Employee agrees that, for a period of two (2) years following the termination of Employee’s employment, Employee will not, directly or indirectly, individually or as an employee, agent, partner, shareholder, consultant, or in any other capacity, canvass, contact, solicit, or accept any of the Company’s customers with whom Employee has had and/or will have direct contact, or for whom Employee has had or will have supervisory or managerial responsibility, during the two (2) year period preceding Employee’s termination for the purpose of providing services or products that are substantially similar to the services or products which Employee was involved in providing to said customers on behalf of the Company.  It is understood and agreed that the fluid customer list limitation contemplated by the parties closely approximates the area of the Company’s vulnerability to unfair competition by Employee and does not deprive Employee of legitimate competitive opportunities to which Employee is entitled.
(c)Employee agrees that any breach by Employee of any aspect of this Paragraph 10 will entitle the Company to any and all relief provided for under Paragraph 12 of this Agreement, including immediate cessation of any severance payments and/or benefits under this Agreement and the return of any severance payments and/or benefits previously made to or received by Employee pursuant to this Agreement.
11.    Request for Review of Obligations Regarding Future Employment or Conduct.  Employee acknowledges and agrees that it is not the purpose of this Agreement to preclude Employee from engaging in employment or conduct that does not unfairly interfere with the Company’s protectable business interests. If during the term of this Agreement, Employee is uncertain as to whether Employee’s employment, conduct, or business enterprise may interfere with the Company’s protectable business interests in violation of this Agreement, Employee agrees to submit to the Company in writing a request to engage in said employment, conduct, or business enterprise, prior to commencing and/or engaging in any such employment, conduct, or business enterprise. Any such request must specifically refer to this Agreement. The Company agrees that it will respond to the request with reasonable promptness and that it will not unreasonably withhold permission to engage in the employment, conduct, or business enterprise specified in the request, regardless of the terms of the Agreement, if the employment, conduct, or business enterprise sought to be engaged in does not interfere with the Company’s protectable business interests. Any such permission granted by the Company must be in writing, shall extend only to the employment, conduct, or business enterprise specifically identified in the written request, and shall not otherwise constitute a waiver of the Company’s rights under the Agreement.

12.    Enforcement.  Employee understands and acknowledges that irreparable injury will result to the Company and its business in the event of a breach of any of the covenants or obligations contained in this Agreement.  Employee also acknowledges and agrees that the damages or injuries which the Company may sustain as a result of such a breach are difficult to ascertain and money damages alone would not be an adequate remedy to the Company.  Employee therefore agrees that if a controversy arises concerning the rights or obligations contained in this Agreement or Employee breaches any of the covenants or obligations contained in this Agreement, the Company shall be entitled to any injunctive, or other, relief necessary to enforce, prevent, or restrain any violation of the provisions of this Agreement (without posting a bond or other security). Such relief, however, shall be cumulative and non-exclusive and shall be in addition to any other right or remedy to which the Company may be entitled.  Employee also agrees that any breach by Employee of Employee’s 

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obligations enumerated in this Agreement shall entitle the Company to the return of any severance payment(s) or any other benefit(s) paid, and/or received by Employee, hereunder, and reimbursement of any and all attorneys’ fees and costs incurred by the Company in enforcing this Agreement or taking action against Employee for breach of this Agreement.

13.    Confidentiality of Agreement.  Employee agrees that the existence of this Agreement and the terms and contents of this Agreement shall be kept confidential and shall not be disclosed in any way, directly or indirectly, to any other person or entity.  The terms of this Paragraph shall not apply to disclosures compelled by judicial process, disclosures to taxing authorities required by law or consultations with attorneys, accountants, governmental agencies or immediate family members as necessary to implement the terms of this Agreement.

14.    Release.  Employee, for and in consideration of the terms of this Agreement, does hereby for Employee, and for Employee’s heirs, personal representatives, and assigns, fully and forever release and discharge the Company, the officers, employees, and/or agents of the Company, the members of the board of directors of the Company, and the Company’s benefit plans and its fiduciaries, from any and all claims, demands, damages, actions, rights of action, both known and unknown, costs, loss of wages, expenses, compensation, and any other relief, on account of, or in any way growing out of any events relating to Employee’s employment and/or termination from employment with the Company.  This release includes (but is not limited to) any rights or claims that Employee may have under the Age Discrimination in Employment Act of 1967, which prohibits age discrimination in employment; Title VII of the Civil Rights Act of 1964 (as amended by the Civil Rights Act of 1991), which prohibits discrimination in employment based on race, color, national origin, religion or sex; the Americans with Disabilities Act, which prohibits discrimination in employment based on disability; the Equal Pay Act, which prohibits paying men and women unequal pay for equal work; or any other federal, state, or local laws or regulations prohibiting employment discrimination.  This also includes a release of any claims for wrongful discharge arising from the separation of Employee’s employment and any claims under any severance plan of the Company.  This release includes both claims that Employee knows about and those which Employee may not know about.  Except as set forth in Paragraphs 3 and 4, this release also acts as a waiver and release of any rights Employee has to any benefits under the Company’s retirement or other benefit plans. Further, this release does not waive or release any rights or claims that Employee may have under the Age Discrimination in Employment Act which arise after the effective date of this Agreement.  Employee agrees that nothing in this Agreement is to be construed as an admission of liability or wrongdoing of any sort by the Company in the negotiation or execution of this Agreement. This waiver and release provision does not apply to any rights that Employee cannot lawfully waive.

15.    ADEA Waiver.  Employee, without limiting the foregoing release, specifically agrees and represents that Employee is waiving and releasing all claims arising under the Age Discrimination in Employment Act of 1967, that in exchange for the waiver and release of those claims, Employee is receiving consideration in addition to anything of value to which Employee is already entitled, that Employee is not waiving any claims or rights that may arise after the effective date of this Agreement, and that Employee has been advised to consult with an attorney of Employee’s choice prior to executing this Agreement regarding the content of the Agreement and the legal rights waived hereunder.

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16.    Noninterference Clause.  Notwithstanding the above, nothing in this Agreement shall interfere with Employee’s right to file a charge, cooperate or participate in an investigation or proceeding conducted by the Equal Employment Opportunity Commission and/or the State of Wisconsin Department of Workforce Development, or any other federal or state regulatory or law enforcement agency.  However, the consideration provided to Employee in this Agreement shall be the sole relief provided to Employee for the claims that are released by Employee herein and Employee will not be entitled to recover and agrees to waive any monetary benefits, reinstatement, or other recovery against Company in connection with any such claim, charge or proceeding without regard to who has brought such complaint or charge.

17.    Hold Harmless.  Except as set forth in Paragraph 16, Employee agrees that the consideration paid hereunder is in full and final compromise of all claims known or unknown that Employee may have against the Company as of the effective date of this Agreement.  Employee agrees not to file suit, or initiate a proceeding, claim or charge or cause any other suit, proceeding, claim or charge to be filed by any other person or entity on Employee’s behalf, against the Company related to any events concerning Employee’s employment or termination from employment with the Company. If Employee breaches this Agreement by filing a lawsuit based on claims that Employee has released, Employee will pay for all costs incurred by the Company, including any and all attorneys’ fees and costs incurred by the Company, in defending against Employee’s claim.

18.    Non-Disparagement.  Employee agrees that Employee will not make any statements regarding the Company, either now or at any time in the future, concerning Employee’s employment with the Company or termination from employment which could reasonably be viewed as disparaging or in any way reflecting negatively on the reputation of the Company unless otherwise required by law.

19.    Consideration Period. Employee will have twenty-one (21) calendar days from the later of the date Employee receives this Agreement or his Termination Date to consider its terms and decide whether to sign it.  This period is designed to allow Employee time to consult with an attorney, or anyone else whose advice Employee may need or want.  The execution of this Agreement prior to the expiration of the twenty-one (21) calendar day period does not negate the fact that Employee had the full twenty-one (21) calendar day period for consideration of this Agreement. If this Agreement is not signed by Employee prior to the conclusion of the twenty-one (21) calendar day period described above, then the Company’s offer to Employee, as contained in this Agreement, shall expire.

20.    Revocation Period.  After signing this Agreement, Employee will have seven (7) calendar days to revoke it.  Any revocation should be in writing and delivered to Thomas G. Musial, Senior Vice President of Human Resources and Administration, The Manitowoc Company, Inc., 2400 South 44th Street, P.O. Box 66, Manitowoc, Wisconsin  54221-0066, by no later than the end of the seventh (7th) calendar day of the revocation period.  Employee understands and agrees that, should Employee exercise this right of revocation, Employee will not be entitled to any payment or consideration under this Agreement.

11

21.    Code Section 409A.  To the extent applicable, it is intended that this Agreement and any payments or benefits due hereunder comply with the provisions of Code Section 409A and each installment payment shall be considered a separate payment for purposes of determining whether and how Code Section 409A applies to such payment.  This Agreement shall be administered by the Company in a manner consistent with this intent, and any provision that would cause this Agreement to fail to satisfy Code Section 409A shall have no force or effect until amended to comply with Code Section 409A (which amendment may be retroactive to the extent permitted by Code Section 409A).  

22.    Governing Law.  The parties agree that this Agreement shall be governed by and construed in accordance with the laws of the State of Wisconsin without giving effect to any conflicts of law provisions. The parties also agree that any action or suit brought by any party to enforce or adjudicate the rights of the parties to and under this Agreement shall be brought in the Circuit Court for Manitowoc County, Wisconsin, this Court being the sole, exclusive, and mandatory venue and jurisdiction for any disputes between the parties arising from or relating to this Agreement. If any action is filed, by any party, relating to a breach of this Agreement and/or enforcement of this Agreement, Employee expressly agrees and consents to jurisdiction in the Circuit Court for Manitowoc County, Wisconsin and waives any claim that the Circuit Court for Manitowoc County, Wisconsin is an inconvenient forum.

23.    Severability.  In the event that any provision or clause of this Agreement shall be held to be invalid or unenforceable for any reason whatsoever, it is agreed such invalidity or unenforceability shall not affect any other provision or clause of this Agreement and the remaining covenants, restrictions, and provisions herein shall remain in full force and effect, and any court of competent jurisdiction may so modify the objectionable provision as to make it valid, reasonable, and enforceable.

24.    Enforceability.  The parties agree that the terms and conditions of the restrictions in this Agreement are reasonable and necessary for the protection of the Company’s protectable business interests and to prevent damage or loss to the Company as a result of action taken by Employee. Employee acknowledges and agrees that the restrictions contained in this Agreement are reasonable and do not inhibit the free flow of trade or business; nor do they restrict the mobility, hiring, and/or employment opportunities of any individual or business, including other Company employees, Employee’s future employer, and any other business entities, including competitors of the Company. Employee acknowledges and agrees that Employee could continue to actively pursue Employee’s career and earn sufficient compensation in the same or similar business without breaching any of the restrictions contained in this Agreement. Employee acknowledges and agrees that this consideration is sufficient to fully and adequately compensate Employee for agreeing to the restrictions contained herein.

12

25.    Sale, Consolidation, or Merger.  In the event of a sale of the stock of the Company and/or any one or more of the entities comprised within the definition of the Company, consolidation or merger of the Company, and/or any one or more entities comprised within the definition of the Company, with or into another corporation or entity, or the sale or spinoff of substantially all of the operating assets of the Company, and/or any one or more entities comprised within the definition of the Company, to another corporation, entity, or individual, the successor in interest shall be deemed to have assumed all rights, privileges, duties, and liabilities of the Company, and/or the relevant entities comprised within the definition of the Company, under this Agreement.

26.    Notice.  Any notice to be given hereunder shall be deemed sufficient if addressed in writing, and delivered by registered or certified mail or delivered personally, in the case of the Company to its principal business office and in Employee’s case, to Employee’s address appearing on the Company’s records, or to such other address as Employee may designate in writing to the Company.

27.    Counterparts.  This Agreement may be executed in one or more counterparts. Each counterpart shall be considered an original and all such counterparts shall constitute a single agreement binding upon.

28.    No Waiver.  The failure of either party to insist, in any one or more instances, upon performance of the terms or conditions of this Agreement, and/or the waiver of a breach of any provision hereof, shall not be construed as a waiver of other breaches of the same or other provisions of the Agreement and/or relinquishment of any right granted hereunder or of the future performance of any such term, covenant, or condition. The parties agree that this Agreement shall not be deemed or construed to have been modified, amended, rescinded, canceled or waived in whole or in part, unless the parties agree in writing.  To prevent adverse tax consequences, the parties agree that they will not modify the payment schedule set forth in Paragraphs 3 and 4 above.   

29.    Benefit.  This Agreement shall be binding upon and inure to the benefit of and shall be enforceable by and against the Company, its successors and assigns, and Employee, Employee’s heirs, beneficiaries, and legal representatives.

30.    Future Employment.  Employee agrees that during the term of this Agreement, Employee shall notify any employer of the terms and restrictions of this Agreement. Employee also agrees that if Employee accepts employment, Manitowoc may advise such employer of this Agreement and its terms.

31.    Entire Agreement.  This Agreement sets forth the entire intent of and understanding between the parties with respect to the subject matter of this Agreement and supersedes all prior discussions, negotiations, and agreements between the parties, rendering all prior agreements between the parties null and void.

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32.    IN ENTERING INTO THIS AGREEMENT, EACH PARTY EXPRESSLY STATES THAT IT HAS READ AND FULLY UNDERSTANDS THE TERMS OF THIS AGREEMENT, THAT THIS AGREEMENT HAS BEEN FULLY EXPLAINED TO SUCH PARTY BY ITS RESPECTIVE ATTORNEY, AGENT, OR REPRESENTATIVE, THAT THE PARTY ENTERS INTO THIS AGREEMENT VOLUNTARILY AND OF ITS OWN FREE WILL AND THAT THE PARTY UNDERSTANDS THAT THIS AGREEMENT CONSTITUTES A FULL, FINAL AND BINDING SETTLEMENT OF THE MATTERS COVERED BY THIS AGREEMENT.  EACH PARTY FURTHER STATES THAT ITS WILLINGNESS TO ENTER INTO THIS AGREEMENT WAS NOT INDUCED BY, OR BASED UPON, ANY REPRESENTATION BY ANY OTHER PARTY HERETO, OR ITS AGENTS OR EMPLOYEES, WHICH IS NOT CONTAINED IN THIS AGREEMENT.  VALUABLE LEGAL RIGHTS ARE WAIVED HEREUNDER.

Accepted By:

	
			
	 
	 
	THE MANITOWOC COMPANY, INC.

	 
	 
	(Registrant)

	 
	 
	 

	 
	 
	 

	/s/ Carl J. Laurino
	 
	/s/ Thomas Musial

	Carl J. Laurino
	 
	Thomas Musial

	 
	 
	Senior Vice President of Human Resources and Administration

	 
	 
	 

	DATE: June 30, 2016
	 
	Date: May 5, 2016

14Exhibit 10.1

 

FIRST AMENDMENT TO

 

EMPLOYMENT AGREEMENT

 

This First Amendment to Employment Agreement (the “Amendment”) is executed on this
5th day of July 2016 (the “Effective Date”), by and between Christopher Missling, PhD (hereinafter
referred to as “Executive”) and Anavex Life Sciences Corp. (“Employer” and,
together with its subsidiaries, the “Company”) and serves to amend that certain Employment Agreement
dated June 27, 2013 (the “Employment Agreement”) by and between Executive and the Company. Except as
otherwise provided herein in the Amendment, capitalized terms used in this Amendment shall have the same meanings given to them
in the Employment Agreement. Executive and Company are collectively referred to as the “Parties”
and singularly referred to as “Party.”

 

RECITALS

 

WHEREAS, Executive
currently is employed by the Company pursuant to the terms of the Employment Agreement (attached hereto as Exhibit 1); and

 

WHEREAS, the Parties
desire to amend the Employment Agreement as described below, but to otherwise maintain in effect in full all other terms of the
Employment Agreement; and

  

NOW, THEREFORE,
for good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the Parties agree as follows:

 

AMENDMENT

 

1.    ADOPTION OF
RECITALS. The Parties adopt the above recitals as being true and correct, and they are incorporated herein as material
parts of this Amendment.

 

2.    SECTION 1. The Parties
agree that Section 1 of the Employment Agreement shall be amended and restated as follows:

 

1. Term. The term of your employment hereunder shall
commence on July 5th, 2016 (the “Start Date”) and shall end on the earliest of (i) July 5th, 2019, (ii) the
date on which your employment is terminated by Company or you pursuant to Paragraph 10 or (iii) the date of your death or the date
of termination of your employment by reason of incapacity (determined in accordance with Paragraph 8) (the “Employment
Term”). The period from the Start Date until July 5th, 2019, regardless of any earlier termination, shall hereinafter
be referred to as the “Original Employment Term”.

 

     

     

    

 

3.   SECTION 2. The Parties
agree that Section 2 of the Employment Agreement shall be amended by deleting the words “and “Chief Financial Officer”
”, and the following paragraph shall be deleted from Section 2 of the Employment Agreement:

 

“Notwithstanding the foregoing, you shall be permitted
to serve (i) as an employee, consultant, officer and/or director of, and provide services to, Brimberg and R.F. Lafferty, and (ii)
on the board of directors of any other company or entity, except for companies that do compete directly with the Company’s
principal line of business within the United States.”

 

4.   SECTION 3. The Parties
agree that Section 3 of the Employment Agreement shall be amended and restated as follows:

 

		3.	Cash Compensation

 

		(a)	Base Salary. In consideration for the services performed by you pursuant to this Agreement, the Company shall pay to
you, and you will be entitled to receive and hereby agree to accept, an initial annual base salary of $500,000 Dollars, subject
to increases in the discretion of the Board or its Compensation Committee (“Base Salary”), payable in
accordance with the Company’s normal payroll payment practices.

 

The Compensation Committee of the Board (the “Compensation
Committee”) may review your salary at least annually. The result of any such review shall be reported to you by the Compensation
Committee promptly after it occurs.

 

		(b)	Annual Bonus Compensation. In addition to your Base Salary, during the Employment Term you shall be eligible to earn
an annual cash bonus for each whole or partial calendar year during the Employment Term, (the “Bonus”) of up
to $100,000. Commencing July 5th, 2016, your target bonus for each calendar year during the Employment Term shall be twenty percent
(20%) of annualized Base Salary, as in effect on July 5th, 2016 of each applicable performance year; provided that the Compensation
Committee may review your target bonus at least annually. The result of any such annual review shall be reported to you by the
Compensation Committee promptly after it occurs. Your target bonus is referred to herein as the “Target Bonus”. As
the actual amount payable to you as Bonus will be dependent upon the achievement of certain performance goals, your actual Bonus
may be less than, greater than or equal to the Target Bonus. Your actual Bonus shall be determined by the Board of Directors, with
suggestions from the Compensation Committee, at the end of each whole year during the Employment Term.

 

    	 	2	 

     

    

 

		(c)	Your Bonus for each whole calendar year during the Employment Term, beginning with 2016, will be based upon achievement of
one or more performance goals established by the Compensation Committee, which may include individualized performance goals applicable
uniquely to you. The Company shall deliver to you a list of that year’s performance goals by end of 1st quarter of each year.

 

5.   SECTION 4. The Parties
agree that Section 4 of the Employment Agreement shall be amended and restated as follows:

 

4. Stock Options. In addition to your Base
Salary and Bonus, you shall receive the following stock option grants:

 

		(i)	On July 5, 2016, you shall receive Two Million Dollars ($2,000,000) of options for shares of the Company’s Common Stock,
one-third of which shall vest on July 5, 2017, one-third of which shall vest on July 5, 2018, and the remaining one-third shall
vest on July 5, 2019;

 

		(ii)	On July 5, 2017, you shall receive Two Million Dollars ($2,000,000) of options for shares of the Company’s Common Stock,
one-half of which shall vest on each of July 5, 2018 and the remaining one-half shall vest on July 5, 2019; and

 

		(iii)	On July 5, 2018, you shall receive Two Million Dollars ($2,000,000) of options for shares of Anavex Common Stock, all of which
shall vest on July 5, 2019.

 

Each such option will be based on the Black Scholes formula and
shall have an exercise price equal to closing price of the Common Stock on each grant date.

 

Upon a Change in Control, all previously granted but unvested stock
options shall vest.

 

6.   NOTICES. The Parties agree
that the following shall be added to the Employment Agreement as Section 13:

 

13.Notices.
For the purpose of this Agreement, notices and all other communications to either Party hereunder provided for in the Agreement
shall be in writing and shall be deemed to have been duly given when: (a) delivered in person, mailed by certified mail, return
receipt requested or recognized overnight delivery service and (b) transmitted via facsimile or electronic mail.

 

	If to the Company:	Anavex Life Sciences Corp.
	 	
        51 West 52nd Street, 7th Floor

        New York, NY 10019

	 	Telephone: 1-844-689-3939
	 	Facsimile: ________________
	 	Attention: ________________
	 	E-mail: ________________
	 	 
	With a copy to:	K&L Gates LLP
	 	Southeast Financial Center – 39th Floor

 

    	 	3	 

     

    

 

	 	200 South Biscayne Blvd.
	 	Miami, FL 33131-2399
	 	Telephone:  305-539-3300
	 	Facsimile:  305-358-7095
	 	Attention:  Clayton Parker, Esq.
	 	E-mail: clayton.parker@klgates.com
	 	 
	If to the Executive:	Christopher Missling, PhD
	 	c/o Anavex Life Sciences Corp.
	 	
        51 West 52nd Street, 7th Floor

        New York, NY 10019

	 	Telephone: 1-844-689-3939
	 	E-mail: cmissling@anavexcorp.com

 

or to such other address as either
party shall designate by giving written notice of such change to the other party.

 

7.   FULL FORCE
AND EFFECT. Except as expressly amended herein, all other terms and provisions of the Employment Agreement shall remain
in full force and effect and are hereby ratified and confirmed in all respects. The Parties mutually acknowledge and agree that
any and all other prior agreements, offer letters or contracts between Executive and the Company, are declared null and void with
no legal effect as of the date this Amendment is executed by the Parties.

 

8.   FURTHER AMENDMENTS.
The Employment Agreement shall further be amended wherever appropriate to reflect the changes indicated above.

 

9.   RIGHT TO REVIEW
AND TO SEEK COUNSEL. The Executive acknowledges that K&L Gates LLP represents only the Company in this Amendment and
does not represent the interests of the Executive and has not advised the Executive in connection with this Amendment. The Executive
further acknowledges that he has had the opportunity to seek independent counsel and tax advice in connection with the execution
of this Amendment, and the Executive represents and warrants to the Company (a) that he has sought such independent counsel and
advice as he has deemed appropriate in connection with the execution hereof and the transactions contemplated hereby, and (b) that
he has not relied on any representation of the Company as to tax matters, or as to the consequences of the execution hereof.

 

10.  GOVERNING
LAW. This Amendment shall be governed and construed in accordance with the laws of the State of New York without
regard to conflicts of law.

 

11.HEADINGS
AND CAPTIONS. The titles and captions of paragraphs and subparagraphs contained in this Amendment are provided for convenience
of reference only, and shall not be considered terms or conditions of this Amendment.

 

    	 	4	 

     

    

 

12.VALIDITY.
The invalidity or unenforceability of any provision of this Amendment shall not affect the validity or enforceability of any other
provision of this Amendment, which shall remain in full force and effect.

 

13.COUNTERPARTS.
This Amendment may be executed in one or more counterparts, by facsimile or electronically, each of which shall be deemed to be
an original but all of which together will constitute one and the same instrument. For purposes of legal enforcement of this Agreement
(i.e., by a court of law or equity or in arbitration), a copy or scanned version of this Agreement shall constitute an original.

 

[Signature page follows.]

 

    	 	5	 

     

    

 

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement on July 5, 2016.

 

	COMPANY:	 	EXECUTIVE:
	 	 	 
	ANAVEX LIFE SCIENCES CORP.	 	CHRISTOPHER MISSLING, PHD
	 	 	 
	By:	/s/ Sandra Boenisch

	 	By:	/s/ Christopher Missling
	 	 	 	 	 
	Name:	Sandra Boenisch

	 	 	 
	 	 	 	 	 
	Title:	Principal Financial Officer

	 	 	 
	 	 	 	 	 

 

     

     

    

 

EXHIBIT 1

 

Mr. Christopher Missling, PhD

c/o Anavex Life Sciences Corp.

New York, NY

Dear Dr. Missling,

 

June 27, 2013

 

Anavex Life Sciences Corporation, a Nevada corporation (“Employer”
and, together with its subsidiaries, the “Company”), agrees to employ Christopher Missling, PhD (“you”),
and you agree to accept such employment upon the following terms and conditions set forth in this agreement (this “Agreement”).

 

1. Term. The term of your employment hereunder shall commence
on July 5th, 2013 (the “Start Date”) and shall end on the earliest of (i) July 5th, 2016, (ii) the date on which
your employment is terminated by Employer or you pursuant to Paragraph 10 or (iii) the date of your death or the date of termination
of your employment by reason of incapacity (determined in accordance with Paragraph 8) (the “Employment Term”).
The period from the Start Date until July 5th, 2016, regardless of any earlier termination, shall hereinafter be referred to as
the “Original Employment Term”.

 

2. Titles and Authority.

 

(a) Officer Positions and Reporting Lines. During the Employment
Term, you shall have the title of “President and Chief Executive Officer” and “Chief Financial Officer”
of Employer and shall have the powers, responsibilities and authorities customary for the chief executive officer of corporations
of the size, type and nature of Employer. During the Employment Term, you will report solely and directly to the board of directors
of Employer (the “Board”). You hereby accept such employment and agree to devote substantial business and professional
time and energy to the business and affairs of the Company.

 

Notwithstanding the foregoing, you shall be permitted to serve (i)
as an employee, consultant, officer and/or director of, and provide services to, Brimberg and R.F. Lafferty, and (ii) on the board
of directors of any other company or entity, except for companies that do compete directly with the Company’s principal line
of business within the United States.

 

(b) Service on the Board. You shall serve as a member of
the Board upon Start Date. During the Employment Term, the Board shall nominate you for reelection to the Board at the expiration
of each term of office, and you agree to serve as a member of the Board for each period for which you are so elected.

 

3. Cash Compensation.

 

(a) Base Salary. In consideration for the services performed
by you pursuant to this Agreement, the Company shall pay to you, and you will be entitled to receive and hereby agree to accept,
an initial monthly base salary of Twenty Thousand Dollars ($20,000), subject to increases in the discretion of the Board or its
Compensation Committee (“Base Salary”), payable in accordance with the Company’s normal payroll
payment practices.

 

The Compensation Committee of the Board (the “Compensation
Committee”) may review your salary at least annually and may increase (but not decrease, including as it may be increased
from time to time) the Base Salary. The result of any such review shall be reported to you by the Compensation Committee promptly
after it occurs.

 

     

     

    

 

(b) Annual Bonus Compensation. In addition to your Base Salary,
during the Employment Term you shall be eligible to earn an annual bonus for each whole or partial calendar year during the Employment
Term, determined and payable as follows (the “Bonus”):

 

(i)

 

Your Bonus for each whole calendar year during the Employment Term,
beginning with 2013, will be based upon achievement of one or more performance goals established by the Compensation Committee,
which may include individualized performance goals applicable uniquely to you. The Employer shall deliver to you a list of that
year’s performance goals by end of 1st quarter of each year.

 

(ii)

 

Commencing July 5th, 2013, your target bonus for each calendar year
during the Employment Term shall be one hundred percent (100%) of annualized Base Salary, as in effect on July 5th of each applicable
performance year; provided that the Compensation Committee may review your target bonus at least annually and may increase (but
not decrease, including as it may be increased from time to time) the target bonus. The result of any such annual review shall
be reported to you by the Compensation Committee promptly after it occurs. Your target bonus, as it may be so increased from time
to time, is referred to herein as the “Target Bonus”. As the actual amount payable to you as Bonus will be dependent
upon the achievement of performance goal(s) referred to in Paragraph 3(b)(i), your actual Bonus may be less than, greater than
or equal to the Target Bonus.

 

4. Stock Options and Related Incentive Plans. In addition
to your Base Salary and Bonus, you shall receive the following grants:

 

(i)

 

Sign on Options. You shall receive upon the execution of
this Agreement a fully vested option (the “Sign on Option”) to purchase Two Million (2,000,000) shares of Anavex
Common Stock (“Common Stock”). The Sign on Option shall have an exercise price equal to the Fair Market Value
of the Common Stock on the execution date of this Agreement (“Grant Date”). As of the Grant Date, the Company
has closed a private placement transaction for 2,196,133 shares of restricted shares of the Company at a price of $.40 per share
(such price, the “Fair Market Value”). The Company deems that such sales constitute the Fair Market Value as
of the date hereof for the all of the securities issued to you under this Agreement.

 

(ii)

 

Sign on Restricted Stock Grant.

 

	 	(a) 	You shall receive upon the execution of this Agreement, Four Million (4,000,000) Shares of Common Stock (the “Restricted Stock”).
	 	 	 
	 	(b) 	The Restricted Stock shall vest upon:

 

	 	a. 	the following milestone schedule: 
	 	 	 
	 	o 	1/4 shall vest upon the Company starting the Phase Ib/IIb human study; 
	 	o 	1/4 shall vest upon the Company in-licensing additional assets (e.g. valuable IP, compounds or drug products) in clinical or pre-clinical stage; 
	 	o 	1/4 shall vest upon the Company securing additional non-dilutive equity funding in 2013 (i.e. at share price higher than the previous funding) of at least $5M in cash; 
	 	o 	1/4 shall vest upon the Employer or any of its subsidiaries listing at a major stock exchange like NYSE, NYSE MKT or NASDAQ. 

 

    	 	2	 

     

    

 

You shall have the authority to direct and carry out the milestones
set forth above.

 

(iii)

 

In addition to any other bonus compensation afforded you hereunder,
the Employer shall annually issue bonus compensation to you in an amount equal to the aggregate of all taxes due upon the vesting
of the Restricted Stock. If the Employer does not have sufficient working capital and/or funding capability to timely make the
payments required under this subsection (defined as payment amount is more than 15% of Company’s treasury), the Employer
shall be entitled to make such payment in shares of Common Stock of the Employer.

 

(iv)

 

In the case of a Change in Control (as defined in Paragraph 9 below),
all of the Restricted Stock shall fully vest.

 

5. Benefits.

 

(a) During the Employment Term, you shall be entitled to participate
in such life and medical insurance, pension and other employee benefit plans as the Company may have or establish from time to
time. You shall be entitled to four (4) weeks paid vacation during each calendar year during the Employment Term.

 

(b) Employer shall provide you with appropriate, in your discretion,
life insurance during the Employment Term at Employer’s cost, the beneficiary or beneficiaries of which shall be designated
by you or the assignee of such policy.

 

6. Business Expenses, Perquisites.

 

(a) During the Employment Term, you shall be reimbursed for such
reasonable travel and other expenses incurred in the performance of your duties hereunder.

 

(b) Employer shall pay all fees and expenses of your counsel and
other fees and expenses which you may incur in an effort to establish entitlement to compensation or other benefits under this
Agreement in accordance with Paragraph 10.

 

(c) Employer shall provide and maintain adequate D&O insurance
throughout the Employment Term and in any case in an amount not less than Two Million Dollars ($2,000,000).

 

7. Confidential Information.

 

(a) Company Information. You agree at all times during the
term of your employment and thereafter, to hold in the strictest confidence, and not to use, except for the benefit of the Company,
or to disclose to any person, firm or corporation without written authorization of the Board, any confidential Information of the
Company, except under a non-disclosure agreement duly authorized and executed by the Company. You understand that “Confidential
Information” means any non-public information that relates to the actual or anticipated business or research and development
of the Company, technical data, trade secrets or know-how, including, but not limited to, research, product plans or other information
regarding Company’s products or services and markets therefore, customer lists and customers (including, but not limited
to, customers of the Company on whom you called with whom you became acquainted during the term of your employment), software developments,
inventions, processes, formulas, technology, designs, drawings, engineering, hardware configuration information, marketing, finances
or other business information.

 

You further understand that Confidential Information does not include
any of the foregoing items that have become publicly known and made generally available through no wrongful act of yours or of
others who were under confidentiality obligations as to the item or items involved or improvements or new versions thereof.

 

    	 	3	 

     

    

 

(b) Former Employer Information. You agree that you will
not, during your employment with the Company, improperly use or disclose any proprietary information or trade secrets of any former
employer or other person or entity and that you will not bring onto the premises of the Company any unpublished document or proprietary
information belonging to any such employer, person or entity unless consented to in writing by such employer, person or entity.

 

(c) Third Party Information. You recognize that the Company
has received and in the future will receive from third parties their confidential or proprietary information subject to a duty
on the Company’s part to maintain the confidentiality of such information and to use it only for certain limited purposes.
You agree to hold all such confidential or proprietary information in the strictest confidence and not to disclose it to any person,
firm or corporation or to use it except as necessary in carrying out your work for the Company consistent with the Company’s
agreement with such third party.

 

(d) Employer Ownership. The results and proceeds of your
services to the Company, whether or not created during the Employment Term, including, without limitation, any works of authorship
resulting from your services and any works in progress resulting from such services, shall be works-made-for-hire and Employer
shall be deemed the sole owner throughout the universe of any and all rights of every nature in such works, with the right to use,
license or dispose of the works in perpetuity in any manner Employer determines in its sole discretion without any further payment
to you, whether such rights and means of use are now known or hereafter defined or discovered.

 

8. Incapacity. In the event you become totally medically
disabled and you will not be able to substantially perform your duties for at least six (6) consecutive months or a total of one
hundred eighty (180) days during any two hundred seventy (270) day period, the Board, at any time after such disability has continued
for sixty (60) consecutive days, may determine, provided such determination is made while the disability is still in effect, that
Employer requires such duties and responsibilities be performed by another executive. In the event that you become “disabled”
within the meaning of such term under Employer’s Short-Term Disability (STD) and its Long-Term Disability (LTD) program,
you will first receive benefits under the STD program for the first twenty-six (26) weeks of absence in accordance with such program,
which will be equal to your salary, and the amount of such benefits will offset any salary that otherwise would be paid to you
pursuant to this Agreement. Thereafter, you will be eligible to receive benefits under the LTD program in accordance with its terms.

 

For purposes of this Agreement, you will be considered to have experienced
a termination of employment with Employer as of the date you first become eligible to receive benefits under the LTD program, and
until that time you shall be treated for all purposes of this Agreement as an active employee of Employer. Upon receipt of benefits
under the LTD program, you will also be entitled to receive the following in accordance with the payment provisions set forth in
Paragraph 9(d)(iii) and subject to the provisions of Paragraph 9(d)(v):

 

(i)

 

Employer will pay your Accrued Compensation and Benefits;

 

(ii)

 

Employer will pay you a prorated Bonus for the year of your termination
of employment based on your Target Bonus and the number of calendar days of such year elapsed through the date of your termination
of employment;

 

(iii)

 

all of your outstanding unvested options will vest, and all such
options and all of your outstanding options that have previously vested will remain exercisable for the greater of three years
and the period provided for under the terms of the applicable award agreement, but in no event beyond their normal expiration date;

 

    	 	4	 

     

    

 

(iv)

 

all of your unvested and outstanding restricted stock and/or restricted
stock units and any other type of equity awards that are then unvested and outstanding, in each case, as of the date on which the
Employment Term ends shall vest and be settled within ten (10) business days after your termination date; and

 

(v)

 

Employer will continue to provide you with life insurance coverage
as set forth in Paragraph 5(b) until the end of the Original Employment Term or, if earlier, the date on which you become eligible
for at least as much insurance coverage from a third party employer at such employer’s expense; provided, however, that Employer
may decrease the amount of life insurance coverage it provides you so long as the amount of such coverage that it continues to
provide, and the amount of such coverage provided to you from a third party employer at such employer’s expense, aggregates
at least the amount set forth in Paragraph 5(b).

 

9. Change in Control. Change in Control means the occurrence
of any of the following events: (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange
Act) becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities
of the Company representing fifty percent (50%) or more of the total voting power represented by the Company’s then outstanding
voting securities; (ii) the consummation of the sale or disposition by the Company of all or substantially all of the Company’s
assets; or (iii) the consummation of a merger or consolidation of the Company with any other corporation, other than a merger consolidation
which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either
by remaining outstanding or by being converted into voting securities of the surviving entity or its parent) fifty percent (50%)
of the total voting power represented by the voting securities of the Company or such surviving entity or its parent outstanding
immediately after such merger or consolidation.

 

10. Termination.

 

(a) Termination for Cause. Employer may, at its option, terminate
your employment for Cause (as defined below). For purposes of this Agreement, termination of your employment for “Cause”
shall mean termination of your employment due to any of the following:

 

(i)

 

your engaging or participating in intentional acts of material fraud
against the Company;

 

(ii)

 

your willful misfeasance having a material adverse effect on the
Company (except in the event of your incapacity as set forth in Paragraph 8);

 

(iii)

 

your conviction of a felony;

 

(iv)

 

your willful unauthorized disclosure of trade secret or other confidential
material information of the Company;

 

(v)

 

your terminating your employment without Good Reason (as defined
below) other than for death or incapacity pursuant to Paragraph 8 (it being understood that your terminating your employment during
the Original Employment Term without Good Reason prior to the end of the Original Employment Term shall constitute “Cause”);

 

    	 	5	 

     

    

 

(vi)

 

your willful and material violation of any policy of the Company
that is generally applicable to all employees or all officers of the Company including, but not limited to, policies concerning
insider trading or sexual harassment, Supplemental Code of Ethics for Senior Financial Officers, and Employer’s Business
Conduct Statement;

 

(vii)

 

your willful failure to cooperate fully with a bona fide Company
internal investigation or an investigation of the Company by regulatory or law enforcement authorities whether or not related to
your employment with the Company (an “Investigation”), after being instructed by the Board to cooperate or your
willful destruction of or knowing and intentional failure to preserve documents of other material known by you to be relevant to
any Investigation; or

 

(viii)

 

your willful and material breach of the provisions of this Agreement.

 

For purposes of the foregoing definition, an act or omission shall
be considered “willful” if done, or omitted to be done, by you with knowledge and intent. Anything herein to the contrary
notwithstanding, Board will give you written notice, not more than thirty (30) calendar days after the occurrence of the event
constituting “cause” comes to the attention of another “executive officer” of Employer (as defined by the
rules and regulations of the Securities Exchange Commission for purposes of the Securities Exchange Act of 1934, as amended), prior
to terminating this Agreement for the cause set forth in clauses (i), (ii) (iv), (vi), (vii) and (viii) above. Such notice shall
set forth the nature of any alleged misfeasance in reasonable detail and the conduct required to cure such misfeasance. Except
for a breach which cannot by its nature be cured, you shall have thirty (30) calendar days from your receipt of such notice within
which to cure and within which period Employer cannot terminate this Agreement for the stated reasons, and, if so cured, after
which period Employer cannot terminate your employment under this Agreement for the stated reasons. For purposes of this Agreement,
no such purported termination of your employment for cause set forth in clauses (i), (ii), (iv), (vi), (vii) and (viii) above shall
be effective without such notice.

 

(b) Good Reason Termination. Upon written
notice to Employer, you may terminate your employment hereunder for “Good Reason” at any time during the Original
Employment Term not more than thirty (30) calendar days after you become aware of the occurrence of the event constituting Good
Reason. Such notice shall state an effective date no earlier than thirty (30) calendar days after the date it is given. Employer
shall have thirty (30) calendar days from the giving of such notice within which to cure and within which period you cannot terminate
your employment under this Agreement for the stated reasons and, if so cured, after which you cannot terminate your employment
under this Agreement for the stated reasons; provided, however, that this sentence shall not apply with respect to events which
by their nature cannot be cured. Good Reason shall mean, without your prior written consent, other than in connection with the
termination of your employment for “Cause” (as defined above) or incapacity (as set forth in Paragraph 8) or as a result
of your death:

 

(i)

 

your removal from or any failure to re-elect you as President and
Chief Executive Officer of Employer;

 

(ii)

 

your failure to be elected or reelected to the Board at any meeting
of shareholders of the Company at which your term as director is scheduled to expire or position of director is subject to a vote;

 

    	 	6	 

     

    

 

(iii)

 

the assignment to you by Employer of duties inconsistent with the
usual and customary duties associated with a chief executive officer of a publicly traded company comparable to Employer;

 

(iv)

 

the diminution or withdrawal of a meaningful portion of your authority
or responsibilities as set forth in Paragraph 2;

 

(v)

 

a reduction in your Base Salary, Bonus, Target Bonus or other compensation
levels as the same may be increased from time to time during the Employment Term;

 

(vi)

 

Employer’s requiring you to be based anywhere other than the
New York metropolitan area, except for required travel on the Company’s business;

 

(vii)

 

termination by you of your employment, during the thirty (30) day
period following the twelve-month anniversary of the date on which there occurs a Material Event, based on your good faith determination
that the occurrence of the Material Event has adversely and materially affected your ability to perform your CEO duties effectively;
or

 

(viii)

 

any other material breach by Employer of its material obligations
hereunder, including but not limited to a breach of Paragraph 2.

 

For purposes of clause (vii) above, a Material Event shall have
occurred on the date on which a majority of the independent directors of the Board ceases to consist of (1) those individuals constitute
the independent directors of the Board (the “Original Independent Directors”) and (2) those successor
independent directors who are elected or appointed to the Board, either by a vote of the Board or by action of the shareholders
of the Employer pursuant to a recommendation by the Board, as a result of the death or voluntary retirement or resignation of an
Original Independent Director (or any such successor), including a voluntary determination by such Original Independent Director
(or such successor) not to stand for re-election.

 

(c) Termination Without Cause. Employer may terminate your
employment without Cause at any time during the Original Employment Term by written notice to you.

 

(d) Termination Payments, Etc.

 

(i)

 

Termination for Cause. In the event that Employer terminates
your employment for Cause, Employer shall promptly pay and provide you with Accrued Compensation and Benefits. For purposes of
this Agreement, “Accrued Compensation and Benefits” shall consist of: (w) reimbursement of any unpaid business
expenses to which your are entitled to reimbursement pursuant to Paragraph 6 that were incurred prior to the effective date of
your termination (the “Termination Date”); (x) your Base Salary through the Termination Date (as such date is
determined in accordance with Paragraph 10(a) or 10(b), as applicable); (y) any Bonus with respect to any completed calendar year
that is determined by the Compensation Committee for you for each calendar year in which you were employed but has not yet been
paid; and (z) all other vested compensation and benefits to which you are entitled as of the Termination Date under the terms and
conditions applicable to such compensation and benefits, including vested stock options, restricted shares, restricted stock units,
the Deferred Salary and Deferred Compensation.

 

    	 	7	 

     

    

 

(ii)

 

Termination without Cause or Resignation with Good Reason.
In the event that Employer terminates your employment without Cause, or if you resign your employment for Good Reason, you shall
be entitled to receive the following:

 

a.

 

Employer will pay and provide your Accrued Compensation and Benefits;

 

b.

 

Employer will pay you a prorated Bonus for the year of your termination
of employment based on your Target Bonus and the number of calendar days of such year elapsed through the date of your termination
of employment;

 

c.

 

Employer will pay you a severance payment (the “Severance
Payment”) as follows:

 

(i) Upon a termination of your employment without Cause at any time
during the Employment Term or by you for Good Reason prior: three (3) times the sum of: (A) your annual Salary in effect at the
time of termination (or, if your Salary has been reduced in violation of this Agreement, your highest Salary during the Employment
Term); and (B) the average of the annual Bonuses payable to you (whether or not actually paid) with respect to the last three completed
calendar years in which you served as the President and Chief Executive Officer of Employer (or such fewer years you served in
such capacity) prior to the Termination Date.

 

(ii) Upon a termination of your employment for Good Reason during
the Employment Term: the sum of: (A) three (3) times your annual Salary in effect at the time of termination (or, if your Salary
has been reduced in violation of this Agreement, your highest Salary during the Employment Term); and (B) two (2) times the average
of the annual Bonuses payable to you (whether or not actually paid) with respect to the last three completed calendar years in
which you served as the President and Chief Executive Officer of Employer (or such fewer years you served in such capacity) prior
to the Termination Date.

 

d.

 

All of your outstanding unvested Employer stock options will vest,
and all such options and all of your outstanding Employer stock options that have previously vested will remain exercisable for
(i) in the event such termination of employment is by Employer without Cause, the greater of the period provided in accordance
with the provisions of grant, or for three (3) years from the end of Employment Term and (ii) in the event such termination of
employment is by you for Good Reason, the third anniversary of the date of such termination, but in each case, in no event beyond
their normal expiration date;

 

e.

 

All of your unvested and outstanding restricted stock and/or restricted
stock units and any other type of equity awards that are then unvested and outstanding, in each case, as of the date on which the
Employment Term ends shall vest and be settled within ten (10) business days after your Termination Date;

 

    	 	8	 

     

    

 

f.

 

Employer will continue to provide you with life insurance coverage
as set forth in Paragraph 5(b) until the end of the Original Employment Term (without regard to any earlier termination of the
Employment Term) or, if earlier, the date on which you become eligible for at least as much insurance coverage from a third party
employer at such employer’s expense; provided, however, that Employer may decrease the amount of life insurance coverage
it provides you so long as the amount of such coverage that it continues to provide, and the amount of such coverage provided to
you from a third party employer at such employer’s expense, aggregates at least the amount set forth in Paragraph 5(b); and

 

g.

 

You and your eligible dependents shall be entitled to continued
participation at your sole cost, in all medical, dental and hospitalization benefit plans or programs (the “Health and
Welfare Benefits”) in which you and/or they were participating on the date of the termination of your employment until
the earlier of (A) 36 months following termination of your employment and (B) the date, or dates, you receive equivalent coverage
and benefits under the plans and programs of a subsequent employer (the “Continuation Period”); but only
to the extent that you make a payment to Employer in an amount equal to the monthly premium payments (both the employee and employer
portion) required to maintain such coverage for a similarly situated active employee (and such employee’s dependants) of
Employer on or before the first day of each calendar month commencing with the first calendar month following Termination Date
and Employer shall reimburse you (on a tax-grossed up basis) for the amount of such premiums, if any, in excess of any employee
contributions necessary to maintain such coverage for the Continuation Period; provided, however, that, in the event Employer is
unable to provide you with the Health and Welfare Benefits during the Continuation Period under the terms of the applicable Employer
plan(s), Employer shall obtain comparable coverage for you and your dependants at no additional cost to you (including on a tax-grossed
basis, if applicable) during the Continuation Period.

 

11. Death. If you die during the Employment Term, your beneficiary
or estate shall be entitled to receive the following:

 

(i)

 

Employer will pay your Accrued Compensation and Benefits through
the date of your death;

 

(ii)

 

Employer will pay a prorated Bonus for the year of your death based
on your Target Bonus and the number of calendar days elapsed during the year through the date of your death;

 

(iii) all of your outstanding unvested Employer stock options will
vest; (iv)

 

all such options and all of your outstanding options that have previously
vested will remain exercisable for the period provided for under the terms of the applicable award agreement; and

 

(v)

 

all of your unvested and outstanding Restricted Stock and/or Restricted
Stock Units and any other type of equity award will vest and be settled within ten (10) business days after the date of your death.

 

12. Indemnification. The Company shall indemnify you to the
fullest extent allowed under applicable law. In connection therewith, the Company and you shall enter into an indemnification agreement,
in substantially the form attached hereto as Appendix A, on the execution date of this Agreement.

 

    	 	9	 

     

    

 

13. Disputes. Any disputes between the parties to this Agreement
shall be settled by arbitration in New York, New York under the auspices of the American Arbitration Association, before a panel
of three (3) arbitrators, in accordance with the National Rules for the Resolution of Employment Disputes promulgated by the Association.
Each party shall select an arbitrator and the two (2) arbitrators shall select a third and these three arbitrators shall form the
panel. The decision in such arbitration shall be final and conclusive on the parties and judgment upon such decision may be entered
into in any court having jurisdiction thereof.

 

Costs of the arbitration or litigation, including, without limitation,
reasonable attorneys’ fees and expenses of both parties, shall be borne by Employer if you prevail on at least one of the
issues that is the subject of the arbitration. If you do not so prevail, you and Employer shall equally share costs of the arbitration
or litigation and your attorneys’ fees, and the Employer shall bear its own attorneys’ fees and expenses. In any case
the Employer shall bear all your reasonable attorneys’ fees and expenses upfront. Nothing herein shall prevent Employer from
seeking equitable relief in court as provided for in Paragraph 7(i) or shall prevent either party from seeking equitable relief
in court in aid of arbitration under applicable law.

 

After this Agreement has been executed by Employer and a fully executed
copy returned to you via email / pdf or fax, it shall constitute a binding agreement between us.

 

Very truly yours,

 

	Anavex Life Sciences Corporation 	      June 27th, 2013 

 

	/s/ Tom Skarpelos	 
	Name: Tom Skarpelos 	 
	Title: Director 	 

 

ACCEPTED AND AGREED:

 

	/s/ Christopher Missling 	 
	 
	Christopher Missling, PhD 	      July 5th, 2013 

 

    	 	10	 

     

    

 

APPENDIX A

 

INDEMNIFICATION AGREEMENT

 

THIS INDEMNIFICATION AGREEMENT (the
“Agreement”) is made on July 5th, 2013, by and between Anavex Life Sciences Corporation, a Nevada corporation
(the “Company”), and Christopher Missling, PhD (the “Indemnitee”).

 

In consideration of the Indemnitee’s
past and future services to or on behalf of the Company and to benefit the Company, the Company and the Indemnitee hereby agree
as follows:

 

1. DEFINITIONS. For the purposes of
this Agreement: a) “Claim” means any threatened, pending or completed action, suit or proceeding, liability,
claim, damage, judgment, cost or expense (including attorneys’ fees, expenses, bonds and costs of investigation) or any inquiry
or investigation that the Indemnitee in good faith believes might lead to the institution of any such action, suit or proceeding,
whether civil, criminal, administrative, investigative or other. b) “Independent Counsel” means a law firm or
member of a law firm that has not within the last five years represented the Company or the Indemnitee in a matter material to
either or in a matter material to any other party to the action, suit or proceeding giving rise to the Indemnitee’s claim
for indemnification under this Agreement. Independent Counsel shall not include any member of a law firm who would have a conflict
of interest under applicable standards of professional conduct in representing the Company or the Indemnitee in an action hereunder.
Such Independent Counsel shall be chosen by the Indemnitee and approved by the Board of Directors of the Company (the “Board
of Directors”) which approval shall not be unreasonably withheld. c) “Reviewing Party” means (1) the
Board of Directors of the Company by a majority vote of a quorum consisting of directors who were not parties to the action, suit,
or proceeding, or (2) if such a quorum is not obtainable, or, even if obtainable a quorum of disinterested directors so directs,
by Independent Counsel in a written opinion, or (3) by the shareholders of the Company.

 

2. INDEMNITY. Subject to Sections 8
and 9 hereof, the Company agrees to indemnify and hold the Indemnitee harmless, to the fullest extent permitted by law, including,
but not limited to, the extent and in the manner herein provided, from and against any and all Claims of any type arising from
or related to his past or future acts or omissions as a director or officer of the Company and/or its subsidiaries (which term
shall mean any entities of which the Company owns directly, or through any such subsidiaries, at least 50% of the voting stock
(hereinafter referred to as “Subsidiaries”)), as applicable. This indemnity shall extend to all matters except
to the extent applicable law prohibits indemnification.

 

3. JUDGMENTS. Subject to Sections 8
and 9 hereof, the Company agrees to promptly pay on behalf of the Indemnitee any and all judgments against the Indemnitee for damages
arising from acts or omissions as a director or officer of the Company and/or its Subsidiaries when any such judgment becomes final
and subject to execution against the Indemnitee, to the full extent allowable under applicable law.

 

4. APPEAL BONDS. Subject to Sections
8 and 9 hereof, the Company shall pay the cost of, provide collateral for and cause to be timely and duly filed in Court, appellate
bonds to prevent execution of judgment against the Indemnitee during the pendency of appeals as the Indemnitee may reasonably initiate,
to the full extent allowable under applicable law.

 

5. COST OF DEFENSE. Subject to Sections
8 and 9 hereof, the Company shall promptly pay the reasonable cost of the defense of the Indemnitee against any and all Claims
against him arising from the Indemnitee’s past or future acts or omissions as a director or officer of the Company and/or
its Subsidiaries when statements for legal services are delivered to the Company or the Indemnitee (including any required retainer
amounts), to the full extent allowable under applicable law.

 

6. FINES, COSTS, FEES. Subject to Sections
8 and 9 hereof, the Company shall promptly pay on the Indemnitee’s behalf any fines, court costs, legal fees or other charges
assessed against him related to any Claim where allegations against the Indemnitee arise from his acts or omissions as a director
or officer of the Company and/or its Subsidiaries, to the full extent allowable under applicable law.

 

     

     

    

 

7. ADVANCE PAYMENT OF EXPENSES. Expenses
incurred by the Indemnitee in connection with defending a Claim shall be paid by the Company as they are incurred and in advance
of the final disposition of such Claim within twenty (20) days of receipt of an undertaking by the Indemnitee, in substantially
the same form as Exhibit “A” hereto, to repay such amount if it is ultimately determined by a court of competent jurisdiction
that he is not entitled to be indemnified by the Company. If the Company fails to advance any amounts required to be advanced under
this Section 7 within twenty (20) days after receipt of an undertaking by the Indemnitee, the Indemnity may at any time thereafter
bring suit against the Company for specific performance or to recover the unpaid amount. If successful in whole or in part, the
Indemnitee shall also be entitled to be paid the expense of prosecuting such claim.

 

8. GENERAL RIGHT TO INDEMNIFICATION.
Upon written demand by the Indemnitee for indemnification under the terms of this Agreement (unless otherwise ordered by a court
or advanced pursuant to Section 7 hereof or advanced pursuant to applicable law, as the same may be amended from time to time (but,
in the case of any such amendment with reference to events occurring prior to the effective date thereof, only to the extent that
such amendment permits the Company to provide broader indemnification rights than such law permitted the Company to provide prior
to such amendment)), the Indemnitee shall be entitled to such indemnification unless the Reviewing Party determines within thirty
(30) days of receiving Indemnitee’s written demand that the Indemnitee would not be permitted to be indemnified under applicable
law. The Indemnitee and its counsel shall be given an opportunity to be heard and to present evidence on the Indemnitee’s
behalf before the Reviewing Party. If the Reviewing Party determines that the Indemnitee is not entitled to indemnification, the
Reviewing Party shall provide the Indemnitee, concurrently with its determination, a detailed written explanation setting forth
its reasons. The failure to provide the Indemnitee with a detailed written explanation shall entitle the Indemnitee to a presumption
that the Indemnitee has met the applicable standard of conduct and that the unfavorable determination was wrongful in any subsequent
suit brought by either the Indemnity or the Company to determine whether the Indemnitee is entitled to indemnification.

 

9. RIGHT OF INDEMNITEE TO BRING SUIT.

 

a) If there has been no determination by the
Reviewing Party or if the Reviewing Party determines that the Indemnitee substantively would not be permitted to be indemnified
in whole or in part under applicable law, the Indemnitee shall have the right to bring suit seeking an initial determination by
the court or challenging any such determination by the Reviewing Party or any aspect thereof (and the Indemnitee shall be entitled
to any presumption specified in Section 8 hereof), and the Company hereby consents to service of process and to appear in any such
proceeding. Any determination by the Reviewing Party otherwise shall be conclusive and binding on the Company and the Indemnitee.

 

b) In any action brought by the Indemnitee
to enforce a right to indemnification hereunder, or by the Company to recover payments by the Company of expenses incurred by the
Indemnitee in connection with a Claim in advance of its final disposition, the burden of proving that the Indemnitee is not entitled
to be indemnified under this Agreement or otherwise shall be on the Company. Neither the failure of the Company or the Reviewing
Party to have made a determination prior to the commencement of such action that indemnification of the Indemnitee is proper in
the circumstances because the Indemnitee has met the applicable standard of conduct set forth under applicable law, nor an actual
determination by the Company or the Reviewing Party that the Indemnitee has not met such applicable standard of conduct, shall
create a presumption that the Indemnitee has not met the applicable standard of conduct or, in the case of such an action brought
by the Indemnitee, be a defense to the Claim.

 

c) The Company shall pay all expenses (including
attorneys’ fees) actually and reasonably incurred by the Indemnitee in connection with such judicial determination, whether
or not the Indemnitee prevails in such proceeding.

 

10. INSURANCE. If a loss, payment or
expense contemplated by this Agreement is paid by the Company and is also covered by collectible insurance, the Indemnitee shall
cooperate with the Company to effect collection of all available insurance and through assignment, reimbursement to the Company
or otherwise exercise all reasonable efforts to cause applicable insurance benefits to be paid to or on behalf of the Company,
thus reducing the Company’s payments under this Agreement.

 

    	 	2	 

     

    

 

11. LAW, CONSTRUCTION, ARBITRATION.
This Agreement is to be liberally construed to provide the Indemnitee with the broadest indemnity permitted by applicable law and
ambiguities in the terms of this Agreement, if any, choice of law, or construction of laws are to be resolved in the Indemnitee’s
favor. The Indemnitee shall be entitled to the benefits of all changes in law, whether effected by statute, regulation, rule, judicial
decision or otherwise, which in any way expand his right to be indemnified by the Company or to have the Company advance his expenses.
The laws of the State of New York shall apply.

 

12. OTHER MEANS OF INDEMNITY. The Company
acknowledges that the benefits to the Indemnitee of this Agreement are not exclusive and that the Indemnitee retains all rights
of indemnity or repayment from the Company that are available to him by applicable law, other agreements, the Articles of Incorporation
and By-Laws of the Company and/or its Subsidiaries or by vote of the Board of Directors or shareholders of the Company.

 

13. SUBROGATION. In the event of payment
under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of the Indemnitee,
who shall execute all papers required and shall do everything that may be necessary to secure such rights, including the execution
of such documents necessary to enable the Company to bring suit to enforce such rights.

 

14. NO DUPLICATION OF PAYMENTS. The
Company shall not be liable under this Agreement to make any payment in connection with any Claim made against the Indemnitee to
the extent the Indemnitee has otherwise actually received payment (under any insurance policy or otherwise).

 

15. TERM. This Agreement shall remain
in full force and effect until terminated by the mutual consent of the parties in writing. Termination of the Indemnitee’s
status as a director or officer of the Company and/or its Subsidiaries does not terminate this Agreement. This Agreement shall
inure to the benefit of the Indemnitee, his estate, heirs, and the personal representative (executor/administrator) of his estate.

 

16. GOOD FAITH. If any dispute arises
under this Agreement or any attack is made by any party related to the enforcement of this Agreement, it shall be conclusively
presumed that the Indemnitee acted in good faith in executing this Agreement and for the best interest of the Company. The Company
acknowledges that it is fully informed of all decisions and votes made by the Indemnitee in the past, if any, and recognizes its
right to keep itself informed in the future.

 

17. DEFENSE. If any claim is threatened
or commenced against the Indemnitee other than by or on behalf of the Company, he shall notify the Company in writing. His failure
to do so or to do so promptly, however, shall not diminish his rights under this Agreement except to the extent the Company demonstrates
by clear and convincing evidence that his failure caused it actual damage. The Company may assume the defense of the claim, but
only if it pays all costs and expenses of defense, acknowledges to the Indemnitee in writing that it is obligated to indemnify
him with respect to the claim, and permits him to select defense counsel. Any counsel the Indemnitee selects shall be reasonably
satisfactory to the Company. If the Company assumes the defense, the Indemnitee shall cooperate with the Company in that defense
if it pays his costs and expenses of doing so. The Company shall not settle any claim in any manner which would impose a penalty,
liability or limitation on the Indemnitee unless the Indemnitee first consents to the settlement in writing. He shall not withhold
his consent unreasonably.

 

18. SEVERABILITY. If any provision of
this Agreement shall be held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining
provisions (including portions of any paragraph of this Agreement containing an invalid, illegal or unenforceable provision) shall
not be impaired. To the extent practicable, any invalid, illegal or unenforceable provision of this Agreement shall be deemed modified
as necessary to comply with all applicable laws.

 

    	 	3	 

     

    

 

19. AMENDMENTS AND WAIVERS. No amendment
of this Agreement shall be binding unless the amendment is written and executed by both parties. Any waiver of a provision of this
Agreement shall not constitute a waiver of any other provision.

 

20. SPECIFIC PERFORMANCE. The parties
hereto agree that irreparable damage would occur in the event that any provision of this Agreement was not performed in accordance
with the terms hereof and that the parties shall be entitled to specific performance of the terms hereof, in addition to any other
remedy at law or in equity.

 

IN WITNESS WHEREOF, the parties hereto
have caused this Indemnification Agreement to be duly executed as of the date first above written.

 

By: Anavex Life Sciences Corporation

 

	Tom Skarpelos	 	Christopher Missling
	 	 	 
	Name: Tom Skarpelos 	 	Name: Christopher Missling, PhD 
	Title: Director 	 	 

 

    	 	4	 

     

    

 

EXHIBIT “A”

 

UNDERTAKING

 

WHEREAS, the undersigned is a defendant in an action brought
in (insert name and location of court) entitled (insert name and number of action) (the “Action”); and

 

WHEREAS, the Board of Directors of ___________ , a _______
corporation (the “Corporation”), has authorized, subject to receipt by the Corporation of an appropriate undertaking,
the payment by the Corporation in advance of the final disposition of the Action of expenses (including, without limitation, attorneys’
fees) reasonably incurred by the undersigned in defending the Action; and

 

WHEREAS, any amounts paid to or on behalf of the undersigned
in advance of the final disposition of the Action by the Corporation for expenses (including, without limitation, attorneys’
fees) reasonably incurred in defending the Action shall be paid without prejudice to any rights to which the Corporation or the
undersigned may otherwise be entitled;

 

NOW, THEREFORE, the undersigned does hereby undertake to
repay to the Corporation any amounts heretofore or hereafter paid by the Corporation to or on behalf of the undersigned in advance
of the final disposition of the Action for expenses (including, without limitation, attorneys’ fees) actually and reasonably
incurred in defending the Action, if it shall ultimately be determined that the undersigned is not entitled to be indemnified by
the Corporation pursuant to applicable law or the Corporation’s By-Laws.

 

Dated:

 

__________________________________

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