Document:

Exhibit
    10.2

 

August 8th , 2009

 

Bob Peterson

4129 White Chapel Way

Raleigh, North Carolina 27615

(949) 295-5291

petersbo@aol.com

 

Dear Bob,

 

NephroGenex,
Inc. (the “Company”) is pleased to offer you employment on the following terms:

 

1.          Position.
  Your title will be Vice President of Operations, and you will report to the Company’s President and CEO. This is a full-time
position. While you render services to the Company, you will not engage in any other employment, consulting or other business
activity (whether full-time or part-time) that would create a conflict of interest with the Company. By
signing this letter agreement, you confirm to the Company that you have no contractual commitments or other legal obligations
that would prohibit you from performing your duties for the Company.

 

2.          Cash
Compensation.   The Company will pay you a starting salary at the rate of $210,000 per year payable in accordance with the Company’s
standard payroll schedule. This salary will be subject to adjustment pursuant to the Company’s employee compensation policies
in effect from time to time. In addition, you will be eligible to be considered for an incentive bonus
for each fiscal year of the Company.  The bonus (if any) will be awarded based on objective
or subjective criteria established by the Company’s Chief Executive Officer and approved by the Company’s Board
of Directors. Your target bonus will be equal to 30% of your annual base salary. You will be eligible for the bonus after 12 months
of employment. Any bonus for the fiscal year in which your employment begins will be prorated, based on the number of days you
are employed by the Company during that fiscal year. The bonus for a fiscal year will be paid after the Company’s books
for that year have been closed and will be paid only if you are employed by the Company at the time of payment.
The determinations of the Company’s Board of Directors with respect to your bonus will be final and binding.

 

3.          Employee
Benefits.   As a regular employee of the Company, you will be eligible to participate in the Company-sponsored healthcare benefits
program. In addition, you will be entitled to three weeks of paid vacation in accordance with the Company’s vacation policy.

 

4.          Stock
Options.   Subject to the approval of the Company’s Board of Directors, you will be granted an option to purchase 150,000
stock options. The exercise price per share will be determined by the Board of Directors when the Option is granted. The option

 

    	 

    	 

    

 

Bob Peterson

August 8th, 2009

Page 2

 

will
be subject to the terms and conditions applicable to options granted under the Company’s 2005 Stock Plan (the “Plan”),
as described in the Plan and in each applicable Stock Option Agreement. The
term of such options shall be 10 years, subject to earlier expiration in the event of the termination of the Employee’s
Employment. The grant of such options shall be subject to the other terms and conditions set forth in the Option Plan and in the
Stock Option Agreement related to each grant. Stock options will vest in equal monthly installments over the next 48 months of
continuous service provided by you to the Company. Furthermore, if the Company is subject to a Change in Control (as defined below)
before your service with the Company terminates, and if you are subject to an Involuntary Termination (as defined below) within
12 months after that Change of Control, then 100% of the then-unvested shares subject to each option shall become vested

 

5.          Proprietary
Information and Inventions Agreement.   Like all Company employees, you will be required, as a condition of your employment
with the Company, to sign the Company’s standard Proprietary Information and Inventions Agreement, a copy of which is attached
hereto as Exhibit A.

 

6.          Employment
Relationship.   Employment with the Company is for no specific period of time. Your employment with the Company will be “at
will,” meaning that either you or the Company may terminate your employment at any time and for any reason, with or without
cause. Any contrary representations that may have been made to you are superseded by this letter agreement. This is the full and
complete agreement between you and the Company on this term. Although your job duties, title, compensation and benefits, as well
as the Company’s personnel policies and procedures, may change from time to time, the “at will” nature of your
employment may only be changed in an express written agreement signed by you and a duly authorized officer of the Company (other
than you).

 

7.          Taxes.
  All forms of compensation referred to in this letter agreement are subject to reduction to reflect applicable withholding and
payroll taxes and other deductions required by law. You agree that the Company does not have a duty to design its compensation
policies in a manner that minimizes your tax liabilities, and you will not make any claim against the Company or its Board of
Directors related to tax liabilities arising from your compensation.

 

8.          Interpretation,
Amendment and Enforcement.   This letter agreement and Exhibit A constitute the complete agreement between you and the
Company, contain all of the terms of your employment with the Company and supersede any prior agreements, representations or understandings
(whether written, oral or implied) between you and the Company. This letter agreement may not be amended or modified, except by
an express written agreement signed by both you and a duly authorized officer of the Company. The terms of this letter agreement
and the resolution of any disputes as to the meaning, effect, performance or validity of this letter agreement or arising out
of, related to, or in any way connected with, this letter agreement, your employment with the Company or any other relationship
between you and the Company (the “Disputes”) will be governed by New Jersey law, excluding laws relating to conflicts
or choice of law. You and the Company submit to the exclusive personal jurisdiction of the federal and state courts located in
New Jersey in connection with any Dispute or any claim related to any Dispute.

 

    	 

    	 

    

 

Bob Peterson

August 8th, 2009

Page 3

 

9.          Arbitration.
  Any controversy or claim arising out of this letter agreement and any and all claims relating to your employment with the Company
will be settled by final and binding arbitration. The arbitration will take place in New Jersey or, at your option, the County
in which you primarily worked when the arbitrable dispute or claim first arose. The arbitration will be administered by the American
Arbitration Association under its National Rules for the Resolution of Employment Disputes. Any award or finding will be confidential.
You and the Company agree to provide one another with reasonable access to documents and witnesses in connection with the resolution
of the dispute. You and the Company will share the costs of arbitration equally. Each party will be responsible for its own attorneys’
fees, and the arbitrator may not award attorneys’ fees unless a statute or contract at issue specifically authorizes such
an award. This Section 9 does not apply to claims for workers’ compensation benefits or unemployment insurance benefits.
This Section 9 also does not apply to claims concerning the ownership, validity, infringement, misappropriation, disclosure,
misuse or enforceability of any confidential information, patent right, copyright, mask work, trademark or any other trade secret
or intellectual property held or sought by either you or the Company (whether or not arising under the Proprietary Information
and Inventions Agreement between you and the Company).

 

10.        Definitions.
  The following terms have the meaning set forth below wherever they are used in this letter agreement:

 

“Cause”
means (a) an unauthorized use or disclosure by you of the Company’s confidential information or trade secrets, which
use or disclosure causes material harm to the Company; (b) a material breach by you of any agreement between you and the Company;
(c) a material failure by you to comply with the Company’s written policies or rules; (d) your conviction of, or plea of
“guilty” or “no contest” to, a felony under the laws of the United States or any State thereof; (e) your
gross negligence or willful misconduct; (f) a continuing failure by you to perform assigned duties after receiving written notification
of such failure from the Board of Directors; or (g) your failure to cooperate in good faith with a governmental or internal investigation
of the Company or its directors, officers or employees, if the Company has requested your cooperation.

 

“Change
in Control” means (a) the consummation of a merger or consolidation of the Company with or into another entity
or (b) the dissolution, liquidation or winding up of the Company. The foregoing notwithstanding, a merger or consolidation
of the Company does not constitute a “Change in Control” if immediately after the merger or consolidation a majority
of the voting power of the capital stock of the continuing or surviving entity, or any direct or indirect parent corporation of
the continuing or surviving entity, will be owned by the persons who were the Company’s stockholders immediately prior to
such merger or consolidation in substantially the same proportions as their ownership of the voting power of the Company’s
capital stock immediately prior to the merger or consolidation.

 

“Involuntary
Termination” means either (a) your involuntary discharge by the Company (or the Company’s parent or subsidiary
employing you) for reasons other than Cause or (b) your voluntary resignation following (i) a change in your position
with the Company (or

 

    	 

    	 

    

 

Bob Peterson

August 8th, 2009

Page 4

 

with
the Company’s parent or subsidiary employing you) that materially reduces your level of authority or responsibility, (ii) a
reduction in your base salary by more than 10% or (iii) receipt of notice that your principal workplace will be relocated
more than 30 miles.

 

* * * * *

 

We
hope that you will accept our offer to join the Company. You may indicate your agreement with these terms and accept this offer
by signing and dating both the enclosed duplicate original of this letter agreement and the enclosed Proprietary Information and
Inventions Agreement and returning them to me. This offer, if not accepted, will expire at the close of business on August 12th,
2009. As required by law, your employment with the Company is contingent upon your providing legal proof of your identity and
authorization to work in the United States. Your employment is also contingent upon your starting work with the Company on or
before September 15th, 2009.

 

If
you have any questions, please call me at (919) 349 4954.

 

	 	Very truly yours,
	 	 
	 	NephroGenex, Inc.
	 	 	 
	 	By:	/s/ J. Wesley Fox
	 	Title:      President and CEO

 

I have read and accept this employment
offer:

 

	/s/ Bob Peterson	 
	Signature of Bob Peterson	 
	 	 
	Dated:	8/8/09	 

 

Attachment

 

Exhibit A: Proprietary
Information and Inventions AgreementExhibit 10.3

 

Employment
Agreement

 

This
Agreement is entered into as of April 30, 2007, by and between J.
Wesley Fox (the “Employee”) and NephroGenex,
Inc., a Delaware corporation (the “Company”).

 

1.        Duties
and Scope of Employment.

 

(a)      Position. For
the term of his employment under this Agreement (the “Employment”), the Company agrees to employ the Employee in the
position of Chief Executive Officer or in such other position as the Company subsequently may assign to the Employee. The Employee
shall report to the Company’s Board of Directors (the “Board”) or to such other person as the Board subsequently
may determine. The Employee’s duties shall be determined from time to time by the Board.

 

(b)      Obligations to
the Company. During his Employment, the Employee (i) shall devote his full business efforts and time to the Company, (ii) shall
not engage in any other employment, consulting or other business activity that would create a conflict of interest with the Company,
(iii) shall not assist any person or entity in competing with the Company or in preparing to compete with the Company and
(iv) shall comply with the Company’s policies and rules, as they may be in effect from time to time.

 

(c)      No Conflicting
Obligations. The Employee represents and warrants to the Company that he is under no obligations or commitments, whether contractual
or otherwise, that are inconsistent with his obligations under this Agreement. The Employee
represents and warrants that he will not use or disclose, in connection with his Employment, any trade secrets or other proprietary
information or intellectual property in which the Employee or any other person has any right, title or interest and that his Employment
will not infringe or violate the rights of any other person.  The Employee represents and warrants to the Company that he
has returned all property and confidential information belonging to any prior employer.

 

(d)      Additional
Representations. The Employee represents and warrants to the Company that he has not been debarred, and has not been
convicted of a crime that could lead to disbarment, under the Generic Drug Enforcement Act and that he has not been debarred or
excluded or otherwise made ineligible to participate in a “Federal Health Care Program” (as defined in 42 U.S.C. §1320a
(b(f)) or in any other governmental payment program.

 

2.       Cash
and Incentive Compensation.

 

(a)      Salary. The
Company shall pay the Employee as compensation for his services a base salary at a gross annual rate of not less than $250,000
which will commence on April 1, 2007. Such salary shall be payable in accordance with the Company’s standard payroll procedures.
(The annual compensation specified in this Subsection (a), together with any increases in such compensation that the Company
may grant from time to time, is referred to in this Agreement as “Base Salary.”)

 

    	 

    	 

    

 

(b)      Incentive
Bonuses. The Employee shall be eligible to be considered for an annual incentive bonus which will be proposed by the Compensation
Committee of the Board for Board approval. The determinations of the Board or its Compensation Committee with respect to such bonus
shall be final and binding. The Employee shall not be entitled to a bonus if he is not employed by the Company on the date when
such bonus is payable. The Employee’s bonus for the year in which the Third Closing (as defined in that certain Series A
Preferred Stock Purchase Agreement by and among the Company and the parties listed on Schedule A thereto, dated as of the
date hereof (the “Purchase Agreement”)) occurs will be at least $100,000.

 

(c)      Stock Options.
Subject to the approval of the Board or the Compensation Committee of the Board, the Company
shall grant the Employee options to purchase a total of 669,454 shares of the Company’s Common Stock pursuant to the NephroGenex,
Inc. 2005 Stock Option Plan as amended from time to time (the “Option Plan”). An initial option to purchase 176,978
shares of the Company’s Common Stock shall be granted as soon as reasonably
practicable after the date of this Agreement. A second option to purchase 492,476 shares of the Company’s Common Stock shall
be granted as soon as reasonably practicable after the Second Closing (as defined
in the Purchase Agreement). The exercise price of such options shall be the fair market value of such stock on the date
of grant. The term of such options shall be 10 years, subject to earlier expiration in the
event of the termination of the Employee’s Employment. The grant of such options shall be subject to the other terms and
conditions set forth in the Option Plan and in the Stock Option Agreement related to each grant; provided, however, that the vesting
schedule, as provided more specifically in each Stock Option Agreement, will be: (i) 25% at the end of the first year, or immediately
upon a termination without cause in the first year; (ii) the remainder vesting on a quarterly basis over the subsequent 3 years.

 

3.       Vacation
and Employee Benefits. During his Employment, the Employee shall be eligible for paid vacations
in accordance with the Company’s vacation policy, as it may be amended from time to time. During his Employment, the Employee
shall be eligible to participate in the employee benefit plans maintained by the Company, subject in each case to the generally
applicable terms and conditions of the plan in question and to the determinations of any person or committee administering such
plan. Until the Company implements a healthcare benefit plan, the Employee’s salary will be increased by $3,000 per month.

 

4.       Business
Expenses. During his Employment, the Employee shall be authorized to incur necessary and reasonable
travel, entertainment and other business expenses in connection with his duties hereunder. The Company shall reimburse the Employee
for such expenses upon presentation of an itemized account and appropriate supporting documentation, all in accordance with the
Company’s generally applicable policies.

 

5.       Term
of Employment.

 

(a)      Termination of
Employment. The Company may terminate the Employee’s Employment at any time and for any reason (or no reason), and with
or without Cause, by giving the Employee notice in writing. The Employee may terminate his Employment by giving the Company 30
days’ advance notice in writing. The Employee’s Employment shall

 

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terminate automatically in
the event of his death. The termination of the Employee’s Employment shall not limit or otherwise affect his obligations
under Section 7.

 

(b)      Employment at Will.
The Employee’s Employment with the Company shall be “at will,” meaning that either the Employee or the Company
shall be entitled to terminate the Employee’s Employment at any time and for any reason, with or without Cause. Any contrary
representations that may have been made to the Employee shall be superseded by this Agreement. This Agreement shall constitute
the full and complete agreement between the Employee and the Company on the “at will” nature of the Employee’s
Employment, which may only be changed in an express written agreement signed by the Employee and a duly authorized officer of the
Company.

 

(c)      Rights Upon Termination.
Except as expressly provided in Section 6, upon the termination of the Employee’s Employment, the Employee shall only
be entitled to the compensation, benefits and expense reimbursements that the Employee has earned under this Agreement before the
effective date of the termination. The payments under this Agreement shall fully discharge all responsibilities of the Company
to the Employee.

 

6.       Termination
Benefits.

 

(a)      Preconditions.
Any other provision of this Agreement notwithstanding, Subsections (b) and (c) below shall not apply unless the Employee:

 

(i)       Has executed
a general release of all claims (in a form prescribed by the Company);

 

(ii)      Has returned
all property of the Company in the Employee’s possession; and

 

(iii)      If requested
by the Board, has resigned as a member of the Board and as a member of the Boards of Directors of all subsidiaries of the Company,
to the extent applicable.

 

(b)      Severance Pay.
If, during the term of this Agreement, the Company terminates the Employee’s Employment for any reason other than Cause or
Permanent Disability, then the Company shall pay the Employee his Base Salary for a period of (i) 6 months following the termination
of his Employment if such termination occurs prior to the closing of the Second Tranche; or (ii) 12 months following the termination
of his Employment if such termination occurs after the closing of the Second Tranche (the “Continuation Period”). Such
Base Salary shall be paid at the rate in effect at the time of the termination of Employment and in accordance with the Company’s
standard payroll procedures. However, the amount of the salary continuation payments under this Subsection (b) shall be reduced
by the amount of any severance pay or pay in lieu of notice that the Employee receives from the Company under a federal or state
statute (including, without limitation, the Worker Adjustment and Retraining Notification Act). The severance payments under this
Subsection (b) shall in no event commence prior to the earliest date permitted by Section 409A(a)(2) of the Internal
Revenue Code of 1986, as amended (the “Code”). If the commencement of such severance payments

 

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must be delayed, as determined
by the Company, then the deferred installments shall be paid in a lump sum on the earliest practicable date permitted by Section 409A(a)(2)
of the Code.

 

(c)      Health Insurance.
If Subsection (b) above applies, and if the Employee elects to continue health insurance coverage under the Consolidated Omnibus
Budget Reconciliation Act (“COBRA”) for himself and, if applicable, his dependents following the termination of his
Employment, then the Company shall pay the employer portion of the monthly premium under COBRA for the Employee and, if applicable,
such dependents until the earliest of (i) the close of the Continuation Period, (ii) the expiration of the Employee’s
continuation coverage under COBRA or (iii) the date when the Employee receives substantially equivalent health insurance coverage
in connection with new employment or self-employment.

 

(d)      Definition of “Cause.”
For all purposes under this Agreement, “Cause” shall mean:

 

(i)       An unauthorized
use or disclosure by the Employee of the Company’s confidential information or trade secrets, which use or disclosure causes
material harm to the Company;

 

(ii)      A material
breach by the Employee of any agreement between the Employee and the Company;

 

(iii)      A material
failure by the Employee to comply with the Company’s written policies or rules;

 

(iv)     The Employee’s
conviction of, or plea of “guilty” or “no contest” to, a felony under the laws of the United States or
any State thereof;

 

(v)      The Employee’s
gross negligence or willful misconduct;

 

(vi)     A continuing
failure by the Employee to perform assigned duties after receiving written notification of such failure from the Board;

 

(vii)    A failure
by the Employee to cooperate in good faith with a governmental or internal investigation of the Company or its directors, officers
or employees, if the Company has requested the Employee’s cooperation; or

 

(viii)    The Employee’s
debarment, or conviction of a crime that could lead to disbarment, under the Generic Drug Enforcement Act or the Employee’s
being debarred, excluded or otherwise made ineligible to participate in a “Federal Health Care Program” (as defined
in 42 U.S.C. §1320a (b(f)) or in any other governmental payment program.

 

(e)      Definition of “Permanent
Disability.” For all purposes under this Agreement, “Permanent Disability” shall mean the Employee’s
inability to perform the essential functions of the Employee’s position, with or without reasonable accommodation, for a
period of at least 120 consecutive days because of a physical or mental impairment.

 

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7.       Non-Solicitation
and Non-Disclosure.

 

(a)      Non-Solicitation.
During the period commencing on the date of this Agreement and continuing until the second anniversary of the date when the Employee’s
Employment terminated for any reason, the Employee shall not directly or indirectly, personally or through others, solicit or attempt
to solicit (on the Employee’s own behalf or on behalf of any other person or entity) either (i) the employment of any
employee or consultant of the Company or any of the Company’s affiliates or (ii) the business of any customer of the
Company or any of the Company’s affiliates.

 

(b)      Non-Disclosure.
The Employee has entered into a Proprietary Information and Inventions Agreement with the Company, which is incorporated herein
by this reference.

 

8.       Successors.

 

(a)      Company’s
Successors. This Agreement shall be binding upon any successor (whether direct or indirect and whether by purchase, lease,
merger, consolidation, liquidation or otherwise) to all or substantially all of the Company’s business and/or assets. For
all purposes under this Agreement, the term “Company” shall include any successor to the Company’s business and/or
assets which becomes bound by this Agreement.

 

(b)      Employee’s
Successors. This Agreement and all rights of the Employee hereunder shall inure to the benefit of, and be enforceable by, the
Employee’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.

 

9.       Arbitration.
Any controversy or claim arising out of this Agreement and any and all claims relating to the Employee’s Employment with
the Company shall be settled by final and binding arbitration. The arbitration shall take place in New York, New York or, at the
Employee’s option, the County in which the Employee primarily worked when the arbitrable dispute or claim first arose. The
arbitration shall be administered by the American Arbitration Association under its National Rules for the Resolution of Employment
Disputes. Any award or finding shall be confidential. The Employee and the Company agree to provide one another with reasonable
access to documents and witnesses in connection with the resolution of the dispute. The Employee and the Company shall share the
costs of arbitration equally. Each party shall be responsible for its own attorneys’ fees, and the arbitrator may not award
attorneys’ fees unless a statute or contract at issue specifically authorizes such an award. This Section 9 shall not
apply to claims for workers’ compensation benefits or unemployment insurance benefits. This Section 9 also shall not
apply to claims concerning the ownership, validity, infringement, misappropriation, disclosure, misuse or enforceability of any
confidential information, patent right, copyright, mask work, trademark or any other trade secret or intellectual property held
or sought by either the Employee or the Company (whether or not arising under the Proprietary Information and Inventions Agreement
between the Employee and the Company).

 

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10.     Miscellaneous
Provisions.

 

(a)      Notice. Notices
and all other communications contemplated by this Agreement shall be in writing and shall be deemed to have been duly given when
personally delivered, when delivered by a nationally recognized overnight courier with delivery charges prepaid, or when mailed
by U.S. registered or certified mail, return receipt requested and postage prepaid. In the case of the Employee, mailed notices
shall be addressed to him at the home address that he most recently communicated to the Company in writing. In the case of the
Company, mailed notices shall be addressed to its corporate headquarters, and all notices shall be directed to the attention of
its Secretary.

 

(b)      Modifications and
Waivers. No provision of this Agreement shall be modified, waived or discharged unless the modification, waiver or discharge
is agreed to in writing and signed by the Employee and by an authorized officer of the Company (other than the Employee). No waiver
by either party of any breach of, or of compliance with, any condition or provision of this Agreement by the other party shall
be considered a waiver of any other condition or provision or of the same condition or provision at another time.

 

(c)      Whole Agreement.
This Agreement supersedes the Employment Agreement by and between the Company and the Employee dated December 1, 2004. No other
agreements, representations or understandings (whether oral or written and whether express or implied) that are not expressly set
forth in this Agreement have been made or entered into by either party with respect to the subject matter hereof. This Agreement
and the Proprietary Information and Inventions Agreement contain the entire understanding of the parties with respect to the subject
matter hereof.

 

(d)      Taxes. All
payments made under this Agreement shall be subject to reduction to reflect taxes or other charges required to be withheld by law.
The Company shall not have a duty to design its compensation policies in a manner that minimizes the Employee’s tax liabilities,
and the Employee shall not make any claim against the Company or the Board related to tax liabilities arising from the Employee’s
compensation.

 

(e)      Choice of Law and
Severability. This Agreement shall be interpreted in accordance with the laws of the State of New Jersey (except their provisions
governing the choice of law). If any provision of this Agreement becomes or is deemed invalid, illegal or unenforceable in any
applicable jurisdiction by reason of the scope, extent or duration of its coverage, then such provision shall be deemed amended
to the minimum extent necessary to conform to applicable law so as to be valid and enforceable or, if such provision cannot be
so amended without materially altering the intention of the parties, then such provision shall be stricken and the remainder of
this Agreement shall continue in full force and effect. If any provision of this Agreement is rendered illegal by any present or
future statute, law, ordinance or regulation (collectively the “Law”), then such provision shall be curtailed or limited
only to the minimum extent necessary to bring such provision into compliance with the Law. All the other terms and provisions of
this Agreement shall continue in full force and effect without impairment or limitation.

 

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(f)       No Assignment.
This Agreement and all rights and obligations of the Employee hereunder are personal to the Employee and may not be transferred
or assigned by the Employee at any time. The Company may assign its rights under this Agreement to any entity that assumes the
Company’s obligations hereunder in connection with any sale or transfer of all or a substantial portion of the Company’s
assets to such entity.

 

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

 

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

 

	 	/s/ J. Wesley Fox
	 	J. Wesley Fox
	 	 
	 	NephroGenex, Inc.
	 	 
	 	By  	/s/ J. Wesley Fox

 

	 	Title:  	  President and CEO

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