Document:

Exhibit
10.9

 

EMPLOYMENT
AGREEMENT

 

This
Employment Agreement (the “Agreement”)
is made and entered into March 26, 2021,
(the “Effective Date”)
between AMMO, Inc., a Delaware corporation (the “Company”),
and Robert Goodmanson (“Employee”)
. Company
and Employee are sometimes referred to individually as “Party” and collectively as “Parties”.

 

RECITALS

 

A.
The Company is a public company and its securities are quoted in the over-the-counter market under the ticker symbol “POWW”;
and

 

B.
The Employee has experience in running public and private companies
and the Company desires to hire Employee
to serve as its President.

 

C.
The Company and Employee desire to embody the terms and conditions of Employee’s employment in a written agreement, which will
supersede all prior agreements of employment,
whether written or oral, between the Company and Employee, pursuant to the terms and conditions set forth herein.

 

NOW,
THEREFORE, in consideration of their mutual covenants and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the Parties agree as follows:

 

ARTICLE
I.

EMPLOYMENT
DUTIES AND TERM

 

Section
1.1 Employment.

 

(a)
The Company shall employ Employee as its President. In this capacity,
Employee shall perform such duties,
assume such responsibilities and devote such time, attention and energy to the business of the Company at such locations as the Company’s
officers or Employee’s supervisor shall from time to time require.

 

(b)
Employee shall not, during the term of Employee’s
employment hereunder, be engaged in any other activities if such activities materially interfere with Employee’s duties and responsibilities
for the Company.

 

(c)
Employee shall perform the following duties: See Exhibit “A” for list of duties

 

Section
1.2 Term. The term of this Agreement shall commence on the date first written above and shall continue, unless sooner terminated,
until three (3) years following the Execution Date (the “Initial
Term”);
provided the
Parties may
mutually elect
to
terminate this Agreement at any time upon ninety (90) days written
notice.
Either Party shall have the right to extend this Agreement for up to three (3) additional one (1) year
terms
(the “Additional
Terms,”
and collectively with the Initial Term, the “Term”).

 

    	 

     

    

 

ARTICLE
II.

COMPENSATION

 

Section
2.1 Compensation. During the Term of Employment, Company shall pay and Employee shall receive the following compensation:

 

(a)
Salary. The Company shall pay Employee Two Hundred and Forty Thousand Dollars ($240,000.00)
per year during the Term paid in accordance with Company’s normal payroll practices (“Salary”). 

 

(b)
Stock Compensation. Employee shall earn an aggregate 390,000 shares during the Initial Term, or 130,000 shares of restricted
stock in the Company (the “Shares”)
per year, which shall be earned and
issued on a quarterly basis as is set forth on Exhibit “B”
(the Restricted Shares Compensation”).
Exhibit C sets forth the stock restrictions of the Shares (the
“Share Restrictions”). Company
and Employee agree that Employee may file a Section 83(b) election with the Internal Revenue Service in a form to be agreed to prior
to the Commencement of Employment (the “Shares
Grant Date”) and which shall be
filed by Employee within thirty (30) days of the Shares Grant Date.

 

(i)
The Restricted Share Compensation issued pursuant to this Section 2.1, in each case shall not be subject to adjustment in the
event of a stock split, stock dividend, recapitalization or similar event. The amounts granted herein are intended to remain unchanged
by such events unless expressly agreed upon by Employee and Company.

 

Section
2.2 Participation in Employee Benefit Plans; Incentive Programs. Employee shall be entitled to participate in any employee
benefit plans, the
Company may establish or adopt for the benefit of employees of the Company. 

 

(a) Life
Insurance. The Company will pay for a life insurance policy for Employee during the Term, for policy amount of
$200,000.

 

Section
2.3 Time Off. Employee shall be entitled to 4 weeks of paid time off per year,
whether because of sickness, vacation
or to service Employee’s
outside business interest as Employee shall determine (“Time
Off”).
The timing of vacations shall be scheduled
in a manner reasonably acceptable to the Company. Accrued but unused Time Off shall roll over to the next fiscal year and shall not be
‘use it or lose it’ Time Off.

 

Section
2.4 Expenses.
The Company shall reimburse Employee’s
reasonable and actual out-of-pocket expenses incurred by Employee which are approved in advance by the Company in the performance of
his duties and responsibilities under this Agreement.

 

(a)
Living Expense. Company shall pay Employee a $2,500 living stipend for the first year of the Term (12 months) to cover moving
and living expenses associated with relocation pursuant to this agreement.

 

    	2

     

    

 

ARTICLE
III.

TERMINATION
OF EMPLOYMENT

 

Section
3.1 Death & Disability of Employee. In the event of the Employee’s death during the Term of Employment, this Agreement
shall terminate immediately. If, during the Term, the Employee shall suffer a “Disability” within the meaning of Section
22(e)(3) of the Internal Revenue Code of 1986, the Company may terminate the Employee’s employment. Section 22(e)(3) provides,
in relevant part: “An individual is permanently and totally disabled if he is unable to engage in any substantial gainful activity
by reason of any medically determinable physical or mental impairment which
can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months.”
In the event the Employee is terminated due to death or Disability, the Employee (or his estate in the event of his death) shall be receive
(i) all of Employee’s unpaid Salary
and a severance benefit of three (3) months pay, (ii) all Restricted Share Compensation, including the unvested portion, (iii) all reimbursable
expenses and benefits owing to Employee through the date of Employee’s death together with any benefits payable under any life
insurance program in which Employee is a participant, if applicable, and (iv) Employee’s estate shall be entitled to pro-rata share
of the Bonus at the end the respective fiscal year.

 

Section
3.2 Termination With Cause By Company.
The Company may terminate this Agreement at any time during the Term for “Cause” upon written notice to Employee, upon which
termination shall be effective immediately. For purposes of this Agreement, “Cause” means the following, without limitation:

 

	 	(a)	Willful
    misconduct or willful failure by the Employee to perform his responsibilities to the Company or
	 	(b)	The
    conviction for any major felony involving moral turpitude that reflects adversely upon the standing of the Company in the community.

 

Section
3.3 Termination Without Cause By Company. The Company may terminate this Agreement at any time during the Term without
“Cause” upon 30 days written notice to Employee.

 

Section
3.4 Termination By Employee for Good Reason. Employee may terminate this Agreement at any time by providing the Company
30 days’ written notice, with or without “Good Reason.” For purposes hereof,
the term “Good Reason” shall exist upon (i) a material diminution in the Employees’ Salary; (ii) a material diminution
in the Employee’s authority, duties or responsibilities; (iii) a material change in geographic location at which the Employee performs
services; or (iv) any material breach by the Company of this Agreement. “Good Reason Process” means the following series
of actions: (i) the Employee reasonably determines in good faith that Good Reason exists, (ii) the Employee notifies the Company or the
acquiring or succeeding corporation (if applicable) in writing of the existence of Good Reason within 60 days of the occurrence of the
event that gave rise to the existence of Good Reason, (iii) the Employee cooperates in good faith with the Company’s (or the acquiring
or succeeding corporations, if applicable) efforts to remedy the conditions that gave rise to the existence of Good Reason for a period
of 30 days following such notice (such 30 day period, the “Cure Period”), (iv) notwithstanding such efforts, Good Reason
continues to exist and (v) the Employee terminates his employment within 30 days after the end of the Cure Period. For the avoidance
of doubt, if the Company or the acquiring or succeeding corporation successfully remedies the conditions that gave rise to the existence
of Good Reason during the Cure Period, Good Reason shall be deemed not to have existed. In the event the Employee terminates employment
under this Agreement for Good Reason, the Employee shall be eligible to receive the severance benefits set forth in Section 3.2 (e).

 

    	3

     

    

 

Section
3.5 Termination by the Employee without Good Reason. The Employee may terminate the
Employee’s employment with the Company without Good Reason at any time subject to the Employee’s provision of thirty (30)
days’ advance written notice to the Company (the “Applicable Notice Period”), provided, however, that the Company may,
in its sole discretion, in lieu of all or part of the Applicable Notice Period, pay the Employee an amount equal to the Salary that would
otherwise have been payable to the Employee had the Employee remained employed for the duration of the Applicable Notice Period. In such
instance, the Employee’s termination will become effective on the date set forth in a written notice of termination to be provided
by the Company (the “Early Termination Date”), and the Employee will be paid an amount equal to the base Salary the Employee
would have received had the Employee remained employed by the Company between the Early Termination Date and the end of the Applicable
Notice Period (the “Early Termination Payment”), with the Early Termination Payment to be made no later than the 30th
day following the end of the Applicable Notice Period.

 

Section
3.6 Compensation upon Termination.

 

(a) In
the event that the Company terminates the Employee’s employment hereunder due to a Termination for Cause or the
Employee voluntarily terminates employment with the Company without Good Reason, the Employee shall be entitled to accrued
but unpaid Salary, Restricted Shares Compensation which have vested, reimbursable expenses and benefits owing to Employee through
the day on which Employee is terminated.

 

(b) In
the event that the Company terminates the Employee’s employment hereunder due to a Termination without Cause, Employee
shall be entitled to compensation, including base Salary, the aggregate Restricted Shares Compensation set forth in Section 2.1 (b),
for a period of six (6) months from the effective date of termination (the “Severance Period”). The Employee’s
reimbursable expenses shall be paid within 15 days of Termination. Except as otherwise contemplated by this Agreement, Employee will
not be entitled to any other compensation upon termination of this Agreement.

 

(c) The
salary and fringe benefits to be paid are referred to herein as the “Termination Compensation.” Employee shall not be
entitled to any Termination Compensation unless, Employee complies with all surviving provisions of any confidentiality agreement
that Employee may have signed.

 

(d) If
Employee terminates this Agreement by providing appropriate notice, the Company, at its election, Company may (i) require Employee
to continue to perform duties hereunder for the full notice period, or (ii) terminate Employee employment at any time during such
notice period, provided that any such termination shall not be deemed to be a termination without cause of Employee ‘s
employment by the Company. Unless otherwise provided by this Section, all compensation and benefits paid by Company to Employee
shall cease upon his last day of employment.

 

Section
3.7 Change in Control. In addition, notwithstanding the foregoing, in the event that Employee’s continuous status
as an employee of the Company is terminated by the Company without Cause or Employee terminates the employment with the Company for Good
Reason, in either case upon or within twelve (12) months after a Change in Control (“CoC”) as defined below then, subject
to Employee’s execution of a standard release of claims in favor of the Company or its successor, (i) Employee shall receive the
Salary for the duration of the Term, (ii) 100% of the total number of Restricted Shares Compensation shall immediately become vested
and issuable, and (iii) Employee shall be entitled to the Bonus for the duration of the Term, if applicable.

 

As
used in this Agreement, “Change in Control” shall be deemed to have occurred if any “person” (as such
term is used in Sections 13(d) and 14(d)(2) of the Exchange Act) is or becomes the beneficial owner, directly or indirectly, of securities
of the Company representing 50% or more of the combined voting power of the Company’s then outstanding securities; (ii) a sale
of substantially all of the assets of the Company; or (iii) a liquidation of the Company.

 

    	4

     

    

 

ARTICLE
IV.

 

RESTRICTIVE
COVENANTS

 

Section
4.1 Confidentiality.

 

(a)
Employee recognizes and acknowledges that Employee has had and will continue to have access to various trade secrets and/or proprietary
information (collectively, the “Confidential
Information”) concerning the Company.
Employee acknowledges that the Confidential Information has been developed solely through the substantial efforts of the Company over
a long period of time, and that such Confidential Information is valuable and unique and constitutes a trade secret of the Company.

 

(b)
Employee agrees to keep all Confidential Information of the Company in strict confidence and agrees not to disclose any Confidential
Information to any other person, firm, association, company, corporation or other entity for any reason except as such disclosure may
be required in connection with his employment hereunder. Employee further agrees not to use any Confidential Information for any purpose
except on behalf of the Company.

 

(c)
For purposes of this Agreement, “Confidential
Information” shall mean any information, process or idea that is not generally known in the industry, that the Company considers
confidential and/or that gives the Company a competitive advantage, including, without limitation: (i) books and records relating to
operation, finance, accounting, sales,
personnel and management, (ii) policies
and matters relating particularly to operations such as customer service requirements, costs
of providing
service and equipment, operating costs, and price matters, and (iii)
various trade or business secrets, including
business opportunities, marketing or business diversification plans, business development and bidding techniques, methods of processes,
financial data and the like.
If Employee is unsure whether certain
information or material is Confidential Information, Employee shall treat that information or material as confidential unless Employee
is informed by the Company, in
writing, to
the contrary. “Confidential Information”
shall not include any information which: (i)
is or becomes publicly available through
no act or failure of Employee; (ii) was or is rightfully learned by Employee from a source other than the Company before being received
from the Company; (iii) becomes independently available to Employee as a matter of right from a third Party having lawful right to make
such communication; or (iv) is developed by Employee independently of any Confidential Information.

 

(d)
Employee further agrees that upon termination of his employment
with the Company, for whatever reason,
Employee will surrender to the Company all of the property, notes, manuals, reports, documents and other
things in Employee’s possession,
including copies or computerized records thereof, which relate directly or indirectly to Confidential Information.

 

    	5

     

    

 

Section
4.2. Remedies. If the provisions of this Article are violated,
or threatened to be violated,
in whole or in part, the Company shall
be entitled to a temporary restraining order or a preliminary injunction restraining or enjoining Employee from using or disclosing,
in whole or in part, such Confidential Information,
without prejudice to any other remedies
the Company may have at law or in equity. If Employee violates this Article, Employee agrees that the Company would be irreparably harmed.

 

ARTICLE
V.

CONDUCT

 

Section
5.1 No Derogatory Statements. Employee shall not engage in any pattern of conduct that involves the making or publishing of written
or oral statements or remarks (including, without limitation, the repetition or distribution of derogatory rumors, allegations, negative
reports or comments) which are disparaging, deleterious or damaging to the integrity, reputation or goodwill of the Company, its competitors
or its management.

 

ARTICLE
VI.

MISCELLANEOUS

 

Section
6.1 Assignment; Binding Effect; Amendment. This Agreement and the rights of the Parties under it may not be assigned (except by
operation of law and except that it may be assigned by the Company to an Affiliated Entity) and shall be binding upon and shall inure
to the benefit of the Parties and their successors and assigns.
This Agreement, upon execution and delivery,
constitutes a valid and binding agreement of the Parties enforceable in accordance with its terms and may be modified or amended only
by a written instrument executed by all Parties hereto.

 

Section
6.2 Entire Agreement. This Agreement is the final, complete and exclusive statement and expression of the agreement among the
Parties hereto with relation to the subject matter of this Agreement, it being understood that there are no oral representations, understandings
or agreements covering the same subject matter as this Agreement. This Agreement supersedes,
and cannot be varied,
contradicted or
supplemented by evidence of any prior or contemporaneous discussions, correspondence, or oral or written agreements of any kind.

 

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

 

    	6

     

    

 

Section
6.4 Notices. All notices or other communications required or permitted hereunder shall be in writing and may be given by depositing
the same in United States mail, addressed to the Party to be notified, postage prepaid and registered or certified with return receipt
requested, by nationally recognized overnight courier or by delivering the same in person to such Party.

 

(a)
If to Employee, addressed to:

 

Robert Goodmanson

7681
E. Grey
Road

Scottsdale,
AZ 85260

 

(b)
If to the Company, addressed to it at: Ammo, Inc.

 

Attn:
Fred Wagenhals

7681
E. Grey
Road

Scottsdale,
AZ 85260

 

Notice
shall be deemed given and effective the day personally delivered, the day after being sent by overnight courier, subject to signature
verification, and three business days after the deposit in the U.S. mail of a writing addressed as above and sent first class mail, certified,
return receipt requested, or when actually received ,
if earlier. Any Party may change the
address for notice by notifying the other Parties of such change in accordance with this Section.

 

Section
6.5 Governing Law. This
Agreement shall be governed by and construed in accordance with the internal laws of the State of Arizona,
without giving effect to any choice
or conflict of law provision or rule (whether of the State of Arizona or any other jurisdiction) that would cause the application of
the laws of any jurisdiction other than the State of Arizona.

 

Section
6.6 No Waiver. No delay of or omission in the exercise of any right, power or remedy accruing to any Party as a result
of any
breach or default by any other Party under this Agreement shall impair any such right,
power or remedy, nor shall it be construed
as a waiver of or acquiescence in
any such breach or default, or of or
in any similar breach or default occurring later;
nor shall any waiver
of any single breach or default be deemed
a waiver of any other breach or default occurring before or after that waiver. 

 

Section
6.7 Captions. The
headings of this Agreement are inserted for convenience only, and shall not constitute a part of this Agreement or be used to construe
or interpret any provision hereof.

 

Section
6.8 Severability. In case any prov1s1on of this Agreement shall be invalid, illegal or unenforceable, it shall, to the extent
possible, be modified in such manner as to be valid, legal and enforceable but so as most nearly to retain the intent of the Parties.
If such modification is not possible, such provision shall be severed from this Agreement. In either case the validity, legality and
enforceability of the remaining provisions of this Agreement shall not in any way be affected or impaired thereby.

 

    	7

     

    

 

Section
6.9 Construction. The Parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity
or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties, and no presumption
or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any of the provisions of this Agreement.
Any reference to any federal, state, local or foreign statute shall be deemed to refer to all rules and regulations promulgated thereunder,
unless the context requires otherwise. The word “including”
means including, without limitation.
The Parties intend that representations, warranties and covenants contained herein shall have independent significance.
If any Party has breached any representation,
warranty or covenant contained herein in any respect, the fact that there exists another representation, warranty or covenant relating
to the same subject matter (regardless of the relative levels of specificity) that the Party has not breached shall not detract from
or mitigate the fact the Party is in breach of the first representation, warranty or covenant.

 

Section
6.10 Indemnification by the Company. The Company shall indemnify, defend and hold Employee harmless from any liabilities, obligations,
claims, penalties,
fines or losses resulting from any unauthorized or unlawful acts of the Company which contravene any applicable statute, rule, regulation
or order of any jurisdiction, foreign or domestic.

 

Section
6.11 Headings. The headings used herein are for convenience only and do not limit the contents of this Agreement.

 

IN
WITNESS WHEREOF, the Parties have caused
this Agreement to
be executed effective as of the day
and year first above written.

 

	 	AMMO,
    INC.
	 	 	 
	 		 
	 	By:	Fred
    Wagenhals
	 	Its:	Chief
    Executive Officer
	 	 	 
	 	EMPLOYEE:
	 	 	 
	 	 	
	 	By:	 
	 	Name:	Robert
    Goodmanson

 

    	8

     

    

 

Supplemental
Information For

EMPLOYMENT
AGREEMENT 

Dated
March 26, 2021

 

The
following is a list of Exhibits to the above referenced Agreement, not attached herewith. Any omitted information will be furnished to
the Securities and Exchange Commission upon request.

 

1. Exhibit
“A” Roles And Responsibilities Chief Executive Officer For AMMO, INC. (the “Company”)

2. Exhibit
“B” The Restricted Shares Compensation

3. Exhibit
“C” Share Restrictions

 

    	9Exhibit 10.1

 

PARENT SUPPORT AGREEMENT

 

This PARENT SUPPORT AGREEMENT, dated as of
June 29, 2021 (this “Agreement”), is entered into by and among FS Development Corp. II, a Delaware corporation (“Parent”),
Pardes Biosciences, Inc., a Delaware corporation (the “Company”), FS Development Holdings II, LLC, a Delaware limited
liability company (“Sponsor”), and each of the other stockholders of Parent whose names are set forth on Exhibit A
hereto (each, a “Founder” and, collectively, the “Founders”). Capitalized terms used herein and
not otherwise defined will have the meaning given such terms in the Merger Agreement (as defined below).

 

WHEREAS, concurrently herewith,
Parent, Orchard Merger Sub. Inc., a Delaware corporation (“Merger Sub”), Shareholder Representative Services LLC, a
Colorado limited liability company, as the Stockholders’ Representative, and the Company, are entering into that certain Agreement
and Plan of Merger (as amended, supplemented or otherwise modified from time to time in accordance with its terms, the “Merger
Agreement”) pursuant to which, among other things, Merger Sub will merge with and into the Company, with the Company as the
surviving company in the merger and, after giving effect to such merger, becoming a wholly-owned Subsidiary of PubCo;

 

WHEREAS, as of the date hereof,
each Founder owns of record the number of Parent Class A Shares and Parent Class B Shares as set forth opposite such Founder’s name
on Exhibit A hereto (all such Parent Class A Shares and Parent Class B Shares and the Parent Class A Shares and Parent Class B
Shares of which ownership of record or the power to vote is hereafter acquired by the Founders prior to the termination of this Agreement
being referred to herein as the “Shares”); and

 

WHEREAS, in order to induce
Parent and the Company to enter into the Merger Agreement, the Founders are executing and delivering this Agreement to Parent and the
Company.

 

NOW, THEREFORE, in consideration
of the foregoing and of the mutual covenants and agreements contained herein, and intending to be legally bound hereby, each of the Founders
(severally and not jointly), the Company and Parent hereby agrees as follows:

 

1. Agreement to
Vote. Each Founder, by this Agreement, with respect to its Shares, hereby agrees to vote, at any meeting of the stockholders of Parent,
and in any action by written consent of the stockholders of Parent, all of such Founder’s Shares (a) in favor of the approval and
adoption of the Merger and each of the other Parent Proposals and (b) in favor of any other matter reasonably necessary to the consummation
of the Transactions and the approval of the Parent Proposals and which is considered and voted upon by the stockholders of Parent in connection
therewith. Each Founder acknowledges receipt and review of a copy of the Merger Agreement.

 

    

    

    

 

2. Transfer of
Shares. Each of the Founders agrees that it shall not, directly or indirectly, (a) sell, assign, transfer (including by operation
of law), lien, pledge, dispose of or otherwise encumber any of the Shares or otherwise agree to do any of the foregoing (unless the transferee
agrees to be bound by this Agreement), (b) deposit any Shares into a voting trust or enter into a voting agreement or arrangement
or grant any proxy or power of attorney with respect thereto that is inconsistent with this Agreement, (c) enter into any contract,
option or other arrangement or undertaking with respect to the direct or indirect acquisition or sale, assignment, transfer (including
by operation of law) or other disposition of any Shares (unless the transferee agrees to be bound by this Agreement) or (d) take any action
that would have the effect of preventing or disabling such Founder from performing its obligations hereunder.

 

3. Waiver of Anti-Dilution
Provision. Each Founder hereby (but subject to the consummation of the Merger) waives (for itself, for its successors, heirs and assigns),
to the fullest extent permitted by law and the Parent Certificate of Incorporation, the provisions of Section 4.3(b)(i) of the Parent
Certificate of Incorporation to have the Parent Class B Shares convert to Parent Class A Shares at a ratio of greater than one-for-one.
The waiver specified in this Section 3 shall be applicable only in connection with the transactions contemplated by the Merger
Agreement and this Agreement (and any shares of PubCo Common Stock or equity-linked securities issued in connection with the transactions
contemplated by the Merger Agreement and this Agreement) and shall be void and of no force and effect if the Merger Agreement shall be
terminated for any reason.

 

4. Other Covenants and Agreements.

 

(a)    From
the date hereof through the Closing Date, Sponsor shall not, and shall cause each of its Representatives not to, directly or indirectly,
(i) encourage, solicit, initiate, engage or participate in negotiations with any Person concerning any Alternative Transaction, (ii) take
any other action intended or designed to facilitate the efforts of any Person relating to a possible Alternative Transaction or (iii)
in furtherance and without limitation of Sponsor’s obligations pursuant to Section 1, approve, recommend or enter into any
Alternative Transaction or any Contract related to any Alternative Transaction. Immediately following the execution of this Agreement,
Sponsor shall, and shall cause each of its Representatives to, terminate any existing discussions or negotiations with any Persons other
than Parent, on the one hand, or the Company, on the other hand, concerning any Alternative Transaction. Sponsor shall be responsible
for any acts or omissions of any of its Representatives that, if they were the acts or omissions of Sponsor, would be deemed a breach
of such Sponsor’s obligations hereunder.

 

(b)    If
an Alternative Proposal is communicated in writing to Sponsor or any of its Representatives, Sponsor shall as promptly as practicable
(and in any event within one (1) Business Day after receipt thereof) advise Parent, orally and in writing, of such Alternative Proposal
and the material terms and conditions thereof (including any changes thereto). Parent shall as promptly as practicable (and in any event
one (1) Business Day after receipt thereof) advise Company, orally and in writing, of such Alternative Proposal and the material terms
and conditions thereof (including any changes thereto) and the identity of the Person making such Alternative Proposal. Sponsor shall
keep Parent informed, and Parent shall keep Company informed, on a reasonably current basis of material developments with respect to any
such Alternative Proposal.

 

    2

    

    

 

5. Sponsor Backstop.

 

(a) In the event that
both (i) the Aggregate Parent Closing Cash is less than $100,000,000 and (ii) the Net Trust Fund Balance is less than $25,000,000,
Sponsor hereby agrees to purchase (or to cause its Affiliates to purchase) from Parent, and Parent hereby agrees to sell to Sponsor
or such Affiliates, a number of Parent Class A Shares equal to: (x) $25,000,000 minus the Net Trust Fund Balance; divided
by (y) $10.00.

(b)    The
term “Net Trust Fund Balance” means the aggregate cash proceeds available for release to Parent from the Trust Fund
in connection with the Transactions (net of the Parent Redemption Amount).

 

(c) Sponsor shall
subscribe for and purchase the Parent Class A Shares pursuant to this Section 5 by executing and delivering to Parent a
subscription agreement, substantially in the form of the Subscription Agreement attached as Exhibit B to the Merger Agreement, prior
to the Closing.

 

6. Representations
and Warranties. Each Founder, severally and not jointly, represents and warrants to the Company as follows:

 

(a)    The
execution, delivery and performance by such Founder of this Agreement and the consummation by such Founder of the transactions contemplated
hereby do not and will not (i) conflict with or violate any Law or Order applicable to such Founder, (ii) require any consent, approval
or authorization of, declaration, filing or registration with, or notice to, any person or entity, (iii) result in the creation of any
Lien on any Shares (other than pursuant to this Agreement or transfer restrictions under applicable securities laws or certificate of
incorporation or operating agreement, if any (the “Organizational Documents”) of such Founder) or (iv) conflict with
or result in a breach of or constitute a default under any provision of such Founder’s Organizational Documents.

 

(b)    Such
Founder owns of record and has good, valid and marketable title to the Shares set forth opposite such Founder’s name on Exhibit
A free and clear of any Lien (other than pursuant to this Agreement or transfer restrictions under applicable securities laws or the
Organizational Documents of such Founder) and has the sole power (as currently in effect) to vote and full right, power and authority
to sell, transfer and deliver such Shares, and such Founder does not own, directly or indirectly, any other Shares.

 

(c)    Such
Founder has the power, authority and capacity to execute, deliver and perform this Agreement and that this Agreement has been duly authorized,
executed and delivered by such Founder.

 

7. Termination.
This Agreement and the obligations of Sponsor and each of the Founders under this Agreement shall automatically terminate upon the earliest
of: (a) the Effective Time; (b) the termination of the Merger Agreement in accordance with its terms; and (c) the mutual agreement
of the Company and Sponsor. Upon termination or expiration of this Agreement, no party shall have any further obligations or liabilities
under this Agreement; provided, however, such termination or expiration shall not relieve any party from liability for any
willful breach of this Agreement occurring prior to its termination.

 

    3

    

    

 

8. Miscellaneous.

 

(a)    Except
as otherwise provided herein or in the Merger Agreement, all costs and expenses incurred in connection with this Agreement and the transactions
contemplated hereby shall be paid by the party incurring such costs and expenses, whether or not the transactions contemplated hereby
are consummated.

 

(b)    All
notices, requests, claims, demands and other communications hereunder shall be in writing and shall be given (and shall be deemed to have
been duly given upon receipt) by delivery in person, by telecopy or e-mail or by registered or certified mail (postage prepaid, return
receipt requested) to the respective parties at the following addresses (or at such other address for a party as shall be specified in
a notice given in accordance with this Section 8(b)):

 

	 	if to the Company, to:
	 	 	 
	 	 	Pardes Biosciences, Inc.
	 	 	2173 Salk Ave., Suite 250, PMB #052
	 	 	Carlsbad, CA 92008
	 	 	Attn: Uri A. Lopatin, M.D., Chief Executive Officer
	 	 	Elizabeth H. Lacy, General Counsel & Corporate Secretary
	 	 	 
	 	 	Email: 	uri@pardesbio.com
	 	 	 	elacy@pardesbio.com
	 	 	 
	 	with a copy (which shall not constitute notice) to:
	 	 	 
	 	 	Goodwin Procter LLP
	 	 	601 Marshall Street
	 	 	Redwood City, CA 94063
	 	 	Attn.: Deepa Rich
	 	 	Email: DRich@goodwinlaw.com
	 	 	 
	 	if to Parent or Sponsor, to:
	 	 	 
	 	 	c/o FS Development Corp. II
	 	 	900 Larkspur Landing Circle, Suite 150
	 	 	Larkspur, California 94939
	 	 	Attn: Jim Tananbaum
	 	 	Email: jim@foresitecapital.com
	 	 	 
	 	with a copy (which shall not constitute notice) to:
	 	 	 
	 	 	White & Case LLP
	 	 	1221 Avenue of the Americas
	 	 	New York, New York 10020
	 	 	Attn: Joel L. Rubinstein
	 	 	 	Bryan Luchs
	 	 	Email: 	joel.rubinstein@whitecase.com
	 	 	 	bryan.luchs@whitecase.com

 

    4

    

    

 

if to a Founder, to the address
or facsimile number set forth for Founder on the signature page hereof.

 

(c)    If
any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of law, or public policy,
all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal
substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party. Upon such determination
that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith
to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in
order that the transactions contemplated hereby be consummated as originally contemplated to the fullest extent possible.

 

(d)    This
Agreement, the Merger Agreement and the Additional Agreements constitute the entire agreement among the parties with respect to the subject
matter hereof and supersede all prior agreements and undertakings, both written and oral, among the parties, or any of them, with respect
to the subject matter hereof. This Agreement shall not be assigned (whether pursuant to a merger, by operation of law or otherwise).

 

(e)    This
Agreement shall be binding upon and inure solely to the benefit of each party hereto, and nothing in this Agreement, express or implied,
is intended to or shall confer upon any other person any right, benefit or remedy of any nature whatsoever under or by reason of this
Agreement. No Founder shall be liable for the breach by any other Founder of this Agreement.

 

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

 

(g)    This
Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware applicable to contracts executed in
and to be performed in that State. All Actions arising out of or relating to this Agreement shall be heard and determined exclusively
in any Delaware Chancery Court. The parties hereto hereby (i) submit to the exclusive jurisdiction of the Delaware Chancery Court for
the purpose of any Action arising out of or relating to this Agreement brought by any party hereto, and (ii) irrevocably waive, and
agree not to assert by way of motion, defense, or otherwise, in any such Action, any claim that it is not subject personally to the jurisdiction
of the above-named courts, that its property is exempt or immune from attachment or execution, that the Action is brought in an inconvenient
forum, that the venue of the Action is improper, or that this Agreement or the transactions contemplated hereunder may not be enforced
in or by any of the above-named courts.

 

(h)    This
Agreement may be executed and delivered (including by facsimile or portable document format (pdf) transmission) in one or more counterparts,
and by the different parties hereto in separate counterparts, each of which when executed shall be deemed to be an original but all of
which taken together shall constitute one and the same agreement.

 

    5

    

    

 

(i)    Without
further consideration, each party shall use commercially reasonable efforts to execute and deliver or cause to be executed and delivered
such additional documents and instruments and take all such further action as may be reasonably necessary or desirable to consummate the
transactions contemplated by this Agreement.

 

(j)    This
Agreement shall not be effective or binding upon the Company, Sponsor or any other Founder until such time as the Merger Agreement is
executed.

 

(k)    Each
of the parties hereto hereby waives to the fullest extent permitted by applicable law any right it may have to a trial by jury with respect
to any litigation directly or indirectly arising out of, under or in connection with this Agreement. Each of the parties hereto (i) certifies
that no representative, agent or attorney of any other party has represented, expressly or otherwise, that such other party would not,
in the event of litigation, seek to enforce that foregoing waiver and (ii) acknowledges that it and the other parties hereto have been
induced to enter into this Agreement and the transactions contemplated hereby, as applicable, by, among other things, the mutual waivers
and certifications in this Paragraph (k).

 

[Signature pages follow]

 

    6

    

    

 

IN WITNESS WHEREOF, the parties have executed this
Agreement as of the date first written above.

 

	 	FS DEVELOPMENT CORP. II
	 	 	 
	 	By:  	/s/ James B. Tananbaum
	 	 	Name:	James B. Tananbaum
	 	 	Title:	Chief Executive Officer  
	 	 	 
	 	PARDES BIOSCIENCES, INC.
	 	 	 
	 	By:  	/s/ Uri A. Lopatin, M.D.
	 	 	Name:	Uri A. Lopatin, M.D.
	 	 	Title:	Chief Executive Officer 

 

[Signature
Page to Parent Support Agreement]

 

    7

    

    

 

IN WITNESS WHEREOF, the parties have executed this
Agreement as of the date first written above.

 

	 	FOUNDERS:
	 	 	 
	 	FS DEVELOPMENT HOLDINGS, LLC
	 	 	 
	 	By:  	/s/ James B. Tananbaum
	 	Name:	James B. Tananbaum
	 	Title:	Chief Executive Officer  
	 	Address:  	900 Larkspur Landing Circle, Suite 150
	 	 	San Francisco, California 94111
	 	 	 
	 	Daniel Dubin 
	 	 	 
	 	By:  	/s/ Daniel Dubin
	 	 	 
	 	Address:  
	 	 	 
	 	Owen Hughes
	 	 	 
	 	By:  	/s/ Owen Hughes
	 	 
	 	Address:  	 
	 	 	 
	 	Deepa Pakianathan 
	 	 	 
	 	By:  	/s/ Deepa Pakianathan
	 	 	 
	 	Address:  

 

[Signature
Page to Parent Support Agreement]

 

    8

    

    

 

EXHIBIT A

 

THE FOUNDERS

 

	
Founder 
 
	 	Shares of Parent Class A Common Stock	 	 	Shares of Parent Class B Common Stock	 
	FS Development Holdings II, LLC	 	 	602,500	 	 	 	4,941,250	 
	Daniel Dubin	 	 	 	 	 	 	30,000	 
	Owen Hughes	 	 	 	 	 	 	30,000	 
	Deepa Pakianathan	 	 	 	 	 	 	30,000

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