Document:

Exhibit 10.4

 

BACKSTOP PURCHASE AGREEMENT

 

This BACKSTOP PURCHASE AGREEMENT (this “Agreement”),
dated as of October 3, 2022, is made by and among Molekule, Inc., a Delaware corporation (the “Company”),
Foundry Group Next, L.P. (“Foundry” or the “Backstop Purchaser”), and AeroClean Technologies, Inc.,
a Delaware corporation (the “Parent”).

 

WHEREAS,
on October 3, 2022, the Parent, Air King Merger Sub Inc., a Delaware corporation (“Merger Sub”), and the Company
entered into an agreement and plan of merger (the “Merger Agreement”), pursuant to which the Parent and the Company
intend to effect a merger of Merger Sub with and into the Company, with the Company surviving as a wholly-owned subsidiary of the Parent,
in accordance with the Delaware General Corporation Law (the “Merger”);

 

WHEREAS,
in order to induce the Parent to enter into the Merger Agreement and consummate the Merger, as a condition to closing under the Merger
Agreement, the Company has agreed, promptly following the execution of the Merger Agreement, to conduct a rights offering (the “Rights
Offering”) in which the Company will use its commercially reasonable best efforts to raise up to $7 million from its existing
stockholders in the form of Series 1 Preferred Stock;

 

WHEREAS,
in order to facilitate the Rights Offering, the Backstop Purchaser, the Company and the Parent wish to enter into this Agreement, pursuant
to which and upon the terms and subject to the conditions set forth herein, to the extent that shareholders of the Company do not purchase
and fund at least $7 million in the Rights Offering, the Backstop Purchaser shall irrevocably agree to purchase securities offered by
the Company in the Rights Offering, on the terms and conditions set forth in this Agreement, in an amount equal to the difference between
$7 million and the amount purchased in the Rights Offering by other shareholders of the Company, but in no event shall the Backstop Purchaser
be required to purchase more than $5 million of securities of the Company in the Rights Offering.

 

NOW,
THEREFORE, in consideration of the mutual promises, agreements, representations, warranties and covenants contained herein,
each of the parties hereto hereby agrees as follows:

 

1.            Rights
Offering. On the terms and subject to the conditions set forth herein, promptly following the execution of the Merger Agreement, the
Company shall conduct the Rights Offering in which the Company will use its commercially reasonable best efforts to raise up to $7 million
from its existing stockholders in the form of Series 1 Preferred Stock offered at the Original Issue Price of the Series 1 Preferred
Stock that is stated in the Company’s Restated Certificate of Incorporation dated May 19, 2022. The Company shall conduct the
Rights Offering in accordance with all applicable laws, rules and regulations and shall obtain as promptly as possible following
the execution of the Merger Agreement any third party consents necessary in order to consummate the Rights Offering. The Company shall
not distribute any documentation to its shareholders in connection with the Rights Offering unless the Parent has been given a reasonable
opportunity to review and comment on the documentation.

 

    

     

    

 

		2.	Requirement to Purchase Shares; Fees and Expenses.

 

(a)            Upon
the terms and subject to the conditions set forth in this Agreement, the Backstop Purchaser hereby irrevocably agrees that, to the extent
that stockholders of the Company do not purchase and fund at least $7 million in the Rights Offering, the Backstop Purchaser shall purchase
the securities offered by the Company in the Rights Offering, on the terms and conditions set forth in this Agreement, in an amount equal
to the difference between $7 million and the amount purchased in the Rights Offering by other stockholders of the Company, provided, however,
that in no event shall the Backstop Purchaser be required to purchase more than $5 million of securities of the Company in the Rights
Offering.

 

(b)            The
consummation of the Rights Offering, and the purchase of securities in the Rights Offering by the Backstop Purchaser, shall occur as promptly
as possible following the execution of the Merger Agreement, but in no event shall the Rights Offering and the purchase by the Backstop
Purchaser close on a date later than the date the SEC declares the registration statement on Form S-4 related to the Merger to be
effective.

 

(c)            The
Company hereby agrees and undertakes to notify the Backstop Purchaser as promptly as practicable and, in any event, by 10:00 a.m., Eastern
Time, on the first Business Day after the date that Company stockholders are required to return their executed documentation to participate
in the Rights Offering, by electronic or facsimile transmission, of the dollar amount of securities subscribed for by the Company’s
stockholders in the Rights Offering.

 

(d)            The
Backstop Purchaser shall have the right to arrange for one or more of its Affiliates (each, an “Affiliated Purchaser”)
to purchase all or any portion of the securities required to be purchased by the Backstop Purchaser hereunder, on the terms and subject
to the conditions in this Agreement, by written notice to the Company at least one (1) Business Day prior to scheduled closing date
of the Rights Offering, which notice shall be signed by the applicable Backstop Purchaser and each Affiliated Purchaser and shall contain
a confirmation by the Affiliated Purchaser of the accuracy with respect to it of the representations set forth in Section 3.
In no event will any such arrangement relieve the Backstop Purchaser of its obligations under this Agreement. The term “Affiliate”
has the meaning ascribed to such term in Rule 12b-2 under the Exchange Act.

 

(e)            In
connection with the closing, the Company shall deliver to the Backstop Purchaser and any Affiliated Purchaser all relevant agreements,
documents, and other closing deliverables similar to those the Backstop Purchaser received at closing for its participation in the Company’s
Series 1 Preferred Stock financing that occurred on or about May 19, 2022.

 

(f)            The
closing of the purchase of the securities to be purchased in the Rights Offering and, if necessary, the purchase of the securities to
be purchased by the Backstop Purchaser or its Affiliated Purchasers hereunder will occur no later than the date on which the SEC declares
the registration statement on Form S-4 related to the Merger to be effective (such closing date, the “Closing Date”).
Delivery of the securities will be made by the Company on the Closing Date to the account of the Backstop Purchaser (or to such other
accounts, including the account of an Affiliated Purchaser, as the Backstop Purchaser may designate in accordance with this Agreement)
against payment by the Backstop Purchaser of the purchase price therefor by wire transfer of immediately available funds to the account
designated in writing by the Company.

 

(g)            All
securities purchased by the Backstop Purchaser will be delivered with any and all issue, stamp, transfer, sales and use, or similar taxes
or duties payable in connection with such delivery duly paid by the Company.

 

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(h)            The
Company shall pay all of its own fees and expenses associated with the Rights Offering, including, without limitation, fees and expenses
of counsel to the Backstop Purchaser in an amount not to exceed $35,000, and the fees and expenses of counsel to the Company and the costs
associated with clearing the securities offered in the Rights Offering for sale under applicable state securities laws.

 

(i)            The
Parent shall not be required to distribute an information statement to its stockholders under the terms of the Merger Agreement until
the Rights Offering has been consummated and the Company has received at least $5 million in cash pursuant to the Rights Offering (whether
from the Backstop Purchaser pursuant to this Agreement or otherwise).

 

3.            Representations
and Warranties of the Backstop Purchaser. The Backstop Purchaser individually represents and warrants and agrees with the Company
and the Parent as set forth below. Each such representation, warranty and agreement is made as of the date hereof and as of the Closing
Date.

 

(a)            Organization.
The Backstop Purchaser has been duly organized and is validly existing as a limited partnership in good standing under the laws of the
jurisdiction of its incorporation.

 

(b)            Power
and Authority. The Backstop Purchaser has the requisite power and authority to enter into, execute and deliver this Agreement and
to perform its obligations hereunder and has taken all necessary action required for the due authorization of this Agreement.

 

(c)            Execution
and Delivery; Enforceability. This Agreement has been duly and validly executed and delivered by the Backstop Purchaser and constitutes
a valid and binding obligation of the Backstop Purchaser, enforceable against the Backstop Purchaser in accordance with its terms, except
as may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting the rights and
remedies of creditors or by general equitable principles.

 

(d)            No
Registration. The Backstop Purchaser understands that the securities which may be issued to the Backstop Purchaser have not been registered
under the Securities Act by reason of a specific exemption from the registration provisions of the Securities Act, the availability of
which depends upon, among other things, the bona fide nature of the investment intent and the accuracy of the Backstop Purchaser’s
representations as expressed herein or otherwise made pursuant hereto.

 

(e)            Investment
Intent. Except as provided in Section 2(d), the Backstop Purchaser is acquiring securities hereunder for investment for
its own account, not as a nominee or agent, and not with the view to, or for resale in connection with, any distribution thereof not in
compliance with applicable securities laws, and the Backstop Purchaser will not sell, grant any participation in or otherwise distribute
the same, except in compliance with applicable securities laws.

 

(f)            Securities
Laws Compliance. The securities to be acquired by the Backstop Purchaser will not be offered for sale, sold or otherwise transferred
by the Backstop Purchaser except pursuant to a registration statement or in a transaction exempt from, or not subject to, registration
under the Securities Act and any applicable state securities laws.

 

(g)            Sophistication.
The Backstop Purchaser has such knowledge and experience in financial and business matters that it is capable of evaluating the merits
and risks of its investment in the Company’s securities. The Backstop Purchaser understands and is able to bear any economic risks
associated with such investment (including, without limitation, the necessity of holding the securities for an indefinite period of time).
Without derogating from or limiting the representations and warranties of the Company, the Backstop Purchaser acknowledges that it has
been afforded the opportunity to ask questions and receive answers concerning the Company and to obtain additional information that it
has requested to verify the information contained herein.

 

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(h)            Legended
Securities. The Backstop Purchaser understands and acknowledges that, upon the original issuance thereof and until such time as the
same is no longer required under any applicable requirements of the Securities Act or applicable state securities laws, the Company and
its transfer agent shall make such notation in the stock book and transfer records of the Company as may be necessary to record that the
securities have not been registered under the Securities Act and that the securities may not be resold without registration under the
Securities Act or pursuant to an exemption from the registration requirements thereof.

 

(i)            No
Conflict. The purchase of the Company’s securities by the Backstop Purchaser, the execution and delivery by the Backstop Purchaser
of each of this Agreement and the performance of and compliance with all of the provisions hereof by the Backstop Purchaser, and the consummation
of the transactions contemplated herein (i) will not conflict with or constitute a breach of, or result in the creation or imposition
of any lien, charge or encumbrance upon any property or assets of the Backstop Purchaser or any of its subsidiaries pursuant to, or require
the consent of any other party to, any indenture, mortgage, loan or credit agreement, note, contract, franchise, lease or other instrument
to which such Backstop Purchaser or any of its subsidiaries is a party or by which it or any of them may be bound, or to which any of
the property or assets of such Backstop Purchaser or any of its subsidiaries is subject, except for such conflicts, breaches, liens, charges
or encumbrances as would not, individually or in the aggregate, prohibit, materially delay or materially and adversely effect the Backstop
Purchaser’s performance of its obligations under this Agreement, (ii) will not result in any violation of the provisions of
the organizational documents of the Backstop Purchaser and (iii) will not result in any violation of any law, administrative regulation
or administrative or court decree of any Governmental Entity, except as would not, individually or in the aggregate, prohibit, materially
delay or materially and adversely affect such Backstop Purchaser’s performance of its obligations under this Agreement.

 

(j)            Consents
and Approvals. No consent, approval, authorization or order of, or registration or filing with, any Governmental Entity is required
to be obtained or made by the Backstop Purchaser for the execution and delivery by the Backstop Purchaser of this Agreement and the performance
of and compliance by the Backstop Purchaser with all of the provisions hereof and the consummation of the transactions contemplated herein,
except for any consent, approval, authorization, order, registration or filing which, if not made or obtained, would not reasonably be
expected, individually or in the aggregate, to prohibit, materially delay or materially and adversely affect the Backstop Purchaser’s
performance of its obligations under this Agreement.

 

(k)            Arm’s
Length. The Backstop Purchaser acknowledges and agrees that the Company is acting solely in the capacity of an arm’s length
contractual counterparty to such Backstop Purchaser with respect to the transactions contemplated hereby. Additionally, without derogating
from or limiting the representations and warranties of the Company, the Backstop Purchaser is not relying on the Company for any legal,
tax, investment, accounting or regulatory advice, except as specifically set forth in this Agreement. Without derogating from or limiting
the representations and warranties of the Company, the Backstop Purchaser has consulted with its own advisors concerning such matters
and shall be responsible for making its own independent investigation and appraisal of the transactions contemplated hereby.

 

(l)            Financial
Suitability. The Backstop Purchaser has the financial ability and sufficient funds to make and complete the payment for all of the
securities that it has committed to acquire hereunder and the availability of such funds will not be subject to the consent, approval
or authorization of any Person(s).

 

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4.            Additional
Covenants of the Company. Without derogating from the obligations of the Company set forth elsewhere in this Agreement, the Company
agrees with the Backstop Purchaser and the Parent as set forth below.

 

(a)            Reasonable
Best Efforts. The Company shall use its reasonable best efforts to take or cause to be taken all actions, and do or cause to be done
all things, reasonably necessary, proper or advisable on its or their part under this Agreement and applicable laws to cooperate with
the Backstop Purchaser and to consummate and make effective the transactions contemplated by this Agreement, including:

 

(i)            preparing
and filing as promptly as practicable all documentation to effect all necessary notices, reports and other filings and to obtain as promptly
as practicable all consents, registrations, approvals, permits and authorizations necessary or advisable to be obtained from any third
party or governmental entity;

 

(ii)            defending
any lawsuits or other actions or proceedings, whether judicial or administrative, challenging this Agreement or any other agreement contemplated
by this Agreement or the consummation of the transactions contemplated hereby, including seeking to have any stay or temporary restraining
order entered by any court or other governmental entity vacated or reversed; and

 

(iii)            executing,
delivering and filing, as applicable, any additional ancillary instruments, documents or agreements necessary to consummate the transactions
contemplated by this Agreement and to fully carry out the purposes of this Agreement and the transactions contemplated hereby.

 

(b)            Private
Placement. The Company shall comply with all applicable federal and state securities laws in connection with the commencement and
consummation of the Rights Offering. The Company shall not engage in general solicitation (within the meaning of Regulation D) in connection
with the Rights Offering. Without limiting the foregoing, the Company shall ensure that the Rights Offering shall not be integrated with
any other securities offering to be conducted by the Company or Parent in connection with the consummation of the Merger, including the
registration of the Merger consideration with the SEC.

 

5.            Additional
Covenants of the Backstop Purchaser. The Backstop Purchaser agrees with the Company and the Parent:

 

(a)            Reasonable
Best Efforts. The Backstop Purchaser shall use its reasonable best efforts to take all actions, and do all things, reasonably necessary,
proper or advisable on its part under this Agreement and applicable laws to cooperate with the Company and to consummate and make effective
the transactions contemplated by this Agreement, including executing, delivering and filing, as applicable, any additional ancillary instruments
or agreements necessary to consummate the transactions contemplated by this Agreement and to fully carry out the purposes of this Agreement
and the transactions contemplated hereby, including:

 

(i)            preparing
and filing as promptly as practicable all documentation to effect all necessary notices, reports and other filings and to obtain as promptly
as practicable all consents, registrations, approvals, permits and authorizations necessary or advisable to be obtained from any third
party or governmental entity;

 

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(ii)            defending
any lawsuits or other actions or proceedings to which the Backstop Purchaser has been named a party, whether judicial or administrative,
challenging this Agreement or any other agreement contemplated by this Agreement or the consummation of the transactions contemplated
hereby, including seeking to have any stay or temporary restraining order entered by any court or other governmental entity vacated or
reversed; and

 

(iii)            executing,
delivering and filing, as applicable, any additional ancillary instruments, documents or agreements necessary to consummate the transactions
contemplated by this Agreement and to fully carry out the purposes of this Agreement and the transactions contemplated hereby.

 

6.            Condition
to the Obligations of the Backstop Purchaser. The obligations of the Backstop Purchaser hereunder to consummate the transactions contemplated
hereby shall be subject to the satisfaction prior to the Closing Date of the following conditions (which may be waived in whole or in
part by the Backstop Purchaser in its sole discretion): no action shall have been taken, no statute, rule, regulation or order shall have
been enacted, adopted or issued by any federal, state or foreign governmental or regulatory authority and no judgment, injunction, decree
or order of any federal, state or foreign court shall have been issued that, in each case, prohibits the implementation of the Rights
Offering, the issuance and sale of securities in the Rights Offering to the Backstop Purchaser, or the consummation of the transactions
contemplated by this Agreement or materially impairs the benefit of implementation thereof, and no action or proceeding by or before any
federal, state or foreign governmental or regulatory authority shall be pending or threatened wherein an adverse judgment, decree or order
would be reasonably likely to result in the prohibition of or material impairment of the benefits of the implementation of the Rights
Offering, the issuance and sale of securities in the Rights Offering to the Backstop Purchaser or the consummation of the transactions
contemplated by this Agreement.

 

7.            Survival
of Representations and Warranties and Indemnity. The representations and warranties made in this Agreement will survive the execution
and delivery of this Agreement. None of the covenants or other agreements contained in this Agreement shall survive the Closing Date other
than the covenants and agreements that by their terms apply or are to be performed in whole or in part after the Closing Date, which covenants
and agreements shall survive for the period provided in such covenants and agreements, if any, or until fully performed. This Section 7
shall in no way limit any party’s rights under U.S. Federal securities law.

 

8.            Termination.

 

(a)            This
Agreement may be terminated and the transactions contemplated hereby may be abandoned at any time prior to the Closing Date:

 

(i)            by
mutual written consent of the Company, the Parent and the Backstop Purchaser;

 

(ii)            by
the Company, the Parent or the Backstop Purchaser if the Closing Date shall not have occurred by the date eight months following the date
of this Agreement; provided, however, that the right to terminate this Agreement under this Section 8(a)(ii) shall
not be available to any party whose failure to comply with any provision of this Agreement has been the cause of, or resulted in, the
failure of the Closing Date to occur on or prior to such date;

 

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(b)            Upon
termination under this Section 8, all rights and obligations of the parties under this Agreement shall terminate without any
liability of any party to any other party except that (i) nothing contained herein shall release any party hereto from liability
for any willful breach of this Agreement and (ii) the covenants and agreements made by the parties herein in Sections 4 through 17
will survive in accordance with Section 7.

 

9.            Notices.
All notices and other communications in connection with this Agreement will be in writing and will be deemed given (and will be deemed
to have been duly given upon receipt) if delivered personally, sent via electronic transmission, facsimile transmission (with confirmation),
mailed by registered or certified mail (return receipt requested), or delivered by an express courier (with confirmation) to the parties
at the following addresses (or at such other address for a party as will be specified by like notice):

 

	(a)  If to the Company:
	 
	Molekule, Inc.
	1301 Folsom Street
	San Francisco, CA 94103
	Attention: Jonathan Harris
	Electronic mail: jonathan.harris@molekule.com
	 
	with copies to:
	 
	Fenwick & West LLP
	801 California Street
	Mountain View, CA 94041
	Attn:    Cynthia Hess, Ethan Skerry & Jeremy Delman
	E-mail: chess@fenwick.com. ekerry@fenwick.com. jdelman@fenwick.com
	 
	(b) If to the Backstop Purchaser:
	 
	Foundry Group Next, L.P.
	645 Walnut Street
	Boulder, Colorado 80302
	Attention: Jason M. Lynch
	Email: lynch@foundry.vc
	 
	with copies to:
	 
	Fenwick & West LLP
	801 California Street
	Mountain View, CA 94041
	Attn:   Cynthia Hess, Ethan Skerry & Jeremy Delman
	E-mail: chess@fenwick.com. ekerry@fenwick.com. jdelman@fenwick.com
	 
	(c)  If to the Parent:
	 
	AeroClean Technologies, Inc.
	10455 Riverside Dr.
	Palm Beach Gardens, Florida 33410
	Facsimile:
	Attention:
	 
	Freshfields Bruckhaus Deringer US LLP
	601 Lexington Avenue
	31st Floor
	New York, New York 10022
	Facsimile: (212) 277-4001
	Attention: Valerie Ford Jacob, Esq.
	Electronic mail: Valerie.Jacob@freshfields.com

 

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10.            Assignment;
Third Party Beneficiaries. Neither this Agreement nor any of the rights, interests or obligations under this Agreement will be assigned
by any of the parties (whether by operation of law or otherwise) without the prior written consent of the other parties, except to an
Affiliated Purchaser pursuant to Section 2(d). Notwithstanding the previous sentence, subject to the provisions of Section 2(d),
this Agreement, and the Backstop Purchaser’s obligations hereunder, may be assigned, delegated or transferred, in whole or in part,
by the Backstop Purchaser to any Affiliate of such Backstop Purchaser over which such Backstop Purchaser or any of its Affiliates exercises
investment authority, including, without limitation, with respect to voting and dispositive rights; provided that any such assignee assumes
the obligations of such Backstop Purchaser hereunder and agrees in writing to be bound by the terms of this Agreement in the same manner
as such Backstop Purchaser. Notwithstanding the foregoing or any other provisions herein, no such assignment will relieve the Backstop
Purchaser of its obligations hereunder if such assignee fails to perform such obligations. This Agreement (including the documents and
instruments referred to in this Agreement) is not intended to and does not confer upon any person other than the parties hereto any rights
or remedies under this Agreement. Any Indemnified Persons shall be entitled to enforce and rely on the provisions listed in the immediately
preceding sentence as if they were a party to this Agreement.

 

11.            Prior
Negotiations; Entire Agreement. This Agreement and the documents and instruments attached as exhibits to and referred to in this Agreement,
constitutes the entire agreement of the parties with respect to the Rights Offering and supersedes all prior agreements, arrangements
or understandings, whether written or oral, between the parties with respect to the transactions contemplated hereby.

 

12.            GOVERNING
LAW; VENUE. THIS AGREEMENT WILL BE GOVERNED AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO THE
PRINCIPLES OF CONFLICTS OF LAW THEREOF WHICH MIGHT RESULT IN THE APPLICATION OF THE LAWS OF ANY
OTHER JURISDICTION. Each of the parties hereto hereby irrevocably and unconditionally consents to submit to the jurisdiction of the courts
of the State of New York and the United States of America located in the County of New York solely in respect of the interpretation and
enforcement of the provisions of this Agreement, and in respect of the transactions contemplated hereby, and further agrees that service
of any process, summons, notice or document to its respective address set forth in Section 9 shall be effective service of
process for any action or proceeding brought against it in any such court. Each of the parties hereto hereby irrevocably and unconditionally
waives any objection to the laying of venue of any action or proceeding arising out of this Agreement or the transactions contemplated
hereby in the courts of the State of New York or the United States of America located in the County of New York, and hereby further irrevocably
and unconditionally waives and agrees not to plead or claim in any such court that any such action or proceeding brought in any such court
has been brought in an inconvenient forum.

 

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13.            Specific
Performance. The Company, the Backstop Purchaser and the Parent each acknowledges that the rights of each party to this Agreement
to consummate the transactions contemplated hereby are unique and recognize and affirm that in the event any of the provisions hereof
are not performed in accordance with their specific terms or otherwise are breached, money damages would be inadequate (and therefore
the non-breaching party would have no adequate remedy at law) and the non-breaching party would be irreparably damaged. Accordingly, each
party hereto agrees that each other party shall be entitled to specific performance, an injunction or other equitable relief (without
posting of bond or other security or needing to prove irreparable harm) to prevent breaches of the provisions hereof and to enforce specifically
this Agreement to the extent expressly contemplated herein or therein and the terms and provisions hereof in any legal proceeding, in
addition to any other remedy to which such person may be entitled. Each party hereto agrees that it will not oppose the granting of specific
performance and other equitable relief on the basis that the other parties hereto have an adequate remedy at law or that an award of specific
performance is not an appropriate remedy for any reason at law or equity. The parties hereto acknowledge and agree that any party seeking
an injunction to prevent breaches of this Agreement and to enforce specifically the terms and provisions hereof in accordance with this
Section 13 shall not be required to provide any bond or other security in connection with any such injunction.

 

14.            Counterparts.
This Agreement may be executed in any number of counterparts, all of which will be considered one and the same agreement and will become
effective when counterparts have been signed by each of the parties and delivered to the other party (including via facsimile or other
electronic transmission), it being understood that each party need not sign the same counterpart.

 

15.            Waivers
and Amendments. This Agreement may be amended, modified, superseded, cancelled, renewed or extended, and the terms and conditions
of this Agreement may be waived, only by a written instrument signed by all the parties hereto or, in the case of a waiver, by the party
waiving compliance. No delay on the part of any party in exercising any right, power or privilege pursuant to this Agreement will operate
as a waiver thereof, nor will any waiver on the part of any party of any right, power or privilege pursuant to this Agreement, nor will
any single or partial exercise of any right, power or privilege pursuant to this Agreement, preclude any other or further exercise thereof
or the exercise of any other right, power or privilege pursuant to this Agreement. The rights and remedies provided pursuant to this Agreement
are cumulative and are not exclusive of any rights or remedies which any party otherwise may have at law or in equity.

 

16.            Headings.
The headings in this Agreement are for reference purposes only and will not in any way affect the meaning or interpretation of this Agreement.

 

17.            Publicity.
The Company, the Parent and the Backstop Purchaser shall consult with each other prior to issuing any press releases (and provide each
other a reasonable opportunity to review and comment upon such releases) or otherwise making public announcements with respect to the
transactions contemplated by this Agreement and prior to making any filings with any third party or any governmental entity with respect
thereto, except as may be required by law or by the request of any governmental entity and except that Parent may describe and/or file
this Agreement in documents that it is required to file with the SEC.

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF, the parties hereto have caused
this Agreement to be signed by their respective officers thereunto duly authorized, all as of the date first written above.

 

	 	MOLEKULE, INC.
	 	 
	 	By: 	/s/ Jonathan Harris
	 	 	Name: Jonathan Harris
		 	Title: Chief Executive Officer
	 	 
	 	 
	 	FOUNDRY GROUP NEXT, L.P.
	 	 
	 	By:	FG Next GP, L.L.C., 

its general partner
	 	 
	 	By: 	/s/ Brad Feld
	 	 	Name: Brad Feld
	 	 	Title: Authorized Signatory
	 	 
	 	 
	 	AEROCLEAN TECHNOLOGIES, INC.
	 	 
	 	By: 	/s/ Ryan Tyler
	 	 	Name: Ryan Tyler
		 	Title: Chief Financial Officer

 

    10Exhibit 10.5

 

AMENDED AND RESTATED EXECUTIVE EMPLOYMENT AGREEMENT

 

This Amended and Restated
Executive Employment Agreement (the “Agreement”), is made effective as of the Effective Date (as defined below), between AeroClean
Technologies, Inc. (“Company”), and Jason DiBona (“Executive”).

 

WHEREAS, Company and Executive
are parties to an Employment Agreement, dated November 1, 2020, as amended on May 1, 2021, pursuant to which Executive is employed as
the Chief Executive Officer (“CEO”) of Company (the “Original Employment Agreement”);

 

WHEREAS, in connection with
the transactions contemplated by that certain Agreement and Plan of Merger, dated as of the date hereof, entered into by and among Company,
Molekule, Inc., and certain other parties named therein (the “Merger Agreement”), Company and Executive desire to amend and
restate the Original Employment Agreement on the terms contained in this Agreement;

 

NOW, THEREFORE, in consideration
of the mutual promises, terms, provisions, and conditions contained herein, the parties agree as follows:

 

1.              Title
and Duties. Subject to the terms and conditions of this Agreement, Executive’s position with Company shall continue to be CEO,
reporting to Company’s Board of Directors (the “Board”). Executive accepts such continued employment upon the terms
and conditions set forth herein, and agrees to perform to the best of Executive’s ability the duties normally associated with such
position and as reasonably determined by the Board in its sole discretion. While serving as CEO hereunder, Executive shall devote substantially
all of Executive’s business time and energies to the business and affairs of Company and shall be subject to, and shall comply
in all material respects with, the policies of Company applicable to Executive. Notwithstanding the foregoing, Executive may: (i) serve
as a member of the board of directors of no more than two (2) other companies with the Board’s prior consent; (ii) engage in charitable,
professional trade association, civic, educational and religious activities, and (iii) manage personal and family investments, in each
case, to the extent such activities, whether individually or in the aggregate, do not materially interfere or conflict with the performance
of Executive’s duties and responsibilities to the Company and provided further that Executive’s services are not performed
for any company that competes with the Company, directly or indirectly. The Company has pre-approved the “Outside Activities”
listed on Exhibit A, and Executive shall provide an updated list of any such activities in the preceding clauses (i) – (iii)
to the Company on an annual basis.

 

2.              Term;
Termination. 

 

(a)            Term.
The terms of this agreement shall be effective as of the Closing Date (as defined in the Merger Agreement) (the “Effective Date”)
and shall continue until terminated hereunder by either party (such term of employment shall be referred to herein as the “Term”).
Executive’s employment with Company will be on an “at-will” basis, which means that Executive’s employment is
terminable by either Company or Executive at any time for any reason or no reason, with or without Cause, subject to the provisions of
Section 2 hereof. 

 

(b)            Termination
by Company. Notwithstanding anything else contained in this Agreement, Company may terminate Executive’s employment hereunder
as follows:

 

(i)                 For
Cause. Company may terminate Executive’s employment for Cause (as defined below) by written notice by Company to Executive
that Executive’s employment is being terminated for Cause, which termination shall be effective on the date of such notice or
such later date as specified in writing by Company, provided that if Executive has cured the circumstances giving rise to
Cause (as such cure right may be applicable pursuant to the terms and conditions set forth below) then such termination shall not be
effective.

 

    

     

    

  

(ii)              
Without Cause. Company may terminate Executive’s employment without Cause, by written notice by Company to Executive
that Executive’s employment is being terminated without Cause, which termination shall be effective on the date of such notice
or such later date as specified in writing by Company. 

 

For the purposes of this Agreement,
 “Cause” shall mean: (i) Executive’s conviction of (A) a felony or (B) any misdemeanor involving moral turpitude, deceit,
dishonesty or fraud; (ii) Executive’s willful failure or refusal to comply with lawful directions of the Board, which failure or
refusal continues for more than five (5) business days after written notice is given to Executive; (iii) material breach by Executive
of a material written Company policy or under this Agreement, provided Executive does not cure such breach within five (5) business days
after receiving written notice of the alleged breach; or (iv) misconduct by Executive that materially damages Company or any of its affiliates.
Except in the case of (ii) above, it is not necessary that Company’s finding of Cause occur prior to Executive’s termination
of service.

 

(c)          
Termination by Executive. Notwithstanding anything else contained in this Agreement, Executive may terminate Executive’s
employment at any time for any reason or no reason by written notice by Executive to Company that Executive is terminating Executive’s
employment, which termination shall be effective ninety (90) days after the date of such notice.

 

(d)           Termination
Due to Death or Disability. Notwithstanding anything else contained in this Agreement, Company may terminate Executive’s employment
due to Executive’s death or Disability (as defined below) by written notice, which termination shall be effective on the date of
such notice or such later date as specified in writing by Company. For purposes of this Agreement, “Disability” means Executive’s
failure to perform Executive’s duties or Executive’s absence as a result of Executive’s physical or mental disability
for a period of ninety (90) consecutive days or an aggregate of one hundred twenty (120) days in any twelve (12) month period, as determined
by Company.

 

3.              Compensation.

 

(a)           
Base Salary. While Executive is employed hereunder, Executive shall earn a base salary at the annual rate of three hundred
fifty thousand dollars ($350,000) (the “Base Salary”). The Base Salary shall be payable in substantially equal periodic installments,
at least on a monthly basis, in accordance with Company’s payroll practices as in effect from time to time. The Base Salary shall
be subject to adjustments from time to time by the Compensation Committee of the Board (the “Compensation Committee”), however,
the Base Salary shall at no time be adjusted below the Base Salary for the preceding year.

 

(b)          
Annual Bonus. Executive shall be eligible to receive an annual performance bonus (the “Annual Bonus”) for all
years in which Executive is employed by Company hereunder. The target Annual Bonus shall be equal to sixty percent (60%) of Executive’s
Base Salary (i.e., two hundred ten thousand dollars ($210,000)). The amount of Annual Bonus, if any, shall be determined by the Board
in its sole discretion, and may be based on factors such as Executive’s work performance, Company’s financial performance,
Company’s business forecasts, Company’s determination of Executive’s achievement of milestones for the applicable year,
and economic conditions generally. The Annual Bonus shall be paid to Executive no later than March 15th of the calendar year immediately
following the calendar year to which it pertains. Executive must be employed by Company at the time that the Annual Bonus is paid in order
to be eligible for such Annual Bonus.

 

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(c)            Benefits; Vacation; Principal Place of Business. Executive shall be entitled to participate in all benefit/welfare plans
and any vacation policy provided to employees at the same level as Executive, as in effect from time to time. If a medical insurance plan
is adopted by Company, Company will pay fifty percent (50%) of the cost of Executive’s participation premiums under such plan. Company
will reimburse Executive for lease payments on a company car in an amount up to six hundred fifty dollars ($650) per month for so long
as Company deems such company car to be necessary to Executive to carry out his duties under this Agreement. Executive understands that,
except when prohibited by applicable law, Company’s benefit plans and fringe benefits may be amended by Company from time to time
in its sole discretion. The Executive’s principal place of business is in Palm Beach Gardens, Florida, and he will not be required
to move his principal place of business to a new location that is greater than thirty (30) miles from his current principal place of business.

 

(d)            Reimbursement
of Expenses. Executive shall be entitled to receive prompt reimbursement for all reasonable business expenses incurred by Executive
in performing services hereunder, in accordance with the policies and procedures then in effect and established by Company for its senior
executive officers.

 

4.             
Termination Payments; Severance Benefits. 

 

(a)            Payment
of Accrued Obligations. Regardless of the reason for any employment termination hereunder, Company shall pay to Executive: (i) any
earned but unpaid Base Salary; and (ii) any unpaid expense reimbursements (the “Accrued Obligations”) promptly following
the effective date of termination, and otherwise within any timeframe required by law. Executive’s entitlement to other compensation
or benefits under any Company plan or policy shall be governed by and determined in accordance with the terms of such plan or policy,
except as otherwise specified in this Agreement. In the event of Company’s termination of Executive’s employment for Cause
or as a result of Executive’s death or Disability, or in the event of Executive’s termination of Executive’s employment
for any reason, Executive shall be eligible for the Accrued Obligations and shall not be eligible for any severance or severance-type
payments.

 

(b)            Severance
in the Event of Termination Without Cause. Subject to the terms and conditions of Section 4(d), in the event that Executive’s
employment hereunder is terminated by Company without Cause then, in addition to the Accrued Obligations, Company shall pay Executive:
(i) an amount equal to continuation of Executive’s monthly Base Salary for a twelve (12) months period, with such payments to be
made in accordance with Company’s normal payroll practices and schedules; and (ii) upon Executive’s timely election to continue
existing health benefits under COBRA, and consistent with the terms of COBRA and Company’s health insurance plan, Company will
continue to pay Company’s then-current dollar level of contribution towards the premiums of the Executive’s medical and dental
coverage as in effect on the date of such termination (including coverage for Executive’s eligible dependents, if applicable) (“COBRA
Premium”) through the period starting on the date of such termination and ending on the earliest to occur of (1) twelve (12) months
after such termination; (2) the date Executive becomes eligible for group health insurance coverage through a new employer; and (3) the
date Executive ceases to be eligible for COBRA continuation coverage for any reason, including plan termination (such period from such
termination through the earliest of (1) through (3), the “COBRA Premium Period”) ((i) and (ii), collectively, the “Severance
Benefits”). Executive will be responsible for timely paying any remaining portion of the COBRA Premiums in order to maintain COBRA
coverage during the COBRA Premium Period. In the event Executive becomes covered under another employer’s group health plan or
otherwise ceases to be eligible for COBRA during the COBRA Premium Period, Executive must immediately notify Company of such event. The
Severance Benefits are expressly subject to the conditions described above and in Section 4(d) below.

 

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(c)            Accelerated Vesting in Event of Termination without Cause Following Change of Control. Subject to the terms and conditions
of Section 4(d), in the event that a Change of Control (as defined below) occurs and within a period of one (1) year following the Change
of Control Company terminates Executive’s employment without Cause, then Executive automatically shall become vested in one hundred
percent (100%) of outstanding time-based equity awards granted to Executive by Company.

 

For purposes of this Section,
a “Change of Control” shall mean the occurrence of any of the following events: (i) Ownership. Any “Person”
(as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) becomes the “Beneficial Owner”
(as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of Company representing fifty percent (50%) or more of
the total voting power represented by Company’s then outstanding voting securities (excluding for this purpose any such voting securities
held by Company, or any affiliate, parent or subsidiary of Company, or by any employee benefit plan of Company) pursuant to a transaction
or a series of related transactions which the Board does not approve; or (ii) Merger/Sale of Assets. (A) A merger or consolidation
of Company whether or not approved by the Board, other than a merger or consolidation which would result in the voting securities of Company
outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities
of the surviving entity or the parent of such corporation) at least fifty percent (50%) of the total voting power represented by the voting
securities of Company or such surviving entity or parent of such corporation, as the case may be, outstanding immediately after such merger
or consolidation; or (B) the sale or disposition by Company of all or substantially all of Company’s assets. Executive acknowledges
and agrees that the transactions contemplated by the Merger Agreement shall not constitute a Change of Control.

 

(d)           Conditions. Company shall not be obligated to provide Executive any payment, benefit and/or vesting described in Section
4(b) or Section 4(c) unless and until Executive has executed without revocation a separation agreement in a form acceptable to Company,
which must be signed by Executive, returned to Company and be enforceable and irrevocable no later than sixty (60) days following Executive’s
separation from service (the “Review Period”), and which shall include, at a minimum, the provision of separation pay and
benefits due from Company to Executive as applicable, a complete general release of claims against Company and its affiliated entities
and each of their officers, directors and employees, and standard terms relating to non-disparagement, confidentiality, cooperation and
the like. If Executive executes and does not revoke such agreement within the Review Period, then provision of payments, benefits and/or
vesting shall commence on the first (1st) regular payroll date following the Review Period, provided that if the last day of the
Review Period occurs in the calendar year following the year of termination, then the payment shall not commence until on or after January
2 of such subsequent calendar year. The first payment shall include in a lump sum all amounts that were otherwise payable to Executive
from the date of Executive’s separation from service through such first payment.

 

5.             Confidentiality, Non-Competition, Non-Solicitation and Inventions Assignment Agreement. Executive acknowledges that Executive
is party that certain Company’s Confidentiality, Non-Competition, Non-Solicitation and Inventions Assignment Agreement, attached
hereto as Exhibit B and incorporated by reference into this Agreement (the “Confidentiality Agreement”) and that the
Confidentiality Agreement shall continue in effect in accordance with its terms.

 

    4

     

    

 

6.             
Code Sections 409A and 280G. 

 

(a)            In
the event that the payments or benefits set forth in Section 4 constitute “non-qualified deferred compensation” subject to
Section 409A, then the following conditions apply to such payments or benefits:

 

(i)             
 Any termination of Executive’s employment triggering payment of benefits under Section 4 must constitute a “separation
from service” under Section 409A(a)(2)(A)(i) of the Code and Treas. Reg. §1.409A-1(h) before distribution of such benefits
can commence. To the extent that the termination of Executive’s employment does not constitute a separation of service under Section
409A(a)(2)(A)(i) of the Code and Treas. Reg. §1.409A-1(h) (as the result of further services that are reasonably anticipated to be
provided by Executive to Company at the time Executive’s employment terminates), any such payments under Section 4 that constitute
deferred compensation under Section 409A shall be delayed until after the date of a subsequent event constituting a separation of service
under Section 409A(a)(2)(A)(i) of the Code and Treas. Reg. §1.409A-1(h). For purposes of clarification, this Section 6(a) shall not
cause any forfeiture of benefits on Executive’s part, but shall only act as a delay until such time as a “separation from
service” occurs.

 

(ii)              
Notwithstanding any other provision with respect to the timing of payments under Section 4 if, at the time of Executive’s
termination, Executive is deemed to be a “specified employee” of Company (within the meaning of Section 409A(a)(2)(B)(i) of
the Code), then limited only to the extent necessary to comply with the requirements of Section 409A, any payments to which Executive
may become entitled under Section 4 which are subject to Section 409A (and not otherwise exempt from its application) shall be withheld
until the first (1st) business day of the seventh (7th) month following the termination of Executive’s employment, at which time
Executive shall be paid an aggregate amount equal to the accumulated, but unpaid, payments otherwise due to Executive under the terms
of Section 4.

 

(b)            It is intended that each installment of the payments and benefits provided under Section 4 shall be treated as a separate “payment”
for purposes of Section 409A. Neither Company nor Executive shall have the right to accelerate or defer the delivery of any such payments
or benefits except to the extent specifically permitted or required by Section 409A.

 

(c)             Notwithstanding
any other provision of this Agreement to the contrary, this Agreement shall be interpreted and at all times administered in a manner
that avoids the inclusion of compensation in income under Section 409A, or the payment of increased taxes, excise taxes or other penalties
under Section 409A. The parties intend this Agreement to be in compliance with Section 409A. Executive acknowledges and agrees that Company
does not guarantee the tax treatment or tax consequences associated with any payment or benefit arising under this Agreement, including
but not limited to consequences related to Section 409A.

 

(d)          
If any payment or benefit Executive would receive under this Agreement, when combined with any other payment or benefit Executive
receives pursuant to a Change of Control (for purposes of this section, a “Payment”) would: (i) constitute a “parachute
payment” within the meaning of Section 280G the Code; and (ii) but for this sentence, be subject to the excise tax imposed by Section
4999 of the Code (the “Excise Tax”), then such Payment shall be either: (A) the full amount of such Payment; or (B) such
lesser amount (with cash payments being reduced before stock-based compensation) as would result in no portion of the Payment being subject
to the Excise Tax, whichever of the foregoing amounts, taking into account the applicable federal, state and local employments taxes,
income taxes, and the Excise Tax, results in Executive’s receipt, on an after-tax basis, of the greater amount of the Payment notwithstanding
that all or some portion of the Payment may be subject to the Excise Tax.

 

    5

     

    

 

7.              
 General.

 

(a)             Notices.
Any notices, requests, demands and other communications provided for by this Agreement shall be sufficient if in writing and delivered
in person or sent by a nationally recognized overnight courier service or by registered or certified mail, postage prepaid, return receipt
requested, to Executive at the last address Executive has filed in writing with Company or, in the case of Company, at its main offices,
attention of the Chairperson of the Board.

 

(b)            Waivers
and Consents. The terms and provisions of this Agreement may be waived, or consent for the departure therefrom granted, only by written
document executed by the party entitled to the benefits of such terms or provisions. No such waiver or consent shall be deemed to be
or shall constitute a waiver or consent with respect to any other terms or provisions of this Agreement. Each such waiver or consent
shall be effective only in the specific instance and for the purpose for which it was given, and shall not constitute a continuing waiver
or consent.

 

(c)            Assignment.
Company may assign its rights and obligations hereunder to any person or entity that succeeds to all or substantially all of Company’s
business or that aspect of Company’s business in which Executive is principally involved. Executive may not assign Executive’s
rights and obligations under this Agreement without the prior written consent of Company.

 

(d)            Governing
Law; Jury Waiver. This Agreement and the rights and obligations of the parties hereunder shall be construed in accordance with and
governed by the law of the state of Florida without giving effect to the conflict of law principles thereof. Any legal action or proceeding
with respect to this Agreement shall be brought in the courts of the State of Florida or the United States of America for the Southern
District of Florida. By execution and delivery of this Agreement, each of the parties hereto accepts for itself and in respect of its
property, generally and unconditionally, the exclusive jurisdiction of the aforesaid courts. ANY ACTION, DEMAND, CLAIM OR COUNTERCLAIM
ARISING UNDER OR RELATING TO THIS AGREEMENT SHALL BE RESOLVED BY A JUDGE ALONE AND EACH OF COMPANY AND EXECUTIVE WAIVES ANY RIGHT TO
A JURY TRIAL THEREOF.

 

(e)             Entire Agreement; Modifications and Amendments. This Agreement, together with the other agreements specifically referenced
herein, embodies the entire agreement and understanding between the parties hereto with respect to the subject matter hereof and supersedes
all prior oral or written agreements and understandings relating to the subject matter hereof, including the Original Employment Agreement.
No statement, representation, warranty, covenant or agreement of any kind not expressly set forth in this Agreement shall affect, or be
used to interpret, change or restrict, the express terms and provisions of this Agreement. The terms and provisions of this Agreement
may be modified or amended only by written agreement executed by the parties hereto.

 

(f)             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.

 

(Signature page follows)

 

    6

     

    

  

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

 

	Jason DiBona

                                                                                

                                                                                

                                                                                
	 	AEROCLEAN TECHNOLOGIES, INC.

                                                                                

                                                                                

                                                                                

                                                                                

	 	 	 
	/s/ Jason DiBona	 	By: /s/ Amin J. Khoury
	Signature	 	Name: Amin J. Khoury
	Date: October 3, 2022	 	Title: Chairman of the Board
	Address:	 	Date: October 3, 2022

 

(Signature page to Employment Agreement)

 

     

     

    

 

EXHIBIT A

 

OUTSIDE ACTIVITIES 

 

     

     

    

 

EXHIBIT B

 

CONFIDENTIALITY, NON-COMPETITION, NON-SOLICITATION,

AND INVENTIONS ASSIGNMENT AGREEMENT

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