Document:

Exhibit 10.2

 

REGISTRATION RIGHTS AGREEMENT

 

THIS REGISTRATION RIGHTS
AGREEMENT (this “Agreement”), dated as of November 17, 2022, is entered into by and between PAXMEDICA, INC.,
a Delaware corporation (the “Company”), and LINCOLN PARK CAPITAL FUND, LLC, an Illinois limited liability company
(together with its permitted assigns, the “Investor”). Capitalized terms used herein and not otherwise defined
herein shall have the respective meanings set forth in the Purchase Agreement by and between the parties hereto, dated as of the date
hereof (as amended, restated, supplemented or otherwise modified from time to time, the “Purchase Agreement”).

 

WHEREAS:

 

A.            Upon the terms and subject to the conditions of the Purchase Agreement, (i) the Company has agreed to issue to the Investor,
and the Investor has agreed to purchase, up to Twenty Million Dollars ($20,000,000) of the Company's common stock, par value $0.0001
per share (the “Common Stock”), pursuant to the Purchase Agreement (such shares, the “Purchase Shares”),
and (ii) the Company has agreed to issue to the Investor such number of shares of Common Stock as is required pursuant to the Purchase
Agreement (the “Commitment Shares”); and

 

B.             To induce the Investor to enter into the Purchase Agreement, the Company has agreed to provide certain registration rights under
the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor statute (collectively, the
 “Securities Act”), and applicable state securities laws.

 

NOW, THEREFORE, in
consideration of the promises and the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Company and the Investor hereby agree as follows:

 

		1.	DEFINITIONS.

 

For purposes of this Agreement,
the following terms shall have the following meanings:

 

(a)           “Register,” “Registered,” and “Registration” refer to a registration effected
by preparing and filing one or more registration statements of the Company in compliance with the Securities Act and pursuant to Rule
415 under the Securities Act or any successor rule providing for offering securities on a continuous basis (“Rule 415”), and
the declaration or ordering of effectiveness of such registration statement(s) by the U.S. Securities and Exchange Commission (the “SEC”).

 

(b)           “Registrable Securities” means the Purchase Shares that may from time to time be issued or issuable to the Investor
upon purchases of the Available Amount (as defined in the Purchase Agreement) under the Purchase Agreement (without regard to any limitation
or restriction on purchases), the Commitment Shares issued or issuable to the Investor, and any Common Stock issued or issuable with respect
to the Purchase Shares, the Commitment Shares or the Purchase Agreement as a result of any stock split, stock dividend, recapitalization,
exchange or similar event, without regard to any limitation on purchases under the Purchase Agreement.

 

    

     

    

 

(c)           “Registration Statement” means one or more registration statements of the Company covering only the resale of
the Registrable Securities, including for the avoidance of doubt, any New Registration Statement (as defined below).

 

		2.	REGISTRATION.

 

(a)           Mandatory Registration. The Company shall as soon as
reasonably practicable, an in any event within twenty (20) Business Days of the date of this Agreement file with the SEC, an initial Registration
Statement on Form S-1 covering the maximum number of Registrable Securities as shall be permitted to be included thereon in accordance
with applicable SEC rules, regulations and interpretations so as to permit the resale of such Registrable Securities by the Investor under
Rule 415 under the Securities Act at then prevailing market prices (and not fixed prices), as mutually determined by both the Company
and the Investor in consultation with their respective legal counsel, subject to the aggregate number of authorized shares of the Company’s
Common Stock then available for issuance in its Charter and the Exchange Cap (each as defined in the Purchase Agreement), provided, however,
that the Company may delay filing or suspend the use of any Registration Statement if the Company determines, upon advice of legal counsel,
that in order for the registration statement to not contain a material misstatement or omission, an amendment thereto would be needed,
or if the Company’s Board of Directors, upon advice of legal counsel, reasonably believes that such filing or use could materially
affect a bona fide business or financing transaction of the Company or would require premature disclosure of information that could materially
adversely affect the Company. The initial Registration Statement shall register only the Registrable Securities. The Investor and its
counsel acknowledges that it will be identified in the initial Registration Statement as an underwriter within the meaning of 2(a)(11)
of the Securities Act and shall have a reasonable opportunity to review and comment upon such Registration Statement and any amendment
or supplement to such Registration Statement and any Prospectus (as defined below) prior to its filing with the SEC, and the Company shall
give due consideration to all such comments. The Investor shall furnish all information reasonably requested by the Company for inclusion
therein. The Company shall use its commercially reasonable efforts to have the Registration Statement and any amendment declared effective
by the SEC at the earliest practicable date. The Company shall use commercially reasonable efforts to keep the Registration Statement
effective pursuant to Rule 415 promulgated under the Securities Act and available for the resale by the Investor of all of the Registrable
Securities covered thereby at all times until the earlier of (i) the date on which the Investor shall have resold all the Registrable
Securities covered thereby and no Available Amount remains under the Purchase Agreement, (ii) all of the Registrable Securities may be
sold by the Investor without Registration pursuant to Rule 144 without limitation as to volume and manner of sale restrictions and no
Available Amount remains under the Purchase Agreement, (iii) six months after the termination of the Purchase Agreement, and (iv) one
year after the date on which no Available Amount remains under the Purchase Agreement (the “Registration Period”).
The Registration Statement (including any amendments or supplements thereto and Prospectuses contained therein) shall not contain any
untrue statement of a material fact or omit to state a material fact required to be stated therein, or necessary to make the statements
therein, in light of the circumstances in which they were made, not misleading.

 

(b)           Rule 424 Prospectus.
The Company shall, as required by applicable securities regulations, from time to time file with the SEC, pursuant to Rule 424 promulgated
under the Securities Act, the prospectus and prospectus supplements (any such prospectus or prospectus supplement being referred to herein
as a “Prospectus”) to be used in connection with sales of the Registrable Securities under the Registration Statement
and shall provide that the Registration Statement on Form S-1 filed hereunder shall incorporate documents by reference (including by way
of forward incorporation by reference) to the maximum extent possible.1 Without limiting
the foregoing, so long as the Registration Statement is on Form S-1, at any time the Company files a Quarterly Report on Form 10-Q or
Current Report on Form 8-K containing material information (other than Current Reports on Form 8-K furnished under Item 2.02 or Item 7.01
of Form 8-K and exhibits filed on such form that are related to such items), the Company shall file a Prospectus to update the Registration
Statement to include such material information, and shall file a post-effective amendment to the Registration Statement at the time of
the filing by the Company of any Annual Report on Form 10-K. Except in the case of a Prospectus filed solely as required by the immediately
preceding sentence, the Investor and its counsel shall have a reasonable opportunity to review and comment upon any such Prospectus prior
to its filing with the SEC, and the Company shall give due consideration to all such comments. The Investor shall use its commercially
reasonable efforts to comment upon any such Prospectus within one (1) Business Day from the date the Investor receives the substantially
final pre-filing version of such Prospectus.

 

 

 

1 NOTE: Dechert
 – This language is meant to require the company to forward incorporate by reference once it is able to.

 

    

     

    

 

(b)           Sufficient Number of Shares Registered. In the event
the number of shares available under the Registration Statement at any time is insufficient to cover the Registrable Securities, the Company
shall, to the extent necessary and permissible, amend the Registration Statement or file a new registration statement (together with any
Prospectuses thereunder, a “New Registration Statement”), so as to cover all of such Registrable Securities (subject
to the limitations set forth in Section 2(a)) as soon as reasonably practicable, but in any event not later than ten (10) Business Days
after the necessity therefor arises, subject to any limits that may be imposed by the SEC pursuant to Rule 415. The Company shall
use its reasonable best efforts to have such amendment and/or New Registration Statement become effective as soon as reasonably practicable
following the filing thereof.    

 

(c)           Offering. If the SEC seeks to characterize any offering
pursuant to a Registration Statement filed pursuant to this Agreement as constituting an offering of securities that does not permit such
Registration Statement to become effective and be used by the Investor under Rule 415 at then-prevailing market prices (and not fixed
prices), or if after the filing of the initial Registration Statement with the SEC pursuant to Section 2(a), the Company is otherwise
required by the Staff or the SEC to reduce the number of Registrable Securities included in such initial Registration Statement, then
the Company shall reduce the number of Registrable Securities to be included in such initial Registration Statement (with the prior consent,
which shall not be unreasonably withheld, of the Investor and its legal counsel as to the specific Registrable Securities to be removed
therefrom) until such time as the SEC shall so permit such Registration Statement to become effective and be used as aforesaid. In the
event of any reduction in Registrable Securities pursuant to this paragraph, the Company shall file one or more New Registration Statements
until such time as all Registrable Securities have been included in Registration Statements that have been declared effective and the
Prospectuses contained therein are available for use by the Investor.

 

(d)           Form S-3. The Company shall use its commercially reasonable efforts to become (and thereafter remain) eligible to use Form
S-3 pursuant to General Instruction I.B.1 thereof to register the Registrable Securities for resale on August 25, 2023 (or as soon thereafter
as reasonably possible) (the first date on which the Company becomes so eligible pursuant to such General Instruction, the “Qualification
Date”). So long as Registrable Securities remain outstanding, promptly following the Qualification Date, but in no event more
than thirty (30) days after the Qualification Date (the “Qualification Deadline”), the Company shall file a registration
statement on Form S-3 covering the Registrable Securities (or a post-effective amendment on Form S-3 to a registration statement on Form
S-1) (a “Form S-3 Registration Statement,” which shall constitute a New Registration Statement) and shall use commercially
reasonable efforts to cause such Form S-3 Registration Statement to be declared effective as promptly as practicable thereafter; provided
that the Company shall maintain the effectiveness of the Registration Statement then in effect until such time as a Form S-3 Registration
Statement covering the Registrable Securities has been declared effective by the SEC.

 

    

     

    

 

		3.	RELATED OBLIGATIONS.

 

With respect to the Registration
Statement and whenever any Registrable Securities are to be Registered pursuant to Section 2, including on the initial Registration
Statement or on any New Registration Statement, the Company shall use its reasonable best efforts to effect the registration of the Registrable
Securities in accordance with the intended method of disposition thereof and, pursuant thereto, the Company shall have the following obligations:

 

(a)           Notifications. The Company will notify the Investor promptly
of the time when any subsequent amendment to the initial Registration Statement or any New Registration Statement, other than documents
incorporated by reference, has been filed with the SEC and/or has become effective or where a receipt has been issued therefor or any
subsequent supplement to a Prospectus has been filed and of any request by the SEC for any amendment or supplement to the Registration
Statement, any New Registration Statement or any Prospectus or for additional information.

 

(b)           Amendments. The Company will prepare and file with the SEC
such amendments or supplements to the initial Registration Statement, any New Registration Statement and any Prospectus, as applicable,
as may be necessary to keep the Registration Statement or any New Registration Statement effective at all times during the Registration
Period, and, during such period, comply with the provisions of the Securities Act in connection with the offer, issuance and sale of the
Registrable Securities.

 

(c)           Investor Review. The Company will not file any amendment
or supplement to the Registration Statement, any New Registration Statement or any Prospectus, other than documents incorporated by reference,
relating to the Investor, the Registrable Securities or the transactions contemplated hereby unless (A) the Investor shall have been advised
and afforded the opportunity to review and comment thereon at least two (2) Business Days prior to filing with the SEC, (B) the Company
shall have given due consideration to any comments thereon received from the Investor or its counsel, and (C) the Investor has not reasonably
objected thereto (provided, however, that the failure of the Investor to make such objection shall not relieve the Company of any obligation
or liability hereunder), and the Company will furnish to the Investor at the time of filing thereof a copy of any document that upon filing
is deemed to be incorporated by reference into the Registration Statement or any Prospectus, except for those documents available via
EDGAR.

 

(d)           Form
S-3. Following the Company’s filing of the Form S-3 Registration Statement in accordance with Section 2(d), the Company will
cause each amendment or supplement to the Prospectus, other than documents incorporated by reference, to be filed with the SEC as required
pursuant to the rules of Form S-3. 

 

(e)           Copies Available.  The
Company shall furnish to the Investor, (i) promptly after the same is prepared and filed with the SEC, at least one copy of such
Registration Statement and any amendment(s) thereto, including financial statements and schedules, all documents incorporated therein
by reference and all exhibits, (ii) upon the effectiveness of any Registration Statement, a copy of the Prospectus included in such
Registration Statement and all amendments and supplements thereto (or such other number of copies as the Investor may reasonably request)
and (iii) such other documents, including copies of any preliminary or final Prospectus, as the Investor may reasonably request from
time to time in order to facilitate the disposition of the Registrable Securities owned by the Investor. For the avoidance of doubt, any
filing available to the Investor via the SEC’s live EDGAR system shall be deemed “furnished to the Investor” hereunder.

 

(f)            Qualification. The Company shall take all such action, if
any, as is reasonably necessary in order to obtain an exemption for or to qualify (i) the issuance of the Commitment Shares and the sale
of the Purchase Shares to the Investor under this Agreement and (ii) any subsequent resale of all Commitment Shares and all Purchase Shares
by the Investor, in each case, under applicable securities or “Blue Sky” laws of the states of the United States in such states
as is reasonably requested by the Investor during the Registration Period, and shall provide evidence of any such action so taken to the
Investor. During the Registration Period, the Company shall promptly notify the Investor of the receipt by the Company of any notification
with respect to the suspension of the registration or qualification of any of the Registrable Securities for sale under the securities
or “blue sky” laws of any jurisdiction in the United States or its receipt of actual notice of the initiation or threat of
any proceeding for such purpose.

 

    

     

    

 

(g)           Notification of Stop Orders; Material Changes. The Company
shall advise the Investor promptly (but in no event later than 24 hours) and shall confirm such advice in writing, in each case: (i) of
the Company’s receipt of notice of any request by the SEC or any other federal or state governmental authority for amendment of
or a supplement to the Registration Statement or any Prospectus or for any additional information; (ii) of the Company’s receipt
of notice of the issuance by the SEC or any other federal or state governmental authority of any stop order suspending the effectiveness
of the Registration Statement or prohibiting or suspending the use of any Prospectus, or any New Registration Statement, or of the Company’s
receipt of any notification of the suspension of qualification of the Registrable Securities for offering or sale in any jurisdiction
or the initiation or contemplated initiation of any proceeding for such purpose; and (iii) of the Company becoming aware of the happening
of any event, which makes any statement of a material fact made in the Registration Statement or any Prospectus untrue or which requires
the making of any additions to or changes to the statements then made in the Registration Statement or any Prospectus in order to state
a material fact required by the Securities Act to be stated therein or necessary in order to make the statements then made therein (in
the case of any Prospectus, in light of the circumstances under which they were made) not misleading, or of the necessity to amend the
Registration Statement or any Prospectus to comply with the Securities Act or any other law. The Company shall not be required to disclose
to the Investor the substance or specific reasons of any of the events set forth in clause (i) through (iii) of the immediately preceding
sentence, but rather, shall only be required to disclose that the event has occurred. If at any time the SEC, or any other federal or
state governmental authority shall issue any stop order suspending the effectiveness of the Registration Statement or prohibiting or suspending
the use of any Prospectus, the Company shall use its reasonable best efforts to obtain the withdrawal of such order at the earliest practicable
time. The Company shall furnish to the Investor, without charge and upon request, a copy of any correspondence from the SEC or the staff
of the SEC, or any other federal or state governmental authority to the Company or its representatives relating to the Registration Statement,
any New Registration Statement or any Prospectus as the case may be. The Company shall not deliver to the Investor any Regular Purchase
Notice, Accelerated Purchase Notice or Additional Accelerated Purchase Notice, and the Investor shall not be obligated to purchase any
shares of Common Stock under the Purchase Agreement, during the continuation or pendency of any of the foregoing events. If at any time
the SEC shall issue any stop order suspending the effectiveness of the Registration Statement or prohibiting or suspending the use of
any Prospectus, the Company shall use its reasonable best efforts to obtain the withdrawal of such order at the earliest practicable time.
The Company shall furnish to the Investor, without charge and upon request, a copy of any correspondence from the SEC or the staff of
the SEC to the Company or its representatives relating to the Registration Statement or any Prospectus, as the case may be.

 

(h)           Listing on the Principal Market. The Company shall promptly
secure the listing, or conditional listing as applicable, of all of the Purchase Shares and Commitment Shares to be issued to the Investor
hereunder on the Principal Market (subject to standard listing conditions, if any, for transactions of this nature, official notice of
issuance and the Exchange Cap) and upon each other national securities exchange, automated quotation system or trading market, if any,
upon which the Common Stock are then listed, quoted or traded, and shall maintain, so long as any Common Stock shall be so listed, such
listing of all such Registrable Securities from time to time issuable hereunder. The Company shall use its commercially reasonable best
efforts to maintain the listing of the Common Stock on the Principal Market and shall comply in all respects with the Company’s
reporting, filing and other obligations under the bylaws or rules and regulations of the Principal Market. The Company shall not take
any action that would reasonably be expected to result in the delisting or suspension of the Common Stock on the Principal Market. The
Company shall promptly, and in no event later than the following Business Day, provide to the Investor copies of any notices it receives
from any Person regarding the continued eligibility of the Common Stock for listing on the Principal Market; provided, however, that the
Company shall not provide the Investor copies of any such notice that the Company reasonably believes constitutes material non-public
information and that the Company would not be required to publicly disclose such notice in any report or statement filed with the SEC
under the Exchange Act (including on Form 8-K) or the Securities Act. The Company shall pay all fees and expenses in connection with satisfying
its obligations under this Section 3(h).

 

    

     

    

 

(i)            Delivery of Shares. The Company shall cooperate with the
Investor to facilitate the timely preparation and delivery of DWAC Shares (not bearing any restrictive legend) representing the Registrable
Securities to be offered pursuant to the Registration Statement or any New Registration Statement and enable such DWAC Shares to be in
such denominations or amounts as the Investor may reasonably request and registered in such names as the Investor may request.

 

(j)            Transfer Agent. The Company shall at all times maintain
the services of the Transfer Agent with respect to its Common Stock.

 

(k)           Approvals. The Company shall use its reasonable best efforts
to cause the Registrable Securities covered by any Registration Statement to be Registered with or approved by such other governmental
agencies or authorities in the United States as may be necessary to consummate the disposition of such Registrable Securities.

 

(l)            Post-Effective
Amendments. If reasonably requested in writing by the Investor, the Company shall (i) as soon as practicable after receipt of written
notice from the Investor, incorporate in a prospectus supplement or post-effective amendment such information as the Investor reasonably
requests be included therein relating to the sale and distribution of Registrable Securities, including, without limitation, information
with respect to the number of Registrable Securities being sold, the purchase price being paid therefor and any other terms of the offering
of the Registrable Securities; (ii) make all required filings of such prospectus supplement or post-effective amendment as soon as practicable
upon notification of the matters to be incorporated in such prospectus supplement or post-effective amendment; and (iii) supplement or
make amendments to any Registration Statement or New Registration Statement.

 

(m)          Confirmation
of Effectiveness. Within one (2) Business Days after any Registration Statement which includes the Registrable Securities is
ordered effective by the SEC, the Company shall deliver, and shall cause legal counsel for the Company to deliver, to the Transfer Agent
for such Registrable Securities (with copies to the Investor) (i) confirmation that such Registration Statement has been declared effective
by the SEC in the form attached hereto as Exhibit A, or such other form acceptable to the Company’s Transfer Agent and (ii)
the Commencement Irrevocable Transfer Agent Instructions in the form agreed to prior to the date hereof. Thereafter,
if requested in writing by the Investor at any time, the Company shall require its counsel to deliver to the Investor a written confirmation
whether the Registration Statement has been declared effective under the Securities Act and if, to its knowledge, whether a stop order
suspending the effectiveness of the Registration Statement has been issued or threatened by the SEC.

 

(n)           Further Assurances. The Company agrees to take all other
reasonable actions as necessary and reasonably requested in writing by the Investor to expedite and facilitate disposition by the Investor
of Registrable Securities pursuant to any Registration Statement.

 

    

     

    

 

(o)           Suspension of Sales. The Investor agrees that, upon receipt
of any notice from the Company of the existence of any suspension or stop order as set forth in Section 3(f) or 3(g), the
Investor will immediately discontinue disposition of Registrable Securities pursuant to any Registration Statement covering such Registrable
Securities until the Investor's receipt of the copies of a notice regarding the resolution or withdrawal of the suspension or stop order
as contemplated by Section 3(f) or 3(g). Notwithstanding anything to the contrary, the Company shall cause its transfer
agent to promptly deliver to the Investor DWAC Shares without any restrictive legend in accordance with the terms of the Purchase Agreement
in connection with any sale of Registrable Securities with respect to which the Investor has entered into a contract for sale prior to
the Investor’s receipt of a notice from the Company of the happening of any event of the kind described in Section 3(f) or
3(g) and for which the Investor has not yet settled.

 

 

		4.	OBLIGATIONS OF THE INVESTOR.

 

(a)           Investor Information. The Investor has furnished to the
Company in Exhibit B hereto such information regarding itself, the Registrable Securities held by it, and the intended method of
disposition thereof, including any arrangement between the Investor and any other Person relating to the sale or distribution of the Securities,
as required to effect the registration of such Registrable Securities and shall execute such documents in connection with such registration
as the Company may reasonably request. The Company shall notify the Investor in writing of any other information the Company reasonably
requires from the Investor in connection with any Registration Statement hereunder. The Investor will as promptly as practicable notify
the Company of any material change in the information set forth in Exhibit B, other than changes in its ownership of Common Stock.

 

(b)           Investor Cooperation. The Investor agrees to cooperate with
the Company as reasonably requested by the Company in connection with the preparation and filing of any amendments and supplements to
any Registration Statement or New Registration Statement hereunder.

 

		5.	EXPENSES OF REGISTRATION.

 

All reasonable expenses of the
Company, other than sales or brokerage commissions and fees and disbursements of counsel for, and other expenses of, the Investor, incurred
in connection with registrations, filings or qualifications pursuant to Sections 2 and 3, including, without limitation,
all registration, listing and qualifications fees, printers and accounting fees, and fees and disbursements of counsel for the Company,
shall be paid by the Company.

 

		6.	INDEMNIFICATION.

 

(a)           To the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend the Investor, each
Person, if any, who controls the Investor, the members, the directors, officers, partners, equityholders, employees, members, managers,
agents and representatives of the Investor and each Person, if any, who controls the Investor within the meaning of the Securities Act
or the Exchange Act (each, an “Indemnified Person”), against any losses, claims, damages, liabilities, judgments, fines,
penalties, charges, costs, reasonable attorneys’ fees, amounts paid in settlement (with the consent of the Company, such consent
not to be unreasonably withheld) or reasonable expenses, (collectively, “Claims”) reasonably incurred in investigating,
preparing or defending any action, claim, suit, inquiry, proceeding, investigation or appeal taken from the foregoing by or before any
court or governmental, administrative or other regulatory agency or body or the SEC, whether pending or threatened, whether or not an
indemnified party is or may be a party thereto (“Indemnified Damages”), to which any of them may become subject insofar
as such Claims (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon: (i) any
untrue statement or alleged untrue statement of a material fact in the initial Registration Statement, any New Registration Statement
or any post-effective amendment thereto or in any filing made in connection with the qualification of the offering under the securities
or other “blue sky” laws of any jurisdiction in which Registrable Securities are offered (“Blue Sky Filing”),
or the omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein
not misleading, (ii) any untrue statement or alleged untrue statement of a material fact contained in the Prospectus or the omission or
alleged omission to state therein any material fact necessary to make the statements made therein, in light of the circumstances under
which the statements therein were made, not misleading, (iii) any violation or alleged violation by the Company of the Securities Act,
the Exchange Act, any other law, including, without limitation, any state securities law, or any rule or regulation thereunder relating
to the offer or sale of the Registrable Securities pursuant to the initial Registration Statement or any New Registration Statement or
(iv) any violation by the Company of this Agreement (the matters in the foregoing clauses (i) through (iv) being, collectively, “Violations”). The
Company shall reimburse each Indemnified Person promptly as such expenses are incurred and are due and payable, for any reasonable out-of-pocket
legal fees or other reasonable expenses incurred by them in connection with investigating or defending any such Claim. Notwithstanding
anything to the contrary contained herein, the indemnification agreement contained in this Section 6(a): (A) shall not apply to
a Claim by an Indemnified Person arising out of or based upon a Violation which occurs in reliance upon and in conformity with information
furnished in writing to the Company by the Investor or such Indemnified Person expressly for use in connection with the preparation of
the initial Registration Statement, any New Registration Statement, any Prospectus, or any such amendment thereof or supplement thereto,
if the foregoing was timely made available by the Company; (B) with respect to use by an Indemnified Person of any superseded Prospectus,
shall not inure to the benefit of any such Person from whom the Person asserting any such Claim purchased the Registrable Securities that
are the subject thereof (or to the benefit of any other Indemnified Person) if the untrue statement or omission of material fact contained
in the superseded Prospectus was corrected in the revised Prospectus, as then amended or supplemented, if such revised Prospectus was
timely made available by the Company pursuant to Section 3(c) or Section 3(d), and the Indemnified Person was promptly advised
in writing not to use the incorrect Prospectus prior to the use giving rise to a violation; and (C) shall not apply to amounts paid in
settlement of any Claim if such settlement is effected without the prior written consent of the Company, which consent shall not be unreasonably
withheld. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of the Indemnified
Person and shall survive the transfer of the Registrable Securities by the Investor pursuant to Section 9.

 

    

     

    

 

(b)           In connection with the initial Registration Statement, any New Registration Statement or any Prospectus, the Investor agrees to
indemnify, hold harmless and defend, to the same extent and in the same manner as is set forth in Section 6(a), the Company, each
of its directors, each of its officers who signed the initial Registration Statement or signs any New Registration Statement, and each
Person, if any, who controls the Company within the meaning of the Securities Act or the Exchange Act (collectively and together with
an Indemnified Person, an “Indemnified Party”), against any Claim or Indemnified Damages to which any of them may become
subject, under the Securities Act, the Exchange Act or otherwise, insofar as such Claim or Indemnified Damages arise out of or are based
upon any Violation, in each case to the extent, and only to the extent, that such Violation occurs in reliance upon and in conformity
with written information about the Investor set forth on Exhibit B attached hereto or updated from time to time in writing by the
Investor and furnished to the Company by the Investor expressly for inclusion in the initial Registration Statement, any New Registration
Statement or any Prospectus; and, subject to Section 6(d), the Investor will reimburse any reasonable out-of-pocket legal or other
expenses reasonably incurred by them in connection with investigating or defending any such Claim; provided, however, that
the indemnity agreement contained in this Section 6(b) and the agreement with respect to contribution contained in Section 7
shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written consent of the Investor,
which consent shall not be unreasonably withheld; provided, further, however, that the Investor shall be liable under
this Section 6(b) for only that amount of a Claim or Indemnified Damages as does not exceed the net proceeds to the Investor as
a result of the sale of Registrable Securities pursuant to such Registration Statement. Such indemnity shall remain in full force
and effect regardless of any investigation made by or on behalf of such Indemnified Party and shall survive the transfer of the Registrable
Securities by the Investor pursuant to Section 9.

 

(c)           Promptly after receipt by an Indemnified Person or Indemnified Party under this Section 6 of notice of the commencement
of any action or proceeding (including any governmental action or proceeding) involving a Claim, such Indemnified Person or Indemnified
Party shall, if a Claim in respect thereof is to be made against any indemnifying party under this Section 6, deliver to the indemnifying
party a written notice of the commencement thereof, and the indemnifying party shall have the right to participate in, and, to the extent
the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume control of the defense thereof
with counsel mutually satisfactory to the indemnifying party and the Indemnified Person or the Indemnified Party, as the case may be;
provided, however, that an Indemnified Person or Indemnified Party shall have the right to retain its own counsel with the
fees and expenses to be paid by the indemnifying party, if, in the reasonable opinion of counsel retained by the indemnifying party, the
representation by such counsel of the Indemnified Person or Indemnified Party and the indemnifying party would be inappropriate due to
actual or potential differing interests between such Indemnified Person or Indemnified Party and any other party represented by such counsel
in such proceeding. The Indemnified Party or Indemnified Person shall cooperate with the indemnifying party in connection with any negotiation
or defense of any such action or claim by the indemnifying party and shall furnish to the indemnifying party all information reasonably
available to the Indemnified Party or Indemnified Person which relates to such action or claim. The indemnifying party shall keep
the Indemnified Party or Indemnified Person fully apprised as to the status of the defense or any settlement negotiations with respect
thereto. No indemnifying party shall be liable for any settlement of any action, claim or proceeding effected without its written
consent, provided, however, that the indemnifying party shall not unreasonably withhold, delay or condition its consent. No indemnifying
party shall, without the consent of the Indemnified Party or Indemnified Person, consent to entry of any judgment or enter into any settlement
or other compromise which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified
Party or Indemnified Person of a release from all liability in respect to such claim or litigation or which includes any admission as
to fault, culpability or failure to act on the part of such Indemnified Party or Indemnified Person. Following indemnification as
provided for hereunder, the indemnifying party shall be subrogated to all rights of the Indemnified Party or Indemnified Person with respect
to all third parties, firms or corporations relating to the matter for which indemnification has been made. The failure to deliver
written notice to the indemnifying party within a reasonable time of the commencement of any such action shall not relieve such indemnifying
party of any liability to the Indemnified Person or Indemnified Party under this Section 6, except to the extent that the indemnifying
party is prejudiced in its ability to defend such action.

 

(d)           The indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course
of the investigation or defense, as and when bills are received or Indemnified Damages are incurred. Any Person receiving a payment
pursuant to this Section 6 which person is later determined to not be entitled to such payment shall return such payment to the
person making it.

 

(e)           The indemnity agreements contained herein shall be in addition to (i) any cause of action or similar right (at law or in equity)
of the Indemnified Party or Indemnified Person against the indemnifying party or others, and (ii) any liabilities the indemnifying party
may be subject to pursuant to the law.

 

    

     

    

 

		7.	CONTRIBUTION.

 

To the extent any indemnification
by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum contribution with respect
to any amounts for which it would otherwise be liable under Section 6 to the fullest extent permitted by law; provided, however,
that: (i) no seller of Registrable Securities guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities
Act) shall be entitled to contribution from any seller of Registrable Securities who was not guilty of fraudulent misrepresentation; and
(ii) contribution by any seller of Registrable Securities shall be limited in amount to the net amount of proceeds received by such seller
from the sale of such Registrable Securities.

 

		8.	REPORTS AND DISCLOSURE UNDER THE SECURITIES ACT.

 

With a view to making
available to the Investor the benefits of Rule 144 promulgated under the Securities Act or any other similar rule or regulation of the
SEC that may at any time permit the Investor to sell securities of the Company to the public without registration (“Rule 144”),
the Company agrees, at the Company’s sole expense, to:

 

(a) make and keep public
information available, as those terms are understood and defined in Rule 144;

 

(b) file with the SEC
in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act so long as the
Company remains subject to such requirements and the filing of such reports and other documents is required for the applicable provisions
of Rule 144;

 

(c) furnish to the Investor
so long as the Investor owns Registrable Securities, promptly upon written reasonable request, (i) a written statement by the Company
that it has complied with the reporting and or disclosure provisions of Rule 144, the Securities Act and the Exchange Act, (ii) a
copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company, and (iii) such
other information as may be reasonably requested to permit the Investor to sell such securities pursuant to Rule 144 without registration;
and

 

(d) take such additional
action as is reasonably requested by the Investor to enable the Investor to sell the Registrable Securities pursuant to Rule 144, including,
delivering all such legal opinions, consents, certificates, resolutions and instructions to the Company’s Transfer Agent as may
be reasonably requested in writing from time to time by the Investor and otherwise fully cooperate with Investor and Investor’s
broker to effect such sale of securities pursuant to Rule 144; provided, however, the Investor and its broker shall cooperate with the
Company and its counsel and provide the necessary certificates, instructions and other documents reasonably requested by the Company or
its counsel in order to enable the Investor to sell the Registrable Securities pursuant to Rule 144.

 

The Company agrees that
damages may be an inadequate remedy for any breach of the terms and provisions of this Section 8 and that Investor shall, whether
or not it is pursuing any remedies at law, be entitled to seek equitable relief in the form of a preliminary or permanent injunction,
without the necessity of showing economic loss and without having to post any bond or other security, upon any breach or threatened breach
of any such terms or provisions.

 

    

     

    

 

		9.	ASSIGNMENT OF REGISTRATION RIGHTS.

 

The Company shall not assign
this Agreement or any rights or obligations hereunder without the prior written consent of the Investor; provided, however, that any transaction,
whether by merger, reorganization, restructuring, consolidation, financing or otherwise, whereby the Company remains the surviving entity
immediately after such transaction shall not be deemed an assignment. The Investor may not assign its rights under this Agreement
without the prior written consent of the Company, other than to an affiliate of the Investor controlled by Jonathan Cope or Josh Scheinfeld,
in which case the assignee must agree in writing to be bound by the terms and conditions of this Agreement.

 

		10.	AMENDMENT OF REGISTRATION RIGHTS.

 

No provision of this Agreement
may be amended or waived by the parties from and after the date that is one (1) Business Day immediately preceding the initial filing
of the Registration Statement with the SEC. Subject to the immediately preceding sentence, no provision of this Agreement may be (i) amended
other than by a written instrument signed by both parties hereto or (ii) waived other than in a written instrument signed by the party
against whom enforcement of such waiver is sought. Failure of any party to exercise any right or remedy under this Agreement or otherwise,
or delay by a party in exercising such right or remedy, shall not operate as a waiver thereof.

 

		11.	MISCELLANEOUS.

 

(a)           Notices. Any notices, consents or other communications required
or permitted to be given under the terms of this Agreement must be in writing and will be deemed to have been delivered: (i) upon receipt
when delivered personally; (ii) upon receipt when sent by email (provided confirmation of transmission is mechanically or electronically
generated and kept on file by the sending party); or (iii) one Business Day after deposit with a nationally recognized overnight delivery
service, in each case properly addressed to the party to receive the same. The addresses for such communications shall be:

 

PaxMedica, Inc.

303 South Broadway, Suite 125

Tarrytown, NY 10591

E-mail: hweisman@paxmedica.com

Attention: Howard Weisman

 

With a copy to (which shall not constitute
notice or service of process):

 

Dechert LLP

1095 Avenue of the Americas

New York, New York 10036

Telephone: (212) 698-3500

Email: anna.tomczyk@dehert.com; david.rosenthal@dechert.com

Attention: Anna Tomczyk; David Rosenthal

 

If to the Investor:

 

Lincoln Park Capital Fund, LLC

440 North Wells, Suite 410

Chicago, IL 60654

 

With a copy to (which shall
not constitute notice or service of process):

 

Katten Muchin Rosenman LLP

525 W. Monroe St.

Chicago, IL 60661

	Telephone:	(312) 902-5493
	E-mail:	mark.wood@katten.com
	Attention:	Mark D. Wood, Esq.

 

    

     

    

 

If to the Transfer Agent:

 

Computershare Trust Company, National Association

150 Royall Street

Canton, MA 02021

	Email:	ginger.lawrence@computershare.com
	Attention:	Ginger Lawrence

 

or at such other address, email address and/or
facsimile number and/or to the attention of such other Person as the recipient party has specified by written notice given to each other
party three (3) Business Days prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient of
such notice, consent or other communication, (B) mechanically or electronically generated by the sender’s facsimile machine or email
account containing the time, date, and recipient facsimile number or email address, as applicable, or (C) provided by a nationally recognized
overnight delivery service, shall be rebuttable evidence of personal service, receipt by facsimile or email or deposit with a nationally
recognized overnight delivery service in accordance with clause (i), (ii) or (iii) above, respectively.

 

(b)           No Waiver No failure or delay in the exercise of any power,
right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege
preclude other or further exercise thereof or of any other right, power or privilege.

 

(c)           Governing Law. All questions concerning the construction,
validity, enforcement and interpretation of this Agreement shall be governed by the internal laws of the State of New York, without giving
effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would
cause the application of the laws of any jurisdictions other than the State of New York. Each party hereby irrevocably submits to
the exclusive jurisdiction of and venue in the U.S. District Court for the Southern District of New York or, if that court does not have
subject matter jurisdiction, in any state court located in the City and County of New York for the adjudication of any dispute hereunder
or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not
to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such
suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each
party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding
by mailing a copy thereof to such party at the address for such notices to it under this Agreement and agrees that such service shall
constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way
any right to serve process in any manner permitted by law. If any provision of this Agreement shall be invalid or unenforceable in
any jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement
in that jurisdiction or the validity or enforceability of any provision of this Agreement in any other jurisdiction. EACH PARTY
HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER
OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

    

     

    

 

(d)           Integration. This Agreement, the Purchase Agreement
and the other Transaction Documents constitute the entire understanding among the parties hereto with respect to the subject matter hereof
and thereof. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein and
therein. This Agreement, the Purchase Agreement and the other Transaction Documents supersede all other prior oral or written
agreements between the Investor, the Company, their affiliates and persons acting on their behalf with respect to the subject matter hereof
and thereof.

 

(e)           No Third Party Benefits. Subject to the requirements of
Section 8, this Agreement shall inure to the benefit of and be binding upon the permitted successors and assigns of each of the
parties hereto.

 

(f)            Headings. The headings in this Agreement are for convenience
of reference and shall not form part of, or affect the interpretation of, this Agreement.

 

(g)           Counterparts. This Agreement may be executed in two or more
identical counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have
been signed by each party and delivered to the other party. Signatures transmitted by Adobe Sign, DocuSign, RightSignature, electronic
mail, or other digital or electronic means will be treated as original signatures for all purposes hereunder, each of which shall be of
the same legal effect, validity, and enforceability as a manually executed signature.

 

(h)           Further Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things,
and shall execute and deliver all such other agreements, certificates, instruments and documents as the other party may reasonably request
in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

(i)            No Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express
their mutual intent and no rules of strict construction will be applied against any party. For the purposes of this Agreement, except
to the extent that the context otherwise requires: (i) when a reference is made in this Agreement to an Article, Section, Exhibit or Schedule,
such reference is to an Article or Section of, or an Exhibit or Schedule to, this Agreement unless otherwise indicated; (ii) headings
for this Agreement are for reference purposes only and do not affect in any way the meaning or interpretation of this Agreement; (iii)
whenever the words “include,” “includes” or “including” (or similar terms) are used in this Agreement,
they are deemed to be followed by the words “without limitation”; (iv) the words “hereof,” “herein”
and “hereunder” and words of similar import, when used in this Agreement, refer to this Agreement as a whole and not to any
particular provision of this Agreement; (v) the definitions contained in this Agreement are applicable to the singular as well as the
plural forms of such terms; (vi) references to a Person are also to its permitted successors and assigns; and (vii) the use of “or”
is not intended to be exclusive unless expressly indicated otherwise.

 

(j)            No Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted
successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

 

[Signature Page Follows]

 

    

     

    

 

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

 

 

	 	THE COMPANY:
	 	 
	 	PAXMEDICA, INC.
	 	 
	 	 
	 	By:	 /s/ Stephen D. Sheldon
	 	Name: Stephen D. Sheldon
	 	Title: Chief Financial Officer
	 	 
	 	 
	 	THE INVESTOR:
	 	 
	 	LINCOLN PARK CAPITAL FUND, LLC
	 	BY: LINCOLN PARK CAPITAL, LLC
	 	BY: ROCKLEDGE CAPITAL CORPORATION
	 	 
	 	 
	 	By:	/s/ Joshua Scheinfeld
	 	Name: Joshua Scheinfeld
	 	Title: PresidentExhibit 10.3

 

PAXMEDICA, INC.

 

EMPLOYMENT AGREEMENT

 

EMPLOYMENT AGREEMENT
(this “Agreement”) dated as of November 19, 2022, between Paxmedica, Inc., a Delaware corporation (the “Company”),
and Stephen D. Sheldon (the “Executive”).

 

W I T N E S S E T H

 

WHEREAS, the Company
desires to employ the Executive as the Chief Financial Officer of the Company; and

 

WHEREAS, the Company
and the Executive desire to enter into this Agreement as to the terms of the Executive’s employment with the Company.

 

NOW, THEREFORE, in
consideration of the foregoing, of the mutual promises contained herein and of other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

1.             POSITION AND DUTIES.

 

(a)            During the Employment Term (as defined in Section 2 hereof), the Executive shall serve as the Chief Financial Officer
of the Company. In this capacity, the Executive shall have the duties, authorities and responsibilities as are required by the Executive’s
position, and such other duties, authorities and responsibilities as may reasonably be assigned to the Executive that are not inconsistent
with the Executive’s position as Chief Financial Officer of the Company. The Executive’s principal place of employment with
the Company shall be in New York; provided that the Executive may perform the Executive’s duties and responsibilities to
the Company as required hereunder remotely from the Executive’s residence in Massachusetts; provided further that the Executive
understands and agrees that the Executive may be required to travel from time to time for business purposes. The Executive shall report
directly to the Chief Executive Officer of the Company.

 

(b)           During the Employment Term, the Executive shall devote all of the Executive’s business time, energy, business judgment,
knowledge and skill and the Executive’s best efforts to the performance of the Executive’s duties with the Company, provided
that the foregoing shall not prevent the Executive from (i) serving on the boards of directors of non-profit organizations and, with the
prior written approval of the Board of Directors of the Company (the “Board”), other for profit companies, (ii) participating
in charitable, civic, educational, professional, community or industry affairs and (iii) managing the Executive’s passive personal
investments so long as such activities in the aggregate do not interfere or conflict with the Executive’s duties hereunder or create
a potential business or fiduciary conflict.

 

2.             EMPLOYMENT TERM. The Company agrees to employ the Executive pursuant to the terms of this Agreement, and the
Executive agrees to be so employed, for a term of two (2) years (the “Initial Term”) commencing on November 1, 2022
(the “Effective Date”). On each anniversary of the Effective Date following the Initial Term, the term of this Agreement
shall be automatically extended for successive one-year periods, provided, however, that either party hereto may elect not
to extend this Agreement by giving written notice to the other party at least thirty (30) days prior to any such anniversary date. Notwithstanding
the foregoing, the Executive’s employment hereunder may be earlier terminated in accordance with Section 7 hereof, subject
to Section 8 hereof. The period of time between the Effective Date and the termination of the Executive’s employment hereunder
shall be referred to herein as the “Employment Term.”

 

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3.             BASE SALARY. During the Employment Term, the Company agrees to pay the Executive a base salary at an annual rate
of three hundred twenty-five thousand dollars ($325,000), payable in accordance with the regular payroll practices of the Company, but
not less frequently than monthly. The Executive’s Base Salary shall be subject to annual review by the Board (or a committee thereof),
and may be adjusted from time to time by the Board. The base salary as determined herein and adjusted from time to time shall constitute
 “Base Salary” for purposes of this Agreement.

 

4.             ANNUAL BONUS. During the Employment Term, the Executive shall be eligible to receive an annual discretionary
incentive payment under the Company’s annual bonus plan as may be in effect from time to time (the “Annual Bonus”)
based on a target bonus opportunity of thirty-five percent (35%) of the Executive’s Base Salary (the “Target Bonus”),
upon the attainment of one or more pre-established performance goals established by the Board or the Company’s Compensation Committee
(the “Committee”) in its sole discretion. Except as otherwise expressly stated herein, payment of any Annual Bonus
shall be subject to the Executive’s continuous employment with the Company through the date of any such payment.

 

5.             EQUITY AWARDS. During the Employment Term, the Executive shall be eligible to participate in the PaxMedica, Inc.
Amended and Restated 2020 Omnibus Equity Incentive Plan (the “Plan”). As soon as reasonably practicable following the
Effective Date, the Board will recommend to the Compensation Committee thereof that the Executive receive a grant of 135,000 restricted
stock units of the Company under the Plan having a fair market value as of the date of grant (as determined under the Plan). Such grant
shall be made pursuant to the applicable terms and conditions of the Plan and the applicable award agreement by and between the Company
and the Executive granting such restricted stock units.

 

6.             EMPLOYEE BENEFITS.

 

(a)            BENEFIT PLANS. During the Employment Term, the Executive shall be entitled to participate in any employee benefit
plan that the Company has adopted or may adopt, maintain or contribute to for the benefit of its employees generally, subject to satisfying
the applicable eligibility requirements, except to the extent such plans are duplicative of the benefits otherwise provided hereunder.
The Executive’s participation will be subject to the terms of the applicable plan documents and generally applicable Company policies.
Notwithstanding the foregoing, the Company may modify or terminate any employee benefit plan at any time.

 

(b)            PAID TIME OFF. During the Employment Term, the Executive shall be entitled to four (4 weeks of paid time off per
calendar year (as prorated for partial years) in accordance with the Company’s policy on accrual and use applicable to employees
as in effect from time to time.

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(c)           BUSINESS EXPENSES. Upon presentation of reasonable substantiation and documentation as the Company may specify from
time to time, the Executive shall be reimbursed in accordance with the Company’s expense reimbursement policy, for all reasonable
out-of-pocket business expenses incurred and paid by the Executive during the Employment Term and in connection with the performance of
the Executive’s duties hereunder.

 

7.            TERMINATION. The Executive’s employment and the Employment Term shall terminate on the first of the following
to occur:

 

(a)           DISABILITY. Upon ten (10) days’ prior written notice by the Company to the Executive of termination due to
Disability. For purposes of this Agreement, “Disability” shall be defined as the inability of the Executive to have
performed the Executive’s material duties hereunder due to a physical or mental injury, infirmity or incapacity for one hundred
eighty (180) days (including weekends and holidays) in any 365-day period as determined by the Board in its reasonable discretion. The
Executive shall cooperate in all respects with the Company if a question arises as to whether the Executive has become disabled (including,
without limitation, submitting to reasonable examinations by one or more medical doctors and other health care specialists selected by
the Company and authorizing such medical doctors and other health care specialists to discuss the Executive’s condition with the
Company).

 

(b)           DEATH. Automatically upon the date of death of the Executive.

 

(c)           CAUSE. Immediately upon written notice by the Company to the Executive of a termination for Cause. “Cause”
shall mean:

 

(i)            the Executive’s willful misconduct or gross negligence in the performance of the Executive’s duties to the Company;

 

(ii)           the Executive’s failure to perform the Executive’s duties to the Company or to follow the lawful directives
of the Board or any executive to which the Executive reports (other than as a result of death or Disability);

 

(iii)          commission
of, indictment for, conviction of, or pleading of guilty or nolo contendere to, a felony or any crime involving moral turpitude;

 

(iv)          the Executive’s failure to cooperate in any audit or investigation of the business or financial practices of the Company
or any of its subsidiaries;

 

(v)           the Executive’s unlawful use (including being under the influence) or possession of illegal drugs on the Company’s
or any of its affiliates’ premises or while performing the Executive’s duties and responsibilities hereunder, regardless of
location;

 

(vi)          the Executive’s performance of any material act of theft, embezzlement, fraud, malfeasance, dishonesty or misappropriation
of the Company’s property; or

 

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(vii)         breach of this Agreement or any other agreement with the Company or its affiliates, or a violation of the Company’s
code of conduct or other written policy.

 

(d)           WITHOUT CAUSE. Immediately upon written notice by the Company to the Executive of an involuntary termination without
Cause (other than for death or Disability).

 

(e)           GOOD REASON. Upon written notice by the Executive to the Company of a termination for Good Reason. “Good
Reason” shall mean the occurrence of any of the following events, without the express written consent of the Executive, unless
such events are fully corrected in all material respects by the Company within thirty (30) days following written notification by the
Executive to the Company of the occurrence of one of the reasons set forth below:

 

(i)            material diminution in the Executive’s Base Salary or Target Bonus (which, for the avoidance of doubt, shall not include
any reduction in or nonpayment of Annual Bonus resulting from a failure to achieve the applicable target performance matrix or “across
the board” reductions affecting executive level employees of Company, or any of its affiliates); or

 

(ii)           material diminution in the Executive’s duties, authorities or responsibilities (other than temporarily while physically
or mentally incapacitated or as required by applicable law).

 

The Executive shall provide
the Company with a written notice detailing the specific circumstances alleged to constitute Good Reason within sixty (60) days after
the first occurrence of such circumstances, and actually terminate employment within thirty (30) days following the expiration of the
Company’s thirty (30)-day cure period described above. Otherwise, any claim of such circumstances as “Good Reason” shall
be deemed irrevocably waived by the Executive.

 

(f)            WITHOUT GOOD REASON. Upon thirty (30) days’ prior written notice by the Executive to the Company of the Executive’s
voluntary termination of employment without Good Reason (which the Company may, in its sole discretion, make effective earlier than any
notice date).

 

(g)           EXPIRATION OF EMPLOYMENT TERM; NON-EXTENSION OF AGREEMENT. Upon the expiration of the Employment Term due to a non-extension
of the Agreement by the Company or the Executive pursuant to the provisions of Section 2 hereof.

 

8.             CONSEQUENCES OF TERMINATION.

 

(a)           DEATH. In the event that the Executive’s employment and the Employment Term ends on account of the Executive’s
death, the Executive or the Executive’s estate, as the case may be, shall be entitled to the following (with the amounts due under
Sections 8(a)(i) through 8(a)(iv) hereof to be paid within sixty (60) days following termination of employment, or such
earlier date as may be required by applicable law):

 

(i)            any unpaid Base Salary through the date of termination;

 

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(ii)           any Annual Bonus earned but unpaid with respect to the fiscal year ending on or preceding the date of termination;

 

(iii)          reimbursement for any unreimbursed business expenses incurred through the date of termination;

 

(iv)          any accrued but unused vacation time in accordance with Company policy; and

 

(v)           all other accrued and vested payments, benefits or fringe benefits to which the Executive shall be entitled under the terms
of any applicable compensation arrangement or benefit, equity or fringe benefit plan or program or grant or this Agreement (collectively,
Sections 8(a)(i) through 8(a)(v) hereof shall be hereafter referred to as the “Accrued Benefits”).

 

(b)           DISABILITY. In the event that the Executive’s employment and/or Employment Term ends on account of the Executive’s
Disability, the Company shall pay or provide the Executive with the Accrued Benefits.

 

(c)           TERMINATION FOR CAUSE OR WITHOUT GOOD REASON OR AS A RESULT OF EMPLOYEE NON-EXTENSION OF THIS AGREEMENT. If the Executive’s
employment is terminated (x) by the Company for Cause, (y) by the Executive without Good Reason, or (z) as a result of the Executive’s
non-extension of the Employment Term as provided in Section 2 hereof, the Company shall pay to the Executive the Accrued Benefits
other than the benefit described in Section 8(a)(ii) hereof.

 

(d)           TERMINATION WITHOUT CAUSE OR FOR GOOD REASON OR AS A RESULT OF COMPANY NON-EXTENSION OF THIS AGREEMENT. If the Executive’s
employment by the Company is terminated (x) by the Company other than for Cause, (y) by the Executive for Good Reason, or (z) as a result
of the Company’s non-extension of the Employment Term as provided in Section 2 hereof, the Company shall pay or provide the
Executive with the following, subject to the provisions of Section 21 hereof:

 

(i)            the Accrued Benefits;

 

(ii)           subject to the Executive’s continued compliance with the obligations in Sections 9, 10 and 11
hereof, an amount equal to the Executive’s monthly Base Salary rate (but not as an employee), paid monthly for a period of six (6)
months following such termination; provided that to the extent that the payment of any amount constitutes “nonqualified deferred
compensation” for purposes of Code Section 409A (as defined in Section 22 hereof), any such payment scheduled to occur during
the first sixty (60) days following the termination of employment shall not be paid until the first regularly scheduled pay period following
the sixtieth (60th) day following such termination and shall include payment of any amount that was otherwise scheduled to
be paid prior thereto;

 

(iii)          subject to (A) the Executive’s timely election of continuation coverage under the Consolidated Omnibus Budget Reconciliation
Act of 1985, as amended (“COBRA”), (B) the Executive’s continued copayment of premiums at the same level and
cost to the Executive as if the Executive were an employee of the Company (excluding, for purposes of calculating cost, an employee’s
ability to pay premiums with pre-tax dollars), and (C) the Executive’s continued compliance with the obligations in Sections
9, 10 and 11 hereof, continued participation in the Company’s group health plan (to the extent permitted under
applicable law and the terms of such plan) which covers the Executive (and the Executive’s eligible dependents) for a period of
six (6) months, provided that the Executive is eligible and remains eligible for COBRA coverage; and provided, further,
that in the event that the Executive obtains other employment that offers group health benefits, such continuation of coverage by the
Company under this Section 8(d)(iv) shall immediately cease. Notwithstanding the foregoing, the Company shall not be obligated
to provide the continuation coverage contemplated by this Section 8(d)(iii) if it would result in the imposition of excise taxes
on the Company for failure to comply with the nondiscrimination requirements of the Patient Protection and Affordable Care Act of 2010,
as amended, and the Health Care and Education Reconciliation Act of 2010, as amended (to the extent applicable) and, in such case, the
Company shall provide the Executive with a monthly lump sum cash payment equal to the monthly cost of such coverage during such six (6)-month
period.

 

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Payments and benefits provided
in this Section 8(d) shall be in lieu of any termination or severance payments or benefits for which the Executive may be eligible
under any of the plans, policies or programs of the Company or under the Worker Adjustment Retraining Notification Act of 1988 or any
similar state statute or regulation.

 

(e)            CODE SECTION 280G. Notwithstanding any other provision of this Agreement to the contrary, in the event that any payment
that is either received by the Executive or paid by the Company on the Executive’s behalf or any property, or any other benefit
provided to the Executive under this Agreement or under any other plan, arrangement or agreement with the Company or any other person
whose payments or benefits are treated as contingent on a change of ownership or control of the Company (or in the ownership of a substantial
portion of the assets of the Company) or any person affiliated with the Company or such person (but only if such payment or other benefit
is in connection with the Executive’s employment by the Company) (collectively the “Company Payments”), will
be subject to the tax imposed by Section 4999 of the Code (and any similar tax that may hereafter be imposed by any taxing authority),
then the Executive will be entitled to receive either (i) the full amount of the Company Payments, or (ii) a portion of the Company Payments
having a value equal to $1 less than three (3) times the Executive’s “base amount” (as such term is defined in Section
280G(b)(3)(A) of the Code), whichever of clauses (i) and (ii), after taking into account applicable federal, state, and local income taxes
and the excise tax imposed by Section 4999 of the Code, results in the receipt by the Executive on an after-tax basis, of the greatest
portion of the Company Payments. Any determination required under this Section 8(e) shall be made in writing by the independent
public accountant of the Company (the “Accountants”), whose determination shall be conclusive and binding for all purposes
upon the Company and the Executive. For purposes of making any calculation required by this Section 8(e), the Accountants may make
reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good-faith interpretations concerning
the application of Sections 280G and 4999 of the Code. If there is a reduction of the Company Payments pursuant to this Section 8(e),
such reduction shall occur in the following order: (A) any cash severance payable by reference to the Executive’s Base Salary or
Annual Bonus, (B) any other cash amount payable to the Executive, (C) any employee benefit valued as a “parachute payment,”
and (D) acceleration of vesting of any outstanding equity award.

 

    6

     

    

 

(f)            OTHER OBLIGATIONS. Upon any termination of the Executive’s employment with the Company, the Executive shall
promptly resign from any position as an officer, director or fiduciary of any Company-related entity.

 

(g)           EXCLUSIVE REMEDY. The amounts payable to the Executive following termination of employment and the Employment Term
hereunder pursuant to Sections 7 and 8 hereof shall be in full and complete satisfaction of the Executive’s rights
under this Agreement and any other claims that the Executive may have in respect of the Executive’s employment with the Company
or any of its affiliates, and the Executive acknowledges that such amounts are fair and reasonable, and are the Executive’s sole
and exclusive remedy, in lieu of all other remedies at law or in equity, with respect to the termination of the Executive’s employment
hereunder or any breach of this Agreement.

 

9.             RELEASE; NO MITIGATION. Any and all amounts payable and benefits or additional rights provided pursuant to this
Agreement beyond the Accrued Benefits (other than amounts described in Section 8(a)(ii) hereof) shall only be payable if the Executive
delivers to the Company and does not revoke a general release of claims in favor of the Company in substantially the form attached on
Exhibit A hereto. Such release shall be executed and delivered (and no longer subject to revocation, if applicable) within sixty
(60) days following termination. In no event shall the Executive be obligated to seek other employment or take any other action by way
of mitigation of the amounts payable to the Executive under any of the provisions of this Agreement, nor shall the amount of any payment
hereunder be reduced by any compensation earned by the Executive as a result of employment by a subsequent employer, except as provided
in Section 8(d)(iii) hereof.

 

10.           RESTRICTIVE COVENANTS.

 

(a)            CONFIDENTIALITY. During the course of the Executive’s
employment with the Company, the Executive will have access to Confidential Information. For purposes of this Agreement, “Confidential
Information” means all data, information, ideas, concepts, discoveries, trade secrets, inventions (whether or not patentable
or reduced to practice), innovations, improvements, know-how, developments, techniques, methods, processes, treatments, drawings, sketches,
specifications, designs, plans, patterns, models, plans and strategies, and all other confidential or proprietary information or trade
secrets in any form or medium (whether merely remembered or embodied in a tangible or intangible form or medium) whether now or hereafter
existing, relating to or arising from the past, current or potential business, activities and/or operations of the Company or any of its
affiliates, including, without limitation, any such information relating to or concerning finances, sales, marketing, advertising, transition,
promotions, pricing, personnel, customers, suppliers, vendors, raw partners and/or competitors. The Executive agrees that the Executive
shall not, directly or indirectly, use, make available, sell, disclose or otherwise communicate to any person, other than in the course
of the Executive’s assigned duties and for the benefit of the Company, either during the period of the Executive’s employment
or at any time thereafter, any Confidential Information or other confidential or proprietary information received from third parties subject
to a duty on the Company’s and its subsidiaries’ and affiliates’ part to maintain the confidentiality of such information,
and to use such information only for certain limited purposes, in each case, which shall have been obtained by the Executive during the
Executive’s employment by the Company (or any predecessor). The foregoing shall not apply to information that (i) was known to the
public prior to its disclosure to the Executive; (ii) becomes generally known to the public subsequent to disclosure to the Executive
through no wrongful act of the Executive or any representative of the Executive; or (iii) the Executive is required to disclose by applicable
law, regulation or legal process (provided that the Executive provides the Company with prior notice of the contemplated disclosure and
cooperates with the Company at its expense in seeking a protective order or other appropriate protection of such information).

 

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(b)           NONCOMPETITION. The Executive acknowledges that (i) the Executive performs services of a unique nature for the Company
that are irreplaceable, and that the Executive’s performance of such services to a competing business will result in irreparable
harm to the Company, (ii) the Executive has had and will continue to have access to Confidential Information which, if disclosed, would
unfairly and inappropriately assist in competition against the Company or any of its affiliates, (iii) in the course of the Executive’s
employment by a competitor, the Executive would inevitably use or disclose such Confidential Information, (iv) the Company and its affiliates
have substantial relationships with their customers and the Executive has had and will continue to have access to these customers, (v)
the Executive has received and will receive specialized training from the Company and its affiliates, and (vi) the Executive has generated
and will continue to generate goodwill for the Company and its affiliates in the course of the Executive’s employment. Accordingly,
during the Executive’s employment hereunder and for a period of one (1) year thereafter, the Executive agrees that the Executive
will not, directly or indirectly, own, manage, operate, control, be employed by (whether as an employee, consultant, independent contractor
or otherwise, and whether or not for compensation) or render services to any person, firm, corporation or other entity, in whatever form,
engaged in competition with the Company or any of its subsidiaries or affiliates or in any other material business in which the Company
or any of its subsidiaries or affiliates is engaged on the date of termination or in which they have planned, on or prior to such date,
to be engaged in on or after such date, in any locale of any country in which the Company conducts business. Notwithstanding the foregoing,
nothing herein shall prohibit the Executive from being a passive owner of not more than one percent (1%) of the equity securities of a
publicly traded corporation engaged in a business that is in competition with the Company or any of its subsidiaries or affiliates, so
long as the Executive has no active participation in the business of such corporation.

 

(c)           NONSOLICITATION; NONINTERFERENCE. (i) During the Executive’s employment with the Company and for a period of
one (1) year thereafter, the Executive agrees that the Executive shall not, except in the furtherance of the Executive’s duties
hereunder, directly or indirectly, individually or on behalf of any other person, firm, corporation or other entity, solicit, aid or induce
any customer of the Company or any of its subsidiaries or affiliates to purchase goods or services then sold by the Company or any of
its subsidiaries or affiliates from another person, firm, corporation or other entity or assist or aid any other persons or entity in
identifying or soliciting any such customer.

 

(ii)           During the Executive’s employment with the Company and for a period of two (2) years thereafter, the Executive agrees
that the Executive shall not, except in the furtherance of the Executive’s duties hereunder, directly or indirectly, individually
or on behalf of any other person, firm, corporation or other entity, (A) solicit, aid or induce any employee, representative or agent
of the Company or any of its subsidiaries or affiliates to leave such employment or retention or to accept employment with or render services
to or with any other person, firm, corporation or other entity unaffiliated with the Company or hire or retain any such employee, representative
or agent, or take any action to materially assist or aid any other person, firm, corporation or other entity in identifying, hiring or
soliciting any such employee, representative or agent, or (B) interfere, or aid or induce any other person or entity in interfering, with
the relationship between the Company or any of its subsidiaries or affiliates and any of their respective vendors, joint venturers or
licensors. An employee, representative or agent shall be deemed covered by this Section 10(c)(ii) while so employed or retained
and for a period of six (6) months thereafter.

 

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(iii)           Notwithstanding the foregoing, the provisions of this Section 10(c) shall not be violated by (A) general advertising
or solicitation not specifically targeted at Company-related persons or entities or (B) the Executive serving as a reference, upon request,
for any employee of the Company or any of its subsidiaries or affiliates so long as such reference is not for an entity that is employing
or retaining the Executive.

 

(d)           NONDISPARAGEMENT. The Executive agrees not to make negative comments or otherwise disparage the Company or its officers,
directors, employees, shareholders, agents or products other than in the good faith performance of the Executive’s duties to the
Company while the Executive is employed by the Company. The foregoing shall not be violated by truthful statements in response to legal
process, required governmental testimony or filings, or administrative or arbitral proceedings (including, without limitation, depositions
in connection with such proceedings).

 

(e)           INVENTIONS. (i) The Executive acknowledges and agrees that all ideas, methods, inventions, discoveries, improvements,
work products, developments, software, know-how, processes, techniques, methods, works of authorship and other work product, whether patentable
or unpatentable, (A) that are reduced to practice, created, invented, designed, developed, contributed to, or improved with the use of
any Company resources and/or within the scope of the Executive’s work with the Company or that relate to the business, operations
or actual or demonstrably anticipated research or development of the Company, and that are made or conceived by the Executive, solely
or jointly with others, during the Employment Term, or (B) suggested by any work that the Executive performs in connection with the Company,
either while performing the Executive’s duties with the Company or on the Executive’s own time, but only insofar as the Inventions
are related to the Executive’s work as an employee or other service provider to the Company, shall belong exclusively to the Company
(or its designee), whether or not patent or other applications for intellectual property protection are filed thereon (the “Inventions”).
The Executive will keep full and complete written records (the “Records”), in the manner prescribed by the Company,
of all Inventions, and will promptly disclose all Inventions completely and in writing to the Company. The Records shall be the sole and
exclusive property of the Company, and the Executive will surrender them upon the termination of the Employment Term, or upon the Company’s
request. The Executive irrevocably conveys, transfers and assigns to the Company the Inventions and all patents or other intellectual
property rights that may issue thereon in any and all countries, whether during or subsequent to the Employment Term, together with the
right to file, in the Executive’s name or in the name of the Company (or its designee), applications for patents and equivalent
rights (the “Applications”). The Executive will, at any time during and subsequent to the Employment Term, make such
applications, sign such papers, take all rightful oaths, and perform all other acts as may be requested from time to time by the Company
to perfect, record, enforce, protect, patent or register the Company’s rights in the Inventions, all without additional compensation
to the Executive from the Company. The Executive will also execute assignments to the Company (or its designee) of the Applications, and
give the Company and its attorneys all reasonable assistance (including the giving of testimony) to obtain the Inventions for the Company’s
benefit, all without additional compensation to the Executive from the Company, but entirely at the Company’s expense.

 

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(ii)           In addition, the Inventions will be deemed Work for Hire, as such term is defined under the copyright laws of the United
States, on behalf of the Company and the Executive agrees that the Company will be the sole owner of the Inventions, and all underlying
rights therein, in all media now known or hereinafter devised, throughout the universe and in perpetuity without any further obligations
to the Executive. If the Inventions, or any portion thereof, are deemed not to be Work for Hire, or the rights in such Inventions do not
otherwise automatically vest in the Company, the Executive hereby irrevocably conveys, transfers and assigns to the Company, all rights,
in all media now known or hereinafter devised, throughout the universe and in perpetuity, in and to the Inventions, including, without
limitation, all of the Executive’s right, title and interest in the copyrights (and all renewals, revivals and extensions thereof)
to the Inventions, including, without limitation, all rights of any kind or any nature now or hereafter recognized, including, without
limitation, the unrestricted right to make modifications, adaptations and revisions to the Inventions, to exploit and allow others to
exploit the Inventions and all rights to sue at law or in equity for any infringement, or other unauthorized use or conduct in derogation
of the Inventions, known or unknown, prior to the date hereof, including, without limitation, the right to receive all proceeds and damages
therefrom. In addition, the Executive hereby waives any so-called “moral rights” with respect to the Inventions. The Executive
hereby waives any and all currently existing and future monetary rights in and to the Inventions and all patents and other registrations
for intellectual property that may issue thereon, including, without limitation, any rights that would otherwise accrue to the Executive’s
benefit by virtue of the Executive being an employee of or other service provider to the Company.

 

(f)            RETURN OF COMPANY PROPERTY. On the date of the Executive’s termination of employment with the Company for any
reason (or at any time prior thereto at the Company’s request), the Executive shall return all property belonging to the Company
or its affiliates (including, but not limited to, any Company-provided laptops, computers, cell phones, wireless electronic mail devices
or other equipment, or documents and property belonging to the Company). The Executive may retain the Executive’s rolodex and similar
address books provided that such items only include contact information.

 

(g)           REASONABLENESS OF COVENANTS. In signing this Agreement, the Executive gives the Company assurance that the Executive
has carefully read and considered all of the terms and conditions of this Agreement, including the restraints imposed under this Section
10 hereof. The Executive agrees that these restraints are necessary for the reasonable and proper protection of the Company and its
affiliates and their Confidential Information and that each and every one of the restraints is reasonable in respect to subject matter,
length of time and geographic area, and that these restraints, individually or in the aggregate, will not prevent the Executive from obtaining
other suitable employment during the period in which the Executive is bound by the restraints. The Executive acknowledges that each of
these covenants has a unique, very substantial and immeasurable value to the Company and its affiliates and that the Executive has sufficient
assets and skills to provide a livelihood while such covenants remain in force. The Executive further covenants that the Executive will
not challenge the reasonableness or enforceability of any of the covenants set forth in this Section 10, and that the Executive
will reimburse the Company and its affiliates for all costs (including reasonable attorneys’ fees) incurred in connection with any
action to enforce any of the provisions of this Section 10 if either the Company and/or its affiliates prevails on any material
issue involved in such dispute or if the Executive challenges the reasonableness or enforceability of any of the provisions of this Section
10. It is also agreed that each of the Company’s affiliates will have the right to enforce all of the Executive’s obligations
to that affiliate under this Agreement, including without limitation pursuant to this Section 10. The Executive acknowledges that
the Executive has the right to consult with counsel prior to signing this Agreement and that the Executive has had an opportunity to do
so. The Executive further acknowledges that the Executive has been given at least ten (10) business days to consider whether to sign this
Agreement.

 

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(h)           REFORMATION. If it is determined by a court of competent jurisdiction in any state that any restriction in this Section
10 is excessive in duration or scope or is unreasonable or unenforceable under applicable law, it is the intention of the parties
that such restriction may be modified or amended by the court to render it enforceable to the maximum extent permitted by the laws of
that state.

 

(i)            TOLLING. In the event of any violation of the provisions of this Section 10, the Executive acknowledges and
agrees that the post-termination restrictions contained in this Section 10 shall be extended by a period of time equal to the period
of such violation, it being the intention of the parties hereto that the running of the applicable post-termination restriction period
shall be tolled during any period of such violation.

 

(j)            SURVIVAL OF PROVISIONS. The obligations contained in Sections 10 and 11 hereof shall survive the termination
or expiration of the Employment Term and the Executive’s employment with the Company and shall be fully enforceable thereafter.

 

11.          COOPERATION. Upon the receipt of reasonable notice from the Company (including outside counsel), the Executive
agrees that while employed by the Company and thereafter, the Executive will respond and provide information with regard to matters in
which the Executive has knowledge as a result of the Executive’s employment with the Company, and will provide reasonable assistance
to the Company, its affiliates and their respective representatives in defense of any claims that may be made against the Company or its
affiliates, and will assist the Company and its affiliates in the prosecution of any claims that may be made by the Company or its affiliates,
to the extent that such claims may relate to the period of the Executive’s employment with the Company (collectively, the “Claims”).
The Executive agrees to promptly inform the Company if the Executive becomes aware of any lawsuits involving Claims that may be filed
or threatened against the Company or its affiliates. The Executive also agrees to promptly inform the Company (to the extent that the
Executive is legally permitted to do so) if the Executive is asked to assist in any investigation of the Company or its affiliates (or
their actions) or another party attempts to obtain information or documents from the Executive (other than in connection with any litigation
or other proceeding in which the Executive is a party-in-opposition) with respect to matters the Executive believes in good faith to relate
to any investigation of the Company or its affiliates, in each case, regardless of whether a lawsuit or other proceeding has then been
filed against the Company or its affiliates with respect to such investigation, and shall not do so unless legally required. During the
pendency of any litigation or other proceeding involving Claims, the Executive shall not communicate with anyone (other than the Executive’s
attorneys and tax and/or financial advisors and except to the extent that the Executive determines in good faith is necessary in connection
with the performance of the Executive’s duties hereunder) with respect to the facts or subject matter of any pending or potential
litigation or regulatory or administrative proceeding involving the Company or any of its affiliates without giving prior written notice
to the Company or the Company’s counsel. Upon presentation of appropriate documentation, the Company shall pay or reimburse the
Executive for all reasonable out-of-pocket travel, duplicating or telephonic expenses incurred by the Executive in complying with this
Section 11.

 

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12.          EQUITABLE RELIEF AND OTHER REMEDIES. The Executive acknowledges and agrees that the Company’s remedies
at law for a breach or threatened breach of any of the provisions of Section 10 or Section 11 hereof would be inadequate
and, in recognition of this fact, the Executive agrees that, in the event of such a breach or threatened breach, in addition to any remedies
at law, the Company, without posting any bond or other security, shall be entitled to obtain equitable relief in the form of specific
performance, a temporary restraining order, a temporary or permanent injunction or any other equitable remedy which may then be available,
without the necessity of showing actual monetary damages. In the event of a violation by the Executive of Section 10 or Section
11 hereof, any severance being paid to the Executive pursuant to this Agreement or otherwise shall immediately cease, and any severance
previously paid to the Executive shall be immediately repaid to the Company.

 

13.          NO ASSIGNMENTS. This Agreement is personal to each of the parties hereto. Except as provided in this Section
13 hereof, no party may assign or delegate any rights or obligations hereunder without first obtaining the written consent of the
other party hereto. The Company may assign this Agreement to any successor to all or substantially all of the business and/or assets of
the Company, provided that the Company shall require such successor to expressly assume and agree to perform this Agreement in
the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. As used
in this Agreement, “Company” shall mean the Company and any successor to its business and/or assets, which assumes
and agrees to perform the duties and obligations of the Company under this Agreement by operation of law or otherwise.

 

14.          NOTICE. For purposes of this Agreement, notices and all other
communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given (a) on the date of delivery,
if delivered by hand, (b) on the date of transmission, if delivered by confirmed facsimile or electronic mail, (c) on the first business
day following the date of deposit, if delivered by guaranteed overnight delivery service, or (d) on the fourth business day following
the date delivered or mailed by United States registered or certified mail, return receipt requested, postage prepaid, addressed as follows:

 

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If to the Executive:

 

At the address (or to the facsimile number) shown
 in the books and records of the Company.

 

If to the Company:

 

PaxMedica, Inc.

303 South Broadway, Suite 125

Tarrytown,

NY 10591

Facsimile:

Attention: Howard Weisman

Email: hweisman@paxmedica.com 

 

or to such other address as either party may have
furnished to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt.

 

15.          SECTION HEADINGS; INCONSISTENCY. The section headings used in
this Agreement are included solely for convenience and shall not affect, or be used in connection with, the interpretation of this Agreement.
In the event of any inconsistency between the terms of this Agreement and any form, award, plan or policy of the Company, the terms of
this Agreement shall govern and control.

 

16.           SEVERABILITY. The provisions of this Agreement shall be deemed
severable. The invalidity or unenforceability of any provision of this Agreement in any jurisdiction shall not affect the validity, legality
or enforceability of the remainder of this Agreement in such jurisdiction or the validity, legality or enforceability of any provision
of this Agreement in any other jurisdiction, it being intended that all rights and obligations of the parties hereunder shall be enforceable
to the fullest extent permitted by applicable law.

 

17.           COUNTERPARTS. This Agreement may be executed in several counterparts,
each of which shall be deemed to be an original but all of which together will constitute one and the same instrument.

 

18.           GOVERNING LAW; JURISDICTION. This Agreement, the rights and obligations of the parties hereto, and any claims
or disputes relating thereto, shall be governed by and construed in accordance with the laws of the State of Delaware (without regard
to its choice of law provisions). Each of the parties agrees that any dispute between the parties shall be resolved only in the courts
of the State of New York or the United States District Court for the Southern District of New York and the appellate courts having jurisdiction
of appeals in such courts. In that context, and without limiting the generality of the foregoing, each of the parties hereto irrevocably
and unconditionally (a) submits in any proceeding relating to this Agreement or the Executive’s employment by the Company or any
affiliate, or for the recognition and enforcement of any judgment in respect thereof (a “Proceeding”), to the exclusive
jurisdiction of the courts of the State of New York, the court of the United States of America for the Southern District of New York,
and appellate courts having jurisdiction of appeals from any of the foregoing, and agrees that all claims in respect of any such Proceeding
shall be heard and determined in such New York State court or, to the extent permitted by law, in such federal court, (b) consents that
any such Proceeding may and shall be brought in such courts and waives any objection that the Executive or the Company may now or thereafter
have to the venue or jurisdiction of any such Proceeding in any such court or that such Proceeding was brought in an inconvenient court
and agrees not to plead or claim the same, (c) waives all right to trial by jury in any Proceeding (whether based on contract, tort or
otherwise) arising out of or relating to this Agreement or the Executive’s employment by the Company or any affiliate of the Company,
or the Executive’s or the Company’s performance under, or the enforcement of, this Agreement, (d) agrees that service of process
in any such Proceeding may be effected by mailing a copy of such process by registered or certified mail (or any substantially similar
form of mail), postage prepaid, to such party at the Executive’s or the Company’s address as provided in Section 14
hereof, and (e) agrees that nothing in this Agreement shall affect the right to effect service of process in any other manner permitted
by the laws of the State of New York.

 

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19.          MISCELLANEOUS. No provision of this Agreement may be modified, waived or discharged unless such waiver, modification
or discharge is agreed to in writing and signed by the Executive and such officer or director as may be designated by the Board. No waiver
by either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision of this
Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or
at any prior or subsequent time. This Agreement together with all exhibits hereto sets forth the entire agreement of the parties hereto
in respect of the subject matter contained herein and supersedes any and all prior agreements or understandings between the Executive
and the Company with respect to the subject matter hereof. No agreements or representations, oral or otherwise, express or implied, with
respect to the subject matter hereof have been made by either party which are not expressly set forth in this Agreement.

 

20.          REPRESENTATIONS. The Executive represents and warrants to the Company that (a) the Executive has the legal right
to enter into this Agreement and to perform all of the obligations on the Executive’s part to be performed hereunder in accordance
with its terms, and (b) the Executive is not a party to any agreement or understanding, written or oral, and is not subject to any restriction,
which, in either case, could prevent the Executive from entering into this Agreement or performing all of the Executive’s duties
and obligations hereunder. In addition, the Executive acknowledges that the Executive is aware of Section 304 (Forfeiture of Certain Bonuses
and Profits) of the Sarbanes-Oxley Act of 2002 and the right of the Company to be reimbursed for certain payments to the Executive in
compliance therewith.

 

21.          TAX MATTERS.

 

(a)           WITHHOLDING. The Company may withhold from any and all amounts
payable under this Agreement or otherwise such federal, state and local taxes as may be required to be withheld pursuant to any applicable
law or regulation.

 

(b)           SECTION 409A COMPLIANCE.

 

(i)            The intent of the parties is that payments and benefits under this Agreement comply with Internal Revenue Code Section 409A
and the regulations and guidance promulgated thereunder (collectively “Code Section 409A”) and, accordingly, to the
maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith. To the extent that any provision hereof is
modified in order to comply with Code Section 409A, such modification shall be made in good faith and shall, to the maximum extent reasonably
possible, maintain the original intent and economic benefit to the Executive and the Company of the applicable provision without violating
the provisions of Code Section 409A. In no event whatsoever shall the Company be liable for any additional tax, interest or penalty that
may be imposed on the Executive by Code Section 409A or damages for failing to comply with Code Section 409A.

 

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(ii)           A termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing
for the payment of any amounts or benefits that constitute “nonqualified deferred compensation” for purposes of Code Section
409A upon or following a termination of employment unless such termination is also a “separation from service” within the
meaning of Code Section 409A and, for purposes of any such provision of this Agreement, references to a “termination,” “termination
of employment” or like terms shall mean “separation from service.” Notwithstanding anything to the contrary in this
Agreement, if the Executive is deemed on the date of termination to be a “specified employee” within the meaning of that term
under Code Section 409A(a)(2)(B), then with regard to any payment or the provision of any benefit that is considered deferred compensation
under Code Section 409A payable on account of a “separation from service,” such payment or benefit shall not be made or provided
until the date which is the earlier of (A) the expiration of the six (6)-month period measured from the date of such “separation
from service” of the Executive, and (B) the date of the Executive’s death, to the extent required under Code Section 409A.
Upon the expiration of the foregoing delay period, all payments and benefits delayed pursuant to this Section 21(b)(ii) (whether
they would have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid or reimbursed to
the Executive in a lump sum and any remaining payments and benefits due under this Agreement shall be paid or provided in accordance with
the normal payment dates specified for them herein.

 

(iii)          To the extent that reimbursements or other in-kind benefits under this Agreement constitute “nonqualified deferred
compensation” for purposes of Code Section 409A, (A) all expenses or other reimbursements hereunder shall be made on or prior to
the last day of the taxable year following the taxable year in which such expenses were incurred by the Executive, (B) any right to reimbursement
or in-kind benefits shall not be subject to liquidation or exchange for another benefit, and (C) no such reimbursement, expenses eligible
for reimbursement, or in-kind benefits provided in any taxable year shall in any way affect the expenses eligible for reimbursement, or
in-kind benefits to be provided, in any other taxable year.

 

(iv)          For purposes of Code Section 409A, the Executive’s right to receive any installment payments pursuant to this Agreement
shall be treated as a right to receive a series of separate and distinct payments. Whenever a payment under this Agreement specifies a
payment period with reference to a number of days, the actual date of payment within the specified period shall be within the sole discretion
of the Company.

 

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(v)           Notwithstanding any other provision of this Agreement to the contrary, in no event shall any payment under this Agreement
that constitutes “nonqualified deferred compensation” for purposes of Code Section 409A be subject to offset by any other
amount unless otherwise permitted by Code Section 409A.

 

22.          TRADE SECRETS; WHISTLEBLOWING. Notwithstanding anything to the contrary in this Agreement or otherwise, the Executive
understands and acknowledges that the Company has informed the Executive that an individual shall not be held criminally or civilly liable
under any federal or state trade secret law for (i) the disclosure of a trade secret that is made in confidence to a federal, state, or
local government official or to an attorney solely for the purpose of reporting or investigating a suspected violation of law or (ii)
the disclosure of a trade secret that is made in a complaint or other document filed in a lawsuit or other proceeding if such filing is
made under seal. Additionally, notwithstanding anything to the contrary in this Agreement or otherwise, the Executive understands and
acknowledges that the Company has informed the Executive that an individual who files a lawsuit for retaliation by an employer for reporting
a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the
court proceeding if the individual files any document containing the trade secret under seal and does not disclose the trade secret, except
pursuant to a court order. Nothing in this Agreement or any other agreement between the Executive and the Company shall be interpreted
to limit or interfere with the Executive’s right to report good faith suspected violations of law to applicable government agencies,
including the Equal Employment Opportunity Commission, National Labor Relation Board, the Occupational Safety and Health Administration,
the Securities and Exchange Commission or any other applicable federal, state or local governmental agency, in accordance with the provisions
of any “whistleblower” or similar provisions of local, state or federal law. The Executive may report such suspected violations
of law, even if such action would require the Executive to share the Company’s proprietary information or trade secrets with the
government agency, provided that any such information is protected to the maximum extent permissible and any such information constituting
trade secrets is filed only under seal in connection with any court proceeding. Lastly, nothing in this Agreement or any other agreement
between the Executive and the Company will be interpreted to prohibit the Executive from collecting any financial incentives in connection
with making such reports or require the Executive to notify or obtain approval by the Company prior to making such reports to a government
agency.

 

23.          RECOVERY OF AMOUNTS PAID. The Executive acknowledges and agrees that the Executive will be subject to any other
clawback policy that may be adopted by the Board during the Employment Term.

 

 

[REMAINDER OF PAGE INTENTIONALLY
LEFT BLANK]

 

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

 

	 	PAXMEDICA, INC.  
	 	 
	 	 
	 	By:	/s/ Howard J. Weisman
	 	Name:	Howard J. Weisman
	 	Title:	Chief Executive Officer
	 	 
	 	 
	 	STEPHEN D. SHELDON.  
	 	 
	 	 
	 	/s/ Stephen D. Sheldon
	 	Stephen D. Sheldon

 

 

[Signature Page to Employment
Agreement]

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