Document:

Exhibit 10.11

 

CONSULTING AGREEMENT

 

THIS CONSULTING AGREEMENT
(the "Agreement") is effective as the last date provided for on the signature page and is entered into by and between
Mark L. Baum, an individual ("Consultant") and Eton Pharmaceuticals, Inc., a Delaware corporation with its principal
address located at 12264 El Camino Real, Suite 350, San Diego, CA 92130 (the "Company").

 

WHEREAS, the Company wishes to retain Consultant
as an advisor to the Company; and

 

WHEREAS, Consultant wishes to provide advisory
services to the Company as set forth below.

 

NOW THEREFORE, in
consideration of the mutual promises contained herein and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, Consultant and the Company agree, intending to be legally bound, as follows:

 

		1.	Consulting Services.

 

		1.1.	Consultant will provide consulting services to the Company during the Term (as further defined
below) of this Agreement. The consulting services ("Services") are set forth in the Statement of Work ("SOW")
that is attached hereto as Appendix A and made a part hereof, as it may be amended from time to time by the
parties hereto. Consultant shall perform all Services in compliance with all applicable laws.

 

		2.	Effective Date; Term and Termination.

 

		2.1.	This Agreement shall be effective on the later of the dates that it is executed by the Company
and Consultant (the "Effective Date") and shall terminate as of the date Services are completed (the "Term"
as further defined and outlined in Appendix A) unless: (i) this Agreement is sooner terminated as provided in Section
2.2 below; or (ii) the parties agree in writing to extend the Tern for a mutually agreed upon period.

 

		2.2.	The Agreement and the Services provided by Consultant may be terminated by either Consultant or
the Company, at any time and for any reason, upon five (5) days prior written notice of termination.

 

		3.	Consulting Fees.

 

		3.1.	In consideration of the Services provided hereunder, the Company shall provide Consultant the compensation
as set forth in the applicable SOW ("Consulting Fee").

 

		3.2.	Consultant shall be responsible for all expenses incurred in association with performance of the
Services, unless pre-approved by the Company in writing in advance.

 

		4.	Confidentiality. Consultant acknowledges that Consultant will receive confidential and proprietary
information from, on behalf of, or at the direction of, the Company in connection with, and during the course of providing, the
Services, including but not limited to technical, clinical, marketing, commercial and/or legal information, data, reports, drawings,
models, designs, prototypes, biological material, specimens, chemical compounds, formulas, manufacturing or other processes, software,
specifications, patent applications, marketing strategies, customer information and customer lists ("Confidential Information").
All Confidential Information is and shall at all times remain the exclusive property of the Company. Consultant agrees:

 

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		4.1.	to hold the Confidential Information in strict confidence and not to disclose or make available
any Confidential Information to any third party whatsoever, without the prior written consent of the Company;

 

		4.2.	to use the Confidential Information only for the benefit of the Company and only for the purpose
of providing the Services;

 

		4.3.	to take at least the same degree of care to prevent disclosure of Confidential Information as Consultant
takes to preserve and safeguard Consultant's own confidential and proprietary information, but in any event, no less than a reasonable
degree of care;

 

		4.4.	not to make copies of the Confidential Information except to the extent that the copies are reasonably
necessary for providing the Services;

 

		4.5.	to return or destroy (as the Company may direct) any Confidential Information held by Consultant
immediately upon termination of the Term of this Agreement pursuant to Section 2 above and provide the Company with a letter certifying
that all such Confidential Information has been returned or destroyed as directed;

 

		4.6.	that Confidential Information excludes information that:

 

		(a)	as evidenced by Consultant's written records, was lawfully known to Consultant prior to its communication
by, on behalf of, or at the direction of the Company and was not communicated to Consultant subject to any restrictions on disclosure
or use; or

 

		(b)	as evidenced by Consultant's written records, is independently developed by Consultant without
use or knowledge of the Confidential Information; or

 

		(c)	is or becomes a part of the public domain other than by a breach of this Agreement by Consultant;

 

		(d)	becomes known to Consultant by the action of a third party not in breach of any obligation of confidence;
or

 

		(e)	is required to be disclosed or made available by Consultant to a third party pursuant to any applicable
law, governmental regulation, or decision of any court or tribunal of competent jurisdiction, so long as Consultant takes reasonable
steps, in light of the circumstances, to give the Company sufficient prior notice in order to contest such law, governmental regulation,
or decision;

 

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		4.7.	that no representation or warranty, express or implied, is made by the Company as to the accuracy,
completeness or reasonableness of any Confidential Information and that neither the Company will have any liability to Consultant
as a result of Consultant's possession or use of the Confidential information; and

 

		4.8.	that money damages may not be sufficient remedy for any breach of this Section and that the Company
will be entitled to seek specific performance and injunctive or equitable relief as a remedy for any such breach.

 

		4.9.	Nothing in this Section is intended to limit any remedy of the Company under the California Uniform
Trade Secrets Act (California Civil Code Section 3426), or otherwise available. under law.

 

		4.10.	Notwithstanding the other provisions of this Agreement, pursuant to 18 U.S.C. Section 1833(b),
Consultant shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade
secret that is made in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney,
and solely for the purpose of reporting or investigating a suspected violation of law; or is made in a complaint or other document
filed in a lawsuit or other proceeding, if such filing is made under seal.

 

		5.	Independent Contractor. The relationship of Consultant to the Company shall be that of an
independent contractor rendering professional services. Consultant is not an employee of the Company. Nothing contained in this
Agreement shall be deemed to create a relationship of employer and employee or principal and agent between the Company and Consultant.
In no circumstance, shall Consultant look to the Company as Consultant's employer, partner, agent or principal. Consultant is not
entitled to and will be excluded from participating in any of Company's fringe benefit plans or programs as a result of the performance
of the Services under this Agreement, including, but not limited to, health, sickness, accident or dental coverage, life insurance,
disability benefits, accidental death and dismemberment coverage, unemployment insurance coverage, workers' compensation coverage,
and pension or 401(k) benefit(s) provided by Company to its employees (and Consultant waives the right to receive any such benefits).
Consultant agrees, as an independent contractor, that Consultant is not entitled to unemployment benefits in the event this Agreement
terminates, or workers' compensation benefits in the event that Consultant is injured in any manner or becomes ill while performing
the work under this Agreement. Consultant is solely responsible for all tax returns, payments, or reports required to be filed
with or made to any federal, state or local tax authority with respect to Consultant's performance of Services and receipt of consideration
(including Consulting Fees) under this Agreement. Consultant is not authorized to make any representation, contract or commitment
on behalf of the Company unless specifically requested or authorized in writing to do so by an executive officer or Board member
of the Company.

 

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		6.	Waiver. No waiver of this Agreement or any of its provisions shall be binding upon a party
unless in writing and signed by each party. The waiver by either party of a breach or violation of any provision
of this Agreement shall not constitute or be construed as a waiver of any subsequent breach or violation of that provision or as
a waiver of any breach or violation of any other provision.

 

		7.	Severability. If any provision of this Agreement is held by a court of competent jurisdiction
to .be invalid, illegal or unenforceable, the remaining provisions of this Agreement shall be unimpaired, and the invalid, illegal
or unenforceable provision shall be replaced by a mutually acceptable provision, which, being valid, legal and enforceable, comes
closest to the intention of the parties underlying the invalid, illegal or unenforceable provision.

 

		8.	Survival. The provisions of Sections 2.2, 3, 4, 6-11 and any other obligation under this
Agreement which is to survive or be performed after termination of this Agreement, regardless of the cause therefor, shall survive
any termination or expiration of this Agreement.

 

		9.	Notices. Any notice or other communication required or permitted to be made or given under
this Agreement to either party shall be in writing and shall be sufficiently given if (i) hand delivered, (ii) sent by overnight
guaranteed delivery service, such as Federal Express or UPS; or (iii) sent by facsimile transmission or electronic mail during
addressee's norm.al business hours, with a duplicate copy sent by overnight delivery or certified or registered mail, addressed
as either party may from time to time designate to the other by written notice. Any such notice or other communication shall be
deemed to be given as of the date it is received by the addressee.

 

		10.	Governing Law. This Agreement shall be governed by and construed in accordance with the
laws of the State of California, excluding the choice of law rules, and the parties hereby agree to submit to the jurisdiction
and venue of the State and Federal courts of the State of California, and agree that the State and Federal courts of the State
of California shall be the exclusive forum for the resolution of all disputes related to or arising out of this Agreement.

 

		11.	Entire Agreement; Amendments. This Agreement, including any applicable SOW, represents the
entire agreement between the parties in relation to the subject matter contained herein and supersedes all previous other agreements
and representations, whether oral or written. This Agreement may be modified only if such modification is in writing and signed
by a duly authorized representative of each party.

 

***SIGNATURE PAGE FOLLOWS***

 

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SIGNATURE PAGE

 

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

 

	 	CONSULTANT:
	 	 
	 	MARK L. BAUM
	 	 
	 	By:	/s/ Mark L. Baum
	 	Name: Mark L. Baum
	 	An individual 
	 	 
	 	Date: 5/1/17
	 	 
	 	COMPANY:
	 	 
	 	ETON PHARMACEUTICALS, INC.
	 	 
	 	By:	/s/ Andrew R. Boll
	 	Name: Andrew R. Boll
	 	Title: Executive Director 
	 	 
	 	Date: 5/1/17

 

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Appendix A

 

Statement of Work under Consulting Agreement

by and between

Mark L. Baum and Eton Pharmaceuticals,
Inc.

 

Services:

 

Consultant shall provide
senior management advisory services to the Company relating to its establishment, financing activities, patent applications and
other related services as may be requested from time to time by the Company.

 

Compensation:

 

Upon or shortly following
commencement of Consultant's Services to the Company, the Company shall grant to Consultant 730,000 shares (the "Shares")
of the Company's restricted common stock, par value $0.001 ("Common Stock") under the terms of the Company's 2017 Equity
Incentive Plan (the "Plan") and a Restricted Stock Award Grant Notice and Agreement thereunder to be provided to Consultant
by the Company (collectively with the Plan, the "Restricted Stock Documents").

 

The Shares shall vest upon the earlier
of:

 

		(1)	a Change in Control (as defined in the Plan);

		(2)	the date of any underwriting agreement between the Company and the
underwriter(s) managing an initial public offering of the Company's common stock, pursuant to which the common stock is priced
for initial public offering (the "IPO");

		(3)	the date of closing of any Company financing in excess of $10,000,000
("Subsequent Financing"); or

		(4)	immediately prior to the one year anniversary of the date of grant
of the Shares (as indicated in the Restricted Stock Documents) (the "Grant Date").

 

and in any case of
(1), (2), (3) and (4), which occurs following the Bridge Financing (as defined below), subject to Consultant's Continuous Service
(as defined in the Plan) through such vesting date; provided, however, in the event the Consultant's Continuous Service
is terminated by the Company (other than for Cause (as defined in the Plan)) prior to the completion of the Term (as outlined below),
the Shares shall vest immediately upon such termination. The "Bridge Financing" shall mean closing of a bona-fide equity
financing with third party investors resulting in cash gross proceeds to the Company of at least $10,000,000 which occurs within
one year of the Grant Date.

 

Consultant understands
that that the receipt of the Shares hereunder will trigger tax consequences to Consultant for which Consultant will be solely responsible
and that the Shares have not been registered under the Securities Act of 1933, as amended, or any applicable state securities law.
Consultant must execute the Restricted Stock Documents as a condition to receipt of the Shares hereunder.

 

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Term:

 

Consultant commenced providing Services to the Company on April
26, 2017 and shall provide the Services through the earlier of (i) one year from the Grant Date, (ii) a Change in Control, (iii)
the IPO, (iv) a Subsequent Financing or (v) such earlier date as the Services are terminated by the Company or Consultant in accordance
with this Agreement (the "Term").

 

    	 	7Exhibit 10.12

 

ETON PHARMACEUTICALS, INC.

12264 EL CAMINO REAL, SUITE 350

SAN DIEGO, CA 92130

 

May 14, 2017

 

Sean Brynjelsen

516 S. Cook St.

Barrington, IL 60010

 

Re:        Employment Terms

 

Dear Sean:

 

On behalf of Eton Pharmaceuticals,
Inc. (the “Company”), I am pleased to offer you employment in the position of Chief Executive Officer of the Company,
on the terms set forth in this offer letter agreement (the “Agreement”).

 

1.          Effectiveness.

 

(a)          Your
employment with the Company and all of the terms of this Agreement shall become effective one week following closing of a bona-fide
equity financing with third party investors resulting in cash gross proceeds to the Company of at least $10,000,000 within the
ninety (90) days following the date listed above (the “Employment Effective Date”). In the event that such closing
does not occur within the designed time frame, this your employment with the Company and this Agreement shall be null and void
ab initio and neither party hereto shall have any liability or obligation hereunder.

 

(b)          Prior
to the Employment Effective Date, you will provide part-time consulting services to help secure a financing transaction meeting
the criteria above, as requested by the Company from time to time and as permitted by the terms of your current employment (the
“Consulting Services”). As compensation for your Consulting Services, the Company shall, subject to your execution
below and commencement of Consulting Services, grant you a restricted stock award covering 1,000,000 shares of the Company’s
common stock (the “Stock Award”). The Stock Award shall vest 25% on the one year anniversary of its grant date and
in equal monthly installments thereafter ending on the two-year anniversary of its grant date, subject to your continued service
to the Company (which shall include your consulting and employment services) and vesting acceleration as set forth in Section 9(b)
below. The Stock Award is subject to approval by the Company’s Board of Directors (the “Board”) and the terms
of a Restricted Stock Award Grant Notice and Agreement that will be provided to you by the Company. You understand that the grant
of the Stock Award will trigger taxable income to you, and you agree to timely file a Section 83(b) election with the Internal
Revenue Service and provide documentation of such election to the Company. Either you or the Company may terminate the Consulting
Services at any time upon advance written notice to the other party. Your legitimate and documented business expenses incurred
in performing the Consulting Services will be reimbursed by the Company as provided under its business expense reimbursement policies.
You understand that you shall not be an employee of the Company prior to the Employment Effective Date, and shall not be entitled
to any compensation or benefits for performing the Consulting Services other than as set forth in this Section l(b).

    	 		 

     

    

  

2.          Employment
Position; Duties. Upon the Employment Effective Date, you will be employed in the position of Chief Executive Officer of the
Company. In this position, you will report to the Board, and you will have those duties and responsibilities as customary for this
position and as may be directed by the Board. Your commencement of employment shall begin on or around the Employment Agreement
Effective Date (such actual date, the “Employment Start Date”). Your work duties may include work for, or on behalf
of, Affiliates of the Company (as defined below). You will primarily work from your current location in Chicago, Illinois, although
you understand that reasonable travel shall be required in the performance of your position with the Company. During your employment,
you will devote your full-time best efforts to the business of the Company and its Affiliates.

 

3.          Employee
Base Salary; Employee Benefits and Business Expenses.

 

(a)          Base
Salary. Your base salary will be paid at the annual rate of $325,000, less required payroll deductions and tax withholdings,
paid on the Company’s normal payroll schedule (which shall initially be bi-weekly). As an exempt salaried employee, you will
be required to work the Company’s normal business hours, and such additional time as appropriate for your work assignments
and position. You will not be eligible for extra payment under the overtime laws. Your base salary may otherwise be adjusted from
time to time at the Company’s discretion. Within six (6) months following the closing of the Company’s first firm-commitment
underwritten public offering of its equity securities pursuant to a registration statement filed with the Securities and Exchange
Commission (“IPO”), the Board or the Compensation Committee of the Board (the “Compensation Committee”)
will review your base salary against market practices of public peer companies, with the assistance of an outside compensation
consultant, and shall increase your base salary, if necessary, according to such market practices, as determined appropriate by
the Board or the Compensation Committee in its discretion.

 

(b)          Employee
Benefits. As a regular full-time employee, you will be eligible to participate in the Company’s standard employee benefits
(pursuant to the terms and conditions of the benefit plans and applicable policies), as they may be terminated or changed from
time to time within the Company’s discretion.

 

(c)          Business
Expenses. Your legitimate and documented business expenses will be reimbursed by the Company as provided under its business
expense reimbursement policies.

 

4.          Annual
Performance Bonus. In addition to base salary, you will be eligible to earn discretionary incentive compensation at a total
annual target amount of forty-five percent (45%) of your base salary in effect during the bonus year (“Performance Bonus”),
based on the achievement of corporate and individual performance targets to be determined and approved by the Board or the Compensation
Committee thereof. The Performance Bonus, if earned, will be paid on an annual basis, less required payroll deductions and tax
withholdings, after the close of the fiscal year and after determination by the Board (or the Compensation Committee thereof) of
the level of achievement of the applicable performance targets and metrics and the level of the Performance Bonus amount (if any).
No Performance Bonus amount is guaranteed and, in addition to the other conditions for earning such Performance Bonus, you must
remain an employee in good standing of the Company on the Performance Bonus payment date in order to earn any Performance Bonus.
You will be eligible for a Performance Bonus for 2017, pro-rated based on when the Employment Start Date occurs.

    	 		 

     

    

  

5.          Equity
Awards. In addition to the Stock Award, you will be eligible to receive additional equity award grants under the Company’s
equity incentive plans from time to time in the discretion of the board or its Compensation Commitee and in accordance with the
terms and conditions of such plans.

 

6.          Compliance
With Proprietary Information Agreement and Company Policies. As a condition of employment, you shall sign and comply with the
Proprietary Information, Inventions, Non- Solicitation and Non-Competition Agreement (the “Proprietary Information Agreement”)
which is attached as Exhibit A. In addition, you are required to abide by the Company’s policies and procedures, as
may be modified from time to time within the Company’s discretion.

 

7.          Protection
of Third Party Information and Outside Activities.

 

(a)          Third
Party Information. In your work for the Company or its Affiliates (including the Consulting Services), you will be expected
not to make any unauthorized use or disclosure of any confidential information or materials, including trade secrets, of any former
employer or other third party; and not to violate any lawful agreement that you may have with any third party. By signing this
Agreement, you represent that you are able to perform your job duties within these guidelines, and you are not in unauthorized
possession or control of any confidential documents, information, or other property of any former employer or third party. In addition,
you represent that you have disclosed to the Company in writing any agreement you may have with any third party (e.g., a former
employer) which may limit your ability to perform your duties to the Company or its Affiliates, or which could present a conflict
of interest with the Company or its Affiliates, including but not limited to disclosure (and a copy) of any contractual restrictions
on solicitations or competitive activities, and are not bound by any such restrictions which would restrict or prevent you from
performing the Consulting Services or accepting employment with the Company.

 

(b)          Outside
Activities. During your employment with the Company, you may engage in civic and not-for-profit activities, act as a trustee
for estate planning purposes and engage in, and manage, personal investments, so long as such activities do not interfere with
the performance of your duties hereunder or present a conflict of interest with the Company or its Affiliates. Subject to the restrictions
set forth herein, and only with prior written disclosure to and consent of the Board, you may engage in other types of business
or public activities. Your service on any board of directors (or similar) of an outside entity or organization shall be subject
to prior written approval of the Board, except for your current service on the board of directors of Mobius Therapeutics LLC, which
the Board hereby acknowledges and approves. The Board may rescind approval of outside services, if the Board determines, in its
sole discretion, that such activities compromise or threaten to compromise the Company’s or its Affiliates’ business
interests or conflict with your duties to the Company or its Affiliates.

    	 		 

     

    

  

(c)          Non-Competition.
During your employment with the Company, you will not, without the express written consent of the Board, directly or indirectly
serve as an officer, director, stockholder, employee, partner, proprietor, investor, joint venture, associate, representative or
consultant of any person or entity engaged in, or planning or preparing to engage in, business activity competitive with any line
of business engaged in (or, to your knowledge, immediately planned to be engaged in) by the Company or its Affiliates; provided,
however, that you may purchase or otherwise acquire up to (but not more than) five percent (5%) of any class of securities of any
enterprise (without participating in the activities of such enterprise) if such securities are listed on any national or regional
securities exchange. In addition, you will be subject to certain restrictions (including restrictions continuing after your employment
ends) under the terms of your Proprietary Information Agreement.

 

8.          At
Will Employment Relationship. Your employment relationship the Company is at-will. Accordingly, you may terminate your employment
with the Company at any time and for any reason whatsoever simply by notifying the Company, and the Company may terminate your
employment at any time with or without Cause or prior notice. In addition, the Company retains the discretion to modify your other
employment terms from time to time, including but not limited to your position, duties, authority, reporting relationship, work
location, compensation, and benefits.

 

9.          Severance
Benefits.

 

(a)          Severance
Benefits for Covered Termination. If beginning on or after the six (6) month anniversary of the Employment Start Date, (A)
your employment is terminated due to (1) a termination by the Company without Cause (other than as a result of your death or Disability)
or (2) your resignation for Good Reason (collectively, a “Covered Termination”), (B) you satisfy the Release Requirement
and (C) you continue to abide by the terms of your Proprietary Information Agreement, then you will receive the “Severance
Benefits” as set forth in this Section 9(a) as your sole severance benefits, and you will not be eligible for severance benefits
under any other policy, plan or agreement except to the extent required by law. Specifically, you will receive:

 

(i)          Severance
Payments. Severance pay in the form of continuation of your base salary at the time of your Covered Termination (but ignoring
any decrease that forms the basis of your resignation for Good Reason, if applicable) for a period of twelve (12) months, subject
to required payroll deductions and tax withholdings (the “Severance Payments”). Subject to Section 10, the Severance
Payments shall be made on the Company’s regular payroll schedule in effect following your termination date, provided, however,
that any such payments that are otherwise scheduled to be made prior to the Release Effective Date (as defined below) shall instead
accrue and be made on the first regular payroll date following the Release Effective Date; and

 

(ii)         Health
Care Continuation Coverage Payments.

 

    	 		 

     

    

 

(A)         COBRA
Premiums. If you timely elect continued coverage under COBRA, the Company will pay your COBRA premiums to continue your coverage
(including coverage for your eligible dependents, if applicable) (“COBRA Premiums”) through the period starting on
the termination date and ending twelve (12) months after the termination date (the “COBRA Premium Period”); provided,
however, that the Company’s provision of such COBRA Premium benefits will immediately cease if during the COBRA Premium Period
you become eligible for group health insurance coverage through a new employer or you cease to be eligible for COBRA continuation
coverage for any reason, including plan termination. In the event you become covered under another employer’s group health
plan or otherwise cease to be eligible for COBRA during the COBRA Premium Period; you must immediately notify the Company of such
event. For purposes of this Section, references to COBRA premiums shall not include any amounts payable you under a Section 125
health care reimbursement plan under the Internal Revenue Code of 1986, as amended (the “Code”).

 

(B)         Special
Cash Payments in Lieu of COBRA Premiums. Notwithstanding the foregoing, if the Company determines, in its sole discretion,
that it cannot pay the COBRA Premiums without potentially incurring financial costs or penalties under applicable law (including,
without limitation, Section 2716 of the Public Health Service Act), regardless of whether you or your dependents elect or are eligible
for COBRA coverage, the Company instead shall pay to you, on the first day of each calendar month following the time the Company
determines it cannot pay such COBRA Premiums, a fully taxable cash payment equal to the applicable COBRA premiums for that month
(including the amount of COBRA premiums for your eligible dependents), subject to applicable tax withholdings (such amount, the
“Special Cash Payment”), for the remainder of the COBRA Premium Period. You may, but are not obligated to, use such
Special Cash Payments toward the cost of COBRA premiums.

 

(b)          Severance
Benefits for Covered Termination during Change in Control Period. Notwithstanding the foregoing, if your Covered Termination
occurs during the period commencing one (1) month prior to the Closing of a Change in Control and ending twelve (12) months following
the Closing of a Change in Control, in addition to the Severance Benefits described in Section 9(a), you shall also be eligible
to receive the following, subject to satisfaction of the Release Requirement:

 

(i)          Equity
Acceleration. The vesting and exercisability of each outstanding unvested stock option and other stock award, as applicable,
that you hold covering Company common stock (each, an “Equity Award”) shall be accelerated in full and any reacquisition
or repurchase rights held by the Company in respect of common stock issued pursuant to any Equity Award granted to you shall lapse
in full. For purposes of determining the number of shares that will vest pursuant to the foregoing provision with respect to any
Equity Award that vests based on performance goals for which the performance period has not ended and that has multiple vesting
levels depending upon the level of performance, vesting acceleration with respect to any ongoing performance period(s) shall occur
with respect to the number of shares subject to the award as if the applicable performance criteria had been attained at a 100%
level or, if greater, based on actual performance as of your Covered Termination. If necessary to give effect to this Section 9(b)(i),
if your Covered Termination occurs prior to a Change in Control, all of the Equity Awards you hold as of immediately prior to your
Covered Termination shall remain outstanding after your Covered Termination for at least until the earlier of (i) thirty (30) days
after your Covered Termination or (ii) the Closing, if sooner. Notwithstanding anything to the contrary set forth herein, your
Equity Awards shall remain subject to the terms of the applicable Company plan and award documents under which such Equity Award
was granted, including any provision for earlier termination of such Equity Awards.

    	 		 

     

    

  

(c)          Release
Requirement. To be eligible for the Severance Benefits pursuant to Sections 9(a) and 9(b) above, you must satisfy the following
release requirement (the “Release Requirement”): return to the Company a signed and dated general release of all known
and unknown claims, in such form as provided by the Company (the “Release and Waiver”) within the applicable deadline
set forth therein, and permit the Release and Waiver to become effective and irrevocable in accordance with its terms, which must
occur no later than sixty (60) days following your termination date (such effective date of the Release and Waiver, the “Release
Effective Date”). You may be asked to provide reasonable transitional services as a condition of payment of Severance Benefits.

 

(d)          Definitions.

 

(i)          “Affiliate”
means, at the time of determination, any “parent” or “majority-owned subsidiary” of the Company, as such
terms are defined in Rule 405 promulgated under the Securities Act of 1933, as amended. The Board will have the authority to determine
the time or times at which “parent” or “majority-owned subsidiary” status is determined within the foregoing
definition.

 

(ii)         “Cause”
means the occurrence of any one of more of the following: (i) your conviction of, or plea of no contest with respect to, any felony,
or of any misdemeanor involving dishonesty or moral turpitude; (ii) your participation in a fraud or act of dishonesty (or an attempted
fraud or act of dishonesty) that results in (or could result in) material harm to the Company or its Affiliates, including but
not limited to material harm to reputational interests; (iii) your violation of a fiduciary duty owed to the Company or its Affiliates;
(iv) your material breach of any fully executed agreement between you and the Company or any of its Affiliates, including but not
limited to this Agreement or your Proprietary Information Agreement, or any applicable Company policies; (v) persistent, unsatisfactory
performance or neglect of your job duties, which is not cured within ten (10) business days after you are provided written notice
by the Company specifically identifying the manner of your performance or neglect (provided, that, such written notice and
opportunity to cure are not required if your performance or neglect is not reasonably susceptible to being cured); (vi) your gross
misconduct or material failure to comply with a written instruction of the Company; or (vii) your inability to perform your job
duties for any consecutive thirty (30) day period for any reason that is not the result of death or Disability.

 

(iii)        “Change
in Control” means the occurrence, in a single transaction or in a series of related transactions, of any one or more
of the following events:

 

    	 		 

     

    

 

(A)         any
Exchange Act Person 1 (excluding Imprimis Pharmaceuticals, Inc. and any of its Affiliates (“Imprimis”)) becomes
the Owner, directly or indirectly, of securities of the Company representing more than fifty percent (50%) of the combined
voting power of the Company’s then outstanding securities other than by virtue of a merger, consolidation or similar
transaction. Notwithstanding the foregoing, a Change in Control will not be deemed to occur (A) on account of the acquisition
of securities of the Company directly from the Company, (B) on account of the acquisition of securities of the Company by an
investor, any affiliate thereof or any other Exchange Act Person that acquires the Company’s securities in a
transaction or series of related transactions the primary purpose of which is to obtain financing for the Company through the
issuance of equity securities or (C) solely because the level of Ownership held by any Exchange Act Person (the
“Subject Person”) exceeds the designated percentage threshold of the outstanding voting securities as a

 

 

 

“Exchange Act Person”
means any natural person, entity or “group” (within the meaning of Section 13(d) or 14(d) of the Exchange Act), except
that “Exchange Act Person” will not include (i) the Company or any Subsidiary of the Company,

 

(ii)          any
employee benefit plan of the Company or any Subsidiary of the Company or any trustee or other fiduciary holding

 

securities under an employee benefit plan
of the Company or any Subsidiary of the Company, (iii) an underwriter temporarily holding securities pursuant to an offering of
such securities, (iv) an entity Owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions
as their Ownership of stock of the Company; or (v) any natural person, entity or “group” (within the meaning of Section
13(d) or 14(d) of the Exchange Act) that, as of the Effective Date, is the Owner, directly or indirectly, of securities of the
Company representing more than fifty percent (50%) of the combined voting power of the Company’s then outstanding securities.
“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“Own,” “Owned,”
“Owner,” “Ownership” A person or entity will be deemed to “Own,” to have “Owned,”
to be the “Owner” of, or to have acquired “Ownership” of securities if such person or entity, directly
or indirectly, through any contract, arrangement, understanding, relationship or otherwise, has or shares voting power, which includes
the power to vote or to direct the voting, with respect to such securities.

 

result of a repurchase or other
acquisition of voting securities by the Company reducing the number of shares outstanding, provided that if a Change in
Control would occur (but for the operation of this sentence) as a result of the acquisition of voting securities by the
company, and after such share acquisition, the Subject Person becomes the Owner of any additional voting securities that,
assuming the

 

repurchase or other acquisition had not occurred, increases the percentage of the then outstanding voting
securities Owned by the Subject Person over the designated percentage threshold, then a Change in Control will be deemed to
occur;

 

    	 		 

     

    

 

(B) there is consummated a merger, consolidation
or similar transaction involving (directly or indirectly) the Company and, immediately after the consummation of such merger, consolidation
or similar transaction, the stockholders of the Company immediately prior thereto do not Own, directly or indirectly, either (A)
outstanding voting securities representing more than fifty percent (50%) of the combined outstanding voting power of the surviving
Entity in such merger, consolidation or similar transaction or (B) more than fifty percent (50%) of the combined outstanding voting
power of the parent of the surviving Entity in such merger, consolidation or similar transaction, in each case in substantially
the same proportions as their Ownership of the outstanding voting securities of the Company immediately prior to such transaction;

 

(C) the stockholders of the Company approve
or the Board approves a plan of complete dissolution or liquidation of the Company, or a complete dissolution or liquidation of
the Company will otherwise occur, except for a liquidation into a parent corporation; or

 

(D) there is consummated a sale, lease,
exclusive license or other disposition of all or substantially all of the consolidated assets of the Company and its Subsidiaries,
other than a sale, lease, license or other disposition of all or substantially all of the consolidated assets of the Company and
its Subsidiaries to Imprimis or to an Entity, more than fifty percent (50%) of the combined voting power of the voting securities
of which are Owned by stockholders of the Company in substantially the same proportions as their Ownership of the outstanding voting
securities of the Company immediately prior to such sale, lease, license or other disposition.

 

Notwithstanding the foregoing definition
or any other provision of this Agreement, the term Change in Control will not include a sale of assets, merger or other transaction
effected exclusively for the purpose of changing the domicile of the Company.

 

(iv)        “Closing”
means the initial closing of the Change in Control as defined in the definitive agreement executed in connection with the Change
in Control. In the case of a series of transactions constituting a Change in Control, “Closing” means the first closing
that satisfies the threshold of the definition for a Change in Control.

 

(v)         “Disability”
means your inability to perform the essential functions of your position, with or without reasonable accommodation, by reason of
any medically determinable physical or mental impairment, where such inability has continued for at least a period of 60 days in
any consecutive 365-day period, as determined by the Company in its sole discretion.

 

(vi)        “Good
Reason” for your resignation means the occurrence of any of the following events, conditions or actions taken by the
Company without Cause and without your written consent: (i) a material reduction of your annual base salary; provided, however,
that Good Reason shall not be deemed to have occurred in the event of a reduction in your annual base salary that is pursuant
to salary reduction program affecting substantially all of the executive employees of the Company; (ii) a material reduction in
your authority, duties or responsibilities, including a requirement that you report to a corporate officer or employee of the Company
instead of reporting directly to the Board; (iii) a relocation of your principal place of employment with the Company to a place
that increases your one way commute by more than fifty (50) miles as compared to your then-current principal place of employment
immediately prior to such relocation (excluding regular travel in the ordinary course of business); or (iv) a material breach by
the Company of any provision of this Agreement; provided, however, that in each case above, in order for your resignation
to be deemed to have been for Good Reason, you must first give the Board written notice of the action or omission giving rise to
“Good Reason” within thirty (30) days after the first occurrence thereof; the Company must fail to reasonably cure
such action or omission within thirty (30) days after receipt of such notice (the “Cure Period”), and your resignation
from all positions you hold with the Company must be effective not later than thirty (30) days after the expiration of such Cure
Period.

    	 		 

     

    

  

(vii) “Subsidiary”
means, with respect to the Company, (i) any corporation of which more than fifty percent (50%) of the outstanding capital stock
having ordinary voting power to elect a majority of the board of directors of such corporation (irrespective of whether, at the
time, stock of any other class or classes of such corporation will have or might have voting power by reason of the happening of
any contingency) is at the time, directly or indirectly, Owned by the Company, and (ii) any partnership, limited liability company
or other entity in which the Company has a direct or indirect interest (whether in the form of voting or participation in profits
or capital contribution) of more than fifty percent (50%).

 

(e)          Other.
You will not be eligible for any Severance Benefits under any circumstances other than those described herein, including circumstances
in which your employment is terminated by the Company for Cause, you terminate your employment for any reason at any time, or your
employment terminates due to your death or Disability. In addition, if you materially breach any continuing obligations to the
Company (including but not limited to any material breach of the Proprietary Information Agreement) during the period of time that
you are receiving any Severance Benefits, you will forfeit your entitlement to any then unpaid Severance Benefits, and the Company’s
obligation to continue to pay or provide such Severance Benefits will immediately terminate as of the date of your material breach.

 

10.         Section
409A. It is intended that all of the benefits and other payments payable under this Agreement satisfy, to the greatest extent
possible, an exemption from the application of Section 409A of the Code and the regulations and other guidance thereunder and any
state law of similar effect (collectively “Section 409A”), and this Agreement will be construed to the greatest extent
possible as consistent with those provisions, and to the extent no so exempt, this Agreement (and any definitions hereunder) will
be construed in a manner that complies with Section 409A, and any ambiguities herein shall be interpreted accordingly. Specifically,
the benefits under this Agreement are intended to satisfy the exemptions from application of Section 409A provided under Treasury
Regulations Sections 1.409A-l(b)(4), 1.409A-l (b)(5) and 1.409A-l (b)(9) and each installment of severance benefits, if any, is
a separate “payment” for purposes of Treasury Regulations Section l.409A-2(b)(2)(i). However, if such exemptions are
not available and you are, upon your “separation from service” with the Company (within the meaning of Treasury Regulation
Section 1.409A-l(h) (without regard to any permissible alternative definition thereunder) (“Separation from Service”),
a “specified employee” for purposes of Section 409A, then, solely to the extent necessary to avoid adverse personal
tax consequences under Section 409A, the timing of the severance benefits payments shall be delayed until the earlier of (i) six
(6) months and one (1) day after your Separation from Service, or (ii) your death. Severance benefits shall not commence until
you have a Separation from Service. If the severance benefits are not covered by one or more exemptions from the application of
Section 409A and the Release and Waiver could become effective in the calendar year following the calendar year in which your Separation
from Service occurs, the Release Effective Date will not be deemed effective, for purposes of payment of severance, any earlier
than the first day of the second calendar year. Except to the minimum extent that payments must be delayed because you are a “specified
employee” or until the Release Effective Date, all severance amounts will be paid as soon as practicable in accordance with
this Agreement and the Company’s normal payroll practices.

    	 		 

     

    

  

11.         Section
280G.

 

(a)          If
any payment or benefit you would receive from the Company or otherwise in connection with a change in control of the Company or
other similar transaction (“Payment”) would (1) constitute a “parachute payment” within the meaning of
Section 280G of the Code, and (2) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the
“Excise Tax”), then such Payment will be equal to the Reduced Amount. The “Reduced Amount” will be either
(x) the largest portion of the Payment that would result in no portion of the Payment being subject to the Excise Tax, or (y) the
largest portion, up to and including the total, of the Payment, whichever amount ((x) or (y)), after taking into account all applicable
federal, state and local employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate),
results in your receipt, on an after- tax basis, of the greater amount of the Payment notwithstanding that all or some portion of
the Payment may be subject to the Excise Tax. If a reduction in payments or benefits constituting “parachute payments”
is necessary so that the Payment equals the Reduced Amount, reduction will occur in the manner (the “Reduction Method”)
that results in the greatest economic benefit for you. If more than one method of reduction will result in the same economic benefit,
the items so reduced will be reduced pro rata (the “Pro Rata Reduction Method”).

 

(b)          Notwithstanding
the foregoing, if the Reduction Method or the Pro Rata Reduction Method would result in any portion of the Payment being subject
to taxes pursuant to Section 409A that would not otherwise be subject to taxes pursuant to Section 409A, then the Reduction Method
and/or the Pro Rata Reduction Method; as the case may be, shall be modified so as to avoid the imposition of taxes pursuant to
Section 409A as follows: (A) as a first priority, the modification shall preserve to the greatest extent possible, the greatest
economic benefit for you as determined on an after- tax basis; (B) as a second priority, Payments that are contingent on future
events (e.g., being terminated without cause), shall be reduced (or eliminated) before Payments that are not contingent on future
events; and (C) as a third priority, Payments that are “deferred compensation” within the meaning of Section 409A shall
be reduced (or eliminated) before Payments that are not deferred compensation within the meaning of Section 409A.

 

(c)         The independent registered
public accounting firm engaged by the Company for general audit purposes as of the day prior to the effective date of the event
described in Section 280G(b)(2)(A)(i) of the Code will perform the foregoing calculations. If the independent registered public
accounting firm so engaged by the Company is serving as accountant or auditor for the individual, entity or group effecting the
change in control or similar transaction, the Company will appoint a nationally recognized independent registered public accounting
firm to make the determinations required hereunder. The Company will bear all expenses with respect to the determinations by such
independent registered public accounting firm required to be made hereunder. The independent registered public accounting firm
engaged to make the determinations hereunder will make its determination with input from you (or your counsel) and provide its
calculations, together with detailed supporting documentation, to the Company and you within fifteen (15) calendar days after the
date on which your right to a Payment is triggered (if requested at that time by the Company or you) or such other time as reasonably
requested by the Company or you.

    	 		 

     

    

  

12.         Dispute
Resolution. To ensure the rapid and economical resolution of disputes that may arise in connection with your employment with
and services for the Company, you and the Company agree that any and all disputes, claims, or causes of action, in law or equity,
including but not limited to statutory claims, arising from or relating to the enforcement, breach, performance, or interpretation
of this Agreement, your employment with and services for the Company, or the termination of your employment with and services for
the Company, will be resolved pursuant to the Federal Arbitration Act, 9 U.S.C. §§1-16, and to the fullest extent permitted
by law, by final, binding and confidential arbitration conducted in Chicago, Illinois (or such other location as mutually agreed
by the parties) by JAMS, Inc. (“JAMS”) or its successors by a single arbitrator. Both you and the Company acknowledge
that by agreeing to this arbitration procedure, you each waive the right to resolve any such dispute through a trial by jury or
judge or administrative proceeding. Any such arbitration proceeding will be governed by JAMS’ then applicable rules and
procedures for employment disputes, which will be provided to you upon request. In any such proceeding, the arbitrator shall (a)
have the authority to compel adequate discovery for the resolution of the dispute and to award such relief as would otherwise be
permitted by law; and (b) issue a written arbitration decision including the arbitrator’s essential findings and conclusions
and a statement of the award. You and the Company each shall be entitled to all rights and remedies that either would be entitled
to pursue in a court of law. Nothing in this Agreement is intended to prevent either the Company or you from obtaining injunctive
relief in court to prevent irreparable harm pending the conclusion of any such arbitration pursuant to applicable law. The Company
shall pay all filing fees in excess of those that would be required if the dispute were decided in a court of law, and shall pay
the arbitrator’s fees and any other fees or costs unique to arbitration. Any awards or orders in such arbitrations may be
entered and enforced as judgments in the federal and state courts of any competent jurisdiction.

 

13.         Indemnification.
Upon the Employment Effective Date, you shall be eligible for indemnification by the Company in your role as Chief Executive Officer
to the fullest extent as provided for pursuant to Section 8.1 of the Company’s By-Laws, as may be amended and restated from
time to time.

 

14.         Miscellaneous.
This Agreement, along with Exhibit A, forms the complete and exclusive statement of your agreement with the Company regarding
the subject matter hereof. It supersedes and replaces any other agreements or promises made to you by anyone concerning your employment
terms with the Company or any Affiliate thereof, whether oral or written. This Agreement may not be amended or modified except
by a written modification signed by you and a duly authorized member of the Board, with the exception of those changes expressly
reserved to the Company’s discretion in this Agreement. This Agreement is governed by the laws of the state of Illinois without
reference to conflicts of law principles, and it is intended to bind and inure to the benefit of and be enforceable by the Company
and its successors and assigns. If any provision of this Agreement shall be held invalid or unenforceable in any respect, such
invalidity or unenforceability shall not affect the other provisions of this Agreement, and such provision will be reformed, construed
and enforced so as to render it valid and enforceable consistent with the general intent of the parties insofar as possible under
applicable law. With respect to the enforcement of this Agreement, no waiver of any right hereunder shall be effective unless it
is in writing. Any ambiguity in this Agreement shall not be construed against either party as the drafter. This Agreement may be
executed in counterparts which shall be deemed to be part of one original, and facsimile and electronic signatures shall be equivalent
to original signature. To the extent required by law, your employment with the Company will be subject to satisfactory proof of
your identity and right to work in the United States.

    	 		 

     

    

  

To accept our offer
of consulting and employment under the terms set forth herein, please sign and date this Agreement and sign and date the Proprietary
Information Agreement attached as Exhibit A, and return the fully signed documents to me at your earliest convenience and
no later than within fifteen business days from the date listed above.

 

Please let me know if you have any questions.

 

Sincerely,

 

	ETON PHARMACEUTICALS, INC.	 
	 	 
	By: /s/ Mark L. Baum	 
	 	 
	Mark L. Baum	 
	 	 
	Reviewed, Understood, and Accepted:	 
	 	 
	/s/ Sean Brynjelsen	 
	 	 
	Sean Brynjelsen	 
	 	 
	Date 5/14/2017	 
	 	 
	Accepted by Company:	 
	 	 
	/s/ Mark L. Baum	 
	 	 
	Mark L. Baum, Executive Director	 
	 	 
	Date 5/14/2017	 

 

    	 		 

     

    

  

EXHIBIT A

 

PROPRIETARY INFORMATION AGREEMENT

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