Document:

Exhibit 10.4

 

 

 

 

 

 

EDGE THERAPEUTICS, INC. 

2014 EQUITY INCENTIVE PLAN

 

 

 

 

 

 

 

Adopted by the Board of Directors
August 27, 2014

 

Approved by the Shareholders November 3, 2014

 

 

 

    	 

    	 

    

 

 

EDGE THERAPEUTICS, INC.

 

2014 EQUITY INCENTIVE PLAN

 

Section 1.               
Purpose of the Plan. The purpose of the Edge Therapeutics, Inc. 2014 Equity Incentive Plan (the “Plan”)
is to assist the Company and its Subsidiaries in attracting and retaining valued Employees, Consultants and Non-Employee Directors
by offering them a greater stake in the Company’s success and a closer identity with it, and to encourage ownership of the
Company’s stock by such Employees, Consultants and Non-Employee Directors.

 

Section 2.               
Definitions. As used herein, the following definitions shall apply:

 

2.1.           
“Award” means the grant of Restricted Stock, Options, SARs, Restricted Stock Units or Other Awards under
the Plan.

 

2.2.           
“Award Agreement” means the written agreement, instrument or document evidencing an Award.

 

2.3.           
“Board” means the Board of Directors of the Company.

 

2.4.           
“Cause” means,

 

(a)               
if the applicable Participant is party to an effective employment, consulting, severance or similar agreement with the Company
or a Subsidiary, and such term is defined therein, “Cause” shall have the meaning provided in such agreement;

 

(b)              
if the applicable Participant is not a party to an effective employment, consulting, severance or similar agreement or if
no definition of “Cause” is set forth in the applicable employment, consulting, severance or similar agreement, “Cause”
shall have the meaning provided in the applicable Award Agreement;

 

(c)               
if neither (a) nor (b) applies, then “Cause” shall mean, as determined by the Committee in its sole discretion,
(i) the Participant’s willful misconduct or gross negligence in connection with the performance of the Participant’s
duties for the Company or its Subsidiaries; (ii) the Participant’s conviction of, or a plea of guilty or nolo contendere
to, a felony or a crime involving fraud or moral turpitude; (iii) the Participant’s engaging in any business that directly
or indirectly competes with the Company or its Subsidiaries; or (iv) disclosure of trade secrets, customer lists or confidential
information of the Company or its Subsidiaries to a competitor or an unauthorized person.

 

2.5.           
“Change in Control” means, unless otherwise provided in an Award Agreement:

 

(a)               
the acquisition in one or more transactions (whether by purchase, merger or otherwise) by any “Person” (as such
term is used for purposes of Section 13(d) or Section 14(d) of the Exchange Act, but excluding, for this purpose, (i) the Company
or its Subsidiaries, (ii) any employee benefit plan of the Company or its Subsidiaries, (iii) 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) of “Beneficial
Ownership” (within the meaning of Rule 13d-3 under the Exchange Act) of more than fifty percent (50%) of the combined voting
power of the Company’s then outstanding voting securities (the “Voting Securities”);

 

(b)              
a change in the composition of the Board such that the individuals who as of any date constitute the Board (the “Incumbent
Board”) cease to constitute a majority of the Board at any time during the 24-month period immediately following such
date; provided, however, that if the election, or nomination for election by the Company’s shareholders, of any new director
was approved by a vote of at least a majority of the Incumbent Board, such new director shall be considered as a member of the
Incumbent Board, and provided further that any reductions in the size of the Board that are instituted voluntarily by the Incumbent
Board shall not constitute a Change in Control, and after any such reduction the “Incumbent Board” shall mean the Board
as so reduced;

 

(c)               
a complete liquidation or dissolution of the Company; or

 

(d)              
the sale of all or substantially all of the Company’s and its Subsidiaries’ assets (determined on a consolidated
basis), other than to a Person described in clauses (i), (ii) or (iii) of Section 2.5(a) above.

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2.6.           
 “Code” means the Internal Revenue Code of 1986, as amended.

 

2.7.           
“Common Stock” means the common stock of the Company, par value $0.01 per share.

 

2.8.           
“Company” means Edge Therapeutics, Inc., a Delaware corporation, or any successor corporation.

 

2.9.           
“Committee” means the Compensation Committee of the Board, provided that the Committee shall at all times
have at least two members, each of whom shall be a “non-employee director” as defined in Rule 16b-3 under the Exchange
Act, an “outside director” as defined in Section 162(m) of the Code and the regulations issued thereunder and an “independent
director” under the rules of any applicable stock exchange.

 

2.10.       
“Consultant” means a natural person who provides bona fide services to the Company or its Subsidiaries
other than in connection with the offer or sale of securities in a capital-raising transaction and is not engaged in activities
that directly or indirectly promote or maintain a market for the Company’s securities.

 

2.11.       
 “Disability” means, unless otherwise provided in an Award Agreement, that the Participant is unable
to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be
expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months.

 

2.12.       
“Effective Date” means the date that the Plan is approved by the shareholders of the Company.

 

2.13.       
“Employee” means an officer or other employee of the Company or a Subsidiary, including a director who
is such an employee.

 

2.14.       
“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

2.15.       
“Fair Market Value” means, on any given date (i) if the shares of Common Stock are then listed on a national
securities exchange, including the Nasdaq Global Select Market (“NASDAQ”), the closing sales price per share of Common
Stock on the exchange for such date, or if no sale was made on such date on the exchange, on the last preceding day on which a
sale occurred; (ii) if shares of Common Stock are not then listed on a national securities exchange but are then quoted on another
stock quotation system, the closing price for the shares of Common Stock as quoted on such quotation system on such date, or if
no sale was made on such date on such quotation system, on the last preceding day on which a sale was made; or (iii) if (i) and
(ii) do not apply, such value as the Committee in its discretion may in good faith determine in accordance with Section 409A of
the Code and the regulations thereunder (and, with respect to Incentive Stock Options, in accordance with Section 422 of the Code
and the regulations thereunder).

 

2.16.       
“Incentive Stock Option” means an Option or portion thereof intended to meet the requirements of an incentive
stock option as defined in Section 422 of the Code and designated as an Incentive Stock Option.

 

2.17.       
“Non-Employee Director” means a member of the Board who is not an Employee.

 

2.18.       
“Non-Qualified Option” means an Option or portion thereof not intended to be an Incentive Stock Option.

 

2.19.       
“Option” means a right granted under Section 6.1 of the Plan to purchase a specified number of shares
of Common Stock at a specified price. An Option may be an Incentive Stock Option or a Non-Qualified Option; provided, however,
that unless otherwise explicitly stated in an Award Agreement, each Option shall be a Non-Qualified Stock Option.

 

2.20.       
“Participant” means any Employee, Non-Employee Director or Consultant who receives an Award.

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2.21.       
“Performance Goals” means any goals established by the Committee in its sole discretion, the attainment
of which is substantially uncertain at the time such goals are established. Performance Goals may be described in terms of Company-wide
objectives or objectives that are related to the performance of the individual Participant or the Subsidiary, division, department
or function within the Company or Subsidiary in which the Participant is employed. Performance Goals may be measured on an absolute
or relative basis. Relative performance may be measured by a group of peer companies or by a financial market index. To the extent
that the Award is intended to constitute “qualified performance-based compensation” within the meaning of Code Section
162(m), then such Award shall be based on the achievement of one or more of the following performance goals: specified levels of
or increases in return on capital, equity or assets; earnings measures/ratios (on a gross, net, pre-tax or post-tax basis), including
diluted earnings per share, total earnings, operating earnings, earnings growth, earnings before interest and taxes (EBIT) and
earnings before interest, taxes, depreciation and amortization (EBITDA); net economic profit (which is operating earnings minus
a charge to capital); net income; operating income; sales; sales growth; gross margin; direct margin; share price (including but
not limited to growth measures and total shareholder return); operating profit; per period or cumulative cash flow (including but
not limited to operating cash flow and free cash flow) or cash flow return on investment (which equals net cash flow divided by
total capital); inventory turns; financial return ratios; market share; balance sheet measurements such as receivable turnover;
improvement in or attainment of expense levels; improvement in or attainment of working capital levels; debt reduction; strategic
innovation, including but not limited to entering into, substantially completing, or receiving payments under, relating to, or
deriving from a joint development agreement, licensing agreement, or similar agreement; customer or employee satisfaction; individual
objectives; operating efficiency; regulatory body approvals for commercialization of products; implementation or completion of
critical projects or related milestones (including, without limitation, milestones such as clinical trial enrollment targets, commencement
of phases of clinical trials and completion of phases of clinical trials); partnering or similar transactions; and any combination
of any of the foregoing criteria. If the Committee determines that a change in the business, operations, corporate structure or
capital structure of the Company or its Subsidiaries, or the manner in which it conducts its business, or other events or circumstances
render the Performance Goals unsuitable, the Committee may modify such Performance Goals or the related minimum acceptable level
of achievement, in whole or in part, as the Committee deems appropriate and equitable (but, with respect to any Award that is intended
to constitute “qualifying performance-based compensation” (within the meaning of Code Section 162(m)),only to the extent
permitted by Code Section 162(m)).

 

2.22.       
“Performance Period” means the period selected by the Committee during which the performance of the Company,
any Subsidiary, any department of the Company or any Subsidiary, or any individual is measured for the purpose of determining the
extent to which a Performance Goal has been achieved.

 

2.23.       
“Restricted Stock” means Common Stock awarded by the Committee under Section 6.3 of the Plan.

 

2.24.       
“Restricted Stock Unit” means the right granted under Section 6.4 of the Plan to receive, on the date
of settlement, an amount equal to the Fair Market Value of one share of Common Stock. An Award of Restricted Stock Units may be
settled in cash, shares of Common Stock or any combination of the foregoing.

 

2.25.       
“Restriction Period” means the period during which Restricted Stock and Restricted Stock Units are subject
to forfeiture.

 

2.26.       
“SAR” means a stock appreciation right awarded by the Committee under Section 6.2 of the Plan.

 

2.27.       
“Securities Act” means the Securities Act of 1933, as amended.

 

2.28.       
“Subsidiary” means any corporation, partnership, joint venture or other business entity of which 50%
or more of the outstanding voting power is beneficially owned, directly or indirectly, by the Company.

 

2.29.       
“Ten Percent Shareholder” means a person who on any given date owns, either directly or indirectly (taking
into account the attribution rules contained in Section 424(d) of the Code), stock possessing more than 10% of the total combined
voting power of all classes of stock of the Company or a Subsidiary.

 

Section 3.               
Eligibility. Any Employee, Non-Employee Director or Consultant shall be eligible to be selected to receive an Award
under the Plan; provided, however, that only persons who are Employees may be granted Options which are intended to qualify as
Incentive Stock Options.

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Section 4.               
Administration and Implementation of the Plan.

 

4.1.           
The Plan and all Award Agreements shall be administered by the Committee. Any action of the Committee in administering the
Plan and an Award Agreement shall be final, conclusive and binding on all persons, including the Company, its Subsidiaries, Participants,
persons claiming rights from or through Participants and shareholders of the Company.
No member of the Committee (or any person to whom the Committee has delegated authority to act under the Plan) shall be
personally liable for any action, determination, or interpretation taken or made in good faith by the Committee (or such person)
with respect to the Plan or any Awards granted hereunder, and all members of the Committee (and such persons) shall be fully indemnified
and protected by the Company in respect of any such action, determination or interpretation to the fullest extent permitted by
law.

 

4.2.           
Subject to the provisions of the Plan, the Committee shall have full and final authority in its discretion to (i) select
the Employees, Non-Employee Directors and Consultants who will receive Awards pursuant to the Plan; (ii) determine the type or
types of Awards to be granted to each Participant; (iii) determine the number of shares of Common Stock to which an Award will
relate, the terms and conditions of any Award granted under the Plan (including, but not limited to, restrictions as to vesting,
transferability or forfeiture, exercisability or settlement of an Award and waivers or accelerations thereof, and waivers of or
modifications to Performance Goals relating to an Award, based in each case on such considerations as the Committee shall determine)
and all other matters to be determined in connection with an Award; (iv) determine the exercise price or purchase price (if any)
of an Award; (v) determine whether, to what extent, and under what circumstances an Award may be cancelled, forfeited, or surrendered;
(vi) determine whether, and to certify that, Performance Goals to which an Award is subject are satisfied; (vii) correct any defect
or supply any omission or reconcile any inconsistency in the Plan, and adopt, amend and rescind such rules, regulations, guidelines,
forms of agreements and instruments relating to the Plan as it may deem necessary or advisable; (viii) construe and interpret the
Plan; and (ix) make all other determinations as it may deem necessary or advisable for the administration of the Plan; provided,
however, that the Committee shall be prohibited from effecting a repricing of any outstanding Award without shareholder approval.

 

4.3.           
To the extent permitted by applicable law, the Committee may delegate some or all of its authority with respect to the Plan
and Awards to any executive officer of the Company or any other person or persons designated by the Committee, in each case, acting
individually or as a committee, provided that the Committee may not delegate its authority hereunder to any person to make Awards
to (a) Employees who are (i) “officers” as defined in Rule 16a-1(f) under the Exchange Act, (ii) “covered employees”
within the meaning of Section 162(m) of the Code or (iii) officers or other Employees who are delegated authority by the Committee
pursuant to this Section or (b) members of the Board. Any delegation hereunder shall be subject to the restrictions and limits
that the Committee specifies at the time of such delegation or thereafter. The Committee may at any time rescind the authority
delegated to any person pursuant to this Section. Any action undertaken by any such person or persons in accordance with the Committee’s
delegation of authority pursuant to this Section shall have the same force and effect as if undertaken directly by the Committee.

 

Section 5.               
Shares of Common Stock Subject to the Plan.

 

5.1.           
Subject to adjustment as provided in Section 8 hereof, the total number of shares of Common Stock available for Awards under
the Plan as of the Effective Date shall be 2,500,000 (the “Plan Limit”); provided, however, that on January 1, 2015
and each January 1st thereafter prior to the termination of the Plan, the Plan Limit shall be increased by the lesser
of (x) 4% of the number of shares of Common Stock outstanding as of the immediately preceding December 31st and (y)
such lesser number as the Board may determine in its discretion. Up to 2,000,000 shares available for Awards under the Plan may
be issued pursuant to Incentive Stock Options, and no more than 1,250,000 shares may be awarded to any Participant in any one calendar
year. For purposes of determining the number of shares available for Awards under the Plan, each stock-settled SAR shall count
against the Plan Limit based on the number of shares underlying the exercised portion of such SAR rather than the number of shares
issued in settlement of such SAR. Any shares tendered, with the Committee’s approval, by a Participant in payment of an exercise
price for an Award or the tax liability with respect to an Award, including shares withheld from any such Award, shall not be available
for future Awards hereunder. Common Stock awarded under the Plan may be reserved or made available from the Company’s authorized
and unissued Common Stock or from Common Stock reacquired and held in the Company’s treasury. Any shares of Common Stock
issued by the Company through the assumption or substitution of outstanding grants from an acquired company shall not reduce the
shares of Common Stock available for Awards under the Plan.

 

5.2.           
If any shares subject to an Award under the Plan are forfeited or such Award otherwise terminates or is settled for any
reason whatsoever without an actual distribution of shares to the Participant, any shares counted against the number of shares
available for issuance pursuant to the Plan with respect to such Award shall, to the extent of any such forfeiture, settlement,
or termination, again be available for Awards under the Plan; provided, however, that the Committee may adopt procedures for the
counting of shares relating to any Award to ensure appropriate counting, avoid double counting, provide for adjustments in any
case in which the number of shares actually distributed differs from the number of shares previously counted in connection with
such Award, and if necessary, to comply with applicable law or regulations.

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Section 6.               
Awards. Awards may be granted on the terms and conditions set forth in this Section 6. In addition, the Committee
may impose on any Award or the settlement or exercise thereof, at the date of grant or thereafter, such additional terms and conditions,
not inconsistent with the provisions of the Plan, as the Committee shall determine, including without limitation terms requiring
forfeiture of Awards in the event of the termination of employment or other relationship with the Company or any Subsidiary by
the Participant; provided, however, that the Committee shall retain full power to accelerate or waive any such additional term
or condition as it may have previously imposed (provided that, in any case, any such action is permitted under Code Section 409A).
The right of a Participant to exercise or receive a grant or settlement of any Award, and the timing thereof, may be subject to
such Performance Goals as may be determined by the Committee. Each Award, and the terms and conditions applicable thereto, shall
be evidenced by an Award Agreement.

 

6.1.           
Options. Options give a Participant the right to purchase a specified number of shares of Common Stock from the Company
for a specified time period at a fixed exercise price, as provided in the applicable Award Agreement. Options may be either Incentive
Stock Options or Non-Qualified Stock Options; provided that Incentive Stock Options may not be granted to Non-Employee Directors
or Consultants. The grant of Options shall be subject to the following terms and conditions:

 

(a)               
Exercise Price. The price per share at which Common Stock may be purchased upon exercise of an Option shall be determined
by the Committee and specified in the Award Agreement, but shall be not less than the Fair Market Value of a share of Common Stock
on the date of grant (or 110% of the Fair Market Value of a share of Common Stock on the date of grant in the case of an Incentive
Stock Option granted to a Ten Percent Shareholder).

 

(b)              
Term of Options. The term of an Option shall be specified in the Award Agreement, but shall in no event be greater
than ten years from the grant date (or five years from the grant date in the case of an Incentive Stock Option granted to a Ten
Percent Shareholder).

 

(c)               
Exercise of Option. Each Award Agreement with respect to an Option shall specify the time or times at which an Option
may be exercised in whole or in part and the terms and conditions applicable thereto, including (i) a vesting schedule which may
be based upon the passage of time, attainment of Performance Goals or a combination thereof, (ii) whether the exercise price for
an Option shall be paid in cash, with shares of Common Stock, with any combination of cash and shares of Common Stock, or with
other legal consideration that the Committee may deem appropriate, (iii) the methods of payment, which may include payment through
cashless and net exercise arrangements, to the extent permitted by applicable law and (iv) the methods by which, or the time or
times at which, Common Stock will be delivered or deemed to be delivered to Participants upon the exercise of such Option. Payment
of the exercise price shall in all events be made within three days after the date of exercise of an Option. With respect to any
Participant who is subject to Section 16 of the Exchange Act, such Participant may direct the Company to reduce the number of Shares
that would otherwise be deliverable upon the exercise of his or her Option having a Fair Market Value on the date of exercise equal
to the exercise price of the portion of the Option then being exercised.

 

(d)              
Termination of Employment or Other Service. Unless otherwise provided in an Award Agreement, upon a Participant’s
termination of employment or other service with the Company and its Subsidiaries, the unvested portion of such Participant’s
Options shall cease to vest and shall be forfeited and the vested portion of such Participant’s Options shall remain exercisable
by the Participant or the Participant’s beneficiary or legal representative, as the case may be, for a period of (i) 30 days
in the event of a termination by the Company or a Subsidiary without Cause, (ii) 180 days in the event of a termination due to
death or Disability and (iii) 30 days in the event of the Participant’s voluntary termination; provided, however, that in
no event shall any Option be exercisable after its stated term has expired. All of a Participant’s Options, whether or not
vested, shall be forfeited immediately upon such Participant’s termination by the Company or a Subsidiary for Cause.

 

(e)               
Incentive Stock Options. Each Participant awarded an Incentive Stock Option under the Plan shall notify the Company
in writing immediately after the date he or she makes a “disqualifying disposition” (as defined in Section 421(b) of
the Code) of any shares of Common Stock acquired pursuant to the exercise of such Incentive Stock Option. The Company may, if determined
by the Committee and in accordance with procedures established by it, retain possession of any shares acquired pursuant to the
exercise of an Incentive Stock Option as agent for the applicable Participant until the end of any period during which a disqualifying
disposition could occur, subject to complying with any instructions from such Participant as to the sale of such shares. The aggregate
Fair Market Value, determined as of the date of grant, for Awards granted under the Plan (or any other stock option plan required
to be taken into account under Section 422(d) of the Code) that are intended to be Incentive Stock Options which are first exercisable
by the Participant during any calendar year shall not exceed $100,000. To the extent an Award purporting to be an Incentive Stock
Option exceeds the limitation in the previous sentence, the portion of the Award in excess of such limit shall be a Non-Qualified
Option.  

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6.2.           
Stock Appreciation Rights. An SAR shall confer on the Participant a right to receive, upon exercise thereof, the
excess of (i) the Fair Market Value of one share of Common Stock on the date of exercise over (ii) the grant price of the SAR as
determined by the Committee, but which may never be less than the Fair Market Value of one share of Common Stock on the date of
grant. The grant of SARs shall be subject to the following terms and conditions:

 

(a)               
General. Each Award Agreement with respect to an SAR shall specify the number of SARs granted, the grant price of
the SAR, the time or times at which an SAR may be exercised in whole or in part (including vesting upon the passage of time, the
attainment of Performance Goals, or a combination thereof), the method of exercise, method of settlement (in cash, Common Stock
or a combination thereof), method by which Common Stock will be delivered or deemed to be delivered to Participants (if applicable)
and any other terms and conditions of any SAR.

 

(b)              
Termination of Employment or Other Service. Unless otherwise provided in an Award Agreement, upon a
Participant’s termination of employment or other service with the Company and its Subsidiaries, the unvested portion of such
Participant’s SARs shall cease to vest and shall be forfeited and the vested portion of such Participant’s SARs shall
remain exercisable by the Participant or the Participant’s beneficiary or legal representative, as the case may be, for a
period of (i) 30 days in the event of a termination by the Company or a Subsidiary without Cause, (ii) 180 days in the event of
a termination due to death or Disability and (iii) 30 days in the event of the Participant’s voluntary termination; provided,
however, that in no event shall any SAR be exercisable after its stated term has expired. All of a Participant’s SARs, whether
or not vested, shall be forfeited immediately upon such Participant’s termination by the Company or a Subsidiary for Cause.

 

(c)               
Term. The term of an SAR shall be specified in the Award Agreement, but shall in no event be greater than ten years.

 

6.3.           
Restricted Stock. An Award of Restricted Stock is a grant by the Company of a specified number of shares of Common
Stock to the Participant, which shares are subject to forfeiture upon the happening of specified events during the Restriction
Period. Such an Award shall be subject to the following terms and conditions:

 

(a)               
General. Each Award Agreement with respect to Restricted Stock shall specify the duration of the Restriction Period
and/or each installment thereof, the conditions under which the Restricted Stock may be forfeited to the Company, and the amount,
if any, the Participant must pay to receive the Restricted Stock. Such restrictions may include a vesting schedule based upon the
passage of time, the attainment of Performance Goals or a combination thereof.

 

(b)              
Transferability. During the Restriction Period, the transferability of Restricted Stock shall be prohibited or restricted
in the manner and to the extent prescribed in the applicable Award Agreement. Such restrictions may include, without limitation,
rights of repurchase or first refusal in the Company or provisions subjecting the Restricted Stock to a continuing substantial
risk of forfeiture in the hands of any transferee.

 

(c)               
Shareholder Rights. Unless otherwise provided in the applicable Award Agreement, during the Restriction Period the
Participant shall have all the rights of a shareholder with respect to Restricted Stock, including, without limitation, the right
to receive dividends thereon (whether in cash or shares of Common Stock) and to vote such shares of Restricted Stock; provided,
however, that dividends shall be subject to the same restrictions as the underlying Restricted Stock (unless otherwise provided
by the Committee in the Award Agreement) and cash dividends shall be held by the Company in its general assets and released to
the Participant only upon the vesting of the underlying Restricted Stock (unless otherwise provided by the Committee in the Award
Agreement).

 

(d)              
Termination of Employment or Other Service. Unless otherwise provided in the applicable Award Agreement,
upon a Participant’s termination of employment or other service with the Company and its Subsidiaries for any reason, the
unvested portion of each Award of Restricted Stock held by such Participant shall be forfeited with no compensation due the Participant.

 

(e)               
Additional Matters. Upon the Award of Restricted Stock, the Committee may direct the number of shares of Common Stock
subject to such Award be issued to the Participant or placed in a restricted stock account (including an electronic account) with
the transfer agent and in either case designating the Participant as the registered owner. The certificate(s), if any, representing
such shares shall be physically or electronically legended, as applicable, as to sale, transfer, assignment, pledge or other encumbrances
during the Restriction Period and, if issued to the Participant, returned to the Company to be held in escrow during the Restriction
Period. In all cases, the Participant shall sign a stock power endorsed in blank to the Company to be held in escrow during the
Restriction Period.

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6.4.           
Restricted Stock Units. Restricted Stock Units are solely a device for the measurement and determination of the amounts
to be paid to a Participant under the Plan. Restricted Stock Units do not constitute Common Stock and shall not be treated as (or
as giving rise to) property or as a trust fund of any kind; provided, however, that the Company may establish a bookkeeping reserve
to meet its obligations hereunder or a trust or other funding vehicle that would not cause the Plan to be deemed to be funded for
tax purposes or for purposes of Title I of the Employee Retirement Income Security Act of 1974, as amended. The right of any Participant
in respect of an Award of Restricted Stock Units shall be no greater than the right of any unsecured general creditor of the Company.
 The grant of Restricted Stock Units shall be subject to the following terms and conditions:

 

(a)               
Restriction Period. Each Award Agreement with respect to Restricted Stock Units shall specify the duration of the
Restriction Period, if any, and/or each installment thereof and the conditions under which such Award may be forfeited to the Company.
Such restrictions may include a vesting schedule based upon the passage of time, the attainment of Performance Goals or a combination
thereof.

 

(b)              
Termination of Employment or Other Service. Unless otherwise provided in the applicable Award Agreement, upon
a Participant’s termination of employment or other service with the Company and its Subsidiaries for any reason, the unvested
portion of each Award of Restricted Stock Units credited to such Participant shall be forfeited with no compensation due the Participant.

 

(c)               
Settlement. Unless otherwise provided in an Award Agreement (i) an Award of Restricted Stock Units shall be settled
in shares of Common Stock, provided that any fractional Restricted Stock Units shall be settled in cash and (ii) subject to the
Participant’s continued employment or other service with the Company or a Subsidiary from the date of grant through the expiration
of the Restriction Period (or applicable portion thereof), the vested portion of an Award of Restricted Stock Units shall be settled
within 30 days after the expiration of the Restriction Period (or applicable portion thereof).

 

(d)              
Shareholder Rights. Nothing contained in the Plan shall be construed to give any Participant rights as a shareholder
with respect to an Award of Restricted Stock Units (including, without limitation, any voting, dividend or derivative or other
similar rights). Notwithstanding the foregoing, the Committee may provide in an Award Agreement that amounts equal to any dividends
declared during the Restriction Period on the shares of Common Stock represented by an Award of Restricted Stock Units will be
credited to the Participant’s account and deemed to be reinvested in additional Restricted Stock Units, such additional Restricted
Stock Units to be subject to the same forfeiture restrictions and settlement date as the Restricted Stock Units to which they relate.

 

6.5.           
Other Stock-Based Awards. The Committee is authorized, subject to limitations under applicable law, to grant to Participants
any type of Award (in addition to those Awards provided in Sections 6.1, 6.2, 6.3 or 6.4 hereof) that is payable in, or valued
in whole or in part by reference to, shares of Common Stock, and that is deemed by the Committee to be consistent with the purposes
of the Plan, including, without limitation, dividend equivalents, performance shares and performance units (“Other Awards”).

 

Section 7.               
Change in Control.

 

7.1.           
General. Notwithstanding any provision in the Plan to the contrary, upon the occurrence of a Change in Control, the
Committee, in its discretion, may accelerate the vesting and, if applicable, exercisability of all outstanding Awards such that
all outstanding Awards are fully vested and, if applicable, exercisable (effective immediately prior to such Change in Control)
and may determine whether all applicable Performance Goals have been achieved and the applicable level of performance.

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7.2.           
Options and SARs. Notwithstanding any provision in the Plan to the contrary, upon the occurrence of a Change in Control,
the Committee, in its discretion, may take one or more of the following actions with respect to Options and SARs that are outstanding
as of such Change in Control: (a) cancel any outstanding Options or SARs in exchange for a cash payment in an amount equal to the
excess, if any, of the Fair Market Value of the Common Stock underlying the unexercised portion of the Option or SAR as of the
date of the Change in Control over the exercise price or grant price, as the case may be, of such portion, provided that any Option
or SAR with an exercise price or grant price, as the case may be, that equals or exceeds the Fair Market Value of the Common Stock
on the date of such Change in Control shall be cancelled with no payment due the Participant; (b) terminate any Option or SAR,
effectively immediately prior to the Change in Control, provided that the Company provides the Participant an opportunity to exercise
such Award within a specified period following the Participant’s receipt of a written notice of such Change in Control and
the Company’s intention to terminate such Awards, effective immediately prior to such Change in Control; (c) terminate any
Options or SARs, the Performance Goals of which have not been satisfied as of the Change in Control, (d) require the successor
or acquiring company (or its parents or subsidiaries), following a Change in Control, to assume any outstanding Option or SAR and
to substitute such Option or SAR with awards involving the common equity securities of such company on terms and conditions necessary
to preserve the rights of Participants with respect to such Options or SARs or (e) take such other actions as the Committee believes
may be appropriate.

 

7.3.           
Restricted Stock, Restricted Stock Units and Other Awards. With respect to Restricted Stock, Restricted Stock Units
or Other Awards, the Committee generally may (a) provide in an Award that, upon the occurrence of a Change in Control, any vested
Restricted Stock, Restricted Stock Units and Other Awards shall become immediately vested and/or payable, provided that if such
Awards constitute “non-qualified deferred compensation” (within the meaning of Code Section 409A) such Change in Control
satisfies the requirements of Treasury Regulation Section 1.409A-3(i)(5)(v), (vi) or (vii); (b) with respect to any Restricted
Stock, Restricted Stock Units or Other Awards that do not constitute “non-qualified deferred compensation,” elect to
settle such Restricted Stock, Restricted Stock Units and Other Awards upon a Change in Control, (c) terminate any Restricted Stock,
Restricted Stock Units or Other Awards if the applicable Performance Goals were not satisfied as of the Change in Control, (d)
require the successor or acquiring company (or its parents or subsidiaries), following a Change in Control, to assume such Restricted
Stock, Restricted Stock Units and Other Awards or to substitute such Awards with awards involving the equity securities of the
acquiring or successor company on terms and conditions so as to preserve the rights of participants, or (e) to the extent permitted
by Code Section 409A, take such other actions as the Committee believes may be appropriate (including terminating such Awards for
a cash payment equal to the fair market value of the underlying shares).

 

The judgment of the Committee with respect
to any matter referred to in this Section 7 shall be conclusive and binding upon each Participant without the need for any amendment
to the Plan.

 

Section 8.               
Adjustments upon Changes in Capitalization.

 

8.1.           
In order to prevent dilution or enlargement of the rights of Participants under the Plan as a result of any stock dividend,
recapitalization, forward stock split or reverse stock split, reorganization, division, merger, consolidation, spin-off, combination,
repurchase or share exchange, extraordinary or unusual cash distribution or other similar corporate transaction or event that affects
the Common Stock, the Committee shall adjust (i) the number and kind of shares of Common Stock which may thereafter be issued in
connection with Awards, (ii) the number and kind of shares of Common Stock issuable in respect of outstanding Awards, (iii) the
aggregate number and kind of shares of Common Stock available under the Plan (including any of the specific limitations under Section
5 hereof), and (iv) the exercise or grant price relating to any Award. Any such adjustment shall be made in an equitable manner
which reflects the effect of such transaction or event. It is provided, however, that in the case of any such transaction or event,
the Committee may make any additional adjustments to the items in (i) through (iv) above which it deems appropriate in the circumstances,
or make provision for a cash payment with respect to any outstanding Award; and it is provided, further, that no adjustment shall
be made under this Section that would cause the Plan to violate Section 422 of the Code with respect to Incentive Stock Options
or that would adversely affect the status of any Award that is “performance-based compensation” under Section 162(m)
of the Code.

    	9

    	 

    

 

8.2.           
In addition, the Committee is authorized to make adjustments in the terms and conditions of, and the criteria included in,
Awards, including any Performance Goals, in recognition of unusual or nonrecurring events (including, without limitation, events
described in Section 8.1) affecting the Company or any Subsidiary, or in response to changes in applicable laws, regulations, or
accounting principles. Notwithstanding the foregoing, all adjustments shall be made in accordance with Section 409A of the Code
and the regulations thereunder to the extent applicable, and with respect to any Award that is “performance-based compensation”
under Section 162(m) of the Code, in accordance with Section 162(m) of the Code.

 

Section 9.               
Termination and Amendment.

 

9.1.           
Changes to the Plan and Awards. The Board may amend, alter, suspend, discontinue, or terminate the Plan without the
consent of the Company’s shareholders or Participants, except that any such amendment, alteration, suspension, discontinuation,
or termination shall be subject to the approval of the Company’s shareholders if (i) such action would increase the number
of shares subject to the Plan, (ii) such action would decrease the price at which Awards may be granted, or (iii) such shareholder
approval is required by any applicable federal, state or foreign law or regulation or the rules of any stock exchange or automated
quotation system on which the Common Stock may then be listed or quoted, and the Board may otherwise, in its discretion, determine
to submit such other changes to the Plan to the Company’s shareholders for approval; provided, however, that except as provided
in Section 18, without the consent of an affected Participant, no amendment, alteration, suspension, discontinuation, or termination
of the Plan may materially and adversely affect the rights of such Participant under any outstanding Award unless such modification
is necessary to ensure a deduction under Section 162(m) of the Code or to avoid the additional tax described in Section 409A of
the Code.

 

9.2.           
The Committee may waive any conditions or rights under, or amend, alter, suspend, discontinue, or terminate, any Award theretofore
granted and any Award Agreement relating thereto; provided, however, that except as provided in Section 18, without the consent
of an affected Participant, no such amendment, alteration, suspension, discontinuation, or termination of any Award may materially
and adversely affect the rights of such Participant under such Award unless such modification is necessary to ensure a deduction
under Section 162(m) of the Code or to avoid the additional tax described in Section 409A of the Code.

 

9.3.           
Notwithstanding anything in this Section 9 to the contrary, any Performance Goal applicable to an Award shall not be deemed
a fixed contractual term, but shall remain subject to adjustment by the Committee, in its discretion at any time in view of the
Committee’s assessment of the Company’s strategy, performance of comparable companies, and other circumstances, except
to the extent that any such adjustment to a performance condition would adversely affect the status of an Award intended to satisfy
the “qualified performance-based compensation” exception under Section 162(m) of the Code and the regulations thereunder.

 

9.4.           
Notwithstanding anything in the Plan or an Award Agreement to the contrary, no Award may be repriced, replaced or regranted
through cancellation without the approval of the shareholders of the Company, provided that nothing herein shall prevent the Committee
from taking any action provided for in Section 8.

 

Section 10.           
No Right to Award, Employment or Service. No Participant shall have any claim to be granted any Award under the Plan,
and there is no obligation that the terms of Awards be uniform or consistent among Participants. Neither the Plan nor any action
taken hereunder shall be construed as giving any Participant any right to be retained in the employ or service of the Company or
any Subsidiary. For purposes of this Plan, a transfer of employment or service between the Company and its Subsidiaries shall not
be deemed a termination of employment or service; provided, however, that individuals employed by, or otherwise providing services
to, an entity that ceases to be a Subsidiary shall be deemed to have incurred a termination of employment or service, as the case
may be, as of the date such entity ceases to be a Subsidiary unless such individual becomes an employee of, or service provider
to, the Company or another Subsidiary as of the date of such cessation.

 

Section 11.           
Taxes. Each Participant must make appropriate arrangement for the payment of any taxes relating to an Award granted
hereunder. The Company or any Subsidiary is authorized to withhold from any payment relating to an Award under the Plan, including
from a distribution of Common Stock or any payroll or other payment to a Participant, amounts of withholding and other taxes due
in connection with any transaction involving an Award, and to take such other action as the Committee may deem advisable to enable
the Company and Participants to satisfy obligations for the payment of withholding taxes and other tax obligations relating to
any Award. This authority shall include the ability to withhold or receive Common Stock or other property and to make cash payments
in respect thereof in satisfaction of a Participant’s tax obligations. Withholding of taxes in the form of shares of Common
Stock with respect to an Award shall not occur at a rate that exceeds the minimum required statutory federal and state withholding
rates.

    	10

    	 

    

 

Section 12.           
Limits on Transferability; Beneficiaries. No Award or other right or interest of a Participant under the Plan shall
be pledged, encumbered, or hypothecated to, or in favor of, or subject to any lien, obligation, or liability of such Participant
to, any party, other than the Company or any Subsidiary, or assigned or transferred by such Participant otherwise than by will
or the laws of descent and distribution, and such Awards and rights shall be exercisable during the lifetime of the Participant
only by the Participant or his or her guardian or legal representative. Notwithstanding the foregoing, the Committee may, in its
discretion, provide that Options, SARs and Restricted Stock be transferable, without consideration, to immediate family members
(i.e., children, grandchildren or spouse), to trusts for the benefit of such immediate family members and to partnerships in which
such family members are the only partners (any vesting conditions shall be unaffected by such transfer). The Committee may attach
to such transferability feature such terms and conditions as it deems advisable. In addition, a Participant may, in the manner
established by the Committee, designate a beneficiary (which may be a person or a trust) to exercise the rights of the Participant,
and to receive any distribution, with respect to any Award upon the death of the Participant. A beneficiary, guardian, legal representative
or other person claiming any rights under the Plan from or through any Participant shall be subject to all terms and conditions
of the Plan and any Award Agreement applicable to such Participant, except as otherwise determined by the Committee, and to any
additional restrictions deemed necessary or appropriate by the Committee.

 

Section 13.           
Foreign Nationals. Without amending the Plan, Awards may be granted to Employees, Consultants and Non-Employee Directors
who are foreign nationals or are employed or providing services outside the United States or both, on such terms and conditions
different from those specified in the Plan as may, in the judgment of the Committee, be necessary or desirable to further the purpose
of the Plan. Moreover, the Committee may approve such supplements to, or amendments, restatements or alternative versions of, the
Plan as it may consider necessary or appropriate for such purposes without thereby affecting the terms of the Plan as in effect
for any other purpose, provided that no such supplements, amendments, restatements or alternative versions shall include any provisions
that are inconsistent with the terms of the Plan, as then in effect, unless the Plan could have been amended to eliminate such
inconsistency without further approval by the stockholders of the Company.

 

Section 14.           
Securities Law Requirements.

 

14.1.       
No shares of Common Stock may be issued hereunder if the Company shall at any time determine that to do so would (i) violate
the listing requirements of an applicable securities exchange, or adversely affect the registration or qualification of the Company’s
Common Stock under any state or federal law, or (ii) require the consent or approval of any regulatory body or the satisfaction
of withholding tax or other withholding liabilities. In any of the events referred to in clause (i) or clause (ii) above, the issuance
of such shares shall be suspended and shall not be effective unless and until such withholding, listing, registration, qualifications
or approval shall have been effected or obtained free of any conditions not acceptable to the Company in its sole discretion, notwithstanding
any termination of any Award or any portion of any Award during the period when issuance has been suspended.

 

14.2.       
The Committee may require, as a condition to the issuance of shares hereunder, representations, warranties and agreements
to the effect that such shares are being purchased or acquired by the Participant for investment only and without any present intention
to sell or otherwise distribute such shares and that the Participant will not dispose of such shares in transactions which, in
the opinion of counsel to the Company, would violate the registration provisions of the Securities Act, and the rules and regulations
thereunder.

 

Section 15.           
Termination. Unless earlier terminated, the Plan shall terminate on the earlier of the 10-year anniversary of the
Effective Date or the 10-year anniversary of the date the Plan was approved by the Board, and no Awards under the Plan shall thereafter
be granted.

 

Section 16.           
Fractional Shares. The Company will not be required to issue any fractional shares of Common Stock pursuant to the
Plan. The Committee may provide for the elimination of fractions and settlement of such fractional shares of Common Stock in cash.

    	11

    	 

    

 

Section 17.           
Discretion. In exercising, or declining to exercise, any grant of authority or discretion hereunder, the Committee
may consider or ignore such factors or circumstances and may accord such weight to such factors and circumstances as the Committee
alone and in its sole judgment deems appropriate and without regard to the effect such exercise, or declining to exercise such
grant of authority or discretion, would have upon the affected Participant, any other Participant, any Employee, the Company,
any Subsidiary, any affiliate, any shareholder or any other person.

 

Section 18.           
Code Section 409A. The Plan and all Awards are intended to comply with, or be exempt from, Code Section 409A and
all regulations, guidance, compliance programs and other interpretative authority thereunder, and shall be interpreted in a manner
consistent therewith. Notwithstanding anything contained herein to the contrary, in the event any Award is subject to Code Section 409A,
the Committee may, in its sole discretion and without a Participant’s prior consent, amend the Plan and/or Award, adopt policies
and procedures, or take any other actions as deemed appropriate by the Committee to (i) exempt the Plan and/or any Award from
the application of Code Section 409A, (ii) preserve the intended tax treatment of any such Award or (iii) comply
with the requirements of Code Section 409A. Notwithstanding anything contained in the Plan or in an Award Agreement to the
contrary, neither the Company, any member of the Committee nor any Subsidiary shall have any liability or obligation to any Participant
or any other person for taxes, interest, penalties or fines (including any of the foregoing resulting from the failure of any Award
granted hereunder to comply with, or be exempt from, Code Section 409A).

 

Section 19.           
Governing Law. The validity and construction of the Plan and any Award Agreements entered into thereunder shall be
construed and enforced in accordance with the laws of the State of Delaware, but without giving effect to the conflict of laws
principles thereof.

 

Section 20.           
Recoupment. Any Award granted pursuant to the Plan shall be subject to mandatory repayment by the Participant to
the Company pursuant to the terms of any Company “clawback” or recoupment policy directly applicable to the Plan and
(i) set forth in the Participant’s Award Agreement or (ii) required by law to be applicable to the Participant.

 

Section 21.           
Effective Date. The Plan shall become effective upon the Effective Date, and no Award shall become exercisable, realizable
or vested prior to the Effective Date.

 

    	12

    	 

    

 

STOCK OPTION AGREEMENT

UNDER THE EDGE THERAPEUTICS, INC.

2014 EQUITY INCENTIVE PLAN

 

THIS STOCK OPTION
AGREEMENT (this “Agreement”) between Edge Therapeutics, Inc. (the “Corporation”
or the “Company”) and the individual specified on the Notice of Grant (the “Optionee”)
is made as of the date of grant specified on the Notice of Grant to which this Agreement is attached (the “Grant
Notice”). The date of grant specified on the Grant Notice is referred to herein as the “Grant Date.”

 

RECITALS

 

WHEREAS, the Corporation
maintains the Edge Therapeutics, Inc. 2014 Equity Incentive Plan (the “Plan”) for the benefit of its
employees, directors and consultants; and

 

WHEREAS, the Plan
permits the Corporation to award options with respect to shares of the Corporation’s common stock, $0.00033 par value per
share (“Shares”), subject to the terms of the Plan.

 

NOW, THEREFORE, in
consideration of these premises and the agreements set forth herein, the parties, intending to be legally bound hereby, agree as
follows:

 

1.                 
Award of Option. The Corporation hereby grants to the Optionee, as of the Grant Date, the option (the “Option”)
to purchase the number of Shares specified on the Grant Notice (the “Option Shares”). The Option
is subject to the terms set forth herein, and the terms of the Plan, which terms and provisions are incorporated herein by reference.
Except as otherwise specified herein or unless the context requires otherwise, capitalized terms used but not otherwise defined
herein shall have the meanings ascribed to such terms in the Plan.

 

2.                 
Type of Option. If the Grant Notice indicates that the grant type is “ISO,” then the Option is intended
to be an Incentive Stock Option described by Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”).
Notwithstanding the designation of this Option as either an Incentive Stock Option or non-qualified stock option, the Corporation
makes no representation as to the treatment of the Option under any federal, state, local or foreign tax law and the Corporation
has not advised the Optionee on such matters. If the Grant Notice does not specify the grant type as “ISO,” or if any
portion of the Option cannot qualify as an Incentive Stock Option, then the Option (or such portion of the Option, as applicable)
shall not be an Incentive Stock Option.

 

3.                 
Term of Option.

 

(a)               
Term. The term of the Option shall commence on the Grant Date and end on the Expiration Date specified on the Grant
Notice, or on such earlier date as provided in the Plan and Section 3(b), below (the “Term”).

 

(b)              
Termination of Employment. Upon the Optionee’s termination of employment with the Company and its Subsidiaries,
the unvested portion of the Option shall cease to vest and shall be forfeited and the vested portion of the Option shall remain
exercisable by the Optionee or the Optionee’s beneficiary or legal representative, as the case may be, for a period of (i)
30 days in the event of a termination by the Company or a Subsidiary without Cause, (ii) 180 days in the event of a termination
due to death or Disability and (iii) 30 days in the event of the Optionee’s resignation; provided, however, that no part
of the Option shall be exercisable after the Expiration Date. The entire unexercised portion of the Option, whether or not vested,
shall be forfeited immediately upon the Optionee’s termination by the Company or a Subsidiary for Cause.

 

    	 

    	 

    

4.                 
Exercise Price. The cost to the Optionee to purchase, pursuant to this Agreement, one Option Share is the Exercise
Price specified on the Grant Notice (subject to adjustment as set forth in the Plan).

 

5.                 
Exercise of Option. The Option will be exercisable during the Term only to the extent that it is then vested and
then only in accordance with the terms and provisions of the Plan and this Agreement.

 

(a)               
Vesting. The Option will vest and become exercisable in accordance with the vesting schedule set forth on the Grant
Notice. Upon the Optionee’s termination of employment with the Corporation and its Subsidiaries for any reason, the unvested
portion of the Option shall be immediately forfeited with no consideration due to the Optionee.

 

(b)              
Method of Exercise. The Optionee may exercise the Option by providing written notice to the Corporation stating the
election to exercise the Option, and making such additional representations and agreements as to the Optionee’s investment
intent with respect to the Option Shares as may be required by the Corporation hereunder or pursuant to the provisions of the Plan.
Such written notice shall be signed by the Optionee and shall be delivered in person or by certified mail to the Secretary of the
Corporation or such other Person as may be designated by the Corporation. The written notice shall be accompanied by (i) payment
of the Exercise Price, (ii) an executed Stockholders’ Agreement, as may be in effect from time to time, or joinder thereto,
and such other agreements as the Corporation may require, and (iii) payment of all applicable withholding taxes. Payment of the
purchase price shall be by cash, or certified or bank check or such other consideration and method of payment as may be authorized
by the Committee pursuant to the Plan. Following exercise, any certificate(s) for Option Shares shall be registered in the name
of the Optionee (or his or her heirs or beneficiary, as applicable) and shall be legended as required under the Plan, this Agreement,
any applicable Stockholders’ Agreement(s) and/or applicable law. The Option shall be considered exercised on the last date
on which the Corporation has received all of the items (i) through (iii) of this Section 5(b).

 

(c)               
Partial Exercise. The Option, to the extent vested, may be exercised in whole or in part; provided, however, that
any exercise may apply only with respect to whole numbers of Option Shares.

 

(d)              
Restrictions on Exercise. The Option may not be exercised on an accelerated basis upon an initial public offering
of the Corporation’s Shares or other securities. Upon a Change in Control, the right to exercise the Option shall be subject
to Sections 7.1 and 7.2 of the Plan. The Option shall not be exercised if the issuance of the Option Shares upon such exercise
would constitute a violation of any applicable federal or state securities laws or other laws or regulations. As a further condition
to the exercise of the Option, and in addition to any requirements of Section 5(b), Section 6 or Section 8 hereof, the Corporation
may require the Optionee to make any other representation or warranty to the Corporation as may be required by or advisable under
any applicable law or regulation.

 

(e)               
Termination of Option. Upon the end of the Term, any portion of the Option that remains unexercised shall be forfeited
and cancelled with no consideration due to the Optionee.

 

6.                 
Investment Representations. Unless the Option Shares have been registered under the Securities Act of 1933, the Optionee
represents and warrants to the Corporation as follows:

 

(a)               
The Optionee is acquiring the Option, and upon exercise of the Option, the Optionee will be acquiring the Option Shares
for investment for the Optionee’s own account, not as a nominee or agent, and not with a view to or for resale in connection
with any distribution thereof.

 

(b)              
The Optionee has a preexisting business or personal relationship with the Corporation or one of its directors, officers
or controlling Persons and by reason of the Optionee’s business or financial experience, has, and could be reasonably assumed
to have, the capacity to protect the Optionee’s interests in connection with the acquisition of the Option and the Option
Shares.

 

(c)               
The Corporation may require the Optionee to make additional representations upon exercise of the Option or any portion thereof.

 

    	2

    	 

    

7.                 
Non-Transferability of Option. The Option may not be sold, pledged, assigned, hypothecated, gifted, transferred or
disposed of in any manner either voluntarily or involuntarily by operation of law, other than by will or by the laws of descent
and distribution. During the Optionee’s lifetime, the Option is exercisable only by the Optionee. If the Optionee dies during
the Term, the terms of this Agreement and the Plan will be binding upon the executors, administrators, legal guardians, representatives,
estate and heirs of the Optionee, whether testamentary heirs or heirs by intestacy.

 

8.                 
Restrictions on Option Shares.

 

(a)               
Restrictions on Transfer. The Optionee is not permitted to, in any manner, sell, transfer, assign, donate, pledge,
encumber, or otherwise dispose of any Option Share (any such transaction being referred to herein as a “Transfer”),
except as permitted by and made in accordance with this Agreement.

 

(b)              
Conditions on All Transfers of Option Shares. Notwithstanding anything to the contrary contained in this Section
8, and in addition to any other terms and conditions of this Agreement, no Transfer of an Option Share shall be made, or, if attempted
or purported to be made, shall be effective, unless and until the Corporation is satisfied that the Transfer will not violate any
federal or state securities law or any other law or agreement (including this Agreement). If the Transfer would violate any such
law or agreement and the Optionee nevertheless attempts or purports to engage in a Transfer of Option Shares, then the Corporation
shall not recognize such Transfer on the books and records of the Corporation and such Transfer will be void. In addition, the
Optionee will be liable to the Corporation and the other stockholders of the Corporation for damages, if any, which may result
from such attempted or purported Transfer.

 

(c)               
Legend. All certificates representing Option Shares shall have a legend endorsed thereon in substantially the following
form:

 

THE SECURITIES REPRESENTED BY
THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR ANY STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE PLEDGED, HYPOTHECATED, SOLD OR TRANSFERRED
IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS OR AN OPINION
OF COUNSEL SATISFACTORY TO THE CORPORATION THAT SUCH PLEDGE, HYPOTHECATION, SALE OR TRANSFER IS EXEMPT THEREFROM UNDER THE SECURITIES
ACT AND APPLICABLE STATE SECURITIES LAWS.

 

THE SECURITIES
REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER, REPURCHASE RIGHTS, AND/OR FORFEITURE CONDITIONS
AS SET FORTH IN THE EDGE THERAPEUTICS, INC. 2014 EQUITY INCENTIVE PLAN, AN OPTION AGREEMENT, A STOCKHOLDERS’ (OR SIMILAR)
AGREEMENT(S), AND/OR OTHER AGREEMENTS AND MAY NOT BE SOLD, EXCHANGED, TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED
OF EXCEPT IN ACCORDANCE WITH AND SUBJECT TO ALL THE TERMS AND CONDITIONS OF SUCH DOCUMENTS AND AGREEMENTS. COPIES OF SUCH DOCUMENTS
AND AGREEMENTS ARE ON FILE AT THE PRINCIPAL OFFICE OF THE CORPORATION AND WILL BE FURNISHED UPON REQUEST TO THE HOLDER OF RECORD
OF THE SHARES REPRESENTED BY THIS CERTIFICATE WITHOUT CHARGE.

 

(d)              
Right of First Refusal.

 

(i)                
If the Optionee shall obtain a bona fide written offer (the “Offer”) for the Transfer of
Shares, whether or not acquired pursuant to the Option, held by the Optionee (the Shares specified in such Offer shall be referred
to herein as the “Offered Shares”) for a fixed price which the Optionee desires to accept, the Optionee
shall deliver prompt written notice (“Notice”) of such desire to the Corporation together with a copy
of the Offer. The Notice shall set forth the following: (i) the date of the Offer; (ii) the proposed price per Share; (iii) the
proposed number of Shares to be subject to the Transfer; (iv) the name or names of the proposed purchaser or purchasers; and (v)
all other material terms and conditions of the proposed Transfer. The Corporation shall consider the Notice in accordance with
this Section 8(d).

 

    	3

    	 

    

(ii)              
The Corporation (or an assignee of the Corporation’s rights under this Section 8(d), the Corporation and any such
assignee being referred to in this Section 8(d), collectively or separately, as the context may dictate, as the “Corporation”)
shall have the option, exercisable by written notice to the Optionee within sixty (60) days after the date on which the Corporation
receives the Notice, to purchase the Offered Shares or any portion of the Offered Shares upon the price and the terms set forth
in the Offer.

 

(iii)            
If the Corporation does not purchase all of the Offered Shares pursuant to this Section 8(d), the Optionee may complete
the Transfer of the Offered Shares (or any portion thereof) not so purchased only to the proposed purchaser or purchasers who made
the Offer and only on the terms contained in the Offer, provided that the proposed purchaser or purchasers agree in writing to
be bound by a stock restriction agreement with terms and conditions substantially similar to Section 8 of this Agreement and, provided
further, that such Transfer can be made in conformity with the other provisions of this Agreement. If such Transfer does not occur
within ninety (90) days after the date of the Offer, the Optionee shall, prior to any Transfer, again offer to sell such Shares
to the Corporation in accordance with this Section 8(d).

 

(iv)            
The Corporation’s rights under this Section 8(d) shall terminate upon the issuance of the Corporation’s Shares
in an initial public offering.

 

9.                 
Optionee Covenant; Market Standoff Agreement.

 

(a)               
General. The Optionee hereby agrees that the Optionee will not, without the prior written consent of the managing
underwriter, during the period commencing on the date of the final prospectus relating to the Corporation’s first underwritten
public offering of its common stock under the Securities Act of 1933, as amended (the “Securities Act”,
and such offering, an “IPO”), and ending on the date specified by the Corporation and the managing underwriter
(such period not to exceed one hundred eighty (180) days in the case of an IPO, which period may be extended upon the request of
the managing underwriter for an additional period of up to fifteen (15) days if the Corporation issues or proposes to issue an
earnings or other public release within fifteen (15) days of the expiration of the 180-day lockup period), will not offer, sell,
contract to sell, pledge or otherwise dispose of, directly or indirectly, any Shares or securities convertible into or exchangeable
or exercisable for any Shares, enter into a transaction which would have the same effect, or enter into any swap, hedge or other
arrangement that transfers, in whole or in part, any of the economic consequences of ownership of the Shares, whether any such
aforementioned transaction is to be settled by delivery of the Shares or such other securities, in cash or otherwise, or publicly
disclose the intention to make any such offer, sale, pledge or disposition, or to enter into any such transaction, swap, hedge
or other arrangement, in each case without the prior written consent of the underwriters. The foregoing provisions of this Section
9(a) shall apply only to the IPO, shall not apply to the sale of any Shares to an underwriter pursuant to an underwriting agreement,
and shall be applicable to the Optionee only if all officers, directors, and stockholders individually owning more than one percent
(1%) of the Corporation’s outstanding Shares are subject to the same restrictions. The underwriters in connection with such
registration are intended third party beneficiaries of this Section 9(a) and shall have the right, power, and authority to enforce
the provisions hereof as though they were a party hereto.

 

(b)              
The restrictions contained in Section 9(a) shall not apply to (i) the registration of or sale to the underwriters of any
Shares pursuant to the IPO, (ii) bona fide gifts, provided the recipient thereof agrees in writing with the underwriters to be
bound by the terms of this Agreement, (iii) dispositions to any trust, family limited partnership or family limited liability company
for the direct or indirect benefit of the undersigned and/or the immediate family of the undersigned, provided that such trust,
family limited partnership or family limited liability company agrees in writing with the underwriters to be bound by the terms
of this Agreement, or (iv) transfers of Shares by will or intestacy to the undersigned’s immediate family, provided that
such transferee agrees in writing with the underwriters to be bound by the terms of this Agreement. For purposes of this Agreement,
“immediate family” shall mean any relationship by blood, marriage or adoption, not more remote than first cousin.

 

(c)               
The Optionee agrees to execute and deliver such other agreements as may be reasonably requested by the Corporation and/or
the underwriters which are consistent with the provisions of this Section 9. Any discretionary waiver or termination of the restrictions
of any or all of such agreements by the Corporation or the underwriters shall apply pro rata to all stockholders of the
Corporation subject to agreements similar to this Section 9, based on the number of Shares subject to such agreements.

 

    	4

    	 

    

10.             
No Promise of Employment. Neither the Plan nor the Option nor the holding of Option Shares will confer upon the Optionee
any right to continue in the employ or other service of the Corporation or any affiliate or Subsidiary of the Corporation, or limit,
in any respect, the right of the Corporation or any such affiliate or Subsidiary to discharge the Optionee at any time, with or
without Cause and with or without notice.

 

11.             
Withholding. The Optionee shall be responsible to make appropriate provision for all taxes required to be withheld
in connection with the Option or the exercise thereof. Such responsibility shall extend to all applicable federal, state, local
or foreign withholding taxes. The Corporation or its Subsidiaries, in their sole discretion, shall have the right to retain the
number of shares whose Fair Market Value equals the amount to be withheld in satisfaction of the applicable withholding taxes (or
to withhold from any payroll or other amounts otherwise due to the Optionee the amount of withholding taxes due in connection with
the exercise of the Option). Notwithstanding the foregoing, if the Optionee is subject to Section 16 of the Exchange Act at the
time of exercise of the Option, then the Company shall permit the Optionee to pay the Exercise Price and the withholding taxes
relating to the exercise of the Option through a broker-assisted exercise of the Option whereby the broker will sell a number of
shares sufficient to pay such Exercise Price and withholding taxes and shall remit the proceeds of the sale to the Company, and
with any remaining shares to be credited to the account of the Optionee.

 

12.             
The Plan. The Optionee has received a copy of the Plan (a copy of which is attached hereto as Exhibit A),
has read the Plan and is familiar with its terms, and hereby accepts the Option subject to all of the terms and provisions of the
Plan, as amended from time to time, and this Agreement. Pursuant to the Plan, the Committee is authorized to interpret the Plan
and to adopt rules and regulations not inconsistent with the Plan as it deems appropriate. The Optionee hereby agrees to accept
as binding, conclusive and final all decisions or interpretations of the Committee with respect to the Plan, this Agreement, the
Option Shares or any agreement relating to the Option or the Option Shares.

 

13.             
Governing Law. This Agreement will be construed in accordance with the laws of the State of Delaware, without regard
to the application of the principles of conflicts of laws of Delaware or any other jurisdiction.

 

14.             
Severability. All provisions of this Agreement are distinct and severable and if any clause shall be held to be invalid,
illegal or against public policy, the validity or the legality of the remainder of this Agreement shall not be affected thereby,
and the remainder of this Agreement shall be interpreted to give maximum effect to the original intention of the parties hereto.

 

15.             
Amendment. Subject to the provisions of the Plan, this Agreement may only be amended by a writing signed by each
of the parties hereto.

 

16.             
Employment Agreement Override. If the Optionee is a party to an employment agreement with the Company or any of its
Subsidiaries that provides for any special vesting or exercise benefits in connection with a termination of employment that conflict
with those set forth in this Agreement, the provisions of such employment agreement shall control.

 

17.             
Entire Agreement. This Agreement, together with the Grant Notice and the Plan, and the other exhibits attached thereto
or hereto, represents the entire agreement between the parties hereto relating to the subject matter hereof, and merges and supersedes
all prior and contemporaneous discussions, agreements and understandings of every nature relating to the award of the Options described
herein to Optionee by the Corporation.

 

    	5

    	 

    

EXHIBIT A

 

Edge Therapeutics Inc.
2014 Equity Incentive Plan

 

    	6Exhibit 10.14

 

SECOND
AMENDED AND RESTATED EXECUTIVE EMPLOYMENT AGREEMENT

 

This Second Amended
and Restated Executive Employment Agreement (the “Agreement”) is entered into as of September 21, 2015 by and
between Edge Therapeutics, Inc., a Delaware corporation (the “Company”), and R. Loch Macdonald (“Executive”).
This Agreement shall become effective as of the closing of the Company’s initial public offering (the “Effective Date”).

 

W I T N E S S E T H :

 

WHEREAS, the Company
and Executive are parties to that certain Amended and Restated Executive Employment Agreement entered into as of August 12, 2015
(the “Prior Employment Agreement”);

 

WHEREAS, the parties
desire to enter into this Agreement to, among other things, amend and restate the Prior Employment Agreement in its entirety; and

 

WHEREAS, the Company
desires to continue to employ Executive and to enter into this Agreement embodying the terms of such employment, and Executive
desires to enter into this Agreement and to continue such employment, subject to the terms and provisions of this Agreement.

 

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

 

Section 1.               
Definitions.

 

(a)               
“Accrued Obligations” shall mean (i) all accrued but unpaid Base Salary through the Date of Termination,
(ii) any unpaid or unreimbursed business expenses incurred in accordance with Section 6 hereof, (iii) any accrued but unused vacation
time through the Date of Termination, and (iv) any earned but unpaid annual bonus with respect to the year immediately preceding
the year in which the Date of Termination occurs.

 

(b)              
“Base Salary” shall mean the salary provided for in Section 4(a) hereof, as adjusted from time to time.

 

(c)               
“Board” shall mean the Board of Directors of the Company.

 

(d)              
“Confidentiality Agreement” or “Confidentiality and Invention Assignment Agreement”
shall mean the Officer Confidentiality and Invention Agreement executed by Executive on March 6, 2013.

 

(e)               
“Cause” shall mean (i) Executive’s failure, neglect, or refusal to perform in any material respect
Executive’s duties and responsibilities under this Agreement (in each case, except where due to a Disability, sickness or
illness); (ii) any act of Executive that has, or could reasonably be expected to have, the effect of injuring the business of the
Company or its subsidiaries in any material respect; (iii) Executive’s conviction of, or plea of guilty or no contest to:
(x) a felony or (y) any other criminal charge that has, or could be reasonably expected to have, an adverse impact on the performance
of Executive’s duties to the Company or otherwise result in material injury to the reputation or business of the Company
or any of its subsidiaries; (iv) Executive’s commission of an act of fraud or embezzlement against the Company or any of
its subsidiaries; (v) any material violation by Executive of the policies of the Company, including but not limited to those relating
to sexual harassment or business conduct, and those otherwise set forth in the manuals or statements of policy of the Company,
as may be amended from time to time; (vi) Executive’s material violation of federal or state securities laws; (vii) Executive’s
unauthorized use or disclosure of any confidential or proprietary information or trade secrets of the Company, any of its affiliates
or of any other party to whom Executive or the Company or its affiliates owes an obligation of nondisclosure or confidentiality;
or (viii) Executive’s material breach of this Agreement or material breach of the Confidentiality and Invention Assignment
Agreement.

    	 

    	 

    

(f)               
“Code” shall mean the Internal Revenue Code of 1986, as amended, and the rules and regulations promulgated
thereunder.

 

(g)              
“Date of Termination” shall mean the date on which Executive’s employment terminates.

 

(h)              
“Disability” shall mean any physical or mental disability or infirmity of Executive that prevents Executive
from performing his duties with or without a reasonable accommodation for a period of (i) ninety (90) consecutive days or (ii)
one hundred twenty (120) non-consecutive days during any twelve (12) month period. Any question as to the existence, extent, or
potentiality of Executive’s Disability upon which Executive and the Company cannot agree shall be determined by a qualified,
independent physician selected by the Company and approved by Executive (which approval shall not be unreasonably withheld). The
determination of any such physician shall be final and conclusive for all purposes of this Agreement. Executive understands that
he is a “key employee” in connection with any leave qualifying for coverage under the Family and Medical Leave Act
(“FMLA”).

 

(i)                
“Good Reason” shall mean, without Executive’s written consent, (i) a material diminution in Executive’s
title, duties, or responsibilities as set forth in Section 3 hereof; (ii) a material reduction in Base Salary as set forth in Section
4(a) hereof (other than pursuant to a reduction applicable to all similarly situated executives); or (iii) any material breach
of this Agreement by the Company (other than a provision that is covered by clause (i) or (ii)). Executive acknowledges and agrees
that Executive’s exclusive remedy in the event of any material breach of this Agreement by the Company shall be to assert
Good Reason pursuant to the terms and conditions of this Section 1(i) and Section 7(e) hereof. Notwithstanding the foregoing, in
the event that the Company reasonably believes that Executive may have engaged in conduct that could constitute Cause hereunder,
the Company may, in its sole and absolute discretion, suspend Executive’s duties or employment, and in no event shall any
such suspension constitute an event pursuant to which Executive may terminate employment with Good Reason or otherwise constitute
a breach of this Agreement by the Company; provided, that no such suspension shall alter the Company’s obligations
under this Agreement during such period of suspension.

 

    	2

    	 

    

(j)                
“Release of Claims” shall mean a separation agreement in a form acceptable to the Company under which
Executive releases the Company and certain other persons and entities from any and all claims and causes of action and the execution
of which is a condition precedent to Executive’s eligibility for the payments and benefits described in Sections 7(d), 7(e)
and 10.

 

(k)              
“Severance Benefits” shall mean continued payment of Base Salary during the Severance Term, in accordance
with the Company’s regular payroll practices.

 

(l)                
“Severance Term” shall mean the twelve (12) month period, which commences on the first pay day that is
at least thirty-five (35) days after the Date of Termination following termination of Executive’s employment by the Company
without Cause or by Executive for Good Reason.

 

Section 2.               
Acceptance and Term.

 

The Company agrees
to employ Executive on an at-will basis, and Executive agrees to accept such employment and serve the Company, in accordance with
the terms and conditions set forth herein. The term of employment (referred to herein as the “Term”) shall commence
on the Effective Date and shall continue until terminated by either party at any time, subject to the provisions herein.

 

Section 3.               
Position, Duties, and Responsibilities; Place of Performance.

 

(a)               
Position, Duties and Responsibilities. During the Term, Executive shall be engaged to serve as the Chief Scientific
Officer of the Company (together with such other position or positions consistent with Executive’s title or as the Company
shall specify from time to time) and shall have such duties and responsibilities commensurate therewith, and such other duties
as may be assigned and/or prescribed from time to time by Executive’s supervisor and/or the Board. The Executive shall report
to the President and Chief Executive Officer of the Company. Executive will perform business and professional services consistent
with his job title and position within the Company and as reasonably assigned to Executive by the Company’s President and
Chief Executive Officer.

 

(b)               Performance.
Executive shall devote his full business time, attention, skill, and best efforts to the performance of his duties under this
Agreement and shall not engage in any other business or occupation during the Term, including, without limitation, any
activity that (x) conflicts with the business or interests of the Company, (y) interferes with the proper and
efficient performance of Executive’s duties for the Company, or (z) interferes with Executive’s exercise of
judgment in the Company’s best interests. Notwithstanding the foregoing, nothing herein shall preclude Executive from
(i) serving, with the prior written consent of the Board, as a member of the boards of directors or advisory boards (or their
equivalents in the case of a non-corporate entity) of non-competing businesses and charitable organizations, (ii) engaging in
charitable activities and community affairs, (iii) managing Executive’s personal investments and affairs and (iv)
retaining his academic appointment with St Michael’s Hospital and the University of Toronto, or accepting similar
academic appointments in the United States; provided, however, that the activities set out in clauses (i), (ii), (iii)
and (iv) shall be limited by Executive so as not to interfere, individually or in the aggregate, with the performance of
Executive’s duties and responsibilities hereunder. Executive represents that he has provided the Company with a
comprehensive list of all outside professional activities with which he is currently involved or reasonably expects to become
involved. In the event that, during his employment by the Company, the Executive desires to engage in other non-competitive
outside professional activities, not included on such list, Executive will first seek written approval from the President and
Chief Executive Officer and such approval shall not be unreasonably withheld.

    	3

    	 

    

 

Section 4.               
Compensation.

 

(a)               
Base Salary. During the Term, in exchange for Executive’s satisfactory performance of his duties and responsibilities
Executive will initially be paid a Base Salary at the rate of $375,000 per annum, payable in accordance with the Company’s
regular salary payment schedule and subject to applicable taxes and withholdings. The Base Salary of the Executive for subsequent
years of this Agreement may be increased, decreased, or may stay the same, depending on the Executive’s performance and the
performance of the Company.

 

(b)              
Annual Bonus. In addition to Executive’s Base Salary, during the Term, Executive will be eligible to earn an
annual discretionary performance-based bonus, with a target bonus opportunity equal to 45% of the Base Salary. Performance metrics
with respect to said bonus will be determined by the Board or the compensation committee of the Board. Executive shall be eligible
for said bonus only if Executive is employed on the last day of the performance period. Any earned annual bonus will be paid by
March 15th of the year following the year in which the applicable performance period ends.

 

(c)               
Equity Awards. During the Term, Executive shall be eligible to be granted equity awards by the Company, as determined
by the Board or the compensation committee of the Board. To the extent that the following would not result in a violation of Code
Section 409A, upon the consummation of a Change of Control (as defined below), provided that the Date of Termination has not occurred
earlier, Executive shall be entitled to immediate and full accelerated vesting of all equity awards granted to Executive by the
Company that are outstanding immediately prior to such Change of Control, without regard to the vesting schedule set forth in any
applicable plan or arrangement governing such equity awards (provided that any equity awards that are subject to the satisfaction
of performance goals shall be deemed earned at not less than target performance).

 

Section 5.               
Executive Benefits.

 

During the Term, Executive
shall be offered participation in health insurance and other benefits provided generally to similarly situated executives of the
Company, subject to the terms, conditions and eligibility requirements of the applicable benefit plans (which shall govern). During
the Term, Executive shall be eligible for four weeks’ paid time off in each calendar year, subject to the policies, terms
and conditions of the Company’s paid time off policies (as in effect from time to time), and pro-rated for any partial calendar
year worked. In addition, during the Term, Executive shall be eligible for the same number of holidays as well as any other broad-based
benefits, except those excluded herein, in each case, as are generally allowed to similarly situated executives of the Company
in accordance with the Company policy as in effect from time to time. Nothing contained herein shall be construed to limit the
Company’s ability to amend, suspend, or terminate any benefit plan or policy at any time without providing Executive notice,
and the right to do so is expressly reserved.

    	4

    	 

    

Section 6.               
Reimbursement of Business Expenses.

 

During the Term, the
Company shall reimburse Executive for documented, out-of-pocket business expenses reasonably incurred by Executive in the course
of performing Executive’s duties and responsibilities hereunder, which are consistent with the Company’s policies in
effect from time to time with respect to business expenses, and subject to the Company’s requirements with respect to reporting
of such expenses.

 

Section 7.               
Termination of Employment.

 

(a)               
General. Executive’s employment with the Company shall terminate upon the earliest to occur of: (i) Executive’s
death, (ii) a termination by reason of a Disability, (iii) a termination by the Company with or without Cause, or (iv) a termination
by Executive with or without Good Reason. Notwithstanding anything herein to the contrary, the payment (or commencement of a series
of payments) hereunder of any nonqualified deferred compensation (within the meaning of Section 409A of the Code) upon a termination
of employment shall be delayed until such time as Executive has also undergone a “separation from service” as defined
in Treas. Reg. 1.409A-1(h), at which time such nonqualified deferred compensation (calculated as of the date of Executive’s
termination of employment hereunder) shall be paid (or commence to be paid) to Executive on the schedule set forth in this provision
as if Executive had undergone such termination of employment (under the same circumstances) on the date of Executive’s ultimate
“separation from service.”

 

(b)              
Termination Due to Death or Disability. Executive’s employment under this Agreement shall terminate automatically
upon Executive’s death. Executive’s employment may be terminated by the Company, in its sole discretion, upon the occurrence
of a Disability, with such termination to be effective upon Executive’s receipt of written notice of such termination. In
the event of Executive’s termination as a result of his death or Disability, Executive or Executive’s estate or beneficiaries,
as the case may be, shall be entitled only to the Accrued Obligations, and Executive shall have no further rights to or interest
in any compensation or any other benefits under this Agreement.

 

(c)               
Termination by the Company with Cause.

 

		(i)	The Company may terminate Executive’s employment at any time with Cause, effective upon Executive’s
receipt of written notice of such termination; provided, however, that with respect to any Cause termination relying on clause
(i), (v) or (viii) of the definition of Cause set forth in Section 1(e) hereof, to the extent that such act or acts or failure
or failures to act are curable, Executive shall be given ten (10) days’ written notice by the Company of its intention to
terminate him with Cause, such notice to state the act or acts or failure or failures to act that constitute the grounds on which
the proposed termination with Cause is based, and such termination shall be effective at the expiration of such ten (10) day notice
period unless Executive has fully cured such act or acts or failure or failures to act, to the Company’s complete satisfaction.

 

    	5

    	 

    

		(ii)	In the event that the Company terminates Executive’s employment with Cause, Executive shall
be entitled only to the Accrued Obligations (disregarding, for this purpose, clause (iii) of Section 1(a)). Following such termination
of Executive’s employment with Cause, except as set forth in this Section 7(c)(ii), Executive shall have no further rights
to or interest in any compensation or any other benefits under this Agreement. For the avoidance of doubt, Executive’s sole
and exclusive remedy upon a termination of employment by the Company with Cause shall be receipt of the Accrued Obligations (disregarding,
for this purpose, clause (iii) of Section 1(a)).

 

		(iii)	If Executive is terminated for Cause, he shall not be entitled to compensation for any accrued,
but unused vacation days.

 

(d)              
Termination by the Company without Cause. The Company may terminate Executive’s employment at any time without
Cause, given 60 days’ notice (or pay in lieu thereof). In the event that, during the Term, Executive’s employment is
terminated by the Company without Cause (other than due to death or Disability), he shall be eligible for the Accrued Obligations
and, provided that he fully executes (and does not revoke) the Release of Claims as described in Section 7(g), Executive shall
also be eligible for (i) Severance Benefits and (ii) reimbursement for his (and his eligible dependents’) health care continuation
(COBRA) premiums for 12 months following such termination (provided that (A) such benefits shall not be provided beyond the date
on which Executive obtains comparable coverage from a subsequent employer and (B) such benefits shall not be provided to the extent
that the Company determines that it would result in any fine, penalty or tax on the Company or its subsidiaries for being a discriminatory
benefit) (the “COBRA Benefits”). Notwithstanding the foregoing, the Severance Benefits and the COBRA Benefits
shall immediately terminate, and the Company shall have no further obligations to Executive with respect thereto, and any payments
or benefits that were provided will be reimbursed or repaid promptly by Executive to the Company, in the event that Executive breaches
any provision of the Confidentiality and Invention Assignment Agreement or the Release of Claims. Any such termination, reimbursement
or repayment of Severance Benefits or COBRA Benefits shall have no effect on the Release of Claims or any of Executive’s
post-employment obligations to the Company. Following termination of Executive’s employment by the Company without Cause,
except as set forth in this Section 7(d) or Section 10, Executive shall have no further rights to any compensation or any other
benefits under this Agreement. For the avoidance of doubt, except as provided in Section 10, Executive’s sole and exclusive
remedy upon a termination of employment by the Company without Cause shall be receipt of the Severance Benefits and the COBRA Benefits,
subject to his execution and non-revocation of the Release of Claims, and the Accrued Obligations.

 

(e)               
Termination by Executive with Good Reason. Executive may terminate his employment with Good Reason by providing the
Company ninety (90) days’ written notice setting forth in reasonable specificity the event that constitutes Good Reason,
which written notice, to be effective, must be provided to the Company within thirty (30) days after the occurrence of such event.
During such ninety (90) day notice period, the Company shall have a cure right (if curable), and if not cured within such period,
Executive’s termination will be effective upon the expiration of such cure period, and in the event of such termination during
the Term, except as provided in Section 10, Executive shall be entitled to the same payments and benefits as provided in Section
7(d) hereof for a termination by the Company without Cause, subject to the same conditions on payment and benefits (and forfeiture
and repayment) as described in Section 7(d) hereof. Following such termination of Executive’s employment by Executive with
Good Reason, except as set forth in this Section 7(e) or Section 10, Executive shall have no further rights to any compensation
or any other benefits under this Agreement. For the avoidance of doubt, except as provided in Section 10, Executive’s sole
and exclusive remedy upon a termination of employment with Good Reason shall be receipt of the Severance Benefits and the COBRA
Benefits, subject to his execution and non-revocation of the Release of Claims, and the Accrued Obligations.

    	6

    	 

    
(f)               
Termination by Executive without Good Reason. Executive may terminate his employment without Good Reason by providing
the Company ninety (90) days’ written notice of such termination. In the event of a termination of employment by Executive
under this Section 7(f), Executive shall be entitled only to the Accrued Obligations (disregarding, for this purpose, clause (iii)
of Section 1(a)). In the event of a termination of Executive’s employment under this Section 7(f), the Company may, in its
sole and absolute discretion, by written notice, accelerate the Date of Termination without changing the characterization of such
termination as a termination by Executive without Good Reason (and no severance pay, notice pay or pay in lieu of notice or similar
pay shall be owed to Executive). Following such termination of Executive’s employment by Executive without Good Reason, Executive
shall have no further rights to or interest in any compensation or any other benefits under this Agreement. If Executive terminates
his employment without Good Reason, he shall not be entitled to compensation for any accrued, but unused vacation days. For the
avoidance of doubt, Executive’s sole and exclusive remedy upon a termination of employment by Executive without Good Reason
shall be receipt of the Accrued Obligations (disregarding, for this purpose, clause (iii) of Section 1(a)).

 

(g)              
Release of Claims. Notwithstanding any provision herein to the contrary, the provision of severance benefits pursuant
to subsection (d) or (e) of this Section 7 or Section 10 (other than the Accrued Obligations) shall be conditioned upon Executive’s
execution, delivery to the Company, and non-revocation of the Release of Claims (and the expiration of any revocation period contained
in such Release of Claims), such that the Release of Claims becomes effective, with all revocation periods having expired unexercised,
within sixty (60) days after the Date of Termination. If Executive fails to execute the Release of Claims in such a timely manner,
or timely revokes Executive’s execution of the Release of Claims following its execution, Executive shall not be entitled
to any of the severance benefits under Sections 7(d), 7(e) or 10 (other than the Accrued Obligations). Notwithstanding the foregoing,
if such sixty (60) day period ends in a calendar year after the calendar year in which Executive’s employment terminates,
then, to the extent required by Section 409A of the Code, any payment of any amount or provision of any benefit under Sections
7(d), 7(e) or 10 or otherwise that would have been made during the calendar year in which Executive’s employment terminates
shall instead be withheld and paid on the first payroll date in the calendar year after the calendar year in which Executive’s
employment terminates, after which any remaining severance benefits shall thereafter be provided to Executive according to the
applicable schedule set forth herein as if no such delay had occurred.

    	7

    	 

    

Section 8.               
Confidentiality Agreement; Cooperation.

 

(a)               
Confidentiality Agreement. Executive has entered into the Confidentiality and Invention Assignment Agreement. The
terms and conditions of the Confidentiality Agreement are incorporated herein by reference and the obligations and responsibilities
set forth therein shall survive the termination of Executive’s employment regardless of the reason for the termination.

 

(b)              
Litigation and Regulatory Cooperation. During and after Executive’s employment, Executive shall cooperate fully
with the Company in the defense or prosecution of any claims or actions now in existence or which may be brought in the future
against or on behalf of the Company or any of its subsidiaries which relate to events or occurrences that transpired while the
Company employed Executive, provided that the Executive will not have an obligation under this paragraph with respect to
any claim in which the Executive has filed directly against the Company or related persons or entities or the Company has filed
directly against Executive. The Executive’s full cooperation in connection with such claims or actions shall include, but
not be limited to, being available to meet with counsel to prepare for discovery or trial and to act as a witness on behalf of
the Company or any of its subsidiaries at mutually convenient times. During and after Executive’s employment, Executive also
shall cooperate fully with the Company and its subsidiaries in connection with any investigation or review of any federal, state
or local regulatory authority as any such investigation or review relates to events or occurrences that transpired while Executive
was employed by the Company, provided that Executive will not have any obligation under this paragraph with respect to any
claim in which Executive has filed directly against the Company or related persons or entities or the Company has filed directly
against Executive. The Company shall reimburse Executive for any reasonable out-of-pocket expenses incurred in connection with
Executive’s performance of obligations pursuant to this Section 8(b).

 

Section 9.               
Ownership and Use of Confidential Information.

 

The Executive will
maintain in confidence during and subsequent to the Executive’s employment any information about the Company and its affiliates
which is confidential information or which might reasonably be regarded by the Company as confidential and will not use that information
except for the benefit of the Company. In this regard, the terms and conditions of the Confidentiality and Invention Assignment
Agreement are incorporated herein by reference and the obligations and responsibilities set forth therein shall survive the termination
of Executive’s employment regardless of the reason for the termination.

 

Section 10.           
Termination In Connection With or Following a Change of Control.

 

In the event that,
during the Term, either (x) the Company terminates Executive’s employment with the Company other than for Cause (but not
due to death or Disability) (a) within the sixty (60) day period prior to a Change of Control, or (b) within the twelve (12) month
period after a Change of Control or (y) Executive terminates his employment with the Company for Good Reason within twelve (12)
months after a Change of Control (and pursuant to the notice and cure periods set forth in Section 7(e)), then the Executive shall
receive (i) the Severance Benefits and (ii) the COBRA Benefits, and, to the extent the following will not result in a violation
of Code Section 409A, shall also be entitled to immediate and full accelerated vesting of all equity awards received by Executive
from the Company or its parents that are outstanding as of the effective date of such termination without regard for the vesting
schedule set forth in the terms of any applicable plan or arrangement governing such equity awards (provided that any equity awards
that are subject to the satisfaction of performance goals shall be deemed earned at not less than target performance). Notwithstanding
anything herein to the contrary, the receipt of any severance pay or benefits or acceleration of vesting pursuant to this Section
10 will be subject to Executive signing and not revoking the Release of Claims in accordance with Section 7(g). No severance pursuant
to this Section 10 will be paid or provided unless and until the Release of Claims becomes effective and the revocation period
has expired, and Executive has not exercised his revocation, in accordance with Section 7(g). The receipt of any severance pay
and benefits pursuant to this Section 10 will also be subject to Executive not violating the Confidentiality and Invention Assignment
Agreement, returning all Company property, and complying with the Release of Claims. In the event of Executive’s breach of
the Confidentiality and Invention Assignment Agreement or the Release of Claims, all remaining severance payments and benefits
will immediately cease and all severance payments and benefits that were made will be reimbursed and repaid promptly by Executive
to the Company. In the event that Executive becomes entitled to any payments or benefits under this Section 10, Executive shall
not receive any payments or benefits under Section 7. In addition, upon a termination described in this Section 10, Executive shall
be entitled to receive the Accrued Obligations.

    	8

    	 

    

Section 11.           
Change of Control. For purposes of this Agreement, a “Change of Control” occurs when:

 

		(i)	any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange
Act of 1934, as amended) becomes the “beneficial owner” (as defined in Rule 13d-3 under said Act), directly or indirectly,
of securities of the Company representing 50% or more of the total voting power represented by the Company’s then outstanding
voting securities; provided, however; that sales of equity or debt securities to investors primarily for capital-raising
purposes shall in no event be deemed a Change of Control;

 

		(ii)	the date of the consummation of a merger or consolidation of the Company with any other corporation
or business entity that has been approved by the stockholders of the Company, other than a merger or consolidation which would
result in the holders of voting securities of the Company outstanding immediately prior thereto continuing to hold, directly or
indirectly, more than fifty percent (50%) of the total voting power represented by the voting securities of the Company or such
surviving entity outstanding immediately after such merger or consolidation;

 

		(iii)	the stockholders of the Company approve a plan of complete liquidation of the Company; or

 

    	9

    	 

    

		(iv)	there is a consummation of the sale or disposition by the Company of all or substantially all of
the Company’s assets.

 

Section 12.           
Section 409A. This Agreement is intended to comply with, or be exempt from, Code Section 409A (to the extent applicable)
and the parties hereto agree to interpret this Agreement in the least restrictive manner consistent therewith. Without limiting
the generality of the foregoing, severance pay pursuant to Sections 7(d) or (e) or Section 10 constitute separate payments for
purposes of Section 1.409A-2(b)(2) of the Treasury Regulations and thus, to the extent of payments made from the date of termination
of Executive’s employment through March 15 of the calendar year following such termination, such payments are intended to
constitute “short-term deferral” under Section 1.409A-1(b)(4) of the Treasury Regulations. To the extent that severance
payments or benefits are made following said March 15, they are intended to be payable upon an “involuntary separation from
service” pursuant to Section 1.409A-1(b)(9)(iii) of the Treasury Regulations, to the maximum extent permitted by said provision.
Notwithstanding any other provisions of this Agreement to the contrary, if Executive is a “specified employee” within
the meaning of Code Section 409A and the regulations issued thereunder, and a payment or benefit provided for in this Agreement
or otherwise would be subject to additional tax under Code Section 409A if such payment or benefit is paid within six (6) months
after Executive’s “separation from service” (within the meaning of Code Section 409A), then such payment or benefit
shall not be paid (or commence) during the six-month period immediately following Executive’s separation from service except
as provided in the immediately following sentence. In such an event, any payments or benefits that would otherwise have been made
or provided during such six-month period and which would have incurred such additional tax under Code Section 409A shall instead
be paid to Executive in a lump-sum cash payment on the earlier of (i) the first regular payroll date of the seventh month following
Executive’s separation from service or (ii) the 10th business day following Executive’s death (but not earlier than
such payments otherwise would have been made). In addition, no reimbursement or in-kind benefit shall be subject to liquidation
or exchange for another benefit and the amount available for reimbursement, or in-kind benefits provided, during any calendar year
shall not affect the amount available for reimbursement, or in-kind benefits to be provided, in a subsequent calendar year. Any
reimbursement to which Executive is entitled hereunder shall be made no later than the last day of the calendar year following
the calendar year in which such expenses were incurred. Notwithstanding anything herein to the contrary, neither the Company nor
any of its affiliates shall have any liability to Executive or to any other person or entity if the payments and benefits provided
in this Agreement that are intended to be exempt from or compliant with Code Section 409A are not so exempt or compliant.

 

Section 13.           
Parachute Payment. In the event that (i) Executive becomes entitled to any payments or benefits hereunder or otherwise
from the Company or any of its affiliates which constitute a “parachute payment” as defined in Code Section 280G (the
“Total Payments”) and (ii) Executive is subject to an excise tax imposed under Code Section 4999 (the “Excise
Tax”), then, if it would be economically advantageous for Executive, the Total Payments shall be reduced by an amount
(including zero) that results in the receipt by Executive on an after tax basis (including the applicable federal, state and local
income taxes, and the Excise Tax) of the greatest Total Payments, notwithstanding that some or all of the portion of the Total
Payments may be subject to the Excise Tax. Any such reduction in payments and benefits shall be applied first against the latest
scheduled cash payments; then current cash payments; then any equity or equity derivatives that are included under Code Section
280G at full value rather than accelerated value with the highest value reduced first; then other non-cash or non-equity based
benefits will be reduced (in the order of latest scheduled payments and benefits to earliest scheduled payments); and finally,
any equity or equity derivatives included under Code Section 280G at an accelerated value (and not at full value) shall be reduced
with the highest value reduced first (as such values are determined under Treasury Regulation Section 1.280G-1, Q&A 24). All
calculations hereunder shall be performed by a nationally recognized independent accounting firm selected by the Company, with
the full cost of such firm being borne by the Company. Any determinations made by such firm shall be final and binding on Executive
and the Company.

    	10

    	 

    

Section 14.           
Clawback. Notwithstanding anything herein to the contrary, any equity-based or incentive compensation provided to
Executive, including any bonuses or equity awards provided pursuant to Sections 4(b) or 4(c) of this Agreement, shall be subject
to any “clawback” required by law or by any national securities exchange on which the Company’s securities are
listed, or to any clawback or recoupment policy otherwise adopted by the Company from time to time. For the avoidance of doubt,
notwithstanding anything herein to the contrary, in no event shall any reduction in the amount of compensation ultimately provided
to or retained by Executive on account of this Section 14 constitute an event pursuant to which Executive may terminate employment
for Good Reason or otherwise constitute a breach of this Agreement by the Company.

 

Section 15.           
No Conflict with Existing Obligations. Executive represents that his performance of all the terms of this Agreement
and his duties as an executive of the Company do not and will not breach any agreement or obligation of any kind made prior to
Executive’s employment by the Company, including agreements or obligations Executive may have with prior employers or entities
for which Executive has provided services. Executive has not entered into, and Executive agrees that Executive will not enter into,
any agreement or obligation, either written or oral, in conflict herewith.

 

Section 16.           
Assignment. This Agreement for personal services shall not be assigned by Executive. This Agreement will be binding
upon and inure to the benefit of any successor of the Company. Any such successor of the Company will be deemed substituted for
the Company under the terms of this Agreement for all purposes. For this purpose, “successor” means any person, firm,
corporation or other business entity which at any time, whether by purchase, merger or otherwise, directly or indirectly acquires
all or substantially all of the assets or business of the Company.

 

Section 17.           
Arbitration; WAIVER OF JURY TRIAL. In consideration of Executive’s employment with the Company, the
Company and Executive agree that any and all controversies, claims, or disputes with anyone (including the Company, Executive and
any executive, officer, director, shareholder or benefit plan of the Company in their capacity as such or otherwise) arising out
of, relating to, or resulting from Executive’s employment with the Company or the termination of Executive’s employment
with the Company, including any relating to this Agreement, will be subject to binding arbitration. Disputes which Executive hereby
agrees to arbitrate, AND THEREBY AGREES TO WAIVE ANY RIGHT TO A TRIAL BY JURY, include, but are not limited to, any
statutory claims under state or federal law, including, but not limited to, claims under Title VII of the Civil Rights Act of 1964,
the Americans with Disabilities Act of 1990, the Age Discrimination in Employment Act of 1967, the Older Workers Benefit Protection
Act, the Worker Adjustment and Retraining Notification Act, the Family and Medical Leave Act, the New Jersey Law Against Discrimination,
the New Jersey Conscientious Executive Protection Act, the New Jersey Family Leave Act, and any other federal, state or local discrimination,
retaliation or wrongful termination claims or other statutory or common law claims. Executive further understands that this Agreement
to arbitrate also applies to any disputes that the Company may have with Executive. Executive agrees that any arbitration will
be administered by the American Arbitration Association (“AAA”) and that a single neutral arbitrator will be selected
in a manner consistent with its National Rules for the Resolution of Employment Disputes (the “Rules”). All arbitration
fees and costs shall be shared equally by the parties, but the parties shall be responsible for payment of their own attorneys’
fees. Executive agrees that the arbitrator will administer and conduct any arbitration in a manner consistent with the Rules. Notwithstanding
the foregoing, nothing herein shall limit or alter the Company’s right to seek injunctive or other equitable relief in any
court of competent jurisdiction under (and as described in) the Confidentiality Agreement.

    	11

    	 

    

Section 18.           
Voluntary Nature of Agreement. Executive acknowledges and agrees that Executive is executing this Agreement voluntarily
and without any duress or undue influence by the Company or anyone else. Executive further acknowledges and agrees that Executive
has carefully read this Agreement and that Executive has asked any questions needed for Executive to understand the terms, consequences
and binding effect of this Agreement and fully understands it, including that Executive is WAIVING EXECUTIVE’S RIGHT
TO A JURY TRIAL. Finally, Executive agrees that Executive has been provided an opportunity to seek the advice of an attorney
of Executive’s choice before signing this Agreement.

 

Section 19.           
Other.

 

(a)               
Waiver of Breach. The waiver by the Company of a breach by Executive of any provision of this Agreement or the Confidentiality
and Invention Assignment Agreement shall not operate or be construed as a waiver of the Company’s rights with respect to
any subsequent breach by the Executive.

 

(b)              
Governing Law and Forum. This Agreement shall be construed and administered in accordance with the laws of the State
of New Jersey, exclusive of its conflict of laws rules, and the parties hereto agree and stipulate that this Agreement shall be
deemed to have been entered into in the State of New Jersey, regardless of where it was negotiated, implemented and/or executed.

 

(c)               
Severability. In the event that any one or more of the provisions of this Agreement shall for any reason be held
to be invalid, illegal, or unenforceable, the remaining provisions of this Agreement shall be unimpaired, and shall continue in
full force and effect.

 

(d)              
Construction. This Agreement shall be interpreted in accordance with its plain meaning, and the rule that ambiguities
shall be construed against the drafter of the document shall not apply in connection with the construction or interpretation hereof.
The parties expressly agree that the principle of contract interpretation that ambiguities are construed against the drafting party
shall not apply.

    	12

    	 

    

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

 

(f)               
Entire Agreement. This Agreement and the Confidentiality and Invention Assignment Agreement contain the entire agreement
and understanding of the parties with respect to the subject matter hereof, and supersede all prior or contemporaneous promises,
understandings, or agreements, whether written or oral (including, without limitation, the Prior Employment Agreement) relating
to the subject matter hereof. This Agreement may not be changed orally, but only by an agreement in writing, signed by both parties.

 

(g)              
Survivorship. The provisions of Sections 1, 7(d), 7(e) and 7(g) and Sections 8 through 19 shall survive the termination
of Executive’s employment with the Company and this Agreement.

 

[Signatures on following
page]

    	13

    	 

    

 

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

 

	 	EDGE THERAPEUTICS, INC.
	 	 
	 	 
	Date: September 21, 2015	/s/ Brian A. Leuthner
	 	By:	Brian A. Leuthner
	 	Title:	President and Chief Executive Officer
	 	 
	 	 
	 	EXECUTIVE
	 	 
	 	 
	Date: September 21, 2015	/s/ R. Loch Macdonald
	 	R. Loch Macdonald

    	14

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