Document:

Exhibit 10.1

 

 

 

September 19, 2022

 

Eric I. Richman

c/o Gain Therapeutics, Inc.

4800 Montgomery Lane

Suite 220

Bethesda, MD 20814

 

Re:     Transition
Agreement

 

Dear Eric:

 

This letter sets forth the substance of the Transition
Agreement (the “Agreement”) which Gain Therapeutics Inc. (the “Company”) is offering
to you to aid in your employment transition.

 

1.            Separation
of Employment; Board Role. Your last day of employment with the Company and your employment termination
date will be September 20, 2022 (the “Separation Date”). You will remain a director on the Company’s
Board of Directors (the “Board”) until the date of the Company’s 2023 Annual Meeting of Stockholders and
your successor to the Board is elected, or, if sooner, your resignation or removal from the Board. You acknowledge and agree that the
compensation provided for under the Consulting Agreement (as defined below) will be your sole compensation for serving on the Board during
the Consulting Period (as defined in the Consulting Agreement). Other than your role on the Board, you hereby confirm your resignation
from all other officer and board positions with the Company and its affiliates effective as of the Separation Date. If you remain a director
on the Board following the period of your consultancy under the Consulting Agreement, you will be entitled to compensation provided to
non-employee directors serving on the Board.

 

2.            Accrued
Salary and Vacation. On or before the next regular payroll date following the Separation Date,
the Company will pay you all accrued salary and all accrued and unused vacation earned through the Separation Date, subject to standard
payroll deductions and withholdings. You will receive these payments regardless of whether or not you sign this Agreement.

 

3.            Transition
Benefits. If you timely, but no earlier than the Separation Date, execute this Agreement, do
not revoke your acceptance, and comply with your obligations under this Agreement, the Company will provide you with the following “Transition
Benefits:”

 

     

     

    

 

a.            The
Company will offer you the Consulting Agreement attached as Exhibit A (the “Consulting Agreement”).
If you execute the Consulting Agreement within the timelines set forth herein, you will be deemed to have begun your consulting relationship
effective immediately upon the Separation Date. If you then do not execute this Agreement, or execute but then revoke your acceptance
of this Agreement, then the Consulting Agreement will automatically terminate, as described therein.

 

b.            Subject
to your execution and non-revocation of this Agreement, as soon as reasonably practicable following the commencement of your consulting
arrangement under the Consulting Agreement (the “Consulting Start Date”), but in no event later than three business
days after the Consulting Start Date, you will receive (a) a nonqualified option to purchase 329,400 shares of the Company’s
common stock (“Common Stock”) at an exercise price per share of Common Stock equal to fair market value on the
date of grant (“Consulting Option”), and (b) 54,900 restricted stock units with respect to the Common Stock
(the “Consulting RSUs”), in each case, subject to the terms and conditions of the Gain Therapeutics Inc. 2022
Equity Incentive Plan (the “2022 Plan”) and the applicable award agreements thereunder (collectively, the “Consulting
Award Documents”). The Consulting Option and Consulting RSUs will vest and, as applicable, become exercisable in full on
the first (1st) anniversary of the Consulting Start Date, subject to your Continuous Service (as defined in Section 5(b))
through the vesting date and subject to the terms and conditions of the Consulting Award Documents; provided, that in the event that (i) your
Continuous Service terminates due to your death, Disability (as defined in the 2022 Plan) or a termination of the Consulting Agreement
by the Company other than due to a Material Breach (as defined in the Consulting Agreement) or (ii) a Change in Control (as defined
in the 2022 Plan) occurs during your Continuous Service, in either case, prior to the first (1st) anniversary of the Consulting
Start Date, then the Consulting Option and Consulting RSUs will vest in full upon the occurrence of such termination or Change in Control,
as applicable.

 

c.            Subject
your execution and non-revocation of this Agreement, your Existing Option (as defined and set forth below) will continue in full force
and effect and you will be entitled to exercise the Existing Option (including, without limitation, via net settlement for purposes of
paying exercise price and/or withholding taxes) at any time until the date that is eighteen (18) months following the cessation of your
Continuous Service but in no event later than the original expiration date of your Existing Option.

 

4.            Benefit
Plans.

 

If you are currently participating
in the Company’s group health insurance plans (including general health, vision and/or dental), your participation as an employee
will end on the last day of the month in which the Separation Date occurs. Thereafter, to the extent provided by the federal COBRA law
or, if applicable, state insurance laws, and by the Company’s current group health insurance policies, you will be eligible to continue
your group health insurance benefits at your own expense. Later, you may be able to convert to an individual policy through the applicable
provider of the Company’s health insurance, if you wish.

 

Your participation as an active
participant in the Company’s 401(k) savings plan, Employer-Sponsored Accidental Death and Dismemberment Insurance, Employer-Sponsored
Group Life Insurance and Short and Long Term Disability Insurance will cease as of the Separation Date. If you participated in the Company’s
401(k) savings plan, you will be entitled to a distributions of your account in accordance with its terms and conditions. You will
also be entitled to any conversion rights under the life and disability plans to the extent provided under applicable law.

 

Deductions for the 401(k) plan
will end with your last regular paycheck. You may receive or request additional information from the plan provider concerning 401(k) plan
rollover procedures should you be a participant in this program.

 

     

     

    

 

5.            Equity.

 

a.            You
were granted an option to purchase 26,424 shares of the Company’s common stock (the “Existing Option”),
pursuant to the Company’s 2020 Omnibus Incentive Plan (the “2020 Plan”) and stock option agreements and
any other documents between you and the Company setting forth the terms of the Existing Option (collectively, the “Existing
Option Documents”). As of the Separation Date, 16,163 shares subject to the Existing Option are vested and exercisable (the
 “Vested Shares”).

 

b.            If
you timely return and do not revoke this fully signed Agreement to the Company and you execute the Consulting Agreement on the Separation
Date, then notwithstanding anything to the contrary set forth in the 2020 Plan or the Existing Option Documents, (i) the Existing
Option will remain outstanding and the unvested shares subject to the Existing Option will continue to be eligible to vest following the
Separation Date while the Consulting Agreement is in effect and/or while you are serving as a director on the Board, in accordance with
the vesting schedules applicable to the Existing Option and dependent upon your continued service as a consultant pursuant to the terms
of the Consulting Agreement or your continued service as a director on the Board (“Continuous Service”), and
(ii) the Existing Option will cease vesting upon the termination of your Continuous Service, except the Existing Option shall vest
in full in the event (A) your Continuous Service terminates due to your death, Disability (as defined in the 2020 Plan) or a termination
of the Consulting Agreement by the Company other than due to a Material Breach (as defined in the Consulting Agreement) or (B) a
Change in Control (as defined in the 2020 Plan) occurs during your Continuous Service (the shares subject to the Existing Option that
vest as set forth in this Section 5(b), the “Consulting Vested Shares”).

 

c.            Notwithstanding
anything to the contrary in the 2020 Plan or the Existing Option Documents, upon your timely return of this fully-signed Agreement to
the Company and non-revocation of your acceptance, your Existing Option Documents are hereby amended to provide for exercise of the Vested
Shares and any Consulting Vested Shares, using any exercise method permitted under the 2020 Plan, including, without limitation, via net
settlement for purposes of paying exercise price and/or withholding taxes, through the earlier of: (i) the date that is eighteen
(18) months following the date of the termination of your Continuous Service, or (ii) the original expiration date applicable to
the Existing Option. Except as provided in this Agreement, all terms, conditions and limitations applicable to the Existing Option will
remain in full force and effect pursuant to the 2020 Plan and Existing Option Documents; provided however, that you are not entitled to
any other options to purchase shares of the Company’s common stock, except as specifically provided in this Agreement or the Consulting
Agreement.

 

d.            You
acknowledge that the Company is not providing tax advice to you and that you have been advised by the Company to seek independent tax
advice with respect to the exercise and modification of the Existing Option.

 

     

     

    

 

6.            Other
Compensation or Benefits. You acknowledge that, except as expressly provided in this Agreement
or the Consulting Agreement, you will not receive any additional compensation, severance or benefits after the Separation Date.

 

7.            Expense
Reimbursements. You agree that, within thirty (30) days of the Separation Date, you will submit
your final documented expense reimbursement statement reflecting all business expenses you incurred through the Separation Date, if any,
for which you seek reimbursement. The Company will reimburse you for reasonable business expenses pursuant to its regular business practice.

 

8.            Return
of Company Property. Within fifteen (15) days following the end of the Consulting Period (as
defined in the Consulting Agreement), you agree to return to the Company all Company documents (and all copies thereof) and other Company
property that you have had in your possession at any time, including, but not limited to, Company files, notes, drawings, records, business
plans and forecasts, financial information, specifications, computer-recorded information, tangible property (including, but not limited
to, computers), credit cards, entry cards, identification badges and keys; and, any materials of any kind that contain or embody any proprietary
or confidential information of the Company (and all reproductions thereof). Notwithstanding the foregoing, you may retain (i) copies
of your contacts in your emails or electronic or paper records, and (ii) your personal, financial, tax and accounting records, including
those pertaining to your employment with the Company, so long as such records do not contain confidential information of the Company.
Please coordinate return of Company property with the Company’s Chief Financial Officer.

 

9.            Proprietary
Information and Post-Termination Obligations. Both during and after your employment you acknowledge
your continuing obligations under your Employee Confidential Information and Inventions Assignment Agreement not to use or disclose any
confidential or proprietary information of the Company and to refrain from certain solicitation and competitive activities. A copy of
your Employee Confidential Information and Inventions Assignment Agreement is attached hereto as Exhibit B. If you have any
doubts as to the scope of the restrictions in your agreement, you should contact the Company’s Chief Financial Officer immediately
to assess your compliance. As you know, the Company will enforce its contract rights. Please familiarize yourself with the enclosed agreement
which you signed. Confidential information that is also a “trade secret,” as defined by law, may be disclosed (A) if
it is made (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney
and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or
other document filed in a lawsuit or other proceeding, if such filing is made under seal. In addition, in the event that you file a lawsuit
for retaliation by the Company for reporting a suspected violation of law, you may disclose the trade secret to your attorney and use
the trade secret information in the court proceeding, if you: (A) file any document containing the trade secret under seal; and (B) do
not disclose the trade secret, except pursuant to court order.

 

     

     

    

 

10.            Mutual
Non-Disparagement. Both you and the Company agree not to disparage the other party, and the other
party’s officers, directors, employees, shareholders and agents, in any manner likely to be harmful to them or their business, business
reputation or personal reputation; provided that both you and the Company will respond accurately and fully to any question, inquiry or
request for information when required by legal process. The Company shall instruct its officers, directors and employees at or above the
Director level (including, without limitation, non-clerical employees in the Company’s investor relations and human resources departments)
to not disparage you. Notwithstanding the foregoing, nothing in this Agreement shall limit your right to voluntarily communicate with
the Equal Employment Opportunity Commission, United States Department of Labor, the National Labor Relations Board, the Securities and
Exchange Commission, other federal government agency or similar state or local agency or to discuss the terms and conditions of your employment
with others to the extent expressly permitted by Section 7 of the National Labor Relations Act. In response to any reference request
from a prospective employer, the Company will only confirm your dates of employment and positions held.

 

11.            Indemnification;
D&O Coverage. In addition to those rights to indemnification you may have to the full extent
permitted under Delaware law, you shall remain entitled to indemnification and advancement of costs to the extent provided for under the
Company’s governing documents and the Indemnification Agreement, as in effect on the date hereof, or if greater, as amended after
the date hereof, for as long as potential liability exists (but in no event for less than six (6) years following the later of the
end of your employment with the Company and the end of your service on its Board). You shall be covered under any D&O policy maintained
by the Company for its officers and directors for a period of no less than six (6) years following the end of your employment with
the Company and service on its Board.

 

12.            Your
Release. In exchange for the payments and other consideration under this Agreement, to which
you would not otherwise be entitled, and except as otherwise set forth in this Agreement, you, on behalf of yourself and, to the extent
permitted by law, on behalf of your spouse, heirs, executors, administrators, assigns, insurers, attorneys and other persons or entities,
acting or purporting to act on your behalf (collectively, the “Employee Parties”), hereby generally and completely
release, acquit and forever discharge the Company, its parents and subsidiaries, and its and their officers, directors, managers, partners,
agents, representatives, employees, attorneys, shareholders, predecessors, successors, assigns, insurers and affiliates (the “Company
Parties”) of and from any and all claims, liabilities, demands, contentions, actions, causes of action, suits, costs, expenses,
attorneys’ fees, damages, indemnities, debts, judgments, levies, executions and obligations of every kind and nature, in law, equity,
or otherwise, both known and unknown, suspected and unsuspected, disclosed and undisclosed, arising out of or in any way related to agreements,
events, acts or conduct at any time prior to and including the execution date of this Agreement, including but not limited to: all such
claims and demands directly or indirectly arising out of or in any way connected with your employment with the Company or the termination
of that employment; claims or demands related to salary, bonuses, commissions, stock, stock options, or any other ownership interests
in the Company, vacation pay, fringe benefits, expense reimbursements, severance pay, or any other form of compensation; claims pursuant
to any federal, state or local law, statute, or cause of action; tort law; or contract law (individually a “Claim”
and collectively “Claims”). The Claims you are releasing and waiving in this Agreement include, but are not
limited to, any and all Claims that any of the Company Parties:

 

		·	has violated its personnel policies, handbooks, contracts of employment, or covenants of good faith and
fair dealing;

 

     

     

    

 

		·	has discriminated against you on the basis of age, race, color, sex (including sexual harassment), national
origin, ancestry, disability, religion, sexual orientation, marital status, parental status, source of income, entitlement to benefits,
any union activities or other protected category in violation of any local, state or federal law, constitution, ordinance, or regulation,
including but not limited to: Title VII of the Civil Rights Act of 1964, as amended; the Age Discrimination in Employment Act, as amended
(“ADEA”); the Civil Rights Act of 1991; 42 U.S.C. § 1981, as amended; the Equal Pay Act; the Americans
With Disabilities Act; the Genetic Information Nondiscrimination Act; the Family and Medical Leave Act; the Fair Employment Practice Act
of Maryland, Md. Code Ann., State Government, tit. 20; the Employee Retirement Income Security Act; the Employee Polygraph Protection
Act; the Worker Adjustment and Retraining Notification Act; the Older Workers Benefit Protection Act; the anti-retaliation provisions
of the Sarbanes-Oxley Act, or any other federal or state law regarding whistleblower retaliation; the Lilly Ledbetter Fair Pay Act; the
Uniformed Services Employment and Reemployment Rights Act; the Fair Credit Reporting Act; and the National Labor Relations Act;

 

		·	has violated any statute, public policy or common law (including but not limited to Claims for retaliatory
discharge; negligent hiring, retention or supervision; defamation; intentional or negligent infliction of emotional distress and/or mental
anguish; intentional interference with contract; negligence; detrimental reliance; loss of consortium to you or any member of your family
and/or promissory estoppel).

 

Notwithstanding the foregoing, other than events
expressly contemplated by this Agreement you do not waive or release rights or Claims that may arise from events that occur after the
date this waiver is executed and you are not releasing (i) any right of indemnification you may have, whether under this Agreement,
your Indemnification Agreement or otherwise, for any liabilities arising from your actions within the course and scope of your employment
or directorship with the Company or within the course and scope of your role as an employee of the Company or your role as a director
serving on the Board; (ii) any rights with respect to vested, accrued benefits under the Company plans to the extent provided therein
or applicable law: (iii) any rights that you have under this Agreement or the Consulting Agreement; (iv) any claims under any
directors’ and officers’ liability insurance policy, including, without limitation, any post-termination coverage provided
pursuant to this Agreement or under the applicable policy; or (v) any claims as a shareholder of the Company. Also excluded from
this Agreement are any Claims which cannot be waived by law, including, without limitation, any rights you may have under applicable workers’
compensation laws and your right, if applicable, to file or participate in an investigative proceeding of any federal, state or local
governmental agency. Nothing in this Agreement shall prevent you from filing, cooperating with, or participating in any proceeding or
investigation before the Equal Employment Opportunity Commission, the United States Department of Labor, the National Labor Relations
Board, the Occupational Safety and Health Administration, the Securities and Exchange Commission or any other federal government agency,
or similar state or local agency (“Government Agencies”), or exercising any rights pursuant to Section 7
of the National Labor Relations Act. You further understand this Agreement does not limit your ability to voluntarily communicate with
any Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including
providing documents or other information, without notice to the Company. While this Agreement does not limit your right to receive an
award for information provided to the Securities and Exchange Commission, you understand and agree that, you are otherwise waiving, to
the fullest extent permitted by law, any and all rights you may have to individual relief based on any Claims that you have released and
any rights you have waived by signing this Agreement. If any Claim is not subject to release, to the extent permitted by law, you waive
any right or ability to be a class or collective action representative or to otherwise participate in any putative or certified class,
collective or multi-party action or proceeding based on such a Claim in which any of the Company Parties is a party.

 

     

     

    

 

13.            Your
Acknowledgments and Affirmations/ Effective Date of Agreement. You acknowledge that you are knowingly
and voluntarily waiving and releasing any and all rights you may have under the ADEA, as amended. You also acknowledge and agree that
(i) the consideration given to you in exchange for the waiver and release in this Agreement is in addition to anything of value to
which you were already entitled, and (ii) that you have been paid for all time worked, have received all the leave, leaves of absence
and leave benefits and protections for which you are eligible, and have not suffered any on-the-job injury for which you have not already
filed a Claim. You affirm that all of the decisions of the Company Parties regarding your pay and benefits through the date of your execution
of this Agreement were not discriminatory based on age, disability, race, color, sex, religion, national origin or any other classification
protected by law. You affirm that you have not filed or caused to be filed, and are not presently a party to, a Claim against any of the
Company Parties. You further affirm that you have no known workplace injuries or occupational diseases. You acknowledge and affirm that
you have not been retaliated against for reporting any allegation of corporate fraud or other wrongdoing by any of the Company Parties,
or for exercising any rights protected by law, including any rights protected by the Fair Labor Standards Act, the Family Medical Leave
Act or any related statute or local leave or disability accommodation laws, or any applicable state workers’ compensation law. You
further acknowledge and affirm that you have been advised by this writing that: (a) your waiver and release do not apply to any rights
or Claims that may arise after the execution date of this Agreement; (b) you have been advised hereby that you have the right to
consult with an attorney prior to executing this Agreement; (c) you have been given twenty-one (21) days to consider this Agreement
(although you may choose to voluntarily execute this Agreement earlier, though not earlier than the Separation Date, and if you do you
will sign the Consideration Period waiver below); (d) you have seven (7) days following your execution of this Agreement to
revoke this Agreement; and (e) this Agreement shall not be effective until the date upon which the revocation period has expired
unexercised (the “Effective Date”), which shall be the eighth day after this Agreement is executed by you.

 

14.            Company’s
Release of Claims. In exchange for your compliance with your obligations under this Agreement,
including but not limited to your confidentiality, non-disparagement and return of property obligations, and any other agreement between
you and the Company, the Company hereby covenants not to sue and releases and forever discharges you, and your heirs, executors, administrators,
and assigns, from any and all claims, demands, causes of action, obligations, attorneys’ fees, costs, damages, and liabilities of
whatever kind or nature, in law or in equity, known or unknown, suspected or unsuspected, which it ever had, now has, or may hereafter
claim to have had, which occur on or before the date of its signature to this Agreement and arise out of or are related to your employment
with the Company or the termination of that employment, subject to the provisions below. The released claims pursuant to this release
by the Company include, but are not limited to, claims under any federal, state or local laws, and/or common law claims arising under
contract or tort theories; provided, however, that this release shall not extend to: (i) any claims arising after the date the Agreement
is signed, including without limitation any claims for breach of the Agreement; (ii) claims arising at any time from your contractual,
statutory, and common law obligations to refrain from the unauthorized use or disclosure of the Company’s confidential, proprietary,
or trade secret information; or (iii) claims arising at any time from your fraud with respect to the Company.

 

     

     

    

 

15.            No
Admission. This Agreement does not constitute an admission by the Company of any wrongful action
or violation of any federal, state, or local statute, or common law rights, including those relating to the provisions of any law or statute
concerning employment actions, or of any other possible or claimed violation of law or rights.

 

16.            Breach.
You agree that upon any material breach of this Agreement by you that remains uncured ten (10) days following notice to the Company
of such breach, to the extent curable in the Company’s good faith determination, you will forfeit all amounts paid to you under
Section 3(a) of this Agreement. Further, you acknowledge that it may be impossible to assess the damages caused by your violation
of the terms of Sections 8, 9 and 10 of this Agreement and further agree that any threatened or actual violation or breach of those Sections
of this Agreement will constitute immediate and irreparable injury to the Company. You therefore agree that any such breach of this Agreement
is a material breach of this Agreement, and, in addition to any and all other damages and remedies available to the Company upon your
breach of this Agreement, the Company shall be entitled to seek an injunction to prevent you from violating or breaching this Agreement.
If either party is successful in whole or part in any legal or equitable action to enforce this Agreement, then the enforcing party can
collect from the other party all of the costs, including reasonable attorneys’ fees, incurred in enforcing the terms of this Agreement.

 

17.            Legal
Fees Incurred in Negotiating the Agreement. The Company shall pay for the reasonable legal fees
incurred in negotiating and drafting this Agreement and the Consulting Agreement, up to a maximum of $15,000. The Company shall promptly
make payment directly to your legal advisor upon invoicing.

 

18.            Miscellaneous.
This Agreement, including Exhibits A and B, constitutes the complete, final and exclusive embodiment of the entire agreement between you
and the Company with regard to this subject matter. It is entered into without reliance on any promise or representation, written or oral,
other than those expressly contained herein, and it supersedes any other such promises, warranties or representations. This Agreement
may not be modified or amended except in a writing signed by both you and a duly authorized officer of the Company. This Agreement will
bind the heirs, personal representatives, successors and assigns of both you and the Company, and inure to the benefit of both you and
the Company, their heirs, successors and assigns. If any provision of this Agreement is determined to be invalid or unenforceable, in
whole or in part, this determination will not affect any other provision of this Agreement and the provision in question will be modified
by the court so as to be rendered enforceable. This Agreement will be deemed to have been entered into and will be construed and enforced
in accordance with the laws of the State of Maryland as applied to contracts made and to be performed entirely within Maryland.

 

If this Agreement is acceptable
to you, please sign and date below within twenty-one (21) days after your receipt of this Agreement, but no earlier than the Separation
Date, and then send me the fully signed Agreement.

 

I thank you for your efforts to date on behalf
of the Company and thank you in advance for your services under the Consulting Agreement. I also wish you good luck in your future endeavors.

 

[Signatures to follow on next page]

 

     

     

    

 

Sincerely,

 

	Gain Therapeutics Inc.	 
	 	 	 	 
	By:	/s/ Khalid Islam	 
	 	Name: 	Khalid Islam, Ph.D.	 
	 	Title: 	Chairman of the Board of Directors	 

 

	Agreed to and Accepted:	 
	 	 
	/s/ Eric I. Richman	 
	Eric I. Richman	 

 

Exhibit A – Consulting Agreement

 

Exhibit B – Employee Confidential Information and Inventions
Assignment Agreement

 

CONSIDERATION PERIOD

 

I, Eric I. Richman, understand that I have the
right to take at least 21 days to consider whether to sign this Agreement, which I received on September 19, 2022. If I elect to
sign this Agreement before 21 days have passed, I understand I am to sign and date below this paragraph to confirm that I knowingly
and voluntarily agree to waive the 21-day consideration period. I understand that I am not permitted to sign prior to the Separation Date.

 

	Agreed:
	 
	 	 
	/s/ Eric I. Richman	 
	Signature
	 
	 	 
	September 20, 2022	 
	Date
	 

 

     

     

    

 

 

Exhibit A

 

Consulting
Agreement

 

This
Consulting Agreement (the “Agreement”) by and between Gain Therapeutics Inc. (“Client”)
and Eric I. Richman, an individual (“Consultant”) is effective as of September 20, 2022 (the “Effective
Date”).

 

RECITALS

 

WHEREAS the parties desire
for the Client to engage Consultant to perform the services described herein and for Consultant to provide such services on the terms
and conditions described herein; and

 

WHEREAS, the parties desire
to use Consultant’s independent skill and expertise pursuant to this Agreement as an independent contractor;

 

NOW THEREFORE, in consideration
of the promises and mutual agreements contained herein, the parties hereto, intending to be legally bound, agree as follows:

 

1.           Engagement
of Services. Consultant agrees to provide consulting services as a special advisor to the Client
and its Board of Directors (the “Board”) at the request of the Chairman of the Board or another member of the
Board (“Executive”) of the Client, performing consulting services appropriate in light of Consultant’s
role and status with the Company prior to the Effective Date. Consultant agrees to make himself reasonably available to perform such consulting
services throughout the Consulting Period (as defined below), and to be reasonably available to meet with the Client at its offices or
otherwise. Client will reimburse Consultant for any reasonable travel expenses in connection therewith.

 

2.            Compensation.

 

2.1            In
consideration for the services rendered pursuant to this Agreement and for the assignment of certain of Consultant’s right, title
and interest pursuant hereto, Client will pay Consultant a consulting fee of $27,200 per full month in which Consultant provides services
during the Consulting Period (the “Monthly Fee”). The Monthly Fee shall be pro-rated for the first and last
month of the Consulting Period to reflect the number of days in such month that the Agreement was in effect. Following the completion
of a month, Consultant will submit an invoice for the Monthly Fee. The Client will pay the amount due the Consultant within thirty (30)
days after receipt of Consultant’s monthly invoice.

 

2.2            In
further consideration for the services rendered pursuant to this Agreement (“Service(s)”) and for the assignment
of certain of Consultant’s right, title and interest pursuant hereto, (a) the Client will permit Consultant’s Existing
Option (as defined in the “Transition Agreement” dated September 19, 2022) to continue vesting while Consultant
provides continuous Service hereunder, and (b) as set forth in the Transition Agreement, Consultant will receive the Consulting Option
and Consulting RSUs (each as defined in the Transition Agreement). All matters of vesting and exercisability, as applicable, of Consultant’s
Existing Option, Consulting Option and Consulting RSUs shall be as governed by Section 5 of the Transition Agreement and the terms
of the 2020 Plan or 2022 Plan (as applicable) and Existing Option Documents or Consulting Award Documents (each as defined in the Transition
Agreement).

 

     

     

    

 

3.            Ownership
of Work Product. Consultant hereby irrevocably assigns, grants and conveys to Client all right,
title and interest now existing or that may exist in the future in and to any document, development, work product, know-how, design, processes,
invention, technique, trade secret, or idea, and all intellectual property rights related thereto, that is created by Consultant, to which
Consultant contributes, or which relates to Consultant’s Services provided pursuant to this Agreement (the “Work Product”),
including all copyrights, trademarks and other intellectual property rights (including but not limited to patent rights) relating thereto.
Consultant agrees that any and all Work Product shall be and remain the property of Client. Consultant will immediately disclose to the
Client all Work Product. Consultant agrees to execute, at Client’s request and expense, all documents and other instruments necessary
or desirable to confirm such assignment. In the event that Consultant does not, for any reason, execute such documents within a reasonable
time of Client’s request, Consultant hereby irrevocably appoints Client as Consultant’s attorney-in-fact for the purpose of
executing such documents on Consultant’s behalf, which appointment is coupled with an interest. Consultant shall not attempt to
register any works created by Consultant pursuant to this Agreement at the U.S. Copyright Office, the U.S. Patent & Trademark
Office, or any foreign copyright, patent, or trademark registry. Consultant retains no rights in the Work Product and agrees not to challenge
Client’s ownership of the rights embodied in the Work Product. Consultant further agrees to assist Client in every proper way to
enforce Client’s rights relating to the Work Product in any and all countries, including, but not limited to, executing, verifying
and delivering such documents and performing such other acts (including appearing as a witness) as Client may reasonably request for use
in obtaining, perfecting, evidencing, sustaining and enforcing Client’s rights relating to the Work Product.

 

4.            Artist’s,
Moral, and Other Rights. If Consultant has any rights, including without limitation “artist’s
rights” or “moral rights,” in the Work Product which cannot be assigned (the “Non-Assignable Rights”),
Consultant agrees to waive enforcement worldwide of such rights against Client. In the event that Consultant has any such rights that
cannot be assigned or waived Consultant hereby grants to Client a royalty-free, paid-up, exclusive, worldwide, irrevocable, perpetual
license under the Non-Assignable Rights to (i) use, make, sell, offer to sell, have made, and further sublicense the Work Product,
and (ii) reproduce, distribute, create derivative works of, publicly perform and publicly display the Work Product in any medium
or format, whether now known or later developed.

 

5.            Representations
and Warranties. Consultant represents and warrants that: (a) Consultant has the full right
and authority to enter into this Agreement and perform his obligations hereunder; (b) Consultant has the right and unrestricted ability
to assign the Work Product to Client as set forth in Sections 3 and 4 (including without limitation the right to assign any Work Product
created by Consultant’s employees or contractors); (c) the Work Product has not heretofore been published in its entirety;
and (d) the Work Product will not infringe upon any copyright, patent, trademark, right of publicity or privacy, or any other proprietary
right of any person, whether contractual, statutory or common law. Consultant agrees to indemnify Client from any and all damages, costs,
claims, expenses or other liability (including reasonable attorneys’ fees) arising from or relating to the breach or alleged breach
by Consultant of the representations and warranties set forth in this Section 5.

 

     

     

    

 

6.            Independent
Contractor Relationship. Consultant is an independent contractor and not an employee of the Client.
Nothing in this Agreement is intended to, or should be construed to, create a partnership, agency, joint venture or employment relationship.
The manner and means by which Consultant chooses to complete the Services are in Consultant’s sole discretion and control. In completing
the Services, Consultant agrees to provide his own equipment, tools and other materials at his own expense. Consultant is not authorized
to represent that he is an agent, employee, or legal representative of the Client. Consultant is not authorized to make any representation,
contract, or commitment on behalf of Client or incur any liabilities or obligations of any kind in the name of or on behalf of the Client.
Consultant shall be free at all times to arrange the time and manner of performance of the Services. Consultant is not required to maintain
any schedule of duties or assignments. Consultant is also not required to provide reports to the Client. In addition to all other obligations
contained herein, Consultant agrees to comply in all material respects, at Consultant’s own expense, with the provisions of
all state, local, and federal laws, regulations, ordinances, requirements and codes which are applicable to the performance of the Services
hereunder and to act with integrity and professionalism.

 

7.            Consultant’s
Responsibilities. As an independent contractor, the mode, manner, method and means used by Consultant
in the performance of Services shall be of Consultant’s selection and under the sole control and direction of Consultant. Consultant
shall be responsible for all risks incurred in the operation of Consultant’s business and shall enjoy all the benefits thereof.
Any persons employed by or subcontracting with Consultant to perform any part of Consultant’s obligations hereunder shall be under
the sole control and direction of Consultant and Consultant shall be solely responsible for all liabilities and expenses thereof. The
Client shall have no right or authority with respect to the selection, control, direction, or compensation of such persons.

 

8.            Tax
Treatment.  The Consultant and Client agree that this Section 8 shall only apply with respect
to the term of this Agreement and shall not be applicable with respect to the time during which the Consultant served as an employee of
the Client. Consultant and the Client agree that the Client will treat Consultant as an independent contractor for purposes of all tax
laws (local, state and federal) and file forms consistent with that status. Consultant agrees, as an independent contractor, that neither
he nor his employees are entitled to unemployment benefits in the event this Agreement terminates, or workers’ compensation benefits
in the event that Consultant, or any employee of Consultant, is injured in any manner while performing obligations under this Agreement.
Consultant will be solely responsible to pay any and all local, state, and/or federal income, social security and unemployment taxes for
Consultant and his employees. The Client will not withhold any taxes or prepare W-2 Forms for Consultant, but will provide Consultant
with a Form 1099, if required by law. Consultant is solely responsible for, and will timely file all tax returns and payments required
to be filed with, or made to, any federal, state or local tax authority with respect to the performance of Services and receipt of fees
under this Agreement. Consultant is solely responsible for, and must maintain adequate records of, expenses incurred in the course of
performing Services under this Agreement, except as provided herein. No part of Consultant’s compensation will be subject to withholding
by Client for the payment of any social security, federal, state or any other employee payroll taxes. Client will regularly report amounts
paid to Consultant with the appropriate taxing authorities, as required by law.

 

     

     

    

 

9.             No
Employee Benefits. Consultant acknowledges and agrees that neither he nor anyone acting on his
behalf shall receive any employee benefits of any kind from the Client. Consultant (and Consultant’s agents, employees, and subcontractors)
is excluded from participating in any fringe benefit plans or programs as a result of the performance of Services under this Agreement,
without regard to Consultant’s independent contractor status. In addition, Consultant (on behalf of himself and on behalf of Consultant’s
agents, employees, and contractors) waives any and all rights, if any, to participation in any of the Client’s fringe benefit plans
or programs including, but not limited to, health, sickness, accident or dental coverage, life insurance, disability benefits, severance,
accidental death and dismemberment coverage, unemployment insurance coverage, workers’ compensation coverage, and pension or 401(k) benefit(s) provided
by the Client to its employees. Notwithstanding the above, this Agreement does not amend or abrogate in any manner any benefits owed to
Consultant under any qualified retirement plan or health and welfare benefit plan in which Consultant was a participant during his previous
employment relationship with the Client.

 

10.           Expenses
and Liabilities. Consultant agrees that as an independent contractor, he is solely responsible
for all expenses (and profits/losses) he incurs in connection with the performance of Services, other than as set forth herein. Consultant
understands that he will not be reimbursed for any supplies, equipment, or operating costs, nor will these costs of doing business be
defrayed in any way by the Client. In addition, the Client does not guarantee to Consultant that fees derived from Consultant’s
business will exceed Consultant’s costs. Notwithstanding the foregoing, while Consultant serves as a member of the Board, Client
shall reimburse Consultant for actual, documented and reasonable expenses incurred by Consultant in connection with Consultant’s
service on the Board in accordance with the Company’s standard reimbursement policy for directors.

 

11.           Non-Exclusivity.
The Client reserves the right to engage other consultants to perform services, without giving Consultant a right of first refusal or any
other exclusive rights. Consultant reserves the right to perform services for other persons, provided that the performance of such services
do not conflict or interfere with Services provided pursuant to or obligations under this Agreement.

 

12.           No
Conflict of Interest. During the term of this Agreement, unless written permission is given by
the Executive, Consultant will not accept work, enter into a contract, or provide services to any third party that provides products or
services which compete with the products or services provided by the Client nor may Consultant enter into any agreement or perform any
services which would conflict or interfere with the Services provided pursuant to or the obligations under this Agreement. Consultant
warrants that there is no other contract or duty on his part that prevents or impedes Consultant’s performance under this Agreement.
Consultant agrees to indemnify Client from any and all loss or liability incurred by reason of the alleged breach by Consultant of any
services agreement with any third party.

 

     

     

    

 

13.           Confidential
Information. Consultant agrees to hold Client’s Confidential Information (as defined below)
in strict confidence and not to disclose such Confidential Information to any third parties. Consultant also agrees not to use any of
Client’s Confidential Information for any purpose other than performance of Consultant’s Services hereunder. “Confidential
Information” as used in this Agreement shall mean all information disclosed by Client to Consultant, or otherwise, regarding
Client or its business obtained by Consultant pursuant to Services provided under this Agreement that is not generally known in the Client’s
trade or industry and shall include, without limitation, (a) concepts and ideas relating to the development and distribution of content
in any medium or to the current, future and proposed products or services of Client or its subsidiaries or affiliates; (b) trade
secrets, drawings, inventions, know-how, software programs, and software source documents; (c) information regarding plans for research,
development, new service offerings or products, marketing and selling, business plans, business forecasts, budgets and unpublished financial
statements, licenses and distribution arrangements, prices and costs, suppliers and customers; and (d) any information regarding
the skills and compensation of employees, contractors or other agents of the Client or its subsidiaries or affiliates. Confidential Information
also includes proprietary or confidential information of any third party who may disclose such information to Client or Consultant in
the course of Client’s business. In addition, Consultant may disclose Client’s Confidential Information in response to a valid
order by a court or other governmental body, as otherwise required by law. All Confidential Information furnished to Consultant by Client
is the sole and exclusive property of Client or its suppliers or customers. Upon request by Client, Consultant agrees to promptly deliver
to Client the original and any copies of such Confidential Information. Consultant’s duty of confidentiality under this Agreement
does not amend or abrogate in any manner Consultant’s continuing duties under any prior agreement between Consultant and Client.
Notwithstanding the foregoing or anything to the contrary in this Agreement or any other agreement between Client and Consultant, nothing
in this Agreement shall limit Consultant’s right to discuss Consultant’s engagement with the Client or report possible violations
of law or regulation with the Equal Employment Opportunity Commission, the United States Department of Labor, the National Labor Relations
Board, the Securities and Exchange Commission, or other federal government agency or similar state or local agency or to discuss the terms
and conditions of Consultant’s engagement with others to the extent expressly permitted by applicable provisions of law or regulation,
including but not limited to “whistleblower” statutes or other similar provisions that protect such disclosure. Further, notwithstanding
the foregoing, pursuant to 18 U.S.C. Section 1833(b), Consultant shall not be held criminally or civilly liable under any federal
or state trade secret law for the disclosure of a trade secret that: (1) is made in confidence to a federal, state, or local government
official, either directly or indirectly, or to an attorney, and solely for the purpose of reporting or investigating a suspected violation
of law; or (2) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.
In addition, nothing herein shall prohibit Consultant from (i) disclosing information and documents when required by law, subpoena
or court order, (ii) disclosing information and documents in confidence to any attorney, financial adviser or tax preparer who has
agreed to keep such information and documents confidential, or (iii) using and disclosing documents and information at the Client’s
written request.

 

     

     

    

 

14.            Term
and Termination.

 

14.1            Term.
 The term of this Agreement and the “Consulting Period” is from the
Effective Date set forth above for twelve (12) months (the “Term”), unless earlier terminated as provided in
this Agreement.

 

14.2            Termination.

 

(a)            Automatic
Termination. If Consultant fails to timely execute the Transition Agreement according to its terms, then this Agreement will automatically
terminate effective at the end of the date by which Consultant is required to execute the Transition Agreement. If Consultant revokes
his acceptance of the Transition Agreement within seven (7) days after executing the Transition Agreement, then this Agreement will
automatically terminate on the day of such revocation.

 

(b)            Termination
upon Notice. Either party may terminate this Agreement for any reason, or no reason, upon thirty (30) days’ advance written
notice.

 

(c)            Termination
upon Breach. The Client may terminate this Agreement before its expiration if the Consultant materially breaches the Agreement, which
material breach remains uncured for ten (10) days following the Client’s written notice to Consultant, detailing the specific
circumstances surrounding any such breach. The parties agree that a “Material Breach” by Consultant shall occur
if he: (i) materially and demonstrably fails to provide services contemplated hereunder as reasonably requested by the Client; or
(ii) breaches any other material obligations of this Agreement that causes or is reasonably likely to harm the Company in any material
manner.

 

14.3            Effect
of Termination. Upon any termination or expiration of this Agreement, Consultant (i) shall
immediately discontinue all use of Client’s Confidential Information delivered under this Agreement; (ii) shall delete any
such Client Confidential Information from Consultant’s computer storage or any other media, including, but not limited to, online
and off-line libraries; and (iii) shall return to Client, or, at Client’s option, destroy, all copies of such Confidential
Information then in Consultant’s possession. In the event the Client terminates this Agreement, or if Consultant terminates this
Agreement, Consultant will not receive any additional consulting fees or other compensation for services performed after the date of termination,
other than as set forth herein.

 

     

     

    

 

14.4            Survival.
The rights and obligations contained in Sections 3-6, 8-9, 12, 14.3, 14.4, and 15-23 will survive any termination or expiration of this
Agreement.

 

15.           409A.
The parties intend that this Agreement and the payments hereunder comply with, or be exempt from, Section 409A of the Internal Revenue
Code of 1986, as amended, and the final treasury regulations promulgated thereunder (“Section 409A”). This
Agreement shall be interpreted in accordance with such intent to the fullest extent permissible by Section 409A. To the extent that
any reimbursements payable to Consultant are subject to the provisions of Section 409A: (a) any such reimbursements will be
paid no later than December 31 of the year following the year in which the expense was incurred, (b) the amount of expenses
reimbursed in one year will not affect the amount eligible for reimbursement in any subsequent year, and (c) the right to reimbursement
under this Agreement will not be subject to liquidation or exchange for another benefit. Notwithstanding the foregoing, the Client does
not guarantee that this Agreement complies with, or is exempt from, Section 409A and the Client shall have no liability for any such
failure.

 

16.            Successors
and Assigns. Consultant may not subcontract or otherwise delegate his obligations under this
Agreement without Client’s prior written consent. Client may assign this Agreement. Subject to the foregoing, this Agreement will
be for the benefit of Client’s successors and assigns, and will be binding on Consultant’s subcontractors or delegatees.

 

17.            Notices.
Any notice required or permitted by this Agreement shall be in writing and shall be delivered as follows with notice deemed given as indicated:
(i) by overnight courier upon written verification of receipt; or (ii) by telecopy, email, or facsimile transmission upon acknowledgment
of receipt of electronic transmission. Notice shall be sent to the addresses set forth below or such other address as either party may
specify in writing.

 

18.            Governing
Law. This Agreement shall be governed in all respects by the laws of the State of Maryland, as
such laws are applied to agreements entered into and to be performed entirely within Maryland between Maryland residents. Any suit involving
this Agreement shall be brought in a court sitting in Maryland. The parties agree that venue shall be proper in such courts, and that
such courts will have personal jurisdiction over them.

 

19.            Severability.
Should any provisions of this Agreement be held by a court of law to be illegal, invalid or unenforceable, the legality, validity and
enforceability of the remaining provisions of this Agreement shall not be affected or impaired thereby.

 

20.            Waiver.
The waiver by Client of a breach of any provision of this Agreement by Consultant shall not operate or be construed as a waiver of any
other or subsequent breach by Consultant.

 

21.            Injunctive
Relief for Breach.  Consultant’s obligations under this Agreement are of a unique character
that gives them particular value; breach of any of such obligations will result in irreparable and continuing damage to Client for which
there will be no adequate remedy at law; and, in the event of such breach, Client will be entitled to seek injunctive relief and/or a
decree for specific performance, and such other and further relief as may be proper (including monetary damages if appropriate and reasonable
attorneys’ fees).

 

     

     

    

 

22.            Entire
Agreement. This Agreement is being entered into as part of the Transition Agreement between the
Client and Consultant, and will only become effective following execution and non-revocation of the Transition Agreement by Consultant
and upon signature by the Client following receipt of the Transition Agreement. This Agreement and the Transition Agreement constitutes
the entire understanding of the parties relating to the subject matter and supersedes any previous oral or written communications, representations,
understanding, or agreement between the parties concerning such subject matter. This Agreement shall not be changed, modified, supplemented
or amended except by express written agreement signed by Consultant and the Client. The parties have entered into separate agreements
related to Consultant’s previous employment relationship with Client. These separate agreements govern the previous employment relationship
between Consultant and Client, have or may have provisions that survive termination of Consultant’s relationship with Client under
this Agreement, may be amended or superseded without regard to this Agreement, and are enforceable according to their terms without regard
to the enforcement provision of this Agreement.

 

[signatures
to follow on next page]

 

     

     

    

 

In
Witness Whereof, the parties have executed this Agreement effective as of the date first written above.

 

	Gain Therapeutics Inc.	 
	 	 
	By:	/s/ Khalid Islam	 
	 	Name: Khalid Islam, Ph.D.	 
	 	Title:   Chairman of
    the Board of Directors	 
	 	 
	Agreed to and Accepted:	 
	 	 
	 /s/ Eric I. Richman	 
	Eric I. Richman	 

 

     

     

    

 

Exhibit B

 

Employee Confidential Information and Inventions
Assignment AgreementExhibit 10.3

  

 

 

AMENDED AND RESTATED
EMPLOYMENT AGREEMENT

 

This Amended and Restated
Employment Agreement (“Agreement”) is effective as of September 20, 2022 (“Effective Date”),
by and between Gain Therapeutics, Inc. (“Company”) and Matthias Alder (“Executive”). This
Agreement amends, restates, and supersedes in its entirety the Employment Agreement between the Company and Executive entered into effective
October 15, 2021 (the “Prior Agreement”).

 

WHEREAS,
the Company desires to continue to retain the services of Executive, now in the role of Chief Executive Officer as further set forth
in this Agreement;

 

WHEREAS,
the Company’s Board of Directors (the “Board”) desires to appoint Executive as the Company’s President
and Chief Executive Officer as further set forth in this Agreement, effective as of the Effective Date; and

 

WHEREAS,
Executive desires to serve the Company in such capacity, subject to the terms and conditions of this Agreement;

 

NOW,
THEREFORE, for and in consideration of the mutual promises, covenants and obligations contained herein, the Company and Executive
agree as follows:

 

	1.	EMPLOYMENT
                                            BY THE COMPANY

 

1.1           Position.
Subject to terms set forth herein, effective as of the Effective Date, the Company agrees to continue to employ Executive, now in
the position of President and Chief Executive Officer, and Executive hereby accepts such continued employment in such new role. While
serving as Chief Executive Officer of the Company, Executive shall serve on the Board of Directors of the Company. At the Company’s
request, Executive shall serve the Company and/or its subsidiaries and affiliates in such other capacities in addition to the foregoing
as the Company shall designate, provided that such additional capacities are consistent with Executive’s position as the Company’s
Chief Executive Officer. In the event that Executive serves in any one or more of such additional capacities, Executive’s compensation
shall not automatically be increased on account of such additional service beyond that specified in this Agreement. During his employment
with the Company, Executive will continue to devote his best efforts and substantially all of his time and attention to the business
of the Company, except as provided in Section 4 below and for vacation periods and reasonable periods of illness or other incapacities
in accordance with the Company’s general employment policies.

 

1.2           Duties
and Exclusivity.

 

(a)            Executive:
(i) shall serve as the Company’s President and Chief Executive Officer, with responsibilities, duties, and authority usual
and customary for such position, subject to direction by the Company’s Board; (ii) shall report directly to the Chairman of
the Board; and (iii) agrees promptly and faithfully to comply with (1) all reasonable and lawful directions from the Board
or a designated Committee thereof, as managed by the Chairman of the Board, and (2) all present and future policies of the Company
in connection with the Company’s business.

 

(b)            Except
with the prior written approval of the Board (which may grant or withhold in its sole and absolute discretion), Executive shall devote
substantially all of Executive’s working time, attention, and energies to the business of the Company, except during any paid vacation
or other excused absence periods. Nothing in this section prevents Executive from (i) engaging in additional activities in connection
with personal investments and community affairs, and (ii) serving as a member of the board of directors of no more than one (1) organization
that is not a competitor of the Company and is approved by the Board; provided such activities do not individually or in the aggregate
interfere with the performance of Executive’s duties under this Agreement, violate the Company’s standards of conduct then
in effect, comply with the Company’s insider trading policies, or raise a conflict under the Company’s conflict of interest
policies.

 

    
	Gain Therapeutics, Inc. - 4800 Hampden Ln, St 200, Bethesda, MD 20814
	P: +1 301-500-1556 www.gaintherapeutics.com
	 1

 

     

    

 

   

 

1.3          Location.
Executive’s primary office location will continue to be at the Company’s corporate offices in Bethesda, Maryland. The
Company reserves the right to reasonably require Executive to perform his duties at places other than at his primary office location
from time to time, and to require reasonable business travel.

 

1.4          Term.
The term of this Agreement will commence on the Effective Date and will continue until terminated in accordance with Section 6.

 

1.5          Policies
and Procedures. The employment relationship between the parties will continue to be subject to the Company’s personnel policies
and procedures as they may be interpreted, adopted, revised or deleted from time to time in the Company’s sole discretion; provided
that if the terms of this Agreement differ from or are in conflict with the Company’s personnel policies or procedures, this Agreement
will control.

 

		2.	COMPENSATION

 

2.1          Base
Salary. As of the Effective Date, for services rendered by Executive pursuant to this Agreement, Executive will receive an annualized
base salary of five hundred thousand US dollars (US$ 500,000) as may be adjusted from time to time by the compensation committee of the
Board at its discretion (“Base Salary”), payable in accordance with the Company’s regular payroll schedule,
less any payroll withholding and deductions in accordance with applicable law.

 

2.2          Annual
Incentive. During Executive’s employment with the Company, and as determined by the Board in its sole discretion, Executive
will be eligible for an annual incentive cash bonus (“Annual Incentive”) with a target of fifty percent (50%) of the
Base Salary (“Target Annual Incentive”). The actual Annual Incentive earned in any particular year may be more or
less, including zero, than the Target Annual Incentive based on the achievement of Company and personal objectives established and approved
by the Board, and the achievement of which is determined at the discretion of the Board. Executive must remain employed by the Company
through the date of payment in order to remain eligible for such Annual Bonus. Any bonus awarded will be paid on or before March 15
of the year following the year for which the bonus is awarded.

 

2.3          Long-Term
Equity Incentives. Executive will be eligible for equity incentive grants as determined by the Board in its sole discretion from
time to time. Notwithstanding the foregoing, on or as soon as reasonably practicable following the Effective Date, Executive will receive
(a) an option to purchase up to 60,900 shares of the Company’s common stock, at an exercise price per share equal to fair
market value on the date of grant (the “Promotion Option”), and (b) 10,200 restricted stock units (the “Promotion
RSUs”), in each case, subject to the terms and conditions of the Gain Therapeutics Inc. 2022 Equity Incentive Plan (the “2022
Plan”) and the applicable award agreements thereunder. Subject in each case to Executive’s Continuous Service (as defined
in the 2022 Plan) through each applicable vesting date, (i) the Promotion Option will vest and become exercisable 25% on the first
anniversary of the Effective Date, with the remaining balance vesting and becoming exercisable in substantially equal monthly installments
over the three (3) years thereafter on the same day of the month as the Effective Date, and (ii) the Promotion RSUs will vest
25% on the first anniversary of the Effective Date, with the remaining balance vesting in substantially equal quarterly installments
every three (3) months over the three (3) years thereafter on the same day of the month as the Effective Date.

 

    
	Gain Therapeutics, Inc. - 4800 Hampden Ln, St 200, Bethesda, MD 20814
	P: +1 301-500-1556 www.gaintherapeutics.com
	 2

 

     

    

 

 

 

2.4          Business
and Entertainment Expenses. Subject to the Company’s standard policies and procedures for expense reimbursement as applied
to its executive employees generally, the Company will reimburse Executive for, or pay on behalf of Executive, reasonable out-of-pocket
expenses for Company-related travel, entertainment, professional licensing, continuing education and other expenses incurred by Executive
on behalf of the Company.

 

2.5          Other
Company Benefits. Executive will continue to be eligible to participate in all employee benefit plans, practices and programs maintained
by the Company and made available to its similarly situated executives. Executive will also be eligible to accrue annual vacation in
accordance with the Company’s standard policies and as otherwise provided for senior executive officers, as may be amended from
time to time, but in no event less than twenty (20) working days. Working days are all calendar days with the exception of Saturdays,
Sundays and the designated Company holidays.

 

		3.	INSURANCE
                                            AND INDEMNIFICATION

 

3.1          Life,
Disability and Key Man Insurance. In the event the Company establishes plans for life, disability and key man insurance, Executive
will be eligible to participate in those plans pursuant to the terms and conditions of those plans and their applicability to employees
such as Executive.

 

3.2          D&O
Insurance. The Company will obtain and maintain at the Company’s expense during the term of this Agreement and for six (6) years
thereafter liability insurance for the directors and officers of the Company (D&O insurance) for any acts or omissions of Executive
covered by the applicable insurance policy in an amount comparable to other companies in the biotechnology industry with a similar risk
profile.

 

3.3          Indemnification.
The Company and Executive acknowledge that they have entered into a separate indemnification agreement, and the Company will indemnify
Executive in accordance with the terms of such agreement.

 

		4.	OUTSIDE
                                            ACTIVITIES DURING EMPLOYMENT

 

4.1          Exclusive
Employment. Executive will not engage in any business activity which, in the reasonable judgment of the Board, is likely to interfere
with Executive’s ability to discharge his duties and responsibilities to the Company. Executive may engage in civic and not- for-profit
activities and participate in industry associations, including by joining civic boards and boards of industry associations so long as
such activities do not materially interfere with the performance of his duties hereunder. Executive may join the board of directors of
for profit companies with the prior approval of the Board.

 

    
	Gain Therapeutics, Inc. - 4800 Hampden Ln, St 200, Bethesda, MD 20814
	P: +1 301-500-1556 www.gaintherapeutics.com
	 3

 

     

    

 

 

 

4.2          No
Adverse Interests. Except as permitted by Section 4.3, Executive agrees not to acquire, assume or participate in, directly or
indirectly, any position, investment or interest known by him to be adverse or antagonistic to the Company, its business or prospects,
financial or otherwise, or engage in any business that creates a conflict of interest with his duties of loyalty to the Company.

  

4.3          Non-Competition
during Term of Agreement. During the term of this Agreement, except on behalf of the Company or as expressly authorized by the Board,
Executive will not directly or indirectly, whether as an officer, director, stockholder, partner, proprietor, associate, representative,
consultant, or in any capacity whatsoever engage in, become financially interested in, be employed by or have any business connection
with any other person, corporation, firm, partnership or other entity whatsoever which were known by him to compete directly with the
Company, throughout the world, in any line of business engaged in (or planned to be engaged in) by the Company; provided, however, that
anything above to the contrary notwithstanding, he or his immediate family may own, as a passive investor, securities of any competitor
corporation, so long as his direct holdings in any one such corporation will not in the aggregate constitute more than one percent (1%)
of the voting stock of such corporation.

 

		5.	CONFIDENTIAL
                                            INFORMATION, NON-COMPETITION AND NON-SOLICITATION

 

As a condition of continued
employment, Executive agrees to execute and abide by the Gain Therapeutics Inc. Employee Confidential Information And Inventions Assignment
Agreement, attached hereto as Exhibit A (“CIIAA”), which is incorporated herein by reference. The CIIAA
may be amended by the parties from time to time, and contains provisions that are intended by the parties to survive and that do survive
termination or expiration of this Agreement, including certain non-solicitation and non- competition covenants.

 

		6.	TERMINATION
                                            OF EMPLOYMENT

 

6.1          Definitions.
For purposes of this Section 6, the following terms have the following meanings:

 

“Accrued
Obligations” means (i) Executive’s earned but unpaid Base Salary through the Termination Date; (ii) the amount
of any Annual Incentive and any other annual, long-term, or other incentive award, in each case which relates to a completed fiscal year
or performance period, as applicable, not yet paid on or before the Termination Date; (iii) a lump-sum payment in respect of accrued
but unused vacation days at Executive’s per-business-day Base Salary rate in effect as of the Termination Date; and (iv) any
unpaid expense or other reimbursements due pursuant to Section 2.4 hereof.

 

“Beneficiary”
means the designee(s) listed in Exhibit B who are entitled to receive payments under Section 6.3 upon the death
of Executive.

 

“Cause”
means (i) Executive’s conviction of, or plea of guilty or nolo contendere to, any felony or any crime involving theft, embezzlement,
dishonesty or moral turpitude; (ii) any act by Executive constituting willful misconduct, deliberate malfeasance, dishonesty,
unethical conduct or gross negligence in the performance of his duties; (iii) Executive’s willful and continued failure to
perform any of the duties of his position (which has not been cured within thirty (30) days following the first written notice from the
Company describing such failure in reasonable detail); or (v) any material breach (which has not been cured within thirty (30) days
following the first written notice from the Company describing such breach in reasonable detail) by Executive of this Agreement or any
other agreement between Executive and the Company or any of its affiliates.

 

    
	Gain Therapeutics, Inc. - 4800 Hampden Ln, St 200, Bethesda, MD 20814
	P: +1 301-500-1556 www.gaintherapeutics.com
	 4

 

     

    

 

 

 

“Change of Control”
means the occurrence of any of the following: (i) any third party or group of third parties becomes the beneficial owner, directly
or indirectly, of securities of the Company representing more than fifty percent (50%) of the combined voting power of the Company’s
then outstanding securities; provided that if the third party or group of third parties is already deemed to own more than 50% of the
total fair market value or total voting power, then the acquisition of additional stock by such third party or group of third parties
will not constitute an additional Change in Control; (ii) the stockholders of the Company approve a plan of complete liquidation
of the Company; (iii) the sale or disposition of all or substantially all of the Company’s assets; or (iv) a merger,
consolidation or reorganization of the Company with or involving any other entity, other than a merger, consolidation or reorganization
that would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining
outstanding or by being converted into voting securities of the surviving entity) at least a 50% of the combined voting power of the
Company (or such surviving entity) outstanding immediately after such merger, consolidation or reorganization owned in approximately
the same proportion of such ownership by each of the prior shareholders as prior to the transaction.

 

“Change
of Control Period” means the period starting three (3) months prior to a Change of Control and ending twenty-four
(24) months after a Change of Control.

 

“Change
of Control Termination” means a termination of this Agreement during the Change of Control Period by the Company without Cause,
by Executive for Good Reason, or due to Executive’s death or Disability.

 

“COBRA”
means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended.

 

“Disability”
means Executive’s becoming incapacitated for a period of at least one hundred eighty (180) days in the aggregate during any twelve
(12) month period by accident, sickness or other circumstance that renders Executive mentally or physically incapable of performing the
material duties and services required of Executive hereunder on a full-time basis during such period, or based on the written certification
by two licensed physicians of the likely continuation of such condition for such period. This definition shall be interpreted
and applied consistent with the Americans with Disabilities Act, the Family and Medical Leave Act, and other applicable law.

 

“Good Reason”
means: (i) any material diminution of Executive’s authority, duties or responsibilities or the assignment to Executive of
duties or responsibilities which are materially inconsistent with Executive’s position; (ii) a material reduction by the Company
in Executive’s Base Salary other than a reduction that is also applicable in a substantially similar manner and proportion to the
other senior executives of the Company; (iii) a relocation of Executive’s place of employment to a location in excess of 50
miles from the Company’s current offices in Bethesda, Maryland; (iv) any material breach of this Agreement by the Company;
or (v) any failure by the Company to obtain the assumption of this Agreement by any successor or assign of the Company which, for
purposes of this provision, will be a material breach of this Agreement; provided, however, that, any such termination by Executive shall
only be deemed for Good Reason pursuant to this definition if: (1) Executive gives the Company written notice of his intent to terminate
for Good Reason within thirty (30) days following the later of the (x) first occurrence of the condition(s) that he believes
constitute(s) Good Reason or (y) Executive becoming aware of such condition(s), which notice shall describe such condition(s);
(2) the Company fails to remedy such condition(s) within thirty (30) days following receipt of the written notice (the “Cure
Period”); (3) the Company has not, prior to receiving such notice from Executive, already informed Executive that his
employment with the Company is being terminated; and (4) Executive voluntarily terminates his employment within thirty (30) days
following the end of the Cure Period.

 

    
	Gain Therapeutics, Inc. - 4800 Hampden Ln, St 200, Bethesda, MD 20814
	P: +1 301-500-1556 www.gaintherapeutics.com
	 5

 

     

    

 

 

  

“Pro-Rata Annual Incentive”
means an amount equal to (i) the Annual Incentive that Executive would have been eligible to receive for the calendar year that
includes the Termination Date if his employment hereunder had continued (as determined by the Board based upon the actual achievement
of the applicable performance goals), multiplied by (ii) a fraction, the numerator of which is the number of days he was employed
hereunder during such year and the denominator of which is the number of days in such year.

 

“Release”
means the execution of a separation agreement, including a general release of claims, with reasonable and customary terms, in the form
presented by the Company; provided, however, that in the event that the Severance Benefits (as defined below) will be provided under
this Agreement following Executive’s death, then the Release shall be revised as appropriate for Executive’s Beneficiary
to execute.

 

“Severance Period”
means the period starting on the Termination Date and ending twelve (12) months after the Termination Date, or in connection with a Change
of Control Termination, twenty- four (24) months after the Termination Date.

 

“Stock Awards”
means any future stock options, RSUs, restricted stock and such other awards granted pursuant to the Company’s stock option and
equity incentive award plans or agreements and any shares of stock issued upon exercise thereof.

 

“Termination Date”
means the date on which this Agreement and Executive’s employment hereunder terminates.

 

6.2           Termination
of Agreement. This Agreement and Executive’s employment with the Company is terminable at will by the Company or by Executive
for any reason or no reason, each by written notice to the other party effective upon receipt or on a later termination date agreed with
the other party. In addition, this Agreement terminates upon death or Disability of Executive.

 

6.3           Terminations
with Severance.

 

(a)            If
the Company terminates this Agreement without Cause, Executive terminates this Agreement for Good Reason, or this Agreement terminates
upon death or Disability of Executive, the Company will pay or award to Executive (or his Beneficiaries upon termination for the death
of Executive) the Accrued Obligations on the Termination Date, and subject to execution and non-revocation of the Release by Executive
(or Executive’s Beneficiary in the event of Executive’s death), on the date on which the Release may no longer be revoked,
the following payments and severance benefits (“Severance Benefits”):

 

(i)            an
amount equal to Executive’s Base Salary in effect immediately prior to the Termination Date that would be payable to Executive
if this Agreement continued during the applicable Severance Period;

 

    
	Gain Therapeutics, Inc. - 4800 Hampden Ln, St 200, Bethesda, MD 20814
	P: +1 301-500-1556 www.gaintherapeutics.com
	 6

 

     

    

 

 

 

(ii)            the
Pro-Rata Annual Incentive; or upon a Change of Control Termination, the Pro-Rata Annual Incentive and the amount of the Target Annual
Incentive that would accrue during the applicable Severance Period;

 

(iii)            for
the applicable Severance Period, the cost of continuation coverage pursuant to COBRA or applicable state continuation coverage laws,
for Executive and his eligible dependents who were covered under the Company’s health insurance plans as of the date of the termination
of this Agreement (provided that Executive will be solely responsible for all matters relating to his continuation of coverage pursuant
to COBRA or any corresponding state law, including, without limitation, his election of such coverage and his timely payment of premiums);

 

(iv)            for
the applicable Severance Period, the amount of any life insurance and long-term disability insurance premiums it was paying prior to
the date of the termination of this Agreement;

 

(v)            acceleration
of vesting of (A) Executive’s outstanding unvested Stock Awards that would have vested over the twelve (12) month period following
the date of termination had Executive remained continuously employed by the Company during such period, or (B) all of Executive’s
outstanding unvested Stock Awards if this Agreement is terminated pursuant to a Change of Control Termination, provided that if any unvested
Stock Awards have lapsed or been forfeited upon a termination during the Change of Control Period but prior to a Change of Control, the
Company will make a cash payment to the Executive, no later than ten (10) days after the effective date of the Change of Control,
equal to the economic value of the terminated Stock Award to Executive at the time of the Change of Control (calculated for stock options
as the difference between the exercise price of the option and the fair market value of the shares underlying the option at the time
of the Change of Control, and for stock awards as the fair market value of the shares at the time of the Change of Control). The provisions
concerning vesting pursuant to clauses (A) and (B) below will be cumulative and are hereby deemed to be a part of all equity
incentive grants, including the Initial Grants and any future stock options, RSUs, restricted stock and such other awards granted pursuant
to the Company’s stock option and equity incentive award plans or agreements and any shares of stock issued upon exercise thereof,
(each a “Stock Award”) and to supersede any less favorable provision in any agreement or plan regarding such Stock
Award.

 

(b)            Notwithstanding
anything herein, if this Agreement is terminated pursuant to Executive’s death or Disability and if the Company has paid for or
provided the Executive with life insurance or long term disability insurance coverage as set forth in Section 3.1, then the payment
pursuant to such insurance will replace the Company’s obligation to pay the Severance Benefits set forth in Section 6.3(a)(i) and
(iv).

 

(c)            As
a condition precedent to receipt of any Severance Benefits, Executive will provide the Company with the executed and effective Release,
within the time period stated therein, but in no event later than sixty (60) days after the date of Executive’s termination from
employment and must no longer be subject to revocation. Upon execution of the Release, Executive will be entitled to Severance Benefits
described herein. As a further condition to receipt of any Severance Benefits, Executive must comply with Executive’s post-termination
obligations under this Agreement and the CIIAA.

 

    
	Gain Therapeutics, Inc. - 4800 Hampden Ln, St 200, Bethesda, MD 20814
	P: +1 301-500-1556 www.gaintherapeutics.com
	 7

 

     

    

 

 

 

6.4           Terminations
without Severance. If this Agreement is terminated by Executive without Good Reason or by the Company for Cause, Executive will be
provided with the Accrued Obligations, but no other payments or severance benefits.

  

6.5           Cooperation
Obligations.

 

(a)            Resignation
from Positions. Upon the termination of Executive’s employment for any reason, Executive will immediately resign from each
position held with the Company and its affiliates as of the Termination Date, including his position on the Board and with any subsidiaries,
if requested to do so by the Company, subject to any applicable legal requirements regarding such resignation.

 

(b)            Transition
Activities. After delivery or receipt by Executive of any notice of termination, and for a reasonable period following any termination
of this Agreement (to include any period for which Executive has been provided Base Salary as a severance benefit), Executive will fully
cooperate with the Company in all matters relating to the winding up of Executive’s pending work and the orderly transfer of any
such pending work to such other employees as may be designated by the Company.

 

(c)            Return
of the Company’s Property. If the Company has delivered or received a notice of termination of this Agreement, the Company
will have the right, at its option, to require Executive to vacate his offices and to cease all activities on the Company’s
behalf prior to the effective date of termination. Upon the termination of this Agreement, as a condition to Executive’s
receipt of any post- termination benefits described in this Agreement, Executive will immediately surrender to the Company all
lists, books and records of, or in connection with, the Company’s business, and all other tangible and intangible property
belonging to the Company, it being distinctly understood that all such lists, books and records, and other property, are the
property of the Company. Executive will deliver to the Company a signed statement certifying compliance with this Section 6.5
prior to the receipt of any Severance Benefits described in this Agreement.

 

(d)            Litigation.
After the termination of this Agreement, Executive will cooperate with the Company in responding to the reasonable requests of the Company’s
Chairman of the Board or General Counsel, in connection with any and all existing or future litigation, arbitrations, mediations or investigations
brought by or against the Company, or its or their respective affiliates, agents, officers, directors or employees, whether administrative,
civil or criminal in nature, in which the Company reasonably deems Executive’s cooperation necessary or desirable. In such matters,
Executive agrees to provide the Company with reasonable advice, assistance and information, including offering and explaining evidence,
providing sworn statements, and participating in discovery and trial preparation and testimony. Executive also agrees to promptly send
the Company copies of all correspondence (for example, but not limited to, subpoenas) received by Executive in connection with any such
legal proceedings, unless Executive is expressly prohibited by law from so doing.

 

(e)            Expenses
and Fees. The Company will reimburse Executive for reasonable out- of-pocket expenses incurred by Executive as a result of his cooperation
with the obligations described in this Section 6.5 (b) and (d), within thirty (30) days of the presentation of appropriate
documentation thereof, in accordance with the Company’s standard reimbursement policies and procedures. Except as provided in the
preceding sentence, Executive will not be eligible for any compensation for activities performed pursuant to this Section 6.5 during
the applicable Severance Period. In the event the Company requests extensive time from the Executive in connection with this Section 6.5
(b) and/or (d) not within the Severance Period, the Company will pay Executive a compensation for activities performed based
on an hourly rate of 160th of Executive’s monthly Base Salary immediately preceding the termination of employment (the “Fees”).
In performing obligations under this Section 6.5(b) and (d) following termination of this Agreement, Executive agrees
and acknowledges that he will be serving as an independent contractor, not as a Company employee, and he will be entirely responsible
for the payment of all income taxes and any other taxes due and owing as a result of the payment of Fees, will not be eligible to participate
in any Company benefit plans while performing such services.

 

    
	Gain Therapeutics, Inc. - 4800 Hampden Ln, St 200, Bethesda, MD 20814
	P: +1 301-500-1556 www.gaintherapeutics.com
	 8

 

     

    

 

 

  

6.6           Modification
of Payments.

 

(a)            In
the event it is determined that any payment, right or distribution by the Company or any other person or entity to or for the benefit
of Executive pursuant to the terms of this Agreement or otherwise, in connection with, or arising out of, his employment with the Company
or a change in ownership or effective control of the Company or a substantial portion of its assets (a “Payment”)
is a “parachute payment” within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”)
on account of the aggregate value of the Payments due to Executive being equal to or greater than three times the “base amount,”
as defined in Section 280G(b)(3) of the Code, (the “Parachute Threshold”) so that Executive would be subject
to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”) and the net after-tax benefit that Executive
would receive by reducing the Payments to the Parachute Threshold is greater than the net after-tax benefit Executive would receive if
the full amount of the Payments were paid to Executive, then the Payments payable to Executive will be reduced (but not below zero) so
that the Payments due to Executive do not exceed the amount of the Parachute Threshold, reducing first any Payments under Section 6.3(a) hereof.

 

(b)            The
Company hereby agrees that, for purposes of determining whether any payment and benefits set forth in Section 6.3(a) above
would be subject to the Excise Tax, the non- compete set forth in the CIIAA above will be treated as an agreement for the performance
of personal services. The Company hereby agrees to indemnify, defend, and hold harmless Executive from and against any adverse impact,
tax, penalty, or excise tax resulting from the Company or accountant’s attribution of a value to the non-compete set forth in the
CIIAA that is less than the total compensation amount that would be disclosed under Item 402(c) of Securities and Exchange Commission
Regulation S-K if Executive had been a “named executive officer” of the Company in the year prior to year of the event that
triggers the Excise Tax, to the extent the use of such lesser amount results in a larger Excise Tax than Executive would have been subject
to had the Company or accountant attributed a value to the non-compete set forth in the CIIAA that is at least equal to the total compensation
amount disclosed under Item 402(c) of Securities and Exchange Commission Regulation S-K for such year.

 

6.7            Section 409A.

 

(a)            Notwithstanding
anything herein to the contrary, this Agreement is intended to be interpreted and applied so that the payment of the benefits set forth
herein will either be exempt from the requirements of Section 409A of the Code (“Section 409A”) or will
comply with the requirements of such provision.

 

(b)            Notwithstanding
any provision of this Agreement to the contrary, if Executive is a “specified employee” within the meaning of Section 409A,
any payments or arrangements due upon a termination of Executive’s employment under any arrangement that constitutes a “nonqualified
deferral of compensation” within the meaning of Section 409A and which do not otherwise qualify under the exemptions under
Treas. Regs. Section 1.409A-1 (including without limitation, the short-term deferral exemption or the permitted payments under Treas.
Regs. Section 1.409A-1(b)(9)(iii)(A)), will be delayed and paid or provided, without interest, on the earlier of (i) the date
which is six (6) months after Executive’s “separation from service” (as such term is defined in Section 409A
and the regulations and other published guidance thereunder) for any reason other than death, and (ii) the date of Executive’s
death.

 

    
	Gain Therapeutics, Inc. - 4800 Hampden Ln, St 200, Bethesda, MD 20814
	P: +1 301-500-1556 www.gaintherapeutics.com
	 9

 

     

    

 

 

 

(c)            After
any Termination Date, Executive will have no duties or responsibilities that are inconsistent with having a “separation from service”
within the meaning of Section 409A and, notwithstanding anything in the Agreement to the contrary, distributions upon termination
of employment of nonqualified deferred compensation may only be made upon a “separation from service” as determined under
Section 409A and such date will be the Termination Date for purposes of this Agreement. Each payment under this Agreement or otherwise
will be treated as a separate payment for purposes of Section 409A. In no event may Executive, directly or indirectly, designate
the calendar year of any payment to be made under this Agreement which constitutes a “nonqualified deferral of compensation”
within the meaning of Section 409A and to the extent an amount is payable within a time period, the time during which such amount
is paid will be in the discretion of the Company.

 

		7.	GENERAL
                                            PROVISIONS

 

7.1          Notices.
Any notices provided hereunder must be in writing and will be deemed effective upon the earlier of personal delivery or receipt if
delivered by mail or courier service, to the Company at its primary office location and to Executive at his address as listed on the
Company payroll or Executive’s then current place of abode.

 

7.2          Confidentiality.
Unless publicly disclosed by the Company, Executive will hold the provisions of this Agreement in strictest confidence and will not
publicize or disclose this Agreement in any manner whatsoever; provided, however, that Executive may disclose this Agreement: (a) to
Executive’s immediate family; (b) in confidence to his attorneys, accountants, auditors, tax preparers, and financial advisors;
(c) insofar as such disclosure may be necessary to enforce its terms or as otherwise permitted or required by law. In particular,
and without limitation, Executive agrees not to disclose the terms of this Agreement to any current or former employee of the Company.

 

7.3           Reasonableness
of Restrictions. Executive acknowledges and agrees that (a) he has read this Agreement in its entirety and understands it, (b) the
limitations imposed in this Agreement and the CIIAA do not prevent him from earning a living or pursuing his career following the termination
of this Agreement, and (c) the restrictions contained herein and therein are reasonable, proper, and necessitated by the Company’s
legitimate business interests. Executive represents and agrees that he is entering into this Agreement and the CIIAA freely and with
knowledge of its contents with the intent to be bound by the Agreement and the restrictions contained in it.

 

    
	Gain Therapeutics, Inc. - 4800 Hampden Ln, St 200, Bethesda, MD 20814
	P: +1 301-500-1556 www.gaintherapeutics.com
	 10

 

     

    

 

 

 

7.4          Arbitration
and Remedies. The parties recognize that litigation in federal or state courts or before federal or state administrative agencies
of disputes arising out of Executive’s employment with the Company or out of this Agreement, or Executive’s termination of
employment or termination of this Agreement, may not be in the best interests of either Executive or the Company, and may result in unnecessary
costs, delays, complexities, and uncertainty. The parties agree that any dispute between the parties arising out of or relating to the
negotiation, execution, performance or termination of this Agreement or Executive’s employment, including, but not limited to,
any claim arising out of this Agreement, claims under Title VII of the Civil Rights Act of 1964, as amended, the Civil Rights Act of
1991, the Age Discrimination in Employment Act of 1967, the Americans with Disabilities Act of 1990, Section 1981 of the Civil Rights
Act of 1966, as amended, the Family Medical Leave Act, Executive Retirement Income Security Act, and any similar federal, state or local
law, statute, regulation, or any common law doctrine, whether that dispute arises during or after employment, will be settled by binding
arbitration in accordance with the National Rules for the Resolution of Employment Disputes of the American Arbitration Association
by a single arbitrator selected in accordance with said rules; provided however, that this dispute resolution provision shall not apply
to any separate agreements between the parties that do not themselves specify arbitration as an exclusive remedy and further shall not
apply to discrimination, harassment, or retaliation claims to the extent prohibited by applicable law. As it may be impossible to assess
the damages caused by violation of this Agreement or any of its terms, the parties agree upon the threatened or actual violation of this
Agreement or any of its terms the aggrieved party will have the right to obtain injunctive relief from a court, without bond and without
prejudice to any other rights and remedies for a breach or threatened breach of this Agreement. The location for the arbitration will
be the Washington, D.C. metropolitan area. Any award made by such panel will be final, binding and conclusive on the parties for all
purposes, and judgment upon the award rendered by the arbitrators may be entered in any court having jurisdiction thereof. To the extent
applicable law prohibits mandatory arbitration of discrimination, harassment, and/or retaliation claims, in the event Executive intends
to bring multiple claims, including a discrimination, harassment, and/or retaliation claim, the discrimination, harassment, and/or retaliation
claim may be publicly filed with a court, while any other claims will remain subject to mandatory arbitration. The arbitrators’
fees and expenses and all administrative fees and expenses associated with the filing of the arbitration will be borne by the Company;
provided however, that at Executive’s option, Executive may voluntarily pay up to one-half the costs and fees. The parties acknowledge
and agree that their obligations to arbitrate under this Section survive the termination of this Agreement and continue after the
termination of the employment relationship between Executive and the Company. The parties each further agree that the arbitration provisions
of this Agreement will provide each party with its exclusive remedy, and each party expressly waives any right it might have to seek
redress in any other forum, except as otherwise expressly provided in this Agreement. By election arbitration as the means for final
settlement of all claims (other than the Excluded Claims), the parties hereby waive their respective rights to, and agree not to,
sue each other in any action in a Federal, State or local court with respect to such claims, but may seek to enforce in court an arbitration
award rendered pursuant to this Agreement. The parties specifically agree to waive their respective rights to a trial by jury, and further
agree that no demand, request or motion will be made for trial by jury.

   

7.5          Surviving
Clauses. Sections 3.2, 3.3, 5, 6, 7 and Exhibit A (the CIIAA), attached hereto (including the definitions of any defined terms
referenced therein) will survive any termination or expiration of this Agreement.

 

7.6          Severability.
In the event that a court finds this Agreement, or any of its restrictions, to be ambiguous, unenforceable, or invalid, the parties
agree that the court will read the Agreement as a whole and interpret the restriction(s) at issue to be enforceable and valid to
the maximum extent allowed by law. If the court declines to enforce this Agreement in the manner provided in this Section 7.6, Executive
and the Company agree that this Agreement will be automatically modified to provide the Company with the maximum protection of its business
interests allowed by law and Executive agrees to be bound by this Agreement as modified. In case any one or more of the provisions, subsections,
or sentences contained in this Agreement will, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity,
illegality or unenforceability will not affect the other provisions of this Agreement, and this Agreement will be construed as if such
invalid, illegal or unenforceable provision had never been contained herein.

 

    
	Gain Therapeutics, Inc. - 4800 Hampden Ln, St 200, Bethesda, MD 20814
	P: +1 301-500-1556 www.gaintherapeutics.com
	 11

 

     

    

 

 

 

7.7           Waiver.
If either party should waive any breach of any provisions of this Agreement or fail to enforce performance by the other party, he
or it will not thereby be deemed to have waived any preceding or succeeding breach or performance of the same or any other provision
of this Agreement. Any such waiver will be effective only if made in writing and signed by the Party waiving such breach or performance.

 

7.8           Complete
Agreement; Amendment. This Agreement and its Exhibits, constitute the entire agreement between Executive and the Company and it is
the complete, final, and exclusive embodiment of their agreement with regard to this subject matter. This Agreement replaces all previous
agreements regarding the service relationship of Executive with the Company, including, but not limited to, the Prior Agreement. It is
entered into without reliance on any promise or representation other than those expressly contained herein. This Agreement cannot be
modified or amended except in a writing signed by an authorized representative of the Company and Executive.

 

7.9         Counterparts.
This Agreement may be executed in separate counterparts, any one of which need not contain signatures of more than one party, but
all of which taken together will constitute one and the same Agreement.

 

7.10        Assignment;
Assumption by Successor; Non-transferability of Interest.

 

(a)            The
Company may assign this Agreement, without the consent of Executive, to any 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. The Company will require
any successor (whether direct or indirect, by purchase, merger or otherwise) to all or substantially all of the business or assets of
the Company expressly to assume and to agree to perform this Agreement in the same manner and to the same extent that the Company would
be required to perform it if no such succession had taken place; provided, however, that no such assumption will relieve the Company
of its obligations hereunder. As used in this Agreement, the “Company” will mean the Company as herein defined and any successor
to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by operation of law or otherwise.

 

(b)            None
of the rights of Executive to receive any form of compensation payable pursuant to this Agreement will be assignable or transferable
except through a testamentary disposition or by the laws of descent and distribution upon the death of Executive. Any attempted assignment,
transfer, conveyance, or other disposition (other than as aforesaid) of any interest in the rights of Executive to receive any form of
compensation to be made by the Company pursuant to this Agreement will be void.

 

(c)            Notwithstanding
the foregoing Section 7.10(b), this Agreement and all rights of Executive hereunder shall inure to the benefit of, and be enforceable
by, the Beneficiaries or Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees,
devisees and legatees. If Executive should die while any amounts under Section 6 of this Agreement would still be payable to him
hereunder if he had continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms
of this Agreement to the Beneficiaries or Executive’s devisee, legatee or other designee or, should there be no such designee,
to Executive’s estate.

  

7.11        Headings.
The headings of the sections hereof are inserted for convenience only and will not be deemed to constitute a part hereof nor to affect
the meaning thereof.

 

7.12        Construction.
The language in all parts of this Agreement will in all cases be construed simply, according to its fair meaning, and not strictly
for or against any of the parties hereto. Without limitation, there will be no presumption against any party on the ground that such
party was responsible for drafting this Agreement or any part thereof.

 

7.13        Choice
of Law. All questions concerning the construction, validity, interpretation of this Agreement will be governed by the laws of Maryland
as applicable to contracts made and wholly performed within Maryland by residents of that state.

 

[Signatures to follow on next page]

 

    
	Gain Therapeutics, Inc. - 4800 Hampden Ln, St 200, Bethesda, MD 20814
	P: +1 301-500-1556 www.gaintherapeutics.com
	 12

 

     

    

 

  

 

IN
WITNESS WHEREOF, the parties have executed this Agreement on the day and year first above written.

   

	GAIN THERAPEUTICS, INC.:	 
	 	 
	/s/ Khalid Islam	 
	Name:	Khalid Islam, Ph.D.	 
	Title:	Chairman of the Board of Directors	 
	 	 
	EXECUTIVE:	 
	 	 
	/s/ Matthias Alder	 
	Name:	Matthias Alder	 

 

    
	Gain Therapeutics, Inc. - 4800 Hampden Ln, St 200, Bethesda, MD 20814
	P: +1 301-500-1556 www.gaintherapeutics.com
	 13

 

     

    

 

 

 

Exhibit A

 

Gain
Therapeutics Inc. Employee Confidential Information And Inventions Assignment Agreement

 

    
	Gain Therapeutics, Inc. - 4800 Hampden Ln, St 200, Bethesda, MD 20814
	P: +1 301-500-1556 www.gaintherapeutics.com
	 14

 

     

    

 

 

 

Exhibit B

  

BENEFICIARIES

 

    
	Gain Therapeutics, Inc. - 4800 Hampden Ln, St 200, Bethesda, MD 20814
	P: +1 301-500-1556 www.gaintherapeutics.com
	 15

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