Form of Leak-Out Agreement, by and between Seneca Biopharma, Inc. and the investor party thereto

Exhibit 10.7

LEAK-OUT AGREEMENT

_________ __, 202_

This agreement (the "Leak-Out Agreement") is being delivered to you in connection with an understanding by and between Seneca Biopharma, Inc., a Delaware corporation to be renamed "Palisade Bio, Inc." (the "Company"), and the person or persons named on the signature pages hereto (collectively, the "Holder"). Capitalized terms not defined herein shall have the meanings ascribed to them in the Securities Purchase Agreement (defined below).

Reference is hereby made to (i) the Securities Purchase Agreement (the "Securities Purchase Agreement"), dated December 16, 2020, by and among the Company, Leading BioSciences, Inc., a Delaware corporation ("Leading BioSciences Private Company"), the Holder and the other investors listed on the signature pages attached thereto (such other investors, the "Other Holders") in connection with the offering, pursuant to which (x) Leading BioSciences Private Company has agreed to issue to the Holder shares of preferred stock, par value $0.001 per share of Leading BioSciences Private Company (the "Leading BioSciences Private Preferred Shares") and (y) the Company has agreed to issue Warrants (together with the Leading BioSciences Private Preferred Shares, the "Securities") which will be exercisable to purchase shares of the Company's common stock, par value $0.01 per share (the "Common Stock") and (ii) that certain Agreement and Plan of Merger among the Company, Townsgate Acquisition Sub 1, Inc., and Leading BioSciences Private Company, dated as of December 16, 2020 pursuant to which Townsgate Acquisition Sub 1, Inc. will merge with and into Leading BioSciences Private Company, with Leading BioSciences Private Company surviving the merger as a wholly-owned subsidiary of the Company.

This Leak-Out Agreement shall only become effective from the date that the Holder executes this Agreement and the Company or its agent has notified the Holder in writing that each Other Holder executes an agreement (collectively, the "Other Leak-Out Agreements") regarding such Other Holder's trading with terms that are no less restrictive than the terms contained herein.

The Holder agrees solely with the Company that from the Closing Date and ending on the Final Reset Date (such period, the "Restricted Period"), neither the Holder, nor any affiliate of the Holder which (x) had or has knowledge of the transactions contemplated by the Securities Purchase Agreement, (y) has or shares discretion relating to the Holder's investments or trading or information concerning the Holder's investments, including in respect of the Securities, or (z) is subject to such Holder's review or input concerning such affiliate's investments or trading, collectively, shall sell, dispose or otherwise transfer, directly or indirectly, (including, without limitation, any sales, short sales, swaps or any derivative transactions that would be equivalent to any sales or short positions) on any Trading Day during the Restricted Period (any such date, a "Date of Determination"), any securities issued and issuable pursuant to any of the Transaction Documents (collectively, the "Restricted Securities"), in an amount representing more than 20% of the trading volume of Common Stock as reported by Bloomberg, LP on each applicable Date of Determination; provided, however, that, subject to the immediately following proviso, such percentage shall be reduced to 12% of the trading volume of Common Stock as reported by Bloomberg, LP on each applicable Date of Determination during the ten (10) Trading Day period ending on each Reset Date (each such period, a "Restricted Pricing Period"); provided, further, such percentage during a Restricted Pricing Period shall be restored to 20% of the trading volume of Common Stock as reported by Bloomberg, LP on each applicable Date of Determination in the event the trading volume of Common Stock as reported by Bloomberg, LP on such applicable Date of Determination equals or exceeds 200% of the arithmetic average of the trading volume of Common Stock as reported by Bloomberg, LP on the five (5) Trading Days immediately preceding such Date of Determination. For the avoidance of doubt, the Restricted Securities shall not include any securities of the Company acquired other than pursuant to the Transaction Documents.

Notwithstanding anything herein to the contrary, during the Restricted Period, the Holder may, directly or indirectly, sell or transfer all, but not less than all, of any Restricted Securities to any Person (an "Assignee") in a transaction which does not need to be reported on the consolidated tape on the Principal Market, without complying with (or otherwise limited by) the restrictions set forth in this Leak-Out Agreement; provided, that as a condition to any such sale or transfer an authorized signatory of the Company and such Assignee duly execute and deliver a leak-out agreement in the form of this Leak-Out Agreement.

Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Leak-Out Agreement must be in writing and shall be given in accordance with the terms of the Securities Purchase Agreement.

This Leak-Out Agreement together with the Transaction Documents constitute the entire agreement among the parties hereto with respect to the subject matter hereof and supersede all prior negotiations, letters and understandings relating to the subject matter hereof and are fully binding on the parties hereto.

This Leak-Out Agreement may be executed simultaneously in any number of counterparts. Each counterpart shall be deemed to be an original, and all such counterparts shall constitute one and the same instrument. This Leak-Out Agreement may be executed and accepted by facsimile or PDF signature and any such signature shall be of the same force and effect as an original signature.

The terms of this Leak-Out Agreement shall be binding upon and shall inure to the benefit of each of the parties hereto and their respective successors and assigns.

This Leak-Out Agreement may not be amended or modified except in writing signed by each of the parties hereto.

All questions concerning the construction, validity, enforcement and interpretation of this Leak-Out Agreement shall be governed by Section 10(a) of the Securities Purchase Agreement.

Each party hereto acknowledges that, in view of the uniqueness of the transactions contemplated by this Leak-Out Agreement, the other party or parties hereto may not have an adequate remedy at law for money damages in the event that this Leak-Out Agreement has not been performed in accordance with its terms, and therefore agrees that such other party or parties shall be entitled to seek specific enforcement of the terms hereof in addition to any other remedy it may seek, at law or in equity.

The obligations of the Holder under this Leak-Out Agreement are several and not joint with the obligations of any Other Holder, and the Holder shall not be responsible in any way for the performance of the obligations of any Other Holder under any such Other Leak-Out Agreement. Nothing contained herein, in this Leak-Out Agreement or in any other agreement, and no action taken by the Holder pursuant hereto, shall be deemed to constitute the Holder and Other Holders as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Holder and the Other Holders are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by this Leak-Out Agreement or any Other Leak-Out Agreement and the Company acknowledges that the Holder and the Other Holders are not acting in concert or as a group with respect to such obligations or the transactions contemplated by this Leak-Out Agreement or any Other Leak-Out Agreement. The Company and the Holder confirm that the Holder has independently participated in the negotiation of the transactions contemplated hereby with the advice of its own counsel and advisors. The Holder shall be entitled to independently protect and enforce its rights, including, without limitation, the rights arising out of this Leak-Out Agreement, and it shall not be necessary for any Other Holder to be joined as an additional party in any proceeding for such purpose.

The Company hereby represents and warrants as of the date hereof and covenants and agrees from and after the date hereof that none of the terms offered to any Other Holder with respect to any restrictions on the sale of shares of Common Stock substantially in the form of this Leak-Out Agreement (or any amendment, modification, waiver or release thereof) (each a "Leak-Out Document"), is or will be more favorable to such Other Holder than those of the Holder and this Leak-Out Agreement (other than the reimbursement of legal fees). If, and whenever on or after the date hereof, the Company enters into a Leak-Out Document with terms that are materially different from this Leak-Out Agreement, then (i) the Company shall provide notice thereof to the Holder promptly following the occurrence thereof and (ii) the terms and conditions of this Leak-Out Agreement shall be, without any further action by the Holder or the Company, automatically amended and modified in an economically and legally equivalent manner such that the Holder shall receive the benefit of the more favorable terms and/or conditions (as the case may be) set forth in such Leak-Out Document, provided that upon written notice to the Company at any time the Holder may elect not to accept the benefit of any such amended or modified term or condition, in which event the term or condition contained in this Leak-Out Agreement shall apply to the Holder as it was in effect immediately prior to such amendment or modification as if such amendment or modification never occurred with respect to the Holder. The provisions of this paragraph shall apply similarly and equally to each Leak-Out Document.

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The parties hereto have executed this Leak-Out Agreement as of the date first set forth above.

Agreed to and Accepted:

"HOLDER"

__________________

By: ____________________

Name:

Title: