Document:

exv10w52

 

Exhibit 10.52

AMENDMENT TO EMPLOYMENT AGREEMENT

          Amendment to the Employment Agreement dated as of November 15, 2006 by and between
CytoCore, Inc. (“Company” ) and Dr. Augusto Ocana (“Ocana”). The parties thereto agree as
follows:

          1. Upon execution of this Agreement, Ocana shall resign as CEO of the Company and as a member
of its Board of Directors of the Company and shall cease to be an employee of the Company.
Thereafter, Ocana shall provide the following services to the Company as a Consultant
(“Consultant”).

          2. Consultant shall devote a substantial amount of his time and effort to develop a
distribution system for the Company’s products in Europe and Latin America. Consultant shall
identify reputable and experienced European and Latin American distributors and upon authorization
by the Company negotiate the terms of distribution agreements, subject to the Company’s approval
and execution of such agreements (“Ocana Distributors”). The Ocana Distributors shall be assigned
exclusive “Areas” so that the major markets in Europe and Latin America will be adequately served.
The Company shall determine the Areas, transfer pricing and minimum quantities acceptable to the
Company to enter into any distribution agreements. Upon execution of the distribution agreements,
Consultant shall work with the Ocana Distributors on the Company’s behalf to implement said
agreements.

          3. Consultant shall receive a commission of 3% of gross revenue received from the Ocana
Distributors for Company products sold to them. The Company may terminate any or all of the Ocana
Distributors upon the Company’s determination that such Distributor(s) are not producing sufficient
sales, poor payment history with the Company or maintaining a 35%

 

 

or greater profit margin on the Company’s sale of its products to such Distributor(s). Gross
sales shall be determined on the basis of F.O.B., point of manufacture. In addition, gross sales
shall be reduced by refunds, returns or allowances and bad debts.

          4. (a) The commission shall be paid to Consultant during the life of any agreement with an Ocana Distributor, including any renewals thereof and shall continue
beyond the termination or expiration of this Agreement.

               (b) Consultant shall receive a monthly advance fee (“Draw”) of $5,000/month to be offset
against future commissions earned by Consultant. Such Draw will be increased to $7,500/month in
the event Consultant delivers a distribution agreement accepted and executed by the Company, but
the sale of Company products is delayed until the Company has received a “CE” approval.

               (c) 35% of the commissions due Consultant shall be paid upon delivery of inventory to Ocana
Distributor, reduced by Draw previously paid by the Company to Consultant; the balance shall be
paid with 10 days after payment by the Ocana Distributor has cleared.

               (d) The Company will provide Consultant with the basis upon which the Company has determined commissions to be due to Consultant. Consultant may request an
audit of such calculation. The Company shall perform such audit, but Consultant will be
charged for such expense if the audit determines that the commission paid to the Consultant is less
than 95% of the correct commission amount.

               (e) Payment of commissions shall be paid in U.S. Dollars.

          5. The term of this agreement shall be on a month-to-month basis, but

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the Company may not terminate this Agreement for at least 90 days from the date hereof.
Notwithstanding the foregoing, the Company may continue the agreement without continuing to pay a
Draw if, in the company’s sole discretion it determines that progress in implementing the Ocana
Distributor system is not proceeding as rapidly as anticipated.

          6. Consultant confirms that he has received, or is entitled to receive,
the following additional compensation.

               (a) A warrant to purchase 500,000 shares of the Company’s common stock at the exercise price
equal to the closing price of such stock on the OTC Bulletin Board on November 15, 2006 less
331/3%.

               (b) A warrant to purchase 500,000 shares of the Company’s common stock based on the closing
price of the Company’s common stock listed on the OTC Bulletin Board having been not less than $.30
per share during thirty (30) days out of any consecutive forty five (45) day period during which
the Company’s common stock is traded. The exercise price of the warrant is the average closing
price of the Company’s common stock during such forty five (45) day period less a discount of
331/3%.

               (c) Consultant shall continue to be covered under any medical, dental, disability, life
insurance and other Company benefit plans and programs offered to its executives as long as
Consultant remains as a consultant to the Company, but at least until December 31, 2007.

               (d) Consultant is authorized to incur reasonable, ordinary and necessary business expenses in
the performance of his duties, except that any expense of $200.00 or higher shall require the prior
approval of the CFO of the Company.

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               (e) The Company shall reimburse Consultant for his monthly office rent at Carnegie Center
through December 31, 2007.

               (f) The Company shall pay Consultant the sum of $45,000 in three (3) equal monthly
installments commencing on August 15, 2007 as additional compensation. Such payments shall be
subject to federal and state tax withholding. Ordinary and necessary expenses of the Consultant
relating to Company business incurred prior to the date of Consultant’s resignation shall be paid
by the Company in accordance with the company’s policy regarding reimbursement of employee
expenses.

          7. Consultant hereby confirms his obligation to comply with Sections 6, 7, 8, 9 and 10
of the “Employment Agreement” and be subject to the exercise by the Company of its remedies as set
forth in Section 10 thereof. Notwithstanding the foregoing, the Company will release Consultant
from his obligations to comply with the restrictions set forth in Section 7, 8 and 9 of the
Employment Agreement by relinquishing his right to receive commissions from the Ocana Distributors,
effective on the date Consultant notifies the Company in writing that he is relieved of such
compliance obligations.

          8. Any inconsistency between the terms of this Amendment and the terms of the Agreement it
amends shall be resolved in favor of this Amendment. Any provision in the Employment Agreement
which is not inconsistent with the terms of this Amendment shall remain in full force and effect.
However, Compensation as defined in the Employment Agreement shall only refer to the consideration
set forth in this Amendment.

          9. Consultant agrees, ratifies and confirms that his resignation and change of his
responsibilities shall be deemed to be a voluntary resignation and not a “Termination Without

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Cause” or a “Termination for Good Reason” as such terms are defined in the Employment
Agreement.

          10. Consultant has entered into this Amendment voluntarily and after receiving the
advice of and consultation with his attorney. He understands the meaning and consequences to
him resulting from his execution of this Amendment.

          11. The parties hereto shall jointly issue a press release relating to the change of
responsibilities of Consultant.

          12. This Amendment shall be governed by and construed under the laws of the State of Illinois.

          IN WITNESS WHEREOF, the parties hereto have set their hands this 12 day of July, 2007.

	 	 	 	 	 
	 	CYTOCORE, INC.

 	 
	 	By:  	/s/ Illegible
 	 
	 
	 	 	 
	 	/s/ Dr. Augusto Ocana
 	 
	 	Dr. Augusto Ocana 	 
	 	 	 
	 

5exv10w53

 

Exhibit 10.53

SECOND AMENDMENT TO EMPLOYMENT AGREEMENT

     Second Amendment to the Employment Agreement dated as of November 15, 2006 (“Employment
Agreement”) by and between CYTOCORE, INC. (“Company”) and DR. AUGUSTO OCANA (“Ocana”). The
parties thereto agree as follows:

     1. Commencing on December 1, 2007 Ocana shall be employed by the Company as its President of
International Operations. Ocana shall devote a substantial amount of his time and effort to develop
a distribution system for the Company’s products in Europe, Latin America and Asia.. Ocana shall
identify reputable and experienced European, Latin American and Asian distributors and upon
authorization by the Company negotiate the terms of distribution agreements with them, subject to
the Company’s approval and execution of such agreements (“Ocana Distributors”). The Ocana
Distributors shall be assigned exclusive ‘Areas’ so that the major markets in Europe, Latin America
and Asia will be adequately served. The Company shall determine the Areas, transfer pricing and
minimum quantities acceptable to the Company to enter into any distribution agreements. Upon
execution of the distribution agreements, Ocana shall work with the Ocana Distributors on the
Company’s behalf to implement said agreements.

     2. In that capacity, Ocana shall receive the following compensation:

     (a) a commission of 3% of gross revenue received from the Ocana Distributors for
Company products sold to them. The Company may terminate any or all of the Ocana Distributors upon
the Company’s determination that such Distributor(s) are not producing sufficient sales in its
Area, exhibiting poor payment history with the Company or failing to maintain a 35% or greater
profit margin on the Company’s sale of its products to such

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Distributor(s). In addition, gross sales shall be reduced by refunds, returns or allowances, taxes
and bad debts.

     (b) The commission due on the sale of Company products to the Ocana Distributors
shall be paid to Ocana during the term of this Agreement including any renewals thereof. Upon
the expiration or earlier termination of this Agreement, Ocana shall receive 3% of gross
revenue during the 12 months after the expiration or earlier termination date; 2% of gross revenues
during the following 12 months after the expiration or earlier termination date of this Agreement and
1% during the third year after the expiration or earlier termination date of this Agreement.
35% of the commissions due Ocana shall be paid upon delivery of products to each Ocana
Distributor; the balance shall be paid within 10 days after payment by the Ocana Distributor has cleared.
Payment of commissions shall be paid in U.S. Dollars.

     The Company will provide Ocana with the basis upon which the Company has determined his
commissions. Ocana may request an audit of such calculation. The Company shall perform such audit,
but Ocana will be charged for such expense if the audit determines that the commission paid to
Ocana is not less than 95% of the correct commission amount.

     (c) Ocana will work with the Company’s management to identify and appoint distributors of the Company’s products in the United States. Ocana shall receive a commission
of 1 and l/2% of gross revenue (as defined above) from the sale of the Company’s products to such
distributors for a period of 2 years, commencing on the first sale of the Company’s products
to each such United States distributor. Such commission shall be earned upon the reasonable
determination of the President of the Company that Ocana’s assistance materially aided in
securing the distributor. The United States shall be deemed to be the 50 states, Puerto Rico
and U.S. Territories.

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     (d) a salary of $10,000 per month, commencing on December 1, 2007. Salary paid
hereunder shall be subject to all appropriate federal and state withholding practices of the
Company.

     Draws received by Ocana under the Amendment to Employment Agreement dated July 2007 shall
continue to be treated as offsets against commissions earned by Ocana from the Ocana Distributors
until repaid in full.

     (e) Ocana will participate in any medical, dental, disability, life insurance and other
Executive benefit plans of the Company which are made available to other executives of the Company;
provided, however, that any such benefits for Company executives as a group may be changed,
modified or revoked at the discretion of the Company on not less than 90 days prior written notice.

     (f) Ocana is authorized to incur reasonable, ordinary and necessary business expenses in the
performance of his duties hereunder and the Company shall reimburse him, or pay the expenses, in
accordance with the policies established by the Company within 30 days of submission of adequate
substantiation of such expenses. During the term of this Agreement and any renewal thereof Ocana
shall receive an automobile allowance of $550.00 per month.

     (g) During the term of this agreement and any renewal thereof, the Company shall reimburse
Ocana for his monthly office rent at Carnegie Center.

     (h) Ocana will be nominated for membership to the Board of Directors of the Company
at its next scheduled meeting.

     3. The term of this Agreement shall commence on December 1, 2007 and continue in full
force and effect until November 30, 2008 and may be extended for additional 12 month periods upon
notice no later than September 30 of each year. Notwithstanding the foregoing,

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either party may terminate this Agreement upon not less than 60 days prior written notice to the
other.

     4. Ocana shall be eligible to receive the following grants of warrants based on
performance:

     (a) a warrant to purchase 15,000 shares of common stock of the Company should sales to Ocana
Distributors equal or exceed U.S. $20,000,000 during calendar year 2008.

     (b) a warrant to purchase 15,000 shares of common stock of the Company should sales to Ocana
Distributors equal or exceed U.S. $40,000,000 during calendar year 2008.

     (c) a warrant to purchase 15,000 shares of common stock of the Company should sales to Ocana
Distributors equal or exceed U.S. $40,000,000 during calendar year 2009.

     (d) a warrant to purchase 15,000 shares of common stock of the Company should sales to Ocana
Distributors equal or exceed U.S. $60,000,000 during calendar year 2009.

     (e) a warrant to purchase 15,000 shares of common stock of the Company should sales to Ocana
Distributors equal or exceed U.S. $60,000,000 during calendar year 2010.

     (f) a warrant to purchase 15,000 shares of common stock of the Company should sales to Ocana
Distributors equal or exceed U.S. $90,000,000 during calendar year 2010.

     (g) a warrant to purchase 20,000 shares of common stock of the Company should the closing
price of the Company’s common stock exceed $5.00 per share during 30 trading days out of any
consecutive 45 trading days.

     (h) a warrant to purchase 20,000 shares of common stock of the Company should the closing
price of the Company’s common stock exceed $7.00 per share during 30 trading days out of any
consecutive 45 trading days.

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     (i) a warrant to purchase 20,000 shares of common stock of the Company should the closing
price of the Company’s common stock exceed $10.00 per share during 30 trading days out of any
consecutive 45 trading days.

     (j) a warrant to purchase 20,000 shares of common stock of the Company should the closing
price of the Company’s common stock exceed $12.00 per share during 30 trading days out of any
consecutive 45 trading days.

     The exercise price for each of the warrants shall be fair market value on the date each such
warrant may be exercised taking into consideration the restriction on transferability of such
shares at the time of exercise.

     5. Ocana hereby confirms his obligation to comply with Sections 6, 7, 8, 9 and 10 of the
Employment Agreement and be subject to the exercise by the Company of its remedies as set forth in
Section 10 thereof. Notwithstanding the foregoing, the Company will release Ocana from his
obligations to comply with the restrictions set forth in Section 7, 8 and 9 of the Employment
Agreement by relinquishing his right to receive commissions from the Ocana Distributors, effective
on the date Ocana notifies the Company in writing that he elects to be relieved of such compliance
obligations.

     6. Any inconsistency between the terms of this Second Amendment and the terms of the
Employment Agreement and Amendment shall be resolved in favor of this Second Amendment. Any
provision in the Employment Agreement and Amendment which is not inconsistent with the terms of
this Second Amendment shall remain in full force and effect. However, Compensation as defined in
the Employment Agreement shall only refer to the consideration set forth in this Amendment.

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     7. Ocana has entered into this Second Amendment voluntarily and after receiving the advice of
and consultation with his attorney. He understands the meaning and consequences to him resulting
from his execution of this Second Amendment.

     8. The parties hereto shall jointly issue a press release relating to the change of
responsibilities of Ocana.

     9. This Second Amendment shall be governed by and construed under the laws of the State of
Illinois.

      
    IN WITNESS WHEREOF, the parties hereto
have set their hands as of this      
day of November, 2007.

	 	 	 	 	 
	 	CYTOCORE, INC.

 	 
	 	By:  	
 	 
	 
	 	 	 
	 	 	 
	 	Dr. Augusto Ocana 	 
	 	 	 
	 

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