Document:

EX-10.26

 

EXHIBIT
10.26

AMENDMENT NO. 1 TO

EMPLOYMENT AGREEMENT

     This Amendment No. 1 (this “Amendment”), dated as of May 31, 2007, to the Employment Agreement
(“Agreement”), dated as of October 3, 2003, between Robert Deans (“Employee”) and ADVANCED
BIOTHERAPEUTICS, INC. (“Employer”).

     WHEREAS, Employee is employed by Advanced Biotherapeutics, Inc., a wholly-owned subsidiary of
Athersys, Inc. (“Athersys”); and

     WHEREAS, Employer and Employee wish to amend the Agreement in connection with the planned
merger (the “Merger”) of Athersys with a wholly-owned subsidiary of a shell company (as such term
is defined in Rule 12b-2 under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)) that has a class of equity securities registered under Section 12 of the Exchange Act
(“PubCo”); and

     WHEREAS, concurrent with and as a condition to the closing of the Merger, PubCo intends to
conduct a private placement transaction pursuant to Regulation D promulgated under the Securities
Act of 1933, as amended, whereby PubCo will receive gross proceeds of at least $40 million as
consideration for the issuance of its equity securities (the “Offering”).

     NOW, THEREFORE, the parties hereto, intending to be legally bound, agree as follows:

     1. Notwithstanding anything to the contrary in the Agreement, neither the consummation of the
Merger nor the consummation of the Offering shall be deemed a “Change in Control” for purposes of
the Agreement.

     2. Upon consummation of the Offering, the grant of 20,000 stock options that was contemplated
as a milestone payment in Section 3 of the Agreement will be waived by Employee and be deleted from
the Agreement.

     3. This Amendment and the Agreement shall bind and inure to the benefit of and be enforceable
by Employee, Employer and their respective heirs, executors, personal representatives, successors
and assigns, except that neither party may assign any rights or delegate any obligations hereunder
without the prior written consent of the other party. Notwithstanding anything to the contrary in
the foregoing, Employee hereby consents to the assignment by Employer of all of its rights and
obligations hereunder to any successor to Employer by merger or consolidation or purchase of all or
substantially all of Employer’s assets, including, without limitation, any deemed assignment that
occurs as a result of the consummation of the Merger.

     3. This Amendment may be executed in two or more counterparts, each of which constitutes an
original, and all of which taken together shall constitute one and the

1 of 3

 

same Amendment. It is understood that all parties need not sign the same counterpart. In the
event that any signature is delivered by facsimile transmission or by email delivery of a “.pdf”
format data file, such signature shall create a valid and binding obligation of the party executing
(or on whose behalf such signature is executed) with the same force and effect as if such facsimile
or “.pdf” signature page were an original thereof.

     4. The validity, interpretation, construction and performance of this Amendment will be
governed by the laws of the State of Ohio without regard to its conflicts of law principles.

     5. Capitalized terms used but not otherwise defined herein have the meanings set forth in the
Agreement.

2 of 3

 

     IN WITNESS WHEREOF, each of the parties has executed this Amendment as of the day and year
first written above.

	 	 	 	 	 	 	 	 	 	 	 
	Robert Deans	 	Advanced Biotherapeutics, Inc.
	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/
Robert Deans	 	By: 	 	/s/
Gil Van Bokkelen	 	 
	 

	 	 	 	 	 	Name: 	Gil Van Bokkelen	 	 
	 

	 	 	 	 	 	Title: 
	Chief Executive Officer	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date

	 	Date	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Acknowledged By:	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Athersys, Inc.
	 	ReGenesys, LLC
	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	/s/ John
Harrington	 	By:	 	/s/
William (BJ) Lehmann	 	 
	 

	Name: 	John Harrington
	 	 	 	Name:
	William (BJ) Lehmann	 	 
	 

	Title: 	Executive Vice President & CSO
	 	 	 	Title:
	Vice President, Secretary & Treasurer	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date

	 	Date	 	 

3 of 3EX-10.27

 

EXHIBIT
10.27

NON-COMPETITION AND CONFIDENTIALITY AGREEMENT

     This Non-Competition and Confidentiality Agreement (“Agreement”), is made as of the 3rd day of
October, 2003 between Robert Deans, Ph.D., an individual (“Employee”), Advanced Biotherapeutics,
Inc. (“ABT”), a wholly-owned subsidiary of Athersys, Inc., and Athersys, Inc., a Delaware
corporation (“Athersys”).

RECITALS:

     A. ABT, d.b.a. Athersys, Inc., is engaged in the competitive business of developing, marketing
and selling certain core biotechnologies for the diagnosis and treatment of genetic and infectious
disease.

     B. ABT employs Employee as October 3, 2003.

     C. As a part of such employment, Employee has access to certain “Confidential Information” (as
herein defined).

     D. In consideration of the recent employment arrangements set forth in the Employment
Agreement between Employee and ABT dated as of October 3, 2003 (the “Employment Agreement”),
Employee has agreed to execute this Agreement.

     E. For the purposes of this Agreement, the term “Athersys” shall be deemed to include
Athersys, Inc., and any affiliates or subsidiaries, together with their respective successors or
assigns.

AGREEMENTS:

     NOW THEREFORE, for and in consideration of the premises, mutual covenants and undertakings set
forth herein, and other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged by the parties, the parties to this Agreement hereby agree as follows:

     1. Non-Competition and Confidentiality.

     (a) Employee agrees that, so long as he remains employed by Athersys in any capacity, and for
a period of six (6) months after the effective date of the termination of said employment by
Athersys or Employee, Employee shall not do or suffer any of the following:

     (i) Own, control or manage, or participate in the ownership, control or management of,
render consulting services to, or be employed by any corporation, partnership or other entity
that is engaged in the business of researching, developing, marketing or selling any technology
relating to the field of cell therapy, tissue engineering, or gene therapy, including, without
limitation, adult or embryonic stem cell technologies, synthetic microchromosomal technologies,
gene activation technologies, or

 

 

any other type of technology, which is substantially similar to that researched, developed,
marketed or sold or contemplated to be researched, developed, marketed or sold by Athersys
prior to the Employee’s effective date of termination in any geographic areas in the United
States or any countries outside the United States where Athersys has researched, developed,
marketed or sold such technologies prior to the Employee’s effective date of termination. For
the purposes of this subsection (i), the term “ownership” shall be defined as holding five
percent (5%) or more ownership interest or voting control interest in the entity in issue;

     (ii) Knowingly attempt to employ or employ, attempt to assist in employing or assist in
employing, or otherwise interfere with the employment of, any employee or officer of Athersys;
or

     (iii) Solicit, divert or attempt to divert any customer, sponsor, investor, research
collaborator or other business relations of Athersys from associating, collaborating or
otherwise doing business with Athersys.

     Notwithstanding the foregoing, the provisions of this Section 1(a) shall terminate on the date
that Employee ceases to receive the termination compensation from Athersys pursuant to Section 5(c)
of the Employment Agreement.

     (b) Employee agrees that from and after the date of this Agreement, Employee shall not
disclose, divulge, discuss, copy or otherwise use or suffer to be used any item of confidential
information of Athersys, including, without limitation, technologies, product development
procedures, new products, customer lists, client lists, sales methods, pricing or cost data,
software or software documentation, methods, product research or engineering data, documents,
instruments, drawings, or designs (“Confidential Information”). The term “Confidential
Information” shall include, by way of example not limitation, any information, which, in the good
faith opinion of the Board of Directors, constitutes “trade secrets” of Athersys, as such term is
defined in Ohio Revised Code Section 1333.51.

     2. Injunctive Relief. Employee acknowledges and agrees that: (i) each term of
Section 1 of this Agreement is fully required to protect Athersys’ interest and that no term in
Section 1 confers a benefit on Athersys that is disproportionate to the detriment imposed on
Employee and each provision of such Section 1 is reasonable in time and territory and does not
stifle Employee’s inherent skill and experience and will not operate as a bar to Employee’s sole
means of support; (ii) the remedy at law for any breach by Employee of any term of Section 1 would
be inadequate; and (iii) the damages flowing from such breach are not readily susceptible to
measurement in monetary terms. Accordingly, upon adequate proof of Employee’s violation of any
legally enforceable provision of Section 1 of this Agreement, Athersys shall be entitled to
immediate injunctive relief and may obtain a temporary order restraining any threatened or future
breach. Nothing in this Agreement shall be deemed to limit Athersys’ remedies at law or in equity
for any breach by Employee of any term of this Agreement.

2

 

     3. Ownership of Technology. Any technology, procedure, design feature, invention,
improvement, development or discovery (whether or not patentable or copyrightable) that Employee
may conceive of, make, invent, suggest, or otherwise obtain knowledge of during the course of
Employee’s employment or other relationship with Athersys (whether individually or jointly with any
other person or persons), relating in any way to the field of cell therapy, tissue engineering, or
gene therapy or any other business of Athersys or to the proposed contemplated business of which
Athersys will be a part of, shall be the sole, exclusive and absolute property of Athersys, as
shall all physical embodiments and manifestations thereof and all research data regarding,
including, without limitation, all proprietary rights, techniques, specifications, any methods and
apparatuses for data manipulation and utilization. Employee will immediately disclose any such
technology, procedure, design feature, invention, improvement, development or discovery to Athersys
and will, at any time, upon Athersys’ request and without additional compensation, execute any
documents and give all lawful testimony which may be required respecting the patenting or
copyrighting of any such technology, procedure, design feature, invention, improvement, development
or discovery, as well as any papers which may be considered necessary or helpful by Athersys in the
processing of applications for patents thereon, to vest title thereto in Athersys, or which may
relate to any litigation or controversy in connection therewith, all expenses incident thereto to
be borne by Athersys. Employee, whether or not still employed by Athersys, will cooperate with
Athersys, at Athersys’ expense, in any litigation or other matter relating to Athersys’ right in
any of the foregoing.

     4. Severability. In the event that Sections 1, 2 and 3 shall be found by a court of
competent jurisdiction to be invalid or unenforceable as against public policy, such court shall
exercise its discretion in reforming such provisions to the end that Employee shall be subject to
nondisclosure, noncompetitive and noninterference covenants that are reasonable under the
circumstances and enforceable by Athersys. In the event that any other provision or term of this
Agreement is found to be void or unenforceable to any extent for any reason, it is the agreed-upon
intent of the parties hereto that all remaining provisions or terms of this Agreement shall remain
in full force and effect to the maximum extent permitted and that this Agreement shall be
enforceable as if such void or unenforceable provision or term had never been a part hereof. To
the extent that any obligations of Employee in this Agreement shall be illegal and/or unenforceable
with respect to any jurisdiction, said covenants shall not be affected thereby with respect to each
other jurisdiction, such covenants with respect to each such jurisdiction being construed as
severable and independent. In the event Employee shall violate any legally enforceable provision
of this Agreement as to which there is a specific time period during which Athersys is prohibited
from taking certain actions or from engaging in certain activities, as set forth in this Agreement,
then, in such event, such violation shall toll the running of such time period from the date such
violation commences until, and including, the date such violation shall cease.

     5. Notice. Notices, demands and all other communications provided for in this
Agreement will be in writing and will be deemed to have been duly given when delivered, if
delivered personally, or (unless otherwise specified) mailed by United States certified or

3

 

registered mail, return receipt requested, postage prepaid, and when received if delivered
otherwise, addressed as follows:

     If to Employee:

Robert Deans, Ph.D.

415 Furman Dr.

Claremont, CA 91711

     If to Athersys:

ATHERSYS, INC.

3201 Carnegie Avenue

Cleveland, Ohio 44115-2634

Attention: Gil Van Bokkelen, President & CEO

or to such other address as any party may have furnished to the other in writing, except that
notices of change of address will be effective only upon receipt.

     6. General Provisions. No provision of this Agreement may be modified, waived or
discharged unless such waiver, modification or discharge is agreed to in writing signed by the
parties hereto. No waiver by either party to this Agreement at any time of any breach by the other
party of, or compliance with, any condition or provision of this Agreement to be performed by such
other party will be deemed a waiver of similar or dissimilar provisions or conditions at the same
or at any prior or subsequent time. The validity, interpretation, construction and performance of
this Agreement will be governed by the laws of the State of Ohio without regard to its conflicts of
law principles.

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

     8. Captions. The headings of paragraphs are included solely for convenience of
reference only and are not part of this Agreement and will not be used in construing it.

     9. Consent to Jurisdiction and Forum. Employee expressly and irrevocably agrees that
Athersys may bring any action, whether at law or in equity, arising out of or based upon this
Agreement in the State of Ohio or in any federal court therein. Employee irrevocably consents to
personal jurisdiction in such court and to accept service of process in accordance with the
provisions of the laws of the State of Ohio.

4

 

     10. Entire Agreement. This Agreement sets forth the entire agreement of the parties
in respect of the subject matter contained in this Agreement and supersedes all prior agreements,
promises, covenants, arrangements, communications, representations or warranties, whether oral or
written, by any officer, employee or representative of any party; and any prior agreement of the
parties in respect of the subject mater contained in this Agreement is terminated and canceled.

     IN WITNESS WHEREOF, the parties have executed this Non-Competition and Confidentiality
Agreement as of the date first above written.

	 	 	 	 	 
	 	ATHERSYS, INC.

 	 
	 	By:  	/s/ Gil Van Bokkelen 	 
	 	 	Gil Van Bokkelen 	 
	 	 	President and Chief Executive Officer 	 
	 
	 	ADVANCED BIOTHERAPEUTICS, INC.

 	 
	 	By:  	/s/
Gil Van Bokkelen 	 
	 	 	Gil Van Bokkelen 	 
	 	 	President and Chief Executive Officer 	 
	 
	 	EMPLOYEE

/s/ Robert Deans, Ph.D.	 
	 	
Robert Deans, Ph.D.

 	 
	 	 	 

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00124-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00124-of-00352.parquet"}]]