Document:

Exhibit 10.6

Exhibit 10.6

CHANGE-IN-CONTROL AGREEMENT

AGREEMENT, made and entered into as of the first day of May, 2004 (the “Effective Date”), by
and between SL Industries, Inc., a New Jersey corporation (the “Company”), and James C. Taylor (the
“Employee”).

WHEREAS, the Employee is the Chief Operating Officer of the Company; and

WHEREAS, the Company desires to provide certain protection to the Employee in the event of a
change-in-control of the Company, in order to induce the Employee to remain in the employ of the
Company notwithstanding any risks and uncertainties created by a potential change-in- control;

NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein and for
other good and valuable consideration, the receipt of which is mutually acknowledged, the Company
and the Employee agree as follows:

1. EFFECTIVENESS; TERM

This Agreement shall become effective as of the date hereof and shall terminate on the seventh
anniversary of the date hereof, or on such other date as the parties hereto mutually agree in
writing.

2. TERMINATION OF EMPLOYMENT FOLLOWING A CHANGE-IN-CONTROL

(a) If the Employee’s employment is terminated by the Company or its successor without Cause
(as hereinafter defined), or the Employee terminates his employment with the Company or its
successor for Good Reason (as hereinafter defined), and either termination occurs within one year
following a Change-in-Control (as hereinafter defined), or within one year following execution by
the Company of a definitive agreement contemplating a Change-in-Control that occurs, whichever is
later (the date of such termination hereinafter the “Termination Date”), the Employee shall be
entitled to receive a Change-in-Control Payment (as hereinafter defined) with respect to such
termination. Termination of employment shall have the same meaning as separation from service under
Code Section 409A and Regulation Section 1.409A-1(h).

(b) Notwithstanding the foregoing, the Employee shall not be entitled to receive the
Change-in-Control Payment if any of the Circumstances of Ineligibility (as hereinafter defined)
apply to the Employee.

(c) “Change-in-Control Payment” means the product of two times the Employee’s annual base
salary in effect as of the Termination Date. In the case of a termination of employment for Good
Reason based on a reduction of the Employee’s annual base salary, the annual base salary shall be
calculated as the Employee’s annual base salary in effect immediately prior to such reduction.

 

 

 

(d) “Change-in-Control” means that any of the following has occurred within a 12 month period:

	 	(i)	 	the stockholders of the Company approve (aa) the sale of the
Company; (bb) the sale of all or substantially all of the assets of the Company;
or (cc) a consolidation or merger of the Company with another corporation, the
consummation of which would result in the stockholders of the Company
immediately before the occurrence of the consolidation or merger owning, in the
aggregate, fifty percent (50%) or less of the Voting Stock of the surviving
entity; and such transaction occurs;

	 
	 	(ii)	 	any person or other entity, including any person as defined in
Section 13(d)(3) of the Securities Exchange Act of 1934 as amended (the
“Exchange Act”), becomes the beneficial owner, as defined in Rule 13d-3 under
the Exchange Act, directly or indirectly, of at least thirty percent (30%) or
more of the total combined voting power of all classes of capital stock of the
Company entitled to vote for the election of directors of the Company (the
“Voting Stock”); or

	 
	 	(iii)	 	a change in the Company’s Board of Directors occurs with the
result that the members of such Board on the Effective Date (the “Incumbent
Directors”) no longer constitute a majority of such Board, provided that any
person becoming a director (other than a director whose initial assumption of
office is in connection with an actual or threatened election contest or the
settlement thereof, including but not limited to a consent solicitation relating
to the election of directors of the Company) whose election or nomination for
election was supported by two-thirds (2/3) of the then Incumbent Directors shall
be considered an Incumbent Director for purposes hereof.

(e) “Cause” means, and shall be subject to the procedures set forth herein:

	 	(i)	 	conviction of the Employee for (x) any crime constituting a
felony in the jurisdiction in which committed, (y) any crime involving moral
turpitude (whether or not a felony) or (z) any criminal act against the Company
or any affiliate of the Company involving dishonesty whether or not a felony;

	 
	 	(ii)	 	substance abuse (including drunkenness) by the Employee which is
repeated after written notice from the Company to the Employee identifying such
abuse;

	 
	 	(iii)	 	the failure or the refusal of the Employee to follow lawful and
proper directives of the Board of Directors or Chief Executive Officer of the
Company which is not corrected within thirty (30) days after written notice from
such Board or Chief Executive Officer to the Employee identifying such failure
or refusal; or

	 
	 	(iv)	 	willful malfeasance or gross misconduct by the Employee which may
discredit or damage the Company or any affiliate of the Company.

 

 

 

(f) “Good Reason” means the occurrence of any of the following without the prior written
consent of the Employee:

	 	(i)	 	removal from the most senior position held by the Employee with
respect to the Company on the 181st day prior to the Change-in-Control or any
more senior position that the Employee subsequently achieves (the “Measuring
Position”);

	 
	 	(ii)	 	the assignment of duties or responsibilities materially
inconsistent with those customarily associated with the Measuring Position, or
any other action by the Company or a successor that results in a material
diminution of the Employee’s position, authority, duties or responsibilities
compared to the Measuring Position, other than an isolated action that is not
taken in bad faith and is remedied by the Company or a successor promptly after
receipt of written notice thereof from the Employee;

	 
	 	(iii)	 	a reduction in the Employee’s annual base salary, any portion of
the Employee’s target bonus, or any other material benefit provided to the
Employee by the Company at the time of the Change-in-Control; or

	 
	 	(iv)	 	the involuntary relocation of the Employee’s principal place of
employment to a location more than thirty (30) miles from the Employee’s
principal place of employment immediately prior to the Change-in-Control, except
for required travel on the Company’s business to an extent substantially
consistent with the Employee’s business travel obligations as of such date.

A voluntary termination of employment for Good Reason must occur within two years of the initial
occurrence of one or more of the preceding conditions. In such event, the Employee shall notify the
Company within 90 days of the occurrence of such condition, whereupon the Company shall have 30
days from the receipt of such notice to cure the condition.

(g) “Circumstances of Ineligibility” means any one or more of the following circumstances:

	 	(i)	 	if the Employee’s employment with the Company or its successor is
terminated due to death or disability (defined as the inability or incapacity of
the Employee, due to any medically determined physical or mental impairment, to
perform the Employee’s duties and responsibilities for the Company for a total
of one hundred eighty (180) days);

	 
	 	(ii)	 	if the Employee elects to voluntarily terminate the Employee’s
employment, including a termination due to retirement, with the Company or its
successor, unless such termination by the Employee is for Good Reason; or

	 
	 	(iii)	 	if the Employee’s employment with the Company or a successor is
terminated for Cause at any time preceding or following a Change-in-Control.

 

 

 

3. TIME OF PAYMENT OF CHANGE-IN-CONTROL PAYMENT

(a) Any Change-in-Control Payment to which the Employee is entitled under Section 2 above
shall be paid to the Employee in cash (subject to appropriate withholding) in a lump sum. Such
payment shall be made no later than the effective date of the release of claims executed by the
Employee pursuant to Section 6(c) below, or the thirtieth (30th) day after the
Termination Date, whichever date is later. If, at the time of the Change in Control payment, the
Employee is a specified employee as defined in Code Section 409A and Regulation Section
1.409A-1(i), the lump sum shall be the lesser of the amount to which he would be entitled under
Section 2, and the maximum amount payable under the Regulation Section 1.409A-1(b)(9)(iii). The
difference, if any, shall be paid six months after the Change in Control payment date.

(b) Notwithstanding the foregoing, in the event that the payment of a Change-in-Control
Payment would cause the Company to violate the terms of one or more financial covenants set forth
in any credit agreement then in effect between the Company and its lenders of funded debt, such
payment shall be deferred until the earliest practicable date without causing such violation.

(c) The Employee shall be paid interest, compounded daily, at the prime lending rate as
announced from time to time by PNC Bank or its successor on all or any part of the
Change-in-Control Payment that is not paid when due.

4. CONTINUATION OF WELFARE BENEFITS

Notwithstanding anything contained herein to the contrary, if the Employee is entitled to
receive the Change-in-Control Payment, the Company or its successor shall continue to pay premiums
on behalf of the Employee, as if the Employee were still an employee of the Company, in the
medical, dental, hospitalization and life insurance programs and/or arrangements of the Company or
any of its subsidiaries in which the Employee was participating on the Termination Date on the same
terms and conditions as other employees under such plans, programs and/or arrangements until the
earlier of (i) the end of the twenty-four (24) month period following the Termination Date or (ii)
the date, or dates, the Employee is entitled to receive substantially equivalent coverage and
benefits under the plans, programs and/or arrangements of a subsequent employer (such coverage and
benefits to be determined on a coverage-by-coverage or benefit-by-benefit basis). The Employee
shall be eligible to continue his benefits through COBRA at his own expense, to the extent provided
by law.

5. NON-COMPETE AND NON-SOLICITATION

(a) In consideration of the Company entering into this Agreement and providing the
compensation and benefits to be provided by the Company to the Employee, the Employee agrees that
the Employee will not, from the Effective Date until one (1) year after the Termination Date,
engage in any Competitive Activity. For purposes of this Agreement, the term “Competitive
Activity” shall mean (i) serving as a director of any Competitor (as hereinafter defined); (ii)
directly or indirectly through one or more intermediaries, either (x) controlling any Competitor or
(y) owning any equity or debt interests in any Competitor (other than equity or debt instruments
that are public traded and, at the time of any acquisition, when combined with other holdings, do
not exceed five percent (5%) of the particular class of interests outstanding) (it being understood
that, if interests in any Competitor are owned by an investment vehicle or other entity in which
the Employee owns an equity interest, a portion of the

 

 

 

interests in such Competitor owned by such entity shall be attributed to the Employee, such portion
determined by applying the percentage of the equity interest in such entity); (iii) employment by
(including serving as an officer or partner of), providing consulting services to (including,
without limitation, as an independent contractor), or managing or operating the business or affairs
of, or being a lender to, any Competitor; or (iv) participating in the ownership, management,
operation or control of any Competitor. For purposes of this Agreement, the term “Competitor”
shall mean any person (other than the Company or any majority-owned subsidiary of the Company) that
engages in any business (as determined at the time of termination of employment) in the United
States in competition with the Company. For purposes of this Agreement, the term business shall
include any activity engaged in by any subsidiary or division of the Company.

(b) The Employee agrees that, if the Employee receives a Change-in-Control Payment as set
forth in Section 2 above, the Employee shall not directly or indirectly through another entity (i)
induce or attempt to induce any employee of the Company or of any affiliate of the Company to leave
the employ of the Company or such affiliate, or in any way interfere with the relationship between
the Company and such affiliate and any employee thereof, or (ii) induce or attempt to induce any
customer, supplier, licensee, licensor, franchisee or other business relation of the Company (or
any affiliate of the Company) to cease doing business with the Company (or any affiliate of the
Company), or in any way interfere with the relationship between such customer, supplier, licensee
or business relation of the Company (or any affiliate of the Company). For purposes of this
Agreement, a customer, supplier, licensee, licensor, franchisee or business relation means any
person or entity which at the time of determination is, or has been within one (1) year prior to
such time, a customer, supplier, licensee, licensor, franchisee or other business relation of the
Company (or any affiliate of the Company).

(c) In the event of a Change-in-Control Payment, the Company may value the non-competition and
non-solicitation covenants and allocate the Payment accordingly.

(d) The Employee agrees that any violation of this Agreement will cause immediate and
irreparable harm to the Company, the amount of which will be impossible to estimate or determine.
The Employee further agrees that the Company shall have the right to equitable relief by injunction
or otherwise (without the necessity of posting bond or other security) and the Employee hereby
knowingly waives the claim or defense that the Company has an adequate remedy at law. The rights
and remedies of the Company under this Agreement are cumulative and are in addition to all other
rights and remedies the Company may have under any local, state or federal law, rule or regulation
or otherwise. It shall not be a defense to the Company’s enforcement of this Agreement that the
Company did breach or may have breached this Agreement or any other agreement with the Employee,
any such defense to the Company’s enforcement of this Agreement being hereby waived.

6. MISCELLANEOUS

(a) NO EMPLOYMENT AGREEMENT. This Agreement does not constitute a contract of employment or
impose on the Company any obligation to retain the Employee as an employee.

(b) DEDUCTIONS AND WITHHOLDING. The Employee agrees that the Company shall withhold from any
and all compensation required to be paid to the Employee pursuant to this Agreement all federal,
state, local and/or other taxes which the Company determines are required to be withheld in
accordance with applicable statutes and regulations from time to time in effect.

 

 

 

(c) WAIVER AND RELEASE. The Employee acknowledges that (i) this Agreement provides benefits
greater than the benefits that the Employee would otherwise be entitled to receive under any
employment or severance agreement, plan, program or arrangement of the Company or between the
Company and the Employee, and (ii) the Company has no obligation to enter into this Agreement. In
consideration of the Company assuming these additional obligations and entering into this
Agreement, the Employee agrees to execute a release of all claims related to the Employee’s
employment or termination thereof prior to payment of the Change-in-Control Payment. Such release
will become effective on the eighth day after it has been executed by the Employee, unless it has
been revoked beforehand.

(d) ARBITRATION. Except for enforcement of the Employee’s covenants under Section 5, any
dispute or controversy arising under or in connection with this Agreement shall be settled
exclusively by arbitration conducted in New Jersey under the Commercial Arbitration Rules then
prevailing of the American Arbitration Association and such submission shall request the American
Arbitration Association to: (i) appoint an arbitrator experienced and knowledgeable concerning the
matter then in dispute; (ii) require the testimony to be transcribed; (iii) require the award to be
accompanied by findings of fact and a statement of reasons for the decision; and (iv) request the
matter to be handled by and in accordance with the expedited procedures provided for in the
Commercial Arbitration Rules. The determination of the arbitrators, which shall be based upon a de
novo interpretation of this Agreement, shall be final and binding and judgment may be entered on
the arbitrators’ award in any court having jurisdiction. All costs of the American Arbitration
Association and the arbitrator shall be borne by the Company, unless the position advanced by the
Employee is determined by the arbitrator to be frivolous in nature.

(e) LEGAL FEES. Except for legal fees the Employee incurs in defending Company’s enforcement
of the Employee’s covenants under Section 5, the Company or its successor shall pay to the Employee
all reasonable legal fees and expenses incurred by the Employee in disputing in good faith any
issues hereunder relating to the termination of the Employee’s employment, or in seeking in good
faith to obtain or enforce any benefit or right provided by this Agreement. Such payments shall be
made within thirty (30) days after delivery of the Employee’s written request for payment
accompanied with such evidence of fees and expenses incurred as the Company reasonably may require.

(f) NO DUTY TO MITIGATE/SET-OFF. The Company agrees that in order for the Employee to receive
payments or benefits under this Agreement, the Employee shall not be required to seek other
employment. Further, the amount of any such payment or benefit shall not be reduced by any
compensation earned by the Employee or any benefit provided to the Employee as the result of
employment by another employer or otherwise, except as provided in Section 4 or 6(g) hereof. The
Company’s obligations to make any payment or provide any benefit under this Agreement shall not be
affected by any circumstances, including, without limitation, any set-off, counterclaim,
recoupment, defense or other right which the Company or a successor may have against the Employee.

(g) OFFSET. The Change-in-Control Payment shall be reduced by any severance cash payment made
by the Company or any subsidiary of the Company to the Employee pursuant to (i) any severance plan,
program, policy or arrangement of the Company or any subsidiary of the Company, (ii) any employment
or consulting agreement between the Company or any subsidiary of the Company and the Employee, and
(iii) any federal, state or local statute, rule, regulation or ordinance.

 

 

 

(h) ENTIRE AGREEMENT. This Agreement embodies the entire agreement of the parties with respect
to any payment and benefit which may become due or owing to the Employee in the event of a
termination in connection with a Change-in-Control and supersedes any other prior oral or written
agreements between the Employee and the Company with respect thereto, including the provision
captioned “CHANGE IN CONTROL” in the letter agreement dated December 16, 1999, between the Employee
and the Company and the Change-in-Control Agreement between the parties dated May 1, 2001. To the
extent that any payment or benefit conferred upon the Employee herein are invalidated or rendered
unenforceable by a court of competent jurisdiction, the payment or benefit provided in such other
agreements shall remain in full force and effect.

(i) OTHER AGREEMENTS. Except as provided in paragraph (h) above, nothing in this Agreement
shall affect or modify (i) any obligations the Employee has under any agreement with the Company
with respect to confidential information, assignment of inventions and discoveries,
non-solicitation of employees and/or customers, non-competition, or otherwise or (ii) any payments
or benefits the Employee may be entitled to receive under any agreement with respect to severance
payments, the acceleration of options or other Stock Awards, or otherwise, and all such agreements
shall remain in full force and effect.

(j) AMENDMENTS. No party may amend, modify or terminate this Agreement without the express
written consent of the other party.

(k) BINDING AGREEMENT. This Agreement shall be binding upon the Company and its successors and
assigns and shall inure to the benefit of and be enforceable by the Employee’s personal or legal
representatives, executors, administrators, heirs, distributees, devises and legatees and the
Company’s successors and assigns.

(l) LEGAL ADVICE. The Employee acknowledges that (i) he has been strongly encouraged by the
Company to review this Agreement with his personal attorney and has either done so or has knowingly
and voluntarily waived his right to do so and (ii) he understands all of the terms and conditions
of this Agreement and agrees to be bound by its terms and conditions.

(m) GOVERNING LAW; VENUE AND JURISDICTION. This Agreement shall be governed and construed in
accordance with the laws of the State of New Jersey without reference to conflict of laws
principles. The Employee does hereby irrevocably consent that any legal action or proceeding
arising out of or in any manner relating to this Agreement, or any other document delivered in
connection herewith, shall be brought exclusively in any state court or in any federal court in New
Jersey. The Employee further irrevocably consents to the service of any complaint, summons, notice
or other process relating to any such action or proceeding by delivery thereof to the Employee by
hand or by any other manner provided for below. The Employee hereby expressly and irrevocably
waives any claim or defense in any such action or proceeding based on any alleged lack of personal
jurisdiction, improper venue or forum non conveniens or any similar basis.

 

 

 

(n) NOTICES. All notices required or permitted by this Agreement shall be in writing and
shall be given by personal delivery or sent by registered or certified mail, postage prepaid,
return receipt requested, or by reputable overnight courier, prepaid, receipt acknowledged, to the
following addresses:

	 	 	 	 	 
	 	 	If to the Company:
	 
	 	 	 	 
	 	 	SL Industries, Inc.
	 	 	520 Fellowship Road, A-114
	 	 	Mt. Laurel, NJ 08054
	 
	 	 	 	 
	 

	 	Attention:
	 	James A. Risher
	 

	 	 	 	Compensation Committee Chairman 
	 
	 	 	 	 
	 	 	If to the Employee:
	 
	 	 	 	 
	 	 	James C. Taylor
	 	 	43 Snowflake Drive, Unit E-22
	 	 	Los Pinos
	 	 	Breckinridge, CO 80424

(o) COUNTERPARTS. This Agreement may be executed and delivered in separate counterparts, each
of which when so executed and delivered shall be deemed an original and all of which taken together
shall constitute one and the same agreement. Delivery of an executed counterpart of the signature
page to this Agreement by facsimile transmission shall be effective as manual delivery of an
executed counterpart. Any party so delivering this Agreement by facsimile transmission shall
promptly manually deliver an executed counterpart, provided that any failure to do so shall not
affect the validity of the counterpart delivered by facsimile transmission.

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the date first
written above.

	 	 	 	 	 
	 	SL INDUSTRIES, INC.

 	 
	 	By:  	/s/ James A. Risher
 	 
	 	 	James A. Risher 	 
	 	 	Compensation Committee Chairman 	 
	 	 	 
	 	By:  	                                     /s/ James C. Taylor
 	 
	 	 	James C. TaylorExhibit 10.4

Exhibit 10.4

SECOND AMENDED AND RESTATED EMPLOYMENT AGREEMENT

This Amended and Restated Employment Agreement (the “Agreement”) is entered into as
of March 11, 2009 (the “Effective Date”) between Regenerx Biopharmaceuticals, Inc., a
Delaware corporation (the “Company”), and Dr. Allan L. Goldstein (the “Executive”).

Recitals

Whereas, the parties previously entered into an Employment Agreement, dated as of
January 1, 2002 (“Original Effective Date”) and subsequently amended the original Employment
Agreement effective as of December 31, 2008 based upon Section 409A of the Internal Revenue Code of
1986, as amended (“Code”), and now desire to amend and restate the Employment Agreement again in
order to reflect certain revisions to the terms and conditions of employment;

Whereas, Executive possesses substantial knowledge and experience with respect to the
Company’s business; and

Whereas, the Company desires to continue to employ Executive to have the benefits of
his expertise and knowledge and Executive, in turn, desires to remain in employment with the
Company;

NOW, THEREFORE, in consideration of the mutual covenants and representations contained in this
Agreement, the Company and Executive agree as follows:

Agreement

1. Employment Of Executive; Position. The Company agrees to employ Executive and Executive
agrees to be employed by the Company as the Chairman and Chief Scientific Advisor subject to the
terms and conditions of this Agreement. Executive shall devote such time to the affairs of the
Company as is necessary to perform his duties under this Agreement. The Company recognizes and
agrees that, so long as Executive shall be reasonably available to perform his duties hereunder, he
may engage in other businesses and may render services to other persons. In particular, the Company
agrees that Executive may continue to be employed by the George Washington University in
Washington, DC (the “University”), and it is understood that Executive’s activities on behalf of
the Company will not conflict with faculty guidelines with the University. In addition, Executive
may engage in any activities in the scientific community that maintain or advance his professional
status, such as serving as an officer in scientific societies, lecturing at academic institutions,
authoring papers and books, and engaging in research collaborations with other professionals so
long as such activities do not conflict with his responsibilities to the Company.

 

 

 

2. Term Of Employment And Renewal. The term of Executive’s employment under this Agreement
commenced on the Original Effective Date. The term of Executive’s employment hereunder was for an
initial term of three (3) years from the Original Effective Date (the “Initial Term”). The Initial
Term of this Agreement has been and shall continue to be automatically extended for successive one
(1) year periods (each a “Renewal Period”), unless the Company or Executive gives written notice to
the other at least thirty (30) days prior to the expiration of a Renewal Period, of such party’s
election not to extend this Agreement. References herein to the “Term” shall mean the Initial Term
as it may be so extended by one or more Renewal Periods. The last day of the Term is the
“Expiration Date.”

3. Duties. During the Term, Executive shall serve as the Chairman of the Company’s Board
of Directors (the “Board”) and shall perform such duties and responsibilities as are customarily
associated with his position and such other duties not inconsistent with his title and position and
as may be assigned to him by the Company. Executive shall act in conformity with the written and
oral policies of the Company and within the limits, budgets, business plans and instructions as set
by its Board. Executive shall be subject to the authority of the Board and the Company’s duly
appointed officers.

4. Place Of Employment. Executive acknowledges that the Company’s offices and headquarters
are currently located in the County of Montgomery, State of Maryland and that shall be the initial
site of Executive’s employment.

5. Other Employment Policies. The employment relationship between the parties shall also
be governed by the general employment policies and practices of the Company, including those
relating to protection of confidential information and assignment of inventions, except that when
the terms of this Agreement differ from or are in conflict with the Company’s general employment
policies or practices, this Agreement shall control.

6. Compensation.

6.1 Base Salary. On the Effective Date, Executive is receiving an annual base salary of One
Hundred Eighty Seven Thousand Four Hundred and Sixty (US $187,460) (the “Base Salary”),
subject to standard federal and state payroll withholding requirements. The Base Salary shall be
payable in equal periodic installments which are not less than on a monthly basis. The Base Salary
shall not be adjusted downward without the written consent of Executive, except in a circumstance
which is part of a general reduction or other concessionary arrangement affecting all employees or
affecting senior executive officers.

6.2 Bonus. Executive shall be eligible to receive an annual bonus in such amount as shall be
determined in the sole discretion of the Board of the Company.

7. Stock.

7.1 Stock Options. To date, Executive has been granted options (the “Options”) to purchase
550,000 shares of the Company’s common stock pursuant to the Company’s Amended and Restated 2000
Stock Option and Incentive Plan (“Plan”). Additionally, and from time to time at the sole
discretion of the Company’s Board, the Company may make additional stock option awards to Executive
(the “Additional Options”). Subject to the provisions below
regarding accelerated vesting of option grants, the specific terms and conditions of the
Option and any Additional Options will be as set forth in the Plan, and any stock option agreement
between Executive and the Company.

 

2

 

7.2 Acceleration Clause For Stock Option Vesting. In the event of (a) Executive’s termination
from employment without Cause as that term is defined in Section 13.2 of this Agreement; or (b) a
Change of Control event as set forth under Section 12.1 of this Agreement, Executive’s Options and
any Additional Options shall be immediately vested and become exercisable in full. Additionally,
and without in any way limiting the foregoing, Executive’s Options and Additional Options will also
become vested and exercisable in full in the event of a “Change of Control” (or any similar term
provided in the Applicable Plan) as defined under the terms of the equity plan (the “Applicable
Plan”) pursuant to which such option was granted.

8. Benefits. Executive shall be entitled to (i) participate in and receive all standard
employee benefits under applicable Company welfare benefits plans and programs (if and when such
benefits are established by the Company) to the same extent as other senior executives of the
Company; (ii) participate in all applicable incentive plans, including stock option, stock, bonus,
savings and retirement plans provided by the Company (if and when such plans are established by the
Company), which are offered to senior executive officers in the company (provided,
however, that the Company is not obligated to award any particular type or amount of equity
to Executive); (iii) receive such perquisites as the Company may establish from time to time which
are commiserate with Executive’s position and comparable to those received by other senior
executives of the Company; (iv) paid vacation of at least four (4) weeks per annum; and (v)
holidays, leaves of absence and leaves for illness and temporary disability in accordance with the
policies of the Company and federal, state and local law.

9. Outside Activities.

9.1 Other Employment/Enterprise. Except with the prior written consent of the Board, Executive
will not, while employed by the Company undertake or engage in any other employment, occupation or
business enterprise, other than ones in which Executive is a passive investor or as permitted by
Section 1 of this Agreement, so long as such activities do not materially interfere or conflict
with the performance of his duties hereunder.

9.2 Conflicting Interests. Except as permitted by Section 1, while employed by the Company,
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.

10. Proprietary Information, Nonsolicitation, Noncompetition And Inventions Assignment
Obligations. As a condition of employment, Executive agrees to execute and abide by the
Proprietary Information, Nonsolicitation, Noncompetition and Inventions Assignment Agreement
attached as Exhibit A to this Agreement.

11. Former Employment.

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

 

3

 

11.2 No Disclosure Of Confidential Information. If, in spite of the second sentence of Section
11.1, Executive should find that confidential information belonging to any former employer might be
usable in connection with the Company’s business, Executive will not intentionally disclose to the
Company or use on behalf of the Company any confidential information belonging to any of
Executive’s former employers (except in accordance with agreements between the Company and any such
former employer); but during Executive’s employment by the Company he will use in the performance
of his duties all information which is generally known and used by persons with training and
experience comparable to his own and all information which is common knowledge in the industry or
otherwise legally in the public domain.

12. Change Of Control.

12.1 Definition. “Change of Control” shall be deemed to occur upon any of the following
events:

(a) the dissolution or liquidation of the Company;

(b) the sale of all or substantially all of the assets of the Company to an unrelated person
or entity;

(c) a merger, reorganization or consolidation in which the holders of the Company’s
outstanding voting power immediately prior to such transaction do not own a majority of the
outstanding voting power of the surviving or resulting entity, or its parent corporation,
immediately upon completion of such transaction;

(d) the sale of all of the capital stock of the Company to an unrelated person or entity; or

(e) if any individual, firm, corporation, or other entity, or any group (as defined in Section
13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), other than (1) a
trustee or other fiduciary holding securities of the Company under an employee benefit plan of the
Company or (2) Executive becomes the “beneficial owner” (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities of the Company representing 50% or more of (A)
the outstanding shares of common stock of the Company, or (B) the combined voting power of the
Company’s then-outstanding securities entitled to vote generally in the election of directors, or

(f) any other transaction in which the owners of the Company’s outstanding voting power prior
to such transaction do not own at least a majority of the outstanding voting power of the relevant
entity after the transaction, in each case, regardless of the form thereof.

 

4

 

12.2 Severance.

(a) In the event that Executive voluntarily terminates his employment with the Company for
any reason within 12 months after a Change of Control event, as defined in Section 12.1, then the
Company shall pay to Executive on the Release Effective Date (as defined below), in a lump sum
cash payment, an amount equal to his annual Base Salary in effect on the date of his termination
from employment, less any applicable federal and state taxes and withholdings. To receive any
severance pay hereunder (other than Accrued Compensation, as defined below), Executive shall first
be required to execute and deliver to the Company a valid and fully effective general waiver and
release of any claims against the Company, its affiliates, officers, directors, agents and
employees in a form satisfactory to the Company, within the consideration period set forth in the
waiver and release, which period shall not exceed forty-five (45) days after the effective date of
his termination from employment (the “General Release”). The date upon which the General Release
is executed and delivered to the Company, and can no longer be revoked, is referred to as a the
“Release Effective Date.”

(b) By no later than two weeks after the date of Executive’s termination from employment under
this Section (or earlier if required by applicable law or the Company’s policies), the Company
shall pay to Executive any Accrued Compensation. “Accrued Compensation” shall mean any Base Salary
owed to Executive for services performed before the date of his termination from employment, any
bonuses earned, if any, for bonus periods that have concluded prior to the date of his termination
(and not including bonuses for the period in which Executive’s termination occurs, unless otherwise
provided by the Company in its discretion), or any unused vacation or personal time in accordance
with the applicable policies of the Company.

13. Termination. The parties acknowledge that Executive’s employment with the Company is
at-will. The provisions of Sections 13.1 through 13.5 govern the amount of compensation, if any, to
be provided to Executive upon termination of employment and do not alter this at-will status.

13.1 Termination By The Company Without Cause.

(a) The Company shall have the right to terminate Executive’s employment with the Company at
any time without Cause (as that term is defined in Section 13.2) by giving notice as described in
Section 13.7 of this Agreement. Termination of employment on account of Executive’s death or
inability to perform his duties shall be governed by Section 13.4 below.

(b) In the event Executive’s employment is terminated without Cause, he shall receive any
Accrued Compensation, and shall be entitled to receive severance pay under the terms of Section
12.2 above.

13.2 Termination by Company for Cause.

(a) The Company, by action of its Board, may terminate Executive’s employment under this
Agreement for Cause at any time by giving notice as described in Section 13.7 of this Agreement.

 

5

 

(b) “Cause” for termination means: (i) refusal, failure or neglect to perform the material
duties of his employment under this Agreement (other than by reason of Executive’s physical or
mental illness or impairment); (ii) committing willful dishonesty, fraud, embezzlement or
misconduct with respect to the business or affairs of the Company; (iii) indictment or conviction
of a felony or of any crime involving dishonesty or moral turpitude; or (iv) Executive’s refusal
to abide by or comply with the directives of the Board.

(c) In the event Executive’s employment is terminated at any time with Cause, he will not
receive any severance pay under Section 12.2 or otherwise, or any additional compensation other
than his Accrued Compensation, if any.

13.3 Voluntary Termination By Executive.

(a) Executive may voluntarily terminate his employment with the Company at any time by giving
notice as described in Section 13.7.

(b) In the event Executive voluntarily terminates his employment (other than after a Change
of Control event or for Good Reason as that term is defined in Section 13.5 below), he will not
receive any severance pay under Section 12.2 or otherwise, or any additional compensation other
than his Accrued Compensation, if any.

13.4 Termination for Inability to Regularly Perform Duties.

(a) This Agreement shall terminate automatically in the event of Executive’s death. The
Company may terminate Executive’s employment in the event of his illness, disability or other
incapacity in such a manner that Executive is rendered unable regularly to perform his duties
hereunder for more than either one hundred twenty (120) consecutive days or more than a total of
one hundred eighty (180) days in any consecutive twelve (12) month period, unless otherwise
prohibited by any applicable federal, state, or local law or ordinance.

(b) The determination regarding whether Executive is unable regularly to perform his duties
under (a) above shall be made by a doctor mutually acceptable to Executive and the Company.
Executive’s inability to be physically present on the Company’s premises shall not constitute a
presumption that Executive is unable to perform such duties.

(c) In the event Executive’s employment is terminated because of his death or inability to
regularly perform his duties as described in Section 13.4(a), he shall receive any Accrued
Compensation, and shall be entitled to receive severance pay under the terms of Section 12.2
above.

 

6

 

13.5 Resignation By Executive For Good Reason. Executive may resign his employment for “Good
Reason” by giving notice as described in Section 13.7 of this Agreement.

(a) “Good Reason” is defined as (i) a material change in Executive’s function, duties, or
responsibilities with the Company, which change would cause Executive’s position to become one of
lesser responsibility, importance, or scope from the position and attributes thereof, unless
consented to by Executive, (ii) a relocation of Executive’s principal place of employment by more
than 60 miles from its location at the Effective Date of this
Agreement, unless consented to by Executive, (iii) a material reduction in the benefits and
perquisites to Executive from those being provided as of the Effective Date of this Agreement,
unless consented to by Executive, or (iv) any material failure by the Company to pay or provide the
compensation and benefits under this Agreement except any such circumstance which is part of a
general reduction or other concessionary arrangement affecting all employees or affecting senior
executive officers. In each such event listed in (i) through (iv) above, Executive shall give the
Company notice thereof by no later than ninety (90) days after the initial occurrence of the event
or condition allegedly constituting Good Reason which shall specify in reasonable detail the
circumstances constituting Good Reason. There shall be no Good Reason with respect to any such
event or condition cured by the Company within thirty (30) days after such notice. If the Company
fails to cure such event or condition within this thirty- (30-) day period, Executive must
terminate employment under this provision within ninety (90) days after the cure period has expired
(and thereafter Executive may no longer terminate his employment for a Good Reason based upon the
event or condition that was not cured).

(b) In the event of Executive’s resignation with Good Reason, he shall receive any Accrued
Compensation, and shall be entitled to receive severance pay under the terms of Section 12.2 above.

13.6 Non-renewal of the Agreement. Non-renewal of this Agreement initiated by the Company in
accordance with Section 2 above resulting in the termination of Executive’s employment by the
Company, or resulting in Executive’s demotion, shall be deemed a termination of Executive’s
employment without Cause and Executive shall be entitled to receive severance pay and benefits
under the terms of Section 12.2. If Executive initiates a non-renewal of this Agreement in
accordance with Section 2 above, he shall not be entitled to any severance pay or benefits from the
Company.

13.7 Notice; Effective Date of Termination. Termination of Executive’s employment pursuant to
this Agreement shall be effective on the earliest of:

(a) thirty (30) days after Executive, for any reason other than a Good Reason, gives written
notice to the Company of his termination;

(b) thirty (30) days after the Company, without Cause, gives written notice to Executive of
his termination, including for his inability to perform services for a reason other than death;
Executive will receive compensation through the 30-day notice period. However, the Company
reserves the right to require that Executive not perform any services or report to work during the
30-day notice period.

(c) immediately upon the Company giving written notice to Executive of his termination for
Cause.

(d) immediately upon Executive giving written notice to the Company of his termination for a
Good Reason (and after the cure period has expired).

 

7

 

14. Application of Section 409A. Notwithstanding anything to the contrary set forth
herein, any payments and benefits provided under this Agreement that constitute “deferred
compensation” within the meaning of Section 409A of the Code and the regulations and other
guidance thereunder and any state law of similar effect (collectively “Section 409A”) shall not
commence in connection with Executive’s termination of employment unless and until Executive has
also incurred a “separation from service” (as such term is defined in Treasury Regulation Section
1.409A-1(h) (“Separation From Service”), unless the Company reasonably determines that such amounts
may be provided to Executive without causing him to incur the additional 20% tax under Section
409A.

If the Company (or, if applicable, the successor entity thereto) determines that any severance
payments constitute “deferred compensation” under Section 409A and Executive is, on the termination
of service, a “specified employee” of the Company or any successor entity thereto, as such term is
defined in Section 409A(a)(2)(B)(i) of the Code, then, solely to the extent necessary to avoid the
incurrence of the adverse personal tax consequences under Section 409A, the timing of the severance
payments shall be delayed until the earlier to occur of: (i) the date that is six months and one
day after Executive’s Separation From Service, or (ii) the date of Executive’s death (such
applicable date, the “Specified Employee Initial Payment Date”). On the Specified Employee Initial
Payment Date, the Company (or the successor entity thereto, as applicable) shall (A) pay to
Executive a lump sum amount equal to the sum of the severance payments that Executive would
otherwise have received through the Specified Employee Initial Payment Date if the commencement of
the severance payments had not been so delayed pursuant to this Section and (B) commence paying the
balance of the severance pay in accordance with the applicable payment schedules set forth in this
Agreement.

The Company’s obligations to make any reimbursements or provide in-kind benefits to Executive shall
be subject to the following restrictions: (a) Executive must provide documentation of any
reimbursable expenses in accordance with the Company’s then existing policies and procedures, (b)
the expenses paid or reimbursed by the Company in one calendar year shall not affect the expenses
paid or reimbursed in another calendar year, and (c) the reimbursement for any expenses shall be
made within a reasonable period of time following the date on which the Company receives written
documentation of the expense, provided that all expenses will be reimbursed on or before the last
day of the calendar year following the calendar year in which the expense was incurred.

15. Notices. Any notices provided hereunder must be in writing and shall be deemed
effective upon the earlier of personal delivery (including personal delivery by hand, telecopier,
or telex) or the third day after mailing by first class mail, to the Company at its primary office
location and to Executive at his address as listed on the Company payroll.

16. Validity; Complete Agreement. This Agreement and its Exhibit constitute the entire
agreement between Executive and the Company. This Agreement is the complete, final, and exclusive
embodiment of their agreement with regard to this subject matter and supercedes any prior oral
discussions or written communications and agreements. This Agreement is entered into without
reliance on any promise or representation other than those expressly contained herein, and it
cannot be modified or amended except in writing signed by an authorized officer of the Company.

17. Waiver. If either party should waive any breach of any provisions of this Agreement,
he or it shall not thereby be deemed to have waived any preceding or succeeding breach of the same
or any other provision of this Agreement.

 

8

 

18. Severability. Whenever possible, each provision of this Agreement will be interpreted
in such manner as to be effective and valid under applicable law, but if any provision of this
Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law
or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any
other provision or any other jurisdiction, but this Agreement will be reformed, construed and
enforced in such jurisdiction as if such invalid, illegal or unenforceable provisions had never
been contained herein.

19. Amendment. This Agreement shall not be modified or amended except by written agreement
of the parties hereto.

20. Choice Of Law; Jurisdiction. This Agreement shall be governed by and construed in
accordance with the law of the State of Maryland regardless of the choice of law provisions of the
State of Maryland or any other jurisdiction. The Parties consent to the exclusive jurisdiction of
the federal and state courts in Maryland.

21. Arbitration Of Disputes. Any controversy or claim arising out of this Agreement or any
aspect of Executive’s relationship with the Company including the cessation thereof shall be
resolved by arbitration in accordance with the then existing Employment Dispute Resolution Rules of
the American Arbitration Association, in Montgomery County, Maryland, and judgment upon the award
rendered may be entered in any court having jurisdiction thereof. The parties shall split equally
the costs of arbitration, except that each party shall pay its own attorneys’ fees. The parties
agree that the award of the arbitrator shall be final and binding.

22. Indemnification. During the term of this Agreement, Executive shall be entitled to
coverage under any liability insurance procured by Company to the same extent as other senior
executives at the Company.

23. Counterpart. This Agreement may be executed in any number of counterparts, all of
which shall be considered one and the same agreement.

24. Delay; Partial Exercise. No failure or delay by any party in exercising any right,
power or privilege under this Agreement shall operate as a waiver thereof; nor shall any single or
partial exercise of any right, power or privilege hereunder preclude any other or further exercise
thereof or the exercise of any other right, power or privilege.

25. Successors And Assigns. This Agreement is intended to bind and inure to the benefit of
and be enforceable by Executive and the Company, and their respective successors, assigns, heirs,
executors and administrators, except that Executive may not assign any of his duties hereunder and
he may not assign any of his rights hereunder without the written consent of the Company, which
shall not be withheld unreasonably.

26. Advice Of Counsel. Executive and the Company hereby acknowledge that each party has
had adequate opportunity to review this Agreement, to obtain the advice of counsel with
respect to this Agreement, and to reflect upon and consider the terms and conditions of this
Agreement. The parties further acknowledge that each party fully understands the terms of this
Agreement and has voluntarily executed this Agreement. The Company shall pay the legal fees and
costs incurred by Executive in connection with the negotiation and preparation of this Agreement,
upon the presentation of invoices in appropriate form.

 

9

 

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

28.  Survival. Provisions of this Agreement which must survive the termination of this Agreement in
order to effectuate the intent of the parties, including, but not limited to, Sections 10, 12.2 and
13, shall continue in effect after the termination of the Agreement for a sufficient period of time
under the circumstances to effectuate the parties’ intent.

In Witness Whereof, the parties hereto have caused this Agreement to be executed as
of the day and year first written above.

	 	 	 	 	 
	 

	 	“EXECUTIVE”	 	 
	 
	 	 	 	 
	 

	 	Dr. Allan L. Goldstein	 	 
	 
	 	 	 	 
	 

	 	/s/ Dr. Allan L. Goldstein
 

By: Dr. Allan L. Goldstein
	 	 
	 
	 	 	 	 
	 

	 	“THE COMPANY”

RegeneRx Biopharmaceuticals, Inc.	 	 

	 	 	 	 	 	 	 
	 	 	/s/ J.J. Finkelstein	 	 
	 	 	 	 	 
	 

	 	By:
	 	J.J. Finkelstein	 	 
	 

	 	Title:
	 	President & CEO	 	 

 

10

 

AMENDMENTS TO THE SECOND AMENDED AND RESTATED EMPLOYMENT

AGREEMENT

Pursuant to Section 19 of the Second Amended and Restated Employment Agreement between
RegenerRx Biopharmaceuticals, Inc. (“Company”) and Dr. Allan L. Goldstein (“Executive”), dated as
of March 11, 2009 (“Agreement”), the following amendments (“Amendments”) to the Agreement are
hereby adopted as of the dates set forth below:

1. Section 6.1 of the Agreement is amended, effective as of April 1, 2009 (contingent upon the
award of a stock option to the Executive as provided in Paragraph 2 below), to provide that the
Executive’s annual Base Salary shall be $118,300, and to add the following sentence to the end of
Section 6.1: “Notwithstanding the reduction of Base Salary effective as of April 1, 2009, any
severance pay under the terms of the Agreement shall be calculated based upon Executive’s Base
Salary in effect as of March 31, 2009, or, if higher, Executive’s Base Salary in effect at the time
of his termination from employment.” All other provisions of Section 6.1 shall be unchanged.

2. Section 7.1 of the Agreement shall be revised to add the provisions set forth below to the
end of the Section:

“Subject to approval by the Board, the Company agrees to award to the Executive an option to
purchase 104,770 shares of the Company’s Common Stock, pursuant to the terms of the Company’s Plan,
at an exercise price that is equal to the fair market value of such Common Stock on the date of
grant of the option as determined in accordance with the Plan (“New Option”). The New Option,
which shall be an incentive stock option for purposes of section 422 of the Code to the maximum
extent permitted, and otherwise shall be treated as a non-qualified stock option, shall vest in
three equal vesting installments, occurring on June 30, 2009, September 30, 2009 and December 31,
2009, provided that the Executive has not incurred a Termination of Service (as defined in the
Plan) before any applicable vesting date. Notwithstanding Section 7.2 below or any provision of
the Plan, if the Executive is terminated from employment with the Company without Cause or if there
is a Change in Control (either as defined herein or in the Plan), the New Option shall not be
subject to any accelerated vesting, except as provided below. The New Option shall be forfeited in
its entirety (whether vested or unvested) if the Executive’s employment with the Company is
terminated for Cause at any time as set forth in Section 13.2. If the Executive voluntarily
terminates his employment with the Company (or if the Executive’s employment terminates because of
his death or disability), the New Option shall be considered to be vested and exercisable only
through the most recently completed vesting installment. If the Executive’s employment is
terminated without Cause, then the New Option shall be considered to be vested and exercisable
through the most recently completed vesting installment, and shall be credited with an additional
amount of daily pro-rata vesting for the period since the last installment date. If the
Executive’s Base Salary is increased to at least the amount in effect immediately prior to the
reduction on April 1, 2009, then no additional vesting shall occur with respect to the New Option
thereafter, provided that daily pro-rata vesting shall be credited for the period since the date of
the last vesting installment (and any unvested portion of the New Option shall terminate at that
time). The specific terms and
conditions of the New Option shall be as set forth in the Plan and the standard form of stock
option agreement, which the Executive hereby agrees to execute.”

 

 

 

The Executive acknowledges that these Amendments constitute his agreement and consent to the
reduction of his Base Salary, and further agrees that these Amendments and the reduction of his
Base Salary hereunder shall not constitute Good Reason to terminate his employment within the
meaning of the Agreement.

	 	 	 	 	 
	 

	 	EXECUTIVE:	 	 
	 
	 	 	 	 
	 

	 	/s/ Dr. Allan L. Goldstein
 

By: Dr. Allan L. Goldstein
	 	 
	 
	 	 	 	 
	 

	 	COMPANY:	 	 
	 
	 	 	 	 
	 

	 	RegeneRx Biopharmaceuticals, Inc.	 	 

	 	 	 	 	 	 	 
	 	 	/s/ J.J. Finkelstein	 	 
	 	 	 	 	 
	 

	 	By:
	 	J.J. Finkelstein	 	 
	 

	 	Title:
	 	President & CEO

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