Document:

exv10w2

Exhibit 10.2

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

     THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (“Agreement”) is made and entered into as of
December 31, 2008 by and between ALSERES PHARMACEUTICALS, INC., a Delaware corporation (the
“Company”), and Mark Pykett (“Executive”). This Agreement amends, restates and supersedes, in its
entirety, the Employment Agreement dated March 31, 2006 and effective as of January 1, 2006 (the
“Effective Date”) previously in effect between the parties hereto.

AGREEMENT

1. EMPLOYMENT

     The Company hereby employs Executive and Executive hereby accepts employment upon the terms
and conditions set forth below.

2. TERM AND RENEWAL

     2.1 Term. The term of this Agreement shall commence on the Effective Date, and shall
continue for one (1) year from the Effective Date (the “Original Employment Term”), on the terms
and conditions set forth below, unless sooner terminated as provided in Section 5.

     2.2 Extension. Following the expiration of the Original Employment Term and provided
that this Agreement has not been terminated pursuant to Section 5, and every year thereafter, the
Agreement shall be automatically renewed for an additional 12 month period (the “Extension
Period”), effective on each anniversary date of the Effective Date, unless either party notifies
the other party in writing not less than 90 days prior to the expiration of the Original Employment
Term or any subsequent 12 month period.

3. COMPENSATION

     3.1 Base Compensation. For the services to be rendered by Executive under this
Agreement, Executive shall be entitled to receive initial annual base compensation (“Base
Compensation”) of $300,000, payable in substantially equal twice-monthly installments. Thereafter,
the Base Compensation shall be reviewed and adjusted annually as determined by the Compensation
Committee (the “Compensation Committee”) of the Board of Directors (the “Board”) of the Company, or
if there is no Compensation Committee, then by the Board provided, however, in no event may the
Base Compensation be adjusted below the initial annual Base Compensation set forth in this Section
3.1.

     3.2 Bonus Compensation. The Compensation Committee shall review Executive’s
performance at least annually during each year of the Original Employment Term and during any
periods of automatic extension of this Agreement pursuant to Section 2.2 and cause the Company to
award Executive a cash bonus targeted at 25% of the Executive’s Base Compensation which the
Compensation Committee shall reasonably determine as fairly compensating and rewarding Executive
for services rendered to the Company and/or as an incentive for continued service to the Company.
The amount of such cash bonus shall be determined in the sole and absolute discretion of the
Compensation Committee, and shall be

 

 

dependent on, among other things, the achievement of certain performance levels by the
Company, including, without limitation, growth in funds from operations, and Executive’s
performance and contribution to increasing the funds from operations. Such bonus shall be paid to
Executive no later than March 15th of the calendar year following the calendar year in
which the bonus is earned.

     3.3 Benefits.

          (a) Medical Insurance. The Company shall provide to Executive and Executive’s spouse
and children, at its sole cost, such health, dental and optical insurance as the Company may from
time to time make available to its other executive employees.

          (b) Life and Disability Insurance. The Company shall provide Executive such
disability and life insurance as the Company in its sole discretion may from time to time make
available to its other executive employees.

          (c) Pension Plans, Etc. Executive shall be entitled to participate in all pension,
401(k) and other employee plans and benefits established by the Company on at least the same terms
as the Company’s other executive employees.

     3.4 Vacation. Executive shall be entitled to four (4) vacation weeks (20 business
days) in each calendar year, subject to and on a basis consistent with Company policy. In
addition, Executive shall be entitled to all Company holidays and other paid time off in accordance
with Company policy.

4. POSITION AND DUTIES

     4.1 Position. Executive shall serve as President & Chief Operating Officer. The
Company agrees that the duties that may be assigned Executive shall be the usual and customary
duties of the President and Chief Operating Officer. Executive shall have such executive power and
authority as shall reasonably be required to enable Executive to discharge the duties of such
offices. At the Company’s request, Executive may, at Executive’s discretion, serve the Company and
its respective subsidiaries in other offices and capacities in addition to the foregoing, but shall
not be required to do so. In the event the Company and Executive mutually agree that Executive
shall terminate Executive’s service in any one or more of the aforementioned capacities, or
Executive’s service in one or more of the aforementioned capacities is terminated, Executive’s
compensation, as specified in this Agreement, shall not be diminished or reduced in any manner.

     4.2 Devotion of Time and Effort. Executive shall use Executive’s good faith best
efforts and judgment in performing Executive’s duties as required hereunder and to act in the best
interests of the Company. Executive shall devote substantially all of his business time and
attention to the performance of services of the Company in his capacity as an officer thereof and
as may reasonably be requested by the Board.

     4.3 Other Activities. Executive may engage in other activities for Executive’s own
account while employed hereunder, including, without limitation, charitable, community and

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other business activities, provided that such other activities do not materially interfere
with the performance of Executive’s duties hereunder.

     4.4 Business Expenses. The Company shall promptly, but in no event later than ten
business days after submission of a claim of expenditure, reimburse Executive for all reasonable
business expenses including, without limitation, business seminar fees, professional association
dues, bar dues and reasonable entertainment expenses incurred by Executive in connection with the
business of the Company, upon presentation to the Company of written receipts for such expenses.
Such reimbursement shall also include, but not be limited to, reimbursement for all reasonable
travel expenses, including all airfare, hotel and rental car expenses incurred by Executive in
traveling in connection with the business of the Company.

     4.5 Company’s Obligations. The Company shall provide Executive with any and all
necessary or appropriate current financial information and access to current information and
records regarding all material transactions involving the Company, including but not limited to
acquisition of assets, personnel contracts, dispositions of assets, service agreements and
registration statements or other state or federal filings or disclosures, reasonably necessary for
Executive to carry out Executive’s duties and responsibilities hereunder. In addition, the Company
agrees to provide Executive, as a condition to Executive’s services hereunder, such staff,
equipment and office space as is reasonably necessary for Executive to perform Executive’s duties
hereunder.

5. TERMINATION

     5.1 Release of Claims. The receipt of any severance payments provided for under this
Agreement or otherwise upon Executive’s termination of employment (the “Separation Date”) shall be
dependent upon Executive’s delivery and non-revocation of an effective general release of claims
(the “General Release”) in a form satisfactory to the Company. The General Release must be
delivered to the Company and any applicable non-revocation period must have expired within 30 days
after the Separation Date. The severance payments shall commence on the 30th day after
Separation Date (the “Payment Commencement Date”), provided that if the General Release has been
executed and not revoked within 30 days of the Separation Date, such payments may commence on such
earlier date, unless the Payment Commencement Date occurs in the calendar year following the year
of the Separation Date, in which case the severance payments shall be paid or commence no earlier
than January 1 of such subsequent calendar year.

     5.2 By Company Without Cause. The Company may terminate this Agreement without
“Cause” (as hereinafter defined) at any time following the Effective Date, provided that the
Company first deliver to Executive the Company’s written election to terminate this Agreement at
least 90 days prior to the Separation Date.

     5.3 Severance Payment.

          (a) Amount. In the event the Company terminates Executive’s services hereunder
without Cause pursuant to Section 5.2 or Executive terminates his employment hereunder pursuant to
Section 5.6, Executive shall continue to render services to the Company pursuant to this Agreement
until the Separation Date and shall continue to receive compensation,

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as provided hereunder, through the Separation Date. In addition to other compensation payable
to Executive for services rendered through the Separation Date and subject to Sections 5.1 and 9.7,
the Company shall pay Executive severance in an amount equal to (i) Executive’s highest monthly
Base Compensation paid hereunder during the preceding 12 month period, multiplied by 9, plus (ii)
9/12 the average annual bonus (excluding any bonus payment deemed by the Compensation Committee in
its sole discretion to be a “Special Bonus”) received by the Executive during the preceding
twenty-four month period (the sum of (i) and (ii) shall be referred to as the “Severance Amount”).
The Severance Amount shall be paid in equal installments in accordance with the Company’s regular
payroll practices over a period of 9 months following the Payment Commencement Date or such earlier
date permitted by Section 5.1. of this Agreement.

          (b) Benefits. In the event Executive’s employment hereunder is terminated by the
Company without Cause pursuant to Section 5.2 or by the Company with Cause on account of
Executive’s Disability (as defined in Section 5.4(d) hereof), or Executive terminates his
employment hereunder pursuant to Section 5.6, then the Company shall continue to pay for and
provide to Executive and Executive’s spouse and children, as applicable, all of the benefits
described in Section 3.3(a) for a period of 9 months commencing on the Separation Date (the
“Severance Benefits”).

          (c) Acceleration of Vesting. In the event Executive’s employment hereunder is
terminated by the Company without Cause pursuant to Section 5.2 or Executive terminates his
employment hereunder pursuant to Section 5.6, then the vesting of (i) the unvested portion of any
stock option to purchase Company common stock granted to Executive (“Stock Options”) and (ii) any
shares of Company common stock granted to Executive which is subject to forfeiture (“Restricted
Stock”), shall be accelerated and shall become fully vested and immediately exercisable and all
Stock Options shall be exercisable through the earlier of the expiration date of the option
provided for in the option grant agreement (without regard to the Separation Date) (the “Final
Exercise Date”), 24 months following the Separation Date or 10 years from the original grant date
and, with respect to Restricted Stock, shall cease to be subject to forfeiture. Notwithstanding
the preceding sentence, in the case of any Stock Options that were outstanding as of March 31,
2006, the extension of the exercise period provided for in the preceding sentence shall not extend
the period during which such Stock Options may be exercised beyond the date that is the later of
the fifteenth day of the third month following the date, or December 31 of the calendar year in
which, the Stock Option would otherwise have expired if the exercise period had not been extended
based on the terms of such options at the original grant date.

     5.4 By the Company For Cause. The Company may terminate Executive for Cause at any
time, upon written notice to Executive. For purposes of this Agreement, “Cause” shall mean:

          (a) Executive’s conviction for commission of a felony;

          (b) Executive’s willful commission of any act of theft, embezzlement or misappropriation
against the Company;

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          (c) Executive’s willful and continued failure to substantially perform Executive’s duties
hereunder (other than such failure resulting from Executive’s incapacity due to physical or mental
illness), which failure is not remedied within a reasonable time after written demand for
substantial performance is delivered by the Company which specifically identifies the manner in
which the Company believes that Executive has not substantially performed Executive’s duties; or

          (d) Executive’s death or Disability (as hereinafter defined).

     In the event Executive is terminated for Cause pursuant to this Section 5.4, Executive shall,
within 30 days following the Separation Date, have the right to receive Executive’s compensation as
otherwise provided under this Agreement through the Separation Date. Executive shall have no
further right to receive compensation or other consideration from the Company or have any other
remedy whatsoever against the Company as a result of this Agreement or the termination of Executive
pursuant to this Section 5.4, except as otherwise specifically set forth herein with respect to a
termination due to Executive’s Disability.

     In the event Executive is terminated by reason of Executive’s Disability, the Company shall
pay Executive or his estate the Severance Amount in equal installments in accordance with the
Company’s regular payroll practices over a period of 9 months following the Payment Commencement
Date or such earlier date permitted by Section 5.1 of this Agreement. Said payment shall be in
addition to any life insurance or disability insurance payments to which Executive or his or her
estate is otherwise entitled and any other compensation earned by Executive hereunder. For
purposes of this Agreement, the term “Disability” shall mean death or (a) that the Executive is
unable to engage in any substantial gainful activity by reason of any medically determinable
physical or mental impairment that can be expect to result in death or can be expected to last for
a continuous period of not less than 12 months, (b) that the Executive is, by reason of any
medically determinable physical or mental impairment that can be expected to result in death or can
be expected to last for a continuous period of not less than 12 months, receiving income
replacement benefits for a period of not less than 3 months under an accident and health plan
covering employees of the Company, or (c) that the Executive has been determined to be totally
disabled by the Social Security Administration.

     5.5 Executive’s Voluntary Termination. Executive may, at any time, terminate this
Agreement upon written notice delivered to the Company at least 90 days prior to the Separation
Date. In the event of such voluntary termination of this Agreement by Executive: (i) Executive
shall have the right to receive Executive’s compensation as provided hereunder through the
Separation Date; and (ii) the Company on the one hand, and Executive, on the other hand, shall not
have any further right or remedy against one another except as provided in Sections 6, 7 and 8
hereof which shall remain in full force and effect.

     5.6 Change in Control. Executive may terminate his employment for “Good Reason” (as
hereinafter defined) at any time within one year after a “Change in Control” (as hereinafter
defined) of the Company. In the event Executive terminates his employment for Good Reason within
one year after a Change in Control pursuant to this Section 5.6, then subject to Section 5.1 of
this Agreement, (i) Executive shall continue to render services pursuant hereto and shall continue
to receive compensation, as provided hereunder, through the Separation Date, (ii) the

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Company shall pay Executive the Severance Amount in equal installments in accordance with the
Company’s normal payroll practice over a period of 9 months following the Payment Commencement Date
or such earlier date permitted by Section 5.1 of this Agreement and (iii) following such
termination, the Company shall provide the Severance Benefits as required by Section 5.3(b). For
purposes of this Agreement, a “Change in Control” shall mean the occurrence of any of the following
events:

          (a) an acquisition of any voting securities of the Company (the “Voting Securities”) by any
“person” (as the term “person” is used for purposes of Section 13(d) or Section 14(d) of the
Securities Exchange Act of 1934, as amended (the “1934 Act”)) immediately after which such person
has “beneficial ownership” (within the meaning of Rule 13d-3 promulgated under the 1934 Act) of 45%
or more of the combined voting power of the Company’s then outstanding Voting Securities; or

          (b) approval by the stockholders of the Company of:

               (i) a merger, consolidation, share exchange or reorganization of the Company, unless the
stockholders of the Company, immediately before such merger, consolidation, share exchange or
reorganization, own, directly or indirectly immediately following such merger, consolidation,
share exchange or reorganization, at least 51% of the combined voting power of the outstanding
voting securities of the corporation that is the successor in such merger, consolidation, share
exchange or reorganization (the “Surviving Company”) in substantially the same proportion as their
ownership of the Voting Securities immediately before such merger, consolidation, share exchange
or reorganization; or

               (ii) a complete liquidation or dissolution of the Company; or

               (iii) an agreement for the sale or other disposition of all or substantially all of the
assets of the Company.

     For purposes of this Agreement, “Good Reason” shall mean the occurrence of any of the
following events without Executive’s prior written consent:

          (a) a material diminution in Executive’s Base Compensation;

          (b) a material diminution in Executive’s then authority, duties or responsibilities; or

          (c) a material change in geographic location at which Executive performs services;

provided, however, that no such event or condition shall constitute Good Reason
unless (x) Executive gives the Company a written notice of termination for Good Reason not more
than 90 days after the initial existence of the condition, (y) the grounds for termination (if
susceptible to correction) are not corrected by the Company within 30 days of its receipt of such
notice and (z) Executive’s termination of employment occurs within one year following the Company’s
receipt of such notice.

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6. NON-SOLICITATION

     For a period of one year following the Separation Date, Executive shall not solicit or induce
any of the Company’s employees, agents or independent contractors to end their relationship with
the Company, or recruit, hire or otherwise induce any such person to perform services for
Executive, or any other person, firm or company. The restrictions set forth in this Section 6
shall not apply if Executive’s employment is terminated pursuant to Section 5.2 or Section 5.6.

7. NON-COMPETITION AFTER TERMINATION

     Executive agrees to be bound by the terms of the Confidential Information and Non-Competition
agreement attached hereto as Exhibit A and incorporated herein by reference.

8. INDEMNIFICATION

     To the fullest extent permitted under applicable law, the Company shall indemnify, defend and
hold Executive harmless from and against any and all causes of action, claims, demands,
liabilities, damages, costs and expenses of any nature whatsoever (collectively, “Damages”)
directly or indirectly arising out of or relating to Executive discharging Executive’s duties
hereunder on behalf of the Company, so long as Executive acted in good faith within the course and
scope of Executive’s duties with respect to the matter giving rise to the claim or Damages for
which Executive seeks indemnification.

9. GENERAL PROVISIONS

     9.1 Assignment; Binding Effect. Neither the Company nor Executive may assign,
delegate or otherwise transfer this Agreement or any of their respective rights or obligations
hereunder without the prior written consent of the other party. Any attempted prohibited
assignment or delegation shall be void. This Agreement shall be binding upon and inure to the
benefit of any permitted successors or assigns of the parties and the heirs, executors,
administrators and/or personal representatives of Executive.

     9.2 Notices. All notices, requests, demands and other communications that are
required or may be given under this Agreement shall be in writing and shall be deemed to have been
duly given where received if personally delivered; when transmitted if transmitted by telecopy,
electronic or digital transmission method with electronic confirmation of receipt; the day after it
is sent, if sent for next-day delivery to a domestic address by recognized overnight delivery
service (e.g., FEDEX); and upon receipt, if sent by certified or registered mail, return receipt
requested. In each case notice shall be sent to:

If to the Company:

Alseres Pharmaceuticals, Inc.

239 South Street

Hopkinton, MA 01748

Attention: Chief Executive Officer

Facsimile: 508-497-9664

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If to Executive:

Mark Pykett

Any party may change its address for the purpose of this Section 9.2 by giving the other party
written notice of its new address in the manner set forth above.

     9.3 Entire Agreement. This Agreement constitutes the entire agreement of the parties,
and supersedes all prior agreements, understandings and negotiations, whether written or oral,
between the Company and Executive with respect to the employment of Executive by the Company.

     9.4 Amendments; Waivers. This Agreement may be amended or modified, and any of the
terms and covenants may be waived, only by a written instrument executed by the parties hereto, or,
in the case of a waiver, by the party waiving compliance. Any waiver by any party in any one or
more instances of any term or covenant contained in this Agreement shall neither be deemed to be
nor construed as a further or continuing waiver of any such term or covenant of this Agreement.

     9.5 Provision; Severable. In case any one or more provisions of this Agreement shall
be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of
the remaining provisions contained herein shall not, in any way, be affected or impaired thereby.
If any provision hereof is determined by any court of competent jurisdiction to be invalid or
unenforceable by reason of such provision extending the covenants and agreements contained herein
for too great a period of time or over too great a geographical area, or being too extensive in any
other respect, such provision shall be interpreted to extend only over the maximum period of time
and geographical area, and to the maximum extent in all other respects, as to which it is valid and
enforceable, all as determined by such court in such action.

     9.6 Attorneys’ Fees. If any legal action, arbitration or other proceeding, is brought
for the enforcement of this Agreement, or because of an alleged dispute, breach or default in
connection with any of the provisions of this Agreement, the prevailing party shall be entitled to
recover reasonable attorneys’ fees and other costs incurred in that action or proceeding, including
any appeal of such action or proceeding, in addition to any other relief to which that party may be
entitled.

     9.7 Payments Subject to Section 409A. Subject to the provisions in this Section, any
severance payments or benefits under this Agreement shall begin only upon the date of Executive’s
“separation from service” (determined as set forth below) which occurs on or after the Separation
Date. The following rules shall apply with respect to distribution of the payments and benefits,
if any, to be provided to Executive under this Agreement:

          (a) It is intended that each installment of the severance payments and benefits provided under
this Agreement shall be treated as a separate “payment” for purposes of Section 409A of the
Internal Revenue Code of 1986, as amended, and the guidance issued thereunder (“Section 409A”).
Neither the Company nor Executive shall have the right to accelerate or defer the delivery of any
such payments or benefits except to the extent specifically permitted or required by Section 409A.

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          (b) If, as of the date of Executive’s “separation from service” from the Company, Executive is
not a “specified employee” (within the meaning of Section 409A), then each installment of the
severance payments and benefits shall be made on the dates and terms set forth in this Agreement.

          (c) If, as of the date of Executive’s “separation from service” from the Company, Executive is
a “specified employee” (within the meaning of Section 409A), then:

               (i) Each installment of the severance payments and benefits due under this Agreement that, in
accordance with the dates and terms set forth herein, will in all circumstances, regardless of
when the separation from service occurs, be paid within the Short-Term Deferral Period (as
hereinafter defined) shall be treated as a short-term deferral within the meaning of Treasury
Regulation Section 1.409A-1(b)(4) to the maximum extent permissible under Section 409A. For
purposes of this Agreement, the “Short-Term Deferral Period” means the period ending on the later
of the fifteenth day of the third month following the end of Executive’s tax year in which the
separation from service occurs and the fifteenth day of the third month following the end of the
Company’s tax year in which the separation from service occurs; and

               (ii) Each installment of the severance payments and benefits due under this Agreement that is
not described in paragraph (c)(i) above and that would, absent this subsection, be paid within the
six-month period following Executive’s “separation from service” from the Company shall not be
paid until the date that is six months and one day after such separation from service (or, if
earlier, Executive’s death), with any such installments that are required to be delayed being
accumulated during the six-month period and paid in a lump sum on the date that is six months and
one day following Executive’s separation from service and any subsequent installments, if any,
being paid in accordance with the dates and terms set forth herein; provided,
however, that the preceding provisions of this sentence shall not apply to any installment
of severance payments and benefits if and to the maximum extent that such installment is deemed to
be paid under a separation pay plan that does not provide for a deferral of compensation by reason
of the application of Treasury Regulation 1.409A-1(b)(9)(iii) (relating to separation pay upon an
involuntary separation from service). Any installments that qualify for the exception under
Treasury Regulation Section 1.409A-1(b)(9)(iii) must be paid no later than the last day of
Executive’s second taxable year following the taxable year in which the separation from service
occurs.

          (d) The determination of whether and when Executive’s separation from service from the Company
has occurred shall be made and in a manner consistent with, and based on the presumptions set forth
in, Treasury Regulation Section 1.409A-1(h). Solely for purposes of this paragraph (d), “Company”
shall include all persons with whom the Company would be considered a single employer under Section
414(b) and 414(c) of the Code.

          (e) All reimbursements and in-kind benefits provided under this Agreement shall be made or
provided in accordance with the requirements of Section 409A to the extent that such reimbursements
or in-kind benefits are subject to Section 409A, including, where applicable, the requirements that
(i) any reimbursement is for expenses incurred during Executive’s lifetime (or during a shorter
period of time specified in this Agreement), (ii) the

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amount of expenses eligible for reimbursement during a calendar year may not affect the
expenses eligible for reimbursement in any other calendar year, (iii) the reimbursement of an
eligible expense will be made on or before the last day of the calendar year following the year in
which the expense is incurred and (iv) the right to reimbursement is not subject to set off or
liquidation or exchange for any other benefit.

          (f) Notwithstanding anything herein to the contrary, the Company shall have no liability to
Executive or to any other person if the payments and benefits provided hereunder that are intended
to be exempt from or compliant with Section 409A are not so exempt or compliant.

     9.8 Governing Law. This Agreement shall be construed, performed and enforced in
accordance with, and governed by the laws of the State of Delaware without giving effect to the
principles of conflict of laws thereof.

     9.9 Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original, but all of which shall constitute the same instrument.

[Signature Page Follows]

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

	 	 	 	 	 
	 	THE COMPANY

ALSERES PHARMACEUTICALS, INC.

a Delaware corporation

 	 
	 	By:  	/s/ Peter G. Savas
 	 
	 	 	Peter G. Savas 	 
	 	 	Chief Executive Officer 	 
	 
	 	EXECUTIVE

 	 
	 	/s/ Mark Pykett
 	 
	 	Mark Pykett 	 
	 	 	 

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EXHIBIT A

CONFIDENTIAL INFORMATION AND NONCOMPETITION AGREEMENT

	 	 	 
	To: Alseres Pharmaceuticals, Inc.

	 	Date:                                         

     The undersigned, in consideration of and as a condition of my employment or continued
employment by you and/or by companies that you own, control, or are affiliated with or their
successors in business (collectively, the “Company”), hereby agrees as follows:

     1. Confidentiality. I agree to keep confidential, except as the Company may otherwise consent
in writing, and except for the Company’s benefit, not to disclose or make any use of at any time
either during or subsequent to my employment, any Inventions (as hereinafter defined), trade
secrets, confidential information, knowledge, data or other information of the Company relating to
products, franchises, processes, know-how, techniques, methods, designs, formulas, test data,
customer lists, business plans, marketing plans and strategies, pricing strategies, or other
subject matter pertaining to any business of the Company or any of its affiliates, which I may
produce, obtain, or otherwise acquire during the course of my employment, except as herein
provided. I further agree not to deliver, reproduce or in any way allow any such trade secrets,
confidential information, knowledge, data or other information, or any documentation relating
thereto, to be delivered to or used by any third parties without specific direction or consent of
the Chairman of the Board or the Chief Executive Officer of the Company. The provisions of this
Section 1 shall not apply to such knowledge, data or other information that is generally known to
the public.

     2. Conflicting Employment; Return of Confidential Material. I agree that during my employment
with the Company I will not engage in any other employment, occupation, consulting or other
activity relating to the business in which the Company is now or may hereafter become engaged, or
which would otherwise conflict with my obligations to the Company. In the event my employment with
the Company terminates for any reason whatsoever, I agree to promptly surrender and deliver to the
Company all trade secrets, confidential information, processes and records, including, but not
limited to, designs, formulae, test data, customer lists, business plans and strategies, Inventions
or other written memoranda, materials, equipment, drawings, documents and data that I may obtain or
produce during the course of my employment, and I will not take with me any description containing
or pertaining to any confidential information, knowledge or data of the Company that I may produce
or obtain during the course of my employment.

     3. Assignment of Inventions.

          3.1 I hereby acknowledge and agree that the Company is the owner of all Inventions. In order
to protect the Company’s rights to such Inventions, by executing this Agreement I hereby
irrevocably assign to the Company all my right, title and interest in and to all Inventions to the
Company.

          3.2 For purposes of this Agreement, “Inventions” shall mean all discoveries, processes,
designs, technologies, methods, techniques, devices, or improvements in any of the foregoing or
other ideas, whether or not patentable or copyrightable and whether or not reduced

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to practice, made or conceived by me (whether solely or jointly with others) during the period
of my employment with the Company that relate to the actual or demonstrably anticipated business,
work, or research and development of the Company, or result from or are suggested by any task
assigned to me or any work performed by me for or on behalf of the Company.

          3.3 Any discovery, process, design, method, technique, technology, device, or improvement in
any of the foregoing or other ideas, whether or not patentable or copyrightable and whether or not
reduced to practice, made or conceived by me (whether solely or jointly with others) that I develop
entirely on my own time not using any of the Company’s equipment, supplies, facilities, or trade
secret information (“Personal Invention”) is excluded from this Agreement provided such Personal
Invention (a) does not relate to the actual or demonstrably anticipated business, research and
development of the Company, and (b) does not result, directly or indirectly, from any work
performed by me for the Company.

     4. Disclosure of Inventions. I agree that in connection with any Invention, I will promptly
disclose such Invention to the Board of Directors of the Company in order to permit the Company to
enforce its property rights to such Invention in accordance with this Agreement. My disclosure
shall be received in confidence by the Company. If the Company in good faith decides not to use an
Invention, it will advise me of same and the rights to such Invention will revert to me within a
reasonable period of time.

     5. Patents and Copyrights; Execution of Documents.

          5.1 Upon request, I agree to assist the Company or its nominee (at its expense) during and at
any time subsequent to my employment in every reasonable way to obtain for its own benefit patents
and copyrights for Inventions in any and all countries. Such patents and copyrights shall be and
remain the sole and exclusive property of the Company or its nominee. I agree to perform such
lawful acts as the Company deems to be necessary to allow it to exercise all right, title and
interest in and to such patents and copyrights.

          5.2 In connection with this Agreement, I agree to execute, acknowledge and deliver to the
Company or its nominee upon request and at its expense all documents, including assignments of
title, patent or copyright applications, assignments of such applications, assignments of patents
or copyrights upon issuance, as the Company may determine necessary or desirable to protect the
Company’s or its nominee’s interest in Inventions, and/or to use in obtaining patents or copyrights
in any and all countries and to vest title thereto in the Company or its nominee to any of the
foregoing.

     6. Maintenance of Records. I agree to keep and maintain adequate and current written records
of all Inventions made by me (in the form of notes, sketches, drawings, flowcharts, printouts,
diskettes and other records as may be specified by the Company), which records shall be available
to and remain the sole property of the Company at all times.

     7. Prior Inventions. It is understood that all Personal Inventions, if any, whether patented
or unpatented, which I made prior to my employment by the Company, are excluded from this
Agreement. To preclude any possible uncertainty, I have set forth on Schedule A attached hereto a
complete list of all of my prior Personal Inventions, including numbers of all

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patents and patent applications and a brief description of all unpatented Personal Inventions
that are not the property of a previous employer. I represent and covenant that the list is
complete and that, if no items are on the list, I have no such prior Personal Inventions. I agree
to notify the Company in writing before I make any disclosure or perform any work on behalf of the
Company that appears to threaten or conflict with proprietary rights I claim in any Personal
Invention. In the event of my failure to give such notice, I agree that I will make no claim
against the Company with respect to any such Personal Invention.

     8. Other Obligations. I acknowledge that the Company from time to time may have agreements
with other persons, companies, entities, Governments or agencies thereof, that impose obligations
or restrictions on the Company regarding Inventions made during the course of work thereunder or
regarding the confidential nature of such work. I agree to be bound by all such obligations and
restrictions and to take all actions necessary to discharge the Company’s obligations.

     9. Trade Secrets of Others. I represent that my performance of all the terms of this
Agreement and as an employee of the Company does not and will not breach any agreement to keep
confidential proprietary information, knowledge, or data acquired by me in confidence or in trust
prior to my employment with the Company, and I will not disclose to the Company, or induce the
Company to use, any confidential or proprietary information or material belonging to any previous
employer or others. I agree not to enter into any agreement either written or oral in conflict
herewith.

     10. Post-Employment Activities.

          10.1 For a period of one (1) year after the termination, for any reason, of my employment with
the Company, absent the Company’s prior written approval, I will not directly or indirectly engage
in activities similar or reasonably related to those in which I shall have engaged for the Company
during the two years immediately preceding termination, nor render services similar or reasonably
related to those which I shall have rendered during such time to, any person or entity whether
existing or hereafter established that directly competes with (or proposes or plans to directly
compete with) the Company, or in other areas where the Company carries on a substantial amount of
business (“Direct Competitor”). In addition, I shall not entice, induce or encourage any of the
Company’s other employees to engage in any activity that, were it done by me, would violate any
provision of this Agreement.

          10.2 No provision of this Agreement shall be construed to preclude me from performing the same
services that the Company retains me to perform for any person or entity that is not a Direct
Competitor of the Company upon the termination of my employment (or any post-employment
consultation) so long as I do not thereby violate any term of this Agreement.

     11. Remedies. My obligations under this Agreement shall survive the termination of my
employment with the Company. I acknowledge that a remedy at law for any breach or threatened
breach by me of the provisions of this Agreement would be inadequate and I therefore agree that the
Company shall be entitled to injunctive relief in case of any such breach or threatened breach.

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     12. Modification. I agree that any subsequent change or changes in my employment duties,
salary or compensation or, if applicable, in any Employment Agreement between the Company and me,
shall not affect the validity or scope of this Agreement.

     13. Successors and Assigns. This Agreement shall be binding upon my heirs, executors,
administrators or other legal representatives and is for the benefit of the Company, its
successors and assigns.

     14. Interpretation. IT IS THE INTENT OF THE PARTIES THAT in case any one or more of the
provisions contained in this Agreement shall, for any reason, be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect the
other provisions of this Agreement, and this Agreement shall be construed as if such invalid,
illegal, or unenforceable provision had never been contained herein. MOREOVER, IT IS THE INTENT OF
THE PARTIES THAT if any provision of this Agreement is or becomes or is deemed invalid, illegal or
unenforceable or in case any one or more of the provisions contained in this Agreement shall for
any reason be held to be excessively broad as to duration, geographical scope, activity or subject,
such provision shall be construed by amending, limiting and/or reducing it to conform to applicable
laws so as to be valid and enforceable or, if it cannot be so amended without materially altering
the intention of the parties, it shall be stricken and the remainder of this Agreement shall remain
in full force and effect.

     15. Waivers. No waiver of any right under this Agreement shall be deemed effective unless
contained in a writing signed by the party charged with such waiver, and no waiver of any right
arising from any breach or failure to perform shall be deemed to be a waiver of any future such
right or of any other right arising under this Agreement. If either party should waive any breach
of any provision 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.

     16. Complete Agreement, Amendments. The foregoing is the entire agreement of the parties with
respect to the subject matter hereof, superseding any previous oral or written communications,
representations, understandings, or agreements with the Company or any officer or representative
thereof. Any amendment to this Agreement or waiver by the Company of any right hereunder shall be
effective only if evidenced by a written instrument executed by the parties hereto, upon
authorization of the Company’s Board of Directors.

     17. Headings. The headings of the Sections contained in this Agreement are inserted for
convenience and reference only and in no way define, limit, extend or describe the scope of this
Agreement, or the intent of any provision hereof, and shall not be deemed to constitute a part
hereof nor to affect the meaning of this Agreement in any way.

     18. Governing Law. This Agreement shall be governed by and construed in accordance with the
internal laws of the Commonwealth of Massachusetts, excluding its conflict of law principles.

     19. Notices. All notices, requests, demands and communications which are or may be required
to be given hereunder shall be deemed effectively given if and when sent by registered or certified
mail, return receipt requested, postage prepaid, to the following addresses:

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     If to the Company:

     If to Employee:

     20. Conflicts. In the event of any conflict between the provisions of this agreement and the
provisions of the Amended and Restated Employment Agreement, the provisions of the Amended and
Restated Employment Agreement will govern.

	 	 	 	 	 
	 	Very truly yours,

Agreed:

Alseres Pharmaceuticals, Inc.

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	 	 
	 

-16-exv10w3

Exhibit 10.3

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

     THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (“Agreement”) is made and entered into as of
December 31, 2008 by and between ALSERES PHARMACEUTICALS, INC., a Delaware corporation (the
“Company”), and Kenneth L. Rice Jr. (“Executive”). This Agreement amends, restates and supersedes,
in its entirety, the Employment Agreement dated March 31, 2006 and effective as of January 1, 2006
(the “Effective Date”) previously in effect between the parties hereto.

AGREEMENT

1. EMPLOYMENT

     The Company hereby employs Executive and Executive hereby accepts employment upon the terms
and conditions set forth below.

2. TERM AND RENEWAL

     2.1 Term. The term of this Agreement shall commence on the Effective Date, and shall
continue for one (1) year from the Effective Date (the “Original Employment Term”), on the terms
and conditions set forth below, unless sooner terminated as provided in Section 5.

     2.2 Extension. Following the expiration of the Original Employment Term and provided
that this Agreement has not been terminated pursuant to Section 5, and every year thereafter, the
Agreement shall be automatically renewed for an additional 12 month period (the “Extension
Period”), effective on each anniversary date of the Effective Date, unless either party notifies
the other party in writing not less than 90 days prior to the expiration of the Original Employment
Term or any subsequent 12 month period.

3. COMPENSATION

     3.1 Base Compensation. For the services to be rendered by Executive under this
Agreement, Executive shall be entitled to receive initial annual base compensation (“Base
Compensation”) of $300,000, payable in substantially equal twice-monthly installments. Thereafter,
the Base Compensation shall be reviewed and adjusted annually as determined by the Compensation
Committee (the “Compensation Committee”) of the Board of Directors (the “Board”) of the Company, or
if there is no Compensation Committee, then by the Board provided, however, in no event may the
Base Compensation be adjusted below the initial annual Base Compensation set forth in this Section
3.1.

     3.2 Bonus Compensation. The Compensation Committee shall review Executive’s
performance at least annually during each year of the Original Employment Term and during any
periods of automatic extension of this Agreement pursuant to Section 2.2 and cause the Company to
award Executive a cash bonus targeted at 25% of the Executive’s Base Compensation which the
Compensation Committee shall reasonably determine as fairly compensating and rewarding Executive
for services rendered to the Company and/or as an incentive for continued service to the Company.
The amount of such cash bonus shall be
determined in the sole and absolute discretion of the Compensation Committee, and shall be

 

 

dependent on, among other things, the achievement of certain performance levels by the Company,
including, without limitation, growth in funds from operations, and Executive’s performance and
contribution to increasing the funds from operations. Such bonus shall be paid to Executive no
later than March 15th of the calendar year following the calendar year in which the
bonus is earned.

     3.3 Benefits.

          (a) Medical Insurance. The Company shall provide to Executive and Executive’s spouse
and children, at its sole cost, such health, dental and optical insurance as the Company may from
time to time make available to its other executive employees.

          (b) Life and Disability Insurance. The Company shall provide Executive such
disability and life insurance as the Company in its sole discretion may from time to time make
available to its other executive employees.

          (c) Pension Plans, Etc. Executive shall be entitled to participate in all pension,
401(k) and other employee plans and benefits established by the Company on at least the same terms
as the Company’s other executive employees.

     3.4 Vacation. Executive shall be entitled to four (4) vacation weeks (20 business
days) in each calendar year, subject to and on a basis consistent with Company policy. In
addition, Executive shall be entitled to all Company holidays and other paid time off in accordance
with Company policy.

4. POSITION AND DUTIES

     4.1 Position. Executive shall serve as Executive Vice President, Finance and
Administration and Chief Financial Officer. The Company agrees that the duties that may be
assigned Executive shall be the usual and customary duties of the Executive Vice President, Finance
and Administration and Chief Financial Officer. Executive shall have such executive power and
authority as shall reasonably be required to enable Executive to discharge the duties of such
offices. At the Company’s request, Executive may, at Executive’s discretion, serve the Company and
its respective subsidiaries in other offices and capacities in addition to the foregoing, but shall
not be required to do so. In the event the Company and Executive mutually agree that Executive
shall terminate Executive’s service in any one or more of the aforementioned capacities, or
Executive’s service in one or more of the aforementioned capacities is terminated, Executive’s
compensation, as specified in this Agreement, shall not be diminished or reduced in any manner.

     4.2 Devotion of Time and Effort. Executive shall use Executive’s good faith best
efforts and judgment in performing Executive’s duties as required hereunder and to act in the best
interests of the Company. Executive shall devote substantially all of his business time and
attention to the performance of services of the Company in his capacity as an officer thereof and
as may reasonably be requested by the Board.

     4.3 Other Activities. Executive may engage in other activities for Executive’s own
account while employed hereunder, including, without limitation, charitable, community and

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other business activities, provided that such other activities do not materially interfere with the
performance of Executive’s duties hereunder.

     4.4 Business Expenses. The Company shall promptly, but in no event later than ten
business days after submission of a claim of expenditure, reimburse Executive for all reasonable
business expenses including, without limitation, business seminar fees, professional association
dues, bar dues and reasonable entertainment expenses incurred by Executive in connection with the
business of the Company, upon presentation to the Company of written receipts for such expenses.
Such reimbursement shall also include, but not be limited to, reimbursement for all reasonable
travel expenses, including all airfare, hotel and rental car expenses incurred by Executive in
traveling in connection with the business of the Company.

     4.5 Company’s Obligations. The Company shall provide Executive with any and all
necessary or appropriate current financial information and access to current information and
records regarding all material transactions involving the Company, including but not limited to
acquisition of assets, personnel contracts, dispositions of assets, service agreements and
registration statements or other state or federal filings or disclosures, reasonably necessary for
Executive to carry out Executive’s duties and responsibilities hereunder. In addition, the Company
agrees to provide Executive, as a condition to Executive’s services hereunder, such staff,
equipment and office space as is reasonably necessary for Executive to perform Executive’s duties
hereunder.

5. TERMINATION

     5.1 Release of Claims. The receipt of any severance payments provided for under this
Agreement or otherwise upon Executive’s termination of employment (the “Separation Date”) shall be
dependent upon Executive’s delivery and non-revocation of an effective general release of claims
(the “General Release”) in a form satisfactory to the Company. The General Release must be
delivered to the Company and any applicable non-revocation period must have expired within 30 days
after the Separation Date. The severance payments shall commence on the 30th day after
Separation Date (the “Payment Commencement Date”), provided that if the General Release has been
executed and not revoked within 30 days of the Separation Date, such payments may commence on such
earlier date, unless the Payment Commencement Date occurs in the calendar year following the year
of the Separation Date, in which case the severance payments shall be paid or commence no earlier
than January 1 of such subsequent calendar year.

     5.2 By Company Without Cause. The Company may terminate this Agreement without
“Cause” (as hereinafter defined) at any time following the Effective Date, provided that the
Company first deliver to Executive the Company’s written election to terminate this Agreement at
least 90 days prior to the Separation Date.

     5.3 Severance Payment.

          (a) Amount. In the event the Company terminates Executive’s services hereunder
without Cause pursuant to Section 5.2 or Executive terminates his employment
hereunder pursuant to Section 5.6, Executive shall continue to render services to the Company
pursuant to this Agreement until the Separation Date and shall continue to receive compensation,

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as provided hereunder, through the Separation Date. In addition to other compensation payable to
Executive for services rendered through the Separation Date and subject to Sections 5.1 and 9.7,
the Company shall pay Executive severance in an amount equal to (i) Executive’s highest monthly
Base Compensation paid hereunder during the preceding 12 month period, multiplied by 9, plus (ii)
9/12 the average annual bonus (excluding any bonus payment deemed by the Compensation Committee in
its sole discretion to be a “Special Bonus”) received by the Executive during the preceding
twenty-four month period (the sum of (i) and (ii) shall be referred to as the “Severance Amount”).
The Severance Amount shall be paid in equal installments in accordance with the Company’s regular
payroll practices over a period of 9 months following the Payment Commencement Date or such earlier
date permitted by Section 5.1. of this Agreement.

          (b) Benefits. In the event Executive’s employment hereunder is terminated by the
Company without Cause pursuant to Section 5.2 or by the Company with Cause on account of
Executive’s Disability (as defined in Section 5.4(d) hereof), or Executive terminates his
employment hereunder pursuant to Section 5.6, then the Company shall continue to pay for and
provide to Executive and Executive’s spouse and children, as applicable, all of the benefits
described in Section 3.3(a) for a period of 9 months commencing on the Separation Date (the
“Severance Benefits”).

          (c) Acceleration of Vesting. In the event Executive’s employment hereunder is
terminated by the Company without Cause pursuant to Section 5.2 or Executive terminates his
employment hereunder pursuant to Section 5.6, then the vesting of (i) the unvested portion of any
stock option to purchase Company common stock granted to Executive (“Stock Options”) and (ii) any
shares of Company common stock granted to Executive which is subject to forfeiture (“Restricted
Stock”), shall be accelerated and shall become fully vested and immediately exercisable and all
Stock Options shall be exercisable through the earlier of the expiration date of the option
provided for in the option grant agreement (without regard to the Separation Date) (the “Final
Exercise Date”), 24 months following the Separation Date or 10 years from the original grant date
and, with respect to Restricted Stock, shall cease to be subject to forfeiture. Notwithstanding
the preceding sentence, in the case of any Stock Options that were outstanding as of March 31,
2006, the extension of the exercise period provided for in the preceding sentence shall not extend
the period during which such Stock Options may be exercised beyond the date that is the later of
the fifteenth day of the third month following the date, or December 31 of the calendar year in
which, the Stock Option would otherwise have expired if the exercise period had not been extended
based on the terms of such options at the original grant date.

     5.4 By the Company For Cause. The Company may terminate Executive for Cause at any
time, upon written notice to Executive. For purposes of this Agreement, “Cause” shall mean:

          (a) Executive’s conviction for commission of a felony;

          (b) Executive’s willful commission of any act of theft, embezzlement or misappropriation
against the Company;

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          (c) Executive’s willful and continued failure to substantially perform Executive’s duties
hereunder (other than such failure resulting from Executive’s incapacity due to physical or mental
illness), which failure is not remedied within a reasonable time after written demand for
substantial performance is delivered by the Company which specifically identifies the manner in
which the Company believes that Executive has not substantially performed Executive’s duties; or

          (d) Executive’s death or Disability (as hereinafter defined).

     In the event Executive is terminated for Cause pursuant to this Section 5.4, Executive shall,
within 30 days following the Separation Date, have the right to receive Executive’s compensation as
otherwise provided under this Agreement through the Separation Date. Executive shall have no
further right to receive compensation or other consideration from the Company or have any other
remedy whatsoever against the Company as a result of this Agreement or the termination of Executive
pursuant to this Section 5.4, except as otherwise specifically set forth herein with respect to a
termination due to Executive’s Disability.

     In the event Executive is terminated by reason of Executive’s Disability, the Company shall
pay Executive or his estate the Severance Amount in equal installments in accordance with the
Company’s regular payroll practices over a period of 9 months following the Payment Commencement
Date or such earlier date permitted by Section 5.1 of this Agreement. Said payment shall be in
addition to any life insurance or disability insurance payments to which Executive or his or her
estate is otherwise entitled and any other compensation earned by Executive hereunder. For
purposes of this Agreement, the term “Disability” shall mean death or (a) that the Executive is
unable to engage in any substantial gainful activity by reason of any medically determinable
physical or mental impairment that can be expect to result in death or can be expected to last for
a continuous period of not less than 12 months, (b) that the Executive is, by reason of any
medically determinable physical or mental impairment that can be expected to result in death or can
be expected to last for a continuous period of not less than 12 months, receiving income
replacement benefits for a period of not less than 3 months under an accident and health plan
covering employees of the Company, or (c) that the Executive has been determined to be totally
disabled by the Social Security Administration.

     5.5 Executive’s Voluntary Termination. Executive may, at any time, terminate this
Agreement upon written notice delivered to the Company at least 90 days prior to the Separation
Date. In the event of such voluntary termination of this Agreement by Executive: (i) Executive
shall have the right to receive Executive’s compensation as provided hereunder through the
Separation Date; and (ii) the Company on the one hand, and Executive, on the other hand, shall not
have any further right or remedy against one another except as provided in Sections 6, 7 and 8
hereof which shall remain in full force and effect.

     5.6 Change in Control. Executive may terminate his employment for “Good Reason” (as
hereinafter defined) at any time within one year after a “Change in Control” (as hereinafter
defined) of the Company. In the event Executive terminates his employment for Good Reason within
one year after a Change in Control pursuant to this Section 5.6, then subject to Section 5.1 of
this Agreement, (i) Executive shall continue to render services pursuant hereto and shall continue
to receive compensation, as provided hereunder, through the Separation Date, (ii) the

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Company shall pay Executive the Severance Amount in equal installments in accordance with the
Company’s normal payroll practice over a period of 9 months following the Payment Commencement Date
or such earlier date permitted by Section 5.1 of this Agreement and (iii) following such
termination, the Company shall provide the Severance Benefits as required by Section 5.3(b). For
purposes of this Agreement, a “Change in Control” shall mean the occurrence of any of the following
events:

          (a) an acquisition of any voting securities of the Company (the “Voting Securities”) by any
“person” (as the term “person” is used for purposes of Section 13(d) or Section 14(d) of the
Securities Exchange Act of 1934, as amended (the “1934 Act”)) immediately after which such person
has “beneficial ownership” (within the meaning of Rule 13d-3 promulgated under the 1934 Act) of 45%
or more of the combined voting power of the Company’s then outstanding Voting Securities; or

          (b) approval by the stockholders of the Company of:

               (i) a merger, consolidation, share exchange or reorganization of the Company, unless the
stockholders of the Company, immediately before such merger, consolidation, share exchange or
reorganization, own, directly or indirectly immediately following such merger, consolidation, share
exchange or reorganization, at least 51% of the combined voting power of the outstanding voting
securities of the corporation that is the successor in such merger, consolidation, share exchange
or reorganization (the “Surviving Company”) in substantially the same proportion as their ownership
of the Voting Securities immediately before such merger, consolidation, share exchange or
reorganization; or

               (ii) a complete liquidation or dissolution of the Company; or

               (iii) an agreement for the sale or other disposition of all or substantially all of the assets
of the Company.

     For purposes of this Agreement, “Good Reason” shall mean the occurrence of any of the
following events without Executive’s prior written consent:

          (a) a material diminution in Executive’s Base Compensation;

          (b) a material diminution in Executive’s then authority, duties or responsibilities; or

          (c) a material change in geographic location at which Executive performs services;

provided, however, that no such event or condition shall constitute Good Reason
unless (x) Executive gives the Company a written notice of termination for Good Reason not more
than 90 days after the initial existence of the condition, (y) the grounds for termination (if
susceptible to correction) are not corrected by the Company within 30 days of its receipt of such
notice and (z) Executive’s termination of employment occurs within one year following the Company’s
receipt of such notice.

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6. NON-SOLICITATION

     For a period of one year following the Separation Date, Executive shall not solicit or induce
any of the Company’s employees, agents or independent contractors to end their relationship with
the Company, or recruit, hire or otherwise induce any such person to perform services for
Executive, or any other person, firm or company. The restrictions set forth in this Section 6
shall not apply if Executive’s employment is terminated pursuant to Section 5.2 or Section 5.6.

7. NON-COMPETITION AFTER TERMINATION

     Executive agrees to be bound by the terms of the Confidential Information and Non-Competition
agreement attached hereto as Exhibit A and incorporated herein by reference.

8. INDEMNIFICATION

     To the fullest extent permitted under applicable law, the Company shall indemnify, defend and
hold Executive harmless from and against any and all causes of action, claims, demands,
liabilities, damages, costs and expenses of any nature whatsoever (collectively, “Damages”)
directly or indirectly arising out of or relating to Executive discharging Executive’s duties
hereunder on behalf of the Company, so long as Executive acted in good faith within the course and
scope of Executive’s duties with respect to the matter giving rise to the claim or Damages for
which Executive seeks indemnification.

9. GENERAL PROVISIONS

     9.1 Assignment; Binding Effect. Neither the Company nor Executive may assign,
delegate or otherwise transfer this Agreement or any of their respective rights or obligations
hereunder without the prior written consent of the other party. Any attempted prohibited
assignment or delegation shall be void. This Agreement shall be binding upon and inure to the
benefit of any permitted successors or assigns of the parties and the heirs, executors,
administrators and/or personal representatives of Executive.

     9.2 Notices. All notices, requests, demands and other communications that are
required or may be given under this Agreement shall be in writing and shall be deemed to have been
duly given where received if personally delivered; when transmitted if transmitted by telecopy,
electronic or digital transmission method with electronic confirmation of receipt; the day after it
is sent, if sent for next-day delivery to a domestic address by recognized overnight delivery
service (e.g., FEDEX); and upon receipt, if sent by certified or registered mail, return receipt
requested. In each case notice shall be sent to:

If to the Company:

Alseres Pharmaceuticals, Inc.

239 South Street

Hopkinton, MA 01748

Attention: Chief Executive Officer

Facsimile: 508-497-9664

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If to Executive:

Kenneth L. Rice Jr.

Any party may change its address for the purpose of this Section 9.2 by giving the other party
written notice of its new address in the manner set forth above.

     9.3 Entire Agreement. This Agreement constitutes the entire agreement of the parties,
and supersedes all prior agreements, understandings and negotiations, whether written or oral,
between the Company and Executive with respect to the employment of Executive by the Company.

     9.4 Amendments; Waivers. This Agreement may be amended or modified, and any of the
terms and covenants may be waived, only by a written instrument executed by the parties hereto, or,
in the case of a waiver, by the party waiving compliance. Any waiver by any party in any one or
more instances of any term or covenant contained in this Agreement shall neither be deemed to be
nor construed as a further or continuing waiver of any such term or covenant of this Agreement.

     9.5 Provision; Severable. In case any one or more provisions of this Agreement shall
be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of
the remaining provisions contained herein shall not, in any way, be affected or impaired thereby.
If any provision hereof is determined by any court of competent jurisdiction to be invalid or
unenforceable by reason of such provision extending the covenants and agreements contained herein
for too great a period of time or over too great a geographical area, or being too extensive in any
other respect, such provision shall be interpreted to extend only over the maximum period of time
and geographical area, and to the maximum extent in all other respects, as to which it is valid and
enforceable, all as determined by such court in such action.

     9.6 Attorneys’ Fees. If any legal action, arbitration or other proceeding, is brought
for the enforcement of this Agreement, or because of an alleged dispute, breach or default in
connection with any of the provisions of this Agreement, the prevailing party shall be entitled to
recover reasonable attorneys’ fees and other costs incurred in that action or proceeding, including
any appeal of such action or proceeding, in addition to any other relief to which that party may be
entitled.

     9.7 Payments Subject to Section 409A. Subject to the provisions in this Section, any
severance payments or benefits under this Agreement shall begin only upon the date of Executive’s
“separation from service” (determined as set forth below) which occurs on or after the Separation
Date. The following rules shall apply with respect to distribution of the payments and benefits,
if any, to be provided to Executive under this Agreement:

          (a) It is intended that each installment of the severance payments and benefits provided under
this Agreement shall be treated as a separate “payment” for purposes of Section 409A of the
Internal Revenue Code of 1986, as amended, and the guidance issued thereunder (“Section 409A”).
Neither the Company nor Executive shall have the right to accelerate or defer the delivery of any
such payments or benefits except to the extent specifically permitted or required by Section 409A.

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          (b) If, as of the date of Executive’s “separation from service” from the Company, Executive is
not a “specified employee” (within the meaning of Section 409A), then each installment of the
severance payments and benefits shall be made on the dates and terms set forth in this Agreement.

          (c) If, as of the date of Executive’s “separation from service” from the Company, Executive is
a “specified employee” (within the meaning of Section 409A), then:

               (i) Each installment of the severance payments and benefits due under this Agreement that, in
accordance with the dates and terms set forth herein, will in all circumstances, regardless of when
the separation from service occurs, be paid within the Short-Term Deferral Period (as hereinafter
defined) shall be treated as a short-term deferral within the meaning of Treasury Regulation
Section 1.409A-1(b)(4) to the maximum extent permissible under Section 409A. For purposes of this
Agreement, the “Short-Term Deferral Period” means the period ending on the later of the fifteenth
day of the third month following the end of Executive’s tax year in which the separation from
service occurs and the fifteenth day of the third month following the end of the Company’s tax year
in which the separation from service occurs; and

               (ii) Each installment of the severance payments and benefits due under this Agreement that is
not described in paragraph (c)(i) above and that would, absent this subsection, be paid within the
six-month period following Executive’s “separation from service” from the Company shall not be paid
until the date that is six months and one day after such separation from service (or, if earlier,
Executive’s death), with any such installments that are required to be delayed being accumulated
during the six-month period and paid in a lump sum on the date that is six months and one day
following Executive’s separation from service and any subsequent installments, if any, being paid
in accordance with the dates and terms set forth herein; provided, however, that
the preceding provisions of this sentence shall not apply to any installment of severance payments
and benefits if and to the maximum extent that such installment is deemed to be paid under a
separation pay plan that does not provide for a deferral of compensation by reason of the
application of Treasury Regulation 1.409A-1(b)(9)(iii) (relating to separation pay upon an
involuntary separation from service). Any installments that qualify for the exception under
Treasury Regulation Section 1.409A-1(b)(9)(iii) must be paid no later than the last day of
Executive’s second taxable year following the taxable year in which the separation from service
occurs.

          (d) The determination of whether and when Executive’s separation from service from the Company
has occurred shall be made and in a manner consistent with, and based on the presumptions set forth
in, Treasury Regulation Section 1.409A-1(h). Solely for purposes of this paragraph (d), “Company”
shall include all persons with whom the Company would be considered a single employer under Section
414(b) and 414(c) of the Code.

          (e) All reimbursements and in-kind benefits provided under this Agreement shall be made or
provided in accordance with the requirements of Section 409A to the extent that such reimbursements
or in-kind benefits are subject to Section 409A, including, where applicable, the requirements that
(i) any reimbursement is for expenses incurred during Executive’s lifetime (or during a shorter
period of time specified in this Agreement), (ii) the

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amount of expenses eligible for reimbursement during a calendar year may not affect the
expenses eligible for reimbursement in any other calendar year, (iii) the reimbursement of an
eligible expense will be made on or before the last day of the calendar year following the year in
which the expense is incurred and (iv) the right to reimbursement is not subject to set off or
liquidation or exchange for any other benefit.

          (f) Notwithstanding anything herein to the contrary, the Company shall have no liability to
Executive or to any other person if the payments and benefits provided hereunder that are intended
to be exempt from or compliant with Section 409A are not so exempt or compliant.

     9.8 Governing Law. This Agreement shall be construed, performed and enforced in
accordance with, and governed by the laws of the State of Delaware without giving effect to the
principles of conflict of laws thereof.

     9.9 Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original, but all of which shall constitute the same instrument.

[Signature Page Follows]

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

	 	 	 	 	 
	 	THE COMPANY

ALSERES PHARMACEUTICALS, INC.

a Delaware corporation

 	 
	 	By:  	/s/ Peter G. Savas
 	 
	 	 	Peter G. Savas 	 
	 	 	Chief Executive Officer 	 
	 
	 	EXECUTIVE

 	 
	 	/s/ Kenneth L. Rice, Jr.
 	 
	 	Kenneth L. Rice, Jr. 	 
	 	 	 

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EXHIBIT A

CONFIDENTIAL INFORMATION AND NONCOMPETITION AGREEMENT

			
	 	 	 
	To: Alseres Pharmaceuticals, Inc.
	 	Date:                                         

     The undersigned, in consideration of and as a condition of my employment or continued
employment by you and/or by companies that you own, control, or are affiliated with or their
successors in business (collectively, the “Company”), hereby agrees as follows:

     1. Confidentiality. I agree to keep confidential, except as the Company may otherwise consent
in writing, and except for the Company’s benefit, not to disclose or make any use of at any time
either during or subsequent to my employment, any Inventions (as hereinafter defined), trade
secrets, confidential information, knowledge, data or other information of the Company relating to
products, franchises, processes, know-how, techniques, methods, designs, formulas, test data,
customer lists, business plans, marketing plans and strategies, pricing strategies, or other
subject matter pertaining to any business of the Company or any of its affiliates, which I may
produce, obtain, or otherwise acquire during the course of my employment, except as herein
provided. I further agree not to deliver, reproduce or in any way allow any such trade secrets,
confidential information, knowledge, data or other information, or any documentation relating
thereto, to be delivered to or used by any third parties without specific direction or consent of
the Chairman of the Board or the Chief Executive Officer of the Company. The provisions of this
Section 1 shall not apply to such knowledge, data or other information that is generally known to
the public.

     2. Conflicting Employment; Return of Confidential Material. I agree that during my employment
with the Company I will not engage in any other employment, occupation, consulting or other
activity relating to the business in which the Company is now or may hereafter become engaged, or
which would otherwise conflict with my obligations to the Company. In the event my employment with
the Company terminates for any reason whatsoever, I agree to promptly surrender and deliver to the
Company all trade secrets, confidential information, processes and records, including, but not
limited to, designs, formulae, test data, customer lists, business plans and strategies, Inventions
or other written memoranda, materials, equipment, drawings, documents and data that I may obtain or
produce during the course of my employment, and I will not take with me any description containing
or pertaining to any confidential information, knowledge or data of the Company that I may produce
or obtain during the course of my employment.

     3. Assignment of Inventions.

          3.1 I hereby acknowledge and agree that the Company is the owner of all Inventions. In order
to protect the Company’s rights to such Inventions, by executing this Agreement I hereby
irrevocably assign to the Company all my right, title and interest in and to all Inventions to the
Company.

          3.2 For purposes of this Agreement, “Inventions” shall mean all discoveries, processes,
designs, technologies, methods, techniques, devices, or improvements in any of the foregoing or
other ideas, whether or not patentable or copyrightable and whether or not reduced

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to practice, made or conceived by me (whether solely or jointly with others) during the period
of my employment with the Company that relate to the actual or demonstrably anticipated business,
work, or research and development of the Company, or result from or are suggested by any task
assigned to me or any work performed by me for or on behalf of the Company.

          3.3 Any discovery, process, design, method, technique, technology, device, or improvement in
any of the foregoing or other ideas, whether or not patentable or copyrightable and whether or not
reduced to practice, made or conceived by me (whether solely or jointly with others) that I develop
entirely on my own time not using any of the Company’s equipment, supplies, facilities, or trade
secret information (“Personal Invention”) is excluded from this Agreement provided such Personal
Invention (a) does not relate to the actual or demonstrably anticipated business, research and
development of the Company, and (b) does not result, directly or indirectly, from any work
performed by me for the Company.

     4. Disclosure of Inventions. I agree that in connection with any Invention, I will promptly
disclose such Invention to the Board of Directors of the Company in order to permit the Company to
enforce its property rights to such Invention in accordance with this Agreement. My disclosure
shall be received in confidence by the Company. If the Company in good faith decides not to use an
Invention, it will advise me of same and the rights to such Invention will revert to me within a
reasonable period of time.

     5. Patents and Copyrights; Execution of Documents.

          5.1 Upon request, I agree to assist the Company or its nominee (at its expense) during and at
any time subsequent to my employment in every reasonable way to obtain for its own benefit patents
and copyrights for Inventions in any and all countries. Such patents and copyrights shall be and
remain the sole and exclusive property of the Company or its nominee. I agree to perform such
lawful acts as the Company deems to be necessary to allow it to exercise all right, title and
interest in and to such patents and copyrights.

          5.2 In connection with this Agreement, I agree to execute, acknowledge and deliver to the
Company or its nominee upon request and at its expense all documents, including assignments of
title, patent or copyright applications, assignments of such applications, assignments of patents
or copyrights upon issuance, as the Company may determine necessary or desirable to protect the
Company’s or its nominee’s interest in Inventions, and/or to use in obtaining patents or copyrights
in any and all countries and to vest title thereto in the Company or its nominee to any of the
foregoing.

     6. Maintenance of Records. I agree to keep and maintain adequate and current written records
of all Inventions made by me (in the form of notes, sketches, drawings, flowcharts, printouts,
diskettes and other records as may be specified by the Company), which records shall be available
to and remain the sole property of the Company at all times.

     7. Prior Inventions. It is understood that all Personal Inventions, if any, whether patented
or unpatented, which I made prior to my employment by the Company, are excluded from this
Agreement. To preclude any possible uncertainty, I have set forth on Schedule A attached hereto a
complete list of all of my prior Personal Inventions, including numbers of all

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patents and patent applications and a brief description of all unpatented Personal Inventions
that are not the property of a previous employer. I represent and covenant that the list is
complete and that, if no items are on the list, I have no such prior Personal Inventions. I agree
to notify the Company in writing before I make any disclosure or perform any work on behalf of the
Company that appears to threaten or conflict with proprietary rights I claim in any Personal
Invention. In the event of my failure to give such notice, I agree that I will make no claim
against the Company with respect to any such Personal Invention.

     8. Other Obligations. I acknowledge that the Company from time to time may have agreements
with other persons, companies, entities, Governments or agencies thereof, that impose obligations
or restrictions on the Company regarding Inventions made during the course of work thereunder or
regarding the confidential nature of such work. I agree to be bound by all such obligations and
restrictions and to take all actions necessary to discharge the Company’s obligations.

     9. Trade Secrets of Others. I represent that my performance of all the terms of this
Agreement and as an employee of the Company does not and will not breach any agreement to keep
confidential proprietary information, knowledge, or data acquired by me in confidence or in trust
prior to my employment with the Company, and I will not disclose to the Company, or induce the
Company to use, any confidential or proprietary information or material belonging to any previous
employer or others. I agree not to enter into any agreement either written or oral in conflict
herewith.

     10. Post-Employment Activities.

          10.1 For a period of one (1) year after the termination, for any reason, of my employment with
the Company, absent the Company’s prior written approval, I will not directly or indirectly engage
in activities similar or reasonably related to those in which I shall have engaged for the Company
during the two years immediately preceding termination, nor render services similar or reasonably
related to those which I shall have rendered during such time to, any person or entity whether
existing or hereafter established that directly competes with (or proposes or plans to directly
compete with) the Company, or in other areas where the Company carries on a substantial amount of
business (“Direct Competitor”). In addition, I shall not entice, induce or encourage any of the
Company’s other employees to engage in any activity that, were it done by me, would violate any
provision of this Agreement.

          10.2 No provision of this Agreement shall be construed to preclude me from performing the same
services that the Company retains me to perform for any person or entity that is not a Direct
Competitor of the Company upon the termination of my employment (or any post-employment
consultation) so long as I do not thereby violate any term of this Agreement.

     11. Remedies. My obligations under this Agreement shall survive the termination of my
employment with the Company. I acknowledge that a remedy at law for any breach or threatened
breach by me of the provisions of this Agreement would be inadequate and I therefore agree that the
Company shall be entitled to injunctive relief in case of any such breach or threatened breach.

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     12. Modification. I agree that any subsequent change or changes in my employment duties,
salary or compensation or, if applicable, in any Employment Agreement between the Company and me,
shall not affect the validity or scope of this Agreement.

     13. Successors and Assigns. This Agreement shall be binding upon my heirs, executors,
administrators or other legal representatives and is for the benefit of the Company, its
successors and assigns.

     14. Interpretation. IT IS THE INTENT OF THE PARTIES THAT in case any one or more of the
provisions contained in this Agreement shall, for any reason, be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect the
other provisions of this Agreement, and this Agreement shall be construed as if such invalid,
illegal, or unenforceable provision had never been contained herein. MOREOVER, IT IS THE INTENT OF
THE PARTIES THAT if any provision of this Agreement is or becomes or is deemed invalid, illegal or
unenforceable or in case any one or more of the provisions contained in this Agreement shall for
any reason be held to be excessively broad as to duration, geographical scope, activity or subject,
such provision shall be construed by amending, limiting and/or reducing it to conform to applicable
laws so as to be valid and enforceable or, if it cannot be so amended without materially altering
the intention of the parties, it shall be stricken and the remainder of this Agreement shall remain
in full force and effect.

     15. Waivers. No waiver of any right under this Agreement shall be deemed effective unless
contained in a writing signed by the party charged with such waiver, and no waiver of any right
arising from any breach or failure to perform shall be deemed to be a waiver of any future such
right or of any other right arising under this Agreement. If either party should waive any breach
of any provision 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.

     16. Complete Agreement, Amendments. The foregoing is the entire agreement of the parties with
respect to the subject matter hereof, superseding any previous oral or written communications,
representations, understandings, or agreements with the Company or any officer or representative
thereof. Any amendment to this Agreement or waiver by the Company of any right hereunder shall be
effective only if evidenced by a written instrument executed by the parties hereto, upon
authorization of the Company’s Board of Directors.

     17. Headings. The headings of the Sections contained in this Agreement are inserted for
convenience and reference only and in no way define, limit, extend or describe the scope of this
Agreement, or the intent of any provision hereof, and shall not be deemed to constitute a part
hereof nor to affect the meaning of this Agreement in any way.

     18. Governing Law. This Agreement shall be governed by and construed in accordance with the
internal laws of the Commonwealth of Massachusetts, excluding its conflict of law principles.

     19. Notices. All notices, requests, demands and communications which are or may be required
to be given hereunder shall be deemed effectively given if and when sent by registered or certified
mail, return receipt requested, postage prepaid, to the following addresses:

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     If to the Company:

     If to Employee:

     20. Conflicts. In the event of any conflict between the provisions of this agreement and the
provisions of the Amended and Restated Employment Agreement, the provisions of the Amended and
Restated Employment Agreement will govern.

	 	 	 	 	 
	 	Very truly yours,

Agreed:

Alseres Pharmaceuticals, Inc.

 	 
	 	By:  	
 	 
	 	 	 	 
	 	 	 	 
	 

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