Document:

Exhibit 10.1

 

EXHIBIT 10.1

September 7, 2006

James Merritt, M.D.

5285 Toscana Way, Apt. 8311

San Diego, California 92122

Dear James:

ADVENTRX Pharmaceuticals, Inc. is pleased to offer you full-time employment on the terms and
conditions stated in this letter agreement. We would employ you as President and Chief Medical
Officer reporting to Evan Levine, Chief Executive Officer. Your responsibilities would include the
following:

1. Position Responsibilities:

	•	 	Develops goals, operating plans, policies, and short and long-range objectives for the company.

	•	 	Directs, monitors, and leads the staff in the development and implementation of strategies, business plan, budget, and
work plans to achieve company’s vision and mission.

	•	 	Responsible for overseeing all aspects of staff administration, including hiring, terminations, salary administration,
job descriptions, regular staff meetings, performance evaluations, office policy and procedures and a timely form of
communication with support staff.

	•	 	Coordinates with the company’s Scientific Advisory Board.

	•	 	Represents the company on scientific and technical matters at internal and external functions, to the financial
community, partners, stakeholders, major customers, government agencies, and the general public.

	•	 	Manages the company’s portfolio of products and facilitates go/no decisions at each stage of product development.

	•	 	Develops the company’s research and development team through training and headcount growth, as appropriate.

	•	 	Supports the business development team on the technical due diligence associated with investor relations, in-licensing,
acquisitions, and co-development agreements.

	•	 	Works closely with legal advisors on enriching and optimizing the company’s intellectual property portfolio.

	•	 	Works closely with the clinical and regulatory team to ensure appropriate preparation and submission of regulatory
documents.

	•	 	Responsible for the overall functions of Clinical, Research & Development, Regulatory, Business Development, Sales &
Marketing, Facility & Operations, Administration and Human Resources.

	•	 	Perform other duties consistent with your positions as requested by the Chief Executive Officer.

2. General Responsibilities:

	•	 	Operate to the highest ethical and moral standards.

	•	 	Comply with our policies and procedures.

	•	 	Adhere to quality standards set by regulations, and our policies, procedures and mission.

 

 

James Merritt, M.D.

September 7, 2006

Page 2 of 7

	•	 	Communicate effectively with supervisors, colleagues and subordinates. Be committed to team effort and be willing
to assist in unrelated job areas when called upon.

	•	 	Provide administrative leadership for us and provide knowledge-based expertise in related areas that can be
applied to meeting the strategic goals.

	•	 	Travel as needed.

3. We would initially compensate you at the rate of $325,000 per year, less payroll deductions and
withholding, payable in accordance with our payroll policies. We will review your base salary from
time to time (but no less frequently than annually) in accordance with our procedures for
increasing salaries of similarly situated executives.

4. We would recommend that our Board of Directors grant you an incentive stock option to purchase
up to 300,000 shares of our common stock under our 2005 Equity Incentive Plan pursuant to a Stock
Option Agreement in substantially the form attached hereto as Exhibit A (the “Stock Option
Agreement”). Please note that the grant date, vesting commencement date and exercise price of this
option will be determined by our Board of Directors, or a committee thereof. There would also be
the possibility of receiving additional stock options in the future based upon your performance and
our overall success.

5. In addition and subject to the remainder of this section 5 and section 6, in the event of your
Involuntary Termination (as defined in the Stock Option Agreement) (a) you will receive an amount
equal to your base salary for the 6-month period immediately prior to the effective date of such
Involuntary Termination, payable in 6 substantially equal installments over the 6-month period
following such effective date and (b) we will pay all costs that we would otherwise have incurred
to maintain your health, welfare and retirement benefits if you had continued to render services to
us for 6 continuous months after such effective date. Prior to your receipt of any payment or
benefit provided by this section 5, you must execute a “mutual release” in substantially the form
attached hereto as Exhibit B, as such may be revised by the Company, acting reasonably, to
reflect changes in legal requirements, or such other form as may be mutually agreed to by you and
the Company. Such release will specifically relate to all of your rights and claims and the
Company’s rights and claims in existence at the time of such execution and will confirm your
obligations under the Company Confidentiality Agreement (as defined in Section 9 below). It is
understood that you will have a certain period to consider whether to execute such release, and you
may revoke such release within 7 business days after execution. In the event you do not execute
such release within the applicable period, or if you revoke such release within the subsequent
7-business-day period, you will not be entitled to the payments and benefits described in this
section 5.

6. You acknowledge and agree that any payment to be made or benefit to be provided to you pursuant
to section 5 will be delayed to the extent necessary for this letter agreement and such payment or
benefit to comply with Section 409A of the Internal Revenue Code (“Section 409A”); provided that,
if any payment to be made or benefit to be provided to you is delayed as a result of this section 6, such payment or benefit will be paid to you in a lump-sum as soon as
permitted under Section 409A. In addition, if we reasonably determine that a change in applicable
law following the date set forth above causes the payments to be made or benefits to be provided to
be payable to you without delay but in another manner that complies with Section 409A, you and we
agree to amend this letter agreement to reform the payment provisions set forth in section 5 to
provide to you economic benefits that are as close as reasonably possible to

 

 

James Merritt, M.D.

September 7, 2006

Page 3 of 7

those contemplated by section 5 but that still comply with Section 409A. Subject to the
foregoing, this letter agreement will be interpreted, construed and administered in a manner that
satisfies the requirements of Section 409A. Any provision of this letter agreement to the contrary
notwithstanding, we may adopt such amendments to this letter agreement or adopt other policies and
procedures (including amendments, policies and procedures with retroactive effect), or take any
other actions, that we determine are necessary to comply with the requirements of Section 409A;
provided, that, prior to taking any such action, we will confer with you and take your input into
account in good faith.

7. As an our employee, you would be entitled to participate in our medical, dental, life insurance
and 401(k) programs on the same terms as our other full-time employees. These programs as well as
other employee benefits and policies are described in further detail in our Policies and Procedures
Manual. We reserve the right to modify or amend at our sole discretion the terms of any and all
employee benefit programs from time to time without advance notice to our employees.
Notwithstanding our employee vacation policy set forth in the Policies and Procedures Manual, you
would be entitled to 30 vacation days per year which would accrue in accordance with our general
vacation accrual policy.

8. Your employment with us would be “at will” and not for a specified term. We make no express or
implied commitment that your employment will have a minimum or fixed term, that we may take adverse
employment action only for cause or that your employment is terminable only for cause. We may
terminate your employment with or without cause and with or without advance notice at any time and
for any reason. Any contrary representations or agreements that may have been made to you are
superseded by this letter agreement. The at-will nature of your employment described by this
letter agreement shall constitute the entire agreement between you and ADVENTRX concerning the
nature and duration of your employment. Although your job duties, title and compensation and
benefits may change over time, the at-will nature of your employment with us can only be changed in
a written agreement signed by you and our CEO.

9. Our proprietary rights and confidential information are among our most important assets. In
addition to signing this letter agreement as a condition to your employment, you must also sign the
Company’s current Confidential Information, Non-Solicitation and Invention Assignment Agreement
(the “Company Confidentiality Agreement”).

10. We require that in the course of your employment with us that you not use or disclose to us any
confidential information, including trade secrets, of any former employer or other person to whom you have had an obligation of confidentiality. Rather, you will be expected to use only
that information which is generally known and used by persons with training and experience
comparable to your own, which is common knowledge in the industry or otherwise legally in the
public domain, or which is otherwise provided or developed by us. During our discussions about
your proposed job duties, you assured us that you would be able to perform those duties within the
guidelines just described. Accordingly, you further agree that you will not bring on to our
premises any unpublished documents or property belonging to any former employer or other person to
whom you have an obligation of confidentiality.

11. As an employee, we require that you comply with all of our policies and procedures, including,
without limitation, our Code of Business Conduct and Ethics, a copy of which will, at

 

 

James Merritt, M.D.

September 7, 2006

Page 4 of 7

your request, be provided to you prior to your beginning work with us. You may be required to
sign certain documents acknowledging your receipt and understanding of our policies and procedures.
Violation of any or our policies or procedures would be cause for disciplinary action including
termination.

12. Your employment with us is also conditioned upon your ability to provide adequate documentation
of your legal right to work in the United States, as well as educational credentials, and
successful completion of our reference checking process. If you make any misrepresentations to us
or omit to state a material fact necessary in order to make another statement made not misleading,
we may void this letter agreement or, if you are already employed, terminate your employment.

13. Any controversy, claim or dispute between you and the company concerning this letter agreement
or documents attached hereto, your employment or the severance of your employment shall be finally
settled by arbitration held in San Diego, California by one (1) arbitrator in accordance with the
rules of employment arbitration then followed by the American Arbitration Association or any
successor to the functions thereof. The arbitrator shall apply California law (as applied to
agreements between California residents entered into and to be performed entirely within
California) in the resolution of all controversies, claims and disputes and shall have the right
and authority to determine how his or her decision or determination as to each issue or matter in
dispute may be implemented or enforced. Any decision or award of the arbitrator shall be final and
conclusive on the parties. The parties shall bear equally all costs of the arbitrator in any
action brought under this section 13 unless otherwise required by law (in which case such costs
will be borne as required by law).

14. In the event of any dispute related to or based upon this letter agreement or documents
attached hereto, the arbitrator has the right to allocate between the parties, as the arbitrator
may determine, the costs of the arbitrator (unless the allocation of the costs of the arbitration
are otherwise mandated by law) and the reasonable costs and expenses (including reasonable
attorneys’ fees and costs) of each party incurred in connection with such arbitration.

15. This letter agreement and documents attached hereto shall be governed pursuant to the laws of
the State of California as applied to agreements between California residents entered into and to
be performed entirely within California.

16. If any portion of this letter agreement shall, for any reason, be held invalid or
unenforceable, or contrary to public policy or any law, the remainder of this letter agreement
shall not be affected by such invalidity or unenforceability, but shall remain in full force and
effect, as if the invalid or unenforceable term or portion thereof had not existed within this
letter agreement.

 

 

James Merritt, M.D.

September 7, 2006

Page 5 of 7

17. If you accept the terms and conditions set forth in this letter agreement, we would like
you to begin full time work with us on September 7, 2006, and this letter agreement will be
effective as of such date. I look forward to you joining us and being an integral and important
part of our team. Please sign below to accept this offer and return the fully executed letter to
me within five business days. You should keep one copy of this letter for your own records.

Sincerely,

	 	 	 
	ADVENTRX Pharmaceuticals, Inc.

	 	ACCEPTED AND AGREED:
	 
	 	 
	/s/ Evan Levine
 

	 	 
	Evan Levine

	 	/s/ James Merritt
	 

	 	 
	Chief Executive Officer

	 	James Merritt, M.D.
	 
	 	 
	 

	 	Date: September 7, 2006

 

 

James Merritt, M.D.

September 7, 2006

Page 6 of 7

Exhibit A

STOCK OPTION AGREEMENT

 

 

James Merritt, M.D.

September 7, 2006

Page 7 of 7

Exhibit B

RELEASE

 

 

EXHIBIT A

Stock Option Agreement

     ADVENTRX Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and the undersigned
person (“Optionee”) have entered into this Stock Option Agreement (this “Agreement”) effective as
of the Grant Date set forth below. The Company has granted to Optionee the option (the “Option”) to
purchase the number of shares (the “Shares”) of common stock, par value $0.001 per share, of the
Company (“Common Stock”) set forth below at the per Share purchase price (the “Exercise Price”) set
forth below, pursuant to the terms of this Agreement. The Option was granted under the Company’s
2005 Equity Incentive Plan (the “Plan”).

	 	 	 
	Optionee Name:
	 	James Merritt
	Grant Date:
	 	MM/DD/YYYY
	Vesting Commencement Date:
	 	MM/DD/YYYY
	Shares:
	 	300,000
	Exercise Price:
	 	$X.XX

1. Terms of Plan. All capitalized terms used in this Agreement and not otherwise defined shall
have the meanings ascribed thereto in the Plan. Optionee confirms and acknowledges that Optionee
has received and reviewed copies of the Plan and the Information Statement, dated July 13, 2005,
with respect to the Plan. Optionee and the Company agree that the terms and conditions of the Plan
are incorporated in this Agreement by this reference.

2. Nature of the Option. The Option has been granted as an incentive to Optionee’s Continuous
Service, and is in all respects subject to such Continuous Service and all other terms and
conditions of this Agreement. The Option is intended to be an Incentive Option within the meaning
of the Plan.

3. Vesting and Exercise of Option. The Option shall vest and become exercisable during its term in
accordance with the following provisions:

     (a) Vesting and Right of Exercise.

(i) The Option shall vest and become exercisable with respect to one forty-eighth
of the Shares on each successive monthly anniversary of the Vesting Commencement
Date until all of the Shares have vested, subject to Optionee’s Continuous Service;
provided, however, that, in the event of an Involuntary Termination (as
defined in Section 10 below) but subject to Optionee’s timely execution of the
release (the “Release”) referred to in that certain letter agreement, dated
September 7, 2006, by and between the Company and Optionee offering employment to
Optionee (the “Offer Letter”) and Optionee’s not revoking the Release as described
in the Offer Letter, the Option shall vest and become exercisable, effective
immediately prior to the effective date of such Involuntary Termination,

 

 

with respect to that number of the Shares that would have vested and become
exercisable had Optionee remained in Continuous Service for 6 months following the
effective date of such Involuntary Termination.

(ii) In the event of Optionee’s death, disability or other termination of
Optionee’s Continuous Service, the Option shall be exercisable in the manner and to
the extent provided in Section 6.3 of the Plan; provided, however, that,
anything in Section 6.3(a)(i) to the contrary notwithstanding but subject to
Optionee’s timely execution of the Release and Optionee’s not revoking the Release
as described in the Offer Letter, in the event of an Involuntary Termination, the
Option shall remain exercisable for 180 days following the effective date of such
Involuntary Termination.

(iii) No fraction of a Share shall be purchasable or deliverable upon exercise of
the Option, but in the event any adjustment hereunder of the number of Shares shall
cause such number to include a fraction of a Share, such number of Shares shall be
rounded down to the nearest smaller whole number of Shares.

     (b) Method of Exercise. In order to exercise any portion of the Option which has vested,
Optionee shall notify the Company in writing of the election to exercise such vested portion of the
Option and the number of Shares in respect of which the Option is being exercised, by executing and
delivering the Notice of Exercise of Stock Option in the form attached hereto as Exhibit A (the
"Exercise Notice”). The certificate or certificates representing Shares as to which the Option has
been exercised shall be registered in the name of Optionee.

     (c) Restrictions on Exercise.

(i) Optionee may exercise the Option only with respect to Shares that have vested
in accordance with Section 3(a) of this Agreement.

(ii) Optionee may not exercise the Option if the issuance of the Shares upon such
exercise or the method of payment of consideration for such Shares would constitute
a violation of any applicable federal or state securities law or other law or
regulation.

(iii) The method and manner of payment of the Exercise Price will be subject to the
rules under Part 221 of Title 12 of the Code of Federal Regulations as promulgated
by the Federal Reserve Board if such rules apply to the Company at the date of
exercise.

(iv) As a condition to the exercise of the Option, the Company may require Optionee
to make any representation or warranty to the Company at the time of exercise of
the Option as in the opinion of legal counsel for

 

 

the Company may be required by any applicable law or regulation, including the
execution and delivery of an appropriate representation statement. Accordingly, the
stock certificate(s) for the Shares issued upon exercise of the Option may bear
appropriate legends restricting transfer.

(v) Optionee may only exercise the Option upon, and the obligations of the Company
under this Agreement to issue Shares to Optionee upon any exercise of the Option is
conditioned on, satisfaction of all federal, state, local or other withholding tax
obligations associated with such exercise (whether so required to secure for the
Company an otherwise available tax deduction or otherwise) (“Withholding
Obligations”). The Company reserves the right to require Optionee to remit to the
Company an amount sufficient to satisfy all Withholding Obligations prior to the
issuance of any Shares upon any exercise of the Option. Optionee authorizes the
Company to withhold in accordance with applicable law from any compensation payable
to Optionee any amounts necessary to meet any Withholding Obligations.

4. Non-Transferability of Option. The Option may not be transferred in any manner other than by
will or by the laws of descent and distribution. The terms of this Agreement shall bind the
executors, administrators, heirs and successors of Optionee.

5. Method of Payment.

     (a) Upon exercise, Optionee shall pay the aggregate Exercise Price of the Shares purchased by
any of the following methods, or a combination thereof, at the election of Optionee:

(i) by cash;

(ii) by certified or bank cashier’s check;

(iii) if shares of Common Stock are traded on an established stock market or
exchange on the date of exercise, by surrender of whole shares of Common Stock
having a Market Value equal to the portion of the Exercise Price to be paid by such
surrender, provided that if such shares of Common Stock to be surrendered were
acquired upon exercise of an Incentive Option, Optionee must have first satisfied
the holding period requirements under Section 422(a)(1) of the Code; or

(iv) if shares of Common Stock are traded on an established stock market or
exchange on the date of exercise, pursuant to and under the terms and conditions of
any formal cashless exercise program authorized by the Company entailing the sale
of the Stock subject to an Option in a brokered transaction (other than to the
Company).

 

 

     (b) If Optionee shall pay all or a portion of the aggregate Exercise Price due upon an
exercise of the Option by surrendering shares of Common Stock pursuant to Section 5(a)(iii), then
Optionee:

(i) shall accompany the Exercise Notice with a duly endorsed blank stock power with
respect to the number of shares of Common Stock to be surrendered and shall deliver
the certificate(s) representing such surrendered shares to the Company at its
principal offices within two business days after the date of the Exercise Notice;

(ii) authorizes and directs the Secretary of the Company to transfer so many of the shares of Common
Stock represented by such certificate(s) as are necessary to pay
the aggregate Exercise Price in accordance with this Agreement;

(iii) agrees that Optionee may not surrender any fractional share as payment of any
portion of the Exercise Price; and

(iv) agrees that, notwithstanding any other provision in this Agreement, Optionee
may only surrender shares of Common Stock owned by Optionee as of the date of the
Exercise Notice in the manner and within the time periods allowed under Rule 16b-3
promulgated under the Exchange Act.

6. Adjustments to Option. Subject to any required action by the stockholders of the Company, the
number of Shares covered by the Option, and the Exercise Price, shall be proportionately adjusted
in accordance with and pursuant to Section 8.1 of the Plan. Such adjustments shall be made by the
Committee, whose determination in that respect shall be final, binding and conclusive. Except as
expressly provided in this Agreement, no issue by the Company of shares of stock of any class, or
securities convertible into shares of stock of any class, shall affect, and no adjustment by reason
thereof shall be made with respect to, the number of Shares or the Exercise Price.

7. Term of Option. The Option may not be exercised more than 10 years after the Grant Date, and
may be exercised during such term only in accordance with the terms of this Agreement.

8. Not Employment Contract. Nothing in this Agreement shall confer upon Optionee any right to
continue in the employ of the Company or shall interfere with or restrict in any way the rights of
the Company, which are hereby expressly reserved, to terminate Optionee’s Continuous Service at any
time for any reason whatsoever, with or without cause, subject to the provisions of applicable law.

9. Tax Consequences Generally. Optionee acknowledges that Optionee may suffer adverse tax
consequences as a result of Optionee’s exercise of the Option. Optionee acknowledges that the
Company advises that Optionee consult with Optionee’s tax

 

 

advisers in connection with any exercise of the Option or disposition of the Shares receivable upon
exercise of the Option. Optionee agrees that Optionee is not relying on the Company for any tax
advice with respect to the acceptance or exercise of the Option, the disposition of any Shares
Optionee may acquire upon exercise of the Option or otherwise. Any adverse consequences incurred by
an Optionee with respect to the use of shares of Common Stock to pay any part of the aggregate
Exercise Price or of any tax in connection with the exercise of an Option, including, without
limitation, any adverse tax consequences arising as a result of a disqualifying disposition within
the meaning of Section 422 of the Code shall be the sole responsibility of Optionee.

10. Adjustments in Acquisitions.

In accordance with the provisions of Section 8.2(a) of the Plan, the Option will Accelerate in full
in the event of an Acquisition constituting a Change of Control if Optionee remains employed by the
Company or one of its Affiliates as of the closing date of such Acquisition, and the Option is not
assumed or replaced by the successor or acquiring entity or the entity in control of such successor
or acquiring entity in accordance with Section 8.2 (referred to for purposes of this section as the
“Acquirer”); provided, however, that, even if the Option is assumed or replaced by the
Acquirer, 50% of any unvested portion of the Option shall be deemed to have vested as of the
closing date of such Acquisition and the remaining unvested portion of the Option (after taking
into account the foregoing) shall vest ratably by month over the 12-month period beginning on the
closing of such Acquisition, subject to Optionee’s Continuous Service. Otherwise, the Option will
not Accelerate in the event of an Acquisition. In this regard, if Optionee is offered employment or
some other continuing role by or on behalf of the Acquirer, including but not limited to,
continuing employment with the Company, and in connection therewith, the Acquirer offers to assume
or replace the Option, the Option will not Accelerate if Optionee does not accept the offer. For
clarification, the Option will Accelerate in full in the event of an Acquisition constituting a
Change of Control even if Optionee does not remain employed by the Company or one of its Affiliates
as of the closing date of such Acquisition if Optionee is the subject of an Involuntary Termination
prior to such Acquisition and such Involuntary Termination is directly connected with or the result
of such Acquisition.

If, following a Change of Control in which the Option has been assumed by the successor or
acquiring entity as of the closing date of such Change of Control, in the event of Optionee’s
Involuntary Termination of employment within 24 months after the closing date of such Change of
Control the vesting of the assumed Option shall be accelerated such that the Option will so vest as
of the effective date of such Involuntary Termination with respect to all Shares that would have
become vested during such 24-month period but for the Change of Control and Involuntary Termination
(assuming Optionee’s Continuous Service). An “Involuntary Termination” is one that occurs by reason
of dismissal for any reason other than Misconduct or of voluntary resignation following: (i) a
change in position that materially reduces the level of Optionee’s responsibility, (ii) a material
reduction in Optionee’s base salary, or (iii) relocation by more than 50 miles; provided that (ii)
and (iii) will apply only if Optionee has not consented to the change or

 

 

relocation. “Misconduct” shall mean the commission of any act of fraud, embezzlement or dishonesty
by Optionee, any unauthorized use or disclosure by such person of confidential information or trade
secrets of the Company (or any Parent or Subsidiary), or any other intentional misconduct by such
person adversely affecting the business affairs of the Company (or any Parent or Subsidiary) in a
material manner. The foregoing definition shall not be deemed to be inclusive of all the acts or
omissions which the Company (or any Parent or Subsidiary) may consider as grounds for the dismissal
or discharge of Optionee.

11. Consent of Spouse/Domestic Partner. Optionee agrees that Optionee’s spouse’s or domestic
partner’s interest in the Option is subject to this Agreement and such spouse or domestic partner
is irrevocably bound by the terms and conditions of this Agreement. Optionee agrees that all
community property interests of Optionee and Optionee’s spouse or domestic partner in the Option,
if any, shall similarly be bound by this Agreement. Optionee agrees that this Agreement is binding
upon Optionee’s and Optionee’s spouse’s or domestic partner’s executors, administrators, heirs and
assigns. Optionee represents and warrants to the Company that Optionee has the authority to bind
Optionee’s spouse/domestic partner with respect to the Option. Optionee agrees to execute and
deliver such documents as may be necessary to carry out the intent of this Section 11 and the
consent of Optionee’s spouse/domestic partner.

     IN WITNESS WHEREOF, Optionee and the Company have entered into this Agreement as of the Grant
Date.

	 	 	 	 	 	 
	 	 	ADVENTRX Pharmaceuticals, Inc. 	 
	James Merritt 	 	  	 	 
	 	 	By:  	 	 
	 	 	
 	Name:  	 
	 	 	
 	Title:  	 
	 	 	 	 
	 	 	 	 

 

 

	 	 	 	 	 

Exhibit A

Notice of Exercise of Stock Option

I                      (please print legibly) hereby elect to exercise the stock options(s)
identified below (the “Option(s)”) granted to me by ADVENTRX Pharmaceuticals, Inc. (the
“Company”) under its 2005 Equity Incentive Plan (the “Plan”) with respect to the
number of shares of Common Stock of the Company set forth below (the “Shares”). I represent
that each Share is fully vested and exercisable and subject to the Option(s). I acknowledge and
agree that my exercise of the Option(s) is subject to the terms and conditions of the Plan and the
Stock Option Agreement(s) governing the Option(s).

1.                      Shares at $                     per share (Grant date):                     

2.                      Shares at $                     per share (Grant date):                     

3.                      Shares at $                     per share (Grant date):                     

4.                      Shares at $                     per share (Grant date):                     

I choose to pay for the exercise of the above option(s) as follows (please
circle applicable item numbers):

1. Cash: $                    

2. Check: $                     (please make checks payable to ADVENTRX
Pharmaceuticals, Inc.)

3. Surrender of                      Shares:

Please deliver the stock certificate(s) representing the Shares to (please print legibly):

 

 

 

 

	 	 	 
	Name:

	 	 

	 

	 	(please print legibly)

	 	 	 
	Signature:

	 	 

	 	 	 
	Date:

	 	 

	 	 	 
	Phone No:

	 	 

 

 

EXHIBIT B

RELEASE

Pursuant to that certain letter agreement, dated September 7, 2006, by and between ADVENTRX
Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and the undersigned (“Executive”
and, together with the Company, each, a “Party” and, collectively, the “Parties”) offering
employment to Executive (the “Offer Letter”) and that certain Stock Option Agreement issued in
connection with the Offer Letter (the “Option Agreement”), and in consideration of and as a
condition precedent to the payments and benefits provided under Section 5 of the Offer Letter and
other benefits provided under Sections 5(a)(i) and 5(a)(ii) of the Option Agreement, Executive and
the Company each hereby furnish the other with this Release.

Executive hereby confirms his/her obligations under the Company’s Confidential Information,
Non-Solicitation and Invention Assignment Agreement.

On Executive’s own behalf and on behalf of Executive’s heirs, estate and beneficiaries, Executive
hereby waives, releases, acquits and forever discharges the Company, and each of its parents,
subsidiaries and affiliates, and each of their respective past or present officers, directors,
agents, servants, employees, shareholders, predecessors, successors and assigns, and all persons
acting by, through, under, or in concert with them, or any of them, of and from any and all suits,
debts, liens, contracts, agreements, promises, claims, liabilities, demands, causes of action,
costs, expenses, attorneys’ fees, damages, indemnities and obligations of every kind and nature, in
law, equity, or otherwise, known and unknown, fixed or contingent, suspected and unsuspected,
disclosed and undisclosed (“Claims”), from the beginning of time to the date hereof, including
without limitation, Claims that arose as a consequence of Executive’s employment with the Company,
or arising out of the termination of such employment relationship, or arising out of any act
committed or omitted during or after the existence of such employment relationship, all up through
and including the date on which this Release is executed, including, but not limited to, Claims
which were, could have been, or could be the subject of an administrative or judicial proceeding
filed by Executive or on Executive’s behalf under federal, state or local law, whether by statute,
regulation, in contract or tort. This Release includes, but is not limited to: (1) Claims for
intentional and negligent infliction of emotional distress; (2) tort Claims for personal injury;
(3) Claims or demands related to salary, bonuses, commissions, stock, stock options, or any other
ownership interest in the Company, vacation pay, fringe benefits, expense reimbursements, severance
pay, front pay, back pay or any other form of compensation; (4) Claims for breach of contract; (5)
Claims for any form of retaliation, harassment, or discrimination; (6) Claims pursuant to any
federal, state or local law or cause of action including, but not limited to, the federal Civil
Rights Act of 1964, as amended, the federal Age Discrimination in Employment Act of 1967, as
amended (“ADEA”), the federal Employee Retirement Income Security Act of 1974, as amended, the
federal Americans with Disabilities Act of 1990, the California Fair Employment and Housing Act, as
amended, and the California Labor Code; and (7) all other Claims based on tort law, contract law,
statutory law, common law, wrongful discharge, constructive discharge, fraud, defamation, emotional
distress, pain and suffering, breach of the implied covenant of good faith and fair dealing,
compensatory or punitive damages, interest, attorneys’ fees, and reinstatement or re-employment. If
any court rules that Executive’s waiver of the right to file any administrative or judicial charges
or complaints is ineffective, Executive agrees not to seek or accept any money damages or any other
relief upon the filing of any such administrative or judicial charges or complaints.

The Company, for itself and each of its parents subsidiaries and affiliates and each of their
respective predecessors successors and assigns over which the Company has control and the right to
release Executive as set forth herein, hereby waives, releases, acquits and forever discharges

 

Executive and Executive’s heirs, estate and beneficiaries, and all persons acting by, through,
under, or in concert with them, or any of them, of and from any and all Claims, from the beginning
of time to the date hereof, including without limitation, Claims that arose as a consequence of
Executive’s employment with the Company, or arising out of the termination of such employment
relationship, or arising out of any act committed or omitted during or after the existence of such
employment relationship, all up through and including the date on which this Release is executed,
including, but not limited to, Claims which were, could have been, or could be the subject of an
administrative or judicial proceeding filed by the Company or on the Company’s behalf under
federal, state or local law, whether by statute, regulation, in contract or tort. This Release
includes, but is not limited to: (1) Claims for intentional and negligent infliction of emotional
distress; (2) tort Claims for personal injury; (3) Claims or demands related to salary, bonuses,
commissions, stock, stock options, or any other ownership interest in the Company, vacation pay,
fringe benefits, expense reimbursements, severance pay, front pay, back pay or any other form of
compensation; (4) Claims for breach of contract; (5) Claims for any form of retaliation,
harassment, or discrimination; (6) Claims pursuant to any federal, state or local law or cause of
action including, but not limited to, the federal Civil Rights Act of 1964, as amended, the ADEA,
the federal Employee Retirement Income Security Act of 1974, as amended, the federal Americans with
Disabilities Act of 1990, the California Fair Employment and Housing Act, as amended, and the
California Labor Code; and (7) all other Claims based on tort law, contract law, statutory law,
common law, wrongful discharge, constructive discharge, fraud, defamation, emotional distress, pain
and suffering, breach of the implied covenant of good faith and fair dealing, compensatory or
punitive damages, interest, attorneys’ fees, and reinstatement or re-employment. If any court rules
that the Company’s waiver of the right to file any administrative or judicial charges or complaints
is ineffective, the Company agrees not to seek or accept any money damages or any other relief upon
the filing of any such administrative or judicial charges or complaints.

The Parties acknowledge that each has read and understands Section 1542 of the California Civil
Code which reads as follows: “A general release does not extend to claims which the creditor does
not know or suspect to exist in his or her favor at the time of executing the release, which if
known by him or her must have materially affected his or her settlement with the debtor.” The
Parties hereby expressly waive and relinquish all rights and benefits under that section and any
law of any jurisdiction of similar effect with respect to the release by each Party of any unknown
Claims either Party may have against the other Party.

Notwithstanding the foregoing, nothing in this Release shall constitute a release by Executive of
any claims or damages based on any right Executive may have to enforce the Company’s executory
obligations under the Offer Letter and the Stock Option Agreement, any right Executive may have to
vested or earned compensation and benefits, or Executive’s eligibility for indemnification under
applicable law, Company governance documents, Executive’s indemnification agreement with the
Company or under any applicable insurance policy with respect to Executive’s liability as an
employee or officer of the Company.

If Executive is 40 years of age or older at the time of the termination, Executive acknowledges
that he/she is knowingly and voluntarily waiving and releasing any rights he/she may have under
ADEA. Executive also acknowledges that the consideration given under the Offer Letter and Option
Agreement for the release set forth herein is in addition to anything of value to which he/she was
already entitled. Executive further acknowledges that he/she has been advised by this writing, as
required by the ADEA, that: (A) his/her waiver and release do not apply to any rights or claims
that may arise on or after the date he/she executes this Release; (B) Executive has the right to
consult with an attorney prior to executing this Release; (C) Executive has [21]1
[45]2

 

days to consider this Release (although he/she may choose to voluntarily execute this Release
earlier); (D) Executive has 7 days following the execution of this Release to revoke the Release;
[and]1 (E) this Release shall not be effective until the date upon which the revocation
period has expired, which shall be the 8th day after this Release is executed by Executive, without
Executive’s having given notice of revocation[; and (F) Executed has received with this Release a
detailed list of job titles and ages of all employees who were terminated in the group termination
of which Executive’s termination is a part and the ages of all employees of the Company in the same
job classification or organizational unit who were not so terminated]2.

Each Party further acknowledges that such Party has carefully read this Release, and knows and
understands its contents and its binding legal effect. Each Party acknowledges that by signing this
Release, such Party does so of such Party’s own free will, and that it is such Party’s intention
that such Party be legally bound by its terms.

	 	 	 	 	 
	 
	 	 	 	 
	 	 	 	 	 
	James A. Merritt	 	 
	 
	 	 	 	 
	Date:

	 	 	 	 
	 
	 	 	 	 
	ADVENTRX PHARMACEUTICALS, INC.	 	 
	 
	 	 	 	 
	By:

	 	 	 	 
	 
	 	 	 	 
	 Name:

	 	 	 	 
	 
	 	 	 	 
	 Title:

	 	 	 	 
	 
	 	 	 	 
	Date:

	 	 	 	 

 

			
	1	 	Include only if an individual termination
	 
	2	 	Include only if a group termination.Exhibit 10.2

 

EXHIBIT 10.2

SEVERANCE AGREEMENT

AND RELEASE OF ALL CLAIMS

     This Severance Agreement and Release of All Claims (this “Agreement”), effective as of
September 7, 2006 (the “Effective Date”), is made and entered into by and between Carrie Carlander
(“Employee”) and ADVENTRX Pharmaceuticals, Inc., a Delaware corporation (the “Company”).

     WHEREAS, the Company and Employee have mutually determined that it is in their respective best
interests to terminate Employee’s employment with the Company and to transition Employee’s
responsibilities and duties to the Company in a considered and professional manner;

     WHEREAS, the Company and Employee desire to settle fully and finally any existing or potential
differences between them including, without limitation, all tort, contractual, discrimination,
statutory and common law claims;

     NOW, THEREFORE, BE IT RESOLVED, in consideration of the mutual covenants and promises herein
contained and other good and valuable consideration, receipt and sufficiency of which are hereby
acknowledged, and to avoid unnecessary litigation, it is hereby agreed by and between the parties
as follows:

     1. Termination Date. Employee’s employment with the Company will terminate effective
as of the Effective Date.

     2. Consulting Relationship. Effective concurrent with the effectiveness of this
Agreement, Employee and the Company will enter into that certain Consulting Agreement in
substantially the form of Exhibit A, attached hereto (the “Consulting Agreement”)
(including the Company’s current Confidential Information and Inventions Assignment Agreement
referenced in the Consulting Agreement).

     3. Press Release and Form 8-K. On the Effective Date (or, at the Company’s election,
by the fourth business day following the Effective Date), the Company will issue a press release
mutually agreed upon by the Company and Employee and file with or furnish to the Securities and
Exchange Commission a Current Report on Form 8-K mutually agreed upon by the Company and Employee.

     4. Consideration.

          (a) On the Effective Date, the Company will make available to Employee Employee’s final
paycheck for wages and all earned and unused vacation. This payment is not dependent upon Employee
signing this Agreement. In addition, in consideration of Employee’s executing this Agreement and
performing Employee’s obligations hereunder (including, without limitation, granting the release
set forth in Section 7), and immediately following Employee’s resignation from her positions with the Company (including as an “officer,” as defined in
Section 16 of the Securities Exchange Act of 1934) the Company will issue to Employee 93,611 fully-

1

 

vested shares of the Company’s common stock, $0.001 par value per share, less applicable
withholding taxes (the “Severance Benefit”).

          (b) Effective as of the Effective Date, any and all options or other rights to purchase shares
of the Company’s securities (including under the Company’s 2005 Equity Incentive Plan and pursuant
to the Initial Grant and that certain Stock Option Agreement, with a “Grant Date” of January 31,
2006) hereby terminate and are of no further force or effect, and Employee will execute such
documents as the Company reasonably requests to reflect the foregoing. In addition, Employee will
promptly (but in any event within 10 calendar days of the Effective Date) return to the Company the
original copy of all documents evidencing any option or other right to purchase shares of the
Company’s securities, which documents will be marked “CANCELLED” or with other similar marking.
For clarification, in no way will Employee’s consulting relationship with the Company (as described
in Section 2) be construed in any way as Employee providing “Continuous Service” (as defined in the
Company’s 2005 Equity Incentive Plan) to the Company.

     5. Acknowledgement. Employee hereby acknowledges and agrees that, upon Employee’s
receipt of the final paycheck described in Section 4, the Company has paid all salary, wages,
bonuses, commissions, vacation pay, floating holiday pay and other benefits or compensation due
Employee from the Company.

     6. Failure to Perform. Employee acknowledges and agrees that, but for this Agreement,
Employee is not entitled to the Severance Benefit and that, in the event Employee fails to fully
perform under this Agreement, the Company has no obligation to provide Employee the Severance
Benefit.

     7. Releases and Related Provisions.

          (a) Employee’s General Release. Employee, for Employee, Employee’s heirs, executors,
administrators, representatives, assigns and successors, fully and forever releases and discharges
the Company and each of its current, former and future parents, subsidiaries, related entities,
employee benefit plans and their respective fiduciaries, predecessors, successors, officers,
directors, stockholders, agents, employees, consultants, attorneys and assigns (collectively, the
“Discharged Parties”) with respect to any and all claims, liabilities and causes of action, of
every nature, kind and description, in law, equity or otherwise, which have arisen, occurred or
existed at any time prior to the Effective Date, including (without limitation) any and all claims,
liabilities and causes of action arising out of or relating in any way to Employee’s employment
with the Company, including (but not limited to) the offer and termination of Employee’s employment
as well as the terms and conditions of Employee’s employment. The foregoing release will not apply
to rights arising under California Labor Code Section 2802.

          (b) The Company’s General Release. The Company, for itself and each of its current,
former and future parents, subsidiaries, related entities, employee benefit plans, predecessors,
successors and assigns over which it has control and the right to release Employee as set forth
herein, fully and forever releases and discharges Employee and Employee’s heirs,

2

 

executors, administrators, representatives, attorneys and assigns (collectively the “Releasees”)
with respect to any and all claims, liabilities and causes of action, of every nature, kind and
description, in law, equity or otherwise, which have arisen, occurred or existed at any time prior
to the Effective Date, including (without limitation) any and all claims, liabilities and causes of
action arising out of or relating in any way to Employee’s employment with the Company.

          (c) Knowing Waiver of Employment-Related Claims. Employee hereby waives and releases
any and all rights Employee may have had, how have, or in the future may have, to pursue against
any of the Discharged Parties any and all remedies available to Employee under any
employment-related causes of action, including (without limitation) claims of wrongful discharge,
breach of contract, breach of the covenant of good faith and fair dealing, fraud, violation of
public policy, defamation, discrimination, personal injury, physical injury, emotional distress,
claims under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act,
the Older Workers Benefit Protection Act, the Americans with Disabilities Act, the Federal
Rehabilitation Act, the Family and Medical Leave Act, the California Fair Employment and Housing
Act, the California Family Rights Act, the Equal Pay Act of 1963, the provisions of the California
Labor Code and any other federal, state or local law or regulation relating to employment,
conditions of employment (including wage and hour laws), perquisites of employment (including, but
not limited to, stock, stock options and incentive compensation) and/or employment discrimination.
Claims not covered by this Section 7 are claims for unemployment insurance benefits and workers’
compensation. Employee represents that Employee has not suffered any work-related injury or
illness.

          (d) Waiver of Civil Code Section 1542. Employee and the Company (the “Parties”)
acknowledge that the Parties may discover facts different from or in addition to those which the
Parties now know or believe to be true and that this Agreement (including, specifically, the
provisions of this Section 7) will be and remain in full force and effect in all respects even if
the Parties discover new or additional facts after the Effective Date. The Parties expressly waive
any and all rights and benefits conferred upon them by Section 1542 of the Civil Code of the State
of California, which states:

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES
NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE
RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS
SETTLEMENT WITH THE DEBTOR.”

     The Parties expressly agree and understand that the general release given in this Section 7
applies to all unknown, unsuspected and unanticipated claims, liabilities and causes of action
which the Parties may have against any of the Discharged Parties and/or Releasees.

          (d) No Admission. This Agreement and performance of the acts required by it does not
constitute an admission of liability, culpability, negligence or wrongdoing on the part of anyone
and will not be construed for any purposes as an admission of liability, culpability,

3

 

negligence or wrongdoing on the part of the Company, or Employee, or any of the other Discharged
Parties or Releasees.

          (e) Suit and Administrative Proceedings. The Parties represent that they have not
instituted, filed or participated in any legal or administrative proceedings against each other, or
any of the Discharged Parties or Releasees. The Parties promise and agree that they will never sue
one another, or any of the Discharged Parties or Releasees, or otherwise institute or participate
in any legal or administrative proceedings against one another or any of the Discharged Parties or
Releasees with respect to any claim covered by this Section 7. The Parties represent that each of
them is the sole owner of all claims relating to Employee’s employment with the Company and that
neither of them has assigned or transferred any claims covered by this Section 7 or otherwise
relating to Employee’s employment to any other person or entity.

          (f) Period to Consider Terms. Employee acknowledges that Employee is entitled to time
during which to consider the terms of this Agreement. Employee understands and acknowledges that
the Company advises Employee to obtain advice concerning this Agreement, including the provisions
of this Section 7. Employee acknowledges that Employee has obtained sufficient information to
intelligently exercise Employee’s own judgment regarding the terms of this Agreement before
executing it. In addition, Employee acknowledges that Employee has had ample opportunity to obtain
the advice and counsel from an attorney of Employee’s choice and that Employee executes this
Agreement having had sufficient time during which to consider its terms.

     8. Proprietary Information; Continuing Obligations. Employee represents that Employee
has returned to the Company all Company documents, information and property, including (without
limitation) files, records, computer access codes and instruction manuals, as well as any of the
Company’s assets or equipment that Employee has in Employee’s possession or are under Employee’s
control. Employee further agrees not to keep any copies of any Company documents or information.
Employee acknowledges and agrees that Employee will continue to be bound by (a) the Confidential
Information, Non-Solicitation and Invention Assignment Agreement for Employees entered into between
the Company and Employee (the “Company Agreement”), (b) the Code of Business Conduct and Ethics for
Employees, Executive Officers and Directors executed by Employee (the “Code of Ethics”) and (c) the
Policies and Procedure Manual executed by Employee (the “Manual), copies of all of which have been
provided to Employee.

     9. Confidentiality. Employee agrees to keep this Agreement confidential and not to
reveal its contents to anyone except Employee’s lawyer, spouse and/or financial consultant.

     10. Non-disparagement. The Parties agree that they will not at any time disparage one
another, including the Discharged Parties and the Releasees in any manner likely to be harmful to
them or their respective businesses or reputations (whether personal or professional);
provided, however, that the Parties may respond accurately and fully to any questions,
inquiry or request for information when required to do so by legal process.

4

 

     10. Successors and Assigns. This Agreement will be binding upon Employee and
Employee’s heirs, executors, administrators, representatives, assigns and successors.

     11. Severability. Should any provision of this Agreement be declared or be determined
by any court of competent jurisdiction to be wholly or partially illegal, invalid or unenforceable,
the legality, validity and enforceability of the remaining parts, terms, or provisions will not be
affected thereby, and the illegal, invalid or unenforceable, part, term, or provision will be
amended or removed to the minimum extent necessary so that the remainder of this Agreement is
legal, valid and enforceable.

     12. Governing Law. This Agreement will be interpreted and construed in accordance
with and be governed by the laws of the State of California as applied to agreement among
California residents entered into and to be performed entirely within California.

     13. Entire Agreement. Employee represents and acknowledges that, in executing this
Agreement, Employee is not relying and has not relied upon any representation or statement made by
any of the Discharged Parties or by any their respective agents, attorneys, or representatives with
regard to the subject matter, basis, or effect of this Agreement, or otherwise, other than those
specifically stated in this Agreement. This Agreement contains the entire agreement between the
Company and Employee with respect to any matters referred to herein and supersedes any previous
oral or written agreements, except the Consulting Agreement (including the Confidential Information
and Inventions Agreement), the Company Agreement, the Code of Ethics and the Manual, each of which
will remain in full force and effect until it terminates or expires pursuant to its terms or as set
forth herein.

     IN WITNESS WHEREOF, the Parties hereto have signed this Severance Agreement and Release of All
Claims as of the Effective Date.

	 	 	 	 	 
	COMPANY: 	ADVENTRX PHARMACEUTICALS, INC.

 	 
	 	By:  	/s/ Evan M. Levine
 	 
	 	 	Evan M. Levine, Chief Executive Officer 	 
	 	 	 	 
	 
	 	 	 
	EMPLOYEE: 	By:  	/s/ Carrie Carlander
 	 
	 	 	Carrie Carlander 	 
	 	 	 	 

5

 

	 	 	 	 	 

Exhibit A

CONSULTING AGREEMENT

[See Exhibit 10.3]

6

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