Document:

exv10w17

 

Exhibit 10.17

	 	 	 
	Mark J. Cantwell, Ph.D.

	 	October 30, 2003
	 
	 	 
	 
	 	 

Dear Mark,

Thank you for your comments today and your interest in working for us. This letter is to confirm
our offer to you to join ADVENTRX Pharmaceuticals as a full-time employee as of Monday, November
3, 2003.

You will begin employment as Director, Preclinical Programs, reporting directly to me, at a
starting salary of $90,000.00 annually, paid every two weeks on the 1st and
15th of each month. We have agreed to this level of compensation with the understanding
that you have opted to not participate in the Employee Benefits Program for Healthcare coverage.
You will receive a performance review on an annual basis, which will be based upon an assessment
of your ability to achieve agreed upon goals and the extent of your contribution to the overall
organization. Employment is on an at-will basis.

You will be responsible for conducting R & D activities both internally, once new laboratories are
in place, and externally to implement our testing and development programs to further our
preclinical and clinical projects. You will take primary responsibility for the implementation of
our new laboratory facilities and be in charge of managing laboratory budgets and expenditures
under my direction. A key responsibility will be to develop a plan and implementation schedule for
submitting and obtaining government and commercial grants to support our preclinical and clinical
programs. We expect you to work on grant proposals that are directed to the Company and grant
proposals that can be submitted in conjunction with our key outside researchers and clinicians.
You will assist me in efforts that will result in speaking engagements at research and clinical
meetings, assist me in the development of research and clinical protocols and lend assistance to
management on marketing and technical materials for the Company. You will also be expected to
assist me in technical searches, R&D planning, technology assessments and marketing research.

You will be awarded 50,000 stock options, under the currently approved Employee Stock Option
Program of ADVENTRX, at a price of $1.25 per share. The first 25,000 options will vest at the
first anniversary of your employment and the second 25,000 options will vest on your second
anniversary. There will also be the possibility to receive additional stock options in the future
based upon your performance and the overall success of the

9948 Hibert St., Suite 100 • San Diego, CA 92131

Telephone (858) 271-9671 • Fax (858-271-9678
• www.adventrx.com  • OTCBB:AVRX

 

 

Company. Your Non Statutory Stock Option Agreement is attached. It is subject to
acceptance of your employment offer and approval by the Board of Directors.

You are entitled to 2 weeks paid vacation per year during your first three years of
employment and 3 weeks paid vacation thereafter. You will also have time off on holidays
with full pay. In addition, based upon hours worked and expected fluctuations in schedules,
you will receive comp time based upon my recommendation and corporate approval.

In your new capacity you will play an instrumental role in the future success of the
Company, as we move from our preclinical to clinical development status. I would suggest
that we work together to define your job description in greater detail so that we are both
in agreement with objectives that will meet your personal goals and the overall goals of
ADVENTRX.

Please sign both copies of this letter with your acceptance and return one in the envelope
provided.

Sincerely,

	 	 	 	 	 
	/s/
Joan M. Robbins

	 	 	 	 
	Joan M. Robbins, Ph. D

	 	/s/ Mark J. Cantwell            	10-31-03	 
	 

	 	 	 
	Chief Technical Officer

	 	Acceptance — Mark J. Cantwell, Ph.D. — 	 date signedexv10w19

 

Exhibit 10.19

ADVENTRX Pharmaceuticals, Inc. 

Restricted Share Award Agreement

     This Restricted Share Award Agreement (this “Agreement”), dated as of ___
___, 200_, is entered into between ADVENTRX Pharmaceuticals, Inc., a Delaware corporation (the
“Company”), and ___, an individual (“Grantee”).

Background

     The Company has established the 2005 Equity Incentive Plan (“Plan”), to provide
incentive awards, among other things.

     Grantee has performed various services for the Company.

     The Compensation Committee of the Board of Directors of the Company has determined that
Grantee be granted shares of Common Stock of the Company (“Common Stock”) under the Plan
subject to the restrictions stated below and as hereinafter set forth.

Agreement

     The parties to this Agreement, intending to be legally bound, agree as follows:

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

     2. Grant of Shares. Subject to the terms and conditions of this Agreement and of the Plan,
including without limitation the vesting provisions set forth in Section 3, in consideration for
services previously rendered by Grantee, the Company hereby grants to Grantee
________ (___) shares of Common Stock (the “Shares”).

     3. Lapse of Risk of Forfeiture of Shares. All of the Shares are subject to a Risk of
Forfeiture should Grantee’s Continuous Service be terminated. [At the end of each calendar month
after ___, 200_], subject to Grantee’s Continuous Service, the Risk of Forfeiture of the
Shares shall lapse with respect to ___ of the Shares and such portion of the Shares shall vest
and become free of any restriction pursuant to this Agreement. Upon the termination of Grantee’s
Continuous Service, all of the Shares which continue to be subject to a Risk of Forfeiture
(“Forfeited Shares”) immediately prior to such termination shall be forfeited by Grantee,
ownership of all such Forfeited Shares shall transfer back to the Company and Grantee shall have no
further rights with respect to any of such Forfeited Shares.

     4. Restrictions Period. The Shares granted hereunder which are at any time subject to a Risk
of Forfeiture pursuant to Section 3, may not be sold, pledged, gifted or otherwise transferred
until such Shares are no longer subject to a Risk of Forfeiture pursuant to this

 

 

Agreement. The period of time prior to the date Shares are no longer subject to a Risk of
Forfeiture pursuant to this Agreement is referred to herein as the “Restriction Period.”

     5. Legend. All certificates representing any Shares subject to a Risk of Forfeiture pursuant
to this Agreement (such Shares, the “Unvested Shares”) shall have endorsed thereon during
the Restriction Period the following legend:

	 	 	THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO AN AGREEMENT BETWEEN THE
CORPORATION AND THE REGISTERED HOLDER, A COPY OF WHICH IS ON FILE AT THE PRINCIPAL
OFFICE OF THIS CORPORATION.

     6. Retention of Certificate. Any certificate or certificates evidencing any Unvested Shares
shall be deposited with the Secretary of the Company. The Unvested Shares may also be held in a
restricted book entry account in the name of Grantee. Any such certificates or such book entry
shares are to be held by the Company until such time as the Risk of Forfeiture of such Shares shall
lapse pursuant to Section 3, after which the Company shall release certificate(s) representing such
Shares to Grantee.

     7. Grantee Stockholder Rights. During the Restriction Period, Grantee shall have all the
rights of a stockholder with respect to Unvested Shares except for the right to transfer the
Unvested Shares (as set forth in Section 4). Accordingly, Grantee shall have the right to vote the
Unvested Shares and receive any dividends payable with respect to Unvested Shares.

     8. Taxes. Grantee shall be liable for any and all taxes, including withholding taxes, arising
out of the grant, issuance or lapse of the Risk of Forfeiture of Shares. Grantee shall be
responsible for filing with the Internal Revenue Service an appropriate written notice of election
pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended, if Grantee wishes to
make such an election. Grantee shall notify the Company in writing if Grantee files such an
election (a form of which is attached hereto) within 30 days of the date of this Agreement. The
Company intends, in the event it does not receive from Grantee evidence of such filing, to claim a
tax deduction for any amount which would otherwise be taxable to Grantee in the absence of such an
election. GRANTEE ACKNOWLEDGES THAT IT IS GRANTEE’S SOLE RESPONSIBILITY AND NOT THE COMPANY’S TO
FILE TIMELY THE ELECTION UNDER SECTION 83(b), EVEN IF GRANTEE REQUESTS THE COMPANY OR ITS
REPRESENTATIVE TO MAKE THIS FILING ON GRANTEE’S BEHALF.

     9. Fractional Shares. The Company shall not be required to deliver any fractional Shares the
Risk of Forfeiture of which may lapse pursuant to this Agreement. In lieu of any delivery of any
such fractional Share, the Company shall, promptly after Grantee’s written request received after
such time as such fractional Share would otherwise be deliverable, pay to Grantee an amount in cash
(rounded to the nearest whole cent) equal to product of (x) the closing price of a share of Common
Stock on the trading day immediately prior to such date multiplied by (y) the fraction of a
Share to which Grantee would otherwise be entitled.

 

 

     10. Miscellaneous.

          10.1. Transfers in Violation of Restrictions. The Company shall not be required (i) to
transfer on its books any Shares which shall have been sold or transferred in violation of any of
the provisions set forth in this Agreement, or (ii) to treat as owner of such shares or to accord
the right to vote as such owner or to pay dividends to any transferee to whom such shares shall
have been so transferred.

          10.2. Further Assurances. The parties agree to execute such further instruments and to take
such action as may reasonably be necessary to carry out the intent of this Agreement.

          10.3. Notices. Any notice required or permitted hereunder shall be given in writing and shall
be deemed effectively given upon delivery to Grantee at such Grantee’s address then on file with
the Company.

          10.4. No Employment or Guarantee of Continued Relationship. Nothing contained in this
Agreement or the Plan will be construed as creating an employment relationship between the Company
and Grantee. Nothing contained in this Agreement or the Plan will be deemed to grant either party
any right, power or authority or create any obligation or duty, express or implied, to continue the
relationship between the parties.

          10.5. Entire Agreement. This Agreement, including the Plan, constitute the entire agreement
of the parties with respect to the subject matter hereof.

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

	 	 	 	 	 
	ADVENTRX Pharmaceuticals, Inc.

	 	Grantee	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

(sign above this line)
	 	 
	 
	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Its:

	 	Name:	 	 
	 

	 	 

	 	 
	 

	 	(please print)	 	 

 

 

SECTION 83(b) ELECTION

     When you receive stock from the company in connection with your performance of services the
full enjoyment of which is conditioned upon the future performance of substantial services by you,
your income tax consequences are determined under Section 83 of the Internal Revenue Code.

     The general rule of Section 83 is that you have a taxable event at the time the stock vests or
the risk of forfeiture lapses. At that time, you have ordinary income equal to the excess (the
“delta”) of the fair market value of the stock at the time of vesting over the price paid
by the person for the stock, if any. If the stock has appreciated between the time of acquisition
and the time of vesting, the appreciation would be ordinary income to you (as would any delta that
existed when the stock was acquired). The tax holding period of the stock commences when the stock
vests and any subsequent appreciation would be capital gain. If the stock is held for more than
one year from the vesting date any capital gain would be long-term capital gain.

     You may view this tax treatment as undesirable for two reasons. First, the appreciation of
the shares between the grant date and the vesting date would be ordinary income to you. Ordinary
income is currently taxed at federal rates up to 35%, while the maximum federal rate on long-term
capital gain is currently 15%. Second, the taxable event that occurs on the vesting date may not
coincide with a liquidity event, such as the sale of the corporation or shares of the company. In
the absence of a liquidity event, you may have a taxable event but no cash with which to pay the
taxes.

     For unvested stock, Section 83(b) of the Internal Revenue Code offers a solution to the
above-described tax consequences. A person who receives unvested stock may elect to be taxed at
the time the stock is granted. If you timely make the Section 83(b) election, you would have
ordinary income equal to the delta at the time of grant (rather than at the time the stock vests).
The holding period would commence at the grant date and any subsequent appreciation would be
capital gain. If the one-year tax holding period is satisfied, all of the gain would be long-term
capital gain. Thus, the Section 83(b) election can result in all of your gain being capital gain,
however, tax would be due with respect to the delta at the time you make the election.

     In order to timely make an election under Section 83(b), you must file the Section 83(b)
election with the Internal Revenue Service Center where you file your income tax returns. You must
file the election not later than 30 days after the stock is granted. There is no relief for
failing to timely file the election. If you make this election, you must provide the election to
us and you must include a copy of the election with your tax return for the taxable year in which
the stock is acquired.

     NOTE: The foregoing is not a complete or thorough discussion of income and other tax
consequences of the receipt of stock and the company is not hereby rendering any such advice. You
are strongly urged to consult their own tax advisors. Stock acquired from the exercise of stock
options may subject you to additional and different income and tax consequences, none of which are
discussed above.

 

 

ELECTION UNDER SECTION 83(b)

OF THE INTERNAL REVENUE CODE OF 1986

The undersigned taxpayer hereby elects, pursuant to Sections 55 and 83(b) of the Internal Revenue
Code of 1986, as amended (the “Code”), to include in taxpayer’s gross income or alternative minimum
taxable income (to the extent applicable under Section 83), as applicable, for the current taxable
year, the amount of any income that may be taxable to taxpayer in connection with taxpayer’s
receipt of the property described below:

	1.	 	The name, address, taxpayer identification number and taxable year of the undersigned
are as follows:

	 	 	 	 	 
	 

	 	NAME OF TAXPAYER:	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	NAME OF SPOUSE:	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	ADDRESS:	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	TAXPAYER IDENTIFICATION NO.:	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	SPOUSE IDENTIFICATION NO.:	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	TAXABLE YEAR:	 	 
	 

	 	 

	 	 

2. The property with respect to which the election is made is described as follows:

	 	 	___ shares of Common Stock of ADVENTRX
Pharmaceuticals, Inc. (the “Company”)
received pursuant to a Restricted Share Award Agreement, dated ___, between
the Company and the taxpayer.

3. The
date on which the property was transferred is:
_____ ____, 2006

4. The property is subject to the following restrictions:

	 	 	The shares vest over time, subject to the taxpayer’s continuous relationship as a
consultant or employee with the Company. Upon the termination of the taxpayer’s
relationship with the Company, all of the unvested shares outstanding immediately prior
to such termination shall be forfeited by the taxpayer, ownership of all such unvested
shares shall transfer back to the Company and the taxpayer would have no further rights
with respect to any of such unvested shares.

	5.	 	The fair market value at the time of transfer, determined without regard to any
restriction other than a restriction which by its terms will never lapse, of such
property is: $___ per share for an aggregate fair market value of
$___.
	 
	6.	 	The amount (if any) paid for such property: $0.

The undersigned has submitted a copy of this statement to the person for whom the services were
performed in connection with the undersigned’s receipt of the above-described property. The
transferee of such property is the person performing the services in connection with the transfer
of said property.

The undersigned understands that the foregoing election may not be revoked except with the
consent of the Commissioner.

	 	 	 
	Dated:
	 	 
	 

	 	 
	 
	 	 
	 

	 	Print Name:
	 

	 	 

	 
	 	 
	The undersigned spouse of taxpayer joins in this election.
	 	 
	 
	 	 
	Dated:
	 	 
	 

	 	 
	 

	 	Spouse of Taxpayer
	 
	 	 
	 

	 	Print Name:

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