Document:

Exhibit
      10.24

     

    EXECUTIVE
      EMPLOYMENT AGREEMENT

     

    This
      Executive Employment Agreement (“Agreement”), dated December 6, 2005, is between
      OXIS International, Inc., a Delaware corporation (the “Company”), Bio Check,
      Inc., a California corporation (“Bio Check”) and John Chen, an individual
      residing in California (“Executive”).

     

    1.  POSITION
      AND RESPONSIBILITIES

     

    a.  Position.
      Executive shall be employed as President of Company’s majority-owned subsidiary,
      Bio Check. Executive shall perform such duties and responsibilities as are
      normally related to the position of President and any additional duties now
      or
      hereafter reasonably assigned to Executive. At all times during which the
      Company owns less than all of the issued and outstanding capital stock of Bio
      Check, Executive shall report to the Board of Directors of Bio Check. On and
      after the time the Company owns all of the issued and outstanding capital stock
      of Bio Check (the “Complete Ownership Date”), Executive shall report to the
      Chief Executive Officer of the Company. Executive shall abide by the rules,
      regulations, and practices as adopted or modified from time to time by the
      Board
      of Directors of Bio Check. Executive shall also be appointed as a member of
      the
      Board of Directors of Bio Check and, provided that Executive is serving as
      Bio
      Check’s President, the Board of Directors of Bio Check shall nominate and
      recommend a vote for Executive in connection with any election of the Board
      of
      Directors.

     

    b.  Other
      Activities.
      Executive covenants and agrees to devote not less than ninety percent (90%)
      of
      his business time and efforts to the primary business of Bio Check. The parties
      acknowledge that Executive will, consistent with the terms of this Agreement,
      be
      providing services to Evernew Biotech, Inc. that involves less than ten
      percent (10%) of his business time and efforts. Except as otherwise
      contemplated by this Agreement, Executive will not, during the term of this
      Agreement, (i) accept any other employment, or (ii) engage, directly
      or indirectly, in any other business activity (whether or not pursued for
      pecuniary advantage) that might interfere with Executive’s duties and
      responsibilities hereunder or create a conflict of interest with the Company,
      Bio Check or their affiliates. Subject to the time and efforts limitation of
      this Section 1(b), providing business development support to Evernew Biotech,
      Inc. to build and maintain relationships with its customers and investors shall
      not be deemed to be a violation of this Section 1(b), so long as (i) within
      six months from the date hereof, the Executive is no longer affiliated as an
      executive officer or director of Evernew Biotech, Inc., and (ii) Executive
      (together with his family members) no longer holds any shares of Evernew
      Biotech, Inc., within six months from the date that a principal product or
      service of Evernew Biotech, Inc. competes with a principal product or service
      of
      the Company, as reasonably determined by the Company.

     

    c.  No
      Conflict. Executive
      represents and warrants that Executive’s execution of this Agreement,
      Executive’s employment hereunder, and the performance of Executive’s proposed
      duties under this Agreement shall not violate any obligations Executive may
      have
      to any other employer, person or entity, including any obligations with respect
      to proprietary or confidential information of any other person or entity.

     

    2.  COMPENSATION
      AND BENEFITS

     

    a.  Base
      Salary. In
      consideration of the services to be rendered under this Agreement, Bio Check
      shall pay Executive a salary at the rate of Two Hundred Forty Thousand Dollars
      ($240,000) per year (“Base Salary”). The Base Salary shall be paid in accordance
      with Bio Check’s regularly established payroll practice. Executive’s Base Salary
      will be reviewed from time to time by the Board of Directors of Bio Check in
      accordance with the established procedures for adjusting salaries and may be
      adjusted in the sole discretion of the Board of Directors; provided however,
      Executive’s salary shall not be reduced without the consent of
      Executive.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    b.  Stock
      Options. The
      Board
      of Directors of the Company has approved the grant to Executive of an option
      to
      purchase 500,000 shares of the common stock of the Company (the “Initial
      Options”) at an exercise price equal to the fair market value of the Company’s
      common stock as of the date of grant pursuant to the form of Notice of Stock
      Option Award and Stock Option Agreement appended hereto as Exhibit
      A.
      If the
      Company consummates the purchase of all of the outstanding shares of Bio Check
      pursuant to that Stock Purchase Agreement between the Company, Bio Check and
      the
      stockholders of Bio Check dated September 19, 2005, as amended on November
      18, 2005 and December 6, 2005 (“Stock Purchase Agreement”), Executive will be
      eligible for an additional grant of options equal to 250,000 shares of the
      common stock of the Company (as adjusted for stock splits, dividends,
      combinations or other recapitalizations) at the conclusion of each of the twelve
      (12) month and twenty-four (24) month periods following the date hereof
      (collectively, “Additional Options”) (the Initial Options and the Additional
      Options, collectively, the “Options”), so long as at the conclusion of the
      applicable twelve (12) month and twenty-four (24) month period, Bio Check’s net
      sales for the then most recently completed fiscal year exceed the net sales
      of
      the fiscal year which immediately precedes such most recently completed fiscal
      year (“Net Sales Goals”). If Bio Check fails to meet or exceed the Net Sales
      Goal at the conclusion of the initial twelve (12) month period following the
      date hereof, Executive shall nevertheless be eligible to receive the Additional
      Options allocated for the initial twelve (12) month period following the date
      hereof, if at the end of the twenty-four (24) month period following the date
      hereof, the Company exceeds its overall Net Sales Goal for the overall
      twenty-four (24) month period. Executive’s eligibility to receive each of the
      Options is conditioned upon Executive’s signing of the Company’s form of Stock
      Option Agreement as attached hereto as Exhibit
      A
      and is
      subject to its terms and the terms of the Company’s 2003 Stock Incentive Plan
      under which such Options are granted and other applicable law. All Additional
      Options to be granted hereunder shall have an exercise price equal to the fair
      market value of the Company’s common stock on the date of grant. All Options and
      accompanying grants of restricted stock, if any, shall be subject to vesting
      at
      a rate of 25% per annum subject to continued employment, and all options shall
      be exercisable for ten (10) years from the date of grant. Executive shall have
      a
      period of twelve (12) months following any termination of employment by the
      Company or Bio Check to exercise vested options.

     

    c.  Performance
      Bonus.
      Each
      fiscal year, Executive shall also be eligible upon achieving annual performance
      goals (which prior to the Complete Ownership Date shall be established by Bio
      Check’s Board of Directors and on and after the Complete Ownership Date shall be
      established by the Company’s Board of Directors), to earn a target bonus (which
      prior to the Complete Ownership Date shall be set in advance by Bio Check’s
      Board of Directors in its sole discretion and on and after the Complete
      Ownership Date shall be set in advance by the Company’s Board of Directors in
      its sole discretion). If Executive’s employment with Bio Check or the Company is
      terminated, for any reason, prior to the conclusion of a fiscal year, he shall
      not be eligible to earn a performance bonus for such year. 

     

    d.  Benefits.
      Executive shall be eligible to participate in the benefits made generally
      available by Bio Check to senior executives, in accordance with the benefit
      plans established by Bio Check, and as may be amended from time to time in
      the
      sole discretion of the Bio Check Board of Directors.

     

    
      
        
        

      

      
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    e.  Expenses.
      Bio
      Check shall reimburse Executive for reasonable business expenses incurred in
      the
      performance of Executive’s duties hereunder in accordance with the Bio Check’s
      expense reimbursement guidelines.

     

    f.  Indemnification.
      Bio
      Check agrees to defend and indemnify Executive against any liability that
      Executive incurs within the scope of his employment with Bio Check to the
      fullest extent permitted by Bio Check’s articles and by-laws and applicable
      law.

     

    3.  AT-WILL
      EMPLOYMENT; TERMINATION BY BIO CHECK

     

    a.  At-Will
      Termination by Company.
      Subject
      to the provisions of Section 3(c), the employment of Executive shall be
“at-will” at all times. Subject to the provisions of Section 3(c), Bio Check may
      terminate Executive’s employment with Bio Check at any time, without any advance
      notice, for any reason or no reason at all, notwithstanding anything to the
      contrary contained in or arising from any statements, policies or practices
      of
      Bio Check relating to the employment, discipline or termination of its
      employees. Upon and after such termination, all obligations of the Company
      and
      Bio Check under this Agreement shall cease, unless Executive’s employment is
      terminated without Cause or Executive terminates his employment for Good Reason,
      in which case Bio Check shall provide Executive with the severance benefits
      described in Section 3.b below.

     

    b.  Severance.
      Except
      in situations where the employment of Executive is terminated for Cause, By
      Death or By Disability (as defined below), in the event that Bio Check
      terminates the employment of Executive at any time, or if Executive terminates
      his employment at any time for Good Reason, Executive will be eligible to
      receive an amount equal to twelve (12) months of the then-current Base Salary
      of
      the Executive payable in the form of salary continuation (“Severance”).
      Executive’s eligibility for Severance is conditioned on Executive having first
      signed a release agreement in a form attached hereto as Exhibit
      B.
      Executive shall not be entitled to any Severance payments if Executive’s
      employment is terminated for Cause, By Death or By Disability, or if Executive’s
      employment is terminated by Executive for any reason, except for Good
      Reason.

     

    c.  Limitation.
      Notwithstanding the provisions of Section 3(a), Bio Check may not terminate
      this
      Agreement or Executive’s employment with Bio Check prior to the Complete
      Ownership Date without the unanimous consent of all of the members of the Board
      of Directors of Bio Check then in office, provided that the foregoing unanimous
      consent shall not be required for a termination for Cause, By Death or By
      Disability.

     

    4.  OTHER
      TERMINATIONS BY BIO CHECK

     

    a.  Termination
      for Cause.
      For
      purposes of this Agreement, for “Cause” shall mean: (i) Executive commits a
      crime involving dishonesty, breach of trust, or physical harm to any person;
      (ii) Executive willfully engages in conduct that is in bad faith and materially
      injurious to Bio Check or the Company, including but not limited to,
      misappropriation of trade secrets, fraud or embezzlement; (iii) Executive
      commits a material breach of this Agreement or the Shareholders Agreement
      between Bio Check, the Company and the Company’s shareholders of even date
      herewith, which breach is not cured within twenty (20) days after written notice
      to Executive from Bio Check or the Company; (iv) Executive willfully refuses
      to
      implement or follow a reasonable and lawful policy or directive of the Board
      of
      Directors of Bio Check, which breach is not cured within twenty (20) days after
      written notice to Executive from Bio Check; or (v) Executive engages in
      misfeasance or malfeasance demonstrated by a pattern of failure to perform
      job
      duties diligently and professionally. Bio Check may terminate Executive’s
      employment for Cause at any time, without any advance notice. Bio Check shall
      pay to Executive all compensation to which Executive is entitled up through
      the
      date of termination, subject to any other rights or remedies of Bio Check or
      Company under law; and thereafter all obligations of the Company and Bio Check
      under this Agreement shall cease. 

     

    
      
        
        

      

      
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    b.  By
      Death.
      Executive’s employment shall terminate automatically upon Executive’s death. Bio
      Check shall pay to Executive’s beneficiaries or estate, as appropriate, any
      compensation then due and owing. Thereafter, all obligations of the Company
      and
      Bio Check under this Agreement shall cease. Nothing in this Section shall affect
      any entitlement of Executive’s heirs or devisees to the benefits of any life
      insurance plan or other applicable benefits. 

     

    c.  By
      Disability.
      If
      Executive becomes eligible for Bio Check’s long term disability benefits, or if
      Executive is unable to carry out the responsibilities and functions of the
      position held by Executive by reason of any physical or mental impairment for
      more than ninety (90) consecutive days or more than one hundred twenty (120)
      days in any twelve-month period, then, to the extent permitted by law, Bio
      Check
      may terminate Executive’s employment. Bio Check shall pay to Executive all
      compensation to which Executive is entitled up through the date of termination,
      and thereafter all obligations of the Company and Bio Check under this Agreement
      shall cease. Nothing in this Section shall affect Executive’s rights under any
      disability plan in which Executive is a participant. 

     

    5.  TERMINATION
      BY EXECUTIVE

     

    a.  At-Will
      Termination by Executive.
      Executive may terminate employment with Bio Check at any time for any reason
      or
      no reason at all, upon four (4) weeks’ advance written notice. During such
      notice period Executive shall continue to diligently perform all of Executive’s
      duties hereunder. Bio Check shall have the option, in its sole discretion,
      to
      make Executive’s termination effective at any time prior to the end of such
      notice period as long as Bio Check pays Executive all compensation to which
      Executive is entitled up through the last day of the four (4) week notice
      period. Thereafter all obligations of the Company and Bio Check shall
      cease.

     

    b.  Termination
      for Good Reason.
      Executive’s termination shall be for “Good Reason” if Executive provides written
      notice to Bio Check and the Company of the Good Reason within thirty (30) days
      of the event constituting Good Reason and provides Bio Check and the Company
      with a period of twenty (20) days to cure the event constituting Good Reason
      and
      the Company or Bio Check fails to cure the Good Reason within that period.
      For
      purposes of this Agreement, “Good Reason” shall mean any of the following events
      if the event is effected by the Company or Bio Check without the written consent
      of Executive: (A) a change in Executive’s position, duties or
      responsibilities with Bio Check which materially reduces Executive's level
      of
      responsibility, duties or authority or Executive’s reporting relationship,
      except for any reduction for Cause or any reasonable reduction or change
      following a Change of Control (defined below) caused by the transition of the
      Company or Bio Check from a separate company to a division or other unit within
      another company; (B) a reduction in Executive’s Base Salary, except for
      reductions that Executive has consented to; (C) a relocation of Executive’s
      principal place of employment by more than fifteen (15) miles from the city
      limits of Hillsborough, California or beyond the counties of San Francisco,
      San
      Mateo or Santa Clara; or (D) a material breach of this Agreement or the
      Shareholders Agreement between Bio Check, the Company and the Company’s
      shareholders of even date herewith. In such event, Executive may terminate
      his
      employment for Good Reason, in which case Executive will be eligible to receive
      the Severance payments provided for in Section 3.b. Executive’s eligibility for
      Severance is conditioned on Executive having first signed a release agreement
      in
      a form attached hereto as Exhibit
      B.
      Thereafter, all obligations of the Company and Bio Check or their respective
      successors under this Agreement shall cease.

     

    
      
        
        

      

      
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    6.  CHANGE
      OF CONTROL

     

    a.  Change
      of Control.
      For
      purposes of this Agreement, “Change of Control” shall mean (i) a change in
      ownership or control of the Company or Bio Check effected through a merger,
      consolidation or acquisition by any person or related group of persons (other
      than an acquisition by the Company, or by a person or persons that directly
      or
      indirectly controls, is controlled by, or is under common control with, the
      Company, or by existing stockholders of the Company) of beneficial ownership
      (within the meaning of Rule 13d-3 of the Securities Exchange Act of 1934) of
      securities possessing more than fifty percent (50%) of the total combined voting
      power of the outstanding securities of the Company or Bio Check or (ii) the
      sale
      or exchange of all or substantially all of the Company’s or Bio Check’s assets
      where the shareholders of the Company or Bio Check immediately before such
      sale
      or exchange do not obtain or retain, directly or indirectly, at least a majority
      of the total combined voting power or the beneficial interest in the voting
      stock or other voting equity of the entity acquiring the Company’s or Bio
      Check’s assets.

     

    b.  Severance.
      Except
      in situations where the employment of Executive is terminated for Cause, By
      Death or By Disability, in the event that the Company or Bio Check (or their
      respective successors) terminate the employment of Executive, or if Executive
      terminates his employment for Good Reason, either within one (1) month prior
      to,
      in conjunction with, or within twelve (12) months following a Change of Control,
      Executive will be eligible to receive all amounts described in Section 3.b
      as
      Severance and immediate vesting of any unvested portion of all stock options
      and
      restricted stock granted to Executive so that the options and restricted stock
      will be 100% vested effective on the termination date (“Change of Control
      Severance”). Executive’s eligibility for Change of Control Severance is
      conditioned on Executive having first signed a release agreement in a form
      attached hereto as Exhibit
      B.
      Executive shall not be entitled to any Change of Control Severance payments
      if
      Executive’s employment is terminated for Cause, By Death or By Disability, or if
      Executive’s employment is terminated by Executive for any reason other than Good
      Reason.

     

    7.  TERMINATION
      OBLIGATIONS

     

    a.  Return
      of Property.
      Executive agrees that all property (including without limitation all equipment,
      tangible proprietary information, documents, records, notes, contracts and
      computer-generated materials) furnished to or created or prepared by Executive
      incident to Executive’s employment belongs to the Company or Bio Check and shall
      be promptly returned to the Company or Bio Check upon termination of Executive’s
      employment.

     

    b.  Resignation
      and Cooperation.
      Upon
      termination of Executive’s employment, Executive shall be deemed to have
      resigned from all offices and directorships then held with the Company or Bio
      Check, unless otherwise agreed with the Board of Directors of Bio Check or
      the
      Company, as applicable. Following any termination of employment, Executive
      shall
      cooperate with the Company and Bio Check in the winding up of pending work
      on
      behalf of the Company and Bio Check and the orderly transfer of work to other
      employees. Executive shall also cooperate with the Company and Bio Check in
      the
      defense of any action brought by any third party against Bio Check or the
      Company that relates to Executive’s employment by the Bio Check or the
      Company.

     

    c.  Continuing
      Obligations.
      Executive, the Company and Bio Check understand and agree that the obligations
      under Sections 2(e), 2(f), 3 through 20, inclusive (including Exhibits
      A,
      B
      and
C)
      shall
      survive the termination of Executive’s employment for any reason and the
      termination of this Agreement.

     

    
      
        
        

      

      
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    8.  INVENTIONS
      AND PROPRIETARY INFORMATION; PROHIBITION ON THIRD PARTY
      INFORMATION

     

    a.  Proprietary
      Information Agreement.
      Executive agrees to sign and be bound by the terms of the Employee Proprietary
      Information and Inventions Agreement, which is attached as Exhibit
      C
      (“Proprietary Information Agreement”).

     

    b.  Non-Solicitation.
      Executive
      acknowledges that because of Executive’s position in Bio Check, Executive will
      have access to material intellectual property and confidential information.
      During the term of Executive’s employment and for one (1) year thereafter,
      Executive shall not breach the non-solicitation terms of the Proprietary
      Information Agreement. 

     

    c.  Non-Disclosure
      of Third Party Information. Executive
      represents and warrants and covenants that Executive shall not disclose to
      the
      Company or Bio Check, or use, or induce the Company or Bio Check to use, any
      proprietary information or trade secrets of others at any time, including but
      not limited to any proprietary information or trade secrets of any former
      employer, if any; and Executive acknowledges and agrees that any violation
      of
      this provision shall be grounds for Executive’s immediate termination and could
      subject Executive to substantial civil liabilities and criminal penalties.
      Executive further specifically and expressly acknowledges that no officer or
      other employee or representative of the Company or Bio Check has requested
      or
      instructed Executive to disclose or use any such third party proprietary
      information or trade secrets.

     

    9.  AMENDMENTS;
      WAIVERS; REMEDIES

     

    This
      Agreement may not be amended or waived except by a writing signed by Executive
      and by a duly authorized representative of the Company and Bio Check other
      than
      Executive. Failure to exercise any right under this Agreement shall not
      constitute a waiver of such right. Any waiver of any breach of this Agreement
      shall not operate as a waiver of any subsequent breaches. All rights or remedies
      specified for a party herein shall be cumulative and in addition to all other
      rights and remedies of the party hereunder or under applicable law.

     

    10.  ASSIGNMENT;
      BINDING EFFECT

     

    a.  Assignment.
      The
      performance of Executive is personal hereunder, and Executive agrees that
      Executive shall have no right to assign and shall not assign or purport to
      assign any rights or obligations under this Agreement. This Agreement may be
      assigned or transferred by the Company or Bio Check in connection with; the
      consolidation, merger or sale of the Company or Bio Check or a sale of any
      or
      all or substantially all of their respective assets.

     

    b.  Binding
      Effect. Subject
      to the foregoing restriction on assignment by Executive, this Agreement shall
      inure to the benefit of and be binding upon each of the parties; the affiliates,
      officers, directors, agents, successors and assigns of the Company and/or Bio
      Check; and the heirs, devisees, spouses, legal representatives and successors
      of
      Executive.

     

    11.  ENFORCEMENT

     

    a.  Arbitration.
      All
      disputes between Executive (and his attorneys, successors, and assigns) and
      the
      Company and Bio Check (and their respective affiliates, shareholders, directors,
      officers, employees, members, agents, successors, attorneys, and assigns)
      relating in any manner whatsoever to this Agreement or the employment or
      termination of Executive, including, without limitation, claims for breach
      of
      contract (express or implied), tort of any kind, employment discrimination
      (including harassment) as well as all claims based on any federal, state, or
      local law, statute, or regulation (“Arbitrable Claims”), shall be resolved by
      arbitration. All persons and entities specified in the preceding sentence (other
      than the Company, Bio Check and Executive) shall be considered third-party
      beneficiaries of the rights and obligations created by this Section on
      Arbitration. Arbitrable Claims shall include, but are not limited to, claims
      under Title VII, Age Discrimination in Employment Act, Americans with
      Disabilities Act and the California Fair Employment Housing Act. However, claims
      under applicable workers’ compensation law, unemployment insurance law and the
      National Labor Relations Act shall not be subject to arbitration.

     

    
      
        
        

      

      
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    THE
      PARTIES HEREBY WAIVE ANY RIGHTS THEY MAY HAVE TO TRIAL BY JURY IN REGARD TO
      ARBITRABLE CLAIMS, INCLUDING WITHOUT LIMITATION ANY RIGHT TO TRIAL BY JURY
      AS TO
      THE MAKING, EXISTENCE, VALIDITY, OR ENFORCEABILITY OF THE AGREEMENT TO
      ARBITRATE.

     

    b.  Arbitration
      Procedure.
      The
      arbitration of Arbitrable Claims will be before a single neutral arbitrator
      licensed to practice law in the state of California and will be in accordance
      with the National Rules for the Resolution of Employment Disputes of the
      American Arbitration Association, as augmented by this Agreement and shall
      take
      place in San Mateo County, California, unless otherwise agreed by the parties.
      The arbitrator shall apply the same substantive law, the same limitation periods
      and the same remedies, that would apply if the claims were brought in a court.
      The arbitrator shall prepare a written decision containing the essential
      findings and conclusions on which the award is based. Each party will pay their
      own attorneys’ fees and legal costs. Bio Check shall pay the arbitrator’s fees
      and all arbitration forum costs.
      Either
      party may bring an action in court to compel arbitration under this Agreement,
      to enforce an arbitration award or to obtain temporary injunctive relief pending
      a judgment based on the arbitration award. Otherwise, neither party shall
      initiate or prosecute any lawsuit or administrative action in any way related
      to
      any Arbitrable Claim. If any court or arbitrator finds that any term makes
      this
      Agreement unenforceable for any reason, the court or arbitrator shall have
      the
      power to modify such term (or if necessary delete such term) to the minimum
      extent necessary to make this Agreement enforceable to the fullest extent
      permitted by law.

     

    c.  Attorneys’
      Fees.
      The
      prevailing party in any action to enforce the terms of this Agreement or
      otherwise to determine the rights and obligations of the parties shall be
      entitled to recover reasonable attorneys’ fees and legal costs as determined by
      the court or arbitrator in any such action.

     

    12.  NOTICES

     

    All
      notices or other communications required or permitted hereunder shall be made
      in
      writing and shall be deemed to have been duly given if delivered: (a) by hand;
      (b) by
      a
      nationally recognized overnight courier service; or (c) by United States first
      class registered or certified mail, return receipt requested,
      to the
      principal address of the other party, as set forth below. The date of notice
      shall be deemed to be the earlier of (i) actual receipt of notice by any
      permitted means, or (ii) five business days following dispatch by overnight
      delivery service or the United States Mail. Executive shall be obligated to
      notify the Company and Bio Check in writing of any change in Executive’s
      address. Notice of change of address shall be effective only when done in
      accordance with this paragraph.

     

    
      
        
        

      

      
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    Company’s
      Notice Address:

    

    OXIS
      International, Inc.

    6040
      N.
      Cutter Circle, Suite 317

    Portland,
      Oregon 97217-3935

    Attention:
      Chief Executive Officer 

     

    Bio
      Check’s Notice Address:

     

    c/o
      OXIS
      International, Inc.

    323
      Vintage Park Dr., Suite B

    Foster
      City, CA 94404

    Attention:
      Chief Executive Officer

     

    Executive’s
      Notice Address:

     

    784
      Vespucci Lane

    Foster
      City, CA 94404

     

    13.  SEVERABILITY

     

    If
      any
      provision of this Agreement shall be held by a court to be invalid,
      unenforceable, or void, such provision shall be enforced to the fullest extent
      permitted by law, and the remainder of this Agreement shall remain in full
      force
      and effect. In the event that the time period or scope of any provision is
      declared by a court or arbitrator of competent jurisdiction to exceed the
      maximum time period or scope that such court or arbitrator deems enforceable,
      then such court or arbitrator shall reduce the time period or scope to the
      maximum time period or scope permitted by law.

     

    14.  TAXES

     

    All
      amounts paid under this Agreement (including without limitation Base Salary,
      bonuses and Severance) shall be paid less all applicable state and federal
      tax
      withholdings and any other withholdings required by any applicable
      jurisdiction.

     

    15.  GOVERNING
      LAW

     

    This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of California. Except as provided in Section 11, any action or proceeding
      seeking to enforce any provisions of, or based on any right arising out of,
      this
      Agreement may be brought against any of the parties only in the courts of the
      State of California, County of San Mateo. Each of the parties consents to the
      exclusive jurisdiction of such courts (and the appropriate appellate courts)
      in
      any such action or proceeding and waives any objection to venue laid therein.
      Process in any action or proceeding referred to in the preceding sentence may
      be
      served on any party anywhere in the world.

     

    16.  INTERPRETATION

     

    This
      Agreement shall be construed as a whole, according to its fair meaning, and
      not
      in favor of or against any party. Sections and section headings contained in
      this Agreement are for reference purposes only, and shall not affect in any
      manner the meaning or interpretation of this Agreement. Whenever the context
      requires, references to the singular shall include the plural and the plural
      the
      singular. 

     

    
      
        
        

      

      
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    17.  COUNTERPARTS

     

    This
      Agreement may be executed in any number of counterparts, each of which shall
      be
      deemed an original of this Agreement, but all of which together shall constitute
      one and the same instrument. 

     

    18.  AUTHORITY

     

    Each
      party represents and warrants that such party has
      the
      right, power and authority to enter into and execute this Agreement and to
      perform and discharge all of the obligations hereunder; and that this Agreement
      constitutes the valid and legally binding agreement and obligation of such
      party
      and is enforceable in accordance with its terms.

     

    19.  ENTIRE
      AGREEMENT

     

    This
      Agreement is intended to be the final, complete, and exclusive statement of
      the
      terms of Executive’s employment by Bio Check and may not be contradicted by
      evidence of any prior or contemporaneous statements or agreements, except for
      agreements specifically referenced herein (including Exhibits A, B and C).
      To
      the extent that the practices, policies or procedures of Bio Check, now or
      in
      the future, apply to Executive and are inconsistent with the terms of this
      Agreement, the provisions of this Agreement shall control. Any subsequent change
      in Executive’s duties, position, or compensation will not affect the validity or
      scope of this Agreement.

     

    20.  EXECUTIVE
      ACKNOWLEDGEMENT

     

    EXECUTIVE
      ACKNOWLEDGES THAT EXECUTIVE HAS HAD THE OPPORTUNITY TO CONSULT LEGAL COUNSEL
      CONCERNING THIS AGREEMENT, THAT EXECUTIVE HAS READ AND UNDERSTANDS THE
      AGREEMENT, THAT EXECUTIVE IS FULLY AWARE OF ITS LEGAL EFFECT, AND THAT EXECUTIVE
      HAS ENTERED INTO IT FREELY BASED ON EXECUTIVE’S OWN JUDGMENT AND NOT ON ANY
      REPRESENTATIONS OR PROMISES OTHER THAN THOSE CONTAINED IN THIS
      AGREEMENT.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    In
      Witness Whereof,
      the
      parties have duly executed this Agreement as of the date first written above.
      

     

    
      	
              BIO
                CHECK, INC.

               

            	
              JOHN
                CHEN

               

            
	
              By:

               

            	
              /s/
                John Chen    

               

            	
              By:

               

            	
              /s/
                John
                Chen                 
                   

               

            
	
              Name:

               

            	
              John
                Chen

               

            	
              Name:

               

            	
              John
                Chen

               

            
	
              Title:

               

            	
              President

               

            	 	 

    

    

     

    

     

    
      	
              OXIS
                INTERNATIONAL, INC.

               

            	 
	
              By:

               

            	
              /s/
                Steve T. Guillen 
 

               

            	 	 
	
              Name:

               

            	
              Steven
                T. Guillen

               

            	 	 
	
              Title:

               

            	
              Chief
                Executive Officer

               

            	 	 

    

    

     

    

    
      
        
        

      

      
        10Exhibit
      10.25

     

    OPTION
      AND REIMBURSEMENT AGREEMENT

     

    This
      Option and Reimbursement Agreement (this “Agreement”) is made and entered into
      as of December 6, 2005 (“Effective Date”), by and among EverNew Biotech, Inc., a
      California corporation with an address located at 323 Vintage Park Drive, Foster
      City, San Mateo, California 94404 (“Evernew”), OXIS International, Inc., a
      Delaware corporation (“OXIS”), and each of the shareholders of Evernew (the
“Shareholders”), which are listed on Exhibit A. 

     

    Recital

     

    A. In
      consideration of the services to be performed by Bio Check, Inc. which is
      majority owned by OXIS, pursuant to that certain Services Agreement of even
      date
      herewith (the “Services Agreement”) Evernew and the Shareholders wish to grant
      OXIS a call option right, a right of first refusal, and certain other
      rights.

     

    NOW,
      THEREFORE, in consideration of the foregoing and the mutual covenants and
      conditions herein set forth, the parties agree as follows:

     

    Agreement

     

    1. Representations
      and Warranties of the Shareholder.
      Each
      Shareholder represents and warrants that the execution, delivery and performance
      of this Agreement by such Shareholder will not result in any breach of, or
      default under, any term or provision of any agreement, obligation,
      instrument, judgment, decree, order, statute, rule or governmental regulation
      to
      which such Shareholder is a party or by which such Shareholder may be bound
      or
      which applies to such Shareholder. Each Shareholder has the legal capacity
      and
      is duly authorized to enter into this Agreement and perform its obligations
      hereunder.

     

    2. Representations
      and Warranties of Evernew.
      Evernew
      represents and warrants that the execution, delivery and performance of this
      Agreement by Evernew will not result in any breach of, or default under, any
      term or provision of any agreement, obligation,
      instrument, judgment, decree, order, statute, rule or governmental regulation
      to
      which Evernew
      is a
      party or by which Evernew
      may be
      bound or which applies to Evernew.
      Evernew
      has all
      rights and permissions necessary for Evernew
      to
      perform the Evernew Services. Evernew
      is duly
      authorized to enter into this Agreement and perform its obligations
      hereunder.

     

    3. Call
      Option.
      

     

    (a) Evernew
      and each Shareholder hereby grant to OXIS the right to purchase all of the
      assets and/or equity securities of Evernew on the terms set forth in this
      Section 3 (the “Call Option”). 

     

    (b) The
      Call
      Option is exercisable from the date of this Agreement until December 31,
      2008.

     

    (c) OXIS
      may
      exercise the Call Option in one or more tranches by providing written notice
      to
      the Evernew Representative (as defined below) of its exercise of the Call Option
      (the “Call Option Notice”). 

     

    (d) The
      aggregate exercise price for the Call Option (the “Call Option Price”) shall be
      the lower of (i) the amount to be determined in good faith between OXIS and
      Evernew by January 31, 2006 (the “Negotiated Price”); and (ii) if applicable,
      the consideration offered by a third party as described in a Transfer Notice
      delivered to OXIS pursuant to Section 4(a). The Call Option Price shall be
      paid
      by OXIS by wire transfer to an account provided by Evernew Representative (as
      defined below) in an amount equal to the Call Option Price (which may be an
      account of counsel to Evernew or the Representative), less the Accumulated
      Evernew Amounts as of the date of the Call Closing (as defined below). For
      the
      purpose of this Agreement, the Accumulated Evernew Amounts as of a particular
      date shall comprise of the sum of Monthly Evernew Amounts accrued as of such
      date. For the purposes of this Agreement, the Monthly Evernew Amounts shall
      comprise of the product of (i) the percentage of all of the issued and
      outstanding shares of BioCheck held by OXIS as of the last day of each such
      month
      (the “Monthly Percentage”) and (iii) the sum of (A) the cost of all Evernew
      Services provided by BioCheck each month under the Services Agreement, as
      incurred and determined in good faith by BioCheck (“Evernew Service Costs”) and
      (B) the amount of Evernew Compensation provided by BioCheck each month under
      the
      Services Agreement. For purposes of the foregoing, the
      Monthly Percentage for the months of January 2005 through November 2005 shall
      be
      deemed to be fifty-one percent (51%).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (e) The
      settlement of the Call Option and payment of the Call Option Price shall occur
      within thirty (30) days after the receipt of the Call Option Notice by Evernew
      (the “Call Closing”). 

     

    (f) Dr.
      John
      Chen is hereby appointed as the sole representative of Evernew and its
      shareholders for the purposes of this Agreement (the “Evernew Representative”).
      The Evernew Representative shall have the authority to give and receive notices
      and communications, to act on behalf of Evernew and its shareholders with
      respect to any matters arising under this Agreement, and to take all actions
      necessary or appropriate in the judgment of the Evernew Representative for
      the
      accomplishment of the transactions contemplated by this Agreement. A
      decision, act, consent or instruction of the Evernew Representative shall
      constitute a decision, act, consent or instruction of Evernew and all of its
      shareholders and shall be final, binding and conclusive upon each of Evernew
      and
      its shareholders. 

     

    4. Rights
      of Refusal.

     

    (a) The
      parties agree that if at any time Evernew proposes to sell all or substantially
      all of its assets or the Shareholders propose to sell any of their equity
      securities, (together with Evernew, the “Selling Parties”), then the Evernew
      Representative shall promptly give OXIS written notice at least thirty (30)
      days
      prior to the Selling Parties intention to make the Transfer (the “Transfer
      Notice”). The Transfer Notice shall include (i) a description of the assets
      or the equity securities to be transferred (the “Offered Property”),
      (ii) the name(s) and address(es) of the prospective transferee(s),
      (iii) the consideration and (iv) the material terms and conditions upon
      which the proposed Transfer is to be made. The Transfer Notice shall certify
      that the Selling Parties has received a firm offer from the prospective
      transferee(s) and in good faith believes a binding agreement for the Transfer
      is
      obtainable on the terms set forth in the Transfer Notice. The Transfer Notice
      shall also include a copy of any written proposal, term sheet or letter of
      intent or other agreement relating to the proposed Transfer. 

     

    (b) OXIS
      shall have an option for a period of thirty (30) days from the delivery of
      the
      Transfer Notice from the Evernew Representative set forth in Section 4(a)
      to elect to purchase Offered Property subject to the same material terms and
      conditions as described in the Transfer Notice, at a price (the “ROFR Price”)
      equal to the lesser of (i) the Negotiated Price and (ii) the price set forth
      in
      the Transfer Notice. OXIS may exercise its right of first refusal and purchase
      all or any portion of the Offered Property by notifying the Evernew
      Representative in writing (the “ROFR Notice”), before expiration of the thirty
      (30) day period. 

     

    (c) OXIS
      shall effect the purchase of the Offered Property by wire transfer to an account
      provided by Evernew Representative in an amount equal to the ROFR Price, less
      the Accumulated Evernew Amounts as of the date of the ROFR Closing (as defined
      below). 

     

    (d) The
      settlement of the purchase and sale of the Offered Property and payment of
      the
      ROFR Price shall occur within thirty (30) days after the receipt of the ROFR
      Notice by Evernew (the “ROFR Closing”).

     

    (e) To
      the
      extent that OXIS does not exercise its rights to purchase the Offered Property
      within the time periods specified in Section 4(b), the Selling Parties
      shall have a period of ninety (90) days from the expiration of such rights
      in
      which to sell the Offered Property, upon terms and conditions no more favorable
      to either the Selling Parties or the transferee(s) than those specified in
      the
      Transfer Notice (and at a price no less than set forth in the Transfer Notice),
      to the third-party transferee(s) identified in the Transfer Notice, provided,
      however, that in the event OXIS delivers a Call Option Notice pursuant to
      Section 3(c) prior to the closing of the third party sale as contemplated in
      this Section 4(e), EverNew shall not consummate the third party sale as
      contemplated herein, and Evernew’s
      obligation to consummate the Call Closing shall take precedence over the third
      party sale contemplated herein. 

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    5. Reimbursement
      of Evernew Services and Evernew Compensation.
      To the
      extent OXIS has not exercised the Call Option pursuant to Section 4 or its
      right
      of first refusal pursuant to Section 5 by December 31, 2007, then (i) Evernew
      shall on or prior to March 31, 2008, pay to BioCheck an amount equal to the
      aggregate Evernew Service Cost and Evernew Compensation accumulated on and
      prior
      to March 31, 2008, and (ii) the amount actually paid to BioCheck, multiplied
      by
      the applicable Monthly Percentage for each monthly period in which the Evernew
      Service Cost and Evernew Compensation is determined, shall be deducted from
      the
      balance of the Accumulated Evernew Amount for periods after such payment is
      made. 

     

    6. Termination.
      This
      Agreement shall automatically terminate and be of no further effect on December
      31, 2008, unless earlier terminated as set forth in this Section 6. Each party
      may terminate this Agreement if the other party breaches this Agreement and
      such
      breach is not cured within thirty (30) calendar days after the non-breaching
      party has given the breaching party written notice reasonably describing the
      breach. Each party shall return to the other party within ten (10) calendar
      days
      of the termination of this Agreement any records, reports, documents or other
      materials relating to the services performed by it for the other party which
      may
      be in such party’s possession.

     

    7. Choice
      of Laws; Attorneys Fees.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of California, without regard to principles of conflicts of law. Any
      case,
      controversy, lawsuit, action, or proceeding arising out of, in connection with,
      or related to, this Agreement shall be brought in any court of competent
      jurisdiction located in San Mateo, California. If
      any
      party to this Agreement shall take any action to enforce this Agreement or
      bring
      any action or commence any arbitration for any relief against any other party,
      declaratory or otherwise, arising out of this Agreement, the losing party shall
      pay to the prevailing party such party’s reasonable attorneys’ fees and costs
      incurred in litigating such suit or arbitration and/or enforcing any judgment
      granted therein.

     

    8. Specific
      Performance.
      Each of
      the parties agree that any breach of Sections 3 or 4 may cause irreparable
      harm
      for which the aggrieved party may have no adequate remedy at law. Accordingly,
      each party agrees that the other party shall be entitled (without limitation
      of
      any other available rights or remedies and without the necessity of posting
      a
      bond) to seek and obtain injunctive relief against any breach of Sections 3
      or 4
      from any court of competent jurisdiction, in addition to the right to assert
      any
      other remedy it may have under this Agreement, at law or in equity.

     

    9. Amendments;
      Waivers.
      No
      modification, amendment or waiver of any of the provisions of this Agreement
      shall be effective unless made in writing specifically referring to this
      Agreement and duly signed by an authorized representative of each party hereto.
      The failure of either party to enforce its rights under this Agreement at any
      time for any period of time shall not be construed as a waiver of such
      right.

     

    10. Entire
      Agreement.
      This
      Agreement together with each the exhibits attached hereto constitute the entire
      agreement between the parties hereto with respect to the specific subject matter
      hereof, and any and all written or oral agreements heretofore existing between
      the parties hereto with respect to the subject matter hereof are expressly
      canceled.

     

    11. Partial
      Invalidity.
      The
      invalidity or unenforceability of any particular provision of this Agreement
      shall not affect the other provisions hereof. Should any provision or partial
      provision hereof be found illegal or unenforceable for being too broad with
      respect to the duration, scope or subject matter thereof, such provision or
      partial provision shall be deemed and construed to be reduced to the maximum
      duration, scope or subject matter permitted by law.

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    12. Notices.
      All
      notices under this Agreement shall be in writing, and shall be deemed given
      when
      personally delivered, or three (3) calendar days after being sent by prepaid
      certified or registered U.S. mail to the address of the other party to be
      noticed as set forth herein or such other address as such party last provided
      to
      the other by written notice.

     

    13. Counterparts;
      Facsimile Signatures.
      This
      Agreement may be executed simultaneously in counterparts, each of which shall
      be
      deemed an original, but all of which together shall constitute one and the
      same
      instrument. Signatures received by facsimile shall be deemed to be original
      signatures.

     

    <Remainder
      of Page Intentionally Left Blank>

    
      
         

        

        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, this Agreement has been executed and delivered by duly
      authorized representatives of all parties hereto as of the date first written
      above.

    
      	
               

              OXIS:

               

               

               

              OXIS
                INTERNATIONAL, INC.

            	
               

              EVERNEW:

               

               

               

              EVERNEW
                BIOTECH, INC.

            
	
               

              By:
                _________________________________

            	
               

              By:
                ________________________________

            
	
               

              Name:
                _______________________________

            	
               

              Name:
                _______________________________

            
	
               

              Its:
                _________________________________

            	
               

              Title:
                ________________________________

            
	
               

              EVERNEW
                SHAREHOLDERS:

            	 
	
              _____________________________

              Dr.
                John Chen

               

               

              _____________________________

              Amy
                Chen

               

               

              _____________________________

              Peggy
                Chen

               

               

              _____________________________

              David
                Chen

               

               

              _____________________________

              Yiping
                Wang

            	
              _____________________________

              Anna
                Pao

               

               

              _____________________________

              Robert
                Cochran

               

               

              _____________________________

              George
                J. Lee

               

               

              Tauber
                Revocable Trust UTD 9/20/03

               

              By:
                ___________________________

              Name:
                Paul J. Tauber

              Title:
                Trustee

            

    

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    Exhibit
      A

    

    List
      of Evernew Biotech, Inc. Shareholders

    

    

      
        	
                1.

              	
                Dr.
                  John Chen

              
	 	 
	 	 
	
                2.

              	
                Amy
                  Chen

              
	 	 
	 	 
	
                3.

              	
                Peggy
                  Chen

              
	 	 
	 	 
	
                4.

              	
                David
                  Chen

              
	 	 
	 	 
	
                5.

              	
                Yiping
                  Wang

              
	 	 
	 	 
	
                6.

              	
                Anna
                  Pao

              
	 	 
	 	 
	
                7.

              	
                Robert
                  Cochran

              
	 	 
	 	 
	
                8.

              	
                George
                  J. Lee

              
	 	 
	 	 
	
                9.

              	
                Tauber
                  Revocable Trust UTD 9/20/03

              

      

    

     

     

    
      
        
        

      

      
        6

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