Document:

EX-10.12

 Exhibit 10.12 
  

 
  

			
	 EMPLOYEE:
 PTCI CONTACT:

EFFECTIVE DATE:
 TERMINATION DATE:
	  	 •    Robert Ziroyan

•    Garo H Armen,

•    January 01, 2014

•    December 31, 2015

 EMPLOYMENT AGREEMENT 

THIS EMPLOYMENT AGREEMENT (together with the Business Terms Exhibit, the “Agreement”) made as of December 26, 2011 (the “Effective
Date”) is between Protagenic Therapeutics Canada (2006) Inc., a Ontario Corporation Number 660068- 9 with a office address at 22 Elkhorn Drive, Suite 424, North York, Ontario, M2K 1J4, Canada; (“PTCI”) and
Dr. Robert Ziroyan having an home address at 22 Elkhorn Drive, Apt # 424, North York, ON, M2K 1J4, Canada (Tel:+416.500.3305 (“Employee”). Protagenic Therapeutics Canada Inc. (PTCI) desires to have the benefit of
Employee’s knowledge and experience, and Employee desires to provide employment services to PTCI, all as provided in this Agreement. Employee will be working on a full time basis as a President and Chief Operating Officer. It
should be noted that the Protagenic Therapeutics Canada (2006) Inc. is subsidiary of Protagenic Therapeutics, Inc. Protagenic Therapeutics, Inc. is incorporated in the state of Delaware, U.S.A. 

 

	1.	Definitions. The following terms have the meanings set forth below: 

  

	 	1.1	“Business Terms Exhibit” means the business and financial terms applicable to the Employment Services (as defined below) set forth in the attached exhibit, as may be amended from time to time by written
agreement of the parties. 

  

	 	1.2	“Confidential Information” means any non-public scientific, technical, financial or business information possessed or obtained by, developed for or given to PTCI which is treated by PTCI as confidential
or proprietary, whether or not labeled or identified as “Confidential”. Confidential Information will include, without limitation, information prepared in full or in part for PTCI by Employee, Materials and Developments (defined below),
the terms of this Agreement and information about or belonging to PTCI’s suppliers, licensors, licensees, partners, affiliates, customers, potential customers or others. 

 

	 	1.3	“Developments” means concepts, inventions, know-how, techniques, improvements, writings, data, computer software, and Materials (whether or not patentable or subject to copyright or trade secret
protection) that Employee makes, conceives or reduces to practice, either alone or jointly with others, and that result from the performance of the Employment Services, and/or result from use of PTCI’s Confidential Information.

  

	 	1.4	“Materials” means all materials furnished by PTCI, all materials developed by Employee in connection with the Employment Services, and any materials, the cost of which are reimbursed to Employee by PTCI
hereunder. Materials include, in the case of biological materials, all progeny and unmodified derivatives of those materials, and in the case of chemical materials, all analogs, formulations, mixtures and compositions of those materials.

  

	 	1.5	“Term” means the term of this Agreement as set forth in the Business Terms Exhibit. 

  

	2.	Employment Services. PTCI retains Employee and Employee agrees to provide Employment services to PTCI as it may from time to time reasonably request and as specified in the Business Terms Exhibit (the
“Employment Services”). Any changes to the Employment Services (and any related compensation adjustments) must be agreed to in writing between Employee and PTCI prior to commencement of the changes. 

  
 Protagenic
Therapeutics Inc., 22 Elkhorn Drive, Suite 424, North York, ON, M2K 1J4, Canada 
 www.protagenic.com 

  
 1 

 

 
  

	3.	Employment Relationship. Employee agrees, as a condition of this Agreement, to the following terms: 

  

	 	3.1	Compliance. 

  

	 	a.	With Institution Policies. PTCI recognizes that if the Employee becomes a faculty member at or employee of a university or hospital (“Institution”), then the Employee is responsible for ensuring that
any Employment agreement Employee enters into with industry is not in conflict with the patent, Employment or other policies of Institution. If Employee is required by Employee’s Institution to disclose to it any proposed agreements with
industry, Employee has made that disclosure. If Institution’s prior approval of this Agreement is required by Institution policies, Employee has obtained that approval. 

 

	 	b.	With Policies and Regulations. In performing the Employment Services, Employee will comply with all business conduct, regulatory, and health and safety guidelines or regulations established by PTCI or any
governmental authority with respect to PTCI’s business. 

  

	 	c.	Absence of Debarment. Employee represents that Employee has not been debarred, and to the best of Employee’s knowledge, is not under consideration to be debarred, by the Health of Canada or from working in
or providing services to any pharmaceutical or biotechnology company under the Generic Drug Enforcement Act of 1992. 

  

	 	3.2	Absence of Restrictions. Employee is under no contractual or other obligation or restriction which is inconsistent with Employee’s execution of this Agreement or the performance of the Employment Services.
During the Term, Employee will not enter into any agreement, either written or oral, in conflict with Employee’s obligations under this Agreement. Employee will arrange to provide the Employment Services in such manner and at such times so that
they will not conflict with Employee’s responsibilities under any other agreement, arrangement or understanding or pursuant to any employment relationship Employee has at any time with any third party (including, without limitation,
Institution). 

  

	 	3.3	Confidential Information of Third Parties. The performance of the Employment Services does not and will not breach any agreement which obligates Employee to keep in confidence any confidential or proprietary
information of any third party or to refrain from competing, directly or indirectly, with the business of any third party. Employee will not disclose to PTCI any confidential or proprietary information of any third parties. 

 

	 	3.4	Competitive Activities. During the Term and for a period of twelve (12) months thereafter, Employee will not provide Employment services to any business or entity developing a product or sponsoring a project
which competes with a product being developed or project being sponsored by PTCI for which Employee is providing Employment Services. It will not be considered a competitive activity for Employee to be a member of the faculty or staff of a
university, college or other educational or non-profit research institution. 

  

	4.	Compensation. As full consideration for the Employment Services rendered under this Agreement, PTCI agrees to pay Employee and reimburse expenses as set forth in the Business Terms Exhibit.

  

	5.	Developments. 

  

	 	5.1	 Ownership. All Developments will be the exclusive property of PTCI. All Developments that are “Works Made for Hire” as defined in the
Canadian and U.S. Copyright Act and other copyrightable works will be deemed, upon creation, to be assigned to PTCI. Employee will promptly and fully disclose to PTCI all Developments. Employee will keep and maintain complete written records of all
Developments and of all work or investigations done or carried out by Employee. Employee may keep one (1) copy of these records in Employee’s files solely for reference purposes.

  
 Protagenic
Therapeutics Inc., 22 Elkhorn Drive, Suite 424, North York, ON, M2K 1J4, Canada
 www.protagenic.com 

  
 2 

 

 
  

	 	
Employee assigns and agrees to assign to PTCI all of Employee’s right, title and interest in and to any Developments. During and after the Term, Employee will cooperate fully in obtaining
patent and other proprietary protection for the Developments, all in the name of PTCI and at PTCI’s cost and expense, and, without limitation, will execute and deliver all requested applications, assignments and other documents, and take such
other measures as PTCI will reasonably request, in order to perfect and enforce PTCI’s rights in the Developments. Employee appoints PTCI its attorney to execute and deliver any such documents on Employee’s behalf in the event Employee
fails to do so. 

  

	 	5.2	Agreement with Institution. This Agreement is made subject to the understanding that Employee, if becoming an affiliated with an Institution, may be required to fulfill certain obligations, including teaching,
directing laboratory operations, conducting research, and publishing work. It is further understood that Employee may have signed an agreement concerning inventions with Institution, under which Employee may be obligated to assign to Institution
certain inventions which arise out of or otherwise relate to Employee’s work at or for Institution or from Employee’s use of certain of its facilities or intellectual property. In performing the Employment Services, Employee agrees not to
utilize Institution facilities or intellectual property if the result of that use is that any Development will not be assignable solely to PTCI. 

  

	 	5.3	Work at Third Party Facilities. Unless covered by an appropriate agreement between any third party and PTCI, Employee will not engage in any activities or use any third party facilities or intellectual property
in performing the Employment Services which could result in claims of ownership to any Developments being made by a third party. 

  

	6.	Confidentiality; Publication. 

  

	 	6.1	Confidentiality. During the Term and for a period of five (5) years thereafter, Employee will not publish, disseminate or otherwise disclose, use for Employee’s own benefit or for the benefit of a third
party, any Confidential Information. Employee will exercise all reasonable precautions to physically protect the confidentiality of the Confidential Information. Employee may disclose the Confidential Information to a governmental authority or by
order of a court of competent jurisdiction, provided that the disclosure is subject to all applicable governmental or judicial protection available for like material and reasonable advance notice is given to PTCI. The obligations of non-disclosure
will not apply to information which (a) was known to Employee at the time it was disclosed, other than by previous disclosure by PTCI, as evidenced by Employee’s written records at the time of disclosure; (b) is at the time of
disclosure or later becomes publicly known under circumstances involving no breach of this Agreement; or (c) is lawfully and in good faith made available to Employee by a third party who did not derive it, directly or indirectly, from PTCI.

  

	 	6.2	Publication. Employee agrees to submit to PTCI a copy of any proposed manuscript or other materials to be published or otherwise publicly disclosed which contain information or any discussion relating to PTCI or
the Employment Services, at least thirty (30) days prior to submission for publication or disclosure, to enable PTCI to determine if patentable Developments or any Confidential Information of PTCI would be disclosed. Employee will cooperate
with PTCI in this respect and will delete from the manuscript or other disclosure any Confidential Information if requested by PTCI, and will assist PTCI in filing for patent protection for any patentable Developments described in those documents,
prior to publication or other disclosure. 

  

	7.	Expiration/Termination. 

  

	 	7.1	Term. This Agreement will commence on the Effective Date and continue for the Term, unless sooner terminated pursuant to the express terms of this Section 7 or extended by mutual written agreement of the
parties. 

  
 Protagenic
Therapeutics Inc., 22 Elkhorn Drive, Suite 424, North York, ON, M2K 1J4, Canada 
 www.protagenic.com 

  
 3 

 

 
  

	 	7.2	Termination for Breach. If either party breaches in any material respect any of its material obligations under this Agreement, in addition to any other right or remedy, the non-breaching party may terminate this
Agreement in the event that the breach is not cured within thirty (30) days after receipt by that party of written notice of the breach. 

  

	 	7.3	Termination by PTCI. Either party may terminate this Agreement (a) immediately at any time upon written notice to the other party in the event of a breach of this Agreement by the other party which cannot be
cured (i.e. breach of the confidentiality obligations) and/or (b) at any time without cause upon not less than forty five (45) days’ prior written notice to the other party. 

 

	 	7.4	Severance Compensation and Termination Protection. 

 Termination without Cause.
Under this employment agreement, if PTCI terminates Dr. Robert Ziroyan’s employment agreement without cause or if he terminates his employment for good reason not involving a change of control (as defined below), he is entitled to a lump
sum payment of 12 months of base salary plus 150% of the higher of their target incentive bonus for that year or their last actual incentive bonus, as well as coverage under the medical and dental plans for 12 months following the date of
termination, a lump sum payment of $10,000 for outplacement assistance, a gross-up for any taxes with respect to such outplacement assistance payment, a gross-up payment for any taxes, interest and penalties imposed by Canada Revenue Agency, the
acceleration of vesting of any unvested stock options. 
 Under Dr. Ziroyan’s employment agreement, “good reason” means
the occurrence of any of the following events: (i) failure to continue Dr. Ziroyan in the position of Chief Operating Officer, (ii) a material and substantial diminution in the nature or scope of his responsibilities, (iii) a
material reduction in base salary or benefits, or (iv) relocation of Dr. Ziroyan’s principal office, without his prior consent, to a location more than 50 kilometers away. The principal place of business for Dr. Ziroyan is
Toronto, Ontario. 
 Change of control: Under this employment agreement upon a change of control: 50% of any of
Dr. Ziroyan’s outstanding unvested stock options as of the change of control date become vested and exercisable. If the Robert Ziroyan is terminated or resigns for good reason as a result of the change of control, the remaining 50% vests.
If a change of control occurs and, within 18 months, PTCI terminates the employee’s employment agreement without cause or if the employee terminates his employment for good reason, the employee is entitled to: a lump sum payment of 18 months of
base salary plus 150% of the higher of their target incentive bonus for that year or their last actual incentive bonus, coverage under the medical and dental plans for 12 months following the date of termination, a lump sum payment of $10,000 for
outplacement assistance, a gross-up for any taxes with respect to such outplacement assistance payment, a gross-up payment for any taxes, interest and penalties imposed by Canada Revenue Agency, and acceleration of vesting for all unvested stock
options as of the date of termination. The principal place of business for Dr. Ziroyan is Toronto, Ontario. 
  

	 	7.5	Effect of Expiration/Termination. Upon expiration or termination, neither PTCI nor Employee will have any further obligations under this Agreement, except (a) the liabilities accrued through the date of
expiration or termination, and (b) the terms and obligations under sections 1, 3.4, 5, 6, 7.4 and 8, will survive. Upon expiration or termination, and in any case upon PTCI’s request, Employee will promptly return to PTCI all Confidential
Information and copies thereof, except for one (1) copy which Employee may retain solely for archival purposes. 

  
 Protagenic
Therapeutics Inc., 22 Elkhorn Drive, Suite 424, North York, ON, M2K 1J4, Canada 
 www.protagenic.com 

  
 4 

 

 
  

	8.	Miscellaneous. 

  

	 	8.1	Remuneration. 

 Taxes. Employer shall pay, on Employee’s behalf,
all applicable income taxes (Federal and provincial) and fees imposed by Canada Pension Plan and Employment Insurance. Employee will provide PTCI with his Social Insurance number, as applicable. 

Vacation. Employee shall be entitled to four weeks paid vacation time per annum. Such vacation request shall be
subject to prior approval and authorization by the Chairman of the Board of Directors. 
 Travel Expenses. Employee will be
reimbursed for all travel and other out-of-pocket business expenses (subject to prior approval) actually and properly incurred in connection with his obligations under this Agreement. For all such expenses, Employee shall
furnish PTI with the corresponding reports and vouchers, as and when PTCI requires. 
 Expenses. Employee will be
reimbursed for the expenses related to the implementation of his obligations under this Agreement such as communications (wireless phone and internet). Also, Employee will be reimbursed for the “complementary and
dental” health care services provided. For all such expenses, Employee will furnish PTI with the corresponding reports and vouchers, as and when PTCI requires. Employee will also be reimbursed up to $510 per month to cover
rent cost associated with office rent. 
  

	 	8.2	Use of Name. Employee consents to the use by PTCI of Employee’s name and likeness in written materials and oral presentations to current or prospective customers, partners, investors or others, provided that
the materials or presentations accurately describe the nature of Employee’s relationship with or contribution to PTCI. 

  

	 	8.3	Notices. All notices must be written and sent to the address or facsimile number identified in this Agreement or a subsequent notice. All notices must be given (a) by personal delivery, with receipt
acknowledged; (b) by facsimile followed by hard copy delivered by the methods under (c) or (d); (c) by prepaid certified or registered mail, return receipt requested; or (d) by prepaid recognized next business day delivery
service. Notices will be effective upon receipt or as stated in the notice. Notices to PTCI must be marked “Attention: Chairman of the Board of the Directors”. 

 

	 	8.4	Assignment. This Agreement is a personal services agreement, and the rights and obligations hereunder, may not be assigned or transferred by either party without the prior written consent of the other party,
except that PTCI may assign this Agreement, in whole or in part, to an affiliated company or in connection with the merger, consolidation, sale or transfer of all or substantially all of its business to which this Agreement relates.

  

	 	8.5	Entire Agreement. This Agreement constitutes the entire agreement of the parties with regard to its subject matter, and supersedes all previous written or oral representations, agreements and understandings
between PTCI and Employee. 

  

	 	8.6	No Modification. This Agreement may be changed only by a writing signed by both parties. 

  

	 	8.7	Severability. Each provision in this Agreement is independent and severable from the others, and no provision will be rendered unenforceable as a result of any other provision(s) being held to be invalid or
unenforceable in whole or in part. If any provision of this Agreement is invalid, unenforceable or too broad, that provision will be appropriately limited and reformed to the maximum extent permitted by applicable law. 

  
 Protagenic
Therapeutics Inc., 22 Elkhorn Drive, Suite 424, North York, ON, M2K 1J4, Canada 
 www.protagenic.com 

  
 5 

 

 
  

	 	8.8	Applicable Law. This Agreement will be governed by, and construed in accordance with, the laws of the Province of Ontario, and the laws of Canada applicable in Ontario without regard to any choice of law
principle that would dictate the application of the law of another jurisdiction. Any action, suit, or other legal proceeding which is commenced to resolve any matter arising under or relating to any provision of this Agreement will be commenced only
in a court of the Province of Ontario (or, if appropriate, a federal court located within the Province of Ontario), and PTCI and Employee each consents to the jurisdiction of such a court. 

 

	 	8.9	Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed to be an original, but all of which shall constitute one and the same
agreement. 

 IN WITNESS WHEREOF, duly authorized representatives of the parties have executed this Agreement as of the
Effective Date. 
  

			
	 PROTAGENIC THERAPEUTICS, INC.

PROTAGENIC THERAPEUTICS CANADA (2006), INC.

		
	By:	 	 /s/ Robert Ziroyan

		 	Name: Robert Ziroyan
		 	Title: President & Operations Manager
		
	By:	 	 /s/ Garo H. Armen

		 	Name: Garo. H Armen
		 	Title: Chairman of the Board of Directors

  
 Protagenic
Therapeutics Inc., 22 Elkhorn Drive, Suite 424, North York, ON, M2K 1J4, Canada 
 www.protagenic.com 

  
 6 

 BUSINESS TERMS EXHIBIT 

Employment Agreement with Dr. Robert Ziroyan 
  

	1.	Scope of Work/Duties and Responsibilities 

 Under the direct supervision of the PTI
Chairman of the Board of the Directors the Employee will: 
 Strategy & Operations: 

 

	 	•	 	in coordination with the chairman, develop, communicate and implement the company’s overall strategy and operating plan; 

  

	 	•	 	develop and implement appropriate business plan; 

  

	 	•	 	prepare progress reports, budgets and workplans as requested by the chairman of the board; 

Corporate: 
  

	 	•	 	support the board of the directors and the senior management in maintaining the relation with investors, venture capitalists and donor community; 

 

	 	•	 	support the senior management in advocating and promoting the company products through public relation; means of information technology use; 

 

	 	•	 	support the senior management in updating information contained at the business plan, power point presentation, fact sheets and website; 

Financials: 
  

	 	•	 	prepare annual, quarterly budgets and relevant financial statements; 

  

	 	•	 	manage various budgetary constraints or targets; regularly (monthly) monitor and help manage the company and various departmental budgets, expenses, cash flow; 

 

	 	•	 	establish financial forecasts for the company to ensure alignment with board-approved company objectives; 

  

	 	•	 	clear disbursement requests and final reception of goods, works or services and for the corresponding closing of a contract; 

Operations: 
  

	 	•	 	provide administrative, infrastructure, financial support in implementation of day to day company and various project activities; 

  

	 	•	 	provide operational support and assistance to consultants and researchers hired by the company; 

  

	 	•	 	ensure efficient operation of administrative structures; 

 Contracts: 

 

	 	•	 	work actively with legal and intellectual property department to prepare various contracts and agreements: employment, service, engagement, corporative. 

 

	 	•	 	in coordination with the chairman will be responsible for recruitment of employees, consultants, contract researching and service providing organizations. 

 

	2.	Accountability and Reporting 

 The President and Chief Operating Officer will be
accountable to the Chairman of the Board of the Directors. 
  

	3.	Compensation. 

 As full compensation for the Employment Services, PTCI will pay the
Employee, an annual salary of ninety eight thousand and one hundred Canadian Dollars (CA$ 98,100), payable on a monthly basis. In case of well performance the Employee may also be entailed at bonus to be calculated at 30% of annual the Bonus to be
authorized and approved by the Chairman of the Board of the Directors. 
  

	4.	Term. 

 This Agreement will be for an initial term of two years, ending December 31,
2015, beginning on the Effective Date (the “Term”), and may be extended for additional periods, at PTCI’s and with Employee’s consent. 

  
 Protagenic
Therapeutics Inc., 22 Elkhorn Drive, Suite 424, North York, ON, M2K 1J4, Canada 
 www.protagenic.com 

  
 7EX-10.13

 Exhibit 10.13 
  

 
 AMENDMENT TO THE CONSULTING AGREEMENT 

 

			
	 CONSULTANT:
  

Original Contract Date:
  

Duration:
  

Amendement No:
	  	 •     Dr. Dalia Barsyte
  

•     January 01, 2009
  

•     January 01, 2015 - December 31, 2015
  

•     07 (dated of January 30, 2015)

 This amendment is issued: 
  

	1.	To extend the duration of the contact for one more year, whereas Protagenic Therapeutics Canada (2006) Inc. will pay the consultant as per following schedule and amount of work agreed: 

 

	 	•	 	CA$ 1,000 (one thousand Canadian dollars) for 32 hours of work for the month of January, 2015. 

  

	 	•	 	CA$ 1,000 (one thousand Canadian dollars) for 32 hours of work for the month of February, 2015. 

  

	 	•	 	CA$ 1,000 (one thousand Canadian dollars) for 32 hours of work for the month of March, 2015. 

  

	 	•	 	CA$ 1,000 (one thousand Canadian dollars) for 32 hours of work for the month of April, 2015. 

  

	 	•	 	CA$ 1,000 (one thousand Canadian dollars) for 32 hours of work for the month of May, 2015. 

  

	 	•	 	CA$ 1,000 (one thousand Canadian dollars) for 32 hours of work for the month of June, 2015. 

  

	 	•	 	CA$ 1,000 (one thousand Canadian dollars) for 32 hours of work for the month of July, 2015. 

  

	 	•	 	CA$ 1,000 (one thousand Canadian dollars) for 32 hours of work for the month of August, 2015. 

  

	 	•	 	CA$ 1,000 (one thousand Canadian dollars) for 32 hours of work for the month of September, 2015. 

  

	 	•	 	CA$ 1,000 (one thousand Canadian dollars) for 32 hours of work for the month of October, 2015 

  

	 	•	 	CA$ 1,000 (one thousand Canadian dollars) for 32 hours of work for the month of November, 2015. 

  

	 	•	 	CA$ 1,000 (one thousand Canadian dollars) for 32 hours of work for the month of December, 2015. 

  

	2.	All other terms of the original contract shall remain unchanged. 

  

			
	PROTAGENIC THERAPEUTICS CANADA (2006) INC.
		
	By:	 	
		
	Print Name:	 	Robert Ziroyan
	Title:	 	President & Chief Operating Officer
		
	Signature:	 	/s/ Robert Ziroyan
	
	By: Dr. Dalia Barsyte
		
	Print Name:	 	Dalia Barsyte
		
	Signature:	 	/s/ Dalia Barsyte

  
 Protagenic
Therapeutics Canada (2006) Inc., 22 Elkhorn Drive, Suite 424, Toronto, Ontario, M2K 1J4, Canada; 
 e:
infopti@protagenic.com, www.protagenic.com 

  
 1 

 

 
  

			
	 CONSULTANT:
  

EFFECTIVE DATE:
  

TERMINATION DATE:
	  	 •     Dr. Dalia Barsyte
  

•     January 01, 2009
  

•     December 31, 2009

  
  

CONSULTING AGREEMENT 
 THIS CONSULTING
AGREEMENT (together with the Business Terms Exhibit, the “Agreement”) made as of January 01, 2009 (the “Effective Date”) is between Protagenic Therapeutics Canada (2006) Inc., Corporation Number 660068- 9 a
Ontario corporation with a office address at 2 Carlton Street, Suite No.1307, Toronto, Ontario, M5B 1J3, Canada (“PTCI”) and Dr. Dalia Barsyte having a home address at 149 Baker street, Stouffville, Ontario, L4A 1K6, Canada
(Tel: 905.642.4616 (“Consultant”). PTCI desires to have the benefit of Consultant’s knowledge and experience, and Consultant desires to provide consulting services to PTCI, all as provided in this Agreement. 

 

	1.	Definitions. The following terms have the meanings set forth below: 

  

	 	1.1	“Business Terms Exhibit” means the business and financial terms applicable to the Consulting Services (as defined below) set forth in the attached exhibit, as may be amended from time to time by written
agreement of the parties. 

  

	 	1.2	“Confidential Information” means any non-public scientific, technical, financial or business information possessed or obtained by, developed for or given to PTCI which is treated by PTCI as confidential
or proprietary, whether or not labeled or identified as “Confidential”. Confidential Information will include, without limitation, information prepared in full or in part for PTCI by Consultant, Materials and Developments (defined below),
the terms of this Agreement and information about or belonging to PTCI’s suppliers, licensors, licensees, partners, affiliates, customers, potential customers or others. 

 

	 	1.3	“Developments” means concepts, inventions, know-how, techniques, improvements, writings, data, computer software, and Materials (whether or not patentable or subject to copyright or trade secret
protection) that Consultant makes, conceives or reduces to practice, either alone or jointly with others, and that result from the performance of the Consulting Services, and/or result from use of PTCI’s Confidential Information.

  

	 	1.4	“Materials” means all materials furnished by PTCI, all materials developed by Consultant in connection with the Consulting Services, and any materials, the cost of which are reimbursed to Consultant by
PTCI hereunder. Materials include, in the case of biological materials, all progeny and unmodified derivatives of those materials, and in the case of chemical materials, all analogs, formulations, mixtures and compositions of those materials.

  

	 	1.5	“Term” means the term of this Agreement as set forth in the Business Terms Exhibit. 

  

	2.	Consulting Services. PTCI retains Consultant and Consultant agrees to provide consulting services to PTCI as it may from time to time reasonably request and as specified in the Business Terms Exhibit (the
“Consulting Services”). Any changes to the Consulting Services (and any related compensation adjustments) must be agreed to in writing between Consultant and PTCI prior to commencement of the changes. 

 

	3.	Consulting Relationship. Consultant agrees, as a condition of this Agreement, to the following terms: 

  
 Protagenic
Therapeutics Inc., 2 Carlton Street, Suite 1307, Toronto, Ontario, M5B1J3, Canada; 
 e: infopti@protagenic.com, www.protagenic.com 

  
 1 

 

 
  

	 	3.1	Compliance. 

  

	 	a.	With Institution Policies. PTCI recognizes that if the Consultant becomes a faculty member at or employee of a university or hospital (“Institution”), then the Consultant is responsible for ensuring
that any consulting agreement Consultant enters into with industry is not in conflict with the patent, consulting or other policies of Institution. If Consultant is required by Consultant’s Institution to disclose to it any proposed agreements
with industry, Consultant has made that disclosure. If Institution’s prior approval of this Agreement is required by Institution policies, Consultant has obtained that approval. 

 

	 	b.	With Policies and Regulations. In performing the Consulting Services, Consultant will comply with all business conduct, regulatory, and health and safety guidelines or regulations established by PTCI or any
governmental authority with respect to PTCI’s business. 

  

	 	c.	Absence of Debarment. Consultant represents that Consultant has not been debarred, and to the best of Consultant’s knowledge, is not under consideration to be debarred, either by the Health Canada or by the
U.S. Food and Drug Administration from working in or providing services to any pharmaceutical or biotechnology company under the Generic Drug Enforcement Act of 1992. 

 

	 	3.2	Absence of Restrictions. Consultant is under no contractual or other obligation or restriction which is inconsistent with Consultant’s execution of this Agreement or the performance of the Consulting
Services. During the Term, Consultant will not enter into any agreement, either written or oral, in conflict with Consultant’s obligations under this Agreement. Consultant will arrange to provide the Consulting Services in such manner and at
such times so that they will not conflict with Consultant’s responsibilities under any other agreement, arrangement or understanding or pursuant to any employment relationship Consultant has at any time with any third party (including, without
limitation, Institution). 

  

	 	3.3	Confidential Information of Third Parties. The performance of the Consulting Services does not and will not breach any agreement which obligates Consultant to keep in confidence any confidential or proprietary
information of any third party or to refrain from competing, directly or indirectly, with the business of any third party. Consultant will not disclose to PTCI any confidential or proprietary information of any third parties. 

 

	 	3.4	Competitive Activities. During the Term, Consultant will not provide consulting services to any business or entity developing a product or sponsoring a project which competes with a product being developed or
project being sponsored by PTCI for which Consultant is providing Consulting Services. For a period of twelve (12) months after the Term, Consultant will not provide services to any business or entity, other than PTCI, developing a product or
sponsoring a project that is directly related to PTCI IP portfolio at the beginning of the Term. It will not be considered a competitive activity for Consultant to be a member of the faculty or staff of a university, college or other educational or
non-profit research institution. 

  

	4.	Compensation. As full consideration for the Consulting Services rendered under this Agreement, PTCI agrees to pay Consultant and reimburse expenses as set forth in the Business Terms Exhibit.

  

	5.	Developments. 

  

	 	5.1	 Ownership. All Developments will be the exclusive property of PTCI. All Developments that are “Works Made for Hire” as defined both
by the Canadian and the U.S. Copyright Act and other copyrightable works will be deemed, upon creation, to be assigned to PTCI. Consultant will promptly and fully disclose to PTCI all Developments. Consultant will keep and maintain

  
 Protagenic
Therapeutics Inc., 2 Carlton Street, Suite 1307, Toronto, Ontario, M5B1J3, Canada; 
 e: infopti@protagenic.com, www.protagenic.com 

  
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complete written records of all Developments and of all work or investigations done or carried out by Consultant. Consultant may keep one (1) copy of these records in Consultant’s files
solely for reference purposes. Consultant assigns and agrees to assign to PTCI all of Consultant’s right, title and interest in and to any Developments. During and after the Term, Consultant will cooperate fully in obtaining patent and other
proprietary protection for the Developments, all in the name of PTCI and at PTCI’s cost and expense, and, without limitation, will execute and deliver all requested applications, assignments and other documents, and take such other measures as
PTCI will reasonably request, in order to perfect and enforce PTCI’s rights in the Developments. Consultant appoints PTCI its attorney to execute and deliver any such documents on Consultant’s behalf in the event Consultant fails to do so.

  

	 	5.2	Agreement with Institution. This Agreement is made subject to the understanding that Consultant, if becoming an affiliated with an Institution, may be required to fulfill certain obligations, including teaching,
directing laboratory operations, conducting research, and publishing work. It is further understood that Consultant may have signed an agreement concerning inventions with Institution, under which Consultant may be obligated to assign to Institution
certain inventions which arise out of or otherwise relate to Consultant’s work at or for Institution or from Consultant’s use of certain of its facilities or intellectual property. In performing the Consulting Services, Consultant agrees
not to utilize Institution facilities or intellectual property if the result of that use is that any Development will not be assignable solely to PTCI. 

  

	 	5.3	Work at Third Party Facilities. Unless covered by an appropriate agreement between any third party and PTCI, Consultant will not engage in any activities or use any third party facilities or intellectual property
in performing the Consulting Services which could result in claims of ownership to any Developments being made by a third party. 

  

	6.	Confidentiality; Publication. 

  

	 	6.1	Confidentiality. During the Term and for a period of five (5) years thereafter, Consultant will not publish, disseminate or otherwise disclose, use for Consultant’s own benefit or for the benefit of a
third party, any Confidential Information. Consultant will exercise all reasonable precautions to physically protect the confidentiality of the Confidential Information. Consultant may disclose the Confidential Information to a governmental
authority or by order of a court of competent jurisdiction, provided that the disclosure is subject to all applicable governmental or judicial protection available for like material and reasonable advance notice is given to PTCI. The obligations of
non-disclosure will not apply to information which (a) was known to Consultant at the time it was disclosed, other than by previous disclosure by PTCI, as evidenced by Consultant’s written records at the time of disclosure; (b) is at
the time of disclosure or later becomes publicly known under circumstances involving no breach of this Agreement; or (c) is lawfully and in good faith made available to Consultant by a third party who did not derive it, directly or indirectly,
from PTCI. 

  

	 	6.2	Publication. Consultant agrees to submit to PTCI a copy of any proposed manuscript or other materials to be published or otherwise publicly disclosed which contain information or any discussion relating to PTCI
or the Consulting Services, at least thirty (30) days prior to submission for publication or disclosure, to enable PTCI to determine if patentable Developments or any Confidential Information of PTCI would be disclosed. Consultant will
cooperate with PTCI in this respect and will delete from the manuscript or other disclosure any Confidential Information if requested by PTCI, and will assist PTCI in filing for patent protection for any patentable Developments described in those
documents, prior to publication or other disclosure. 

  

	7.	Expiration/Termination. 

  
 Protagenic
Therapeutics Inc., 2 Carlton Street, Suite 1307, Toronto, Ontario, M5B1J3, Canada; 
 e: infopti@protagenic.com, www.protagenic.com 

  
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	 	7.1	Term. This Agreement will commence on the Effective Date and continue for the Term, unless sooner terminated pursuant to the express terms of this Section 7 or extended by mutual written agreement of the
parties. 

  

	 	7.2	Termination for Breach. If either party breaches in any material respect any of its material obligations under this Agreement, in addition to any other right or remedy, the non-breaching party may terminate this
Agreement in the event that the breach is not cured within thirty (30) days after receipt by that party of written notice of the breach. 

  

	 	7.3	Termination by PTCI. Either party may terminate this Agreement (a) immediately at any time upon written notice to the other party in the event of a breach of this Agreement by the other party which cannot be
cured (i.e. breach of the confidentiality obligations) and/or (b) at any time without cause upon not less than fifteen (15) days’ prior written notice to the other party. 

 

	 	7.4	Effect of Expiration/Termination. Upon expiration or termination, neither PTCI nor Consultant will have any further obligations under this Agreement, except (a) the liabilities accrued through the date of
expiration or termination, and (b) the terms and obligations under sections 1, 3.4, 5, 6, 7.4 and 8, will survive. Upon expiration or termination, and in any case upon PTCI’s request, Consultant will promptly return to PTCI all
Confidential Information and copies thereof, except for one (1) copy which Consultant may retain solely for archival purposes. 

  

	8.	Miscellaneous. 

  

	 	8.1	Independent Consultant; Taxes. 

  

	 	a.	Independent Consultant. All Consulting Services will be rendered by Consultant as an independent Consultant and this Agreement does not create an employer-employee relationship between PTCI and Consultant.
Consultant will have no rights to receive any employee benefits, such as health and accident insurance, sick leave or vacation which are accorded to regular PTCI employees. Consultant will not in any way represent himself to be an employee, partner,
joint venturer, agent or officer with or of PTCI. 

  

	 	b.	Taxes. Consultant will pay all required taxes on Consultant’s income from PTCI under this Agreement. Consultant will provide PTCI with Consultant’s taxpayer Identification Number or Social Insurance
number, as applicable. 

  

	 	8.2	Use of Name. Consultant consents to the use by PTCI of Consultant’s name and likeness in written materials and oral presentations to current or prospective customers, partners, investors or others, provided
that the materials or presentations accurately describe the nature of Consultant’s relationship with or contribution to PTCI. 

  

	 	8.3	Notices. All notices must be written and sent to the address or facsimile number identified in this Agreement or a subsequent notice. All notices must be given (a) by personal delivery, with receipt
acknowledged; (b) by facsimile followed by hard copy delivered by the methods under (c) or (d); (c) by prepaid certified or registered mail, return receipt requested; or (d) by prepaid recognized next business day delivery
service. Notices will be effective upon receipt or as stated in the notice. Notices to PTCI must be marked “Attention: Director/President and/or Operations Manager”. 

 

	 	8.4	Assignment. This Agreement is a personal services agreement, and the rights and obligations hereunder, may not be assigned or transferred by either party without the prior written consent of the other party,
except that PTCI may assign this Agreement, in whole or in part, to an affiliated company or in connection with the merger, consolidation, sale or transfer of all or substantially all of its business to which this Agreement relates.

  
 Protagenic
Therapeutics Inc., 2 Carlton Street, Suite 1307, Toronto, Ontario, M5B1J3, Canada; 
 e: infopti@protagenic.com, www.protagenic.com 

  
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	 	8.5	Entire Agreement. This Agreement constitutes the entire agreement of the parties with regard to its subject matter, and supersedes all previous written or oral representations, agreements and understandings
between PTCI and Consultant. 

  

	 	8.6	No Modification. This Agreement may be changed only by a writing signed by both parties. 

  

	 	8.7	Severability. Each provision in this Agreement is independent and severable from the others, and no provision will be rendered unenforceable as a result of any other provision(s) being held to be invalid or
unenforceable in whole or in part. If any provision of this Agreement is invalid, unenforceable or too broad, that provision will be appropriately limited and reformed to the maximum extent permitted by applicable law. 

 

	 	8.8	Applicable Law. This Agreement will be governed by, and construed in accordance with, the laws of the Province of Ontario, Canada, without regard to any choice of law principle that would dictate the application
of the law of another jurisdiction. Any action, suit, or other legal proceeding which is commenced to resolve any matter arising under or relating to any provision of this Agreement will be commenced only in a court of the Province of Ontario (or,
if appropriate, a provincial court located within the Province of Ontario), and PTCI and Consultant each consents to the jurisdiction of such a court. 

  

	 	8.9	Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed to be an original, but all of which shall constitute one and the same
agreement. 

 IN WITNESS WHEREOF, duly authorized representatives of the parties have executed this Agreement as of the
Effective Date. 
  

			
	PROTAGENIC THERAPEUTICS CANADA (2006) INC.
	
	By: President and Operations Manager
		
	Print Name:	 	Robert Ziroyan
		
	Signature:	 	/s/ Robert Ziroyan
		
	Title:	 	
	
	Dr. Dalia Barsyte
		
	Print Name:	 	Dalia Barsyte
		
	Signature:	 	/s/ Dalia Barsyte

  
 Protagenic
Therapeutics Inc., 2 Carlton Street, Suite 1307, Toronto, Ontario, M5B1J3, Canada; 
 e: infopti@protagenic.com, www.protagenic.com 

  
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 BUSINESS TERMS EXHIBIT 

Consulting Agreement with Dalia Barsyte 

1. Scope of Work/Duties and Responsibilities 
 Under the
direct supervision of the PTI Chief Scientific Officer and indirect supervision of PTI/PTCI Directors and President the Consultant will be responsible for: 

Design and oversee the development of assay for measuring TCAP, Radioimmunoassay 

design the RIA assay and procure reagents 

standardize the assay 
 validate
on tissues and/or biological fluids 
 evaluate precision and accuracy 

Radioligand binding assays and in vivo radioADME performed by InvivoPharm 

Organize assays and follow progress 

Initial evaluation of TCAP pharmacokinetics 

Complete pharmacokinetic analysis for IV and SC K37 TCAP and TCAP 

Generate a report on pharmacokinetic parameters 

Initial evaluation of TCAP exposure biomarker assay through CRO 

identification and evaluation of suitable timepoints for biomarker assessment 

provide samples and follow progress 

Oversee monoclonal antibody production through CRO 

testing of the antibody clones 

evaluation for sandwich ELISA 

Peptide synthesis and formulation development 

organize synthesis and follow progress 

schedule initial in vitro screening experiments 

coordinate assay schedule with Behavioral Studies Consultant and CSO 

oversee formulation development 

Ensure that all new formulations comply with clinical guidelines 

Consult with CSO regarding coordination of manufacture of peptides with formulation of peptides 

Coordinate development of receptor assays with CSO 

Evaluate data from the biological assays 

Consult with the CSO regarding results and their significance 

Consult with the CSO and advisory board regarding clinical assays and future development 

Direct activities of one technician involved in carrying out assays 

Prepare summaries, presentations and study reports for the in house studies. 

Prepare budgets associated with supervised activities. 

Liase with CSO regarding coordination of CRO’s associated with ADME and PK analyses. 

2. Accountability and Reporting 
 The
Consultant will be accountable to the PTI Chief Scientific Officer. 
 3. Compensation 

As full compensation for the Consulting Services PTCI will pay the Consultant monthly, as per following schedule and amount of worked agreed: 

 

	1.	$ 4,000 (four thousand dollars) per 128 hours of work for the month of Jan 2009; 

  
 Protagenic
Therapeutics Inc., 2 Carlton Street, Suite 1307, Toronto, Ontario, M5B1J3, Canada; 
 e: infopti@protagenic.com, www.protagenic.com 

  
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	2.	$ 4,000 (four thousand dollars) per 128 hours of work for the month of Feb 2009; 

  

	3.	$ 4,000 (four thousand dollars) per 128 hours of work for the month of Mar 2009; 

  

	4.	$ 4,000 (four thousand dollars) per 128 hours of work for the month of Apr 2009; 

  

	5.	$ 4,000 (four thousand dollars) per 128 hours of work for the month of May 2009; 

  

	6.	$ 4,000 (four thousand dollars) per 128 hours of work for the month of Jun 2009; 

  

	7.	$ 4,000 (four thousand dollars) per 128 hours of work for the month of Jul 2009; 

  

	8.	$ 4,000 (four thousand dollars) per 128 hours of work for the month of Aug 2009; 

  

	9.	$ 4,000 (four thousand dollars) per 128 hours of work for the month of Sep 2009; 

  

	10.	$ 4,000 (four thousand dollars) per 128 hours of work for the month of Oct 2009; 

  

	11.	$ 4,000 (four thousand dollars) per 128 hours of work for the month of Nov 2009; 

  

	12.	$ 4,000 (four thousand dollars) per 128 hours of work for the month of Dec 2009; 

  

	 	•	 	Amounts due under the Agreement will be payable no later than thirty (30) days from PTCI’s receipt and acceptance by President and/or Operations Manager of a written invoice with an expense report and
accompanying supporting documentation (if necessary). Total payment to be made under this contract should not exceed CA$ 48,000 (forty eight thousand dollars). 

4. Term 
 This Agreement will be for a term of one year
(12 months), ending December 31, 2009, beginning on the Effective Date (the “Term”), and may be extended for additional periods, at PTCI’s option and with Consultant’s consent. 

  
 Protagenic
Therapeutics Inc., 2 Carlton Street, Suite 1307, Toronto, Ontario, M5B1J3, Canada; 
 e: infopti@protagenic.com, www.protagenic.com 

  
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