Document:

exv10w20

 

Exhibit 10.20

AMENDED EXECUTIVE EMPLOYMENT AGREEMENT

     THIS AMENDED EXECUTIVE EMPLOYMENT AGREEMENT (the “Agreement”) is made and entered into as of
February 1, 2007 by and between ImaRx Therapeutics, Inc., a Delaware corporation (the “Company”),
and Bradford A. Zakes (“Executive”) and replaces the Executive Employment Agreement between the
parties dated August 22, 2005 (the “Original Agreement”).

     WITNESSETH:

     WHEREAS, the Company desires to retain the services of Executive, and Executive desires to be
employed by the Company, on the terms and conditions of this Agreement.

     NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements set
forth herein, the Company and Executive, intending to be legally bound, hereby agree as follows:

     1. Employment. The Company agrees to employ Executive as President and Chief Executive
Officer of the Company, and Executive accepts such employment and agrees to perform full-time
employment services for the Company, subject to Section 3.2 and the Fourth Amended and Restated
Certificate of Incorporation and Amended and Restated Bylaws of the Company, as amended from time
to time (the “Organizational Documents”), and the resolutions of the Board of Directors of the
Company (the “Board”), for the period and upon the other terms and conditions set forth in this
Agreement.

     2. Term. The term of Executive’s employment hereunder (the “Term”) commenced upon the
date of execution of the Original Agreement and shall continue until this Agreement is terminated
as set forth in Section 5 below.

     3. Position and Duties.

          3.1 Service with the Company. During the Term of this Agreement, Executive
agrees to perform the duties of the President and Chief Executive Officer as may be set forth in
the Organizational Documents and such other duties as the Board may from time to time prescribe
that are consistent with the duties of a President and Chief Executive Officer of a company of the
size and nature of the Company. In addition, during the Term, Executive shall, if elected by the
stockholders or appointed to a vacancy by the Board, serve without any additional compensation on
the Company’s Board.

          3.2 No Conflicting Duties. Executive hereby confirms that he is under no contractual
commitments inconsistent with his obligations set forth in this Agreement, and that during the Term
of this Agreement, he will not render or perform services, or enter into any contract to do so, for
any other corporation, firm, entity or person that are inconsistent with the provisions of this
Agreement or Executive’s fiduciary obligations to the Company. Except as otherwise provided
herein, Executive shall not serve as a director of any other corporation

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(except nonprofit organizations to the extent such service does not materially affect
Executive’s performance of his duties for the Company) without the prior approval of the
Board of Directors.

     4. Compensation and Benefits.

          4.1
Base Salary. (a) As compensation for all services to be rendered by
Executive under this Agreement, the Company shall pay to Executive during the Term an annual
salary of $225,000 (the “Base Salary”). Subject to Section 4.1(b), the Base Salary shall be
reviewed at least annually and changed at the discretion of the Board (or its Compensation
Committee), provided, however, that the Base Salary may not be decreased without the written
consent of the Executive. The Company shall pay the Base Salary to Executive in accordance
with the Company’s normal payroll procedures and policies.

     (b) If Executive’s Base Salary is increased at any time, it shall not thereafter be
decreased during the Term of this Agreement, unless such decrease is the result of a general
reduction (on the same percentage basis) affecting the base salaries of all other executive
officers of the Company and such decrease does not result in a Base Salary of less than $180,000.

          4.2 Annual Bonus. With respect to each full fiscal year until the Termination
Date, Executive shall be eligible to receive bonus awards aggregating up to 50% of Base
Salary annually, payable periodically based on the achievement of pre-determined
milestones established from time to time by the Board (or its Compensation Committee)
pursuant to the Company’s Executive Bonus Plan (as such plan may be amended from time to time
by the Board, in its sole discretion).

          4.3
Stock Options. (a) The Company has previously granted to Executive  various
stock options to purchase shares of the Company’s common stock (the “Shares”),
pursuant to the Company’s 2000 Stock Plan (the “Plan”). As a result of the foregoing
grants, vesting that has occurred thereunder to the date of this Agreement, and vesting
accelerations approved by the Board on March 28, 2006, the options currently held by
Executive are as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Grant	 	Tax	 	No. of	 	Exercise	 	Vesting	 	Vesting	 	Expiration
	Date	 	Character	 	Shares	 	Price	 	Status	 	Schedule	 	Date
	8-22-05
	 	ISO	 	 	72,000	 	 	$	5.00	 	 	22,500 Vested	 	16,500 on 8-22 
of 
2007,
2008 
and 
2009	 	 	8-22-15	 
	12-14-05
	 	ISO	 	 	12,000	 	 	$	6.67	 	 	3,000 Vested	 	3,000 on 12-14

of 
2007, 2008 
and 
2009	 	 	12-14-15	 
	12-12-06
	 	ISO	 	 	91,000	 	 	$	5.00	 	 	None Vested	 	22,750 on 12-12

of 
2007, 2008, 2009 
and 2010	 	 	12-12-16	 

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     (b) In addition to the foregoing outstanding options, the Company has also agreed to
grant to Executive the additional stock options described on Exhibit A hereto, pursuant to
the terms of the 2000 Stock Plan, and in each case subject to satisfaction of the respective
milestones specified on Exhibit A and Executive’s being employed hereunder at the time the
Board determines that such milestone has been satisfied. Such additional options shall be
exercisable at a price equal to the fair market value of the Company’s common stock as determined
by the Board on such date.

     (c) If the Company’s common stock is registered under Section 12 of the Securities Exchange
Act of 1934 (the “Exchange Act”), the Company shall use its good faith efforts to register under
the Securities Act of 1933 on Form S-8 (or any successor form) all common stock issued and/or
issuable under the 2000 Stock Plan, including the Shares subject to the options described above and
all other stock options granted or awarded to Executive under this Agreement or otherwise under the
2000 Stock Plan; and shall use its good faith efforts to qualify such common stock for sale under
such state securities or ‘blue sky’ laws as the Company shall determine are required to issue the
shares of common stock under the 2000 Stock Plan and for the resale of such shares by the
recipients thereof, provided that the Company shall have no obligation to qualify such stock in any
particular jurisdiction in which the Company would be required to execute a general consent to
service of process in effecting such qualification, unless the Company is already subject to
service in such jurisdiction and except as may be required by the Securities Act.

          4.4 Participation in Benefit Plans. Executive shall be included to the extent
eligible thereunder in any and all plans of the Company providing general benefits for the
Company’s executive employees, including, without limitation, medical, dental, vision, short and
long term disability insurance, life insurance, 401(k) plan, sick days, vacation, and holidays, to
the extent the Company makes such plans or benefits available to its executive employees generally.
Executive’s participation in any such plan or program shall be subject to the provisions, rules,
and regulations applicable thereto. In addition, during the Term of this Agreement, Executive shall
be eligible to participate in all non-qualified deferred compensation and similar compensation,
incentive, bonus, profit sharing and stock plans offered, sponsored or established by Company on
substantially the same or a more favorable basis as any other employee of Company.

          4.5 Business Expenses. In accordance with the Company’s policies
established from time to time, the Company will pay or reimburse Executive for all reasonable and
necessary out-of-pocket expenses incurred by him in the performance of his duties under this
Agreement, subject to the presentment of appropriate supporting documentation. During the Term of
this Agreement, the Company shall at its expense provide Executive with reasonable office space and
furnishings (including without limitation desk and lap top computers) at the Company’s principal
executive offices, and a cell telephone.

          4.6 Key Man Life Insurance. During the Term of this Agreement, the Company shall
have the option of purchasing and paying the premiums for a “Key Man” life insurance policy
relating to Executive in a coverage amount determined by the Company, and the Company shall be
named as the beneficiary of such policy. Executive represents and

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warrants that he currently is insurable for such policy on an unrated basis and agrees to fully
cooperate with the Company in obtaining the policy.

     5. Termination.

          5.1 Disability. At the Company’s election, Executive’s employment and this Agreement
shall terminate upon Executive’s becoming totally or permanently disabled for a period of ninety
(90) days or more in any twelve (12) month period. For purposes of this Agreement, the term
“totally or permanently disabled” or “total or permanent disability” means Executive’s inability on
account of sickness or accident, whether or not job-related, to engage in regularly or to perform
adequately his assigned duties under this Agreement and Executive is qualified and eligible to
receive disability benefits under the disability policies maintained by the Company for Executive.

          5.2 Death of Executive. Executive’s employment and this Agreement shall terminate
immediately upon the death of Executive.

          5.3 Termination for Cause. The Company may terminate Executive’s employment and
this Agreement at any time for “Cause” (as hereinafter defined) immediately upon written notice to
Executive. As used herein, the term “Cause” shall mean that Executive shall have: (i) been
convicted of a felony; or (ii) committed an act of fraud, embezzlement, or breach of trust; or
(iii) committed an act of willful misconduct or gross negligence resulting in a material loss to
the Company; or (iv) materially violated any material written Company policy or rules of the
Company, unless cured by Executive within 30 days following written notice thereof to Executive; or
(v) refused to follow the reasonable written directions given by the Board or its designee or
materially breached any covenant or obligation under this Agreement or other agreement with the
Company, unless cured by Executive within 30 days following written notice thereof to Executive.

          5.4 Resignation. Executive’s employment and this Agreement shall terminate on the
earlier of the date that is one (1) month following the written submission of Executive’s
resignation to the Company or the date such resignation is accepted by the Company.

          5.5 Termination Without Cause. The Company may terminate Executive’s employment and
this Agreement without cause upon written notice to Executive. Termination “without cause” shall
mean termination of employment on any basis (including no reason or no cause) other than
termination of Executive’s employment hereunder pursuant to Sections 5.1, 5.2, 5.3, or 5.4.

          5.6 Surrender of Records and Property. Upon termination of his employment with the
Company, Executive shall deliver promptly to the Company all credit cards, computer equipment,
cellular telephone, records, manuals, books, blank forms, documents, letters, memoranda, notes,
notebooks, reports, data, tables, calculations or copies thereof, that are the property of the
Company and that relate in any way to the business, strategies, products, practices, processes,
policies or techniques of the Company, and all other property, trade secrets and confidential
information of the Company, including, but not limited to, all documents that in whole or in part
contain any trade secrets or confidential information of the Company that in any

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of these cases are in his possession or under his control, and Executive shall also remove all
such information from any personal computers that he owns or controls.

     6. Compensation Upon the Termination of Executive’s Employment.

          6.1 In the event that Executive’s employment and this Agreement are terminated pursuant to
Section 5.1 (Disability), 5.3 (Cause), or 5.4 (Resignation), then Executive shall be entitled to
receive Executive’s then current Base Salary through the date his employment is terminated, and
such other amounts that accrued prior to the termination date and are required to be paid to him
pursuant to any employee benefit plan in accordance with such plan and/or by law, but no other
compensation of any kind or amount.

          6.2 In the event Executive’s employment and this Agreement are terminated pursuant to Section
5.2 (Death), Executive’s beneficiary or a beneficiary designated by Executive in writing to the
Company, or in the absence of such beneficiary, Executive’s estate, shall be entitled to receive
Executive’s then current Base Salary through the end of the month in which his death occurs, and
such other amounts that accrued prior to the termination date and are required to be paid to him
pursuant to any employee benefit plan in accordance with such plan and/or by law, but no other
compensation of any kind or amount.

          6.3 Unless Section 7 applies, in the event Executive’s employment and this Agreement are
terminated by the Company pursuant to Section 5.5 (Without Cause) or by Executive for “Good Reason”
(as defined below), (A) the Company shall pay to Executive, as a severance allowance, his then
current monthly. Base Salary for the six (6) month period following the date of termination, paid
on the Company’s regular paydays throughout that 6-month period, and such other salary that accrued
prior to the termination date and amounts required to be paid to him pursuant to any employee
benefit plan in accordance with such plan and/or by law; and (B) Executive shall receive
accelerated vesting for twelve (12) months from the date of Executive’s termination for all stock
options granted by the Company to Executive before or after the Commencement Date, and extension of
the option exercise period for an additional twelve (12) months beyond the period set forth in the
governing option documents for such exercise, provided, however, that the period for exercise of
such stock options shall not be extended beyond the date on which they would have terminated had
Executive continued to be employed by the Company; but no other compensation or benefits of any
kind. Executive shall be entitled to receive these benefits and payments only if he complies with
his continuing obligations to the Company as set forth in this Agreement, provided, however, that
the Company shall not deny any such benefits unless it has provided written notice to Executive of
any claimed breach of such continuing obligations, and Executive has failed to cure each such
breach within fifteen days after receipt of such written notice of breach; and the exercise period
of any such options shall be tolled during such fifteen (15) day period or any longer period
required to resolve any disputed claim of breach of such continuing obligations, provided, that
such stock options shall not be extended beyond the date on which they would have terminated had
Executive continued to be employed by the Company.

          6.4 The provisions of this Section 6 shall not affect Executive’s participation in or
terminating distributions and vested rights under, any pension, profit sharing, insurance or

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other employee benefit plan of the Company to which Executive is entitled pursuant to the terms of
such plans.

     7. Change
in Control. In the event a Change in Control (as defined below)
occurs and, in the twelve month period preceding or following the Change in Control, Executive’s employment
and this Agreement are terminated by the Company or its successor, assigns or transferee pursuant
to Section 5.5 (Without Cause) or by Executive for “Good Reason” (as defined below), then the
Company shall, within thirty (30) days after occurrence of the last of these conditions (the
“Trigger Date”), pay Executive a lump sum amount equal to fifty percent (50%) of Executive’s then
current annual Base Salary (less applicable withholdings). In addition, one hundred percent (100%)
of Executive’s unvested options (whether granted before or after the Commencement Date) as of the
Trigger Date, shall automatically vest as of the Trigger Date
and the exercise period for all such
stock options shall be extended an additional twelve (12) months (but in any case not beyond the
date on which they would have terminated had Executive continued to be employed by the Company).

          7.1 Definition of Change in Control. For purposes of this Agreement, a “Change in
Control” shall be deemed to have occurred if, at any time during the Term, any of the following
events occurs:

               7.1.1 if the Company does not have a class of securities registered under Section 12 of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”):

               7.1.1.1
any person, as that term is used in Section 13(d) and Section 14(d)(2) of the
Exchange Act, becomes a beneficial owner (as defined in Rule 13d-3 under the Exchange Act or
any successor rule or regulation), directly or indirectly, of securities of the Company
representing 50% or more of the combined voting power of the Company’s then outstanding
Voting Stock, as defined below, provided, however, that for purposes of this
paragraph, the term “person” shall exclude (A) a trustee or other fiduciary holding
securities under an employee benefit plan of the Company or any of its subsidiaries, (B) a
person who beneficially owns 25% or more of the Company’s outstanding Voting Stock on the
Effective Date, or (C) any person who becomes such a beneficial owner in connection with a
bonafide financing transaction.

               7.1.1.2 the Company is merged, consolidated or reorganized into or with another
corporation or other legal person (an “Acquiring Person”) or securities of the Company are
exchanged for securities of an Acquiring Person, and as a result of such merger,
consolidation, reorganization or exchange less than a majority of the combined voting power
of the then outstanding securities of the Acquiring Person immediately after such
transaction is held, directly or indirectly, in the aggregate by the holders of securities
entitled to vote generally in the election of directors (“Voting Stock”) of the Company
immediately prior to such transaction;

               7.1.1.3 the Company, in any transaction or series of related transactions, sells or
otherwise transfers, directly or indirectly, all or substantially all of its assets, on a
consolidated basis, to an Acquiring Person, and less than a majority of the combined voting
power of the then outstanding securities of the Acquiring Person

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immediately after such sale or transfer is held, directly or indirectly, in the aggregate
by the holders of Voting Stock of the Company immediately prior to such sale or transfer;
or

               7.1.1.4 during any period of two consecutive years, individuals who at the beginning
of any such period constitute the directors of the Company cease for any reason to
constitute at least a majority thereof, unless the election, or the nomination for
election by the Company’s stockholders, of each director of the Company first elected
during such period was approved by at least a majority vote of the directors of the
Company then still in office who were directors of the Company at the beginning of any
such period;

               or

               7.1.2 if the Company has a class of securities registered under Section 12 of the
Exchange Act:

               7.1.2.1 any person, as that term is used in Section 13(d) and Section 14(d)(2) of the
Exchange Act, becomes, is discovered to be, or files a report on Schedule 13D or 14D-1 (or
any successor schedule, form or report) disclosing that such person is, a beneficial owner
(as defined in Rule 13d-3 under the Exchange Act or any successor rule or regulation),
directly or indirectly, of securities of the Company representing 25% or more of the
combined voting power of the Company’s then outstanding Voting Stock, provided,
however, that for purposes of this paragraph, the term “person” shall exclude (A) a trustee
or other fiduciary holding securities under an employee benefit plan of the Company or any
of its subsidiaries, (B) a person who becomes such a beneficial owner in connection with
the Company’s initial public offering of common stock or (C) any person who was a
shareholder of the Company immediately prior to the Company’s initial public offering of
common stock; or

               7.1.2.2 any of the events described in Sections 7.1.1.2, 7.1.1.3 or 7.1.1.4 (the latter
being modified to refer to such a change of a majority of the Board of Directors during any
one year period).

Notwithstanding the foregoing, a transaction shall not constitute a Change in Control if its sole
purpose is to change the state of the Company’s incorporation or to create a holding company that
will be owned in substantially the same proportions by the persons who held the Company’s
securities immediately before such transaction.

          7.2 Definition of Good Reason. As used in this Agreement, “Good Reason” means any of
the following: (i) a material reduction in Executive’s title, status, authority, or responsibility
at the Company, provided that a reduction of Executive to the title, authority and responsibilities
of Chief Operating Officer or any other “C-level” office relating to a principal business function
or unit shall not of itself constitute Good Reason; or (ii) a material reduction in the salary or
other benefits in effect for the Executive, provided comparable reductions have not been made in
the salary or other benefits of the other members of senior management of the Company; or (iii)
except with Executive’s prior written consent, relocation of Executive’s principal place of
employment to a location more than 25 miles from the Company’s executive

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offices in Tucson, Arizona; or (iv)) any breach by the Company of its material obligations under
this Agreement unless such breach is cured within 30 days after written notice of breach from
Executive.

     8. Release. As a condition precedent to the Company’s obligation to provide
Executive with the amounts set forth in Section 6.3 or Section 7, Executive must first execute and
deliver to the Company a mutual legal release in the form attached hereto as Exhibit B,
with such changes as the Company deems necessary in order to maintain the breadth of such release
in the event of changes in applicable laws, rules or regulations, it being the Latent of the
parties that the release be as broad as possible.

     9. Ventures. If, during the Term of this Agreement, Executive is engaged in or
associated with the planning or implementing of any project, program, or venture involving the
Company and a third party or parties, all rights in the project, program, or venture shall belong
to the Company and shall constitute a corporate opportunity belonging exclusively to the Company.
Except as approved in writing by the Board, Executive shall not be entitled to any interest in such
project, program, or venture or to any commission, finder’s fee, or other compensation in
connection therewith other than the Base Salary to be paid to Executive as provided in this
Agreement.

     10. Restrictions.

          10.1 Definitions. For purposes of this Agreement, the following terms shall
have the following meanings:

                  10.1.1 “Trade Secrets” means information that is not generally known about the Company or its
business, including without limitation about its products, recipes, projects, designs,
developmental or experimental work, computer programs, data bases, know-how, processes, business
partners, manufacturers, customers, suppliers, business plans, marketing plans and strategies,
financial or personnel information, and information obtained from third parties under
confidentiality agreements. “Trade Secrets” also means formulas, patterns, compilations, programs,
devices, methods, techniques, or processes that derive independent economic value, actual or
potential, from not being generally known to the public or to other persons who can obtain economic
value from its disclosure or use, and is the subject of efforts that are reasonable under the
circumstances to maintain its secrecy. In particular, the parties agree and acknowledge that the
following list, which is not exhaustive and is to be broadly construed, enumerates some of the
Company’s Trade Secrets, the disclosure of which would be wrongful and would cause irreparable
injury to the Company: (i) pharmaceutical manufacturing; (ii) formulation technology; (iii) pricing
information; (iv) product development, marketing, sales, customer, manufacturer and supplier
information related to any Company product or service available commercially or in any stage of
development during Executive’s employment with the Company; and (v) Company marketing and business
strategies, ideas, and concepts. Executive acknowledges that the Company’s Trade Secrets were and
are designed and developed by the Company at great expense and over lengthy periods of time, are
secret, confidential, and unique, and constitute the exclusive property of the Company.

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               10.1.2 “Restricted Field” means the business of developing, manufacturing, licensing and selling (i) treatment of vascular thrombosis comprising
thrombolytic drugs with or without bubbles and ultrasound, and (ii) oxygen delivery with bubbles
or fluorocarbon emulsions.

               10.1.3 “Non-Competition Period” means a period of 12 months after the termination of
Executive’s employment with the Company unless a court of competent jurisdiction determines that
that Period is unenforceable under applicable law because it is too long, in which case the
Non-Competition Period shall be for the longest of the following periods
that the court determines is reasonable under the circumstances:
11 months, 10 months, 9 months, 8
months, 7 months, or 6 months after the termination of Executive’s employment with the Company.

               10.1.4 “Business Territory” means the entire United States, unless a court of
competent jurisdiction determines that that geographic scope is unenforceable under applicable law
because it is too broad, in which case the Business Territory shall be amended by eliminating
geographical areas and states from the following list until the Business Territory is determined
to be reasonable: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut,
Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas,
Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri,
Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North
Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota,
Tennessee, Texas, Utah, Vermont, Virginia, Washington, Washington, District of Columbia, West
Virginia, Wisconsin, Wyoming, Pima County, Arizona, Maricopa County, Arizona, Tucson, Arizona,
Phoenix, Arizona. The parties acknowledge and agree that if any of the geographic areas or States
listed above are required by law to be eliminated, it would be fair and appropriate to do so in
the inverse order of the volume of revenue received or projected to be received by the Company
from such area or State at the time of determination.

               10.1.5 “Non-Solicitation Period” means a period of 12 months after the termination of
Executive’s employment with the Company.

          10.2 Non-Disclosure Obligations. Executive shall not at any time during the period
specified in Section 4.A. of the Invention and Confidential Information Agreement attached hereto
as Exhibit C, without the express written consent of a superior officer or the Board of
the Company, publish, disclose, or divulge to any person, firm or corporation, or use directly or
indirectly for the Executive’s own benefit or for the benefit of any person, firm, corporation or
entity other than the Company, any Trade Secrets of the Company.

          10.3 Non-Competition Obligations. Executive acknowledges the substantial amount of
time, money, and effort that the Company has spent and will spend in developing its products and
other strategically important information (including Trade Secrets), and agrees that during
Executive’s employment with the Company hereunder and during the Non-Competition Period, Executive
will not, alone or with others, directly or indirectly, as an employee, agent, consultant,
advisor, owner, manager, lender, officer, director, employee, partner, stockholder, or otherwise,
engage in any Restricted Field activities in the Business Territory, nor have any such

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relationship with any person or entity that engages in Restricted Field activities in the Business
Territory; provided, however, that nothing in this Agreement will prohibit Executive from owning a
passive investment of less than one percent of the outstanding equity securities of any company
listed on any national securities exchange or traded actively in any national over-the-counter
market so long as Executive has no other relationship with such company in violation of this
Agreement. The Non-Competition Period set forth in this Section 10.3 shall be tolled during any
period in which the Executive is in breach of the restriction set forth in this Section 10.3.

          10.4 Agreement Not to Solicit Customers. Executive agrees that during Executive’s
employment with the Company hereunder and during the Non-Solicitation Period, Executive will not,
either directly or indirectly, on Executive’s own behalf or in the service or on behalf of others,
solicit, divert, or appropriate, or attempt to solicit, divert, or appropriate, to any business
that engages in Restricted Field activities in the Business Territory (i) any person or entity
whose account with the Company was sold or serviced by or under the supervision of Executive during
the twelve (12) months preceding the termination of such employment, or (ii) any person or entity
whose account with the Company has been directly solicited at least twice by the Company within the
year preceding the termination of Executive’s employment (the “Customers”). The Non-Solicitation
Period set forth in this Section 10.4 shall be tolled during any period in which the Executive is
in breach of the restriction set forth in this Section 10:4.

          10.5 Agreement Not to Solicit Employees. Executive agrees that during Executive’s
employment with the Company hereunder and during the Non-Solicitation Period, Executive will not,
either directly or indirectly, on Executive’s own behalf or in the service or on the behalf of
others solicit, divert, or hire away, or attempt to solicit, divert, or hire away any person then
employed by the Company, nor encourage anyone to leave the Company’s employ. The Non-Solicitation
Period set forth in this Section 10.5 shall be tolled during any period in which the Executive is
in breach of the restriction set forth in this Section 10.5.

          10.6 Defamatory Statements. Executive agrees that during Executive’s
employment with the Company hereunder and thereafter, he will not, either directly or indirectly,
defame the reputation, character, or image of the Company or its products, services, employees,
directors, or officers.

          10.7 Reasonableness. Executive and the Company agree that the covenants set forth in
this Agreement are appropriate and reasonable when considered in light of the nature and extent of
the Company’s business. Executive further acknowledges and agrees that: (i) the Company has a
legitimate interest in protecting the Company’s business activities and its current, pending, and
potential Trade Secrets; (ii) the covenants set forth herein are not oppressive to Executive and
contain reasonable limitations as to time, scope, geographical area, and activity; (iii) the
covenants do not harm in any manner whatsoever the public interest; (iv) Executive’s chosen
profession, trade, or business is in manufacturing, developing, and marketing
pharmaceutical drugs, products and devices (the “Profession”); (v) the Restricted Field is only a
very small or limited part of the Profession, and Executive can work in many different jobs in
Executive’s Profession besides those in the Restricted Field; (vi) the covenants set forth herein
do not completely restrain Executive from working in Executive’s Profession, and Executive can earn
a livelihood in Executive’s Profession without violating any of the covenants set forth

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herein; (vii) Executive has received and will receive substantial consideration for agreeing
to such covenants, including without limitation the consideration to be received by Executive
under this Agreement; (viii) if Executive were to work for a competing company that engages in
activities in the Restricted Field, there would be a substantial risk that Executive would
inevitably disclose Trade Secrets to that company; (ix) the Company competes with other
companies that engage in Restricted Field activities in the Business Territory, and if
Executive were to engage in prohibited activities in the Restricted Field within the Business
Territory, it would harm the Company; (x) the Company expends considerable resources on
hiring, training, and retaining its employees and if Executive were to engage in prohibited
activities during the Non-Solicitation Period, it would harm the Company; and (xi) the Company
expends considerable resources acquiring, servicing, and retaining its Customers and if
Executive were to engage in prohibited activities during the Non-Solicitation Period, it would
harm the Company.

     11. Other Agreements. Executive reaffirms Executive’s obligations set forth in the
Invention and Confidential Information Agreement attached hereto as
Exhibit C, which
Executive has executed and delivered herewith. Executive further acknowledges and agrees that he
will comply with all other Company policies and procedures.

     12. Assignment. This Agreement shall not be assignable, in whole or in part, by
either party without the written consent of the other party, except that the Company may, without
the consent of Executive, assign its rights and obligations under this Agreement to any
corporation, firm or other business entity (i) with or into which the Company may merge or
consolidate, (ii) to which the Company may sell or transfer all or substantially all of its assets
or (iii) of which at least a majority of the equity investment and of the voting control is owned,
directly or indirectly, by, or is under common ownership with, the Company. Upon such assignment
by the Company, the Company shall exercise commercially reasonable efforts to
obtain the assignees’ written agreement enforceable by Executive to assume and perform, from
and after the date of such assignment, the terms, conditions, and provisions imposed by
this Agreement upon the Company.

     13. Other Provisions.

          13.1 Governing Law. This Agreement is made under and shall be governed by and
construed in accordance with the laws of the State of Arizona without reference to conflicts of
law provisions thereof.

          13.2
Injunctive Relief. Executive agrees that it would be difficult to
compensate the Company fully for damages for any violation of the provisions of this Agreement.
Accordingly, Executive specifically agrees that the Company shall be entitled to temporary and
permanent injunctive relief to enforce the provisions of this Agreement. This provision with
respect to injunctive relief shall not, however, diminish the right of the Company to claim and
recover damages in addition to injunctive relief.

          13.3 Prior Agreements. This Agreement and its exhibits contain the entire agreement
of the parties relating to the subject matter hereof and supersedes all prior agreements and
understandings with respect to such subject matter, including prior option agreements

11

 

relative thereto, and the parties hereto have made no agreements, representations, or warranties
relating to the subject matter of this Agreement which are not set forth herein.

          13.4 Withholding Taxes and Right of Offset. The Company may withhold from all
payments and benefits under this Agreement all federal, state, city, or other taxes as shall be
required pursuant to any law or governmental regulation or ruling. Executive agrees that the
Company may offset any payments owed to Executive pursuant to this Agreement by any amounts owed by
Executive to the Company.

          13.5 Amendments. No amendment or modification of this Agreement shall be deemed
effective unless made in writing signed by Executive and the Company.

          13.6 No Waiver. No term or condition of this Agreement shall be deemed to have been
waived nor shall there be any estoppel to enforce any provisions of this Agreement, except by a
statement in writing signed by the party against whom enforcement of the waiver or estoppel is
sought. Any written waiver shall not be deemed a continuing waiver unless specifically stated,
shall operate only as to the specific term or condition waived, and shall not constitute a waiver
of such term or condition for the future or as to any act other than that specifically waived.

          13.7 Severability. To the extent any provision of this Agreement shall be invalid or
unenforceable, it shall be considered deleted from this Agreement and the remainder of such
provision and of this Agreement shall be unaffected and shall continue in full force and effect.

          13.8 Indemnification. Executive shall be entitled as an officer and director to be
pindemnified by the Company under the Organizational Documents, as set forth therein, and to.
receive the benefits, if any, of any director and officer liability insurance obtained by the
Company in its discretion from time to time, subject to the terms, provisions and conditions of any
such insurance.

          13.9 Headings. The headings in this Agreement are included solely for reference
purposes and shall not be considered in the interpretation or construction of this Agreement.

          13.10 Notices. All notices, requests, demands and other communications under this
Agreement shall be in writing and shall be delivered personally, by overnight courier or similar
means, by United States certified or registered mail, return receipt requested, postage prepaid, or
sent by facsimile transmission with written confirmation of receipt, at the addresses specified
below or such other addresses as the parties may designate by like notice. Any such notice shall be
effective upon receipt if delivered personally, by overnight courier or by United States certified
or registered mail, or on the next business day following transmittal if sent by facsimile
transmission.

12

 

	 	 	 	 	 
	 

	 	If to the
Company:
	 	ImaRx Therapeutics, Inc.

1635 East 18th Street

Tucson, AZ 85719

Attn: Chairman of the Board

Telephone: 520-770-1259

Facsimile: 520-791-2437
	 
	 	 	 	 
	 

	 	copy to:
	 	DLA Piper

701 Fifth Ave., Suite 7000

Seattle, Washington 98104

Attn: John M. Steel, Esq.

Telephone: (206) 839-4800

Facsimile: (206) 839-4801

	 
	 	 	 	 
	 

	 	If to Executive:
	 	Bradford A. Zakes

1220 W. Saddlehorn Dr.

Oro Valley, AZ 85704

Telephone 520-975-5024

          13.11 No Mitigation Obligation. It will be difficult, and may be impossible, for
Executive to find reasonably comparable employment following the termination of Executive’s
employment with the Company, and the noncompetition covenant contained in Section 10.1 hereof will
further limit the employment opportunities for Executive. Accordingly, the parties hereto,
expressly agree that the payments provided for in Section 6.3 and Section 7 by the Company to
Executive will be liquidated damages, and that Executive shall not be required to seek other
employment, or otherwise, to mitigate any payment provided for hereunder.

          13.12 Remedies Cumulative. Remedies under this Agreement of either party hereto are
in addition to any remedy or remedies to which such party is entitled or may become entitled at law
or in equity.

          13.13 Attorneys’ Fees. In the event suit is brought to enforce the terms of this
Agreement or to collect any moneys due hereunder, or to collect money damages for breach hereof,
the prevailing party shall be entitled to recover, in addition to any other remedy, reimbursement
for reasonable attorneys’ fees, court costs, costs of investigation and other related expenses
incurred in connection therewith.

          13.14 Counterparts. This Agreement may be executed in any number of counterparts,
all such counterparts shall be deemed to constitute one and the same instrument, and each of said
counterparts shall be deemed an original hereof.

          13.15 Survivability. Sections 4.3, 6, 7, 8, 10 and 13 of this Agreement shall
survive the termination of this Agreement and the termination of Executive’s employment with the
Company.

13

 

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and
year first set forth above.

	 	 	 	 	 	 	 	 	 
	 	 	“Company”:	 	ImaRx Therapeutics, Inc.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:

Name:
	 	/s/ Thomas W. Pew
 

Thomas W. Pew
	 	 
	 

	 	 	 	Title:	 	Compensation Committee Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	“Executive”:	 	/s/ Bradford A. Zakes	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Bradford A. Zakes	 	 

14

 

Exhibit A

Executive Option Grant Milestones

	 	 	 	 	 
	Grant Milestones	 	Shares	 
	Clinical: Completion of enrollment in the SonoLysis Combo-therapy
(with tPA) Phase 1-2 Trial by 12/13/2007 (the “Clinical Target Date”)
	 	 	50,000	 
	 
	 	 	 	 
	If completed after the Clinical Target Date but before 3/31/2008 (the
“Clinical Secondary Date”), a prorated number of options will be granted
as determined by multiplying 50,000 by a fraction, the numerator of which
is the number of days remaining between the actual completion date and
the Clinical Secondary Date, and the denominator of which is 91 (being
the number of days between the Clinical Target Date and the Clinical
Secondary Date). If completed after the Clinical Secondary Date, no
options will be granted for this Milestone.
	 	 	 	 
	 
	 	 	 	 
	Business Development: Close a SonoLysis development partnership that
the Board (in its discretion) considers significant enough to satisfy this
Milestone, by 6/30/2007 (the “BusDev Target Date”).
	 	 	50,000	 
	 
	 	 	 	 
	If the closing of a partnership that the Board determines satisfies this
Milestone occurs after the BusDev Target Date but before 8/31/2007 (the
“BusDev Secondary Date”), a prorated number of options will be granted
as determined by multiplying 50,000 by a fraction, the numerator of
which
is the number of days remaining between the actual closing and the
BusDev Secondary Date, and the denominator of which is 62 (the number
of days between the BusDev Target Date and the BusDev Secondary
Date). If the closing date is after the BusDev Secondary Date, no options
will be granted for this Milestone.
	 	 	 	 
	 
	 	 	 	 
	Finance: Achieve either of the following:
	 	 	 	 
	1)     
By 7/31/2007, obtain capital sufficient (in the judgment of the
Board) to fund the Company’s cash flow needs until
12/31/2008; or

	 	 	50,000	 
	2)     Complete an IPO by 4/1/2008

	 	 	 	 

 

 

Exhibit B

Form of Release

 

 

IMARX THERAPEUTICS, INC.

AGREEMENT FOR THE RESOLUTION OF ALL DISPUTES

ARISING FROM THE EMPLOYMENT RELATIONSHIP

THROUGH MEDIATION AND ARBITRATION

I. SUBJECT AND SCOPE OF AGREEMENT

In order to expedite the resolution of employment related disputes
and to minimize the expense of such disputes for both ImaRx Therapeutics, Inc, (the
Company) and Bradford A. Zakes      (the employee), thereby mitigating the disruption of work
and workplace morale which accompanies such disputes, it is hereby
agreed that all
disputes, controversies, claims and matters in question arising out of or relating to
the employment relationship between the Company and the employee which are not resolved
through the “grievance procedure” stated in the Company’s Employee
Handbook, shall be subject to the exclusive, final, binding, speedy, inexpensive and
impartial conditions and procedures stated herein. To the extent permitted by applicable
law, these procedures shall constitute the sole and exclusive method for the resolution of
any claim between the Company and any employee, arising out of the employment relationship
and there shall be no recourse to court with or without a jury
trial. The parties agree to
promptly move to dismiss any such court proceeding if commenced.

Claims covered by this Agreement include claims based on alleged breach
of any employment agreement or promise, breach of implied covenants of

Page 1

 

good faith
and fair dealing, alleged discrimination or harassment and/or alleged
breach of any public policy; wrongful discharge under statutory law and common law;
employment discrimination and/or violations based on federal, state and local statutes,
ordinances or governmental regulations including, but not limited to those based on Title
VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Americans with Disabilities Act (ADA), the Age Discrimination in Employment Act
(ADEA), the Family and Medical Leave Act (FMLA), the Workers Adjustment and Retraining
Notification Act (WARN); retaliatory discharge or other action, tortious
conduct; contractual violations; other statutory claims and disputes.

This Agreement also applies to any claims or counterclaims that the
Company may have against the employee.

II. PROCEDURES — MEDIATION

The party
initiating these procedures shall be referred to herein as “ the claimant or
grievant.”

	 	1.	 	The claimant shall, within seven (7) days of the
specific incident or situation giving rise to the dispute, submit to his/her
supervisor or to
the Human Resources Manager if the claimant is an employee, or to the
employee involved if the claimant is the Company, in writing, the subject of
the dispute

Page 2

 

	 	 	 	and his/her contentions with respect to it. A written response shall be provided within three (3) days.1
	 
	 	2.	 	If the response is unsatisfactory, the claimant shall, within three
(3) days of receipt of the written response or of the
default, demand in
writing that the dispute be submitted to nonbinding mediation. If the dispute
involves termination of employment, the claimant shall have the option to
proceed directly to arbitration. (See III below).
	 
	 	3.	 	The mediation conference(s) shall be held before a mediator
selected from a list of five mediators provided by the Lex Mundi College of
Mediators, or by any other entity agreed upon by the parties and completed
within thirty (30) days of the demand. Within two (2) days of
receipt of a timely written demand for mediation, (or within two (2) days of
its issuance of such demand when the company is the claimant) the Company
shall request a list of five mediators who reside within 1000 miles of the
situs of the dispute from Lex Mundi

 

			
	1	 	Unless otherwise specified, “days” herein means calendar days. A document
is deemed delivered by the sender and received by the addressee at
the time it
is postmarked or hand-delivered to the addressee’s workstation. The time limits
established in this policy are to be strictly enforced. However, any deadline may be
extended by written agreement of the grievant and the Company.

Page 3

 

	 	 	 	College of Mediators or from any other entity agreed upon by the
parties. The parties shall select a mediator from the list provided by Lex
Mundi, by each alternatively striking 2 names from said list. The remaining
mediator shall mediate the dispute. The parties shall execute the mediation
agreement required by the mediator selected.
	 
	 	4.	 	At the mediation conference(s) the spokesperson for the Company
will be an attorney or other person designated by the Company. The claimant’s
spokesperson will be either himself or herself or an attorney employed by the
claimant for that purpose.
	 
	 	5.	 	The claimant and his or her supervisor will normally attend the
mediation conference(s). Attendance by others at the mediation conference(s)
shall be limited to those people actually involved in the mediation process.
	 
	 	6.	 	All written material presented to the mediator or to the other
party shall be returned to the party presenting the material at the
termination of the mediation conference(s).
	 
	 	7.	 	Proceedings before the mediator shall be informal in nature. The
issue mediated will be the same as the issue the parties

Page 4

 

	 	 	 	have failed to resolve through this process. The rules of evidence will not
apply, and no record of the mediation conference(s) shall be made, except
that the mediator may make notes for the purpose of aiding the mediation
process.
	 
	 	8.	 	The mediator may meet separately with the parties during the
mediation conference(s) but will not have the authority to compel the
resolution of the dispute.
	 
	 	9.	 	The Company and the employee at the mediation conference(s) may
accept the resolution proposed by the mediator and if accepted at the
conference(s) such settlement or any settlement resulting from the
conference(s) shall be in writing and binding upon the parties and dispose of
the entire dispute but shall not be precedent setting.
	 
	 	10.	 	If no settlement is reached during the mediation conference(s),
the mediator shall provide the parties with an immediate oral advisory opinion,
unless both parties agree that no opinion shall be provided. The
mediator shall state the basis for his or her advisory opinion.
	 
	 	11.	 	The Company shall bear up to $ 400.00 of compensation and
expenses of the mediator and the general administrative

Page 5

 

expenses of the mediation conference(s). Expenses in excess of
this shall be divided equally between the parties.

III.
PROCEDURES — ARBITRATION

1. Submission to Arbitration

If the mediation does not resolve the dispute or, in cases of termination of employment, if
the claimant elected to bypass the mediation process, either party may submit the dispute
to arbitration, if further relief is sought. Such submission shall be
in writing, within
ten (10) days of the last mediation conference or of the claimant’s election
to bypass the mediation, and shall state with specificity the issues to be submitted to
arbitration and the relief sought. Copies of the submission and demand for arbitration
shall be served by registered mail on the other party to the dispute and simultaneously
upon the local office of the Federal Mediation and Conciliation Service (FMCS), or at the
requesting party’s option, upon the local office of the American Arbitration Association
(AAA).

2. Selection of Arbitrator

With the submission, the FMCS or AAA shall be requested by the
party seeking arbitration to provide a list of five arbitrators. Unless the parties can
otherwise agree to appoint an arbitrator, the arbitrator shall be selected no later than
five days after receipt by the parties of the list in the same method used for the
selection of the mediator.

Page 6

 

3. Arbitration Process

The arbitration process shall be under the provisions of the current American
Arbitration Association, National Rules for the Resolution of Employment Disputes in
effect at the time of the submission or under such procedures as are determined by the
arbitrator. Copies of the pertinent procedural rules shall be obtained by the party
submitting the dispute to arbitration and provided to the other party. Should a
discrepancy arise between said procedural rules and the provisions herein, the latter
shall prevail. At the hearing, all witnesses shall testify under oath and the hearing and
record or the proceeding shall be confidential and not open to the public except to the
extent that; (a) the parties otherwise agree in writing, and (b) may be appropriate in
subsequent proceedings between the parties. A record of the hearing shall be made at the
election of either party and at the Company’s expense by verbatim transcription. The
arbitrator shall maintain possession of the record for at least two years after issuing
the award. No person serving as a mediator between the parties may serve as arbitrator.
Neither party may at the arbitration hearing refer to presentations made by the other at
the mediation conference (s), the fact that such conference(s) were held, or any
statements made by the mediator.
Any such references shall be disregarded by the arbitrator. Intentional or
repeated references to matters disclosed only during mediation shall
constitute cause for the arbitrator, in his or her discretion, to summarily
find against the party making such references.

Page 7

 

4. Representation at Hearing and Evidence

Any such party to the arbitration may be represented by counsel during the
arbitration proceedings. The order of presentation and any disputes that may arise with
respect to the relevance and materiality of the evidence offered shall be resolved by the
arbitrator. Conformity with the rules of evidence shall not be required.

5. Arbitrator’s Discretion

The
arbitrator may, in his/her discretion, confer with any party or person and
otherwise conduct his/her own investigation outside the hearing process for the purpose of
obtaining written or oral information. The hearing may be reopened on the arbitrator’s
initiative or upon application of a party, at any time before the award is made. The
arbitration shall have thirty (30) days from the closing of the hearing within which to
render the award, The arbitrator shall have no authority to add to, subtract from, nor
modify the policies describing the employment relationship. The relief awardable by the
arbitrator shall, except where he/she finds a statutory violation, be limited to
reinstatement, if the claimant is an employee who had been terminated and the earnings that
said claimant would otherwise have earned (back-pay), less any unemployment compensation or
other compensation for services that the claimant may have received from any source during
the period. In cases where the Company had terminated the relationship, if the claimant had
failed thereafter to make diligent efforts to apply or look for a

Page 8

 

position which would provide compensation for his services, no back-pay shall
be awarded for that period of time. Where the arbitrator finds a statutory violation, the
remedy shall be limited to those provided for in the pertinent statute.

6. Time Limitations

The time limitations imposed in this Article shall be strictly complied with, unless
the parties agree, in writing, to extend them. Failure to comply with the time
limitations shall operate as a waiver by the party responsible for such failure.

7. Allocation of Expenses, Fees and Costs

The expenses of witnesses for either side shall be paid by the party producing such
witnesses. The arbitrator’s fees and any other expenses of the arbitrator including
required travel of the arbitrator and the cost of any evidence or proof produced at the
direction of the arbitrator are apportionable and shall be borne by the party (s)
designated by the arbitrator.

8. Finality and Enforcement of Award

All decisions of arbitrators pursuant to this Article shall be final, valid,
irrevocable and conclusively binding upon the parties to the dispute. The
award may be entered as a judgment in any court of competent jurisdiction
and the parties agree to stipulate to entry of judgment.

Page 9

 

IV.
CONSIDERATION FOR AGREEMENT

An employee’s acceptance of an offer of employment or of continued employment
by the Company after notice of this agreement manifest his or her assent to its terms.
Such employment and the Company’s commitments contained in this Agreement constitute part
of the consideration he or she receives in exchange for foregoing any and all right to
litigate employment related disputes in a court of law.

	 	 	 
	/s/ Bradford A. Zakes

	 	/s/ Greg Cobb
	 

	 	 
	EMPLOYEE

	 	ImaRx Therapeutics, Inc.
	 
	 	 
	8/22/05

	 	8/22/05
	 

	 	 
	DATE:

	 	DATE:

Page 10

 

Exhibit C

Invention and Confidential Information Agreement

 

 

ImaRx
Therapeutics, Inc.

INVENTION AND CONFIDENTIAL INFORMATION
AGREEMENT

with

 Bradford A. Zakes

Dated:  8/22/05

 

 

INVENTION AND CONFIDENTIAL INFORMATION AGREEMENT

          This INVENTION AND CONFIDENTIAL INFORMATION AGREEMENT is made between
Brad Zakes, sometimes hereinafter referred to as “Employee,” and
ImaRx Therapeutics,
Inc., hereinafter referred to as “Company,” effective as of the first day of employment by the
Company of the Employee.

          In consideration of: (1) any compensation paid to me by the Company; (2) my
employment as employee, consultant and /or independent contractor, and continuing employment by
the Company; and (3) my access to Confidential Information (as
hereinafter defined) of the Company, I, the undersigned Employee, hereby agree
as follows:

     1. DEFINITIONS.

	 	A.	 	“Agreement Field” refers to the field of imaging pharmaceuticals related to
diagnostic imaging techniques of computed tomography, magnetic resonance,
ultrasound and nuclear medicine as well as therapeutic techniques or
products related to the disciplines (e.g. therapeutic ultrasound
and hyperthermia, radiation therapy and lasers) and drug and gene
delivery.
	 
	 	B.	 	“Confidential Information” refers to any information acquired,
developed, owned or controlled by the Company concerning the Company and its
products and technology which the Company treats as confidential, including
without limitation, any and all patents and patent rights, copyrights,
discoveries, inventions, improvements, knowledge, know-how, models, manufacturing
or other techniques, specifications, ideas, technical data, engineering data,
formulae, recipes, plans, processes, and any other information in the
Agreement Field, whether or not patentable, copyrightable or otherwise
protectable, which are made, discovered, conceived, developed or otherwise
acquired by the Company. Confidential Information also includes names of
customers and dealers, personal records, financial projections and
other financial information relating to Company’s businesses; technological
product information, training and operational manuals and other things which
constitute the property of the Company. The term “Confidential Information” shall
not include information which:

	 	(i)	 	is in or becomes available to the public domain, other
than through an act or failure to act of one of the parties, contrary to
the
terms of this Agreement; or

1

 

	 	(ii)	 	can be shown to have already been known to the Employee and which has
not been transferred to Company prior to the date of this Agreement; or
	 
	 	(iii)	 	has been disclosed by a third party, as a matter of
right, without restrictions on disclosures and use.

In the event Employee asserts that any information is not Confidential Information by reason of
(i), (ii), or (iii) above, the Employee shall have the burden of proving the
information disclosed is within the terms of such provisions.

	 	C.	 	“Inventions” refers to all discoveries, inventions,
improvements, processes, plans, designs, specifications, ideas, recipes, models,
manufacturing or other techniques or know-how, whether or not patentable,
copyrightable or otherwise protectable, which are made, discovered, conceived, or
developed, by Employee in the Agreement Field either alone or jointly
with others.

          2. ASSIGNMENT OF INVENTIONS. During the term of my employment and for a period of
one year thereafter, I agree to disclose to the Company fully and promptly, and to assign to the
Company, and I do hereby assign to the Company all right, title and
interest to and in, all Inventions made, discovered, conceived, or developed by me, either
alone or jointly with others, during the period of my employment by the Company, whether or not
during normal working hours, and including during any periods of leaves of absence, which relate
in any way to the Agreement Field or which result in any way from the
use of the Company’s premises, time, facilities or Confidential Information.

          3. PATENTS. I agree that the Company shall have the right to apply
for and use patents, copyrights, trademarks, or other statutory or common law
protections for the Inventions in all countries; and that I will assist the Company
in every lawful way (at the Company’s expense) to obtain, and from time to time enforce
patents, copyrights, trademarks, trade secrets, and other statutory and common law protections
for the Inventions, including but not limited to the execution of documents, and the giving of
testimony during and after my employment by the Company.

          4. CONFIDENTIAL INFORMATION.

	 	A.	 	I agree that during the period of my employment by the Company, and during the
period extending three years after termination of such employment (or for a longer
period not to exceed five years after such termination in the case of such
Confidential Information which the Company may specifically designate for this
purpose), I will not, without written authorization from the Company, directly or
indirectly use Confidential Information belonging to the Company for any purpose
other than pursuant to my employment by the Company, and that I will
not

2

 

	 	 	 	disclose such Confidential Information to any person without the express
written authorization of the Company.
	 
	 	B.	 	I agree that I will submit in advance to an officer designated by
the
Company (other than myself) all matters proposed to be published or
printed for any use other than a confidential communication to an
authorized recipient.
	 
	 	C.	 	I agree that upon termination of my employment by the Company for any reason
whatsoever, I will promptly deliver to the Company all
Confidential Information, including any and all notes, memoranda, writings,
drawings, or other materials embodying or containing Confidential Information,
however reproduced or recorded (and including any and all copies thereof), which
are in my possession, custody or control.

     5. MODIFICATIONS. This Agreement may be modified only by a duly authorized and
executed writing.

     6. SUCCESSORS AND ASSIGNS. This Agreement shall be binding on, and shall inure to the
benefit of the Company, its affiliates, and their respective successors and assigns,
and the Employee, his heirs, personal representatives and assigns.

     7. ARBITRATION. Any and all disputes between the parties hereto concerning the
negotiation, interpretation, performance or termination of this Agreement, shall be
resolved through amicable discussion between the parties. Failing resolution of the
issues in dispute in such discussion, any party may, thirty (30)
days after initiation of such discussions, refer the issue for final resolution by binding
arbitration pursuant to the then-existing rules of the American Arbitration Association. Any
party may apply to any court of competent jurisdiction for injunctive relief or other interim
measures. Any application to a court for such interim measures shall not be deemed incompatible
with this agreement to arbitrate or as a waiver of this agreement. The arbitration
shall be conducted by a single arbitrator, who shall be a lawyer familiar with technology
development and transfer issues, and shall be held, absent agreement to the contrary, in Tucson,
Arizona. In making his award, the arbitrator shall be guided, in descending priority,
by the terms of this Agreement, the terms of the Research Joint Venture Agreement, the usages of
the trade in the place where the party charged with an act or failure to act is
principally located, and by what he deems just and equitable under the
circumstance without reference to the law of any jurisdiction. The award of the arbitrator shall
be final and binding, and not subject to judicial review. Enforcement of the award may be sought
in any court of competent jurisdiction over the parties or their assets.

     8. WAIVER. Failure by either Party to exert all or any of its rights upon breach
of this Agreement shall not be deemed a waiver of such rights either with
respect to that breach or any subsequent breach.

3

 

     9. SEVERABILITY. The invalidity or unenforceability of any provisions of this
Agreement shall not affect the other provisions hereof and this Agreement shall be construed in all
respects as if said invalid or unenforceable provisions were not contained herein. The parties
agree to cooperate in any revisions or amendments of this Agreement which may
be necessary to effect the intent of the parties in the event that any
provision of this Agreement is deleted as herein provided.

Signed in
Tucson, Arizona this 22 day of August, 2005.

	 	 	 	 	 
	 	ImaRx Therapeutics, Inc. 

 	 
	 	/s/
Greg Cobb
 	 
	 	Vice President and Chief Financial Officer 	 
	 	 	 
	 

Signed in Tucson, Arizona this 22 day of August, 2000.

	 	 	 	 	 
	 	 	 
	 	 /s/ Bradford A. Zakes
 	 
	 	Employee<PAGE>

                                                                   Exhibit 10.21

                                    AGREEMENT

     This Agreement (the "AGREEMENT") is made and entered into as of March 31,
2006, among ImaRx Therapeutics, Inc., a Delaware corporation (the "COMPANY"),
Edson Moore Healthcare Ventures, Inc., a Delaware corporation ("EMHV"), and John
A. Moore ("MOORE", together with the Company and EMHV, the "PARTIES").

     WHEREAS, EMHV has previously performed financial consulting services for
the Company without receiving compensation (the "PAST CONSULTING SERVICES");

     WHEREAS, the Company deems it in the best interests of the Company and its
stockholders to engage EMHV to perform various financial consulting services, on
an as-needed basis (up to a maximum of 5 hours per month), for a period of two
(2) years after the date hereof (the "FUTURE CONSULTING SERVICES," together with
the Past Consulting Services, the "CONSULTING SERVICES");

     WHEREAS, EMHV desires to perform ongoing financial consulting services for
the Company;

     WHEREAS, the Company desires to offer and sell (such issuance, the "SERIES
F FINANCING"), for aggregate gross proceeds of up to $25,000,000, shares of the
Company's newly designated Series F Preferred Stock ("SERIES F PREFERRED"),
having an aggregate liquidation preference of up to $25,000,000 which shall be
senior to the Company's Series B Preferred Stock and Series C Preferred Stock
and shall have the terms set forth in the Restated Certificate (as defined
below);

     WHEREAS, the Company desires to amend and restate the Company's Third
Amended and Restated Certificate of Incorporation, as amended (the "CURRENT
CERTIFICATE"), to authorize and designate the Series F Preferred and to amend
certain provisions relating to the Board of Directors, as set forth in the
attached Fourth Amended and Restated Certificate of Incorporation (the "RESTATED
CERTIFICATE");

     WHEREAS, Sections 4(B)(3)(c) and 4(B)(3)(d) of each of the Current
Certificate and the Restated Certificate provide that the Company shall not
without first obtaining the approval of the holders of a majority of the then
outstanding shares of Series B Preferred Stock and the Series C Preferred Stock
(i) amend its Certificate of Incorporation so as to affect adversely the shares
of Series B Preferred Stock or Series C Preferred Stock or any holder thereof
(including by creating any additional classes or series of preferred stock with
a liquidation preference dividend or other rights senior or pari passu to the
Series B Preferred Stock or the Series C Preferred Stock); or (ii) change the
rights of the holders of Series B Preferred Stock or Series C Preferred Stock in
any other respect (collectively, the "PROTECTIVE PROVISIONS").

     WHEREAS, EMHV desires to facilitate the consummation of the Series F
Financing;

     WHEREAS, Moore has a fifty percent (50%) ownership interest in EMHV;

     WHEREAS, Moore has served on the Company's Board of Directors since
September 30, 2002 and wishes to resign from such position;

                                        1

<PAGE>

     WHEREAS, pursuant to an Executive Employment Agreement (the "EMPLOYMENT
AGREEMENT"), dated as of February 18, 2004 by and between Moore and the Company,
Moore was granted 250,000 options to purchase the Company's common stock (the
"OPTIONS"), all of which options are fully vested as of the date hereof; and

     WHEREAS, Moore's Employment Agreement terminated on February 18, 2006.

     NOW, THEREFORE, in consideration of the mutual promises, covenants, and
conditions set forth herein, and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the Parties agree as
follows:

                          AGREEMENTS PERTAINING TO EMHV

EMHV CONSULTING AGREEMENT

     1. The Company shall pay to EMHV (i) Two Hundred Fifty Thousand Dollars
(US$250,000) as compensation for the Consulting Services and (ii) in the case
that the gross proceeds from the issuance of all shares of Series F Preferred
issued by the Company exceeds Twenty-Five Million Dollars (US$25,000,000), an
additional Fifty Thousand Dollars (US$50,000), which amounts are acknowledged,
by EMHV to be fair and reasonable consideration for rendering of the Consulting
Services, and shall not be subject to offset, recoupment or refund for any
reason. Payment of the initial US$250,000 shall be made within one (1) business
day of the date hereof and the subsequent US$50,000, if applicable, shall be
made within one (1) business day of the date upon which the proceeds received by
the Company from the issuance of all shares of Series F Preferred issued by the
Company exceeds US$25,000,000. All such payments shall be paid, by wire
transfer, to the wire transfer instructions attached hereto, unless written
notice containing other payment instructions is provided by EMHV.

WAIVER OF PROTECTIVE PROVISIONS

     2. EMHV does hereby irrevocably approve and consent to the issuance by the
Company of the Series F Preferred.

NON-DISPARAGEMENT

     3. The Company and EMHV covenant and agree that neither will make any
voluntary statements, written or oral, or cause or encourage others to make any
such statements that defame, disparage or in any way criticize the personal
and/or business reputations, practices or conduct of the other.

                                        2

<PAGE>

MATERIAL NON-PUBLIC INFORMATION

     4. Without the prior written consent of EMHV, the Company shall not, at any
time after the date upon which any class of the Company stock is traded upon any
national stock exchange or quoted on NASDAQ, provide any material non-public
information concerning the Company to EMHV and/or any of its shareholders,
members, officers, directors or employees in the course of EMHV performing the
Consulting Services or otherwise.

                       AGREEMENTS PERTAINING TO JOHN MOORE

RESIGNATION FROM BOARD

     1. As of the date hereof, Moore hereby resigns any and all positions he
holds as a director of the Company.

EXTENSION OF OPTION EXERCISE PERIOD

     2. Notwithstanding anything in the Employment Agreement or agreement
evidencing the Options to the contrary, (i) all options granted to Moore by the
Company are fully vested and exercisable as of the date hereof, and (ii) if not
otherwise exercised, the Options shall terminate on date that is ninety (90)
days following the second anniversary of the date hereof.

NON-DISPARAGEMENT

     3. The Company and Moore covenant and agree that neither will make any
voluntary statements, written or oral, or cause or encourage others to make any
such statements that defame, disparage or in any way criticize the personal
and/or business reputations, practices or conduct of the other.

MATERIAL NON-PUBLIC INFORMATION

     4. Without the prior written consent of Moore, the Company shall not, at
any time after the date upon which any class of the Company stock is traded upon
any national stock exchange or quoted on NASDAQ, provide any material non-public
information concerning the Company to Moore in the course of the Moore
performing any Consulting Services or otherwise

                                        3
<PAGE>

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement on the
day and year first above written.

                                        IMARX THERAPEUTICS, INC.

                                        By: /s/ Evan Unger
                                            ------------------------------------
                                            Evan Unger, M.D.
                                            Chief Executive Officer

EDSON MOORE HEALTH CARE VENTURES, INC.

By: /s/ John A. Moore
    ---------------------------------
    John A. Moore, President

/s/ John A. Moore
-------------------------------------
JOHN A. MOORE

                                        4

<PAGE>

Wire Transfer Instructions for Payment

Chase Manhattan Bank NYC
ABA# 021000021
FBO Smith Barney
A/C 066-198038
Further Credit to
A/C#: 232-84109-11-054
A/C Name: EDSON MOORE HEALTHCARE VENTURES INC.

                                        5

<PAGE>

                                  John A. Moore
                               101 Brookmeadow Rd.
                              Wilmington, DE 19807

                                                                   April 4, 2006

Evan Unger
Chief Executive Officer
ImaRx Therapeutics, Inc.
1635 East 18th Street
Tucson, AZ 85719

Dear Evan:

Please accept my resignation from the Board of Directors of ImaRx and from the
Nomination Committee effective immediately.

Sincerely,

/s/ John A. Moore
-------------------------------------
John A. Moore

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