Document:

Summary of Director Compensation

 EXHIBIT 10.6 
  
 ICAGEN, INC. 
  
 Summary of Director Compensation 
  
 Compensation of our Directors 
  
 Icagen, Inc. reimburses each non-employee director for out-of-pocket expenses they incur in attending Board and committee meetings and pays each
non-employee director an annual retainer fee of $25,000. The Chairman of the Company’s Audit Committee receives an additional annual retainer of $10,000 and other committee chairmen receive an additional annual retainer of $3,000. In addition,
the Company pays each non-employee director $1,000 for attendance at each Board meeting in which he or she participates in person or $500 if attendance is by telephone. Each non-employee director also receives $1,000 for each meeting of a committee
of the Board in which he or she participates in person or $500 if attendance is by telephone that is held on a day other than the day of the date of any meeting of the full Board of Directors. Directors who are also the Company’s employees do
not receive any compensation in their capacities as directors. 
  
 Each of the Company’s non-employee directors receives options to purchase 25,000 shares of the Company’s common stock for his or her services as a director for each three-year term served. Options for the Company’s current
directors are granted every three calendar years as of the first business day of the calendar year. Options for new directors will be granted as of the date of the election or appointment of the director to the Board of Directors. Options granted to
the non-employee directors vest monthly over three years, subject to the director’s continued service as a director. In addition, the Company’s Chairman of the Board of Directors receives options to purchase 20,000 additional shares of the
Company’s common stock for his or her services as a director for each year served. Options for the Company’s Chairman of the Board of Directors are granted every calendar year in January of each year. Options granted to the Chairman of the
Board of Directors vest monthly over one year commencing on January 1, subject to the director’s continued service as a director. Options granted to non-employee directors have exercise prices equal to the fair market value of common stock
at the date of grant.Form of Severance Payment Agreement

 EXHIBIT 10.12 
  
 SEVERANCE PAYMENT AGREEMENT 
 [To be Used For Executives Other Than President/CEO] 
  
 THIS SEVERANCE PAYMENT AGREEMENT (the “Agreement”) is entered into as of
                        , 2006 (the “Effective Date”), by and between Icagen, Inc., a Delaware
corporation (the “Corporation”), and                          (the “Executive”), an
individual residing in                         , North Carolina. 
  
 W I T N E S S E T H: 
  
 WHEREAS, the Corporation is engaged in the business of discovering,
developing and commercializing small molecule drugs based on ion channel targets; and 
  
 WHEREAS, Executive is employed in a senior management position by the Corporation; and 
  
 WHEREAS, in order to encourage the continued employment of Executive with the Corporation, the Corporation is willing to provide to Executive severance
benefits under certain conditions set forth herein. 
  
 NOW,
THEREFORE, in consideration of the foregoing, of the mutual promises contained herein, and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending legally to be bound,
hereby agree as follows: 
  
 1. EMPLOYMENT. Executive
acknowledges that Executive is an employee at will and may be terminated at any time and for any reason by the Corporation. 
  
 2. SEVERANCE BENEFITS. Upon termination of employment of Executive by the Corporation, all salary due through the date of termination shall be
paid; provided, however: 
  
 (a) In
the event of the termination of the employment of Executive by the Corporation, Executive shall be entitled to receive the following severance benefits (the “Severance Benefits”) upon Executive’s satisfaction of the condition
in Section 3 hereof: (i) Executive’s then base salary for the Severance Period (as defined below); and (ii) the continuation during the Severance Period of all benefits to which Executive was entitled at the time of termination
of employment, subject to the terms of all applicable benefit plans and to the extent allowed under the terms of such applicable benefit plans; provided, however, that if such benefits may not be provided to non-employees or under the terms of such
plans, the Corporation shall pay to Executive during the Severance Period the amount that the Company was paying to the applicable third party for such benefits immediately prior to the termination of Executive’s employment. For purposes of
this Agreement, the “Severance Period” shall mean a number of months following termination of employment as specified on Exhibit A hereto. 
  
 (b) Notwithstanding Section 2(a) hereof, in no event shall Executive be entitled to receive any
Severance Benefits hereunder: 
  
 (i) In the
event of the death of Executive; provided such termination of Executive’s employment shall not prejudice any benefits payable to Executive’s spouse or beneficiaries which are fully vested as of the date of Executive’s death.

  
 (ii) In the event that Executive becomes
“permanently disabled,” as hereinafter defined; provided such termination of Executive employment shall not prejudice any benefits payable to Executive or Executive’s spouse or beneficiaries which are fully vested as of the date that
Executive becomes permanently disabled. 
  

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 (iii) In the event the Corporation elects to terminate the employment of Executive for
“cause,” as hereinafter defined. For purposes of this Agreement, “cause” shall mean the following: 
  
 a. Any material breach of Executive of the terms of any employment, non-disclosure, invention, non-competition or non-solicitation
agreement between Executive and the Corporation; or 
  
 b. The failure of Executive to diligently and properly perform Executive’s duties for the Corporation, such breach or failure to be determined in the reasonable and final judgment of the Board of Directors of the Corporation and which
breach or failure is not corrected within thirty (30) days after written notice of such failure by the Board of Directors; or 
  
 c. Any material failure by Executive to comply with the reasonable policies and/or directives of the Board of Directors, which failure is
not corrected within thirty (30) days after written notice of such failure by the Board of Directors; or 
  
 d. Any action by Executive that is illegal or dishonest which is materially detrimental to the interest and well-being of the
Corporation; or 
  
 e. Any willful and knowing
violation of any rules or regulations of any governmental or regulatory body, which is materially detrimental to the interest and well-being of the Corporation; or 
  
 f. Any failure by Executive to fully disclose any material conflict of interest Executive may have with the
Corporation in a transaction between the Corporation and any third party which is materially detrimental to the interest and well-being of the Corporation; or 
  

g. Any adverse act or omission by Executive which would be required to be disclosed pursuant to applicable securities laws or which
would limit the ability of the Corporation or any entity affiliated with the Corporation to issue or sell securities under any Federal or state law or which would disqualify the Corporation or any affiliated entity from any exemption otherwise
available to it, all of which are materially detrimental to the interest and well-being of the Corporation; 
  
 (iv) In the event that Executive is terminated, with or without cause, in connection with a reduction in force by the Corporation of more
than 25% of the Corporation’s workforce or as a result of the elimination of any department of the Corporation; or 
  
 (v) In the event that Executive voluntarily terminates Executive’s employment with the Corporation. 
  
 (c) Notwithstanding the provisions of Section 2(a)
hereof, (i) in all cases, benefits refer to health, dental, disability and life insurance benefits in place at the time of termination of Executive and as subsequently modified by the Corporation to affect all employees similarly situated in
the same manner; (ii) no further contributions shall be made by the Corporation to the 401(k) plan on behalf of Executive after such termination; and (iii) accrued but unpaid vacation pay shall be paid upon the date of termination of
Executive in accordance with the Corporation’s policy regarding same. 
  
 (d) Notwithstanding the foregoing, upon the occurrence of a Change of Control (as hereinafter defined), Sections 2(b)(iii)(b) and 2(b)(iv) shall be automatically deleted from this Agreement and shall no longer be
applicable as “cause” hereunder. 
  
 (e) Notwithstanding the foregoing, in the event of any termination of Executive’s employment under Section 2(b)(iii)(b) or 2(b)(iv) (and while such provisions remain in effect hereunder), the Executive will be entitled to receive
three (3) months of Severance Benefits (or such greater amount as the Board of Directors of the Corporation in its sole discretion shall determine) if the Executive has completed at least one year of service with the Corporation in a director
or higher position. 
  
  

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 3. CONDITION TO RECEIPT OF BENEFITS. Upon the occurrence of an event described in Section 2
above, Executive will be eligible to receive the Severance Benefits only if Executive executes and delivers to the Corporation (and does not subsequently revoke) a Release and Settlement Agreement acceptable to the Corporation. 
  
 4. PAYMENT OF SEVERANCE BENEFITS. The Corporation will pay the
Severance Benefits in semi-monthly installments to be paid on the 15th and last business day of each calendar month
commencing in the month immediately following the date of termination of Executive’s employment, each such semi-monthly installment of the base salary portion of the Severance Benefits to be equal to two weeks’ base salary. The Severance
Benefits shall be subject to mandatory withholding, including federal, state and local income taxes, as well as FICA and other applicable withholding. 
  
 Notwithstanding the foregoing, Executive agrees that the Severance Benefits shall be paid in accordance with Section 409A (“Code
Section 409A”) of the Internal Revenue Code of 1986, as amended, and agrees that, to the extent required in order to avoid the imposition on Executive of any excise tax under Code Section 409A, the initial payment of the Severance
Benefits may be delayed for a period of six (6) months following the date of Executive’s termination of employment. 
  
 5. DEFINITIONS. 
  
 (a) For purposes of this Agreement, Executive shall be considered permanently disabled upon the earlier of (i) the date Executive is determined to be
eligible for long-term disability benefits under any plan sponsored by the Corporation which provides long-term disability benefits to Executive, or (ii) if a qualified medical doctor mutually acceptable to the Corporation and Executive or
Executive’s personal representative shall have certified in writing that: (A) Executive is unable because of a medically determinable physical or mental disability to perform substantially all of Executive’s duties for more than one
hundred eighty (180) calendar days measured from the last full day of work, or (B) by reason of mental or physical disability, it is unlikely that Executive will be able, within one hundred eighty (180) calendar days, to resume
substantially all business duties and responsibilities in which Executive was previously engaged and otherwise discharge Executive’s duties to the Corporation. 
  
 (b) For purposes of this Agreement, a “Change in Control Event” shall mean: 
  
 (i) the acquisition by an individual, entity or group
(within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”) of beneficial ownership of any capital stock of the Corporation if, after such acquisition, such Person beneficially owns (within the meaning
of Rule 13d-3 promulgated under the Exchange Act) 30% or more of either (x) the then-outstanding shares of common stock of the Corporation (the “Outstanding Corporation Common Stock”) or (y) the combined voting power of
the then-outstanding securities of the Corporation entitled to vote generally in the election of directors (the “Outstanding Corporation Voting Securities”); provided, however, that for purposes of this subsection (i),
the following acquisitions shall not constitute a Change in Control Event: (A) any acquisition directly from the Corporation (excluding an acquisition pursuant to the exercise, conversion or exchange of any security exercisable for, convertible
into or exchangeable for common stock or voting securities of the Corporation, unless the Person exercising, converting or exchanging such security acquired such security directly from the Corporation or an underwriter or agent of the Corporation),
(B) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Corporation or any corporation controlled by the Corporation, or (C) any acquisition by any corporation pursuant to a Business Combination
(as defined below) which complies with clauses (x) and (y) of subsection (iii) of this definition; or 
  
 (ii) such time as the Continuing Directors (as defined below) do not constitute a majority of the Board (or, if applicable, the Board of
Directors of a successor corporation to the Corporation), where the term “Continuing Director” means at any date a member of the Board (x) who was a member of the Board on 

  

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the date of the initial adoption of this Plan by the Board or (y) who was nominated or elected subsequent to such date by at least a majority of the
directors who were Continuing Directors at the time of such nomination or election or whose election to the Board was recommended or endorsed by at least a majority of the directors who were Continuing Directors at the time of such nomination or
election; provided, however, that there shall be excluded from this clause (y) any individual whose initial assumption of office occurred as a result of an actual or threatened election contest with respect to the election or
removal of directors or other actual or threatened solicitation of proxies or consents, by or on behalf of a person other than the Board; or 
  
 (iii) the consummation of a merger, consolidation, reorganization, recapitalization or share exchange involving the Corporation or a sale
or other disposition of all or substantially all of the assets of the Corporation (a “Business Combination”), unless, immediately following such Business Combination, each of the following two conditions is satisfied: (x) all
or substantially all of the individuals and entities who were the beneficial owners of the Outstanding Corporation Common Stock and Outstanding Corporation Voting Securities immediately prior to such Business Combination beneficially own, directly
or indirectly, more than 50% of the then-outstanding shares of common stock and the combined voting power of the then-outstanding securities entitled to vote generally in the election of directors, respectively, of the resulting or acquiring
corporation in such Business Combination (which shall include, without limitation, a corporation which as a result of such transaction owns the Corporation or substantially all of the Corporation’s assets either directly or through one or more
subsidiaries) (such resulting or acquiring corporation is referred to herein as the “Acquiring Corporation”) in substantially the same proportions as their ownership of the Outstanding Corporation Common Stock and Outstanding
Corporation Voting Securities, respectively, immediately prior to such Business Combination and (y) no Person (excluding the Acquiring Corporation or any employee benefit plan (or related trust) maintained or sponsored by the Corporation or by
the Acquiring Corporation) beneficially owns, directly or indirectly, 50% or more of the then-outstanding shares of common stock of the Acquiring Corporation, or of the combined voting power of the then-outstanding securities of such corporation
entitled to vote generally in the election of directors (except to the extent that such ownership existed prior to the Business Combination); or 
  
 (iv) a complete liquidation or dissolution of the Corporation. 
  
 6. STOCK OPTIONS. The provisions of this Agreement shall not alter or modify the terms (including, without
limitation, any vesting provisions) of any stock options granted to Executive by the Corporation, which shall be governed in all respects by the equity compensation or other related plan pursuant to which such options are granted and the respective
stock option agreement(s) evidencing such options. 
  
 7.
SEVERABILITY. The provisions of this Agreement shall be deemed severable, and the invalidity or unenforceability of any provision (or part thereof) of this Agreement shall in no way affect the validity or enforceability of any other provision
(or remaining part thereof). 
  
 8. GOVERNING LAW. This
Agreement shall be governed by and construed according to the laws of the State of North Carolina, without reference to the choice of law provisions of such laws. 
  
 9. NOTICES. Any notice required to be given hereunder shall be sufficient if in writing and sent by a reputable
national carrier or certified or registered mail, return receipt requested, first-class postage prepaid, in the case of Executive, to Executive’s address as shown on the Corporation’s records, and in the case of the Corporation, to its
principal office and addressed to the President of the Corporation. 
  
 10. BENEFIT. This Agreement shall be binding upon and shall inure to the benefit of each of the parties hereto, and to their respective heirs, representatives, successors and assigns. This Agreement shall be binding upon the
Corporation and upon any successor corporation. 
  

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 11. TERMINATION OF AGREEMENT. This Agreement shall terminate and be of no further force or effect
upon the occurrence of any event described in Section 2(b) hereof. 
  
 12. ENTIRE AGREEMENT. This Agreement contains the entire agreement and understandings by and between the Corporation and Executive with respect to the subject matter hereof, and supersedes all prior agreements and understandings,
whether written or oral, with respect to the subject matter hereof, including all severance payment provisions set forth in any employment agreements, any employment offer letters or any other agreements or understandings. No representations,
promises, agreements or understandings, written or oral, not herein or therein contained with respect to the subject matter hereof shall be of any force or effect. No change or modification hereof shall be valid or binding unless the same is in
writing and signed by the parties hereto. No waiver of any provision of this Agreement shall be valid unless the same is in writing and signed by the party against whom such waiver is sought to be enforced; moreover, no valid waiver of any other
provision of this Agreement at any time shall be deemed a waiver of any other provision of this Agreement at such time nor will it be deemed a valid waiver of such provision at any other time. 
  

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 IN WITNESS WHEREOF, the parties hereto have executed this Severance Payment Agreement as of the day and
year first above written. 
  

			
	 CORPORATION:
  
 ICAGEN, INC.

		
	By:	 	 
	 	 	 Name:
 Title:

	
	
	EXECUTIVE:
	
	 
	Name:

  

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 EXHIBIT A 
  

					
	 	 	 
	Position	  	Length of Service	  	Severance Period
	 	 	 
	 Vice President, Senior
Vice President
	  	Year 1	  	3 months
	 	 	 
	 Vice President, Senior
Vice President
	  	Years 2-6	  	6 months
	 	 	 
	 Senior Director or Vice
President
	  	Over 6 years	  	9 months
	 	 	 
	 Senior Vice
President
	  	Over 6 years	  	12 months

  

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