Document:

exv10w12

 

Exhibit 10.12

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

AGREEMENT, made and entered into as of the 15th day of January, 2007 by and between Intellect
Neurosciences, Inc., a Delaware corporation with principal offices at 7 West 18th street, New York,
NY 10011 (together with its successors and assigns, “INTELLECT”), and Daniel Chain (the
“EXECUTIVE”).

W I T N E S S E T H:

WHEREAS, INTELLECT desires to continue to employ Executive pursuant to an agreement embodying the
terms of such employment (this “AGREEMENT”) and Executive desires to enter into this Agreement and
to continue in such employment, subject to the terms and provisions of this Agreement, which amends
and restates the Employment Agreement entered into as of June 30, 2005 by and between INTELLECT and
Executive (the “PRIOR AGREEMENT”);

NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein and for
other good and valuable consideration, the receipt of which is mutually acknowledged, INTELLECT and
Executive (individually a “PARTY” and together the “PARTIES”) agree as follows:

1. DEFINITIONS.

     (a) “ACTUAL ANNUAL INCENTIVE” means the highest of the actual annual incentives paid to
Executive for the three fiscal years ended immediately prior to the fiscal year in which the
Termination Date occurs.

     (b) “BASE SALARY” shall have the meaning set forth in Section 4.

     (c) “BOARD” shall have the meaning set forth in Section 3(a).

     (d) “CAUSE” shall have the meaning set forth in Section 10(b).

     (e) “CHANGE IN CONTROL” shall have the meaning set forth in Section 10(c).

     (f) “CODE” shall mean the Internal Revenue Code of 1986, as amended, and the regulations
promulgated thereunder.

     (g) “COMMITTEE” shall have the meaning set forth in Section 4.

     (h) “CONFIDENTIAL INFORMATION” shall have the meaning set forth in Section 11(c).

     (i) “EFFECTIVE DATE” shall have the meaning set forth in Section 2(a).

     (j) “MONTHLY CONTINUATION PAYMENTS” shall have the meaning set forth in Section 10(c).

 

 

     (k) “ORIGINAL TERM” shall have the meaning set forth in Section 2(a).

     (l) “RENEWAL TERM” shall have the meaning set forth in Section 2(a).

     (m) “SECTION 409A” shall have the meaning set forth in Section 10(c).

     (n) “SEVERANCE
PERIOD” shall have the meaning set forth in Section 10(c)(ii) below, except
as provided otherwise in Section 10(e).

     (o) “SUBSIDIARY” shall have the meaning set forth in Section 11(d).

     (p) “TERM” shall have the meaning set forth in Section 2(a).

     (q) “TERMINATION BY EXECUTIVE FOR GOOD REASON” shall have the meaning set forth in Section
10(c).

     (r) “TERMINATION WITHOUT CAUSE” shall have the meaning set forth in Section 10(c).

2. TERM OF EMPLOYMENT. The term of Executive’s employment under this Agreement shall commence on
the date of this Agreement (the “EFFECTIVE DATE”) and end on November 30, 2011 (the “ORIGINAL
TERM”), unless terminated earlier in accordance herewith or extended in accordance with this
section. The Original Term shall be automatically renewed for additional one-year terms (each, a
“RENEWAL TERM”), unless at least 180 days prior to the expiration of the Original Term or the
Renewal Term, either Party notifies the other Party in writing that he or it is electing to
terminate this Agreement at the expiration of the then current Term. “TERM” shall mean the
Original Term and, unless the agreement is terminated prior to its commencement, the Renewal Term.
If a Change in Control shall have occurred during the Term, notwithstanding any other provision of
this section, the Term shall not expire earlier than two years after such Change in Control.

3. POSITION, DUTIES AND RESPONSIBILITIES.

     (a) GENERALLY. Executive shall serve as the Chairman of the Board of Directors (the “BOARD”)
and Chief Executive Officer (“CEO”) of INTELLECT, subject to the limitations set forth in the final
paragraph of the definition of Termination by Executive for Good Reason contained in Section 10(c).
For so long as he is serving on the Board, Executive agrees to serve on any Board committee to
which he is elected. In any and all such capacities, Executive shall report solely to the Board.
Executive shall have and perform such duties, responsibilities, and authorities as are customary
for the Chairman and CEO of corporations of similar size and businesses as INTELLECT as they may
exist from time to time and as are consistent with such positions and status, provided that during
the Term, Executive’s position including status, offices, titles and reporting requirements,
authority, duties and responsibilities shall be at least commensurate in all respects with the
most significant of those held, exercised and assigned immediately preceding the Effective Date.
Executive shall devote substantially all of his business time and attention (except for periods of
vacation or absence due to

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illness), and his best efforts, abilities, experience, and talent to the positions of Chairman
and CEO of INTELLECT.

     (b) OTHER ACTIVITIES. Anything herein to the contrary notwithstanding, nothing in this
Agreement shall preclude Executive from (i) serving as President of Mindset Bipoharmaceuticals, Inc
and its subsidiary Mindgenix, Inc., provided that Executive spends no more than 5% of his time in
such capacity, (ii) serving on the boards of directors of a reasonable number of other
corporations, trade associations and/or charitable organizations, (iii) engaging in charitable
activities and community affairs delivering lectures, fulfilling speaking engagements or teaching
at educational institutions, and (iv) managing his personal investments and affairs, provided that
such activities do not materially interfere with the proper performance of his duties and
responsibilities under this Agreement. It is expressly understood and agreed that to the extent
that any such activities have been conducted by Executive prior to the Effective Date, the
continued conduct of such activities or the conduct of activities similar in nature and scope
thereto subsequent to the Effective Date shall not thereafter be deemed to interfere with the
performance of Executive’s responsibilities to INTELLECT.

     (c) PLACE OF EMPLOYMENT. Executive’s principal place of employment shall be at INTELLECT’s
corporate offices, as at the Effective Date or any location less than 30 miles therefrom.

     (d) ANNUAL OBJECTIVES. Executive acknowledges that the Board, in consultation with Executive,
will establish annual objectives for Executive. Executive agrees to use his best efforts to
substantially achieve these annual objectives, provided, however, that the failure to achieve these
annual objectives shall not, by itself, constitute a breach of this Agreement and shall not, by
itself, give rise to a termination for Cause.

4. BASE SALARY. Executive shall be paid an annualized salary (“BASE SALARY”), payable in
accordance with INTELLECT’s regular payroll practices as at the Effective Date, of not less than
$450,000, subject to review on an annual basis at the discretion of the Board’s Compensation
Committee (the “COMMITTEE”), provided, that in no event may Base Salary be decreased.

5. ANNUAL INCENTIVE AWARDS. The Board shall, within one hundred eighty (180) days of the Effective
Date, establish an annual incentive compensation plan for INTELLECT in such form as shall be agreed
between the Board and Executive. Executive shall be eligible to participate in such plan.

6. LONG-TERM INCENTIVE PROGRAMS.

     (a) Executive shall be eligible to participate in INTELLECT’s long-term incentive compensation
programs, including stock options, stock grants and other equity awards (if established by the
Board at its discretion).

     (b) Upon adoption of the 2006 Equity Incentive Plan (the “Plan”), the Company shall grant to
the Executive an option to purchase the number of shares of Intellect’s common stock in an amount
sufficient to provide that, when combined with

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Executive’s existing ownership of Intellect’s common stock on a fully diluted, as converted
basis, the Executive holds 20% of Intellect’s issued and outstanding common stock on a fully
diluted, as converted basis. The exercise price per share shall be equal to the fair market value
of such common stock on the grant date. Such options shall be subject to the terms of the Plan and
applicable stock option agreement and shall vest on the Effective Date.

7. EMPLOYEE BENEFIT PROGRAMS.

     (a) GENERAL BENEFITS. During the Term, Executive and/or Executive’s immediate family shall be
entitled to participate in such employee pension and welfare benefit plans and programs of
INTELLECT as are made available to INTELLECT’s senior-level executives or to its employees
generally, as such plans or programs may be in effect from time to time, including without
limitation, each of the following: health, medical, dental, long-term disability, travel accident,
life insurance plans or nonqualified retirement plans

     (b) VACATION. Executive shall be entitled to six weeks of vacation for each year he is
employed with INTELLECT and to a reasonable number of other days off for religious and personal
reasons. Any unused vacation days for any year shall accrue and be available in succeeding years.

8. INVENTIONS.

     (a) If at any time during the Term, Executive shall invent, discover, or devise, either by
himself or jointly with any other person, any invention, design, idea or any other form of
intangible property (together “INVENTION”) which relates to, or is connected or capable of being
utilized, directly or indirectly, in connection with any trade or business being conducted at the
time by INTELLECT or any Subsidiary or affiliate, the Invention shall, to the extent of Executive’s
entire interest, be the sole property of INTELLECT, and INTELLECT shall have the exclusive right to
use, adapt or patent (or not to do so) the same, as determined by INTELLECT in its sole and
absolute discretion. Executive shall immediately communicate to INTELLECT the full details of any
such Invention and if INTELLECT applies for a patent in respect of such Invention, it shall make
the patent application in the joint names of INTELLECT and Executive and Executive shall concur in
applying for such Invention patent, and, at INTELLECT’s sole expense, shall prepare all necessary
specifications and drawings and give every assistance in Executive’s power to procure the patent
grant. Executive’s interest in any such patent when granted shall be unconditionally and
irrevocably assigned to INTELLECT.

     (b) Executive shall, both during and after the Term, at INTELLECT’s request and sole expense,
do all reasonable acts and things and shall execute all documents that INTELLECT may consider
necessary or desirable to make such Invention available to INTELLECT and to perfect and defend
INTELLECT’s title to the Invention, including, but not limited to Executive irrevocably appointing
INTELLECT as his attorney and agent and in his name and/or on his behalf for signing, executing or
otherwise completing

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any deed or document and to do all acts and things that INTELLECT may reasonably consider
necessary or expedient for purposes of this Section 8.

9. REIMBURSEMENT OF BUSINESS AND OTHER EXPENSES.

     (a) GENERALLY. Executive is authorized to incur reasonable expenses in carrying out his duties
and responsibilities under this Agreement and INTELLECT shall promptly reimburse him for all
business expenses incurred in connection therewith, subject to documentation in accordance with
INTELLECT’s applicable policies

     (b) LIFE INSURANCE. During the Term, INTELLECT shall pay on Executive’s behalf, or reimburse
Executive for, $10,000 per annum towards the purchase of individual life insurance coverage.

10. TERMINATION OF EMPLOYMENT.

     (a) TERMINATION DUE TO EXECUTIVE’S DEATH OR DISABILITY. In the event Executive’s employment
with INTELLECT is terminated due to his death or Disability, Executive, his estate or his
beneficiaries, as the case may be, shall be entitled to and their sole remedies under this
Agreement shall be:

          (i) Earned and unpaid Base Salary through the date of death or date of termination of
Executive’s employment by INTELLECT (“TERMINATION DATE”) for Disability, payable in a cash lump sum
no later than 15 days following the Termination Date;

          (ii) pro rata annual incentive award (if any) for the year in which Executive’s death or
termination for Disability occurs, as determined by the Committee in good faith at the conclusion
of the fiscal year in which Executive dies or is terminated for Disability (provided that such
award is not less than the highest such award payable to Executive during the three years
immediately preceding the Termination Date), payable in a cash lump sum no later than 15 days after
such determination;

          (iii) the balance of any incentive awards (if any) earned as of December 31 of the prior year
(but not yet paid), payable in a cash lump sum no later than 15 days following the Termination
Date; and

          (iv) all accrued and unpaid vacation time and all other additional benefits then due or earned
in accordance with applicable plans and programs of INTELLECT.

          (v) to the extent not therefore paid or provided, INTELLECT shall timely pay or provide to
Executive any other amounts or benefits required to be paid or provided for which Executive is
eligible to receive under any plan, program, policy or practice or contract or agreement of
INTELLECT and its affiliated companies (Such other amounts and benefits shall be hereinafter
referred to as the “Other Benefits”).

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For purposes of this Section 10(a), the term “DISABILITY” means any illness or incapacity which
prohibits Executive from rendering services of the character as contemplated hereunder (i) for a
period of 120 consecutive days or 150 days out of 12 consecutive months.

     (b) TERMINATION BY INTELLECT FOR CAUSE.

          (i) “CAUSE” shall mean:

          A. the willful and continued failure of Executive to perform substantially Executive’s duties
with INTELLECT or any of its affiliated companies (other than any such failure resulting from
incapacity due to physical or mental illness), after a written demand for substantial performance
is delivered to the Executive by the Board which specifically identifies the manner in which the
Board believes that the Executive has not substantially performed Executive’s duties, or

          B. the willful engaging by the Executive in illegal conduct or gross misconduct which is
materially and demonstrably injurious to INTELLECT.

          C. the conviction for any criminal offense with a custodial sentence, other than road traffic
offenses.

For purposes of this provision, no act or failure to act, on the part of Executive, shall be
considered “willful” unless it is done, or omitted to be done, by the Executive in bad faith or
without reasonable belief that Executive’s action or omission was in the best interests of the
INTELLECT or any of its affiliated companies. Any act, or failure to act, based upon authority
given pursuant to a resolution duly adopted by the Board or based upon the advice of counsel for
the INTELLECT shall be conclusively presumed to be done, or omitted to be done, by Executive in
good faith and in the best interests of INTELLECT so far as the decision to act or the failure to
act is taken in reasonable reliance upon such a Board resolution or such advice. The cessation of
employment of Executive shall not be deemed to be for Cause unless and until there shall have been
delivered to the Executive a copy of a resolution duly adopted by the affirmative vote of the
entire membership of the Board at a meeting of the Board called and held for such purpose (after
reasonable notice is provided to Executive and Executive is given an opportunity, together with
counsel, to be heard before the Board), finding that, in the good faith opinion of the Board,
Executive is guilty of the conduct described in subparagraph (A) or (B) above, and specifying the
particulars thereof in detail.

          (ii) In the event INTELLECT terminates Executive’s employment for Cause, he shall be entitled
to and his sole remedies under this Agreement shall be earned and unpaid Base Salary through the
Termination Date, payable in a cash lump sum no later than 15 days following the Termination Date;
and all accrued and unpaid vacation time and all Other Benefits.

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     (c) TERMINATION WITHOUT CAUSE OR BY EXECUTIVE FOR GOOD REASON PRIOR TO CHANGE IN CONTROL. In
the event Executive’s employment with INTELLECT is terminated without Cause (which termination
shall be effective as of the date specified by INTELLECT in a written notice to Executive), other
than due to Executive’s death or Disability, or in the event Executive terminates his employment
for Good Reason (as defined below), in either case prior to a Change in Control (as defined below)
Executive shall be entitled to and his sole remedies under this Agreement shall be:

          (i) earned and unpaid Base Salary through the Termination Date, payable in a cash lump sum no
later than 15 days following such date;

          (ii) the balance of any incentive awards earned as of December 31 of the prior year (but not
yet paid), payable in a cash lump sum no later than 15 days following the Termination Date;

          (iii) the sum of Executive’s (A) Base Salary, at the annualized rate in effect on the
Termination Date (or, in the event a reduction in Base Salary is a basis for a Termination by
Executive for Good Reason, then the Base Salary in effect immediately prior to such reduction), and
(B) Executive’s Actual Annual Incentive (if any), such sum divided by 12 (“MONTHLY CONTINUATION
PAYMENTS”) and which Monthly Continuation Payments are to be paid to Executive for a period of 18
months (the “SEVERANCE PERIOD”);

          (iv) any outstanding stock options or shares of Restricted Stock which are unvested shall vest
and Executive shall have the right to exercise any vested stock options during the Severance Period
or for the remainder of the exercise period;

          (v) continued participation in all medical, health and life insurance plans at the same
benefit level at which he was participating on the date of the termination of his employment until
the earlier of:

               A. the end of the Severance Period; or

               B. the date, or dates, he receives equivalent coverage and benefits under the plans and
programs of a subsequent employer (such coverage and benefits to be determined on a
coverage-by-coverage, or benefit-by-benefit, basis); provided that (1) if Executive is precluded
from continuing his participation in any employee benefit plan or program as provided in this
clause (viii) of this Section 10(c), he shall receive cash payments equal on an after-tax basis to
the cost to him of obtaining the benefits provided under the plan or program in which he is unable
to participate for the period specified in this clause (viii) of this Section 10(c), (2) such cost
shall be deemed to be the lowest reasonable cost that would be incurred by Executive in obtaining
such benefit himself on an individual basis, and (3) payment of such amounts shall be made
quarterly in advance; and (vi) other or additional benefits then due or earned in accordance with
applicable plans and programs of INTELLECT. Notwithstanding the foregoing, the Monthly Continuation
Payments shall be subject to delay to the extent necessary for the avoidance of adverse tax
consequences to Executive under Section

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409A of the Code (“SECTION 409A”); provided, however, that if the Monthly Continuation
Payments commence more than 30 days following the Termination Date, the first such payment shall
equal the sum of all Monthly Continuation Payments that would have been made from the Termination
Date to the date of such first payment were it not for the restriction contained in this sentence.

          (vi) all accrued and unpaid vacation pay and all Other Benefits

     “TERMINATION WITHOUT CAUSE” shall mean INTELLECT terminates Executive’s employment for any
reason other than Cause (as defined in Section 10(b)) or due to Executive’s death or Disability.

     (d) “TERMINATION BY EXECUTIVE FOR GOOD REASON” shall mean Executive’s termination of his
employment as provided in this Section 10(c) following the occurrence, without Executive’s written
consent, of one or more of the following events (except as a result of a prior termination):

               A. a material diminution or change, adverse to Executive, in Executive’s positions, titles, or
offices as set forth in Section 3(a), status, rank, nature of duties or responsibilities, or
authority within INTELLECT, or a removal of Executive from or any failure to elect or re-elect or,
as the case may be, nominate Executive to any such positions or offices, including as a member of
the Board after delivery of written notice to the Board by Executive of such breach and Company has
not cured within and 10 business days of such notice;

               B. an assignment of any duties to Executive which are inconsistent with his status as Chairman
or CEO of INTELLECT and other positions held under Section 3(a) or any adverse change in
Executive’s reporting relationships that is not cured within 10 business days of INTELLECT’s
receipt of written notice from Executive;

               C. any decrease in Executive’s annual Base Salary (or any failure to review Executive’s Base
Salary on an annual basis as provided for in Section 4) or annual incentive opportunity (if any)
that is not cured within 10 business days of INTELLECT’s receipt of written notice from Executive
of such breach;

               D. any other failure by INTELLECT to perform any material obligation under, or breach by
INTELLECT of any material provision of, this Agreement that is not cured within 10 business days of
INTELLECT’s receipt of written notice from Executive of such breach;

               E. a relocation of Executive’s employment to a location outside a 30-mile radius of
INTELLECT’s corporate offices in New York, New York; or

               F. any failure to secure the agreement of any successor corporation or other entity to
INTELLECT to fully assume INTELLECT’s obligations under this Agreement.

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     A “CHANGE IN CONTROL” shall be deemed to have occurred if:

          (i) any Person (other than INTELLECT, any trustee or other fiduciary holding securities under
any employee benefit plan or related Trust sponsored by INTELLECT, or any company owned, directly
or indirectly, by INTELLECT’s stockholders immediately prior to the occurrence with respect to
which the evaluation is being made in substantially the same proportions as their ownership of
INTELLECT’s common stock) becomes the Beneficial Owner (except that a Person shall be deemed to be
the Beneficial Owner of all shares that any such Person has the right to acquire pursuant to any
agreement or arrangement or upon exercise of conversion rights, warrants or options or otherwise,
without regard to the sixty day period referred to in Rule 13d-3 under the Exchange Act), directly
or indirectly, of securities of INTELLECT or any Significant Subsidiary (as defined below),
representing 30% or more of the combined voting power of INTELLECT’s or such subsidiary’s then
outstanding securities;

          (ii) during any period of two (2) consecutive years, individuals who at the beginning of such
period constitute the Board, and any new director (other than a director designated by a person who
has entered into an agreement with INTELLECT to effect a transaction described in clause (i),
(iii), or (iv) of this paragraph) whose election by the Board or nomination for election by
INTELLECT’s stockholders was approved by a vote of at least two-thirds of the directors then still
in office who either were directors at the beginning of the two-year period or whose election or
nomination for election was previously so approved but excluding for this purpose any such new
director whose initial assumption of office occurs as a result of either an actual or threatened
election contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the
Exchange Act) or other actual or threatened solicitation of proxies or consents by or on behalf of
an individual, corporation, partnership, group, associate or other entity or Person other than the
Board, cease for any reason to constitute at least a majority of the Board;

          (iii) the consummation of a merger or consolidation of INTELLECT or any subsidiary owning
directly or indirectly all or substantially all of the consolidated assets of INTELLECT (a
“SIGNIFICANT SUBSIDIARY”) with any other entity, other than a merger or consolidation which would
result in the voting securities of INTELLECT or a Significant Subsidiary outstanding immediately
prior thereto continuing to represent (either by remaining outstanding or by being converted into
voting securities of the surviving or resulting entity) more than 70% of the combined voting power
of the surviving or resulting entity outstanding immediately after such merger or consolidation; or

          (iv) the stockholders of INTELLECT approve a plan or agreement for the sale or disposition of
all or substantially all of the consolidated assets of INTELLECT (other than such a sale or
disposition immediately after which such assets will be owned directly or indirectly by the
stockholders of INTELLECT in substantially the same proportions as their ownership of the common
stock of INTELLECT immediately prior to such sale or disposition.

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     For purposes of this definition of Change in Control:

               A. The term “BENEFICIAL OWNER” shall have the meaning ascribed to such term in Rule 13d-3
under the Exchange Act (including any successor to such Rule).

               B. The term “EXCHANGE ACT” means the Securities Exchange Act of 1934, as amended from time to
time, or any successor act thereto.

               C. The term “PERSON” shall have the meaning ascribed to such term in Section 13(d)-5 of the
Exchange Act.

     (e) VOLUNTARY TERMINATION; TERMINATION FOLLOWING ELECTION BY INTELLECT TO TERMINATE THE
AGREEMENT AT THE END OF THE TERM. In the event of a termination of employment by Executive on his
own initiative after delivery of 10 business days advance written notice (other than a termination
due to death or Disability, or by Executive for Good Reason), or a termination of Executive’s
employment as a result of INTELLECT’s election to terminate this Agreement at the end of the Term
as provided in Section 2, Executive shall have the same entitlements as provided in Section
10(b)(iii) above for a termination for Cause.

     (f) TERMINATION WITHOUT CAUSE FOLLOWING A CHANGE IN CONTROL; TERMINATION BY EXECUTIVE FOR GOOD
REASON FOLLOWING A CHANGE IN CONTROL. In the event Executive’s employment with INTELLECT is
terminated by INTELLECT without Cause (which termination shall be effective as of the date
specified by INTELLECT in a written notice to Executive), other than due to Executive’s death or
Disability, or by Executive for Good Reason, in either case within two (2) years following a
Change in Control, Executive shall be entitled to and his sole remedies under this Agreement shall
be:

          (i) earned and unpaid Base Salary through the Termination Date payable in a cash lump sum no
later than 15 days following such date;

          (ii) an amount equal to 2 times the sum of (A) Executive’s Base Salary, at the annualized rate
in effect on the Termination Date (or, in the event a reduction in Base Salary is a basis for a
Termination by Executive for Good Reason, then the Base Salary in effect immediately prior to such
reduction), and (B) Executive’s Actual Annual Incentive (if any);

          (iii) the balance of any incentive awards earned as of December 31 of the prior year (but not
yet paid), payable in a lump sum no later than 15 days following the Termination Date;

          (iv) immediate vesting of all outstanding stock options and Restricted Stock and the right to
exercise such stock options during the Severance Period or for the remainder of the exercise
period; and

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          (v) continued participation in all medical, health and life insurance plans at the same
benefit level at which he was participating on the date of termination of his employment until the
earlier of:

               A. the end of the Severance Period; or

               B. the date, or dates, Executive receives equivalent coverage and benefits under the plans and
programs of a subsequent employer (such coverage and benefits to be determined on a
coverage-by-coverage, or benefit-by-benefit, basis); provided that (1) if Executive is precluded
from continuing his participation in any employee benefit plan or program as provided in this
clause (ix) of this Section 10(e), he shall receive cash payments equal on an after-tax basis to
the cost to him of obtaining the benefits provided under the plan or program in which he is unable
to participate for the period specified in this clause (ix) of this Section 10(e), (2) such cost
shall be deemed to be the lowest reasonable cost that would be incurred by Executive in obtaining
such benefit himself on an individual basis, and (3) payment of such amounts shall be made
quarterly in advance; and (x)other or additional benefits then due or earned in accordance with
applicable plans and programs of INTELLECT.

     For purposes of any termination pursuant to this Section 10(e), the term “SEVERANCE PERIOD”
shall mean the period of 24 months following the Termination Date.

          (vi) all accrued and unpaid vacation pay and all Other Benefits

     (g) NO MITIGATION; NO OFFSET. In the event of any termination of employment, Executive shall
be under no obligation to seek other employment; amounts due Executive under this Agreement shall
not be offset by any remuneration attributable to any subsequent employment that he may obtain or
for any other reason.

     (h) NATURE OF PAYMENTS. Any amounts due under this Section 10 are in the nature of severance
payments considered to be reasonable by INTELLECT and are not in the nature of a penalty.

     (i) EXCLUSIVITY OF SEVERANCE PAYMENTS. Upon termination of Executive’s employment during the
Term, he shall not be entitled to any severance payments or severance benefits from INTELLECT or
any payments by INTELLECT on account of any claim by him of wrongful termination, including claims
under any federal, state or local human and civil rights or labor laws, other than the payments and
benefits provided in this Section 10.

     (j) RELEASE OF EMPLOYMENT CLAIMS. Executive and INTELLECT agree, as a condition to receipt of
the termination payments and benefits provided for in this Section 10, that he will execute a
mutual release agreement, in a form reasonably satisfactory to INTELLECT, releasing their claims
against one another arising out of Executive’s employment (other than enforcement of this
Agreement, Executive’s rights under any of INTELLECT’s incentive compensation and employee benefit
plans and programs to which he is entitled under this Agreement, any claim for any tort for
personal

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injury not arising out of or related to his termination of employment and Executive’s right to
indemnification under INTELLECT’s by-laws or coverage under any director’s and officer’s insurance
policy).

11. CONFIDENTIALITY; COOPERATION WITH REGARD TO LITIGATION; NON-DISPARAGEMENT.

     (a) During the Term and thereafter, Executive shall not, without INTELLECT’s prior written
consent, disclose to anyone (except in good faith in the ordinary course of business to a person
who will be advised by Executive to keep such information confidential) or make use of any
Confidential Information except in the performance of his duties hereunder or when required to do
so by legal process, by any governmental agency having supervisory authority over the business of
INTELLECT or by any administrative or legislative body (including a committee thereof) that
requires him to divulge, disclose or make accessible such information. In the event that Executive
is so ordered, he shall give prompt written notice to INTELLECT to allow INTELLECT the opportunity
to object to or otherwise resist such order.

     (b) During the Term and thereafter, Executive shall not disclose the existence or contents of
this Agreement beyond what is disclosed in any proxy statement or documents filed with the
government unless and to the extent such disclosure is required by law, by a governmental agency,
or in a document required by law to be filed with a governmental agency or in connection with
enforcement of his rights under this Agreement. In the event that disclosure is so required,
Executive shall give prompt written notice to INTELLECT to allow INTELLECT the opportunity to
object to or otherwise resist such requirement. This restriction shall not apply to such disclosure
by him to members of his immediate family, his tax, legal or financial advisors, any lender, or tax
authorities, or to potential future employers to the extent necessary, each of whom shall be
advised not to disclose such information.

     (c) “CONFIDENTIAL INFORMATION” shall mean all information concerning the business of INTELLECT
or any Subsidiary relating to any of their products, product development, trade secrets, customers,
suppliers, finances, and business plans and strategies. Excluded from the definition of
Confidential Information is information (i) that is or becomes part of the public domain, other
than through the breach of this Agreement by Executive or (ii) regarding INTELLECT’s business or
industry properly acquired by Executive in the course of his career as an executive in INTELLECT’s
industry and independent of Executive’s employment by INTELLECT. For this purpose, information
known or available generally within the trade or industry of INTELLECT or any Subsidiary shall be
deemed to be known or available to the public.

     (d) “SUBSIDIARY” shall mean any corporation controlled directly or indirectly by INTELLECT.

     (e) Executive agrees to cooperate with INTELLECT, during the Term and thereafter, by making
himself reasonably available to testify on behalf of INTELLECT or any Subsidiary in any action,
suit, or proceeding, whether civil, criminal, administrative,

12

 

or investigative, and to assist INTELLECT, or any Subsidiary, in any such action, suit, or
proceeding, by providing information and meeting and consulting with the Board or its
representatives or counsel, or representatives or counsel to INTELLECT, or any Subsidiary as
reasonably requested; provided however, that the same does not materially interfere with his then
current professional activities. INTELLECT agrees to reimburse Executive, on an after-tax basis,
for all expenses actually incurred in connection with his provision of testimony or assistance.

     (f) Executive agrees that, during the Term and thereafter he will not make statements or
representations, or otherwise communicate, directly or indirectly, in writing, orally, or
otherwise, or take any action which may, directly or indirectly, disparage INTELLECT or any
Subsidiary or their respective officers, directors, employees, advisors, businesses or reputations.
INTELLECT agrees that, during the Term and thereafter INTELLECT will not make statements or
representations, or otherwise communicate, directly or indirectly, in writing, orally, or
otherwise, or take any action which may directly or indirectly, disparage Executive or his business
or reputation. Notwithstanding the foregoing, nothing in this Agreement shall preclude either
Executive or INTELLECT from making truthful statements or disclosures that are required by
applicable law, regulation or legal process.

12. NON-COMPETITION. During the period beginning with the Effective Date and ending 24 months
following the Termination Date, Executive shall not engage in Competition with INTELLECT or any
Subsidiary. “COMPETITION” shall mean engaging in any activity, except as provided below, for a
Competitor of INTELLECT or any Subsidiary, whether as an employee, consultant, principal, agent,
officer, director, partner, shareholder (except as a less than one percent shareholder of a
publicly traded company) or otherwise. A “COMPETITOR” shall mean any corporation or other entity
which competes directly or indirectly with any business conducted by INTELLECT relating to
Alzhiemer’s disease , as determined on the date of termination of Executive’s employment. If
Executive commences employment or becomes a consultant, principal, agent, officer, director,
partner, or shareholder of any entity that is not a Competitor at the time Executive initially
becomes employed or becomes a consultant, principal, agent, officer, director, partner, or
shareholder of the entity, future activities of such entity shall not result in a violation of this
provision unless (x) such activities were contemplated by Executive or the entity to which he is
providing services at the time Executive initially became employed or becomes a consultant,
principal, agent, officer, director, partner, or shareholder of the entity or (y) Executive
commences directly or indirectly overseeing or managing the activities of an entity which becomes a
Competitor during the Restriction Period.

13. NON-SOLICITATION/ NON-INTERFERENCE. During the period beginning with the Effective Date and
ending 24 months following the Termination Date, Executive shall not induce employees of INTELLECT
or any Subsidiary to terminate their employment, nor shall Executive solicit or encourage any of
INTELLECT’s or any Subsidiary’s non-retail customers, or any corporation or other entity in a joint
venture relationship (directly or indirectly) with INTELLECT or any Subsidiary, to terminate or
diminish their relationship with INTELLECT or any Subsidiary or to violate any

13

 

agreement with any of them. During such period, Executive shall not hire, either directly or
through any employee, agent or representative, any employee of INTELLECT or any Subsidiary or any
person who was employed by INTELLECT or any Subsidiary within 180 days of such hiring.

14. REMEDIES. If Executive breaches any of the provisions contained in Sections 11, 12 or 13 above
(which Sections, for purposes of clarity, are subject to Section 23), INTELLECT (a) subject to
Section 15, shall have the right to terminate immediately all payments and benefits due under this
Agreement and (b) shall have the right to seek injunctive relief. Executive acknowledges that such
a breach of Sections 11, 12 or 13 would cause irreparable injury and that money damages would not
provide an adequate remedy for INTELLECT; provided however, the foregoing shall not prevent
Executive from contesting the issuance of any such injunction on the ground that no violation or
threatened violation of Section 11, 12 or 13 has occurred.

15. RESOLUTION OF DISPUTES.

     (a) Any controversy or claim arising out of or relating to this Agreement or any breach or
asserted breach hereof or questioning the validity and binding effect hereof arising under or in
connection with this Agreement, other than seeking injunctive relief under Section 14, shall be
resolved by binding arbitration, to be held at an office closest to INTELLECT’s principal offices
in accordance with the rules and procedures of the American Arbitration Association. Judgment upon
the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.
Pending the resolution of any arbitration or court proceeding, INTELLECT shall continue payment of
all amounts and benefits due Executive under this Agreement. All costs and expenses of any
arbitration or court proceeding (including fees and disbursements of counsel) shall be borne by the
respective party incurring such costs and expenses, but INTELLECT shall reimburse Executive for
such reasonable costs and expenses in the event he substantially prevails in such arbitration or
court proceeding.

     (b) Notwithstanding the foregoing, following a Change in Control all reasonable costs and
expenses (including fees and disbursements of counsel) incurred by Executive pursuant to this
Section 15 shall be paid on behalf of or reimbursed to Executive promptly by INTELLECT; provided
however, that no reimbursement shall be made of such expenses if and to the extent the
arbitrator(s) determine(s) that any of Executive’s litigation assertions or defenses were in bad
faith or frivolous.

16. INDEMNIFICATION.

     (a) INTELLECT INDEMNITY. INTELLECT agrees that if Executive is made a party, or is threatened
to be made a party, to any action, suit or proceeding, whether civil, criminal, administrative or
investigative (a “PROCEEDING”), by reason of the fact that he is or was a director, officer or
employee of INTELLECT or any Subsidiary or is or was serving at the request of INTELLECT or any
Subsidiary as a director, officer, member, employee or agent of another corporation, partnership,
joint venture, trust or other enterprise, including service with respect to employee benefit

14

 

plans, whether or not the basis of such Proceeding is Executive’s alleged action in an
official capacity while serving as a director, officer, member, employee or agent, Executive shall
be indemnified and held harmless by INTELLECT to the fullest extent legally permitted or authorized
by INTELLECT’s certificate of incorporation or bylaws or resolutions of the Board against all cost,
expense, liability and loss (including without limitation, attorney’s fees, judgments, fines, ERISA
excise taxes or penalties and amounts paid or to be paid in settlement) reasonably incurred or
suffered by Executive in connection therewith, and such indemnification shall continue as to
Executive even if he has ceased to be a director, member, officer, employee or agent of INTELLECT
or other entity and shall inure to the benefit of Executive’s heirs, executors and administrators.
INTELLECT shall advance to Executive all reasonable costs and expenses to be incurred by him in
connection with a Proceeding within 20 days after receipt by INTELLECT of a written request for
such advance. Subject to the foregoing sentence, in the event that it is inappropriate for
INTELLECT and the Executive to be represented by the same legal counsel due to actual or potential
differing interests between them, then the Executive shall be permitted to select his own legal
counsel and INTELLECT shall reimburse the Executive for attorney’s fees and expenses incurred by
the Executive in defending any claim, demand, action, suit or proceeding arising from his
employment by INTELLECT. Such request shall include an undertaking by Executive to repay the
amount of such advance if it shall ultimately be determined that he is not entitled to be
indemnified against such costs and expenses. The provisions of this Section 16(a) shall not be
deemed exclusive of any other rights of indemnification to which Executive may be entitled or which
may be granted to him, and it shall be in addition to any rights of indemnification to which he may
be entitled under any policy of insurance.

     (b) NO PRESUMPTION REGARDING STANDARD OF CONDUCT. Neither the failure of INTELLECT (including
its Board, independent legal counsel or stockholders) to have made a determination prior to the
commencement of any proceeding concerning payment of amounts claimed by Executive under Section
16(a) above that indemnification of Executive is proper because he has met the applicable standard
of conduct, nor a determination by INTELLECT (including its Board, independent legal counsel or
stockholders) that Executive has not met such applicable standard of conduct, shall create a
presumption that Executive has not met the applicable standard of conduct.

     (c) LIABILITY INSURANCE. INTELLECT hereby represents and warrants to Executive that it
maintains as of the Effective Date and shall continue to maintain a directors and officers’
liability insurance policy covering Executive .

17. EFFECT OF AGREEMENT ON OTHER BENEFITS. Except as specifically provided in this Agreement, the
existence of this Agreement shall not be interpreted to preclude, prohibit or restrict Executive’s
participation in any other employee benefit or other plans or programs in which he currently
participates.

18. ASSIGNABILITY; BINDING NATURE. This Agreement shall be binding upon and inure to the benefit
of the Parties and their respective successors, heirs (in the case of Executive) and permitted
assigns. No rights or obligations of INTELLECT under

15

 

this Agreement may be assigned or transferred by INTELLECT except that such rights or obligations
may be assigned or transferred in connection with the sale or transfer of all or substantially all
of INTELLECT’s assets; provided that, the assignee or transferee is the successor to all or
substantially all of INTELLECT’s assets and such assignee or transferee assumes INTELLECT’s
liabilities, obligations and duties as contained in this Agreement, either contractually or as a
matter of law. INTELLECT further agrees that, in the event of a sale or transfer of assets as
described in the preceding sentence, it shall take whatever action it legally can to cause such
assignee or transferee to expressly assume INTELLECT’s liabilities, obligations and duties
hereunder. No rights or obligations of Executive under this Agreement may be assigned or
transferred by Executive other than his rights to compensation and benefits, which may be
transferred only by will or operation of law, except as provided in Section 25 below.

19. REPRESENTATION. INTELLECT represents and warrants that it is fully authorized and empowered to
enter into this Agreement and that the performance of its obligations under this Agreement will not
violate any agreement between it and any other person, firm or organization.

20. ENTIRE AGREEMENT. This Agreement (and any option or Restricted Stock grant agreements)
contains the entire understanding and agreement between the Parties concerning the subject matter
contained herein and, as of the Effective Date, with respect thereto supersedes all prior
agreements, understandings, discussions, negotiations and undertakings, whether written or oral,
between the Parties with respect thereto, (including, without limitation, the Prior Agreement,
which is being amended and restated as set forth herein).

21. AMENDMENT OR WAIVER. No provision in this Agreement may be amended unless such amendment is
agreed to in writing and signed by Executive and an authorized officer of INTELLECT. Except as set
forth herein, no delay or omission to exercise any right, power or remedy accruing to any Party
shall impair any such right, power or remedy or shall be construed to be a waiver of or an
acquiescence to any breach hereof. No waiver by either Party of any breach by the other Party of
any condition or provision contained in this Agreement to be performed by such other Party shall be
deemed a waiver of a similar or dissimilar condition or provision at the same or any prior or
subsequent time.

Any waiver must be in writing and signed by Executive or an authorized officer of INTELLECT, as the
case may be.

22. SEVERABILITY. In the event that any provision or portion of this Agreement, including, without
limitation, Section 11, 12 or 13, shall be determined to be invalid or unenforceable for any
reason, in whole or in part, the remaining provisions of this Agreement shall be unaffected thereby
and shall remain in full force and effect to the fullest extent permitted by law.

16

 

23. SURVIVORSHIP. The respective rights and obligations of the Parties hereunder shall survive any
termination of Executive’s employment to the extent necessary to the intended preservation of such
rights and obligations.

24. BENEFICIARIES/REFERENCES. Executive shall be entitled, to the extent permitted under any
applicable law, to select and change a beneficiary or beneficiaries to receive any compensation or
benefit payable hereunder following Executive’s death by giving INTELLECT written notice thereof.
In the event of Executive’s death or a judicial determination of his incompetence, reference in
this Agreement to Executive shall be deemed, where appropriate, to refer to his beneficiary, estate
or other legal representative.

25. GOVERNING LAW/JURISDICTION. This Agreement shall be governed by and construed and interpreted
in accordance with the laws of New York without reference to principles of conflict of laws.
Subject to Section 15, INTELLECT and Executive hereby consent to the jurisdiction of any or all of
the following courts for purposes of resolving any dispute under this Agreement: (i) the United
States District Court for New York, or (ii) any of the courts of the State of New York. INTELLECT
and Executive further agree that any service of process or notice requirements in any such
proceeding shall be satisfied if the rules of such court relating thereto have been substantially
satisfied. INTELLECT and Executive hereby waive, to the fullest extent permitted by applicable law,
any objection which it or he may now or hereafter have to such jurisdiction and any defense of
inconvenient forum.

26. NOTICES. Any notice given to a Party shall be in writing and shall be deemed to have been
given when delivered personally or sent by certified or registered mail, postage prepaid, return
receipt requested, duly addressed to the Party concerned at the address indicated below or to such
changed address as such Party may subsequently give such notice of:

If to INTELLECT:

INTELLECT TECHNOLOGIES, INC.

7 West 18th Street

New York, NY 10011

Attention: Chief Financial Officer

with copies to (such copies not constituting notice):

INTELLECT TECHNOLOGIES, INC.

7 West 18th Street

New York, NY 10011

Attention: Chairman of the Governance and Nominating Committee of the Board

Brown Rudnick Berlack Israels LLP

One Financial Center

Boston, MA 02111

Attention: Timothy Maguire, Esq.

17

 

If to Executive:

Dr. Daniel Chain

205 East 16th Street, Apt 3B

New York, NY 10003

With a copy to (such copy not constituting notice):

Miller, Canfield, Paddock and Stone, P.L.L.C.

1450 Broadway, 41st Floor

New York, NY 10018

Attention: Geoffrey M. Chinn. Esq.

27. HEADINGS. The headings of the sections contained in this Agreement are for convenience only
and shall not be deemed to control or affect the meaning or construction of any provision of this
Agreement.

28. SECTION 409A. The intent of the parties is that this Agreement will be in full compliance with
Section 409A, and in the event that any provision of this Agreement is determined to be
inconsistent with the requirements of Section 409A as determined in the opinion of INTELLECT’s
legal counsel, such provision shall be automatically adjusted (including, without limitation, by
delay of payments otherwise due) to the extent necessary to comply therewith in a manner that
maintains the original intent of the parties to the maximum extent possible avoids the imposition
of an additional tax under Section 409A of the Code.

29. COUNTERPARTS. This Agreement may be executed in two or more counterparts.

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

	 	 	 	 	 
	 

	 	INTELLECT NEUROSCIENCES, INC.
	 	 
	 
	 	 	 	 
	 

	 	/s/ Elliot Maza	 	 
	 

	 	 	 	 
	 

	 	By:    Elliot Maza	 	 
	 

	 	Title: Executive Vice President and Chief Financial Officer	 	 
	 
	 	 	 	 
	 

	 	EXECUTIVE	 	 
	 
	 	 	 	 
	 

	 	/s/ Daniel Chain	 	 
	 

	 	 	 	 
	 

	 	Daniel Chain	 	 

18exv10w13

 

Exhibit
10.13

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

AGREEMENT, made and entered into as of the 15th day of January, 2007 by and between Intellect
Neurosciences, Inc., a Delaware corporation with principal offices at 7 West 18th street, New York,
NY 10011 (together with its successors and assigns, “INTELLECT”), and Elliot Maza (the
“EXECUTIVE”).

W I T N E S S E T H:

WHEREAS, INTELLECT desires to continue to employ Executive pursuant to an agreement embodying the
terms of such employment (this “AGREEMENT”) and Executive desires to enter into this Agreement and
to continue in such employment, subject to the terms and provisions of this Agreement, which amends
and restates the Employment Agreement entered into as of May 16, 2006 by and between INTELLECT and
Executive (the “PRIOR AGREEMENT”);

NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein and for
other good and valuable consideration, the receipt of which is mutually acknowledged, INTELLECT and
Executive (individually a “PARTY” and together the “PARTIES”) agree as follows:

1. DEFINITIONS.

	(a)	 	“ACTUAL ANNUAL INCENTIVE” means the highest of the actual annual incentives paid to Executive
for the three fiscal years ended immediately prior to the fiscal year in which the Termination
Date occurs.
	 
	(b)	 	“BASE SALARY” shall have the meaning set forth in Section 4.
	 
	(c)	 	“BOARD” shall have the meaning set forth in Section 3(a).
	 
	(d)	 	“CAUSE” shall have the meaning set forth in Section 10(b).
	 
	(e)	 	“CHANGE IN CONTROL” shall have the meaning set forth in Section 10(c).
	 
	(f)	 	“CODE” shall mean the Internal Revenue Code of 1986, as amended, and the regulations
promulgated thereunder.
	 
	(g)	 	“COMMITTEE” shall have the meaning set forth in Section 4.
	 
	(h)	 	“CONFIDENTIAL INFORMATION” shall have the meaning set forth in Section 11(c).
	 
	(i)	 	“EFFECTIVE DATE” shall have the meaning set forth in Section 2(a).
	 
	(j)	 	“MONTHLY CONTINUATION PAYMENTS” shall have the meaning set forth in Section 10(c).
	 
	(k)	 	“ORIGINAL TERM” shall have the meaning set forth in Section 2(a).
	 
	(l)	 	“RENEWAL TERM” shall have the meaning set forth in Section 2(a).

1

 

	(m)	 	“SECTION 409A” shall have the meaning set forth in Section 10(c).
	 
	(n)	 	“SEVERANCE PERIOD” shall have the meaning set forth
in Section 10(c)(ii) below, except as
provided otherwise in Section 10(e).
	 
	(o)	 	“SUBSIDIARY” shall have the meaning set forth in Section 11(d).
	 
	(p)	 	“TERM” shall have the meaning set forth in Section 2(a).
	 
	(q)	 	“TERMINATION BY EXECUTIVE FOR GOOD REASON” shall have the meaning set forth in Section 10(c).
	 
	(r)	 	“TERMINATION WITHOUT CAUSE” shall have the meaning set forth in Section 10(c).

2. TERM OF EMPLOYMENT. The term of Executive’s employment under this Agreement shall commence on
the date of this Agreement (the “EFFECTIVE DATE”) and end on January 14, 2012 (the “ORIGINAL
TERM”), unless terminated earlier in accordance herewith or extended in accordance with this
section. The Original Term shall be automatically renewed for additional one-year terms (each, a
“RENEWAL TERM”), unless at least 180 days prior to the expiration of the Original Term or the
Renewal Term, either Party notifies the other Party in writing that he or it is electing to
terminate this Agreement at the expiration of the then current Term. “TERM” shall mean the
Original Term and, unless the agreement is terminated prior to its commencement, the Renewal Term.
If a Change in Control shall have occurred during the Term, notwithstanding any other provision of
this section, the Term shall not expire earlier than two years after such Change in Control.

3. POSITION, DUTIES AND RESPONSIBILITIES.

     (a) GENERALLY. Executive shall serve as Executive Vice President and Chief Financial Officer
(“CFO”) of INTELLECT, subject to the limitations set forth in the final paragraph of the definition
of Termination by Executive for Good Reason contained in Section 10(c). In any and all such
capacities, Executive shall report solely to the Chief Executive Officer (“CEO”). Executive shall
have and perform such duties, responsibilities, and authorities as are customary for the CFO of
corporations of similar size and businesses as INTELLECT as they may exist from time to time and as
are consistent with such positions and status, provided that during the Term, Executive’s position
including status, offices, titles and reporting requirements, authority, duties and
responsibilities shall be at least commensurate in all respects with the most significant of those
held, exercised and assigned immediately preceding the Effective Date. Executive shall devote
substantially all of his business time and attention (except for periods of vacation or absence due
to illness), and his best efforts, abilities, experience, and talent to the positions of Executive
Vice President and CFO of INTELLECT.

     (b) OTHER ACTIVITIES. Anything herein to the contrary notwithstanding, nothing in this
Agreement shall preclude Executive from (i) serving on the boards of directors of a reasonable
number of other corporations, trade associations and/or charitable organizations, (ii) engaging in
charitable activities and community affairs delivering lectures, fulfilling speaking engagements or
teaching at educational institutions, and (iii) managing his personal investments

2

 

and affairs, provided that such activities do not materially interfere with the proper
performance of his duties and responsibilities under this Agreement. It is expressly understood and
agreed that to the extent that any such activities have been conducted by Executive prior to the
Effective Date, the continued conduct of such activities or the conduct of activities similar in
nature and scope thereto subsequent to the Effective Date shall not thereafter be deemed to
interfere with the performance of Executive’s responsibilities to INTELLECT.

     (c) PLACE OF EMPLOYMENT. Executive’s principal place of employment shall be at INTELLECT’s
corporate offices, as at the Effective Date or any location less than 30 miles therefrom.

     (d) ANNUAL OBJECTIVES. Executive acknowledges that the Board, in consultation with Executive,
will establish annual objectives for Executive. Executive agrees to use his best efforts to
substantially achieve these annual objectives, provided, however, that the failure to achieve these
annual objectives shall not, by itself, constitute a breach of this Agreement and shall not, by
itself, give rise to a termination for Cause.

4. BASE SALARY. Executive shall be paid an annualized salary (“BASE SALARY”), payable in
accordance with INTELLECT’s regular payroll practices as at the Effective Date, of not less than
$300,000, subject to review on an annual basis at the discretion of the Board’s Compensation
Committee (the “COMMITTEE”), provided, that in no event may Base Salary be decreased.

5. ANNUAL INCENTIVE AWARDS. The Board shall, within one hundred eighty (180) days of the Effective
Date, establish an annual incentive compensation plan for INTELLECT in such form as shall be agreed
between the Board and Executive. Executive shall be eligible to participate in such plan.

6. LONG-TERM INCENTIVE PROGRAMS.

     (a) Executive shall be eligible to participate in INTELLECT’s long-term incentive compensation
programs, including stock options, stock grants and other equity awards (if established by the
Board at its discretion).

     (b) Upon adoption of the 2006 Equity Incentive Plan (the “Plan”), the Company shall grant to
the Executive an option to purchase the number of shares of Intellect’s common stock in an amount
sufficient to provide that, when combined with Executive’s existing ownership of Intellect’s common
stock on a fully diluted, as converted basis, the Executive holds 5% of Intellect’s issued and
outstanding common stock on a fully diluted, as converted basis. The exercise price per share shall
be equal to the fair market value of such common stock on the grant date. Such options shall be
subject to the terms of the Plan and applicable stock option agreement and shall vest on the
Effective Date.

7. EMPLOYEE BENEFIT PROGRAMS.

     (a) GENERAL BENEFITS. During the Term, Executive and/or Executive’s immediate family shall be
entitled to participate in such employee pension and welfare benefit plans and programs of
INTELLECT as are made available to INTELLECT’s senior-level

3

 

executives or to its employees generally, as such plans or programs may be in effect from time
to time, including without limitation, each of the following: health, medical, dental, long-term
disability, travel accident, life insurance plans or nonqualified retirement plans

     (b) VACATION. Executive shall be entitled to six weeks of vacation for each year he is
employed with INTELLECT and to a reasonable number of other days off for religious and personal
reasons. Any unused vacation days for any year shall accrue and be available in succeeding years.

8. INVENTIONS.

     (a) If at any time during the Term, Executive shall invent, discover, or devise, either by
himself or jointly with any other person, any invention, design, idea or any other form of
intangible property (together “INVENTION”) which relates to, or is connected or capable of being
utilized, directly or indirectly, in connection with any trade or business being conducted at the
time by INTELLECT or any Subsidiary or affiliate, the Invention shall, to the extent of Executive’s
entire interest, be the sole property of INTELLECT, and INTELLECT shall have the exclusive right to
use, adapt or patent (or not to do so) the same, as determined by INTELLECT in its sole and
absolute discretion. Executive shall immediately communicate to INTELLECT the full details of any
such Invention and if INTELLECT applies for a patent in respect of such Invention, it shall make
the patent application in the joint names of INTELLECT and Executive and Executive shall concur in
applying for such Invention patent, and, at INTELLECT’s sole expense, shall prepare all necessary
specifications and drawings and give every assistance in Executive’s power to procure the patent
grant. Executive’s interest in any such patent when granted shall be unconditionally and
irrevocably assigned to INTELLECT.

     (b) Executive shall, both during and after the Term, at INTELLECT’s request and sole expense,
do all reasonable acts and things and shall execute all documents that INTELLECT may consider
necessary or desirable to make such Invention available to INTELLECT and to perfect and defend
INTELLECT’s title to the Invention, including, but not limited to Executive irrevocably appointing
INTELLECT as his attorney and agent and in his name and/or on his behalf for signing, executing or
otherwise completing any deed or document and to do all acts and things that INTELLECT may
reasonably consider necessary or expedient for purposes of this Section 8.

9. REIMBURSEMENT OF BUSINESS AND OTHER EXPENSES.

     (a) GENERALLY. Executive is authorized to incur reasonable expenses in carrying out his duties
and responsibilities under this Agreement and INTELLECT shall promptly reimburse him for all
business expenses incurred in connection therewith, subject to documentation in accordance with
INTELLECT’s applicable policies

     (b) LIFE INSURANCE. During the Term, INTELLECT shall pay on Executive’s behalf, or reimburse
Executive for, $10,000 per annum towards the purchase of individual life insurance coverage.

4

 

     (c) AUTOMOBILE. During the Term, INTELLECT shall pay or reimburse Executive, at his option,
for the expenses of Executive’s automobile up to a maximum of $1,000 a month.

10. TERMINATION OF EMPLOYMENT.

     (a) TERMINATION DUE TO EXECUTIVE’S DEATH OR DISABILITY. In the event Executive’s employment
with INTELLECT is terminated due to his death or Disability, Executive, his estate or his
beneficiaries, as the case may be, shall be entitled to and their sole remedies under this
Agreement shall be:

          (i) Earned and unpaid Base Salary through the date of death or date of termination of
Executive’s employment by INTELLECT (“TERMINATION DATE”) for Disability, payable in a cash lump sum
no later than 15 days following the Termination Date;

          (ii) pro rata annual incentive award (if any) for the year in which Executive’s death or
termination for Disability occurs, as determined by the Committee in good faith at the conclusion
of the fiscal year in which Executive dies or is terminated for Disability (provided that such
award is not less than the highest such award payable to Executive during the three years
immediately preceding the Termination Date), payable in a cash lump sum no later than 15 days after
such determination;

          (iii) the balance of any incentive awards (if any) earned as of December 31 of the prior year
(but not yet paid), payable in a cash lump sum no later than 15 days following the Termination
Date; and

          (iv) all accrued and unpaid vacation time and all other additional benefits then due or earned
in accordance with applicable plans and programs of INTELLECT.

          (v) to the extent not therefore paid or provided, INTELLECT shall timely pay or provide to
Executive any other amounts or benefits required to be paid or provided for which Executive is
eligible to receive under any plan, program, policy or practice or contract or agreement of
INTELLECT and its affiliated companies (Such other amounts and benefits shall be hereinafter
referred to as the “Other Benefits”).

For purposes of this Section 10(a), the term “DISABILITY” means any illness or incapacity which
prohibits Executive from rendering services of the character as contemplated hereunder (i) for a
period of 120 consecutive days or 150 days out of 12 consecutive months.

(b) TERMINATION BY INTELLECT FOR CAUSE.

          (i) “CAUSE” shall mean:

          A. the willful and continued failure of Executive to perform substantially Executive’s duties
with INTELLECT or any of its affiliated companies (other than any such failure resulting from
incapacity due to physical or mental illness), after a written demand for substantial performance
is delivered to the Executive by the Board which specifically identifies

5

 

the manner in which the Board believes that the Executive has not substantially performed
Executive’s duties, or

          B. the willful engaging by the Executive in illegal conduct or gross misconduct which is
materially and demonstrably injurious to INTELLECT.

          C. the conviction for any criminal offense with a custodial sentence, other than road traffic
offenses.

For purposes of this provision, no act or failure to act, on the part of Executive, shall be
considered “willful” unless it is done, or omitted to be done, by the Executive in bad faith or
without reasonable belief that Executive’s action or omission was in the best interests of the
INTELLECT or any of its affiliated companies. Any act, or failure to act, based upon authority
given pursuant to a resolution duly adopted by the Board or based upon the advice of counsel for
the INTELLECT shall be conclusively presumed to be done, or omitted to be done, by Executive in
good faith and in the best interests of INTELLECT so far as the decision to act or the failure to
act is taken in reasonable reliance upon such a Board resolution or such advice. The cessation of
employment of Executive shall not be deemed to be for Cause unless and until there shall have been
delivered to the Executive a copy of a resolution duly adopted by the affirmative vote of the
entire membership of the Board at a meeting of the Board called and held for such purpose (after
reasonable notice is provided to Executive and Executive is given an opportunity, together with
counsel, to be heard before the Board), finding that, in the good faith opinion of the Board,
Executive is guilty of the conduct described in subparagraph (A) or (B) above, and specifying the
particulars thereof in detail.

          (ii) In the event INTELLECT terminates Executive’s employment for Cause, he shall be entitled
to and his sole remedies under this Agreement shall be earned and unpaid Base Salary through the
Termination Date, payable in a cash lump sum no later than 15 days following the Termination Date;
and all accrued and unpaid vacation time and all Other Benefits.

     (c) TERMINATION WITHOUT CAUSE OR BY EXECUTIVE FOR GOOD REASON PRIOR TO CHANGE IN CONTROL. In
the event Executive’s employment with INTELLECT is terminated without Cause (which termination
shall be effective as of the date specified by INTELLECT in a written notice to Executive), other
than due to Executive’s death or Disability, or in the event Executive terminates his employment
for Good Reason (as defined below), in either case prior to a Change in Control (as defined below)
Executive shall be entitled to and his sole remedies under this Agreement shall be:

          (i) earned and unpaid Base Salary through the Termination Date, payable in a cash lump sum no
later than 15 days following such date;

          (ii) the balance of any incentive awards earned as of December 31 of the prior year (but not
yet paid), payable in a cash lump sum no later than 15 days following the Termination Date;

6

 

          (iii) the sum of Executive’s (A) Base Salary, at the annualized rate in effect on the
Termination Date (or, in the event a reduction in Base Salary is a basis for a Termination by
Executive for Good Reason, then the Base Salary in effect immediately prior to such reduction), and
(B) Executive’s Actual Annual Incentive (if any), such sum divided by 12 (“MONTHLY CONTINUATION
PAYMENTS”) and which Monthly Continuation Payments are to be paid to Executive for a period of 18
months (the “SEVERANCE PERIOD”);

          (iv) any outstanding stock options or shares of Restricted Stock which are unvested shall vest
and Executive shall have the right to exercise any vested stock options during the Severance Period
or for the remainder of the exercise period;

          (v) continued participation in all medical, health and life insurance plans at the same
benefit level at which he was participating on the date of the termination of his employment until
the earlier of:

                  A. the end of the Severance Period; or

                  B. the date, or dates, he receives equivalent coverage and benefits under the plans and
programs of a subsequent employer (such coverage and benefits to be determined on a
coverage-by-coverage, or benefit-by-benefit, basis); provided that (1) if Executive is precluded
from continuing his participation in any employee benefit plan or program as provided in this
clause (viii) of this Section 10(c), he shall receive cash payments equal on an after-tax basis to
the cost to him of obtaining the benefits provided under the plan or program in which he is unable
to participate for the period specified in this clause (viii) of this Section 10(c), (2) such cost
shall be deemed to be the lowest reasonable cost that would be incurred by Executive in obtaining
such benefit himself on an individual basis, and (3) payment of such amounts shall be made
quarterly in advance; and (vi) other or additional benefits then due or earned in accordance with
applicable plans and programs of INTELLECT. Notwithstanding the foregoing, the Monthly Continuation
Payments shall be subject to delay to the extent necessary for the avoidance of adverse tax
consequences to Executive under Section 409A of the Code (“SECTION 409A”); provided, however, that
if the Monthly Continuation Payments commence more than 30 days following the Termination Date, the
first such payment shall equal the sum of all Monthly Continuation Payments that would have been
made from the Termination Date to the date of such first payment were it not for the restriction
contained in this sentence.

          (vi) all accrued and unpaid vacation pay and all Other Benefits

     “TERMINATION WITHOUT CAUSE” shall mean INTELLECT terminates Executive’s employment for any
reason other than Cause (as defined in Section 10(b)) or due to Executive’s death or Disability.

     (d) “TERMINATION BY EXECUTIVE FOR GOOD REASON” shall mean Executive’s termination of his
employment as provided in this Section 10(c) following the occurrence, without Executive’s written
consent, of one or more of the following events (except as a result of a prior termination):

7

 

                  A. a material diminution or change, adverse to Executive, in Executive’s positions, titles, or
offices as set forth in Section 3(a), status, rank, nature of duties or responsibilities, or
authority within INTELLECT, or a removal of Executive from or any failure to elect or re-elect or,
as the case may be, nominate Executive to any such positions or offices, including as a member of
the Board after delivery of written notice to the Board by Executive of such breach and Company has
not cured within and 10 business days of such notice;

                  B. an assignment of any duties to Executive which are inconsistent with his status as Chairman
or CEO of INTELLECT and other positions held under Section 3(a) or any adverse change in
Executive’s reporting relationships that is not cured within 10 business days of INTELLECT’s
receipt of written notice from Executive;

                  C. any decrease in Executive’s annual Base Salary (or any failure to review Executive’s Base
Salary on an annual basis as provided for in Section 4) or annual incentive opportunity (if any)
that is not cured within 10 business days of INTELLECT’s receipt of written notice from Executive
of such breach;

                  D. any other failure by INTELLECT to perform any material obligation under, or breach by
INTELLECT of any material provision of, this Agreement that is not cured within 10 business days of
INTELLECT’s receipt of written notice from Executive of such breach;

                  E. a relocation of Executive’s employment to a location outside a 30-mile radius of
INTELLECT’s corporate offices in New York, New York; or

                  F. any failure to secure the agreement of any successor corporation or other entity to
INTELLECT to fully assume INTELLECT’s obligations under this Agreement.

     A “CHANGE IN CONTROL” shall be deemed to have occurred if:

          (i) any Person (other than INTELLECT, any trustee or other fiduciary holding securities under
any employee benefit plan or related Trust sponsored by INTELLECT, or any company owned, directly
or indirectly, by INTELLECT’s stockholders immediately prior to the occurrence with respect to
which the evaluation is being made in substantially the same proportions as their ownership of
INTELLECT’s common stock) becomes the Beneficial Owner (except that a Person shall be deemed to be
the Beneficial Owner of all shares that any such Person has the right to acquire pursuant to any
agreement or arrangement or upon exercise of conversion rights, warrants or options or otherwise,
without regard to the sixty day period referred to in Rule 13d-3 under the Exchange Act), directly
or indirectly, of securities of INTELLECT or any Significant Subsidiary (as defined below),
representing 30% or more of the combined voting power of INTELLECT’s or such subsidiary’s then
outstanding securities;

          (ii) during any period of two (2) consecutive years, individuals who at the beginning of such
period constitute the Board, and any new director (other than a director designated by a person who
has entered into an agreement with INTELLECT to effect a transaction described in clause (i),
(iii), or (iv) of this paragraph) whose election by the Board or

8

 

nomination for election by INTELLECT’s stockholders was approved by a vote of at least two-thirds
of the directors then still in office who either were directors at the beginning of the two-year period or whose election or nomination for
election was previously so approved but excluding for this purpose any such new director whose initial assumption of office occurs as a result of either
an actual or threatened election contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) or other actual
or threatened solicitation of proxies or consents by or on behalf of an individual, corporation, partnership, group, associate or other entity or Person other
than the Board, cease for any reason to constitute at least a majority of the Board;

          (iii) the consummation of a merger or consolidation of INTELLECT or any subsidiary owning
directly or indirectly all or substantially all of the consolidated assets of INTELLECT (a
“SIGNIFICANT SUBSIDIARY”) with any other entity, other than a merger or consolidation which would
result in the voting securities of INTELLECT or a Significant Subsidiary outstanding immediately
prior thereto continuing to represent (either by remaining outstanding or by being converted into
voting securities of the surviving or resulting entity) more than 70% of the combined voting power
of the surviving or resulting entity outstanding immediately after such merger or consolidation; or

          (iv) the stockholders of INTELLECT approve a plan or agreement for the sale or disposition of
all or substantially all of the consolidated assets of INTELLECT (other than such a sale or
disposition immediately after which such assets will be owned directly or indirectly by the
stockholders of INTELLECT in substantially the same proportions as their ownership of the common
stock of INTELLECT immediately prior to such sale or disposition.

     For purposes of this definition of Change in Control:

                  A. The term “BENEFICIAL OWNER” shall have the meaning ascribed to such term in Rule 13d-3
under the Exchange Act (including any successor to such Rule).

                  B. The term “EXCHANGE ACT” means the Securities Exchange Act of 1934, as amended from time to
time, or any successor act thereto.

                  C. The term “PERSON” shall have the meaning ascribed to such term in Section 13(d)-5 of the
Exchange Act.

     (e) VOLUNTARY TERMINATION; TERMINATION FOLLOWING ELECTION BY INTELLECT TO TERMINATE THE
AGREEMENT AT THE END OF THE TERM. In the event of a termination of employment by Executive on his
own initiative after delivery of 10 business days advance written notice (other than a termination
due to death or Disability, or by Executive for Good Reason), or a termination of Executive’s
employment as a result of INTELLECT’s election to terminate this Agreement at the end of the Term
as provided in Section 2, Executive shall have the same entitlements as provided in Section
10(b)(iii) above for a termination for Cause.

     (f) TERMINATION WITHOUT CAUSE FOLLOWING A CHANGE IN CONTROL; TERMINATION BY EXECUTIVE FOR GOOD
REASON FOLLOWING A

9

 

CHANGE IN CONTROL. In the event Executive’s employment with INTELLECT is terminated by
INTELLECT without Cause (which termination shall be effective as of the date specified by INTELLECT
in a written notice to Executive), other than due to Executive’s death or Disability, or by
Executive for Good Reason, in either case within two (2) years following a Change in Control,
Executive shall be entitled to and his sole remedies under this Agreement shall be:

          (i) earned and unpaid Base Salary through the Termination Date payable in a cash lump sum no
later than 15 days following such date;

          (ii) an amount equal to 2 times the sum of (A) Executive’s Base Salary, at the annualized rate
in effect on the Termination Date (or, in the event a reduction in Base Salary is a basis for a
Termination by Executive for Good Reason, then the Base Salary in effect immediately prior to such
reduction), and (B) Executive’s Actual Annual Incentive (if any);

          (iii) the balance of any incentive awards earned as of December 31 of the prior year (but not
yet paid), payable in a lump sum no later than 15 days following the Termination Date;

          (iv) immediate vesting of all outstanding stock options and Restricted Stock and the right to
exercise such stock options during the Severance Period or for the remainder of the exercise
period; and

          (v) continued participation in all medical, health and life insurance plans at the same
benefit level at which he was participating on the date of termination of his employment until the
earlier of:

                  A. the end of the Severance Period; or

                  B. the date, or dates, Executive receives equivalent coverage and benefits under the plans and
programs of a subsequent employer (such coverage and benefits to be determined on a
coverage-by-coverage, or benefit-by-benefit, basis); provided that (1) if Executive is precluded
from continuing his participation in any employee benefit plan or program as provided in this
clause (ix) of this Section 10(e), he shall receive cash payments equal on an after-tax basis to
the cost to him of obtaining the benefits provided under the plan or program in which he is unable
to participate for the period specified in this clause (ix) of this Section 10(e), (2) such cost
shall be deemed to be the lowest reasonable cost that would be incurred by Executive in obtaining
such benefit himself on an individual basis, and (3) payment of such amounts shall be made
quarterly in advance; and (x)other or additional benefits then due or earned in accordance with
applicable plans and programs of INTELLECT.

     For purposes of any termination pursuant to this Section 10(e), the term “SEVERANCE PERIOD”
shall mean the period of 24 months following the Termination Date.

          (vi) all accrued and unpaid vacation pay and all Other Benefits

     (g) NO MITIGATION; NO OFFSET. In the event of any termination of employment, Executive shall
be under no obligation to seek other employment; amounts due Executive under

10

 

this Agreement shall not be offset by any remuneration attributable to any subsequent
employment that he may obtain or for any other reason.

     (h) NATURE OF PAYMENTS. Any amounts due under this Section 10 are in the nature of severance
payments considered to be reasonable by INTELLECT and are not in the nature of a penalty.

     (i) EXCLUSIVITY OF SEVERANCE PAYMENTS. Upon termination of Executive’s employment during the
Term, he shall not be entitled to any severance payments or severance benefits from INTELLECT or
any payments by INTELLECT on account of any claim by him of wrongful termination, including claims
under any federal, state or local human and civil rights or labor laws, other than the payments and
benefits provided in this Section 10.

     (j) RELEASE OF EMPLOYMENT CLAIMS. Executive and INTELLECT agree, as a condition to receipt of
the termination payments and benefits provided for in this Section 10, that he will execute a
mutual release agreement, in a form reasonably satisfactory to INTELLECT, releasing their claims
against one another arising out of Executive’s employment (other than enforcement of this
Agreement, Executive’s rights under any of INTELLECT’s incentive compensation and employee benefit
plans and programs to which he is entitled under this Agreement, any claim for any tort for
personal injury not arising out of or related to his termination of employment and Executive’s
right to indemnification under INTELLECT’s by-laws or coverage under any director’s and officer’s
insurance policy).

11. CONFIDENTIALITY; COOPERATION WITH REGARD TO LITIGATION; NON-DISPARAGEMENT.

     (a) During the Term and thereafter, Executive shall not, without INTELLECT’s prior written
consent, disclose to anyone (except in good faith in the ordinary course of business to a person
who will be advised by Executive to keep such information confidential) or make use of any
Confidential Information except in the performance of his duties hereunder or when required to do
so by legal process, by any governmental agency having supervisory authority over the business of
INTELLECT or by any administrative or legislative body (including a committee thereof) that
requires him to divulge, disclose or make accessible such information. In the event that Executive
is so ordered, he shall give prompt written notice to INTELLECT to allow INTELLECT the opportunity
to object to or otherwise resist such order.

     (b) During the Term and thereafter, Executive shall not disclose the existence or contents of
this Agreement beyond what is disclosed in any proxy statement or documents filed with the
government unless and to the extent such disclosure is required by law, by a governmental agency,
or in a document required by law to be filed with a governmental agency or in connection with
enforcement of his rights under this Agreement. In the event that disclosure is so required,
Executive shall give prompt written notice to INTELLECT to allow INTELLECT the opportunity to
object to or otherwise resist such requirement. This restriction shall not apply to such disclosure
by him to members of his immediate family, his tax, legal or financial advisors, any lender, or tax
authorities, or to potential future employers to the extent necessary, each of whom shall be
advised not to disclose such information.

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     (c) “CONFIDENTIAL INFORMATION” shall mean all information concerning the business of INTELLECT
or any Subsidiary relating to any of their products, product development, trade secrets, customers,
suppliers, finances, and business plans and strategies. Excluded from the definition of
Confidential Information is information (i) that is or becomes part of the public domain, other
than through the breach of this Agreement by Executive or (ii) regarding INTELLECT’s business or
industry properly acquired by Executive in the course of his career as an executive in INTELLECT’s
industry and independent of Executive’s employment by INTELLECT. For this purpose, information
known or available generally within the trade or industry of INTELLECT or any Subsidiary shall be
deemed to be known or available to the public.

     (d) “SUBSIDIARY” shall mean any corporation controlled directly or indirectly by INTELLECT.

     (e) Executive agrees to cooperate with INTELLECT, during the Term and thereafter, by making
himself reasonably available to testify on behalf of INTELLECT or any Subsidiary in any action,
suit, or proceeding, whether civil, criminal, administrative, or investigative, and to assist
INTELLECT, or any Subsidiary, in any such action, suit, or proceeding, by providing information and
meeting and consulting with the Board or its representatives or counsel, or representatives or
counsel to INTELLECT, or any Subsidiary as reasonably requested; provided however, that the same
does not materially interfere with his then current professional activities. INTELLECT agrees to
reimburse Executive, on an after-tax basis, for all expenses actually incurred in connection with
his provision of testimony or assistance.

     (f) Executive agrees that, during the Term and thereafter he will not make statements or
representations, or otherwise communicate, directly or indirectly, in writing, orally, or
otherwise, or take any action which may, directly or indirectly, disparage INTELLECT or any
Subsidiary or their respective officers, directors, employees, advisors, businesses or reputations.
INTELLECT agrees that, during the Term and thereafter INTELLECT will not make statements or
representations, or otherwise communicate, directly or indirectly, in writing, orally, or
otherwise, or take any action which may directly or indirectly, disparage Executive or his business
or reputation. Notwithstanding the foregoing, nothing in this Agreement shall preclude either
Executive or INTELLECT from making truthful statements or disclosures that are required by
applicable law, regulation or legal process.

12. NON-COMPETITION. During the period beginning with the Effective Date and ending 24 months
following the Termination Date, Executive shall not engage in Competition with INTELLECT or any
Subsidiary. “COMPETITION” shall mean engaging in any activity, except as provided below, for a
Competitor of INTELLECT or any Subsidiary, whether as an employee, consultant, principal, agent,
officer, director, partner, shareholder (except as a less than one percent shareholder of a
publicly traded company) or otherwise. A “COMPETITOR” shall mean any corporation or other entity
which competes directly or indirectly with any business conducted by INTELLECT relating to
Alzhiemer’s disease , as determined on the date of termination of Executive’s employment. If
Executive commences employment or becomes a consultant, principal, agent, officer, director,
partner, or shareholder of any entity that is not a Competitor at the time Executive initially
becomes employed or becomes a consultant, principal, agent, officer, director, partner, or
shareholder of the entity, future activities of such entity shall

12

 

not result in a violation of this provision unless (x) such activities were contemplated by
Executive or the entity to which he is providing services at the time Executive initially became
employed or becomes a consultant, principal, agent, officer, director, partner, or shareholder of
the entity or (y) Executive commences directly or indirectly overseeing or managing the activities
of an entity which becomes a Competitor during the Restriction Period.

13. NON-SOLICITATION/ NON-INTERFERENCE. During the period beginning with the Effective Date and
ending 24 months following the Termination Date, Executive shall not induce employees of INTELLECT
or any Subsidiary to terminate their employment, nor shall Executive solicit or encourage any of
INTELLECT’s or any Subsidiary’s non-retail customers, or any corporation or other entity in a joint
venture relationship (directly or indirectly) with INTELLECT or any Subsidiary, to terminate or
diminish their relationship with INTELLECT or any Subsidiary or to violate any agreement with any
of them. During such period, Executive shall not hire, either directly or through any employee,
agent or representative, any employee of INTELLECT or any Subsidiary or any person who was employed
by INTELLECT or any Subsidiary within 180 days of such hiring.

14. REMEDIES. If Executive breaches any of the provisions contained in Sections 11, 12 or 13 above
(which Sections, for purposes of clarity, are subject to Section 23), INTELLECT (a) subject to
Section 15, shall have the right to terminate immediately all payments and benefits due under this
Agreement and (b) shall have the right to seek injunctive relief. Executive acknowledges that such
a breach of Sections 11, 12 or 13 would cause irreparable injury and that money damages would not
provide an adequate remedy for INTELLECT; provided however, the foregoing shall not prevent
Executive from contesting the issuance of any such injunction on the ground that no violation or
threatened violation of Section 11, 12 or 13 has occurred.

15. RESOLUTION OF DISPUTES.

     (a) Any controversy or claim arising out of or relating to this Agreement or any breach or
asserted breach hereof or questioning the validity and binding effect hereof arising under or in
connection with this Agreement, other than seeking injunctive relief under Section 14, shall be
resolved by binding arbitration, to be held at an office closest to INTELLECT’s principal offices
in accordance with the rules and procedures of the American Arbitration Association. Judgment upon
the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.
Pending the resolution of any arbitration or court proceeding, INTELLECT shall continue payment of
all amounts and benefits due Executive under this Agreement. All costs and expenses of any
arbitration or court proceeding (including fees and disbursements of counsel) shall be borne by the
respective party incurring such costs and expenses, but INTELLECT shall reimburse Executive for
such reasonable costs and expenses in the event he substantially prevails in such arbitration or
court proceeding.

     (b) Notwithstanding the foregoing, following a Change in Control all reasonable costs and
expenses (including fees and disbursements of counsel) incurred by Executive pursuant to this
Section 15 shall be paid on behalf of or reimbursed to Executive promptly by INTELLECT; provided
however, that no reimbursement shall be made of such expenses if and to the extent the
arbitrator(s) determine(s) that any of Executive’s litigation assertions or defenses were in bad
faith or frivolous.

13

 

16. INDEMNIFICATION.

     (a) INTELLECT INDEMNITY. INTELLECT agrees that if Executive is made a party, or is threatened
to be made a party, to any action, suit or proceeding, whether civil, criminal, administrative or
investigative (a “PROCEEDING”), by reason of the fact that he is or was a director, officer or
employee of INTELLECT or any Subsidiary or is or was serving at the request of INTELLECT or any
Subsidiary as a director, officer, member, employee or agent of another corporation, partnership,
joint venture, trust or other enterprise, including service with respect to employee benefit plans,
whether or not the basis of such Proceeding is Executive’s alleged action in an official capacity
while serving as a director, officer, member, employee or agent, Executive shall be indemnified and
held harmless by INTELLECT to the fullest extent legally permitted or authorized by INTELLECT’s
certificate of incorporation or bylaws or resolutions of the Board against all cost, expense,
liability and loss (including without limitation, attorney’s fees, judgments, fines, ERISA excise
taxes or penalties and amounts paid or to be paid in settlement) reasonably incurred or suffered by
Executive in connection therewith, and such indemnification shall continue as to Executive even if
he has ceased to be a director, member, officer, employee or agent of INTELLECT or other entity and
shall inure to the benefit of Executive’s heirs, executors and administrators. INTELLECT shall
advance to Executive all reasonable costs and expenses to be incurred by him in connection with a
Proceeding within 20 days after receipt by INTELLECT of a written request for such advance.
Subject to the foregoing sentence, in the event that it is inappropriate for INTELLECT and the
Executive to be represented by the same legal counsel due to actual or potential differing
interests between them, then the Executive shall be permitted to select his own legal counsel and
INTELLECT shall reimburse the Executive for attorney’s fees and expenses incurred by the Executive
in defending any claim, demand, action, suit or proceeding arising from his employment by
INTELLECT. Such request shall include an undertaking by Executive to repay the amount of such
advance if it shall ultimately be determined that he is not entitled to be indemnified against such
costs and expenses. The provisions of this Section 16(a) shall not be deemed exclusive of any other
rights of indemnification to which Executive may be entitled or which may be granted to him, and it
shall be in addition to any rights of indemnification to which he may be entitled under any policy
of insurance.

     (b) NO PRESUMPTION REGARDING STANDARD OF CONDUCT. Neither the failure of INTELLECT (including
its Board, independent legal counsel or stockholders) to have made a determination prior to the
commencement of any proceeding concerning payment of amounts claimed by Executive under Section
16(a) above that indemnification of Executive is proper because he has met the applicable standard
of conduct, nor a determination by INTELLECT (including its Board, independent legal counsel or
stockholders) that Executive has not met such applicable standard of conduct, shall create a
presumption that Executive has not met the applicable standard of conduct.

     (c) LIABILITY INSURANCE. INTELLECT hereby represents and warrants to Executive that it
maintains as of the Effective Date and shall continue to maintain a directors and officers’
liability insurance policy covering Executive .

17. EFFECT OF AGREEMENT ON OTHER BENEFITS. Except as specifically provided in this Agreement, the
existence of this Agreement shall not be interpreted to preclude,

14

 

prohibit or restrict Executive’s participation in any other employee benefit or other plans or
programs in which he currently participates.

18. ASSIGNABILITY; BINDING NATURE. This Agreement shall be binding upon and inure to the benefit
of the Parties and their respective successors, heirs (in the case of Executive) and permitted
assigns. No rights or obligations of INTELLECT under this Agreement may be assigned or transferred
by INTELLECT except that such rights or obligations may be assigned or transferred in connection
with the sale or transfer of all or substantially all of INTELLECT’s assets; provided that, the
assignee or transferee is the successor to all or substantially all of INTELLECT’s assets and such
assignee or transferee assumes INTELLECT’s liabilities, obligations and duties as contained in this
Agreement, either contractually or as a matter of law. INTELLECT further agrees that, in the event
of a sale or transfer of assets as described in the preceding sentence, it shall take whatever
action it legally can to cause such assignee or transferee to expressly assume INTELLECT’s
liabilities, obligations and duties hereunder. No rights or obligations of Executive under this
Agreement may be assigned or transferred by Executive other than his rights to compensation and
benefits, which may be transferred only by will or operation of law, except as provided in Section
25 below.

19. REPRESENTATION. INTELLECT represents and warrants that it is fully authorized and empowered to
enter into this Agreement and that the performance of its obligations under this Agreement will not
violate any agreement between it and any other person, firm or organization.

20. ENTIRE AGREEMENT. This Agreement (and any option or Restricted Stock grant agreements)
contains the entire understanding and agreement between the Parties concerning the subject matter
contained herein and, as of the Effective Date, with respect thereto supersedes all prior
agreements, understandings, discussions, negotiations and undertakings, whether written or oral,
between the Parties with respect thereto, (including, without limitation, the Prior Agreement,
which is being amended and restated as set forth herein).

21. AMENDMENT OR WAIVER. No provision in this Agreement may be amended unless such amendment is
agreed to in writing and signed by Executive and an authorized officer of INTELLECT. Except as set
forth herein, no delay or omission to exercise any right, power or remedy accruing to any Party
shall impair any such right, power or remedy or shall be construed to be a waiver of or an
acquiescence to any breach hereof. No waiver by either Party of any breach by the other Party of
any condition or provision contained in this Agreement to be performed by such other Party shall be
deemed a waiver of a similar or dissimilar condition or provision at the same or any prior or
subsequent time.

Any waiver must be in writing and signed by Executive or an authorized officer of INTELLECT, as the
case may be.

22. SEVERABILITY. In the event that any provision or portion of this Agreement, including, without
limitation, Section 11, 12 or 13, shall be determined to be invalid or unenforceable for any
reason, in whole or in part, the remaining provisions of this Agreement shall be unaffected thereby
and shall remain in full force and effect to the fullest extent permitted by law.

15

 

23. SURVIVORSHIP. The respective rights and obligations of the Parties hereunder shall survive any
termination of Executive’s employment to the extent necessary to the intended preservation of such
rights and obligations.

24. BENEFICIARIES/REFERENCES. Executive shall be entitled, to the extent permitted under any
applicable law, to select and change a beneficiary or beneficiaries to receive any compensation or
benefit payable hereunder following Executive’s death by giving INTELLECT written notice thereof.
In the event of Executive’s death or a judicial determination of his incompetence, reference in
this Agreement to Executive shall be deemed, where appropriate, to refer to his beneficiary, estate
or other legal representative.

25. GOVERNING LAW/JURISDICTION. This Agreement shall be governed by and construed and interpreted
in accordance with the laws of New York without reference to principles of conflict of laws.
Subject to Section 15, INTELLECT and Executive hereby consent to the jurisdiction of any or all of
the following courts for purposes of resolving any dispute under this Agreement: (i) the United
States District Court for New York, or (ii) any of the courts of the State of New York. INTELLECT
and Executive further agree that any service of process or notice requirements in any such
proceeding shall be satisfied if the rules of such court relating thereto have been substantially
satisfied. INTELLECT and Executive hereby waive, to the fullest extent permitted by applicable law,
any objection which it or he may now or hereafter have to such jurisdiction and any defense of
inconvenient forum.

26. NOTICES. Any notice given to a Party shall be in writing and shall be deemed to have been
given when delivered personally or sent by certified or registered mail, postage prepaid, return
receipt requested, duly addressed to the Party concerned at the address indicated below or to such
changed address as such Party may subsequently give such notice of:

If to INTELLECT:

INTELLECT TECHNOLOGIES, INC.

7 West 18th Street

New York, NY 10011

Attention: Chief Executive Officer

with copies to (such copies not constituting notice):

INTELLECT TECHNOLOGIES, INC.

7 West 18th Street

New York, NY 10011

Attention: Chairman of the Governance and Nominating Committee of the Board

Brown Rudnick Berlack Israels LLP

One Financial Center

Boston, MA 02111

Attention: Timothy Maguire, Esq.

If to Executive:

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Elliot Maza

114 Chestnut Street

Englewood, NJ 07631

27. HEADINGS. The headings of the sections contained in this Agreement are for convenience only
and shall not be deemed to control or affect the meaning or construction of any provision of this
Agreement.

28. SECTION 409A. The intent of the parties is that this Agreement will be in full compliance with
Section 409A, and in the event that any provision of this Agreement is determined to be
inconsistent with the requirements of Section 409A as determined in the opinion of INTELLECT’s
legal counsel, such provision shall be automatically adjusted (including, without limitation, by
delay of payments otherwise due) to the extent necessary to comply therewith in a manner that
maintains the original intent of the parties to the maximum extent possible avoids the imposition
of an additional tax under Section 409A of the Code.

29. COUNTERPARTS. This Agreement may be executed in two or more counterparts.

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

	 	 	 	 	 
	 

	 	INTELLECT NEUROSCIENCES, INC.
	 	 
	 
	 	 	 	 
	 

	 	/s/ Daniel Chain	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	By: Daniel Chain	 	 
	 

	 	Title: Chairman and Chief Executive Officer	 	 
	 
	 	 	 	 
	 

	 	EXECUTIVE	 	 
	 
	 	 	 	 
	 

	 	/s/ Elliot Maza	 	 
	 

	 	 	 	 
	 

	 	Elliot Maza	 	 

17

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}]]