Document:

Exhibit 10.152

 

[INSERT IRC LETTERHEAD]

 

December 30, 2002

 

 

Dr. John Bonfiglio

13195 Seagrove Street

San Diego, CA  92130

 

Dear John:

 

Pursuant to this letter agreement (the “Agreement”) and subject to
completing background investigations, we are pleased to make to you the
following offer of employment with The Immune Response Corporation (the
“Company”):

 

1.             Responsibilities

 

Your title
will be Chief Executive Officer (or CEO) of the Company, effective
January [6], 2003 (the “Effective Date”). 
As the CEO, you will report to the Board of Directors of the Company
(the “Board”).  You also will serve as a
member of the Board.

 

2.             Term of Employment

 

The initial
term of your employment shall commence on the Effective Date and shall, except
as provided in Section 4.1 hereof, continue through December 31, 2004
(the “Initial Term”).  Thereafter, the
term of this Agreement shall be automatically extended for successive and
additional two-year periods, unless either party shall provide a written notice
of termination to the other at least ninety (90) days prior to the end of
the Initial Term or any extended term. 
The term of this Agreement is subject to early termination in accordance
with the provisions set forth in Section 3 hereof.

 

3.             Compensation and Benefits

 

You shall be
entitled to the following:

 

Base salary at the annual rate of $260,000, or at such increased rate
as the Board, in its sole discretion, may hereafter from time to time determine
(“Base Salary”), payable
bi-weekly.  During the term of this Agreement,
your Base Salary will be reviewed annually by the Board to determine whether
such Base Salary should be increased in light of your duties, responsibilities
and performance, and, if it is determined by the Board that an increase is
merited, such increase shall be promptly put into effect and your Base Salary,
as so increased, shall constitute your Base Salary for purposes of this
Section 2.1.

 

 

Within thirty (30) days after the Effective Date, the Board shall
meet with you to discuss the terms and conditions under which you shall be paid
an annual bonus, whereby the Board and you shall mutually agree on (a) the
standards by which an annual bonus shall be paid to you and (b) the amount
of such annual bonus or the formula by which such annual bonus amount is to be
determined.  The bonus amount may be up
to (but not greater than) 150% of base salary.

 

3.1                                 The
Company will provide health benefits to the CEO and his family at the Company’s
cost.  The Company will also pay for a
term life insurance policy for a total of not less than $400,000.  All other benefits (disability insurance,
401k Plan, flex spending account) shall be according to the existing Company
policies.

 

3.2                                 A
minimum of four (4) weeks annual paid vacation or vacation time consistent
with that offered to other executives of the Company.

 

3.3                                 Subject
to receipt of all requisite approvals of the Board, you will receive a grant of
stock options to purchase 750,000 shares of the common stock of the Company
(the “CEO Options”) that will vest in accordance with the Company’s stock
option plan or as otherwise set forth in this Section 3.3.  The exercise price for the CEO Options will
be the closing price of the stock on the day the approval of the Board is
obtained.  The CEO Options will vest
according to the following schedule:

 

(a)                                  50,000
options will vest immediately on the Effective Date;

 

(b)                                 75,000
options will vest in such amounts and upon the achievement of such milestones
as shall be agreed to by the CEO and the Board within thirty (30) days after
the Effective Date;

 

(c)                                  125,000
options will vest immediately upon the earlier to occur of (i) the date
which is twelve (12) months after the Effective Date, (ii) if the
Board decides to relocate the CEO in accordance with Section 4.5, the date
on which the CEO and his family are legally domiciled in the State of
Pennsylvania and (iii) if the Board decides to not relocate the CEO in
accordance with Section 4.5, the date of such decision by the Board; and

 

(d)                                 The
remainder will vest pro rata over the next three years on a daily basis.

 

In the event of the occurrence of a Change of Control (as described
below), the CEO Options (or any substituted stock options) shall, as of the
date of such

 

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Change of Control, vest in full and become fully exercisable to the
extent not previously vested or exercisable, and shall continue to be
exercisable for a period of six (6) months or until the applicable expiration
date of such options (in accordance with their terms), whichever period is
shorter. For purposes of this Agreement, “Change of Control” shall mean any of
the following events:

 

(1)                                  a sale, lease or
other disposition of all or substantially all of the assets of the Company so
long as the Company’s stockholders immediately prior to such transaction will,
immediately after such transaction, fail to possess direct or indirect
beneficial ownership of more than fifty percent (50%) of the voting power of
the acquiring entity (for purposes of this section, any person who acquired
securities of the Company prior to the occurrence of such asset transaction in
contemplation of such transaction and who after such transaction possesses
direct or indirect ownership of at least ten percent (10%) of the securities of
the acquiring entity immediately following such transaction shall not be
included in the group of stockholders of the Company immediately prior to such
transaction);

 

(2)                                  either a merger or
consolidation in which the Company is not the surviving corporation and the
stockholders of the Company immediately prior to the merger or consolidation
fail to possess direct or indirect beneficial ownership of more than fifty
percent (50%) of the voting power of the securities of the surviving
corporation (or if the surviving corporation is a controlled subsidiary of
another entity, then the required beneficial ownership shall be determined with
respect to the securities of that entity which controls the surviving
corporation and is not itself a controlled subsidiary of any other entity)
immediately following such transaction, or a reverse merger in which the
Company is the surviving corporation and the stockholders of the Company
immediately prior to the reverse merger fail to possess direct or indirect
beneficial ownership of more than fifty percent (50%) of the securities of the
Company (or if the Company is a controlled subsidiary of another entity, then
the required beneficial ownership shall be determined with respect to the
securities of that entity which controls the Company and is not itself a
controlled subsidiary of any other entity) immediately following the reverse
merger (for purposes of this section, any person who acquired securities of the
Company prior to the occurrence of a merger, reverse merger, or consolidation
in contemplation of such transaction and who after such transaction possesses
direct or indirect beneficial ownership of at least ten percent (10%) of the
securities of the Company or the surviving

 

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corporation (or if the Company or the surviving corporation is a
controlled subsidiary, then of the appropriate entity as determined above)
immediately following such transaction shall not be included in the group of
stockholders of the Company immediately prior to such transaction);

 

(3)                                  an acquisition by any
person, entity or group within the meaning of Section 13(d) or 14(d) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), or any
comparable successor provisions (excluding any employee benefit plan, or
related trust, sponsored or maintained by the Company or a subsidiary or other
controlled Subsidiary of the Company) of the beneficial ownership (within the
meaning of Rule 13d-3 promulgated under the Exchange Act, or comparable
successor rule) of securities of the Company representing at least fifty
percent (50%) of the combined voting power entitled to vote in the election of
directors; or

 

(4)                                  the individuals who,
as of the date of this Agreement, are members of the Board (the “Incumbent
Board”), cease for any reason to constitute at least fifty percent (50%) of the
Board.  If the election, or nomination
for election by the Company’s stockholders, of any new director was approved by
a vote of at least fifty percent (50%) of the Incumbent Board, such new
director shall be considered as a member of the Incumbent Board.

 

Notwithstanding the foregoing, a public offering (including the initial
or any subsequent public offering) of the common stock of the Company shall not
be considered a “Change of Control.”

 

3.4                                 Reimbursement
from the Company for all reasonable and customary expenses incurred by you in
performing services under this Agreement, including travel expenses, expenses
related to wireless communications (cell phone and if necessary Blackberry) and
reasonable expenses related to home communications for the company (e.g., high
speed internet access, fax, computer and accessories if needed) and other
out-of-pocket expenses, in accordance with your expense account and the Company’s
reimbursement policies and provided that you shall submit to the Company
reasonable documentation with respect to such expenses.

 

4.             Termination of Employment

 

4.1                                 Events
of Termination

 

Your employment with the
Company may be terminated prior to the expiration of the

 

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Initial Term or extended term
set forth in Section 1.1 hereof as follows:

 

(a)                                  With
Cause.  Your employment with the
Company may be terminated at any time for “Cause.”  As used in this Agreement, the term “Cause” shall mean
(i) your willful misconduct or willful failure to fulfill and perform your
stated duties, including the obligations stated herein, which misconduct or
failure, if curable, is not fully cured to the reasonable satisfaction of the
Board within thirty (30) days after written notice thereof, (ii) any
material breach by you of any provision of this Agreement, which, if curable,
is not fully cured to the reasonable satisfaction of the Board within thirty
(30) days after written notice thereof, (iii) a refusal to relocate
in accordance with the Board’s decision as contemplated by Section 4.5 or
(iv) your committing an act of theft, fraud, dishonesty, embezzlement with
regard to the Company or your conviction of a felony.  For purposes hereof, no act, or failure to act, on your part
shall be deemed “willful” unless done, or omitted to be done, by you not in
good faith and without reasonable belief that your act, or failure to act, was
in the best interest of the Company.

 

(b)                                 Without
Cause; Good Reason.  Your employment
with the Company may be terminated, by either party, upon not less than ninety
(90) days prior written notice to the other, without Cause by the Company
or for “Good Reason” by you.  As used
herein, the term “Good Reason” shall mean the occurrence, without your consent,
of any of the following:  (i) any
material diminution of your position, duties or responsibilities hereunder
(except in each case in connection with the termination of your employment for
Cause or disability or as a result of your death, or temporarily as a result of
your illness or other absence, or any diminution of duties resulting from the
hiring by the Company of a new Chief Executive Officer) and (ii) any
material breach by the Company of any provision of this Agreement; provided,
however, that you give the Company written notice of such breach with a thirty
(30) day opportunity for the Company to cure such breach.

 

(c)                                  Death.  In the event of your death, your employment
shall terminate on the date of death.

 

(d)                                 Disability.  In the event of your Disability (as defined
below), the Company may terminate your employment by giving to you a written
notice of termination.  Such notice
shall specify the date of termination,

 

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which date
shall not be earlier than thirty (30) days after the notice of termination
given.  For purposes of this Agreement,
“Disability” means your inability to substantially perform your duties
hereunder for ninety (90) consecutive days or one hundred eighty
(180) days out of three hundred sixty five (365) days as a result of
a physical or mental illness or condition, all as determined in good faith by
the Board.

 

4.2                                 The
Company’s Obligations Upon Termination

 

Following the termination of your employment under the circumstances
described below, the Company shall pay to you the following compensation and
provide the following benefits in full satisfaction and final settlement of any
and all claims and demands that you now have or hereafter may have against the
Company in connection herewith subject to your executing and delivering a
release to the Company as provided in Section 4.4 below prior to the
provision of the compensation and benefits set forth below:

 

(a)                                  Termination
Without Cause by the Company or with Good Reason by You or Failure by the
Company to Extend Your Term.  In the
event that your employment shall be terminated by the Company pursuant to
Section 3.1(b) hereof or upon expiration of the initial or any renewal
term of this Agreement or pursuant to written notice by you in accordance with
Section 4.1(b) hereof, you will be entitled to the payment of your annual
base salary for a period of twelve (12) months from the date of
termination or expiration, as the case may be, subject to an obligation on your
part to seek gainful or other employment during such twelve (12) month
period.  In addition, any CEO Options
which have vested and remain unexercised prior to the date of termination of
the CEO’s employment by the Company pursuant to Section 3.1(b) hereof or upon
expiration of the initial or any renewal term of this Agreement or pursuant to
written notice by you in accordance with Section 4.1(b) hereof shall remain
exercisable and will not terminate until the date which is six (6) months after
such termination, expiration or written notice.  In the event that you obtain employment in any capacity or in any
position (including, but not limited to, any income you earn as an employee, consultant,
agent, representative, principal, officer, or director) with any person or
entity in the pharmaceutical and/or biotechnology industries during such twelve
(12) month period, any payments due from the Company under this
Section 4.2(a) shall be reduced, on a dollar for dollar basis, by the
amount of any income

 

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generated by
you pursuant to such employment up to six months of severance salary.

 

(b)                                 Termination
by the Company for Cause.  In the
event that your employment shall be terminated by the Company pursuant to
Section 3.1(a) hereof (or if you voluntarily resign otherwise than for
Good Reason in accordance with Section 3.1(b) hereof prior to the
expiration of the then current term of this Agreement), you shall be entitled
to no further compensation or other benefits under this Agreement, other than
any Base Salary earned by you on or prior to the date of such termination, but
not yet paid.  In addition, the Company
shall reimburse you for any expenses incurred only through the date of such
termination in accordance with Section 2.4 hereof.  Upon termination by the Company of your
employment for Cause or termination for reason other than Good Reason by you,
all of your rights under this Agreement (except as otherwise set forth herein)
shall immediately terminate and the Company shall have no further obligation to
you.

 

(c)                                  Termination
Upon Death or Disability.  In the
event that your employment shall be terminated pursuant to Section 3.1(c)
or 3.1(d) hereof, the Company shall pay you (or your estate or trust or legal
representatives) all Base Salary earned, but unpaid, through the date of
termination, and shall reimburse you (or your estate or trust or legal
representatives) for any expenses incurred through the date of such termination
in accordance with Section 3.5 hereof. 
In addition, the Company will provide you (or your estate or trust or
legal representatives).

 

4.3                                 Nature
of Payments.  All amounts to be paid
by the Company to you pursuant to this Agreement (other than Base Salary, benefits,
bonus or reimbursement of expenses) shall be considered by the parties to be
severance payments.  In the event that
such payments shall be treated as damages, it is expressly acknowledged by the
parties hereto that damages to you for termination of employment would be
difficult to ascertain and the above amounts are reasonable estimates thereof
and are not a penalty.

 

4.4                                 Release.  Notwithstanding the foregoing, as a
condition for the provision of the compensation and benefits set forth in this
Section 4, you will be required to sign a release of all claims against
the Company, its officers, agents, employees and the members of the Board, on
such terms and form provided by the Company,

 

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which shall be
binding on your estate, heirs, assignees, attorneys, agents and personal
representatives as provided therein.

 

4.5                                 Relocation.  The Company will pay all travel expenses
related to this travel and lodging while the Company is formulating and
beginning the implementation of its new strategy.  Relocation of the CEO including timelines and expectations will
be decided by the Board in its sole discretion during the first eight months of
the CEO’s employment.  The decision to
relocate will be based upon the business and strategic needs of the Company,
the financial stability of the Company and the performance of the CEO in
completing his assigned goals.  In the
event the Board decides to relocate the CEO, the Board will discuss and approve
a relocation expense allowance.

 

Confidentiality and
Non-Competition

 

Subject to any provisions of
any confidentiality agreement into which you and the Company may enter, you
agree that you will not, during the term of the service on the Board and at any
time thereafter, divulge or use, directly or indirectly, except in the course
of your directorship, any Confidential Information (as defined below) or
without the prior written approval of the Company.

 

In addition, you hereby agree
that you will not, directly or indirectly, as an as an
individual proprietor, partner, stockholder, officer, employee, director, joint
venturer, investor, lender, or in any other capacity whatsoever (other than as
the holder of not more than two percent (2%) of the total outstanding stock of
a publicly-held company), and in any city, county, state or other geographic
area where the Company is then marketing or selling its products or providing
services, engage in the business of developing, producing, marketing or selling
products or providing services of the kind or type reasonably related to the
work being developed, produced, marketed, sold or provided by the Company.

 

Further, you hereby agree:

 

4.6                                 Upon
request, to return to the Company any information, documents and other property
you may have received as a result of your directorship; and

 

4.7                                 That
the remedy at law for any breach of any of the foregoing will be inadequate and
that the Company, in addition to any remedy at law, will be entitled to
injunctive and other relief in cases of any such breach.  The provisions of this Section 3 shall
survive the termination of the term of this Agreement.

 

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4.8                                 As
used herein, “Confidential Information” shall mean any and all information
(oral and written) relating to the Company, including, without limitation, all
information relating to trade secrets, intellectual property, software,
technical or non-technical data, research and reports, customer information and
lists, employee information, methods, techniques, financial data, financial
plans or financial information, lists of actual or potential strategies, notes,
marketing approaches, sales techniques, analyses, finances, business affairs or
any other information, which, under all circumstances, ought reasonably to be
treated as confidential and/or proprietary.

 

4.9                                 You
will continue to be bound by the terms and conditions of this Section 5
for a period of five years after the termination of this Agreement, except in
the case of the provisions set forth in the second paragraph of this
Section 5 which shall survive for a period of two years after the
termination of this Agreement.

 

5.             Miscellaneous

 

5.1                                 Governing
Law.  This Agreement shall be
governed by and construed in accordance with the laws of the State of Delaware
without regard to principles of conflict of laws.

 

5.2                                 Arbitration.  Any controversy or claim based on, arising
out of or relating to the interpretation and performance of this Agreement or
any termination hereof shall be solely and finally settled by arbitration under
the rules of the American Arbitration Association, and judgment on the award
rendered in the arbitration may be entered in any court having jurisdiction
thereof.  Any such arbitration shall be
in the state of Delaware  and shall
be submitted to a single arbitrator appointed by the mutual consent of the
parties or, in the absence of such consent, by application of any party to the
American Arbitration Association.  A
decision of the arbitrator shall be final and binding upon the parties, and the
arbitrator shall be authorized to apportion fees and expenses (including
counsel fees and expenses), as the arbitrator shall deem appropriate.

 

5.3                                 Entire
Agreement; Amendment.  This
Agreement contains the complete understanding and agreement between the parties
hereto with respect to the subject matter hereof, and supersedes all prior and
contemporaneous understandings and agreements, written or oral, between the
parties relating to the subject matter hereof. 
This Agreement may not be amended except in a written document signed by
you and the Company.

 

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5.4                                 Severability.  In the event that any provision or portion
of this Agreement 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 and any such invalidity or unenforceability shall be
deemed replaced by a term or provision determined by the parties as coming
closest to expressing the intention of the invalid or unenforceable term or
provision.

 

5.5                                 Notice.  Any notice to be given hereunder shall be in
writing and delivered either in person, by nationally recognized overnight
courier, or by registered or certified first class mail, postage prepaid,
addressed to such address of the parties as set forth on the first page hereof.

 

5.6                                 Headings.  The Section headings in this Agreement are
for convenience of reference only and shall not affect its interpretation.

 

5.7                                 Counterparts.  This Agreement may be executed in two or
more counterparts, each of which shall be deemed an original, but all of which
when together shall constitute one and the same agreement.

 

5.8                                 Liability
Insurance.  Liability insurance
shall be provided to you by the Company to the     same
extent that it is provided to the other executive officers in the Company.

 

5.9                                 Indemnification.  The Company hereby indemnifies and holds you
harmless against any and all losses, claims, suits, judgments, damages,
liabilities, costs or expenses, including reasonable legal fees and expenses,
to which you may become subject in connection with the good faith performance
of your responsibilities under this Agreement.  This provision will survive termination of this Agreement.

 

[Remainder of page intentionally left blank]

 

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John, if the
foregoing accurately represents your understanding, please sign below and
return it to us.

 

Warmest regards,

 

 

	
  THE IMMUNE RESPONSE CORPORATION.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  ACCEPTED AND AGREED IN ALL RESPECTS:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  John Bonfiglio, Ph.D.

  	
   

  
			

 

11Exhibit 10.153

 

September 30, 2003

 

 

Mr. Mike Green

3452 LADY Hill Road

San Diego, CA 92130

 

Dear Mike:

 

Pursuant to this letter agreement (the “Agreement”), we are pleased to
make to you the following offer of employment with The Immune Response
Corporation (the “Company”):

 

1.                                       Responsibilities

 

Your title
will be Chief Financial Officer (or CFO) and Vice President of Finance of the
Company, effective October 1, 2003 (the “Effective Date”).  As the CFO, you will report to the CEO.

 

Term of
Employment

 

The initial
term of your employment shall commence on the Effective Date and shall, except
as provided in Section 3.1 hereof, continue through May 31, 2004  (the “Initial Term”).  Thereafter, the term of this Agreement shall
be automatically extended for successive and additional eight month periods,
unless either party shall provide a written notice of termination to the other
at least ninety (90) days prior to the end of the Initial Term or any
extended term.  The term of this
Agreement is subject to early termination in accordance with the provisions set
forth in Section 3 hereof.

 

2.                                       Compensation
and Benefits

 

You shall be
entitled to the following:

 

Base salary at the annual rate of $200,000, or at such increased rate
as the Board, in its sole discretion, may hereafter from time to time determine
(“Base Salary”), payable
bi-weekly.  Within thirty (30) days
after the Effective Date, the CEO shall meet with you to discuss the terms and
conditions under which you shall be paid an annual bonus, whereby the Board and
you shall mutually agree on (a) the standards by which an annual bonus
shall be paid to you and (b) the amount of such annual bonus or the
formula by which such annual bonus amount is to be determined.  The bonus amount may be up to (but not
greater than) 50% of base salary.

 

 

2.1                                 A
minimum of three (3) weeks annual paid vacation or vacation time
consistent with that offered to other executives of the Company. Other benefits
such as health care, the 401K plan will be offered at the same rate as consistent
with other executives.

 

2.2                                 Subject
to receipt of all requisite approvals of the Board, you will receive a grant of
stock options to purchase 60,000 shares of the common stock of the Company (the
“CFO Options”) that will vest in accordance with the Company’s stock option
plan or as otherwise set forth in this Section 2.2.  The exercise price for the CFO Options will
be the closing price of the stock on the day the approval of the Board is
obtained.  The CFO Options will vest
according to the following schedule:

 

(a)                                  25,000
options will vest in such amounts and upon the achievement of such milestones
as shall be agreed to by the CFO and the CEO within thirty (30) days after the
Effective Date;

 

(b)                                 35,000
options will vest will vest pro rata over the eight month term of the
agreement.

 

(c)                                  In
the event of the occurrence of a Change of Control (as described below), the
CFO Options (or any substituted stock options) shall, as of the date of such
Change of Control, vest in full and become fully exercisable to the extent not
previously vested or exercisable, and shall continue to be exercisable for a
period of six (6) months or until the applicable expiration date of such
options (in accordance with their terms), whichever period is shorter. For
purposes of this Agreement, “Change of Control” shall mean any of the following
events:

 

(1)                                  a sale, lease or
other disposition of all or substantially all of the assets of the Company so
long as the Company’s stockholders immediately prior to such transaction will,
immediately after such transaction, fail to possess direct or indirect
beneficial ownership of more than fifty percent (50%) of the voting power of
the acquiring entity (for purposes of this section, any person who acquired
securities of the Company prior to the occurrence of such asset transaction in
contemplation of such transaction and who after such transaction possesses
direct or indirect ownership of at least ten percent (10%) of the securities of
the acquiring entity immediately

 

2

 

following such transaction shall not be included in the group of
stockholders of the Company immediately prior to such transaction);

 

(2)                                  either a merger or
consolidation in which the Company is not the surviving corporation and the
stockholders of the Company immediately prior to the merger or consolidation
fail to possess direct or indirect beneficial ownership of more than fifty
percent (50%) of the voting power of the securities of the surviving
corporation (or if the surviving corporation is a controlled subsidiary of
another entity, then the required beneficial ownership shall be determined with
respect to the securities of that entity which controls the surviving
corporation and is not itself a controlled subsidiary of any other entity)
immediately following such transaction, or a reverse merger in which the
Company is the surviving corporation and the stockholders of the Company
immediately prior to the reverse merger fail to possess direct or indirect
beneficial ownership of more than fifty percent (50%) of the securities of the
Company (or if the Company is a controlled subsidiary of another entity, then
the required beneficial ownership shall be determined with respect to the
securities of that entity which controls the Company and is not itself a
controlled subsidiary of any other entity) immediately following the reverse
merger (for purposes of this section, any person who acquired securities of the
Company prior to the occurrence of a merger, reverse merger, or consolidation
in contemplation of such transaction and who after such transaction possesses
direct or indirect beneficial ownership of at least ten percent (10%) of the
securities of the Company or the surviving corporation (or if the Company or
the surviving corporation is a controlled subsidiary, then of the appropriate
entity as determined above) immediately following such transaction shall not be
included in the group of stockholders of the Company immediately prior to such
transaction);

 

(3)                                  an acquisition by any
person, entity or group within the meaning of Section 13(d) or 14(d) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), or any
comparable successor provisions (excluding any employee benefit plan, or
related trust, sponsored or maintained by the Company or a subsidiary or other
controlled Subsidiary of the Company) of the beneficial ownership (within the
meaning of Rule 13d-3 promulgated under the Exchange Act, or comparable
successor rule) of securities of the Company representing at least fifty
percent (50%) of the combined voting power entitled to vote in the election of
directors; or

 

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(4)                                  the individuals who,
as of the date of this Agreement, are members of the Board (the “Incumbent
Board”), cease for any reason to constitute at least fifty percent (50%) of the
Board.  If the election, or nomination
for election by the Company’s stockholders, of any new director was approved by
a vote of at least fifty percent (50%) of the Incumbent Board, such new
director shall be considered as a member of the Incumbent Board.

 

Notwithstanding the foregoing, a public offering (including the initial
or any subsequent public offering) of the common stock of the Company shall not
be considered a “Change of Control.”

 

2.3                                 Reimbursement
from the Company for all reasonable and customary expenses incurred by you in
performing services under this Agreement, including travel expenses and other
out-of-pocket expenses, in accordance with your expense account and the
Company’s reimbursement policies and provided that you shall submit to the
Company reasonable documentation with respect to such expenses.

 

3.                                       Termination
of Employment

 

3.1                                 Events
of Termination

 

Your employment with the
Company may be terminated prior to the expiration of the Initial Term or
extended term set forth in Section 1.1 hereof as follows:

 

(a)                                  With
Cause.  Your employment with the
Company may be terminated at any time for “Cause.”  As used in this Agreement, the term “Cause” shall mean
(i) your willful misconduct or willful failure to fulfill and perform your
stated duties, including the obligations stated herein, which misconduct or
failure, if curable, is not fully cured to the reasonable satisfaction of the
Board within thirty (30) days after written notice thereof, (ii) any
material breach by you of any provision of this Agreement, which, if curable,
is not fully cured to the reasonable satisfaction of the Board within thirty
(30) days after written notice thereof, (iii) a refusal to relocate
in accordance with the Board’s decision as contemplated by Section 3.5 or
(iv) your committing an act of theft, fraud, dishonesty, embezzlement with
regard to the Company or your conviction of a felony.  For purposes hereof, no act, or failure to act, on your part
shall be deemed “willful” unless done, or omitted to be done, by

 

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you not in
good faith and without reasonable belief that your act, or failure to act, was
in the best interest of the Company.

 

(b)                                 Without
Cause; Good Reason.  Your employment
with the Company may be terminated, by either party, upon not less than ninety
(90) days prior written notice to the other, without Cause by the Company
or for “Good Reason” by you.  As used herein,
the term “Good Reason” shall mean the occurrence, without your consent, of any
of the following:  (i) any material
diminution of your position, duties or responsibilities hereunder (except in
each case in connection with the termination of your employment for Cause or
disability or as a result of your death, or temporarily as a result of your
illness or other absence, or any diminution of duties resulting from the hiring
by the Company of a new Chief Executive Officer) and (ii) any material breach
by the Company of any provision of this Agreement; provided, however, that you
give the Company written notice of such breach with a thirty (30) day
opportunity for the Company to cure such breach.

 

(c)                                  Death.  In the event of your death, your employment
shall terminate on the date of death.

 

(d)                                 Disability.  In the event of your Disability (as defined
below), the Company may terminate your employment by giving to you a written
notice of termination.  Such notice
shall specify the date of termination, which date shall not be earlier than
thirty (30) days after the notice of termination given.  For purposes of this Agreement, “Disability”
means your inability to substantially perform your duties hereunder for ninety
(90) consecutive days or one hundred eighty (180) days out of three
hundred sixty five (365) days as a result of a physical or mental illness
or condition, all as determined in good faith by the Board.

 

3.2                                 The
Company’s Obligations Upon Termination

 

Following the termination of your employment under the circumstances
described below, the Company shall pay to you the following compensation and
provide the following benefits in full satisfaction and final settlement of any
and all claims and demands that you now have or hereafter may have against the Company
in connection herewith subject to your executing and delivering a release to
the Company as provided in Section 3.4 below prior to the provision of the
compensation and benefits set forth below:

 

5

 

(a)                                  Termination
Without Cause by the Company or with Good Reason by You or Failure by the
Company to Extend Your Term.  In the
event that your employment shall be terminated by the Company pursuant to
Section 3.1(b) hereof or upon expiration of the initial or any renewal
term of this Agreement or pursuant to written notice by you in accordance with
Section 3.1(b) hereof, you will be entitled to the payment of your annual
base salary for a period of six (6) months from the date of termination or
expiration, as the case may be, subject to an obligation on your part to seek
gainful or other employment during such six (6) month period.  In addition, any CFO Options which have
vested and remain unexercised prior to the date of termination of the CFO’s
employment by the Company pursuant to Section 3.1(b) hereof or upon
expiration of the initial or any renewal term of this Agreement or pursuant to
written notice by you in accordance with Section 3.1(b) hereof shall
remain exercisable and will not terminate until the date which is six (6)
months after such termination, expiration or written notice.  In the event that you obtain employment in
any capacity or in any position (including, but not limited to, any income you
earn as an employee, consultant, agent, representative, principal, officer, or
director) with any person or entity in the pharmaceutical and/or biotechnology
industries during such six (6)  month period, any payments due from the
Company under this Section 3.29(a) shall be reduced, on a dollar for
dollar basis, by the amount of any income generated by you pursuant to such
employment up to three months of severance salary.

 

(b)                                 Termination
by the Company for Cause.  In the
event that your employment shall be terminated by the Company pursuant to
Section 3.1(a) hereof (or if you voluntarily resign otherwise than for
Good Reason in accordance with Section 3.1(b) hereof prior to the
expiration of the then current term of this Agreement), you shall be entitled
to no further compensation or other benefits under this Agreement, other than
any Base Salary earned by you on or prior to the date of such termination, but
not yet paid.  In the event the CFO’s
employment with the Company is terminated pursuant to Section 3.1(a)(iii),
any CFO Options which have vested and remain unexercised prior to the date of
such termination shall remain exerciseable and will not terminate until the
date which is six (6) months after such termination.  In addition, the Company shall reimburse you for any expenses
incurred only through the date of such termination in accordance with
Section 2.3 hereof.  Upon
termination by the Company of your employment for Cause or termination for
reason other than Good Reason by you, all of your rights under this Agreement
(except as

 

6

 

otherwise set
forth herein) shall immediately terminate and the Company shall have no further
obligation to you.

 

(c)                                  Termination
Upon Death or Disability.  In the
event that your employment shall be terminated pursuant to Section 3.1(c)
or 3.1(d) hereof, the Company shall pay you (or your estate or trust or legal
representatives) all Base Salary earned, but unpaid, through the date of
termination, and shall reimburse you (or your estate or trust or legal
representatives) for any expenses incurred through the date of such termination
in accordance with Section 2.3 hereof. 
In addition, the Company will provide you (or your estate or trust or
legal representatives).

 

3.3                                 Nature
of Payments.  All amounts to be paid
by the Company to you pursuant to this Agreement (other than Base Salary,
benefits, bonus or reimbursement of expenses) shall be considered by the
parties to be severance payments.  In
the event that such payments shall be treated as damages, it is expressly
acknowledged by the parties hereto that damages to you for termination of
employment would be difficult to ascertain and the above amounts are reasonable
estimates thereof and are not a penalty.

 

3.4                                 Release.  Notwithstanding the foregoing, as a
condition for the provision of the compensation and benefits set forth in this
Section 3, you will be required to sign a release of all claims against
the Company, its officers, agents, employees and the members of the Board, on
such terms and form provided by the Company, which shall be binding on your
estate, heirs, assignees, attorneys, agents and personal representatives as
provided therein.

 

3.5                                 Relocation.  The Company may consider relocation of the
corporate headquarters during the CFO’s tenure to King of Prussia, Pennsylvania.
The Company retains the right to offer the CFO a relocation package or to
terminate the agreement at the end of this contract’s timeframe. The CFO in any
case will be paid through the end of the contract regardless of whether the
Company decides to relocate. If the Company does not relocate within 4 months
after the term of this contract , then the severance provisions stated in
Section 3.2 (a) will be invoked.

 

7

 

Confidentiality and
Non-Competition

 

Subject to any provisions of
any confidentiality agreement into which you and the Company may enter, you
agree that you will not, during the term of the service on the Board and at any
time thereafter, divulge or use, directly or indirectly, except in the course
of your directorship, any Confidential Information (as defined below) or
without the prior written approval of the Company.

 

In addition, you hereby agree
that you will not, directly or indirectly, as an as an
individual proprietor, partner, stockholder, officer, employee, director, joint
venturer, investor, lender, or in any other capacity whatsoever (other than as
the holder of not more than two percent (2%) of the total outstanding stock of
a publicly-held company), and in any city, county, state or other geographic
area where the Company is then marketing or selling its products or providing
services, engage in the business of developing, producing, marketing or selling
products or providing services of the kind or type reasonably related to the
work being developed, produced, marketed, sold or provided by the Company.

 

Further, you hereby agree:

 

3.6                                 Upon
request, to return to the Company any information, documents and other property
you may have received as a result of your employment.

 

3.7                                 That
the remedy at law for any breach of any of the foregoing will be inadequate and
that the Company, in addition to any remedy at law, will be entitled to
injunctive and other relief in cases of any such breach.  The provisions of this Section 3 shall
survive the termination of the term of this Agreement.

 

3.8                                 As
used herein, “Confidential Information” shall mean any and all information
(oral and written) relating to the Company, including, without limitation, all
information relating to trade secrets, intellectual property, software,
technical or non-technical data, research and reports, customer information and
lists, employee information, methods, techniques, financial data, financial
plans or financial information, lists of actual or potential strategies, notes,
marketing approaches, sales techniques, analyses, finances, business affairs or
any other information, which, under all circumstances, ought reasonably to be
treated as confidential and/or proprietary.

 

3.9                                 You
will continue to be bound by the terms and conditions of this Section 5
for a period of five years after the termination of this Agreement, except in
the case of the provisions set forth in the second paragraph of this
Section 5 which shall survive for a period of two years after the termination
of this Agreement.

 

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4.                                       Miscellaneous

 

4.1                                 Governing
Law.  This Agreement shall be
governed by and construed in accordance with the laws of the State of Delaware
without regard to principles of conflict of laws.

 

4.2                                 Arbitration.  Any controversy or claim based on, arising
out of or relating to the interpretation and performance of this Agreement or
any termination hereof shall be solely and finally settled by arbitration under
the rules of the American Arbitration Association, and judgment on the award
rendered in the arbitration may be entered in any court having jurisdiction
thereof.  Any such arbitration shall be
in the state of Delaware  and shall
be submitted to a single arbitrator appointed by the mutual consent of the
parties or, in the absence of such consent, by application of any party to the
American Arbitration Association.  A
decision of the arbitrator shall be final and binding upon the parties, and the
arbitrator shall be authorized to apportion fees and expenses (including
counsel fees and expenses), as the arbitrator shall deem appropriate.

 

4.3                                 Entire
Agreement; Amendment.  This
Agreement contains the complete understanding and agreement between the parties
hereto with respect to the subject matter hereof, and supersedes all prior and
contemporaneous understandings and agreements, written or oral, between the
parties relating to the subject matter hereof. 
This Agreement may not be amended except in a written document signed by
you and the Company.

 

4.4                                 Severability.  In the event that any provision or portion
of this Agreement 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 and any such invalidity or unenforceability shall be
deemed replaced by a term or provision determined by the parties as coming
closest to expressing the intention of the invalid or unenforceable term or
provision.

 

4.5                                 Notice.  Any notice to be given hereunder shall be in
writing and delivered either in person, by nationally recognized overnight
courier, or by registered or certified first class mail, postage prepaid,
addressed to such address of the parties as set forth on the first page hereof.

 

4.6                                 Headings.  The Section headings in this Agreement are
for convenience of reference only and shall not affect its interpretation.

 

9

 

4.7                                 Counterparts.  This Agreement may be executed in two or
more counterparts, each of which shall be deemed an original, but all of which
when together shall constitute one and the same agreement.

 

4.8                                 Liability
Insurance.  Liability insurance
shall be provided to you by the Company to the              same extent that it is provided to the
other executive officers in the Company.

 

4.9                                 Indemnification.  The Company hereby indemnifies and holds you
harmless against any and all losses, claims, suits, judgments, damages, liabilities,
costs or expenses, including reasonable legal fees and expenses, to which you
may become subject in connection with the good faith performance of your
responsibilities under this Agreement. 
This provision will survive termination of this Agreement.

 

[Remainder of page intentionally left blank]

 

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Mike, if the
foregoing accurately represents your understanding, please sign below and
return it to us.

 

Warmest regards,

 

 

	
  THE IMMUNE RESPONSE CORPORATION.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ACCEPTED AND AGREED IN ALL RESPECTS:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Michael Green

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
									

 

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