Document:

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                                                                   EXHIBIT 10.60

                          CORTEX PHARMACEUTICALS, INC.

                            1996 STOCK INCENTIVE PLAN

                 (as amended and restated on December 11, 2001)

     This 1996 STOCK INCENTIVE PLAN (the "Plan") is hereby established by CORTEX
PHARMACEUTICALS, INC., a Delaware corporation (the "Company") and adopted by its
Board of Directors as of the 25/th/ day of October, 1996 (the "Effective Date"),
as amended and restated on the 11/th/ day of December, 2001.

                                   ARTICLE 1

                              PURPOSES OF THE PLAN

     1.1  Purposes. The purposes of the Plan are (a) to enhance the Company's
ability to attract and retain the services of qualified employees, officers and
directors (including non-employee officers and directors), and consultants and
other service providers upon whose judgment, initiative and efforts the
successful conduct and development of the Company's business largely depends,
and (b) to provide additional incentives to such persons or entities to devote
their utmost effort and skill to the advancement and betterment of the Company,
by providing them an opportunity to participate in the ownership of the Company
and thereby have an interest in the success and increased value of the Company.

                                    ARTICLE 2

                                   DEFINITIONS

     For purposes of this Plan, the following terms shall have the meanings
indicated:

     2.1  Administrator. "Administrator" means the Board or, if the Board
delegates responsibility for any matter to the Committee, the term Administrator
shall mean the Committee.

     2.2  Affiliated Company. "Affiliated Company" means any "parent
corporation" or "subsidiary corporation" of the Company, whether now existing or
hereafter created or acquired, as those terms are defined in Sections 424(e) and
424(f) of the Code, respectively.

     2.3  Board. "Board" means the Board of Directors of the Company.

     2.4  Change in Control. "Change in Control" shall mean (i) the acquisition,
directly or indirectly, by any person or group (within the meaning of Section
13(d)(3) of the Securities Exchange Act of 1934, as amended) of the beneficial
ownership of more than fifty percent (50%) of the outstanding securities of the
Company; (ii) a merger or consolidation in which the Company is not the
surviving entity, except for a transaction the principal purpose of which is to
change the state in which the Company is incorporated; (iii) the sale, transfer
or other disposition of all or substantially all of the assets of the Company;
(iv) a complete liquidation or dissolution of the Company; or (v) any reverse
merger in which the Company is the surviving entity but in which

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securities possessing more than fifty percent (50%) of the total combined voting
power of the Company's outstanding securities are transferred to a person or
persons different from the persons holding those securities immediately prior to
such merger.

     2.5  Code. "Code" means the Internal Revenue Code of 1986, as amended from
time to time.

     2.6  Committee. "Committee" means a committee of two or more members of the
Board appointed to administer the Plan, as set forth in Section 7.1 hereof.

     2.7  Common Stock. "Common Stock" means the Common Stock of the Company,
subject to adjustment pursuant to Section 4.2 hereof.

     2.8  Disability. "Disability" means permanent and total disability as
defined in Section 22(e)(3) of the Code. The Administrator's determination of a
Disability or the absence thereof shall be conclusive and binding on all
interested parties.

     2.9  Effective Date. "Effective Date" means the date on which the Plan is
adopted by the Board, as set forth on the first page hereof.

     2.10 Exercise Price. "Exercise Price" means the purchase price per share of
Common Stock payable upon exercise of an Option.

     2.11 Fair Market Value. "Fair Market Value" on any given date means the
value of one share of Common Stock, determined as follows:

          (a) If the Common Stock is then listed or admitted to trading on a
Nasdaq market system or a stock exchange which reports closing sale prices, the
Fair Market Value shall be the closing sale price on the date of valuation on
such Nasdaq market system or principal stock exchange on which the Common Stock
is then listed or admitted to trading, or, if no closing sale price is quoted on
such day, then the Fair Market Value shall be the closing sale price of the
Common Stock on such Nasdaq market system or such exchange on the next preceding
day on which a closing sale price is quoted.

          (b) If the Common Stock is not then listed or admitted to trading on a
Nasdaq market system or a stock exchange which reports closing sale prices, the
Fair Market Value shall be the average of the closing bid and asked prices of
the Common Stock in the over-the-counter market on the date of valuation.

          (c) If neither (a) nor (b) is applicable as of the date of valuation,
then the Fair Market Value shall be determined by the Administrator in good
faith using any reasonable method of evaluation, which determination shall be
conclusive and binding on all interested parties.

     2.12 Incentive Option. "Incentive Option" means any Option designated and
qualified as an "incentive stock option" as defined in Section 422 of the Code.

     2.13 Incentive Option Agreement. "Incentive Option Agreement" means an
Option Agreement with respect to an Incentive Option.

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     2.14 NASD Dealer. "NASD Dealer" means a broker-dealer that is a member of
the National Association of Securities Dealers, Inc.

     2.15 Nonqualified Option. "Nonqualified Option" means any Option that is
not an Incentive Option. To the extent that any Option designated as an
Incentive Option fails in whole or in part to qualify as an Incentive Option,
including, without limitation, for failure to meet the limitations applicable to
a 10% Stockholder or because it exceeds the annual limit provided for in Section
5.6 below, it shall to that extent constitute a Nonqualified Option.

     2.16 Nonqualified Option Agreement. "Nonqualified Option Agreement" means
an Option Agreement with respect to a Nonqualified Option.

     2.17 Offeree. "Offeree" means a Participant to whom a Right to Purchase has
been offered or who has acquired Restricted Stock under the Plan.

     2.18 Option. "Option" means any option to purchase Common Stock granted
pursuant to the Plan.

     2.19 Option Agreement. "Option Agreement" means the written agreement
entered into between the Company and the Optionee with respect to an Option
granted under the Plan.

     2.20 Optionee. "Optionee" means a Participant who holds an Option.

     2.21 Participant. "Participant" means an individual or entity who holds an
Option, a Right to Purchase or Restricted Stock under the Plan.

     2.22 Purchase Price. "Purchase Price" means the purchase price per share of
Restricted Stock payable upon acceptance of a Right to Purchase.

     2.23 Restricted Stock. "Restricted Stock" means shares of Common Stock
issued pursuant to Article 6 hereof, subject to any restrictions and conditions
as are established pursuant to such Article 6.

     2.24 Right to Purchase. "Right to Purchase" means a right to purchase
Restricted Stock granted to an Offeree pursuant to Article 6 hereof.

     2.25 Service Provider. "Service Provider" means a consultant or other
person or entity who provides services to the Company or an Affiliated Company
and who the Administrator authorizes to become a Participant in the Plan.

     2.26 Stock Purchase Agreement. "Stock Purchase Agreement" means the written
agreement entered into between the Company and the Offeree with respect to a
Right to Purchase offered under the Plan.

     2.27 10% Stockholder. "10% Stockholder" means a person who, as of a
relevant date, owns or is deemed to own (by reason of the attribution rules
applicable under Section 424(d) of the Code) stock possessing more than 10% of
the total combined voting power of all classes of stock of the Company or of an
Affiliated Company.

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                                    ARTICLE 3

                                   ELIGIBILITY

     3.1  Incentive Options. Officers and other employees of the Company or of
an Affiliated Company (including members of the Board if they are employees of
the Company or of an Affiliated Company) are eligible to receive Incentive
Options under the Plan.

     3.2  Nonqualified Options and Rights to Purchase. Officers and other
employees of the Company or of an Affiliated Company, members of the Board
(whether or not employed by the Company or an Affiliated Company), and Service
Providers are eligible to receive Nonqualified Options or Rights to Purchase
under the Plan.

     3.3  Limitation on Shares. In no event shall any Participant be granted
Rights to Purchase or Options in any one calendar year pursuant to which the
aggregate number of shares of Common Stock that may be acquired thereunder
exceeds 500,000 shares.

                                    ARTICLE 4

                                   PLAN SHARES

     4.1  Shares Subject to the Plan. The total number of shares of Common Stock
which may be issued under the Plan shall be initially equal to 613,132 shares.
There shall be added to the number of shares which may be issued under the Plan
(i) any shares underlying lapsed or expired options granted under the Company's
1989 Incentive Stock Option, Nonqualified Stock Option and Stock Purchase Plan,
1989 Special Nonqualified Stock Option and Stock Purchase Plan and Executive
Stock Plan, (the "Prior Plans"), plus, on the last day of each fiscal year of
the Company, a number of shares equal to twenty percent (20%) of the increase in
the number of shares of Common Stock outstanding since the last day of the
previous fiscal year (except in the case of fiscal year ending June 30, 1997, in
which case the added shares of Common Stock shall equal twenty percent (20%) of
the increase in the number of shares of Common Stock outstanding since October
25, 1996), subject to adjustment as to the number and kind of shares pursuant to
Section 4.2 hereof. For purposes of this limitation, in the event that (a) all
or any portion of any Option or Right to Purchase granted or offered under the
Plan can no longer under any circumstances be exercised, or (b) any shares of
Common Stock are reacquired by the Company pursuant to an Incentive Option
Agreement, Nonqualified Option Agreement or Stock Purchase Agreement, the shares
of Common Stock allocable to the unexercised portion of such Option or such
Right to Purchase, or the shares so reacquired, shall again be available for
grant or issuance under the Plan.

     4.2  Changes in Capital Structure. In the event that the outstanding shares
of Common Stock are hereafter increased or decreased or changed into or
exchanged for a different number or kind of shares or other securities of the
Company by reason of a recapitalization, stock split, combination of shares,
reclassification, stock dividend, or other change in the capital structure of
the Company, then appropriate adjustments shall be made by the Administrator to
the aggregate number and kind of shares subject to this Plan, and the number and
kind of shares and the price per share subject to outstanding Option Agreements,
Rights to Purchase and Stock Purchase Agreements in order to preserve, as nearly
as practical, but not to increase, the benefits to Participants.

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                                    ARTICLE 5

                                     OPTIONS

     5.1  Option Agreement. Each Option granted pursuant to this Plan shall be
evidenced by an Option Agreement, which shall specify the number of shares
subject thereto, the Exercise Price per share, and whether the Option is an
Incentive Option or Nonqualified Option. As soon as is practical following the
grant of an Option, an Option Agreement shall be duly executed and delivered by
or on behalf of the Company to the Optionee to whom such Option was granted.
Each Option Agreement shall be in such form and contain such additional terms
and conditions, not inconsistent with the provisions of this Plan, as the
Administrator shall, from time to time, deem desirable, including, without
limitation, the imposition of any rights of first refusal and resale obligations
upon any shares of Common Stock acquired pursuant to an Option Agreement. Each
Option Agreement may be different from each other Option Agreement.

     5.2  Exercise Price. The Exercise Price per share of Common Stock covered
by each Option shall be determined by the Administrator, subject to the
following: (a) the Exercise Price of an Incentive Option shall not be less than
100% of Fair Market Value on the date the Incentive Option is granted, (b) the
Exercise Price of a Nonqualified Option shall not be less than 85% of Fair
Market Value on the date the Nonqualified Option is granted, and (c) if the
person to whom an Incentive Option is granted is a 10% Stockholder on the date
of grant, the Exercise Price shall not be less than 110% of Fair Market Value on
the date the Option is granted.

     5.3  Payment of Exercise Price. Payment of the Exercise Price shall be made
upon exercise of an Option and may be made, in the discretion of the
Administrator, subject to any legal restrictions, by: (a) cash; (b) check; (c)
the surrender of shares of Common Stock owned by the Optionee that have been
held by the Optionee for at least six (6) months, which surrendered shares shall
be valued at Fair Market Value as of the date of such exercise; (d) the
Optionee's promissory note in a form and on terms acceptable to the
Administrator; (e) the cancellation of indebtedness of the Company to the
Optionee; (f) the waiver of compensation due or accrued to the Optionee for
services rendered; (g) provided that a public market for the Common Stock
exists, a "same day sale" commitment from the Optionee and an NASD Dealer
whereby the Optionee irrevocably elects to exercise the Option and to sell a
portion of the shares so purchased to pay for the Exercise Price and whereby the
NASD Dealer irrevocably commits upon receipt of such shares to forward the
Exercise Price directly to the Company; (h) provided that a public market for
the Common Stock exists, a "margin" commitment from the Optionee and an NASD
Dealer whereby the Optionee irrevocably elects to exercise the Option and to
pledge the shares so purchased to the NASD Dealer in a margin account as
security for a loan from the NASD Dealer in the amount of the Exercise Price,
and whereby the NASD Dealer irrevocably commits upon receipt of such shares to
forward the Exercise Price directly to the Company; or (i) any combination of
the foregoing methods of payment or any other consideration or method of payment
as shall be permitted by applicable corporate law.

     5.4  Term and Termination of Options. The term and termination of each
Option shall be as fixed by the Administrator, but no Option may be exercisable
more than ten (10) years after the date it is granted. An Incentive Option
granted to a person who is a 10% Stockholder on the date of grant shall not be
exercisable more than five (5) years after the date it is granted.

<PAGE>

     5.5  Vesting and Exercise of Options. Each Option shall vest and be
exercisable in one or more installments at such time or times and subject to
such conditions, including without limitation the achievement of specified
performance goals or objectives, as shall be determined by the Administrator.

     5.6  Annual Limit on Incentive Options. To the extent required for
"incentive stock option" treatment under Section 422 of the Code, the aggregate
Fair Market Value (determined as of the time of grant) of the Common Stock shall
not, with respect to which Incentive Options granted under this Plan and any
other plan of the Company or any Affiliated Company become exercisable for the
first time by an Optionee during any calendar year, exceed $100,000.

     5.7  Nontransferability of Options. Unless otherwise permitted by the
Administrator, no Option shall be assignable or transferable except by will or
the laws of descent and distribution, and during the life of the Optionee shall
be exercisable only by such Optionee.

     5.8  Rights as Stockholder. An Optionee or permitted transferee of an
Option shall have no rights or privileges as a stockholder with respect to any
shares covered by an Option until such Option has been duly exercised and
certificates representing shares purchased upon such exercise have been issued
to such person.

     5.9  Non-Employee Directors. Each director of the Company who is not an
employee or executive officer of the Company and who does not serve on the Board
of Directors to oversee an investment in the Company, shall automatically be
granted (i) Nonqualified Options to purchase thirty thousand (30,000) shares of
the Common Stock upon commencement of service as a director of the Company, and
(ii) Nonqualified Options to purchase ten thousand (10,000) shares of Common
Stock at each annual meeting of the Company's stockholders (including any
meeting coincident with the commencement of service as a director). Each
director of the Company who is not an employee or executive officer of the
Company and who serves on the Board of Directors to oversee an investment in the
Company, shall automatically be granted Nonqualified Options to purchase (i)
seven thousand five hundred (7,500) shares of Common Stock upon commencement of
service as a director of the Company, and (ii) three thousand (3,000) shares at
each annual meeting of the Company's stockholders (including any meeting
coincident with the commencement of service as a director). Nonqualified Options
to be granted to non-employee directors of the Company shall (i) have an
exercise price equal to one hundred percent (100%) of the fair market value on
the date of grant of the options, as determined in accordance with the terms of
the Plan, (ii) have a ten (10) year term, (iii) subsequently vest in increments
of thirty-three and one-third percent (33 1/3%) on the earlier to occur of (A)
each anniversary of the date of grant or (B) each successive annual meeting of
the Company's stockholders following the date of the grant, and (iv) otherwise
be subject to the terms and provisions of the Plan.

                                   ARTICLE 6

                               RIGHTS TO PURCHASE

     6.1  Nature of Right to Purchase. A Right to Purchase granted to an Offeree
entitles the Offeree to purchase, for a Purchase Price determined by the
Administrator, shares of Common Stock subject to such terms, restrictions and
conditions as the Administrator may determine at the time of grant ("Restricted
Stock"). Such conditions may include, but are not limited to, continued
employment or the achievement of specified performance goals or objectives.

<PAGE>

     6.2  Acceptance of Right to Purchase. An Offeree shall have no rights with
respect to the Restricted Stock subject to a Right to Purchase unless the
Offeree shall have accepted the Right to Purchase within ten (10) days (or such
longer or shorter period as the Administrator may specify) following the grant
of the Right to Purchase by making payment of the full Purchase Price to the
Company in the manner set forth in Section 6.3 hereof and by executing and
delivering to the Company a Stock Purchase Agreement. Each Stock Purchase
Agreement shall be in such form, and shall set forth the Purchase Price and such
other terms, conditions and restrictions of the Restricted Stock, not
inconsistent with the provisions of this Plan, as the Administrator shall, from
time to time, deem desirable. Each Stock Purchase Agreement may be different
from each other Stock Purchase Agreement.

     6.3  Payment of Purchase Price. Subject to any legal restrictions, payment
of the Purchase Price upon acceptance of a Right to Purchase Restricted Stock
may be made, in the discretion of the Administrator, by: (a) cash; (b) check;
(c) the surrender of shares of Common Stock owned by the Offeree that have been
held by the Offeree for at least six (6) months, which surrendered shares shall
be valued at Fair Market Value as of the date of such exercise; (d) the
Offeree's promissory note in a form and on terms acceptable to the
Administrator; (e) the cancellation of indebtedness of the Company to the
Offeree; (f) the waiver of compensation due or accrued to the Offeree for
services rendered; or (g) any combination of the foregoing methods of payment or
any other consideration or method of payment as shall be permitted by applicable
corporate law.

     6.4  Rights as a Stockholder. Upon complying with the provisions of Section
6.2 hereof, an Offeree shall have the rights of a stockholder with respect to
the Restricted Stock purchased pursuant to the Right to Purchase, including
voting and dividend rights, subject to the terms, restrictions and conditions as
are set forth in the Stock Purchase Agreement. Unless the Administrator shall
determine otherwise, certificates evidencing shares of Restricted Stock shall
remain in the possession of the Company in accordance with the terms of the
Stock Purchase Agreement.

     6.5  Restrictions. Shares of Restricted Stock may not be sold, assigned,
transferred, pledged or otherwise encumbered or disposed of except as
specifically provided in the Stock Purchase Agreement or by the Administrator.
In the event of termination of a Participant's employment, service as a director
of the Company or Service Provider status for any reason whatsoever (including
death or disability), the Stock Purchase Agreement may provide, in the
discretion of the Administrator, that the Company shall have the right,
exercisable at the discretion of the Administrator, to repurchase (i) at the
original Purchase Price, any shares of Restricted Stock which have not vested as
of the date of termination, and (ii) at Fair Market Value, any shares of
Restricted Stock which have vested as of such date, on such terms as may be
provided in the Stock Purchase Agreement.

     6.6  Vesting of Restricted Stock. The Stock Purchase Agreement shall
specify the date or dates, the performance goals or objectives which must be
achieved, and any other conditions on which the Restricted Stock may vest.

     6.7  Dividends. If payment for shares of Restricted Stock is made by
promissory note, any cash dividends paid with respect to the Restricted Stock
may be applied, in the discretion of the Administrator, to repayment of such
note.

<PAGE>

     6.8  Nonassignability of Rights. No Right to Purchase shall be assignable
or transferable except by will or the laws of descent and distribution or as
otherwise provided by the Administrator.

                                    ARTICLE 7

                           ADMINISTRATION OF THE PLAN

     7.1  Administrator. Authority to control and manage the operation and
administration of the Plan shall be vested in the Board, which may delegate such
responsibilities in whole or in part to a committee consisting of two (2) or
more members of the Board (the "Committee"). Members of the Committee may be
appointed from time to time by, and shall serve at the pleasure of, the Board.
As used herein, the term "Administrator" means the Board or, with respect to any
matter as to which responsibility has been delegated to the Committee, the term
Administrator shall mean the Committee.

     7.2  Powers of the Administrator. In addition to any other powers or
authority conferred upon the Administrator elsewhere in the Plan or by law, the
Administrator shall have full power and authority: (a) to determine the persons
to whom, and the time or times at which, Incentive Options or Nonqualified
Options shall be granted and Rights to Purchase shall be offered, the number of
shares to be represented by each Option and Right to Purchase and the
consideration to be received by the Company upon the exercise thereof; (b) to
interpret the Plan; (c) to create, amend or rescind rules and regulations
relating to the Plan; (d) to determine the terms, conditions and restrictions
contained in, and the form of, Option Agreements and Stock Purchase Agreements;
(e) to determine the identity or capacity of any persons who may be entitled to
exercise a Participant's rights under any Option or Right to Purchase under the
Plan; (f) to correct any defect or supply any omission or reconcile any
inconsistency in the Plan or in any Option Agreement or Stock Purchase
Agreement; (g) to accelerate the vesting of any Option or release or waive any
repurchase rights of the Company with respect to Restricted Stock; (h) to extend
the exercise date of any Option or acceptance date of any Right to Purchase; (i)
to provide for rights of first refusal and/or repurchase rights; (j) to amend
outstanding Option Agreements and Stock Purchase Agreements to provide for,
among other things, any change or modification which the Administrator could
have provided for upon the grant of an Option or Right to Purchase or in
furtherance of the powers provided for herein; and (k) to make all other
determinations necessary or advisable for the administration of the Plan, but
only to the extent not contrary to the express provisions of the Plan. Any
action, decision, interpretation or determination made in good faith by the
Administrator in the exercise of its authority conferred upon it under the Plan
shall be final and binding on the Company and all Participants.

     7.3  Limitation on Liability. No employee of the Company or member of the
Board or Committee shall be subject to any liability with respect to duties
under the Plan unless the person acts fraudulently or in bad faith. To the
extent permitted by law, the Company shall indemnify each member of the Board or
Committee, and any employee of the Company with duties under the Plan, who was
or is a party, or is threatened to be made a party, to any threatened, pending
or completed proceeding, whether civil, criminal, administrative or
investigative, by reason of such person's conduct in the performance of duties
under the Plan.

<PAGE>

                                    ARTICLE 8

                                CHANGE IN CONTROL

     8.1  Change in Control. In the event of a Change in Control of the Company,
the Administrator in its discretion may, at any time an Option or Right to
Purchase is granted, or at any time thereafter, take one or more of the
following actions: (A) provide for the purchase of each Option or Right to
Purchase for an amount of cash or other property that could have been received
upon the exercise of the Option or Right to Purchase had the Option been
currently exercisable, (B) adjust the terms of the Options and Rights to
Purchase in a manner determined by the Administrator to reflect the Change in
Control, (C) cause the Options and Rights to Purchase to be continued or
assumed, or new rights substituted therefor, by the surviving or another entity,
through the continuance of the Plan and the continuation or assumption of
outstanding Options and Rights to Purchase, or the substitution for such Options
and Rights to Purchase of new options and new rights to purchase of comparable
value covering shares of a successor corporation, with appropriate adjustments
as to the number and kind of shares and Exercise Prices, in which event the Plan
and such Options and Rights to Purchase, or the new options and rights to
purchase substituted therefor, shall continue in the manner and under the terms
so provided or (D) make such other provision as the Administrator may consider
equitable. If the Administrator does not take any of the forgoing actions, all
Options and Rights to Purchase shall terminate upon the consummation of the
Change in Control and the Administrator shall cause written notice of the
proposed transaction to be given to all Participants not less than fifteen (15)
days prior to the anticipated effective date of the proposed transaction.
Whether or not provision is made for continuance of the Plan and the
continuance, assumption or substitution of outstanding Options or Rights to
Purchase, concurrent with the effective date of the Change of Control all
Options, Rights of Purchase and Restricted Stock shall be accelerated and
concurrent with such date the holders of such Options and Rights to Purchase
shall have the right to exercise such Options and Rights of Purchase in respect
to any or all shares subject thereto.

                                    ARTICLE 9

                      AMENDMENT AND TERMINATION OF THE PLAN

     9.1  Amendments. The Board may from time to time alter, amend, suspend or
terminate the Plan in such respects as the Board may deem advisable. No such
alteration, amendment, suspension or termination shall be made which shall
substantially affect or impair the rights of any Participant under an
outstanding Option Agreement or Stock Purchase Agreement without such
Participant's consent. The Board may alter or amend the Plan to comply with
requirements under the Code relating to Incentive Options or other types of
options which give Optionee more favorable tax treatment than that applicable to
Options granted under this Plan as of the date of its adoption. Upon any such
alteration or amendment, any outstanding Option granted hereunder may, if the
Administrator so determines and if permitted by applicable law, be subject to
the more favorable tax treatment afforded to an Optionee pursuant to such terms
and conditions.

     9.2  Plan Termination. Unless the Plan shall theretofore have been
terminated, the Plan shall terminate on the tenth (10th) anniversary of the
Effective Date and no Options or Rights to Purchase may be granted under the
Plan thereafter, but Option Agreements, Stock Purchase Agreements and Rights to
Purchase then outstanding shall continue in effect in accordance with their
respective terms.

<PAGE>

                                   ARTICLE 10

                                 TAX WITHHOLDING

     10.1 Withholding. The Company shall have the power to withhold, or require
a Participant to remit to the Company, an amount sufficient to satisfy any
applicable Federal, state, and local tax withholding requirements with respect
to any Options exercised or Restricted Stock issued under the Plan.

                                   ARTICLE 11

                                  MISCELLANEOUS

     11.1 Benefits Not Alienable. Other than as provided above, benefits under
the Plan may not be assigned or alienated, whether voluntarily or involuntarily.
Any unauthorized attempt at assignment, transfer, pledge or other disposition
shall be without effect.

     11.2 No Enlargement of Employee Rights. This Plan is strictly a voluntary
undertaking on the part of the Company and shall not be deemed to constitute a
contract between the Company and any Participant to be consideration for, or an
inducement to, or a condition of, the employment of any Participant. Nothing
contained in the Plan shall be deemed to give the right to any Participant to be
retained as an employee of the Company or any Affiliated Company or to interfere
with the right of the Company or any Affiliated Company to discharge any
Participant at any time.

     11.3 Application of Funds. The proceeds received by the Company from the
sale of Common Stock pursuant to Option Agreements and Stock Purchase
Agreements, except as otherwise provided herein, will be used for general
corporate purposes.<PAGE>

                                                                   EXHIBIT 10.71

                          CORTEX PHARMACEUTICALS, INC.
                             15241 Barranca Parkway
                            Irvine, California 92718

                                  June 5, 1995

Gary A. Rogers, Ph.D.
108 Aero Camino, B5
Goleta, California 93117

Dear Gary:

     I am pleased to offer you employment with Cortex Pharmaceuticals, Inc.
("Company") on the following terms and conditions:

     1.   Your title will be Vice President, Pharmaceutical Discovery, and you
will report to the Chief Executive Officer of the Company. Your duties and
responsibilities will principally include responsibility for medicinal
chemistry, providing input into other scientific areas and such other matters as
the Company may assign to you. Your employment will begin on a mutually agreed
date, but in no event later than June 8, 1995. You will be a full time employee
but may, at your option, choose to work at the Company's facilities four days
per week until you relocate your primary residence from Santa Barbara. Until
such time, the Company will reimburse your actual expenses incurred in
maintaining laboratory facilities in Santa Barbara for your use on Company
projects, up to a maximum of $18,000 per year. All developments made in such
laboratories by you or others at such facility shall be considered developed in
the course of your employment and shall be subject to the Company's invention
assignment agreement.

     During the term of your employment, you may collaborate with scientists in
academic institutions on non-Company matters, provided (i) you provide written
notice to the Chief Executive Officer of the Company, (ii) such activities do
not interfere with your duties of the Company, and (iii) such activities do not
involve more than an insubstantial amount of Company resources.

     2.   You will receive a base annual salary of $115,000, paid in accordance
with the Company's normal payroll practices. You will also be entitled to
vacation, coverage under the Company's Group Health Plan, and other benefits
that the Company provides to comparable employees. You will also be eligible to
receive bonus of between 10% and 30% of your annual base salary depending upon
achievement of pre-determined milestones relating to the progression of drug
candidates through the development process, including without limitation,
applications or issuances of patents, and achievement of clinical trials and
regulatory clearances.

<PAGE>

Gary A Rogers, Ph.D.
June 5, 1995
Page 2

     3.   In addition, you will be eligible to receive bonuses as follows:

     In the event any new AMPA receptor targeted or AMPA ligand compound
developed by you or under your supervision is the subject of a patent or patent
application that is assigned to the Company, (hereafter, a "New Compound") and
where such compound is not subject to (or claimed by third parties to be subject
to) substantive patent or other rights of third parties, including the
University of California, the Company shall pay to you bonuses with respect to
each such compound as set forth below.

          (a)  If the patent or patent application covers, and the clinical
     trials relate to, the enhancement of memory and/or cognition:

               (i)  On successful completion of             $50,000
                    Phase III clinical trials in the
                    U.S. or equivalent in a Foreign
                    Equivalent Country*

               (ii) On approval of New Drug                 $75,000
                    Application ("NDA") in the
                    U.S. or equivalent in a Foreign
                    Equivalent Country*

          (b)  If the patent covers medical indications other than the
enhancement of memory and/or cognition:

               (i)  On successful completion                $20,000-50,000**
                    of Phase III clinical trials
                    in the U.S. or equivalent in a
                    Foreign Equivalent Country*

               (ii) On approval of NDA in the U.S.          $35,000-75,000**
                    or equivalent in a Foreign
                    Equivalent Country*

     * Foreign Equivalent Country is defined in Exhibit A.

     ** The exact amounts of the bonus payments will be determined by the
Company based upon the potential market size for the New Compound, according to
the guidelines set forth as Exhibit A hereto.

     In order to receive the full amount of the additional bonuses for a New
Compound as set forth in this Section 3, you must be employed continuously by
the Company from the date of your discovery of the utility of the New Compound
for the indication set forth in Section 3(a) or 3(b). If you are not
continuously employed, the bonus payable shall equal the full amount multiplied
by a fraction, the numerator of which is the number of months from your
discovery of the utility of the

                                       2

<PAGE>

Gary A. Rogers, Ph.D.
June 5, 1995
Page 3

New Compound until the termination of your employment, and the denominator of
which is the number of months from your discovery of the utility of the New
Compound to the date of the event giving rise to the bonus payment; provided,
however, such fraction shall not be less than one-half (1/2).

     4.   (a) In the event any New Compound is commercialized by or for the
benefit of the Company, or a licensee of the Company, the Company or the
licensee shall pay to you royalties equal to one percent (1%) (subject to
adjustment as set forth in Section 4(c) and Section 4(d) below) of Net Sales (as
defined in Section 4(b) below) of each Product (as defined in Section 4(b)
below) by the Company or its licensee. The Company's obligation to pay such
royalties with respect to a Product shall terminate at such time as there are no
patents giving rise to such royalty obligation remaining enforceable.

          (b) For purposes hereof, "Product" meets any form or dosage of a
pharmaceutical agent which includes the New Compound. For purposes hereof, "Net
Sales" shall mean: the amount billed by the Company or its assignee or licensee
for sales of Product to an independent third party less: (i) discounts,
including cash discounts or rebates, retroactive price reductions or allowances
actually allowed or granted from the billed amount, (ii) credits or allowances
actually granted upon claims, rejections or returns of Product, including
recalls, regardless of the party requesting such, (iii) freight, postage,
shipping and insurance charges paid for delivery of Product, to the extent
billed, and (iv) taxes, duties or other governmental charges levied on or
measured by the billing amount when included in billing. In the event that
Product is sold in the form of a combination Product containing one or more
active ingredients, Net Sales for such combination Product will be calculated by
multiplying actual Net Sales by the fraction A/(A+B) where A is the fair market
value of the portion of the combination Product that contains the compound and B
is the fair market value of the other active ingredients included in such
combination Product, as determined by market prices of such portions if
separately priced and sold, or if not so priced and sold, as determined by
mutual agreement. Commencing with the year in which Product is first sold, the
Company will direct its independent auditors to prepare a good-faith estimate of
Net Sales, as defined hereunder, for each fiscal year and to provide a copy of
such estimate to Consultant. In preparing such estimate, the Company's
independent auditors may rely upon sales information provided to the Company by
sublicensees of the Company.

          (c) In the event the Company markets a Product containing a New
Compound and the Company is obligated to pay a royalty (or other fee based on
sales) to a third party for additional rights to market such New Compound
("Third Party Royalty"), the royalty payable under Section 4(a) above on Net
Sales subject to such Third Party Royalty shall be reduced to the percentage of
Net Sales determined by multiplying one percent (1%) by the fraction (6% - x)/6%
where x represents the Third Party Royalty, expressed as a percentage of Net
Sales.

          (d) In the event the Company licenses a New Compound to any licensee,
and is obligated to pay a portion of the royalty proceeds received from such
licensee ("Sublicense Royalty Proceeds") to a third party for additional rights
to license such New Compound (the "Third Party Portion"), the royalty payable
under Section 4(a) above on Net Sales subject to such license shall be reduced
to the percentage of Net Sales determined by multiplying one percent (1%) by the
fraction

                                       3

<PAGE>

Gary A. Rogers, Ph.D.
Jne 5, 1995
Page 4

(30% - y/30%) where y represents the Third Party Portion expressed as a
percentage of the Sublicense Royalty Proceeds.

     5.   The Company will reimburse your actual moving expenses in connection
with the relocation of your principal residence from Santa Barbara County to
Orange County. Reimbursable expenses will be escrow fees and real estate filing
fees for the sale of your existing residence and the purchase of a new
residence, 50% of the real estate commissions paid by you in connection with the
sale of your existing residence, and any other expenses permitted as deductions
under the Internal Revenue Code. In addition, the Company will reimburse you up
to $750 per month for your documented temporary living expenses in Orange County
until the earlier of (i) the relocation of your principal residence to Orange
County, (ii) the completion by the Company of a financing or corporate
partnering transaction in excess of $12,000,000, or (iii) 18 months from your
commencement of employment.

     6.   As an employee of the Company you will be entitled to participate in
the Company's option plans. In connection with your employment, you will be
granted an option to purchase 60,000 shares of the Company's Common Stock with
an exercise price equal to the fair market value on the date of commencement of
your employment. Such options shall have the 10 year term and shall vest ratably
over 5 years.

     7.   Concurrently with your employment, your Consulting Agreement with the
Company dated May 2, 1994, shall be terminated; provided, however, that (i)
Section 3(e) and Section 3(f) regarding milestone and royalty payments shall
continue with respect to any new compound described in Section 3(e) thereof
which has been disclosed to the Company prior to June 7, 1995 (including the
following: GR120, LiD 19 and LiD 37), (ii) the Company's obligation to pay
royalties pursuant to Section 3(f) thereof with respect to a Product (as defined
in Section 3(f) thereof) shall terminate at such time as there are no patents
giving rise to such royalty obligation remaining enforceable, and (iii) the
rights to receive royalties under Section 3(f) thereof shall continue upon your
death and be payable to your successors by will or the laws of descent and
distribution. You shall be entitled to retain any monthly consulting fee which
has been paid in advance pursuant to Section 3(a) of the Consulting Agreement.
Promptly after such termination you shall (i) invoice the Company for any
expense reimbursements pursuant to Section 3(c) of the Consulting Agreement and
(ii) convey title to, and deliver if requested, any equipment for which the
Company advanced funds to you under Section 3(d) of the Consulting Agreement, in
consideration of the cancellation of any promissory notes which you executed in
favor of the Company with respect thereto.

     8.   The Company is an at-will employer, and cannot guarantee employment
for any specific duration. Your employment may be terminated, or the terms
thereof changed, at any time, with or without cause, by the Company. However, if
the Company is acquired while you are employed, prior to June 30, 1997, your
employment shall continue on the terms set forth herein for a period of eighteen
(18) months from the date of such acquisition. For purposes hereof, an
acquisition of the Company shall mean the merger, sale of all or substantially
all of the Company's assets, or the purchase of fifty percent (50%) or more of
the Company's capital stock in a single transaction or series of related
transactions, or other reorganization, in which the Company is not the surviving
corporation or which results in another person or entity (or an affiliated
group) owning fifty percent

                                       4

<PAGE>

Gary A. Rogers Ph.D.
June 5, 1995
Page 5

(50%) or more of the Company's capital stock. This provision can only be changed
or revoked in a formal written contract signed by the Chief Executive Officer
and by you.

     9.   You agree to abide by the Company's policies and procedures, including
those set forth in the Employee Handbook. On commencement, you will be required
to sign the receipt on the last page of the Handbook.

     10.  You will be required to provide proof of your identity and
authorization to work in the United States as required by federal immigration
laws.

     11.  You will be required to sign the Company's invention assignment and
confidentiality agreement, as they may be changed from time to time as well as
the necessary tax and benefit enrollment forms before starting employment.

     12.  This letter contains the sole and entire agreement between us with
respect to the subject matter hereof. No representations, oral or otherwise,
express or implied, other than those contained herein, have been relied upon by
you.

     13.  You may not assign your rights, obligations or duties hereunder
without the express written consent of the Company. The right, obligations and
duties of the Company shall inure to the benefit and be binding upon any
successors of the Company by way of merger, consolidation, transfer of all or
substantially all of the assets of the Company, or otherwise, and any transferee
of all of the Company's rights in any New Compound (with respect to such New
Compound).

     To confirm that you agree to the terms stated in this letter, please sign
and date the enclosed copy of this letter and return it to me no later than June
8, 1995. I welcome you to the Company, and I wish you success in your
employment.

                                Very truly yours,

                                /s/ Alan A. Steigrod
                               ---------------------------
                                   Alan A. Steigrod

I agree to the terms stated in this letter.

                                                   Dated: June 5, 1995

 /s/ Gary A. Rogers, Ph.D.
--------------------------
    Gary A. Rogers, Ph.D.

                                        5

<PAGE>

                                    EXHIBIT A

                       MARKET POTENTIAL FOR DETERMINATION
                      OF BONUS PAYMENTS UNDER SECTION 3 FOR
                        NON-COGNITION ENHANCER COMPOUNDS

(Market potential is the dollar amount of global product sales forecast for year
four)

<TABLE>
<CAPTION>
====================================================================================================================
          Milestone                                        Market Potential ($ million)
                               =====================================================================================
                                      Less than 100                 100 to 250                 More than 250
--------------------------------------------------------------------------------------------------------------------
<S>                                    <C>                           <C>                       <C>
On successful completion of              $20,000                     $37,500                      $50,000
Phase III clinical trials in
the U.S. or equivalent in a
Foreign Equivalent Country

--------------------------------------------------------------------------------------------------------------------
Approval of NDA or equivalent            $35,000                     $55,000                      $75,000
====================================================================================================================
</TABLE>

Foreign Equivalent Country shall mean France, Italy, Great Britain, Germany and
Japan.

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