Document:

Exhibit 10.34

Exhibit No. 10.34

February 28, 2006

PRIVATE AND CONFIDENTIAL

Donald A. McCunniff

8265 E. Del Cadena Drive

Scottsdale, AZ 85258

Dear Don:

It is with pleasure that I offer you employment with Armstrong World Industries as Senior Vice
President, Human Resources reporting directly to me. We think your experience, personal skills and
capabilities, and your management style would make an excellent addition to our management team.

The position we are offering you has the following salary, incentive and employee benefits:

	•	 	Base Salary
	 
	 	 	$325,000 on an annualized basis, paid semi-monthly with annual merit reviews
starting April 1, 2007.
	 
	•	 	Management Achievement Plan (Annual Bonus)

You are eligible for our Management Achievement Plan and will have a target bonus of 50% of your
actual base salary earnings, which equates to $162,500 on an annualized basis. Your bonus
payment will be based on Corporate operating income adjusted for working capital variance from
plan and will be subject to adjustment, up or down, based on your individual performance. You
must be actively employed with Armstrong on the day of bonus distribution, typically paid in February, in order
to be eligible for this payout.

Starting with your bonus payable in February 2008, you will be subject to an annual reduction of
$20,000 from your gross bonus amount. You will receive a corresponding contribution to your
Bonus Replacement Retirement Plan (BRRP) account. This contribution will be tax-deferred and
exempt from FICA taxation. There is a five-year vesting requirement on your BRRP account
balance. Once you attain five years of service you will be vested on all past and future
contributions to your account. If you terminate involuntarily for reasons other than gross
misconduct before becoming vested, Armstrong will make a payment to you equal to your
outstanding account balance.

	•	 	Long-Term Incentive Plan

You will participate in the Company’s long-term incentive (LTI) program where the annual value
of your LTI target award will be 110% of your annualized base salary. During Armstrong’s
Chapter 11 reorganization, LTI compensation has been delivered in the form of cash incentive
awards based on corporate operating income results measured against targets established by the
Compensation Committee over two-year performance periods.

You will receive a 2006 LTI cash incentive award of $358,000 with a performance-based payment to
occur in early 2008. LTI cash payments may be adjusted, up or down, based on individual
performance.

 

 

 

	•	 	Emergence Equity Awards

At the time Armstrong World Industries emerges from Chapter 11 reorganization, you will receive
Emergence Equity Awards consisting of 27,600 shares of restricted stock and 82,800 nonqualified
stock options. Both awards will vest in one-third installments at two, three and four years
from the grant date. The initial value of reorganized Armstrong World Industries’ shares and
the stock option exercise price are expected to be $30 per share.

Your Emergence Equity Award participation will replace your regular LTI award grants for 2007
and 2008.

	•	 	Sign-on Cash Bonus

You will receive a cash sign-on bonus of $100,000 contingent upon successful completion of your
drug and background checks. If you voluntarily terminate your employment with Armstrong within
one year of your start date, you must reimburse Armstrong for this amount.

	•	 	Individual Change in Control/lndemnification Agreements

Upon employment as Senior VP, Human Resources, you will be eligible to participate in an
Indemnification Agreement and an Individual Change in Control (CIC) Agreement. With respect to
your CIC agreement, Armstrong World Industries’ emergence from Chapter 11 will not constitute a
change in control. In the event of a post-emergence change in control, the CIC agreement will
extend for three years from the date of the CIC event. Severance benefits will amount to three
times the sum of base salary and the highest bonus earned in the three years prior to termination or the
three years prior to the CIC event. If termination were to occur prior to the completion of the
first bonus year following the effective date of the CIC agreement, target bonus will be used
for severance determination. Health, disability and life insurance benefits would continue for
three years following your termination of employment.

	•	 	Severance Pay Provisions

Armstrong will provide a minimum severance payment equal to annual base salary and will continue
health care/life insurance benefits at active employee contribution levels for twelve months if
the reason for your termination is other than voluntary termination, death, disability,
termination for unacceptable performance or termination for cause.

	•	 	Vacation/Holidays

	 	•	 	Vacation: You will immediately qualify for 5 weeks of vacation in 2006. We
are crediting you with 20 years of service for future vacation eligibility. Under the
present schedule, you will be eligible for 6 weeks of vacation at 28 years of accumulated
service, or in 8 more years.

	 	•	 	Holidays: Ten scheduled holidays and one personal holiday of your choice. In
order for new employees to be eligible for the personal holiday in the year employed, they
must be on the payroll as of June 30.

	•	 	Savings and Investment Plan

We have an excellent 401 (k) savings plan administered by Fidelity Investments. Armstrong will
provide a 100% match on the first 4% of employee contributions and a 50% match on the next 4% of
employee contributions. Employee contributions apply to base salary and short-term incentive
earnings. Eighteen investment funds are available. All interest and investment gains are
tax-deferred until you make a withdrawal. You may “roll over” into the Armstrong plan any
pre-tax monies from another tax-qualified, company-sponsored plan.

Armstrong has established a nonqualified deferred compensation plan that allows highly
compensated executives to defer base salary and bonus compensation above a specified pay limit

 

 

 

($187,500 for 2006) and receive the same match as that provided under the qualified Savings and
Investment Plan.

	•	 	Life Insurance

As an active employee, you will have company-paid life insurance of $150,000. You will also be
eligible for employee-paid term or universal life up to a maximum of $600,000.

	•	 	Executive Group Long-Term Disability Insurance Program

You are eligible for the company-paid Executive Group Long-Term Disability Insurance Program.
Your disability benefit is 60% of the sum of base salary and the average bonus paid over the
last two years capped at a benefit of $420,000 per year. Your disability benefit will be 60% of
your annualized base salary until the payment of your first bonus in early 2007. Coverage for
eligible compensation in excess of $300,000 up to $700,000 will be subject to proof of
insurability.

	•	 	Executive Personal Financial Planning/Income Tax Return Preparation Expense
Reimbursement

As one of the company’s senior executives, you would be eligible for expense reimbursement up to
$4,500 per year for personal financial planning and income tax preparation services you incur.
Reimbursement for these services would be taxable income to you.

	•	 	Medical/Dental/Prescription Drug Coverage

Armstrong offers two PPO medical plans, which use the Highmark Blue Shield network, along with
prescription drug and dental coverage. Your monthly premium for 2006 family coverage is as
follows:

	 	 	 	 	 	 	 
	 	 	 	 	Monthly Employee	 
	Plan	 	Annual Deductible	 	Premium	 
	Standard PPO
	 	$550/individual	 	$	409.64	 
	 
	 	$1,650/family	 	 	 	 
	High Deductible PPO with
	 	No individual deductible	 	$	227.58	 
	Health Savings Account
	 	$2,200/family	 	 	 	 

	•	 	Executive Annual Physical

In addition to the above medical plans. we offer our senior executives a company-paid annual
physical program. The participant can select the medical institution or facility for the
physical.

	•	 	Relocation Policy

Upon your acceptance. you will be contacted by a member of the Armstrong relocation team to
coordinate the relocation process. Armstrong’s comprehensive relocation package includes a
transfer payment of $10.000 payable upon your employment. See the attached Relocation Policy
Summary for more details.

To comply with the Immigration Reform and Control Act of 1986 (lRCA), Armstrong must verify that
every new hire is authorized to work in the United States. Documentation certifying work
eligibility must be provided within three days of employment. Listed below are several examples of
the documents that provide proof of eligibility for employment:

	 	•	 	a current United States passport, or
	 
	 	•	 	a state-issued driver’s license or I.D. card with a photograph and an original social security card, or

	 	•	 	a state-issued driver’s license or I.D. card with a photograph and a birth certificate
issued by the state, county, or other municipality, or

	 	•	 	Alien Registration Card with photograph, or

	 	•	 	Certificate of U.S. Citizenship, or

	 	•	 	Certificate of Naturalization

 

 

 

We are
proud to make this job offer to you and look forward to your joining our senior management team at Armstrong.

Sincerely,

Michael D Lockhart

Chairman & CEOExhibit 10.4

Exhibit 10.4

SECOND AMENDED AND RESTATED EMPLOYMENT AGREEMENT

This Amended and Restated Employment Agreement (the “Agreement”) is entered into as
of March 11, 2009 (the “Effective Date”) between Regenerx Biopharmaceuticals, Inc., a
Delaware corporation (the “Company”), and Dr. Allan L. Goldstein (the “Executive”).

Recitals

Whereas, the parties previously entered into an Employment Agreement, dated as of
January 1, 2002 (“Original Effective Date”) and subsequently amended the original Employment
Agreement effective as of December 31, 2008 based upon Section 409A of the Internal Revenue Code of
1986, as amended (“Code”), and now desire to amend and restate the Employment Agreement again in
order to reflect certain revisions to the terms and conditions of employment;

Whereas, Executive possesses substantial knowledge and experience with respect to the
Company’s business; and

Whereas, the Company desires to continue to employ Executive to have the benefits of
his expertise and knowledge and Executive, in turn, desires to remain in employment with the
Company;

NOW, THEREFORE, in consideration of the mutual covenants and representations contained in this
Agreement, the Company and Executive agree as follows:

Agreement

1. Employment Of Executive; Position. The Company agrees to employ Executive and Executive
agrees to be employed by the Company as the Chairman and Chief Scientific Advisor subject to the
terms and conditions of this Agreement. Executive shall devote such time to the affairs of the
Company as is necessary to perform his duties under this Agreement. The Company recognizes and
agrees that, so long as Executive shall be reasonably available to perform his duties hereunder, he
may engage in other businesses and may render services to other persons. In particular, the Company
agrees that Executive may continue to be employed by the George Washington University in
Washington, DC (the “University”), and it is understood that Executive’s activities on behalf of
the Company will not conflict with faculty guidelines with the University. In addition, Executive
may engage in any activities in the scientific community that maintain or advance his professional
status, such as serving as an officer in scientific societies, lecturing at academic institutions,
authoring papers and books, and engaging in research collaborations with other professionals so
long as such activities do not conflict with his responsibilities to the Company.

2. Term Of Employment And Renewal. The term of Executive’s employment under this Agreement
commenced on the Original Effective Date. The term of Executive’s employment hereunder was for an
initial term of three (3) years from the Original Effective Date (the “Initial Term”). The Initial
Term of this Agreement has been and shall continue to be automatically extended for successive one
(1) year periods (each a “Renewal Period”), unless the Company or Executive gives written notice to
the other at least thirty (30) days prior to the expiration of a Renewal Period, of such party’s
election not to extend this Agreement. References herein to the “Term” shall mean the Initial Term
as it may be so extended by one or more Renewal Periods. The last day of the Term is the
"Expiration Date.”

 

 

 

3. Duties. During the Term, Executive shall serve as the Chairman of the Company’s Board
of Directors (the “Board”) and shall perform such duties and responsibilities as are customarily
associated with his position and such other duties not inconsistent with his title and position and
as may be assigned to him by the Company. Executive shall act in conformity with the written and
oral policies of the Company and within the limits, budgets, business plans and instructions as set
by its Board. Executive shall be subject to the authority of the Board and the Company’s duly
appointed officers.

4. Place Of Employment. Executive acknowledges that the Company’s offices and headquarters
are currently located in the County of Montgomery, State of Maryland and that shall be the initial
site of Executive’s employment.

5. Other Employment Policies. The employment relationship between the parties shall also
be governed by the general employment policies and practices of the Company, including those
relating to protection of confidential information and assignment of inventions, except that when
the terms of this Agreement differ from or are in conflict with the Company’s general employment
policies or practices, this Agreement shall control.

6. Compensation.

6.1 Base Salary. On the Effective Date, Executive is receiving an annual base salary of One
Hundred Eighty Seven Thousand Four Hundred and Sixty (US $187,460) (the “Base Salary”),
subject to standard federal and state payroll withholding requirements. The Base Salary shall be
payable in equal periodic installments which are not less than on a monthly basis. The Base Salary
shall not be adjusted downward without the written consent of Executive, except in a circumstance
which is part of a general reduction or other concessionary arrangement affecting all employees or
affecting senior executive officers.

6.2 Bonus. Executive shall be eligible to receive an annual bonus in such amount as shall be
determined in the sole discretion of the Board of the Company.

7. Stock.

7.1 Stock Options. To date, Executive has been granted options (the “Options”) to purchase
550,000 shares of the Company’s common stock pursuant to the Company’s Amended and Restated 2000
Stock Option and Incentive Plan (“Plan”). Additionally, and from time to time at the sole
discretion of the Company’s Board, the Company may make additional stock option awards to Executive
(the “Additional Options”). Subject to the provisions below
regarding accelerated vesting of option grants, the specific terms and conditions of the
Option and any Additional Options will be as set forth in the Plan, and any stock option agreement
between Executive and the Company.

 

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7.2 Acceleration Clause For Stock Option Vesting. In the event of (a) Executive’s termination
from employment without Cause as that term is defined in Section 13.2 of this Agreement; or (b) a
Change of Control event as set forth under Section 12.1 of this Agreement, Executive’s Options and
any Additional Options shall be immediately vested and become exercisable in full. Additionally,
and without in any way limiting the foregoing, Executive’s Options and Additional Options will also
become vested and exercisable in full in the event of a “Change of Control” (or any similar term
provided in the Applicable Plan) as defined under the terms of the equity plan (the “Applicable
Plan”) pursuant to which such option was granted.

8. Benefits. Executive shall be entitled to (i) participate in and receive all standard
employee benefits under applicable Company welfare benefits plans and programs (if and when such
benefits are established by the Company) to the same extent as other senior executives of the
Company; (ii) participate in all applicable incentive plans, including stock option, stock, bonus,
savings and retirement plans provided by the Company (if and when such plans are established by the
Company), which are offered to senior executive officers in the company (provided,
however, that the Company is not obligated to award any particular type or amount of equity
to Executive); (iii) receive such perquisites as the Company may establish from time to time which
are commiserate with Executive’s position and comparable to those received by other senior
executives of the Company; (iv) paid vacation of at least four (4) weeks per annum; and (v)
holidays, leaves of absence and leaves for illness and temporary disability in accordance with the
policies of the Company and federal, state and local law.

9. Outside Activities.

9.1 Other Employment/Enterprise. Except with the prior written consent of the Board, Executive
will not, while employed by the Company undertake or engage in any other employment, occupation or
business enterprise, other than ones in which Executive is a passive investor or as permitted by
Section 1 of this Agreement, so long as such activities do not materially interfere or conflict
with the performance of his duties hereunder.

9.2 Conflicting Interests. Except as permitted by Section 1, while employed by the Company,
Executive agrees not to acquire, assume or participate in, directly or indirectly, any position,
investment or interest known by him to be adverse or antagonistic to the Company, its business or
prospects, financial or otherwise.

10. Proprietary Information, Nonsolicitation, Noncompetition And Inventions Assignment
Obligations. As a condition of employment, Executive agrees to execute and abide by the
Proprietary Information, Nonsolicitation, Noncompetition and Inventions Assignment Agreement
attached as Exhibit A to this Agreement.

11. Former Employment

11.1 No Conflict With Existing Obligations. Executive represents that his performance of all
the terms of this Agreement and as an employee of the Company does not and
will not breach any agreement or obligation of any kind made prior to his employment by the
Company, including agreements or obligations he may have with prior employers or entities for which
he has provided services or continues to provide services. Executive has not entered into, and
agrees he will not enter into, any agreement or obligation either written or oral in conflict
herewith.

 

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11.2 No Disclosure Of Confidential Information. If, in spite of the second sentence of Section
11.1, Executive should find that confidential information belonging to any former employer might be
usable in connection with the Company’s business, Executive will not intentionally disclose to the
Company or use on behalf of the Company any confidential information belonging to any of
Executive’s former employers (except in accordance with agreements between the Company and any such
former employer); but during Executive’s employment by the Company he will use in the performance
of his duties all information which is generally known and used by persons with training and
experience comparable to his own and all information which is common knowledge in the industry or
otherwise legally in the public domain.

12. Change Of Control.

12.1 Definition. “Change of Control” shall be deemed to occur upon any of the following
events:

(a) the dissolution or liquidation of the Company;

(b) the sale of all or substantially all of the assets of the Company to an unrelated person
or entity;

(c) a merger, reorganization or consolidation in which the holders of the Company’s
outstanding voting power immediately prior to such transaction do not own a majority of the
outstanding voting power of the surviving or resulting entity, or its parent corporation,
immediately upon completion of such transaction;

(d) the sale of all of the capital stock of the Company to an unrelated person or entity; or

(e) if any individual, firm, corporation, or other entity, or any group (as defined in Section
13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), other than (1) a
trustee or other fiduciary holding securities of the Company under an employee benefit plan of the
Company or (2) Executive becomes the “beneficial owner” (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities of the Company representing 50% or more of (A)
the outstanding shares of common stock of the Company, or (B) the combined voting power of the
Company’s then-outstanding securities entitled to vote generally in the election of directors, or

(f) any other transaction in which the owners of the Company’s outstanding voting power prior
to such transaction do not own at least a majority of the outstanding voting power of the relevant
entity after the transaction, in each case, regardless of the form thereof.

 

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12.2 Severance.

(a) In the event that Executive voluntarily terminates his employment with the Company for
any reason within 12 months after a Change of Control event, as defined in Section 12.1, then the
Company shall pay to Executive on the Release Effective Date (as defined below), in a lump sum
cash payment, an amount equal to his annual Base Salary in effect on the date of his termination
from employment, less any applicable federal and state taxes and withholdings. To receive any
severance pay hereunder (other than Accrued Compensation, as defined below), Executive shall first
be required to execute and deliver to the Company a valid and fully effective general waiver and
release of any claims against the Company, its affiliates, officers, directors, agents and
employees in a form satisfactory to the Company, within the consideration period set forth in the
waiver and release, which period shall not exceed forty-five (45) days after the effective date of
his termination from employment (the “General Release”). The date upon which the General Release
is executed and delivered to the Company, and can no longer be revoked, is referred to as a the
“Release Effective Date.”

(b) By no later than two weeks after the date of Executive’s termination from employment under
this Section (or earlier if required by applicable law or the Company’s policies), the Company
shall pay to Executive any Accrued Compensation. “Accrued Compensation” shall mean any Base Salary
owed to Executive for services performed before the date of his termination from employment, any
bonuses earned, if any, for bonus periods that have concluded prior to the date of his termination
(and not including bonuses for the period in which Executive’s termination occurs, unless otherwise
provided by the Company in its discretion), or any unused vacation or personal time in accordance
with the applicable policies of the Company.

13. Termination. The parties acknowledge that Executive’s employment with the Company is
at-will. The provisions of Sections 13.1 through 13.5 govern the amount of compensation, if any, to
be provided to Executive upon termination of employment and do not alter this at-will status.

13.1 Termination By The Company Without Cause.

(a) The Company shall have the right to terminate Executive’s employment with the Company at
any time without Cause (as that term is defined in Section 13.2) by giving notice as described in
Section 13.7 of this Agreement. Termination of employment on account of Executive’s death or
inability to perform his duties shall be governed by Section 13.4 below.

(b) In the event Executive’s employment is terminated without Cause, he shall receive any
Accrued Compensation, and shall be entitled to receive severance pay under the terms of Section
12.2 above.

13.2 Termination by Company for Cause.

(a) The Company, by action of its Board, may terminate Executive’s employment under this
Agreement for Cause at any time by giving notice as described in Section 13.7 of this Agreement.

 

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(b) “Cause” for termination means: (i) refusal, failure or neglect to perform the material
duties of his employment under this Agreement (other than by reason of Executive’s physical or
mental illness or impairment); (ii) committing willful dishonesty, fraud, embezzlement or
misconduct with respect to the business or affairs of the Company; (iii) indictment or conviction
of a felony or of any crime involving dishonesty or moral turpitude; or (iv) Executive’s refusal
to abide by or comply with the directives of the Board.

(c) In the event Executive’s employment is terminated at any time with Cause, he will not
receive any severance pay under Section 12.2 or otherwise, or any additional compensation other
than his Accrued Compensation, if any.

13.3 Voluntary Termination By Executive.

(a) Executive may voluntarily terminate his employment with the Company at any time by giving
notice as described in Section 13.7.

(b) In the event Executive voluntarily terminates his employment (other than after a Change
of Control event or for Good Reason as that term is defined in Section 13.5 below), he will not
receive any severance pay under Section 12.2 or otherwise, or any additional compensation other
than his Accrued Compensation, if any.

13.4 Termination for Inability to Regularly Perform Duties.

(a) This Agreement shall terminate automatically in the event of Executive’s death. The
Company may terminate Executive’s employment in the event of his illness, disability or other
incapacity in such a manner that Executive is rendered unable regularly to perform his duties
hereunder for more than either one hundred twenty (120) consecutive days or more than a total of
one hundred eighty (180) days in any consecutive twelve (12) month period, unless otherwise
prohibited by any applicable federal, state, or local law or ordinance.

(b) The determination regarding whether Executive is unable regularly to perform his duties
under (a) above shall be made by a doctor mutually acceptable to Executive and the Company.
Executive’s inability to be physically present on the Company’s premises shall not constitute a
presumption that Executive is unable to perform such duties.

(c) In the event Executive’s employment is terminated because of his death or inability to
regularly perform his duties as described in Section 13.4(a), he shall receive any Accrued
Compensation, and shall be entitled to receive severance pay under the terms of Section 12.2
above.

13.5 Resignation By Executive For Good Reason. Executive may resign his employment for “Good
Reason” by giving notice as described in Section 13.7 of this Agreement.

(a) “Good Reason” is defined as (i) a material change in Executive’s function, duties, or
responsibilities with the Company, which change would cause Executive’s position to become one of
lesser responsibility, importance, or scope from the position and attributes thereof, unless
consented to by Executive, (ii) a relocation of Executive’s principal place of employment by more
than 60 miles from its location at the Effective Date of this
Agreement, unless consented to by Executive, (iii) a material reduction in the benefits and
perquisites to Executive from those being provided as of the Effective Date of this Agreement,
unless consented to by Executive, or (iv) any material failure
by the Company to pay or provide the compensation and benefits

 

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 under this Agreement except any such circumstance which is part of a
general reduction or other concessionary arrangement affecting all employees or affecting senior
executive officers. In each such event listed in (i) through (iv) above, Executive shall give the
Company notice thereof by no later than ninety (90) days after the initial occurrence of the event
or condition allegedly constituting Good Reason which shall specify in reasonable detail the
circumstances constituting Good Reason. There shall be no Good Reason with respect to any such
event or condition cured by the Company within thirty (30) days after such notice. If the Company
fails to cure such event or condition within this thirty- (30-) day period, Executive must
terminate employment under this provision within ninety (90) days after the cure period has expired
(and thereafter Executive may no longer terminate his employment for a Good Reason based upon the
event or condition that was not cured).

(b) In the event of Executive’s resignation with Good Reason, he shall receive any Accrued
Compensation, and shall be entitled to receive severance pay under the terms of Section 12.2 above.

13.6 Non-renewal of the Agreement. Non-renewal of this Agreement initiated by the Company in
accordance with Section 2 above resulting in the termination of Executive’s employment by the
Company, or resulting in Executive’s demotion, shall be deemed a termination of Executive’s
employment without Cause and Executive shall be entitled to receive severance pay and benefits
under the terms of Section 12.2. If Executive initiates a non-renewal of this Agreement in
accordance with Section 2 above, he shall not be entitled to any severance pay or benefits from the
Company.

13.7 Notice; Effective Date of Termination. Termination of Executive’s employment pursuant to
this Agreement shall be effective on the earliest of:

(a) thirty (30) days after Executive, for any reason other than a Good Reason, gives written
notice to the Company of his termination;

(b) thirty (30) days after the Company, without Cause, gives written notice to Executive of
his termination, including for his inability to perform services for a reason other than death;
Executive will receive compensation through the 30-day notice period. However, the Company
reserves the right to require that Executive not perform any services or report to work during the
30-day notice period.

(c) immediately upon the Company giving written notice to Executive of his termination for
Cause.

(d) immediately upon Executive giving written notice to the Company of his termination for a
Good Reason (and after the cure period has expired).

14. Application of Section 409A. Notwithstanding anything to the contrary set forth
herein, any payments and benefits provided under this Agreement that constitute “deferred
compensation” within the meaning of Section 409A of the Code and the regulations and other
guidance thereunder and any state law of similar effect (collectively “Section 409A”) shall not
commence in connection with Executive’s termination of employment unless and until Executive has
also incurred a “separation from service” (as such term is defined in Treasury Regulation Section
1.409A-1(h) (“Separation From Service”), unless the Company reasonably determines that such amounts
may be provided to Executive without causing him to incur the additional 20% tax under Section
409A.

 

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If the Company (or, if applicable, the successor entity thereto) determines that any severance
payments constitute “deferred compensation” under Section 409A and Executive is, on the termination
of service, a “specified employee” of the Company or any successor entity thereto, as such term is
defined in Section 409A(a)(2)(B)(i) of the Code, then, solely to the extent necessary to avoid the
incurrence of the adverse personal tax consequences under Section 409A, the timing of the severance
payments shall be delayed until the earlier to occur of: (i) the date that is six months and one
day after Executive’s Separation From Service, or (ii) the date of Executive’s death (such
applicable date, the “Specified Employee Initial Payment Date”). On the Specified Employee Initial
Payment Date, the Company (or the successor entity thereto, as applicable) shall (A) pay to
Executive a lump sum amount equal to the sum of the severance payments that Executive would
otherwise have received through the Specified Employee Initial Payment Date if the commencement of
the severance payments had not been so delayed pursuant to this Section and (B) commence paying the
balance of the severance pay in accordance with the applicable payment schedules set forth in this
Agreement.

The Company’s obligations to make any reimbursements or provide in-kind benefits to Executive shall
be subject to the following restrictions: (a) Executive must provide documentation of any
reimbursable expenses in accordance with the Company’s then existing policies and procedures, (b)
the expenses paid or reimbursed by the Company in one calendar year shall not affect the expenses
paid or reimbursed in another calendar year, and (c) the reimbursement for any expenses shall be
made within a reasonable period of time following the date on which the Company receives written
documentation of the expense, provided that all expenses will be reimbursed on or before the last
day of the calendar year following the calendar year in which the expense was incurred.

15. Notices. Any notices provided hereunder must be in writing and shall be deemed
effective upon the earlier of personal delivery (including personal delivery by hand, telecopier,
or telex) or the third day after mailing by first class mail, to the Company at its primary office
location and to Executive at his address as listed on the Company payroll.

16. Validity; Complete Agreement. This Agreement and its Exhibit constitute the entire
agreement between Executive and the Company. This Agreement is the complete, final, and exclusive
embodiment of their agreement with regard to this subject matter and supercedes any prior oral
discussions or written communications and agreements. This Agreement is entered into without
reliance on any promise or representation other than those expressly contained herein, and it
cannot be modified or amended except in writing signed by an authorized officer of the Company.

17. Waiver. If either party should waive any breach of any provisions of this Agreement,
he or it shall not thereby be deemed to have waived any preceding or succeeding breach of the same
or any other provision of this Agreement.

 

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18. Severability. Whenever possible, each provision of this Agreement will be interpreted
in such manner as to be effective and valid under applicable law, but if any provision of this
Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law
or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any
other provision or any other jurisdiction, but this Agreement will be reformed, construed and
enforced in such jurisdiction as if such invalid, illegal or unenforceable provisions had never
been contained herein.

19. Amendment. This Agreement shall not be modified or amended except by written agreement
of the parties hereto.

20. Choice Of Law; Jurisdiction. This Agreement shall be governed by and construed in
accordance with the law of the State of Maryland regardless of the choice of law provisions of the
State of Maryland or any other jurisdiction. The Parties consent to the exclusive jurisdiction of
the federal and state courts in Maryland.

21. Arbitration Of Disputes. Any controversy or claim arising out of this Agreement or any
aspect of Executive’s relationship with the Company including the cessation thereof shall be
resolved by arbitration in accordance with the then existing Employment Dispute Resolution Rules of
the American Arbitration Association, in Montgomery County, Maryland, and judgment upon the award
rendered may be entered in any court having jurisdiction thereof. The parties shall split equally
the costs of arbitration, except that each party shall pay its own attorneys’ fees. The parties
agree that the award of the arbitrator shall be final and binding.

22. Indemnification. During the term of this Agreement, Executive shall be entitled to
coverage under any liability insurance procured by Company to the same extent as other senior
executives at the Company.

23. Counterpart. This Agreement may be executed in any number of counterparts, all of
which shall be considered one and the same agreement.

24. Delay; Partial Exercise. No failure or delay by any party in exercising any right,
power or privilege under this Agreement shall operate as a waiver thereof; nor shall any single or
partial exercise of any right, power or privilege hereunder preclude any other or further exercise
thereof or the exercise of any other right, power or privilege.

25. Successors And Assigns. This Agreement is intended to bind and inure to the benefit of
and be enforceable by Executive and the Company, and their respective successors, assigns, heirs,
executors and administrators, except that Executive may not assign any of his duties hereunder and
he may not assign any of his rights hereunder without the written consent of the Company, which
shall not be withheld unreasonably.

 

9

 

26. Advice Of Counsel. Executive and the Company hereby acknowledge that each party has
had adequate opportunity to review this Agreement, to obtain the advice of counsel with
respect to this Agreement, and to reflect upon and consider the terms and conditions of this
Agreement. The parties further acknowledge that each party fully understands the terms of this
Agreement and has voluntarily executed this Agreement. The Company shall pay the legal fees and
costs incurred by Executive in connection with the negotiation and preparation of this Agreement,
upon the presentation of invoices in appropriate form.

27. Headings. The headings of the sections hereof are inserted for convenience only and
shall not be deemed to constitute a part hereof nor to affect the meaning thereof.

28. Survival. Provisions of this Agreement which must survive the termination of this Agreement in
order to effectuate the intent of the parties, including, but not limited to, Sections 10, 12.2 and
13, shall continue in effect after the termination of the Agreement for a sufficient period of time
under the circumstances to effectuate the parties’ intent.

In Witness Whereof, the parties hereto have caused this Agreement to be executed as
of the day and year first written above.

	 	 	 	 	 
	 	“EXECUTIVE”

Dr. Allan L. Goldstein

 	 
	 	By:  	/s/ Dr. Allan L. Goldstein
 	 
	 	 	Dr. Allan L. Goldstein 	 
	 	

“THE COMPANY”

RegeneRx Biopharmaceuticals, Inc.

 	 
	 	By:  	/s/ J.J. Finkelstein
 	 
	 	 	J.J. Finkelstein 	 
	 	 	Title:  	President & CEO 	 

 

10

 

AMENDMENTS TO THE SECOND AMENDED AND RESTATED EMPLOYMENT AGREEMENT

Pursuant to Section 19 of the Second Amended and Restated Employment Agreement between
RegenerRx Biopharmaceuticals, Inc. (“Company”) and Dr. Allan L. Goldstein (“Executive”), dated as
of March 11, 2009 (“Agreement”), the following amendments (“Amendments”) to the Agreement are
hereby adopted as of the dates set forth below:

1. Section 6.1 of the Agreement is amended, effective as of April 1, 2009 (contingent upon the
award of a stock option to the Executive as provided in Paragraph 2 below), to provide that the
Executive’s annual Base Salary shall be $121,849, and to add the following sentence to the end of
Section 6.1: “Notwithstanding the reduction of Base Salary effective as of April 1, 2009, any
severance pay under the terms of the Agreement shall be calculated based upon Executive’s Base
Salary in effect as of March 31, 2009, or, if higher, Executive’s Base Salary in effect at the time
of his termination from employment.” All other provisions of Section 6.1 shall be unchanged.

2. Section 7.1 of the Agreement shall be revised to add the provisions set forth below to the
end of the Section:

“Subject to approval by the Board, the Company agrees to award to the Executive an option to
purchase 107,913 shares of the Company’s Common Stock, pursuant to the terms of the Company’s Plan,
at an exercise price that is equal to the fair market value of such Common Stock on the date of
grant of the option as determined in accordance with the Plan (“New Option”). The New Option,
which shall be an incentive stock option for purposes of section 422 of the Code to the maximum
extent permitted, and otherwise shall be treated as a non-qualified stock option, shall vest in
three equal vesting installments, occurring on June 30, 2009, September 30, 2009 and December 31,
2009, provided that the Executive has not incurred a Termination of Service (as defined in the
Plan) before any applicable vesting date. Notwithstanding Section 7.2 below or any provision of
the Plan, if the Executive is terminated from employment with the Company without Cause or if there
is a Change in Control (either as defined herein or in the Plan), the New Option shall not be
subject to any accelerated vesting, except as provided below. The New Option shall be forfeited in
its entirety (whether vested or unvested) if the Executive’s employment with the Company is
terminated for Cause at any time as set forth in Section 13.2. If the Executive voluntarily
terminates his employment with the Company (or if the Executive’s employment terminates because of
his death or disability), the New Option shall be considered to be vested and exercisable only
through the most recently completed vesting installment. If the Executive’s employment is
terminated without Cause, then the New Option shall be considered to be vested and exercisable
through the most recently completed vesting installment, and shall be credited with an additional
amount of daily pro-rata vesting for the period since the last installment date. If the
Executive’s Base Salary is increased to at least the amount in effect immediately prior to the
reduction on April 1, 2009, then no additional vesting shall occur with respect to the New Option
thereafter, provided that daily pro-rata vesting shall be credited for the period since the date of
the last vesting installment (and any unvested portion of the New Option shall terminate at that
time). The specific terms and
conditions of the New Option shall be as set forth in the Plan and the standard form of stock
option agreement, which the Executive hereby agrees to execute.”

 

11

 

The Executive acknowledges that these Amendments constitute his agreement and consent to the
reduction of his Base Salary, and further agrees that these Amendments and the reduction of his
Base Salary hereunder shall not constitute Good Reason to terminate his employment within the
meaning of the Agreement.

	 	 	 	 	 
	 	
EXECUTIVE:

 	 
	 	By:  	/s/ Dr. Allan L. Goldstein
 	 
	 	 	Dr. Allan L. Goldstein 	 
	 	

COMPANY:

RegeneRx Biopharmaceuticals, Inc.

 	 
	 	By:  	/s/ J.J. Finkelstein
 	 
	 	 	J.J. Finkelstein 	 
	 	 	Title:  	President & CEO 	 

 

12

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