Document:

2004 STOCK INCENTIVE PLAN

 Exhibit 10.2 
 ICAGEN, INC. 
  
 2004
STOCK INCENTIVE PLAN 
  

	1.	Purpose 

  
 The purpose of this 2004 Stock Incentive Plan (the “Plan”) of Icagen, Inc., a Delaware corporation (the “Company”), is to advance the
interests of the Company’s stockholders by enhancing the Company’s ability to attract, retain and motivate persons who make (or are expected to make) important contributions to the Company by providing such persons with equity ownership
opportunities and performance-based incentives and thereby better aligning the interests of such persons with those of the Company’s stockholders. Except where the context otherwise requires, the term “Company” shall include any of
the Company’s present or future parent or subsidiary corporations as defined in Sections 424(e) or (f) of the Internal Revenue Code of 1986, as amended, and any regulations promulgated thereunder (the “Code”) and any other business
venture (including, without limitation, joint venture or limited liability company) in which the Company has a controlling interest, as determined by the Board of Directors of the Company (the “Board”). 
  

	2.	Eligibility 

  
 All of the Company’s employees, officers, directors, consultants and advisors (and any individuals who have accepted an offer for employment) are
eligible to be granted options, restricted stock awards, or other stock-based awards (each, an “Award”) under the Plan. Each person who has been granted an Award under the Plan shall be deemed a “Participant.” 
  

	3.	Administration and Delegation 

  
 (a) Administration by Board of Directors. The Plan will be administered by the Board. The Board shall have authority to grant Awards and to adopt,
amend and repeal such administrative rules, guidelines and practices relating to the Plan as it shall deem advisable. The Board may correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Award in the manner and to
the extent it shall deem expedient to carry the Plan into effect and it shall be the sole and final judge of such expediency. All decisions by the Board shall be made in the Board’s sole discretion and shall be final and binding on all persons
having or claiming any interest in the Plan or in any Award. No director or person acting pursuant to the authority delegated by the Board shall be liable for any action or determination relating to or under the Plan made in good faith. 

 
 (b) Appointment of Committees. To the extent permitted by
applicable law, the Board may delegate any or all of its powers under the Plan to one or more committees or subcommittees of the Board (a “Committee”). All references in the Plan to the “Board” shall mean the Board or a Committee
of the Board or the executive officers referred to in Section 3(c), to the extent that the Board’s powers or authority under the Plan have been delegated to such Committee or executive officers. 
  
 (c) Delegation to Executive Officers. To the extent permitted by
applicable law, the Board may delegate to one or more executive officers of the Company the power to grant 

 Awards to employees or officers of the Company or any of its present or future subsidiary corporations and to exercise
such other powers under the Plan as the Board may determine; provided that the Board shall fix the terms of the Awards to be granted by such executive officers (including the exercise price of such Awards, which may include a formula by which the
exercise price will be determined) and the maximum number of shares subject to Awards that the executive officers may grant; provided further, however, that no executive officer shall be authorized to grant Awards to any “executive
officer” of the Company (as defined by Rule 3b-7 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). 
  

	4.	Stock Available for Awards 

  
 (a) Number of Shares. Subject to adjustment under Section 8, Awards may be made under the Plan for up to the number of shares of common stock,
$0.001 par value per share, of the Company (the “Common Stock”) that is equal to the sum of: 
  

	 	(1)	2,500,000 shares of Common Stock; plus 

  

	 	(2)	such additional number of shares of Common Stock (up to 650,000 shares) as is equal to the sum of (x) the number of shares of Common Stock reserved for issuance under the
Company’s Equity Compensation Plan, as amended (the “Existing Plan”) that remain available for grant under the Existing Plan immediately prior to the closing of the Company’s initial public offering and (y) the number of shares
of Common Stock subject to awards granted under the Existing Plan which awards expire, terminate or are otherwise surrendered, canceled, forfeited or repurchased by the Company at their original issuance price pursuant to a contractual repurchase
right (subject, however, in the case of Incentive Stock Options (as hereinafter defined) to any limitations of the Code); plus 

  

	 	(3)	an annual increase to be added on the first day of each of the Company’s fiscal years during the period beginning in fiscal year 2006 and ending on the second day of fiscal
year 2014 equal to the lesser of (i) 1,000,000 shares of Common Stock, (ii) 5% of the outstanding shares on such date, or (iii) an amount determined by the Board. 

  
 Notwithstanding clause (3) above, in no event shall the number of shares available under this Plan be increased as set forth
in clause (3) to the extent such increase, in addition to any other increases proposed by the Board in the number of shares available for issuance under all other employee or director stock plans, would result in the total number of shares then
available for issuance under all employee and director stock plans exceeding 25% of the outstanding shares of the Company on the first day of the applicable fiscal year. 
  
 If any Award expires or is terminated, surrendered or canceled without having been fully exercised or is forfeited in whole
or in part (including as the result of shares of Common Stock subject to such Award being repurchased by the Company at the original issuance price pursuant to a contractual repurchase right) or results in any Common Stock not being issued, the
unused Common Stock covered by such Award shall again be available for the grant of Awards under 
  

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 the Plan, subject, however, in the case of Incentive Stock Options, to any limitations under the Code. Shares issued
under the Plan may consist in whole or in part of authorized but unissued shares or treasury shares. 
  
 (b) Per-Participant Limit. Subject to adjustment under Section 8, for Awards granted after the Common Stock is registered under the Securities
Exchange Act of 1934 (the “Exchange Act”), the maximum number of shares of Common Stock with respect to which Awards may be granted to any Participant under the Plan shall be 500,000 shares per calendar year. The per-Participant limit
described in this Section 4(b) shall be construed and applied consistently with Section 162(m) of the Code (“Section 162(m)”). 
  

	5.	Stock Options 

  
 (a) General. The Board may grant options to purchase Common Stock (each, an “Option”) and determine the number of shares of Common Stock
to be covered by each Option, the exercise price of each Option and the conditions and limitations applicable to the exercise of each Option, including conditions relating to applicable federal or state securities laws, as it considers necessary or
advisable. An Option which is not intended to be an Incentive Stock Option (as hereinafter defined) shall be designated a “Nonstatutory Stock Option.” 
  

(b) Incentive Stock Options. An Option that the Board intends to be an “incentive stock option” as defined in Section 422 of the Code
(an “Incentive Stock Option”) shall only be granted to employees of the Company or any of its present or future parent or subsidiary corporations as defined in Section 424(e) or (f) of the Code, and any other entities the employees of
which are entitled to receive Incentive Stock Options under the Code, and shall be subject to and shall be construed consistently with the requirements of Section 422 of the Code. The Company shall have no liability to a Participant, or any other
party, if an Option (or any part thereof) that is intended to be an Incentive Stock Option is not an Incentive Stock Option. 
  
 (c) Exercise Price. The Board shall establish the exercise price at the time each Option is granted and specify it in the applicable option
agreement. 
  
 (d) Duration of Options. Each Option shall
be exercisable at such times and subject to such terms and conditions as the Board may specify in the applicable option agreement. 
  
 (e) Exercise of Option. Options may be exercised by delivery to the Company of a written notice of exercise signed by the proper person or by any
other form of notice (including electronic notice) approved by the Board together with payment in full as specified in Section 5(f) for the number of shares for which the Option is exercised. 
  
 (f) Payment Upon Exercise. Common Stock purchased upon the exercise of
an Option granted under the Plan shall be paid for as follows: 
  
 (1) in cash or by check, payable to the order of the Company; 
  
 (2) except as the Board may, in its sole discretion, otherwise provide in an option agreement, by (i) delivery of an irrevocable and unconditional undertaking by a creditworthy broker to deliver promptly to the Company sufficient funds to
pay the exercise 
  

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 price and any required tax withholding or (ii) delivery by the Participant to the Company of a copy of irrevocable and
unconditional instructions to a creditworthy broker to deliver promptly to the Company cash or a check sufficient to pay the exercise price and any required tax withholding; 
  
 (3) when the Common Stock is registered under the Exchange Act, by delivery of shares of Common Stock owned by the
Participant valued at their fair market value as determined by (or in a manner approved by) the Board in good faith (“Fair Market Value”), provided (i) such method of payment is then permitted under applicable law and (ii) such Common
Stock, if acquired directly from the Company, was owned by the Participant at least six months prior to such delivery; 
  
 (4) to the extent permitted by applicable law and by the Board, in its sole discretion by (i) delivery of a promissory note of the Participant to the
Company on terms determined by the Board, or (ii) payment of such other lawful consideration as the Board may determine; or 
  
 (5) by any combination of the above permitted forms of payment. 
  

(g) Substitute Options. In connection with a merger or consolidation of an entity with the Company or the acquisition by the Company of property
or stock of an entity, the Board may grant Options in substitution for any options or other stock or stock-based awards granted by such entity or an affiliate thereof. Substitute Options may be granted on such terms as the Board deems appropriate in
the circumstances, notwithstanding any limitations on Options contained in the other sections of this Section 5 or in Section 2. 
  
 (h) Repricing of Options. The Board shall have the authority, at any time and from time to time, with the consent of the affected Participants, to
amend any or all outstanding Options granted under the Plan to provide an Option exercise price per share which may be lower or higher than the original Option exercise price, and/or cancel any such Options and grant in substitution therefore other
Awards, including new Options, covering the same or different numbers of shares of Common Stock having an Option exercise price per share which may be lower or higher than the exercise price of the canceled Options. 
  

	6.	Restricted Stock 

  
 (a) Grants. The Board may grant Awards entitling recipients to acquire shares of Common Stock, subject to the right of the Company to repurchase
all or part of such shares at their issue price or other stated or formula price (or to require forfeiture of such shares if issued at no cost) from the recipient in the event that conditions specified by the Board in the applicable Award are not
satisfied prior to the end of the applicable restriction period or periods established by the Board for such Award (each, a “Restricted Stock Award”). 
  

(b) Terms and Conditions. The Board shall determine the terms and conditions of any such Restricted Stock Award, including the conditions for
repurchase (or forfeiture) and the issue price, if any. 
  

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 (c) Stock Certificates. Any stock certificates issued in respect of a Restricted Stock Award shall
be registered in the name of the Participant and, unless otherwise determined by the Board, deposited by the Participant, together with a stock power endorsed in blank, with the Company (or its designee). At the expiration of the applicable
restriction periods, the Company (or such designee) shall deliver the certificates no longer subject to such restrictions to the Participant or if the Participant has died, to the beneficiary designated, in a manner determined by the Board, by a
Participant to receive amounts due or exercise rights of the Participant in the event of the Participant’s death (the “Designated Beneficiary”). In the absence of an effective designation by a Participant, Designated Beneficiary shall
mean the Participant’s estate. 
  

	7.	Other Stock-Based Awards 

  
 The Board shall have the right to grant other Awards based upon the Common Stock having such terms and conditions as the Board may determine, including
the grant of shares based upon certain conditions, the grant of securities convertible into Common Stock and the grant of stock appreciation rights. 
  

	8.	Adjustments for Changes in Common Stock and Certain Other Events 

  
 (a) Changes in Capitalization. In the event of any stock split, reverse stock split, stock dividend, recapitalization, combination of shares,
reclassification of shares, spin-off or other similar change in capitalization or event, or any distribution to holders of Common Stock other than an ordinary cash dividend, (i) the number and class of securities available under this Plan, (ii) the
per-Participant limit set forth in Section 4(b), (iii) the number and class of securities and exercise price per share subject to each outstanding Option, (iv) the repurchase price per share subject to each outstanding Restricted Stock Award, and
(v) the terms of each other outstanding Award shall be appropriately adjusted by the Company (or substituted Awards may be made, if applicable) to the extent the Board shall determine, in good faith, that such an adjustment (or substitution) is
necessary and appropriate. If this Section 8(a) applies and Section 8(c) also applies to any event, Section 8(c) shall be applicable to such event, and this Section 8(a) shall not be applicable. 
  
 (b) Liquidation or Dissolution. In the event of a proposed liquidation
or dissolution of the Company, the Board shall upon written notice to the Participants provide that all then unexercised Options will (i) become exercisable in full as of a specified time at least 10 business days prior to the effective date of such
liquidation or dissolution and (ii) terminate effective upon such liquidation or dissolution, except to the extent exercised before such effective date. The Board may specify the effect of a liquidation or dissolution on any Restricted Stock Award
or other Award granted under the Plan at the time of the grant of such Award. 
  

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	(c)	Reorganization and Change in Control Events 

  
 (1) Definitions 
  
 (a) A “Reorganization Event” shall mean: 
  
 (i) any merger or consolidation of the Company with or into another entity as a result of which all of the Common Stock of the Company is converted into
or exchanged for the right to receive cash, securities or other property; or 
  
 (ii) any exchange of all of the Common Stock of the Company for cash, securities or other property pursuant to a share exchange transaction. 
  
 (b) A “Change in Control Event” shall mean: 
  
 (i) the acquisition by an individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange
Act) (a “Person”) of beneficial ownership of any capital stock of the Company if, after such acquisition, such Person beneficially owns (within the meaning of Rule 13d-3 promulgated under the Exchange Act) 30% or more of either (x) the
then-outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”) or (y) the combined voting power of the then-outstanding securities of the Company entitled to vote generally in the election of directors (the
“Outstanding Company Voting Securities”); provided, however, that for purposes of this subsection (i), the following acquisitions shall not constitute a Change in Control Event: (A) any acquisition directly from the Company
(excluding an acquisition pursuant to the exercise, conversion or exchange of any security exercisable for, convertible into or exchangeable for common stock or voting securities of the Company, unless the Person exercising, converting or exchanging
such security acquired such security directly from the Company or an underwriter or agent of the Company), (B) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by
the Company, or (C) any acquisition by any corporation pursuant to a Business Combination (as defined below) which complies with clauses (x) and (y) of subsection (iii) of this definition; or 
  

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 (ii) such time as the Continuing Directors (as defined below) do not constitute a majority of the Board
(or, if applicable, the Board of Directors of a successor corporation to the Company), where the term “Continuing Director” means at any date a member of the Board (x) who was a member of the Board on the date of the initial adoption of
this Plan by the Board or (y) who was nominated or elected subsequent to such date by at least a majority of the directors who were Continuing Directors at the time of such nomination or election or whose election to the Board was recommended or
endorsed by at least a majority of the directors who were Continuing Directors at the time of such nomination or election; provided, however, that there shall be excluded from this clause (y) any individual whose initial assumption of
office occurred as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents, by or on behalf of a person other than the Board; or

  
 (iii) the consummation of a merger, consolidation,
reorganization, recapitalization or share exchange involving the Company or a sale or other disposition of all or substantially all of the assets of the Company (a “Business Combination”), unless, immediately following such Business
Combination, each of the following two conditions is satisfied: (x) all or substantially all of the individuals and entities who were the beneficial owners of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately
prior to such Business Combination beneficially own, directly or indirectly, more than 50% of the then-outstanding shares of common stock and the combined voting power of the then-outstanding securities entitled to vote generally in the election of
directors, respectively, of the resulting or acquiring corporation in such Business Combination (which shall include, without limitation, a corporation which as a result of such transaction owns the Company or substantially all of the Company’s
assets either directly or through one or more subsidiaries) (such resulting or acquiring corporation is referred to herein as the “Acquiring Corporation”) in substantially the same proportions as their ownership of the Outstanding Company
Common Stock and Outstanding Company Voting Securities, respectively, immediately prior to such Business Combination and (y) no Person (excluding the Acquiring Corporation or any employee benefit plan (or 
  

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 related trust) maintained or sponsored by the Company or by the Acquiring Corporation) beneficially owns, directly or
indirectly, 50% or more of the then-outstanding shares of common stock of the Acquiring Corporation, or of the combined voting power of the then-outstanding securities of such corporation entitled to vote generally in the election of directors
(except to the extent that such ownership existed prior to the Business Combination). 
  
 (c) “Good Reason” shall mean a significant diminution in the Participant’s title, authority, or responsibilities from and after such Reorganization Event or Change in Control Event, as the case may be,
or a reduction in the annual cash compensation payable to the Participant from and after such Reorganization Event or Change in Control Event, as the case may be, or the relocation of the place of business at which the Participant is principally
located to a location that is greater than 50 miles from the current site. 
  
 (d) “Cause”, as determined by the Board, shall mean any (i) willful failure by the Participant, which failure is not cured within 30 days of written notice to the Participant from the Company, to perform his
or her material responsibilities to the Company or (ii) willful misconduct by the Participant which affects the business reputation of the Company. 
  

	 	(2)	Effect on Options 

  
 (a) Reorganization Event. Upon the occurrence of a Reorganization Event (regardless of whether such event also constitutes a Change in Control
Event), or the execution by the Company of any agreement with respect to a Reorganization Event (regardless of whether such event will result in a Change in Control Event), the Board shall provide that all outstanding Options shall be assumed, or
equivalent options shall be substituted, by the acquiring or succeeding corporation (or an affiliate thereof); provided that if such Reorganization Event also constitutes a Change in Control Event, except to the extent specifically
provided to the contrary in the instrument evidencing any Option or any other agreement between a Participant and the Company, such assumed or substituted options shall become immediately exercisable in full if, on or prior to the eighteen-month
anniversary of the date of the consummation of the Reorganization Event, the Participant’s employment with the Company or the acquiring or succeeding corporation is terminated for Good Reason by the Participant or is terminated without Cause by
the Company or the acquiring or succeeding corporation. For purposes hereof, an Option shall be considered to be assumed if, following consummation of the 
  

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 Reorganization Event, the Option confers the right to purchase, for each share of Common Stock subject to the Option
immediately prior to the consummation of the Reorganization Event, the consideration (whether cash, securities or other property) received as a result of the Reorganization Event by holders of Common Stock for each share of Common Stock held
immediately prior to the consummation of the Reorganization Event (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding shares of Common Stock); provided, however,
that if the consideration received as a result of the Reorganization Event is not solely common stock of the acquiring or succeeding corporation (or an affiliate thereof), the Company may, with the consent of the acquiring or succeeding corporation,
provide for the consideration to be received upon the exercise of Options to consist solely of common stock of the acquiring or succeeding corporation (or an affiliate thereof) equivalent in fair market value to the per share consideration received
by holders of outstanding shares of Common Stock as a result of the Reorganization Event. 
  
 Notwithstanding the foregoing, if the acquiring or succeeding corporation (or an affiliate thereof) does not agree to assume, or substitute for, such Options, then the Board shall, upon written notice to the
Participants, provide that all then unexercised Options will become exercisable in full as of a specified time prior to the Reorganization Event and will terminate immediately prior to the consummation of such Reorganization Event, except to the
extent exercised by the Participants before the consummation of such Reorganization Event; provided, however, in the event of a Reorganization Event under the terms of which holders of Common Stock will receive upon consummation thereof a cash
payment for each share of Common Stock surrendered pursuant to such Reorganization Event (the “Acquisition Price”), then the Board may instead provide that all outstanding Options shall terminate upon consummation of such Reorganization
Event and that each Participant shall receive, in exchange therefor, a cash payment equal to the amount (if any) by which (A) the Acquisition Price multiplied by the number of shares of Common Stock subject to such outstanding Options (whether or
not then exercisable), exceeds (B) the aggregate exercise price of such Options. 
  
 (b) Change in Control Event that is not a Reorganization Event. Upon the occurrence of a Change in Control Event that does not also constitute a Reorganization Event, except to the extent specifically provided
to the contrary in the instrument evidencing any Option or any other agreement between a Participant and the Company, each then-outstanding Option shall continue to become vested in 
  

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 accordance with the original vesting schedule set forth in such Option; provided, however, that each such Option shall
become immediately exercisable in full if, on or prior to the eighteen-month anniversary of the date of the consummation of the Change in Control Event, the Participant’s employment with the Company or the acquiring or succeeding corporation is
terminated for Good Reason by the Participant or is terminated without Cause by the Company or the acquiring or succeeding corporation. 
  

	 	(3)	Effect on Restricted Stock Awards 

  
 (a) Reorganization Event that is not a Change in Control Event. Upon the occurrence of a Reorganization Event that is not a Change in Control
Event, the repurchase and other rights of the Company under each outstanding Restricted Stock Award shall inure to the benefit of the Company’s successor and shall apply to the cash, securities or other property which the Common Stock was
converted into or exchanged for pursuant to such Reorganization Event in the same manner and to the same extent as they applied to the Common Stock subject to such Restricted Stock Award. 
  
 (b) Change in Control Event. Upon the occurrence of a Change in Control Event (regardless of whether such event also
constitutes a Reorganization Event), except to the extent specifically provided to the contrary in the instrument evidencing any Restricted Stock Award or any other agreement between a Participant and the Company, each then-outstanding Restricted
Stock Award shall continue to become free from conditions or restrictions in accordance with the original schedule set forth in such Restricted Stock Award; provided however, that each such Restricted Stock Award shall immediately become free from
all conditions or restrictions if, on or prior to the eighteen-month anniversary of the date of the consummation of the Change in Control Event, the Participant’s employment with the Company or the acquiring or succeeding corporation is
terminated for Good Reason by the Participant or is terminated without Cause by the Company or the acquiring or succeeding corporation. 
  

	 	(4)	Effect on Other Awards 

  
 (a) Reorganization Event that is not a Change in Control Event. The Board shall specify the effect of a Reorganization Event that is not a Change
in Control Event on any other Award granted under the Plan at the time of the grant of such Award. 
  
 (b) Change in Control Event. Upon the occurrence of a Change in Control Event (regardless of whether such event also constitutes a 
  

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 Reorganization Event), except to the extent specifically provided to the contrary in the instrument evidencing any other
Award or any other agreement between a Participant and the Company, each such then-outstanding Award shall continue to become exercisable, realizable, vested or free from conditions or restrictions in accordance with the original schedule set forth
in such Award; provided, however, that each such Award shall immediately become fully exercisable, realizable, vested or free from conditions or restrictions if, on or prior to the eighteen-month anniversary of the date of the consummation of the
Change in Control Event, the Participant’s employment with the Company or the acquiring or succeeding corporation is terminated for Good Reason by the Participant or is terminated without Cause by the Company or the acquiring or succeeding
corporation. 
  

	 	9.	General Provisions Applicable to Awards 

  
 (a) Transferability of Awards. Except as the Board may otherwise determine or provide in an Award, Awards shall not be sold, assigned, transferred,
pledged or otherwise encumbered by the person to whom they are granted, either voluntarily or by operation of law, except by will or the laws of descent and distribution, and, during the life of the Participant, shall be exercisable only by the
Participant. References to a Participant, to the extent relevant in the context, shall include references to authorized transferees. 
  
 (b) Documentation. Each Award shall be evidenced in such form (written, electronic or otherwise) as the Board shall determine. Each Award may
contain terms and conditions in addition to those set forth in the Plan. 
  
 (c) Board Discretion. Except as otherwise provided by the Plan, each Award may be made alone or in addition or in relation to any other Award. The terms of each Award need not be identical, and the Board need
not treat Participants uniformly. 
  
 (d) Termination of
Status. The Board shall determine the effect on an Award of the disability, death, retirement, authorized leave of absence or other change in the employment or other status of a Participant and the extent to which, and the period during which,
the Participant, the Participant’s legal representative, conservator, guardian or Designated Beneficiary may exercise rights under the Award. 
  
 (e) Withholding. Each Participant shall pay to the Company, or make provision satisfactory to the Board for payment of, any taxes required by law
to be withheld in connection with Awards to such Participant no later than the date of the event creating the tax liability. Except as the Board may otherwise provide in an Award, when the Common Stock is registered under the Exchange Act,
Participants may satisfy such tax obligations in whole or in part by delivery of shares of Common Stock, including shares retained from the Award creating the tax obligation, valued at their Fair Market Value; provided, however, that the total tax
withholding where stock is being used to satisfy such tax obligations cannot exceed the Company’s minimum statutory withholding obligations (based on minimum statutory withholding rates for federal and 
  

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 state tax purposes, including payroll taxes, that are applicable to such supplemental taxable income). The Company may,
to the extent permitted by law, deduct any such tax obligations from any payment of any kind otherwise due to a Participant. 
  
 (f) Amendment of Award. The Board may amend, modify or terminate any outstanding Award, including but not limited to, substituting therefor another
Award of the same or a different type, changing the date of exercise or realization, and converting an Incentive Stock Option to a Nonstatutory Stock Option, provided that the Participant’s consent to such action shall be required unless the
Board determines that the action, taking into account any related action, would not materially and adversely affect the Participant. 
  
 (g) Conditions on Delivery of Stock. The Company will not be obligated to deliver any shares of Common Stock pursuant to the Plan or to remove
restrictions from shares previously delivered under the Plan until (i) all conditions of the Award have been met or removed to the satisfaction of the Company, (ii) in the opinion of the Company’s counsel, all other legal matters in connection
with the issuance and delivery of such shares have been satisfied, including any applicable securities laws and any applicable stock exchange or stock market rules and regulations, and (iii) the Participant has executed and delivered to the Company
such representations or agreements as the Company may consider appropriate to satisfy the requirements of any applicable laws, rules or regulations. 
  
 (h) Acceleration. The Board may at any time provide that any Award shall become immediately exercisable in full or in part, free of some or all
restrictions or conditions, or otherwise realizable in full or in part, as the case may be. 
  

	 	10.	Miscellaneous 

  
 (a) No Right To Employment or Other Status. No person shall have any claim or right to be granted an Award, and the grant of an Award shall not be
construed as giving a Participant the right to continued employment or any other relationship with the Company. The Company expressly reserves the right at any time to dismiss or otherwise terminate its relationship with a Participant free from any
liability or claim under the Plan, except as expressly provided in the applicable Award. 
  
 (b) No Rights As Stockholder. Subject to the provisions of the applicable Award, no Participant or Designated Beneficiary shall have any rights as a stockholder with respect to any shares of Common Stock to be
distributed with respect to an Award until becoming the record holder of such shares. Notwithstanding the foregoing, in the event the Company effects a split of the Common Stock by means of a stock dividend and the exercise price of and the number
of shares subject to such Option are adjusted as of the date of the distribution of the dividend (rather than as of the record date for such dividend), then an optionee who exercises an Option between the record date and the distribution date for
such stock dividend shall be entitled to receive, on the distribution date, the stock dividend with respect to the shares of Common Stock acquired upon such Option exercise, notwithstanding the fact that such shares were not outstanding as of the
close of business on the record date for such stock dividend. 
  

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 (c) Effective Date and Term of Plan. The Plan shall become effective on the date on which the
Securities and Exchange Commission declares the registration statement on Form S-1 for the initial public offering of the Company’s Common Stock effective (the “Effective Date”). No Awards shall be granted under the Plan after the
completion of ten years from the earlier of (i) the Effective Date or (ii) the effective date of the approval of the Plan by the Company’s stockholders, but Awards previously granted may extend beyond that date. 
  
 (d) Amendment of Plan. The Board may amend, suspend or terminate the
Plan or any portion thereof at any time, provided that to the extent required by Section 162(m), no Award granted to a Participant that is intended to comply with Section 162(m) after the date of such amendment shall become exercisable, realizable
or vested, as applicable to such Award, unless and until such amendment shall have been approved by the Company’s stockholders as required by Section 162(m) (including the vote required under Section 162(m)). 
  
 (e) Authorization of Sub-Plans. The Board may from time to time
establish one or more sub-plans under the Plan for purposes of satisfying applicable blue sky, securities or tax laws of various jurisdictions. The Board shall establish such sub-plans by adopting supplements to this Plan containing (i) such
limitations on the Board’s discretion under the Plan as the Board deems necessary or desirable or (ii) such additional terms and conditions not otherwise inconsistent with the Plan as the Board shall deem necessary or desirable. All supplements
adopted by the Board shall be deemed to be part of the Plan, but each supplement shall apply only to Participants within the affected jurisdiction and the Company shall not be required to provide copies of any supplement to Participants in any
jurisdiction which is not the subject of such supplement. 
  
 (f)
Governing Law. The provisions of the Plan and all Awards made hereunder shall be governed by and interpreted in accordance with the laws of the State of Delaware, without regard to any applicable conflicts of law. 
  
 Adopted by the Board of Directors on 
 February 29, 2004, to be effective as of the 
 Effective Date (as defined herein) 
  
 Approved by the stockholders on 
 May 19, 2004, to be effective as of the 
 Effective Date (as defined herein) 
  

 13EXECUTIVE EMPLOYMENT AGREEMENT DATED MAY 14,2004 W/P. KAY WAGONER

 Exhibit 10.3 
  
 EXECUTIVE EMPLOYMENT AGREEMENT 
  
 This EXECUTIVE EMPLOYMENT AGREEMENT (the “Agreement”), is entered into as of May 14, 2004 by and between Icagen,
Inc. (the “Company”), with offices located at 4222 Emperor Boulevard, Suite 350, Durham, North Carolina 27703, and P. Kay Wagoner, Ph.D. (“Executive”), whose address is 1001 Monterey Valley, Chapel Hill, NC 27516. 
  
 WITNESSETH: 
  
 WHEREAS, the Company is engaged in certain pharmaceutical research, development and marketing activities; and 
  
 WHEREAS, the Company has employed and wishes to continue to employ Executive
in the position of President and Chief Executive Officer, and Executive desires to continue in the employment with the Company; and 
  
 NOW, THEREFORE, in consideration of the foregoing and the provisions and mutual promises herein contained and other good and valuable consideration, the
parties hereby agree as follows: 
  
 1. EMPLOYMENT. The Company
hereby engages and employs Executive, and Executive hereby accepts engagement and employment, as President and Chief Executive Officer, of the Company, with such duties and responsibilities as are normally related to such position in accordance with
the standards of the industry and any additional duties as may be assigned to Executive from time to time by the Board of Directors of the Company. 
  
 2. TERM. Executive’s employment shall be for a term beginning as of the date of execution of this Agreement and continuing to and including July 6,
2007 (the “Term”), and thereafter shall be automatically renewed with additional one (1) year terms to follow consecutively, subject to the termination and severance provisions herein later provided, unless amended or modified by mutual
agreement of the parties. As used herein, “Term” shall include the Initial Term and any renewals thereof in accordance with this Agreement. 
  
 3. EXCLUSIVE SERVICE. Executive agrees to devote Executive’s full time and attention to the performance of Executive’s duties and
responsibilities on behalf of the Company and to comply with all policies and regulations of the Company. 
  
 4. COMPENSATION. During the Term of this Agreement, Executive’s compensation shall be determined and paid as follows: 
  
 (a) Base Salary. Executive shall receive an annual
base salary of at least $270,000.00, payable in accordance with the Company’s payroll practices. Annual increases will be made, if any, based upon performance, and in the sole discretion of the Board of Directors or the Compensation Committee
of the Board of Directors (each or collectively, the “Committee”), such increases to be effective as of July 6 of each year during the Term. 

 (b) Bonus. Executive shall be eligible to participate in any management bonus plan
established by the Board of Directors from time to time. The determination of the actual bonus earned, if any, shall be at the sole discretion of the Committee and shall be based upon the Committee’s assessment of Executive’s performance
and the achievement of certain objectives which shall be set by the Committee from time to time. Nothing in this section shall be construed as guaranteeing Executive a bonus in any amount. 
  
 (c) Stock Options. Executive shall be eligible for
future stock options as shall be awarded in the discretion of the Committee. 
  
 (d) Benefits. Executive shall be eligible to participate in the Company’s standard employee benefit programs, including vacation, made available to employees of the Company from time to time, subject to
appropriate premium contributions, benefit elections, etc. 
  
 (e) Business Expenses. The Company shall reimburse Executive for all reasonable expenses incurred in the furtherance of the Company’s business and interests, including travel and entertainment. Executive
agrees to comply with the expense reporting policies and procedures of the Company. 
  
 (f) Adequate Office Space. The Company shall provide to Executive adequate office space, facilities, and administrative support
appropriate to Executive’s position. 
  
 (g)
Disability. The Company will pay Executive as additional compensation an amount equal to the premium costs of an individual long term disability insurance plan. The plan shall provide for a benefit indemnity payment schedule equal to 60% of
Executive’s annual base salary rate. The Company shall also pay Executive as additional salary for such long term disability plan, an amount sufficient to cover the additional income taxes owed on such compensation payments. 
  
 (h) Estate Planning and Similar Costs. During the
term of this Agreement, the Company will reimburse Executive for up to $10,000 in legal fees and expenses incurred by Executive in connection with (A) estate and tax planning, and (B) the establishment and administration of a Rule 10b5-1 securities
selling program. 
  
 5. TERMINATION. This Agreement shall
or may be terminated, as the case may be, upon the terms and conditions hereinafter provided. 
  
 (a) Voluntary Termination. This Agreement shall be considered voluntarily terminated by the parties if either party provides
written notice of such party’s intent not to renew this Agreement, provided that such party shall provide at least one hundred eighty (180) days’ written notice to the other party. 
  
 (b) Involuntary Termination. The Company may
terminate this Agreement upon written notice to Executive (or Executive’s representative) in any of the following events: 
  
 (i) The death of Executive; 
  
 (ii) Executive becomes permanently disabled; or 
  

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 (iii) For Cause, immediately upon written notice to Executive. “Cause” shall be
determined by the Board of Directors and shall mean: 
  
 A. Any material breach of Executive of the terms of this Agreement or any non-disclosure, invention, non-competition or non-solicitation agreement between Executive and the Corporation; or 
  
 B. The failure of Executive to diligently and properly
perform Executive’s duties for the Corporation, such breach or failure to be determined in the reasonable and final judgment of the Board of Directors of the Corporation and which breach or failure is not corrected within thirty (30) days after
written notice of such failure by the Board of Directors; or 
  
 C. Any material failure by Executive to comply with the reasonable policies and/or directives of the Board of Directors, which failure is not corrected within thirty (30) days after written notice of such failure by
the Board of Directors; or 
  
 D. Any action by
Executive that is illegal or dishonest which is materially detrimental to the interest and well-being of the Corporation; or 
  
 E. Any willful and knowing violation of any rules or regulations of any governmental or regulatory body, which is materially detrimental
to the interest and well-being of the Corporation; or 
  
 F. Any failure by Executive to fully disclose any material conflict of interest Executive may have with the Corporation in a transaction between the Corporation and any third party which is materially detrimental to the interest and
well-being of the Corporation; or 
  
 G. Any
adverse act or omission by Executive which would be required to be disclosed pursuant to applicable securities laws or which would limit the ability of the Corporation or any entity affiliated with the Corporation to issue or sell securities under
any Federal or state law or which would disqualify the Corporation or any affiliated entity from any exemption otherwise available to it, all of which are materially detrimental to the interest and well-being of the Corporation. 
  
 (c) Obligations upon Certain Terminations. Upon
voluntary termination of this Agreement by Executive, or termination of Executive’s employment by the Company for Cause (as defined above) or upon Executive’s death or disability, or termination by Executive for other than Good Reason (as
defined below), the Company shall have no further obligations hereunder other than the payment of all compensation and other benefits payable to Executive through the date of such termination and the payment of any amounts due pursuant to the last
sentence of Section 4(g) hereof and pursuant to Section 5(f) hereof. 
  

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 (d) Severance. In the event of termination of Executive’s employment (i) by
the Company for reasons other than Cause or other than by reason of Executive’s death or disability, or (ii) by Executive for Good Reason, Executive shall receive, as partial consideration for the covenants of Executive set forth in the
agreement referenced in Section 6 hereof, a severance payment (the “Severance Benefit”) in an amount equal to twenty-four (24) month’s base salary plus the average of cash bonuses awarded Executive over the two (2) years prior to
Executive’s termination of employment, payable in accordance with the Company’s regular payroll schedule. Executive shall also continue to be entitled to receive all Company medical and dental insurance, life insurance and disability
insurance benefits (including the disability insurance benefits and payments specified in Section 4(g) hereof) to which Executive was entitled as of the date of termination (the “Continuing Benefits”), subject to the terms of all
applicable benefit plans and to the extent such benefits can be provided to non-employee (or to the extent such benefits cannot be provided to non-employees, then the cash equivalent thereof), at the same average level and on the same terms and
conditions which applied immediately prior to the date of Executive’s termination, for the shorter of (i) twenty-four (24) months following the date of such termination, or (ii) until Executive obtains comparable coverage from another employer.
At any time during the severance period, the Company may elect to pay a lump sum amount to Executive which represents the reasonable value of the Severance Benefit and/or the Continuing Benefits reduced to their present value in lieu of continuing
payment of such benefits. Such present value calculation shall be made by an independent consultant with expertise in such matters reasonably acceptable to the Company and Executive. The Company shall also pay to Executive any payments due pursuant
to the last sentence of Section 4(g) hereof and pursuant to Section 5(f) hereof. 
  
 In the event of the termination of Executive’s employment by the Company pursuant to Section 5(a) hereof, the Severance Benefit and
the Continuing Benefits specified above in this Section 5(d) shall apply but, wherever “twenty-four (24) months” appears, it shall be amended to read as “eighteen (18) months”. 
  
 (e) Good Reason. For purposes of this Agreement,
“Good Reason” shall mean, the occurrence, without the consent of Executive, of any of the following events, unless, in the case of (i), (ii), (iii), (iv) and (v) below, such event is corrected within thirty (30) days after written
notification by Executive to the Company of the same: (i) the office from which Executive performs Executive’s principal duties is moved more than 50 miles from the current location of the Company’s offices in Durham, North Carolina; (ii)
the assignment to Executive of duties inconsistent in any material respect with Executive’s position (including status, offices, titles and reporting requirements), authority or responsibilities; (iii) the Company materially breaches its
obligations under this Agreement; (iv) a reduction in the Executive’s annual base salary as in effect on the date hereof or as the same was or may be increased thereafter from time to time; (v) the failure of the Company to obtain the agreement
from any successor to the Company to assume and agree to perform this Agreement; or (vi) a Change of Control (as defined below) occurs and Executive notifies the Company in writing within one (1) year of the consummation of such Change of Control
that Executive intends to terminate Executive’s employment as a result of the Change of Control, in which event such termination shall be effective not less than sixty (60) days after the date of such written notice. 
  
 (f) Tax Gross-Up for Parachute Payments. 

 
 (A) If at any time or from time to time it shall be
determined that any payment to Executive pursuant to this Agreement or any other payment or benefit hereunder or under any other plan or agreement or otherwise (“Potential 
  

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Parachute Payment”) would constitute an “excess parachute payment” within the meaning of Section 280G of the Internal Revenue Code of 1986, as
amended (the “Code”), and thus would be subject to the excise tax imposed by Section 4999 of the Code or any similar tax payable under any United States federal, state, local, foreign or other law (“Excise Tax”), then Executive
shall receive and the Company shall pay or cause to be paid a Tax Gross-Up Payment with respect to all Taxes (as defined below). The Tax Gross-Up Payment is intended to compensate Executive for all such excise taxes and federal, state, local,
foreign or other income, employment or excise taxes or other taxes (“Taxes”) payable by Executive with respect to the Tax Gross-Up Payment (subject to the maximum amount set forth in clause (ii) below) and shall be the lesser of: (i) an
amount such that after payment of Taxes on such amount there remains a balance sufficient to pay the taxes being reimbursed or (ii) $100,000. For purposes of determining the amount of the Tax Gross-Up Payment, Executive shall be deemed to pay
federal income tax and employment taxes at the highest marginal rate of federal income and employment taxation in the calendar year in which the Tax Gross-Up Payment is to be made and state and local income taxes at the highest marginal rate of
taxation in the state and locality of Executive’s residence (or, if greater, the state and locality in which Executive is required to file a nonresident income tax return with respect to the Potential Parachute Payment), net of the maximum
reduction in federal income taxes that may be obtained from the deduction of such state and local taxes. 
  
 (B) The determinations to be made under this Section 5(f) shall be made by the Company’s independent public accountants (the
“Accounting Firm”), which firm shall provide its determinations and any supporting calculations both to the Company and to Executive. Any such determination by the Accounting Firm shall be binding upon the Company and Executive. All fees
and expenses of the Accounting Firm in performing the determinations referred to in this Section 5(f) shall be borne solely by the Company, and the Company shall indemnify and hold harmless the Accounting Firm of and from any and all claims, damages
and expenses resulting therefrom, except for claims, damages or expenses resulting from the gross negligence or willful misconduct of the Accounting Firm. 
  
 (g) Disability. For purposes of this Agreement, Executive shall be considered permanently disabled when a qualified medical doctor
mutually acceptable to the Company and Executive or Executive’s personal representative shall have certified in writing that: (i) Executive is unable because of medically determinable physical or mental disability to perform substantially all
of Executive’s duties for more than one hundred eighty (180) calendar days measured from the last full day of work; or (ii) by reason of mental or physical disability, it is unlikely that Executive will be able, within one hundred eighty (180)
calendar days, to resume substantially all business duties and responsibilities in which Executive was previously engaged and otherwise discharge Executive’s duties under this Agreement. 
  

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 (h) Change of Control. For purposes of this Agreement, a “Change of
Control” shall mean: 
  
 (i) the acquisition
by an individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act of 1934, as amended) (a “Person”) of beneficial ownership of any capital stock of the Company if, after such acquisition, such
Person beneficially owns (within the meaning of Rule 13d-3 promulgated under the Exchange Act of 1934, as amended) 30% or more of either (x) the then-outstanding shares of common stock of the Company (the “Outstanding Corporation Common
Stock”) or (y) the combined voting power of the then-outstanding securities of the Company entitled to vote generally in the election of directors (the “Outstanding Corporation Voting Securities”); provided,
however, that for purposes of this subsection (i), the following acquisitions shall not constitute a Change in Control Event: (A) any acquisition directly from the Company (excluding an acquisition pursuant to the exercise, conversion or
exchange of any security exercisable for, convertible into or exchangeable for common stock or voting securities of the Company, unless the Person exercising, converting or exchanging such security acquired such security directly from the Company or
an underwriter or agent of the Company), (B) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company, or (C) any acquisition by any corporation pursuant to a
Business Combination (as defined below) which complies with clauses (x) and (y) of subsection (iii) of this definition; or 
  
 (ii) such time as the Continuing Directors (as defined below) do not constitute a majority of the Board of Directors, (or, if applicable,
the Board of Directors of a successor corporation to the Company), where the term “Continuing Director” means at any date a member of the Board of Directors (x) who was a member of the Board of Directors on the date hereof or (y)
who was nominated or elected subsequent to such date by at least a majority of the directors who were Continuing Directors at the time of such nomination or election or whose election to the Board of Directors was recommended or endorsed by at least
a majority of the directors who were Continuing Directors at the time of such nomination or election; provided, however, that there shall be excluded from this clause (y) any individual whose initial assumption of office occurred as a
result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents, by or on behalf of a person other than the Board of Directors; or 

 
 (iii) the consummation of a merger, consolidation,
reorganization, recapitalization or share exchange involving the Company or a sale or other disposition of all or substantially all of the assets of the Company (a “Business Combination”), unless, immediately following such Business
Combination, each of the following two conditions is satisfied: (x) all or substantially all of the individuals and entities who were the beneficial owners of the Outstanding Corporation Common Stock and Outstanding Corporation Voting Securities
immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of the then-outstanding shares of common stock and the combined voting power of the then-outstanding securities entitled to vote generally in the
election of directors, respectively, of the resulting or acquiring corporation in such Business Combination (which shall include, without limitation, a corporation which as a result of such transaction owns the Company or substantially all of the
Company’s assets either directly or through one or more subsidiaries) (such 
  

 6 

 
resulting or acquiring corporation is referred to herein as the “Acquiring Corporation”) in substantially the same proportions as their
ownership of the Outstanding Corporation Common Stock and Outstanding Corporation Voting Securities, respectively, immediately prior to such Business Combination and (y) no Person (excluding the Acquiring Corporation or any employee benefit plan (or
related trust) maintained or sponsored by the Company or by the Acquiring Corporation) beneficially owns, directly or indirectly, 50% or more of the then-outstanding shares of common stock of the Acquiring Corporation, or of the combined voting
power of the then-outstanding securities of such corporation entitled to vote generally in the election of directors (except to the extent that such ownership existed prior to the Business Combination); or 
  
 (iv) a complete liquidation or dissolution of the Company.

  
 6. NON-DISCLOSURE, INVENTIONS AND NON-COMPETITION. Executive
shall execute and be bound by the terms of the Company’s standard non-disclosure, inventions and non-competition agreement in the form attached hereto as Exhibit A and incorporated herein by reference. 
  
 7. NOTICES. Any notice required to be given shall be in writing personally
delivered by certified mail or registered mail or by facsimile (receipt confirmed) to the address last shown in the Company’s records. 
  
 8. SEVERABILITY. The provisions of this Agreement shall be deemed severable, and the invalidity or unenforceability of any provision (or part thereof) of
this Agreement shall in no way affect the validity or enforceability of any other provision (or remaining part thereof). 
  
 9. GOVERNING LAW. This Agreement shall be governed by and construed according to the laws of the State of North Carolina, without reference to the choice
of law provisions of such laws. 
  
 10. ENTIRE AGREEMENT. This
Agreement contains the entire agreement of the parties relating to the subject matter hereof, and the parties hereto have made no agreements, representations, or warranties relating to the subject matter of this Agreement which are not set forth
herein. In particular, the Agreement supercedes in its entirety the Executive Employment Agreement dated March 4, 1994 between Executive and the Company and the Severance Payment Agreement dated February 9, 2004 between Executive and the Company. No
modification of this Agreement shall be valid unless made in writing and signed by the parties hereto. 
  
 11. BENEFIT. This Agreement shall be binding upon and inure to the benefit of both parties and their respective successors and assigns, including any
corporation or other entity with which or into which the Company may be merged or which may succeed to its assets or business; provided, however, that the obligations of Executive are personal and shall not be assigned by Executive. 
  
 12. INJUNCTIVE RELIEF. Executive understands and agrees that the Company will
suffer irreparable harm in the event that Executive breaches any of Executive’s obligations under this Agreement and that monetary damages will be inadequate to compensate the Company for 
  

 7 

 
such breach. Accordingly, Executive agrees that, in the event of a breach or threatened breach by Executive of any of the provisions of this Agreement, the
Company, in addition to and not in limitation of any other rights, remedies, or damages available to the Company at law or in equity, shall be entitled to a permanent injunction in order to prevent or to restrain any such breach by Executive, or by
Executive’s partners, agents, representatives, servants, employers, employees and/or any and all persons directly or indirectly acting for or with Executive; provided such injunction shall not affect Executive’s ownership rights in the
Company or compensation earned or due Executive. 
  
 [Remainder of
this page left blank intentionally.] 
  

 8 

 IN WITNESS WHEREOF, the parties hereto have executed this Executive Employment Agreement and affixed
their seals as of the day and year first above written. 
  

			
	
	EMPLOYER:
	
	 ICAGEN, INC.

		
	By:	 	 /s/    Charles A.
Sanders        

		
	Name:	 	 Charles A. Sanders

		
	Title:	 	 Chairman of the Compensation Committee

  

			
	
	EMPLOYEE:
	
	 /s/    P. Kay
Wagoner        

	P. Kay Wagoner, Ph.D.

  

 9 

 EXHIBIT A 
  

COVENANT NOT TO COMPETE, CONFIDENTIALITY 
 AND 
 OWNERSHIP OF INVENTIONS AGREEMENT 
  
 THIS AGREEMENT is made to be effective as of the
             day of                     ,
200     (the “Effective Date”), by and between ICAgen, Inc., a Delaware corporation (the “Corporation”), and
                                     (the
“Employee”), an individual residing in              County,
                                        .

  
 W I T N E S S E T H: 
  
 WHEREAS, Corporation wishes to employ Employee and Employee wishes to be
employed by Corporation; and 
  
 WHEREAS, as a part of
Employee’s employment by the Corporation, Employee is expected to make new contributions and inventions of value to the Corporation and Employee will otherwise have access to confidential and proprietary information of the Corporation; and

  
 WHEREAS, the Corporation is engaged in all aspects of
pharmaceutical research and development and contemplates expanding the scope of its business to include manufacturing, marketing and sales of pharmaceutical products; and 
  
 WHEREAS, as a condition of extending an offer of employment to Employee and as a part of the original contract of employment
with Employee the Corporation requires that Employee enter a covenant not to compete and not to disclose certain information relating to the Corporation’s business and certain other covenants; 
  
 NOW, THEREFORE, in consideration of the foregoing, of the mutual promises
herein contained, and of other good and valuable consideration, including the employment of Employee by the Corporation, and the compensation received by Employee from the Corporation from time to time, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto, intending legally to be bound, hereby agree as follows: 
  
 1. CONFIDENTIALITY. 
  
 (a) Employee acknowledges that, in and as a result of his/her employment by the Corporation, he/she will be making use of, acquiring and/or adding to
confidential information of a special and unique nature and value, including, without limitation, the Corporation’s trade secrets, products, systems, programs, procedures, manuals, guides (as periodically updated or supplemented), confidential
reports and communications (including, without limitation, customer information, technical information on the performance and reliability of the Corporation’s products and the development or acquisition of future products or product
enhancements by the Corporation), formulas, and lists of customers and suppliers and potential customers and suppliers. Employee further acknowledges that any information and materials received by the Corporation or Employee from third parties in
confidence (or subject to 

 non-disclosure covenants) shall be deemed to be and shall be confidential information within the meaning of this Section
l(a). As a material inducement to the Corporation to employ Employee and to pay to Employee compensation for such services to be rendered to the Corporation by Employee (it being understood and agreed by the parties hereto that such compensation
shall also be paid and received in consideration hereof), Employee covenants and agrees that he/she shall not, except with the prior written consent of the Board of Directors of the Corporation, at any time during or following the termination of
his/her employment with the Corporation, directly or indirectly, divulge, use, reveal, report, publish, transfer or disclose, for any purpose whatsoever, any of such confidential information which has been obtained by or disclosed to his/her as a
result of his/her employment with the Corporation, including, without limitation, any Proprietary Information, as defined in Section 3 hereof. 
  
 (b) The aforementioned obligation of confidentiality and non-disclosure shall not apply when: 
  
 (i) Public Domain. The Proprietary Information disclosed to Employee
was in the public domain at the time of disclosure, or at any time after disclosure has become a part of the public domain by publication or otherwise through sources other than Employee, directly or indirectly, and without fault on the part of
Employee in failing to keep such information confidential; or 
  
 (ii) Requirement of Law or Order. Disclosure is required by law or court order, provided Employee gives the Corporation prior written notice of any such disclosure and takes all reasonable effort to maintain the confidentiality of
such Proprietary Information; or 
  
 (iii) Agreement.
Disclosure is made with the prior written agreement of the Board of Directors of the Corporation; or 
  
 (iv) Prior Information. The information is encompassed by the ideas and inventions listed on Schedule A hereto or was in Employee’s
possession prior to the Effective Date, as shown by written records in existence prior to the Effective Date; or 
  
 (v) Third Party Disclosure. The Proprietary Information is lawfully disclosed to Employee after the termination of his/her employment by a third
party who is under no obligation of confidentiality to the Corporation with respect to such information; or 
  
 (vi) Independent Development. Such information is independently developed by Employee subsequent to the termination of his/her employment with the
Corporation, as demonstrated by written records of Employee which are contemporaneously maintained. 
  
 2. COVENANT NOT TO COMPETE. It is recognized and understood by the parties hereto that Employee, through his/her association with the Corporation
as an employee, shall acquire a considerable amount of knowledge and goodwill with respect to the business of the Corporation, which knowledge and goodwill are extremely valuable to the Corporation and which would be extremely detrimental to the
Corporation if used by Employee to compete with 
  

 2 

 the Corporation. It is, therefore, understood and agreed by the parties hereto that, because of the nature of the
business of the Corporation, it is necessary to afford fair protection to the Corporation from such unfair competition by Employee. Consequently, as a material inducement to employ Employee, Employee covenants and agrees to the following;

  
 (a) that at any time while engaged as an employee of the
Corporation and for a period of two (2) years following his/her termination as an employee, he/she will not, directly or indirectly, with or through any family member or former director, officer or employee of the Corporation, or acting alone or as
a director, employee, agent, consultant, member of a partnership, firm, corporation or other entity or as a holder of or investor in 5% or more of any security of any class of any corporation or other business entity: 
  
 (i) perform or provide services for any customer of the Corporation which
are the same or substantially similar to the services performed or provided by Employee for such customers on behalf of the Corporation within twelve (12) months prior to the end of Employee’s employment with the Corporation; or 
  
 (ii) interfere with, or seek to interfere with, the relationship between the
Corporation, or any affiliate of the Corporation, and any of the following: (a) any of the employees of the Corporation or any affiliate of the Corporation; (b) any of the customers of the Corporation or any affiliate of the Corporation then
existing or existing at any time within three years prior to termination of Employee’s employment with the Corporation; or (c) any of the suppliers of the Corporation or any affiliate of the Corporation then existing or existing at any time
within three (3) years prior to termination of Employee’s employment with the Corporation; or 
  
 (iii) perform or provide services in the Noncompetition Area for any competing business which are the same or substantially similar to the services
performed or provided to the Corporation by Employee within twelve (12) months prior to the end of employment with the Corporation, including ion channel therapeutic projects and processes that constitute technologies in research and/or development
by the Corporation for its own use or which are proprietary to or trade secrets of the Corporation. With respect to the covenant contained in this paragraph 2 (a) (iii), it is acknowledged by Employee that the Corporation’s competitors in
research and development of ion channel therapeutics are located throughout the world and compete in a worldwide market, and that unfair competition can be prevented only by enforcing this specific covenant on a worldwide basis. This covenant is not
intended to prevent Employee from working for such a competing business by rendering services to a division or subsidiary not involved in ion channel therapeutics or technologies practiced, under development or reasonably contemplated for
development by the Corporation. 
  
 (b) For the purpose of this
Agreement, the “Noncompetition Area” shall be (i) the entire world; (ii) North America; (iii) the United States of America; (iv) each state in which the Corporation does business or did business at any time within three (3) years prior to
the termination of the undersigned’s engagement by The Corporation; and (v) the State of North Carolina. If a court of competent jurisdiction determines that the Noncompetition Area described above in subparagraph (i) is too restrictive, then
the parties agree that the 
  

 3 

 Noncompetition Area shall be the area specified in subparagraph (ii). If a court of competent jurisdiction determines
that the Noncompetition Area as set forth in subparagraphs (i) and (ii) above are too restrictive, then the parties agree the Noncompetition Area shall be reduced to the area specified in each of the following subsections and in the following order
until the court determines an acceptable geographic area: subparagraphs (iii), (iv) or (v). If the court determines that all of the geographic areas mentioned above are too restrictive, then the parties agree that the court may reduce or limit the
area to enable the intent of this Section to be enforced in the largest acceptable area. 
  
 (c) The parties hereto agree that, in the event that the length of time set forth in paragraph (a) above is deemed too restrictive in any court proceeding, the court may reduce such restrictions to those which it
deems reasonable under the circumstances. 
  
 3. DEFINITION OF
PROPRIETARY INFORMATION. For purposes of this Agreement, the term “Proprietary Information” shall mean all of the following materials and information (whether or not reduced to writing and whether or not patentable or protectable by
copyright) which Employee receives, receives access to, conceives of, discovers, or develops, in whole or in part, as a direct or indirect result of his/her employment with the Corporation, in the course of his/her employment with the Corporation
(in any capacity, whether employee, managerial, planning, technical, sales, research, development, manufacturing, engineering, or otherwise) or through the use of any of the Corporation’s facilities or resources: 
  
 (a) Discoveries, concepts and ideas, whether or not patentable or
protectable by copyright, including, without limitation, the nature and results of research and development activities, pharmaceutical information, technical information on product or product performance and reliability, processes, formulas,
techniques, “know-how”, source codes, object codes, measurements, weights, designs, drawings and specifications; 
  
 (b) Any manufactured products or components thereof and related goods or systems thereof and any and all future products developed or derived therefrom;

  
 (c) With respect to the items described in Section 3(b) above,
all hardware and software relating to their design or manufacture; all source and object codes to such hardware and software; all specifications, design concepts, documents and manuals; all security systems relating to the product or procedures,
including, without limitation, software security systems; 
  
 (d)
Trade secrets, production processes, marketing techniques, software programs, marketing plans, formulae, data, mailing lists, purchasing information, price lists, pricing policies, quoting procedures, financial information, customer and prospect
names and requirements, customer data, customer site information, pricing strategies and other materials or information relating to the manner in which the Corporation does business; 
  
 (e) Any other materials or information related to the business or activities of the Corporation which are not generally
known to others engaged in similar businesses or activities; 
  

 4 

 (f) Any other materials or information that has been created, discovered or developed, or otherwise
become known to the Corporation which has commercial value in the business in which the Corporation is engaged; and 
  
 (g) All ideas which are derived from or relate to Employee’s access to or knowledge of any of the above-enumerated materials and information.

  
 Failure to mark any of the Proprietary Information as
confidential shall not affect its status as Proprietary Information under the terms of this Agreement. 
  
 4. OWNERSHIP OF INVENTIONS. 
  
 (a) Employee hereby assigns to the Corporation all of Employee’s right, title and interest in any idea (whether or not patentable or protectable by
copyright), invention, pharmaceutical research, development or design, computer software program or other computer-related equipment or technology, discoveries, improvements, formulae, processes, techniques, programs, know how, data, or other
information of possible technical or commercial importance relating to the Corporation’s business or the Corporation’s anticipated business or based on, derived from or relating to any Proprietary Information, conceived or developed in
whole or in part, or in which Employee may have aided development, while employed by the Corporation, including, without limitation, any Proprietary Information (collectively, “Work Product”). If any one or more of the aforementioned are
deemed in any way to fall within the definition of “work made for hire” as such term is defined in 17 U.S.C. §101, such work shall be considered “work made for hire,” copyright of which shall be owned solely by, or assigned
or transferred completely and exclusively to the Corporation. Employee agrees to execute any instruments and to do all other things reasonably requested by the Corporation (both during and after Employee’s employment with the Corporation) in
order to more fully vest in the Corporation all ownership rights in those items thereby transferred by Employee to the Corporation. Employee further agrees to disclose immediately to the Corporation all Proprietary Information conceived of or
developed in whole or in part by him/her during the term of his/her employment with the Corporation and to assign to the Corporation any right, title or interest he/she may have in such Proprietary Information. 
  
 (b) The undersigned hereby designates and appoints the Corporation and its
duly authorized officers and agents as its agents and attorneys-in-fact to execute and file any certificates, applications or documents and to do all of their lawful acts necessary to protect the Corporation’s rights in the Work Product. The
undersigned expressly acknowledges that the foregoing power of attorney is coupled with an interest and is therefore irrevocable and shall survive his or her death or incompetency and the termination of his or her engagement by The Corporation.

  
 (c) Notwithstanding anything in this Agreement to the
contrary, the obligation of Employee to assign or offer to assign his/her rights in an invention to the Corporation shall not extend or apply to an invention that Employee developed entirely on his/her own time without using the Corporation’s
equipment, supplies, facility or trade secret information unless such 
  

 5 

 invention (i) relates to the Corporation’s business or actual or demonstrably anticipated research or development,
or (ii) results from any work performed by Employee for the Corporation. Employee shall bear the burden of proof in establishing that his/her invention qualifies for exclusion under this Section 4(c). With respect to Section 4(c) it is agreed and
acknowledged that during Employee’s employment, the Corporation may enter other lines of business, which are related or unrelated to its current lines of business, in which case this Agreement would be expanded to cover such new lines of
business. 
  
 (d) Employee hereby represents and warrants that
Employee has fully disclosed to the Corporation on Schedule A hereto any idea, invention, improvement, computer software program or other equipment or technology related to ion channel therapeutics (“Inventions or Improvements”) not
covered in Section 4(a) above which, prior to his/her employment with the Corporation, Employee conceived of or developed, wholly or in part, and in which Employee has any right, title or proprietary interest and which is directly related to the
Corporation’s business, but which has not been published or filed with the United States Patent or Copyright Offices or assigned or transferred to the Corporation, and which Employee desires to remove from the operation of this Agreement. If
there is no such list on Schedule A, Employee represents that Employee has made no such Inventions or Improvements at the time of signing this Agreement or Employee hereby assigns such Inventions or improvements to the Corporation.

  
 5. EMPLOYEE REPRESENTATIONS. 
  
 (a) Employee represents that his/her performance of all of the terms of this
Agreement and as an employee does not and will not breach any agreement to keep in confidence proprietary information acquired by Employee in confidence or in trust prior to Employee’s employment by the Corporation. Employee represents that
he/she has not entered into, and agrees not to enter into, any agreement either oral or written in conflict herewith. 
  
 (b) Employee understands as part of the consideration for the offer of employment extended to Employee by the Corporation and of Employee’s
employment or continued employment by the Corporation, that Employee has not brought and will not bring with Employee to the Corporation, or use in the performance of Employee’s responsibilities for the Corporation, any materials or documents
of a former employer which are not generally available to the public, unless Employee has obtained written authorization from the former employer or other owner for their possession and use and provided the Corporation with a copy thereof.
Accordingly, Employee has advised the Corporation that the only materials or documents of a former employer or other person or entity which are not generally available to the public that Employee has brought or will bring to the Corporation or has
used or will use in Employee’s employment are identified in Schedule B attached hereto. As to each such item, Employee represents that Employee has obtained prior to the Effective Date written authorization for their possession and use
in Employee’s employment with the Corporation. 
  
 (c)
Employee understands that during his/her employment for the Corporation he/she is not to breach any obligation of confidentiality that Employee has to a former employer or any other person or entity. 
  

 6 

 6. INDEMNIFICATION. Employee agrees to indemnity and hold harmless the Corporation, its directors,
officers, agents and employees against any liabilities and expenses, including amounts paid in settlement, incurred by any of them in connection with any claim by any of Employee’s prior employers that the termination of Employee’s
employment with such employer, Employee’s employment by the Corporation, or use of any skills and knowledge of the undersigned by the Corporation is a violation of contract or law. 
  
 7. RECORDS. All notes, data, tapes, reference materials, sketches, drawings, memoranda, models and records in any way
relating to any of the information referred to in Sections 1, 2, 3 and 4 hereof (including without limitation, any Proprietary Information) or to the Corporation’s business shall belong exclusively to the Corporation and Employee agrees to turn
over to the Corporation all such materials and all copies of such materials in his/her possession or then under his/her control at the request of the Corporation or, in the absence of such request, upon the termination of Employee’s employment
with the Corporation. 
  
 8. REASONABLENESS OF
RESTRICTIONS. 
  
 (a) Employee has carefully read and
considered the provisions of Paragraphs 1, 2, 3 and 4 hereof and, having done so, agrees that the restrictions set forth therein are fair and reasonable and are reasonably required for the protection of the interests of the Corporation, its
officers, directors, stockholders and employees. Employee further acknowledges that the nature of the Corporation’s products and services are such that its natural market is worldwide. Accordingly, Employee agrees that the length of time,
geographic area and any other restrictions contained in this Agreement are reasonable to protect the legitimate interests of the Corporation and do not unfairly restrict or penalize Employee. 
  
 (b) In the event that, notwithstanding the foregoing, any part of the
covenants set forth in Sections 1 through 7 hereof shall be held to be invalid and unenforceable, the court so deciding shall interpret such provisions in a manner so as to enforce them to the fullest extent of the law. 
  
 9. WAIVER. Failure to insist upon strict compliance with any of the
terms, covenants or conditions hereof shall not be deemed a waiver of such terms, covenants or conditions, nor shall any waiver or relinquishment of any right or power granted hereunder at any particular time be deemed a waiver or relinquishment of
such rights or power at any time or times. Each party agrees and acknowledges that nothing herein shall be construed to prohibit the other party from pursuing any remedies available to it for breach or threatened breach of this Agreement, including
the recovery of money damages. 
  
 10. REMEDY. Employee
understands and agrees that the Corporation will suffer irreparable harm in the event that Employee breaches any of his/her obligations under this Agreement and that monetary damages will be inadequate to compensate the Corporation for such breach.
Accordingly, Employee agrees that, in the event of a breach or threatened breach by Employee of any of the provisions of this Agreement, the Corporation, in addition to and not in limitation of any other rights, remedies or damages available to the
Corporation at law or in 
  

 7 

 equity, shall be entitled to a permanent injunction in order to prevent or to restrain any such breach by Employee, or by
Employee’s partners, agents, representatives, servants, employers, employees and/or any and all persons directly or indirectly acting for or with him. 
  
 11. RECOUPMENT OF PROFITS. Employee covenants and agrees that, if he/she shall violate any of his/her covenants or agreements under this Agreement,
the Corporation shall be entitled to an accounting and repayment of all profits, compensation, commissions, remunerations or benefits which Employee directly or indirectly has realized and/or may realize as a result of, growing out of or in
connection with any such violation; such remedy shall be in addition to and not in limitation of any other remedy, including without limitation, damages for lost profits of the Corporation or any affiliates of the Corporation, injunctive relief or
other rights or remedies to which the Corporation is or may be entitled at law, in equity or under this Agreement. 
  
 12. EMPLOYMENT AT WILL. Employee understands and agrees that this Agreement is not intended to nor does it create any employment contract for a
specified term, and Employee’s employment may be terminated by either the Employee or the Corporation at any time, with or without cause. The Corporation shall have no liability to Employee in the event of said termination, except for
compensation accrued and unpaid at the time of termination. 
  
 13. SEVERABILITY. The provisions of this Agreement shall be deemed severable, and the invalidity or unenforceability of any provision (or part thereof) of this Agreement shall in no way affect the validity or enforceability of any
other provision (or remaining part thereof). 
  
 14. GOVERNING
LAW. This Agreement shall be governed by and construed according to the laws of the State of North Carolina, without reference to the choice of law provisions of such laws. 
  
 15. NOTICES. Any notice required to be given hereunder shall be sufficient if in writing and sent by certified or
registered mail, return receipt requested, first-class postage prepaid, in the case of Employee, to his/her address as shown on the Corporation’s records, and in the case of the Corporation, to its principal office in the State of North
Carolina. 
  
 16. BENEFIT. This Agreement shall be binding
upon and shall inure to the benefit of each of the parties hereto, and to their respective heirs, representatives, successors and permitted assigns. This Agreement shall be binding upon the Corporation and upon any successor corporation. Employee
may not assign any of his/her rights or delegate any of his/her duties under this Agreement. 
  
 17. ENTIRE AGREEMENT. This Agreement contains the entire agreement and understandings by and between the Corporation and Employee with respect to the covenants herein described, and no representations,
promises, agreements or understandings with respect to the covenants herein described, written or oral, not herein contained shall be of any force or affect. No change or modification hereof shall be valid or binding unless the same is in writing
and signed by the parties hereto. No waiver of any provision of this Agreement shall be valid unless the same is in writing and signed by the party against whom such waiver is sought to be 
  

 8 

 enforced; moreover, no valid waiver of any other provision of this Agreement at any time shall be deemed a waiver of any
other provision of this Agreement at such time nor will it be deemed a valid waiver of such provision at any other time. 
  
 18. CAPTIONS. The captions in this Agreement are for convenience only and in no way define, bind or describe the scope or intent of this Agreement.

  
 19. SURVIVAL OF COVENANTS. The provisions set forth in
Sections 1 through 20 hereof shall survive the termination of this Agreement. 
  
 20. ARBITRATION AND EQUITABLE RELIEF. 
  
 (a) Arbitration. Except as provided in Section 20(b) below, the undersigned agrees that any dispute or controversy arising out of, relating to, or concerning any interpretation, construction, performance or breach of
this Agreement, shall be settled by arbitration to be held in accordance with the Employment Dispute Resolution Rules then in effect of the American Arbitration Association. The arbitrator may grant injunctions or other relief in such dispute or
controversy. The decision of the arbitrator shall be final, conclusive and binding on the parties to the arbitration. Judgment may be entered on the arbitrator’s decision in any court having jurisdiction. The Corporation and the undersigned
shall each pay their own respective attorneys’ fees and one-half of the costs and expenses of such arbitration (provided, however, that if the arbitrator finds that the arbitration action was brought or defended other than in good faith and
with a reasonable basis in fact, the non-prevailing party shall pay all such costs and expenses of arbitration and the other party’s attorneys’ fees and expenses). 
  
 This arbitration clause constitutes a waiver of the undersigned’s right to a jury trial and relates to the resolution
of all disputes relating to all aspects of the employer/employee relationship (except as provided in Section 20(b) below), including, but not limited to, the following claims. 
  
 (i) Any and all claims for wrongful discharge of employment; breach of contract, both express and implied; breach of the
covenant of good faith and fair dealing, both express and implied; negligent or intentional infliction of emotional distress; negligent or intentional misrepresentation; negligent or intentional interference with contract or prospective economic
advantage; and defamation; 
  
 (ii) Any and all claims for
violation of any federal, state or municipal statute, including, but not limited to, Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Age Discrimination in Employment Act of 1967, the Americans with Disabilities Act of
1990, the Fair Labor Standards Act, and Labor Code Section 201, et seq.; 
  
 (iii) Any and all claims arising out of any other laws and regulations relating to employment or employment discrimination. 
  
 (b) Equitable Remedies. The undersigned agrees that it would be impossible or inadequate to measure and calculate The Corporation’s damages from any
breach of the 
  

 9 

 Agreement. Accordingly, the undersigned agrees that if the undersigned breaches any of such sections, The Corporation
will have available, in addition to any other right or remedy available, the right to obtain an injunction from a court of competent jurisdiction restraining such breach or threatened breach and to obtain specific performance of any such provision
of this Agreement. The undersigned further agrees that no bond or other security shall be required in obtaining such equitable relief and the undersigned hereby consents to the issuance of such injunction and to the ordering of specific performance.

  
 (c) Consideration. The undersigned understands that each
party’s promise to resolve claims by arbitration in accordance with the provisions of this Agreement, rather than through the courts, is consideration for the other party’s like promise. The undersigned further understands that the
undersigned is offered employment in consideration of the undersigned’s promise to arbitrate claims. 
  
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement and affixed their seals the day and year first above written. 
  

					
	 EMPLOYEE:
	 	 ICAGEN, INC.

			
	  

	 	 By:
	 	  

	 Print Name:

	 	 Name:
	 	  

	 	 	 Title:
	 	  

  

 10 

 SCHEDULE A 
  

The following items are inventions, ideas, computer software programs or other equipment or technology not covered by Section 4 of this Agreement, which the
undersigned conceived of or developed, wholly or in part, prior to his or her engagement with The Corporation and shall be excluded from the scope of this Agreement. 
  
 If the undersigned has no such items to disclose, write “NONE” on this line: 
  
                                       
      . 
  
 Description of Items: (if applicable)

  

 11 

 SCHEDULE B 
  

Materials or Documents of Former Employer 
  

 12

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