Document:

Agreement between Duska Scientific Co. and Amir Pelleg, Ph.D.

 EXHIBIT 10.7 
  
 AGREEMENT 
  
 THIS AGREEMENT (“Agreement”) is made and entered into as of this 1st day of September, 2004, by and between Duska Therapeutics, Inc., a Nevada
corporation located at Two Bala Plaza, Suite 300, Bala Cynwyd, Pennsylvania 19004 (“Duska”), and Amir Pelleg, Ph.D. residing at 24 Dartmouth Lane, Haverford, Pennsylvania 19041 (“Pelleg”). 
  
 WHEREAS, Pelleg served on a part-time basis as Duska’s President and
Chief Scientific Officer (CSO) from the establishment of Duska in 1996 through February 2004, and as Duska’s President and Chief Operating Officer (COO) and CSO since February 2004 and has been working for Duska in these capacities during 2004
in a substantially full-time capacity; 
  
 WHEREAS, Duska is
desirous of continuing the employment of Pelleg as President, COO and CSO on a full-time basis; and 
  
 WHEREAS, Pelleg informed the Board of Directors of Duska (“Board”) in February 2004 that he would be ready, able and willing to serve as
Duska’s President, COO and CSO on a full-time basis upon Duska completing its financing and becoming a public company; and 
  
 WHEREAS, Duska and Pelleg desire to enter into a relationship whereby Duska will employ Pelleg, and Pelleg will serve in the position of President, COO
and CSO, on a full-time basis pursuant to the terms and provisions contained herein; 
  
 NOW, THEREFORE, in consideration of the mutual promises set forth herein, Duska and Pelleg hereby agree as follows: 
  
 1. Responsibilities. Pelleg agrees to manage the day-to-day operations of Duska in the capacity of President, COO and CSO. Pelleg will work
full-time for Duska and will devote 100% of his business and professional time, efforts and energies to performing his duties under this Agreement. Pelleg will be permitted to serve as an Adjunct Professor at Drexel University College of Medicine
(“Drexel”) provided that this affiliation of Pelleg with Drexel does not interfere with Pelleg’s performance under this Agreement. Pelleg will perform these services at Duska’s principal executive offices and will report directly
to the Board and work closely with the Board’s Chairman or Non-Executive Chairman. His duties will be those customarily performed by a President, COO and CSO of an emerging bio-pharmaceutical public company, including without limitation the
following duties: 
  

	 	•	act as a leader and spokesman of the company 

  

	 	•	execute Duska’s business plan and corporate strategies as adopted by the Board 

  

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	 	•	prepare and present to the Board operating budgets and manage all corporate and research operations of Duska on a day-to-day basis and assume compliance with all applicable laws and
regulations 

  

	 	•	identify and present to the Board new technologies and licensing opportunities 

  

	 	•	coordinate the preparation, filing, prosecution and maintenance of all patent applications and patents for the company 

  

	 	•	supervise Duska’s accounting and legal functions 

  
 Pelleg will receive an annual performance review in December of each year by the Chairman or Non-Executive Chairman of the Board. 
  
 Pelleg understands that his duties and responsibilities may be changed in the
event Duska hires a Chief Executive Officer, provided that such duties and responsibilities are consistent with those that would be customarily performed by a President, COO and CSO who reports to a Chief Executive Officer. 
  
 2. Term. The term of this Agreement (the “Term”) shall
commence as of September 1, 2004 and shall terminate on December 31, 2007 unless terminated sooner by Pelleg or Duska as set forth in Section 8 hereunder. The Term of this Agreement will be extended, subject to the conditions of and according to the
terms set forth in Section 4 below. 
  
 3. Compensation and
Benefits. 
  
 3.1 Salary. Pelleg has
been receiving a salary of $115,000 from Duska since January 1, 2004. In consideration of Pelleg’s fulfilling the above mentioned responsibilities and duties, Duska shall pay Pelleg during the Term $9,583 per month, payable in equal,
semi-monthly payments of $4,791 each, paid on the 15th and the last day of each month commencing on September 15, 2004 and ending on December 31, 2005, and $14,583 per month payable in equal, semi-monthly payments of $7,291 each, paid on the 15th
and the last day of each month commencing on January 15, 2006 and ending on December 31, 2007. Duska will withhold all income taxes, social security payments and other withholdings from each of Pelleg’s paychecks and be responsible for making
such payroll tax payments with respect to Pelleg as required by applicable laws. 
  
 3.2 Bonus. Pelleg be awarded a bonus of at least $20,000 on December 31, 2004 and annually thereafter subject to the Board’s
approval and based on Pelleg’s performance judged by Duska’s meeting of specific milestones set by the Board upon the signing of this Agreement (which will be set forth in an Appendix to this Agreement for the period ending December 31,
2004 that will be agreed to by the Board and Pelleg subsequent to the signing of this Agreement) and in January of each year thereafter while this Agreement is in effect. 
  
 3.3 Stock Options. Pelleg will receive options to purchase common stock of Duska at an exercise price
equal to the fair market value of such stock at the time of the stock option grant. The number of shares of common stock and the terms of their granting 

  

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will be in accordance with Duska’s Stock Option Plan and will be subject to Board approval. To the extent that this grants of options is approved by the
Board, Pelleg will have the option to either accept this grant or to receive in lieu thereof any grants of options made to Duska’s directors generally. 
  
 3.4 Benefits and Insurance. While this Agreement is in effect, Duska will maintain worker’s compensation insurance and life
insurance for the benefit of Pelleg. The foregoing life insurance shall consist of a policy with a $500,000 death benefit or such smaller death benefit as can be maintained at an annual premium cost to Duska of not more than $3,500. Pelleg will
receive any Duska employee benefits, including health insurance; provided, however, that Duska will only provide such benefits to Pelleg when Duska is providing such benefits generally to other full-time employees that are approved by the Board.
Duska and Pelleg agree that Duska will also obtain key man life insurance on Pelleg’s life for Duska’s benefit. Duska will obtain disability insurance, as to which the premium cost to Duska for such insurance shall not exceed $2,500 per
year, which will provide for a monthly benefit to be paid to Pelleg in the event that Duska terminates this Agreement due to Pelleg’s permanent disability. 
  
 3.5 Vacation. Pelleg will be entitled to three weeks of vacation during each twelve-month period
without loss of compensation. 
  
 4. Extension of this
Agreement. Pelleg and Duska agree that, subject to the satisfaction of all of the conditions set forth below in Section 3.2, and at the expiration of the Term of this Agreement, they contemplate extending the Term of this Agreement for Duska to
employ Pelleg, and Pelleg to serve Duska as an officer of the company on a full-time basis as set forth in this Section 4. 
  
 4.1 Contemplated Terms of Extended Employment Agreement. The extended Agreement is contemplated to contain, among others, the
following provisions: 
  
 4.1.1 Title and
Commitment. Pelleg will work on a full-time basis as an officer in a capacity to be determined by the Board. 
  
 4.1.2 Salary. The minimum Pelleg’s annual salary will be $175,000. The salary will be payable in 24 equal, semi-monthly
payments. The Chairman of the Board will make a recommendation to the Board as to the annual bonus, the payment of which will depend on the approval of the Board. 
  
 4.1.3 Stock Options. Pelleg will receive options to purchase common stock of Duska as set forth in
Section 3.3 above. 
  
 4.1.4 Benefits and
Insurance. Pelleg will continue to receive benefits as set forth in Section 3.4 above. 
  

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 4.2 Conditions Precedent to the Parties Extending this Agreement. The following
conditions must be met before the parties extend this Agreement at its expiration: 
  
 4.2.1 Pelleg’s Notification. Unless Duska is notified otherwise by Pelleg, Duska’s Board will consider the extension of
this Agreement as set force in Section 4.2.2. 
  
 4.2.2 Board’s Approval. The extension of this Agreement with Pelleg is dependent on the Board’s approval. The Board will consider its approval after reviewing Pelleg’s performance under this Agreement, but the decision
to extend this Agreement will be at the sole discretion of the Board. 
  
 5. Indemnity. Pelleg agrees to indemnify and hold Duska harmless from and against any and all claims, demands, causes of action, losses, damages, liabilities, costs, and expenses, including attorneys’ fees, arising from a breach
of any of the Pelleg’s representations and warranties herein or attributable to or resulting from Pelleg’s gross negligence or willful misconduct in fulfilling his duties as Duska’s President, COO and CSO. Pelleg warrants and
represents that he has full power and authority to enter into and perform this Agreement, and that his performance of this Agreement shall not violate any other agreement to which he is a party. Pelleg further represents and warrants that no medical
institution at which he has worked or other corporation for which he has performed research has any ownership rights in any intellectual property developed by Pelleg alone or with others that has been assigned to Duska nor, to Pelleg’s
knowledge, has any such institution or corporation asserted any such claims. Duska agrees to indemnify and hold Pelleg harmless from and against any and all claims, demands, causes of action, losses, damages, liability, costs and expenses, including
attorneys’ fees arising out of Pelleg’s fulfillment of his duties as Duska’s President, COO and CSO, other than those arising from Pelleg’s breach of any of its representations and warranties hereunder or Pelleg’s gross
negligence or willful misconduct. 
  
 6. Proprietary
Rights. All work performed and all materials developed or prepared for Duska by Pelleg in his capacity of Duska’s President, COO and CSO are the property of Duska and all title and interest therein shall vest in Duska and shall be deemed to
be works made for hire and made in the course of Pelleg’s fulfillment of his duties. To the extent that title to any such works may not, by operation of law, vest in Duska or such works may not be considered works made for hire, all rights,
title and interest therein are hereby irrevocably assigned to Duska. All such materials shall belong exclusively to Duska, and Duska shall have the right to obtain and to hold in its own name, copyrights, trademarks, patents, other registrations, or
such other protection as may be appropriate to the subject matter, and any extensions and renewals thereof. Pelleg agrees to give Duska and any person designated by Duska such reasonable assistance, at Duska’s expense, as is required to perfect
the rights defined in this Section. 
  
 7. Confidential
Information. 
  
 7.1 Confidentiality
Obligations. “Confidential Information” means, collectively: (a) business or technical information of Duska or any third party, including but not limited to information relating to Duska’s or any third party’s product plans,
designs, costs, product prices and names, finances, marketing plans, business opportunities, personnel, research, development or know-how; (b) any information designated by Duska or 

  

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any third party as “confidential” or “proprietary” or which, under the circumstances taken as a whole, would reasonably be deemed to be
confidential; and (c) the terms and conditions of this Agreement. Pelleg agrees that he will not disclose to any third party or use any Confidential Information disclosed to him by Duska except as expressly permitted in this Agreement; and that he
will take all reasonable measures to maintain the confidentiality of all Confidential Information of Duska in his possession or control, which will in no event be less than the measures he uses to maintain the confidentiality of his own information
of similar importance. 
  
 7.2 Exclusions.
“Confidential Information” will not include information that is: (i) already lawfully known by the receiving party prior to this Agreement without restriction, (ii) in the public domain due to no fault of the receiving party, (iii)
rightfully obtained by the receiving party without similar restriction from such party, (iv) independently developed by the receiving party without reference to the other party’s confidential information, or (v) provided by the disclosing party
to another party without similar restriction. 
  
 8.
Termination. This Agreement and Pelleg’s rights and obligations hereunder shall, under any of the following circumstances, terminate in advance of the time specified in Section 2 above, and Pelleg shall have the right to receive only
compensations that shall be accrued hereunder through the effective date of such termination and shall have no right to receive any further compensation hereunder from and after the time of such termination: 
  
 8.1 Death. This Agreement and Pelleg’s duties
hereunder shall terminate immediately upon the death of the Employee. 
  
 8.2 Termination by Duska. 
  
 8.2.1 In the event that Pelleg shall become either physically or mentally incapacitated so as to be incapable of performing his duties of President, COO and CSO required hereunder, and if such incapacity shall
continue for a period of 30 consecutive days, Duska may, at its option, terminate this Agreement and Pelleg’s duties hereunder by written notice to Pelleg at that time or at any time thereafter while such incapacity continues. Duska may
terminate this Agreement for Cause (as hereinafter defined) at any time upon written notice to Pelleg. “Cause” as used in this Agreement means that Pelleg, (i) after reasonable notice and warning, has failed to perform his duties to Duska
as determined by the Board or has been materially deficient in achieving the performance milestones established for Pelleg by the Board in consultation with Pelleg, (ii) has materially breached any of the terms or conditions of this Agreement and
has failed to correct such breach within 15 days following written notice from Duska of such breach, or (iii) has been charged with a felony or has committed or participated in any intentionally dishonest or fraudulent act that materially damages,
or may materially damage, the business or reputation of Duska. Upon any termination under this Section 8.2.1, Duska shall have no liability to Pelleg for any salary, bonus or other compensation or benefits under this Agreement with respect to any
period after the date of termination. 
  

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 8.2.2 Duska may terminate this Agreement without cause and without any liability to
Pelleg in the event Duska is unable to generate an aggregate of at least $3.5 million of net proceeds from any combination of equity or debt financing or government grants within twelve months from the date of this Agreement, in which event all of
Pelleg’s options to purchase Duska common stock shall vest. 
  
 8.3 Termination by Pelleg. Pelleg may voluntarily terminate this Agreement at any time upon 30 days prior written notice to Duska. Pelleg may terminate this Agreement at any time upon written notice to Duska if
Duska shall have materially breached any of the provisions of this Agreement. 
  
 9. General Terms. 
  
 9.1 Successors and Assigns. This Agreement shall inure to the benefits of Pelleg and Duska and Duska’s successors and assigns. This Agreement is personal to Pelleg. Pelleg may not sell, transfer,
sublicense, subcontract, hypothecate or assign its rights and duties under this Agreement without the prior written consent of Duska. Duska will assign its rights and obligations under this Agreement to any successor. However, Pelleg hereby agrees
to the termination of this Agreement without any liability to Pelleg upon completion of any transaction in which another entity or person takes control of Duska. 
  
 9.2 Notices. Any notices or communications under this Agreement shall be in writing and shall be
hand-delivered or sent by certified mail (return receipt requested), or telecopied, or overnight couriered to the party receiving such communication at the address specified below: 
  

			
	 If to Duska:
	  	 Duska Therapeutics, Inc.
 Two Bala Plaza, Suite
300
 Bala Cynwyd, PA 19004
 Attn: Chairman of the Board or
Non-Executive Chairman

		
	 If to Pelleg:
	  	 Amir Pelleg, Ph.D.
 24 Dartmouth Lane
 Haverford, PA 19041-1020

  
 or such other address or addressee as
either party may in the future specify to the other party. 
  
 9.3 Pennsylvania Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Pennsylvania, excluding its conflicts of laws provisions. 
  
 9.4 Dispute Resolution. Any dispute arising out of or
relating to this Agreement shall be decided by binding arbitration by the American Arbitration Association and shall be held in Philadelphia, Pennsylvania. The ruling of the arbitrator shall be final 

  

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and may be enforced by any party to such arbitration in any court of competent jurisdiction located in Philadelphia, Pennsylvania. 
  
 9.5 Amendment. No modification, amendment, supplement
to or waiver of the provisions of this Agreement shall be binding upon the parties hereto unless made in writing and duly signed by both parties. 
  
 9.6 Waiver. A failure of either party to exercise any right provided for herein shall not be deemed to be a waiver of any right
hereunder. 
  
 9.7 Entire Agreement. This
Agreement attached hereto set forth the entire understanding of the parties as to the subject matter therein and may not be modified except in writing executed by both parties. 
  
 9.8 Severability. In the event any one or more of the provisions of this Agreement is invalid or
otherwise unenforceable, the enforceability of remaining provisions shall be unimpaired. 
  
 9.9 Survival. The following Sections shall survive the termination of this Agreement: 5 (Indemnity), 6 (Proprietary Rights), and 7
(Confidentiality). 
  
 IN WITNESS WHEREOF, the parties hereto,
each acting under due and proper authority, have executed this Agreement as of the Effective. 
  

									
	 AMIR PELLEG, PH.D.
	 	 	 	 DUSKA THERAPEUTICS, INC.

				
	/s/ Amir Pelleg	 	 	 	 By:
	 	 /s/ Dr. Rudolph Nisi

					
	 	 	 	 	 	 	Name:	 	 Dr. Rudolph Nisi

					
	Date:	 	 September 1, 2004
	 	 	 	Title:	 	 Vice Chairman of the Board

					
	 	 	 	 	 	 	 Date:
	 	 October 22, 2004

  

									
				
	 	 	 	 	 By:
	 	 /s/ Sanford J. Hillsberg

					
	 	 	 	 	 	 	Name:	 	 Sanford J. Hillsberg

					
	 	 	 	 	 	 	Title:	 	 Secretary

					
	 	 	 	 	 	 	 Date:
	 	 October 22, 2004

  

 7Agreement between Duska Scientific Co. and Mark Reynolds

 EXHIBIT 10.8 
  
 Amir Pelleg, Ph.D. 
 President, COO 
  
 

 
  
 February 16, 2004 
  
 Mr. Mark Reynolds 
 9325 Delft Way 
 Alpharetta, Georgia 30022 
  
 Dear Mr. Reynolds: 
  
 This letter outlines the basis upon which Duska Scientific Co. (“Duska”) will employ you as its Chief Financial Officer (CFO). 
  
 1. Employment. You will be employed as CFO of Duska and its
parent company, Duska Therapeutics, Inc. following a planned merger between Duska and a subsidiary of a public company (Duska and its parent company being collectively referred to as the “Company”) for the term and upon the terms and
conditions set forth herein, and you accept such offer of employment. You shall perform such services for the Company as are customarily performed by a CFO of a public company, including the maintenance of the Company’s accounting books and
records and the preparation and filing of required reports with the SEC (e.g., Form 10-K, etc.) in a manner consistent with the standards of the accounting profession. You will report to the President of the Company as well as the Chairman of the
Audit Committee of the Company. 
  
 2. Term. The
term of your employment will begin immediately subsequent to the closing of the Company’s $2,500,000 minimum offering private placement (the “Financing”) and shall continue until your employment is terminated by either you or the
Company for any reason upon at least 30 days written notice. If the Financing is not completed prior to May 1, 2004, neither party will have any further commitment or obligation to the other under this Agreement. The Company will have no obligation
or liability to you if it does not complete the Financing for any reason. 
  
 3. Commitment/Part-time Status. For the compensation provided in Sections 4 and 5, you will set aside and commit a minimum (on average) of one business day per week toward attending to the affairs of the
Company as the CFO. If, after a reasonable period of time, you find that the time required to fulfill your duties exceeds one day per week (on average), then subsequent to your notification of the latter finding, the Company and you agree to review
the terms of your compensation structure and/or the nature of your duties and to make adjustments deemed necessary and appropriate. The Company recognizes and agrees that, due to your part-time status, you may accept other employment or consulting
assignments concurrent with your employment by the Company, which may include employment as an officer of publicly-traded companies and/or employment by other companies engaged in pharmaceutical research and 

  

 TWO BALA PLAZA, SUITE 300, BALA CYNWYD, PENNSYLVANIA 19004 
 TEL. 610-660-6690, FAX 610-660-0966, www.DuskaScientific.com 

 Mark Reynolds 
 February 16, 2004 
 Page 2 
  

 
development, provided that such companies are not engaged in any research or development activities in the field of adenosine 5’-triphosphate (ATP) or
purinergic receptors. 
  
 4. Salary. For the
services provided hereunder, you will be paid an annual cash base salary of $30,000. Payment shall be made no less frequently than once per month or upon such other terms as may be mutually agreed to by the Company and you. You will also be eligible
to receive cash bonuses in each calendar year during the term of your employment in such amounts, if any, as shall be determined from time to time by the Board of Directors of the Company in its sole discretion. The Company shall withhold and remit
appropriate federal and state taxes from all cash payments made to you in accordance with applicable federal and state regulations. 
  
 5. Stock Options. Effective upon the commencement of your employment with the Company, the Company shall grant to you options to purchase
60,000 shares of its Common Stock at an exercise price of $1.00 per share (after taking into account a planned three-for-one stock split associated with the above mentioned merger). Such options shall vest and become exercisable at the rate of 5,000
shares per month during the term of your employment and shall contain such additional terms and provisions as are generally included in stock option contracts issued to other Company officers. 
  
 6. Expenses. The Company will promptly reimburse you for all
reasonable business expenses incurred by you in connection with the business of the Company in accordance with regular Company policy regarding the nature and amount of expenses and the maintenance and submission of receipts and records necessary
for the Company to document them as proper business expenses. These expenses shall include, without limitation, out-of-pocket telephone, facsimile, office supplies and authorized travel expenses but shall not include rent, utilities or similar
overhead expenses incurred by you to maintain your office space. 
  
 7. Arbitration. In the event of any dispute under this Agreement, such dispute shall be resolved by binding arbitration with the American Arbitration Association in Los Angeles, California. 
  
 8. Confidentiality. While this Agreement is in effect and for a
period of five years thereafter, you shall hold and keep secret and confidential all “trade secrets” (within the meaning of applicable law) and other confidential or proprietary information of the Company and shall use such information
only in the course of performing your duties hereunder; provided, however, that with respect to trade secrets, you shall hold and keep secret and confidential such trade secrets for so long as they remain trade secrets under applicable law. You
shall maintain in trust all such trade secret or other confidential or proprietary information, as the Company’s property, including, but not limited to, all documents concerning the Company’s business, including your work papers,
telephone directories, customer information and notes, and any and all copies thereof in your possession or under your control. Upon the expiration or earlier termination of your employment with the Company, or upon request by the Company, you shall
deliver to the 

  

 TWO BALA PLAZA, SUITE 300, BALA CYNWYD, PENNSYLVANIA 19004 
 TEL. 610-660-6690, FAX 610-660-0966, www.DuskaScientific.com 

 Mark Reynolds 
 February 16, 2004 
 Page 3 
  

 
Company all such documents belonging to the Company, including any and all copies in your possession or under your control. 
  
 We are delighted that you have agreed to join us and look forward to working
with you to make Duska a great success. 
  

	
	 Very truly yours,

	
	 /s/ Dr. Amir Pelleg

	 Dr. Amir Pelleg

  
 Agreed to and Accepted this
16th day of February 2004 
  

	
	
	 /s/ Mark Reynolds

	 Mark Reynolds

  

 TWO BALA PLAZA, SUITE 300, BALA CYNWYD, PENNSYLVANIA 19004 
 TEL. 610-660-6690, FAX 610-660-0966, www.DuskaScientific.com

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