Document:

Exhibit 10.1 

Execution Version 

DEED OF GUARANTEE 

by 

CHINA HOUSING AND LAND
DEVELOPMENT, INC. 

Dated November 5, 2008 

Xi ‘an Baqiao
Project 

TABLE OF CONTENTS 

	Clause			Page
			
	1.	 	 	INTERPRETATION	 	 	 	1	 
	 		
	2.	 	 	GUARANTEE	 	 	 	3	 
	 		
	3.	 	 	REINSTATEMENT	 	 	 	5	 
	 		
	4.	 	 	NATURE OF GUARANTEE AND WAIVER OF DEFENCES	 	 	 	5	 
	 		
	5.	 	 	REPRESENTATIONS AND WARRANTIES	 	 	 	8	 
	 		
	6.	 	 	UNDERTAKINGS	 	 	 	10	 
	 		
	7.	 	 	PERSONAL LIABILITY	 	 	 	12	 
	 		
	8.	 	 	POWER OF ATTORNEY	 	 	 	12	 
	 		
	9.	 	 	CLAIMS BY THE GUARANTOR	 	 	 	13	 
	 		
	10.	 	 	TAXES AND OTHER DEDUCTIONS	 	 	 	13	 
	 		
	11.	 	 	FEES, COSTS, EXPENSES AND INTEREST	 	 	 	13	 
	 		
	12.	 	 	INDEMNITY	 	 	 	14	 
	 		
	13.	 	 	MISCELLANEOUS	 	 	 	16	 
	 		
	14.	 	 	NOTICES	 	 	 	16	 
	 		
	15.	 	 	SEVERABILITY	 	 	 	16	 
	 		
	16.	 	 	AMENDMENTS AND WAIVERS	 	 	 	17	 
	 		
	17.	 	 	SET-OFF	 	 	 	17	 
	 		
	18.	 	 	CHANGES TO THE PARTIES	 	 	 	17	 
	 		
	19.	 	 	GOVERNING LAW	 	 	 	17	 
	 		
	20.	 	 	ENFORCEMENT	 	 	 	17	 
	 		
			

THIS DEED OF GUARANTEE (the “DEED”)
 is dated November 5, 2008 and is made BY: 

	(1)	CHINA
HOUSING AND LAND DEVELOPMENT, INC.,  a corporation established under
               the laws of the State of Nevada, the United States of America, with its
               registered address at 1000 E William ST., Suite 204 Carson City, NV
89701-3108,                the United States of America (the “Guarantor”). 

IN FAVOUR OF: 

	(2)	SUCCESS
HILL INVESTMENTS LIMITED,  a company incorporated under the laws                of the
Hong Kong Special Administrative Region (“Hong Kong”),  with its
registered address at Flat/RM 1508, 15/F, Hing Yip Commercial                Centre,
272-284 Des Voeux Road Central, Hong Kong (the “HK SPV”);  and  

	(3)	Prax
Capital Real Estate Holding Limited,  a company established under the
               laws of Hong Kong, with its registered address at Flat/RM 1508, 15/F, Hing
Yip                Commercial Centre, 272-284 Des Voeux Road Central, Hong Kong (“Prax”,
 together with the HK SPV, the “Beneficiaries”,  and each a “Beneficiary”). 

NOW THIS DEED WITNESSES  as
follows:  

	1.  	INTERPRETATION  

	1.1  	Definitions  

	 	
In
this Deed, except where the context otherwise requires:  

        “Affiliate”
 shall have the meaning attributed to such term in the Shareholders Agreement. 

	 	
“Aggregate
Development Cost” means any and all costs and expenses incurred to cause the
Project to be Completed including all Construction Costs and any other costs and expenses
incurred or otherwise payable by or on behalf of the Project Company in connection with
(i) the due diligence for, and the bidding and acquisition of, the Target Land, (ii)the
design and engineering of the Project, (iii) any and all permits, licenses,
authorizations and other governmental approvals obtained by or on behalf of the Company
in connection with the acquisition of the Target Land and the development and
construction of the Target Land, (iv) the construction of the project on the Target Land
and any related on-site and off-site improvements and infrastructure (including all
amounts payable to the general contractor, subcontractors, suppliers and other persons
providing work, services, material of equipment for the Project), and (v) interest on any
of the amounts described in this definition payable under the Onshore Financing or other
financing obtained by the Project Company for the development and construction of the
Project.  

	 	
“CHL
SPV” means Assets Management Limited, a company established or to be established
under the laws of the British Virgin Islands.  

1 

	 	
“Class
A Shareholders” shall have the meaning ascribed to it in the Shareholders
Agreement.  

	 	
“Class
B Shareholders” shall have the meaning ascribed to it in the Shareholders
Agreement.  

	 	
“Construction
Cost” means the aggregate of (i) any amount incurred or paid to any contractor or
sub-contractor in respect of site preparation, foundation, substructure, finishings,
infrastructure and other miscellaneous works of the Project, or to any supplier for or in
respect of work done, or materials or goods supplied, in connection with the construction
of the Project and in connection with making the Project fit for occupation and (ii) any
other amounts (including professional fees and other expenses in connection with the
Project) which, in the opinion of the Beneficiaries, need to be incurred by the Project
Company in order to finally Complete the construction of the Project and cause the
Project to receive a duly issued and approved Project Completion Filing Form from the
applicable PRC government authorities.  

	 	
“Discharge
Event” means the completion of the Class B Shareholders’ purchase of Class A
Shares pursuant to Section 6.1 of the Shareholders Agreement (as evidenced by the Class A
Shareholders’ receipt in full of the Exit Price).  

	 	
“Exit
Price” shall have the meaning ascribed to it in the Shareholders Agreement.  

	 	
“Final
Plans and Specifications” means those final plans and specifications for the
construction and development of the Project, in the form approved by applicable PRC
governmental authorities and approved in writing by Prax.  

	 	
“Framework
Agreement” means that certain Framework Agreement entered into by and among the
Guarantor, New Land and Prax on the even date hereof.  

	 	
“Guaranteed
Obligations” shall have the meaning ascribed to it in Clause 2.1 of this Deed.  

	 	
“New
Land Share Purchase” shall have the meaning ascribed to it in the Shareholders
Agreement.  

	 	
“Obligors” means,
collectively, New Land (and any third party succeeding to New Land’s interest in the
Project Company) and the CHL SPV (and any Class B Shareholders succeeding to CHL SPV’s
interest in the HK SPV); and “Obligor” shall mean one of the Obligors.  

	 	
“Project” means
the real estate development project, predominantly including residential buildings but
also including a commercial area component, that the Project Company will own, develop,
construct, manage and operate on the Target Land.  

	 	
“Put
Option” shall have the meaning ascribed to it in the Shareholders Agreement.  

2 

	1.2 	Construction  

	 	(a)  	Initially
capitalised terms in this Deed have, unless expressly defined
                    otherwise in this Deed, the same meaning attributed to such terms in
the                     Framework Agreement.  

	 	(b)  	For
the purposes of this Deed, the construction works of the Project shall be
                    deemed to have been “Completed” upon, and the terms
“Complete” and “Completion” shall mean, (i)
                    the issuance of a Project Completion Filing Form (Chinese
 characters) with respect to all
of the                     units for the Project duly completed and approved by all
relevant government                     authorities in PRC, (ii)the production of
satisfactory evidence to Prax                     confirming that the Construction Costs
have been fully settled, and (iii) the                     issuance of written
confirmation from Prax that the Project’s improvements                     conform
to the Final Plans and Specifications.  

	 	(c)  	A
“person” shall be construed as a reference to any person, firm,
                    company, corporation, government, state or agency of a state or any
association                     or partnership (whether or not having separate legal
personality), or two (2) or                     more of the foregoing.  

	 	(d)  	The
terms “include” and “including” shall be
                    construed as if followed by the phrase “without limitation”.  

	2.  	GUARANTEE  

	2.1  	Guaranteed
Obligations  

	 	
The
Guarantor hereby irrevocably and unconditionally covenants and undertakes to cause the
parties named in this Clause 2.1 to fully and timely perform the following obligations
(collectively, the “Guaranteed Obligations”): 

	 	(a)  	the
Project Company shall develop, construct and sell (including effecting
                    pre-sales), or cause to be developed, constructed and sold, the
Project and its                     residential units in accordance with the relevant
milestones and time periods                     set forth in the Approved Budget and
Business Plan;  

	 	(b)  	New
Land shall fund or otherwise provide the Funded Pre-Construction Costs to
                    the Project Company in accordance with the Framework Agreement, the
Approved                     Budget and Business Plan and the Joint Venture Agreement;  

	 	(c)  	the
Project Company shall cause the Project to be Completed for an Aggregate
                    Development Cost that does not exceed the equivalent amount or
amounts specified                     in the Approved Budget and Business Plan (as
adjusted or otherwise amended by                     the respective board of directors of
the HK SPV and the Project Company pursuant                     to the Shareholders’ Agreement
and/or the Joint Venture Agreement, as                     applicable, the “Budgeted
Development Costs”); 

3 

	 	(d)  	if
the Class A Shareholders exercise the Put Option under the Shareholders
                    Agreement, CHL SPV (or any Class B Shareholders succeeding to CHL SPV’s
                    interest in the HK SPV) shall timely purchase, or cause another
affiliate of the                     Guarantor to purchase, from the Class A Shareholders
all of the Class A Shares                     for the Exit Price, pay the Exit Price and
timely perform its other covenants                     and obligations under the
Shareholders Agreement in connection with such                     purchase;  

	 	(e)  	the
Project Company shall, and the CHL SPV (or any Class B Shareholders
                    succeeding to the CHL SPV’s interest in the HK SPV) shall cause
the Project                     Company to, distribute the profits of the Project Company
to the HK SPV strictly                     in accordance with the provisions of the Joint
Venture Agreement and the Project                     Company Articles of Association;  

	 	(f)  	The
HK SPV shall, and the CHL SPV (or any Class B Shareholders succeeding to the
                    CHL SPV’s interest in the HK SPV) shall cause the HK SPV to,
distribute the                     profits of the HK SPV to the Class A Shareholders
strictly in accordance with                     the provisions of the Shareholders
Agreement; and  

	 	(g)  	the
CHL SPV (or any Class B Shareholders succeeding to the CHL SPV’s
                    interest in the HK SPV) shall cause the officers and directors of the
HK SPV and                     the Project Company appointed by, or appointed in the
direction of, the CHL SPV                     (or any Class B Shareholders succeeding to
the CHL SPV’s interest in the HK                     SPV) to take such actions and
execution such documents and instruments to effect                     the distributions
referred to in sub-sections (e) and (f) above.  

	2.2  	Remedies  

	 	(a)  	The
Guarantor acknowledges that if the Guaranteed Obligations are not fully
                    performed as provided in Clause 2.1 by the Obligors, then the
Guarantor                     personally shall perform the Guaranteed Obligations, or
cause the Guaranteed                     Obligations to be performed. If the Guarantor
fails to timely and fully perform                     its obligations under this Deed
within the time period designated by any                     Beneficiary in its sole
discretion after such Beneficiary delivers a written                     notice to the
Guarantor, then the following shall apply:  

	 	(i)  	Any
Beneficiary shall be at liberty to apply to an arbitration panel in           accordance
with Clause 20.1 below for a mandatory order declaring the Guarantor           to be
liable as aforesaid and ordering it to specifically perform its           contractual
obligations hereunder.  

	 	(ii)  	If
the Aggregate Development Costs exceed the Budgeted Development Costs, such
          excess shall be paid by the Guarantor or its subsidiaries to the HK SPV or the
          Project Company (at the direction of Prax in its sole discretion) upon demand
by           any Beneficiary.  

	 	(iii)  	If
by reason of the Guarantor’s failure, neglect or refusal to perform, or
          cause to be performed, the Guaranteed Obligations and its other obligations
          under this Deed, any Beneficiary elects to incur expenses  

4 

	 	
whether
by making payment to the Project Company, the HK SPV or to any other parties to ensure
Completion of the Project following a breach by the Guarantor of its obligations
hereunder, such expenses shall forthwith be recoverable from the Guarantor as damages. 

	 	(iv)  	The
Beneficiaries shall be at liberty to claim damages from the Guarantor either           by
way of primary remedy (without seeking a mandatory order as aforesaid) or (in
          case any Beneficiary does seek a mandatory order as aforesaid but the courts
          shall decline to make such order) as an alternative to a mandatory order.  

	3.  	REINSTATEMENT  

	3.1  	Reinstatement  

	 	
If
any payment by any Obligor is avoided or reduced (the “Reduced Amount”)  for
any reason including, without limitation, as a result of insolvency, bankruptcy, breach
of fiduciary or statutory duties or any similar event with respect to any person:  

	 	(a)  	the
liability of the Guarantor shall continue and/or be reinstated, as
                    applicable, as if the payment, discharge, avoidance or reduction of
the Reduced                     Amount had not occurred; and  

	 	(b)  	the
Beneficiaries shall be entitled to recover the value or amount of that
                    payment from the applicable Obligor and the Guarantor, if the payment
is a                     payment the Guarantor is required to tender hereunder, as if the
payment,                     discharge, avoidance or reduction of the Reduced Amount had
not occurred.  

	4.  	NATURE
OF GUARANTEE AND WAIVER OF DEFENCES  

	4.1 	Continuing
Guarantee  

	 	
This
Deed shall be, and will at all time hereafter, be a continuing guarantee. It shall not be
revoked by the Guarantor and, subject to the provisions of Clauses 3.2 and 3.3 above,
shall remain effective until a Discharge Event has occurred, as reasonably determined by
the Beneficiaries. The fact that at any time or from time to time the obligations under
this Deed may be increased or reduced shall not release or discharge the obligations of
the Guarantor hereunder to the Beneficiaries.  

	4.2 	Additional
Security  

	 	
The
obligations of the Guarantor hereunder are in addition to, and are independent of and
shall not be in any way prejudiced by, any other indemnity, guarantee or security now or
subsequently held by any Beneficiaries in respect of the transactions contemplated under
the Framework Agreement and the other Transaction Documents.  

5 

	4.3 	Protective
Provisions  

	 	
This
Deed is an independent, irrevocable, absolute and continuing guarantee against
non-payment and non-performance and not a guaranty of collection. Neither the liability
of the Guarantor nor the validity or enforce ability of this Deed shall be prejudiced,
affected or discharged by, and the Guarantor hereby irrevocably waives any defences it
may now or hereafter have in any way relating to, any of the following:  

	 	(a)  	the
granting of any time, indulgence, concession, compromise, waiver or consent
                    whatsoever at any time given to any Obligor or any other person;  

	 	(b)  	any
amendment, modification or variation of any Transaction Document or any
                    other agreement;  

	 	(c)  	any
change in the time, manner or place of payment of, or in any other term of,
                    the Transaction Document or any other amendment or waiver of or
consent to any                     departure from any Transaction Document (other than
this Deed);  

	 	(d)  	the
illegality, invalidity or unenforceability of any obligation or liability of
                    any Obligor or any other person;  

	 	(e)  	the
invalidity or irregularity in the execution of any Transaction Document or
                    any other agreement;  

	 	(f)  	any
lack of or deficiency in the powers of any Obligor or any other person to
                    enter into or perform any of its obligations or liabilities under any
                    Transaction Document or any other agreement or any irregularity in
the exercise                     thereof or any lack of or deficiency in authority by any
person purporting to                     act on behalf of any Obligor or any other
person;  

	 	(g)  	the
insolvency, liquidation, incapacity, disability, limitation, change of
                    constitution or status, death, or bankruptcy of any Obligor or any
other person;  

	 	(h)  	any
other Transaction Document, indemnity, guarantee or other security or right
                    or remedy being or becoming held by or available to the
Beneficiaries, or by any                     of the same being or becoming wholly or
partly void, voidable, unenforceable or                     impaired, or by the
Beneficiaries at any time exercising or failing to exercise,
                    releasing, refraining from enforcing, varying or in any other way
dealing with                     any of the same, or any power, right, remedy or security
the Beneficiaries may                     now or hereafter have from or against any
Obligor or any other person;  

	 	(i)  	any
release, waiver, exercise, omission to exercise or renewal of any rights
                    against any Obligor or any other person or any compromise,
arrangement or                     settlement with any of the same;  

	 	(j)  	any
change, restructuring or termination of the company or corporate structure
                    or existence of any Obligor or any other person;  

6 

	 	(k)  	any
defence based on applicable statutes of limitations, or any existence or
                    reliance on any representation by the Beneficiaries, or any other
circumstance                     that might otherwise constitute a defence available to,
or a discharge of any                     Obligor or any other person;  

	 	(1)  	any
failure of the Beneficiaries to disclose to the Guarantor or any other
                    person any information relating to the financial condition,
operations,                     properties or prospects of any Obligor or any person now
or in the future known                     to the Beneficiaries (the Guarantor waiving
any duty on the part of any                     Beneficiary to disclose such
information); and/or  

	 	(m)  	any
act, omission, matter, circumstance or event which would or may, but for the
                    provisions of this Clause 4.3, operate to impair, prejudice,
discharge or                     otherwise affect this Deed or the obligations or
liabilities of the Guarantor                     hereunder.  

	4.4 	Additional
Waivers of Defences  

	 	(a) 	       The
Guarantor further waives for the benefit of the Beneficiaries:  

	 	(i)  	any
right to require the Beneficiaries to proceed against any Obligor or to           pursue
any other remedy in its powers;  

	 	(ii)  	any
defence based on any statute or rule of law which provides that the           obligation
of a surety must be neither larger in amount nor in any other aspects           more
burdensome than that of a principal;  

	 	(iii)  	demands,
presentments, protests and notices of any kind (except for notices           expressly
required to be given under this Deed), including, without limiting the
          generality of the foregoing, notice of the existence, creation or incurring of
          new or additional indebtedness or of any action or non-action on the part of
any           Obligor under the Transaction Documents or any other instrument, or any
other           person whosoever, in connection with any obligation or evidence of
indebtedness           held by the Beneficiaries under the Transaction Documents;  

	 	(iv)  	any
right of subrogation and any right to enforce any remedy which any           Beneficiary
now has or may hereafter have against any Obligor and any benefit           of, and any
right to participate in, any security now or hereafter held by the
          Beneficiaries; provided, however, the Guarantor’s right of subrogation
          against the Obligors shall be re-instated after the Guaranteed Obligations have
          been fully performed and the Guarantor’s obligations under this Deed have
          been fully performed; and  

	 	(v)  	to
the fullest extent permitted by applicable Laws, any defences or benefits           that
may be derived from or afforded by any principles or provisions of law,
          statutory or otherwise, which limit the liability of or exonerate indemnifiers,
          guarantors or sureties, or which may conflict with the terms of this Deed.  

7 

	 	(b)  	The
Guarantor, by execution hereof, represents to the Beneficiaries that the
                    relationship between the Guarantor and each Obligor is such that the
Guarantor                     has access to all relevant facts and information concerning
the Project and each                     Obligor, and that the Beneficiaries can rely
upon the Guarantor having such                     access. The Guarantor hereby waives
and agrees not to assert any duty on the                     part of the Beneficiaries to
disclose to the Guarantor any facts that it may now                     or hereafter know
about the Project or each Obligor, regardless of whether the
                    Beneficiaries have reason to believe that any such facts materially
increase the                     risk beyond that which the Guarantor intends to assume,
or have reason to                     believe that such facts are unknown to the
Guarantor, or have a reasonable                     opportunity to communicate such facts
to the Guarantor. The Guarantor is fully                     responsible for being and
keeping informed of the financial condition of the                     Obligors and all
circumstances bearing on the risk of delay of construction and
                    development of the Project. The Guarantor further acknowledges that
it will                     receive substantial direct and indirect benefits from the
transactions                     contemplated by the Transaction Documents and that the
waivers set forth in this                     clause and in any other provision of this
Deed are knowingly made in                     contemplation of such benefits.  

	 	(c)  	This
Deed (or any provision hereof) may be enforced, and any demand hereunder
                    may be made, without the Beneficiaries first having recourse to any
other                     security or rights, or taking any other steps or proceedings
against any                     Obligor. Further, this Deed may be enforced for any
balance due after resorting                     to any one or more other means of
obtaining payment or discharge of the monies,                     obligations and
liabilities secured hereby. In connection therewith and in
                    furtherance thereof, the Guarantor hereby expressly waives any right
it may have                     to first require the Beneficiaries to proceed against or
enforce any other                     rights or claim payment from any person before
claiming from the Guarantor under                     this Deed.  

	5.  	REPRESENTATIONS
AND WARRANTIES 

	 	
The
Guarantor hereby makes the representations and warranties set out in this Clause to each
Beneficiary as of the date of this Deed.  

	5.1 	Status  

	 	
The
Guarantor is a corporation, duly incorporated and validly existing under the laws of the
State of Nevada, the United States of America and has the power to own its assets and
carry on its business as it is being conducted. CHL SPV is a wholly-owned subsidiary of
CHL.  

	5.2 	Powers
and Authority  

	 	
The
Guarantor has the power to enter into, perform and deliver, and has taken all necessary
action to authorise the entry into, and the performance and delivery of, this Deed and
the transactions contemplated by this Deed.  

8 

	5.3 	Legal
Validity  

	 	(a)  	This
Deed is legally binding, valid and enforceable against the Guarantor in
                    accordance with its terms.  

	 	(b)  	This
Deed is in the proper form for its enforcement in the jurisdiction of the
                    Guarantor’s incorporation and the jurisdictions where the
Guarantor has                     material assets.  

	5.4 	Non-conflict  

	 	
The
Guarantor’s execution and delivery of this Deed, and its performance of the
transactions and obligations specified in this Deed, do not and will not conflict with:  

	 	(a) 	         any
of the Laws applicable to the Guarantor;  

	 	(b)  	the
Guarantor’s constitutional documents; or  

	 	(c)  	any
document which is binding upon the Guarantor or any of its assets.  

	5.5 	No
Default  

	 	(a)  	No
default is outstanding or will result from the Guarantor’s entry into
                    of, or the Guarantor’s performance of any transaction
contemplated by, this                     Deed.  

	 	(b)  	No
other event or circumstance is outstanding which constitutes a default, or
                    with the giving of written notice and for the passage of time would
constitute a                     default, of the Guarantor under any document which is
binding on the Guarantor                     or any of its assets.  

	5.6  	Authorisations  

	 	
All
authorisations required by the Guarantor in connection with the entry into, validity and
enforce ability of this Deed, and the Guarantor’s performance of the transactions
contemplated by, this Deed have been obtained or effected (as appropriate) and are in
full force and effect.  

	5.7 	Litigation  

	 	
No
litigation, arbitration or administrative proceedings are current or, to the Guarantor’s
knowledge, pending or threatened, which either question the legality, validity or
propriety of this Deed, or could materially affect the Guarantor’s ability to carry
out its obligations hereunder.  

	5.8  	Ranking  

	 	
The
Guarantor’s payment obligations under this Deed rank at least part passu with
the claims of all its other present and future unsecured and unsubordinated creditors,
except for obligations mandatorily preferred by Laws applying to companies generally.  

9 

	5.9 	Immunity  

	 	(a)  	The
Guarantor’s execution and delivery of this Deed constitutes, and the
                    Guarantor’s performance of its obligations under this Deed will
constitute,                     private and commercial acts performed for private and
commercial purposes.  

	 	(b)  	The
Guarantor will not be entitled to claim immunity from suit, execution,
                    attachment or other legal process in any proceedings taken in its
jurisdiction                     of incorporation in relation to this Deed.  

	5.10  	Validity
and Admissibility in Evidence  

	 	
All
authorisations required or desirable:  

	 	(a)  	to
enable the Guarantor lawfully to enter into and comply with its obligations
               in this Deed;  

	 	(b)  	to
make this Deed admissible in evidence in the Guarantor’s jurisdiction of
               incorporation and the jurisdictions where the Guarantor has material
assets; and  

	 	(c)  	for
the Guarantor to carry on its business as currently carried on, have been
               obtained or effected by the Guarantor and are in full force and effect.  

	5.11  	Guarantor’s
Financial Conditions  

	 	
As
of the date hereof, and after giving effect to this Deed and the contingent obligation
evidenced hereby, the Guarantor is, and will be, solvent, and has and will have assets
which, fairly valued, exceed its obligations, liabilities (including contingent
liabilities) and debts, and has and will have property and assets sufficient to satisfy
and repay its obligations and liabilities  

	5.12  	Survival  

	 	
The
representations and warranties of the Guarantor made in this Deed are continuing
representations and warranties and shall survive the execution of this Deed.  

	5.13  	Acknowledgement
of Reliance  

	 	
The
Guarantor acknowledges that the Beneficiaries and their Affiliates are entering into this
Deed and the other Transaction Documents to which they are parties in reliance upon the
representations and warranties contained in this Clause 5.  

	6.  	UNDERTAKINGS  

	6.1  	Affirmative
Undertakings  

	 	
The
Guarantor undertakes and agrees with each Beneficiary throughout the continuance of this
Deed that it shall undertake and perform each of the following:  

10 

	 	(a) 	         the
Guarantor shall supply to Prax:  

	 	(A)  	its
audited financial statements for each of its financial years within one           hundred
twenty (120) days after the end of the relevant financial year; and  

	 	(B)  	its
unaudited financial statements for the first half-year of each of its           financial
years within sixty (60) days after the end of the relevant financial           period;  

	 	(b)  	the
Guarantor shall make all payments and perform all of its obligations under
                    this Deed in accordance with the terms of this Deed;  

	 	(C)  	the
Guarantor shall preserve and keep in full force and effect its existence as
                    a corporation incorporated under the Laws of the State of Nevada,
United States                     of America or of any other State of the United States
of America, and all                     material franchises, rights and privileges under
the Laws of the jurisdiction of                     its formation, and all material
qualifications, licenses and permits applicable                     to the ownership,
administration and management of its assets;  

	 	(d)  	at
all times, the Guarantor shall comply with all restrictions and limitations
                    in its organizational documents;  

	 	(e)  	the
Guarantor shall obtain and maintain in full force and effect all
                    authorisations from time to time required from any governmental or
other                     authorities or from any of its shareholders or creditors for or
in connection                     with the execution, validity and performance of this
Deed, and take immediate                     steps to obtain and thereafter maintain in
full force and effect any other                     authorisations which may become
necessary or advisable for any of the foregoing                     purposes and comply
with all conditions attached to all authorisations obtained;  

	 	(f)  	the
Guarantor shall remain a publicly listed company on the National Association
                    of Securities Dealers Automated Quotation System (NASDAQ) stock
exchange or such                     other national stock exchange of the United States
of America acceptable to the                     Beneficiaries; and  

	 	(g)  	the
Guarantor’s obligations under this Deed at all times shall rank at
                    least part passu with all of its unsecured and
unsubordinated                     obligations, except for obligations mandatorily
preferred by Laws applying to                     companies generally.  

	6.2  	Negative
Undertakings  

	 	
The
Guarantor hereby covenants and undertakes with the Beneficiaries that, at any time prior
to the occurrence of the Discharge Events:  

	 	(a)  	the
CHL SPV shall remain a wholly (i.e. 100%) owned direct subsidiary of the
                    Guarantor;  

11 

	 	(b)  	upon
the proposed occurrence of (i) any sale, transfer, assignment or other
                    disposition of all or substantially all of the assets of CHL or (ii)
any merger,                     reorganization or consolidation of CHL (each of such
event or transaction, the “Proposed Transaction”),  CHL shall,
immediately after the board                     of directors and shareholders’ meeting
(or similar organ with the authority                     to approve such transaction)
approve such Proposed Transaction, notify Prax of                     the details of the
Proposed Transaction in the form and substance reasonably                     acceptable
to Prax for Prax’s review; provided that the Proposed
                    Transaction does not have materially adverse affect on the
Beneficiaries’                    interests and rights under the Transaction
Documents and any transferee,                     assignee or successor in the Proposed
Transaction have provided Prax with                     written undertakings reasonably
acceptable to Prax that it shall continue to                     perform, and cause its
Affiliates to continue to perform, this Deed and the                     relevant
Transaction Documents, Prax shall not unreasonably exercise its rights
                    to revoke or object to the Proposed Transaction and, if Prax does not
serve any                     notice of revocation of or objection to the Proposed
Transaction within ten (10)                     Business Days following its receipt of CHL’s
notification, Prax shall be                     deemed as waiving its right to revoke or
object to the Proposed Transaction;  

	 	(c)  	the
Guarantor shall not, and shall not consent to, the filing of any bankruptcy,
                    insolvency, insolvent corporate reorganization, insolvent company
arrangement,                     civil rehabilitation, special liquidation, moratorium,
readjustment of debt,                     appointment of a conservator, trustee,
supervisor, inspector or receiver, or                     similar debtor relief by any
Obligor; and  

	 	(d)  	the
Guarantor shall not, and shall not consent to, authorize or permit any
                    person to mortgage, pledge, assign for security purposes, sell,
convey, assign                     or transfer any direct or indirect ownership in any
Obligor.  

	7.  	PERSONAL
LIABILITY  

	 	(a)  	The
obligations, responsibility and liability on the part of the Guarantor
                    herein shall be personal to the Guarantor, and shall not be affected,
diminished                     or prejudiced by the release, discharge, surrender,
variation, substitution or                     dissipation of all or any portion of this
Deed.  

	 	(b)  	A
separate action or actions may be brought and prosecuted against the
                    Guarantor, whether or not any action is brought against any Obligor
or any other                     person, or whether or not any Obligor or any other
person is joined in such                     actions or actions.  

	8. 	POWER
OF ATTORNEY  

	 	
The
Guarantor hereby irrevocably appoints Prax (with full power of substitution) to be its
attorney in its name and on its behalf to, upon the Guarantor’s failure to timely
and fully perform its obligations under this Deed (after the expiration of the cure
period designated by the a Beneficiary pursuant to Clause 2.2(a) above), execute, sign,
do and perform all assurances, deeds, instruments, acts and things whatsoever which, in
the reasonable opinion of Prax, are necessary or expedient for the Guarantor to execute,
sign, do or perform for the purpose of carrying out any of the undertakings,  

12 

	 	
covenants
and obligations declared or imposed by this Deed upon the Guarantor or for giving to Prax
on behalf of the Guarantor the full benefit of any of the provisions hereof, and
generally to use the Guarantor’s name in the exercise of all or any of the rights,
remedies and powers conferred on the Guarantor including in particular, but without
prejudice to the generality of the foregoing, the right of recovery of any sums at any
time and from time to time due and payable, under or pursuant to this Deed. The Guarantor
covenants that it will ratify and confirm all that the attorney appointed pursuant to
this Clause shall lawfully do or cause to be done by virtue of these presents.  

	9.  	CLAIMS
BY THE GUARANTOR  

	 	
The
Guarantor represents to and undertakes with the Beneficiaries that it has not taken and
will not take any security in respect of its liability under this Deed from any Obligor.
So long as no Discharge Event has occurred, the Guarantor shall not exercise any right of
subrogation, contribution (including any right to seek contribution) or any other rights
of a surety, or enforce any security or other right or claim, against any Obligor (whether
in respect of its liability under this Deed or otherwise). In addition, until such time as
a Discharge Event has occurred, the Guarantor shall not assert a claim in the insolvency
or liquidation of Obligor in competition with the Beneficiaries. 

	10. 	TAXES
AND OTHER DEDUCTIONS 

	 	
All
sums payable by the Guarantor under this Deed shall be paid in full without set-off or
counterclaim or any restriction or condition and free and clear of any tax or other
deductions or withholdings of any nature. If the Guarantor or any other person is
required by any Law to make any deduction or withholding (on account of tax or otherwise)
from any payment for the account of the Beneficiaries, the Guarantor shall, together with
such payment, pay such additional amount as will ensure that the Beneficiaries receive
(free and clear of any tax or other deductions or withholdings) the full amount which it
would have received if no such deduction or withholding had been required. The Guarantor
shall promptly forward to the Beneficiaries copies of official receipts or other evidence
showing that the full amount of any such deduction or withholding has been paid over to
the relevant taxation or other authority.  

	11.  	FEES,
COSTS, EXPENSES AND INTEREST  

	11.1  	Costs,
Charges and Expenses  

	 	
The
Guarantor shall from time to time forthwith on demand pay to or reimburse each
Beneficiary for:  

	 	(a)  	all
costs, charges and expenses (including legal and other fees on a full
                    indemnity basis and all other out-of-pocket expenses) incurred by the
                    Beneficiaries in connection with the execution and registration of
this Deed,                     the preparation, execution and registration any other
documents required in  

13 

	 	
connection
herewith and/or any amendment to or extension of, or the giving of any consent or waiver
in connection with, this Deed or in releasing or reassigning this Deed; and  

	 	(b)  	all
costs, charges and expenses (including legal and other fees on a full
                    indemnity basis and all other out-of-pocket expenses) incurred by the
                    Beneficiaries in exercising any of its powers hereunder or in suing
for or                     seeking to recover any sums due hereunder or otherwise
preserving or enforcing                     its rights hereunder or in defending any
claims brought against the                     Beneficiaries in respect of this Deed.  

	11.2  	Interest  

	 	
The
Guarantor shall, with respect to all monies payable under this Deed, pay interest (on a
joint and several basis), accruing from the due date of such payment until the date of
such payment (whether before or after any demand or judgment and notwithstanding the
liquidation of the Guarantor or any Obligor) at a rate of ten percent (10 %) per annum,
compounded annually.  

	12.  	INDEMNITY  

	12.1  	General
Indemnity  

	 	(a)  	The
Guarantor shall indemnify, defend and hold each Beneficiary harmless from
                    and against any and all losses, liabilities, claims, damages,
expenses,                     obligations, penalties, actions, judgments, suits, costs or
disbursements of any                     kind or nature whatsoever, including the
Beneficiaries’ first party losses,                     all third party claims
against any of the Beneficiaries and any attorney’s                     fees,
directly or indirectly incurred or accruing by reason of (i) any failure
                    of any of the Obligors to fully and timely perform all of the
Guaranteed                     Obligations, (ii) any failure of the Guarantor to fully
and timely perform any                     of its obligations under this Deed, and (iii)
any acts performed by the                     Beneficiaries pursuant to the provisions of
this Deed (including without                     limitation Clause 8 hereof), except as a
result of such Beneficiary’s                     fraud, gross negligence or wilful
misconduct. All sums paid by the Guarantor                     pursuant to this Clause,
and all other sums expended by the Beneficiaries to                     which they shall
be entitled to be indemnified under or pursuant to this Deed,                     shall
be payable by the Guarantor to each Beneficiary upon demand.  

	12.2  	Currency
Indemnity  

	 	(a)  	If
an amount due to any Beneficiaries from the Guarantor in one currency (the
                    “first currency”) is received by the relevant Beneficiaries
in another                     currency (the “second currency”), the Guarantor’s
obligation to                     such Beneficiaries in respect of such amount shall only
be discharged to the                     extent that such Beneficiaries may purchase the
first currency with the second                     currency in accordance with normal
banking procedure. If the amount of the first                     currency which may be
so purchased (after deducting any costs of exchange and                     any other
related costs) is less than the amount so due, the Guarantor shall,
                    upon receiving written notice, indemnify such Beneficiary against the
shortfall.  

14 

	12.3  	The
Guarantor shall indemnify each Beneficiary as required under Clause 12.1 and 12.2 within
five (5) Business Days of their receipt of a written demand from any Beneficiary for
indemnity under this clause.  

	12.4  	The
indemnity obligation of the Guarantor under Clause 12.1 and 12.2 shall each be an
obligation of the Guarantor independent of, and in addition to, its other obligations
under this Deed and shall take effect notwithstanding any time or other concession
granted to any Obligor or any judgment or order being obtained or the filing of any claim
in the liquidation, dissolution or bankruptcy (or any similar proceeding) of any Obligor.  

	12.5  	Force
Majeure  

	 	(a)  	Scope
of Force Majeure.  Force majeure events include, but are not limited
                    to, acts of God, war, terrorism, civil commotion, riot, blockade or
embargo,                     delays of carriers, fire, explosion, labor dispute,
casualty, accident,                     earthquake, epidemic, flood, windstorm, or by
reason of any law, order,                     proclamation, regulation, ordinance,
demand, expropriation, requisition or                     requirement or any other act of
any governmental authority, including military                     action, court orders,
judgments or decrees, or any other cause beyond the                     reasonable
control of the Guarantor and each of the Obligors, whether or not
                    foreseeable. Notwithstanding the foregoing, the Guarantor’s or
any                     Obligor’s lack of funds, insolvency or difficulty in making
any payment or                     performing any indemnification obligation under this
Deed shall not constitute a                     force majeure event or entitle Guarantor
to any relief under this Clause 12.5.  

	 	(b)  	Notice. 
Should the Guarantor be prevented from performing the terms and
                    conditions of this Deed due to the occurrence of any force majeure
event, the                     Guarantor shall send notice to the Beneficiaries within
seven (7) days from the                     date on which the Guarantor has knowledge, or
should have knowledge of the                     occurrence of the force majeure event
stipulating the occurrence thereof and                     stating in the notice that
such event is an event of force majeure. The                     Guarantor’s failure
to deliver such notice prior to the expiration of the                     above seven-day
period shall constitute Guarantor’s affirmative and                     automatic
waiver of any right to obtain relief under this Clause 12.5 or any
                    similar defense or relief available under applicable law.  

	 	(c)  	Performance. 
Any delay or failure in performance of this Deed caused by a                     force
majeure event shall not constitute default by the Guarantor under this
                    Deed. Upon the occurrence of a force majeure event where notice has
been given                     by the Guarantor as required by Clause 12.5(b) above, the
Guarantor shall be                     excused from the performance of the obligation
only to the extent that such                     performance is prevented by the force
majeure event; provided, however (i) the                     Guarantor shall take, at its
sole cost and expense, those actions required by                     the Beneficiaries to
mitigate losses arising from the force majeure event,                     (ii) upon the
lapsing of the force majeure event, the Guarantor immediately shall
                    resume the performance of those obligations affected by such force
majeure                     event, and (iii) the Guarantor shall update the Beneficiaries
in a regular and                     diligent manner regarding the current status of the
force majeure event, the                     actions being taken by Guarantor to mitigate
losses arising from such force                     majeure event and the ending or
termination of the force majeure event.  

15 

	13.  	MISCELLANEOUS  

	13.1  	Certificates
and determinations  

	 	
Any
certification or determination by a Beneficiary of an amount under this Deed will be, in
the absence of manifest error, conclusive evidence of the matters to which it relates.  

	13.2  	Time  

	 	
Time
is of the essence of the Guarantor’s obligations under this Deed.  

	13.3  	Governing
Language  

	 	
This
Deed is written in both English and Chinese languages. Both versions shall be equally
valid and effective but, in the event of inconsistency between the two versions, the
English version shall prevail.  

	14.  	NOTICES  

	 	
All
notices or other communications under or in connection with this Deed shall be made in
writing and given in the manner set out in Article IX of the Framework Agreement, except
that (a) notices to the Guarantor shall be addressed using the contact information for
CHL specified in the Framework Agreement and (b) notices to the Beneficiaries shall be
addressed using the address for Prax specified in the Framework Agreement.  

	15.  	SEVERABILITY  

	 	
If
a term of this Deed is or becomes illegal, invalid or unenforceable in any respect under
any jurisdiction, that will not affect:  

	 	(a)  	the
legality, validity or enforce ability in that jurisdiction of any other term
                    of this Deed; or  

	 	(b)  	the
legality, validity or enforce ability in other jurisdictions of that or any
                    other term of this Deed.  

16 

	16.  	AMENDMENTS
AND WAIVERS  

	 	
No
amendment, modification or waiver of any provision of this Deed, shall in any event be
effective unless and until the Guarantor and the Beneficiaries reach mutual agreement in
writing.  

	17.  	SET-OFF  

	 	
A
Beneficiary may set off any matured obligation owed to it by the Guarantor under this
Deed against any obligation (whether or not matured) owed by that Beneficiary to the
Guarantor, regardless of the place of payment, booking branch or currency of either
obligation. If the obligations are in different currencies, the Beneficiary may convert
either obligation at a market rate of exchange in its usual course of business for the
purpose of effecting such set-off.  

	18.  	CHANGES
TO THE PARTIES  

	18.1  	The
Guarantor  

	 	
The
Guarantor may not assign or transfer any of its rights or obligations under this Deed
without the prior written consent of the Beneficiaries, which consent may be withheld in
the sole and absolute discretion of the Beneficiaries.  

	18.2  	The
Beneficiaries  

	 	
Any
Beneficiary may assign or otherwise dispose of all or any of its rights under this Deed
to any person or party Controlled by, under common Control with or Controlling such
Beneficiary; provided, however, any assignment or disposition of the rights under this
Deed by the HK SPV shall be subject to the prior written consent of Prax, which consent
may be withheld in Prax’s sole and absolute discretion. Further, Prax may assign its
rights under this Deed in whole or in part to any person or party acquiring some or all
of the shares of Prax in the HK SPV.  

	19.  	GOVERNING
LAW  

	 	
This
Deed is governed by Hong Kong law, without taking into consideration conflict of laws
provisions thereof.  

	20.  	ENFORCEMENT  

	20.1  	Jurisdiction  

	 	(a)  	In
the event of any dispute arising from or in connection with this Deed, the
                    dispute shall be submitted to resolution by arbitration before China
                    International Economic and Trade Arbitration Commission (“CIETAC”),
 Shanghai Sub-Commission in accordance with the CIETAC Arbitration Rules
                    presently in force. There shall be a single arbitrator. If the
Guarantor and the                     Beneficiaries do not agree to appoint an arbitrator
who has consented to                     participate within twenty (20) days after the
issuance of a notice of                     arbitration by any party, the relevant
appointment shall be made by CIETAC                     Shanghai Sub-Commission.  

17 

	 	(b)  	Any
proceedings shall take place in Shanghai and be conducted in Chinese. The
                    arbitral award shall be final and binding upon all parties. If any
party obtains                     an arbitration award against the other party in
connection with a dispute                     arising from or in connection with this
Deed, such party shall be entitled to                     cover its costs and reasonable
attorney’s fees (including the reasonable                     value of in-house
attorney services) and disbursements incurred in connection                     therewith
and in any appeal or enforcement proceeding thereafter, in addition to
                    all other recoverable costs, as determined by the arbitrator.  

	 	(c)  	References
in this Clause to a dispute in connection with this Deed include any
                    dispute as to the existence, validity or termination of this Deed.  

	20.2  	Waiver
of immunity  

	 	
The
Guarantor irrevocably and unconditionally: 

	 	(a)  	agrees
not to claim any immunity from proceedings brought by a Beneficiary
                    against it in relation to this Deed and to ensure that no such claim
is made on                     its behalf;  

	 	(b)  	consents
generally to the giving of any relief or the issue of any process in
                    connection with those proceedings; and  

	 	(c) 	         waives
all rights of immunity in respect of it or its assets.  

IN WITNESS WHEREOF, the Guarantor
has caused this Deed to be executed by its duly authorised signatories on the day and
year first written above.  

18 

Guarantor 

SEALED with the COMMON SEAL of

CHINA HOUSING AND 
 LAND DEVELOPMENT, INC.  

and signed by:

/s/ Lu Pingji

(Lu Pingji)  

in the presence of: 

Accepted by 

HK SPV  

SEALED with the COMMON SEAL of

SUCCESS HILL 
 INVESTMENTS LIMITED  

and signed by:

/s/ Yao, Jie-Ping

(Yao, Jie-Ping)   

in the presence of:  

PRAX  

SEALED with the COMMON SEAL of

Prax Capital Real Estate 
 Holding Limited  

and signed by:

/s/ Yao, Jie-Ping

(Yao, Jie-Ping)  

in the presence of:Exhibit 10.1

 

EXECUTION
VERSION

 

ASSIGNMENT
OF NON-COMPETE

 

THIS
ASSIGNMENT OF NON-COMPETE (this “Assignment”), dated as of January 26, 2009, is made
and entered into by and among Neose Technologies, Inc., a Delaware
corporation (“Seller”), BioGeneriX AG, a corporation organized under the
laws of Germany (“Buyer”) and George J. Vergis (“Employee”).  All capitalized terms not otherwise defined
herein shall have the meanings set forth in the BGX Asset Purchase Agreement
(defined below).

 

WHEREAS, Seller has agreed to sell to Buyer the
Purchased Assets pursuant to an asset purchase agreement, dated as of September 17,
2008 (the “BGX Asset Purchase Agreement”), such sale transaction
expected to occur on or about January 27, 2009 (the “Closing Date”);

 

WHEREAS, simultaneously with the sale of the
Purchased Assets, Seller has agreed to sell substantially all of its remaining
assets to Novo Nordisk A/S (“Novo”) pursuant to an asset purchase
agreement, dated as of September 17, 2008 (the “Novo Asset Purchase
Agreement”);

 

WHEREAS, after the closing of the sale
transactions contemplated by the Novo Asset Purchase Agreement and the BGX
Asset Purchase Agreement, Seller intends to dissolve and distribute its
remaining assets to its stockholders (the “Dissolution”);

 

WHEREAS, Employee and Seller are currently party
to the Amended and Restated Employment Agreement, dated as of April 30,
2007 (the “Employment Agreement”), attached hereto as Exhibit A,
which provides in Sections 5.1.1, 5.1.2, 5.1.3, 5.1.4 and 5.4.1, for covenants
by Employee not to compete with the business of Seller during the term of
Employee’s employment and for one year thereafter, as extended to a period of
eighteen months thereafter, pursuant to Sections 6.1.1 and 6.2, and in Section 5.6
for specific remedies to enforce those covenants (Sections 5.1.1, 5.1.2, 5.1.3,
5.1.4, 5.4.1, 5.6, 6.1.1 and 6.2 of the Employment Agreement are collectively
referred to herein as the “Non-Compete”);

 

WHEREAS, in connection with the sale of its
assets, Seller desires to assign to Buyer and Buyer desires to assume the
Non-Compete to the extent that it relates to the Purchased Assets within the
BGX Field of Use (as hereinafter defined) (the “BGX Restricted Business”);

 

WHEREAS, under Section 9.3
of the Employment Agreement, Seller may assign the Employment Agreement to any
successor to all or substantially all of its assets and business by means of
liquidation, dissolution, merger, consolidation, transfer of assets, or
otherwise; and

 

WHEREAS, as consideration for the payments to be
made to Employee pursuant to Section 6 of the Employment Agreement payable
upon the Dissolution and for other good and valuable consideration, Employee
has agreed to the assignment of the Non-Compete to the extent it relates to the
BGX Restricted Business.

 

NOW,
THEREFORE, in
consideration of the mutual covenants of the parties set forth in this
Assignment, the BGX Asset Purchase Agreement and the Employment Agreement and 

 

 

other good and valuable
consideration the receipt of which is hereby acknowledged, the parties hereto
hereby agree as follows:

 

1.             Effective as of the Closing Date, Seller does hereby
assign to Buyer, and Buyer does hereby assume, the Non-Compete to the extent
that it relates to the BGX Restricted Business. 
As a result, effective as of the Closing Date, Employee agrees with
Buyer:

 

(a)           not to engage or participate in any business
competitive with the BGX Restricted Business;

 

(b)           not to become interested in (as owner, stockholder,
lender, partner, co-venturer, director, officer, employee, agent or consultant)
any person, firm, corporation, association or other entity engaged in any
business competitive with the BGX Restricted Business.  Notwithstanding the foregoing, Employee may
hold up to 4.9% of the outstanding securities of any class of publicly-traded
securities of any company;

 

(c)           not to engage in any business, or solicit or call on
any customer, supplier, licensor, licensee, contractor, agent, representative,
advisor, strategic partner, distributor or other person with whom Seller shall
have dealt or any prospective customer, supplier, licensor, licensee,
contractor, agent, representative, advisor, strategic partner, distributor or
other person that Seller shall have identified and solicited at any time during
Employee’s employment by Seller for a purpose competitive with the BGX
Restricted Business; or

 

(d)           not to influence or attempt to influence any employee,
consultant, customer, supplier, licensor, licensee, contractor, agent,
representative, advisor, strategic partner, distributor of Seller or other
person to terminate or modify any written or oral agreement, arrangement or
course of dealing with Buyer in its capacity as successor to Seller with
respect to any such agreement, arrangement or course of dealing.

 

For the avoidance of
doubt, Seller retains all rights in the Non-Compete relating to any remaining
assets of Seller in the Retained Neose Field of Use.

 

As used herein, (i) “BGX
Field of Use” means the discovery, research, development, commercialization or
other exploitation of any compound or product in any field, use, product,
method or application, other than the Novo Field of Use and the Retained Neose
Field of Use; (ii) “Novo Field of Use” means the discovery, research,
development, commercialization or other exploitation of any compound or product
developed utilizing any Intellectual Property under the Purchased Assets or the
assets transferred to Novo pursuant to the Novo Asset Purchase Agreement, for
the use in the prevention or treatment of acquired or hereditary hemorrhagic
disorders as defined in WHO, ICD-10, Chapter III, D65 through D69, but does not
include any compound or product comprising, derived from, or containing G-CSF
or any erythropoietin; and (iii) “Retained Neose Field of Use” means the
exploitation of non-GlycoPEGylated glycolipids or oligosaccarides, in each case
not attached to a peptide or protein.

 

2.             Employee acknowledges that the assignment of the
Non-Compete to the extent that it relates to the BGX Restricted Business is
made in accordance with Section 9.3 of the Employment Agreement which
allows for an assignment of the Employment Agreement to any 

 

2

 

successor to all or
substantially all of its assets and business by means of liquidation,
dissolution, merger, consolidation, transfer of assets, or otherwise.  Employee further acknowledges that the
assignment is necessary and reasonable in connection with the sale transaction
contemplated by the BGX Asset Purchase Agreement and to facilitate the ability
of Seller to effect the Dissolution and to make payments to Employee pursuant
to Section 6.1.2 of the Employment Agreement.

 

3.             Buyer may assign its rights hereunder to any successor
to that portion of its business that includes all or substantially all the
Purchased Assets, without regard to whether such succession occurs by means of
liquidation, dissolution, merger, consolidation, transfer of assets or
otherwise.

 

4.             Each of the parties hereto agrees that it will, from
time to time after the date hereof, without further consideration, execute,
acknowledge and deliver all such further acts, assignments, transfers,
conveyances, evidences of title, assumptions and assurances as may be required
to carry out the intent of this Assignment.

 

5.             Each of the parties hereto acknowledges and agrees
that no part of the Employment Agreement nor obligations (including payment
obligations of any kind) thereunder, other than the Non-Compete to the extent
that it relates to the BGX Restricted Business, is assigned to, or assumed by,
Buyer.

 

6.             This Assignment may be executed in multiple
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.  This Assignment may be executed by facsimile signatures,
which signatures shall have the same force and effect as original signatures.

 

7.             This Assignment shall be governed by the laws of the
Commonwealth of Pennsylvania without regard to the principles of conflicts of
laws.

 

[REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK]

 

3

 

IN
WITNESS WHEREOF,
the parties hereto have executed this Assignment as of the date first above
written.

 

 

	
   

  	
  NEOSE TECHNOLOGIES,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  A. Brian Davis

  
	
   

  	
  Name: A. Brian Davis

  
	
   

  	
  Title: Sr. Vice
  President and CFO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BIOGENERIX AG

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Karl Heinz Emmert /
  Hermann Allgaier

  
	
   

  	
  Name: Dr. Karl Heinz
  Emmert / Hermann Allgaier

  
	
   

  	
  Title: Chief Scientific
  Officer / Chief Production Officer

  

 

SIGNATURE PAGE TO ASSIGNMENT
OF NON-COMPETE (BGX/VERGIS)

 

 

	
   

  	
  GEORGE J. VERGIS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
    /s/ George
  J. Vergis

  

 

SIGNATURE PAGE TO
ASSIGNMENT OF NON-COMPETE (BGX/VERGIS)

 

 

EXHIBIT A

 

AMENDED AND
RESTATED EMPLOYMENT AGREEMENT

 

THIS
AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the “Agreement”), is dated as
of April 30, 2007 (the “Amendment Date”), by and between NEOSE
TECHNOLOGIES, INC. (the “Company”) and GEORGE J. VERGIS, PH.D. (the “Executive”).

 

Background

 

The
Executive and the Company are parties to an Employment Agreement dated as of May 4,
2006 (“Original Agreement”).  The
Executive and the Company desire to amend and restate the Original Agreement
setting forth the terms and conditions of his employment as the President and
Chief Executive of the Company, as set forth herein.

 

Terms

 

NOW,
THEREFORE, in consideration of the foregoing and the mutual covenants and
promises contained herein, and intending to be bound hereby, the parties agree
as follows:

 

1.     Employment.

 

1.1.  Term.  The Company agrees to employ the Executive in
accordance with the terms of this Agreement and the Executive agrees to accept
such continued employment, effective on the Effective Date and continuing until
terminated pursuant to Section 4 hereof (the “Term”).

 

1.2.  Positions.  During the Term, the Executive will serve as
President and Chief Executive Officer of the Company, reporting directly to the
Board.  The Board agrees to nominate the
Executive for reelection to the Board at each annual meeting of the Company’s
stockholders occurring during the Term and at which the Executive’s term as a
director is scheduled to expire.

 

1.3.  Duties.  The Executive will perform such duties and
functions as are customarily performed by the president and chief executive
officer of an enterprise the size and nature of the Company, including the
duties and functions from time to time assigned to him by the Board.  Without limiting the generality of the
foregoing, the Executive will be responsible for all aspects of the Company’s
performance, including strategy, research and development, business
development, sales and marketing, operations, manufacturing, technology
development and licensing, corporate development, information management,
finance, legal, patent, regulatory, human resources, investor relations and
corporate communications.

 

1.4.  Place of Performance.  The Executive shall perform his services
hereunder at the principal executive offices of the Company, which are
currently located in Horsham, Pennsylvania; provided, however, that the
Executive will be required to travel from time to time for business purposes.

 

 

1.5.  Time Devoted to Employment.  The Executive will devote his best efforts
and substantially all of his business time and services to the performance of
his duties under this Agreement. 
Notwithstanding the foregoing, the Executive may engage in charitable,
community service and industry association activities, and, with the approval
of the Board (which approval will not be unreasonably withheld), may serve as a
member of boards of directors of other companies or organizations, which, in
the judgment of the Board, will not present any conflict of interest with the
Company, so long as those activities do not interfere with the performance of
his duties under this Agreement.

 

2.     Compensation, Benefits and Expense Reimbursements.

 

2.1.  Base Salary. The Executive shall
receive an initial annual salary of $350,000 (the “Base Salary”), paid
semi-monthly or otherwise in accordance with the Company’s customary payroll
practices, as in effect from time to time. 
Future salary reviews will be undertaken by the Board of Directors
annually.

 

2.2.  Bonus.  The Executive will be eligible to receive an
annual bonus (the “Annual Bonus”) for each completed calendar year
during the Term.  The target amount of
the Annual Bonus is 75% of the Base Salary for the applicable calendar
year.  The specific goals and objectives
that must be met to receive the target bonus will be established by mutual
agreement by the Board and the Executive within 90 days following the
commencement of each calendar year during the Term, and within 30 days
following the Effective Date for the initial, partial calendar year of the
Term.  The Company will endeavor to pay
the Annual Bonus, if any, within two and one-half months following the end of
the calendar year to which the Annual Bonus relates.

 

2.3.  Equity Incentive.  The Board has authorized the grant to the
Executive, effective February 15, 2006 (“Grant Date”), of options to
purchase 300,000 shares of the Company’s common stock (the “Stock Option”)
with a per share exercise price equal to the fair market value of a share of
common stock on the Grant Date.  The
Stock Option will vest in four equal, annual installments commencing on February 15,
2007, the first anniversary of the Grant Date, be reflected in a stock option
agreement identical in all material respects to the Company’s Form Stock
Option Agreement and be non-qualified stock options.  The Stock Option will be subject in all
respects to the terms of the Company’s 2004 Equity Incentive Plan.

 

2.4.  Expenses.  The Executive will be entitled to
reimbursement by the Company for all expenses reasonably incurred by him in
connection with the performance of his duties, including, without limitation,
travel and entertainment expenses reasonably related to the business of the
Company, in accordance with the policies and procedures established from time
to time by the Company.

 

2.5.  Other Benefits.  The Executive will be entitled to participate
in any benefit plans, policies or arrangements sponsored or maintained by the
Company from time to time for its senior executive officers (which benefits, as
of this date, include the right to participate in the Company’s 401(k),
employee stock purchase, medical, and dental plans, and coverage under the
Company’s group life and disability insurance policies).

 

4

 

Notwithstanding
the foregoing, the Executive’s eligibility for and participation in any of the
Company’s employee benefit plans, policies or arrangements will be subject to
the terms and conditions of such plans, policies or arrangements.  Moreover, subject to the terms and conditions
of such plans, policies or arrangements, the Company may amend, modify or
terminate such plans, policies or arrangements at any time for any reason.  In addition, the cost of the Executive’s
annual physical examination shall be borne by the Company, to the extent not covered
by the Company’s medical plan.

 

2.6.  Vacations.  In addition to holidays observed by the
Company, the Executive shall be entitled to four (4) weeks paid vacation
time during each year of employment consistent with Company policies, as in
effect from time to time.

 

3.     [Reserved]

 

4.     Termination.

 

4.1.  In General.  The Company may terminate the Executive’s
employment at any time. The Executive may terminate his employment at any time,
provided that, before the Executive may voluntarily terminate his employment
with the Company other than for Good Reason, he must provide 90 days prior
written notice (or such shorter notice as is acceptable to the Company) to the
Company.  Upon any termination of the
Executive’s employment with the Company for any reason: (i) the Executive
(unless otherwise requested by the Board) concurrently will resign all officer
or director positions he holds with the Company, its subsidiaries or
affiliates, and (ii) the Company will pay to the Executive all accrued but
unpaid compensation (including without limitation salary and bonus) through the
date of termination, and (iii) except as explicitly provided in Sections
4, 6 or 7, or otherwise pursuant to COBRA, all compensation and benefits will
cease and the Company will have no further liability or obligation to the
Executive.  The foregoing will not be
construed to limit the Executive’s right to payment or reimbursement for claims
incurred prior to the date of such termination under any insurance contract
funding an employee benefit plan, policy or arrangement of the Company in
accordance with the terms of such insurance contract.

 

4.2.  Termination without Cause or for Good Reason.

 

4.2.1.  If the Executive’s employment by the Company ceases
due to a termination by the Company without Cause or a resignation by the
Executive for Good Reason, then, in addition to the payments and benefits
provided for in Section 4.1 above and subject to Section 8 below: (a) the
Company will pay to the Executive a cash amount equal to pro-rata portion of the
target Annual Bonus for the calendar year in which the termination occurs,
determined by multiplying the target Annual Bonus by a fraction, the numerator
of which is the number of days during the year that transpired before the date
of the Executive’s termination of employment and the denominator of which is
365, (b) the Company will pay to the Executive on a cash amount equal to
the sum of (i) one year of the Executive’s Base Salary as in effect on
such date, and (ii) the target Annual Bonus amount applicable for the
calendar year in which the termination occurs, (c) to the extent not
previously paid, the

 

5

 

Company
will pay to the Executive any Annual Bonus payable with respect to a calendar
year that ended prior to such termination, (d) all outstanding stock
options then held by the Executive (including the Stock Option) will
immediately become vested and exercisable with respect to that number of
additional shares of the Company’s common stock with respect to which such
stock options would have become vested and exercisable had the Executive
remained continuously employed by the Company for an additional 12 months
following his cessation of employment and will remain exercisable for the
shorter of (i) the 12-month period immediately following the Executive’s
cessation of employment, or (ii) the period remaining until the scheduled
expiration of the option (determined without regard to the executive’s
cessation of employment), and (d) the Company will pay to the Executive
the additional amount, if any, payable pursuant to Section 7 below;
provided that if the Company’s obligation to make the payments provided for in
this Section 4.2.1 arises due to a cessation of the Executive’s employment
due to his death or Disability (as defined below), the cash payments described
in clauses (a), (b) and (c) of this Section 4.2.1 will be offset
by the amount of benefits paid to the Executive (or his representative(s),
heirs, estate or beneficiaries) pursuant to the life insurance or long-term
disability plans, policies or arrangements of the Company by virtue of his
death or that Disability (including, for this purpose, only that portion of
such life insurance or disability benefits funded by the Company or by premium
payments made by the Company).

 

4.2.2.  For purposes of
this Agreement, the Executive’s employment will be deemed to have been
terminated without “Cause” if his employment is terminated as a result
of his death or Disability or is terminated by the Company other than as a
result of fraud, embezzlement, or any other illegal act committed intentionally
by the Executive in connection with his employment or the performance of his
duties as an officer or director of the Company.  For purposes of this Agreement, “Disability”
means the Executive’s inability, by reason of any physical or mental
impairment, to substantially perform his regular duties as contemplated by this
Agreement, as determined by the Board in its sole discretion (after affording
the Executive the opportunity to present his case), which inability is
reasonably contemplated to continue for at least one year from its commencement
and at least 90 days from the date of such determination.

 

4.2.3.  For purposes of
this Agreement, “Good Reason” means, without the Executive’s prior
written consent, any of the following:

 

	
  a)

  	
  a change in the
  Executive’s title (not including the election of the Executive as Chairman of
  the Board);

  
	
   

  	
   

  
	
  b)

  	
  a reduction in the
  Executive’s authority, duties or responsibilities, or the assignment to the
  Executive of duties that are inconsistent, in a material respect, with
  Executive’s position;

  
	
   

  	
   

  
	
  c)

  	
  the relocation of the
  Company’s headquarters more than 15 miles from Horsham, Pennsylvania, unless
  such move reduces Executive’s commuting time;

  

 

6

 

	
  d)

  	
  a reduction in the Base
  Salary or in the target amount, expressed as a percentage of Base Salary, of
  the Annual Bonus; or

  
	
   

  	
   

  
	
  e)

  	
  the Company’s failure to
  pay or make available any material payment or benefit due under this
  Agreement or any other material breach by the Company of this Agreement.

  

 

However,
the foregoing events or conditions will constitute Good Reason only if the
Executive provides the Company with written objection to the event or condition
within 60 days following the Executive’s knowledge of the occurrence thereof,
the Company does not reverse or otherwise cure the event or condition within 30
days of receiving that written objection and the Executive resigns his
employment within 90 days following the expiration of that cure period.

 

5.     Restrictive Covenants.  As consideration for all of the payments to
be made to the Executive pursuant to Sections 2, 4 and 6 of this Agreement, as
well as for any equity incentive awards that the Executive may receive from the
Company, the Executive agrees to be bound by the provisions of this Section 5
(the “Restrictive Covenants”). These Restrictive Covenants will apply
without regard to whether any termination of the Executive’s employment is initiated
by the Company or the Executive, and without regard to the reason for that
termination.

 

5.1.  Covenant Not To Compete.  The Executive covenants that, during the
period beginning on the Effective Date and ending on the first anniversary of
the termination of the Executive’s employment with the Company for any reason
(the “Restricted Period”), he will not (except in his capacity as an
employee or director of the Company) do any of the following, directly or
indirectly, anywhere in the world:

 

5.1.1.  engage or participate in any business competitive
with the Business (as defined below);

 

5.1.2.  become
interested in (as owner, stockholder, lender, partner, co-venturer, director,
officer, employee, agent or consultant) any person, firm, corporation, association
or other entity engaged in any business competitive with the Business.  Notwithstanding the foregoing, the Executive
may hold up to 4.9% of the outstanding securities of any class of any publicly-traded
securities of any company;

 

5.1.3.  engage in any
business, or solicit or call on any customer, supplier, licensor, licensee,
contractor, agent, representative, advisor, strategic partner, distributor or
other person with whom the Company shall have dealt or any prospective
customer, supplier, licensor, licensee, contractor, agent, representative,
advisor, strategic partner, distributor or other person that the Company shall
have identified and solicited at any time during the Executive’s employment by
the Company for a purpose competitive with the Business;

 

5.1.4.  influence or
attempt to influence any employee, consultant, customer, supplier, licensor,
licensee, contractor, agent, representative, advisor, strategic partner,
distributor or other person to terminate or modify any written or oral agreement,
arrangement or course of dealing with the Company; or

 

7

 

5.1.5.  solicit for
employment or employ or retain (or arrange to have any other person or entity
employ or retain) any person who has been employed or retained by the Company
within the 12 months preceding the termination of the Executive’s employment
with the Company for any reason.

 

5.2.  Confidentiality.  The Executive recognizes and acknowledges
that the Proprietary Information (as defined below) is a valuable, special and
unique asset of the business of the Company. 
As a result, both during the Term and thereafter, the Executive will
not, without the prior written consent of the Company, for any reason either
directly or indirectly divulge to any third-party or use for his own benefit,
or for any purpose other than the exclusive benefit of the Company, any
Proprietary Information; provided, however, that the Executive may during the
Term disclose Proprietary Information to third parties as may be necessary or
appropriate to the effective and efficient discharge of his duties as an
employee hereunder (provided that the third party recipient has signed the
Company’s then-approved confidentiality or similar agreement) or as such
disclosures may be required by law.  If
the Executive or any of his representatives becomes legally compelled to
disclose any of the Proprietary Information, the Executive will provide the
Company with prompt written notice so that the Company may seek a protective
order or other appropriate remedy.  The
non-disclosure and non-use obligations with respect to Proprietary Information
set forth in this Section 5.2 shall not apply to any information that is
in or becomes part of the public domain through no improper act on the part of
the Executive.

 

5.3.  Property of the Company.

 

5.3.1.  Proprietary Information. All right,
title and interest in and to Proprietary Information will be and remain the
sole and exclusive property of the Company. 
The Executive will not remove from the Company’s offices or premises any
documents, records, notebooks, files, correspondence, reports, memoranda or
similar materials of or containing Proprietary Information, or other materials
or property of any kind belonging to the Company unless necessary or appropriate
in the performance of his duties to the Company.  If the Executive removes such materials or
property in the performance of his duties, the Executive will return such
materials or property to their proper files or places of safekeeping as promptly
as possible after the removal has served its specific purpose.  The Executive will not make, retain, remove
and/or distribute any copies of any such materials or property, or divulge to
any third person the nature of and/or contents of such materials or property or
any other oral or written information to which he may have access or become
familiar in the course of his employment, except to the extent necessary in the
performance of his duties.  Upon
termination of the Executive’s employment with the Company, he will leave with
the Company or promptly return to the Company all originals and copies of such
materials or property then in his possession.

 

5.3.2.  Intellectual
Property.  The
Executive agrees that all the Intellectual Property (as defined below) will be
considered “works made for hire” as that term is defined in Section 101 of
the Copyright Act (17 U.S.C. § 101) and that all right, title and

 

8

 

interest
in such Intellectual Property will be the sole and exclusive property of the
Company.  To the extent that any of the
Intellectual Property may not by law be considered a work made for hire, or to
the extent that, notwithstanding the foregoing, the Executive retains any
interest in the Intellectual Property, the Executive hereby irrevocably assigns
and transfers to the Company any and all right, title, or interest that the
Executive may now or in the future have in the Intellectual Property under
patent, copyright, trade secret, trademark or other law, in perpetuity or for
the longest period otherwise permitted by law, without the necessity of further
consideration.  The Company will be
entitled to obtain and hold in its own name all copyrights, patents, trade secrets,
trademarks and other similar registrations with respect to such Intellectual
Property.  The Executive further agrees
to execute any and all documents and provide any further cooperation or
assistance reasonably required by the Company, at the Company’s sole cost and
expense, to perfect, maintain or otherwise protect its rights in the
Intellectual Property.  If the Company is
unable after reasonable efforts to secure the Executive’s signature,
cooperation or assistance in accordance with the preceding sentence, whether
because of the Executive’s incapacity or any other reason whatsoever, the
Executive hereby designates and appoints the Company or its designee as the
Executive’s agent and attorney-in-fact, to act on his behalf, to execute and
file documents and to do all other lawfully permitted acts necessary or
desirable to perfect, maintain or otherwise protect the Company’s rights in the
Intellectual Property.  The Executive
acknowledges and agrees that such appointment is coupled with an interest and
is therefore irrevocable.

 

5.4.  Definitions.  For purposes of this Agreement, the following
terms have the meanings defined below:

 

5.4.1.  “Business” means research, development,
manufacture, supply, marketing, licensing, use and sale of biologic,
pharmaceutical and therapeutic materials and products and related process
technology including, without limitation, research, development, manufacture,
supply, marketing, licensing, use and sale of products and technology directed
to (a) the enzymatic synthesis of complex carbohydrates for use in food,
cosmetic, therapeutic, consumer and industrial applications, (b) enzymatic
synthesis or modification of the carbohydrate portion of proteins or lipids, (c) carbohydrate-based
therapeutics and (d) the development of protein therapeutics using
siallylation, fucosylation, glycosylation, GlycoPEGylationTM, or
GlycoConjugationTM .

 

5.4.2.  “Intellectual
Property” means (a) all inventions (whether patentable or unpatentable
and whether or not reduced to practice), all improvements thereto, and all
patents and patent applications claiming such inventions, (b) all
trademarks, service marks, trade dress, logos, trade names, fictitious names,
brand names, brand marks and corporate names, together with all translations,
adaptations, derivations, and combinations thereof and including all goodwill
associated therewith, and all applications, registrations, and

 

9

 

renewals
in connection therewith, (c) all copyrightable works, all copyrights, and
all applications, registrations, and renewals in connection therewith, (d) all
mask works and all applications, registrations, and renewals in connection
therewith, (e) all trade secrets (including research and development, know-how,
formulas, compositions, manufacturing and production processes and techniques,
methodologies, technical data, designs, drawings and specifications), (f) all
computer software (including data, source and object codes and related
documentation), (g) all other proprietary rights, (h) all copies and
tangible embodiments thereof (in whatever form or medium), or similar
intangible personal property which have been or are developed or created in
whole or in part by the Executive (i) at any time and at any place while
the Executive is employed by Company and which, in the case of any or all of
the foregoing, are related to and used in connection with the business of the
Company, or (ii) as a result of tasks assigned to the Executive by the
Company.

 

5.4.3.  “Proprietary
Information” means any and all information of the Company or of any
subsidiary or affiliate of the Company.  
Such Proprietary Information shall include, but shall not be limited to,
the following items and information relating to the following items: (a) all
intellectual property and proprietary rights of the Company (including without
limitation Intellectual Property) (b) computer codes or instructions
(including source and object code listings, program logic algorithms,
subroutines, modules or other subparts of computer programs and related
documentation, including program notation), computer processing systems and
techniques, all computer inputs and outputs (regardless of the media on which
stored or located), hardware and software configurations, designs, architecture
and interfaces, (c) business research, studies, procedures and costs, (d) financial
data, (e) distribution methods, (f) marketing data, methods, plans
and efforts, (g) the identities of actual and prospective customers,
contractors and suppliers, (h) the terms of contracts and agreements with
customers, contractors and suppliers, (i) the needs and requirements of,
and the Company’s course of dealing with, actual or prospective customers,
contractors and suppliers, (j) personnel information, (k) customer
and vendor credit information, and (l) any information received from third
parties subject to obligations of non-disclosure or non-use.  Failure by the Company to mark any of the
Proprietary Information as confidential or proprietary shall not affect its status
as Proprietary Information under the terms of this Agreement.

 

5.5.  Acknowledgements.  The Executive acknowledges that the
Restrictive Covenants are reasonable and necessary to protect the legitimate
interests of the Company and its affiliates and that the duration and
geographic scope of the Restrictive Covenants are reasonable given the nature
of this Agreement and the position the Executive will hold within the
Company.  The Executive further
acknowledges that the Restrictive Covenants are included herein in order to
induce the Company to promote the Executive and that the Company would not have
entered into this Agreement or otherwise promoted the Executive in the absence
of the Restrictive Covenants.

 

5.6.  Remedies and Enforcement Upon Breach.

 

5.6.1.  Specific
Enforcement. The Executive acknowledges that any breach by him,
willfully or otherwise, of the Restrictive Covenants will cause continuing and
irreparable injury to the Company for which monetary damages would not be an 

 

10

 

adequate remedy. 
The Executive shall not, in any action or proceeding to enforce any of
the provisions of this Agreement, assert the claim or defense that such an
adequate remedy at law exists.  In the
event of any such breach by the Executive, the Company shall have the right to
enforce the Restrictive Covenants by seeking injunctive or other relief in any
court, without any requirement that a bond or other security be posted, and
this Agreement shall not in any way limit remedies of law or in equity otherwise
available to the Company.

 

5.6.2.  Judicial Modification.  If any court determines that any of the
Restrictive Covenants, or any part thereof, is unenforceable because of the
duration or geographical scope of such provision, such court shall have the
power to modify such provision and, in its modified form, such provision shall
then be enforceable.

 

5.6.3.  Accounting. 
If the Executive breaches any of the Restrictive Covenants, the Company
will have the right and remedy to require the Executive to account for and pay
over to the Company all compensation, profits, monies, accruals, increments or
other benefits derived or received by the Executive as the result of such
breach.  This right and remedy will be in
addition to, and not in lieu of, any other rights and remedies available to the
Company under law or in equity.

 

5.6.4.  Enforceability.  If any court holds the Restrictive Covenants
unenforceable by reason of their breadth or scope or otherwise, it is the
intention of the parties hereto that such determination not bar or in any way
affect the right of the Company to the relief provided above in the courts of
any other jurisdiction within the geographic scope of such Restrictive
Covenants.

 

5.6.5.  Disclosure of Restrictive Covenants.  The Executive agrees to disclose the
existence and terms of the Restrictive Covenants to any employer that the
Executive may work for during the Restricted Period.

 

5.6.6.  Extension of Restricted Period.  If the Executive breaches Section 5.1 in
any respect, the restrictions contained in that section will be extended for a
period equal to the period that the Executive was in breach.

 

6.     Change
in Control.

 

6.1.           Certain Terminations Following a Change in Control.  If the Executive’s
employment with the Company ceases within eighteen months following a Change in
Control (as defined below) as a result of a termination by the Company without
Cause (not including, solely for purposes of this Section 6, a termination
as a result of the Executive’s death or Disability) or a resignation by the
Executive for Good Reason, then:

 

6.1.1.      the
Restricted Period will be extended by eighteen months;

 

6.1.2.  subject to Section 8 and in lieu of the payments
and benefits provided for in Section 4.2, (a) the Company will pay to
the Executive a cash amount equal to pro-rata portion of the target Annual
Bonus for the calendar year in which the

 

11

 

termination occurs, determined by multiplying the
target Annual Bonus by a fraction, the numerator of which is the number of days
during the year that transpired before the date of the Executive’s termination
of employment and the denominator of which is 365, (b) the Company will
pay to the Executive a cash amount equal to the sum of (i) 2.5 times the Executive’s
Base Salary as in effect on such date, and (ii) 2.5 times the target
Annual Bonus amount applicable for the calendar year in which the termination
occurs, (c) to the extent not previously paid, the Company will pay to the
Executive any Annual Bonus payable with respect to a calendar year that ended
prior to that termination, (d) all outstanding stock options then held by
Executive (including the Stock Option) will then become fully vested and
immediately exercisable and will remain exercisable for the shorter of (i) the
30-month period immediately following the Executive’s cessation of employment,
or (ii) the period remaining until the scheduled expiration of the option
(determined without regard to the Executive’s cessation of employment), and (d) the
Company will pay to the Executive the additional amount, if any, payable
pursuant to Section 7 below.

 

6.2.    Definitions.  For purposes of
this Agreement, the term “Change in Control” means a change in ownership
or control of the Company effected through any of the following transactions:

 

6.2.1.  the direct or indirect acquisition by any person or
related group of persons (other than the Company or a person that directly or
indirectly controls, is controlled by, or is under common control with, the Company)
of beneficial ownership (within the meaning of Rule 13d-3 of the
Securities Exchange Act of 1934, as amended) of securities possessing more than
50% of the total combined voting power of the Company’s outstanding securities;

 

6.2.2.  a change in the composition of the Board over a
period of 36 months or less such that a majority of the Board members ceases,
by reason of one or more contested elections for Board membership, to be
comprised of individuals who either (a) have been board members continuously
since the beginning of such period, or (b) have been elected or nominated
for election as Board members during such period by at least a majority of the
Board members described in clause (a) who were still in office at the time
such election or nomination was approved by the Board;

 

6.2.3.  the consummation of any consolidation, share exchange
or merger of the Company (a) in which the stockholders of the Company
immediately prior to such transaction do not own at least a majority of the
voting power of the entity which survives/results from that transaction, or (b) in
which a stockholder of the Company who does not own a majority of the voting
stock of the Company immediately prior to such transaction, owns a majority of
the Company’s voting stock immediately after such transaction; or

 

6.2.4.  the liquidation or dissolution of the Company or any
sale, lease, exchange or other transfer (in one transaction or a series of
related transactions) of all or substantially

 

12

 

all the assets of the Company, including stock held in
subsidiary corporations or interests held in subsidiary ventures.

 

7.     Parachute
Payments.

 

7.1.           Generally.  All amounts payable
to the Executive under this Agreement will be made without regard to whether
the deductibility of such payments (considered together with any other
entitlements or payments otherwise paid or due to the Executive) would be
limited or precluded by Section 280G of the Code and without regard to
whether such payments would subject the Executive to the excise tax levied on
certain “excess parachute payments” under Section 4999 of the Code (the “Parachute
Excise Tax”).

 

7.2.           Gross-Up.  If all or any portion of the payments or
other benefits provided under any section of this Agreement, either alone or
together with any other payments and benefits which the Executive receives or
is entitled to receive from the Company or its affiliates (whether paid or
payable or distributed or distributable) pursuant to the terms of this Agreement
or otherwise pursuant to or by reason of any other agreement, policy, plan,
program or arrangement, including without limitation any stock option, stock
appreciation right or similar right, or the lapse or termination of any
restriction on or the vesting or exercisability of any of the foregoing (the “Payment”)
would result in the imposition of a Parachute Excise Tax, the Executive will be
entitled to an additional payment (the “Gross-up Payment”) in an amount such
that the net amount of the Payment and the Gross-up Payment retained by the
Executive after the calculation and deduction of all excise taxes (including
any interest or penalties imposed with respect to such taxes) on the Payment
and all federal, state and local income tax, employment tax and excise tax
(including any interest or penalties imposed with respect to such taxes) on the
Gross-up Payment provided for in this Section 7.2, and taking into account
any lost or reduced tax deductions on account of the Gross-up Payment, shall be
equal to the Payment.

 

7.3.           Measurements and Adjustments.  The determination
of the amount of the payments and benefits paid and payable to the Executive
and whether and to what extent payments under Section 7.2 are required to
be made will be made at the Company’s expense by an independent auditor
selected by mutual agreement of the Company and the Executive, which auditor
shall provide Executive and the Company with detailed supporting calculations
with respect to its determination within fifteen (15) business days of the
receipt of notice from the Executive or the Company that the Executive has
received or will receive a payment that is potentially subject to the Parachute
Excise Tax.  For the purposes of
determining whether any payments will be subject to the Parachute Excise Tax
and the amount of such Parachute Excise Tax, such payments will be treated as “parachute
payments” within the meaning of section 280G of the Code, and all “parachute
payments” in excess of the “base amount” (as defined under section 280G(b)(3) of
the Code) shall be treated as subject to the Parachute Excise tax, unless and
except to the extent that in the opinion of the accountants such payments (in
whole or in part) either do not constitute “parachute payments” or represent
reasonable compensation for services actually rendered (within the meaning of
section 280G(b)(4) of the Code) in excess of the “base amount,” or such “parachute
payments” are

 

13

 

otherwise not subject to such
Parachute Excise Tax.  For purposes of
determining the amount of the Gross-up Payment, if any, the Executive shall be
deemed to pay federal income taxes at the highest applicable marginal rate of
federal income taxation for the calendar year in which the gross-up payment is
to be made and to pay any applicable state and local income taxes at the
highest applicable marginal rate of taxation for the calendar year in which the
gross-up payment is to be made, net of the maximum reduction in federal income
taxes which could be obtained from the deduction of such state or local taxes
if paid in such year (determined without regard to limitations on deductions
based upon the amount of the Executive’s adjusted gross income); and to have
otherwise allowable deductions for federal, state and local income tax purposes
at least equal to those disallowed because of the inclusion of the Gross-up
Payment in the Executive’s adjusted gross income.  Any Gross-up Payment shall be paid by the
Company at the time the Executive is entitled to receive the Payment.  Any determination by the auditor shall be
binding upon the Company and the Executive.

 

7.4.           In the event of any underpayment or overpayment to the
Executive (determined after the application of Section 7.2), the amount of
such underpayment or overpayment will be, as promptly as practicable, paid by
the Company to the Executive or refunded by the Executive to the Company, as
the case may be, with interest at the applicable federal rate specified in Section 7872(f)(2) of
the Code.

 

8.     Timing
of Payments Following Termination.

 

8.1.           Notwithstanding any provision of this Agreement, the
payments and benefits described in Sections 4.2, 6 and 7 are conditioned on the
Executive’s execution and delivery to the Company, within 60 days following his
cessation of employment, of a release substantially identical to that attached
hereto as Exhibit I in a manner consistent with the requirements of
the Older Workers Benefit Protection Act (the “Mutual Release”).  The amounts described in Sections 4.2.1 and
6.1.2 will be paid in a lump sum, on the eighth day following the Executive’s
execution and delivery of the Mutual Release (provided that the Mutual Release
has not been revoked by the Executive). 
The Company covenants that if the Executive executes the Mutual Release,
the Company will also execute the Mutual Release.

 

8.2.           IRC Section 409A. To the extent compliance with the requirements of Treas.
Reg. §1.409A-3(i)(2) or any successor provision  is necessary to avoid the application of an
additional tax under Section 409A of the Code on payments due to the
Executive upon or following his separation from service, then, notwithstanding
any other provision of this Agreement (or any otherwise applicable plan,
policy, agreement or arrangement), any such payments that are otherwise due
within six months following the Executive’s separation from service will be
deferred (without interest) and paid to the Executive in a lump sum immediately
following that six month period.

 

14

 

9.                                            Miscellaneous.

 

9.1.           No Liability of Officers and Directors for Severance Upon
Insolvency.  Notwithstanding any other provision of the
Agreement and intending to be bound by this provision, the Executive hereby (a) waives
any right to claim payment of amounts owed to him, now or in the future,
pursuant to this Agreement from directors or officers of the Company if the
Company becomes insolvent, and (b) fully and forever releases and
discharges the Company’s officers and directors from any and all claims,
demands, liens, actions, suits, causes of action or judgments arising out of
any present or future claim for such amounts.

 

9.2.           Other Agreements.  The Executive
represents and warrants to the Company that there are no restrictions, agreements
or understandings whatsoever to which he is a party that would prevent or make
unlawful his execution of this Agreement, that would be inconsistent or in
conflict with this Agreement or Executive’s obligations hereunder, or that
would otherwise prevent, limit or impair the performance by Executive of his
duties under this Agreement.

 

9.3.           Successors and Assigns. The Company may assign this Agreement to any successor to
all or substantially all of its assets and business by means of liquidation,
dissolution, merger, consolidation, transfer of assets, or otherwise.  The duties of the Executive hereunder are
personal to the Executive and may not be assigned by him.

 

9.4.           Governing Law.  This Agreement
shall be governed by and construed in accordance with the laws of the
Commonwealth of Pennsylvania without regard to the principles of conflicts of
laws.

 

9.5.           Enforcement.  Any legal
proceeding arising out of or relating to this Agreement will be instituted in
the United States District Court for the Eastern District of Pennsylvania, or
if that court does not have or will not accept jurisdiction, in any court of
general jurisdiction in the Commonwealth of Pennsylvania, and the Executive and
the Company hereby consent to the personal and exclusive jurisdiction of such
court(s) and hereby waive any objection(s) that they may have to
personal jurisdiction, the laying of venue of any such proceeding and any claim
or defense of inconvenient forum.

 

9.6.           Waivers; Separability.  The waiver by
either party hereto of any right hereunder or any failure to perform or breach
by the other party hereto shall not be deemed a waiver of any other right
hereunder or any other failure or breach by the other party hereto, whether of
the same or a similar nature or otherwise. 
No waiver shall be deemed to have occurred unless set forth in a writing
executed by or on behalf of the waiving party. 
No such written waiver shall be deemed a continuing waiver unless
specifically stated therein, and each such waiver shall operate only as to the
specific term or condition waived and shall not constitute a waiver of such
term or condition for the future or as to any act other than that specifically
waived.  If any provision of this
Agreement shall be declared to be invalid or unenforceable, in whole or in
part, such invalidity or unenforceability shall not affect the remaining
provisions hereof which shall remain in full force and effect.

 

15

 

9.7.           Notices.  All notices and communications that are
required or permitted to be given hereunder shall be in writing and shall be
deemed to have been duly given when hand-delivered or sent by first-class,
registered or certified mail, nationally recognized overnight delivery service,
or by facsimile with a machine-generated confirmation (and with a confirmation
copy sent by one of the other methods listed above) to the other party at the
address set forth below:

 

If to
the Company, to:

 

Neose
Technologies, Inc.

102 Rock Road

Horsham PA 19044

Attn: General Counsel

Fax: 215-315-9200

 

With a
copy to:

 

Pepper
Hamilton LLP

3000 Two Logan Square

18th & Arch Streets

Philadelphia, PA 19103

Attn: Barry M. Abelson, Esquire

Fax: 215-981-4750

 

If to
Executive, to:

 

George
J. Vergis, Ph.D.

204 Weeks Pond Road

New
Hope, PA  18938

 

With a
copy to:

Edmonds & Co., P.C.

420
Fifth Avenue, 25th Floor

New
York, New York  10018

Attn: Robert C. Edmonds, Esq.

Fax:
212-703-5440

 

or to such other address
as may be specified in a notice given by one party to the other party
hereunder.

 

9.8.           Entire Agreement; Amendments.  As of the Effective
Date, this Agreement and the attached exhibits contain the entire
agreement and understanding of
the parties hereto relating to the subject matter hereof, and merges and
supersedes all prior and contemporaneous discussions, agreements and
understandings of every nature relating to the subject matter (including,
without limitation, that certain letter agreement between the Executive and the
Company dated July 2, 2001 and that certain Change in Control Agreement
between the Executive and the Company dated October 11, 2002).  This

 

16

 

Agreement may not be changed
or modified, except by an Agreement in writing signed by each of the parties
hereto.

 

9.9.           Withholding.  The Company will
withhold from any payments due to Executive, all taxes, FICA or other amounts
required to be withheld pursuant to any applicable law.

 

9.10.  Headings
Descriptive.  The headings of sections and paragraphs of
this Agreement are inserted for convenience only and shall not in any way
affect the meaning or construction of any provision of this Agreement.

 

9.11.  Counterparts.  This Agreement may
be executed in multiple counterparts, each of which will be deemed to be an
original, but all of which together will constitute but one and the same
instrument.

 

[This
space left blank intentionally; signature page follows.]

 

17

 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement on the date
and year first above written.

 

	
   

  	
  NEOSE
  TECHNOLOGIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
       /s/ A. Brian Davis

  
	
   

  	
   

  	
       A. Brian Davis

  
	
   

  	
   

  	
       Senior Vice
  President & CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
      /s/
  George J. Vergis

  
	
   

  	
  GEORGE J. VERGIS, PH.D.

  

 

18

 

Exhibit I

 

Mutual Release and
Non-Disparagement Agreement

 

THIS MUTUAL RELEASE AND
NON-DISPARAGEMENT AGREEMENT (this “Mutual Release”) is made as of the
       day of
              ,
           by and between
GEORGE J. VERGIS, Ph.D. (“Executive”) and NEOSE TECHNOLOGIES, INC. (the “Company”).

 

WHEREAS, Executive’s
employment with the Company has ceased; and

 

WHEREAS, Executive has
resigned as an officer and/or director of the Company and each of its
subsidiaries and affiliates; and

 

WHEREAS, pursuant to Section[s]
4[[,] [and] 6 [and 7]] of the Amended and Restated Employment Agreement by and
between the Company and Executive dated April 30, 2007 (the “Employment
Agreement”), the Company has agreed to pay Executive certain amounts and to
provide him with certain rights and benefits, subject to the execution of this
Mutual Release.

 

NOW THEREFORE, in
consideration of these premises and the mutual promises contained herein, and
intending to be legally bound hereby, the parties agree as follows:

 

SECTION 1.           Consideration.  Executive acknowledges that: (i) the
payments, rights and benefits set forth in Section[s] 4[[,] [and] 6 [and 7]] of
the Employment Agreement constitute full settlement of all his rights under the
Employment Agreement, (ii) he has no entitlement under any other severance
or similar arrangement maintained by the Company, and (iii) except as
otherwise provided specifically in this Mutual Release, the Company does not
and will not have any other liability or obligation to Executive.  Executive further acknowledges that, in the
absence of his execution of this Mutual Release, the benefits and payments
specified in Section[s] 4[[,] [and] 6 [and 7]] of the Employment Agreement
would not otherwise be due to Executive.

 

SECTION 2.           Mutual Release and
Covenant Not to Sue.

 

2.1.          The Company (including
for purposes of this Section 2.1, its parents, affiliates and
subsidiaries) hereby fully and forever releases and discharges Executive (and
his heirs, executors and administrators), and Executive hereby fully and
forever releases and discharges Company (including all predecessors and
successors, assigns, officers, directors, trustees, employees, agents and
attorneys, past and present) from any and all claims, demands, liens,
agreements, contracts, covenants, actions, suits, causes of action,
obligations, controversies, debts, costs, expenses, damages, judgments, orders
and liabilities, of whatever kind or nature, direct or indirect, in law, equity
or otherwise, whether known or unknown, arising through the date of this Mutual
Release, out of Executive’s employment by the Company or the termination
thereof, including, but not limited to, any claims for relief or causes of
action under the Age Discrimination in Employment Act, 29 U.S.C. § 621 et seq.,
or any other federal, state or local statute, ordinance or regulation regarding
discrimination in employment and any claims, demands or actions based upon
alleged wrongful or retaliatory discharge or breach of contract under any state
or federal law.

 

2.2.          Executive expressly
represents that he has not filed a lawsuit or initiated any other
administrative proceeding against the Company (including for purposes of this Section 2.2,
its parents, affiliates and subsidiaries) and that he has not assigned any
claim against the Company or any affiliate to any other person or entity.  The Company expressly represents that it has
not 

 

 

filed a lawsuit or initiated any other administrative proceeding
against Executive and that it has not assigned any claim against Executive to
any other person or entity.  Both
Executive and the Company further promise not to initiate a lawsuit or to bring
any other claim against the other arising out of or in any way related to
Executive’s employment by the Company or the termination of that employment.  This Mutual Release will not prevent
Executive from filing a charge with the Equal Employment Opportunity Commission
(or similar state agency) or participating in any investigation conducted by
the Equal Employment Opportunity Commission (or similar state agency);
provided, however, that any claims by Executive for personal relief in
connection with such a charge or investigation (such as reinstatement or
monetary damages) would be barred.

 

2.3.          The foregoing will not
be deemed to release the Executive or the Company from (a) claims solely
to enforce this Mutual Release, (b) claims solely to enforce Sections 4,
5, [6], [7] or 9 of the Employment Agreement, or (c) claims solely to
enforce the terms of any equity incentive award agreement between Executive and
the Company, or (d) claims for indemnification under the Company’s
By-Laws, under any indemnification agreement between the Company and Executive
or under any similar agreement.

 

SECTION 3.           Restrictive
Covenants.  Executive acknowledges
that restrictive covenants contained in Section 5 of the Employment
Agreement will survive the termination of his employment.  Executive affirms that those restrictive
covenants are reasonable and necessary to protect the legitimate interests of
the Company, that he received adequate consideration in exchange for agreeing
to those restrictions and that he will abide by those restrictions.

 

SECTION 4.           Non-Disparagement.  The Company (meaning, solely for this
purpose, the Company’s directors and executive officers and other individuals
authorized to make official communications on the Company’s behalf) will not
disparage Executive or Executive’s performance or otherwise take any action
which could reasonably be expected to adversely affect Executive’s personal or
professional reputation.  Similarly,
Executive will not disparage the Company or any of its directors, officers,
agents or employees or otherwise take any action which could reasonably be
expected to adversely affect the reputation of the Company or the personal or
professional reputation of any of the Company’s directors, officers, agents or
employees.

 

SECTION 5.           Cooperation.  Executive further agrees that, subject to
reimbursement of his reasonable expenses, he or she will cooperate fully with
the Company and its counsel with respect to any matter (including litigation,
investigations, or governmental proceedings) which relates to matters with
which Executive was involved during his employment with the Company.  Executive shall render such cooperation in a
timely manner on reasonable notice from the Company.

 

SECTION 6.           Rescission Right.  Executive expressly acknowledges and recites
that (a) he has read and understands the terms of this Mutual Release in
its entirety, (b) he has entered into this Mutual Release knowingly and
voluntarily, without any duress or coercion; (c) he has been advised
orally and is hereby advised in writing to consult with an attorney with
respect to this Mutual Release before signing it; (d) he was provided
twenty-one (21) calendar days after receipt of the Mutual Release to consider
its terms before signing it; and (e) he or she is provided seven (7) calendar
days from the date of signing to terminate and revoke this Mutual Release, in
which case this Mutual Release shall be unenforceable, null and void.  Executive may revoke 

 

 

this Mutual Release during those seven (7) days by hand delivering
written notice of revocation to the Company at the address specified in Section 9.7
of the Employment Agreement.

 

SECTION 7.           Challenge.  If Executive violates or challenges the
enforceability of any provisions of the Restrictive Covenants or this Mutual
Release, no further payments, rights or benefits under Section[s] [4.2[[,]
[and] 6 [and 7]] of the Employment Agreement will be due to Executive.

 

SECTION 8.           Miscellaneous.

 

8.1           No Admission of
Liability.  This Mutual Release is
not to be construed as an admission of any violation of any federal, state or
local statute, ordinance or regulation or of any duty owed by the Company to
Executive.  There have been no such
violations, and the Company specifically denies any such violations.

 

8.2           No Reinstatement.  Executive agrees that he or she will not
apply for reinstatement with the Company or seek in any way to be reinstated,
re-employed or hired by the Company in the future.

 

8.3           Successors and
Assigns.  This Mutual Release shall
inure to the benefit of and be binding upon the Company and Executive and their
respective successors, executors, administrators and heirs.  Executive not may make any assignment of this
Mutual Release or any interest herein, by operation of law or otherwise.  The Company may assign this Mutual Release to
any successor to all or substantially all of its assets and business by means
of liquidation, dissolution, merger, consolidation, transfer of assets, or
otherwise.

 

8.4           Severability.  Whenever possible, each provision of this
Mutual Release will be interpreted in such manner as to be effective and valid
under applicable law.  However, if any
provision of this Mutual Release is held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability
will not affect any other provision, and this Mutual Release will be reformed,
construed and enforced as though the invalid, illegal or unenforceable
provision had never been herein contained.

 

8.5           Entire Agreement;
Amendments.  Except as otherwise
provided herein, this Mutual Release contains the entire agreement and
understanding of the parties hereto relating to the subject matter hereof, and
merges and supersedes all prior and contemporaneous discussions, agreements and
understandings of every nature relating subject matter hereof.  This Mutual Release may not be changed or
modified, except by an Agreement in writing signed by each of the parties hereto.

 

8.6           Governing Law.  This Mutual Release shall be governed by, and
enforced in accordance with, the laws of the Commonwealth of Pennsylvania
without regard to the application of the principles of conflicts of laws.

 

8.7           Counterparts and
Facsimiles.  This Mutual Release may
be executed, including execution by facsimile signature, in multiple
counterparts, each of which shall be deemed an original, and all of which
together shall be deemed to be one and the same instrument.

 

[This space left
blank intentionally; signature page follows.]

 

 

IN WITNESS WHEREOF, the
Company has caused this Mutual Release to be executed by its duly authorized
officer, and Executive has executed this Mutual Release, in each case as of the
date first above written.

 

	
   

  	
  NEOSE TECHNOLOGIES,
  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  A. Brian Davis

  
	
   

  	
   

  	
  Senior Vice
  President & Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
  GEORGE VERGIS

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