Document:

EX-10.5

    EXHIBIT
      10.5

     

    SEPARATION
      AGREEMENT

    

    This
      Separation Agreement (“Agreement”)
      is
      made and entered into as of April 4, 2005 (the “Effective
      Date”),
      by
      and among Ronald Brandt (“Executive”),
      Chiral Quest, Inc., a Minnesota corporation (“Company”),
      and
      VioQuest Pharmaceuticals, Inc., a Minnesota corporation (“Parent”).

    

    RECITALS

    

    A.    Executive
      is a member of the Board of Directors of Parent and is employed by Company
      as
      its President and Chief Executive Officer and serves as an officer and member
      of
      the Board of Directors of certain subsidiaries of Parent.

    

    B.    The
      parties have determined to mutually agree regarding the terms and conditions
      of
      Executive’s separation from Company and Parent.

    

    NOW,
      THEREFORE, in consideration of the foregoing, and the terms and conditions
      set
      forth below, the parties agree as follows.

    

    AGREEMENT

    

    1.    Separation
      from Company.
      Executive agrees to, and hereby does, resign as President and Chief Executive
      Officer of the Company, effective as of 11:59 p.m. (Eastern Time) on April
      4,
      2005 (the “Separation
      Date”).
      Executive agrees to, and hereby does, resign from the Board of Directors of
      the
      Company and Parent and from all directorships and officer positions in all
      subsidiaries of the Company, Parent and all other companies or entities where
      he
      is serving as a representative of either the Company or Parent, effective as
      of
      the Effective Date. The parties acknowledge that Executive’s separation from
      Company and Parent is the result of an agreement to separate on mutually
      agreeable terms. Except as expressly provided herein, the Employment Agreement
      between Executive and Company dated June 17, 2004 (the “Employment
      Agreement”),
      is
      terminated by mutual agreement of the parties as of the Effective Date and,
      except as otherwise set forth in this Agreement, has no further force or
      effect.

    

    2.    Benefits
      and Payments.
      Company
      will extend to Executive the following consideration:

    

    (a)    Payments.
      Provided that Executive does not exercise any of his rights to revoke his
      release of discrimination claims pursuant to Section
      9
      hereof
      and otherwise complies with his obligations hereunder, Company agrees that
      as
      separation pay it will pay to Executive an aggregate cash payment equal to
      $105,000 (the “Separation
      Payment”).
      The
      Separation Payment shall be paid in installments over a six month period in
      accordance with the Company’s normal payroll practices commencing on the first
      Company payday following the expiration of Executive’s right to revoke the
      release provided in Section 9 of this Agreement. The parties understand that,
      in
      accordance with the terms of the Employment Agreement, the Company, following
      Executive’s termination of employment in certain circumstances, may off-set any
      severance obligation that would be owing to Executive by actual amounts earned
      by Executive from other employment during the 6-month period following such
      termination. Notwithstanding any such provision in the Employment Agreement,
      Company hereby waives any right it would otherwise have under the Employment
      Agreement to reduce the amount of the Separation Payment. Executive understands
      that the Separation Payment is subject to applicable federal and state income
      tax and FICA withholding.

    

    (b)    No
      Other Remuneration.
      Except
      as otherwise provided in this Agreement, Executive agrees that he is not
      entitled to any remuneration from Company, except as provided in this Agreement.
      This includes back pay, sick pay, vacation pay, bonuses, health, life and
      disability insurance benefits or any other compensation.

     

    
      
         

      

      
        -1-

        
          

        

      

      
         

      

    

    

    (c)    COBRA
      Insurance Coverage.
      In
      addition to such payment, Company and Parent will, for a period of six (6)
      months following the Separation Date, continue to provide Executive with health
      insurance coverage in the same manner as currently provided by Company or Parent
      to Executive. If Executive elects any insurance coverage under COBRA beyond
      such
      6-month period, then Executive shall be responsible for all amounts due for
      such
      insurance coverage under COBRA. 

    

    (d)    Stock
      Options.
      Executive agrees that all stock options previously granted to him by Parent
      shall terminate or expire in accordance with their respective terms as of the
      Separation Date. 

    

    (e)    Out-of-Pocket
      Expenses.
      Executive shall submit to Company, by no later than April 10, 2005, all claims
      for reimbursement of out-of-pocket expenses incurred by Executive through the
      Separation Date in the course of his employment by Company, including all
      appropriate receipts or other documentation evidencing such expenses. Company
      will promptly reimburse Executive for such expenses; provided, that Company
      shall have no obligation to reimburse Executive for any such expenses for which
      Executive has not submitted a reimbursement claim by April 10, 2005, except
      that
      Company shall reimburse Executive for one airline ticket in the amount invoiced
      by Executive. Following the Separation Date, Executive shall have no right
      to
      incur, nor be reimbursed for, any out-of-pocket expense. 

    

    3.    Non-Disparagement.
      Executive will not disparage Company, Parent, their respective affiliated
      businesses, or their respective officers, board members, or employees, and
      Company and Parent will not disparage Executive. In response to any request
      from
      a prospective employer for information relating to Executive, Company and Parent
      will confirm, in writing if requested, Executive’s former title(s), length of
      employment and ending salary and related compensation terms. It is otherwise
      the
      Company’s and Parent’s policy to refrain from providing any reference
      information to prospective employers.

    

    4.    Employment
      Agreement.
      Sections 5 and 6 of the Employment Agreement shall continue to have full force
      and effect; provided,
      however,
      that
      notwithstanding anything to the contrary contained in the Employment Agreement,
      the provisions of paragraph (a) of Section 6 of the Employment Agreement
      (concerning competition by Executive) shall (x) survive only for a period a
      six
      months from the Separation Date. and (y) shall be amended to delete the
      second-to-last sentence and replace it with the following second-to-last
      sentence. 

    

    For
      purposes of this Agreement, the Company shall be deemed to be actively engaged
      in the business of chiral catalytic chemistry, including the development,
      application, and manufacturing of catalysts used to develop and manufacture
      chiral molecules, intermediates, and building blocks and providing consulting
      services in connection therewith, and in the future, in any other business
      in
      which the Company devotes substantive resources to study, develop or pursue
      during the Restricted Period of which business Executive was aware during the
      course of his employment.

    

    The
      Employment Agreement, in every other respect, is hereby terminated.

    

    5.    Records,
      Documents and Property.
      Executive has returned or will return to Company within 3 days hereafter all
      of
      Company’s and Parent’s property (including without limitation computers),
      records (including without limitation computer disks and computer files)
      correspondence, and documents in Executive’s possession or in Executive’s
      control. Company has returned or will return within 3 days hereafter all
      personal effects and possessions of Executive in Company’s possession, and will
      make reasonable efforts to provide copies of Executive’s personal data or
      documents in the Company’s information systems as requested by
      Executive.

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    

    6.    Non-Admission.
      Nothing
      in this Agreement is intended to be, nor will be deemed to be, an admission
      of
      liability by Company, Parent or Executive that they have violated any state
      or
      federal statute, local ordinance, or principal of common law, or that Company,
      Parent or Executive has engaged in any wrongdoing.

    

    7.    Release.
      

    

    In
      consideration of the payments and other benefits of this Agreement, Executive
      hereby fully and finally releases, waives, and otherwise relinquishes any and
      all claims that he has or believes he has against Company or Parent through
      the
      date of this Agreement. Executive will not bring any lawsuits or make any other
      demands against Company or Parent, except as necessary to enforce this Agreement
      or any stock option agreement between Parent and Executive that survives
      Executive’s separation from the Company and Parent. The payments and other
      benefits that Executive will receive under this Agreement is full and fair
      consideration for the release of such claims. Neither Company nor Parent owes
      Executive anything other than what is set forth in this Agreement except that
      Executive is entitled to indemnification and defense of any claims made against
      him as allowable by law and consistent with Parent’s and Company’s By-laws that
      arise out of the period of his employment. The payments and other benefits
      that
      Executive will receive hereunder constitute consideration in excess of that
      to
      which he is entitled.

    

    For
      purposes of this section 7, “Company”
means
      Chiral Quest, Inc., a Minnesota corporation, Parent and any subsidiary or any
      other company related to either the Company or Parent in the past or present,
      and each of them; and past or present officers, directors, agents and employees
      of Company and Parent and any other person who acted on behalf of Company or
      Parent or on instructions from Company or Parent.

    

    The
      claims that Executive is releasing, waiving, and otherwise relinquishing
      hereunder include all of the rights he has now to any relief of any kind from
      Company, including but not limited to, claims for breach of contract; breach
      of
      fiduciary duty; fraud or misrepresentation; rights and claims for age
      discrimination under the Age Discrimination in Employment Act (“ADEA”),
      the
      Americans with Disabilities Act (“ADA”),
      the
      Family and Medical Leave Act (“FMLA”),
      or
      any other federal, state, or local civil rights laws; defamation; infliction
      of
      emotional distress; unlawful or wrongful termination of employment; and any
      other claims for unlawful employment practices.

    

    In
      consideration of the benefits of this Agreement, Company hereby agrees that
      it
      will not bring any lawsuits or press any claims or make any other demands
      against Executive, and otherwise relinquishes and waives any and all claims
      against Executive that are known to the executive officers of Company through
      the date of this Agreement; provided,
      however,
      notwithstanding the foregoing, that Company may bring lawsuits or press claims
      against Executive (a) as necessary to enforce this Agreement or Sections 5
      and 6
      of the Employment Agreement and (b) nothing herein shall be deemed to release
      Executive for claims by Company against Executive for contribution and/or
      indemnification of any action or claim brought by any third party person arising
      out of Employee’s acts or omissions while employed by Company. 

    

    8.    Rights
      Concerning Release.
      Company
      hereby advises Executive to consult with an attorney prior to signing this
      Agreement containing a waiver of claims under the ADEA. 

    

    Executive
      acknowledges that he has had more than twenty-one (21) days to consider his
      waiver of rights and claims of age discrimination under the ADEA. Executive
      understands that, upon signing this Agreement, he may revoke his waiver of
      age
      discrimination rights and claims under the ADEA within seven (7) days
      thereafter, and his waiver of age discrimination rights and claims under the
      ADEA will not be effective or enforceable until this seven-day period has
      expired.

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    

    Executive
      understands that if he revokes his waiver as set forth in this Paragraph 8,
      Company’s obligations hereunder will cease. 

    

    9.    Entire
      Agreement.
      This
      Agreement and the employee benefits plans in which Executive may be a
      participant, constitute the entire Agreement between the parties with respect
      to
      the termination of Executive’s employment relationship with Company and Parent,
      and the parties agree that there were no other inducements or representations
      leading to the negotiation, drafting, and execution of this
      Agreement.

    

    10.    Invalidity.
      In case
      any one or more of the provisions of this Agreement should be invalid, illegal,
      or unenforceable in any respect, the validity, legality, and enforceability
      of
      the remaining provisions contained in this Agreement will not in any way be
      affected or impaired.

    

    11.    Voluntary
      and Knowing Action.
      Executive, Company and Parent acknowledge that they have read and understand
      this Agreement and voluntarily enter into this Agreement.

    

    12.    Heirs
      and Successors.
      This
      Agreement shall inure to the benefit of and shall bind the parties, their heirs,
      successors, representatives, and assigns.

    

    13.    Governing
      Law.
      This
      Agreement shall be construed and interpreted in accordance with the laws of
      the
      state of New Jersey. Each
      of the parties to this Agreement hereby waives their respective rights to a
      trial by jury.

    

    14.    Counterparts.
      This
      Agreement may be executed simultaneously in two or more counterparts, each
      of
      which will be deemed an original, but all of which together will constitute
      one
      and the same instrument.

    

    16.    Notices/Communications.
      Any
      notice, request, demand, or communication permitted, required or given relating
      to this Agreement either by Company to Executive or by Executive to Company
      shall be in writing and, unless otherwise required under the terms of a separate
      agreement or law or regulation shall be deemed to have been given by either
      party to the other when the party by whom such notice or communication is given
      deposits such notice or communication in the U.S. Postal Service mail, postage
      prepaid, certified mail, return receipt requested, properly addressed to the
      party to whom it is directed. Either party may, by notice sent in like manner,
      designate a different address for notices and communications.

    

    
      	
              If
                Sent to Company:

               

              Daniel
                Greenleaf

              VioQuest
                Pharmaceuticals, Inc.

              7
                Deer Park Drive, Suite E

              Monmouth
                Junction, NY 08852

               

              with
                a copy to:

               

              Maslon
                Edelman Borman & Brand, LLP

              90
                South 7th Street, Suite 3300

              Minneapolis,
                MN 55402

              Attn:
                William M. Mower, Esq.

            	
              If
                Sent to Executive:  

               

              Ronald
                Brandt

              10
                Lord William Penn Drive

              Morristown,
                NJ 07960

               

               

              with
                a copy to:

               

              Jon
                Green, Esq.

              Green
                & Savits

              35
                Airport Road, Suite 350

              Morristown,
                NJ 07960

            

    

     

    Signature
      page follows.

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the parties have caused this Agreement to be signed on the
      day
      and year written below.

     

    
      
        	 	
                Chiral
                  Quest, Inc.

              	 
	
              	 	 	 
	 	 	 	 
	
                Dated:
                  June 14, 2005

              	
                By:

              	
                /s/
                  Brian Lenz

              	 
	
              	 	
                Brian
                  Lenz

              	 
	
              	 	
                Chief
                  Financial Officer

              	 
	
              	 	 	 
	
              	 	 	 
	 	
                VioQuest
                  Pharmaceuticals, Inc.

              	 
	
              	 	 	 
	
              	 	 	 
	
                Dated:
                  June 14, 2005

              	
                By:

              	
                /s/
                  Daniel Greenleaf

              	 
	 	 	
                Daniel
                  Greenleaf

              	 
	
              	 	
                President
                  & Chief Executive Officer

              	 
	 	 	 	 
	
              	 	 	 
	 	
                Executive:

              	 
	
              	 	 	 
	 	 	 	 
	
                Dated:
                  May 27, 2005

              	 	
                /s/
                  Ronald Brandt

              	 
	 	 	
                Ronald
                  Brandt

              	 

      

    

     

    
      	 	 	 	 
	
              -5-Exhibit
      10.8

    VioQuest
      Pharmaceuticals, Inc.

    

    February
      15, 2006

    

    Pamela
      Jo
      Harris, M.D., F.A.C.P.

    150
      East
      44th
      Street,
      Apt. 8B

    New
      York,
      NY 10017

    

    Dear
      Dr.
      Harris:

    

    On
      behalf
      of VioQuest Pharmaceuticals, Inc. (the “Company”), I am pleased to extend an
      offer of employment to you in the position of Chief Medical
      Officer.

    

    This
      letter (the “Letter”) shall confirm our understanding as to the terms of your
      employment with the Company.

    

    
      	
            	1.	
              This
                letter is being provided to you as an offer to begin work on March
                15,
                2006 (“Effective Date”) as an employee of the Company and receive an
                annual base salary equal to $250,000, payable on a semi-monthly basis.
                You
                will be eligible for a target bonus of 20% of your base salary based
                on
                personal performance, and an additional 10% based on Company performance.
                For the fiscal year 2006, you will be guaranteed a minimum of 50%
                of your
                annual target bonus of 20%.

            

    

    

    
      	
            	2.	
              You
                shall be entitled to receive stock options to purchase 200,000 shares
                of
                the Company’s Common Stock at a per share price equal to the greater of
                (a) $.75 or (b) 105% of the closing bid price of the Company’s Common
                Stock on the OTC Bulletin Board on the Effective Date (the “Standard
                Options”) (subject to adjustment for splits and/or other capital
                restructuring), such Options to vest as follows:
                

            

    

    

    
      	
            	(a)	
              66,666
                of the Standard Options will vest on the date that is one year from
                the
                Effective Date;

            

    

    
      	
            	(b)	
              66,667
                of the Standard Options will vest on the date that is two years from
                the
                Effective Date; 

            

    

    
      	
            	(c)	
              66,667
                of the Standard Options will vest on the date that is three years
                from the
                Effective Date; 

            

    

    

    You
      shall
      be entitled to receive stock options to purchase an additional 200,000 shares
      (“Performance Based Stock Options,” and together with the Standard Options, the
“Options”) of the Company’s Common Stock at a per share price equal to 105% of
      the closing bid price of the Company’s Common Stock on the OTC Bulletin Board,
      on the Effective Date (subject to adjustment for splits and/or other capital
      restructuring), such Options to vest as follows:

    

    
      	
            	(a)	
              66,666
                of the Performance Based Stock Options shall vest over three years
                beginning on September 30, 2006, as the target date of the successful
                completion of patient enrollment in the final cycle for the Phase
                I
                VQD-001 (SSG trial); 

            

    

    
      	
            	(b)	
              66,667
                of the Performance Based Stock Options shall vest over three years
                beginning on September 30, 2006, as the target date of the successful
                completion of patient enrollment in the final cycle for the Phase
                I
                VQD-002 (Akt Trial) by September 30,
                2006;

            

    

    
      	
            	(c)	
              66,667
                of the Performance Based Stock Options shall vest over three years
                beginning on November 30, 2006, as the target date of the successful
                completion of patient enrollment in the final cycle for the Phase
                I for
                VQD-002 (Leukemia Trial);

            

    

    

    The
      above
      Performance Based Stock Option’s entitlement and milestone schedule will be
      predicated one month from the effective start date with the Company’s CEO to
      assess each of the trials’ viability and forecasted timelines. 

     

    
      VioQuest
        Pharmaceuticals, Inc.

      Princeton
        Corporate Plaza, Suite E

      7
        Deer Park Drive, Monmouth Junction, NJ 08852

      Telephone:
        +1 732 274 0399 Fax: +1 732 274 0402 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    All
      terms
      of the Options will be issued pursuant to the Company’s 2003 Stock Option Plan
      (the “2003 Plan”). Options will only vest if you are an employee of the Company
      on the applicable vesting date. Upon the termination of your employment with
      the
      Company, the unvested portions of all options will be deemed
      expired.

    

    Notwithstanding
      the foregoing vesting terms relating to the In the event the Company completes
      a
      transaction in which it sells the assets or stock of VioQuest Pharmaceuticals,
      Inc., resulting in a Change of Control (as defined in the 2003 Plan), then
      the
      vesting terms of the stock options shall accelerate and all shares of common
      stock shall become immediately exercisable. The specific terms of the Options
      will be governed by a separate stock option agreement(s).

    

    
      	
            	4.	
              You
                shall be reimbursed for all of your pre-approved out-of-pocket expenses
                incurred in connections with the Company’s
                business.

            

    

    

    
      	
            	5.	
              You
                will be entitled to participate in the full benefits package which
                includes medical, dental, life and travel insurances, as well as
                the
                Company’s 401(k) program pursuant to the group policy of the Company.
                

            

    

    

    
      	
            	6.	
              Your
                employment with the Company will be for an indefinite term and nothing
                in
                this Letter modifies your at-will employment relationship with the
                Company. However, if the Company terminates your employment without
                cause,
                you will be eligible for severance pay equal to six months of your
                then
                annualized base salary. Severance will be payable in semi-monthly
                installments over such six-month period, in accordance with the Company’s
                normal payroll practices in effect at such time. Severance will only
                be
                paid, however, if you execute a separate severance and release agreement
                that the Company would prepare. You may terminate your employment
                with the
                Company, for any reason, upon 60 days
                notice.

            

    

    

    
      	
            	7.	
              You
                shall receive 15 business days as vacation
                days.

            

    

    

    
      	
            	8.	
              The
                Company will provide you with a housing allowance reimbursement up
                to
                $10,000 for the first six months upon joining the Company. After
                the six
                months have expired, or during that time, the Company will provide
                housing
                relocation assistance up to $10,000 net of taxes. The housing allowance
                for $10,000 and housing relocation for $10,000 by the Company will
                be
                reimbursed to you once an approved expense report with accompanying
                receipts has been submitted by you.

            

    

    

    
      	
            	9.	
              Your
                title at the Company shall be Chief Medical Officer, and you shall
                be
                principally responsible for successfully designing, implementing,
                and
                reporting the Company’s clinical trials, and to ensure the clinical trials
                meet the highest standards of excellence for ethics, scientific merit
                and
                regulatory compliance, as well as satisfy corporate goals and meet
                timeliness for approval. You will report to the President and
                CEO.

            

    

    

    
      	
            	10.	
              You
                represent to the Company that your employment with the Company will
                not
                constitute a breach or other violation of any agreement or contract
                under
                which you are bound or any other obligation that you owe to any third
                party. You further represent that no approvals or consents are required
                in
                order for you to be employed by the Company as contemplated by this
                letter.

            

    

     

    
      	
            	11.	
              Your
                employment with the Company will also be subject to our established
                policies and procedures, including the Company’s code of ethics and
                employee manual. In particular, you acknowledge the provisions of
                the
                employee manual set forth under the caption “Confidentiality and
                Intellectual Property Assignment Agreement” and agree that you will be
                bound by the terms of such section (as well as the other provisions
                of the
                employee manual). 

            

    

     

    
      	
            	12.	
              You
                agree during your term of employment with the Company and for twelve
                months following the end of your employment, you will not solicit
                the
                business of, interfere with, disrupt, or attempt to disrupt, the
                Company's
                business relationship with, any of its clients or investors, or solicit
                any of the Company's employees. 

            

    

     

    
      	
            	13.	
              You
                further agree during your term of employment with the Company and
                for six
                months following the end of your employment, you will not engage
                in any
                business activity without the Company’s consent, in the areas of
                phosphorylated Akt, protein tyrosine phosphatases, HCV and HBV, in
                addition to other proprietary information developed by the Company
                during
                your term of employment. 

            

    

    
       

      
        VioQuest
          Pharmaceuticals, Inc.

        Princeton
          Corporate Plaza, Suite E

        7
          Deer Park Drive, Monmouth Junction, NJ 08852

        Telephone:
          +1 732 274 0399 Fax: +1 732 274 0402 

         

      

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    
      
        
          	
                	
                  14.

                	
                  The
                    Company will reimburse you for, industry related journals, books
                    and
                    subscriptions, in an amount not to exceed $1,500.
                    

                

        

      

    

    

    
      
        	
              	15.	
                The
                  Company will reimburse you for one active medical license once
                  approved by
                  the Company’s CEO.

              

      

    

    

    
      
        	
              	16.	
                The
                  Company will grant you one week of continuing medical education
                  (CME)
                  classes or other CME activities/year. The cost of these classes,
                  travel to
                  and from these classes and reasonable accommodations will be reimbursed
                  by
                  the Company once approved by the CEO, in addition to providing
                  an expense
                  report and accompanying
                  receipts.

              

      

    

    

    
      
        	
              	17.	
                This
                  offer letter is contingent upon the satisfactory completion of
                  your
                  references and background
                  checks.

              

      

    

    

    
      
        	
              	18.	
                This
                  offer letter is contingent upon the approval of the Compensation
                  Committee
                  of the Board of Directors.

              

      

    

    

    A
      timely
      response on your behalf would be appreciated by the Company. 

    

    This
      offer for employment is valid until February 10, 2006. If the Company does
      not
      receive a response by you as of this date, the offer will expire.

    

    If
      you
      find the foregoing arrangement acceptable and believe that the foregoing
      accurately summarizes our understanding, please kindly so indicate by executing
      and dating the attached copy of this letter in the space provided and returning
      a copy to me.

     

    
      	 	 	 
	 	Very
              truly yours,
	 	 
	 	VioQuest
              Pharmaceuticals, Inc.
	 	 
	 	 
	 	/s/ Daniel Greenleaf
	 	
              
Daniel
              Greenleaf
	 	President and
              CEO

    

     

       

    READ
      AND
      ACCEPTED:

    

    

    /s/
      Pamela Jo
      Harris                          

    Pamela
      Jo
      Harris, M.D., F.A.C.P.

    
       

      
        VioQuest
          Pharmaceuticals, Inc.

        Princeton
          Corporate Plaza, Suite E

        7
          Deer Park Drive, Monmouth Junction, NJ 08852

        Telephone:
          +1 732 274 0399 Fax: +1 732 274 0402 

         

      

    

    
      
        
        

      

      
        3

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