Document:

ex10-4.htm

    Exhibit
      10.4

     

    SECURITY
      AGREEMENT

     

     

    (Patent)

     

    THIS
      SECURITY AGREEMENT
      (PATENT) (“Agreement”),
      is
      entered into and made effective as of January 3, 2008, by and between IR BIOSCIENCES HOLDINGS,
      INC.,
a Delaware corporation with its principal place of business located
      at
      8767 E. Via De Ventura, Suite 190, Scottsdale, AZ 85258 (the “Parent”), and the
      each subsidiary of the Parent listed on Schedule I attached hereto (each a
      “Subsidiary,”
and collectively
      and together with the Parent, the “Company”), in favor
      of the YA GLOBAL INVESTMENTS,
      L.P. (the “Secured
      Party”).

     

     

    WITNESETH:

     

    WHEREAS,
in
      connection with
      the Securities Purchase Agreement by and among the Parent and the Secured Party
      of even date herewith (the “Securities
      Purchase
      Agreement”), the Parent has agreed, upon the terms and subject to the
      conditions of the Securities Purchase Agreement, to issue to the Secured Party
      (i) an aggregate original principal amount of up to $3,000,000 of senior secured
      convertible debentures (the “Convertible
      Debentures”), which shall be convertible into shares of the Parent’s
      Common Stock (the “Conversion Shares”);
      and (ii) warrants (the “Warrants”) to be
      exercisable to acquire additional shares of Common Stock (the “Warrants Shares”)
      initially in that number of shares of Common Stock set forth in the Securities
      Purchase Agreement;

     

    WHEREAS,
to
      induce the Secured
      Party to purchase the Convertible Debentures and enter into the Securities
      Purchase Agreement and the documents entered into in connection therewith,
      (collectively referred to as the “Transaction
      Documents”), each Company hereby grants to the Secured Party a security
      interest, in and to the Patent Collateral (as defined below) to secure all
      of
      the Obligations (as defined below).

     

    WHEREAS,
      in connection with
      the Securities Purchase Agreement, each Company has agreed to provide the
      Secured Party a general security interest in the Pledged Property (as this
      term
      is defined in the Security Agreement by and between each Company and the Secured
      Party, dated January 3, 2008 (together with all amendments, supplements,
      restatements and other modifications, if any, from time to time made thereto,
      the “Security
      Agreement”);

     

    WHEREAS,
      each Company has duly
      authorized the execution, delivery and performance of this
      Agreement;

     

    NOW
      THEREFORE, for good and
      valuable consideration, the receipt of which is hereby acknowledged, the Company
      agrees as follows:

     

    SECTION
      1. Definitions.  Unless
      otherwise defined herein otherwise requires, terms used in this Agreement,
      including its preamble and recitals, have the meanings provided in the
      Securities Purchase Agreement.

     

    (a) “Obligations”
shall
      have the
      meaning assigned to it in the Security Agreement.

     

    SECTION
      2. Grant
      of Security
      Interest.  For good and valuable consideration, the receipt and
      sufficiency of which are hereby acknowledged, to secure the payment and
      performance of all of the Obligations of the Company, the Company does hereby
      mortgage, pledge and hypothecate to the Secured Party and grant to the Secured
      Party a security interest in all of the following property (the “Patent Collateral”), now owned
      and existing:

     

    (a) all
      letters patent and applications for letters patent throughout the world,
      including all patent applications in preparation for filing anywhere in the
      world and including each patent and patent application referred to in Schedule A
      hereto;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b) all
      reissues, divisions, continuations, continuations-in-part, extensions, renewals
      and reexaminations of any of the items described in clause (a);

     

    (c) all
      patent licenses and other agreements providing the Company with the right to
      use
      any of the items of the type referred to in clauses (a) and (b), including
      each
      patent license referred to in Schedule A
      hereto;

     

    (d) the
      right
      to sue third parties for past, present or future infringements of any Patent
      Collateral described in clauses (a) and (b) and, to the extent applicable,
      clause (c); and

     

    (e) all
      proceeds of, and rights associated with, the foregoing, (including license
      royalties and proceeds of infringement suits), and all rights corresponding
      thereto throughout the world.

     

    SECTION
      3. Security
      Agreement.  This Agreement has been executed and delivered by
      each Company for the purpose of recording the security interest of the Secured
      Party in the Patent Collateral relating to patents referred to in Schedule A with the
      United States Patent and Trade Marks Office, to the extent it may be so
      registered therein.  The security interest granted hereby has been
      granted as a supplement to, and not in limitation of, the security interest
      granted to the Secured Party under the Security Agreement.  The
      Security Agreement (and all rights and remedies of the Secured Party thereunder)
      shall remain in full force and effect in accordance with its terms.

     

    SECTION
      4. Release
      of Security
      Interest.  Upon payment in full of all Obligations the Secured
      Party shall, at the Company’s expense, execute and deliver to the Company all
      instruments and other documents as may be necessary or proper to release the
      lien on any security interest in the Patent Collateral which has been granted
      hereunder.

     

    SECTION
      5. Acknowledgement.  The
      Company does hereby further acknowledge and affirm that the rights and remedies
      of the Secured Party with respect to the security interest in the Patent
      Collateral granted hereby are more fully set forth in the Security Agreement,
      the terms and provisions of which (including the remedies provided for therein)
      are incorporated by references herein as if fully set forth herein.

     

    SECTION
      6. Securities
      Purchase
      Agreement.  Notwithstanding any other term or provision hereof,
      in the event that any provisions hereof contradict and are incapable of being
      construed in conjunction with the provisions of the Securities Purchase
      Agreement, the provisions of the Securities Purchase Agreement shall take
      precedence over those contained herein and, in particular, if any act of the
      Company is expressly permitted under the Securities Purchase Agreement but
      is
      prohibited hereunder, any such act shall be permitted hereunder and any
      encumbrance expressly permitted under the Securities Purchase Agreement to
      exist
      or to remain outstanding shall be permitted hereunder and thereunder. This
      instrument, document or agreement may be sold, assigned or transferred by the
      Agent in accordance with the terms of the Securities Purchase
      Agreement.

     

    SECTION
      7. Counterparts.  This
      Agreement may be executed by the parties hereto in several counterparts, each
      of
      which shall be deemed to be an original and all of which shall constitute
      together but one and the same agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

     

    
      	 	
              IR
                Biosciences Holdings, Inc.

            
	 	 
	 	
              By:      /s/
                Michael
                Wilhelm                                                

            
	 	
              Name:       Michael
                Wilhelm

            
	 	
              Title:        
                President and Chief Executive Officer

            
	 	 
	 	 

    

    

    

    STATE
      OF ____________________)

    )
      SS:

    COUNTY
      OF __________________)

    

    BEFORE
      ME, a Notary Public in
      and for said County and State, personally appeared the above-named Michael
      Wilhelm who acknowledged that he/she did sign the foregoing agreement and that
      the same is his/her free act and deed.

     

    IN
      TESTIMONY WHEREOF, I have
      hereunto set my hand an official seal at __________________,
      ____________________, this ___ day of __________, 2007.

     

    
      	 	/s/
              Michelle R.
              Laroche                                                    
              
	 	
              Notary
                Public

            

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

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

     

    

    
      	 	
              COMPANY:

            
	 	
              ImmuneRegen
                BioSciences, Inc.

            
	 	 
	 	
              By:     /s/
                Michael
                Wilhelm                                  

            
	 	
              Name:      Michael
                Wilhelm

            
	 	
              Title:       
                President and Chief Executive Officer

            
	 	 

    

    

     

    STATE
      OF ____________________)

    )
      SS:

    COUNTY
      OF __________________)

    

    BEFORE
      ME, a Notary Public in
      and for said County and State, personally appeared the above-named Michael
      Wilhelm who acknowledged that he/she did sign the foregoing agreement and that
      the same is his/her free act and deed.

     

    IN
      TESTIMONY WHEREOF, I have
      hereunto set my hand an official seal at __________________,
      ____________________, this ___ day of __________, 2007.

     

    
      	 	/s/
              Michelle R.
              Laroche                        
              
	 	
              Notary
                Public

            

    

    

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

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

     

    

    
      	 	 
	 	
              SECURED
                PARTY:

            
	 	
              YA
                GLOBAL INVESTMENTS, L.P.

            
	 	 
	 	
              By:      Yorkville
                Advisors, LLC

            
	 	
              Its:      
                Investment Manager

            
	 	 
	 	
              By:       /s/
                Mark
                Angelo                                            

            
	 	
              Name:       
                Mark Angelo

            
	 	
              Title:          Portfolio
                Manager

            
	 	 

    

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      I

    LEGAL
      NAMES; ORGANIZATIONAL
      IDENTIFICATION NUMBERS; STATES OF ORGANIZATION

     

    
      
        	
                 Company’s
                  Name

              	
                State
                  of Organization

              	
                Employer
                  ID

              	
                Organizational
                  ID

              
	
                IR
                  Biosciences Holdings, Inc.

              	
                Delaware

              	
                13-3301889 

                
                

              	
                
                

              
	
                ImmuneRegen
                  BioSciences, Inc.

              	
                Delaware

              	
                11-3666487

              	 

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    SCHEDULE
      A

    

    US
      PATENTS AND
      APPLICATIONS

    

    
      

      
        
          	
                  TITLE

                	
                  COUNTRY

                	
                  FILING
                    DATE

                	
                  APPLICATION
                    NUMBER

                	
                  DATE
                    ISSUED

                	
                  PATENT
NUMBER 

                
	
                  
                  

                  Substance
                    P Treatment for
                    Immunostimulation

                	
                  United
                    States of
                    America

                	
                  23-Feb-98

                	
                  09/028003

                	
                  7-Dec-99

                	
                  5998376

                
	
                  Substance
                    P Treatment for
                    Immunostimulation

                	
                  United
                    States of
                    America

                	
                  28-Mar-97

                	
                  08/829445

                	
                  31-Aug-99

                	
                  5945508

                
	
                  Substance
                    P Treatment for
                    Immunostimulation

                	
                  Australia

                	
                  8-Jul-97

                	
                  40464/97

                	
                  22-Nov-01

                	
                  737201

                
	
                  Substance
                    P Treatment for
                    Immunostimulation

                	
                  Canada

                	
                  8-Jul-97

                	
                  2261885

                	 	 
	
                  Substance
                    P Treatment for
                    Immunostimulation

                	
                  Switzerland

                	
                  8-Jul-97

                	
                  97938049

                	
                  24-Mar-04

                	
                  957930

                
	
                  Substance
                    P Treatment for
                    Immunostimulation

                	
                  Germany

                	
                  8-Jul-97

                	
                  97938049

                	
                  24-Mar-04

                	
                  957930

                
	
                  Substance
                    P Treatment for
                    Immunostimulation

                	
                  France

                	
                  8-Jul-97

                	
                  97938049

                	
                  24-Mar-04

                	
                  957930

                
	
                  Substance
                    P Treatment for
                    Immunostimulation

                	
                  Spain

                	
                  8-Jul-97

                	
                  97938049

                	
                  24-Mar-04

                	
                  957930

                
	
                  Substance
                    P Treatment for
                    Immunostimulation

                	
                  United
                    Kingdom

                	
                  8-Jul-97

                	
                  97938049

                	
                  24-Mar-04

                	
                  957930

                
	
                  Substance
                    P Treatment for
                    Immunostimulation

                	
                  Ireland

                	
                  8-Jul-97

                	
                  97938049

                	
                  24-Mar-04

                	
                  957930

                
	
                  Substance
                    P Treatment for
                    Immunostimulation

                	
                  Italy

                	
                  8-Jul-97

                	
                  97938049

                	
                  24-Mar-04

                	
                  957930

                
	
                  Substance
                    P Treatment for
                    Immunostimulation

                	
                  Liechtenstein

                	
                  8-Jul-97

                	
                  97938049

                	
                  24-Mar-04

                	
                  957930

                
	
                  Substance
                    P Treatment for
                    Immunostimulation

                	
                  Monaco

                	
                  8-Jul-97

                	
                  97938049

                	
                  24-Mar-04

                	
                  957930

                
	
                  Amelioration
                    of Effects of
                    Cigarette Smoke

                	
                  United
                    States of
                    America

                	
                  22-Aug-03

                	
                  10/645,839

                	 	 
	
                  Amelioration
                    of Effects of
                    Cigarette Smoke

                	
                  Singapore

                	
                  22-Aug-03

                	
                  200501072-3

                	 	 
	
                  Amelioration
                    of Effects of
                    Cigarette Smoke

                	
                  China

                	
                  22-Aug-03

                	
                  3820184.4

                	 	 
	
                  Amelioration
                    of Effects of
                    Cigarette Smoke

                	
                  Japan

                	
                  22-Aug-03

                	
                  2004-532943

                	 	 
	
                  Amelioration
                    of Effects of
                    Cigarette Smoke

                	
                  European
                    Patent
                    Office

                	
                  22-Aug-03

                	
                  3791722.6

                	 	 
	
                  Amelioration
                    of Effects of
                    Cigarette Smoke

                	
                  Canada

                	
                  22-Aug-03

                	
                  2496447

                	 	 
	
                  Amelioration
                    of Effects of
                    Cigarette Smoke

                	
                  Vietnam

                	
                  22-Aug-03

                	
                  1-2005-00215

                	 	 
	
                  Acute
                    Respiratory
                    Syndromes

                	
                  Hong
                    Kong

                	
                  22-Jun-06

                	
                  6107144.4

                	 	 
	
                  Acute
                    Respiratory
                    Syndromes

                	
                  European
                    Patent
                    Office

                	
                  14-Apr-04

                	
                  4759500.4

                	 	 
	
                  Acute
                    Respiratory
                    Syndromes

                	
                  United
                    States of
                    America

                	
                  14-Oct-05

                	
                  10/553,232

                	 	 
	
                  Acute
                    Respiratory
                    Syndromes

                	
                  Singapore

                	
                  14-Apr-04

                	
                  200507608-8

                	 	 
	
                  Use
                    of Substance P or its Analogs
                    for the Manufacture of Medicaments for Treating or Protecting
                    SARS or
                    ARDS

                	
                  Vietnam

                	
                  14-Apr-04

                	
                  1-2005-01560

                	 	 
	
                  Prevention
                    of Respiratory
                    Infections in Fowl

                	
                  European
                    Patent
                    Office

                	
                  23-Nov-05

                	
                  5849894

                	 	 
	
                  Prevention
                    of Respiratory
                    Infections in Fowl

                	
                  Singapore

                	
                  27-Jan-05

                	
                  200500467-6

                	 	 
	
                  Prevention
                    of Respiratory
                    Infections in Fowl

                	
                  Thailand

                	
                  11-Feb-05

                	
                  97659

                	 	 
	
                  Prevention
                    of Respiratory
                    Infections in Fowl

                	
                  Patent
                    Cooperation
                    Treaty

                	
                  23-Nov-05

                	
                  PCT/US05/42601

                	 	 
	
                  Prevention
                    of Respiratory
                    Infections in Fowl

                	
                  United
                    States of
                    America

                	
                  3-July-07

                	
                  11/795,044

                	 	 
	
                  Prevention
                    of Respiratory
                    Infections in Fowl

                	
                  Australia

                	
                  23-Nov-05

                	
                  2005323304

                	 	 
	
                  Prevention
                    of Respiratory
                    Infections in Fowl

                	
                  Japan

                	
                  23-Nov-05

                	
                  2007-549376

                	 	 
	
                  Prevention
                    of Respiratory
                    Infections in Fowl

                	
                  Canada

                	
                  23-Nov-05

                	
                  2,593,232

                	 	 
	
                  Prevention
                    of Respiratory
                    Infections in Fowl

                	
                  Vietnam

                	
                  5-May-05

                	
                  1-2005-00599

                	 	 
	
                  Treatment
                    of Skin
                    Diseases

                	
                  European
                    Patent
                    Office

                	
                  15-Dec-05

                	
                  5854144.2

                	 	 
	
                  Treatment
                    of Skin
                    Diseases

                	
                  Singapore

                	
                  27-Jan-05

                	
                  200500466-8

                	 	 
	
                  Treatment
                    of Skin
                    Diseases

                	
                  Vietnam

                	
                  5-May-05

                	
                  1-2005-00598

                	 	 
	
                  Treatment
                    of Skin
                    Diseases

                	
                  Thailand

                	
                  25-Feb-05

                	
                  98080

                	 	 
	
                  Treatment
                    of Skin
                    Diseases

                	
                  Canada

                	
                  15-Dec-05

                	
                  2594517

                	 	 
	
                  Treatment
                    of Skin
                    Diseases

                	
                  Australia

                	
                  15-Dec-05

                	
                  2005324417

                	 	 
	
                  Treatment
                    of Skin
                    Diseases

                	
                  Patent
                    Cooperation
                    Treaty

                	
                  15-Dec-05

                	
                  PCT/US05/45369

                	 	 
	
                  Method
                    to Promote Wound
                    Healing

                	
                  European
                    Patent
                    Office

                	
                  25-Oct-05

                	
                  5813067.5

                	 	 

           

           

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

           

          	
                  Method
                    to Promote Wound
                    Healing

                	
                  Australia

                	
                  25-Oct-05

                	
                  2005299341

                	 	 
	
                  Method
                    to Promote Wound
                    Healing

                	
                  Japan

                	
                  25-Oct-05

                	
                  2007-539081

                	 	 
	
                  Method
                    to Promote Wound
                    Healing

                	
                  Canada

                	
                  25-Oct-05

                	
                  2585265

                	 	 
	
                  Method
                    to Promote Wound
                    Healing

                	
                  Patent
                    Cooperation
                    Treaty

                	
                  25-Oct-05

                	
                  PCT/US05/38646

                	 	 
	
                  Method
                    to Promote Wound
                    Healing

                	
                  United
                    States of
                    America

                	
                  27-Apr-07

                	
                  11/666,474

                	 	 
	
                  Treatment
                    for
                    Asthma

                	
                  Patent
                    Cooperation
                    Treaty

                	
                  31-Mar-06

                	
                  PCT/US06/011833

                	 	 
	
                  Treatment
                    for
                    Asthma

                	
                  European
                    Patent
                    Office

                	
                  31-Mar-06

                	
                  6748998.9

                	 	 
	
                  Treatment
                    for
                    Asthma

                	
                  Japan

                	
                  31-Mar-06

                	
                  tba

                	 	 
	
                  Treatment
                    for
                    Asthma

                	
                  Australia

                	
                  31-Mar-06

                	
                  tba

                	 	 
	
                  Treatment
                    for
                    Asthma

                	
                  Canada

                	
                  31-Mar-06

                	
                  tba

                	 	 
	
                  Treatment
                    for
                    Asthma

                	
                  Singapore

                	
                  24-Jun-05

                	
                  200504104-1

                	 	 
	
                  Treatment
                    for
                    Asthma

                	
                  United
                    States of
                    America

                	
                  25-Sep-07

                	
                  11/887,105

                	 	 
	
                  Stimulation
                    of Hair
                    Growth

                	
                  United
                    States of
                    America

                	
                  20-Jun-05

                	
                  10/539,734

                	 	 
	
                  Stimulation
                    of Hair
                    Growth

                	
                  Patent
                    Cooperation
                    Treaty

                	
                  18-Dec-03

                	
                  PCT/US03/40259

                	 	 
	
                  Inducing
                    and Maintaining Hair
                    Color

                	
                  United
                    States of
                    America

                	
                  25-Oct-06

                	
                  11/587,594

                	 	 
	
                  Inducing
                    and Maintaining Hair
                    Color

                	
                  Patent
                    Cooperation
                    Treaty

                	
                  18-Apr-05

                	
                  PCT/US05/13112

                	 	 
	
                  Anti-Aging
                    Effects of Substance
                    P

                	
                  Patent
                    Cooperation
                    Treaty

                	
                  18-Apr-05

                	
                  PCT/US05/13113

                	 	 
	
                  Anti-Aging
                    Effects of Substance
                    P

                	
                  Japan

                	
                  18-Apr-05

                	
                  2007-509540

                	 	 
	
                  Anti-Aging
                    Effects of Substance
                    P

                	
                  Canada

                	
                  18-Apr-05

                	
                  tba

                	 	 
	
                  Anti-Aging
                    Effects of Substance
                    P

                	
                  United
                    States of
                    America

                	
                  25-Oct-06

                	
                  PCT/US05/13113

                	 	 
	
                  Anti-Aging
                    Effects of Substance
                    P

                	
                  European
                    Patent
                    Office

                	
                  18-Apr-05

                	
                  5755488.3

                	 	 
	
                  Anti-Aging
                    Effects of Substance
                    P

                	
                  China

                	
                  18-Apr-05

                	
                  2005-80016786.5

                	 	 
	
                  Anti-Aging
                    Effects of Substance
                    P

                	
                  Australia

                	
                  18-Apr-05

                	
                  2005240026

                	 	 
	
                  Method
                    to Reduce the Risk and/or
                    Severity of Anthrax Infection

                	
                  Patent
                    Cooperation
                    Treaty

                	
                  6-Mar-07

                  
                  

                	
                  PCT/US07/05668

                  
                  

                	 	 
	
                  Method
                    to Reduce the Risk and/or
                    Severity of Anthrax Infection

                	
                  United
                    States of
                    America

                  
                  

                	
                  2-Feb
                    07

                	
                  60/889,035

                	 	 
	
                  Prophylactic
                    and Therapeutic
                    Treatment of Mammals
                    for Avian
                    InfluenzaVirus
                    Infection

                	
                  Patent
                    Cooperation
                    Treaty

                	
                  14-Aug-07

                  
                  

                	
                  PCT/US07/017953

                  
                  

                	 	 
	
                  Prophylactic
                    and Therapeutic
                    Treatment of Mammals
                    for Avian
                    InfluenzaVirus
                    Infection

                	
                  United
                    States of
                    America

                  
                  

                	
                  1-May-07

                	
                  60/915,373

                	 	 
	
                  Prophylactic
                    and Therapeutic
                    Treatment of Mammals
                    for Avian
                    InfluenzaVirus
                    Infection

                	
                  United
                    States of
                    America

                  
                  

                	
                  15-Aug-06

                	
                  60/837,635

                	 	 
	
                  Prophylactic
                    and Therapeutic
                    Treatment of Mammals
                    for Avian
                    InfluenzaVirus
                    Infection

                	
                  United
                    States of
                    America

                  
                  

                	
                  9-Oct-06

                	
                  60/828,728

                	 	 
	
                  Prophylactic
                    and Therapeutic
                    Treatment of Mammals
                    for Avian
                    InfluenzaVirus
                    Infection

                	
                  United
                    States of
                    America

                  
                  

                	
                  22-Nov-06

                	
                  60/866,901

                	 	 
	
                  Method
                    to Treat Blood Cell
                    Depletion

                	
                  Patent
                    Cooperation
                    Treaty

                	
                  30-May-07

                	
                  PCT/US
                    tba

                	 	 
	
                  Method
                    to Treat Blood Cell
                    Depletion, In Conditions Such as MDS

                	
                  United
                    States of
                    America

                  
                  

                	
                  27-Jul-07

                	
                  60/952,394

                	 	 
	
                  Method
                    to Stimulates Blood Cells
                    Regeneration Following Non-Lethal Radiation
                    Exposure

                	
                  United
                    States of
                    America

                  
                  

                	
                  30-Jul-07

                	
                  0/952,691

                   

                	 	 
	
                  Substance
                    P and Analogs
                    Thereofas aVaccine  Adjuvant

                	
                  United
                    States of
                    America

                	
                  18-Jan-07

                	
                  60/885,562

                	 	 
	
                  Substance
                    P as an Adjuvant

                	
                  United
                    States of
                    America

                	
                  14-Aug-07

                	
                  60/955,712

                	 	 
	
                  Use
                    of Homspera
                    (substance P
                    analog) as an
                    Adjuvant

                	
                  United
                    States of
                    America

                	
                  1-May-07

                	
                  60/915,358

                	 	 
	
                  Methods
                    of Using Substance P and
                    Analogs for Ameliorating Adverse Effects of Drugs

                	
                  United
                    States of
                    America

                	
                  20-Aug-07

                  
                  

                	
                  60/965,580

                  
                  

                  
                  

                	 	 
	
                  Substance
                    P Analogs
                    as PARP
                    Inhibitors

                	
                  United
                    States of
                    America

                  
                  

                	
                  29-Aug-07

                  
                  

                	
                  60/966,948

                	 	 
	
                  Substance
                    P Analogs
                    to Promote Cell
                    Differentiation

                	
                  United
                    States of
                    America

                  
                  

                	
                  2-Oct-07

                  
                  

                  
                  

                	
                  60/997,314

                	 	 
	
                  Methods
                    of Stimulating the
                    Proliferation and/or Differentiation of Stem Cells withSubstance
                    P, or an
                    

                  Analog

                	
                  United
                    States of
                    America

                  
                  

                	
                  26-Oct-07

                	
                  60/983,012

                  
                  

                	 	 
	
                  Substance
                    P Analogs
                    to Stimulate Fibroblast
                    Growth

                	
                  United
                    States of
                    America

                  
                  

                	
                  12-Oct-07

                  
                  

                	
                  60/979,769

                  
                  

                	 	 
	
                  Methods
                    and Compositions for
                    Improving the Texture or Appearance of Skin with Substance P
                    or an Analog
                    Thereof

                	
                  United
                    States of
                    America

                  
                  

                	
                  21-Dec-07

                	
                  61/016,245

                	 	 
	
                  ELISA
                    for Substance P
                    Analogs

                	
                  United
                    States of
                    America

                  
                  

                	
                  tbaO'Hara Separation Agreement

 Exhibit 10.1 
 

 
 January 4, 2008 
 Ms. Ellen O. O’Hara 
  

	Re:	Separation Agreement and Release 

 Dear Ellen: 
 This letter constitutes the Separation Agreement and Release (the “Agreement”) between you and EFJohnson Company, and its parent, subsidiary and/or affiliated
companies, (collectively referred to as the “Company”), and sets forth the terms of your transitional duties and separation from employment with the Company. 
 1. Separation Date. Today will be the last day of your employment with the Company (“Separation Date”). You acknowledge and agree that, except as provided herein, this Agreement terminates the
Employment Agreement between you and the Company which was entered January 6, 2005 (the “Employment Agreement”), and satisfies all notice requirements under such Employment Agreement. 
 2. Severance Pay. If you enter into this Agreement and on or within twenty-one (21) days after the Separation Date you return to the Company
this signed Agreement, and allow it to become effective by not revoking it under paragraph 9 herein, the Company will pay you Severance Pay equal to twelve (12) months base salary in the total gross amount of $260,000. Such payments will be
made on the Company’s regularly scheduled paydays for twelve months and are subject to standard payroll deductions and withholdings. These payments will begin on the first payroll date following the Effective Date of this Agreement and will
continue for twelve (12) months thereafter (the “Severance Period”). You agree that you are not otherwise entitled to this Severance Pay. 
 Notwithstanding the foregoing, the Company’s obligation to pay the Severance Pay shall be offset by any other source of earned income during the Severance Period, whether through employment, self-employment, barter, consulting or
otherwise. You shall have an affirmative obligation to report any such other source of earned income to the Company throughout the Severance Period on a monthly basis to Michael Gamble, VP Administration. 

 During the Severance Period, you agree to fully cooperate with the Company in all matters relating to the transition of
your work and responsibilities on behalf of the Company, including, but not limited to, any business relationships, and the orderly transfer of your institutional knowledge to such other persons as may be designated by the Company. You also agree to
be available by telephone during reasonable business hours and will respond within a reasonable time to any inquiries or requests from the Company. 
 3. Accrued Salary and Vacation. By signing this Agreement, you agree that the Company has paid you all accrued salary, benefits or other type of remuneration, through the Separation Date, subject to standard payroll deductions and
withholdings with the exception of your final paycheck and accrued, unused vacation pay. You acknowledge that, except as expressly provided in this Agreement, you will not receive any additional compensation (including any base salary, bonus or
commissions), stock options, severance or benefits after the Separation Date, with the sole exception of any benefit in which you have a vested right pursuant to any written ERISA-qualified benefit plan (e.g., 401(k) plan). 
 4. Health Insurance. During the Severance Period, you will be provided such coverage as you had at the time of the Separation Date (with the
exception of Long Term Care, 401(k), Life Insurance, Short Term Disability Insurance and Long Term Disability Insurance), for yourself and/or any dependents, at the same premium rate as current employees, and the Company will pay the difference.
Thereafter, you may continue such benefits entirely at your own expense. 
 5. Expense Reimbursements and Expenses Charged to Company
Credit Card(s). You agree that, within ten (10) days after the Separation Date, you will submit your final documented expense reimbursement statement reflecting all business expenses you incurred through the Separation Date, if any, for
which you seek reimbursement. The Company will reimburse you for these business expenses pursuant to its policies and reasonable business practices. In addition, you agree that if the Company, following notice to you and opportunity for you to
respond, makes a reasonable, good faith determination that certain of your charges made on the Company credit card at any time during your use of such Company credit card were inappropriate, improper, or were not reasonably incurred on behalf of the
Company, then the Company shall offset such amounts against all compensation you will receive pursuant to this Agreement. 
 6.
Confidential Information/Non-Compete Obligations. You acknowledge and reaffirm your continuing obligations under Paragraphs 2 and 3 of your Employment Agreement entered January 6, 2005, including but not limited to your obligation not to
use or disclose any confidential or proprietary information of the Company and not to compete with the Company or solicit the customers or suppliers of the Company for a period of 12 months. You are obligated to abide by the terms of these
agreements whether or not you accept this Agreement. You further acknowledge your obligation under paragraphs 16 and 17 of the Employment Agreement in advance of accepting any competitive employment. You hereby acknowledge that you have
returned all Company property to the Company and that you are not in possession of any of the Company’s proprietary materials or copies thereof, in accordance with paragraph 15 of the Employment Agreement. 

 7. Confidentiality. The provisions of this Agreement will be held in strictest confidence by you
and the Company and will not be publicized or disclosed in any manner whatsoever; provided, however, that: (a) you may disclose this Agreement in confidence to your immediate family; (b) the parties may disclose this Agreement in
confidence to their respective attorneys, accountants, auditors, tax preparers, and financial advisors; (c) the Company may disclose this Agreement to fulfill standard or legally required corporate reporting or disclosure requirements; and
(d) the parties may disclose this Agreement insofar as such disclosure may be necessary to enforce its terms or as otherwise required by law. In particular, and without limitation, you agree not to disclose the terms of this Agreement to any
current or former employee or independent contractor of the Company. You further agree both to immediately notify the Company upon receipt of any court order, subpoena, or other legal process that seeks or might require your cooperation or your
disclosure or production of the existence or terms of this Agreement, and to furnish to the Company, within three (3) business days of its receipt, a copy of such court order, subpoena or other legal process. 
 8. Release of Claims. Except with respect to obligations undertaken in this Agreement, in exchange for the consideration under this
Agreement to which you would not otherwise be entitled, you hereby generally and completely release the Company and its directors, officers, employees, shareholders, partners, agents, attorneys, predecessors, successors, parent and subsidiary
entities, insurers, affiliates, and assigns from any and all claims, liabilities and obligations, both known and unknown, that arise out of or are in any way related to events, acts, conduct, or omissions occurring at any time prior to and including
the date you sign this Agreement. This general release includes, but is not limited to: (1) all claims arising out of or in any way related to your employment with the Company or the termination of that employment; (2) all claims related
to your compensation or benefits from the Company, including salary, bonuses, commissions, vacation pay, expense reimbursements, severance pay, fringe benefits, partnership interests, or any other ownership interests in the Company; (3) all
claims for breach of contract under any employment agreement, partnership agreement, or any other agreement whether written or oral, wrongful termination, and breach of the implied covenant of good faith and fair dealing; (4) all tort claims,
including claims for fraud, defamation, emotional distress, and discharge in violation of public policy; and (5) all federal, state, and local statutory claims, including but not limited to claims for discrimination, harassment, retaliation,
attorneys’ fees, or other claims arising under the Texas Labor Code, the Civil Rights Act of 1964 (as amended), the Americans with Disabilities Act of 1990, and the Age Discrimination in Employment Act (as amended) (“ADEA”).
Notwithstanding the foregoing, nothing in this paragraph shall be construed in any way to release the Company from any obligation to indemnify you pursuant to the articles and bylaws of the Company or applicable law. You represent that you have no
lawsuits, claims or actions pending in your name, or on behalf of any other person or entity, against the Company or any other person or entity subject to the release granted in this paragraph. 

 9. ADEA Waiver. You acknowledge that you are knowingly and voluntarily waiving and
releasing any rights you may have under the ADEA, and that the consideration given for the waiver and release is in addition to anything of value to which you are already entitled. You further acknowledge that you have been advised, as required by
the ADEA, that: (a) your waiver and release do not apply to any rights or claims that may arise after the date that you sign this Agreement; (b) you should consult with an attorney prior to signing this Agreement; (c) you have
twenty-one (21) days to consider this Agreement (although you may choose voluntarily to sign it earlier); (d) you have seven (7) days following the date you sign this Agreement to revoke the Agreement by providing written notice of
your revocation to Michael Gamble; and (e) this Agreement will not be effective until the date upon which the revocation period has expired, which will be the eighth day after the date that this Agreement is signed by you (the “Effective
Date”).  
 10. Cooperation with the Company. You agree to cooperate fully with the Company in connection with its actual
or contemplated defense, prosecution, or investigation of any claims, demands, litigation, or other matters, arising from events, acts, or failures to act that occurred during the time period in which you were employed by the Company. Cooperation
includes, without limitation, making yourself available upon reasonable notice for interviews, and truthful and accurate testimony in depositions and trial. The Company will reimburse you for your reasonable out-of-pocket expenses incurred in
connection with any such cooperation (excluding attorneys’ fees, forgone wages, salary, or other compensation); no other compensation will be owed to you for such cooperation. 
 11. Entire Agreement/Survival of Portions of Employment Agreement. This Agreement constitutes the entire agreement between the parties concerning
the subject matter herein, and supersedes all prior and contemporaneous negotiations and agreements, oral or written, related thereto, except that paragraphs 2, 3, 4, 6, 15, 16, and 17 of the Employment Agreement between you and the Company entered
January 6, 2005. This Agreement cannot be changed or terminated except pursuant to a written agreement executed by the parties. 
 12. Non-Disparagement. You agree that you will refrain from making any defamatory, libelous, slanderous or disparaging statements (including any derogatory statements regarding the business or reputation of the Company),
orally or in writing, except for truthful statements required by law or legal process. 
 13. Miscellaneous. This Agreement is entered
into without reliance on any promise or representation, written or oral, other than those expressly contained herein. This Agreement will bind the heirs, personal representatives, successors and assigns of the parties, and inure to the benefit of
the parties, their heirs, successors and assigns. If any provision of this Agreement is determined to be invalid or unenforceable, in whole or in part, this determination will not affect any other provision of this Agreement and the 

 
provision in question will be modified by the court so as to be rendered enforceable in a manner consistent with the intent of the parties insofar as
possible. This Agreement will be deemed to have been entered into and will be construed and enforced in accordance with the laws of the State of Texas as applied to contracts made and to be performed entirely within Texas. Any ambiguity in this
Agreement shall not be construed against either party as the drafter. Any waiver of a breach of this Agreement shall be in writing and shall not be deemed to be a waiver of any successive breach. This Agreement may be executed in counterparts and
facsimile signatures will suffice as original signatures. 
 If this Agreement is acceptable to you, please sign below and return the original to me. We
appreciate all of your contributions to the Company and wish you all the best in your future endeavors. 
  

							
	Sincerely,
	
	For the Company:
		
	By:	 	 /s/ Michael B. Gamble

		 	Michael B Gamble
		 	VP Administration

  

							
	UNDERSTOOD AND AGREED:	 		 	
				
	 /s/ Ellen O. O’Hara
	 		 	 January 4, 2008
	 	
	Ellen O. O’Hara	 		 	Execution Date

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