Document:

exv10w6

 

Exhibit 10.6

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). 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

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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 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

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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;

                         (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

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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

               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

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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 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

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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 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

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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 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.

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               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 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

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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 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

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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 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

11

 

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.

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

12

 

whole or in part, such invalidity or unenforceability shall not affect the remaining
provisions hereof which shall remain in full force and effect.

          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

13

 

(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 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.]

14

 

     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, Ph.D.
 	 
	 	GEORGE J. VERGIS, PH.D. 	 
	 	 	 
	 

15

 

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.

17

 

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.]

18

 

     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	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 

19exv10w7

 

Exhibit 10.7

	 	 	 
	David A. Zopf, M.D.

	 	Executive Vice President and Chief Scientific Officer
	A. Brian Davis

	 	Senior Vice President and Chief Financial Officer
	Valerie M. Mulligan

	 	Senior Vice President, Quality and Regulatory Affairs
	Bruce A. Wallin

	 	Senior Vice President, Clinical Development and
	 

	 	Chief Medical Officer

CHANGE OF CONTROL AGREEMENT

     THIS
CHANGE OF CONTROL AGREEMENT (the “Agreement”), is
dated as of April 30, 2007, by and
between NEOSE TECHNOLOGIES, INC. (the “Company”) and                      (the “Employee”).

Background

     The Employee, a senior executive of the Company, and the Company are parties to a Change of
Control Agreement dated October _, 2002 (“Original Agreement”), pursuant to which the
Company and the Employee established certain protections for the Employee in the event of his or
her termination of employment. The parties desire to replace the Original Agreement with this
Agreement.

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. Definitions. As used herein:

          1.1. “Base Salary” means, as of any given date, the annual base rate of salary payable
to the Employee by the Company, as then in effect; provided, however, that in the case of a
resignation by the Employee for the Good Reason described in Section 1.8.4, “Base Salary” will mean
the annual base rate of salary payable to the Employee by the Company, as in effect immediately
prior to the reduction giving rise to the Good Reason.

          1.2. “Board” means the Board of Directors of the Company.

          1.3. “Business” means research, development, manufacture, supply, marketing,
licensing, use and sale of biologic, pharmaceutical and therapeutic materials and products and
related process 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, or modification of proteins or
lipids through the attachment of carbohydrates, (c) carbohydrate-based therapeutics, and (d) the
development of protein therapeutics using sialylation, fucosylation, glycosylation,
GlycoPEGylationTM, or GlycoConjugationTM.

          1.4. “Cause” means fraud, embezzlement, or any other serious criminal conduct that
adversely affects the Company committed intentionally by the Employee
in connection with

 

his or her employment or the performance of his or her duties as an officer or director of the
Company or the Employee’s conviction of, or plea of guilty or nolo contendere to, any felony.

          1.5. “Change in Control” means a change in ownership or control of the Company
effected through:

               1.5.1. 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;

               1.5.2. 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;

               1.5.3. 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 shareholder 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

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

          1.6. “Code” means Internal Revenue Code of 1986, as amended.

          1.7. “Disability” means the Employee’s inability, by reason of any physical or mental
impairment, to substantially perform his or her regular duties as contemplated by this Agreement,
as determined by the Board in its sole discretion (after affording the Employee the opportunity to
present his or her 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.

          1.8. “Good Reason” means, without the Employee’s prior written consent, any of the
following:

               1.8.1. an adverse change in the Employee’s title;

2

 

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

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

               1.8.4. a reduction in the Employee’s Base Salary or in the amount, expressed as a percentage
of Base Salary, of the Employee’s Target Bonus;

               1.8.5. 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 Employee
provides the Company with written objection to the event or condition within 60 days following 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 Employee resigns his or her employment within 90
days following the expiration of that cure period.

          1.9. “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 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 Employee
(i) at any time and at any place while the Employee 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 Employee by the Company.

          1.10. “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,

3

 

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.

          1.11. “Pro Rata Bonus” means, with respect to each calendar year, a pro-rata bonus for
such year equal to the amount of Employee’s Target Bonus for such year multiplied by a fraction,
the numerator of which is the number of days during the year that transpired before the date of the
Employee’s termination of employment and the denominator of which is 365.

          1.12. “Release” means a release substantially identical to the one attached hereto as
Exhibit A.

          1.13. “Restricted Period” means (i) in the case of a cessation of employment described
in Section 3, the period beginning on the date hereof and ending eighteen months after such
cessation, and (ii) in the case of any other cessation of employment, the period beginning on the
date hereof and ending on the first anniversary of such cessation.

          1.14. “Restrictive Covenants” means the covenants set forth in Sections 6.1, 6.2 and
6.3 of this Agreement.

          1.15. “Target Bonus” means, with respect to any year, the target amount of the annual
bonus payable to the Employee with respect to that year, whether under an employment or incentive
agreement, under any bonus plan or policy of the Company, or otherwise, and whether or not all
applicable performance goals have been met and conditions to the payment of such bonus have been
satisfied.

2. Termination.

          2.1. In General. The Company may terminate the Employee’s employment at any time. The
Employee may terminate his or her employment at any time, provided that before the Employee may
voluntarily terminate his or her employment with the Company, he or she must provide 30 days prior
written notice (or such shorter notice as is acceptable to the Company) to the Company. Upon any
termination of the Employee’s employment with the Company for any reason: (a) the Employee (unless
otherwise requested by the Board) concurrently will resign any officer or director positions he or
she holds with the Company, its subsidiaries or affiliates, and (b) the Company will pay to the
Employee all accrued but unpaid compensation (including without limitation salary and bonus)
through the date of termination, and (c) except as explicitly provided in Sections 2, 3 or 4, or
otherwise pursuant to COBRA, all compensation and benefits will cease and the Company will have no
further liability or obligation to the Employee. The foregoing will not be construed to limit the
Employee’s right to payment or reimbursement for claims incurred under any insurance contract
funding an

4

 

employee benefit plan, policy or arrangement of the Company in accordance with the terms of
such insurance contract.

          2.2. Termination Without Cause or For Good Reason. If the Employee’s employment by
the Company ceases due to a termination by the Company without Cause or a resignation by the
Employee for Good Reason, then, in addition to the payments and benefits provided for in Section
2.1 above and subject to Section 5 below, the Company will:

               2.2.1. Pay to the Employee a lump sum cash payment equal to the Pro-Rata Bonus for the
calendar year in which the termination occurs;

               2.2.2. Pay to the Employee a lump sum cash payment equal to the sum of (i) Employee’s Base
Salary, as in effect on such date, and (ii) Employee’s Target Bonus for the calendar year in which
the termination occurs;

               2.2.3. Continue to provide medical benefits to the Employee (and, if covered immediately prior
to such termination, his or her spouse and dependents) for a period of one year commencing from the
date of the Employee’s termination of employment at a monthly cost to the Employee equal to the
Employee’s monthly contribution, if any, toward the cost of such coverage immediately prior to such
termination; and

               2.2.4. Arrange for the provision to the Employee of reasonable executive outplacement services
by a provider selected by the mutual agreement of the Company and the Employee.

          2.3. Termination Due to Death or Disability. If the Employee’s employment by the
Company ceases due to death or Disability, then, in addition to the payments and benefits provided
for in Section 2.1 above and subject to Section 5 below, the Company will pay to Employee the
payments and provide to Employee the benefits described in Sections 2.2.1, 2.2.2, 2.2.3 and 2.2.4,
provided that the cash payments described in such Sections will be offset by the actuarial present
value of the benefits paid or payable to the Employee (or his or her representatives, heirs, estate
or beneficiaries) pursuant to any life insurance or disability plans, policies or arrangements of
the Company by virtue of his or her death or such 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).

          2.4. The payments and benefits described in Sections 2.2 and 2.3 are in lieu of (and not in
addition to) any other severance arrangement maintained by the Company.

3. Certain Terminations Following a Change in Control. If the Employee’s employment with
the Company ceases within twelve months following a Change in Control as a result of a termination
by the Company without Cause or a resignation by the Employee for Good Reason, then in lieu of the
payments and benefits provided for in Section 2.2,:

          3.1. The Company will pay to the Employee on the date of termination a lump sum cash payment
equal to the Pro-Rata Bonus for the calendar year in which the termination occurs;

5

 

          3.2. The Company will pay to the Employee on the date of termination a lump sum cash payment
equal to the sum of (i) eighteen months of the Employee’s Base Salary as in effect on such date,
and (ii) the product of 1.5 times the Employee’s Target Bonus for the calendar year in which the
termination occurs;

          3.3. The Company will continue to provide medical benefits to the Employee (and, if covered
immediately prior to such term, his or her spouse and dependents) for a period of eighteen months
commencing from the date of the Employee’s termination of employment at a monthly cost to the
Employee equal to the Employee’s monthly contribution, if any, toward the cost of such coverage
immediately prior to such termination;

          3.4. The Company will arrange for the provision to the Employee of reasonable executive
outplacement services by a provider selected by the mutual agreement of the Company and the
Employee; and

          3.5. All outstanding stock options then held by the Employee will then become fully vested and
immediately exercisable and will remain exercisable and, notwithstanding any inconsistent language
in any equity incentive plan or agreement, will remain exercisable for the shortest of (a) the 18
month period immediately following the Employee’s termination of employment, (b) the period
remaining until the scheduled expiration of the option (determined without regard to the Employee’s
termination of employment), or (c) the longest period that does not result in the option becoming
subject to an additional tax under Section 409A of the Code.

4. Parachute Payments.

          4.1. Generally. All amounts payable to the Employee 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 Employee) would be limited or precluded by
Section 280G of the Code and without regard to whether such payments would subject the Employee to
the excise tax levied on certain “excess parachute payments” under Section 4999 of the Code (the
“Parachute Excise Tax”).

          4.2. 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 Employee 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 Employee 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 Employee 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 4.2, and taking into account any lost or reduced tax deductions on
account of the Gross-up Payment, shall be equal to the Payment.

6

 

          4.3. Measurements and Adjustments. The determination of the amount of the payments
and benefits paid and payable to the Employee, and whether and to what extent payments under
Section 4.2 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 Employee, which auditor shall provide
the Employee and the Company with detailed supporting calculations with respect to its
determination within 15 business days after the receipt of notice from the Employee or the Company
that the Employee 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
independent accounting experts reasonably selected by the Company, 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 otherwise not subject to such Parachute Excise Tax.
For purposes of determining the amount of the Gross-up Payment, if any, the Employee 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
Employee’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 Employee adjusted gross income. Any Gross-up Payment shall be paid by the
Company at the time the Employee is entitled to receive the Payment. Any determination by the
auditor shall be binding upon the Company and the Employee.

          4.4. Underpayment or Overpayment. In the event of any underpayment or overpayment to
the Employee (determined after the application of Section 4.2), the amount of such underpayment or
overpayment will be, as promptly as practicable, paid by the Company to the Employee or refunded by
the Employee to the Company, as the case may be, with interest at the applicable federal rate
specified in Section 1274(d) of the Code.

5. Timing of Payments Following Termination.

          5.1. Subject to Section 5.2, and notwithstanding any other provision of this Agreement, the
payments and benefits described in Sections 2, 3 and 4 are conditioned on the Employee’s execution
and delivery to the Company, within 60 days following cessation of employment, of a Release in a
manner consistent with the Older Workers Benefit Protection Act and any similar state law that is
applicable. The amounts described in Sections 2.2 or 3 (as applicable) will be paid in a lump sum,
on the eighth day following the Employee’s execution and delivery of the Release, provided the
Release has not been revoked by the Employee.

7

 

          5.2. To the extent the compliance with 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 Employee upon or following 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
Employee’s separation from service will be deferred (without interest) and paid to the Employee in
a lump sum immediately following that six month period.

6. Restrictive Covenants. As consideration for all of the payments to be made to the
Employee pursuant to Sections 2, 3, and 4 of this Agreement, the Employee agrees to be bound by the
Restrictive Covenants set forth in this Section 6. The Restrictive Covenants will apply without
regard to whether any termination of the Employee’s employment is initiated by the Company or the
Employee, and without regard to the reason for that termination.

          6.1. Covenant Not To Compete. The Employee covenants that, during the Restricted
Period, the Employee will not (except in his or her capacity as an employee or director of the
Company or with the prior consent of the Company) do any of the following, directly or indirectly,
anywhere in the world:

               6.1.1. engage or participate in any business competitive with the Business;

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

               6.1.3. 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 Employee’s
employment by the Company for a purpose competitive with the Business;

               6.1.4. 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 adversely modify any written or oral agreement, arrangement or course
of dealing with the Company; or

               6.1.5. 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 Employee’s employment with the Company for any reason.

          6.2. Confidentiality. The Employee recognizes and acknowledges that the Proprietary
Information is a valuable, special and unique asset of the business of the Company. As a result,
both during the Employee’s employment by the Company and thereafter, the

8

 

Employee 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 or her own benefit, or for any
purpose other than the exclusive benefit of the Company, any Proprietary Information, provided that
the Employee may during his or her employment by the Company disclose Proprietary Information to
third parties as may be necessary or appropriate to the effective and efficient discharge of his or
her 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 Employee or any of his or her representatives becomes legally compelled to
disclose any of the Proprietary Information, the Employee 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 6.2 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 Employee.

          6.3. Property of the Company.

               6.3.1. 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 Employee 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 or her duties to the Company. If the Employee removes such materials or
property in the performance of his or her duties, the Employee 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 Employee 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 or she
may have access or become familiar in the course of his or her employment, except to the extent
necessary in the performance of his or her duties. Upon termination of the Employee’s employment
with the Company, he or she will leave with the Company or promptly return to the Company all
originals and copies of such materials or property then in his or her possession.

               6.3.2. Intellectual Property. The Employee agrees that all the Intellectual Property
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 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 Employee retains any interest in the Intellectual Property, the Employee hereby
irrevocably assigns and transfers to the Company any and all right, title, or interest that the
Employee 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 Employee further agrees to execute any and all
documents and provide any further cooperation or assistance reasonably required by the Company to
perfect, maintain or otherwise protect its rights in the

9

 

Intellectual Property. If the Company is unable after reasonable efforts to secure the
Employee’s signature, cooperation or assistance in accordance with the preceding sentence, whether
because of the Employee’s incapacity or any other reason whatsoever, the Employee hereby designates
and appoints the Company or its designee as the Employee’s agent and attorney-in-fact, to act on
his or her 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 Employee acknowledges and agrees that such appointment is coupled with
an interest and is therefore irrevocable.

          6.4. Acknowledgments. The Employee 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 Employee holds within the Company. The Employee further
acknowledges that the Restrictive Covenants are included herein in order to induce the Company to
enter into this Agreement and that the Company would not have entered into this Agreement in the
absence of the Restrictive Covenants.

          6.5. Remedies and Enforcement Upon Breach.

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

               6.5.2. 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.

               6.5.3. Accounting. If the Employee breaches any of the Restrictive Covenants, the
Company will have the right and remedy to require the Employee to account for and pay over to the
Company all compensation, profits, monies, accruals, increments or other benefits derived or
received by the Employee 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.

               6.5.4. 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.

10

 

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

               6.5.6. Extension of Restricted Period. If the Employee breaches Section 6.1 in any
respect, the restrictions contained in that section will be extended for a period equal to the
period that the Employee was in breach.

7. Miscellaneous.

          7.1. 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 Employee hereby (a) waives any right to claim payment of amounts owed to him or her, 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.

          7.2. 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 rights of the Employee hereunder are personal
to the Employee and may not be assigned by him.

          7.3. 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.

          7.4. 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 Employee and the Company hereby consent to the
personal and exclusive jurisdiction of such courts and hereby waive any objections that they may
have to personal jurisdiction, the laying of venue of any such proceeding and any claim or defense
of inconvenient forum.

          7.5. 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. 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.

          7.6. 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 delivered

11

 

personally or upon mailing by registered or certified mail, postage prepaid, return receipt
requested, as follows:

If to the Company, to:

Neose Technologies, Inc.

102 Rock Road

Horsham PA 19044

Attn: General Counsel

Fax: 215-315-9100

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 Employee, to:

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

          7.7. Entire Agreement; Amendments. This Agreement and the attached exhibit contain
the entire agreement and understanding of the parties relating to the provision of severance
benefits upon termination, and merges and supersedes all prior and contemporaneous discussions,
agreements and understandings of every nature relating to that subject, including without
limitation the Retention Agreement dated                     , the Noncompetition and Confidentiality
Agreement dated                     , and the Original Agreement between the Employee and Company. This
Agreement may not be changed or modified, except by an Agreement in writing signed by each of the
parties hereto.

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

          7.9. 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.

12

 

          7.10. 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.

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

	 	 	 	 	 	 	 
	 	 	NEOSE TECHNOLOGIES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	George J. Vergis, Ph.D.

President and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Employee	 	 

13

 

Exhibit A

Release and Non-Disparagement Agreement

          THIS RELEASE AND NON-DISPARAGEMENT AGREEMENT (this “Release”) is made as of the ___
day of                     , ___by and between
                     (the “Employee”) and NEOSE
TECHNOLOGIES, INC. (the “Company”).

          WHEREAS, the Employee’s employment as an executive of the Company has terminated; and

          WHEREAS, pursuant to Section[s] [2] [3] [and 4] of the Change of Control Agreement by and
between the Company and the Employee dated as of April 30, 2007 (the “Change of Control
Agreement”), the Company has agreed to pay the Employee certain amounts and to provide him or
her with certain rights and benefits, subject to the execution of this 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. The Employee acknowledges that: (a) the payments, rights and
benefits set forth in Section[s] [2] [3] [and 4] of the Change of Control Agreement constitute full
settlement of all of his or her rights under the Change of Control Agreement, (b) he or she has no
entitlement under any other severance or similar arrangement maintained by the Company, and (c)
except as otherwise provided specifically in this Release, the Company does not and will not have
any other liability or obligation to the Employee. The Employee further acknowledges that, in the
absence of his or her execution of this Release, the payments and benefits specified in Section[s]
[2] [3] [and 4] of the Change of Control Agreement would not otherwise be due to the Employee.

SECTION 2. Release and Covenant Not to Sue. The Employee hereby fully and forever releases
and discharges the Company and its parents, affiliates and subsidiaries, 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 Release, out of his or her 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. The Employee expressly represents that he or
she has not filed a lawsuit or initiated any other administrative proceeding against the Company
(including for purposes of this Section 2, its parents, affiliates and subsidiaries), and that he
or she has not assigned any claim against the Company (or its parents, affiliates and subsidiaries)
to any other person or entity. The Employee further promises not to initiate a lawsuit or to bring
any other claim against the Company (or its parents, affiliates and subsidiaries) arising out of or
in any way related to his or her employment by the Company or the termination of that employment.
The forgoing will not be deemed to release the Company from (a) claims solely to enforce this
Release, (b) claims solely to enforce Section[s] [2] [3] [and 4] of the Change of Control
Agreement, (c) claims for indemnification under the Company’s By-Laws, under any indemnification
agreement between the Company and the Employee or under any similar agreement or (d) claims solely
to enforce the terms of any equity incentive award agreement

14

 

between the Employee and the Company. This Release will not prevent the Employee 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 the Employee for personal relief in connection with
such a charge or investigation (such as reinstatement or monetary damages) would be barred.

SECTION 3. Restrictive Covenants. The Employee acknowledges that the terms of Section 6 of
the Change in Control Agreement will survive the termination of his or her employment. The
Employee affirms that the restrictions contained in Section 6 of the Change in Control Agreement
are reasonable and necessary to protect the legitimate interests of the Company, that he or she
received adequate consideration in exchange for agreeing to those restrictions and that he or she
will abide by those restrictions.

SECTION 4. Non-Disparagement. The Company (meaning, solely for this purpose, Company’s
directors and executive officers and other individuals authorized to make official communications
on Company’s behalf) will not disparage the Employee or the Employee’s performance or otherwise
take any action which could reasonably be expected to adversely affect the Employee’s personal or
professional reputation. Similarly, the Employee will not disparage 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. The Employee further agrees that, subject to reimbursement of his
or her 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 the Employee was involved during his or her employment with Company.
The Employee shall render such cooperation in a timely manner on reasonable notice from the
Company.

SECTION 6. Rescission Right. The Employee expressly acknowledges and recites that (a) he
or she has read and understands this Release in its entirety, (b) he or she has entered into this
Release knowingly and voluntarily, without any duress or coercion; (c) he or she has been advised
orally and is hereby advised in writing to consult with an attorney with respect to this Release
before signing it; (d) he or she was provided 21 calendar days after receipt of the Release
to consider its terms before signing it (or such longer period as is required for this Release to
be effective under the Age Discrimination in Employment Act or any similar state law); and (e) he
or she is provided seven (7) calendar days from the date of signing to terminate and revoke this
Release (or such longer period required by applicable state law), in which case this Release shall
be unenforceable, null and void. The Employee may revoke this Release during those seven (7) days
(or such longer period required by applicable state law) by providing written notice of revocation
to the Company.

SECTION 7. Challenge. If the Employee violates or challenges the enforceability of any
provisions of the Noncompetition Agreement or this Release, no further payments, rights or benefits
under Section[s] [2] [3] [and 4] of the Change of Control Agreement will be due to the Employee.

SECTION 8. Miscellaneous.

          8.1. No Admission of Liability. This 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

15

 

the Company to the Employee. There have been no such violations, and the Company specifically
denies any such violations.

          8.2. No Reinstatement. The Employee 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 Release shall inure to the benefit of and be
binding upon the Company and the Employee and their respective successors, executors,
administrators and heirs. The Employee may make any assignment of this Release or any interest
herein, by operation of law or otherwise. The Company may assign this 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 Release will be
interpreted in such manner as to be effective and valid under applicable law. However, if any
provision of this 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 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 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 to the subject matter hereof. This 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 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 Release may be executed, including execution
by facsimile signature, in one or more counterparts, each of which shall be deemed an original, and
all of which together shall be deemed to be one and the same instrument.

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

	 	 	 	 	 	 	 
	 	 	NEOSE TECHNOLOGIES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name & Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	EMPLOYEE	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 

16

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