Document:

exv10w21

Exhibit 10.21

TRANSDEL PHARMACEUTICALS, INC.

SEPARATION AGREEMENT AND GENERAL RELEASE OF ALL CLAIMS

     This Separation Agreement and General Release of All Claims (“Separation Agreement”) is made
by and between Transdel Pharmaceuticals, Inc. (“Company”) and Juliet Singh, Ph.D. (“Employee”)
with respect to the following facts:

     A. Employee is currently employed by Company as its Chief Executive Officer pursuant to an
Employment Agreement dated June 27, 2007 (“Employment Agreement”) and is currently a director on
the Company’s Board of Directors (the “Board”). Employee’s employment will cease effective
February 17, 2010 (“Separation Date”). Employee will receive the Severance benefit provided for
in Section 9.3 of the Employment Agreement.

     B. During Employee’s employment, Employee has been granted options to purchase an aggregate
of 610,000 shares of Company’s common stock (the “Options”) pursuant to the Company’s 2007
Incentive Stock and Awards Plan (the “Plan”). As of Employee’s Separation Date 310,000 of
Employee’s Option shares have vested, while 300,000 Option shares remain unvested.

     C. The Company wishes to reach an amicable separation with Employee and assist Employee’s
transition to other employment. The parties desire to settle all claims and issues that have, or
could have been raised by Employee, in relation to Employee’s employment with Company and arising
out of or in any way related to the acts, transactions or occurrences between Employee and
Company to date, including, but not limited to, Employee’s employment with Company or the
termination of that employment, on the terms set forth below.

     THEREFORE, in consideration of the promises and mutual agreements hereinafter set forth, it
is agreed by and between the undersigned as follows:

     1. Severance Package. Company agrees to provide Employee with the following
benefits (“Severance Package”) to which Employee is not otherwise entitled. Employee
acknowledges and agrees that this Severance Package constitutes adequate legal consideration for
the promises and representations made by Employee in this Agreement.

          1.1 Voluntary Resignation of Employment and Director Position. In exchange for
the promises set forth herein, Employee is voluntarily resigning her employment and all
positions Employee holds with Company, including all officer positions and her position as a
director on the Board, effective February 17, 2010 at 5:00 p.m. (Pacific). In order to
facilitate her resignation, Employee agrees to execute the Resignation Notice, attached hereto
as Exhibit A, concurrently with this Agreement. Company shall list on its Form 8-K
and its press release that the reason for Employee’s separation from employment with Company
was a voluntary resignation.

          1.2 Accelerated Severance Payment. Pursuant to Section 9.3 of the Employment
Agreement, the Company shall pay Employee twelve (12) months of her continued base salary (the
“Severance Payment”). The payment of the Severance Payment will be made in accordance with
the Company’s standard payroll practices (i.e., payments made twice monthly on the fifteenth
and last day of each month), with the first payment due on February 28, 2010. Notwithstanding
the foregoing, if the Company completes an equity financing in which it raises at least $5
million through the issuance of its securities, the Company’s duty to make the Severance
Payment shall accelerate, and the Company shall pay any remaining balance of the Severance
Payment within ten (10) days of the closing of the financing.

1

 

          1.3 Acceleration of Vesting of Unvested Stock Options. Employee was previously
granted, pursuant to the Company’s Plan, options to purchase up to 610,000 shares of common
stock (the “Options”). As of the Separation Date, 310,000 shares subject to the Options will
be vested and exercisable. Notwithstanding anything in the Stock Option Agreements evidencing
the Options (the “Stock Option Agreements”) to the contrary, the Company agrees to accelerate
the vesting of all of Employee’s 300,000 unvested shares of common stock subject to the
Options (the “Acceleration Shares”), such that Employee shall be vested in all of the shares
subject to the Options as of the Separation Date (including the Acceleration Shares).

          1.4 Extension of Exercise Period. The Company agrees to amend the terms of the
Stock Option Agreements evidencing the Options to provide that Employee will have three years
from the Separation Date in which to exercise all or a portion of the Options. Except as
specifically amended herein, Employee acknowledges that she must exercise her vested options
in accordance with the terms and conditions of the Stock Option Agreements evidencing her
Options.

          1.5 Consulting Agreement. In exchange for the promises set forth herein, the
Company agrees to enter into a Consulting Agreement with Employee, in the form attached
hereto as Exhibit B.

          1.6 Health Benefits. For purposes of clarity, Employee shall be entitled to the
continued health benefits as provided in Section 9.3 of the Employment Agreement.

     2. Cooperation. Employee agrees that for the next thirty (30) days Employee shall
make herself reasonably available by telephone to answer questions and assist Company with the
transition of Employee’s duties as may be reasonably necessary in Company’s discretion. As part of
this cooperation, Employee shall provide Company with Employee’s professional contact information
including, but not limited to, the names, titles, company affiliation, telephone numbers, physical
addresses, and email addresses for all of potential investors Employee has had contact with during
the last twelve (12) months.

     3. Covenant Not to Solicit Stockholders. Through December 31, 2010, Employee
covenants not to solicit votes or encourage other stockholders of Company to take actions or to
vote their shares of stock against or in a manner contrary to the actions or matters recommended to
Company’s stockholders for approval by a majority of the Board.

     4. Restriction on Transfer of Common Stock. In addition to any other restrictions
and limitations on the transfer of any common stock Employee holds as of the Separation Date (the
“Securities”) under the applicable federal and state securities laws and the other agreements to
which Employee is bound, Employee agrees from the Separation Date through the later of (a) 90
days after the Separation Date or (b) the term of the Consulting Agreement (as defined in Section
2.3 of the Consulting Agreement), each sale of the Securities (which shall include any offer,
pledge, contract to sell, any option, right or warrant to sell, lend, or otherwise transfer or
dispose of, directly or indirectly, any of the economic consequences of ownership of the
Securities) shall be made in compliance with the volume restrictions applicable to an “affiliate”
of Company under Rule 144 of the Securities Exchange Act of 1933, as amended.

     5. Mutual General Release.

          5.1 General Release by Employee. Employee unconditionally, irrevocably and
absolutely releases and discharges Company, and any parent and subsidiary
corporations, divisions and affiliated corporations, partnerships or other affiliated
entities of

2

 

Company, past and present, as well as Company’s employees, officers, directors,
agents, successors and assigns (collectively, “Released Parties”), from all claims related in
any way to the transactions or occurrences between them to date, to the fullest extent
permitted by law, including, but not limited to, Employee’s employment with Company, the
termination of Employee’s employment, and all other losses, liabilities, claims, charges,
demands and causes of action, known or unknown, suspected or unsuspected, arising directly or
indirectly out of or in any way connected with Employee’s employment with Company. This
release is intended to have the broadest possible application and includes, but is not limited
to, any tort, contract, common law, constitutional or other statutory claims, including, but
not limited to, alleged violations of the California Labor Code, the California Fair
Employment and Housing Act, Title VII of the Civil Rights Act of 1964, the Americans with
Disabilities Act, and all claims for attorneys’ fees, costs and expenses. Employee expressly
waives Employee’s right to recovery of any type, including damages or reinstatement, in any
administrative or court action, whether state or federal, and whether brought by Employee or
on Employee’s behalf, related in any way to the matters released herein. However, this
general release is not intended to bar any claims that, by statute, may not be waived, such as
claims for workers’ compensation benefits, unemployment insurance benefits, and statutory
indemnity.

               Employee acknowledges that Employee may discover facts or law different from, or in
addition to, the facts or law that Employee knows or believes to be true with respect to the
claims released in this Separation Agreement and agrees, nonetheless, that this Separation
Agreement and the release contained in it shall be and remain effective in all respects
notwithstanding such different or additional facts or the discovery of them.

               Employee declares and represents that Employee intends this Separation Agreement to be
complete and not subject to any claim of mistake, and that the release herein expresses a full
and complete release and Employee intends the release herein to be final and complete.
Employee executes this release with the full knowledge that this release covers all possible
claims against the Released Parties, to the fullest extent permitted by law.

          5.2 General Release by Company. The Company, on behalf of itself, its
affiliates, successors, heirs, administrators, and assigns, as well as Company’s officers and
directors, fully and forever releases Employee, her heirs, administrators and assigns
(collectively, “Employee Released Parties”) from any and all claims, losses, liabilities,
actions, causes of actions, demands, rights, damages, costs and expenses of any kind, to the
fullest extent permitted by law, arising out Employee’s employment or services as an officer
or director, except for any claims or causes of action based on fraud, known or unknown,
suspected or unsuspected This release is intended to have the broadest possible application
and includes but is not limited to any tort other than fraud, contract, common law,
constitutional or other statutory claims.

          5.3 Company and Employee each acknowledge that they may discover facts or law different
from, or in addition to, the facts or law that they know or believe to be true with respect to
the claims released in this Separation Agreement and agree, nonetheless, that this Separation
Agreement and the release contained in it shall be and remain effective in all respects
notwithstanding such different or additional facts or the discovery of them.

          5.4 Company and Employee each declare and represent that they intend this Separation
Agreement to be complete and not subject to any claim of mistake, and that the release herein
expresses a full and complete release and Company and Employee
each intend the release herein to be final and complete. Company and Employee each

3

 

execute this release with the full knowledge that this release covers all possible claims
against the Released Parties, to the fullest extent permitted by law.

     6. California Civil Code Section 1542 Waiver. Company, on behalf of itself, its
affiliates, successors, heirs, administrators, and assigns, and Employee, on her behalf, each
expressly acknowledge and agree that all rights under Section 1542 of the California Civil Code
are expressly waived. That section provides:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR
SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE,
WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT
WITH THE DEBTOR.

     7. Representation Concerning Filing of Legal Actions. Employee represents that, as
of the date of this Separation Agreement, Employee has not filed any lawsuits, charges,
complaints, petitions, claims or other accusatory pleadings against Company or any of the other
Released Parties in any court or with any governmental agency. Employee further agrees that, to
the fullest extent permitted by law, Employee will not prosecute, nor allow to be prosecuted on
Employee’s behalf, in any administrative agency, whether state or federal, or in any court,
whether state or federal, any claim or demand of any type related to the matters released in this
Separation Agreement; provided, however, that Employee may file a claim for unemployment benefits
and the Company will not take any actions to dispute or challenge Employee’s claim to
unemployment benefits.

     8. Mutual Nondisparagement. Employee agrees that Employee will not make any written
or verbal statements, or encourage others to make any such statements, that defame, disparage or
criticize the personal or business reputation, practices or conduct of Company or any of the
other Released Parties. In exchange for Employee’s promises set forth herein, neither the
Company nor the members of its Board of Directors will make, and the Company agrees to instruct
its officers to not make, any voluntary statements, written or oral, or cause or encourage others
to make any such statements that defame, disparage or in any way criticize Employee or Employee’s
personal and/or business reputation.

     9. Confidentiality and Return of Company Property. Employee understands and agrees
that as a condition of receiving the Severance Package in paragraph 1, all Company property must
be returned to Company; provided, however, the Employee shall be entitled to keep the blackberry
and computer she used during her service at the Company (the “Employee Retained Property”). By
signing this Separation Agreement, Employee represents and warrants that Employee has returned to
Company all Company property, data and information belonging to Company (other than the Employee
Retained Property) and agrees that Employee will not use or disclose to others any confidential
or proprietary information of Company or the Released Parties (including any confidential or
proprietary information of the Company or the Release parties contained on the Employee Retained
Property). In addition, Employee agrees to keep the terms of this Separation Agreement
confidential between Employee and Company, except that Employee may tell Employee’s immediate
family and attorney or accountant, if any, as needed, but in no event should Employee discuss
this Separation Agreement or its terms with any current or prospective employee of Company. The
Company agrees to allow a representative of Employee to pick up all of Employee’s personal
property at the Company’s premises on Friday, February 19, 2010 at 4:00 p.m., or at such other
time mutually agreed by the Company and Employee.

     10. Continuing Obligations. Employee further agrees to comply with the continuing
obligations regarding confidentiality set forth in the surviving provisions of Company’s
Information and Inventions Agreement previously signed by Employee.

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11. Consideration Period. Employee has until 5:00 p.m. on February 17, 2010 to consider
whether or not to enter into this Separation Agreement. This Separation Agreement shall not
become effective or enforceable until the day Employee signs this Separation Agreement
(“Effective Date”). If the signed Separation Agreement is not received by Company’s legal
counsel, Jeff Thacker, DLA Piper, 4365 Executive Drive, Suite 1100, San Diego, CA 92121-2133, Fax
No. (858) 638-5128, by 5:00 p.m. Pacific Time on February 17, 2010, Company will assume that
Employee is not interested in the Severance Package, the offer will be automatically withdrawn
and Company will terminate Employee’s employment without Cause on the Separation Date.

     12. No Admissions. By entering into this Separation Agreement, the Released Parties
make no admission that they have engaged, or are now engaging, in any unlawful conduct. The
parties understand and acknowledge that this Separation Agreement is not an admission of
liability and shall not be used or construed as such in any legal or administrative proceeding.

     13. Severability. In the event any provision of this Separation Agreement shall be
found unenforceable, the unenforceable provision shall be deemed deleted and the validity and
enforceability of the remaining provisions shall not be affected thereby.

     14. Legal Representation. Employee acknowledges and agrees that DLA Piper LLP (US)
represents only the Company with respect to her separation of employment from Company and this
Separation Agreement and that it does not represent Employee. In addition, Employee acknowledges
and agrees that she has obtained her own legal counsel to review and negotiate the terms of this
Separation Agreement.

     15. Full Defense. This Separation Agreement may be pled as a full and complete
defense to, and may be used as a basis for an injunction against, any action, suit or other
proceeding that may be prosecuted, instituted or attempted by Employee or the Company, as
applicable. Employee agrees that in the event an action or proceeding is instituted by the
Released Parties in order to enforce the terms or provisions of this Separation Agreement, the
Released Parties shall be entitled to an award of reasonable costs and attorneys’ fees incurred
in connection with enforcing this Separation Agreement, to the fullest extent permitted by law.
Company agrees that in the event an action or proceeding is instituted by the Employee Released
Parties in order to enforce the terms or provisions of this Separation Agreement, the Employee
Released Parties shall be entitled to an award of reasonable costs and attorneys’ fees incurred
in connection with enforcing this Separation Agreement, to the fullest extent permitted by law.

     16. Applicable Law. The validity, interpretation and performance of this Separation
Agreement shall be construed and interpreted according to the laws of the United States of
America and the State of California.

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     17. Entire Agreement; Modification. This Separation Agreement, including the
surviving provisions of Company’s Information and Inventions Agreement previously executed by
Employee and Company’s Plan and related stock option agreements, the sections of the Employment
Agreement referenced herein and the Consulting Agreement are intended to be the entire agreement
between the parties and supersedes and cancels any and all other and prior agreements, written or
oral, between the parties regarding the subject matters in the Separation Agreement and the
Consulting Agreement. This Separation Agreement may be amended only by a written instrument
executed by all parties hereto.

THE PARTIES TO THIS SEPARATION AGREEMENT HAVE READ THE FOREGOING SEPARATION AGREEMENT AND FULLY
UNDERSTAND EACH AND EVERY PROVISION CONTAINED HEREIN. WHEREFORE, THE PARTIES HAVE EXECUTED THIS
SEPARATION AGREEMENT ON THE DATES SHOWN BELOW.

	 	 	 	 	 	 	 
	Dated: 2/17/10

	 	 	 	By:
	 	/s/ Juliet Singh
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Juliet Singh
	 
	 	 	 	 	 	 
	 

	 	 	 	Transdel Pharmaceuticals, Inc.
	 
	 	 	 	 	 	 
	Dated: 2/17/10

	 	 	 	By:
	 	/s/ John Lomoro
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	John Lomoro

6Exhibit 10.19

Exhibit 10.19

Qualified Retirement Plan

Flexible Standardized 401(k) Plan

General Information Sheet/Summary Plan Description

EMPLOYER INFORMATION

Your Employer has adopted a 401(k) Plan for the benefit of you and your co-workers. This plan is
designed to help you meet your financial needs during your retirement years. Your Employer must
follow certain rules and requirements to maintain this Plan. This General Information Sheet
provides some of the details of the Plan and should be used in conjunction with the Summary Plan
Description (SPD) Booklet which is provided by your Employer. Definitions of terms referenced with
capitalization in this document can be found in the Definitions portion of the SPD Booklet.

Name of Plan Nocopi Technologies Inc. 401(k) Profit Sharing Plan and Trust

Name of
Adopting Employer Nocopi Technologies Inc.

Address 9C Portland Road, West Conshohocken, PA 19428

Telephone 610-834-9600 Employer’s Federal Tax Identification Number 87-0406496

Plan Sequence Number 001 Employer’s Fiscal Year End 12/31

SECTION ONE: EFFECTIVE DATES

This is the initial adoption of a plan by the Employer. The Plan Effective Date is                                         

If this is a restatement of an existing qualified plan (a Prior Plan), the Prior Plan was initially
effective on 01/01/1993

The reinstatement Effective Date is 07/20/2009.

SECTION TWO: ELIGIBILITY

See Section titled Eligibility and Participation of the SPD Booklet.

Age and Service: You will become eligible to participate in the Plan after you satisfy the age and
service requirements as identified for each contribution type.

Age: Elective Deferrals 21 Matching Contributions 21 Employer Profit Sharing
Contributions 21

Years of Eligibility

Service: Elective Deferrals 1 Matching Contributions 1 Employer Profit Sharing Contributions 1

Are all Employees considered to have met the age and service requirements described above if
employed on the Plan

Effective Date of this Plan? o Yes þ No

	 	 	 
	EXCLUSION OF

	 	All Employees may become eligible to participate in the Plan except the following:
	CERTAIN CLASSES 

OF EMPLOYEES

	 	
þ   Employees covered by the terms of a collective bargaining agreement (e.g., union agreement)
unless the collective bargaining agreement specifies that the Employees must be covered by
the Plan.

	 
	 	 
	 

	 	þ   Employees who are nonresident aliens and receive no earned income from the Employer within
the United States.

	 
	 	 
	 

	 	þ   Employees who become Employees as a result of an asset or stock acquisition, merger, or
similar transaction involving a change in the Employer of a trade or business (during the
transition period only).

Hours Required for Eligibility: The number of Hours of Service you must be employed to complete a
Year of Eligibility Service is 1000. The number of Hours of Service you must exceed to
avoid a Break in Eligibility Service is 500.

 

 

Employees shall be given credit for eligibility purposes for Hours of Service with the following
predecessor employer(s):

Entry Dates: The Entry Dates upon which you can begin Plan participation are:
IMMEDIATELY.

SECTION THREE: CONTRIBUTIONS

See Section titled Contributions to the Plan of the SPD Booklet.

Employer Profit Sharing Contributions: The amount of the Employer Profit Sharing Contribution, if
any, will be
determined according to a discretionary formula in an amount determined each year by the managing
body of the Employer and will be allocated to each Qualifying Participant’s Individual Account
under the formula checked below:

	 	 	 	 	 
	þ	 	Pro Rata Formula. Under this formula, each Qualifying Participant’s Individual Account will
receive a pro rata
allocation. This allocation is based on the qualifying Participant’s Compensation in relation
to the total Compensation
of all Qualifying Participants.
	 
	 	 	 	 
	o	 	Flat Dollar Formula. Under this formula, all Qualifying Participants’ Individual Accounts will
receive equal
contributions.
	 
	 	 	 	 
	o	 	Integrated Formula. Under this formula, each Qualifying Participant’s Individual Account will
receive a base
contribution. In addition, Qualifying Participants will receive an additional allocation
(called an excess contribution)
based on their Compensation above the integration level. The integration level shall be:
	 
	 	 	 	 
	 

	 	o
	 	The Taxable Wage Base
	 
	 	 	 	 
	 

	 	o
	 	$                                         (a dollar amount less than the Taxable Wage Base).
	 
	 	 	 	 
	 

	 	o
	 	                     percent (not more than 100 percent) of the Taxable Wage Base.

Qualifying Participant: For any Plan Year that an Employer Profit Sharing Contribution is made,
you will be entitled to share in that contribution (and, thus, be a Qualifying Participant) if you
satisfy the following conditions: (1) You are a Participant, and (2) If you terminate employment,
you work at least 500 Hour(s) of Service during the Plan Year.

The Profit Sharing Contribution will be calculated based on the following frequency: Annual.

Elective Deferrals: Elective Deferrals will be permitted under this Plan and may commence on 07/20/2009.

The following types of elective deferrals are permitted under this Plan:

	 	 	 	 	 
	 

	 	þ
	 	Pre-tax
	 
	 	 	 	 
	 

	 	þ
	 	Roth

Once you become eligible to participate in the Plan, your Employer will provide you with a Salary
Reduction Agreement to be completed before the next plan Entry Date. To change the amount of,
cease, or resume your Elective Deferrals, you must complete a revised Salary Reduction Agreement.
Unless otherwise stated by your Employer, you may revise your Salary Reduction Agreement at any
time.

By completing a Salary Reduction Agreement to make an Elective Deferral to this Plan, your
Compensation will be reduced each pay period by an amount equal to:

	 	 	 	 	 
	 

	 	o
	 	A percentage of your Compensation from 0% to                      % in increments of 1%.
	 
	 	 	 	 
	 

	 	o
	 	An amount of your Compensation not less than $                     and not more than $                    .
	 
	 	 	 	 
	 

	 	o
	 	A Percentage of your Compensation from 0% to                     % in increments of 1% or an amount of your
Compensation not less than $                     and not more than $                    .
	 
	 	 	 	 
	 

	 	þ
	 	A percentage or dollar amount not to exceed the limits imposed by IRC 401(k), 402(g), 404
and 415.

If you make an excess Elective Deferral to the Plan, you must submit a request in writing for the
return of the excess to the Plan Administrator no later than April 15 following the end of the tax
year in which you made the excess Elective Deferral.

 

Page 2

 

Authorization of Automatic Elective Deferral: Will the Automatic Elective Deferral enrollment
Provisions apply?

o Yes      þ No

Automatic Enrollment Provisions: If you fail to make an Elective Deferral election as permitted under the Plan,
you will be automatically enrolled in the Plan and your Compensation will be withheld each pay period by an amount
equal to                     %. You are permitted to change this percentage at any time.

Automatic Elective Deferral Increases: If you were automatically enrolled in the Plan, and
you did not make any
changes to the percentage that you were automatically enrolled at, your Elective Deferral
percentage will be increased
by                     % in the year following the anniversary date of the year that you were automatically enrolled. Such
increases will occur on the following dates, to a maximum of                     % of your Compensation.

Matching Contributions: Will your Employer make Matching Contributions?

o Yes, but only on Elective Deferrals           þ No

If Matching Contributions will be made under this Plan, your Employer will make contributions
on behalf of Qualifying
Contributing Participants making Elective Deferrals based upon the formula selected below.

	 	 	 	 	 
	 

	 	o
	 	An amount equal to                     % of your Elective Deferral which does not exceed % of your
Compensation.
	 
	 	 	 	 
	 

	 	o
	 	An amount equal to the sum of                     % of the portion of your Elective Deferrals which does
not exceed                     % of your compensation.
	 
	 	 	 	 
	 

	 	o
	 	An amount equal to the sum of                     % of the portion of your Elective Deferrals which does not
exceed                     % of
your Elective Deferrals which does not exceed _______ percent of your
Compensation plus _______% of the portion
of your Elective Deferrals which exceeds                     % of your Compensation but does not exceed                     % of
your Compensation.
	 
	 	 	 	 
	 

	 	o
	 	An amount equal to:

	 	 	 	 	 	 
	 	 	Elective Deferral Percentage	 	Matching Percentage	 
	Base Rate

	 	Less than or equal to                     %
	 	                    	%
	Tier 2

	 	Greater than                     , but less than or equal to                     %

	 	                    	%
	Tier 3

	 	Greater than                     , but less than or equal to                     %
	 	                    	%

	 	 	 	 	 	 	 	 
	 	 	o	 	An amount, if any, equal to a percentage of your Elective Deferrals which the Employer will
determine each year.	 
	 
	 	 	 	 	 	 	 
	 

	 	o
	 	Other formula:	 	 	 
	 

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	.
	 	 	 	 

No Matching Contribution will be made in excess of $____ of your Compensation for any Plan Year.

The Matching Contribution will be calculated based on the following frequency:                               
          .

Qualifying Contributing Participant: For any Plan Year that a Matching Contribution is made, you
will be entitled to receive Matching Contributions if you contribute Elective Deferrals, and if you
terminate employment, you work at least
0 Hour(s) of Service during the Plan Year.

Safe Harbor CODA Contributions: Will your Plan follow the Safe Harbor CODA provisions? o Yes þ
No

If
“yes”, contributions to automatically meet certain nondiscrimination requirements will be made to
your Individual Account as follows:

	 	 	 
	o

	 	Basic Matching Contributions. An amount equal to your Elective Deferrals that does not exceed
3% of your
Compensation for the Plan Year, plus 50% of your Elective Deferrals that exceeds 3% of your
Compensation for the
Plan Year but does not exceed 5% of your Compensation for the Plan Year.
	 
	 	 
	o

	 	Enhanced Matching Contributions. An amount equal to                     % of your Elective Deferrals that does not
exceed
                    % of your Compensation for the Plan Year plus                     % of your Elective
Deferrals that exceeds                     % of
your Compensation for the Plan Year but does not exceed                     % of your Compensation for the Plan Year.

 

Page 3

 

	o	 	Safe Harbor Nonelective Contributions. If you are a Participant, you will receive Safe Harbor
Nonelective
Contributions to your Individual Account in an amount equal to 3% of your Compensation for the
Plan Year,
regardless of whether or not you make Elective Deferrals to the Plan.

Participants entitled to receive Safe Harbor Contributions. Safe Harbor contributions will be made on behalf of:

	 	o	 	Eligible Non-Highly compensated employees
	 
	 	o	 	All eligible employees

The Safe Harbor Contribution will be calculated based on the following frequency:                     .

Automatic Enrollment Safe Harbor CODA Contributions: Will your Plan follow the Automatic
Enrollment Safe Harbor CODA provisions? o Yes           þ No

If “yes”, and you fail to make an Elective Deferral election as permitted under the Plan, you will
be automatically enrolled in the Plan and your Compensation will be withheld each pay period by an
amount equal to                     %.

Automatic Elective Deferral Safe Harbor CODA Increases. If you were automatically enrolled in the
Plan, and you did not make any changes to the percentage that you were automatically enrolled at,
your Elective Deferral percentage will be increased in the year following the anniversary date of
the year that you were automatically enrolled and on January 1 of each of the following years and
will result in the following percentages of Compensation being withheld each pay period:

	(i)	 	4% during the first day of the Plan Year following the anniversary date that you were
enrolled in the Plan, and
	 
	(ii)	 	5% during the Plan Year following the Plan Year in which your Elective Deferral was
initially increased as described
in (i) above, and
	 
	(iii)	 	6% during the Plan Year following the Plan Year in which your Elective Deferral was
increased as described in (ii), in
(i) above, and
	 
	(iv)	 	Your Elective Deferral percentage will continue to increase by                     % on January 1 of each of the
following years up to
a maximum of                     % of your Compensation.

NOTE: If the annual increase percent is blank, the annual increase will be made in increments of
one percent and will equal the minimum amount permitted for the applicable Plan Year.

In addition, contributions to automatically meet certain nondiscrimination requirements will be
made to your Individual Account as follows:

	o	 	 Basic Matching Contributions. An amount equal to your elective Deferrals that does not exceed
1% of your
Compensation for the Plan Year, plus 50% of your Elective Deferrals that exceeds 1% of your
Compensation for the
Plan Year but does not exceed 6% of your Compensation for the Plan Year.
	 
	o	 	Enhanced Matching Contributions. An amount equal to                     % of your Elective Deferrals that does not exceed
                    % of your Compensation for the Plan Year plus                     % of your Elective Deferrals that exceeds                     % of your
Compensation for the Plan Year but does not exceed                     % of your Compensation for the Plan Year.
	 
	o	 	 Safe Harbor Nonelective Contributions. If you are a Participant, you will receive Safe Harbor
Nonelective
Contributions to your Individual Account in an amount equal to 3% percent of your Compensation
for the Plan Year,
regardless of whether or not you make Elective Deferrals to the Plan.

In addition to the above Safe Harbor Contributions, additional Matching Contributions within Safe
Harbor limits will be made as follows.

	 	o	 	                     percent of your Elective Deferrals that do not exceed                      percent of your Compensation for the Plan Year.
	 
	 	o	 	                     percent of your Elective Deferrals that do not exceed                     percent of your Compensation for the Plan Year.

	 
	 	 	 	Plus                      percent of your Elective Deferrals not to exceed                     percent of your Compensation for the Plan Year.

 

Page 4

 

	 	o	 	An amount equal to your Elective Deferrals up to a percentage of your Compensation for the
Plan Year determined by
your Employer from year to year. This percentage will in no event exceed four percent of your
Compensation for the
Plan Year.

Other Contributions: You can make rollover and/or transfer contributions from a qualified plan,
and pre-tax contribution amounts from a Traditional IRA. You cannot make Nondeductible (after-tax)
Employee Contributions.

You will be permitted (if eligible) to make Catch-up contributions after December 31, 2001.

Will Matching Contributions be made with regard to Catch-up Contributions? o Yes þ No
If
“yes” is selected, the Matching Contribution formula identified on your General Information Sheet
will be followed.

SECTION FOUR: VESTING AND FORFEITURES

See Section titled Vesting and Forfeitures of the SPD Booklet.

You will always be fully vested in all contributions derived from Elective Deferrals, Qualified
Nonelective Contributions (if any), Safe Harbor Basic Matching Contributions (if any), and Safe
Harbor Nonelective Contributions (if any).

Your rollover and transfer contributions, if allowed, are 100% vested immediately. The vesting
schedules below apply to your Employer Profit Sharing Contributions and Matching Contributions.

	 	 	 
	YEARS OF

VESTING
SERVICE

	 	VESTED PERCENTAGE FOR EMPLOYER PROFIT SHARING CONTRIBUTIONS AND MATCHING CONTRIBUTIONS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Profit

	 	 	 	 	 	 	 	Option 4 o
	 	 	 	Option 5 o	 	 
	Sharing

	 	Option 1 o
	 	Option 2 o
	 	Option 3 þ
	 	(Complete if chosen)
	 	 	 	(Complete if chosen)	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	

Matching

	 	

Option 1 o
	 	

Option 2 o
	 	

Option 3 þ
	 	 	 	Option 4 o

(Complete if chosen)
	 	 	 	Option 5 o

(Complete if chosen)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Less than One
	 	 	100	%	 	 	0	%	 	 	0	%	 	        	%	 	 	        	%	 	 	 	        	%	 	 	        	%
	1
	 	 	100	%	 	 	0	%	 	 	0	%	 	        	%	 	 	        	%	 	 	 	        	%	 	 	        	%
	2
	 	 	100	%	 	 	0	%	 	 	20	%	 	        	%	 (not less than 20%)	 	        	%	 (not less than 20%)	 	 	        	%	 	 	        	%
	3
	 	 	100	%	 	 	100	%	 	 	40	%	 	        	%	(not less than 40%)	 	        	%	(not less than 40%)	 	 	100	%	 	 	100	%
	4
	 	 	100	%	 	 	100	%	 	 	60	%	 	        	%	(not less than 60%)	 	        	% 	(not less than 60%)	 	 	100	%	 	 	100	%
	5
	 	 	100	%	 	 	100	%	 	 	80	%	 	        	%	(not less than 80%)	 	        	%	(not less than 80%)	 	 	100	%	 	 	100	%
	6
	 	 	100	%	 	 	100	%	 	 	100	%	 	100	%	 	 	100	%	 	 	 	100	%	 	 	100	%

	 	 	 
	NOTE:	 	If no option is selected, Option 3 will be deemed to be selected for both Employer Profit
Sharing Contributions and Matching Contributions.

Vesting Schedule for Automatic Enrollment Safe Harbor CODA Contributions (if applicable)

	 	 	 	 	 	 	 	 	 
	 	 	Vested Percentage	 	 	 	 
	Years of Vesting Service	 	Option 1 o	 	 	Option 2 o	 
	Less Than One
	 	 	0	%	 	 	                    	%
	1
	 	 	0	%	 	 	                    	%
	2
	 	 	100	%	 	 	                    	%

If no option is selected, Option 1 will apply

Hours Required for Vesting: The number of Hours of Service you must complete to be credited with a
Year of Vesting Service is 1,000. The number of Hours of Service you must exceed to avoid a Break
in Vesting Service is 500.

 

Page 5

 

Employees shall be given credit for vesting purposes for Hours of Service with the following
predecessor employer(s):

Exclusion of Certain Years of Vesting Service: All of your years of service will be counted for
vesting of your Individual Account except the following (if checked):

	þ	 	Years of Service before you turn age 18.
	 
	o	 	 Years of Service before the Employer maintained this Plan or a predecessor plan.

Forfeitures: Forfeitures of Employer Profit Sharing and Matching Contributions will be applied to
reduce Employer Contributions.

SECTION FIVE: DISTRIBUTIONS AND LOANS

See Section titled Distribution of Benefits, Claims Procedure and Loans of the SPD Booklet.

Distributions: You can withdraw your Individual Account if you terminate employment before Normal
Retirement Age, you become disabled, or you reach Normal Retirement Age but continue to work. You
can request a distribution from the Plan of your Elected Deferral in the Plan upon attainment of
age 59 1/2, even if you continue to work.

Unless one of the situations listed above exists, you cannot withdraw your Individual Account
attributable to Employer Profit Sharing and Matching contributions, rollover contributions, or
transfer contributions unless you are 100% vested.

Can you withdraw Elective Deferrals on account of hardship? o Yes þ No

Automatic Enrollment Plans: If you have been automatically enrolled in the Plan, will you be able
to request a distribution of your Elective Deferrals that were deducted from your Compensation? o
Yes o No

þ N/A

If “yes”, you must make this request within 90 days of the initial Elective Deferral deducted from
your Compensation.

Loans: Can you request to receive loans from the Plan? þ Yes o No (If “yes”, refer to the Loan
Disclosure and Basic Loan
Agreement)

In-Service Withdrawals – Plans may permit employees to take a distribution of their matching and
profit sharing contributions even if they are actively employed with the company. Is this option
available in your plan? þ  Yes o No

If yes, the following conditions apply (check all that apply):

	o	 	 Employer profit sharing and matching contributions may be withdrawn as of the Normal Retirement Age.
	 
	þ	 	 Employer profit sharing and matching contributions may be withdrawn as of age 59.5.
	 
	þ	 	 Participant must be 100% vested.
	 
	o	 	 Participant must have worked                      years of service.
	 
	o	 	 Withdrawals limited to                      per plan or                      per year.

Form of Distribution: You may request a distribution of the vested portion of your Individual
Account in the form of a Lump Sum, Installment Payment, or Annuity Contracts.

Involuntary Cash Out: - If your account balance exceeds $1,000, but is less than $5,000, the Plan
Administrator may instruct that you receive your distribution in the form of a single sum payment.
When determining the value of the account rollover contributions will be included.

REA Safe Harbor/Qualified Joint and Survivor Annuity: The REA Safe Harbor provisions of the Plan
do apply.

 

Page 6

 

SECTION SIX: DEFINITIONS

See Section titled Definitions of the SPD Booklet.

Plan Year: The Plan Year ends on December 31.

Hours of Service Equivalencies: Service will be determined on the basis of actual hours you are,
or entitled to be, paid.

Compensation: Compensation for each Participant will be determined over the Plan Year.
Compensation includes Elective Deferrals made according to a Salary Reduction Agreement.
Generally, and unless otherwise required by the Plan or the Internal Revenue Code or Regulations,
Compensation will mean only the Compensation paid to the Employee after becoming a Participant.

Normal Retirement Age: Normal Retirement Age under the Plan is age 65.

Early Retirement Age: An Early Retirement Age under the Plan is met by attaining age
N/A and N/A Years of Vesting.

SECTION SEVEN: MISCELLANEOUS

See Sections titled Miscellaneous of the SPD Booklet.

	 	 	 	 	 
	Can you direct the investment of your Individual Account?
	 	þ Yes
	 	o No

	 	 	 
	INVESTMENT DIRECTION

	 	(If “yes”, see your Plan Administrator for rules and procedures that will apply.)

Plan Administrator: The Employer is the Plan Administrator. If the Employer is not the Plan
Administrator, additional information will be contained in this section or attached in a separate
addendum.

Agent for Service of Legal Process

Name of Adopting Employer Nocopi Technologies, Inc.

Address 9C Portland Road

City W. Conshohocken          State PA          
Zip 19428

Telephone 610-834-9600

	 	 	 
	Note:	 	The Agent for Service of Legal Process is the person upon whom any legal papers can be
served. Service of legal process may be made upon a Plan Trustee or the Employer/Plan
Administrator.

SECTION EIGHT: TRUSTEE

Name of Trustee Rudolph Lutterschmidt

Title                                         

Address 9C Portland Road

City W. Conshohocken          
State PA          
Zip 19428

Telephone 610-834-9600

 

Page 7

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