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<SEC-DOCUMENT>0000890163-07-000623.txt : 20071016
<SEC-HEADER>0000890163-07-000623.hdr.sgml : 20071016
<ACCEPTANCE-DATETIME>20071016171519
ACCESSION NUMBER:		0000890163-07-000623
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20071010
ITEM INFORMATION:		Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20071016
DATE AS OF CHANGE:		20071016

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PIPEX PHARMACEUTICALS, INC.
		CENTRAL INDEX KEY:			0000894158
		STANDARD INDUSTRIAL CLASSIFICATION:	PHARMACEUTICAL PREPARATIONS [2834]
		IRS NUMBER:				133808303
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-12584
		FILM NUMBER:		071174847

	BUSINESS ADDRESS:	
		STREET 1:		3985 RESEARCH PARK DRIVE
		CITY:			ANN ARBOR
		STATE:			MI
		ZIP:			48108
		BUSINESS PHONE:		734-332-7800

	MAIL ADDRESS:	
		STREET 1:		3985 RESEARCH PARK DRIVE
		CITY:			ANN ARBOR
		STATE:			MI
		ZIP:			48108

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	SHEFFIELD PHARMACEUTICALS INC
		DATE OF NAME CHANGE:	19970730

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	SHEFFIELD MEDICAL TECHNOLOGIES INC
		DATE OF NAME CHANGE:	19940606
</SEC-HEADER>
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<TYPE>8-K
<SEQUENCE>1
<FILENAME>s11-7822_8k.htm
<DESCRIPTION>FORM 8-K
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<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:center;'><b><font SIZE=5>UNITED STATES</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font SIZE=5>SECURITIES AND EXCHANGE COMMISSION</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font SIZE=2>WASHINGTON, D.C. 20549</font></b></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:center;'><b><font SIZE=5>FORM 8-K</font></b></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:center;'><b><font SIZE=2>CURRENT REPORT</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font SIZE=2>PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934</font></b></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:center;'><font size=2>Date of Report (Date of earliest event reported): October 10, 2007</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:center;'><font size=2>Pipex Pharmaceuticals, Inc.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Exact name of registrant as specified in its charter)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:3.0pt;text-indent:-3.0pt;text-align:center;margin-top:0in;margin-bottom:0in'><font size=2>Delaware</font></p>
<p style='margin-left:3.0pt;text-indent:-3.0pt;text-align:center;margin-top:0in;margin-bottom:0in'><font size=2>(State or other jurisdiction of</font></p>
<p style='margin-left:3.0pt;text-indent:-3.0pt;text-align:center;margin-top:0in;margin-bottom:0in'><font size=2>incorporation)</font></p> </td>
        <td width="29%" valign=top style=' height:39.2pt'>
            <p style='margin-left:.75pt;text-indent:0pt;text-align:center;margin-top:0in;margin-bottom:0in'><font size=2>01-12584</font></p>
<p style='margin-left:.75pt;text-indent:0pt;text-align:center;margin-top:0in;margin-bottom:0in'><font size=2>(Commission</font></p>
<p style='margin-left:.75pt;text-indent:0pt;text-align:center;margin-top:0in;margin-bottom:0in'><font size=2>File Number)</font></p> </td>
        <td width="41%" style='height:39.2pt'>
            <p style='margin-left:.75pt;text-indent:0pt;text-align:center;margin-top:0in;margin-bottom:0in'><font size=2>13-3808303</font><br> <font size=2>(IRS Employer</font></p>
<p style='margin-left:.75pt;text-indent:0pt;text-align:center;margin-top:0in;margin-bottom:0in'><font size=2>Identification Number)</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>3930 Varsity Drive</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Ann Arbor, MI 48108</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>(Address of principal executive offices) (Zip Code)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:center;'><font size=2>(734) 332-7800</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>(Registrant's telephone number, including area code)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions:</font></p>

<p style=' margin-bottom:0pt; margin-top:11.25pt;text-align:left;'><font size=2>&nbsp;</font></p>


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        <td width="94%" valign=top style=' height:13.9pt'>
            <p style='margin-left:5.75pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:6.0pt'><font size=2>Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</font></p> </td> </tr>
    <tr style='height:13.15pt'>
        <td width="5%" valign=top style=' height:13.15pt'>
            <p style='margin-left:5.75pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:6.0pt'><font size=2>|_|</font></p> </td>
        <td width="94%" valign=top style=' height:13.15pt'>
            <p style='margin-left:5.75pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:6.0pt'><font size=2>Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></p> </td> </tr>
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            <p style='margin-left:5.75pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:6.0pt'><font size=2>|_|</font></p> </td>
        <td width="94%" valign=top style=' height:27.8pt'>
            <p style='margin-left:5.75pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:6.0pt'><font size=2>Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act </font><br> <font size=2>(17 CFR 240.14d-2(b))</font></p> </td> </tr>
    <tr style='height:27.05pt'>
        <td width="5%" valign=top style=' height:27.05pt'>
            <p style='margin-left:5.75pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:6.0pt'><font size=2>|_|</font></p> </td>
        <td width="94%" valign=top style=' height:27.05pt'>
            <p style='margin-left:5.75pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:6.0pt'><font size=2>Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act </font><br> <font size=2>(17 CFR 240.13e-4(c))</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><b><font size=2>Item 5.02 Departure of Directors or Principal Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.</font></b></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(c) Appointment of Principal Officers</font><b></b></p> </td> </tr></table>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.54in;text-align:left;'><font size=2>On October 10, 2007, Pipex Pharmaceuticals, Inc., a Delaware corporation (the &#147;Registrant&#148;) appointed Dr. David A. Newsome as its Chief Scientific Officer. Dr. Newsome is a pioneer in the field of degenerative diseases involving metal dyshomeostasis and is the inventor of the Registrant&#146;s proprietary zinc-based moiety, zinc-monocysteine (&#147;Z-monocys&#148;).  </font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.54in;text-align:left;'><font size=2>Dr. Newsome previously practiced as an Ophthalmologist and Vireo-Retinal Surgeon at St. Luke&#146;s Cataract and Laser Institute in Tarpon Springs, Florida during 2006 and 2007 after serving as President of the Retinal Institute of Louisiana in New Orleans, Louisiana for 14 years. Dr. Newsome also previously served from 1988 through 1995 as Clinical Professor of Ophthalmology of the Tulane University School of Medicine and Professor of Ophthalmology and Director of Clinical Research in Retinal Dystrophies and Degenerations at the Louisiana State University Eye Center of the Louisiana State University Medical Center School of Medicine from 1985 through 1988.  </font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.54in;text-align:left;'><font size=2>Dr. Newsome received his Bachelor of Arts degree from Duke University and his Doctor of Medicine degree from the College of Physicians and Surgeons of Columbia University.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.54in;text-align:left;'><font size=2>In connection with his appointment as Chief Scientific Officer, the Registrant entered into a three year employment agreement with Dr. Newsome. The employment agreement provides that the Registrant will pay Dr. Newsome a $7,500 signing bonus and a base salary of $205,000 per year. The agreement also provides that Dr. Newsome is eligible for cash and non-cash bonuses at the end of each of the Registrant&#146;s fiscal years during the term of the agreement at the discretion of the Registrant&#146;s compensation committee as well as additional commission-based cash and stock bonuses during each fiscal year based on significant revenue-generating, out-licensing and merger and acquisition transactions initiated and completed by Dr. Newsome, again at the discretion of the compensation committee. </font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.54in;text-align:left;'><font size=2>The employment agreement also provides that the Registrant shall, subject to stockholder approval of the Registrant&#146;s 2007 Stock Incentive Plan, grant Dr. Newsome 150,000 stock options to purchase 150,000 shares of the Registrant&#146;s common stock, exercisable at the fair market value of the Registrant&#146;s common stock on the date of grant, with the options vesting quarterly in equal installments on each quarterly anniversary of the date of the employment agreement. </font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.54in;text-align:left;'><font size=2>Other than the employment agreement and the granting of stock options pursuant to the employment agreement, there have been no transactions since the beginning of the Registrant&#146;s last fiscal year, or any currently proposed transaction, or series of similar transactions, to which the Registrant was or is to be a party, in which the amount involved exceeds $120,000 and in which Dr. Newsome had or will have a direct or indirect material interest, except that on July 3, 2007 the Registrant entered into an exclusive license agreement with Dr. Newsome and David J. Tate, Jr. pursuant to which the Registrant licensed the rights for the manufacture, distribution and marketing of products based on Z-monocys. In addition, in January 2007, the Registrant paid Dr. Newsome and Mr. Tate $50,000 pursuant to a six month option agreement to exclusively license Z-monocys and also paid Dr. Newsome in January 2007 $10,000 in
 consulting fees.

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.54in;text-align:left;'><font size=2>Pursuant to the July 3, 2007 license agreement, the Registrant paid Dr. Newsome and Mr. Tate $65,000 and reimbursed them for past patent costs in the amount of $25,000. The Registrant also agreed to pay Dr. Newsome and Mr. Tate a royalty of 3% of the Net Sales from the sale of Licensed Product or the performance of Licensed Methods, all as defined the license agreement, and to make milestone payments totaling up to $1,400,000 dependent upon certain developmental and commercial milestones as described in the license agreement. These milestone payments are payable in shares of the Registrant&#146;s common stock or cash. The Registrant filed with the Securities and Exchange Commission a Current Report on Form 8-K on July 10, 2007 that includes the license agreement as an exhibit.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.54in;text-align:left;'><font size=2>There are no family relationships between Dr. Newsome and any other executive officer or director of the Registrant.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Item 9.01</font></b></p> </td>
        <td width="82%" valign=top >
            <p style='margin-left:5.4pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Financial Statements and Exhibits</font></b></p>
<p style='margin-left:5.4pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
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            <p style='margin-left:5.4pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(d)</font></p> </td>
        <td width="82%" valign=top >
            <p style='margin-left:5.4pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Exhibits</font></p>
<p style='margin-left:5.4pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
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            <p style='margin-left:5.4pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Exhibit No.</font></u><u></u></p> </td>
        <td width="82%" valign=top >
            <p style='margin-left:5.4pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Description</font></u></p>
<p style='margin-left:5.4pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
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            <p style='margin-left:5.75pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:12.0pt'><font size=2>10.1</font></p> </td>
        <td width="82%" valign=top >
            <p style='margin-left:5.75pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:12.0pt'><font size=2>Employment agreement </font></p> </td> </tr>
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            <p style='margin-left:5.75pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:12.0pt'><font size=2>99.1</font></p> </td>
        <td width="82%" valign=top >
            <p style='margin-left:5.75pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:12.0pt'><font size=2>Press Release</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:6pt;text-align:center;'><font SIZE=2>SIGNATURE</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>PIPEX PHARMACEUTICALS, INC.</font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Dated: October 15, 2007</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>By:  </font><u><font size=2>/s/ Steve H. Kanzer </font></u>                                                                                                       <font size=2>&nbsp;</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Steve H. Kanzer</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Chairman and Chief Executive Officer</font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>

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<DESCRIPTION>EXHIBIT 10.1
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font SIZE=2>EMPLOYMENT AGREEMENT</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.54in;text-align:justify;'><font size=2>This Agreement (&#147;Agreement&#148;), dated October 10, 2007 and effective on October 10, 2007, by and between Pipex Pharmaceuticals, Inc., a Corporation organized under the laws of the State of Delaware (the &#147;Corporation&#148;), and David A. Newsome, M.D., an individual (&#147;Employee&#148; or &#147;Chief Scientific Officer&#148;).</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>W I T N E S S E T H:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.54in;text-align:justify;'><font size=2>WHEREAS, the Corporation desires to extend employment to the Employee and Employee desires to be engaged and employed by the Corporation, respectively, all pursuant to the terms and conditions hereinafter set forth: </font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.64in;text-align:justify;'><font size=2>NOW THEREFORE, in consideration of the foregoing and the mutual promises and covenants herein contained, it is agreed as follows:</font></p>

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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font SIZE=2>EMPLOYMENT: DUTIES</font></u></p> </td> </tr></table>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>(a)  The Corporation engages and employs the Chief Scientific Officer as Chief Scientific Officer of the Corporation and, for the term of this Agreement as long as Chief Scientific Officer desires to serve.  It is expected that the employment duties of the Chief Scientific Officer will include reporting to the President and Chief Executive Officer for the full time high quality performance of overseeing the scientific direction of the Corporation&#146;s scientific programs relating to metal mediated diseases, with emphasis on zinc-moncysteine and macular degeneration,  assisting with product launches and marketing, intellectual property development, and assisting potential U.S. and international corporate partnerships, strategic alliances, mergers, acquisitions and strategic advice in connection with new product launches of the Corporation&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
 The Chief Scientific Officer shall devote approximately up to 50% of his professional time at the Corporation&#146;s  executive offices in Ann Arbor, Michigan or travelling on corporate business as agreed between the parties, while the remaining time may be devoted at an executive office in the Tampa-St. Petersburg area to be established at the Corporation&#146;s expense, provided, however, that the Chief Scientific Officer acknowledges and agrees that the performance by the Chief Scientific Officer of  duties hereunder will likely require significant domestic and international travel by the Chief Scientific Officer. </font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>(c)  The Corporation shall provide an office and computer for the Chief Scientific Officer, for use at the Corporation&#146;s executive offices as well cover the expenses associated with the establishment and maintenance of a corporate office in Tampa-St. Petersburg Florida.  The Corporation will be the party leasing space and  obligated for any continuing office expenses after termination of this Agreement..  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>(d) The Corporation shall provide a corporate apartment for the use of the Chief Scientific Officer without cost in Ann Arbor, Michigan, and cover his travel expenses.</font></p>

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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font SIZE=2>TERM</font></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.54in;text-align:justify;'><font size=2>The Chief Scientific Officer employment hereunder shall be for a three year period unless terminated earlier under Section 8 of this Agreement.</font></p>

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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font SIZE=2>COMPENSATION</font></u></p> </td> </tr></table>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.58in;text-align:justify;'><font size=2> (a) As compensation for the performance of his duties on behalf of the Corporation, Chief Scientific Officer shall receive the following:</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1.08in;text-align:justify;'><font size=2> (i) </font><u><font size=2>Base Salary</font></u><font size=2>. The Chief Scientific Officer shall receive a base salary of two hundred and five thousand dollars ($205,000) per year (the &#147;Base Salary&#148;).   </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1.08in;text-align:justify;'><font size=2> (ii) </font><u><font size=2>Stock Options</font></u><font size=2>. Subject to the approval of stockholders of the Corporation&#146;s stock option plan at an annual meeting of Stockholders (the next annual meeting is scheduled to be held on November 2, 2007), upon and subject to such approval, the Chief Scientific Officer shall receive an option to purchase the Corporation&#146;s publicly traded parent company&#146;s common stock (Pipex Pharmaceuticals, Inc.) equal to one hundred fifty thousand (150,000) options exercisable at the market price per share on the date of issue. These options will vest quarterly on each quarterly anniversary of the start date of employment  and for twelve (12) successive quarters while employed by the Corporation and  such options will remain exercisable for a period of ten years from the date of grant, unless terminated earlier.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1.08in;text-align:justify;'><font size=2> (iii)  Bonuses.  The Chief Scientific Officer shall be entitled to discretionary cash and non-cash bonuses at each year-end depending upon performance and recommendation of the Compensation Committee of the Corporation&#146;s board of directors, as well as additional commission based cash and stock bonuses during the year determined in the sole and exclusive discretion of the Compensation Committee in connection with significant revenue-generating, out-licensing and merger and acquisition transactions initiated and completed by the Chief Scientific Officer  Any such commission based compensation shall be required to be in writing signed by both parties in each instance and for pending transactions unless otherwise stated shall not survive termination of employment for any reason other than dismissal without cause.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1.08in;text-align:justify;'><font size=2> (iv)  Benefits.  The Corporation shall provide the Chief Scientific Officer and his children with health, dental, vision insurance coverage in accordance with Corporation&#146;s group health insurance policy. The Corporation shall also provide the Chief Scientific Officer participation in the Corporation&#146;s discretionary matching and profit sharing 401(k) plan. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1.08in;text-align:justify;'><font size=2> (v)   Vacation.  The Chief Scientific Officer shall be entitled to four (4) weeks paid vacation (i.e. 20 work days) per year,. During the first year of the contract, one week (5 business days) of vacation will vest quarterly.  Thereafter, the entire vacation allowance will vest on the annual anniversary date of the contract  The Corporation will be also be closed for business on the following 7 days: January 1, </font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Memorial Day, July 4, Labor Day, Thanksgiving and the Friday after Thanksgiving Day, and December 25. In the event that any of these paid Holidays fall on a weekend, management will announce (at the beginning of each calendar year) the substitute week date(s) allowable for the paid holiday and will be the day(s) immediately preceding or following the weekend in which the holiday falls.  In addition, employee&#146;s will be allowed one paid personal and one paid sick day per quarter, accruing at the beginning of each quarter.  In all cases, with the exception of sick days, the employee needs to notify management and the employees supervisor with a minimum two weeks prior written notice of the intent to use vacation days.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1.08in;text-align:justify;'><font size=2> (vi)  Signing Bonus.  The Corporation shall pay the Chief Scientific Officer a signing bonus of seven thousand five hundred thousand dollars ($7,500) at the start of employment.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.58in;text-align:justify;'><font size=2> (vii)  The Corporation shall reimburse the Chief Scientific Officer&#146;s attorney fees associated with the review of this contract up to a maximum of $2,500.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.58in;text-align:justify;'><font size=2> (b) The Corporation shall reimburse Chief Scientific Officer for all normal, usual and necessary expenses incurred by Chief Scientific Officer in furtherance of the business and affairs of the Corporation, including reasonable travel and entertainment, against receipt by the Corporation, as the case may be, of appropriate vouchers or other proof of Chief Scientific Officer expenditures and otherwise in accordance with such Expense Reimbursement Policy as may from time to time be adopted by the Corporation. The Corporation will issue a company  credit card to the Chief Scientific Officer for expenses.  The Chief Scientific Officer will account for such in accordance with the Corporation&#146;s policies. . </font></p>

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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font SIZE=2>REPRESENTATIONS AND WARRANTIES BY THE CHIEF SCIENTIFIC OFFICER</font></u></p> </td> </tr></table>


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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.58in;text-align:justify;'><font size=2> (a) Chief Scientific Officer hereby represents and warrants to the Corporation as follows:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1.08in;text-align:justify;'><font size=2> (i) Neither the execution and delivery of this Agreement nor the performance by the Chief Scientific Officer of his duties and other obligations hereunder violates or will violate any statute, law, determination or award, or conflict with or constitute a default under (whether immediately, upon the giving of notice or lapse of time or both) any prior employment agreement, contract, or other instrument to which the Chief Scientific Officer is a party or by which he is bound.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1.08in;text-align:justify;'><font size=2> (ii) Chief Scientific Officer has the full right, power and legal capacity to enter and deliver this Agreement and to perform his duties and other obligations hereunder. This Agreement constitutes the legal, valid and binding obligation of Chief Scientific Officer enforceable against him in accordance with its terms. No approvals or consents of any persons or entities are required for the Chief Scientific Officer to execute and deliver this Agreement or perform his duties and other obligations </font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>hereunder.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1.08in;text-align:justify;'><font size=2> (iii) The Chief Scientific Officer understands that some or all of the stock received by the Chief Scientific Officer pursuant to section 3(a) (iii) hereof will not be registered under the United States Securities Act of 1933 (the &#147;1933 Act&#148;), and acknowledges that he will be obligated to agree, as a condition to the issuance thereof, that he will acquire such stock for his own account for investment and not with a view to, or for resale in connection with a distribution thereof, and will bear the economic risk of his investment in such stock for an indefinite period of time.</font></p>

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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font SIZE=2>CONFIDENTIAL INFORMATION</font></u></p> </td> </tr></table>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.58in;text-align:justify;'><font size=2> (a) Except with prior written authorization by the Corporation, or in cases covered by confidential agreement, Chief Scientific Officer agrees that during the course of his employment or at any time thereafter, he will not disclose or make accessible to any other person, other than to the Corporation&#146;s employees  or other entities who are under a similar obligation to maintain the confidential status of the Corporation&#146;s information as confidential and who have a strict need to know of the existence of or access to such information in order to support the Chief Scientific Officers&#146; duties to the Corporation, the Corporation&#146;s confidential information concerning: products, services and technology, both current and under development, promotion and marketing programs, lists, trade secrets and other confidential and proprietary business information of the Corporation or
any affiliates or any of their clients (collectively, &#147;Confidential Information&#148;). The Chief Scientific Officer agrees not to use any such Confidential Information for himself or others. The Chief Scientific Officer agrees immediately to return all such material and reproductions thereof in his possession to the Corporation upon request and in any event upon termination of employment.  </font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.58in;text-align:justify;'><font size=2> (b) Except with prior written authorization by the Corporation, The Chief Scientific Officer agrees not to disclose or publish any of the confidential, technical or business information or material of the Corporation, its clients or any other party to whom the Corporation owes an obligation of confidence, at any time during or after his employment with the Corporation.</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.58in;text-align:justify;'><font size=2> (c) In the event that the Chief Scientific Officer breaches any provisions of this Section 6 or there is a threatened breach, then, in addition to any other rights which the Corporation may have, the Corporation shall be entitled, without the posting of a bond or other security, to injunctive relief to enforce the restrictions contained herein. In the event that an actual proceeding is brought in equity to enforce the provisions of this Section 6, the Chief Scientific Officer shall not urge as a defence that there is an adequate remedy at law, nor shall the Corporation be prevented from seeking any other remedies which may be available. In addition, the Chief Scientific Officer agrees that in event that he breaches the covenants in this Section 6, in addition to any other rights that the Corporation may have, the Chief Scientific Officer shall be required to pay to the Corporation any
amounts he receives in connection with such breach.</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.58in;text-align:justify;'><font size=2> (d) The Chief Scientific Officer recognizes that in the course of his duties hereunder, he may receive from the Corporation or others information which may be considered &#147;material, non-public information&#148; concerning a public company that is subject to the reporting requirements of the United States Securities and Exchange Act of 1934, as amended. The Chief Scientific Officer agrees not to:</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1.08in;text-align:justify;'><font size=2> (i) Buy or sell any security, option, bond or warrant while in possession of relevant material, non-public information received from the Corporation or others in connection herewith, and</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1.08in;text-align:justify;'><font size=2> (ii) Provide the Corporation with information with respect to any public company that may be considered material, non-public information, unless first specifically agreed to in writing by the Corporation.</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>The foregoing obligations of confidentiality, however, shall not apply or shall otherwise terminate if and when, but only to the extent that: (a) such Confidential Information is or shall become publicly known through no fault of the Chief Scientific Officer; (b) is in the Chief Scientific Officer&#146;s possession prior to employment thereof by the Corporation, such prior possession demonstrable by the Chief Scientific Officer&#146;s written records;  (c) is disclosed to the Chief Scientific Officer  by a third party that is under no obligation of confidentiality to the Corporation, such disclosure demonstrable by the Chief Scientific Officer&#146;s written records, or (d) the Chief Scientific Officer is compelled to disclose by legal process.  </font></p>

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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>INVENTIONS DISCOVERED BY THE CHIEF SCIENTIFIC OFFICER &nbsp;</font></u></p> </td> </tr></table>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.58in;text-align:justify;'><font size=2> (a) The Chief Scientific Officer shall promptly disclose to the Corporation any invention, improvement, discovery, process, formula, or method or other intellectual property, whether or not patentable or copyrightable, conceived or first reduced to practice by the Chief Scientific Officer, either alone or jointly with others, while performing services hereunder: (a) which pertain to any line of business activity of the Corporation, whether then conducted or then being actively planned by the Corporation, with which the Chief Scientific Officer was or is involved, (b) which is developed using time, material or facilities of the Corporation, whether or not during working hours or on the Corporation premises, or (c) which directly relates to any of the Chief Scientific Officer's work during his employment, whether or not during normal working hours (collectively, "Inventions").</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.58in;text-align:justify;'><font size=2> (b)  The Chief Scientific Officer hereby assigns to the Corporation all of the Chief Scientific Officer 's right, title and interest in and to any such Inventions. During and after the Term, the Chief Scientific Officer shall execute any documents necessary to perfect the assignment of such Inventions to the Corporation and to enable the Corporation to apply for, obtain and enforce patents, trademarks and copyrights in any and all countries on such Inventions, including, without limitation, the execution of any instruments and the giving of evidence and testimony, without further compensation </font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>beyond the Chief Scientific Officer agreed compensation during the course of the Chief Scientific Officer's employment. All such acts shall be done without cost or expense to the Chief Scientific Officer. The Chief Scientific Officer shall be compensated for the giving of evidence or testimony after the term of the Chief Scientific Officer 's employment at the rate of $1,000/day plus</font><font color="#FF0000"><font size=2> </font></font><font size=2>expenses. Without limiting the foregoing, the Chief Scientific Officer further acknowledges that all original works of authorship by the Chief Scientific Officer, whether created alone or jointly with others, related to the Chief Scientific Officer's employment with the Corporation and which are protectable by copyright, are "works made for hire" within the meaning of the United States Copyright Act, 17 U.S.C. (S) 101, as amended, and the copyright of which
shall be owned solely, completely and exclusively by the Corporation. If any Invention is considered to be work not included in the categories of work covered by the United States Copyright Act, 17 U. S. C. (S) 101, as amended, such work is hereby assigned or transferred completely and exclusively to the Corporation. The Chief Scientific Officer hereby irrevocably designates counsel to the Corporation as the Chief Scientific Officer's agent and attorney-in-fact to do all lawful acts necessary to apply for and obtain patents and copyrights and to enforce the Corporation's rights under this Section. This Section 5 shall survive the termination of this Agreement. Any assignment of copyright hereunder includes all rights of paternity, integrity, disclosure and withdrawal and any other rights that may be known as or referred to as "moral rights" (collectively "Moral Rights"). To the extent such Moral Rights cannot be assigned under applicable law and to the extent the following is allowed
by the laws in the various countries where Moral Rights exist, the Chief Scientific Officer hereby waives such Moral Rights and consents to any action of the Corporation that would violate such Moral Rights in the absence of such consent. The Chief Scientific Officer agrees to confirm any such waivers and consents from time to time as requested by the Corporation. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>(c.) Excluded from this paragraph 6 are any inventions conceived prior to employment with the Corporation.  In particular, the dilation enhancing methods and apparatus as disclosed in U.S. patent numbers 6,101,411, 7,151,960 and U.S. patent  application number 11/612941(the &#147;Dilation Technology&#148;). Any improvements to the Dilation Technology, irrespective of where or how developed, are excluded from assignment by this paragraph 6. </font></p>

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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>7.  </font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font SIZE=2>COMPETITION</font></u></p> </td> </tr></table>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>(a) During the period of the Chief Scientific Officer's employment by the Corporation, and for a period of one year after such employment  (the non-competition period) (regardless of the reasons for termination of employment), the Chief Scientific Officer will not (i) engage in; (ii) have any interest in any person, firm, or corporation that engages in; or (iii) perform any services for any person, firm, or corporation that engages in direct competition with the Corporation, or any of its subsidiaries in the development, research relating to, manufacture, processing, marketing, distribution, or sale of technology related to (i) copper related pharmaceuticals; (ii) zinc-related pharmaceuticals; (iii) thiomolybdate-related pharmaceuticals; provided, however, that this provision shall not prohibit Chief Scientific Officer from owning less than five </font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>percent (5%) of the stock of any publicly traded corporation, regardless of the nature of such corporation&#146;s activities.  In the event that the Chief Scientific Officer resigns on his own accord or is terminated for Cause, the non-competition  period shall be extended an additional year, for a total period of two years.   </font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>(b) Chief Scientific Officer will not, directly or indirectly, employ, solicit for employment, or advise or recommend to any other person that they employ or solicit for employment, any employee of the Corporation during the period of Chief Scientific Officer's employment by the Corporation and for a period of two (2) years thereafter. </font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>(c) The Chief Scientific Officer represents that his experience and capabilities are such that the provisions of this Section 7 will not prevent him from earning a livelihood. </font></p>

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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font SIZE=2>TERMINATION</font></u></p> </td> </tr></table>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>(a) </font><font size=2>Chief Scientific Officer</font><font size=2>&#146;s employment hereunder shall continue as set forth in Section 2 hereof unless terminated upon the first to occur of the following events:</font></p>

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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(i)</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The death or permanent disability of the </font><font size=2>Chief Scientific Officer</font><font size=2>,</font></p> </td> </tr></table>

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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(ii) </font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Termination by the Corporation for Cause. For the purpose of this Agreement, termination for </font><font size=2>&#147;Cause&#148; shall mean</font><font size=2> a termination for gross insubordination; acts of embezzlement or misappropriation of funds; fraud; dereliction of fiduciary obligation; conviction of a felony, a wilful unauthorized disclosure of confidential information belonging to the Corporation or entrusted to the Corporation by a client; a material violation of any provision of the Agreement which is not cured by the Employee within 15 days of receiving written notice of such violation by the Corporation; being under the influence of drugs (other than prescription medicine or other medically-related drugs to the extent that they are taken in accordance with their directions) during the
performance of Employee&#146;s duties under this Agreement, engaging in behaviour that would constitute grounds for liability for harassment (as proscribed by the U.S. Equal Employment Opportunity Commission Guidelines or any other applicable state or local regulatory body) or other egregious conduct that violates laws governing the workplace;  Termination for Cause shall also include the failure of the Chief Scientific Officer to perform his written assigned tasks, where such failure is attributable to the fault of the Chief Scientific Officer.  In this event,  the Corporation will first provide a written warning of such failure and the allocation of fault,  and provide a reasonable time period to cure such failure, in no case less than thirty days.   </font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Termination by the Corporation without Cause.  </font></p> </td> </tr></table>

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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(iv)</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Material breach by the Corporation of any provision of this agreement which is not cured by the Corporation within fifteen (15) days of written notice thereof from the Employee,  </font></p> </td> </tr></table>







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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(v)</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Termination by the Employee at any time.</font></p> </td> </tr></table>

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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Termination by the Corporation without Cause.</font></p> </td> </tr></table>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>(b) Exercise of Vested Options.  In the event of termination for any reason, Employee&#146;s stock vested options shall continue to be exercisable for a period of one year.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>(c) Severance.  In the event of termination by the Corporation without Cause, the Corporation shall continue to pay the Chief Scientific Officer&#146;s base salary for a period of six  (6) months.</font></p>

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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>9.</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font SIZE=2>NOTICES</font></u></p> </td> </tr></table>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.54in;text-align:justify;'><font size=2>Any notice or other communication under this Agreement shall be in person or in writing and shall be deemed to have been given (i) when delivered personally against receipt therefor, (ii) one (1) day after being sent by Federal Express or similar overnight delivery, (iii) three (3) days after being mailed registered or certified mail, postage prepaid, return receipt requested, to either party at the business address of the Corporation, the home address given in the employee file, or to such other address as such party shall give by notice hereunder to the other party, or (iv) when sent by facsimile, followed by oral confirmation and with a hard copy sent as in (ii) or (iii) above.</font></p>

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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font SIZE=2>SEVERABILITY OF PROVISIONS</font></u></p> </td> </tr></table>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.54in;text-align:justify;'><font size=2>If any provision of this Agreement shall be declared by a court of competent jurisdiction to be invalid, illegal or incapable of being enforced in whole or in part, such provision shall be interpreted so a to remain enforceable to the maximum extent permissible consistent with applicable law and the remaining conditions and provisions or portions thereof shall nevertheless remain in full force and effect and enforceable to the extent they are valid, legal and enforceable, and no provision shall be deemed dependent upon any other covenant or provision unless so expressed herein.</font></p>

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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>11.</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font SIZE=2>ENTIRE AGREEMENT MODIFICATION</font></u></p> </td> </tr></table>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.54in;text-align:justify;'><font size=2>This Agreement contains the entire agreement of the parties relating to the subject matter hereof, and the parties hereto have made no agreements, representations or warranties relating to the subject matter of this Agreement which are not set forth </font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>herein. No modification of this Agreement shall be valid unless made in writing and signed by the parties hereto.</font></p>

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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>12.</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font SIZE=2>BINDING EFFECT</font></u></p> </td> </tr></table>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.54in;text-align:justify;'><font size=2>The rights, benefits, duties and obligations under this Agreement shall inure to, and be binding upon, the Corporation, its successors and assigns, and upon the Chief Scientific Officer and his legal representatives. This Agreement constitutes a personal service agreement, and the performance of the Chief Scientific Officer&#146;s obligations hereunder may not be transferred or assigned by the Chief Scientific Officer.</font></p>

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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>13.</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font SIZE=2>NON-WAIVER</font></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.54in;text-align:justify;'><font size=2>The failure of either party to insist upon the strict performance of any of the terms, conditions and provisions of this Agreement shall not be construed as a waiver or relinquishment of future compliance therewith, and said terms, conditions and provisions shall remain in full force and effect. No waiver of any term or condition of this Agreement on the part of either party shall be effective for any purpose whatsoever unless such waiver is in writing and signed by such party.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>14.</font></p> </td>
        <TD WIDTH="93%" VALIGN="TOP">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font SIZE=2>GOVERNING LAW, DISPUTE RESOLUTION</font></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.54in;text-align:justify;'><font size=2>This Agreement shall be governed by, and construed and interpreted in accordance with, the laws of the State of Michigan of the United States of America without regard to principles of conflict of laws </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>15.</font></p> </td>
        <td width="93%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font SIZE=2>HEADING</font></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.54in;text-align:justify;'><font size=2>The headings of paragraphs are inserted for convenience and shall not affect any interpretation of this Agreement.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>16.</font></p> </td>
        <td width="93%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>DISPUTE RESOLUTION/ ARBITRATION.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.67in;text-align:left;'><font size=2>Except for a claim for injunctive relief, any controversy, dispute or claim arising out of or relating to this Agreement, or its interpretation, application, implementation, breach or enforcement which the parties are unable to resolve by mutual agreement, shall be settled by submission by the Corporation or the Chief Scientific Officer , of the controversy, claim or dispute to binding arbitration in any venue having jurisdiction over the parties, before a single arbitrator in accordance with the rules of the American Arbitration Association then in effect. In any such arbitration preceding the parties agree to provide all discovery deemed necessary by the arbitrator. The decision and award made by the arbitrator shall be final, binding and conclusive on all parties hereto for all purposes, and judgment may be entered thereon in any court having jurisdiction thereof. The prevailing party
shall be entitled to reimbursement by the other party for all reasonable costs of arbitration incurred by such prevailing part, including attorney&#146;s fees. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Page 9</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p STYLE=' MARGIN-BOTTOM:0PT; MARGIN-TOP:0PT;TEXT-ALIGN:JUSTIFY;'><FONT SIZE=2>PIPEX PHARMACEUTICALS, INC.</FONT></P>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><u><font size=2>_/s/ Steve H. Kanzer_______________________</font></u></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>By: Steve H. Kanzer</font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Title: Chairman and Chief Executive Officer</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Signed and Agreed to:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><u><font size=2>/s/ Dr. David A. Newsome_________________</font></u></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>By:</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>David A. Newsome, M.D.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Page 10</font></p> </td> </tr></table>

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<p style=' margin-bottom:3pt; margin-top:12pt;text-align:center;'><img src="img1.jpg"><br> </p>

<p style=' margin-bottom:3pt; margin-top:12pt;text-align:center;'><b><font size=5>Pipex Pharmaceuticals Appoints David A. Newsome, M.D. as Chief Scientific Officer</font></b></p>

<p style=' margin-bottom:5pt; margin-top:5pt;text-align:center;'><i><b><font size=3>Pioneer of Zinc Therapy for Age-Related Macular Degeneration and Inventor of Zinc-Monocysteine Joins Senior Management Team</font></b></i></p>

<p style=' margin-bottom:5pt; margin-top:5pt;text-align:justify;'><font size=2>ANN ARBOR, Michigan, October 15, 2007 -- Pipex Pharmaceuticals, Inc. (AMEX: PP), a specialty pharmaceutical company developing innovative late-stage drug candidates for the treatment of neurologic and fibrotic diseases, announced today that David A. Newsome, M.D. has joined the senior management team of Pipex as Chief Scientific Officer.  </font></p>

<p style=' margin-bottom:5pt; margin-top:5pt;text-align:justify;'><font size=2>"Dr. Newsome is a pioneer in the field of degenerative diseases involving metal dyshomeostasis, having first demonstrated the clinical benefit of oral high dose zinc therapy for dry age-related macular degeneration in 1988, now part of the standard of care for this disease that affects an estimated 10 million Americans.  Dr. Newsome&#146;s experience in transitioning research findings of metal dyshomeostasis into new therapies for patients ideally complements our leadership position in this expanding  disease area. As the inventor of Pipex&#146;s proprietary zinc-based moiety, zinc-monocysteine (Z-monocys), his addition to our senior management team comes at an important time as we advance our lead product candidate, COPREXA, through the NDA filing process and continue advanced development of Z-monocys for the treatment of dry age related macular degeneration and potential additional disease indications in
which copper and/or zinc dyshomeostasis are implicated", said Steve H. Kanzer, Chairman and Chief Executive Officer of Pipex. </font></p>

<p style=' margin-bottom:5pt; margin-top:5pt;text-align:justify;'><font size=2>Dr. David Newsome commented, &#147;I am delighted to be joining this environment of skilled drug developers and entrepreneurs at Pipex.  Over the last several months I have been extremely impressed with their knowledge of the effects of metals in various organ systems, including the eye and the central nervous system (CNS).&#148;</font></p>

<p style=' margin-bottom:5pt; margin-top:5pt;text-align:justify;'><font size=2>George J. Brewer, M.D., Professor Emeritus of University of Michigan, inventor of COPREXA as well as the FDA approved oral high dose zinc therapy for Wilson&#146;s disease maintenance therapy and Chairman of the Scientific Advisory Board of Pipex, stated, &#147;As a fellow clinical researcher also having substantial experience in diseases involving metal dyshomeostasis as well as the current issues and limitations of current high dose zinc therapy, I have a longstanding and great deal of respect for Dr. Newsome&#146;s pioneering efforts in this area.  I look forward to interacting with Dr. Newsome in his role at Pipex </font></p>

<p style=' margin-bottom:0pt; margin-top:5pt;text-align:justify;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:5pt; margin-top:5pt;text-align:justify;'><font size=2>and believe that our combined experience will complement Pipex&#146;s efforts to make new therapies available to patients suffering from diseases in which metal dyshomeostasis is implicated or suspected.&#148;   </font></p>

<p style=' margin-bottom:5pt; margin-top:5pt;text-align:justify;'><font size=2>Dr. Newsome practiced most recently as a Retina Specialist and Retino-vitreal Surgeon in the Tampa Bay area after serving 14 years as President of the Retinal Institute of Louisiana, as well as Clinical Professor of Opthalomolgy at the Tulane University School of Medicine, as well as a Professor Opthalomology at the Louisiana State University Medical Center.  In addition to active clinical practice, Dr. Newsome continued to pursue laboratory and clinical research.  He also held positions as Associate Professor of Ophthalmology at Johns Hopkins University.  From the late 70&#146;s to early 80&#146;s he was the Section Chief of the Retina and Ocular Connective Tissue Diseases at the National Eye Institute (NEI).  Dr. Newsome has authored over 150 peer-reviewed scientific publications and lectured extensively. </font></p>

<p style=' margin-bottom:5pt; margin-top:5pt;text-align:justify;'><font size=2>Dr. Newsome earned an A.B from Duke University and an M.D. degree from Columbia University.  </font></p>

<p style=' margin-bottom:11pt; margin-top:0pt;text-align:justify;'><font size=2>About Z-monocys</font></p>

<p style=' margin-bottom:11pt; margin-top:0pt;text-align:justify;'><font size=2>Zinc-monocysteine complexes (Z-monocys) increases the activity of antioxidant enzymes catalase and glutathione peroxidase, and the antioxidant protein metallothionein in cultured retinal pigment epithelial cells more efficiently and potently than currently available zinc formulations.  Z-monocys also has the potential to overcome some of the inherent limitations of existing high dose oral zinc therapies.  These complexes are the subject of a recently issued U.S. patent covering its composition of matter as well as pending additional patent applications and various uses thereof.  Z-monocys has completed an 80 patient, double-blind, placebo-controlled, clinical trial demonstrating a statistically significant improvement in visual acuity and other parameters of dry AMD.  A manuscript describing these results has been submitted for publication in leading peer-reviewed publication.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>About COPREXA</font></p>

<p style=' margin-bottom:5pt; margin-top:5pt;text-align:justify;'><font size=2>COPREXA is an oral, small-molecule, anti-copper agent that is highly specific for the reduction of free copper in serum, the most toxic form of copper in the body, and is thus ideally suited for the treatment of central nervous system (CNS) diseases in which abnormal serum and CNS copper homeostasis are implicated.  We are also developing COPREXA for fibrotic disorders based upon the rationale that the fibrotic disease process is dependent upon the availability of free copper in the body.  COPREXA has demonstrated the ability to inhibit fibrosis in a number of well established animal models through the sequestration of available copper and inhibition of key fibrotric cytokines, including secreted protein acid rich in cysteine (SPARC), NF?B, TGF-&#223;, FGF-2, IL-1, IL-6, IL-8, and connective tissue growth factor (CTGF).  Pipex intends to submit a New Drug Application this November for COPREXA for the treatment
of initially presenting neurologic Wilson&#146;s disease.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>About Pipex Pharmaceuticals, Inc. </font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Pipex Pharmaceuticals, Inc. (&#147;Pipex&#148;) is a specialty pharmaceutical company that is developing proprietary, late-stage drug candidates for the treatment of neurologic and fibrotic diseases  Pipex&#146;s strategy is to exclusively in-license proprietary, clinical-stage drug candidates and complete the further clinical testing, manufacturing and regulatory requirements sufficient to seek marketing authorizations via the filing of New Drug Applications (NDAs) with the FDA in the U.S. and Marketing Application Authorizations (MAAs) with the European Medicines Evaluation Agency (EMEA).  For further information, please visit, www.pipexinc.com.  </font></p>

<p style=' margin-bottom:5pt; margin-top:5pt;text-align:justify;'><font size=2>This press release contains forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, that reflect Pipex Pharmaceuticals, Inc. and Pipex Therapeutics, Inc. (&#147;we&#148; or &#147;our&#148;) current expectations about its future results, performance, prospects and opportunities, including statements, as well as its the prospects for regulatory filings in the treatment of neurologic Wilson&#146;s disease and the future prospects of our Z-monocys program.  Where possible, the Company has tried to identify these forward-looking statements by using words such as "anticipates," "believes," "intends," or similar expressions. These statements are subject to a number of risks, uncertainties and other factors that could cause actual events or results in future periods to differ materially from what is expressed in, or implied by, these statements. We cannot assure you
that we will be able to successfully develop or commercialize products based on our technologies, including COPREXA&#153;, TRIMESTA&#153;, Z-monocys, SOLOVAX&#153;, EFFIRMA&#153; or Anti-CD4 802-2, particularly in light of the significant uncertainty inherent in developing, manufacturing and conducting preclinical and clinical trials of new pharmaceuticals, and obtaining regulatory approvals, that our technologies will prove to be safe and effective, that our cash expenditures will not exceed projected levels, that we will be able to obtain future financing or funds when needed, that product development and commercialization efforts will not be reduced or discontinued due to difficulties or delays in clinical trials or due to lack of progress or positive results from research and development efforts, that we will be able to successfully obtain any further grants and awards, maintain our existing grants which are subject to performance, that we will be able to patent, register or
protect our technology from challenge and products from competition or maintain or expand our license agreements with our current licensors, or that our business strategy will be successful. All forward-looking statements made in this press release are made as of the date hereof, and the Company assumes no obligation to update the forward-looking statements included in this news release whether as a result of new information, future events, or otherwise. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth or implied by any forward- looking statements.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>For Further Information Contact:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Steve H. Kanzer, CPA, Esq.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Chairman and Chief Executive Officer</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>(734) 332-7800</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Redington, Inc. (Investor Relations)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Thomas Redington</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>203-222-7399</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>www.redingtoninc.com</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>



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`
end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
