Exhibit 10.37

 

RITA MEDICAL SYSTEMS, INC.

 

AMENDED AND RESTATED CONSULTING AGREEMENT

 

This Amended and Restated Consulting Agreement (the “Agreement”) is entered into
by and between RITA Medical Systems, Inc. (the “Company”), a Delaware
corporation and Randy D. Lindholm (“Consultant”).

 

WHEREAS, Consultant and the Company have previously entered into that certain
Consulting Agreement (the “Original Consulting Agreement”) effective as of April
25, 2003 (the “Effective Date”); and

 

WHEREAS, Consultant and the Company now desire to amend and restate the terms of
the Original Consulting Agreement and to supersede it in its entirety with the
terms set forth herein.

 

NOW THEREFORE, in consideration of the mutual promises contained herein, Company
and Consultant agree as follows:

 

1.    Consulting Relationship.    During the term of this Agreement, Consultant
will provide consulting services (the “Services”) to the Company as described on
Exhibit A attached to this Agreement. Consultant represents that Consultant is
duly licensed (as applicable) and has the qualifications, the experience and the
ability to properly perform the Services. Consultant shall use Consultant’s best
efforts to perform the Services such that the results are satisfactory to the
Company. Consultant shall be available to the Company upon the Company’s
reasonable request in accordance with the schedule set forth on Exhibit B
attached to this Agreement.

 

2.    Fees.    As consideration for the Services to be provided by Consultant
and other obligations, the Company shall pay to Consultant the amounts specified
in Exhibit B attached to this Agreement in the manner and at the times specified
therein.

 

3.    Expenses.    Consultant shall not be authorized to incur on behalf of the
Company any expenses, without the prior consent of the either a member of the
Company’s Board of Directors or the Company’s Chief Executive Officer, which
consent shall be evidenced in writing for any expenses in excess of $1,000.00.
As a condition to receipt of reimbursement, Consultant shall be required to
submit to the Company reasonable evidence that the amount involved was expended
and related to Services provided under this Agreement.

 

4.    Term and Termination.    Consultant shall serve as a consultant to the
Company for a period commencing on the Effective Date and terminating on June
30, 2004; provided, however, that the Consulting Relationship shall terminate
prior to such date if at any time after July 24, 2003, the Company desires to
terminate this Agreement. Such termination shall be effective upon ten days’
prior written notice to Consultant, which notice shall be executed by the
Chairman of the Company’s Board of Directors. In the event that this Agreement
is terminated by the Company, Consultant shall receive a termination fee (the
“Termination Fee”) equal to the greater of (i) the amount owed to Consultant for
the remaining term of this Agreement or (ii) the amount owed to Consultant for
the provision of an additional three months of Services, each in accordance with
the schedule set forth on Exhibit B attached to this Agreement. The Termination
Fee shall be paid to Consultant in a lump sum payment. In the event that this
Agreement is terminated by Consultant, Consultant shall be paid for any portion
of the Services that have been performed prior to the date of such termination.

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5.    Independent Contractor.    Consultant’s relationship with the Company will
be that of an independent contractor and not that of an employee.

 

(a)    Method of Provision of Services:    Consultant shall be solely
responsible for determining the method, details and means of performing the
Services. Consultant may, at Consultant’s own expense, employ or engage the
service of such employees or subcontractors as Consultant deems necessary to
perform the Services required by this Agreement (the “Assistants”). Such
Assistants are not the employees of the Company and Consultant shall be wholly
responsible for the professional performance of the Services by his Assistants
such that the results are satisfactory to the Company. Consultant shall
expressly advise the Assistants of the terms of this Agreement, and shall
require each Assistant to execute a Confidential Information and Invention
Assignment Agreement substantially in the form attached to this Agreement as
Exhibit C (the “Confidentiality Agreement”).

 

(b)    No Authority to Bind Company.    Neither Consultant, nor any partner,
agent or employee of Consultant, has authority to enter into contracts that bind
the Company or create obligations on the part of the Company without the prior
written authorization of the Company.

 

(c)    No Benefits.    Consultant acknowledges and agrees that Consultant (or
Consultant’s employees, if Consultant is an entity) will not be eligible for any
Company employee benefits and, to the extent Consultant (or Consultant’s
employees, if Consultant is an entity) otherwise would be eligible for any
Company employee benefits but for the express terms of this Agreement,
Consultant (on behalf of itself and its employees) hereby expressly declines to
participate in such Company employee benefits.

 

(d)    Withholding; Indemnification.    Consultant shall have full
responsibility for applicable withholding taxes for all compensation paid to
Consultant, its partners, agents or its employees under this Agreement, and for
compliance with all applicable labor and employment requirements with respect to
Consultant’s self-employment, sole proprietorship or other form of business
organization, and Consultant’s partners, agents and employees, including state
worker’s compensation insurance coverage requirements and any US immigration
visa requirements. Consultant agrees to indemnify, defend and hold the Company
harmless from any liability for, or assessment of, any claims or penalties with
respect to such withholding taxes, labor or employment requirements, including
any liability for, or assessment of, withholding taxes imposed on the Company by
the relevant taxing authorities with respect to any compensation paid to
Consultant or Consultant’s partners, agents or its employees.

 

6.    Supervision of Consultant’s Services.    All of the Services to be
performed by Consultant, including but not limited to the Services, will be as
agreed between Consultant and the Chairman of the Company’s Board of Directors.
Consultant will be required to report to the Chairman of the Company’s Board of
Directors concerning the Services performed under this Agreement. The nature and
frequency of these reports will be left to the discretion of the Chairman of the
Company’s Board of Directors.

 

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7.    Consulting or Other Services for Competitors.    Consultant represents and
warrants that Consultant does not presently perform or intend to perform, during
the term of the Agreement, consulting or other services for, or engage in or
intend to engage in an employment relationship with, companies who businesses or
proposed businesses in any way involve products or services which would be
competitive with the Company’s products or services, or those products or
services proposed or in development by the Company during the term of the
Agreement (except for those companies, if any, listed on Exhibit D attached
hereto). If, however, Consultant decides to do so, Consultant agrees that, in
advance of accepting such work, Consultant will promptly notify the Company in
writing, specifying the organization with which Consultant proposes to consult,
provide services, or become employed by and to provide information sufficient to
allow the Company to determine if such work would conflict with the terms of
this Agreement, including the terms of the Confidentiality Agreement, the
interests of the Company or further services which the Company might request of
Consultant. If the Company determines that such work conflicts with the terms of
this Agreement, the Company reserves the right to terminate this Agreement
immediately.

 

8.    Confidentiality Agreement.    Consultant shall sign, or has signed, a
Confidential Information and Invention Assignment Agreement substantially in the
form attached to this Agreement as Exhibit C (the “Confidentiality Agreement”),
on or before April 25, 2003. In the event that Consultant is an entity or
otherwise will be causing individuals in its employ or under its supervision to
participate in the rendering of the Services, Consultant warrants that it shall
cause each of such individuals to execute a Confidentiality Agreement in the
form attached as Exhibit C.

 

9.    Conflicts with this Agreement.    Consultant represents and warrants that
neither Consultant nor any of Consultant’s partners, employees or agents is
under any pre-existing obligation in conflict or in any way inconsistent with
the provisions of this Agreement. Consultant represents and warrants that
Consultant’s performance of all the terms of this Agreement will not breach any
agreement to keep in confidence proprietary information acquired by Consultant
in confidence or in trust prior to commencement of this Agreement. Consultant
warrants that Consultant has the right to disclose and/or or use all ideas,
processes, techniques and other information, if any, which Consultant has gained
from third parties, and which Consultant discloses to the Company or uses in the
course of performance of this Agreement, without liability to such third
parties. Notwithstanding the foregoing, Consultant agrees that Consultant shall
not bundle with or incorporate into any deliveries provided to the Company
herewith any third party products, ideas, processes, or other techniques,
without the express, written prior approval of the Company. Consultant
represents and warrants that Consultant has not granted and will not grant any
rights or licenses to any intellectual property or technology that would
conflict with Consultant’s obligations under this Agreement. Consultant will not
knowingly infringe upon any copyright, patent, trade secret or other property
right of any former client, employer or third party in the performance of the
Services required by this Agreement.

 

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10.    Miscellaneous.

 

(a)    Amendments and Waivers.    Any term of this Agreement may be amended or
waived only with the written consent of the parties.

 

(b)    Sole Agreement.    This Agreement, including the Exhibits hereto,
constitutes the sole agreement of the parties and supersedes all oral
negotiations and prior writings with respect to the subject matter hereof.

 

(c)    Notices.    Any notice required or permitted by this Agreement shall be
in writing and shall be deemed sufficient upon receipt, when delivered
personally or by courier, overnight delivery service or confirmed facsimile, 48
hours after being deposited in the regular mail as certified or registered mail
(airmail if sent internationally) with postage prepaid, if such notice is
addressed to the party to be notified at such party’s address or facsimile
number as set forth below, or as subsequently modified by written notice.

 

(d)    Choice of Law.    The validity, interpretation, construction and
performance of this Agreement shall be governed by the laws of the State of
California, without giving effect to the principles of conflict of laws.

 

(e)    Severability.    If one or more provisions of this Agreement are held to
be unenforceable under applicable law, the parties agree to renegotiate such
provision in good faith. In the event that the parties cannot reach a mutually
agreeable and enforceable replacement for such provision, then (i) such
provision shall be excluded from this Agreement, (ii) the balance of the
Agreement shall be interpreted as if such provision were so excluded and (iii)
the balance of the Agreement shall be enforceable in accordance with its terms.

 

(f)    Counterparts.    This Agreement may be executed in counterparts, each of
which shall be deemed an original, but all of which together will constitute one
and the same instrument.

 

(g)    Arbitration.    Any dispute or claim arising out of or in connection with
any provision of this Agreement will be finally settled by binding arbitration
in Santa Clara County, California, in accordance with the rules of the American
Arbitration Association by one arbitrator appointed in accordance with said
rules. The arbitrator shall apply California law, without reference to rules of
conflicts of law or rules of statutory arbitration, to the resolution of any
dispute. Judgment on the award rendered by the arbitrator may be entered in any
court having jurisdiction thereof. Notwithstanding the foregoing, the parties
may apply to any court of competent jurisdiction for preliminary or interim
equitable relief, or to compel arbitration in accordance with this paragraph,
without breach of this arbitration provision. This Section 10(g) shall not apply
to the Confidentiality Agreement.

 

(h)    Advice of Counsel.    EACH PARTY ACKNOWLEDGES THAT, IN EXECUTING THIS
AGREEMENT, SUCH PARTY HAS HAD THE OPPORTUNITY TO SEEK THE ADVICE OF INDEPENDENT
LEGAL COUNSEL, AND HAS READ AND UNDERSTOOD ALL OF THE TERMS AND PROVISIONS OF
THIS AGREEMENT. THIS AGREEMENT SHALL NOT BE CONSTRUED AGAINST ANY PARTY BY
REASON OF THE DRAFTING OR PREPARATION HEREOF.

 

[Signature Page Follows]

 

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The parties have executed this Agreement on the respective dates set forth
below.

 

RITA MEDICAL SYSTEMS, INC.

By:

  /S/    VINCENT BUCCI            

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Title:

  Chairman of the Board    

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Address:

       

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Date:  August 5, 2003

 

 

RANDY D. LINDHOLM /S/    RANDY LINDHOLM        

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Signature

Address:

       

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Date:  August 5, 2003

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EXHIBIT A

 

DESCRIPTION OF CONSULTING SERVICES

 

Description of Services

 

Consultant shall provide advice to the Company in his field of expertise and
shall introduce the Company to potential employees, consultants, customers and
partners.

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EXHIBIT B

 

CONSULTING SCHEDULE AND COMPENSATION

 

Consultant shall perform the Services upon the Company’s reasonable request in
accordance with the following schedule:

 

Period

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Schedule

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Fee

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4/25/03-7/24/03   An average of three days per week   $125,000 7/25/03-9/30/03  
Two days per month   $10,000 per month ($5,000 per day) 10/01/03-12/31/03   Two
days per month   $6,000 per month ($3,000 per day) 1/01/03-6/30/04   One day per
month   $3,000 per day

 

All amounts due hereunder shall be paid to Consultant monthly in advance (the
“Advance”). In the event that the Company requests that Consultant provide
additional Services, Consultant shall be paid a fee of $5,000 per day for the
provision of such Services. Any additional amount owed to Consultant for the
prior month shall be included in the next Advance paid to Consultant.

 

The Company will recommend that the Board grant Consultant a non-qualified
option to purchase 25,000 shares of the Company’s Common Stock (the “Initial
Shares”), at an exercise price equal to the fair market value of the Company’s
Common Stock on the date of grant, and which will vest and become exercisable as
follows: 1/48th of the Initial Shares will vest each month following the grant
date.

 

In addition, the Company will recommend that the Board grant Consultant a
non-qualified option to purchase 10,000 shares of the Company’s Common Stock
(the “Subsequent Shares”), at an exercise price equal to the fair market value
of the Company’s Common Stock on the date of grant, and which will vest and
become exercisable as follows: 1/24th of the Subsequent Shares will vest each
month following the grant date.

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EXHIBIT C

 

CONFIDENTIAL INFORMATION AND

INVENTION ASSIGNMENT AGREEMENT

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EXHIBIT D

 

LIST OF COMPANIES

EXCLUDED UNDER SECTION 7

 

____ No conflicts

 

____ Additional Sheets Attached

 

Signature of Consultant: _______________________________________

 

Print Name of Consultant: _______________________________________

 

Date: