exv10w01





Exhibit
10.01


CONSULTING AGREEMENT


Consultant: Kenneth E. Schwartz, M.D.


Effective Date: October 3, 2008


     THIS AGREEMENT is by and between Genelabs Technologies, Inc. (“Genelabs”), a California
corporation with its principal place of business at 505 Penobscot Drive, Redwood City, CA 94063 and
Consultant.


     1. Engagement. Subject to the terms and conditions of this Agreement, Genelabs hereby engages
Consultant to provide the personal consulting services described in Exhibit A (the “Services”) and
Consultant agrees to such engagement. Consultant shall perform its services in a professional,
efficient and thorough manner consistent with the standards of service demonstrated by similar
consultants of similar expertise in the industry. Consultant agrees that its Services will
coordinate with Genelabs’ protocols, security requirements, staff and specialized equipment.
Consultant warrants that all materials supplied and work performed by it under this Agreement will
comply with all applicable laws and regulations.


     2. Compensation. As full and complete compensation for the Services of Consultant, Genelabs
shall pay Consultant in accordance with the schedule of payments or hourly or daily rate as
specified in Exhibit A. Compensation for Services will not exceed the maximum amounts specified in
Exhibit A. Consultant will also be reimbursed for reasonable travel, food and lodging expenses
incurred in performing the Services, up to the maximum amount specified in Exhibit A; provided
that, all travel expenses must be in accordance with Genelabs travel policies and all expenses must
be approved in advance by Genelabs. Consultant shall invoice Genelabs on a monthly basis for
Services performed and expenses incurred during the preceding month. Consultant will bill time in
increments of one-fourth (1/4) of an hour. Invoices shall itemize compensation (separately setting
out travel time) and expenses and include supporting documentation in form and detail reasonably
sufficient for tax purposes. Genelabs shall pay all such complete invoices within thirty (30) days
of receipt.


     3. Term of Agreement Unless otherwise specified in Exhibit A, this Agreement shall continue
in force until September 30, 2009, subject to extension upon mutual written agreement of the
parties. Genelabs may terminate this Agreement upon prior written notice to Consultant. In the
event this Agreement is terminated, Consultant shall promptly wind up its work, provide Genelabs
with work-in-progress and comply with the requirements for return of property set forth in Section
5.4. If compensation has been advanced to Consultant, Consultant shall reimburse any amounts for
which work not performed.


     4. Independent Contractor. Consultant enters into this Agreement as, and shall continue to
be, an independent contractor. Under no circumstances shall Contractor look to Genelabs as
Consultant’s employer, partner, agent, or principal. Consultant shall have no authority to bind or
speak for Genelabs except as may be specifically given in writing to Consultant from time to time.
Except as otherwise agreed in writing, Consultant shall not be entitled to benefits accorded to
Genelabs employees including, without limitation, worker’s compensation, disability insurance,
health insurance, vacation, holidays or sick pay. Consultant shall be responsible for providing,
at Consultant’s expense and in Consultant’s name, any disability, worker’s compensation or other
insurance as well as any licenses and permits usual or necessary for conducting the Services
hereunder. Consultant shall pay, when and as due, any and all taxes incurred as a result of
Consultant’s compensation hereunder including, without limitation, self-employment, income and
estimated taxes. Consultant hereby indemnifies Genelabs for any costs or liabilities to Genelabs
arising out of Consultant’s failure to pay all taxes applicable to Consultant’s compensation under
this Agreement.


 








 




     5. Limited liability

With regard to the services to be performed by the Consultant pursuant to the terms of this
agreement, the Consultant shall not be liable to Genelabs or to anyone who may claim any right due
to his relationship with Genelabs, for any acts or omissions in the performance of said services on
the part of the Consultant except when said acts or omissions of the Consultant are due to gross
negligence or willful misconduct. The Client shall hold the Consultant free and harmless from any
obligations, costs, claims, judgments, attorneys’ fees, and attachments arising from or growing out
of the services rendered to Genelabs pursuant to the terms of this agreement or in any way
connected with the rendering of said services, except when the same shall arise due to the gross
negligence or willful misconduct of the Consultant.


     6. Proprietary Information.


     6.1 “Proprietary Information” shall mean all Genelabs (or Genelabs affiliate) technology,
trade secrets, know-how, inventions, improvements, information, documents, materials and other
property, whether of a technical, scientific, business, financial or other nature, furnished or
disclosed to Consultant or obtained by Consultant in connection with the activities of Consultant
under this Agreement, including information received by Genelabs from a third party. By way of
illustration only and not limitation: information includes formulas, formulations, sequences,
constructs, data, bioassays, costs, suppliers, profits, markets, sources of funds, research
projects, plans for future experiments and developments, and failed experiments; documents include
notebooks, memoranda, letters, papers, records, reports, data, software programs, search reports,
electronic data recorded or retrieved by any means, drawings, sketches, schematics, models and
prototypes; materials include samples of nucleic acids, proteins, tissue, cells, viruses,
chemicals, and media. Proprietary Information shall not include information which is publicly
known through no breach of this Agreement or other written confidential disclosure agreements
between the parties by Consultant, obtained from a third party without restriction who has the
legal right to disclose the information to Consultant, or known to Consultant before entering into
this Agreement independently of, and without reference to confidential and/or trade secret
information belonging to the Company as evidenced by Consultant’s written records predating this
Agreement.


     6.2 Consultant shall maintain in confidence and shall not directly or indirectly, either
during or after the term of this Agreement, (a) use any Proprietary Information for purposes except
providing services to Genelabs, or (b) disclose to anyone outside of Genelabs any Proprietary
Information without prior written authorization from a Genelabs employee having the authority to
grant such authorization.


     6.3 This Agreement constitutes a limited license to Consultant to use Proprietary Information
solely for the purpose of performing the Services under this Agreement. Proprietary Information
shall not be used by Consultant in any research or other work that is or may be subject to
employment, consulting, commercial licensing or contracted research obligations to another person
or entity, unless written permission is first obtained by Consultant from Genelabs. Except for the
limited license to use Proprietary Information to perform the Services, Consultant acknowledges
that no license or other rights are granted to Consultant under this Agreement with respect to any
existing or future, issued or pending patents, trade secrets or know-how of Genelabs or any
Genelabs affiliate or licensee.


     6.4 Upon termination of this Agreement, or at the request of Genelabs prior to termination,
Consultant shall promptly return all Proprietary Information Consultant may have to Genelabs,
including all materials, property, documents, copies, summaries, or extracts, and, if requested by
Genelabs, Consultant shall execute a certificate warranting that all Proprietary Information has
been returned to Genelabs in accordance with this Agreement and erased from any electronic media
used by Consultant.


     7. Intellectual Property Produced Under This Agreement.


     7.1 Genelabs shall have the worldwide right, without the payment of any additional
compensation, to use, duplicate and disclose in any manner and for all purposes and to authorize
others


2








 







so to do, all data, writings, reports, or other information and items produced and delivered by
Consultant to Genelabs under this Agreement.



     7.2 Consultant agrees that all technology, designs, plans, reports, specifications, drawings,
schematics, prototypes, data, writings, models, materials, ideas, processes, computer programs,
discoveries, innovations, inventions, improvements and other information and items conceived,
created, developed, authored or reduced to practice by Consultant during the course of, and arising
from the Services under, this Agreement (“New Developments”) shall be and hereby are assigned to
Genelabs as its sole and exclusive property. Consultant shall promptly disclose to Genelabs all
New Developments and shall treat New Developments as Proprietary Information, subject to all of the
provisions set forth in section 5, above. Consultant agrees that Genelabs and its licensees shall
have the sole and exclusive right, without further payment obligation, to use, disclose,
commercialize and exploit the work product provided by Consultant to Genelabs.


     7.3 At the request of Genelabs, during the term of this Agreement and thereafter, Consultant
agrees to execute applicable U.S. and foreign patent and copyright papers covering any New
Developments deemed by Genelabs to be patentable or otherwise registrable, including documents of
inventorship, authorship, and assignment, as well as any documents that Genelabs may reasonably
deem necessary or helpful in the prosecution of applications for patents or copyrights thereon or
in connection with any litigation or controversy relating thereto. Should Genelabs be unable to
secure Consultant’s signature on any document necessary to apply for, prosecute, obtain, or enforce
any patent, copyright, or other right or protection relating to any New Developments, Consultant
hereby irrevocably appoints Genelabs and its duly authorized officers and agents as Consultant’s
agent and attorney-in-fact, to execute and file any such document, and to do all other lawfully
permitted acts to further the prosecution, issuance, and enforcement of patents, copyrights, or
other rights or protections with the same force and effect as if executed and delivered by
Consultant. All expenses incident to the filing of applications, the prosecution thereof, the
conduct of litigation, and other activities under this Section 6.3 shall be borne by Genelabs, and
Consultant shall receive reasonable compensation for any services Consultant performs in obtaining,
perfecting, maintaining and enforcing Genelabs’ interests in such New Developments.


     8. Conflicts of Interest.


     8.1 This Agreement is non-exclusive. However, during the term of this Agreement, Consultant
shall not engage in any activity (whether as an individual, consultant, proprietor, joint venturer
or in any other capacity) that involves the research, development, clinical trials, marketing or
selling of products substantially similar to, or directly competitive with, any product under
development by Genelabs in the field of Consultant’s Services under this Agreement. During the term
of this Agreement, Consultant shall promptly notify Genelabs of any developments which would make
the foregoing representation untrue or inaccurate in any respect.


     8.2 In performing the Services under this Agreement, Consultant shall not disclose to Genelabs
or make any unauthorized use of trade secrets or other confidential or proprietary information or
technology developed by or acquired from third parties. Consultant represents that Consultant’s
performance of the terms of this Agreement and use of its work product by Genelabs and its
licensees will not breach any duty which Consultant might owe to any third party, and that
Consultant has not entered into any agreement, written or oral, in conflict with this Agreement.


     9. Governing Law. This Agreement shall be governed by and interpreted in accordance with the
laws of the State of California, exclusive of the choice of law rules, and venue for any action
shall be the County of San Mateo, State of California.


     10. Miscellaneous. This Agreement, including the attached Exhibits which are hereby
incorporated by reference, sets forth the entire agreement between the parties relating to its
subject matter, and supersedes all prior written and verbal understandings and agreements relative
to the subject matter hereof, except any prior confidentiality agreements. This Agreement may be
amended only by a


3








 




writing signed by both parties. Consultant shall not assign any right nor delegate any obligations
under this Agreement except with the prior written consent of Genelabs.


     11. Debarment Certification. Neither Consultant nor any person employed by Consultant has
been debarred by the U.S. Food and Drug Administration (the “FDA”) under 21 U.S.C. § 335a, or has
been disqualified by the FDA pursuant to 21 CFR § 312.70, and no debarred or disqualified person
will in the future be employed by Consultant in connection with any work to be performed for or on
behalf of Genelabs which may later become part of any application for approval of a drug or
biologic by the FDA. If at any time after execution of this Agreement, Consultant becomes aware
that Consultant or any person employed by Consultant is in the process of being debarred or
disqualified, Consultant hereby certifies that Consultant will so notify Genelabs at once. If
Consultant or its employee are or may be debarred, Genelabs may terminate this Agreement
immediately.


     12. Survival of Provisions. The following provisions shall survive termination of this
agreement: Sections 4, 6 (for a period of five (5) years after the termination of this Agreement),
7, 9, 10 and 12.


	 	 	 	 	 
	AGREED TO:
	 	 	 	 
		 	 	 	 
	 CONSULTANT
	 	Genelabs Technologies, Inc.	 	 
	 	 	 	 	 
	/s/ Kenneth E. Schwartz, M.D. 

By: Kenneth E. Schwartz, M.D.
	 	/s/ Roy Wu 

By: Roy Wu
	 	 
	 	 	 	 	 
	 	 	Title: V. P. Business
Development 

	 	 




4








 




EXHIBIT A


Consultant’s Name: Kenneth E. Schwartz, M.D.


Social Security or Employer Identification No.:


Business Address:


Telephone Number:

Mobile Number:

Fax:

E-Mail:

Term of Agreement: October 3, 2008 – September 30, 2009


Consultant’s Services: Evaluation of certain therapeutic technologies and related clinical and
regulatory affairs matters.


Genelabs Contact, Dept., Cost Center:

Roy Wu

V.P. Business Development

Time to be Devoted to Services:


Neither Genelabs nor Consultant is obligated to any minimum number of hours of Services under this
Agreement, provided, however, that in no event shall the parties exceed sixteen (16) hours of
Services per month during the term of this Agreement without the prior consent of the parties in
writing (including without limitation facsimile or email).


Compensation:


Consultant will be paid at the rate of three hundred dollars ($300) per hour with a maximum of two
thousand four hundred dollars ($2,400) per day, plus the authorized expenses set forth in Section 2
of the Agreement.


For any travel requested by Genelabs, Genelabs will pay Consultant at the rate of One Hundred Fifty
Dollars ($150.00) per hour with a maximum of one thousand two hundred dollars ($1,200) per day for
actual travel time incurred.


5