Document:

exv10w20

 

Exhibit 10.20

EMPLOYMENT AGREEMENT

          THIS EMPLOYMENT AGREEMENT is dated as of this 14th day of April 2003 by
and between LIPID SCIENCES, INC., a Delaware corporation (the “Company”), and
S. LEWIS MEYER, Ph.D., an individual residing at 5232 Springridge Way,
Fairfield, California, 94585 (the “Employee”).

W I T N E S S E T H:

          WHEREAS, the Company desires to employ the Employee in the manner
hereinafter specified and to make provision for payment of reasonable
compensation to the Employee for such services, and the Employee is willing to
be employed by the Company to perform the duties incident to such employment
upon the terms and conditions hereinafter set forth; and

          WHEREAS, the parties desire to enter into this Agreement as of the
Effective Date (as hereinafter defined), setting forth the terms and conditions
of the employment relationship of the Employee with the Company during the Term
(as hereinafter defined).

          NOW, THEREFORE, in consideration of the foregoing premises, the mutual
covenants, terms and conditions set forth herein, and other valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto hereby agree as follows:

          1.     EMPLOYMENT AND DUTIES

          (a)     General. Effective as of the Effective Date, the Company hereby
employs the Employee as Chief Executive Officer and President of the Company
and the Employee agrees upon the terms and conditions herein set forth to be
employed by the Company. The Employee shall diligently perform all of the
duties normally accorded to such position and shall report directly to the
Board of Directors of the Company (the “Board”).

          (b)     Services. During the Term, the Employee shall well and faithfully
serve the Company, and shall devote substantially all of his business time and
attention to the performance of the duties of such employment and the
advancement of the best interests of the Company and shall not, directly or
indirectly, render services to any other person or organization for which he
receives compensation without the prior written approval of the Board. No such
approval shall be required in connection with services the Employee performs
with respect to other persons and entities, including, but not limited, to
Lexrite Labs and the Ambient Capital Group, provided that the aggregate amount
of time spent on these services does not exceed a maximum of eight hours per
week and that such services do not contravene the provisions of Section 5
hereof. The Employee hereby agrees to refrain from engaging in any activity
that does, shall or could reasonably be deemed to conflict with the best
interests of the Company.

          (c)     Location of Employment. The Employee’s place of employment shall be
at the office of the Company located in Pleasanton, California, but the
Employee shall travel to the extent and to the places necessary for the
performance of his duties to the Company.

 

 

          2.     TERM OF EMPLOYMENT

          The term of the Employee’s employment under this Agreement shall commence
on April 14, 2003 (the “Effective Date”) and continue until the third
anniversary thereof (the “Term”).

          3.     COMPENSATION AND OTHER BENEFITS

          Subject to the provisions of this Agreement including without limitation
the termination provisions contained in Section 4, the Company shall pay and
provide the following compensation and other benefits to the Employee during
the Term as compensation for all services rendered hereunder:

          (a)     Salary. The Company shall pay to the Employee a salary (the “Salary”)
at a rate of $290,000 per annum, payable to the Employee in accordance with the
normal payroll practices of the Company as are in effect from time to time.
The amount of the Salary shall be reviewed annually by the Compensation
Committee of the Board and may be increased on the basis of the review.

          (b)     Annual Performance Bonus. The Employee shall be eligible to earn an
annual discretionary cash bonus (the “Annual Bonus”) in an amount and subject
to such other terms and conditions, including performance objectives, as are
determined, by the Board.

          (c)     Stock Option. Subject to approval of the Board, the Company shall
grant to the Employee an option to purchase 850,000 shares of the Company’s
common stock (the “Option”) with a per share exercise price equal to the fair
market value of the per share price of the common stock on the date of grant
and shall vest in four equal installments (at a rate of 25% of the number of
shares subject to the Option per installment) on the date of grant, and on the
first, second and third anniversaries of the date of grant. The Option is
intended to be treated as an “incentive stock option” to the maximum extent
permitted under the Internal Revenue Code of 1986, as amended. The Option
shall be subject to the terms and conditions of the Company’s Performance
Equity Plan and the option agreement entered into thereunder to the extent the
terms and conditions are not addressed in this Section 3(c).

          (d)     Expenses. The Company shall pay or reimburse the Employee for all
reasonable out-of-pocket expenses incurred by the Employee in connection with
his employment hereunder upon submission of appropriate documentation or
receipts in accordance with the policies and procedures of the Company as are
in effect from time to time. No expense payment or reimbursement under this
Section 3(d) shall be “grossed up” or increased to take into account any tax
liability incurred by the Employee as a result of such payment or
reimbursement.

          (e)     Retirement, Welfare and Fringe Benefits. The Employee shall be
eligible to participate in the retirement, medical, disability and life
insurance plans applicable to senior officers of the Company generally in
accordance with the terms of such plans as in effect from time to time. The
foregoing shall not be construed to limit the ability of the Company or any of
its affiliates to amend, modify or terminate any such benefit plans, policies
or programs at any time and from time to time.

 

 

          (f)     Vacation. The Employee shall be entitled to annual vacation in
accordance with the Company’s policies applicable to senior officers of the
Company generally as are in effect from time to time.

          4.     TERMINATION OF EMPLOYMENT

          Subject to the notice and other provisions of this Section 4, the Company
shall have the right to terminate the Employee’s employment hereunder, and the
Employee shall have the right to resign, at any time for any reason or for no
stated reason.

          (a)     Termination for Cause or Resignation. (i) If, prior to the expiration
of the Term, the Employee’s employment is terminated by the Company for “Cause”
(as hereinafter defined) or if the Employee resigns from his employment
hereunder, the Employee shall be entitled to payment of (A) his Salary accrued
up to and including the date of termination or resignation, and (B) any
unreimbursed expenses. Except to the extent required by the terms of the
benefits provided under Section 3(e) or applicable law, the Employee shall have
no right under this Agreement or otherwise to receive any other compensation or
to participate in any other plan, program or arrangement after such termination
or resignation of employment with respect to the year of such termination or
resignation and later years.

          (ii)     Termination for “Cause” shall mean a termination of the Employee’s
employment with the Company because of (A) a plea of guilty or nolo contendere
to, or conviction for, the commission of a felony offense by the Employee; (B)
the involvement by the Employee as a party to any litigation or regulatory
proceeding or in any other circumstance known to the general public that, in
the good faith determination of the Board, is reasonably certain to subject the
Employee, the Company or its affiliates to disrepute, ridicule, contempt or
scandal or that is reasonably certain to reflect unfavorably upon the
reputation of the Employee, the Company or its affiliates or the Company’s
products or technologies; (C) the willful and continued failure to perform in
any material respect the Employee’s duties; (D) an intentional act of fraud,
embezzlement, theft or a material and dishonest act against the Company or its
affiliates; or (E) a material breach by the Employee of the terms and
provisions of the Agreement.

          (iii)     Termination of the Employee’s employment for Cause shall be
communicated by delivery to the Employee of a written notice from the Company
stating that the Employee will be terminated for Cause, specifying the
particulars thereof and the effective date of such termination. In the cases
of Sections 4(a)(ii)(B), 4(a)(ii)(C) and 4(a)(ii)(E), the Employee shall have
thirty (30) business days from the date of receipt of such notice to effect a
cure of the actions constituting Cause, or to effect a cure of the adverse
effect such actions. Upon cure or correction thereof by the Employee to the
reasonable satisfaction of the Company, the action shall no longer constitute
Cause for purposes of this Agreement. The date of a resignation by the
Employee shall be the date specified in a written notice of resignation from
the Employee to the Company. The Employee shall provide at least 90 days’
advance written notice of his resignation.

 

 

          (b)     Termination without Cause.

          (i)     If, prior to the expiration of the Term, the Company terminates the
Employee’s employment for any reason other than Disability or Cause (such
termination or resignation being hereinafter referred to as a “Termination
without Cause”), the Employee shall be entitled to (A) payment of his Salary
accrued up to and including the date of such Termination without Cause, (B)
payment of any unreimbursed expenses, and (C) severance, subject to the
Employee’s execution and delivery of a release in the form then deemed
appropriate by the Company and in exchange for consulting services of the
Employee, consisting of (1) continuation of his Salary, at the rate in effect
on the date of the Termination without Cause, for a period of 12 months
commencing on the date next following the date of the Termination without Cause
(the “Severance Period”) and (2) continued participation on the same terms and
conditions as are in effect immediately prior to the Termination without Cause
in the Company’s health and medical plans provided to the Employee pursuant to
Section 3(e) above at the time of such Termination without Cause through the
expiration of the Severance Period, or until the Employee becomes eligible to
participate in a subsequent employer’s benefit plan, whichever occurs first.
Anything herein to the contrary notwithstanding, the Company shall have no
obligation to continue to maintain during the Severance Period any plan,
program or level of benefits solely as a result of the provisions of this
Agreement, but this provision shall apply with respect to any substitute or
replacement plan.

          (ii)     The date of termination of employment without Cause shall be the date
specified in a written notice of termination to the Employee.

          (c)     Termination Due to Disability. In the event of the Employee’s
Disability, the Company shall be entitled to terminate his employment. In the
case that the Company terminates the Employee’s employment due to Disability,
the Employee shall be entitled to his Salary up to and including the date of
termination as well as any unpaid expense reimbursements. As used in this
Section 4(c), the term “Disability” shall mean the Company’s determination that
due to physical or mental illness or incapacity, whether total or partial, the
Employee is substantially unable to perform his duties hereunder for a period
of 90 consecutive days or shorter periods aggregating 90 days during any period
of 180 consecutive days.

          (d)     Death. Except as provided in this Section 4(d), no Salary or benefits
shall be payable under this Agreement following the date of the Employee’s
death. In the event of the Employee’s death, any Salary earned by the Employee
up to the date of death, as well as any unreimbursed expenses, shall be paid to
the Employee’s estate or Employee’s named beneficiary within a reasonable
period following his death.

          5.     PROTECTION OF THE COMPANY’S INTEREST

          (a)     Employee Confidential Information and Invention Agreement. The
Employee hereby acknowledges that he has executed and delivered to the Company,
contemporaneously with the execution and delivery of this Agreement, the
Company’s Employee Confidential Information and Invention Agreement (the
"Confidentiality Agreement”), which is attached hereto as Annex A. The
Employee hereby acknowledges and

 

 

understands that the provisions of the Confidentiality Agreement are
incorporated into this Agreement.

          (b)     Protection of Trade Secrets; Non-Solicitation.

          (i)     The Employee acknowledges that in the course of his employment with
the Company, he has and will in the course of his continued employment with the
Company become familiar with the trade secrets of the Company and its
affiliates and with other Confidential Information (as defined in the
Confidentiality Agreement) concerning the business of the Company and its
affiliates and that his services have been and will be of special, and unique
and extraordinary value to the Company and its affiliates. Because of the
foregoing and in further consideration of the compensation and other benefits
to be provided to the Employee hereunder, the Employee hereby agrees that,
during the Term, and at any time thereafter, he shall not, directly or
indirectly, use trade secrets (as such term is defined in Section 3426(1)(d) of
the Uniform Trade Secrets Act) of the Company or its affiliates or Confidential
Information or otherwise engage in unfair competition against the Company or
any of its affiliates.

          (ii)     During the Term, and continuing through the first anniversary of the
termination date of the Employee’s employment for any reason (the “Restricted
Period”), the Employee shall not directly or indirectly through another person
or entity induce or attempt to induce any customer, supplier, licensee,
licensor, franchisee or other business relation of the Company or any such
affiliate that is within any geographical area in which the Company or its
affiliates engage or plan to engage in such businesses to cease doing business
with the Company or such affiliate or in any way interfere with the
relationship between any such customer, supplier, licensee or business relation
and the Company or any such affiliate.

          (c)     Extension of Time of Restrictions. The Restricted Period shall be
extended by the length of any period during which the Employee is in breach of
the restrictions set forth in Section 5(b).

          (d)     Non-Disparagement. The Employee agrees that at any time during his
employment with the Company or at any time thereafter, the Employee shall not
make, or cause or assist any other person to make, any statement or other
communication which impugns or attacks, or is otherwise critical of, the
reputation, business or character of the Company, any subsidiary or any of
their respective officers, directors, employees, products or services.

          (e)     Enforcement. The Employee hereby acknowledges that he has carefully
reviewed the provisions of this Agreement and agrees that the provisions are
fair and equitable, and that they are necessary and reasonable in order to
protect the Company and its affiliates in the conduct of their business.
However, in light of the possibility of differing interpretations of law and
change in circumstances, the parties hereto agree that if any one or more of
the provisions of this Section 5 (including any provision contained in the
Confidentiality Agreement) is determined by a court or other tribunal of
competent jurisdiction to be invalid, void or unenforceable under circumstances
then existing, the parties hereto agree that the maximum period, scope or
geographical area reasonable or enforceable under such circumstances shall be
substituted for the stated period, scope or area.

 

 

          (f)     Remedies. The Employee acknowledges that the Company has a compelling
business interest in preventing unfair competition stemming from the
intentional or inadvertent use or disclosure of the Company’s confidential and
proprietary information, including trade secrets of the Company. The Employee
further acknowledges and agrees that damages for a breach or threatened breach
of any of the covenants set forth in this Section 5 (including any provision
contained in the Confidentiality Agreement) will be difficult to determine and
will not afford a full and adequate remedy, and therefore agrees that the
Company, in addition to seeking actual damages in connection therewith and the
termination of the Company’s obligations in Section 4(b), may seek specific
enforcement of any such covenant in any court of competent jurisdiction,
including, without limitation, by the issuance of a temporary or permanent
injunction without the necessity of showing any actual damages or posting any
bond or furnishing any other security, and that the specific enforcement of the
provisions of this Agreement will not diminish the Employee’s ability to earn a
livelihood or create or impose upon the Employee any undue hardship. The
Employee also agrees that any request for such relief by the Company shall be
in addition to, and without prejudice to, any claim for monetary damages that
the Company may elect to assert.

          6.     GENERAL PROVISIONS

          (a)     No Other Severance Benefits. Except as specifically set forth in this
Agreement, the Employee covenants and agrees that he shall not be entitled to
any other form of severance benefits from the Company, including, without
limitation, benefits otherwise payable under the Company’s regular severance
policies, if any, in the event his employment hereunder ends for any reason
and, except with respect to obligations of the Company expressly provided for
herein, the Employee unconditionally releases the Company and its subsidiaries
and affiliates, and their respective directors, officers, employees and
stockholders, or any of them, from any and all claims, liabilities or
obligations under any severance arrangements of the Company or any of its
subsidiaries or affiliates.

          (b)     Tax Withholding. All amounts paid to Employee hereunder shall be
subject to all applicable federal, state and local wage withholding.

          (c)     Notices. Any notice hereunder by either party to the other shall be
given in writing by personal delivery, or certified mail, return receipt
requested, or (if to the Company) by facsimile, in any case delivered to the
applicable address set forth below:

	 	 	 	 	 
	     
    (i)

	 	To the Company:
	 	Lipid Sciences, Inc.

7068 Koll Center Parkway, Suite 401

Pleasanton, CA 94566-3111
	 
	

	 	 	 	Facsimile No.: (925) 249-4000

Attn: Chairman of the Board of Directors
	 
	

	 	With a copy to:
	 	Shearman & Sterling

1080 Marsh Road

Menlo Park, CA 94025

 

 

	 	 	 	 	 
	

	 	 	 	Facsimile No.: (650) 838-3699

Attn: James B. Bucher, Esq.
	 
	
      
   
(ii)

	 	To the Employee:
	 	S. Lewis Meyer, Ph.D.

5232 Springridge Way

Fairfield, CA 94585

Facsimile No.: (707) 863-9807

or to such other persons or other addresses as either party may specify to the
other in writing.

          (d) Representation by the Employee. The Employee represents and warrants
that his entering into this Agreement does not, and that his performance under
this Agreement and consummation of the transactions contemplated hereby will
not, violate the provisions of any agreement or instrument to which the
Employee is a party or any decree, judgment or order to which the Employee is
subject, and that this Agreement constitutes a valid and binding obligation of
the Employee in accordance with its terms. Breach of this representation will
render all of the Company’s obligations under this Agreement void ab initio.

          (e) Assignment; Assumption of Agreement. No right, benefit or interest
hereunder shall be subject to assignment, encumbrance, charge, pledge,
hypothecation or setoff by the Employee in respect of any claim, debt,
obligation or similar process. The Company will require any successor (whether
direct or indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business or assets of the Company to assume expressly
and to agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it if no such succession
had taken place.

          (f) Amendment. No provision of this Agreement may be amended, modified,
waived or discharged unless such amendment, modification, waiver or discharge
is agreed to in writing and signed by the parties. No waiver by either party
hereto at any time of any breach by the other party hereto of, or compliance
with, any condition or provision of this Agreement to be performed by such
other party shall be deemed a waiver of similar or dissimilar provisions or
conditions at the same or at any prior or subsequent time.

          (g) Severability. If any term or provision hereof is determined to be
invalid or unenforceable in a final court or arbitration proceeding, (i) the
remaining terms and provisions hereof shall be unimpaired and (ii) the invalid
or unenforceable term or provision shall be deemed replaced by a term or
provision that is valid and enforceable and that comes closest to expressing
the intention of the invalid or unenforceable term or provision.

          (h) Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of California (determined without regard
to the choice of law provisions thereof).

          (i) Entire Agreement. This Agreement and the Confidentiality Agreement
contain the entire agreement of the Employee, the Company and any predecessors
or affiliates

 

 

     thereof with respect to the subject matter hereof and all prior agreements
and negotiations are superceded hereby.

          (j) Counterparts. This Agreement may be executed by the parties hereto in
counterparts, each of which shall be deemed an original, but both such
counterparts shall together constitute one and the same document.

          (k) Survival. The provisions of Section 5 (including the provisions of
the Confidentiality Agreement) shall survive the termination of this Agreement.

          IN WITNESS WHEREOF, the parties have executed this Agreement, effective as
of the day and year first written above.

	 	 	 	 	 
	 	LIPID SCIENCES, INC.

 	 
	 	By:  	                                            /s/ Richard G. Babbit
 	 
	 	 	Name:  	Richard G. Babbitt 	 
	 	 	Title:  	Chairman of the Board of Directors 	 
	 
	 	EMPLOYEE

 	 
	 	By:  	/s/ S. Lewis Meyer, Ph.D.
 	 
	 	 	S. LEWIS MEYER, Ph.D.exv10w21

 

Exhibit 10.21

	 	 	 
	

	 	SERVICE AGREEMENT
 

With
 

H. Bryan Brewer, Jr.
	

	 	
 

This Agreement is effective as of the date last subscribed below (“Effective
Date”) and is between H. Bryan Brewer, Jr., an individual having an address
11410 River Road, Potomac, MD 20854 (hereinafter referred to as “Consultant”)
and Lipid Sciences, Inc., a Delaware Corporation, having an address at 7068
Koll Center Parkway, Suite 401, Pleasanton, California 94566 (hereinafter
referred to as “LSI”).

Whereas LSI desires to have Consultant act as general consultant to provide
services to LSI, and Consultant desires to act as such a consultant to LSI,
Consultant and LSI agree as follows:

	1.	 	SERVICES

Consultant shall provide labor services to LSI. These services will be
performed at the offices of the Consultant and such other locations as
reasonably specified and requested by LSI. Consultant shall provide
advisory services to LSI in the field of plasma delipidation, a process
that removes lipids from proteins and other targets of therapeutic
interest in plasma or other media. The scope and duration of this
agreement may be changed or extended by mutual agreement of LSI and
Consultant.
	 
	2.	 	TERM

The term of this agreement shall commence on September 18th, 2003 and
expire on September 17, 2004. Either party may terminate this agreement,
at any time during the term of the service relationship with or without
cause and with or without explanation.
	 
	3.	 	COMPENSATION/REIMBURSEMENT

LSI shall pay Consultant at a rate of One Hundred Twenty-Five Thousand
Dollars ($125,000) annually, payable monthly together with a
Non-Qualified Stock Option Award as specified in the “2001 Performance
Equity Plan Non-Qualified Stock Option Agreement” attached. Consultant
understands that Consultant, as a separate business entity, is not
eligible for and shall not be entitled to receive any LSI employee
benefits, including medical coverage, workers’ compensation insurance,
disability insurance, unemployment benefits, or other similar benefits or
other insurance protection LSI provides to its employees. Consultant
further acknowledges that s/he is responsible for obtaining any workers’
compensation or general liability insurance as may be required or
appropriate in connection with Consultant’s status as a business entity.
	 
	 	 	LSI shall reimburse Consultant for reasonable and necessary travel
expenses (excluding travel time) to such places as Consultant may travel
in the performance of such services, Consultant shall provide an itemized
expense statement for such expenses no later than the last day of each
monthly period. Such itemized expense statements shall be forwarded to
the attention of the President and CEO, Lipid Sciences, Inc., at the
aforementioned address. Reimbursement of such expenses shall be in
accordance with LSI’s policy regarding travel expenses.
	 
	4.	 	TAXES

Consultant acknowledges and agrees that, if Consultant is an independent
contractor/sole proprietor, it shall be Consultant’s sole obligation to
report as self-employment income all compensation for services received
by Consultant from LSI. If Consultant is a corporation or partnership,
Consultant acknowledges and agrees that Consultant shall compensate all
employees via a W-2 for services received by Consultant from LSI.
Consultant agrees to indemnify LSI and hold LSI harmless to the extent of
any obligations imposed by law on LSI to pay any withholding taxes,
social security, unemployment or disability insurance, or similar items
in connection with any payments made to Consultant by LSI for
Consultant’s services.

Page 1

 

	5.	 	OTHER SERVICES; CONFIDENTIAL INFORMATION

During the term of this Service Agreement, Consultant will remain free to
engage in any other labor service work for any other company except as
set forth in Section 7 hereof, but agrees that in so doing Consultant
will not divulge to others any Confidential Information of LSI.
“Confidential Information” means any LSI proprietary information,
technical data, trade secrets or know-how, including, but not limited to,
intellectual property information, research, product plans, market
assessments, business plans, products, services, suppliers, customer
lists and customers (including, but not limited to, customers of LSI on
whom Consultant called or with whom Consultant became acquainted during
this service relationship), prices and costs, markets, software,
developments, inventions, laboratory notebooks, processes, formulas,
technology, designs, drawings, engineering, hardware configuration
information, marketing, licenses, finances, budgets or other business
information disclosed to Consultant by LSI either directly or indirectly
in writing, orally or by drawings or observation of parts or equipment or
discussions or created by Consultant during the period of this service
relationship, whether or not during working hours. Confidential
Information does not include any of the foregoing items, which has become
publicly and widely known and made generally available through no
wrongful act or omission of Consultant or of others who were under
confidentiality obligations as to the item or items involved. Consultant
acknowledges that the rendering of services to LSI creates a relationship
of trust and confidence between LSI and Consultant. During and after
Consultant’s rendering of services to LSI, Consultant will not use or
disclose or allow anyone else to use or disclose any Confidential
Information or knowledge relating to LSI, its employees, products,
Consultants or customers, except as may be necessary in the performance
of Consultant’s work for LSI or as may be authorized in advance by
appropriate officials of LSI. Consultant will not disclose directly or
indirectly to any third party or parties any information or knowledge
Consultant may acquire with respect to such Confidential Information,
including innovations, business strategies, financial information,
employee lists, customer lists, inventories, designs, methods, systems,
improvements, trade secrets, or other private or confidential matters of
LSI without LSI’s prior written consent.
	 
	6.	 	ASSIGNMENT OF INVENTIONS

Consultant will promptly disclose to LSI in writing all improvements,
inventions, works of authorship, formulas, ideas, processes, techniques,
know-how and data, whether or not patentable (collectively,
“Inventions”), made or conceived, developed, reduced to practice or
learned by Consultant, either alone or jointly with others, during the
term of the working relationship. Consultant hereby assigns to LSI any
rights Consultant may have or acquire in such Inventions, which shall be
the sole property of LSI and its assigns. Consultant will assist LSI in
every proper way to obtain and enforce patents, copyrights or other
rights on said Inventions in any and all countries, and will execute all
documents reasonably necessary or appropriate for this purpose.
Consultant shall be compensated for such assistance as specified in
paragraph 3, above. Consultant also hereby irrevocably designates and
appoints LSI and its duly authorized officers and agents as his agents
and attorneys-in-fact-to act for and in his behalf for the purpose of
executing and filing any such document and doing all acts to accomplish
the foregoing purposes. Consultant understands that this Agreement does
not require assignment of an invention, which a Consultant cannot be
obligated to assign under Section 2870 of the California Labor Code.
	 
	7.	 	CONFLICT OF INTEREST

Consultant shall not accept a similar relationship with a competitor of
LSI nor shall Consultant itself compete with LSI, during the course of
this agreement without LSI’s prior written consent. Consultant
represents that Consultant has no other agreements or commitments, which
would hinder Consultant’s performance of obligations under this
Agreement, and that Consultant will not enter into any such agreements
during the term hereof.
	 
	 	 	Consultant hereby represents that his/her performance of all terms of
this Agreement have not breached and will not breach any agreement to
keep in confidence proprietary information,

Page 2

 

	 	 	knowledge or data acquired by Consultant in confidence or trust prior or
subsequent to the commencement of Consultant’s service relationship with
LSI, and Consultant will not disclose to LSI, or induce LSI to use, any
inventions, confidential or proprietary information or material belonging
to any previous employer or any other party.
	 
	8.	 	RETURN OF LSI MATERIALS

Upon termination of Consultant’s services to LSI, Consultant will
promptly return to LSI, and will not take with Consultant or use, all
items of any nature that belong to LSI.
	 
	9.	 	STATUS AS A BUSINESS ENTITY

Consultant is a business entity, as such, Consultant understands and
agrees that Consultant is not an agent or employee of LSI and has no
authority to bind LSI, by contract or otherwise. As a business entity,
Consultant is solely responsible for determining the means and methods of
performing the labor services, including any and all business expenses.
Consultant further understands and agrees that Consultant is responsible
for obtaining all documentation necessary to operate a business in
Consultant’s municipality, as may be required by law.
	 
	10.	 	ASSIGNMENT

Consultant agrees that Consultant may not assign this agreement or
delegate duties herein without LSI’s prior written consent.
	 
	11.	 	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 and
Attachments hereto, constitutes the sole agreement of the parties
and supersedes all oral negotiations and prior writings with respect
to the subject matter hereof.
	 
	 	(c)	 	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.
	 
	 	(d)	 	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.
	 
	 	(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)	 	Choice of Law. The laws of the State of California shall
govern the validity, interpretation, construction and performance of
this Agreement, without giving effect to the principles of conflict
of laws.

Page 3

 

IN WITNESS WHEREOF, the parties have duly executed this Agreement on the
Effective Date.

	 	 	 	 	 	 	 
	

	 	CONSULTANT:
	 	 	 	COMPANY:
	 
	 	 	 	 	 	 
	

	 	H. Bryan Brewer, Jr.
	 	 	 	LIPID SCIENCES, INC.
	 
	 	 	 	 	 	 
	By:

	 	H. Bryan Brewer, Jr., M.D.
	 	By:
	 	S. Lewis Meyer, Ph.D.
	

	 	
 
	 	 	 	
 
	

	 	(Print Name)
	 	 	 	(Print Name)
	 
	 	 	 	 	 	 
	

	 	/s/ H. Bryan Brewer, Jr., M.D.
	 	 	 	/s/ S. Lewis Meyer, Ph.D.
	

	 	
 
	 	 	 	
 
	

	 	(Signature)
	 	 	 	(Signature)
	 
	 	 	 	 	 	 
	

	 	Chief, Molecular Disease Branch
	 	 	 	President and Chief Executive Officer
	

	 	
 
	 	 	 	
 
	

	 	(Title)
	 	 	 	(Title)

Page 4

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