Document:

ceru-ex101_151.htm

EXHIBIT 10.1

SEPARATION AGREEMENT

This Separation Agreement (the “Agreement”) is made as of September 4, 2015 by and between Cerulean Pharma Inc. (the “Company”) and Edward Garmey, M.D. (“Dr. Garmey”) (collectively, the “Parties”).  

WHEREAS, the Company and Dr. Garmey are parties to the Employment Agreement dated as of July 21, 2014 (the “Employment Agreement”) under which Dr. Garmey currently serves as Chief Medical Officer and Senior Vice President of the Company;

WHEREAS, Dr. Garmey desires to resign from the Company; and

WHEREAS, the Parties agree that the Employment Agreement shall be null and void on the date this Agreement becomes effective and enforceable and wish to establish the terms of Dr. Garmey’s separation from the Company;

NOW, THEREFORE, in consideration of the promises and conditions set forth below, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:

	
 
	
1.
	
Resignation from Employment and Officer Positions.  

(a) Resignation from Employment and Officer Positions – As of the date this Agreement becomes effective and enforceable (the “Separation Date”), Dr. Garmey shall resign from any positions that he holds as an officer of the Company.  As of the Separation Date, Dr. Garmey shall resign from employment with the Company.  Dr. Garmey will execute and deliver any documents reasonably necessary to effectuate such resignations, provided that nothing in any such document is inconsistent with any terms set forth in this Agreement.  Dr. Garmey hereby irrevocably appoints the Company to be his attorney-in-fact to execute any documents and do anything in his name to effect such resignations in the event that Dr. Garmey fails to promptly submit them in accordance with the terms hereof or execute any documents requested by the Company to effectuate such resignations. A written notification signed by a director or duly authorized officer of the Company that any instrument, document or act falls within the authority conferred by this subsection will be conclusive evidence that it does so.  The Company will prepare any documents, pay any filing fees, and bear any other expenses related to the above.

	
 
	
2.
	
Severance Benefits – In return for Dr. Garmey’s execution and non-revocation of this Agreement and compliance with the terms hereof, the Company will provide Dr. Garmey with the following severance benefits (the benefits set forth in Sections 2(a) through 2(c) below are referred to herein collectively as the “Severance Benefits”):

(a) Severance – The Company will provide Dr. Garmey with severance in an amount equal to six (6) months of pay at Dr. Garmey’s current base salary rate, less all applicable taxes and withholdings.  The severance will be paid to Dr. Garmey in equal installments in accordance with the Company’s regular payroll practices; 

 

 

	
 
		
provided, however, that the first payment shall not be made until the first regular payroll date following the Separation Date.  

(b) Group Health Insurance – Should Dr. Garmey be eligible for and timely elect to continue receiving group health insurance coverage under the law known as COBRA, the Company shall, until the earlier of (x) the date that is six (6) months following the Separation Date, or (y) the date that Dr. Garmey becomes eligible for group health coverage through a new employer (as applicable, the “COBRA Contribution Period”), pay on Dr. Garmey’s behalf the share of the premium for such coverage that it currently pays on behalf of active and similarly situated employees with the same type of coverage.  The remaining balance of any premium costs, and all premium costs after the COBRA Contribution Period, shall be paid by Dr. Garmey on a monthly basis during the elected period of health insurance coverage under COBRA for as long as, and to the extent that, he remains eligible for COBRA continuation.  Dr. Garmey will notify the Company in writing at least five (5) days prior to the date on which he becomes eligible to receive group health insurance coverage through another employer, if that date is prior to the date that is six (6) months following the Separation Date.

(c) Extension of Option Exercise Date – Effective as of the Separation Date, the Company will extend until the date that is twelve (12) months following the Separation Date the period during which Dr. Garmey may exercise any vested stock options that he holds pursuant to any stock option agreement evidencing the grant of such options (each, an “Option Agreement”), pursuant to the terms of such Option Agreement(s) and the Company’s 2007 Stock Incentive Plan and 2014 Stock Incentive Plan, as applicable, provided that in no event shall Dr. Garmey be able to exercise any option beyond the Final Exercise Date for such option, as set forth in the applicable Option Agreement.  Dr. Garmey understands that the stock options subject to this extended exercise period shall cease to be treated for tax purposes as incentive stock options as of the date hereof.  Dr. Garmey further understands that, as a result of the loss of incentive stock option status of the affected options, the Company will be required to withhold applicable income and employment taxes at the time of exercise of such options.

Notwithstanding any term of any outstanding stock option held by Dr. Garmey or in any other agreement between the Company and Dr. Garmey, any and all such stock options shall cease vesting as of the Separation Date and will remain exercisable for a period of one year following the Separation Date, but not for any period thereafter (and in no event may the exercise period for any stock option be extended beyond the Final Exercise Date for such stock option).

Other than the Severance Benefits, and fees payable to Dr. Garmey pursuant to that certain Consulting Agreement of even date herewith, Dr. Garmey will not be eligible for, nor shall he have a right to receive, any payments or benefits from the Company following the Separation Date.  

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3.
	
Release by Dr. Garmey.  In exchange for the consideration set forth herein, which Dr. Garmey acknowledges he would not otherwise be entitled to receive, Dr. Garmey hereby fully, forever, irrevocably and unconditionally releases, remises and discharges the Company, its affiliates, subsidiaries, parent companies, predecessors, and successors, and all of its and their respective past and present officers, directors, stockholders, investors, partners, members, managers, employees, agents, representatives, plan administrators, attorneys, insurers and fiduciaries (each in their individual and corporate capacities) (collectively, the “Released Parties”) from any and all claims, complaints, demands, actions, causes of action, suits, rights, debts, sums of money, costs, accounts, reckonings, covenants, contracts, agreements, promises, doings, omissions, damages, executions, obligations, liabilities, and expenses (including attorneys’ fees and costs), of every kind and nature that he ever had or now has against any or all of the Released Parties, whether known or unknown, including, but not limited to, any and all claims arising out of or relating to his employment with and/or separation from the Company, including, but not limited to, all claims under Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq., the Americans With Disabilities Act of 1990, 42 U.S.C. § 12101 et seq., the Age Discrimination in Employment Act, 29 U.S.C. § 621 et seq., the Genetic Information Nondiscrimination Act of 2008, 42 U.S.C. § 2000ff et seq., the Family and Medical Leave Act, 29 U.S.C. § 2601 et seq., the Worker Adjustment and Retraining Notification Act (“WARN”), 29 U.S.C. § 2101 et seq., the Rehabilitation Act of 1973, 29 U.S.C. § 701 et seq., Executive Order 11246, Executive Order 11141, the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq., and the Employee Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. § 1001 et seq., all as amended; all claims arising out of the Massachusetts Fair Employment Practices Act, Mass. Gen. Laws ch. 151B, § 1 et seq., the Massachusetts Wage Act, Mass. Gen. Laws ch. 149, § 148 et seq. (Massachusetts law regarding payment of wages and overtime), the Massachusetts Civil Rights Act, Mass. Gen. Laws ch. 12, §§ 11H and 11I, the Massachusetts Equal Rights Act, Mass. Gen. Laws. ch. 93, § 102 and Mass. Gen. Laws ch. 214, § 1C, the Massachusetts Labor and Industries Act, Mass. Gen. Laws ch. 149, § 1 et seq., Mass. Gen. Laws ch. 214, § 1B (Massachusetts right of privacy law), the Massachusetts Maternity Leave Act, Mass. Gen. Laws ch. 149, § 105D, and the Massachusetts Small Necessities Leave Act, Mass. Gen. Laws ch. 149, § 52D, all as amended; all common law claims including, but not limited to, actions in defamation, intentional infliction of emotional distress, misrepresentation, fraud, wrongful discharge, and breach of contract (including, without limitation, all claims arising out of or related to the Employment Agreement); all claims to any non-vested ownership interest in the Company, contractual or otherwise; all state and federal whistleblower claims to the maximum extent permitted by law; and any claim or damage arising out of his employment with and/or separation from the Company (including a claim for retaliation) under any common law theory or any federal, state or local statute or ordinance not expressly referenced above; provided, however, that (a) nothing in this Agreement prevents Dr. Garmey from filing a charge with, cooperating with, or participating in any proceeding before the Equal Employment Opportunity Commission or a state fair employment practices agency (except that he acknowledges that he may not recover any monetary benefits in connection with any such claim, charge or proceeding, and explicitly waives any rights or claims to any payment, benefit, attorneys’ fees or other remedial relief in connection with any such claim, charge or proceeding and agrees that if any such complaint, charge, or proceeding is filed on his behalf, he shall take all reasonable steps necessary to refuse any damages or individualized relief in connection therewith), and (b) nothing herein shall prevent Dr. Garmey from bringing claims to enforce this Agreement.  Further, nothing herein shall release any rights Dr. Garmey may have under the Company’s certificate of incorporation, by-laws, insurance and/or any indemnification agreement between him and the Company (and/or otherwise under law) for indemnification as an officer of the Company for his service to the Company (recognizing that such indemnification is not guaranteed by this Agreement and shall be governed by the instrument or law, if any, providing for such indemnification), or any rights he may have to vested ownership, pension or 401(k) benefits or interests. 

	
 
	
4.
	
Release by the Company.  In exchange for the consideration set forth herein, the Company hereby fully, forever, irrevocably and unconditionally releases, remises and discharges Dr. Garmey from any and all claims, complaints, demands, actions, causes of action, suits, rights, debts, sums of money, costs, accounts, reckonings, covenants, contracts, agreements, promises, doings, omissions, damages, executions, obligations, liabilities, and expenses (including attorneys’ fees and costs), of every kind and nature, whether known or unknown, that it ever had or now has against Dr. Garmey, including, but not limited to, any and all claims arising out of or relating to Dr. Garmey’s employment with and/or separation from the Company; provided, however, that notwithstanding the foregoing, nothing in this release (a) releases Dr. Garmey from his continuing obligations as set forth in Section 5 below, (b) shall prevent the Company from bringing claims to enforce this Agreement, or (c) releases Dr. Garmey from any claims for fraud or embezzlement, or from any civil claims based on any acts and/or omissions that satisfy the elements of a criminal offense, or from any claims arising out of any deliberate misconduct by him that results or resulted in material injury to the Company.

	
 
	
5.
	
Continuing Obligations.  Dr. Garmey acknowledges and reaffirms his obligation to keep confidential and not to use or disclose, at any time after the Separation Date, any and all non-public information concerning the Company that he acquires or acquired during the course of his employment with the Company, including, but not limited to, any non-public information concerning the Company’s business affairs, clinical trials, research and development, regulatory strategy or financial condition.  Dr. Garmey further acknowledges his ongoing obligations set forth in the Invention and Non-Disclosure Agreement previously executed in connection with his employment by the Company, which continue in full force and effect, with the sole exception of the post-employment restrictions set forth in paragraph 6(a) of the Invention and Non-Disclosure Agreement. 

	
 
	
6.
	
Return of Company Property.  Dr. Garmey will, on the Separation Date or earlier if requested by the Company, return to the Company all keys, files, records (and copies thereof), equipment (including, but not limited to, computer hardware, software and printers, wireless handheld devices, etc.), Company identification and any other 

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Company-owned property in his possession or control and that he will leave intact all electronic Company documents, including but not limited to those that he developed or helped to develop during his employment.  In addition, Dr. Garmey will, on the Separation Date or earlier if requested by the Company, cancel all accounts for his benefit, if any, in the Company’s name, including but not limited to, credit cards, telephone charge cards, cellular phone and/or wireless data accounts and computer accounts.  Notwithstanding the foregoing, Dr. Garmey may retain the laptop and cellphone provided to him by the Company, provided that both are wiped clean of any Company confidential information and with the understanding that any Company-sponsored service plans or licenses associated with such laptop or cellphone shall be terminated as of the Separation Date.  

	
 
	
7.
	
Amendment.  This Agreement shall be binding upon the Parties and may not be abandoned, supplemented, changed or modified in any manner, orally or otherwise, except by an instrument in writing of concurrent or subsequent date signed by duly authorized representatives of the Parties.  This Agreement is binding upon and shall inure to the benefit of the Parties and their respective agents, assigns, heirs, executors, successors and administrators.  

	
 
	
8.
	
Waiver of Rights.  No delay or omission by either Party in exercising any rights under this Agreement shall operate as a waiver of that or any other right.  A waiver or consent given by either Party on any one occasion shall be effective only in that instance and shall not be construed as a bar to or waiver of any right on any other occasion.

	
 
	
9.
	
Validity.  Should any provision of this Agreement be declared or be determined by any court of competent jurisdiction to be illegal or invalid, the validity of the remaining parts, terms, or provisions shall not be affected thereby and said illegal or invalid part, term or provision shall be deemed not to be a part of this Agreement.

	
 
	
10.
	
Cooperation.  Dr. Garmey will cooperate fully with the Company, to the extent permitted by law, in the investigation, defense or prosecution of any claims or actions now in existence or that may be brought in the future against the Company by any third party or by or on behalf of the Company against any third party.  Dr. Garmey’s full cooperation in connection with such claims or actions will include being available to meet with the Company’s counsel, at reasonable mutually agreed upon times and locations, to prepare for discovery, any mediation, arbitration, trial, administrative hearing or other proceeding, and to act as a witness when requested by the Company. Dr. Garmey will, to the extent permitted by law, notify the Company promptly in the event that he is served with a subpoena or in the event that he is asked to provide a third party with information concerning any actual or potential complaint or claim against the Company.  Nothing herein shall be construed as restricting Dr. Garmey’s right to truthfully testify in any proceeding in which he is subpoenaed to do so.  The Company will (a) compensate Dr. Garmey at a reasonable hourly rate for any time he is required to spend to comply with any request by the Company for cooperation hereunder, provided that the Company shall not pay Dr. Garmey for time spent providing testimony in any arbitration, trial, administrative hearing or other 

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proceeding, and (b) reimburse Dr. Garmey for all reasonable and documented out-of-pocket costs that he incurs to comply with this paragraph. 

	
 
	
11.
	
Nature of Agreement.  This Agreement is not and shall not in any way be construed as an admission of liability or wrongdoing on the part of either Party.  

	
 
	
12.
	
Time for Consideration.   To be eligible to receive the Severance Benefits, Dr. Garmey must sign and return this Agreement on or before September 25, 2015.

	
 
	
13.
	
Acknowledgments.  Dr. Garmey acknowledges that he has been given twenty-one (21) days following his receipt of this Agreement to consider this Agreement, and that the Company is hereby advising him to consult with an attorney of his own choosing prior to signing this Agreement.  Dr. Garmey understands that he may revoke this Agreement for a period of seven (7) days after he signs it by notifying the Company in writing, and this Agreement shall not be effective or enforceable until the expiration of this seven (7) day revocation period.  Dr. Garmey understands and agrees that by entering into this Agreement, he will be waiving any and all rights or claims he might have under the Age Discrimination in Employment Act, as amended by the Older Workers Benefit Protection Act, and that he will be eligible to receive consideration beyond that to which he was previously entitled.  

	
 
	
14.
	
Voluntary Assent.  Dr. Garmey affirms that no other promises or agreements of any kind have been made to or with him by any person or entity whatsoever to cause him to sign this Agreement, and that he fully understands the meaning and intent of this Agreement.  Dr. Garmey acknowledges that he had an opportunity to fully discuss and review the terms of this Agreement with an attorney of his own choosing prior to signing this Agreement.  Dr. Garmey further states and represents that he has carefully read this Agreement, understands the contents herein, freely and voluntarily assents to all of the terms and conditions hereof and signs his name of his own free act.

	
 
	
15.
	
Tax Provision. In connection with the Severance Benefits and any other monetary payments to be provided to Dr. Garmey pursuant to this Agreement, the Company shall withhold and remit to the tax authorities the amounts required under applicable law, and Dr. Garmey shall be responsible for all applicable taxes with respect to such Severance Benefits and other payments under applicable law.  The Parties intend that the payments and benefits provided for under this Agreement shall be either exempt from or compliant with Section 409A of the Internal Revenue Code.  Notwithstanding the foregoing, Dr. Garmey acknowledges that he is not relying upon advice or representation of the Company with respect to the tax treatment of any of the Severance Benefits or other payments.  

	
 
	
16.
	
Applicable Law.  This Agreement shall be interpreted and construed by the laws of the Commonwealth of Massachusetts, without regard to conflict of laws provisions.  Dr. Garmey hereby irrevocably submits to the jurisdiction of the courts of the Commonwealth of Massachusetts, or if appropriate, a federal court located in the Commonwealth of Massachusetts (which courts, for purposes of this Agreement, are 

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the only courts of competent jurisdiction), over any suit, action or other proceeding arising out of, under, or in connection with this Agreement or the subject matter thereof. 

	
 
	
17.
	
Entire Agreement.  Subject to the immediately following sentence, this Agreement, upon its effective date, and the Invention and Non-Disclosure Agreement contain and constitute the entire understanding and agreement between the Parties hereto with respect to Dr. Garmey’s employment with and separation from the Company, Severance Benefits and the settlement of claims against the Company, and cancels all previous oral and written negotiations, agreements, commitments and writings in connection therewith.  This Agreement supersedes and cancels any prior employment agreements or arrangements Dr. Garmey may have entered into with the Company, including, without limitation, the Employment Agreement (which, for the avoidance of doubt, shall be of no force or effect following the date this Agreement becomes effective and enforceable), provided, however, that nothing in this Section shall modify, cancel or supersede Dr. Garmey’s obligations set forth in Section 5 above, or the Company’s obligations with respect to vested stock options (as modified by Section 2(c) above).

	
 
	
18.
	
Counterparts.  This Agreement will be executed in duplicate such that each Party will retain a fully-executed original and each original may be executed in two (2) signature counterparts, each of which shall constitute an original, but all of which taken together shall constitute one and the same instrument.

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IN WITNESS WHEREOF, the Parties have set their hands and seals to this Agreement as of the date(s) written below.

 

			
	
Cerulean Pharma Inc.

 
	
 
	
 

	
/s/ Christopher D. T. Guiffre
	
 
	
Date:  September 4, 2015

	
By: President and Chief Executive Officer
	
 
	
 

 

 

 

 

I hereby agree to the terms and conditions set forth above. 

 

			
	
Edward Garmey, M.D.

 
	
 
	
 

	
/s/ Edward Garmey
	
 
	
Date:  September 4, 2015

	
 
	
 
	
 

 

 

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EXHIBIT 10.2

CONSULTING AGREEMENT

 

 

THIS CONSULTING AGREEMENT (together with its attachment, the “Agreement”) made as of September 4, 2015 (the “Effective Date”) is between Cerulean Pharma Inc., a Delaware corporation having an address at 840 Memorial Drive, 5th Floor, Cambridge, MA 02139 (“Cerulean”) and Edward Garmey, M.D., an individual having an address at 330 Main Street, Concord, MA 01742 (“Consultant”).  Cerulean desires to have the benefit of Consultant’s knowledge and experience, and Consultant desires to provide Consulting Services (defined below) to Cerulean, all as provided in this Agreement.

 

1.Consulting Services.  Cerulean retains Consultant and Consultant will provide consulting services to Cerulean as it may from time to time reasonably request and as further specified in the business terms exhibit (“Business Terms Exhibit”) attached to this Agreement (the “Consulting Services”).  Any changes to the Consulting Services and/or any compensation adjustments in respect of the Consulting Services must be agreed upon in writing between Consultant and Cerulean. 

 

	
 
	
1.1
	
Performance. Consultant will render the Consulting Services (a) at such reasonably convenient times and places as Cerulean and Consultant may agree, (b) under the general guidance of Cerulean and (c) on a best efforts basis. In performing the Consulting Services, Consultant will comply with all business conduct, regulatory and health and safety guidelines or regulations established by Cerulean or any governmental authority with respect to the business of Cerulean.  

 

	
 
	
1.2
	
Obligations to Third Parties.  Consultant will not use or disclose any confidential information of any other third party in connection with any of the Consulting Services.  Further, Consultant represents that the performance of the Consulting Services does not and will not breach any agreement which obligates Consultant to keep in confidence any confidential information of any third party or to refrain from competing with the business of any third party.  

 

	
 
	
1.3
	
No Conflicts. Consultant is under no contractual or other obligation or restriction which is inconsistent with Consultant’s execution of this Agreement or the performance of the Consulting Services.  During the term of this Agreement, Consultant will not enter into any agreement, either written or oral, in conflict with Consultant’s obligations under this Agreement.  Consultant will arrange to provide the Consulting Services in such manner and at such times that the Consulting Services will not conflict with Consultant’s responsibilities under any other agreement, arrangement or understanding or pursuant to any employment relationship Consultant has at any time with any third party. Consultant represents and warrants to Cerulean that the Developments do not violate the intellectual property rights of any third party.

 

	
 
	
1.4
	
Absence of Debarment.  Consultant represents that Consultant has not been suspended, debarred or subject to temporary denial of approval, and to the best of Consultant’s knowledge, is not under consideration to be suspended, debarred or subject to temporary denial of approval, by the Food and Drug Administration from working in or providing services, directly or indirectly, to any applicant for approval of a drug product or any pharmaceutical or biotechnology company under the Generic Drug Enforcement Act of 1992.

 

2.  Compensation.  In consideration for the Consulting Services rendered by Consultant to Cerulean, Cerulean will pay Consultant as set forth in the Business Terms Exhibit. All undisputed payments will be 

 

 

made by Cerulean within thirty (30) days from Cerulean’s receipt of Consultant’s invoice.  Invoices will contain such detail as Cerulean may reasonably require and will be payable in U.S. Dollars.  Cerulean will reimburse Consultant for reasonable business expenses incurred by Consultant in the performance of the Consulting Services; provided that they are pre-approved by Cerulean.  

3.Proprietary Rights.

 

	
 
	
3.1
	
Developments.  “Developments” means ideas, concepts, discoveries, inventions, developments, improvements, know-how, trade secrets, designs, processes, methodologies, materials, products, formulations, data, documentation, reports, algorithms, notation systems, computer programs, works of authorship, databases, mask works, devices, equipment and any other creations (whether or not patentable or subject to copyright or trade secret protection) that are developed or conceived or reduced to practice by Consultant, either alone or jointly with others, and that result from or relate to the performance of the Consulting Services.    

 

	
 
	
3.2
	
Ownership.  All Developments will be the exclusive property of Cerulean. Consultant hereby assigns and, to the extent any such assignment cannot be made at present, hereby agrees to assign and assigns to Cerulean, without further compensation, all right, title and interest in and to all Developments and any and all related patents, patent applications, copyrights, copyright applications, trademarks, trade names, trade secrets and other proprietary rights in the United States and throughout the world.  During and after the term of this Agreement, Consultant will cooperate fully in obtaining patent and other proprietary protection for the Developments, all in the name of Cerulean and at Cerulean’s cost and expense, and, without limitation, will execute and deliver all requested applications, assignments and other documents, and take such other measures as Cerulean may reasonably request, in order to perfect and enforce Cerulean’s rights in the Developments.  Consultant appoints Cerulean its attorney to execute and deliver any such documents on Consultant’s behalf in the event Consultant fails to do so.  

 

	
 
	
3.3
	
Records and Reporting. Consultant shall make and maintain adequate and current written records of all Developments.  Such records shall be furnished to Cerulean as and when requested by Cerulean and will be the exclusive property of Cerulean.  Consultant will promptly disclose all Developments to Cerulean.  

 

	
 
	
3.4
	
Work at Third Party Facilities.  Consultant will not make any use of any funds,  personnel, equipment, facilities or other resources of any third party in performing the Consulting Services nor to take any other action that would result in a third party owning or having a right in any Developments.

 

4.Confidential Information and Materials.

 

	
 
	
4.1
	
Definitions.  “Confidential Information” means any and all non-public information of  Cerulean, including information that is developed by Consultant in the performance of the Consulting Services as well as information of third parties that Cerulean has an obligation to maintain, which collectively pertain to Cerulean’s technologies, products, intellectual property, finances, operations and/or business, and whether or not labeled as being confidential information of Cerulean.  “Materials” means any biological, chemical or similar materials of Cerulean which are furnished by Cerulean to Consultant in order to perform the Consulting Services.  If the provision of Materials is contemplated under this Agreement, the Materials to be provided are so identified in the Business Terms Exhibit.       

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4.2
	
Obligations of Confidentiality.  During the term of this Agreement and thereafter, Consultant will not directly or indirectly (a) publish, disseminate or otherwise disclose, (b) use for Consultant’s own benefit or for the benefit of a third party or (c) deliver or make available to any third party, any Confidential Information or Materials, other than in furtherance of the purposes of this Agreement and only then with the prior written consent of Cerulean.  Consultant will exercise all reasonable precautions to physically protect the integrity and confidentiality of the Confidential Information and Materials and will not remove any Confidential Information or Materials from Cerulean’s premises, other than in furtherance of the purposes of this Agreement and then only with Cerulean’s prior written consent.  

 

	
 
	
4.3
	
Exceptions.   Consultant will have no obligations of confidentiality and non-use with respect to any portion of the Confidential Information which:

 

	
 
	
(a)
	
is or later becomes generally available to the public by use, publication or the like, through no act or omission of Consultant; 

 

	
 
	
(b)
	
is obtained from a third party without an obligation of confidentiality and such third party had the legal right to disclose the same to Consultant; or

 

	
 
	
(c)
	
Consultant already possesses, as evidenced by its written records that predate the receipt thereof from Cerulean.

 

	
 
	

	
In the event that Consultant is required (by oral questions, interrogatories, request for information or documents, subpoena, civil investigative demand or similar process) to disclose any Confidential Information, Consultant will give Cerulean prompt notice thereof so that Cerulean may seek an appropriate protective order.  Consultant will reasonably cooperate with Cerulean in its efforts to seek such a protective order.

	
 
	
4.4
	
Remedies.  Consultant acknowledges that Cerulean may be irreparably injured by a breach of this Section 4; that money damages would not be an adequate remedy for any such breach; and that Cerulean will be entitled to seek equitable relief, including injunctive relief and specific performance, without having to post a bond, as a remedy for any such breach, and such remedy will not be Cerulean’s exclusive remedy for any breach of this Section 4.

 

5.Term and Termination.  

 

	
 
	
5.1
	
Term.  This Agreement will commence on the Effective Date and continue for the term specified on the Business Terms Exhibit, unless sooner terminated pursuant to the express terms of this Section 5 or extended by mutual written agreement of the parties.

 

	
 
	
5.2
	
Termination by Either Party.  Either party may terminate this Agreement at any time without Cause (as defined in Section 5.3) upon not less than thirty (30) days prior written notice to the other party.

 

	
 
	
5.3
	
Termination for Breach.  Cerulean may immediately terminate this Agreement at any time upon written notice to Consultant in the event of a breach of this Agreement by Consultant which cannot be cured (e.g., a breach of Section 4) or in the event that Consultant is accused of a crime or unethical conduct.  In addition, Cerulean may terminate this Agreement for Cause at any time upon three (3) days prior written notice to Consultant.  “Cause” shall mean 

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(a) a breach by Consultant of this Agreement where such breach can be cured and is not remedied within such three (3) day notice period, (b) the Consultant’s inability to perform the Consulting Services due to mental or physical illness as determined by a physician selected by Cerulean and acceptable to Consultant or (c) a determination by Cerulean in its sole discretion that Consultant’s performance of the Consulting Services is unsatisfactory, which unsatisfactory performance is not remedied within such three (3) day period. 

 

	
 
	
5.4
	
Effect of Expiration/Termination.  Upon any expiration or termination of this Agreement, for any reason, neither Consultant nor Cerulean will have any further obligations under this Agreement, except that (a) Consultant will terminate all Consulting Services in progress in an orderly manner and as otherwise requested by Cerulean, (b) Cerulean will pay Consultant any monies due and owing Consultant for Consulting Services actually performed up to the time of expiration or termination of this Agreement, including any orderly completion of the Consulting Services requested by Cerulean, (c) Consultant will immediately return to Cerulean all Confidential Information provided to Consultant under this Agreement except for one (1) copy which Consultant may retain solely for legal archival purposes, (d) Consultant will immediately return to Cerulean all unused Materials provided to Consultant under this Agreement, (e) Consultant will immediately deliver to Cerulean all Developments and records of Developments, and (f) the terms and conditions of Sections 1.3, 3, 4, 5.4 and 6 will survive expiration or termination of this Agreement.

 

6.   Miscellaneous.

 

	
 
	
6.1  
	
Independent Contractor.  All Consulting Services will be rendered by Consultant as an independent contractor and this Agreement does not create an employer-employee, principal-agent, joint venture or partnership relationship between Consultant and Cerulean.  Consultant will have no right to receive any employee benefits, such as health and accident insurance, sick leave or vacation which are accorded to employees of Cerulean. Consultant will not in any way represent Consultant to be an employee, partner, joint venturer or agent of Cerulean.  Consultant shall be solely responsible for all state and federal income taxes, unemployment insurance and social security taxes, and for maintaining adequate workers’ compensation insurance coverage.  

	
 
	
6.2
	
Taxes.  Consultant will pay all required taxes on Consultant's income from Cerulean under this Agreement.  Consultant shall provide Cerulean with all required tax information, including without limitation, an IRS Form W-9 “Request for Taxpayer Identification Number and Certification.”  Failure to provide such information may result in withholding of payments to Consultant. 

	
 
	
6.3
	
Use of Name.  Consultant consents to the use by Cerulean of Consultant’s name in written materials and oral presentations to current or prospective business partners, investors or other third parties, provided that such materials or presentations accurately describe the nature of Consultant’s relationship with or contribution to Cerulean.

	
 
	
6.4
	
Assignability and Binding Effect.  The Consulting Services to be rendered by Consultant are personal in nature.  Consultant may not assign or transfer this Agreement or any of Consultant’s rights or obligations under this Agreement.  Cerulean shall have the right to assign this Agreement to an affiliated company or in connection with the merger, consolidation, sale or transfer of all or substantially all of the business to which this Agreement relates.  This Agreement will be binding upon and inure to the benefit of the parties and their respective legal representatives, heirs, successors and permitted assigns.

Page 4

 

	
 
	
6.5
	
Notices.  Any notices from one party to the other will be in writing and will be given by addressing the same to the other at the address set forth in this Agreement.  Notices to Cerulean will be marked “General Counsel”. Notice will be deemed to have been duly given when (a) deposited in the United States mail with proper postage for first class registered or certified mail, return receipt requested, (b) sent by any reputable commercial courier, or (c) delivered personally. 

	
 
	
6.6
	
Headings.  The section headings are included solely for convenience of reference and will not control or affect the meaning or interpretation of any of the provisions of this Agreement.

	
 
	
6.7
	
No Modification.  This Agreement may be changed only by a writing signed by both parties.

 

	
 
	
6.8
	
Severability.  In the event that any one or more of the provisions contained in this Agreement shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability will not affect any other provisions of this Agreement, and all other provisions will remain in full force and effect.  If any provision of this Agreement is held to be excessively broad, it will be reformed and construed by limiting and reducing it so as to be enforceable to the maximum extent permitted by law.

 

	
 
	
6.9
	
Entire Agreement.  This Agreement and that certain Separation Agreement by and between Cerulean and Consultant of even date herewith constitutes the entire agreement of the parties with regard to its subject matter, and supersedes all previous written or oral representations, agreements and understandings between the parties.

 

	
 
	
6.10
	
Governing Law.  This Agreement will be governed by, and construed and enforced in accordance with, the laws of the Commonwealth of Massachusetts applicable to contracts made and to be performed therein, without giving effect to the principles thereof relating to the conflict of laws.

 

	
 
	
6.11
	
Counterparts.  This Agreement may be executed in any number of counterparts which may be in the form of a facsimile or a pdf, each of which will be deemed an original, and together will constitute one and the same instrument.

 

[Signature page follows]

Page 5

 

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the Effective Date.

 

 

				
	
Cerulean PHARMA INC.

 
	
 
	
CONSULTANT

	
By:
	
/s/ Christopher D. T. Guiffre
	
 
	
/s/ Edward Garmey

	
Name:
	
Christopher D. T. Guiffre
	
 
	
Edward Garmey, M.D.

	
Title:
	
President & Chief Executive Officer
	
 
	
 

 

 

Page 6

EXHIBIT 10.2

 

EXHIBIT A

BUSINESS TERMS EXHIBIT

Industry Consulting Agreement with Edward Garmey, M.D.

	
1.
	
Consulting Services:  

Consultant will render advice to Cerulean as a member of Cerulean’s Medical Advisory Board.  Consulting Services will be rendered at one or more meetings of the Medical Advisory Board.  Additional Consulting Services may be performed on an ad hoc basis, as determined by mutual arrangement between Consultant and Cerulean’s Chief Medical Officer, to whom Consultant will report during the term of this Agreement.

	
 
	

	
 

	
2.
	
Compensation:

In consideration for the Consulting Services, Consultant will be paid $425 per hour.  

 

	
3.
	
Term:

This Agreement will be for an initial term of one (1) year, beginning on the Effective Date, and may be extended for additional periods, at Cerulean’s option and with Consultant’s consent.

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