Document:

CONSULTING AGREEMENT

EXHIBIT 10.12

ADVISORY BOARD AGREEMENT

DR. JÖRG GERLACH

(and)

HEPALIFE TECHNOLOGIES, INC.

January 1, 2007

THIS HEPALIFE TECHNOLOGIES, INC., ADVISORY BOARD AGREEMENT (“Agreement”) is made effective as of January 1, 2007 (“Effective Date”), by and between HepaLife Technologies, 60 State Street, Suite 700, Boston, MA 02109 (“HepaLife”) and Dr. Jörg Gerlach, McGowan Institute for Regenerative Medicine, 3025 East Carson Street, Suite 238, Pittsburgh, PA 15203, an individual acting as an independent contractor to HepaLife (“Advisor”). 

1.

Background. HepaLife desires to retain the services of Advisor to provide general advice on current standard practices and trends in Advisor’s area of Expertise. 

2.

Description of Services.  HepaLife hereby retains Advisor as a member of the Advisory Board of, and a Consultant to, HepaLife, and Advisor hereby agrees to act as a member of HepaLife’s Advisory Board and attend meetings either telephonically, online, or in person. 

The Advisor will participate in discussions regarding outcomes of clinical trials, current regulatory guidelines related to Bioartifical Liver devices and review of Liver Device technologies already commercialized.

Advisor’s relationship with the HepaLife shall be that of an independent contractor and not that of an employee. 

Accordingly, Advisor will not be eligible for any employee benefits, nor will HepaLife make deductions from payments made to Advisor for taxes, which shall be solely Advisor’s responsibility. Advisor shall have no authority to enter into contracts which bind the HepaLife or create obligations on the part of HepaLife.

Unless otherwise agreed to and approved by the HepaLife, Advisor will not publicly disclose information relating to HepaLife’s affairs and at no time, shall express public opinion with respect thereto unless where public disclosure is required in order to comply with applicable law.

From time to time and as may be required, Advisor may be asked by the HepaLife to participate in media presentations, scientific seminars, meetings, and other public and/or private discourse.

Advisor acknowledges and understands that Consultants may be publicly disclosed and highlighted in HepaLife’s filings and submissions to the U.S. Securities and Exchange Commission (SEC), financial statements, printed and electronic literature, and where appropriate, by way of press release and newswire presentations. HepaLife acknowledges that Advisor may similarly publicly disclose his role.

3.

Term and Expiration. This Agreement shall become effective as of the Effective Date and shall remain in effect for one (1) year. Either Advisor or HepaLife may terminate this Agreement at any time by giving the other party written notice of termination, and such termination shall not affect the Advisor’s continuing obligations to  HepaLife under Section 5.

4.

Consideration. As full consideration for the Consultant Service provided hereunder, HepaLife agrees to pay Advisor $150.00 per hour to a maximum of $1,200.00 per day, payable in US Dollars by way of bank wire transfer or check. The Company agrees to compensate  Advisor for no less than one (1) hour per month.

HepaLife further agrees to fully reimburse Advisor for all pre-approved expenses incurred by Advisor in order to provide Consulting Services, including but not necessarily limited to travel, communications, accommodation, and other such necessary expenditures.  Under the terms of 

this agreement, extraordinary expenses, entertainment and travel time are non-billable items except where agreed-to by HepaLife and Advisor.

5. 

Confidential Information. Advisor agrees to hold in confidence at all times hereafter, whether or not this Agreement is active or terminated, as the sole property of HepaLife, all inventions and secrets, and items of information and data, oral, written or in any other form made or to be made by or for HepaLife, and that he will not use or disclose the same or any part thereof directly or indirectly to any person, firm, or corporation without the written consent of HepaLife, except in the performance of Advisor’s duties hereunder, or as specifically directed by HepaLife. Notwithstanding the foregoing, the obligation of confidentiality herein imposed shall not apply to any information: (a) that was known to Advisor prior to the disclosure thereof by HepaLife; (b) which is or becomes published through no fault of Advisor; and (c) which is obtained by Advisor from third parties under no obligation to either party not to disclose same.

6. 

Indemnification. HepaLife agrees to indemnify and hold Advisor harmless from any liabilities, claims, or demands (including the costs, expenses, and attorneys’ fees on account thereof) that may be made resulting from Advisor’s reliance on information or reports that were prepared fraudulently or recklessly by HepaLife and upon which HepaLife knew that Advisor would rely.

7.

Non-assignable. Since the services to be provided under this Agreement are personal, all duties to be executed by Advisor shall be performed by Advisor and may not be assigned or delegated without written consent of HepaLife. HepaLife shall have the right to assign this Agreement to one of its subsidiaries or affiliates.

8.

Governing Law. This Agreement shall be governed and construed in accordance with the laws of the State of New York.

9.

Mediation and Arbitration. Any dispute arising under this Agreement shall be resolved through a mediation-arbitration approach. The parties agree to select a mutually agreeable, neutral third party to help them mediate any dispute that arises under the terms of this Agreement. Costs and fees associated with the mediation shall be shared equally by the parties. 

10.

Miscellaneous. This Agreement shall be binding upon and shall inure to the benefit of HepaLife’s successors, transferees, and assigns. Any amendment to this Agreement must be in writing signed by Advisor and HepaLife. HepaLife and Advisor acknowledge that any amendment of this Agreement (including, without limitation, any extension of this Agreement or any change from the terms of Section 4 in the consideration to be provided to Advisor with respect to services to be provided hereunder) or any departure from the terms or conditions hereof with respect to Advisor’s consulting services for HepaLife is subject to HepaLife’s and Advisor’s prior written approval. This Agreement supersedes any prior consulting or other similar agreements between Advisor and HepaLife with respect to the subject matter hereof. There is no other agreement governing or affecting the subject matter hereof. All notices hereunder shall be deemed to have been given, if made in writing, when mailed, postage prepaid, to the parties at the addresses set forth above, or to such other addresses as a party shall specify to the other. 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.

11.

Severability. If any provision of this Agreement is held to be unenforceable under applicable law, such provision shall be severed and the remaining provisions of this Agreement shall continue in full force and effect.

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

For:

HepaLife Technologies, Inc.

[Advisor]

/s/ Frank Menzler

/s/ Joerg Gerlach

Frank Menzler

Joerg C. Gerlach

President & CEO

Title

January 9, 2007

December 29, 2006

Date

DateConverted by EDGARwiz

EXHIBIT 10.13

HEPALIFE TECHNOLOGIES, INC.

Suite 216 – 1628 West 1st Avenue

Vancouver, BC, V6J 1G1

   August 1, 2006 

Frank Menzler

64 Gregory Street

Marblehead, MA 01945

Re: Employment Agreement

Dear Frank: 

This letter sets forth the terms and conditions of your employment by the HepaLife Technologies, Inc. (the “Company"). 

1. Position and Duties. 

You shall be employed by the Company as its President and Chief Executive Officer; in performance of your duties, you shall be subject to the direction of, and be reporting directly to, the Company's Board of Directors (the "Board"); provided that, if requested by the Board, you will immediately resign as an officer of the Company. You shall be available to travel as the needs of the business require. You agree to exclusively devote your full business time, energy and skill to the duties assigned to you by the Board. 

2. At-Will Employment. 

Until such time that you receive a valid Green Card authorization in the United States, this employment agreement may be terminated by either party ‘at-will” - with or without cause - by providing 90 days advance notice to the end of a calendar quarter. Upon receipt of a valid Green Card authorization, anything herein to the contrary notwithstanding, your employment with and by the Company is “at-will employment” and may be terminated by you or the Company at any time, with or without cause, and for any reason whatsoever, upon written notice to the other. 

3. Compensation. 

You shall be compensated by the Company for your services as follows: 

 

(a) Salary: Commencing October 1, 2006, you shall be paid a monthly salary of $18,750.00 ($225,000.00 per year), subject to applicable tax withholding, payable in 24 installments on the 15th and last day of each calendar month during the term of this Agreement. Such salary shall be subject to 

periodic review and adjustment in accordance with the Company's salary review policies and practices then in effect for its senior management. 

(b) Stock Options: Upon commencement of employment on October 1, 2006, you and the Company will enter into a Stock Option Agreement (the “Stock Option Agreement”), pursuant to which you shall receive a total of 2,250,000 options (the “Options”) to purchase up to an aggregate of 2,250,000 shares of the Company’s common stock; the Options, which will be priced on the close of business on the 29th day of September, will be  subject to and shall have such restrictions, vesting requirements and exercise provisions as are set forth in the Stock Option Agreement, the terms and conditions of which will be consistent with  those contained in a General Offer of Employment dated June 1, 2006. The granting of the Options shall be effective only upon delivery of a fully executed Stock Option Agreement.

(c) Additional Benefits: You shall be entitled to four weeks of paid vacation annually. Nothing contained herein shall preclude you from participating in the present or future employee benefit plans of the Company for its senior executive staff, provided that you meet the eligibility requirements for participation in any such plans.

 

4. Expenses.

(a) Initial Expense Reimbursement: You shall receive a one time payment of $35,000.00 to reimburse you for certain expenses incurred by you in connection with your acceptance of employment hereunder (the “Initial Expense Reimbursement”) to relocate. Should the company terminate your employment without cause during your tenure, the company will reimburse you for reasonable relocation expenses (not to exceed $35,000) upon presentation of invoices. The Company’s commitment to reimburse your relocation expenses upon termination without cause shall expire as soon as you receive your Green Card. Should your employment be terminated by yourself or by the Company for cause, within twelve (12) months of the date of this Agreement, the Initial Expense Reimbursement shall become due and payable on a pro-rated monthly basis to the Company within 5 calendar days of the termination date. This Paragraph 4(a) shall survive the termination of this Agreement. 

(b) Medical Expense/Life Insurance: During the term of this Agreement, the Company agrees to pay your current monthly COBRA insurance premiums (“COBRA premiums”) of up to $2,000.00 per month until such time that the Company can make available an alternative medical insurance plan. You are also entitled to term life insurance and travel insurance, not to exceed total premium payments of $1,000.00 per year.

(c) US VISA/Work authorization: The Company will assist you in obtaining the necessary Visa/Work Authorization for you and your family, followed immediately by an application for a US Green Card, on the assumption, and agreement by you, that you meet all necessary criteria for obtaining a Green Card. Any legal cost associated with obtaining a Green Card will be paid by the Company.

(d) Other Expenses: You shall be entitled to reimbursement for reasonable travel and other out-of-pocket expenses necessarily incurred in the performance of your duties hereunder, upon submission and approval of written statements and bills in accordance with the then regular procedures of the Company.  

5.  Your Representations and Warranties:  You represent and warrant to the Company that (a) you are under no contractual or other restriction or obligation which is inconsistent with the execution of this Agree­ment, the performance of your duties hereunder, or the other rights of the Company hereunder, and (b) you are under no physical or mental disability that would hinder your performance of duties under this Agreement.

6. Termination of Salary, Benefits and Options: In the event of the termination of your employment by the Company or by you under Paragraph 2, then as of the date of the termination of your employment as set forth in either the Company’s notice to you or your notice to the Company, as the case may be (i), you shall no longer be entitled to any compensation under Paragraph 3 hereof, (ii) you shall no longer be entitled to any reimbursement of expenses under Paragraph 4 hereof, except for expenses incurred by you and approved by the Company prior to the date of such termination, (iii) any and all unexercised Options shall expire and shall no longer be exercisable as of the date of termination of this Agreement, and (iv) neither party hereto shall have any further rights or obligations hereunder (except obligations expressly stated to survive the termination of this Agreement). Nothing shall limit your right to be indemnified by the Company, subject to its indemnification policies then in effect, for your actions as a director or officer of the Company, provided such indemnification would otherwise have been available to you. 

7. Non Competition; Non Solicitation:  (a)

In view of the unique and valuable services it is expected that you will render to the Company, your knowledge of its trade secrets, and other proprietary information relating to the business of the Company and in consideration of the compensation to be received hereunder, you will not, during the period you are employed by the Company, engage in, or otherwise directly or indirectly, be employed by, or act as a consultant or lender to, or, without the prior written approval of the Board, be a director, officer, owner, or partner of, any other business or organization that is engaged in the same field of research and development as is the Company. Nothing herein shall be deemed to preclude you from being an officer, director, owner, investor in, or partner of, any business or organization which is not competing with the Company, provided the same does not in any manner whatsoever impair your ability to perform your duties under this Agreement.

(b) During your employment and for a period of one year following the termination of your employment, you will not directly or indirectly reveal the name of, solicit or interfere with, or endeavor to entice away from the Company any of its suppliers, customers, or employees.

(c) During your employment and for a period of one year following the termination of your employment, you shall not make any critical or disparaging statements about the Company or any of its employees, directors or products to any other person or entity.

(d) Since a breach of the provisions of this Paragraph 7 could not adequately be compensated by money damages, the Company shall be entitled, in addition to any other right and remedy available to it, to an injunction restraining such breach or a threatened breach, and in either case no bond or other security shall be required in connection therewith, and you hereby consent to the issuance of such injunction. You agree that the provi­sions of this Paragraph 7 are necessary and reasonable to protect the Company in the conduct of its business.  If any restriction contained in this Paragraph 7 shall be deemed to be invalid, illegal, or unenforceable by reason of the extent, duration, or geographical scope thereof, or otherwise, then the court making such determination shall have the right to reduce such extent, duration, geographical scope, or other provisions hereof, and in its reduced 

form such restriction shall then be enforceable in the manner contemplated hereby. This Paragraph 7 shall survive the termination of this Agreement.

8. Intellectual Property: Any interest in patents, patent applications, inventions, copyrights, developments, and processes (“Intellectual Property”) which you now, or hereafter during the period you are employed by the Company, may own or develop relating to the fields in which the Company may then be engaged shall belong to the Company; and forthwith upon request of the Company, you shall execute all such assignments and other documents and take all such other action as the Company may reasonably request in order to vest in the Company all your right, title, and interest in and to such Intellectual Property free and clear of all liens, charges, and encumbrances. This Paragraph 8 shall survive the termination of this Agreement.

9. Confidential Information: All confidential information which you may now possess, or may obtain or create prior to the end of the period you are employed by the Company, relating to the business of the Company, or any customer or supplier of the Company, or any agreements, arrangements, or understandings to which the Company is a party, shall not be disclosed or made accessible by you to any other person or entity either during or after the termination of your employment or used by you except during your employment by the Company in the business and for the benefit of the Company.  You shall return all tangible evidence of such confidential information to the Company prior to or at the termination of your employment. This Paragraph 9 shall survive the termination of this Agreement.

10. Successors and Assigns: This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns. In view of the personal nature of the services to be performed under this Agreement by you, you shall not have the right to assign or transfer any of your rights, obligations or benefits under this Agreement, except as otherwise noted herein.

11. No Reliance on Representations: You acknowledge that you are not relying, and have not relied, on any promise, representation or statement made by or on behalf of the Company which is not set forth in this Agreement. 

12. Entire Agreements; Amendments: This Agreement sets forth our entire understanding of the parties with respect to your employment by the Company, supersedes all existing agreements between you and the Company concerning such employment, and may be modified only by a written instrument duly executed by each of you and Company. 

13.  Waiver: Any waiver by either party of a breach of any provision of this Agreement shall not operate as or be construed to be a waiver of any other breach of such provision or of any breach of any other provision of this Agreement. The failure of a party to insist upon strict adherence to any term of this Agreement on one or more occasions shall not be considered a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement.  Any waiver must be in writing.

14. Construction: You and the Company have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by you and the Company and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement. Any reference to any federal, state, local, or foreign statute or law shall be deemed also to refer to all rules and regulations promulgated thereunder, unless the context requires 

otherwise. The word “including” shall mean including without limitation. The headings in this Agreement are solely for the convenience of reference and shall be given no effect in the construction or interpretation of this Agreement.

15.  Severability: Any term or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction shall not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision in any other situation or in any other jurisdiction.

16. Notices: All notices, demands or requests made pursuant to, under or by virtue of this Agreement must be in writing and sent to the party to which the notice, demand or request is being made by (i) certified or registered mail, return receipt requested, (ii) nationally recognized overnight courier delivery, (iii) by facsimile transmission provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party or (iv) hand delivery as follows:

To the Company:

 

HepaLife Technologies, Inc.

Suite 216 – 1628 West 1st Avenue

Vancouver, BC, V6J 1G1

Fax:

604-659-5029

Attention: 

Mr. Harmel S. Rayat, 

President and Chief Executive Officer

To you:

64 Gregory Street

Marblehead, MA 01945

or to such other address, facsimile number, or email address, as is specified by a party by notice to the other party given in accordance with the provisions of this Paragraph 16. Any notice given in accordance with the provisions of this Paragraph 16 shall be deemed given (i) three (3) Business Days after mailing (if sent by certified mail), (ii) one (1) Business Day after deposit of same with a nationally recognized overnight courier service (if delivered by nationally recognized overnight courier service), or (iii) on the date delivery is made if delivered by hand or facsimile.  

17. Counterparts This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 

18. Governing Law.  All other questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New York.  Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York, County of New York for the adjudication of any dispute hereunder or in connection herewith or therewith, or with any transaction 

contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper.  Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof.  Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law.  EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

19. Date of Agreement.  The date of this Agreement shall be August 1, 2006 regardless of the date it is signed by you. 

If you find the foregoing acceptable, please acknowledge your acceptance of, and agreement with, the terms and conditions set forth above by signing the enclosed copy of this letter in the space provided and returning the same to the undersigned. 

Sincerely, 

HepaLife Technologies, Inc.  

/s/ Harmel S. Rayat

Harmel S. Rayat

President and Chief Executive Officer

On this 1st day of August, 2006, I agree to and accept employment with HepaLife Technologies, Inc. on the terms and conditions set forth in this Agreement. 

Dated: August 1, 2006

/s/ Frank Menzler

Frank Menzler

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