Document:

ex10_10.htm

CNS PROTEIN THERAPEUTICS, INC.

CONSULTING AGREEMENT

 

This Consulting Agreement ("Agreement") is entered into as of March 11, 2008 by and between CNS Protein Therapeutics, Inc. (the "Company") and Keelin Reeds Partners, LLC ("Consultant"). The Company desires to retain Consultant as an independent contractor to perform consulting services for the Company, and Consultant is willing to perform such services, on the terms described below. In consideration of the mutual promises contained herein, the parties agree as follows:

 

1. Services and Compensation.

 

A. Services

 

Consultant agrees to perform the following services during the initial three-month period for the Company in exchange for the Compensation described in Section l.B:

 

(1) From the perspective of an investor, KR will develop the value proposition for MANF in treating Parkinson's Disease. The objective is to understand the technical risk, development cost & timing, competitive environment, and commercial potential of this key opportunity in order to present an objective, fact-based value proposition to investors and potential partners. The resulting valuation analysis of MANF will yield a 10-50-90 probability range on peak sales and NPV of cash flows, conditional on a full range of success and failure scenarios. Sensitivity analysis will be used to identify key value drivers. Step-up analysis will be used to identify value inflection points for optimal partnering and/or financing events.

 

(2) Our final deliverable for the initial three month period will be an investor-perspective PowerPoint presentation that provides a credible third-party opinion regarding the value of the Company's lead asset MANF in its lead indication of Parkinson's Disease. KR will present its methodology, conclusions, and recommendations to Company's management and/or board of directors, as appropriate.

 

(3) Provide other services as mutually agreed.

 

B. Compensation/or initial three month period

 

In consideration for Consultant's performance of the Services described in Section l.A, Company agrees to compensate Consultant as follows:

 

	
             (1)

	
$3,000 initiation fee, to be paid within five (5) days of the date of execution of this Agreement;

 

(2)            $3,000 per month retainer for three (3) consecutive months

  

  

  

 

(3)            The Company will pay additional compensation in the amount of$26,000 upon the closing of an equity financing having aggregate net proceeds of at least $1.5 million.

 

 (4)            Subject to approval ofthe Board, in consideration for your agreement to defer payment of fees, the Company will grant Consultant an option for the purchase of 80,400 shares of the Company's common stock at 

an exercise price equal to the fair market value on the date of grant. The options shall vest in equal monthly installments over a period of six months.

 

C.            Upon the completion of the initial three month period, Company can choose whether to continue to retain Consultant or to terminate subject to the conditions of Section 6 below. Should the Company elect to 

continue to retain Consultant, the Company shall make a cash payment of $3,000 in advance to Consultant for each month worked under the retainer. In addition, Consultant will submit to Company an invoice for its work during that period, calculated on a time and materials basis, crediting the $3,000 monthly retainer, using the following rates: Tom Keelin $5,000 per day, Michael Mischke-Reeds $4,000 per day, John Selig $2,800 per day.

 

D.            The Company will reimburse Consultant for all reasonable expenses incurred byConsultant in performing the Services pursuant to this Agreement. Consultant shall request consent from an authorized agent of 

the Company prior to incurring expenses in excess of $1 00. Consultant shall be required to submit receipts for all expenses incurred on behalf of Company.

 

Every two weeks, Consultant shall submit to Company a written invoice for Services and expenses, and such invoice shall be subject to Company's approval.

 

2. Confidentiality.

 

A. Definition. Company and Consultant agree to disclose to and receive from the other, or allow the other to have access to, such party's confidential and proprietary information, only upon the following terms and conditions. "Confidential Information" means any non-public information that relates to the actual or anticipated business or research and development of the Company or Consultant, technical data, trade secrets or know-how, including, but not limited to, research, product plans or other information regarding Company's or Consultant's products or services and markets thereof, customer lists and customers (including, but not limited to, customers of the Company on whom Consultant called or with whom Consultant became acquainted during the term of this Agreement), software, developments, inventions, processes, formulas, technology, designs, drawing, engineering, hardware configuration information, marketing, finances or other business information. Confidential Information does not include:

 

a)            information that is now in the public domain or subsequently enters the public domain without fault on the part of the receiving party;

 

b)            information that, prior to the date of disclosure hereunder, is known by the receiving party from its own sources without restriction, as evidenced by the receiving party's prior written records;

  

  

  

c)           information received by the receiving party without restriction from any third party not under any obligation to keep such information confidential; and

 

d)            information which the receiving party proves by clear and convincing evidence was independently developed without the use of any ofthe other party's Confidential Information.

 

B. Nonuse and Nondisclosure. Each party agrees to maintain in confidence all Confidential Information and, subject to the express provisions of this Agreement, not to disclose it to any third party without the express written consent of the disclosing party, to be given or withheld in the absolute discretion of the disclosing party. Each party shall take all necessary and reasonable precautions to prevent the disclosure of Confidential Information to any unauthorized third parties. In this regard, each party agrees that it will disclose Confidential Information only to those of its employees and consultants who need to know such Confidential Information to complete the Services and who are bound by obligations of confidentiality at least as stringent as those set forth herein. Each party agrees that upon disclosing Confidential Information to any such persons, they shall be advised of the confidential nature of the information and shall be instructed to take all necessary and reasonable precautions to prevent the unauthorized disclosure thereof. A party may disclose Confidential Information to affiliated companies controlled by, under the control of, or under common control with such party, if such companies are bound by obligations of confidentiality at least as stringent as those set forth herein. Notwithstanding the foregoing, Confidential Information may be disclosed to the extent required by applicable laws or regulations or as ordered by a court or other regulatory body having competent jurisdiction provided that the receiving party uses commerciaIIy reasonable efforts to limit the disclosure and maintain confidentiality to the extent possible and provides reasonable prior written notice to the other party.

 

C. Former Client Confidential !J?formation. Consultant agrees that Consultant will not, during the term of this Agreement, improperly use or disclose any proprietary information or trade secrets of any former or current employer of Consultant or other person or entity with which Consultant has an agreement or duty to keep in confidence information acquired by Consultant, if any. Consultant also agrees that Consultant will not bring onto the Company's premises any unpublished document or proprietary infonnation belonging to any such employer, person or entity unless consented to in writing by such employer, person or entity.

 

D. Third Party Confidential Information. Consultant recognizes that the Company has received and in the future will receive from third parties their confidential or proprietary information subject to a duty on the Company's part to maintain the confidentiality of such information and to use it only for certain limited purposes. Consultant agrees that, during the term of this Agreement and thereafter, Consultant owes the Company and such third parties a duty to hold all such confidential or proprietary information in the strictest confidence and to not disclose it to any person, firm or corporation or to use it except as necessary in carrying out the Services for the Company consistent with any agreement between the Company and such third parties.

 

E. Return of Materials. Upon the termination of this Agreement, or upon Company's earlier request, Consultant will deliver to the Company all of the Company's property, including but not limited to (i) all originals, (ii) any and all reproductions thereof, (iii) all electronically stored information and passwords to access such property, and (iv) Confidential Information that Consultant may have in Consultant's possession or control.

  

  

  

 

3. Ownership.  All inventions, ideas, improvements, discoveries, enhancements, modifications, know-how, data and information of every kind and description conceived, generated, made, or reduced to 

practice, as the case may be, by Consultant, either alone or jointly with others, which arise out of or relate to this Agreement and are based solely on Consultant's prior inventions (the "KR Inventions") will be the sole and exclusive property of Consultant, provided, however, Company retains a perpetual right to use such KR Inventions which arise out of or relate to the Services provided pursuant to this Agreement. All inventions, ideas, improvements, discoveries, enhancements, modifications, know-how, data and information of every kind and description conceived, generated, made, or reduced to practice, as the case may be, Company, either alone or jointly with others, which arise out of or relate to the Services provided pursuant to this Agreement and are based on Company inventions (the "CNS-PT Inventions") will be the sole and exclusive property of Company.

 

4. Conflicting Obligations.

 

A. Conflicts. Consultant certifies that Consultant has no outstanding agreement or obligation that is in conflict with any of the provisions of this Agreement or that would preclude Consultant from complying with the provisions of this Agreement. Consultant further certifies that he will not enter into any such conflicting agreement during the term of this Agreement. Consultant agrees that any violation of Section 4.A. constitutes a material breach of this Agreement, as that term is defined under Section 6.B.

 

B. Substantially Similar Designs. In view of Consultant's access to the Company's trade secrets and proprietary know-how, Consultant agrees that Consultant will not, without Company's prior written approval, design identical or substantially similar designs as those developed under this Agreement for any third party during the term of this Agreement and for a period of 12 months after the termination of this Agreement. Consultant acknowledges that the obligations in this Section 4 are ancillary to Consultant's nondisclosure obligations under Section 2.

 

     5. Reports. Consultant agrees that Consultant will, from time to time during the term of this Agreement or any extension thereof, keep the Company advised as to Consultant's progress in performing the Services under is Agreement. Consultant further agrees that Consultant will, as requested by the Company, prepare written reports with respect to such progress. The Company and Consultant agree that the time required to prepare such written reports will be considered time devoted to the performance of the Services.

 

6. Term and Termination.

 

A. Term. The term of this Agreement will begin on the date of this Agreement and will continue until the earlier of (i) final completion of the Services or (ii) termination as provided in Section 6.B.

  

  

  

 

B. Termination. Either party may terminate this Agreement upon giving the other party 14 days' prior written notice of such termination pursuant to Section l1.E of this Agreement. The Company may terminate this Agreement immediately and without prior notice if Consultant refuses to or is unable to perform the Services or is in breach of any material provision of this Agreement.

 

C. Survival. Upon such termination, all rights and duties of the Company and Consultant toward each other shall cease except that:

 

(l) The Company will pay, within 30 days after the effective date of termination, all amounts owing to Consultant for Services completed and accepted by the Company prior to the termination date and related expenses, if any, submitted in accordance with the Company's policies and in accordance with the provisions of Section 1 of this Agreement; and

 

(2) The duties set forth in Section 2 (Confidentiality), Section 3 (Ownership), Section 4 (Conflicting Obligations), Section 7 (Independent Contractor; Benefits), Section 8 (Indemnification), Section 9 (Nonsolicitation) and Section 10 (Arbitration and Equitable Relief) shall survive termination of this Agreement.

 

7. Independent Contractor; Benefits.

 

A. Independent Contractor. It is the express intention of the Company and Consultant that Consultant perform the Services as an independent contractor to the Company. Consultant is not an agent, employee or representative of the Company. Consultant acknowledges that Consultant is not authorized to bind the Company to any liability or obligation or to represent that Consultant has any such authority. Consultant agrees to furnish (or reimburse the Company for) all tools and materials necessary to accomplish this Agreement and shall incur all expenses associated with performance, except as expressly provided in Section l.C .. Consultant acknowledges and agrees that Consultant is obligated to report as income all compensation received by Consultant pursuant to this Agreement, and to pay all state, federal and local self-employment and other taxes on such income.

 

B. Benefits. As Consultant is not an employee of the Company, the Company and Consultant agree that Consultant shall not be eligible to receive any Company-sponsored employment benefit. If Consultant is reclassified by a state or federal agency or court as Company's employee, Consultant shall become a reclassified employee, but shall not be eligible to receive any employment benefits from the Company, except as mandated by state or federal law, even if by the terms of the Company's benefit plans or programs of the Company in effect at the time of such reclassification, Consultant would otherwise be eligible for such benefits.

 

8. Indemnification. Consultant agrees to indemnify and hold harmless the Company and its directors, officers and employees from and against all taxes, losses, damages, liabilities, costs and expenses, including attorneys' fees and other legal expenses, arising directly or indirectly from or in connection with (i) any negligent, reckless or intentionally wrongful act of Consultant or Consultant's assistants, employees or agents, (ii) a determination by a court or agency that the Consultant is not an independent contractor, (iii) any breach by the Consultant or Consultant's assistants, employees or agents of any of the covenants contained in this Agreement, (iv) any failure of Consultant to perform the Services in accordance with all applicable laws, rules and regulations, or (v) any violation or claimed violation of a third party's rights resulting in whole or in part from the Company's use of the work product of Consultant under this Agreement.

  

  

  

 

9. Nonsoficitation. From the date of this Agreement until 12 months after the termination of this Agreement (the "Restricted Period"), Consultant will not, without the Company's prior written consent, directly or indirectly, solicit or encourage any employee or contractor of the Company or its affiliates to terminate employment with, or cease providing services to, the Company or its affiliates. During the Restricted Period, Consultant will not, whether for Consultant's own account or for the account of any other person, firm, corporation or other business organization, intentionally interfere with any person who is or during the period of Consultant's engagement by the Company was a partner, supplier, customer or client of the Company or its affiliates.

 

10. Arbitration and Equitable Relief

 

A.           Arbitration. IN CONSIDERATION OF THE MUTUAL RIGHTS AND PROMISES SET FORTH IN THIS AGREEMENT, CONSULTANT AND COMPANY AGREE TO ARBITRATE ANY AND ALL

CONTROVERSIES, CLAIMS AND DISPUTES, ARISING OUT OF THIS AGREEMENT. THIS INCLUDES, BUT IS NOT LIMITED TO STATE AND FEDERAL COMMON LAW AND STATUTORY EMPLOYMENT DISPUTES, AS WELL AS CONTROVERSIES, CLAIMS AND DISPUTES (1) CONCERNING THE COMPANY OR ANY EMPLOYEE, OFFICER, DIRECTOR OR SHAREHOLDER OF THE COMPANY; AND (2) ARISING OUT OF, RELATING TO, OR RESULTING FROM CONSULTANT'S PERFORMANCE OF THE SERVICES UNDER THIS AGREEMENT, ANY BREACH OF THIS AGREEMENT, AND TERMINATION OF THIS AGREEMENT. CONSULTANT ACKNOWLEDGES THAT CONSULTANT SHALL BE SUBJECT TO BINDING ARBITRATION UNDER THE ARBITRATION RULES SET FORTH IN CALIFORNIA CODE OF CIVIL PROCEDURE SECTIONS 1280 THROUGH 1294.2, INCLUDING SECTION 1283.05 (THE "RULES") AND PURSUANT TO CALIFORNIA LAW.

 

B.           Procedure. CONSULTANT AND COMPANY AGREE TO ARBITRATE ANY CLAIMS, CONTROVERSIES OR DISPUTES ARISING UNDER OR RELATED TO THIS AGREEMENT. THE PARTIES FURTHER

AGREE THAT ALL CLAIMS, CONTROVERSIES AND DISCPUTES WILL BE RESOLVED BY A SINGLE NEUTRAL ARBITRATOR AND PURSUANT TO THE RULES OF THE AMERICAN ARBITRATION ASSOCIATION ("AAA"). THE PARTIES FURTHER AGREE THAT THE ARBITRATOR SHALL HAVE THE POWER TO DECIDE MOTIONS BROUGHT BY EITHER PARTY, INCLUDING MOTIONS TO DISMISS AND DEMURRERS, MOTIONS FOR CLASS CERTIFICATION MOTIONS, AND MOTIONS FOR SUMMARY JUDGMENT AND/OR ADJUDICATION PRIOR TO THE ARBITRATION HEARING. THE ARBITRATOR SHALL HAVE THE POWER TO AWARD ANY REMEDIES AVAILABLE UNDER APPLICABLE LAW. THE PARTIES FURTHER AGREE TO SHARE THE COSTS OF ARBITRATION EQUALLY AND THAT EACH PARTY SHALL BEAR ITS OWN COSTS, INCLUDING ATTORNEY FEES, EXCEPT AS OTHERWISE PROVIDED BY LAW.

 

C. Availability of Injunctive Relief CONSULTANT AGREES THAT EITHER THE COMPANY OR CONSULTANT MAY PETITION A COURT FOR PROVISIONAL RELIEF, INCLUDING INJUNCTIVE RELIEF, WHERE EITHER THE COMPANY OR CONSULTANT ALLEGES OR CLAIMS A VIOLATION OF THIS AGREEMENT BETWEEN CONSULTANT AND THE COMPANY.

  

  

  

 

D. Administrative Relief NOTHING IN THIS AGREEMENT SHALL BE CONSTRUED TO PROHIBIT CONSULTANT FROM PURSUING AN ADMINISTRATIVE CLAIM WITH A LOCAL, STATE OR FEDERAL 

ADMINISTRATIVE BODY HAVING JURISDICTION OVER SUCH CLAIM. THIS AGREEMENT DOES, HOWEVER, PRECLUDE CONSULTANT FROM PURSUING COURT ACTION REGARDING ANY SUCH CLAIM.

 

E. Remedy. EXCEPT AS PROVIDED IN SECTIONS 10. C AND D, ARBITRATION SHALL BE THE SOLE, EXCLUSIVE AND FINAL REMEDY FOR ANY DISPUTE BETWEEN THE COMPANY AND CONSULTANT. ACCORDINGLY NEITHER THE COMPANY NOR CONSULTANT WILL BE PERMITTED TO PURSUE A COURT ACTION REGARDING CLAIMS THAT ARE SUBJECT TO ARBITRATION.

 

F. Voluntary Nature of Agreement. CONSULTANT ACKNOWLEDGES AND AGREES THAT CONSULTANT IS EXECUTING THIS AGREEMENT VOLUNTARILY AND WITHOUT ANY DURESS OR UNDUE INFLUENCE BY THE COMPANY OR ANYONE ELSE. CONSULTANT FURTHER ACKNOWLEDGES AND AGREES THAT CONSULTANT HAS CAREFULLY READ THIS AGREEMENT AND THAT CONSULTANT HAS ASKED ANY QUESTIONS NEEDED FOR CONSULTANT TO UNDERSTAND THE TERMS, CONSEQUENCES AND BINDING EFFECT OF THIS AGREEMENT AND FULLY UNDERSTAND IT, INCLUDING THAT CONSULTANT IS WAIVING ITS RIGHT TO A JURY TRIAL. FINALLY, CONSULTANT AGREES THAT CONSULTANT HAS BEEN PROVIDED AN OPPORTUNITY TO SEEK THE ADVICE OF AN ATTORNEY OF ITS CHOOSING BEFORE SIGNING THIS AGREEMENT.

 

11. Miscellaneous.

 

A. Governing Law. This Agreement shall be governed by the laws of California without regard to California's conflicts oflaw rules.

 

B. Assignability. Except as otherwise provided in this Agreement, Consultant may not sell, assign or delegate any rights or obligations under this Agreement.

 

C. Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to the subject matter of this Agreement and supersedes all prior written and oral agreements between the parties regarding the subject matter of this Agreement.

 

D. Headings. Headings are used in this Agreement for reference only and shall not be considered when interpreting this Agreement.

 

E. Notices. Any notice or other communication required or permitted by this Agreement to be given to a party shall be in writing and shall be deemed given if delivered personally or by commercial messenger or courier service, or mailed by U.S. registered or certified mail (return receipt requested), to the party at the party's address written below or at such other address as the party may have previously specified by like notice. If by mail, delivery shall be deemed effective three business days after mailing in accordance with this Section 1l.E.

  

  

  

 

F. Attorneys' Fees. In the event of a court action, whether at law or in equity that is brought by a party to this Agreement, the parties shall be required to bear their own costs, including attorneys' fees.

 

G. Severability. If any provlsIOn of this Agreement is found to be illegal or unenforceable, the other provisions shall remain effective and enforceable to the greatest extent permitted by law.

  

  

  

IN WITNESS WHEREOF, the parties hereto have executed this Consulting Agreement as of the date first written above.

	
CONSULTANT

	  	
CNS PROTEIN THERAPEUTICS, INC.

 

	
By: /s/ Michael Mischke-Reeds   

	  	
By: /s/ Gerald Commissiong

	
Name: Michael Mischke-Reeds

	  	
Name: Gerald Commissiong

	
Title: Managing Partner

	  	
Title:

	
Address for Notice:

	  	
Address for Notice:

	800 Menlo Ave., Ste. 210	  	
Attn: Gerald Commissiong

	Menlo Park, CA 94025	  	
CNS Protein Therapeutics, Inc.

	  	  	
555 Bryant Street, #143

	  	  	
Palo Also, CA 94301-1704ex10_11.htm

CNS PROTEIN THERAPEUTICS, INC.

EXECUTIVE SERVICES AGREEMENT

This Executive Services Agreement (this "Agreement") is made by and between CNS Protein Therapeutics, Inc., a [Delaware] corporation (the "Company"), and MDCleary, LLC, a [California] limited liability company (the "Consultant"), effective as of August 10, 2009 (the "Effective Date").

Recital

The Company desires to engage Consultant, and Consultant desires to render services to the Company as a consultant, under the terms of this Agreement.

Agreement

Based upon the premise of the recital above and the mutual promises below, the parties hereby agree as follows:

1.            The Services. The Company hereby engages Consultant to perform such services (the "Services") as specified in "Scope of Services" on Schedule A hereto, as such Schedule may be amended from time to time in writing by the Company and Consultant.

2.           Term: Termination.

a.           Term. This Agreement shall commence on the Effective Date and will remain in effect until the earlier of (i) the thirtieth (30th) day following such date that either party hereto provides written notice to the other that it has elected to voluntarily terminate the Agreement (other than by the Company for Cause or by Consultant for Good Reason) (a "Voluntary Termination"), or (ii) immediately upon termination of the Consultant by the Company for Cause by a majority vote of the Board of Directors of the Company, or upon termination by the Consultant for Good Reason (an "Involuntary Termination"). ''Cause'' shall be defined as (i) Martin D. Cleary’s conviction of a felony or any other crime involving fraud; (ii) any willful act or acts of dishonesty undertaken by Martin D. Cleary; (iii) any willful act of gross misconduct by Martin D. Cleary; or (iv) Consultant appoints anyone other than Martin D. Cleary  to perform the Services, "Good Reason" shall be defined as a material reduction in Consultant's compensation or a change of Martin D. Cleary's responsibilities, title and/or position without the Consultant’s prior written consent.

b.           Effect of Termination. In the event the company initiates a Voluntary Termination, or in the even the Consultant initiates a Voluntary Termination for Good Reason, the Company shall pay Consultant a lump sum equal to $50,000 plus any accrued and unpaid compensation and expenses owed Consultant pursuant to this Agreement. In the event the Consultant initiates a Voluntary Termination or in the event the Company initiates an Involuntary Termination for Cause, then the Company shall pay Consultant any accrued and unpaid compensation and expenses owed Consultant. Except as otherwise set forth herein termination of this Agreement will constitute termination of the consultancy services and termination of vesting of any stock options, shares or other equity incentives; provided however, in no event shall a termination of this Agreement (other than an Involuntary Termination of Consultant by the Company for Cause) discharge the Company's obligation to make the payment or issue the capital stock as set forth under the caption "Change of Control Bonus" on Schedule A hereto. Notwithstanding the foregoing, Sections 7 through 9 of this Agreement will survive termination of this Agreement and Consultant shall remain bound thereby.

  

  

  

 

       3.           Location of Services; Employees. Unless otherwise specified in the applicable Scope of Services, Consultant will perform the services at Consultant’s place of business located at 6200 Stoneridge Mall Road, Suite 300, Pleasanton, CA 94588, and use Consultant's tools and equipment. Consultant shall not subcontract or assign Services to anyone other than Martin D. Cleary, without the Company's prior written consent. Consultant hereby represents and warrants that (a) the undersigned has authority to bind Consultant to this Agreement and (b) Consultant shall be solely responsible for all acts and omissions of, and for all payments to, Martin D. Cleary, including, without limitation, tax withholdings.

4.           Expenses. The Company will reimburse Consultant for all reasonable and necessary expenses incurred in rendering the Services provided the Company approves such expenses before Consultant incurs the expense. Notwithstanding the foregoing, and in addition to its other expense reimbursement obligations and compensation hereunder, the Company will pay Consultant $1,000 per month for office maintenance and supplies.

5.           Taxes. Consultant hereby directs the Company not to withhold any income, social security, state disability, or other taxes that may be applicable to Consultant. Consultant hereby represents that Consultant is an independent contractor and will pay such taxes on Consultant's own behalf. Consultant hereby agrees to indemnify the Company for any taxes, interest, and penalties incurred by the Company as a result in whole or in part from the Consultant not paying and/or withholding such taxes on Consultant's own behalf.

6.           Non-Exclusivity. The parties hereto acknowledge and agree that Consultant and Martin D. Cleary are free to seek consultancy arrangements, employment positions, and directorships with businesses other than the Company during the term of this Agreement; provided that any such engagements shall not conflict with or otherwise inhibit the performance of the Services, or result in a breach of any fiduciary obligation owed the Company, resulting in a material and adverse affect on the business of the Company. For purposes of clarity, the Company acknowledges that Martin D. Cleary performs, and will continue to perform during the term of this Agreement, the following positions: (i) member of the Board of Directors and Chairman of the Audit Committee of Electrical Optical Sciences, Inc.; (ii) member of the Board of Directors and Chairman of Juvaris BioTherapeutics, Inc.; and (iii) member of the Board of Directors and Chairman of Fish Nature, Inc. Consultant agrees to notify the Company of any additional engagements accepted by Martin D. Cleary during the term of this Agreement.

7.           Non-Disclosure and Retention of Certain Company Information.

	
a.  

	
Non-Disclosure of Company Confidential Information.

(l)            Consultant will regard and preserve as confidential, and will not divulge to unauthorized persons or use, or authorize or encourage persons who are under Consultant's direction or supervision to use, for any unauthorized purposes, either during or after the term of the engagement, any information, matter, material or thing of a secret, confidential, or private nature connected with the business of the Company or any of its suppliers, customers or their affiliates ("Confidential Information") without the prior written consent of the Board of Directors of the Company. Confidential Information shall include, without limitation: (i) all matters of a technical nature, such as trade secrets, intellectual property, know-how, formulae, computer programs, source code, object code, machine code, routines, algorithms, software and documentation, secret processes or machines, inventions and research projects; (ii) all matters of a business nature, such as information about costs, profits, markets, sales, customers, business contacts, suppliers, and employees (including salary, evaluation, and other personnel data); (Hi) all plans for further development; and (iv) any other information of a similar nature.

 

  

  

  

 

(2)           In this regard, although certain information or technology may be generally known in the relevant industry, the fact that the Company uses it, and how the Company uses it, may not be so known, and therefore is subject to non-disclosure and non-use. Furthermore, the fact that various fragments of information or data may be generally known in the relevant industry does not mean that the manner in which the Company combines them and the results obtained thereby are so known; and in such instance that fact also is subject to non­disclosure and non-use.

(3)           Excluded from the restrictions of this Section 7(a)(1) and (2) is information Consultant knew before the Company disclosed the information to Consultant, information which is public knowledge (other than as a result of disclosure by Consultant), and information which has been disclosed to Consultant by a third party without restriction as a matter of right.

(4)           Consultant agrees that, before making any disclosure or use of Confidential Information not previously approved in writing by the Board of Directors of the Company in reliance upon any of the exclusions set forth in Subsection 7(3), Consultant will give the Company at least ten (l0) business days prior written notice, specifying the applicable exclusion and the circumstances giving rise to it. Consultant will have the burden of proving by clear and convincing evidence that the given exclusion applies to the information under the circumstances.

b.           Assignment of Inventions.

(l)           Consultant will promptly disclose in writing to the Board of Directors of the Company all inventions, patentable subject matter and conceptions, including, without limitation,. improvements, designs, formulas, works of authorship, trade secrets, technology, mask works, circuits, layouts, algorithms, computer programs, ideas, processes, techniques, know-how and data, whether or not patentable (collectively "Inventions") made or conceived or reduced to practice or developed by Consultant, either alone or jointly with others, during the term of this Agreement in connection with the Services or which relate to any Confidential Information.

(2)           All Confidential Information and all title, patents, patent rights, copyrights, mask work rights, trade secret rights, and other intellectual property and rights anywhere in the world (collectively "Rights") in connection therewith shall be the sole property of the Company. Consultant hereby assigns to the Company any Rights Consultant may have or acquire in such Confidential Information.

  

  

  

(3)           Consultant agrees that all Inventions which Consultant makes, conceives, reduces to practice or develops (in whole or in part, either alone or jointly with others) during the term of this Agreement in connection with the Services or which relate to any Confidential Information shall be the sole property of the Company and works for hire in favor of the Company. Consultant agrees to assign and hereby assigns to the Company all Rights to any such Inventions.

(4)           Consultant agrees to perform all acts deemed necessary or desirable by the Company to permit and assist it, at Consultant's reasonable rate, in evidencing, perfecting, obtaining, maintaining, defending and enforcing Rights and/or Consultant's assignment with respect to such Inventions in any and all countries. Such acts may include, but are not limited to, execution of documents and assistance or cooperation in legal proceedings. Consultant hereby irrevocably designates and appoints the Company and its duly authorized officers and agents, as Consultant's agents and attorneys-in-fact to act for and on behalf and instead of Consultant, to execute and file any documents and to do all other lawfully permitted acts to further the above purposes with the same legal force and effect as if executed by Consultant.

(5)           If any Rights or Inventions assigned hereunder are based on, or incorporate, or are improvements or derivatives of, or cannot be reasonably made, used, reproduced and distributed without using or violating technology or Rights owned or licensed by Consultant and not assigned hereunder, Consultant hereby grants the Company a perpetual, worldwide royalty-free, non-exclusive sublicensable right and license to exploit and exercise all such technology and Rights in support of the Company's exercise or exploitation of any assigned Rights or Inventions (including any modifications, improvements and derivatives thereof).

c.           Retention of Company Data and Records. All data and records coming into Consultant's possession or kept by Consultant in connection with Consultant's engagement and any period of consultancy, including, without limitation, notebooks, drawings, and blueprints; computer programs, software, and documentation; bulletins, parts lists, reports, and customer lists; production, cost, purchasing, and marketing information; and employment data, including policies and salary information, are and shall remain the exclusive property of the Company. Consultant will return to the Company all originals and copies of such data and records promptly upon termination of Consultant's engagement, unless Consultant obtains specific written consent from the Board of Directors of the Company to retain any such data or records.

8.           Non-Solicitation. During Consultant's engagement with the Company and for one year after the termination of the engagement with the Company for any reason, in order to enable the Company to maintain a stable work force and to operate its business, Consultant shall not either directly or indirectly solicit, induce, recruit or encourage any of the Company's employees or contractors to leave their employment or engagement with the Company, either for Consultant or for any other person or entity.

9.           General.

a.           Independent Contractor. The Company and Consultant are and will remain independent contractors as to each other, and no joint venture, partnership, agency or other relationship which would impose liability upon one party for the act or failure to act on the other will be created or implied hereby or herefrom. Consultant will not be covered under the Company employee benefit plans. Except as expressly set forth herein, each party will bear full and sole responsibility for its own expenses, liabilities, costs of operation and the like. Neither party will have any power to bind the other party or to assume or to create any obligation or responsibility, express or implied, on behalf or in the name of the other party.

 

  

  

  

 

b.           Severability; Waiver. If the application of any provision or provisions of this Agreement to any particular facts or circumstances is held to be invalid or unenforceable by any court of competent jurisdiction, then the validity and enforceability of such provision or provisions as applied to any other particular facts or circumstances and the validity of other provisions of this Agreement will not in any way be affected or impaired thereby. The waiver of anyone default will not waive any other default.

c.           Arbitration. Any controversy or claim arising out of or related to this Agreement or the breach thereof, except when injunctive relief or specific performance is sought, will be settled by arbitration at the office of the American Arbitration Association (" AAA") in the County of Santa Clara, California, in accordance with the rules of the AAA. In the event a dispute is submitted to arbitration. the arbitrator may award costs and reasonable attorneys' fees to the prevailing party. The award of the arbitrator will be of the same force and effect as a final enforceable judgment of a court of competent jurisdiction.

d.           Notices. Any notice to be given pursuant to this Agreement will be in writing and will be deemed to have been given at the time of delivery in person to a party, if an individual, or to an officer of a party upon the earlier of (i) actual receipt by the addressee and (ii) three (3) days after deposit in the U.S. mail when sent postage prepaid and addressed to the address of the intended recipient thereof set forth below or such other address as any party hereto will have designated in writing and given notice thereof to the other party pursuant to this subsec­tion. The current addresses for the parties for purposes of notice are:

Company:

CNS Protein Therapeutics, Inc. The Parkinson's Institute

675 Almanor Avenue Sunnyvale, CA 94085

Attn: CEO

Consultant:

MDCleary LLC

6200 Stoneridge Mall Road, Suite 300 Pleasanton, CA 94588

Attn: Martin D. Cleary

e.           Miscellaneous.

(1)          California law governs this Agreement without reference to choice of laws provisions as applied to instruments, persons and transactions which have legal contacts and relationships solely within the State of California. This Agreement constitutes the full and complete understanding of the parties, superseding all previous agreements on the subject matter

  

  

  

 

For the purpose of binding the parties to the above Executive Services Agreement, the parties or their duly authorized representatives have signed their names on the dates indicated. The parties hereto acknowledge and agree that notwithstanding the date of execution or acceptance by the Company, this Agreement is effective as of the Effective Date.

 

	
CNS PROTEIN THERAPEUTICS, INC.

	  	
MDCLEARY, LLC

	  	  	  
	
By: /s/ Gerald Commissiong

	  	
By: /s/Martin D. Cleary

	
Name: Gerald Commissiong

	  	
Name: Martin D. Cleary

	
Title: CEO

	  	
Title: Managing Member

 

  

  

  

 

SCHEDULE A

SCOPE OF SERVICES AND COMPENSATION

Consultant's Scope of Services:

Consultant will appoint Martin D. Cleary to perform the Services for the Company consistent with obligations typically attributable to a Chairman and Chief Executive Officer, including, but not limited to, fund raising, strategic planning, solicitation of corporate and strategic partnering arrangements, corporate communications, mentoring, and managing meetings of the Company's Board of Directors.

Compensation:

Consultant shall receive $2,000 per day for Services rendered and as duly invoiced to the Company on a monthly basis. The Company shall engage Consultant to perform the Services, and the Consultant agrees to perform the Services, for not less than two-days per week. Upon the mutual consent of Consultant and the Company, Martin D. Cleary will render Services in excess of two-days per week. Additionally, the Company will grant to Martin D. Cleary a fully-vested annual stock option award in an amount that is that commensurate with the Services and determined in good faith by the Board of Directors.

Change of Control Bonus:

In the event of a Change of Control of the Company during the term of the Agreement, or in the event a Change of Control is consummated with a Cleary Party following the termination of the Agreement, then within 30-days of the consummation of such Change of Control, the Company shall pay Consultant a lump sum equal to five percent (5%) of the gross proceeds to the Company resulting from the Change of Control (the "Change of Control Bonus"). Upon Consultant's election and in its sole discretion, and in lieu of the Change of Control Bonus, the Company shall issue to Consultant that number of shares of the Company's Common Stock equal to two and a half percent (2.5%) of the Company's fully diluted capitalization as measured on the date of termination of the Agreement. For purposes of this provision, "Change of Control" shall mean (A) a merger or consolidation of the Company with or into another entity after which the stockholders of the Company own less than a majority of the outstanding equity of the surviving entity (other than a merger effected solely to change the Company's domicile), (B) the sale by stockholders to a third party in a single transaction or series of related transactions of more than a majority of the outstanding voting stock of the Company, or (C) the sale of all or substantially all of the assets of the Company. A "Cleary Party" shall mean any person or entity contacted on behalf of the Company by Martin D. Cleary during the term of the Agreement, as evidenced by reciprocal written correspondence or email records.

During the term of this Agreement, Martin D. Cleary shall perform the Services and assume the title of Executive Chairman of the Board of Directors and Chief Executive Officer of the Company.

  

  

  

Board Composition:

The Company agrees to take all necessary action, including the solicitation of Board and stockholder consent, to appoint Martin D. Cleary to the Company's Board of Directors promptly following the Effective Date of the Agreement. The Company and Mr. Cleary will enter into the Company's standard form of indemnification agreement it maintains with its officers and directors and the Company will promptly acquire directors and officers liability insurance. Further, the Company agrees to appoint Gene Mancino to the Company's Board of Directors subject to the approval of such appointment by a majority vote of the Board of Directors, such approval not to be unreasonably withheld. Subject to his appointment to the Board, the Company shall pay Mr. Mancino a fee of $5,000 per Board meeting plus an annual stock option award in an amount that is reasonable and customary for the directors of businesses substantially similar to the Company.

  

  

  

 

AMARANTUS THERAPEUTICS, INC.

FIRST AMENDMENT TO CONSULTING AGREEMENT

 

This First Amendment to Consulting Agreement (this "Amendment") is made by and between Amarantus Therapeutics, Inc., a Delaware corporation ("Company"), and MDCleary, LLC ("Consultant"), effective as of February 8, 2011 (the "Effective Date"). Capitalized terms not otherwise defined herein shall have the meanings assigned such terms in that certain Consulting Agreement dated as of August 10, 2009 by and between Company and Consultant (the "Consulting Agreement").

 

Recitals

 

	
A.  

	
In consideration of the continuation of the consulting relationship between the parties, the parties desire to amend the Consulting Agreement to make certain changes as set forth herein.

 

Agreement

 

In consideration of the premises and the mutual agreements, covenants and understandings hereinafter set forth and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Agreement is hereby amended as follows:

 

1. Amendment of Schedule A to Consulting Agreement. The paragraph set forth on Schedule A under the caption "Compensation" is hereby deleted and replaced in its entirety with the following:

 

"Compensation:  Consultant shall receive $16,666.66 per month for Services rendered and as duly invoiced to the Company on a monthly basis. The Company shall engage Consultant to perform the Services, and the Consultant agrees to perform the Services, for not less than two-days per week. Upon the mutual consent of Consultant and the Company, Martin D. Cleary will render Services in excess of two-days per week. Additionally, the Company will grant to Martin D. Cleary a fully-vested annual stock option award in an amount that is that commensurate with the Services and determined in good faith by the Board of Directors."

 

Except as amended herein, the Consulting Agreement shall remain in will force and effect. This Amendment and the Consulting Agreement constitutes the full and complete understanding of the parties. This Amendment may be executed in any number of counterparts, each of which will be an original, but all of which together will constitute one instrument.

  

  

  

In witness whereof, the parties have executed this Amendment as of the date first above written.

 

	
AMARANTUS THERAPEUTICS, INC.

	  	
MDCLEARY, LLC

	  	  	  
	
By: /s/ Gerald Commissiong

	  	
By: /s/Martin D. Cleary

	
Gerald Commissiong,

Chief Business Officer

	  	
Martin D. Cleary, 

Managing Member

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