Document:

exv10w11b

 

Exhibit 10.11B

Amendment to

CONSULTING AGREEMENT

By and Between
Avalon Pharmaceuticals, Inc. and William A. Scott, Ph.D.

          The
parties hereby agree this     24th    day of     November    , 2004 to amend
the Consulting Agreement By and Between Avalon Pharmaceuticals, Inc. (“Company” or “the
Company”) and William A. Scott, Ph.D. (“Consultant” or “the Consultant”) as set forth herein.

          For purposes of this amendment, the “Consulting Agreement” shall refer to the Consulting
Agreement between the parties dated August 4, 2004 (including, without limitation, all Exhibits to
that Consulting Agreement).

          The “Amendment” shall refer to this “Amendment to Consulting Agreement By and Between
Avalon Pharmaceuticals, Inc. and William A. Scott, Ph.D.”

1)       Services as a Member of Company Scientific Advisory Board.

          In addition to the consulting services set forth in Section 2.1 and Exhibit A of the
Consulting Agreement, Consultant agrees to serve as a member of Company’s Scientific Advisory Board
throughout the effective period of this Amendment (including, without limitation, any renewals).
Consultant further agrees to allow the Company to use Consultant’s name in scientific, marketing
and financing activities.

2)       Compensation.

          In addition to the compensation set forth in Section 3 of the Consulting Agreement, the
Company hereby agrees to provide to Consultant the compensation set forth below in this Section 2
in consideration for Consultant’s services as a member of Company’s Scientific Advisory Board.
Consultant agrees that the compensation provided for in this Section 2 constitutes Consultant’s
full and exclusive consideration and compensation for all services to be performed by Consultant in
his capacity as a member of Company’s Scientific Advisory Board.

          Company will pay Consultant the following for his services on Company’s Scientific Advisory
Board:

	   	(a)  a $2,500 fee for each meeting of the Scientific Advisory Board which the Consultant
attends in person, at Company’s offices or at such other location as Company may
reasonably designate; and
	 
	   	(b)  4,000 non-qualified stock options annually, for each year in which Consultant serves as a
member of Company’s Scientific Advisory Board, at the market price as determined by the
Board of Directors as of the time the President and CEO decides that the Consultant has met
the requirements of Section 1 above.

 

Amendment to Consulting
Agreement

Avalon and William A. Scott, Ph.D.

          For the 2004 calendar year, the amount of non-qualified stock options to be granted to
Consultant will be calculated on a pro rata basis for each day of the year on which this Amendment
is in effect (i.e., the number of days in 2004 which this Amendment
is in effect ÷ 365 days x
4,000). Any fractions will be rounded off to the nearest whole number.

          In any future year in which this Amendment is in effect, should the Amendment be terminated
(by either party or both) prior to the end of the calendar year, then the number of nonqualified
stock options due Consultant will similarly be determined on a pro rata basis as set forth above,
i.e., the number of days in the year on which this Amendment was in
effect ÷ 365 days x 4,000.

3)       Termination of Scientific Advisory Board Membership.

          This
Amendment shall continue in effect through December 31, 2004. It shall automatically renew
each January 1 thereafter for a one-year period, unless terminated pursuant to the provisions of
this Section 3.

          Either party shall have the right to terminate this Amendment upon 7 days prior written
notice. In the event of such termination, Consultant shall be entitled only to the compensation
owing to him under Section 2 of this Amendment at the time termination occurred. Any compensation
for a partial year served will be determined on a pro rata basis using the formula described in
Section 2 above. Any termination of this Amendment shall also constitute termination of
Consultant’s service as a member of Company’s Scientific Advisory Board.

          Termination of this Amendment will not affect the parties’ rights and obligations under the
Consulting Agreement (In other words, the Consulting Agreement will continue in effect even if the
Consultant’s service as a member of the Scientific Advisory Board is terminated, until and unless
the Consulting Agreement is separately terminated in accordance with the provisions of Section 5 of
the Consulting Agreement).

          The
provisions of Sections 3, 4, 5, 6 and 7 of this Amendment shall survive its
termination.

4)       Incorporation of Consulting Agreement.

          All provisions of the Consulting Agreement (including, without limitation, the Exhibits to the
Consulting Agreement) shall continue in full force and effect and shall apply with full force and
effect to this Amendment except where expressly superseded herein. The Consulting Agreement is
hereby incorporated by reference into this Amendment as if fully set forth herein.

5)       Headings.

          This Amendment contains headings only for convenience, which headings do not form part, and
shall not be used in construction, of this Amendment.

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Amendment to Consulting Agreement

Avalon and William A. Scott, Ph.D.

6)       Effective Date of Amendment.

          This Amendment shall become effective immediately upon its signing by both parties.

Agreed:

	 	 	 	 	 	 
	 	           COMPANY

	 	CONSULTANT
	 
	 
	By:

	 	/s/ Kenneth C. Carter, Ph.D.
	 	/s/ William A. Scott, Ph.D.
	

	 	 
	 	 
	

	 	Kenneth C. Carter, Ph.D.

President & CEO
	 	William A. Scott, Ph.D.

   

   

   

   

   

   

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Exhibit 10.12A

CONSULTING AGREEMENT

By and Between

Avalon Pharmaceuticals, Inc. and Michael Kurman Consulting

     THIS
CONSULTING AGREEMENT (the “Agreement”), is made as of
this   3rd   day of
  August   2004, by Avalon Pharmaceuticals, Inc., a Delaware corporation, with its
principal place of business at 20358 Seneca Meadows Parkway, Germantown, MD 20876 (“Company”
or “the Company”) and Michael Kurman Consulting, located at 469 West Saddle River Road, Upper
Saddle River, NJ 07458 (“Consultant” or “the Consultant”).

     1.   Definitions. As used in this Agreement, the following terms shall
have the following meanings:

          1.1.    “Consultancy” means the current or anticipated or subsequent retention of
Consultant by the Company as a full-time Consultant, a part-time Consultant, or
otherwise, or any other period during which Consultant receives compensation from the Company in any
capacity.

          1.2.    “Intellectual Property” means any Invention, writing, trade name,
trademark, service mark or any other material registered or otherwise protected or
protectible under state, federal or foreign patent, trademark, copyright or similar laws.

          1.3.    “Inventions” include ideas, discoveries, inventions, developments and
improvements, whether or not reduced to practice and whether or not patentable or
otherwise within the definition of Intellectual Property.

          1.4.    “Proprietary Information” includes any scientific, technical, trade or
business secrets of the Company and any scientific, technical, trade or business
materials that the Company treats, or is obligated to treat, as confidential or proprietary, including, but
not limited to, Inventions belonging to the Company and confidential information obtained by or given
to the Company about or belonging to its suppliers, licensors, licensees, partners, affiliates,
customers, potential customers or others.

     2.   Consulting Services.

          2.1 The Company hereby retains the Consultant, and the Consultant hereby agrees, to
provide to the Company consulting and technical support services as more specifically
described in Exhibit A (“Nature of Services”) or as the parties shall mutually agree. In
rendering consulting services hereunder, the Consultant shall act solely as an independent
contractor, and this Agreement shall not be construed to create any employee-employer
relationship, partnership or agent-principal relationship between the Consultant and the
Company.

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          2.2.    In the event that a conflict arises between Consultant’s obligations to third parties
and Consultant’s obligations pursuant to this Agreement, Consultant shall notify the Company of
such conflict as soon as possible.

     3.   Compensation. In consideration for the Consultant’s services, the Company
hereby agrees to pay the Consultant the consideration set forth below in this section 3, plus
reasonable and approved expenses, for consulting on the Company’s behalf. Consultant agrees
that the compensation provided for in this section constitutes Consultant’s full and exclusive
consideration and compensation for all services to be performed by Consultant pursuant to this
Agreement.

     The Company will pay Consultant:

     (i) $150 per hour; and

     (ii) 5,000 non-qualified stock options.

     Attached as Exhibit B is a schedule setting forth the time periods in which the
Consultant’s rights to acquire non-qualified stock options will accrue.

     4.   Freedom to Contract. The Consultant represents and warrants that, to the best of
Consultant’s knowledge, execution and performance of this Agreement does not and will not
violate, conflict with, or constitute a default under any contract, commitment, agreement,
understanding, arrangement or restriction, or any adjudication, order, injunction or finding
of any kind by any court or agency to which Consultant may be a party or by which Consultant may be
bound.

     5.   Termination.

          5.1    This Agreement shall have a term of twelve (12) months from the date hereof, but
either party may terminate it for any reason on seven (7) days’ written notice. In the event of
termination, Consultant shall be entitled only to the compensation owing to Consultant at the time
termination occurred.

          5.2.    Notwithstanding any other provision of this Agreement, the following provisions of
this Agreement shall survive termination or expiration of this Agreement indefinitely: sections 1,
3, 5, 6, 7, 8,11,12,13, 14,15 and 16, and any other provisions of this Agreement which by their
nature are intended to survive. The provisions of this paragraph shall apply regardless of which
party terminated the Agreement or the reason(s) for termination or expiration.

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     6.   Confidentiality.

          6.1.    Consultant shall at all times, both during and after any termination of
Consultant’s Consultancy by either the Company or Consultant, maintain in confidence and not
utilize the Proprietary Information or the Intellectual Property of the Company, and/or
technology or proprietary information of others under confidential evaluation by the Company except in
performing services for the Company pursuant to his Consultancy. Maintaining such Proprietary
Information and Intellectual Property in confidence shall include refraining from disclosing such
Proprietary Information or Intellectual Property to any third party (except when duly and
specifically authorized in writing to do so for purpose of furthering the business of the
Company), and refraining from using such Proprietary Information or Intellectual Property for
the account of Consultant or for any other person or business entity. Consultant will not file
patents based on the Company’s technology, Proprietary Information or Intellectual Property, nor
seek to make improvements thereon, without the Company’s written approval. Consultant agrees
not to make any copies of the Proprietary Information or Intellectual Property of the Company
(except when appropriate for the furtherance of the business of the Company or duly and
specifically authorized to do so) and promptly upon request, whether during or after the
period of Consultancy to the Company, to return to the Company any and all documentary, machine-
readable or other elements of evidence of such Proprietary Information, Intellectual Property,
and any copies of either that may be in Consultant’s possession or under Consultant’s control.

          6.2.    Consultant further agrees that if at any time Consultant is uncertain
whether information is considered as confidential or Proprietary Information, or Consultant is
uncertain whether any material or property is considered an Invention, Consultant will presume it
to be confidential and Proprietary Information or an Invention belonging to the Company, as the
case may be, and Consultant will treat it as confidential and Proprietary Information or an
Invention belonging to the Company. If Consultant desires, Consultant may submit a written
request for clarification to the President of the Company, and, until receiving a written response
shall act in the same manner as prior to its submission.

          6.3    Confidential Information shall not include any information of the Company that: (a)
is already known to Consultant at the time of its disclosure; (b) is or becomes publicly known
through no wrongful act of Consultant; (c) information which Consultant can demonstrate was
received on a non-confidential basis from a third party having a legal right to disclose it; (d) is
independently developed by Consultant; (e) is communicated to a third party by Consultant with the
express written consent of the Company, or (f) is lawfully required to be disclosed to any
governmental agency or is otherwise required to be disclosed by law, provided that before making
such disclosure the Consultant shall give the Company an adequate opportunity to interpose an
objection or take action to assure confidential handling of such information.

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     7.   Ownership of Inventions. Proprietary Information and Intellectual Property.

          7.1.    Consultant acknowledges that the Company has developed and will
develop its Proprietary Information and Intellectual Property over a substantial period of time and
at a substantial expense, and its Proprietary Information and Intellectual Property are integral to
the goodwill of the Company. During the course of Consultancy to the Company, Consultant
may develop or become aware of Company Proprietary Information and/or Intellectual Property.
Protection of the Company’s Proprietary Information and Intellectual Property is necessary to the
conduct of the Company’s business, and the Company is and shall at all times remain the sole
owner of the Company’s Proprietary Information and Intellectual Property,

          7.2.    In connection with Consultant’s Consultancy to the Company, or by use of
the resources of the Company, whether or not Consultant is then retained by the Company,
Consultant may produce, develop, create, invent, conceive or reduce to practice Inventions and
Intellectual Property related to the business of the Company. Consultant shall maintain and
furnish to the Company complete and current records of all such Inventions and Intellectual
Property. Consultant agrees that all such Inventions and Intellectual Property are and shall be the
exclusive property of the Company, and that the Company may use or pursue them without
restriction or additional compensation. Consultant: (i) hereby irrevocably assigns, sets over and
transfers to the Company Consultant’s full and exclusive right, title and interest in and to such
Inventions and Intellectual Property; (ii) agrees that Consultant and Consultant’s agents shall,
during and after the period Consultant is retained by the Company, cooperate fully in obtaining
patent, trademark, service mark, copyright or other proprietary protection for such Inventions and
Intellectual Property, all in the name of the Company (but only at Company expense), and,
without limitation, shall execute all requested applications, assignments and other documents in
furtherance of obtaining such protection or registration and confirming full ownership by the
Company of such Inventions and Intellectual Property; and (iii) shall, upon leaving the Company,
provide to the Company in writing a full, signed statement of all Inventions and Intellectual
Property in which Consultant participated prior to termination of Consultant’s Consultancy to the
Company. Consultant hereby designates the Company as Consultant’s agent, and grants to the
Company a power of attorney with full power of substitution, which power of attorney shall be
deemed coupled with an interest, for the purposes of effecting the foregoing assignments from
the Consultant to the Company.

     8.   Technical Records. Upon termination or expiration of Consultancy, or at any
other time at the Company’s request, Consultant agrees to deliver promptly to the Company all
drawings, blueprints, manuals, letters, notes, notebooks, reports, sketches, formulae, computer
programs and similar materials, and all copies thereof and such other confidential information
relating in any way to the Company’s business and in any way obtained by Consultant during the
period of Consultancy with the Company which are in Consultant’s possession or under
Consultant’s control except Consultant may keep one copy of all documents for Consultant’s

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files (which copy shall be
subject to the confidentiality and non-use requirements set out in this
Agreement). Consultant further agrees that Consultant will not make or retain any copies of or make
further use of any of the foregoing, either directly or indirectly. Consultant will so represent to
the Company in writing upon termination or expiration of his Consultancy.

     9.   Non-Solicitation, Consultant shall not during the term of Consultancy or at any
time during the two (2) years following termination of Consultancy solicit any person who is
employed by or a consultant to the Company or any affiliate or subsidiary of the Company either
during Consultant’s period of Consultancy or during such two (2) year period, to terminate such
person’s employment by or consultancy to the Company, such affiliate or subsidiary. As used
herein the term “solicit” shall mean requesting, encouraging, assisting or causing, directly or
indirectly, any such employee or consultant to terminate such person’s employment by or
consultancy to the Company, affiliate or subsidiary.

     10.   Remedies. In the event of any breach by Consultant of any of the provisions of
this Agreement, the Company shall be entitled, in addition to monetary damages and to any other
remedies available to the Company under this Agreement and at law, to equitable relief,
including injunctive relief, and to payment by Consultant of all costs incurred by the Company in
enforcement against Consultant of the provisions of this Agreement, including reasonable
attorneys’ fees.

     11.   Dispute Resolution. In the event of any dispute, claim, question or disagreement
arising from or relating to this Agreement or the breach thereof, the parties shall use their best
efforts to settle the dispute, claim, question or disagreement To this effect, they shall consult and
negotiate with each other in good faith and, recognizing their mutual interests, attempt to reach a
just and equitable solution satisfactory to both parties. If they do not reach such solution within a
period of 60 days, then, upon notice by either party to the other, all disputes, claims, questions or
differences shall be finally settled by binding arbitration administered by the American
Arbitration Association in Germantown, Maryland in accordance with the provisions of its
Commercial Arbitration Rules. The parties further agree that a judgment of any court having
jurisdiction may be entered upon the award rendered by the arbitrator(s).

     12.   Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Maryland without giving effect to its conflict of laws
principles.

     13.   Taxes. Consultant shall pay, when and as due, any and all taxes incurred as a
result of Consultant’s compensation hereunder, including estimated taxes, and if required by the
Company, agrees to provide the Company with proof of said payment.

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     14.   Notices. Arty notice required or permitted to be given under this Agreement shall
be deemed delivered when given by registered or certified mail addressed to the party to whom
such notice is given at the address of such party hereinafter set forth or at such address as such
party may provide to the other in writing from time to time.

	 	 	 	 	 	 	 	 	 
	

	 	 	If to the Company, to:
	 	If to Consultant, to:
	

	 	 	 	President & CEO

Avalon Pharmaceuticals, Inc.

20358 Seneca Meadows Parkway

Germantown, MD 20876
	 	 	 	Michael Kurman Consulting

469 West Saddle River Road

Upper Saddle River, NJ 07458

     15.   General Provisions.

          15.1.    No General Waiver. None of the provisions of this Agreement shall be
considered waived by any party unless such waiver is given in writing to the other party. The
failure of a party to insist upon strict performance of any of the terms and conditions hereof, or
failure or delay to exercise any rights provided herein or by law, shall not be deemed a waiver of
any rights by said party.

          15.2.    Severability. If any provision of this Agreement shall be found to be
invalid, inoperative or unenforceable in law or equity, such finding shall not affect the validity of
any other provisions of this Agreement, which shall be construed, reformed and enforced to
effect the purposes of this Agreement to the fullest extent permitted by law.

          15.3.    Assignment. The rights and obligations of the Company under this
Agreement shall inure to the benefit of and shall be binding upon, the successors and assigns of
the Company. Consultant shall not be entitled to assign any of Consultant’s rights or
obligations under this Agreement.

          15.4.    No Third Party Beneficiary. Any rights created by this Agreement are
intended to inure only to the benefit of the parties to this Agreement. This Agreement is not
intended to create any rights in any third party.

          15.5.    Amendment Neither this Agreement nor any term, covenant, condition or
other provision hereof may be changed, waived, discharged or terminated except by an
instrument in writing signed by the party against which enforcement of the change, waiver,
discharge or termination is sought.

          15.6.    Counterparts. This Agreement may be executed in any number of
counterparts, each of which, when executed by both parties to the Agreement shall be deemed to

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Consulting Agreement

Avalon and Michael Kurman Consulting

be an original, and all of which counterparts together shall constitute one and the same
instrument.

          15.7    Force Majeure. Neither party shall be liable for any unforseeable event
beyond its reasonable control not caused by the fault nor negligence of such party which causes the
party to be unable to perform its obligations under this Agreement, and which such party has been
unable to overcome by the exercise of due diligence. Such unforeseeable events include, but are not
limited to, flood, drought, earthquake, storm, fire, pestilence, lightning and other natural
catastrophes, epidemic, war, riot, civil disturbance or disobedience, strikes, labor disputes,
failure or sabotage of either party’s facilities or any order or injunction made by a court or
public agency.

          15.8.    Headings. This Agreement contains headings and sub-headings only for
convenience, which headings do not form part, and shall not be used in construction, of this
Agreement.

          15.9.    Entire Agreement. This Agreement shall constitute the entire agreement
of the parties with respect to the subject matter hereof, superseding all prior oral and written
communications, proposals, negotiations, representations, understandings, courses of dealing,
agreements, contracts, and the like between the parties in such respect.

     Agreed and executed under seal as of the date first above written.

	 	 	 	 	 	 
	 	      COMPANY

	 	CONSULTANT
	 
	 
	By:

	 	/s/ Kenneth C. Carter, Ph.D.
	 	/s/ Michael R. Kurman, M.D.
	

	 	 
	 	 
	

	 	Kenneth C. Carter, Ph.D.

President & CEO
	 	Michael R. Kurman, M.D.

   

   

   

   

   

   

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