Document:

exv10w17

 

EXHIBIT 10.17

Orexigen Therapeutics, Inc.

28202 Cabot Road, Suite 200

Laguna Niguel, CA 92677

February 1, 2005

Eckard Weber, MD

4040 Miller Street

San Diego, CA

Dear Eckard:

     The purpose of this letter agreement (the “Agreement”) is to set forth the principal terms
that we have reached regarding your rendering of consulting and advisory services to Orexigen
Therapeutics, Inc. a Delaware corporation (“Orexigen”). That agreement is as follows:

1. Services.

     At times agreeable to you and as requested by Orexigen, you will make available your services
and consult with and advise Orexigen with respect to matters that are traditionally within the
purview of a Chief Executive Officer of a company and such other matters as may be agreed upon by
Orexigen and you. It is expected that you will perform these services on a part time basis.

2. Compensation.

     a. As compensation for your services rendered pursuant to the terms of this Agreement,
Orexigen shall pay you the sum of Fifteen Thousand Five Hundred Thirteen Dollars ($15,513.00) per
month.

     b. In addition, you shall be reimbursed for air travel (economy class for domestic travel;
business class for international travel) necessary and as requested by Orexigen and all reasonable
living expenses, including, but not limited to, car rental meals and lodging incurred by you when
rendering services for Orexigen at locations away from your home or business. Orexigen shall make
all cash payments in accordance with this Section 2 within thirty (30) days of receipt of an
invoice from you for travel expenses including receipts for incidental expenses. Your invoices
should be

 

 

Eckard Weber, MD

February 1, 2005

Page 2

mailed to Oreixgen, Inc., 28202 Cabot Road, Suite 200, Laguna Niguel, CA 92677 Attention:
Chief Financial Officer.

     c. All cash compensation payments shall be included in your gross income as compensation for
services rendered and accordingly reported to the United States Internal Revenue Service on IRS
Form 1099. You shall be responsible for payment of all taxes, including Social Security taxes, on
income earned under this Agreement.

3. Independent Contractor.

     a. It is agreed that you are to have complete freedom of action as to the details, methods,
and means of performing requested services. It is further understood that you are retained and
have contracted with Orexigen only for the purposes and to the extent set forth in this Agreement,
and your relationship to Orexigen and any of its subsidiary companies shall be that of an
independent contractor. You shall be free to dispose of such portion of your entire time, energy,
and skill that you would not otherwise be obligated to devote to Orexigen and its subsidiaries, in
such manner as you see fit and to such persons, firms, or corporations as you deem advisable so
long as the same does not create a conflict of interest between Orexigen and such other persons,
firms, or corporations.

     b. You shall not be considered under the provisions of this Agreement or otherwise as having
the status as an employee of Orexigen, nor shall you be entitled hereafter to participate in any
plans, arrangements, or distributions by Orexigen relating to any pension, deferred compensation,
bonds, stock bonus, stock option, hospitalization, insurance, or other benefits extended to its
employees since you are performing services as an individual contractor.

4. Contract Period.

     This Agreement becomes effective on the date hereof and will continue in effect for a period
of one (1) year, provided however, in the event neither party gives notice of its election to
terminate this Agreement at least ninety (90) days prior to the end of such year (or any subsequent
one (1) year term), this Agreement shall be extended automatically for an additional one (1) year.
It is provided, however, that either you or Orexigen may terminate this Agreement at any time
during its term by giving written notice at least one (1) month in advance.

5. Inventions and Creative Works.

     If you, as a result of your service to Orexigen pursuant to this Agreement, conceive, make, or
develop (or are deemed to have conceived, made or developed) any

 

 

Eckard Weber, MD

February 1, 2005

Page 3

inventions or creative works,
including, without limitation, plans, drawings, prints, or specifications relating in any way to
Orexigen’s business or that of its subsidiaries or affiliates, you will: (a) give written notice
thereof to Orexigen; (b) assign in writing to Orexigen all of your rights therein; and (c) execute
any necessary papers and otherwise reasonably cooperate with Orexigen in the securing for the sole
benefit of and ownership by Orexigen any and all patents on such inventions and/or copyrights on
such creative works. You hereby
warrant and represent to Orexigen that you are not precluded from assigning these rights by a
pre-existing contract.

6. Security.

     a. You shall keep confidential, both during and subsequent to your services herein, any and
all technical or other information of a confidential nature, including knowledge of Orexigen’s
projects and general activities and any information not publicly disclosed relating to Orexigen’s
business which you may acquire through your consulting activities or otherwise. You will not
disclose such information in any manner without Orexigen’s express written permission; title to all
property involved shall remain exclusively in Orexigen. Upon termination of services, or upon
request at any time, you shall account for and return to Orexigen all papers containing any such
confidential information. In addition, you shall not disclose or otherwise transfer to Orexigen
any confidential information which you may have acquired as a result of any previous employment or
consulting relationship.

     b. You represent, warrant and agree that (a) your performance of all the terms of this
Agreement and your retention as a consultant by Orexigen does not and will not breach any agreement
to keep in confidence confidential information acquired by you in confidence or in trust prior to
your retention as a consultant by Orexigen, and (b) you have not entered into, and will not enter
into, any agreement, either written or oral, in conflict herewith.

7. Conflict of Interest.

     You agree that, during the term of this Agreement you will not (except as otherwise herein
provided), without Orexigen’s express written consent, engage in any business or activity (whether
as a consultant, advisor or otherwise) that may be deemed competitive with the business then
engaged in by Orexigen.

8. Notice.

     All notices and other communications under this Agreement shall be in writing. Unless and
until you are notified in writing to the contrary, all notices, communications and documents
directed to Orexigen and related to the Agreement, if not delivered by hand, shall be mailed,
addressed as follows:

 

 

Eckard Weber, MD

February 1, 2005

Page 4

OREXIGEN THERAPEUTICS, INC.

28202 Cabot Road, Suite 200

Laguna Niguel, CA 92677

Attention: Chief Financial Officer

     Unless and until Orexigen is notified in writing to the contrary, all notices, communications
and documents intended for you and related to this Agreement, if not delivered by hand, shall be
mailed to your last known address as shown on
Orexigen’s books. Notices and communications shall be mailed by registered or certified mail,
return receipt requested, postage prepaid. All notices related to this Agreement shall be deemed
received upon delivery or, if mailed, within five (5) days after mailing in accordance with this
Section 8.

9. General Conditions.

     a. You agree that for a period of one (1) year following termination of this Agreement, you
will not solicit or in any manner encourage employees of Orexigen to leave its employ.

     b. If any provision of this Agreement shall be declared invalid, illegal or unenforceable, such
provision shall be severed and all remaining provisions shall continue in full force and effect.

     c. The term, ”Orexigen”, as used herein, shall include any subsidiary or affiliate of Orexigen
Therapeutics, Inc.

     d. This Agreement shall be binding upon you, your heirs, executors, assigns and administrators
and shall inure to the benefit of Orexigen, its successors and assigns.

     e. This Agreement shall be governed and construed in accordance with the laws of the State of
California.

 

 

Eckard Weber, MD

February 1, 2005

Page 5

     f. This Agreement may be executed in one or more counterparts, each of which shall be deemed
an original but all of which together shall constitute one and the same instrument.

10. Prior Agreements.

     This Agreement shall replace all prior agreements, if any, between you and Orexigen relative
to your services as a consultant, and this Agreement contains the entire understanding of the
parties. Further, it shall be amended only by an instrument in writing executed by both parties
and shall not be assignable by you or by operation of law.

     Please indicate your acceptance of the foregoing by signing in the space provided below and
returning one original letter to my attention.

	 	 	 	 	 
	 	Sincerely,

OREXIGEN THERAPEUTICS, INC.

 	 
	 	By:  	/s/ Lynne R. Rollins
 	 
	 	 	Lynne R. Rollins 	 
	 	 	Chief Financial Officer 	 
	 

ACCEPTED AND AGREED to this

1st day of February, 2005.

	 	 	 	 	 
	By:

	 	/s/ Eckard Weber
 

	 	 
	Eckard Weber, MD	 	 
	 
	 	 	 	 
	###-##-####	 	 
	Social Security Numberexv10w18

 

EXHIBIT 10.18

Orexigen Therapeutics, Inc.

28202 Cabot Road, Suite 200

Laguna Niguel, CA 92677

January 14, 2005

John F. Crowley

15 Leonard Court

Princeton, NJ 08540

Mr. Crowley:

     Orexigen Therapeutics, Inc. (the “Company”) would like to engage you as a consultant to advise
the Company with respect to its strategic plan and product development efforts. This letter sets
forth the scope and terms of the consulting arrangement being offered by the Company.

	 	 	 
	Term of Contract:

	 	One year, commencing January 14, 2005.
	 
	 	 
	Capacity:

	 	Independent Consultant. John F. Crowley (“Consultant”) and the Company intend that the relationship
between them created under this Agreement is that of an independent contractor.
	 
	 	 
	Reporting Contact:

	 	Consultant’s reporting contact at the Company will be the then current Chief Executive Officer of the
Company (the “CEO”), or such persons as the CEO may designate from time to time for specific
projects. Consultant shall direct any questions regarding the scope of work to the CEO.
	 
	 	 
	Work Location:

	 	Consultant will provide his own office.
	 
	 	 
	Services and
Scope of Work

	 	Consultant will be required to work no more than one (1) day
per month during the term of this Agreement. Consultant agrees to use his best efforts and to devote
such time and energy as are necessary to provide consulting services to the Company on such projects
as are requested by the CEO. The Company will provide no training to Consultant and is interested
only in the results obtained under this Agreement. The manner and means of performing the services
are subject to the Consultant’s sole control.

 

 

	 	 	 
	Method of Performance:

	 	Consultant shall, after identification by the Company of the scope of work requested for each project
assigned, determine the method, details, and means of performing the services. Consultant
acknowledges that this Agreement and the services to be performed do not violate any contract to
which he is a party and he agrees not to divulge to the Company or utilize any confidential or
proprietary information belonging to others.
	 
	 	 
	Consideration:

	 	Consultant will not be paid cash compensation for the services to be rendered by Consultant pursuant
to the terms of this Agreement.
	 
	 	 
	 

	 	Pursuant to that certain Stock Restriction Agreement, dated November 25, 2003, by and between the
Company and Consultant, the Company had a right to repurchase, at a price of $0.001 per share,
627,467 of shares of the Common Stock of the Company, of which 341,200 shares are owned directly by
Consultant and 286,267 shares are owned by MPAJ, LLC, Consultant’s family limited liability company,
for a period of ninety (90) days following termination of Consultant’s employment with the Company.
In consideration for the services to be rendered hereunder, the Company agreed not to exercise its
right of repurchase at this time with respect to 93,277 of such shares, which shares shall continue
to be subject to a right of repurchase for the term of this Agreement. The right of repurchase with
respect to such shares shall expire with respect to 1/12th of the number of such shares on
the 14th day of each calendar month that this Agreement remains in full force and effect.
As of the date hereof, the Company and Consultant have entered into an Amended and Restated Stock
Restriction Agreement which sets forth the terms of such right of repurchase with respect to the
93,277 shares of Common Stock.
	 
	 	 
	Taxes:

	 	Consultant understands that as an independent contractor he is responsible for all state, federal,
local and other taxes, and any other similar form of payments, as well as all employment reporting,
for the Consultant and any of the Consultant’s employees or agents.
	 
	 	 
	Confidential Information:

	 	 Consultant shall continue to be subject to the terms of that certain Patent, Copyright and
Nondisclosure Agreement, dated September 1, 2003, by and between the Company and Consultant (the
“Nondisclosure Agreement”), which shall

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	 	remain in full force and effect. In addition, Consultant agrees that
he will not disclose any Confidential Information concerning the
Company to any person or entity not authorized by the Company to have
such information. The terms of this confidentiality provision shall
be in force during the term of this Agreement and Consultant shall be
forever barred from divulging confidential and proprietary
information of the Company thereafter. As used in this Agreement,
“Confidential Information” includes, without limitation, project
plans, specifications, formulas, drawings, programs, technology,
processes, customer information, supplier information, employee
information, sub-contractor information, product information, sales
reports, financial information, price information or documents
concerning the business or prospects of the Company not otherwise
available to the general public. Upon the expiration or earlier
termination of this Agreement, Consultant shall immediately return to
the Company all documents containing Confidential Information,
including, but not limited to, any duplications, reproductions or
summaries thereof. The provisions of this paragraph are in addition
to any obligations for confidentiality existing as part of any prior
agreement or relationship between the parties, and shall survive the
termination of this Agreement. Nothing herein, however, shall prevent
Consultant from disclosing to others or using in any manner
information which Consultant can show:
	 
	 	 
	 

	 	     a. has been published and has become part of the public domain
other than by acts, omission or fault of the Consultant, his agents,
or his employees; or
	 
	 	 
	 

	 	     b. has been furnished or made known to Consultant by third
parties (other than those directly for or on behalf of the Company)
as a matter of legal right without restrictions on its disclosure.
	 
	 	 
	No Conflict of Interest:

	 	During the term of this Agreement, Consultant may perform services in any capacity to persons or
entities other than the Company so long as he complies with the terms of the Nondisclosure Agreement.
	 
	 	 
	Work Product and
Invention Assignment:

	 	Consultant agrees that any and all Work Product created
solely or jointly by Consultant arising from services performed hereunder shall be deemed “work made
for hire.” Consultant agrees to execute all such assignments, oaths, declarations, and other
documents as may be prepared by

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	 	the Company to effect the foregoing. “Work Product” shall mean all
documentation, manuals, teaching materials, creative works, know-how,
formulas, applications and information created in furtherance of or
in the course of performing services on behalf of the Company, in
whole or in part, by Consultant, whether or not copyrightable,
patentable or otherwise protectable. Consultant agrees to make
prompt and full disclosure of any such inventions to the Company and
to assist in every lawful way in obtaining for the Company patents
for any or all of such inventions, in perfecting in the Company all
right, title, and interest in and to such inventions and copyrights,
in protecting or enforcing the Company’s rights therein, and in
prosecuting and defending appeals, interferences, infringement suits,
and controversies relating thereto. Consultant agrees to do all
other things necessary to effectuate the foregoing, including but not
limited to executing and delivering assignments, oaths, and
disclaimers as needed.
	 
	 	 
	Termination:

	 	Notwithstanding any other provisions of this Agreement,
the Company may terminate this Agreement immediately
upon breach by Consultant of his obligations under the
non-disclosure provisions of this Agreement, the
non-disparagement provisions of that certain Separation
and Release Agreement, entered into by the Company and
Consultant concurrently herewith, or any provisions of
the Nondisclosure Agreement.
	 
	 	 
	Assignment:

	 	Consultant is being engaged because of his particular
knowledge and experience. Accordingly, neither this
Agreement nor any duties or obligations under this
Agreement may be assigned by Consultant without the
prior written consent of the Company.
	 
	 	 
	Modification:

	 	This agreement can be modified or amended only by a
written agreement signed by Consultant and the CEO of
the Company.
	 
	 	 
	Other Conditions:

	 	This letter contains the entire agreement between
Consultant and the Company; supersedes any and all
agreements, either oral or in writing, between the
parties hereto with respect to the rendering of services
by Consultant for the Company; and contains all of the
covenants and agreements between the parties with
respect thereto. Each party to this Agreement
acknowledges that no representations, inducements,
promises, or agreements,

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	 	orally or otherwise, have been made by any party, or anyone acting on
behalf of any party, which is not embodied herein.

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To accept on the terms set forth above, please sign and date below, and deliver the original back
to me.

Sincerely,

Orexigen Therapeutics, Inc.

	 	 	 	 	 
	By:

	 	/s/ Eckard Weber
 

	 	 
	 

	 	Eckard Weber, M.D.,	 	 
	 

	 	Chairman of the Board	 	 
	 
	 	 	 	 
	Agreed and accepted:	 	Date:
	 
	 	 	 	 
	/s/ John F. Crowley	 	2/22/05
	 	 	 
	John F. Crowley	 	 

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