Document:

ex_325119.htm

Exhibit 10.17

 

CONSULTING AGREEMENT

 

This Agreement, effective as of January 16, 2013 ("Effective Date"), is by and between Eleison Pharmaceuticals LLC, a Delaware limited liability corporation having a place of business at 103 Carnegie Center, Suite 300, Princeton, New Jersey 08540 (hereinafter "Eleison"), and Mr. Bryan Wood, hereinafter "Consultant").

 

WHEREAS, Eleison is in the business of developing, manufacturing and selling pharmaceuticals;

 

WHEREAS, Eleison seeks to have Consultant, provide consulting services as described in Exhibit A, attached hereto and incorporated herein ("Services").

 

WHEREAS, Consultant is desirous of performing Services and will have access to Eleison’s confidential and proprietary information;

 

NOW THEREFORE, in consideration of the mutual promises and other good and valuable consideration, the parties agree as follows:

 

1.           The term of this agreement shall be for a period of thirty (30) months from the Effective Date. This Agreement may be extended by mutual written agreement of the parties.

 

2.          As consideration for the furnishing of Services, pursuant to this agreement, Consultant will receive:

 

	 	
			(a)

				
			Compensation as described in Exhibit A.

			

 

	 	
			(b)

				
			Consultant will also receive reimbursement made in accordance with the policy and practice of Eleison for reasonable, authorized, out-of-pocket expenses for travel to a site as authorized by Eleison, upon presentation of appropriate expense vouchers.

			

 

	 	
			(c)

				
			Consultant will also receive reimbursement made in accordance with the policy and practice of Eleison for reasonable, authorized, out-of-pocket expenses for pass through costs as authorized by Eleison, in advance of purchase by Consultant, upon presentation of appropriate receipts.

			

 

The compensation and reimbursement described in this section will be paid thirty (30) days from the date of receipt of the invoice, and supporting documentation if required, by Eleison. The compensation and reimbursement described in this section shall be the only amounts due or payable to the Consultant for consulting services provided under this Agreement. All invoices as outlined above must be submitted within 120 days of completion of Services. Invoices received after this time, may not be reimbursed

 

All invoices and questions about payment under this Agreement shall be submitted to:

 

 

1

 

 

 

	 	
			Attn:

				
			Eleison Pharmaceuticals, Inc.

			
	 	 	103 Carnegie Center
	 	 	Suite 300
	 	 	Princeton, NJ 08540

 

Checks for payments under this Agreement shall reference this Agreement and be made payable to:

	Mr. Bryan Wood	 
	 	 
	 	 
	 	 

 

The compensation provided under this Agreement has been determined by the parties through good faith and arms-length bargaining to be the fair market value of the services rendered hereunder. No amount paid or to be paid hereunder is intended to be, nor shall it be construed as, an offer or payment made, whether directly or indirectly, overtly or covertly, to induce the referral of patients, the purchase, lease or order of any item or service, or the recommending or arranging for the purchase, lease, or order of any item or service.

 

3.         Consultant will promptly disclose, grant and assign to Eleison, for its sole use and benefit, all inventions, improvements, technical information and suggestions relating in any way to the business of Eleison which Consultant may develop or acquire during the term of this Agreement (whether or not during the usual working hours), together with all patent applications, letters patent, copyrights and reissues thereof that may at any time be granted for or upon any such invention, improvement or technical information. In connection therewith:

	 	
			(a)

				
			The Consultant shall, without charge, but at the expense of Eleison, promptly at all times hereafter execute and deliver such applications, assignments, descriptions and other instruments as may be necessary or proper in the opinion of Eleison to vest title to any such inventions, improvements, technical information, patent applications, patents, copyrights or reissues thereof in Eleison and to enable it to obtain and maintain the entire right and title thereto throughout the world: and

			

	 	
			(b)

				
			The Consultant shall render to Eleison, at its expense, all such assistance as it may require in the prosecution of applications for said patents, copyrights or reissues thereof, in the prosecution or defense of interferences which may be declared involving any said applications, patents or copyrights and in any litigation in which Eleison may be involved relating to any such patents, inventions, improvements or technical information.

			

 

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4.          The Parties acknowledge that in the course of performance of their obligations pursuant to this Agreement, they may obtain certain confidential and/or proprietary information of one another or their affiliates or customers, including the terms and conditions of this Agreement ("Confidential Information"). The Parties hereby agree that all information communicated to one another, whether before or after the Effective Date, shall be and was received in strict confidence, shall be used only for purposes of this Agreement, and shall not be disclosed by the recipient, his agents or employees without the prior written consent of the disclosing party, except as may be necessary by reason of legal, accounting, or regulatory requirements beyond the reasonable control of recipient. The above provisions of confidentiality shall not apply to that part of the information which the recipient is able to demonstrate by documentary evidence:

 

	 	
			(a)

				
			was fully in the recipient's possession prior to receipt from the disclosing party, and not previously received under confidentiality from the disclosing party or any third party in connection with the provision of any services to disclosing party; or

			

	 	
			(b)

				
			was in the public domain at the time of receipt from the disclosing party; or

			

	 	
			(c)

				
			becomes part of the public domain through no fault of the recipient, its directors, officers, employees, agents, representatives or advisors; or

			

	 	
			(d)

				
			is lawfully received by the recipient from some third party having a right of further disclosure, and not under an obligation of confidentiality to the disclosing party; or

			

	 	
			(e)

				
			is developed by the recipient independent of the information.

			

 

5.          If the Parties are required by law, administrative or judicial order to disclose Confidential Information, the disclosing party shall give the other party prompt notice of such fact so that he/she may obtain a protective order or other appropriate remedy concerning any such disclosure and/or waive compliance with the non-disclosure provisions of this Agreement. The Parties shall fully cooperate with one another in connection with their efforts to obtain any such order or other remedy. If any such order or other remedy does not fully preclude disclosure or either party waives such compliance, the disclosing party will make such disclosure only to the extent that such disclosure is legally required.

 

6.           No rights or licenses in or to Confidential Information are granted to either party by virtue of this Agreement.

 

7.         At the request of Eleison, Consultant shall return to Eleison any and all materials and physical documents, including notes of the Consultant produced by Consultant pursuant to providing the Services, whether prepared by Eleison or by Consultant, when such materials or documents are, include or incorporate Confidential Information. The term document is used in its broadest sense and includes electronic information in the form of discs, tapes, etc.

 

Consultant further agrees to promptly return to Eleison upon completion of the Services or termination of this Agreement any and all Eleison property provided to Consultant, including, but not limited to, computers, CD-ROMS, and any other data and/or materials provided for performance of the Services.

 

8.         Consultant is engaged in an independent business and will perform the Services as an independent contractor and nothing in this Agreement is to be construed as creating a joint venture, partnership or any relationship between Eleison and Consultant other than that of independent contractor. Consultant shall not act or attempt to act or represent itself, directly or by implication, as an agent of Eleison or in any manner assume or create any obligation on behalf of or in the name of Eleison.

 

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9.        Consultant shall indemnify Eleison, its directors, officers and employees for any and all damages, costs, expenses and other liabilities, including reasonable attorney's fees and court costs, arising under this Agreement or out of Consultant' performance of the Services to the extent that any such claim is caused by Consultant' negligence, recklessness, willful misconduct, failure in performing its obligations, or any breach of any warranty or representation under this Agreement, provided however, that Consultant shall have no obligation hereunder with respect to any claim, action or proceeding to the extent shown by a court of competent jurisdiction to have arisen from the negligent, intentional, or illegal misconduct of Eleison or any of its directors, officers, employees, or agents.

 

Eleison shall indemnify Consultant, its directors, officers and employees for any and all damages, costs, expenses and other liabilities, including reasonable attorney's fees and court costs, arising under this Agreement to the extent that any such claim is caused by Eleison 's negligence, recklessness, willful misconduct, failure in performing its obligations, or any breach of any warranty or representation under this Agreement, provided however, that Eleison shall have no obligation hereunder with respect to any claim, action or proceeding to the extent shown by a court of competent jurisdiction to have arisen from the negligent, intentional, or illegal misconduct of Consultant or any of its directors, officers, employees, or agents. Eleison agrees to indemnify Consultant from any medical liability related to the performance or interpretation of any medical images performed on subjects as part of this Agreement. Consultant is not responsible for the medical treatment of any of the protocol subjects

 

10.         Consultant shall be responsible for and liable for all taxes, excises, assessments, insurance and any benefits including, but not limited to health, accident and compensation benefits and shall pay all taxes and contributions, which Consultant is required to pay relating to the performance of Services.

 

11.         Consultant represents and warrants that to the best of its knowledge its is permitted to enter into this Agreement and perform the obligations contemplated thereby and that this Agreement and the terms and obligations thereof are not inconsistent with or in violation of any other obligation it may have.

 

12.        It is the desire and intent of the parties hereto that the provisions of this Agreement shall be enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought. Accordingly, to the extent that a restriction contained in the Agreement is more restrictive than permitted by the laws of any jurisdiction where this Agreement may be subject to review and interpretation the terms of such restriction, for the purpose only of the operation of such restriction i n such jurisdiction, shall be the maximum restriction allowed by the Jaws of such jurisdiction and such restriction shall be deemed to have been revised accordingly herein. Consultant further consents to personal jurisdiction in the State of Delaware for the purposes of enforcing this Agreement and further agrees that the State of Delaware is and shall be a convenient forum and the law of the State of New Jersey shall govern this Agreement without regard to choice of law principles.

 

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13.        Consultant further represents and warrants that Consultant has not been debarred pursuant to the Federal Food, Drug and Cosmetic Act ("Act") or excluded from any Federal Health Care Program, including but not limited to, Medicare or Medicaid ("Federal Health Care Program"). ln addition, Consultant agrees to notify Eleison immediately if Consultant is debarred under the Act or excluded under a Federal Health Care Program during the Term of this Agreement. Consultant understands that such debarment or exclusion may result in the immediate termination of this Agreement.

 

14.        Except as required by law, neither party shall use the name of the other party nor of any employee of the other party in connection with any publicity without the prior written approval of the other party.

 

15.        Either party shall have the right to terminate this Agreement at any time and for any or no reason upon notice to the other party.

 

16.        The obligations of Paragraphs 3-14 of this Agreement shall survive any termination or expiration of this Agreement. ln the even of termination as provided in Section 15, Eleison shall remain liable for any fees or expenses due Consultant under Section 2 up to the date of termination.

 

17.        This Agreement may not be assigned by either party, in whole or in part, without the prior written consent of the other party.

 

18.        This Agreement constitutes the entire and exclusive Agreement between Consultant and Eleison with respect to the subject matter thereof. No supplement, modification or amendment of this Agreement shall be binding upon Eleison or Consultant unless set forth in a written agreement executed by Eleison and Consultant.

 

 

IN WITNESS THEREOF, the parties have signed this Agreement as of the date indicated above.

 

 

 

	Eleison Pharmaceuticals LLC	 	Consultant:	 
	 	 	 	 	 	 
	By:	/s/ Edwin Thomas	 	By:	/s/ Bryan Wood	 
	 	 	 	 	 	 
	Name: Edwin Thomas	 	Name: Bryan Wood	 
	Title: CEO	 	 	 	 

 

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EXHBIT A

 

SERVICES

 

Consultant will perform the following Services

 

1. Assist Eleison in the identification and securing of licensing partners and investors, particularly in Europe, and any other services as mutually agreed to by the Company and Consultant

 

2. Services from Consultant shall be provided by Mr. Brian Wood.

 

3. Services provided by Consultant to Eleison shall be requested by and be under the direction of Eleison’s CEO.

 

4. The parties estimate Consultant shall provide approximately two to ten hours of services per month. Services exceeding ten hours per month require written authorization by Eleison.

 

5. In compensation for Services, Eleison shall grant Consultant an option to purchase 300 membership units, pursuant to the Unit Award Grant attached hereto as Exhibit B.

 

6ex_325545.htm

Exhibit 10.19

 

SERVICES AGREEMENT

 

THIS SERVICES AGREEMENT (this “Agreement”) is dated as of February 4, 2011 (“Effective Date”), by and between CAPITAL SOLUTIONS, INC., a Pennsylvania corporation (“CS”) and ELEISON PHARMACEUTICALS, LLC. a Delaware limited liability company (the “Company”).

 

WITNESSETH:

 

WHEREAS, CS has developed experience and knowledge in corporate acquisitions and financings, which experience and knowledge are of value to the Company; and

 

WHEREAS, CS is an affiliate of Eleison Investors LP (“EI”), a member of the Company under a certain operating agreement dated February 24, 2012 (the “Operating Agreement”); and

 

WHEREAS, the parties hereto desire to enter into this Agreement whereby CS shall provide to the Company certain corporate development and financial advisory services relating to the Company’s business under the terms hereof;

 

NOW THEREFORE, for and in consideration of the covenants and conditions hereinafter set forth, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, intending to be legally bound hereby, the parties hereto mutually agree as follows:

 

1.         Term. Subject to the provisions hereinafter set forth, the term of this Agreement shall commence as of the date of this Agreement and shall end upon the earlier of the a) fifth anniversary of the date hereof, or b) a Liquidity Event aa the term is defined in the Operating Agreement, or c) upon the event EI’s Percentage Interests become less than 10% as that term is defined in the Operating Agreement; (the “Initial Term”). If this Agreement has not already terminated as provided in clauses (b) and (c) of the preceding sentence, this Agreement shall automatically renew for successive one (1) year periods (each, a “Renewal Term”) unless either party gives (be other party written notice of its intent to not renew at least thirty (30) days prior to the completion of the Initial Term or the then current Renewal Term, as the case may be. The Initial term and all the Renewal Terms, if any, are collectively referred to as the “Term”.

 

2.         Extent of Services. During the Term, CS shall provide financial advice and services related to financings, acquisitions and other development as reasonably requested from time to time by the Company (collectively, the “Services”).

 

3.         Monthly Fees. As compensation for the Services, the Company shall pay to CS a $6,250 monthly fee (or pro rata portion thereof for any partial month during the Term) (the “Service Fee”), payable within fifteen (15) days after the end of each month upon invoicing by CS. The Service Fee shall not be paid during any period that:

 

(i)         the Company and its subsidiaries are not in compliance with their payment obligations under, or obligations under the financial covenants in, any credit facility agreement (each, a “Credit Agreement”) between the Company and any bank or other lender;

 

 

 

 

 

(ii)         the payment by the Company of its obligations has been blocked, deferred or postponed pursuant to any Credit Agreement or any subordination or intercreditor agreement relating thereto; or

 

(iii)         the payment by the Company of the Service Fee would, in the reasonable discretion of the Company’s Board of Directors (the “Board”), restrict the working capital of the Company in a manner that would result in undue harm to the business of the Company (each, a “Non-Payment Period”).

 

All Service Fees not paid during the Non-Payment Period shall be due and payable promptly upon the termination of the Non-Payment Period but only after the prior payment of any amounts blocked, deferred or postponed pursuant to any Credit Agreement.

 

4.         Reimbursement of Ongoing Expenses,. At all times during the term the Company shall reimburse CS for all reasonable travel, lodging, food and other expenses incurred by CS in connection with its performance of the Services; provided, however, that CS shall not be entitled to any reimbursement from the Company for any such expenses in excess of $500 in any calendar month without obtaining the consent of the Company’s Chief Executive Officer, CS shall periodically submit to the Company in writing an itemized statement setting forth all such travel, lodging, food and other expenses incurred by CS, together with customary evidence of such expenses. The Company shall pay the amount specified on each such statement within thirty (30) days of receipt thereof.

 

5.         Limitation of Liability, CS (including, for purposes of this Section 5 and Section 6, CS’s officers, directors, managers, partners, employees, representatives, agents and attorneys) shall not be liable, responsible or accountable in monetary damages or otherwise to the Company or any Member for any act or failure to act or for any mistakes of judgment unless such act, failure to act or mistake constitutes self-dealing, willful misconduct or recklessness.

 

6.         Indemnification.

 

(a)         Right to Indemnification. To the fullest extent permitted by law, the Company shall indemnify, defend and hold harmless CS if it was or is a party (other than a party plaintiff suing un its own behalf), or if it is threatened to he made such a party, to any threatened, pending or completed action, suit or proceedings whether civil, administrative or investigative (including an action by or in the right of the Company) arising out of, or in connection with, any actual or alleged actor omission or is or was serving at the request of the Company as an agent, manager, customer or representative (or person performing similar functions) of any other entity, including, a. domestic or foreign corporation for profit or not-for-profit, partnership, joint venture, trust or other enterprise, against expenses (including reasonable attorneys’ fees), judgments, fines, excise taxes and amounts paid in settlement actually and reasonably incurred by CS in connection with such action, suit or proceeding if CS met the standard of conduct of acting in good faith and in a manner CS reasonably believed to be in, or not opposed to, the best interests of the Company. The termination of any action or proceeding by judgment order, settlement or conviction or upon a plea of nolo contendere or its equivalent shall not of itself create a presumption that CS did not act in good faith and in a manner that CS reasonably believed to be in, or not opposed to, the best interests of the Company.

 

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(b)    Advancing Expenses. Expenses (including reasonable attorneys’ fees) as reasonably incurred by CS in defending any action, suit or proceeding referred to in Section 6(a) shall be paid by the Company in advance of the final disposition of the action, suit or proceeding upon receipt of an undertaking by or on behalf of CS to repay such amount if it shall ultimately be determined that CS is not entitled to be indemnified by the Company as authorized in Section 6(a).

 

(c)    Non-exclusivity of Indemnification. The indemnification and advancement of expenses provided by, or granted pursuant to, this Section 6 shall not be deemed exclusive of any other rights to which CS may seek indemnification or advancement of expenses or may be entitled under any other provision of this Agreement, any insurance or other agreement or otherwise.

 

(d)         Survival. The indemnification and advancement of expenses provided by, or granted pursuant to, this Section 6 shall survive the termination of this Agreement and shall inure to the benefit of CS and its successors and assigns.

 

7.         Miscellaneous.

 

(a)         Enforceability. If any provision of this Agreement shall be determined by a court of competent jurisdiction to be invalid or unenforceable, in whole or in part, then the parties agree that the court shall have, and the panics will request that the court exercise, the power to modify or restrict any such provision to the extent and in a manner necessary to render the same valid and enforceable, or, if such a modification or restriction is not possible, to excise from this Agreement the provision(s) at issue, and this Agreement shall be construed and enforced to the maximum extent permitted by law as if such provision had been originally incorporated herein as so modified or restricted, or as if such provision had not been originally incorporated herein, as the case may be.

 

(b)         Entire Agreement. This Agreement constitutes the entire understanding between the parties regarding the subject matter hereof and there are no covenants, conditions, representation or agreements, oral or written, or any nature whatsoever regarding the subject matter hereof, other than those herein contained.

 

(c)    Amendments. No amendment, alteration, or modification of this Agreement shall be binding upon the parties hereto unless said amendment, alteration, or modification is in writing and signed by all parties hereto and, if required, has the prior written consent of the Lenders.

 

(d)    Severability. In the event any provision of this Agreement shall be found to be void, the remaining provisions of this Agreement shall nevertheless be binding with the same effect as though the void part were deleted.

 

(e)    Waiver. The waiver of a breach of any term of this Agreement by any of the parties hereto shall not operate or be construed as a waiver by such party of the breach of any other term of this Agreement or as a waiver of a subsequent breach of the same term of this Agreement.

 

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(f)    Assignment. Except as set forth below, CS shall not assign, transfer, or convey this Agreement, or in any way encumber the compensation or other benefits payable to it hereunder, except with the prior written consent of the Company. The Company may assign this Agreement and its rights hereunder in whole, but not in part, to any entity to which it transfers all or substantially all of its assets (and, in such event the term “Company” as used herein shall mean and refer to such successor-in-interest).

 

(g)    Notices. All notices required or permitted to be given under this Agreement shall be in writing and shall be delivered personally, overnight delivery, or registered mail, return receipt requested, to the parties at the addresses set forth below or to such other addresses as either party may designate to the other in writing:

 

If to CS:

 

Capital Solutions, Inc.

910 Harvest Drive

Suite 105

Blue Bell, Pennsylvania 19422

 

if to the Company:

 

Eleison pharmaceuticals, LLC

103 Carnegie Center Suite 300

Princeton, NJ 08540

Attn: CEO

 

Notices delivered personally or by overnight delivery shall be effective upon delivery. Notices properly addressed and delivered by mall, return receipt requested, shall be effective three days following deposit with the United States Postal Service or delivery service.

 

(h)         Binding Effect. This Agreement shall be binding on the parties hereto end on their respective successors and permitted assigns.

 

(i)         Counterparts. This Agreement may be executed in one or more counterparts, each of which shall constitute an original, but all of which together shall constitute but a single document.

 

(j)         Governing Law Jurisdiction. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without giving effect to the conflict of law’s provisions.

 

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(k)         Dispute Resolution. The parties agree that should any dispute arise out of this Agreement, a phased dispute resolution process shall resolve the dispute. If a dispute arises, the aggrieved party shall, within five (5) working days of the event triggering the dispute, document the issue for resolution in a notification to the other party (a “Dispute Notice”) with sufficient particularity to identify the dispute, the support for the dispute and the requested resolution The parties will then promptly meet, but in no event more than five (5) business days after notification of the dispute. The parties will meet in good faith to attempt resolution. If the dispute is not resolved to the satisfaction of the parties within 45 days following delivery of the Dispute Notice, either may arrange at their expense for the prompt mediation of the matter by agreeing to a mediator with the other party or requeuing at their expense the appointment of a mediator from the American Arbitration Association. If the dispute is not resolved by mediation, then within 60 days after mediation, a party may then submit the dispute to binding arbitration before a single arbitrator appointed by the American Arbitration Association, with the proceeding being conducted in accordance with the Commercial Arbitration Rules of the American Arbitration Association as then in effect. Any award by the arbitrator shall be final and binding upon the parties and may be confirmed by any court of competent jurisdiction. Venue for the arbitration shall be Philadelphia, Pennsylvania. The arbitrator in the exercises of discretion may award a reasonable attorney fee and costs to the prevailing party.

 

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

 

 

	 	
			CAPITAL SOLUTIONS, INC.

			 

			By: /s/ Frank Seidman                           

			 

			Title:                                             

			 

			 

			ELEISON PHARMACEUTICALS, LLC

			 

			By: /s/ Edwin J. Thomas                  

			 

			Title:         President                           

			

 

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