Document:

EXHIBIT
      10.2

     

    EMPLOYMENT
      AGREEMENT

     

    This
      AGREEMENT (the “Agreement”)
      is
      made this 16th
      day
      of May 2003, by and between COUGAR BIOTECHNOLOGY, INC., a Delaware corporation
      with principal executive offices at 787 Seventh Avenue, 48th
      Floor,
      New York, NY 10019 (the “Company”),
      and
      ALAN AUERBACH, residing at 447 Herondo Street, #208, Hermosa Beach, California
      90254 (the “Executive”).

     

    W
      I T N E S S E T H:

     

    WHEREAS,
      the Company desires to employ the Executive as President and Chief Executive
      Officer of the Company, and the Executive desires to serve the Company in those
      capacities, upon the terms and subject to the conditions contained in this
      Agreement;

     

    NOW,
      THEREFORE, in consideration of the mutual covenants and agreements herein
      contained, the parties hereto hereby agree as follows:

     

    1. Employment.

     

    The
      Company agrees to employ the Executive, and the Executive agrees to be employed
      by the Company, upon the terms and subject to the conditions of this
      Agreement.

     

    2. Term.

     

    The
      employment of the Executive by the Company as provided in Section 1 shall be
      for
      a period of one year commencing on the date hereof, unless sooner terminated
      in
      accordance with the provisions of Section 9 below (the “Term”);
      provided, however, that the Term shall be extended automatically for additional
      one-year periods unless one party shall advise the other in writing at least
      60
      days before the initial expiration of the Term or an anniversary date thereof
      that this Agreement shall no longer be so extended. 

     

    3. Duties;
      Best Efforts; Place of Performance.

     

    (a) The
      Executive shall serve as President and Chief Executive Officer of the Company
      and shall perform, subject to the direction of the Board of Directors of the
      Company, such duties as are customarily performed by the President and Chief
      Executive Officer. The Executive shall also have such other powers and duties
      as
      may be from time to time directed by the Board of Directors of the Company,
      provided that the nature of the Executive’s powers and duties so prescribed
      shall not be inconsistent with the Executive’s position and duties
      hereunder.

     

    (b) The
      Executive shall devote substantially all of his business time, attention and
      energies to the business and affairs of the Company and
      shall
      use his best efforts to advance the best interests of the Company and shall
      not
      during the Term be actively engaged in any other business activity, whether
      or
      not such business activity is pursued for gain, profit or other pecuniary
      advantage, that will interfere with the performance by the Executive of his
      duties hereunder or the Executive’s availability to perform such duties or that
      will adversely affect, or negatively reflect upon, the Company.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    4. Directorship.
      The
      Company shall use its best efforts to cause the Executive to be elected as
      a
      member of its Board of Directors throughout the Term and shall include him
      in
      the management slate for election as a director at every stockholders meeting
      during the Term at which his term as a director would otherwise expire. The
      Executive agrees to accept election, and to serve during the Term, as director
      of the Company, without any compensation therefor other than as specified in
      this Agreement.

     

    5. Compensation.
      As full
      compensation for the performance by the Executive of his duties under this
      Agreement, the Company shall pay the Executive as follows:

     

    (a) Base
      Salary. The Company shall pay the Executive a base salary (the “Base
      Salary”)
      at a
      rate of $200,000 per annum, payable in equal semi-monthly installments during
      the Term. The
      Board
      of Directors of the Company shall annually review the Base Salary to determine
      whether an increase in the amount thereof is warranted. 

     

    (b) Discretionary
      Bonus. At the sole discretion of the Board of Directors of the Company, the
      Executive shall receive an additional annual bonus (the “Discretionary
      Bonus”)
      in an
      amount equal to up to 75% of his Base Salary, based upon his performance on
      behalf of the Company during the prior year. The Discretionary Bonus shall
      be
      payable either as a lump-sum payment or in installments as determined by the
      Board of Directors of the Company in its sole discretion. In addition,
the
      Board
      of Directors of the Company shall annually review the Guaranteed Bonus to
      determine whether an increase in the amount thereof is warranted.

     

    (c) License
      Bonus. For each new technology that the Company in-licenses or otherwise
      acquires and which are first introduced to the Company by or through the
      Executive, the Company shall pay the Executive a bonus (a “License Bonus”)
      equal
      to $75,000.

     

    (d) Withholding.
      The Company shall withhold all applicable federal, state and local taxes and
      social security and such other amounts as may be required by law from all
      amounts payable to the Executive under this Section 5.

     

    (e) Equity.
      Prior to, or contemporaneously with, the execution of this Agreement, the
      Company and the Executive shall enter into a Stock Purchase Agreement for the
      sale by the Company to the Executive of 750,000 shares of its common stock,
      par
      value $0.001 per share (the “Common Stock”), representing 15% of the total
      outstanding Common Stock of the Company as of the date hereof.

     

    (f) Expenses.
      The Company shall reimburse the Executive for all normal, usual and necessary
      expenses incurred by the Executive in furtherance of the business and affairs
      of
      the Company, including reasonable travel and entertainment, upon timely receipt
      by the Company of appropriate vouchers or other proof of the Executive’s
      expenditures and otherwise in accordance with any expense reimbursement policy
      as may from time to time be adopted by the Company.

     

    (g) Other
      Benefits. The Executive shall be entitled to all rights and benefits for which
      he shall be eligible under any benefit or other plans (including, without
      limitation, dental, medical, medical reimbursement and hospital plans, pension
      plans, employee stock purchase plans, profit sharing plans, bonus plans and
      other so-called "fringe" benefits) as the Company shall make available to its
      senior executives from time to time.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (h) Vacation.
      The Executive shall, during the Term, be entitled to a vacation of four (4)
      weeks per annum,
      in
      addition to holidays observed by the Company.
      The
      Executive shall not be entitled to carry any vacation forward to the next year
      of employment and shall not receive any compensation for unused vacation
      days.

     

    6. Confidential
      Information and Inventions.

     

    (a) The
      Executive recognizes and acknowledges that in the course of his duties he is
      likely to receive confidential or proprietary information owned by the Company,
      its affiliates or third parties with whom the Company or any such affiliates
      has
      an obligation of confidentiality. Accordingly, during and after the Term, the
      Executive agrees to keep confidential and not disclose or make accessible to
      any
      other person or use for any other purpose other than in connection with the
      fulfillment of his duties under this Agreement, any Confidential and Proprietary
      Information (as defined below) owned by, or received by or on behalf of, the
      Company or any of its affiliates. “Confidential and Proprietary Information”
shall include, but shall not be limited to, confidential or proprietary
      scientific or technical information, data, formulas and related concepts,
      business plans (both current and under development), client lists, promotion
      and
      marketing programs, trade secrets, or any other confidential or proprietary
      business information relating to development programs, costs, revenues,
      marketing, investments, sales activities, promotions, credit and financial
      data,
      manufacturing processes, financing methods, plans or the business and affairs
      of
      the Company or of any affiliate or client of the Company. The Executive
      expressly acknowledges the trade secret status of the Confidential and
      Proprietary Information and that the Confidential and Proprietary Information
      constitutes a protectable business interest of the Company. The Executive
      agrees: (i) not to use any such Confidential and Proprietary Information for
      himself or others; and (ii) not to take any Company material or reproductions
      (including but not limited to writings, correspondence, notes, drafts, records,
      invoices, technical and business policies, computer programs or disks) thereof
      from the Company’s offices at any time during his employment by the Company,
      except as required in the execution of the Executive’s duties to the Company.
      The Executive agrees to return immediately all Company material and
      reproductions (including but not limited, to writings, correspondence, notes,
      drafts, records, invoices, technical and business policies, computer programs
      or
      disks) thereof in his possession to the Company upon request and in any event
      immediately upon termination of employment.

     

    (b) Except
      with prior written authorization by the Company, the Executive agrees not to
      disclose or publish any of the Confidential and Proprietary Information, or
      any
      confidential, scientific, technical or business information of any other party
      to whom the Company or any of its affiliates owes an obligation of confidence,
      at any time during or after his employment with the Company.

     

    (c) The
      Executive agrees that all inventions, discoveries, improvements and patentable
      or copyrightable works (“Inventions”)
      initiated, conceived or made by him, either alone or in conjunction with others,
      during the Term
      shall be
      the sole property of the Company to the maximum extent permitted by applicable
      law and, to the extent permitted by law, shall be “works made for hire” as that
      term is defined in the United States Copyright Act (17 U.S.C.A., Section 101).
      The Company shall be the sole owner of all patents, copyrights, trade secret
      rights, and other intellectual property or other rights in connection therewith.
      The Executive hereby assigns to the Company all right, title and interest he
      may
      have or acquire in all such Inventions; provided, however, that the Board of
      Directors of the Company may in its sole discretion agree to waive the Company’s
      rights pursuant to this Section 6(c) with respect to any Invention that is
      not
      directly or indirectly related to the Company’s business. The Executive further
      agrees to assist the Company in every proper way (but at the Company’s expense)
      to obtain and from time to time enforce patents, copyrights or other rights
      on
      such Inventions in any and all countries, and to that end the Executive will
      execute all documents necessary:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (i) to
      apply
      for, obtain and vest in the name of the Company alone (unless the Company
      otherwise directs) letters patent, copyrights or other analogous protection
      in
      any country throughout the world and when so obtained or vested to renew and
      restore the same; and

    (ii) to
      defend
      any opposition proceedings in respect of such applications and any opposition
      proceedings or petitions or applications for revocation of such letters patent,
      copyright or other analogous protection.

     

    (d) The
      Executive acknowledges that while performing the services under this Agreement
      the Executive may locate, identify and/or evaluate patented or patentable
      inventions having commercial potential in the fields of pharmacy,
      pharmaceutical, biotechnology, healthcare, technology and other fields which
      may
      be of potential interest to the Company or one of its affiliates (the
“Third
      Party Inventions”).
      The
      Executive understands, acknowledges and agrees that all rights to, interests
      in
      or opportunities regarding, all Third-Party Inventions identified by the
      Company, any of its affiliates or either of the foregoing persons’ officers,
      directors, employees (including the Executive), agents or consultants during
      the
      Employment Term shall be and remain the sole and exclusive property of the
      Company or such affiliate and the Executive shall have no rights whatsoever
      to
      such Third-Party Inventions and will not pursue for himself or for others any
      transaction relating to the Third-Party Inventions which is not on behalf of
      the
      Company.

     

    (e) The
      provisions of this Section 6 shall survive any termination of this
      Agreement.

     

    7. Non-Competition,
      Non-Solicitation and Non-Disparagement.

     

    (a) The
      Executive understands and recognizes that his services to the Company are
      special and unique and that in the course of performing such services the
      Executive will have access to and knowledge of Confidential and Proprietary
      Information (as defined in Section 6) and the Executive agrees that, during
      the
      Term and for a period of eighteen
      (18)
      months
      thereafter, he shall not in any manner, directly or indirectly, on behalf of
      himself or any person, firm, partnership, joint venture, corporation or other
      business entity (“Person”),
      enter
      into or engage in any business which is engaged in any business directly or
      indirectly competitive with the business of the Company, either as an individual
      for his own account, or as a partner, joint venturer, owner, executive,
      employee, independent contractor, principal, agent, consultant, salesperson,
      officer, director or shareholder of a Person in a business competitive with
      the
      Company within the geographic area of the Company’s business, which is deemed by
      the parties hereto to be worldwide. The Executive acknowledges that, due to
      the
      unique nature of the Company’s business, the loss of any of its clients or
      business flow or the improper use of its Confidential and Proprietary
      Information could create significant instability and cause substantial damage
      to
      the Company and its affiliates and therefore the Company has a strong legitimate
      business interest in protecting the continuity of its business interests and
      the
      restriction herein agreed to by the Executive narrowly and fairly serves such
      an
      important and critical business interest of the Company. For purposes of this
      Agreement, the Company shall be deemed to be actively engaged on the date hereof
      in the development of novel application drug delivery systems for presently
      marketed prescription and over-the-counter drugs and providing consulting
      services in connection therewith, and in the future in any other business in
      which it actually devotes substantive resources to study, develop or pursue.
      Notwithstanding the foregoing, nothing contained in this Section 7(a) shall
      be
      deemed to prohibit the Executive from (i) acquiring or holding, solely for
      investment, publicly traded securities of any corporation, some or all of the
      activities of which are competitive with the business of the Company so long
      as
      such securities do not, in the aggregate, constitute more than three percent
      (3%) of any class or series of outstanding securities of such
      corporation.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b) During
      the Term and for a period of 18 months thereafter, the Executive shall not,
      directly or indirectly, without the prior written consent of the
      Company:

     

    (i) solicit
      or induce any employee of the Company or any of its affiliates to leave the
      employ of the Company or any such affiliate; or hire for any purpose any
      employee of the Company or any affiliate or any employee who has left the
      employment of the Company or any affiliate within one year of the termination
      of
      such employee’s employment with the Company or any such affiliate or at any time
      in violation of such employee’s non-competition agreement with the Company or
      any such affiliate; or

     

    (ii) solicit
      or accept employment or be retained by any Person who, at any time during the
      term of this Agreement, was an agent, client or customer of the Company or
      any
      of its affiliates where his position will be related to the business of the
      Company or any such affiliate; or

    (iii) solicit
      or accept the business of any agent, client or customer of the Company or any
      of
      its affiliates with respect to products, services or investments similar to
      those provided or supplied by the Company or any of its affiliates.

     

    (c) The
      Executive agrees that both during the Term and at all times thereafter, he
      shall
      not directly or indirectly disparage, whether or not true, the name or
      reputation of the Company or any of its affiliates, including but not limited
      to, any officer, director, employee or shareholder of the Company or any of
      its
      affiliates.

     

    (d) In
      the
      event that the Executive breaches any provisions of Section 6 or this Section
      7
      or there is a threatened breach, then, in addition to any other rights which
      the
      Company may have, the Company shall (i) be entitled, without the posting of
      a
      bond or other security, to injunctive relief to enforce the restrictions
      contained in such Sections and (ii) have the right to require the Executive
      to
      account for and pay over to the Company all compensation, profits, monies,
      accruals, increments and other benefits (collectively “Benefits”)
      derived or received by the Executive as a result of any transaction constituting
      a breach of any of the provisions of Sections 6 or 7 and the Executive hereby
      agrees to account for and pay over such Benefits to the Company.

     

    (e) Each
      of
      the rights and remedies enumerated in Section 7(d) shall be independent of
      the
      others and shall be in addition to and not in lieu of any other rights and
      remedies available to the Company at law or in equity. If any of the covenants
      contained in this Section 7, or any part of any of them, is hereafter construed
      or adjudicated to be invalid or unenforceable, the same shall not affect the
      remainder of the covenant or covenants or rights or remedies which shall be
      given full effect without regard to the invalid portions. If any of the
      covenants contained in this Section 7 is held to be invalid or unenforceable
      because of the duration of such provision or the area covered thereby, the
      parties agree that the court making such determination shall have the power
      to
      reduce the duration and/or area of such provision and in its reduced form such
      provision shall then be enforceable. No such holding of invalidity or
      unenforceability in one jurisdiction shall bar or in any way affect the
      Company’s right to the relief provided in this Section 7 or otherwise in the
      courts of any other state or jurisdiction within the geographical scope of
      such
      covenants as to breaches of such covenants in such other respective states
      or
      jurisdictions, such covenants being, for this purpose, severable into diverse
      and independent covenants.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (f) In
      the
      event that an actual proceeding is brought in equity to enforce the provisions
      of Section 6 or this Section 7, the Executive shall not urge as a defense that
      there is an adequate remedy at law nor shall the Company be prevented from
      seeking any other remedies which may be available. The Executive agrees that
      he
      shall not raise in any proceeding brought to enforce the provisions of Section
      6
      or this Section 7 that the covenants contained in such Sections limit his
      ability to earn a living.

     

    (g) The
      provisions of this Section 7 shall survive any termination of this
      Agreement.

     

    8. Representations
      and Warranties by the Executive.

     

    The
      Executive hereby represents and warrants to the Company as follows:

     

    (i) Neither
      the execution or delivery of this Agreement nor the performance by the Executive
      of his duties and other obligations hereunder violate or will violate any
      statute, law, determination or award, or conflict with or constitute a default
      or breach of any covenant or obligation under (whether immediately, upon the
      giving of notice or lapse of time or both) any prior employment agreement,
      contract, or other instrument to which the Executive is a party or by which
      he
      is bound.

     

    (ii) The
      Executive has the full right, power and legal capacity to enter and deliver
      this
      Agreement and to perform his duties and other obligations hereunder. This
      Agreement constitutes the legal, valid and binding obligation of the Executive
      enforceable against him in accordance with its terms. No approvals or consents
      of any persons or entities are required for the Executive to execute and deliver
      this Agreement or perform his duties and other obligations
      hereunder.

     

    9. Termination.
      The Executive’s employment hereunder shall be terminated upon the Executive’s
      death and may be terminated as follows:

     

    (a) The
      Executive’s employment hereunder may be terminated by the Board of Directors of
      the Company for Cause. Any of the following actions by the Executive shall
      constitute “Cause”:

     

    (i) The
      willful failure, disregard or refusal by the Executive to perform his duties
      hereunder;

     

    (ii) Any
      willful, intentional or grossly negligent act by the Executive having the effect
      of injuring, in a material way (whether financial or otherwise and as determined
      in good-faith by a majority of the Board of Directors of the Company), the
      business or reputation of the Company or any of its affiliates, including but
      not limited to, any officer, director, executive or shareholder of the Company
      or any of its affiliates; 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (iii) Willful
      misconduct by the Executive
      in
      respect of the duties or obligations of the Executive under this
      Agreement,
      including, without limitation, insubordination with respect to directions
      received by the Executive from the Board of Directors of the Company;

     

    (iv) The
      Executive’s indictment of any felony or a misdemeanor involving moral turpitude
      (including entry of a nolo contendere plea);

     

    (v) The
      determination by the Company, after a reasonable and good-faith investigation
      by
      the Company following a written allegation by another employee of the Company,
      that the Executive engaged in some form of harassment prohibited
      by law
      (including, without limitation, age, sex or race discrimination),
      unless
      the Executive’s actions were specifically directed by the Board of Directors of
      the Company;

     

    (vi) Any
      misappropriation or embezzlement of the property of the Company or its
      affiliates (whether or not a misdemeanor or felony);

     

    (vii) Breach
      by
      the Executive of any of the provisions of Sections
      6, 7
      or
8
      of this
      Agreement; and

     

    (viii) Breach
      by
      the Executive of any provision of this Agreement other than those contained
      in
Sections
      6, 7
      or
8
      which is
      not cured by the Executive within thirty (30) days after notice thereof is
      given
      to the Executive by the Company.

     

    (b) The
      Executive’s employment hereunder may be terminated by the Board of Directors of
      the Company due to the Executive’s Disability. For purposes of this Agreement, a
      termination for “Disability”
shall
      occur (i) when the Board of Directors of the Company has provided a written
      termination notice to the Executive supported by a written statement from a
      reputable independent physician to the effect that the Executive shall have
      become so physically or mentally incapacitated as to be unable to resume, within
      the ensuing twelve (12) months, his employment hereunder by reason of physical
      or mental illness or injury, or (ii) upon rendering of a written termination
      notice by the Board of Directors of the Company after the Executive has been
      unable to substantially perform his duties hereunder for 90 or more consecutive
      days, or more than 120 days in any consecutive twelve month period, by reason
      of
      any physical or mental illness or injury. For purposes of this Section 9(b),
      the
      Executive agrees to make himself available and to cooperate in any reasonable
      examination by a reputable independent physician retained by the
      Company.

     

    (c) The
      Executive’s employment hereunder may be terminated by the Board of Directors of
      the Company (or its successor) upon the occurrence of a Change of Control.
      For
      purposes of this Agreement, “Change
      of Control”
means
      (i) the acquisition, directly or indirectly, following the date hereof by any
      person (as such term is defined in Section 13(d) and 14(d)(2) of the Securities
      Exchange Act of 1934, as amended), in one transaction or a series of related
      transactions, of securities of the Company representing in excess of fifty
      percent (50%) or more of the combined voting power of the Company’s then
      outstanding securities if such person or his or its affiliate(s) do not own
      in
      excess of 50% of such voting power on the date of this Agreement, or (ii) the
      future disposition by the Company (whether direct or indirect, by sale of assets
      or stock, merger, consolidation or otherwise) of all or substantially all of
      its
      business and/or assets in one transaction or series of related transactions
      (other than a merger effected exclusively for the purpose of changing the
      domicile of the Company).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    10. Compensation
      upon Termination.

     

    (a) If
      the
      Executive’s employment is terminated as a result of his death or Disability, the
      Company shall pay to the Executive or to the Executive’s estate, as applicable,
his
      Base
      Salary and any accrued and any unpaid Bonus and expense reimbursement amounts
      through the date of his Death or Disability. 

     

    (b) If
      the
      Executive’s employment is terminated by the Board of Directors of the Company
      for Cause, then the Company shall pay to the Executive his Base Salary through
      the date of his termination and the Executive shall have no further entitlement
      to any other compensation or benefits from the Company.

     

    (c) If
      the
      Executive’s employment is terminated by the Company (or its successor) upon the
      occurrence of a Change of Control, the Company (or its successor, as applicable)
      shall continue to pay to the Executive his Base Salary for a period of one
      year
      following such termination.

     

    (d) If
      the
      Executive’s employment is terminated by the Company other than as a result of
      the Executive’s death or Disability and other than for reasons specified in
      Sections 10(b) or (c), then the Company shall continue to pay to the Executive
      his Base Salary for a period of one year following such termination, and (ii)
      pay the Executive any expense reimbursement amounts owed through the date of
      termination. The Company’s obligation under clauses (i) and (ii) in the
      preceding sentence shall be subject to offset by any amounts otherwise received
      by the Executive from any employment during the one year period following the
      termination of his employment.

     

    (e) This
      Section 10 sets forth the only obligations of the Company with respect to the
      termination of the Executive’s employment with the Company, and the Executive
      acknowledges that, upon the termination of his employment, he shall not be
      entitled to any payments or benefits which are not explicitly provided in
      Section 10.

     

    (f) Upon
      termination of the Executive’s employment hereunder for any reason, the
      Executive shall be deemed to have resigned as director of the Company, effective
      as of the date of such termination.

     

    (g) The
      provisions of this Section 10 shall survive any termination of this
      Agreement.

     

    11. Miscellaneous.

     

    (a) This
      Agreement shall be governed by, and construed and interpreted in accordance
      with, the laws of the State of New York, without giving effect to its principles
      of conflicts of laws.

     

    (b) Any
      dispute arising out of, or relating to, this Agreement or the breach thereof
      (other than Sections 6 or 7 hereof), or regarding the interpretation thereof,
      shall be finally settled by arbitration conducted in New York City in accordance
      with the rules of the American Arbitration Association then in effect before
      a
      single arbitrator appointed in accordance with such rules. Judgment upon any
      award rendered therein may be entered and enforcement obtained thereon in any
      court having jurisdiction. The arbitrator shall have authority to grant any
      form
      of appropriate relief, whether legal or equitable in nature, including specific
      performance. For the purpose of any judicial proceeding to enforce such award
      or
      incidental to such arbitration or to compel arbitration and for purposes of
      Sections 6 and 7 hereof, the parties hereby submit to the non-exclusive
      jurisdiction of the Supreme Court of the State of New York, New York County,
      or
      the United States District Court for the Southern District of New York, and
      agree that service of process in such arbitration or court proceedings shall
      be
      satisfactorily made upon it if sent by registered mail addressed to it at the
      address referred to in paragraph (g) below. The
      costs
      of such arbitration shall be borne proportionate to the finding of fault as
      determined by the arbitrator. Judgment on the arbitration award may be entered
      by any court of competent jurisdiction.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c) This
      Agreement shall be binding upon and inure to the benefit of the parties hereto,
      and their respective heirs, legal representatives, successors and
      assigns.

     

    (d) This
      Agreement, and the Executive’s rights and obligations hereunder, may not be
      assigned by the Executive. The Company may assign its rights, together with
      its
      obligations, hereunder in connection with any sale, transfer or other
      disposition of all or substantially all of its business or assets.

     

    (e) This
      Agreement cannot be amended orally, or by any course of conduct or dealing,
      but
      only by a written agreement signed by the parties hereto.

     

    (f) The
      failure of either party to insist upon the strict performance of any of the
      terms, conditions and provisions of this Agreement shall not be construed as
      a
      waiver or relinquishment of future compliance therewith, and such terms,
      conditions and provisions shall remain in full force and effect. No waiver
      of
      any term or condition of this Agreement on the part of either party shall be
      effective for any purpose whatsoever unless such waiver is in writing and signed
      by such party.

     

    (g) All
      notices, requests, consents and other communications, required or permitted
      to
      be given hereunder, shall be in writing and shall be delivered personally or
      by
      an overnight courier service or sent by registered or certified mail, postage
      prepaid, return receipt requested, to the parties at the addresses set forth
      on
      the first page of this Agreement, and shall be deemed given when so delivered
      personally or by overnight courier, or, if mailed, five days after the date
      of
      deposit in the United States mails. Either party may designate another address,
      for receipt of notices hereunder by giving notice to the other party in
      accordance with this paragraph (g).

     

    (h) This
      Agreement sets forth the entire agreement and understanding of the parties
      relating to the subject matter hereof, and supersedes all prior agreements,
      arrangements and understandings, written or oral, relating to the subject matter
      hereof. No representation, promise or inducement has been made by either party
      that is not embodied in this Agreement, and neither party shall be bound by
      or
      liable for any alleged representation, promise or inducement not so set
      forth.

     

    (i) As
      used
      in this Agreement, “affiliate” of a specified Person shall mean and include any
      Person controlling, controlled by or under common control with the specified
      Person.

     

    (j) The
      section headings contained herein are for reference purposes only and shall
      not
      in any way affect the meaning or interpretation of this Agreement.

     

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

    

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

     

    
      	 	 	 
	 	COUGAR
              BIOTECHNOLOGY, INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Name:

              Title:

            

    

     

    
      	 	 	 
	 	EXECUTIVE
	 
 	 
 	 
 
	 	By:  	/s/
              Alan
              H. Auerbach
	 	
              

              Name:EXHIBIT
      10.3

     

    SCIENTIFIC
      ADVISORY AGREEMENT

    

    THIS
      SCIENTIFIC ADVISORY AGREEMENT (this "Agreement"), effective as of the ____
      of
      December, 2003, is by and between ARIE BELLDEGRUN, M.D., having an address
      at
      _______________________________ (hereinafter referred to as "ADVISOR") and
      Cougar Biotechnology, Inc., a Delaware limited liability corporation having
      offices at 10940 Wilshire Blvd. Suite 600, Los Angeles, CA 90024
      ("COUGAR").

    

    W I T N E S S E T
      H:

    

    WHEREAS,
      ADVISOR
      is an expert in scientific matters relating to
      _____________________________;

    

    WHEREAS, COUGAR
      desires that ADVISOR serve as chairman of its Scientific Advisory Board (the
      “SAB”) and a member of its Board of Directors (the “Board”) and that it be able
      to call upon the knowledge and experience of ADVISOR for consultation services
      and advice;

    

    WHEREAS,
      ADVISOR
      is willing to sever as chairman of the SAB and a member of its Board and render
      such services to COUGAR on the terms and conditions hereinafter set forth in
      this Agreement;

    

    NOW,
      THEREFOR,
      in
      consideration of the mutual covenants and agreements hereinafter set forth,
      the
      parties hereby agree as follows:

    

    Section
      1. Term
      of Agreement. This
      Agreement shall be in effect for a period of four (4) years from the date
      hereof. The term of this Agreement shall automatically be extended for
      consecutive periods of one year each, unless either party shall give written
      notice of non-renewal to the other, at least thirty (30) days prior to the
      expiration of the initial, or then current renewal, term. During the term of
      this Agreement (including any renewal pursuant to the immediately preceding
      sentence), this Agreement may be terminated by ADVISOR or COUGAR upon thirty
      (30) days prior written notice; provided,
      however,
      that
      upon termination by COUGAR, (a) COUGAR shall pay ADVISOR in lump sum the
      remaining amount owing to ADVISOR for the remainder of the year and (b) any
      Options (defined below) that will vest in the year of termination will vest
      immediately and the remaining unvested options will expire and become void.
      Cougar shall have no obligation to pay the lump sum and vest the options
      described in 1(a) and 1(b) respectively, if it terminates this Agreement for
      reasons of gross negligence, willful misconduct or fraud on the part of the
      ADVISOR. Upon termination of this Agreement, the ADVISOR will be deemed to
      have
      resigned from both the SAB and the Board.

    

    Section
      2. Services.
      ADVISOR
      agrees to serve under the term of this Agreement as a member of COUGAR’s SAB and
      Board and to provide advice to COUGAR in the area of ADVISOR’s expertise.
      Additionally, ADVISOR agrees to identify, analyze, structure and secure new
      business opportunities that meet the Company’s business objectives including,
      but not limited to, opportunities within the intellectual property and drug
      development fields. Promptly following execution of this Agreement, the Board
      will appoint ADVISOR to both the SAB (as its chairman) and to the Board (as
      its
      Vice-Chairman).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Section
      3. Advisory
      Function.
      ADVISOR
      agrees to be available during the term of this Agreement upon reasonable request
      by COUGAR to consult with COUGAR and to assist COUGAR in the assessment of
      research, development and commercial programs of biotechnology or pharmaceutical
      companies that COUGAR may consider developing or acquiring from time to time,
      to
      offer advice and guidance with respect to the research and commercial
      development plans of potential competitors of such companies; provided, however,
      that ADVISOR shall not be obligated to commit more than one (1) day per week
      to
      COUGAR. ADVISOR also agrees to be available, upon reasonable notice, to attend
      all meetings of the SAB and the Board.

    

    Section
      4. Compensation. In
      consideration for ADVISOR’S services, COUGAR shall:

    

    (a) Pay
      to
      ADVISOR One Hundred and Fifty Thousand Dollars ($150,000) per year payable
      in
      accordance with its normal payroll period and practices;

    

    (b) Make
      the
      following milestone payments to ADVISOR:

    

    (1) Fifty
      Thousand Dollars ($50,000) upon consummation of a license agreement or similar
      agreement relating to the acquisition by COUGAR of each new Technology (as
      defined below) that is undergoing or has completed Phase I clinical testing
      at
      the time of the introduction;

    

    (2) One
      Hundred Thousand Dollars ($100,000) upon consummation of a license agreement
      or
      similar agreement relating to the acquisition by COUGAR of a Technology that
      is
      undergoing or has completed Phase II clinical testing at the time of the
      introduction; and

    

    (3) One
      Hundred Fifty Thousand Dollars ($150,000) upon consummation of a license
      agreement or similar agreement relating to the acquisition by COUGAR of a
      Technology that is undergoing or has completed Phase III clinical testing at
      the
      time of the introduction.

    

    For
      purposes of this Section 4(b), a “Technology” shall mean any technology first
      introduced to COUGAR by ADVISOR, or for which ADVISOR actively participates
      in
      the evaluation process, that is subsequently in-licensed or otherwise acquired
      by COUGAR. The degree of the ADVISOR’s participation in the evaluation process
      will be determined by the Chief Executive Officer of COUGAR and, accordingly,
      determine whether ADVISOR is entitled to receive all or a part of the fees
      described in this Section 4(b).

     

    (c) pay
      to
      ADVISOR a cash bonus in the amount of One Hundred Thousand Dollars ($100,000)
      for his assistance in preparation for and participation in meetings with
      potential investors in COUGAR relating to an offering of securities (an
“Offering”), provided however, such Offering raises a minimum of $5,000,000 of
      proceeds for the Company. The Company will not have an obligation to pay the
      fee
      described in this Section 4(c) more than one time per year.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (d) grant
      ADVISOR options (the “Options”) to purchase Four Hundred Thousand (400,000)
      shares of COUGAR common stock, par value $0.001 per share (the “Common Stock”)
      at an exercise price equal to $0.15 per share, which Options shall vest, if
      at
      all, in four equal amounts on each anniversary of this Agreement and shall
      otherwise be subject to the Employee Stock Option Plan of COUGAR. Except as
      provided in Section 1 hereof and the following sentence, the Options shall
      vest
      only if ADVISOR is a member of both the Board of Directors and the SAB.
      Notwithstanding the foregoing provisions of this Section 4(d), any portion
      of
      the Options remaining unvested shall vest upon a Change of Control. “Change of
      Control” means (i) the acquisition, directly or indirectly, following the date
      hereof by any person (as such term is defined in Section 13(d) and 14(d)(2)
      of
      the Securities Exchange Act of 1934, as amended), in one transaction or a series
      of related transactions, of securities of the Company representing in excess
      of
      fifty percent (50%) or more of the combined voting power of the Company’s then
      outstanding securities if such person or his or its affiliate(s) do not own
      in
      excess of 50% of such voting power on the date of this Agreement, or (ii) the
      future disposition by the Company (whether direct or indirect, by sale of assets
      or stock, merger, consolidation or otherwise) of all or substantially all of
      its
      business and/or assets in one transaction or series of related transactions
      (other than a merger effected exclusively for the purpose of changing the
      domicile of the Company).

    

    Section
      5. Expenses.
      COUGAR
      will promptly reimburse ADVISOR for all reasonable and necessary expenses
      incurred by him in connection with his consulting hereunder, provided such
      expenses are approved by COUGAR in advance of expenditure. 

    

    Section 6. Confidential
      Information and Inventions

    

    (a) ADVISOR
      recognizes and acknowledges that in the course of his duties pursuant to this
      Agreement, he is likely to receive confidential or proprietary information
      owned
      by COUGAR, its affiliates or third parties with whom COUGAR or any such
      affiliates has an obligation of confidentiality. Accordingly, during and after
      the term of this Agreement and for a period of five (5) years thereafter,
      ADVISOR agrees to keep confidential and not disclose or make accessible to
      any
      other person or use for any other purpose other than in connection with the
      fulfillment of his duties under this Agreement, any Confidential and Proprietary
      Information (as defined below) owned by, or received by or on behalf of, COUGAR
      or any of its affiliates. “Confidential and Proprietary Information” shall
      include, but shall not be limited to, confidential or proprietary scientific
      or
      technical information, data, formulas and related concepts, business plans
      (both
      current and under development), client lists, promotion and marketing programs,
      trade secrets, or any other confidential or proprietary business information
      relating to development programs, costs, revenues, marketing, investments,
      sales
      activities, promotions, credit and financial data, manufacturing processes,
      financing methods, plans or the business and affairs of COUGAR or of any
      affiliate or client of COUGAR. ADVISOR expressly acknowledges the trade secret
      status of the Confidential and Proprietary Information and that the Confidential
      and Proprietary Information constitutes a protectable business interest of
      COUGAR. ADVISOR agrees: (i) not to use any such Confidential and Proprietary
      Information for himself or others; and (ii) not to take any material or
      reproductions (including but not limited to writings, correspondence, notes,
      drafts, records, invoices, technical and business policies, computer programs
      or
      disks) thereof from COUGAR’s offices at any time during the term by COUGAR,
      except as required in the execution of ADVISOR’s duties to COUGAR. ADVISOR
      agrees to return immediately all Company material and reproductions (including
      but not limited, to writings, correspondence, notes, drafts, records, invoices,
      technical and business policies, computer programs or disks) thereof in his
      possession to COUGAR upon request and in any event immediately upon termination
      of the Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (b) Except
      with prior written authorization by COUGAR, ADVISOR agrees not to disclose
      or
      publish any of the Confidential and Proprietary Information, or any
      confidential, scientific, technical or business information of any other party
      to whom COUGAR or any of its affiliates owes an obligation of confidence, at
      any
      time during the term and for a period of five (5) years thereafter.

    

    (c) ADVISOR
      agrees that all inventions, discoveries, improvements and patentable or
      copyrightable works (“Inventions”) initiated, conceived or made by him, either
      alone or in conjunction with others, made while ADVISOR was working in his
      capacity as a consultant, member of the SAB or Board as described herein, shall
      be the sole property of COUGAR to the maximum extent permitted by applicable
      law
      and, to the extent permitted by law, shall be “works made for hire” as that term
      is defined in the United States Copyright Act (17 U.S.C.A., Section 101). The
      Company shall be the sole owner of all patents, copyrights, trade secret rights,
      and other intellectual property or other rights in connection therewith. ADVISOR
      hereby assigns to COUGAR all right, title and interest he may have or acquire
      in
      all such Inventions. ADVISOR further agrees to assist COUGAR in every proper
      way
      (but at COUGAR’s expense) to obtain and from time to time enforce patents,
      copyrights or other rights on such Inventions in any and all countries, and
      to
      that end ADVISOR will execute all documents necessary:

    

    (i) to
      apply
      for, obtain and vest in the name of COUGAR alone (unless COUGAR otherwise
      directs) letters patent, copyrights or other analogous protection in any country
      throughout the world and when so obtained or vested to renew and restore the
      same; and

    

    (ii) to
      defend
      any opposition proceedings in respect of such applications and any opposition
      proceedings or petitions or applications for revocation of such letters patent,
      copyright or other analogous protection.

    

    (d) The
      provisions of this Section 6 shall survive any termination of this
      Agreement.

    

    (e) All
      of
      the foregoing obligations and restrictions do not apply to that part of the
      Confidential and Proprietary Information that ADVISOR can demonstrate, through
      the production of documented evidence: (i) was or becomes generally available
      to
      the public other than as a result of a disclosure by the ADVISOR or his
      representatives; or (ii) was known to ADVISOR prior to the disclosure by COUGAR,
      provided that such information is not known by ADVISOR to be subject to another
      confidentiality agreement with, or other obligation of secrecy to, COUGAR;
      or
      (iii) was available, or becomes available, to ADVISOR on a non-confidential
      basis from a third party who is not under a contractual, legal, fiduciary or
      other confidentiality obligation to COUGAR; (iv) was independently developed
      by
      ADVISOR by persons not having access to the Confidential and Proprietary
      Information;(v) is required to be disclosed pursuant to the requirement of
      a
      governmental agency or of law (provided ADVISOR gives COUGAR prompt notice
      of
      such disclosure order or requirement); or (v) has been approved for release
      in
      writing by COUGAR.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Section
      7. Insider
      Trading.
      ADVISOR
      recognizes that in the course of his duties hereunder, ADVISOR may receive
      from
      COUGAR or others information that may be considered "material, nonpublic
      information" concerning a public company that is subject to the reporting
      requirements of the Securities and Exchange Act of 1934, as amended. ADVISOR
      agrees NOT
      to:

    

    (a) Buy
      or
      sell any security, option, bond or warrant while in possession of relevant
      material, nonpublic information received from COUGAR or others in connection
      herewith;

    

    (b) Provide
      COUGAR with information with respect to any public company that may be
      considered material, nonpublic information; or

    

    (c) Provide
      any person with material, nonpublic information, received from COUGAR, including
      any relative, associate, or other individual who intends to, or may, (i) trade
      securities with respect to the company which is the subject of such information,
      or (ii) otherwise directly or indirectly benefit from such
      information.

    

    Section
      8. Representations
      of Advisor.
      ADVISOR
      hereby represents that his current principal place of employment has received
      disclosure as to the ADVISOR's acting as a Scientific Advisor to COUGAR and
      of
      the duties required of the ADVISOR under this Agreement, and that such employer
      consents fully to ADVISOR's execution of this Agreement and position of
      Scientific Advisor for COUGAR. ADVISOR further represents that there are no
      binding agreements to which he is a party or by which he is bound, forbidding
      or
      restricting his activities herein. In addition, the ADVISOR consents to the
      use
      of his name in various reports, brochures or other documents produced by or
      on
      behalf of or COUGAR. The ADVISOR understands and acknowledges that he has
      certain fiduciary and other obligations and responsibilities to COUGAR and
      its
      shareholders by virtue of his appointment to the BOARD and hereby agrees to
      use
      his best efforts to satisfy such obligations and responsibilities. 

    

    Section
      9. Survival. The
      provisions of this Agreement relating to confidentiality and insider trading
      shall survive any termination or expiration hereof for three years.

    

    Section
      10. Advisor
      not an Employee.
      COUGAR
      and the ADVISOR hereby acknowledge and agree that ADVISOR shall perform the
      services hereunder as an independent contractor and not as an employee of
      COUGAR.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Section
      11. Indemnification.
      COUGAR
      shall
      defend and indemnify ADVISOR in his capacity as a advisor to COUGAR
      against
      any and all claims, judgments, damages, liabilities, costs and expenses
      (including reasonable attorney’s fees) arising out of, based upon or related to
      the ADVISOR’s performance of services hereunder, except to the extent that such
      claims arise out of (a) willful misfeasance, (b) bad faith, (c) gross negligence
      or (d) reckless disregard of the duties involved in the conduct of ADVISOR’s
      position.

    

    Section
      12. Miscellaneous. 

    

    (a) Severability
      Of Provisions.
      If any
      provision of this Agreement shall be declared by a court of competent
      jurisdiction to be invalid, illegal or incapable of being enforced in whole
      or
      in part, the remaining conditions and provisions or portions thereof shall
      nevertheless remain in full force and effect and enforceable to the extent
      they
      are valid, legal and enforceable, and no provision shall be deemed dependent
      upon any other covenant or provision unless so expressed herein.

    

    (b) Entire
      Agreement; Modification.
      This
      Agreement is the entire agreement of the parties relating to the subject matter
      hereof and thereof, and the parties hereto and thereto have made no agreements,
      representations or warranties relating to the subject matter of this Agreement
      which are not set forth herein or therein. No amendment or modification of
      this
      Agreement shall be valid unless made in writing and signed by each of the
      parties hereto.

    

    (c) Binding
      Effect.
      The
      rights, benefits, duties and obligations under this Agreement shall inure to,
      and be binding upon, COUGAR, its successors and assigns, and upon Advisor and
      his legal representatives. This Agreement constitutes a personal service
      agreement, and the performance of Advisor's obligations hereunder may not be
      transferred or assigned by Advisor and any such purported transfer or assignment
      shall null and void ab initio.

    

    (d) Third
      Party Beneficiaries.
      This
      Agreement is for the benefit of the parties hereto and their permitted
      successors and assigns, and is not intended to confer upon any other person
      or
      entity, any rights or remedies hereunder.

    

    (e) Non-Waiver.
      The
      failure of either party to insist upon the strict performance of any of the
      terms, conditions and provisions of this Agreement shall not be construed as
      a
      waiver or relinquishment of future compliance therewith, and said terms,
      conditions and provisions shall remain in full force and effect. No waiver
      of
      any term or condition of this Agreement on the part of either party shall be
      effective for any purpose whatsoever unless such waiver is in writing and signed
      by such party.

    

    (f) Remedies
      For Breach.
      Advisor
      agrees that any breach of Articles 6 and 7 of this Agreement by Advisor could
      cause irreparable damage to COUGAR and to the Affiliates, and that monetary
      damages alone would not be adequate and, in the event of such breach or threat
      of breach, COUGAR shall have, in addition to any and all remedies at law and
      without the posting of a bond or other security, the right to an injunction,
      specific performance or other equitable relief necessary to prevent or redress
      the violation of COUGAR's obligations under such Articles. In the event that
      an
      actual proceeding is brought in equity to enforce such Articles, Advisor shall
      not urge as a defense that there is an adequate remedy at law nor shall COUGAR
      be prevented from seeking any other remedies that may be available to
      it.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (g) Attorneys’
      Fees.
      In the
      event that any arbitration or court proceeding is brought under or in connection
      with this Agreement, the prevailing party in such proceeding (whether on trial
      or on appeal) shall be entitled to recover from the other party all costs,
      expenses and reasonable attorneys’ fees incidental to any such court proceeding
      and only reasonable attorneys’ fees incidental to any such arbitration
      proceeding. The term ‘prevailing party’ as used herein shall be taken and deemed
      to mean the party in whose favor a final judgment or award is entered in any
      such proceeding; provided, however, that if such proceeding be resolved prior
      to
      a final judgment or award on the merits, the party in whose favor the proceeding
      is settled may by motion apply to the court, or the person(s) or board in charge
      of the proceeding, for an award of the aforementioned costs, fees and expenses,
      and may take judgment therefor.

    

    (g) Governing
      Law.
      This
      Agreement shall be governed by, and construed and interpreted in accordance
      with, the laws of the State of California without regard to such State’s
      principles of conflict of laws. 

    

    (h) Headings.
      The
      headings of the Sections are inserted for convenience of reference only and
      shall not affect any interpretation of this Agreement. 

    

    IN
      WITNESS WHEREOF,
      the
      parties hereto have executed this Agreement by proper person thereunto duly
      authorized.

     

    
      	 	 	 
	 	 	COUGAR BIOTECHNOLOGY, INC.
	 
 	 
 	 
 
	 	 	/s/
              Alan
              H. Auerbach, CEO
	 	
               

               

               

            	
              
                

              

              By:  Alan H. Auerbach, CEO

              Date:  

            
	 	 

    

    
      	 	 	 
	 	
              
                 

              

            	
              ARIE
                BELLDEGRUN, M.D

            
	 
 	 
 	 
 
	 	 	/s/
              Arie
              Belldegrun
	 	
               

                
                

            	
              

              Name: 
                Arie Belldegrun

              Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}]]