Document:

EX-10.57

 

Exhibit 10.57

OSI PHARMACEUTICALS, INC.

CONSULTING AND CONFIDENTIAL DISCLOSURE AGREEMENT

          This Consulting and Confidential Disclosure Agreement (“Agreement”) is effective as of the
date of the last party to sign below (“Effective Date”) by and between OSI Pharmaceuticals, Inc., a
Delaware corporation (together with its affiliates and subsidiaries, “OSI”), having executive
offices at 41 Pinelawn Road, Melville, New York 11747, and H.M. (Bob) Pinedo, M.D., Ph.D., an
individual (“Consultant”).

1. Nature of Consulting Services. The field of consultation will be clinical development of
oncology products (“Field”). The consulting services provided by Consultant under this Agreement
(“Services”) will include the following activities: (i) advising and informing OSI of developments
within the Field; (ii) assisting OSI in solving research, development and other problems within the
Field; (iii) making suggestions and recommendations to OSI for new drug products and for
improvements of existing drug products related to the Field; and (iv) attending scientific advisory
board meetings as requested.

2. Delivery of Consulting Services.

     (a) In providing the Services, Consultant will provide at Consultant’s expense all equipment,
tools, supplies and materials.

     (b) Consultant will carry out the Services to the best of Consultant’s ability in a
professional manner consistent with industry standards, in accordance with the standard of care
customarily observed with regard to such services in Consultant’s profession and using the
Consultant’s expertise and creative talents. Consultant will perform Services in a timely manner
and at mutually agreeable locations, times and places. Consultant will perform the Services in
compliance with all applicable laws, rules and regulations.

3. Compensation and Reimbursement.

     (a) OSI will pay Consultant a fee at the rate of five hundred dollars (US$500) per hour or
four thousand dollars (US$4,000) per day (minimum of eight hours) in consideration for the
Services. Consultant shall invoice OSI for Services on a monthly basis. Payment shall be due within
thirty (30) days of OSI’s receipt of an invoice for such payment.

     (b) Consultant may bill OSI for reasonable travel time when such travel is requested by OSI at
a rate of the lesser of two hundred dollars (US$200) per hour or two thousand (US$2,000) per day.
OSI will reimburse Consultant for reasonable out-of-pocket expenses incurred while Consultant is
traveling at OSI’s request. Unless otherwise approved by OSI, Consultant must use OSI-designated
travel services to make all OSI requested travel arrangements. In addition, Consultant must obtain
OSI’s prior written consent for such expenses that will exceed two thousand dollars (US$2,000) in
the aggregate. Consultant must submit copies of appropriate receipts for any such expenses.

4. Confidentiality.

     (a) “Confidential Information” means confidential or proprietary information of OSI either
disclosed orally, graphically, in writing, or in electronic or other form to or otherwise learned
by Consultant under this Agreement or that should reasonably be known to be confidential or
proprietary to OSI, including but not limited to information relating to OSI’s: research,
development, preclinical and clinical programs, data and results; pharmaceutical or biologic
candidates and products; inventions, works of authorship, trade secrets, processes, conceptions,
formulas, patents, patent applications and licenses; IP Rights (as defined in Section 5); business,
product, marketing, sales, scientific and technical strategies,
programs and results, including costs and prices; suppliers, manufacturers, customers, market
data,

 

 

personnel, and consultants; and other confidential matters related to OSI.

     (b) Subject to Section 4(c), until ten (10) years after the expiration or termination of this
Agreement, Consultant:

          (i) shall not use Confidential Information for its own benefit or the benefit of any third
party except solely for the purpose of performing Services;

          (ii) shall hold Confidential Information in strictest confidence and shall not disclose
Confidential Information to others, except to its employees or agents who require Confidential
Information solely for the purpose of performing Services and who are subject to binding
obligations of confidentiality and restricted use at least as protective as those of this
Agreement;

          (iii) shall protect the confidentiality of Confidential Information using at least the same
level of efforts and measures used to protect its own confidential information, and at least
commercially reasonable efforts and measures, including without limitation limiting access to
Confidential Information commensurate with performance of the Services and keeping adequate records
of those with access to Confidential Information and of all uses or dispositions of Confidential
Information; and

          (iv) shall notify OSI as promptly as practicable of any unauthorized use or disclosure of
Confidential Information.

     (c) Consultant’s obligations under Section 4(b) shall not apply to any Confidential
Information that:

          (i) Consultant knew prior to learning it under this Agreement, as demonstrated by written
records predating the date it was learned under this Agreement (unless learned from OSI or a third
party under a binder of confidentiality);

          (ii) is now, or becomes in the future, publicly available other than by an act or omission of
Consultant; or

          (iii) a third party discloses to Consultant as a matter of right, without any restriction on
disclosure, and without any breach of any direct or indirect obligation of confidentiality to OSI,
as shown by Consultant’s written records contemporaneous with such third party disclosure.

     (d) Notwithstanding other provisions of this Agreement, Consultant may disclose Confidential
Information to the extent and to the persons or entities required under applicable governmental
law, rule, regulation or order, provided that Consultant (i) first gives prompt notice of such
disclosure requirement to OSI so as to enable OSI to seek any limitations on or exemptions from
such disclosure requirement and (ii) reasonably cooperates at OSI’s request in any such efforts by
OSI.

     (e) Upon the earlier of the completion of the Services or OSI’s request for any reason at any
time, Consultant will (i) immediately cease all use of Confidential Information and notify OSI and
(ii) promptly, at OSI’s instruction, either return to OSI or destroy all Confidential Information,
including any copies, extracts, summaries, or derivative works thereof, and certify in writing to
OSI the completion of such return and/or destruction.

     (f) OSI retains all right, title and interest in and to Confidential Information. This
Agreement gives Consultant no right or license to any Confidential Information or any intellectual
property or other rights owned by or licensed to OSI, by implication or otherwise, except the right
to use Confidential Information solely for performance of Services. OSI may freely transfer,
disclose and/or use Confidential Information for its or others’ purposes.

     (g) Consultant acknowledges that any actual or threatened breach of this Section 4 will cause
OSI immediate and irreparable harm that cannot be adequately compensated by monetary damages, and
Consultant therefore agrees that OSI shall have the right to secure equitable and injunctive
relief under

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this Agreement in addition to any other remedies that may be legally available.

5. Intellectual Property. Consultant hereby assigns to OSI all of Consultant’s right, title and
interest in and to any intellectual property rights arising from inventions, software programs,
databases or other discoveries made, conceived, reduced to practice, authored or otherwise
developed solely or jointly by Consultant in whole or in part through use of Confidential
Information or in the course of performing Services (“IP Rights”). Consultant hereby grants OSI an
irrevocable power of attorney to execute on Consultant’s behalf patent and copyright applications
or other such documents required to protect, enforce or perfect OSI’s right, title and interest in
and to such IP Rights.

6. Publication. Consultant agrees that, during the term of this Agreement and for a period of ten
(10) years from termination of this Agreement, if for any reason Consultant wishes to present or
publish scientific articles or papers concerning Consultant’s own research work in the Field, the
content of which is based on Confidential Information first received from OSI, Consultant shall
submit such proposed presentations, articles and papers to OSI for its review and possible action
to protect OSI’s patent rights at least ninety (90) days prior to Consultant’s proposed publication
or disclosure date. OSI will promptly review Consultant’s proposed presentations or publications.
If OSI can do so without compromising its present or potential patent rights, OSI shall waive all
or a portion of such 90-day period. OSI further agrees to review portions of proposed presentations
and publications as Consultant makes such portions available, and to conduct its review of such
portions in a manner comparable to its review of complete proposed presentations and publications.

7. Representation and Warranties. Consultant represents and warrants to OSI that:

     (a) Consultant has the full right, power and authority to enter into this Agreement and
perform its obligations hereunder without the consent of any third party and without breach of any
agreements with or obligations to any third party;

     (b) to Consultant’s knowledge, OSI may freely use, practice, reproduce, distribute, make and
sell all IP Rights and any other advice, data, information, inventions, works of authorship or
know-how that Consultant conveys or provides hereunder, without restriction and without infringing
or misappropriating any third party (e.g., a university or corporation) intellectual property or
other rights;

     (c) Consultant will not grant, transfer, assign or convey, directly or indirectly, any right,
title or interest in or to any IP Rights to any third party;

     (d) Consultant has not entered and will not enter into any agreement with or obligation to a
third party (e.g., a university or corporation) inconsistent, incompatible, or conflicting with its
obligations under this Agreement; and

     (e) Consultant will inform OSI immediately of any contracts or subject matter with which
Consultant or members of Consultant’s family are engaged in that may in any way raise a conflict of
interest between Consultant and OSI.

8. Indemnification. Each party will defend, indemnify and hold harmless the other party, its
officers, directors, employees and agents from and against any and all losses, liabilities,
damages, expenses and costs (including reasonable attorney’s fees) (“Losses”) directly caused by or
resulting from a material breach of this Agreement by such party, except to the extent such Loss
was caused by the gross negligence or willful misconduct of the party (including its officers,
directors, employees and agents) seeking indemnification. Each party will notify the other party
promptly upon learning of a claim, demand, suit, or proceeding that might give rise to a Loss, and
the potentially indemnifying party may control defense and settlement thereof provided it does so
diligently, in good faith and using reasonably experienced counsel with expertise in the relevant
field. The potentially indemnified party will reasonably cooperate in such defense and/or
settlement at the potentially indemnifying party’s request and expense and may participate at its
own expense using its own counsel.

9. Waiver and Release. Except with respect to compensation set forth in Section 3, Consultant
hereby waives, fully releases and forever discharges OSI and its agents, employees, successors and

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assigns from and against any and all demands, claims, actions, causes of action, rights, suits,
covenants, contracts and agreements of any kind, known or unknown, absolute or contingent,
determined or speculative, both in law and in equity, brought or made by or on behalf of
Consultant, arising out of Consultant’s services under and pursuant to the Agreement.

10. Term and Termination.

     (a) The initial term of this Agreement shall commence on the Effective Date and expire one
year from the Effective Date unless earlier terminated under this Section 10.

     (b) Either party may terminate this Agreement for a material breach by the other party upon
thirty (30) days’ written notice specifying the breach unless such breach is cured within such
30-day period.

     (c) OSI may terminate this Agreement (i) upon thirty (30) days’ written notice on the basis of
business, financial or regulatory conditions pertaining to OSI or its product(s) or program(s) that
are the subject of the Services.

     (d) Either party may terminate this Agreement at will upon sixty (60) days’ written notice.

     (e) Expiration or termination of this Agreement shall not affect accrued rights or obligations
of the parties. Sections 4, 5, 6, 7(c), 7(d), 8, 9, 10(e), 10(f) and 11 shall survive termination
or expiration of this Agreement.

     (f) If Consultant and OSI continue or re-establish consulting after expiration of this
Agreement without a subsequent written consulting agreement, the terms and conditions of this
Agreement shall be construed by course of conduct to have been renewed or reinstated for an
additional period equal to the length of such further consulting.

11. General.

     (a) This Agreement shall be interpreted and enforced in accordance with the laws of the State
of New York, regardless of any choice of law principles. The parties will submit any dispute or
claim arising under this Agreement to the exclusive jurisdiction of the U.S. federal or New York
state courts within the New York counties of New York or Nassau, and the parties hereby submit to,
and waive any objection to, personal jurisdiction and venue in such courts for such purpose.

     (b) Any purported assignment or delegation by Consultant of this Agreement in whole or in part
without the prior written consent of OSI shall be void. OSI has the unconditional right to assign
this Agreement if there is no resulting material change in the scope of the Services. This
Agreement shall be binding upon the parties, their successors and their permitted assigns.

     (c) All notices under this Agreement shall be in writing and shall be deemed given upon
personal delivery, delivery by internationally- or nationally-recognized bonded courier service, or
seven (7) days after sending by certified or registered mail, postage prepaid and return receipt
requested, to the following addresses of the respective parties or such other address as given by
notice under this Section 11(c):

	 	 	 
	OSI:

	 	OSI Pharmaceuticals, Inc.

At the address set forth at the beginning of this Agreement

Attention: General Counsel
	 
	 	 
	Consultant:

	 	Bob Pinedo, MD, PhD 

At the address set forth in the records of the Company

     (d) Consultant agrees to abide by the terms of OSI’s insider trading policy, Statement of
Company Policy on Securities Trades By Company Personnel and Directors.

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     (e) During the term of this Agreement, Consultant will not (i) improperly use or disclose any
proprietary information or trade secrets of any former or concurrent employer or other person or
entity and (ii) bring onto the premises of OSI any unpublished document or proprietary information
belonging to any such employer, person or entity unless consented to in writing by such employer,
person or entity.

     (f) Consultant recognizes that OSI has received and in the future will receive from third
parties their confidential or proprietary information subject to a duty on OSI’s part to maintain
the confidentiality of such information and to use it only for certain limited purposes.
Consultant agrees to hold all such confidential or proprietary information in the strictest
confidence and not to disclose it to any person, firm or corporation or to use it except as
necessary in carrying out Consultant’s work for OSI consistent with the OSI’s agreement with such
third party.

     (g) This Agreement sets forth the complete, final and exclusive agreement between the parties
and supersedes and terminates all prior agreements and understandings between the parties. No
amendment to, or waiver of right under, this Agreement is effective unless in writing signed by
authorized representatives of the parties. No waiver by a party of any breach of this Agreement
shall be a waiver of any preceding or succeeding breach. No waiver by a party of any right under
this Agreement shall be construed as a waiver of any other right. If any provision of this
Agreement is judicially or administratively determined to be unenforceable, the provision will be
reformed to most nearly approximate the parties’ original intent, but otherwise this Agreement will
continue in full force and effect.

     (h) Consultant’s relationship with OSI will be that of an independent contractor, and nothing
in this Agreement shall be construed to create a partnership, joint venture, or employer-employee
relationship. Consultant is not the agent of OSI and is not authorized to make any representation,
contract, or commitment on behalf of OSI. Consultant will be solely responsible for all tax returns
and payments required to be filed with or made to any federal, state or local tax authority with
respect to Consultant’s performance of services and receipt of fees under this Agreement. If
Consultant is a natural person, (i) Consultant will not be entitled to any of the benefits that OSI
may make available to OSI employees, such as group insurance, profit-sharing or retirement
benefits, and (ii) Consultant shall be solely responsible for reporting and withholding of payroll
taxes. Consultant accepts exclusive liability for complying with all applicable laws governing
self-employed individuals, including obligations such as payment of taxes and other contributions
based on fees paid to Consultant, its agents or employees under this Agreement, and will defend,
indemnify and hold harmless OSI from and against any and all such taxes or contributions, including
penalties and interest.

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

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     The parties hereto have entered into this Agreement as of the Effective Date by their duly
authorized representatives.

	 	 	 	 	 	 	 	 	 
	CONSULTANT	 	 	 	OSI PHARMACEUTICALS, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	          /s/
 

	 	 	 	By:
	 	          /s/
 

	 	 
	 
	 	 	 	 	 	 	 	 
	H.M. (Bob) Pinedo, M.D., Ph.D.

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 

6EX-10.61

 

Exhibit 10.61

Compensatory Arrangements for Non-Employee Directors

     OSI Pharmaceuticals, Inc. (“OSI” or the “Company”) compensates its non-employee directors for
service on the Company’s Board of Directors (the “Board”) with both cash and equity compensation
upon initial election and annual election to the Board. In 2007, the Compensation Committee of the
Board (the “Committee”) engaged Radford Consulting (“Radford”), its independent compensation
consultant, to evaluate OSI’s Board compensation. Upon evaluation and review, Radford, the
Committee and the Board determined that the compensation structure should be revised in order to
(1) better align Board members’ compensation with their responsibilities and (2) align Board
compensation with the more typical practices at peer companies. OSI’s current Board compensation
provides greater compensation upon initial election to the Board as opposed to subsequent
elections. Pursuant to Radford’s recommendation and the Committee’s and Board’s review, the Board
approved changes to the compensation structure (1) to compensate the Chairs of Board committees and
service on more than one committee and (2) in general, to decrease the amount of compensation upon
initial election to the Board and increase the amount of annual compensation. The Board approved
the changes effective beginning the date of the Company’s 2008 Annual Meeting of Stockholders in
June (the “Annual Meeting”). In addition, in order to be more equitable and avoid any windfalls,
the Board approved a requirement that all members of the Board elected to the Board prior to the
Annual Meeting must serve at least three years on the Board before they are eligible to receive the
increases to their annual equity grants described below.

Annual Retainer Fee:

     The annual cash retainer fee payable to the members of the Board until the Annual Meeting is
set forth in the table below.

	 	 	 	 	 
	Chair of the Board
	 	$	150,000	 
	Chair of the Audit Committee
	 	$	90,000	 
	Member of the Audit Committee
	 	$	75,000	 
	Member of Other Board Committee
	 	$	62,500	 

     The annual cash retainer fee payable to the members of the Board of Directors effective after
the Annual Meeting is set forth in the table below.

	 	 	 	 	 
	Baseline
Cash Compensation                      
	 	 	 	 
	 
	Board Member Retainer Fee

	 	$	50,000	 
	 
	 	 	 	 
	Additional
Cash Compensation                  
	 	 	 	 
	 
	Chair of Board

	 	$	100,000	 
	Chair of Audit Committee

	 	$	30,000	 
	Chair of Compensation Committee

	 	$	15,000	 
	Chair of Corporate Governance and Nominating Committee

	 	$	10,000	 
	Chair of All Other Committees

	 	$	10,000	 
	Member of Audit Committee

	 	$	15,000	 
	Member of Compensation Committee

	 	$	7,500	 
	Member of Corporate Governance and Nominating Committee

	 	$	5,000	 
	Member of All Other Committees (excluding the Executive Committee)

	 	$	5,000	 

 

 

Option Grants and Other Stock Awards:

Initial Grants

     Each non-employee director receives an initial grant of options upon his or her initial
election to the Board. Until the Annual Meeting, each individual who becomes a director with the
exception of the Chairman of the Board receives an initial option to purchase 25,000 shares of
common stock and an award of 8,500 shares of restricted stock, restricted stock units or deferred
stock units. Until the Annual Meeting, the Chairman receives an additional grant of options to
purchase 25,000 shares of common stock and an additional award of 8,500 shares of restricted stock,
restricted stock units or deferred stock units. After the Annual Meeting, each individual who
becomes a director will receive an option to purchase 15,000 shares of common stock and an award of
5,000 shares of restricted stock, restricted stock units or deferred stock units upon his or her
initial election to the Board.

Annual Grants

     In addition to initial equity awards, non-employee directors receive annual equity grants.
Until the Annual Meeting, non-employee directors with the exception of the Chairman of the Board
receive an option to purchase 3,000 shares of common stock and an award of 1,500 shares of
restricted stock, restricted stock units or deferred stock units. Until the Annual Meeting, the
Chairman of the Board receives an option to purchase 6,000 shares of common stock and an award of
3,000 shares of restricted stock, restricted stock units or deferred stock units. After the Annual
Meeting, each non-employee director will receive options to purchase 7,500 shares of common stock
and an award of 2,500 shares of restricted stock, restricted stock units or deferred stock units
upon each re-election for a one-year Board term so long as each current director has served 3 years
on the Board. After the Annual Meeting, the Chairman will receive options to purchase 10,000
shares of common stock and an award of 4,000 shares of restricted stock, restricted stock units or
deferred stock units upon re-election for a one-year Board term.

Forms of Awards

     The restricted stock and restricted stock units represent the right of a director to receive
one share of OSI common stock upon vesting. Each deferred stock unit represents the right of a
director to receive one share of OSI common stock upon the earlier of the director’s termination
from service on the Board or on a date no earlier than two years from the date of grant, as
designated by the director.

       The stock option awards and restricted stock awards, including restricted stock units and
deferred stock units, granted to the directors after June 14, 2006 vest annually over four years of
the date of grant. The option awards expire on the seventh anniversary of their respective grant
dates, subject to the earlier expiration upon the occurrence of certain events set forth in the
Company’s Amended and Restated Stock Incentive Plan. The exercise price of all option awards is
equal to 100% of the fair market value of the underlying common stock on the date of grant.

Post-Retirement Medical Benefits:

     Prior to April 2007, we provided post-retirement medical and life insurance benefits to
eligible employees and qualified dependents, and members of our Board of Directors. Eligibility was
based on age and service requirements. These benefits are subject to deductibles, co-payment
provisions and other limitations. In April 2007, we terminated this benefit and grandfathered the
directors who were eligible for participation in the plan at the time of termination (Mr. White and
Drs. Mehta and Granner).

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