Document:

CONSULTING AGREEMENT

EXHIBIT 10.21

 

CONSULTING AGREEMENT

This Agreement is made and entered into this 1st

day of January 2001, by and between BioSante Pharmaceuticals, Inc., a Delaware

corporation, 111 Barclay Blvd., Lincolnshire, Illinois 60069 (“BioSante”) and

Scientific Research Development Corporation, an Illinois corporation, 14308 W.

Braemore Close, Libertyville, Illinois 60048 (“SRDC”).

WITNESSETH:

Whereas, SRDC desires to be retained as a consultant

to BioSante and BioSante desires to retain SRDC on all of the terms and

conditions hereof.

Now, therefore, in consideration of the promises,

covenants and agreements hereinafter contained, the sufficiency of which is

hereby acknowledged, the parties agree as follows:

1.           Duties of SRDC

 

SRDC agrees to consult for and on behalf of BioSante when expressly

called upon by the management of BioSante, and services will include, but not

be limited to, statistical consultation, database and statistical programming,

database management, medical writing, and project management.

2.           Compensation

 

a)                                      For bid/proposal-specific services

provided by SRDC under this Agreement, BioSante agrees to compensate SRDC

according to terms of compensation written into a signed amendment to this

Agreement.

b)                                     For services provided “as-needed” by SRDC

under this Agreement (i.e., services not specific to a project bid/proposal),

BioSante agrees to compensate SRDC at the following rates: $125/hour for

statistical consultation, $125/hour for programming, $105/hour for database

management, $105/hour for medical writing, and $105/hour for project

management.

c)                                      SRDC shall prepare and submit every

month, detailed time reports setting forth the type of “as-needed” services

performed, the time spent in performing such service, and the dates the service

was performed.  Payment by BioSante for

SRDC’s services hereunder will be made within thirty (30) days of receipt of

such reports.

3.           Term and Termination

 

a)                                      This Agreement shall be effective on the

date first above written and shall remain in effect through December 31, 2002.

b)                                     Notwithstanding any other provision of

this Agreement, BioSante or SRDC may terminate this Agreement at any time in

the event of a material breach by the other party, immediately upon written

notice to the other party.  Either party

may

 

 

 

                terminate this Agreement without

cause upon giving thirty (30) days prior written notice to the other party.

4.           Governing Law

 

                                                This Agreement shall, in all respects, be

construed under and interpreted in accordance with the laws of the State of

Illinois, without giving effect to its conflicts of laws provisions.

5.           Entirety

 

The terms and

conditions of this Agreement constitute the entire agreement and understanding

of the parties regarding the subject matter hereof, except as noted above, and

supersede all previous communications whether oral or written between the

parties, including any previous agreement or understanding varying or extending

the same.

6.           Enforceability

 

Whenever possible,

each provision of this Agreement will be interpreted in such a manner as to be

effective and valid under applicable law, but in the event of a conflict

between any provision of this Agreement and any applicable law, regulation,

ordinance or decree, the provisions of this Agreement so affected shall be

curtailed and limited to the extent necessary to bring it within the legal

requirements but otherwise it shall not render null and void other provisions

of this Agreement, unless either of the parties, in the absence of the

provision in question, would not have entered into this Agreement.

7.           Miscellaneous

 

SRDC shall be and

act as an independent contractor and not as an agent, employee or partner of,

or joint venture with, BioSante for any purpose.  The rights and benefits of SRDC are personal to it and no such

rights or benefits shall be subject to assignment or transfer by SRDC.

The parties

acknowledge that the material provisions of this written agreement memorialize

unwritten terms under which the parties have operated since January 1, 2001.

IN WITNESS WHEREOF, the parties have executed this

Agreement as of the date first above written.

	

  BIOSANTE

  PHARMACEUTICALS, INC.

  	

   

  	

  SRDC

  
	

   

  	

   

  	

   

  
	

  By:

  	

       /s/ Stephen M. Simes

  	

   

  	

  By:

  	

       /s/ Ronald B. McCright

  	

   

  
	

   

  	

  Stephen M. Simes

  	

   

  	

   

  	

  Ronald B.

  McCright

  
	

   

  	

  President and

  CEO

  	

   

  	

   

  	

  President

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Date:

  	

  3/14/02

  	

   

  	

  Date:

  	

  3/14/02

  	

   

  
								

 

 

2EMPLOYMENT AGREEMENT

EMPLOYMENT

AGREEMENT

This

EMPLOYMENT AGREEMENT (this “Agreement”)  is made as of this 1st day

of October, 2000 (the “Effective  Date”),  by and between BioSante

Pharmaceuticals, inc. (the “Company”) and Steve J.D. Bell (“Employee”).

RECITALS

WHEREAS, Employee is currently an

employee of the Company, and Employee and the Company desire to memorialize the

terms of Employee’s employment with the Company in this Agreement.

NOW, THEREFORE, in consideration

of the mutual covenants and agreements hereinafter set forth, and for other

good and valuable consideration, the receipt and sufficiency of which are

hereby acknowledged, the Company and Employee hereby agree as follows:

ARTICLE I

EMPLOYMENT

SERVICES

1.1.          Employment.  The Company hereby employs Employee as vice

president of research and  pre-clinical development and Employee

hereby accepts such employment, upon the terms and conditions of this

Agreement.

1.2.          Term of Employment.  The term of Employee’s employment under this

Agreement shall be for an initial period commencing on the Effective Date and

ending on October 1, 2001 (the “Initial Term”).  Following the expiration of the Initial Term, this Agreement

shall automatically renew for one-year periods (each such one-year period is

referred to as a “Renewal Term”) and continue until the

earlier of (i) the Company providing Employee thirty (30) days written notice

prior to the expiration of either the Initial Term or any Renewal Term of its

desire to terminate this Agreement or (ii) Employee providing the Company sixty

(60) days prior written notice prior to the end of either the Initial Term or

any Renewal Term of his desire to terminate this Agreement.  The Initial Term and any Renewal Term(s) are

collectively referred to as the “Employment Term.”  Notwithstanding the provisions of this Section 1.2, this

Agreement may be terminated prior to the expiration of the Initial Term or any

Renewal Term in accordance with the provisions of Section 3.1 hereof.

1.3.          Activities and Duties During  Employment.

(a)           Employee

represents and warrants to the Company that he has no other commitments or

obligations of any kind to anyone else which would hinder or interfere with his

acceptance of his obligations hereunder, or the exercise of his best efforts as

an employee of the Company.

(b)           During

the Employment Term, Employee shall diligently perform such duties and

responsibilities consistent with the position set forth in Section 1.1

and the Company’s chief executive officer (the “CEO”), shall from time to

time assign him.

 

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Employee shall be vice president of research and

pre-clinical development of the Company with responsibility as is typical for

executives with a similar title in similar entities, subject to the overall

control and authority of the Company’s CEO and the Company’s board of directors

(the “Board”).

(c)           During

the Employment Term, Employee agrees to devote, on a full time basis, all of

his business hours, attention and skills to the business and affairs of the

Company.

ARTICLE II

COMPENSATION

2.1.          Base Salary.  The Company shall pay Employee an annual

base salary in the amount of One Hundred Thousand and 00/100 Dollars

($100,000.00), payable in accordance with the Company’s standard payroll

practices.  During the Employment Term,

the CEO shall give Employee an annual performance review and the CEO and the

Compensation Committee of the Board shall review the base salary of Employee

annually, and make such adjustments to such base salary as it deems reasonable

and appropriate.

2.2.          Bonus Compensation.  The Company may, at its option, pay Employee

a bonus in cash or otherwise in an amount determined by the CEO, in

consultation with the Compensation Committee of the Board.

2.3.          Withholdings and Deductions.  All compensation payable to Employee

pursuant to this Agreement shall be subject to such withholdings and deductions

by the Company as are required by law.

2.4.          Reimbursement of Expenses.  The Company shall reimburse Employee for all

reasonable and necessary expenses incurred by Employee while performing his

duties under this Agreement, subject to provision by Employee of documentation

satisfactory to the Company.

2.5.          Benefit Plans, Vacation.  During the Employment Term, Employee shall

be entitled to receive all fringe benefits and perquisites and to participate

in all benefit programs normally available to other employees holding positions

similar to that of Employee hereunder (subject to all applicable eligibility

rules thereof), as may be in effect from time to time, including such insurance

or other benefit programs as may be implemented by the Company.  During the Employment Term, Employee shall

be entitled to receive three weeks of paid vacation annually.  Employee’s ability to carry over vacation

from year to year is subject to company policy as described in the Company’s

Employee Handbook.

2.6.          Key-Man

Insurance Policy.  During the

Employment Term, the Company may, in its sole discretion, maintain “key-man”

life insurance coverage (the “Policy”) with respect to Employee.  Employee shall submit to any reasonable

physical exam required.  The Company

shall be the sole beneficiary of the Policy and nothing contained herein or

through any course of dealing shall create any interest of Employee in the

Policy.  At such time as the Company

elects to terminate its ownership of the Policy, it will notify Employee of

said determination and allow him a reasonable period of time to elect to

continue the coverage for his benefit by means of

 

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Employee paying the Company an amount equal to the unamortized prepaid

premium and the cash value of the Policy. 

Thereafter, Employee will be responsible to make all further payments

due under the Policy.

2.7.          Automobile Allowance.  The Company shall provide Employee with a

monthly stipend of Five Hundred and 00/100 Dollars ($500.00) for automobile

use.

ARTICLE III

TERMINATION

3.1.          Termination of Agreement.  Notwithstanding Section 1.2 hereof,

the Employment Term shall terminate immediately upon the occurrence of any of

the following events:  (a) death of

Employee; (b) Legal Disability of Employee, as defined in Section 3.4;

(c) election by the Company to terminate Employee for Cause, as defined in Section

3.2; or (d) by either the Company or Employee for any reason (whether for

Cause or not) upon the giving of sixty (60) days prior written notice to the

other party.

3,2.          Cause.  The term “Cause” as used herein shall

mean any of the following acts or omissions:

(a)           Employee’s theft,

embezzlement or other act of dishonesty;

(b)           A material default by

Employee in the performance or observance of any promise or undertaking of

Employee under this Agreement, including, without limitation, willful failure

to follow instructions of the CEO or the Board, which default shall continue

for a period often (10) days after written notice thereof from the Company to

Employee;

(c)           The commission of an

act or acts by Employee in the performance of his duties hereunder amounting to

gross negligence or willful or wanton misconduct, as determined by the Company

in the exercise of its reasonable judgment; or

(d)           Employee’s conviction

of, guilty or nolo contendre plea to or confession of a Class A-type felony or

a felony involving moral turpitude.

3.3.          Effect of Termination for Cause.  In the event Employee is terminated for

Cause, this Agreement shall immediately terminate and the Company shall owe

Employee no further amounts under this Agreement.

3.4.          Legal

Disability.  For the purposes of

this Agreement, the term “Legal Disability” shall mean the inability

of Employee, due to illness, accident or other physical or mental incapacity,

to perform substantially all of his regular duties as an employee of the

Company for a period (whether continuous or periodic) of six (6) months during

the Employment Term, or a physical or mental incapacity in which there is no

hope of recovery within eight (8) months. 

In the event that there is any dispute as to Employee’s Legal

Disability, a determination shall be made at the written request of either the

Company or Employee sent to the other (and within thirty (30) days after such

request) by a majority of three physicians, one of 

 

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whom shall be selected by Employee, one by the Company and the third by

the two physicians so selected.

3.5           Effect of Termination Upon Death

or Legal Disability.  In the event

Employee is terminated for death or Legal Disability, this Agreement shall

immediately terminate and the Company shall owe Employee, or Employee’s estate,

no further amounts under this Agreement.

3.6.          Effect of Termination Other than

for Cause, upon Death or for Legal Disability.  In the event Employee is terminated other than for Cause or if

this Agreement is not renewed, the Company shall (i) pay Employee a severance

benefit equal to Employee’s base salary for the shorter of (A) six months or

(B) the date upon which Employee obtains full-time employment (such period is

the “Severance

Period”); (ii) continue to allow Employee to participate during the

Severance Period, at the Company’s expense, in the Company’s group health,

dental and disability insurance programs; and (iii) reimburse Employee for any

and all unused vacation days accrued to the date of such termination.  The compensation provided for in this Section

3.6 will constitute Employee’s sole and exclusive remedy for such

termination.  Employee will not be

entitled to any other termination or severance payment which might otherwise be

payable under any other agreement between Employee and the Company or under any

policy of the Company.

3.7.          Property of the Company.  Upon termination of his employment with the

Company, Employee shall surrender to the Company any and all material,

including, but not limited to, manuals, reports, documents, lists of the

Company’s vendors and customers, computer programs, methods of designing such

programs, software, plans, drawings, proposals, designs, product information,

confidential purchasing and market research information, Confidential

Information (as defined in Section 4.2 below) and the like (including

all copies thereof) that he has in his possession, custody or control relating

to the business of the Company, its affiliates or its customers.  Employee acknowledges that all such materials

are and shall remain the property of the Company solely and that Employee has

no right, title or other interest in or to such materials.

ARTICLE IV

RESTRICTIVE

COVENANTS

4.1.          Non-Disclosure of Confidential

Information.  Employee will not at

any time (other than as may be required or appropriate directly in connection

with the performance by him of his duties hereunder), directly or indirectly,

use, communicate, disclose or disseminate any Confidential Information (defined

below) in any manner whatsoever (except as may be required under legal process

by subpoena or other court order).  In

the event disclosure of any Confidential Information is required of Employee

pursuant to the requirements of a government agency, regulation, judicial order

or by operation of law, Employee will notify the Company of the requirement to

make such disclosure as far in advance of the disclosure as is possible and

will assert the confidentiality of such Confidential Information.

4.2.          “Confidential

Information” Defined.  For purposes

of this Agreement, “Confidential Information” shall mean any and all

information (oral or written) relating to the Company or any person

controlling, controlled by, or under common control with the Company

 

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or any of its activities, including, but not limited to, information

relating to: technology, research, test procedures and results, trade secrets,

machinery and equipment; manufacturing processes; financial information;

products; identity and description of materials and services used; purchasing;

costs; pricing; customers and prospects; advertising, promotion and marketing;

and selling, servicing and information pertaining to any governmental

investigation, except such information which is generally in the public domain

(such information not being deemed to be in the public domain merely because it

is embraced by more general information which is in the public domain), other

than as a result of a breach of the provisions of Section 4.1 hereof.

4.3.          Non-Competition.  Employee recognizes and acknowledges that

the business of the Company is highly competitive and that the services to be

performed by Employee for the Company are special and unique.  Employee agrees that, at any time during the

Employment Term (other than with the consent of the Company) and for a period

of (i) one year thereafter if either Employee or the Company elects to

terminate the employment of Employee other than pursuant to Section 3.1(c)

or if this Agreement expires at the end of Employment Term or (ii) three

years thereafter if the employment of Employee is terminated by the Company

pursuant to Section 3.1(c), Employee shall not engage or participate in,

directly or indirectly (whether as an officer, director, employee, partner,

consultant, equityholder, lender or otherwise), any business that makes a

product that competes with the Company’s current or future products, namely,

calcium phosphate adjuvants, calcium phosphate delivery systems or hormone

replacement gel products.

4.4.          Non-Solicitation of Employees.  Employee agrees that, during his employment

and for a period of three years thereafter, Employee shall not, directly or

indirectly, whether for Employee’s account or for any other person or entity,

(i) solicit for employment or hire, or attempt to solicit for employment or

hire, any person who is employed by the Company or any customer of the Company,

or, but for the violation of this Agreement, would have been employed by the

Company or any customer of the Company, or, who was employed by the Company

during the twelve (12) month period immediately preceding termination of the

Employee’s employment with the Company or any customer of the Company or (ii)

otherwise interfere with the relationship between any such person, the Company

and any third party that has a business relationship or a potential business

relationship with the Company including, but not limited to, any customer,

collaborator, licensor or licensee.

4.5.          Remedies.  The Company and Employee hereby agree that

it is impossible to measure solely in money the damages, which will accrue to

the Company by reason of Employee’s failure to observe any of his obligations

wider this Article IV. 

Therefore, if the Company shall institute any action or proceeding to

enforce such obligations or provisions, Employee hereby waives the claim or

defense that there is an adequate remedy at law and agrees in any such action

or proceeding not to interpose the claim or defense that such remedy exists at

law.  Without limiting any other

remedies that may be available to the Company, Employee hereby specifically

affirms the appropriateness of injunctive or other equitable relief in any such

action.

4.6.          Reasonab1e

Limitations.  The parties hereto

stipulate and agree that each of the terms of Article IV of this

Agreement including, but not limited to, the scope of the activities prohibited

and the time limitation, is reasonable. The parties further stipulate and agree

that

 

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in the event a court determines contrary to the agreement of the parties

herein that any of the terms of Article IV of this Agreement are

unreasonable or contrary to public policy, or invalid or unenforceable for any

reason in fact, law or equity, then the court shall limit the application of

any such provision or term or modify any provision or term to that which it

finds reasonable, valid or enforceable and shall enforce this Agreement as so

limited or modified.

ARTICLE V

INVENTIONS

5.1.          Inventions Owned by the Company.  Employee agrees that all Inventions (as

defined in Section 5.2 hereof) Employee has or hereafter makes,

conceives, reduces to practice or authors (either alone or with others) during

or within one year after the termination of the Employment Term will be the

Company’s sole and exclusive property. 

Employee will, with respect to any such Invention: (i) keep current,

accurate, and complete records, which will belong to the Company and be kept

and stored on the Company’s premises while Employee is employed by the Company;

(ii) promptly and fully disclose the existence and describe the nature of the

Invention to the Company in writing (and without request); (iii) assign (and

Employee does hereby assign) to the Company all of Employee’s rights to all

inventions, any applications Employee makes for patents or copyrights in any

country; and (iv) acknowledge and deliver promptly to the Company any written

instruments, and perform any other acts necessary in the Company’s opinion to

preserve property rights in Inventions against forfeiture, abandonment, or loss

and to obtain and maintain patents and/or copyrights on Inventions to vest the

entire right and title to Inventions in the Company.

5.2.          Inventions.  The term “Inventions” as used in

herein, means any discoveries, improvements, creations, ideas and inventions,

including without limitation software and artistic and literary works (whether

or not they can be patented or copyrighted) that:  (i) relate directly to the Company’s business or the Company’s

research or development during the Employment Term, (ii) result from any work

Employee performs for the Company; (iii) use the Company’s equipment, supplies,

facilities or trade secret information; or (iv) Employee develops during any

tune that Employee is obligated to perform his employment duties.

ARTICLE VI

MISCELLANEOUS

6.1.          Notices.  All notices or other communications required

or permitted hereunder shall be in writing and shall be addressed as follows:

If

to Employee:

Dr. Steve J.D. Bell

1046 Swaying Pines Trace

Marietta, Georgia  30066

 

6

If

to the Company:

BioSante Pharmaceuticals, Inc.

175 Olde Half Day Road

Lincolnshire, Illinois  60069

Attention:  Stephen M. Simes

with

a copy to:

Ungaretti & Harris

3500 Three First National Plaza

Chicago, IL  60602

Attention:  Gary I. Levenstein, Esq.

or

to such other address or addresses as may hereafter be specified by notice

given by any of the above to the others. 

Notices mailed in accordance with this Section 6.1 shall be

deemed given (i) the fifth day after they are mailed and (ii) the next day

after they are sent by reputable overnight courier service.

6.2.          Successors and Assigns.  This Agreement shall be binding upon and

inure to the benefit of the parties hereto and their successors and permitted

assigns.  In the case of the Company,

the successors and permitted assigns hereunder shall include without limitation

any affiliate of the Company as well as the successors in interest to such

affiliate (whether by merger, liquidation (including successive mergers or

liquidations) or otherwise).  This

Agreement or any right or interest hereunder is one of personal service and may

not be assigned by Employee.  Nothing in

this Agreement, expressed or implied, is intended or shall be construed to

confer upon any person other than the parties and successors and assigns

permitted by this Section 6.2 any right, remedy or claim under or by

reason of this Agreement.

6.3.          Entire Agreement; Amendments.  This Agreement and the Recitals contain the

entire understanding of the parties hereto with regard to the subject matter

contained herein, and supersede all prior agreements, understandings or letters

of intent between the parties hereto. 

This Agreement shall not be amended, modified or supplemented except by

a written instrument signed by each of the parties hereto.

6.4.          Interpretation.  Article titles and section headings

contained herein are inserted for convenience of reference only and are not

intended to be a part of or to affect the meaning or interpretation of this

Agreement.

6.5.          Expenses.  Each party hereto will pay all costs and

expenses incident to its negotiation and preparation of this Agreement.  Any costs and expenses (including reasonable

attorneys’ fees and costs) incurred by Employer in successfully enforcing this

Agreement including, but not limited to, Sections 4.3 and 4.4, shall be borne

by Employee.

6.6.          Waivers.

Any term or provision of this Agreement may be waived, or the time for its

performance may be extended, by the party or parties entitled to the benefit

thereof.  Any such waiver shall be

validly and sufficiently authorized for the purposes of this Agreement if, as

to any party, it is authorized in writing by an authorized representative of

such party.  The failure of

 

7

any party hereto to enforce at any time any provision of this Agreement

shall not be construed to be a waiver of such provision, nor in any way to

affect the validity of this Agreement or any part hereof or the right of any

party thereafter to enforce each and every such provision.  No waiver of any breach of this Agreement

shall be held to constitute a waiver of any other or subsequent breach.

6.7.          Partial Invalidity.  Wherever possible, each provision hereof shall be interpreted in

such manner as to be effective and valid under applicable law, but in case any

one or more of the provisions contained herein shall, for any reason, be held

to be invalid, illegal or unenforceable in any respect, such provision shall be

ineffective to the extent, but only to the extent, of such invalidity,

illegality or unenforceability without invalidating the remainder of such

invalid, illegal or unenforceable provision or provisions or any other

provisions hereof, unless such a construction would be unreasonable.

6.8.          Execution in Counterparts.  This Agreement may be executed in one or

more counterparts, each of which shall be considered an original instrument,

but all of which shall be considered one and the same agreement.

6.9.          Governing Law.  This Agreement shall be governed by and

construed in accordance with the internal laws (as opposed to the conflicts of

law provisions) of the State of Illinois.

6.10.        Waiver of Jury Trial; Submission to

Jurisdiction.  THE PARTIES HERETO

(i) WAIVE ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION TO ENFORCE OR DEFEND

ANY MATTER ARISING FROM OR RELATED TO THIS AGREEMENT; (ii) IRREVOCABLY

SUBMIT TO THE EXCLUSIVE JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED IN

COOK COUNTY, ILLINOIS, OVER ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY

MATTER ARISING FROM OR RELATED TO THIS AGREEMENT; AND (iii) IRREVOCABLY WAIVE,

TO THE FULLEST EXTENT THEY MAY EFFECTIVELY DO SO, THE DEFENSE OF AN

INCONVENIENT FORUM TO THE MAINTENANCE OF ANY SUCH ACTION OR PROCEEDING.

 

[signature page attached]

 

8

                IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be

executed as of the day and year first above written.

 

	

   

  	

  COMPANY:

  BIOSANTE

  PHARMACEUTICALS, INC.

  
	

   

  
	

  By:

  	

    /s/ Stephen

  M. Simes 

  
	

  Name:

  	

    Stephen M.

  Simes 

  
	

  Its:

  	

    President

  & CEO

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  EMPLOYEE:

   

  
	

   

  	

  /s/ Dr. Steve J.D. Bell

  	

  11-01-2000 

  
	

   

  	

  Dr. Steve J.D. Bell

  	

   

  

 

 

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