CONSULTING AGREEMENT
Exhibit 10.1
This Consulting Agreement (“Agreement”), effective as of April 1, 2008 (the “Effective Date”), is
made by and between Maxygen, Inc., a corporation formed under the laws of the State of Delaware,
with offices at 000 Xxxxxxxxx Xxxxx, Xxxxxxx Xxxx, XX 00000 (the “Company”) and Xxxxxxx Xxxxxx, an
individual (the “Consultant”).
BACKGROUND
The Consultant is formerly the General Counsel of the Company and has knowledge and expertise
regarding the business of the Company. The Company desires to have the Consultant provide
consulting services to the Company, and the Consultant is willing to provide such consulting
services and assistance, on the terms and conditions set forth below. Accordingly, the parties
hereto hereby agree as follows:
1. Consulting Services.
1.1 The Consultant shall advise the Company and its Affiliates and their respective
management, employees and agents regarding the business of the Company. The Consultant shall at
all times retain the right to control the manner and means of performance hereunder; provided,
however, that the Consultant shall at all times provide the services and otherwise perform his
obligations hereunder in a professional manner, with reasonable skill and care and in accordance
with the terms and conditions of this Agreement.
1.2 From time to time during the term of this Agreement (including any extension or renewal
term thereof) upon request by the Company, the Consultant shall provide consulting and advisory
services to the Company and its Affiliates and their respective management, employees and agents at
reasonable times agreed upon by the Consultant and the Company at the Company’s offices, or such
other locations as may be agreed upon by the Consultant and the Company. Such consultation may be
provided by telephone, by electronic mail, by audioconference, by videoconference and/or through
written correspondence.
2. Consideration; Payment.
2.1 In consideration for consulting services provided by the Consultant to the Company
hereunder, the Company shall pay to the Consultant a consulting fee of three hundred and fifty U.S.
Dollars (US$350) per hour for each hour devoted to consulting for the Company as provided hereunder
(“Consulting Hour”). Unless otherwise agreed to in writing by the parties, the Consultant’s
consulting time shall not include travel time.
2.2 In addition to any consulting fees due to the Consultant pursuant to Section 2.1 above,
the Company will reimburse reasonable out-of-pocket expenses (including reasonable travel expenses)
actually incurred by the Consultant in the course of performing the consulting services hereunder,
in compliance with the Company’s travel policies for its officers and subject to customary written
verification of such expenses in a form reasonably satisfactory to the Company, within thirty (30)
business days after the Company’s receipt from the Consultant of a proper written invoice
therefore.
2.3 The Consultant shall provide to the Company a written invoice of any services provided by
Consultant and the date and time spent on such consulting services.
2.4 In consideration for the consulting services provided by the Consultant to the Company
hereunder, during the term of this Agreement, the stock option grants listed on Exhibit A made to
Consultant prior to the Effective Date of this Agreement that are fully vested as of March 31, 2008
shall continue to be exercisable by Consultant during the term of this Agreement and for ninety
(90) days thereafter, in each case, in accordance with the terms of the applicable grant. Such
stock options shall continue to be subject to the terms of the Maxygen, Inc. 1997 Stock Option Plan
and/or the Maxygen, Inc. 2006 Equity Incentive Plan, as applicable. The exercise price of any
and/or all of such options may be paid for in cash, check, net exercise and/or surrender of other
common shares of the Company. All other stock options granted to the Consultant by the Company,
vested and/or unvested, shall terminate as of the Effective Date. No stock options granted to
Consultant prior to the Effective Date will continue to vest during the term of this Agreement.
2.5 The Consultant will not be eligible for, nor will participate in, any health, pension, or
other employee benefit plan sponsored or established by the Company for the benefit of its
employees.
3. Term and Termination.
3.1 The term of this Agreement will begin on the Effective Date and will continue in full
force and effect until December 31, 2008 unless earlier terminated as provided in Sections 3.2 and
3.3 below or extended or renewed pursuant to Section 3.4 below (the “Term”).
3.2 Either party may terminate this Agreement for any reason or no reason with at least ninety
(90) days written notice of termination to the other party.
3.3 This Agreement will terminate automatically upon the Consultant’s death, or in the event
the Consultant becomes disabled and such disability substantially impairs the Consultant’s ability
to carry out his or her obligations hereunder. In such case, the Company’s obligation to pay
ceases after the date of termination, except for those services actually performed on or prior to
the date of such termination.
3.4 This Agreement may be extended or renewed for additional agreed upon periods upon the
written agreement of the parties.
4. Certain Other Contracts.
4.1 The Consultant shall not disclose to the Company, or bring onto the Company’s premises, or
induce the Company to use, any information that the Consultant is obligated to keep confidential
pursuant to an existing agreement with any third party, and nothing in this Agreement will be
construed to impose any obligation on the Consultant to the contrary.
4.2 The Consultant shall not perform consulting work hereunder on time that the Consultant is
required to devote to any third party. The Consultant shall not use the funding, resources and
facilities of any third party to perform consulting work hereunder and shall not perform the
consulting work hereunder in any manner that would give any third party rights to the product of
such work.
4.3 The Consultant has disclosed and, during the term of this Agreement (including any
extension or renewal term thereof), shall continue to disclose to the Chief Executive Officer of
the Company, or his designee, any conflicts between this Agreement and any other agreements or
obligations binding the Consultant.
2
4.4 The Consultant acknowledges that the Company has not made any agreement or commitment, or
offered to the Consultant any such agreement or commitment, (i) to have the Consultant perform any
additional services, (ii) to make any other payments to the Consultant, or (iii) to enter into any
other agreement with or commitment to the Consultant.
5. Inventions and Documents; Assignment.
5.1 The Consultant shall promptly and fully disclose to the Chief Executive Officer of the
Company (or his designee) any and all work product and intellectual property, including without
limitation any invention, improvement, algorithm, code, discovery, process, know-how, design right,
copyright, mask work, formula, technique, method, and/or trade secret, whether or not patentable,
whether or not copyrightable, made, discovered, conceived, developed, generated, contributed to, or
first reduced to practice by the Consultant, either alone or jointly with others, while performing
or arising from the services provided hereunder (collectively, “Inventions”). The Consultant
understands and agrees that all Inventions are and shall remain the exclusive property of the
Company and shall be treated as Confidential Information (as defined in Section 6 below). The
Consultant agrees to assign and hereby assigns to the Company (or its designee) all right, title
and interest in and to any such Inventions. The Consultant shall execute all instruments necessary
to perfect the assignment of such Inventions to the Company (or its designee) and to enable the
Company or its designee to apply for, obtain, and enforce patents, copyrights and other
intellectual property rights in any and all countries on such Inventions. The Consultant hereby
irrevocably designates the Secretary of the Company as the Consultant’s agent and attorney-in-fact
to execute and file any such document and to do all lawful acts necessary to apply for and obtain
such patents, copyrights and other intellectual property rights, and to enforce the Company’s
rights (or the rights of its designee) under this paragraph.
5.2 The parties acknowledge that all original works of authorship, including but not limited
to computer software, which are made by the Consultant within the scope of the consulting services
provided to the Company hereunder and which are protectable by copyright shall be “works made for
hire” within the meaning of the Copyright Law of the United States of America and its related laws
contained in Title 17 of the United States Code and are hereby assigned to Company (or its
designee) pursuant to such laws; provided, however, that in no event shall anything in this
Agreement be construed to render the Consultant an employee of the Company under any state or local
labor or employment laws.
5.3 All documents, data and/or other records provided by or obtained from the Company or
created as a result of the consulting services provided hereunder, including any summary, abstract
or excerpt thereof, (the “Documents”) are, will be and shall remain the Company’s sole property and
must be promptly returned to the Company when this Agreement expires or terminates, as the case may
be. Any copyright in such Documents and any other documents of any other work prepared for the
Company by the Consultant shall be solely owned by the Company.
5.4 No royalty or other payment will be due to the Consultant in respect of any Inventions or
the assignment thereof to the Company.
5.5 This Section 5 will survive the expiration or termination of this Agreement.
6. Confidentiality.
6.1 The Consultant acknowledges that, during the course of performing the consulting services
hereunder, confidential and proprietary information (i) owned by the Company and/or its
3
Affiliates (e.g., technical information, business plans, identification or characterization of
biological or other materials, results and/or design of experiments and/or preclinical or clinical
testing, financial analysis or marketing plans), and/or (ii) received by the Company and/or its
Affiliates in confidence from one or more third parties, may, in each case, be disclosed to the
Consultant by or on behalf of the Company, and that in connection with the consulting activities
conducted by Consultant under this Agreement the Consultant will be developing information and
creating work product related to the Field (e.g. inventions, projects, products, potential
customers, personnel, business plans, finances and/or other commercially valuable information). All
such information described in the previous sentence, whatever its form or medium (whether in
written, oral, electronic, or graphic format), shall be referred to as “Confidential Information.”
The Consultant acknowledges and agrees that the Company’s business area is extremely competitive,
that the success of the Company’s business is dependent in part upon the maintenance of secrecy of
Confidential Information, and that any disclosure of the Confidential Information would result in
serious harm to the Company.
6.2 The Consultant agrees that the Confidential Information of the Company will be used by the
Consultant only in connection with the consulting services hereunder, and will not be used in any
way that is detrimental to the Company.
6.3 The Consultant agrees to hold in strict confidence and not to disclose, directly or
indirectly, the Confidential Information of the Company to any third person or entity, other than
representatives or agents of the Company.
6.4 The term “Confidential Information” does not include information to the extent that it (i)
is or becomes generally available to the public other than through breach of this Agreement or
other wrongful act by the Consultant, (ii) was already lawfully within the Consultant’s possession
prior to being furnished to the Consultant by or on behalf of the Company hereunder, or (iii)
becomes available to the Consultant on a nonconfidential basis from a third party who has no
obligation of confidentiality to the Company or any of its Affiliates. Specific Confidential
Information shall not be deemed to be within any of the foregoing exclusions merely because it is
within the scope of more general information within one or more of the exclusions. Further, any
combination of Confidential Information (whether or not combined with non-confidential information)
shall not be deemed to be within the above exceptions merely because one or more individual items
of Confidential Information are within the above exceptions.
6.5 The Consultant may disclose any Confidential Information that is required to be disclosed
by applicable law, government regulation or court order; provided that if any such disclosure is
required, the Consultant shall give the Company reasonable advance notice of any such contemplated
disclosure so that the Company may seek a protective order or take other action reasonable in light
of the circumstances to prevent and/or limit the scope of any such disclosure.
6.6 Upon expiration or termination of this Agreement, the Consultant will promptly return to
the Company or, at the Company’s request, destroy (and provide to the Company written confirmation
of such destruction) all materials containing Confidential Information as well as data, records,
reports and other property, furnished by the Company to the Consultant or produced by the
Consultant in connection with services rendered hereunder, together with all copies, excerpts,
summaries and abstracts of any of the foregoing. Notwithstanding such return or destruction, as
the case may be, the Consultant shall continue to be bound by the terms and conditions of this
Section 7 for a period of five (5) years after the termination or expiration of this Agreement.
This Section 7 shall
4
survive the termination or expiration of this Agreement (including any extension or renewal
term thereof).
7. Use of Equipment and Facilities. If, at any time, the Consultant is required to work at
any of the Company’s premises or use any of its equipment, the Consultant will comply with all
relevant health, safety and security regulations and related instructions issued by the Company.
8. Use of Name. It is understood by the Consultant that the name of the Consultant may
appear in disclosure documents required by securities laws, and in other regulatory and
administrative filings in the ordinary course of the Company’s business.
9. No Conflict; Valid and Binding. The Consultant warrants and represents that (i) neither
the execution of this Agreement nor the performance of the Consultant’s obligations under this
Agreement will result in a violation or breach of any other agreement by which the Consultant is
bound, (ii) the Consultant has the legal power and authority and right to enter into and perform
under this Agreement without violating the rights or obtaining the consent of any third party, and
(iii) the Consultant is entering this Agreement as principal and not as agent for any other party.
The Company represents that this Agreement has been duly authorized and executed and is a valid and
legally binding obligation of the Company.
10. Notices. Any notice provided under this Agreement shall be in writing and shall be
deemed to have been effectively given (i) upon receipt when delivered personally, (ii) one day
after sending when sent by private courier service (such as Federal Express), or (iii) five (5)
days after sending when sent by first-class mail (postage prepaid), in each case to the applicable
address noted herein above or to other such address as may have been last designated by the Company
or the Consultant by written notice to the other party as provided herein.
11. Independent Contractor; Withholding.
11.1 The parties agree that the Consultant will at all times be an independent contractor, and
not an agent or an employee, in the performance of the consulting services hereunder, and nothing
in this Agreement shall be construed or have effect as constituting any relationship of employer
and employee or of partnership between the Company and the Consultant. The Consultant does not
have the power or authority to bind the Company or to assume or create any obligation or
responsibility, express or implied, on the Company’s behalf or in the Company’s name, and the
Consultant shall not represent to any person or entity that the Consultant has such power or
authority. Consultant shall not act as an agent nor be deemed to be an employee of the Company for
the purposes of any employee benefit program, unemployment benefits, or otherwise.
11.2 The Consultant shall provide the Company with his United States Tax Identification Number
(TIN) upon execution of this Agreement. The Company shall provide the Consultant with an Internal
Revenue Service (IRS) Form 1099 in connection with the performance of the services hereunder. The
Consultant recognizes that no amount will be withheld by the Company from the Consultant’s
compensation for payment of any federal, state, or local taxes or related payroll deductions of any
country, and that the Consultant has sole responsibility to pay all such taxes, if any, and file
all such returns as may be required by applicable laws and regulations with respect to the
Consultant’s performance of the consulting services hereunder and receipt of fees under this
Agreement, and the Consultant shall indemnify and hold harmless the Company from the Consultant’s
failure to do so.
5
12. Assignment; Successors and Assigns. Due to the personal nature of the services to be
rendered by the Consultant hereunder, the Consultant may not assign this Agreement nor subcontract
any of the consulting services to be performed under this Agreement. The Company may assign all
its rights and liabilities under this Agreement to any of its Affiliates or to a successor to all
or a substantial part of its business or assets without the consent of the Consultant. Subject to
the foregoing, this Agreement will inure to the benefit of and be binding upon each of the assigns
and successors of the respective parties.
13. Advice of Counsel. Each party represents that it has voluntarily executed this
Agreement having read and fully understood it, and after having the opportunity to freely consult
with counsel or other advisor(s) of each party’s choice, and each acknowledges and agrees that this
Agreement shall not be deemed to have been drafted by one party or the other and will be construed
accordingly.
14. Severability. If any provision of this Agreement shall be declared invalid, illegal or
unenforceable, such provision shall be severed and the remaining provisions shall continue in full
force and effect.
15. Remedies. The Consultant acknowledges that the Company would have no adequate remedy
at law to enforce Sections 5 and/or 6 hereof. In the event of a violation by the Consultant of
such Sections notwithstanding, the Company shall have the right to obtain from a court of competent
jurisdiction injunctive relief and/or other similar equitable remedies for any such violation,
without the requirement of posting bond or other similar measures.
16. Indemnity. The Company shall indemnify, defend and hold harmless the Consultant, from
and against all expenses and liabilities arising from any claim or proceeding brought by any third
party, including any shareholder of the Company, based on or relating to any services performed by
Consultant for the Company pursuant to this Agreement, except to the extent that such expense or
liability is due to the negligence or willful misconduct of Consultant. In the event that
Consultant becomes aware of any claim or proceeding he believes is subject to this Section 16 he
shall promptly notify the Company and cooperate fully with the Company and its counsel in the
defense and/or settlement of any such claim or proceeding. This Section 16 shall survive the
termination or expiration of this Agreement (including any extension or renewal term thereof).
17. Arbitration. The parties hereby agree that any dispute arising under this Agreement,
or in connection with any breach thereof, shall be finally resolved through binding arbitration
conducted in San Francisco, California, in accordance with the Commercial Arbitration Rules of the
American Arbitration Association by one (1) arbitrator appointed in accordance with such Rules.
The arbitrator shall determine what discovery will be permitted, and shall not order or require
discovery against either party of a type or scope that is not permitted against the other party
because of differences in applicable law. The costs of the arbitration shall be shared equally by
the parties, and each party shall bear its own costs and attorneys’ and witness’ fees. No punitive
damages may be granted by the arbitrator. The parties agree that the arbitrator’s decision shall
be the sole, exclusive and binding remedy between them regarding any and all disputes,
controversies, claims and counterclaims presented to the arbitrator.
18. Governing Law; Entire Agreement; Amendment. This Agreement shall be governed by the
laws of the State of California without reference to the conflicts of laws principles, represents
the entire understanding of the parties with respect to the subject matter hereof, supersedes and
cancels all prior agreements, understandings, arrangements or representations between the parties
with respect to the consulting services to be provided hereunder, and may only be amended by
written agreement of
6
the parties. Notwithstanding the above, the parties agree that certain Confidential Information,
Secrecy and Invention Agreement entered by the Company and Consultant effective September 29, 1999
shall remain in full force and effect.
19. Headings. The underlined headings contained in this Agreement are for convenience of
reference only, shall not be deemed to be part of this Agreement, and shall not be referred to in
connection with the construction or interpretation of this Agreement.
20. Definition of Affiliates. In this Agreement, “Affiliates” means any and all
corporations or other business entities which (directly or indirectly) control, are controlled by,
or are under common control with the Company.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
UNDERSTOOD AND AGREED:
| MAXYGEN, INC. | CONSULTANT: | ||||||
| By: | /s/ Xxxxx Xxxxx | Signature: | /s/ Xxxxxxx Xxxxxx | ||||
| Name: | Xxxxx Xxxxx | Name: | Xxxxxxx Xxxxxx | ||||
| Title: | Chairman of the Board | ||||||
7
EXHIBIT A
STOCK OPTION GRANTS
| Grant # | Grant Date | Plan/Type | Shares | Exercise Price | ||||||||||||
003633 |
7/2/2007 | 2006 Plan/NQ | 50,000 | $8.66 | ||||||||||||
003541 |
1/3/2007 | 2006 Plan/NQ | 50,000 | $10.64 | ||||||||||||
003401 |
7/3/2006 | 2006 Plan/NQ | 43,750 | $7.53 | ||||||||||||
003375 |
1/3/2006 | 1997 Plan/NQ | 43,750 | $7.89 | ||||||||||||
003289 |
7/1/2005 | 1997 Plan/NQ | 50,000 | $7.00 | ||||||||||||
003294 |
7/1/2005 | 1997 Plan/NQ | 30,000 | $7.00 | ||||||||||||
3110 |
1/3/2005 | 1997 Plan/NQ | 50,000 | $12.17 | ||||||||||||
3115 |
1/3/2005 | 1997 Plan/NQ | 30,000 | $12.17 | ||||||||||||
97714 |
7/19/2004 | 1997 Plan/NQ | 82,500 | $9.55 | ||||||||||||
97708 |
1/2/2004 | 1997 Plan/NQ | 82,500 | $10.41 | ||||||||||||
97702 |
7/1/2003 | 1997 Plan/NQ | 43,750 | $10.76 | ||||||||||||
97694 |
4/1/2003 | 1997 Plan/NQ | 43,750 | $7.29 | ||||||||||||
97689 |
1/17/2003 | 1997 Plan/NQ | 87,500 | $7.40 | ||||||||||||
97683 |
10/1/2002 | 1997 Plan/NQ | 22,054 | $6.74 | ||||||||||||
97675 |
7/1/2002 | 1997 Plan/NQ | 22,054 | $10.51 | ||||||||||||
97668 |
4/1/2002 | 1997 Plan/NQ | 22,054 | $12.44 | ||||||||||||
97661 |
1/18/2002 | 1997 Plan/NQ | 22,054 | $14.14 | ||||||||||||
545 |
4/26/2001 | 1997 Plan/NQ | 25,000 | $13.15 | ||||||||||||
Total |
800,716 | |||||||||||||||
8
