CONSULTING AGREEMENT
Exhibit 10.1
This Agreement, made February 27, 2009 and effective as of January 1, 2009 (the “Effective
Date”) by and between Cardiogenesis Corporation, a California corporation, with its principal
place of business at 11 Xxxxxx, Xxxxxx, Xxxxxxxxxx 00000 (the “Company”), and Xx. Xxxxxx Xxxxxxx,
(“Consultant”) located at 0000 Xxxxx Xxxxxx Xxxxxx Xxxxx, Xxxxxx, XX 00000.
RECITAL
Consultant desires to perform, and the Company desires to have Consultant perform, consulting
services as an independent contractor to the Company.
NOW, THEREFORE, the parties agree as follows:
1. Services.
(a) Request. From time to time during the Period of Consultancy (as defined below),
the Company may request Consultant to provide certain services to the Company; provided, however,
that the Company has no obligation to request Consultant to perform any services, and if such a
request is made by the Company, Consultant has no obligation to agree to perform such services.
The Company’s request will be made by use of the form attached hereto as Exhibit A (the
“Project Description”) and will specify the services to be performed and the specific
results to be achieved (the “Services”), each of which Project Descriptions when completed
and signed by the Company and Consultant will become automatically incorporated herein.
(b) Performance. Upon agreement between Consultant and the Company to the specific
Services, compensation and completion date terms by preparation and execution of a Project
Description relating thereto, Consultant will perform the specific Services provided therein.
Consultant agrees to use best efforts to perform the Services during the Period of Consultancy.
(c) Period of Consultancy. The “Period of Consultancy” will commence on the Effective
Date and will terminate on December 31, 2009.
(d) Payment. As sole compensation for the performance of the Services, the Company
will pay Consultant as per the plan outlined in Exhibit A, plus all reasonable out -of -pocket
expenses, including travel. Any expenses incurred by Consultant in performing the Services must be
approved in advance and adhere to Company’s travel policy. Consultant will receive no royalty or
other remuneration on the production or distribution of any products developed by the Company or by
Consultant in connection with or based upon the Services (“Products”).
2. Relationship of Parties.
(a) Independent Contractor. Consultant is an independent contractor and is not an
agent or employee of, and has no authority to bind, the Company by contract or otherwise.
Consultant will perform the Services under the general direction of the Company, but Consultant
will determine, in Consultant’s sole discretion, the manner and means by which the Services are
accomplished, subject to the requirement that Consultant will at all times comply with applicable
law. The Company has no right or authority to control the manner or means by which the Services
are accomplished.
(b) Employment Taxes and Benefits. Consultant will report as self-employment income
all compensation received by Consultant pursuant to this Agreement. Consultant will indemnify the
Company and hold it harmless from and against all claims, damages, losses and expenses, including
reasonable fees and expenses of attorneys and other professionals, relating to any obligation
imposed by law on the Company to pay any withholding taxes, social security, unemployment or
disability insurance, or similar items in connection with compensation received by Consultant
pursuant to this Agreement. Consultant will not be entitled to receive any vacation or illness
payments, or to participate in any plans, arrangements, or distributions by the Company pertaining
to any bonus, stock option, profit sharing, insurance or similar benefits for the Company’s
employees.
3. Property of The Company.
(a) Definitions. For the purposes of this Agreement:
(i) “Designs and Materials” means all designs, discoveries, inventions, products,
computer programs, procedures, improvements, developments, drawings, notes, documents, information
and materials made, conceived or developed by Consultant alone or with others which result from or
relate to the Services.
(ii) “Moral Rights” means any right to claim authorship of a work, any right to
object to any distortion or other modification of a work, and any similar right, existing under the
law of any country in the world, or under any treaty.
(b) Assignment of Ownership. Consultant hereby irrevocably transfers and assigns any
and all of Consultant’s right, title, and interest in and to Designs and Materials, including but
not limited to all patent rights, copyrights, trademarks and trade secrets, to the Company.
Designs and Materials will be the sole property of the Company and the Company will have the sole
right to determine the treatment of any Designs and Materials, including the right to keep them as
trade secrets, to file and execute patent applications on them, to use and disclose them without
prior patent application, to file registrations for copyright or trademark on them in its own name,
or to follow any other procedure that the Company deems appropriate. Consultant will:
(i) disclose promptly in writing to the Company all Designs and Materials
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(ii) cooperate with and assist the Company to apply for, and to execute any applications
and/or assignments reasonably necessary to obtain, any patent, copyright, trademark or other
statutory protection for Designs and Materials in the Company’s name as the Company deems
appropriate, provided that the Company will reimburse Consultant any reasonable costs incurred by
Consultant, and Consultant’s normal billing rate for reasonable time incurred, in connection
therewith; and
(iii) otherwise treat all Designs and Materials as “Confidential Information,” as defined
below. The obligations of Consultant to so disclose, assist, and execute will survive until the
earlier of five years following any expiration or termination of this Agreement, or Consultant’s
death or disability.
(c) Moral Rights Waiver. Consultant hereby irrevocably transfers and assigns to the
Company any and all Moral Rights that Consultant may have in any Services, Designs and Materials or
Products. Consultant also hereby forever waives and agrees never to assert against the Company,
its successors or licensees any and all Moral Rights Consultant may have in any Services, Designs
and Materials or Products, even after expiration or termination of the Period of Consultancy.
4. Confidential Information. Consultant acknowledges that Consultant will acquire
information and materials from the Company and knowledge about the business, products, programming
techniques, experimental work, customers, clients and suppliers of the Company and that all such
knowledge, information and materials acquired, the existence, terms and conditions of this
Agreement, and the Designs and Materials, are and will be the trade secrets and confidential and
proprietary information of the Company (collectively “Confidential Information”).
Confidential Information will not include, however, any information which is or becomes part of the
public domain through no fault of Consultant or that the Company regularly gives to third parties
without restriction on use or disclosure. Consultant agrees to hold all such Confidential
Information in strict confidence, not to disclose it to others or use it in any way, commercially
or otherwise, except in performing the Services, and not to allow any unauthorized person access to
it, either before or after expiration or termination of this Agreement. Consultant further agrees
to take all action reasonably necessary and satisfactory to protect the confidentiality of the
Confidential Information in Consultant’s possession, including, without limitation, implementing
and enforcing operating procedures to minimize the possibility of unauthorized use or copying of
the Confidential Information.
5. Indemnification.
(a) By Consultant. To the extent determined by a tribunal of competent jurisdiction
(arbitral or judicial), not subject to further appeal, Consultant will indemnify the Company and
hold it harmless from and against all claims, damages, losses and expenses, including court costs
and reasonable fees and expenses of attorneys, expert witnesses, and other professionals, arising
out of or resulting from:
(i) any action by a third party against the Company to the extent based on any claim that any
Services performed under this Agreement, or their results, infringe a patent, copyright or other
proprietary right or violate a trade secret; and
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(ii) any action by a third party to the extent based on any negligent act or omission or
willful conduct of Consultant which results in: (i) any bodily injury, sickness, disease or death;
(ii) any injury or destruction to tangible or intangible property (including computer programs and
data) or any loss of use resulting therefrom; or (iii) any violation of any statute, ordinance, or
regulation.
(b) By The Company. To the extent legally permitted, and not in derogation of the
obligations of Consultant under Section 5(a) hereof: (i) Consultant will be considered as subject
to the indemnity provisions of the Company’s Articles of Incorporation and Bylaws, and (ii) the
Company will indemnify Consultant and hold Consultant harmless from and against all claims,
damages, losses and expenses, including court costs and reasonable fees and expenses of attorneys,
expert witnesses, and other professionals, arising out of or resulting from any action by a third
party against the Company or Consultant, or both, in connection with or based upon the performance
by Consultant of the Services, or their result.
6. Termination and Expiration.
(a) Breach. Either party may terminate this Agreement in the event of a breach by the
other party of this Agreement if such breach continues uncured for a period of ten (10) days after
written notice.
(b) At Will. Either party may terminate this Agreement in whole or in part at its
convenience upon ten (10) days written notice to the other party. Such termination shall be
effective in the manner and upon the date specified in said notice and shall be without prejudice
to any claims which one party may have against the other. Upon termination, Company will pay
Consultant those amounts due to Consultant for Services actually completed. Company will also
reimburse those expenses of Consultant which were authorized pursuant to the terms of this
Agreement and which were incurred prior to termination.
(c) Expiration. Unless terminated earlier, this Agreement will expire at the end of
the Period of Consultancy.
(d) No Election of Remedies. The election by either party to terminate this Agreement
in accordance with its terms will not be deemed an election of remedies, and all other remedies
provided by this Agreement or available at law or in equity will survive any termination.
7. Effect of Expiration or Termination. Upon the expiration or termination of this
Agreement for any reason:
(a) Each party will be released from all obligations to the other arising after the date of
expiration or termination, except that expiration or termination of this Agreement will not relieve
Consultant of Consultant’s obligations under Sections 2(b), 3, 4, 5(a), 8, 9(b) and 10 hereof, nor
the Company from its obligations under Section 1 hereof to pay Consultant amounts due but not then
paid, and under Section 5(b) and 10 hereof, nor will expiration or
termination relieve Consultant or the Company from any liability arising from any breach of this
Agreement; and
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(b) Consultant will promptly notify the Company of all Confidential Information, including but
not limited to the Designs and Materials, in Consultant’s possession and, at the expense of Company
and in accordance with the Company’s instructions, will promptly deliver to the Company all such
Confidential Information.
8. Limitation of Liability. IN NO EVENT WILL EITHER PARTY BE LIABLE FOR ANY SPECIAL,
INCIDENTAL, INDIRECT OR CONSEQUENTIAL DAMAGES OF ANY KIND IN CONNECTION WITH THIS AGREEMENT, EVEN
IF SUCH PARTY HAS BEEN INFORMED IN ADVANCE OF THE POSSIBILITY OF SUCH DAMAGES.
9. Covenants.
(a) Pre-existing Obligations. Consultant represents and warrants that Consultant is
not under any pre-existing obligation inconsistent with the provisions of this Agreement.
(b) Solicitation of Employment. Because of the trade secret subject matter of the
Company’s business, Consultant will not solicit the services of any of the employees, consultants,
suppliers or customers of the Company for the Period of Consultancy and for six (6) months
thereafter.
10. Consultant’s Warranties. Consultant warrants and represents that it will provide
Services with the experience and skill required hereunder and that it shall provide Services in
accordance with generally accepted professional standards; and that it is adequately financed to
meet all financial obligations it may be required to meet hereunder. The Consultant is not aware
of anyone who has exclusive rights to its services or the services of its employees. In connection
with the performance of the Services, neither the Consultant nor its employees will compromise any
rights of others, or any trust relationships with any other party, nor are they creating a conflict
of interest or any possibility thereof for the Consultant, its employees or for the Company.
Consultant agrees that during the period that it is retained as a consultant to the Company, it and
its employees, representatives and agents performing work hereunder will not, without the Company’s
prior written consent, engage in any employment or activity (whether as a consultant, advisor or
otherwise) in any business competitive with the Company. Furthermore, Consultant agrees that
Consultant and any individual or entity under Consultant’s direct or indirect control will not
solicit or in any manner encourage employees of the Company to leave its employ.
11. Inventions, Patents and Technology. The Consultant shall promptly and fully
disclose to the Company any and all inventions, improvements, discoveries, developments, original
works of authorship, trade secrets or other intellectual property conceived, developed or reduced
to practice by Consultant during the term of this Agreement and in any way relating to (a) the
actual or anticipated research and development of the Company, or (b) the services performed by the
Consultant under this Agreement (the “Information”). The Consultant shall
treat all of the Information as the proprietary property of the Company. The Consultant
agrees to assign, and does hereby assign, to the Company and its successors and assigns, without
further consideration, the Consultant’s entire right, title and interest in and to the Information
whether or not patentable or copyrightable. The Consultant further agrees to execute all
applications for
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patents and/or copyrights, domestic or foreign, assignments and other papers
necessary to secure and enforce rights related to the Information. The parties acknowledge that
all original works of authorship which are made by the Consultant within the scope of its
consulting services and which are protectable by copyright are “works made for hire,” as that term
is defined in the United States Copyright Act (17 USCA Section 101). The Consultant shall (x)
provide the Company with a copy of a written agreement with each of its employees prior to their
working hereunder through which all rights to Information conceived, developed or reduced to
practice by Consultant’s employees within the scope of employment by Consultant in performance of
this Agreement are owned by Consultant and thereby subject to the preceding assignment or (y)
require that the persons it provides to perform the Services under this Agreement shall execute an
instrument assigning such Information to the Company prior to commencing work under this Agreement.
12. General.
(a) Assignment. Consultant may not assign Consultant’s rights or delegate
Consultant’s duties under this Agreement either in whole or in part without the prior written
consent of the Company. Any attempted assignment or delegation without such consent will be void.
(b) Equitable Remedies. Because the Services are personal and unique and because
Consultant will have access to Confidential Information of the Company, the Company will have the
right to enforce this Agreement and any of its provisions by injunction, specific performance or
other equitable relief without prejudice to any other rights and remedies that the Company may have
for a breach of this Agreement.
(c) Attorneys’ Fees. If any action is necessary to enforce the terms of this
Agreement, the substantially prevailing party will be entitled to reasonable attorneys’ fees, costs
and expenses in addition to any other relief to which such prevailing party may be entitled.
(d) Governing Law; Severability. This Agreement will be governed by and construed in
accordance with the laws of the State of California excluding that body of law pertaining to
conflict of laws. If any provision of this Agreement is for any reason found to be unenforceable,
the remainder of this Agreement will continue in full force and effect. The Consultant agrees that
in carrying out its duties and responsibilities under this Agreement, it will neither undertake nor
cause, nor permit to be undertaken, any activity which either (a) is illegal under any laws,
decrees, rules or regulations in effect in either of the United States or (b) would have the affect
of causing the Company to be in violation of any laws, decrees, rules or regulations in effect in
either of the United States.
(e) Notices. Any notices under this Agreement will be sent by certified or registered
mail, return receipt requested, to the address specified below or such other address as the party
specifies in writing. Such notice will be effective upon its mailing as specified.
(f) Complete Understanding; Modification. This Agreement, together with each version
of Exhibit A executed by the parties, constitutes the complete and exclusive understanding and
agreement of the parties and supersedes all prior understandings and agreements, whether written or
oral, with respect to the subject matter hereof. Any waiver,
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modification or amendment of any
provision of this Agreement will be effective only if in writing and signed by the parties hereto.
IN WITNESS WHEREOF, the parties have signed this Agreement as of the Effective Date.
| CARDIOGENESIS CORPORATION, | CONSULTANT: | |||||||
| a California corporation: | ||||||||
By:
|
/s/ Xxxxxxx Xxxxxxx | /s/ Xx. Xxxxxx Xxxxxxx | ||||||
| Xxxxxxx Xxxxxxx, President | Xx. Xxxxxx Xxxxxxx | |||||||
| 11 Xxxxxx | 0000 Xxxxx Xxxxxx Xxxxxx Xxxxx | |||||||
| Xxxxxx, XX 00000 | Xxxxxx, XX 00000 | |||||||
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EXHIBIT A
PROJECT DESCRIPTION
This Project Description is issued under and subject to all of the terms and conditions of the
Consulting Agreement effective as of January 1, 2009 by and between Cardiogenesis Corporation (the
“Company”) and Xx. Xxxxxx Xxxxxxx (“Consultant”).
Services to include:
| 1. | Direct interface with FDA staff in support of company initiatives. | |
| 2. | Oversight of basic and clinical scientific initiatives |
| a. | protocol development | ||
| b. | publication and statistical plan |
| 3. | Input in the development of Education, Marketing and Sales (EMS) efforts aimed at growing TMR with the Cardiologist as the target (e.g. develop scientific presentations, magazines and national meetings). | |
| 4. | Provide access and entry to targeted hospitals, cath labs and prominent cardiologists on behalf of Cardiogenesis. | |
| 5. | Prepare and present educational presentations on behalf of Cardiogenesis. |
Compensation: $50,000 annually, i.e. approx. 3 days/monthly, including 1-2 presentations quarterly.
Monthly payments within 5 days of the end of the month.
Any deviation to this schedule must be agreed in writing, by both parties, prior to the event.
| CARDIOGENESIS CORPORATION: | CONSULTANT: | |||||||||
By:
|
By: | |||||||||
