Exhibit 10.2
SERVICES AGREEMENT
THIS SERVICES AGREEMENT
(“Agreement”) is entered into effective as of
June 24, 2009 (the “Effective Date”), by and
between NILE THERAPEUTICS, INC., a Delaware corporation
(“NILE”) and TWO RIVER CONSULTING, LLC, a Delaware
limited liability corporation (“CONSULTANT”), having a
business address at 689 Fifth Avenue, New York, NY
10022.
RECITALS:
WHEREAS, NILE is a development stage
biotechnology company that is developing certain pharmaceutical
technologies for the treatment of cardiovascular
disease;
WHEREAS, CONSULTANT has substantial
experience in the management and oversight of development stage
biotechnology companies; and
WHEREAS, NILE desires to retain the
services of CONSULTANT and CONSULTANT is willing to provide such
services.
NOW, THEREFORE, in consideration of
the foregoing and the mutual agreements, provisions and covenants
contained herein, the parties hereby agree as follows:
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1.1.
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Services . NILE retains CONSULTANT and CONSULTANT agrees
to provide Services to NILE (the “Services”) as it may
from time to time reasonably request, which shall include the
Services set forth on Exhibit A attached to this
Agreement.
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1.2.
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Performance . CONSULTANT agrees to render the Services to
NILE, or to its designee, (a) at such reasonably convenient
times and places as NILE may direct, (b) under the general
supervision of NILE, (c) on a “best efforts”
basis, and (d) in compliance with all applicable government
laws and regulations in the jurisdiction in which the Services are
being conducted. CONSULTANT represents and warrants that it has the
necessary experience and knowledge to perform the Services.
CONSULTANT will comply with all rules, procedures and standards
promulgated from time to time by NILE with regard to
CONSULTANT’s access to and use of NILE’s property,
information, equipment and facilities. CONSULTANT agrees to furnish
NILE with written reports with respect to the Services if and when
requested by NILE.
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1.3.
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Third Party
Confidential Information . CONSULTANT agrees not to use any trade secrets
or other confidential information of any other person, firm,
corporation, institution or other entity in connection with any of
the Services.
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1.4.
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No
Conflicts . CONSULTANT is
under no contractual or other obligation or restriction that is
inconsistent with CONSULTANT’s execution of this Agreement or
the performance of the Services. During the Term (defined below),
CONSULTANT will not enter into any agreement, either written or
oral, in conflict with CONSULTANT’s obligations under this
Agreement. CONSULTANT will arrange to provide the Services in such
manner and at such times that the Services will not conflict with
CONSULTANT’s responsibilities under any other agreement,
arrangement or understanding or pursuant to any employment
relationship CONSULTANT has at any time with any third party.
Subject to the foregoing, nothing contained herein shall be deemed
to restrict CONSULTANT or its directors, officers or employees from
engaging in any business or from contracting with other parties for
similar or different services.
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2.
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Compensation . In consideration for the Services rendered by
CONSULTANT to NILE, NILE agrees:
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2.1 .
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To pay
CONSULTANT an amount equal to Sixty Five Thousand Dollars
($65,000.00) per month during the Term. Undisputed payments will be
made by NILE within 30 days from NILE’s receipt of
CONSULTANT’s invoice. Invoices will contain such detail as
NILE may reasonably require and will be payable in U.S.
Dollars.
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2.2 .
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NILE shall
reimburse CONSULTANT for all normal, usual and necessary expenses
incurred by the CONSULTANT in performing the Services, including
reasonable travel and entertainment, upon timely receipt by NILE of
appropriate vouchers or other proof of the CONSULTANT’s
expenditures and otherwise in accordance with any expense
reimbursement policy as may from time to time be adopted by
NILE.
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2.3 .
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NILE will issue
to CONSULTANT and/or its designees stock options (the
“Options”) in substantially the form attached hereto as
Exhibit B to purchase an aggregate of Seven Hundred Fifty
Thousand (750,000) shares of common stock of NILE, par value
$0.001 per share (the “Common Stock”), at an exercise
price equal to the closing sale price of the Common Stock on the
Effective Date, which Options shall vest, if at all, in accordance
with the vesting schedule set forth on Exhibit C attached
hereto. The Options shall be issued pursuant to the NILE’s
2005 Stock Option Plan
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3.
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Term and
Termination .
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3.1.
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Term .
This Agreement will commence on the Effective Date and continue for
a period of one (1) year from the Effective Date (the
“Term”), unless sooner terminated pursuant to the
express terms of this Section 2.3 or extended by mutual
agreement of the parties. The Term may be extended for additional
periods upon the mutual written agreement of NILE and
CONSULTANT.
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3.2.
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Termination
for Breach . If either
party breaches in any material respect any of its material
obligations under this Agreement, in addition to any other right or
remedy, the non-breaching party may terminate this Agreement in the
event that the breach is not cured within 30 days after receipt by
that party of written notice of the breach.
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3.3.
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Termination
by NILE . NILE may
terminate this Agreement immediately at any time upon written
notice to CONSULTANT in the event of a breach of this Agreement by
CONSULTANT which cannot be cured ( i.e. breach of the
confidentiality obligation).
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3.4.
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Other
Termination . Either NILE
or CONSULTANT may terminate this Agreement for any reason upon not
less than 90 days prior written notice to the other
party.
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3.5.
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Effect of
Expiration/Termination .
Upon expiration or termination, neither NILE nor CONSULTANT will
have any further obligations under this Agreement, except the
liabilities accrued through the date of termination. Upon
expiration or termination, and in any case upon NILE’s
request, CONSULTANT will return immediately to NILE all tangible
Confidential Information, including all copies and reproductions
thereof, except for one (1) copy which may be retained solely
for archival purposes. In the event this Agreement is terminated by
either party pursuant to Section 3.4 or by CONSULTANT pursuant
to Section 3.2, then all unvested portions of the Options
shall accelerate and be deemed vested as of the effective date of
such termination.
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4.1.
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Definition . “Confidential Information” means
all trade secrets and confidential or proprietary information
owned, possessed or used by NILE, learned of by CONSULTANT or
developed by CONSULTANT in connection with the Services, whether or
not in written form, including but not limited to data, know-how,
unpublished findings, compounds, product information, processes,
patent applications, business plans and strategies, financial data,
proprietary software, technology under development, and marketing
information, regardless of whether such disclosures are marked or
otherwise designated as “Confidential,” or if such
confidential information is disclosed in non-written form, such
disclosure shall be identified as Confidential Information when
first disclosed; and (b) any information, software, or other
materials created by the CONSULTANT including any part of the
information described in clause (a) of this
sentence.
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4.2.
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Obligation . CONSULTANT agrees that during the course of
the Term and for a period of five (5) years thereafter, it
will keep in strictest confidence and will not disclose or make
accessible to any other person without the prior written consent of
NILE, NILE’s Confidential Information.
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4.3.
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Exclusion
. Confidential Information does not
include information that (a) is in the public domain or which
becomes part of the public domain through no wrongful act on
CONSULTANT’s part but only after it becomes so publicly
known, (b) is already in
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CONSULTANT’s possession at the
time of disclosure by NILE, other than by previous disclosure by
NILE, as evidenced by written or electronic records, or
(c) that becomes known to CONSULTANT through disclosure by a
third party having the right to disclose the information, as
evidenced by written or electronic records. In addition, the
CONSULTANT may disclose Confidential Information to the extent such
information is required to be disclosed by law, regulation or order
of a court of competent jurisdiction or regulatory authority,
provided that CONSULTANT shall promptly notify NILE when such
requirement to disclose arises, and shall cooperate with NILE so as
to enable NILE to: (1) seek an appropriate protective order;
and (2) make any applicable claim of confidentiality in
respect of such Confidential Information; and provided, further,
that CONSULTANT shall disclose Confidential Information only to the
extent required by the protective order or other similar order, if
such an order is obtained, and, if no such order is obtained, the
receiving party shall disclose only the minimum amount of such
Confidential Information required to be disclosed in order to
comply with the applicable law, regulation or order.
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5.
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Insider
Trading . NILE is a
public company that is subject to the reporting requirements of the
Securities and Exchange Act of 1934, as amended, and as such, in
the course of his duties hereunder, CONSULTANT may receive from
NILE or others information that may be considered material,
nonpublic information concerning. Accordingly, CONSULTANT agrees
NOT to:
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5.1.
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buy or sell any
security, option, bond or warrant while in possession of relevant
material, nonpublic information received from NILE or others in
connection herewith; or
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5.2.
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provide any
person with material, nonpublic information, received from NILE,
including any relative, associate, or other individual who intends
to, or may, (i) trade securities with respect to NILE which is
the subject of such information, or (ii) otherwise directly or
indirectly benefit from such information.
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CONSULTANT agrees to comply with
NILE’s insider trading policies in effect from time to
time.
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6.1.
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Definition . CONSULTANT will promptly disclose in
confidence to NILE all inventions, discoveries, improvements,
ideas, designs, processes, products, computer programs, works of
authorship, databases, mask works, trade secrets, know-how,
research and creations (whether or not patentable or subject to
copyright or trade secret protection) that CONSULTANT makes,
conceives or reduces to practice, either alone or jointly with
others, and that result from the performance of the Services
(“Inventions”).
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6.2.
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Ownership
. All Inventions will be the
exclusive property of NILE. For purposes of the copyright laws of
the United States, all Inventions will constitute “works made
for hire”,
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except to the extent such Inventions
cannot by law be “works made for hire”. To the extent
Inventions have not been previously assigned to NILE, CONSULTANT
hereby assigns and, to the extent any such assignment cannot be
made at present, hereby agrees to assign to NILE, without further
compensation, all right, title and interest in and to all
Inventions and any and all related patents, patent applications,
copyrights, copyright applications, trademarks, trade names, trade
secrets and other proprietary rights in the United States and
throughout the world. CONSULTANT agrees to cause its employees and
other personnel performing Services to assign all Inventions to
NILE.
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6.3.
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Records . CONSULTANT shall make and maintain adequate
and current written records of all Inventions, which records shall
be available to and remain the property of NILE at all
times.
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7.
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Liability & Indemnity
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7.1.
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Disclaimer
of Warranty . CONSULTANT
makes no express or implied representations, warranties or
guarantees relating to the Services or the quality or results of
Services to be performed under this Agreement. CONSULTANT will
provide the Services with reasonable care and skill; provided,
however, that CONSULTANT shall not be liable to NILE or any other
person for any loss, damage or expense which may result therefrom
or from any change in the manner in which CONSULTANT renders the
Services, so long as CONSULTANT deems such change necessary or
desirable in the conduct of its own operations. CONSULTANT shall
not be liable to NILE for the consequences of any failure or delay
to perform any of CONSULTANT’s obligations under this
Agreement, other than for damages arising from CONSULTANT’s
gross negligence or willful misconduct; provided ,
however , that CONSULTANT shall provide reasonably prompt
notice to NILE of such liability and the reasons
therefor.
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7.2.
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Indemnification
. NILE hereby agrees to indemnify
CONSULTANT and its officers, directors, employees
(“Indemnitees”) and protect, defend, save and hold each
Indemnitee har
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