CONSULTING AGREEMENT
Exhibit 10.5
THIS CONSULTING AGREEMENT (this “Agreement”), dated Xxxxx 00, 0000, (xxx “Effective Date”),
is made and entered by and between BIOHEART, INC., a Florida corporation (the “Company”) and
Xxxxxxx Xxxxxxx (the “Consultant”).
R E C I T A T I O N S
A. The Company believes that the Consultant’s Services will be extremely beneficial to the
Company and wishes to obtain such Services and the benefit of the Consultant’s knowledge and
experience.
B. The Company desires to retain the services of the Consultant and the Consultant desires to
provide services to the Company, subject to the terms and conditions set forth in this Agreement.
O P E R A T I V E P R O V I S I O N S
In consideration of the foregoing recitations, the mutual promises hereinafter set forth and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto, intending legally to be bound, hereby covenant and agree as
follows:
ARTICLE I
Engagement
Engagement
1.1 Engagement of Consultant. The Company hereby engages the Consultant and
Consultant hereby agrees to provide consulting services as set forth in Section 1.2 of this
Agreement (the “Services”).
1.2 Services to be Provided.
A. Services. During the term of this Agreement, the Consultant personally shall perform the
following services: (i) assisting Bioheart in reaching its financial goals; (ii) providing
leadership training to Bioheart’s board of directors, officers, employees and consultants; and
(iii) appearing at selected events as mutually agreed upon by Consultant and Bioheart (collectively
referred to herein as the “Services”).
B. Performance of Services. The Consultant is responsible for reasonably determining the
method, details and means of performing the services required under this Agreement. Consultant’s
business and affairs shall be conducted in accordance with all applicable federal, state and local
laws and regulations. Such consultation may be by telephone, in writing or by other method of communication which the Company and the Consultant mutually
agree.
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C. Hours. Notwithstanding any other provision of this Agreement, it is agreed that the
Consultant shall not be required to devote any minimum amount of time during any particular week or
year, but shall perform services pursuant to this Agreement on an “as needed” basis at such times
and for such periods as the Company and Consultant mutually agree. The Consultant shall use his
best efforts in good faith to provide consulting services when requested to do so by the Company.
1.3 Term of Agreement. The term of this Agreement shall commence on the Effective
date and shall continue until March 18, 2007 (the “Term”), unless terminated in accordance with the
provisions of Article 3 hereof. This Agreement may be renewed for an additional period(s) only
upon the mutual written agreement of the parties.
1.4 Nature of Consulting Relationship. It is agreed and understood by the parties to
this Agreement that, for all purposes, during the term of this Agreement, the Consultant shall
serve solely as an independent contractor of the Company and shall not be an employee of the
Company in any capacity. Nothing in this Agreement shall be interpreted or construed as creating
or establishing the relationship of employer and employee between the Consultant and Company. As
an independent contractor, the Consultant (a) shall accept any directions issued by the Company
pertaining to the goals to be attained and the results to be achieved by him, but shall be solely
responsible for the manner and hours in which he will perform his services under this Agreement,
(b) shall not be entitled to any employee or fringe benefits available to employees of the Company,
and (c) shall be solely responsible for the payment of any federal, state and local taxes
applicable to the fees and expenses paid or payable by the Company in connection with Consultant’s
engagement.
ARTICLE II
Compensation
Compensation
2.1 Compensation. In consideration for the Services to be provided by the Consultant
pursuant to Section 1.2 hereof, upon execution of this Agreement and subject to the execution of
all other applicable agreements, the Company shall grant to Consultant an option to purchase 80,000
shares of the common stock of the Company, par value $.001 per share (the “Option”), at an exercise
price equal to $3.50 per share, in accordance with the terms, conditions and provisions of the
Company’s 1999 Directors and Consultants Stock Option Plan, and pursuant to the terms, conditions
and provisions of the Stock Option Agreement, attached hereto as Exhibit A (the “Option
Agreement”), to be entered into by and between the Company and the Consultant. The Option shall
vest equally over a three-year period or immediately upon a “Change in Control” (as defined in the
Option Agreement), whichever occurs first.
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2.2 Expense Reimbursement. Upon the submission of proper substantiation by the
Consultant, and subject to such rules and guidelines as the Company may from time to time
adopt, the Company shall reimburse the Consultant for all reasonable expenses actually paid or
incurred by the Consultant during the Term in the course of and pursuant to the business of the
Company, including without limitation travel and lodging expenses necessarily incurred in
performing the Services required hereunder. The Consultant shall account to the Company in writing
for all expenses for which reimbursement is sought and shall supply to the Company copies of all
relevant invoices, receipts or other evidence reasonably requested by the Company.
ARTICLE III
Termination
Termination
3.1 Termination. Notwithstanding anything to the contrary contained in this Agreement:
A. Expiration. This Agreement shall terminate upon the expiration of the Term as set forth in
Section 1.3; or
B. Breach. This Agreement shall terminate on the date on which one party (the “Terminating
Party”) provides written notice of such termination to the other party (the “Breaching Party”) by
reason of the fact that the Breaching Party has materially breached his or its obligations under
this Agreement, which breach is not cured by the Breaching Party within thirty days after the
Terminating Party has given written notice of such breach to the Breaching Party; provided that the
Terminating Party shall not be obligated to offer notice and an opportunity to cure if the breach
is not curable.
C. Termination by the Company. The Company may terminate this Agreement as follows:
(i) This Agreement shall terminate upon the death of Consultant, and the Company shall have no
further obligation under this Agreement to make any payments to, or bestow any benefits on, the
Consultant from and after the date of Consultant’s death, other than payments or benefits accrued
and due and payable to Consultant prior to the date of his death.
(ii) This Agreement shall terminate if as a result of Consultant’s incapacity due to accident
or illness, Consultant shall have been unable to satisfactorily perform his Duties under this
Agreement for a period of thirty consecutive days, or for an aggregate of forty-five days in any
consecutive three-month period. In the event of a termination due to disability under this
Section, the Company shall have no further obligation under this Agreement to make any payments to,
or bestow any benefits on, Consultant from and after the date of the termination, other than
payments or benefits accrued and due and payable to it prior to the date of termination pursuant to
this Agreement.
(iii) The Company may immediately terminate this Agreement for Cause at any time. For
purposes of this Agreement, the Company shall have “Cause” to terminate this Agreement if
Consultant (1) engages in common law fraud in his relations with the Company or
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any of its subsidiaries or affiliates, or with any customer or business contact of the Company or
any of its subsidiaries or affiliates; (2) engages in misconduct injurious to the Company; or (3)
is convicted of any crime involving an act of moral turpitude. In the event of a termination for
Cause, the Company shall have no further obligation under this Agreement to make any payments to,
or bestow any benefits on, the Consultant from and after the date of the termination, other than
payments or benefits accrued and due and payable to it prior to the date of termination.
ARTICLE IV
Restrictive Covenants
Restrictive Covenants
4.1 Confidentiality. The Consultant agrees to keep all Confidential Information (as
defined in Section 4.2 herein) strictly and permanently confidential and agrees that he shall not
at any time (whether during or after the Term) directly or indirectly use for any purpose, or
disclose or permit to be disclosed to any person or entity, any Confidential Information. The
Consultant acknowledges that the Confidential Information constitutes unique and valuable assets of
the Company and such Confidential Information was acquired at great time and expense by the
Company, and that any disclosure or other use of such Confidential Information, other than for the
sole benefit of the Company, would be wrongful and would cause irreparable harm to the Company.
4.2 Confidential Information. The term “Confidential Information” means any
non-public information (whether or not in written form and whether or not expressly designated as
confidential) relating directly or indirectly to the Company or any of the Company’s subsidiaries
or affiliates or relating to the business, operations, financial affairs, performance, assets,
investments, technology, processes, products, contracts, customers, licensees, sublicensees,
suppliers, personnel, plans or prospects of the Company or any of the Company’s subsidiaries or
affiliates, including such information consisting of or otherwise relating directly or indirectly
to trade secrets, know how, technology, designs, drawings, processes, license or sublicense
arrangements, formulae, proposals, customer lists or preference, pricing lists, referral sources,
marketing or sales techniques or plans, operation manuals, service manuals, financial information,
projections, lists of suppliers or distributors or sources of supply; provided, however, that
“Confidential Information” shall not be deemed to include information which, at the time of initial
disclosure to the Consultant, is part of, or without violation of this Agreement or fault of the
Consultant becomes part of, the public knowledge of literature and is readily accessible to third
parties.
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4.3 Documents, Records, etc. All documents, records, data, apparatus, equipment and
other physical property, whether or not pertaining to Confidential Information, which are furnished
to the Consultant by the Company or are produced by the Consultant in connection with the
Consultant’s service with the Company, if not otherwise indicated by the Consultant, will be and
remain the sole property of the Company. The Consultant will return to the Company all such
materials and property as and when requested by the Company. In any event, the Consultant will
return all such materials and property immediately upon termination of the Consultant’s service
with the Company for any reason. The Consultant will not retain with the Consultant any such
material or property or any copies thereof after such termination.
ARTICLE V
Miscellaneous
Miscellaneous
5.1 Entire Agreement; Amendment. This Agreement constitutes the entire agreement
between the parties hereto with respect to the subject matter hereof and supersedes all prior
agreements, understandings, negotiations and discussions, both written and oral, among the parties
hereto. This Agreement may not be amended or modified in any way except by a written instrument
executed by the Company and the Consultant.
5.2 Notices. All notices under this Agreement shall be in writing and shall be given
by personal delivery, or by reputable overnight courier, to the address set forth below:
If to the Consultant:
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Xxxxxxx Xxxxxxx 0000 Xxxxx 00xx Xxxxxx Xxxxxxxxx, Xxxxxxx 00000 |
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If to the Company:
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Bioheart, Inc. 0000 X. Xxxxxxxx Xxxxxxx Xxxxx 000 Xxxxxx, Xxxxxxx 00000 Attn: Xxxxxx X. Xxxxxxxxx, Chief Executive Officer |
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With a copy to:
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Xxxxx & Xxxxx, P.A. 0000 Xxxx Xxxxxxxx Xxxx Xxxx Xxxxx 000 Xxxx Xxxxx, Xxxxxxx 00000 Attn: Xxxxx X. Xxxxx, Esq. |
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or to such other person or persons or to such other address or addresses as the Consultant and the
Company or their respective successors or assigns may hereafter furnish to the other by notice
similarly given. Notices, if personally delivered, shall be deemed to have been received on the
date of delivery, and if given by registered or certified mail, shall be deemed to have been
received on the fifth business day after mailing.
5.3 Governing Law. This Agreement shall be governed by, and construed and interpreted
in accordance with, the laws of the State of Florida, without giving effect to the conflict of laws
principles of each State. With respect to any disputes concerning federal law, such disputes shall
be determined in accordance with the law as it would be interpreted and applied by the United
States Court of Appeals for the Eleventh Circuit.
5.4 Assignment: Successors and Assigns. Neither the Consultant nor the Company may
make an assignment of this Agreement or any interest herein, by operation of laws or otherwise,
without the prior written consent of the other party; provided that the Company may assign its
rights under this Agreement with the consent of the Consultant in the event that the Company shall
effect a reorganization, consolidate with or merge into any other corporation, partnership,
organization or other entity, or transfer all or substantially all of its properties or assets to
any other corporation, partnership, organization or other entity, but only if such assignee or the
surviving entity in any such reorganization agrees to assume all of the Company’s obligations under
this Agreement. This Agreement shall inure to the benefit of and be binding upon the Company and
the Consultant, their respective heirs, personal representatives, executors, administrators, legal
representatives, successors and assigns.
5.5 Waiver. The waiver by any party hereto of the other party’s prompt and complete
performance or breach or violation of any provision of this Agreement shall not operate nor be
construed as a waiver of any subsequent breach or violation, and the waiver by any party hereto to
exercise any right or remedy which he or it may possess shall not operate nor be construed as the
waiver of such right or remedy by such party or as a bar to the exercise of such right or remedy by
such party upon the occurrence of any subsequent breach or violation.
5.6 Severability. The invalidity of any one or more of the words, phrases, sentences,
clauses, sections or subsections contained in this Agreement shall not affect the enforceability of
the remaining portions of this Agreement or any part thereof, all of which are inserted
conditionally on their being valid in law, and, in the event that any one or more of the words,
phrases, sentences, clauses, sections or subsections contained in this Agreement shall be declared
invalid by a court of competent jurisdiction, then this Agreement shall be construed as if such
invalid word or words, phrase or phrases, sentence or sentences, clause or clauses, section or
sections, or subsection or subsections had not been inserted.
5.7 Arbitration of Disputes. Any dispute or controversy arising under or in connection
with this Agreement shall be settled exclusively by arbitration in Broward County, Florida, in
accordance with the Rules of the American Arbitration Association then in effect (except to the
extent that the procedures outlined below differ from such rules). The cost and
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expenses of the arbitration and of enforcement of any award in any court shall be borne by the
non-prevailing party. If advances are required, each party will advance one-half of the estimated
fees and expenses of the arbitrators. Judgment may be entered on the arbitrators’ award in any
court having jurisdiction. Although arbitration is contemplated to resolve disputes hereunder,
either party may proceed to court to obtain an injunction to protect its rights hereunder, the
parties agreeing that either could suffer irreparable harm by reason of any breach of this
Agreement. Pursuit of an injunction shall not impair arbitration on all remaining issues. In the
event that either party hereto shall bring suit seeking an injunction of any action constituting a
breach of any of the terms or provisions of this Agreement, then the party at fault shall pay all
reasonable court costs and attorney’s fees of the other.
5.8 Consent to Jurisdiction. To the extent that any court action is permitted
consistent with or to enforce Section 5.7 of this Agreement, the parties hereby consent to the
jurisdiction of the Supreme Court of Florida, the Florida District Court of Appeal, and the United
States District Court for the District of Florida. Accordingly, with respect to any such court
action, the Consultant (i) submits to the personal jurisdiction of such courts; (ii) consents to
service of process; and (iii) waives any other requirement (whether imposed by statute, rule of
court, or otherwise) with respect to personal jurisdiction or service of process.
5.9 Compliance with Legal Requirements. The Company shall not provide workers’
compensation, disability insurance, Social Security or unemployment compensation coverage nor any
other statutory benefit to the Consultant. The Consultant shall comply at his expense with all
applicable provisions of workers’ compensation laws, unemployment compensation laws, federal Social
Security law, the Fair Labor Standards Act, federal, state and local income tax laws, and all other
applicable federal, state and local laws, regulations and codes relating to terms and conditions of
employment required to be fulfilled by employers or independent contractors.
5.10 Gender and Number. Wherever the context shall so require, all words herein in
the male gender shall be deemed to include the female or neuter gender, all singular words shall
include the plural and all plural words shall include the singular.
5.11 Section Headings. The section or other headings contained in this Agreement are
for reference purposes only and shall not affect in any way the meaning or interpretation of any or
all of the provisions of this Agreement.
5.12 No Third Party Beneficiary other than Company. Nothing expressed or implied in
this Agreement is intended, or shall be construed, to confer upon or give any person, firm,
corporation, partnership, association or other entity, other than the parties hereto and each of
their respective heirs, personal representatives, legal representatives, successors and assigns,
any rights or remedies under or by reason of this Agreement.
5.13 No Authority to Bind Company. The Consultant does not and shall not have any
authority to enter into any contract or agreement for, on behalf of or in the name of the
Company, or to legally bind the Company to any commitment or obligation.
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IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first above
written.
| THE COMPANY: BIOHEART, INC., a Florida corporation |
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| /s/ | ||||
| Xxxxxx Xxxxxxxxx, Chief Executive Officer | ||||
| THE CONSULTANT: |
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| /s/ | ||||
| Xxxxxxx Xxxxxxx | ||||
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