Contract
Exhibit
10.2
This
Consulting Agreement, dated effective December 14, 2006 (this "Agreement"),
is
made and entered into by and among Orlando J. Xxxxx x Xxxxxxx MD, Inc., a
California Corporation (the "Company") and Stone Consulting Services, Inc a
Delaware Corporation (the "Consultant").
ARTICLE
1
- SCOPE OF WORK
1.1 Services
- The Company has engaged Consultant to provide services in connection with
analysis of the Company's operations during 2005 and 2006 including, but not
limited to, analysis of Company's Profit and Loss Statements and interviews
with
key company personnel. Consultant will make recommendations regarding
operational and/or management changes that can be made in Company's business
in
order to improve profitability.
1.2
Time
and
Availability - Consultant will devote up to a maximum of 24 hours over the
next
120 days in performing the services for the Company as stated herein. Consultant
shall have discretion in selecting the dates and tines it performs such
consulting services throughout the month giving due regard to the needs of
the
Company's business.
1.3
Confidentiality
- In order for Consultant to perform the consulting services, it may be
necessary for the Company to provide Consultant with Confidential Information
(as defined below) regarding the Company's business and products. The Company
will rely heavily upon Consultant's integrity and prudent judgment to use this
information only in the best interests of the Company.
1.4
Standard
of Conduct - In rendering consulting services under this Agreement, Consultant
shall conform to high professional standards of work and business ethics.
Consultant shall not use time, materials, or equipment of the Company without
the prior written consent of the Company. In no event shall Consultant take
any
action or accept any assistance or engage in any activity that would result
in
any university, governmental body, research institute or other person, entity
or
organization acquiring any rights of any nature in the results of work performed
by or for the Company.
1.5 Outside
Services - Consultant shall not use the service of any other person, entity
or
organization
in the performance of Consultant's duties without the prior written consent
of
an officer of the Company. Should the Company consent to the use by Consultant
of the services of any other person, entity or organization, no information
regarding the services to be performed under this Agreement shall be disclosed
to that person, entity or organization until such person, entity or organization
has executed an agreement to protect the confidentiality of the Company's
Confidential Information (as defined below) and the Company's absolute and
complete ownership of all right, title and interest in the work performed under
this Agreement.
1.6 Reports
-
Consultant shall periodically provide the Company with written reports of his
observations and conclusions regarding the consulting services as required.
Upon
_______________
ARTICLE
2
- INDEPENDENT CONTRACTOR
2.1
Independent
Contractor - Consultant is an independent contractor and is not an employee,
partner, or co-venturer of, or in any other service relationship with, the
Company. The manner in which Consultant's services are rendered shall be within
Consultant's sole control and discretion. Consultant is not authorized to speak
for, represent, or obligate the Company in any manner without the prior express
written authorization from an officer of the Company.
2.2 Taxes
-
Consultant shall be responsible for all taxes arising from compensation and
-other amounts paid under this Agreement, and shall be responsible for all
payroll taxes and fringe benefits of Consultant's employees. Neither federal,
nor state, nor local income tax, nor payroll tax of any kind, shall be withheld
or paid by the Company on behalf of Consultant or its employees. Consultant
understands that it is responsible to pay, according to law, Consultant's taxes
and Consultant shall, when requested by the Company, properly document to the
Company that any and all federal and state taxes have been paid.
2.3
Benefits
- Consultant and Consultant's employees will not be eligible for, and shall
not
participate in, any employee pension, health, welfare, or other fringe benefit
plan, of the Company. No workers' compensation insurance shall be obtained
by
Company covering Consultant or Consultant's employees.
ARTICLE
3
- COMPENSATION FOR CONSULTING SERVICES
3.1 Compensation
- The Company shall pay to Consultant $250.00 per hour for services rendered
to
the Company under this Agreement. Compensation shall be paid upon receipt of
invoice which will document time spent during the month.
3.2 Reimbursement
- The Company agrees to reimburse Consultant for all actual
reasonable
and necessary expenditures, which are directly related to the consulting
services. These expenditures include, but are not limited to, expenses related
to travel (i.e. airfare, hotel, temporary housing, meals, parking, taxis,
mileage, etc.), telephone calls, and postal expenditure. Expenses incurred
by
Consultant will be reimbursed by the Company within 15 days of Consultant's
proper written request for reimbursement.
ARTICLE
4
- TERM AND TERMINATION
4.1
Term
-
This Agreement shall be effective as of December 15, 2006, and shall continue
in
full force and effect for four consecutive months. The Company and Consultant
may negotiate to extend the term of this Agreement and the terms and conditions
under which the relationship shall continue.
4.2 Termination
- The Company may terminate this Agreement for "Cause," after giving Consultant
written notice of the reason. Cause means: (1) Consultant has breached the
provisions of Article 5 or 7 of this Agreement in any respect, or materially
breached any other provision of this Agreement and the breach continues for
30
days following receipt of a notice from the Company; (2) Consultant has
committed fraud, misappropriation or embezzlement in connection with the
Company' s business; (3) Consultant has been convicted of a felony, or (4)
Consultant's use of narcotics, liquor or illicit drugs has a detrimental effect
on the performance of her employment responsibilities, as determined by the
Company.
4.3 Responsibility
upon Termination - Any equipment provided by the Company to the Consultant
in
connection with or furtherance of Consultant's services under this Agreement,
including, but not limited to, computers, laptops, and personal management
tools, shall, immediately upon the termination of this Agreement, be returned
to
the Company.
4.4 Survival
- The provisions of Articles 5, 6, 7 and 8 of this Agreement shall survive
the
termination of this Agreement and remain in full force and effect
thereafter.
ARTICLE
5
- CONFIDENTIAL INFORMATION
5.1 Obligation
of Confidentiality - In performing consulting services under this Agreement,
Consultant may be exposed to and will be required to use certain "Confidential
Information" (as hereinafter defined) of the Company. Consultant agrees that
Consultant will not and Consultant's employees, agents or representatives will
not, use, directly or indirectly, such Confidential Information for the benefit
of any person, entity or organization other than the Company, or disclose such
Confidential Information without the written authorization of the President
of
the Company, either during or after the term of this Agreement, for as long
as
such information retains the characteristics of Confidential.
Information.
5.2 Definition
- "Confidential Information" means information, not generally known, and
proprietary to the Company or to a third party for whom the Company is
performing work, including, without limitation, information concerning any
patents or trade secrets, confidential or secret designs, processes, formulae,
source codes, plans, devices or material, research and development, proprietary
software, analysis, techniques, materials or designs (whether or not patented
or
patentable), directly or indirectly useful in any aspect of the business of
the
Company, any vendor names, customer and, supplier lists, databases, management
systems and sales and marketing plans of the Company, any confidential secret
development or research work of the Company, or any other confidential
information or proprietary aspects of the business of the Company. All
information which Consultant acquires or becomes acquainted with during the
period of this Agreement, whether developed by Consultant or by others, which
Consultant has a reasonable basis to believe to be Confidential Information,
or
which is treated by the Company as being Confidential Information, shall be
presumed to be Confidential In formation.
5.3 Property
of the Company - Consultant agrees that all plans, manuals and specific
materials developed by the Consultant on behalf of the Company in connection
with services rendered under this Agreement, are and shall remain the exclusive
property of the Company. Promptly upon the expiration or termination of this
Agreement, or upon the request of the Company, Consultant shall return to the
Company all documents and tangible items, including samples, provided to
Consultant or created by Consultant for use in connection with services to
be
rendered hereunder, including without limitation all Confidential Information,
together with all copies and abstracts thereof.
ARTICLE
6
- RIGHTS AND DATA
6.1
Data
-
All drawings, models, designs, formulas, methods, documents and tangible items
prepared for and submitted to the Company by Consultant in connection with
the
services rendered under this Agreement shall belong exclusively to the Company
and shall be deemed to be works made for hire (the "Deliverable Items"). To
the
extent that any of the Deliverable items may not, by operation of law, be works
made for hire, Consultant hereby assigns to the Company the ownership of
copyright or mask work in the Deliverable Items, and the Company shall have
the
right to obtain and hold in its own name any trademark, copyright, or mask
work
registration, and any other registrations and similar protection which may
be
available in the Deliverable Items. Consultant agrees to give the Company or
its
designees all assistance reasonably required to perfect such
rights.
ARTICLE
7
- NON-SOLICITATION
Non-Solicitation
- Consultant covenants and agrees that during the term of this Agreement,
Consultant will not, directly or indirectly, through an existing corporation,
unincorporated business, affiliated party, successor employer, or otherwise,
solicit, hire for employment or work with, on a part-time, consulting, advising
or any other basis, other than on behalf of the Company any employee or
independent contractor employed by the Company while Consultant is performing
services for the Company.
ARTICLE
8
RIGHT TO INJUNCTIVE RELIEF
Consultant
acknowledges that the terms of Articles 5, 6, and 7 of this Agreement are
reasonably necessary to protect the legitimate interests of the Company, are
reasonable in scope and duration, and are not unduly restrictive. Consultant
further acknowledges that a breach of any of the terms of Articles 5, 6, or
7 of
this Agreement will render irreparable harm to the Company, and that a remedy
at
law for breach of the Agreement is inadequate, and that the Company shall
therefore he entitled to seek any and all equitable relief, including, but
not
limited to, injunctive relief, and to any other remedy that may be available
under any applicable law or agreement between the parties. Consultant
acknowledges that an award of damages to the Company does not preclude a court
from ordering injunctive relief_ Both damages and injunctive relief shall be
proper modes of relief and are not to be considered as alternative
remedies.
ARTICLE
9
- GENERAL PROVISIONS
9.1 Construction
of Terms - If any provision of this Agreement is held unenforceable by a court
of competent jurisdiction, that provision shall be severed and shall not affect
the validity or enforceability of the remaining provisions.
9.2 Governing
Law - This Agreement shall be governed by and construed in accordance with
the
internal laws (and not the laws of conflicts) of the State of
California.
9.3 Complete
Agreement - This Agreement constitutes the complete agreement and sets forth
the
entire understanding and agreement of the parties as to the subject matter
of
this Agreement and supersedes all prior discussions and understandings in
respect to the subject of this Agreement, whether written or oral.
9.4 Dispute
Resolution - If there is any dispute or controversy between the parties arising
out of or relating to this Agreement, the parties agree that such dispute or
controversy will be arbitrated in accordance with proceedings under American
Arbitration Association rules, and such arbitration will be the exclusive
dispute resolution method under this Agreement. The decision and award
determined by such arbitration will be final and binding upon both parties.
All
costs and expenses, including reasonable attorney's fees and expert's fees,
of
all parties incurred in any dispute which is determined and/or settled by
arbitration pursuant to this Agreement will be home by the party determined
to
be liable in respect of such dispute; provided, however, that if complete
liability is not assessed against only one party, the parties will share the
total costs in proportion to their respective amounts of liability so
determined. Except where clearly prevented by the area in dispute, both parties
agree to continue performing their respective obligations under this Agreement
until the dispute is resolved.
9.5 Modification
- No modification, termination or attempted waiver of this Agreement, or any
provision thereof, shall be valid unless in writing signed by the party against
whom the same is sought to be enforced.
9.6 Waiver
of
Breach - The waiver by a party of a breach of any provision of this Agreement
by
the other party shall not operate or be construed as a waiver of any other
or
subsequent breach by the party in breach.
9.7 Successors
and Assigns - This Agreement may not be assigned by either party without the
prior written consent of the other party; provided, however, that the Agreement
shall be assignable by the Company without Consultant's consent in the event
the
Company is acquired by or merged into another corporation or business entity.
The benefits and obligations of this Agreement shall be binding upon and inure
to the parties hereto, their successors and assigns.
9.8 No
Conflict Consultant warrants that Consultant has not previously assumed any
obligations inconsistent with. those undertaken by Consultant under this
Agreement.
IN
WITNESS WHEREOF, this Agreement is executed as of the date set forth
above.
Orlando J. Xxxxx x Xxxxxxx MD, Inc. | Stone Consulting Services, Inc. | |||
By: | /s/ Xxxxxxx Xxxxxxx | By: | /s/ Xxxxxxx Xxxxx | |
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Its: | President | Its: | President | |
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