CONSULTING AGREEMENT
This
AGREEMENT (“Agreement”), dated as of ___________, 2006 (the “Effective Date”),
is made by and between ________________________
(“Company”)
and Plaza
Consulting Group of PR Inc. (“Consultant”),
each having a business address as set forth on the signature page hereof and
sometimes hereinafter referred to as a “Party” or collectively as
the Parties.
In
consideration of Consultant’s engagement hereunder, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties agree to the following terms and
conditions:
Section
1. Services.
The
nature of the services to be performed by Consultant and the deliverables to
be
provided to Company in connection therewith (collectively, the “Services”), as
well as the timing, cost and payment schedule with respect to such Services,
shall be as specifically set forth in Exhibit
A.
Section
2. Term. The
term
of this Agreement shall commence on the Effective Date and continue in fill
force and effect until _________, 2006 (the “Term”), unless sooner terminated
pursuant to Section 4.
The
Term
may be modified or extended by the Parties subject to Section
14(m).
Section
3. Payment/Reimbursement. Each
request for payment and/or reimbursement shall be (a) in accordance
with the terms of this Agreement, including Company’s Reimbursement Policy, a
copy of which
is
attached hereto as Exhibit
B, and
(b)
accompanied by an invoice from Consultant reasonably documenting actual costs
incurred and/or fees earned (as contemplated by Exhibit
A).
All
fees and reimbursable expenses relating to the Services described in Exhibit
A
shall be payable and invoiced upon completion of all Services, unless a
different schedule is specified in Exhibit A. Invoices received and thereafter
approved for payment by Company shall be paid to Consultant within 30 days
after
Company’s approval thereof. Any fees of and/or costs incurred by Consultant
which exceed those set forth in Exhibit A shall be at the sole risk and expense
of Consultant unless authorized by Company in writing prior to being earned
or
incurred.
Section
4. Termination.
This
Agreement and/or the Services shall be immediately terminable at any time by
Company upon not less than 30 days’ written notice to Consultant. Upon the
effective date of any such termination, Consultant shall immediately cease
work
on the Services, deliver to Company all work in progress, and return all
Confidential Information (as defined in Section 5). Upon termination, Company’s
sole obligation to Consultant shall be to pay Consultant, subject to Section
3,
any monies due Consultant for satisfactory work actually performed and
reasonable expenses actually incurred or which Consultant has irrevocably and
unavoidably committed to incur (with the authorization of Company) prior to
the
effective date of termination. Any unearned or unexpended portion of monies
previously paid by Company to Consultant shall be refunded promptly to
Company.
Section
5.
Confidential Information.
(a) Consultant
and its directors, officers, employees, representatives and agents (each a
“Representative”) may obtain, receive or have access to certain materials,
information, and/or data relating to the intellectual property, know-how,
businesses, operations, finances and/or commercial, marketing, research and
development and/or other plans and strategies of Company or its affiliates,
which Company or its affiliates considers to be confidential and proprietary.
All such materials, information and/or data, together with all copies,
summaries, notes, analyses and/or studies thereof or pertaining thereto and
any
data, reports, studies, analyses and/or other work product produced by
Consultant as part of the Services, whether written or recorded in electronic
or
other format and on whatever media, are herein collectively referred to as
“Confidential Information.”
(b) During
the Term and for a period of at least 5
years
thereafter (including following any termination), Consultant shall, and shall
cause each of Consultant’s Representatives to, hold in confidence and refrain
from disclosing and/or using for the benefit of Consultant, any of its
Representatives or any third party any and all Confidential Information.
Consultant will not, and will not permit any of its Representatives to, use
Confidential Information for any purpose other than in carrying out Consultant’s
obligations under this Agreement without the prior written consent of Company.
These restrictions shall not apply to information which (i) is or becomes public
knowledge (through no act or omission of Consultant or any of its
Representatives), (ii) is lawfully made available to Consultant by an
independent third party which does not owe to Company any duty of
confidentiality with respect to such information (and such right can be properly
demonstrated by Consultant), (iii) is already in Consultant’s possession at the
time of initial receipt from Company (and such prior possession can be properly
demonstrated by Consultant), (iv) is independently developed by Consultant
or
its Representatives (and such independent development can be properly
demonstrated by Consultant), or (v) is required by order of any governmental
authprity or agency to be disclosed by Consultant; provided,
however, that
Consultant shall give Company sufficient prior written notice of such proposed
disclosure to permit it to seek a protective or similar order and Consultant
shall disclose only the minimum Confidential Information required to be
disclosed in order to comply, whether or not Company seeks or obtains any such
protective or other similar order.
(c) Consultant
shall provide the Confidential Information received hereunder only to
Consultant’s Representatives who are directly involved in the performance of the
Services and who are bound, by contract or otherwise, to maintain the
confidentiality of the Confidential Information. Consultant agrees to (i) advise
Consultant’s Representatives of the proprietary nature of the Confidential
Information and the terms and conditions of this Agreement requiring that the
confidentiality of such information be maintained and (ii) use all reasonable
safeguards to prevent unauthorized use or disclosure by its Representatives.
Consultant shall be responsible for any breach of this Agreement by any of
its
Representatives.
(d) All
Confidential Information which Consultant or any of its Representatives shall
obtain or be given access pursuant to or in connection with this Agreement
shall
be and remain the sole property of Company, and Consultant shall have no rights
or interests (except as expressly provided herein) to or in such Confidential
Information. Immediately upon expiration or termination of this Agreement,
Consultant shall return to Company all Confidential Information (including
all
copies thereof) then in the possession of Consultant or any of its
Representatives.
Section
6. Ability to Perform. Consultant
agrees promptly to inform Company of any event or change in circumstances which
may negatively affect Consultant’s ability to perform any of its obligations
under this Agreement in the manner contemplated by the Parties.
Section
7.
Relationship
with Company. Consultant
agrees that, in its relationship with Company under this Agreement, it is acting
in the capacity of an independent contractor and that it has no
authority
to represent or act on behalf of Company without Company’s prior written
consent. Consultant shall not hold itself out to any third person as purporting
to act on behalf of, or serving as the agent of, Company, and Consultant is
not
authorized to enter into any agreements, whether oral or written, on Company’s
behalf.
Section
8. Compliance with Laws. Consultant
represents, warrants and
covenants that it shall, and shall cause its Representatives to, comply with
all
applicable local, state and federal laws, rules and regulations.
Section
9. Indemnification; Limitation on Damages.
(a) Each
Party shall indemnify and hold harmless the other Party, its subsidiaries and
other affiliates, and their respective Representatives from and against all
liabilities, losses, claims, costs, expenses (including reasonable attorneys’
fees) and damages arising out of or resulting from any willful misconduct or
negligent act or omission of the indemnifying Party or its
Representatives,
any
breach of this Agreement by the indemnifying Party, or any violation by the
indemnifying Party and/or its Representatives of any local, state or federal
law, rule or regulation applicable to the performance of the indemnifying
Party’s obligations under this Agreement.
(b)
Consultant shall not assert and hereby waives any claim or cause of action
it
may now have or hereafter acquire against Company and its affiliates on any
theory of liability for any one or more of special, indirect, incidental,
exemplary, consequential or punitive damages in connection with or as a result
of this Agreement or the transactions contemplated hereby, it being the
intention of the Parties and an inducement to Company to enter into this
Agreement that Company may only be liable under this Agreement for actual and
direct damages.
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Section
10. Intellectual Property.
(a) All
of
Consultant’s work product under this Agreement and all concepts, inventions,
ideas, patent rights, data, trademarks, and copyrights which are related to,
arise out of, or developed in connection with (i) Consultant’s work product or
(ii) any and all Services shall be the exclusive property of, and all ownership
rights therein shall vest in, Company. Consultant agrees to sign all necessary
documents or take such other actions as Company may reasonably request in order
to perfect any and all such rights.
(b) The
Parties expressly agree that all works created pursuant to this Agreement are
Works Made For Hire, as defined in the U.S. Copyright Act, 17 U.S.C. §101, and
shall vest in Company as author. All other work product, whether copyrightable
or not, including without limitation any works which may be deemed by competent
authority not to be Works Made For Hire, created pursuant to this Agreement,
are
hereby assigned to Company, including without limitation all right, title and
interest in and to the copyright thereof throughout the world, all renewals
and
extensions thereof and the right to make and distribute copies in any media,
to
translate, and/or make derivative works therefrom. Consultant agrees to execute
and to secure the execution from the applicable authors retained by Consultant
all registrations, assignments, transfer documents and other instruments
necessary or desirable in the reasonable opinion of Company to record any
assignment or registration of copyright or other transfer of ownership in any
work transferred to Company pursuant to this Agreement.
(c) Notwithstanding
the foregoing, Consultant shall retain sole and exclusive ownership of all
right, title and interest to and in its proprietary information, templates,
processes, methodologies, inventions, patents, know-how and software owned
by it
as of the Effective Date, and all derivative works based upon an improvement
to
any of the foregoing, provided that the derivative works or improvements (i)
are
of general application, (ii) do not contain any, or are not developed using
any,
Company Confidential Information or other specific information about or relating
to Company or its products, processes, plans or finances and (iii) were
discovered, created or developed solely by Consultant without assistance from
Company during Consultant’s provision of the Services for Company (all of the
foregoing, the “Consultant Intellectual Property”). To the extent Consultant
Intellectual Property is necessary for the use of the Services or deliverables
provided under this Agreement, Consultant grants to Company for the benefit
of
Company and its affiliates, agents, successors, permitted assigns and
contractors the irrevocable, perpetual, non-exclusive, worldwide, royalty-free,
paid-up right and License to Consultant Intellectual Property for Company’s use
of such Services or deliverables.
Section
11. General Representations, Warranties and Covenants.
(a) Consultant
represents, warrants and covenants that it shall perform the Services in a
professional and workmanlike manner.
(b) Consultant
represents, warrants and covenants that all materials, items furnished and
all
workmanship shall be of high quality. Consultant shall replace or reperform,
as
deemed necessary by Company, any of the materials, items furnished or Services
that are found lacking or defective, in the reasonable opinion of Company,
without additional cost to Company.
(c) Consultant
represents and warrants that, as of the Effective Date, it is not a party to
any
oral or written contract or understanding with any third party that is
inconsistent with this Agreement and/or Consultant’s obligations or performance
under this Agreement or that will in any way limit or conflict with its ability
to fulfill the terms of this Agreement. Consultant further represents, warrants
and covenants that it will not enter into any such contract or understanding
during the Term.
(d) Consultant
represents and warrants that neither Consultant nor any Representative of
Consultant who is directly concerned with the performance of the Services has
been debarred pursuant to the Federal Food, Drug and Cosmetic Act (“FDCA”) or is
currently excluded, debarred, suspended, or otherwise ineligible to participate
in the Federal health care programs or in Federal procurement or nonprocurement
programs. Moreover, if Consultant or any of its Representatives who is directly
concerned with the performance of the Services subsequently becomes debarred,
excluded, suspended or ineligible as set forth in the preceding sentence, or
is
convicted of a criminal offense that falls within the ambit of the Federal
statute providing for mandatory exclusion from participation in Federal health
care programs but has not yet been excluded, debarred, suspended, or otherwise
declared ineligible to participate in those programs, Consultant agrees
immediately to notify Company of such event. Consultant represents that it
has,
prior to entering this Agreement, complied with the requirements set forth
in
Exhibit
C
attached
hereto, and acknowledges that its completion of the Certification form in
Exhibit
C
is being
relied upon by Company as an inducement to entering into the Agreement.
Consultant covenants and warrants that it shall comply with the requirements
set
forth in Exhibit
C
for the
entire Term. Failure of Consultant to comply with this provision or with the
requirements set forth in Exhibit
C
shall be
a material breach of this Agreement.
3
(e) Consultant
represents, warrants and covenants that neither Consultant nor any
Representative or subcontractor of Consultant which is concerned with the
performance of the Services is, or during the Term will become, the target
of or
designated under any sanctions program that is established by statute or
regulation of the United States, by Executive Order of the President of the
United States or by designations of any department or agency of the United
States government including those designations reflected in the “List of
Specially Designated Nationals and Blocked Persons” of the Office of Foreign
Assets Control, U.S. Department of the Treasury
(xxxx://xxx.xxxxx.xxx/xxxxxxx/xxxxxxxxxxx/xxxx/xxx/xxxxxx.xxx). If Consultant
or
any Representative or subcontractor of Consultant which is concerned with the
performance of the Services becomes the target of or designated under any such
sanctions program during the Term, Consultant shall immediately notify Company
thereof. Any misrepresentation or failure by Consultant to comply with this
Section 11(e) shall be a material breach of this Agreement, and in such event
Company may terminate this Agreement without payment of penalty or damages
or
further performance of any kind and refuse delivery of any goods, technology
or
services regardless of any existing contractual obligation.
(f) Consultant
shall neither disclose to Company or induce Company to use any secret or
confidential information or material belonging to any third party.
(g) Consultant
shall provide to Company with any deliverables to be provided under this
Agreement a written summary sheet listing any third party software or other
intellectual property contained within or necessary for the use of the
deliverables or Services (collectively, the “Third-Party Intellectual
Property”), if any, together with licenses permitting Company and its affiliates
to use such Third-Party Intellectual Property in connection with its use of
the
deliverables or Services and the terms, conditions, and status of such licenses.
Except for the Third-Party Intellectual Property listed in the written summary
provided to Company pursuant to the preceding sentence, Consultant represents
and warrants that all work product created under this Agreement shall be
original work of Consultant or in the public domain. Consultant represents
and
warrants that none of the Services, work product or deliverables delivered
or
created pursuant to this Agreement infringes or violates any copyright,
trademark, patent, trade secret or other intellectual property or other rights
of any third party, and that Consultant has all of the rights necessary to
perform its obligations hereunder without infringing any third party rights.
Consultant further represents and warrants that it has all rights, licenses
and
interests necessary to provide the Third Party Intellectual Property to Company
and its affiliates and to grant Company and its affiliates the rights and
licenses to use such Third-Party Intellectual Property for the purposes
contemplated by this Agreement. Consultant grants to Company for the benefit
of
Company and its affiliates, agents, successors, permitted assigns and
contractors the royalty-free paid-up right and license to use such Third-Party
Intellectual Property for the purposes contemplated by this
Agreement.
(h) Consultant
agrees that, in subcontracting any portion of the Services or in arranging
for
supplies, materials or other items or services required for completion of the
Services which are authorized to be billed to Company hereunder as an expense,
Consultant shall not enter into any agreement or arrangement which is not
terminable without cause and without the consent of the subcontractor on terms
no more restrictive than those set forth in Section 4. Consultant shall assign
the unused portion of any such agreement or arrangement to Company at Company’s
request, and such assignment shall be permitted by such agreement or
arrangement.
(i) Consultant
agrees that performance by Consultant, its employees, agents, and/or
subcontractors of the Services shall be in compliance with all applicable local,
state, and federal laws, rules, and regulations, including without limitation
the applicable provisions of the Federal Occupational Safety and Health Act
of
1970, as amended, the Fair Labor Standards Act, the Fair Employment Practices
Law, the Equal Pay Act, and the Immigration Reform Act of 1986. Where
applicable, Consultant shall comply with Executive Order 11246, the
Rehabilitation Act of 1973 and the Vietnam Era Veteran Readjustment Assistance
Act.
(k) Consultant
shall, prior to the start of Services by any Consultant Representative,
determine and confirm in writing to Company that any such Consultant’s
Representatives are legally authorized to work in the United States. Consultant
shall have the responsibility to complete the Department of Labor’s Form 1-9 and
to retain it for the statutorily designated period. If so requested by Company,
Consultant shall provide copies of such Forms 1-9 to Company from time to time
unless such disclosure shall be prohibited by applicable law.
4
Section
12. Insurance.
Consultant
shall, during the Term, at its own cost and expense, maintain in full force
and
effect the following insurance coverage:
(i)
|
Worker’s
Compensation Insurance in accordance with the statutory requirements
of
the state(s) in which the Services are to be performed;
|
(ii)
|
Employer’s
Liability Insurance with a minimum limit of
$1,000,000;
|
(iii)
|
Automobile
Liability Insurance covering all owned, non-owned and hired automobiles,
with a minimum $1,000,000 combined single limit for bodily injury
and
property damage per occurrence; and
|
(iv)
|
General
Liability Insurance, including contractual liability covering Consultant’s
obligations to indemnify Company under this Agreement, with a minimum
$
2,500,000 combined single limit for bodily injury and property damage
per
occurrence.
|
Consultant
shall, within 15 days after request by Company, furnish to Company a certificate
of insurance evidencing the foregoing insurance which shall provide for 30
days’
prior written notice to Company in the event of cancellation or any material
change in such insurance.
Section
13. Audits.
(a) Consultant
shall maintain accurate and complete records of all contracts, papers,
correspondence, copybooks, accounts, invoices, and/or other information in
Consultant’s possession relating to this Agreement (collectively, “Records”).
The Records shall be maintained in accordance with recognized commercial
accounting practices and retained during the Term and thereafter for a period
of
3 years. Consultant agrees to permit Company or Company’s Representatives to
examine and audit the Records at no charge to Company, with prior written
notification and during normal business hours. Company shall not have access
to
individual payroll records, but shall have access to time sheets and related
records to the extent necessary to verify charges based on hourly
xxxxxxxx.
(b) To
the
extent that the Services include (i) operation or management of any Company
website, (ii) access by Company to a website, database, server or other service
which will cause Consultant to be in possession of any information belonging
to
Company or which Company is required to safeguard or maintain, or (iii) Services
which otherwise permits Consultant to electronically store, access or transmit
information belonging to Company or which Company is required to safeguard
or
maintain, Company shall have the right, but not the obligation, to conduct
a
data security audit of Consultant’s systems and premises to evaluate
Consultant’s anti-virus, anti-hacker, encryption, firewall and other data
security technology, and general computer controls, measures and
practices.
(c) No
failure or delay by Company to exercise its audit rights or to discover issues,
errors, discrepancies or other problems in any such audit shall relieve
Consultant of any liability, even if such audit would or should have discovered
issues, errors, discrepancies or other problems leading to or contributing
to
Consultant’s liability or obligation.
Section
14. Miscellaneous.
(a) Notices.
All
notices, approvals, demands, requests, consents, waivers and other
communications (each a “Notice”) shall be in writing. Notices shall be validly
given or served when (i) hand delivered, (ii) delivered by recognized commercial
overnight courier service, or (iii) delivered by registered or certified first
class United States mail, postage prepaid, return receipt requested, to the
appropriate Party at its address set forth on the signature page hereof, or
to
such other address as shall have been specified by such Party in a Notice given
hereunder.
5
(b) Assignment.
Consultant shall not assign this Agreement to any person or entity (including
by
operation of law, judicial process or otherwise) without the prior written
consent of Company, which consent may be withheld for any reason or without
reason. Company shall be entitled to assign this Agreement to any of its
subsidiaries or other affiliates (including by operation of law, judicial
process or otherwise) or any successor to Company’s business or operations
without prior notice to or consent from Consultant.
(c) Successors
and Assigns.
Subject
to Section 14(b), this Agreement shall inure to the benefit of and be binding
on
Company, Consultant and their respective permitted successors and
assigns.
(d) Headings.
The
headings used in this Agreement are merely for convenience and shall not limit,
alter or be used to interpret the meaning of any section hereof.
(e) Severability.
If any
portion of this Agreement or the application thereof to any Party is held by
a
court of competent jurisdiction to be invalid, illegal, non-binding, or
unenforceable in any respect, this Agreement shall be construed as if such
invalid, illegal, non-binding or unenforceable portion had never been contained
herein, and the remaining portions hereof or applications to a Party shall
remain in full force and effect.
(f) Counterparts;
Facsimile Signatures.
This
Agreement may be executed in counterparts, each of which shall be an original
and all of which shall constitute one and the same instrument. Executed
signatures pages to this Agreement may be delivered by facsimile (including
copy
sent by e-mail) and such facsimiles shall be deemed as if actual signature
pages
had been delivered.
(g) Governing
Law.
THIS
AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH
THE
LAWS OF THE COMMONWEALTH OF PUERTO RICO WITHOUT GIVING EFFECT TO THE CONFLICTS
OF LAWS PRINCIPLES THEREOF.
(h) Jurisdiction;
Trial by Jury Waiver.
SUBJECT
TO SECTION 14(o); COMPANY AND CONSULTANT IRREVOCABLY AND UNCONDITIONALLY AGREE
THAT ANY ACTION, SUIT OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT
OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY SHALL BE BROUGHT ONLY IN THE
UNITED STATES DISTRICT COURT FOR THE DISTRICT OF PUERTO RICO OR IN ANY COURT
OF
THE STATE OF COMMONWEALTH OF PUERTO RICO. TO THE FULLEST EXTENT PERMISSIBLE
BY
LAW, EACH PARTY HEREBY CONSENTS TO THE PERSONAL JURISDICTION AND VENUE OF SUCH
COURTS AND HEREBY WAIVES ANY CLAIM OR OBJECTION THAT SUCH COURT IS AN
INCONVENIENT FORUM. COMPANY AND CONSULTANT IRREVOCABLY AND UNCONDITIONALLY
WAIVE
THE RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING OF ANY KIND OR
NATURE TN ANY COURT TO WHICH THEY BECOME PARTIES RELATING TO THIS AGREEMENT
OR
ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY.
(i) Waivers;
Cumulative Rights and Remedies.
No
failure or delay on the part of either Consultant or Company in exercising
any
right hereunder shall operate as a waiver of, or impair, any such right. No
single or partial exercise of any such right shall preclude any other or further
exercise thereof or the exercise of any other right. No waiver of any such
right
shall have effect unless given in a signed, written document. No waiver of
any
such right shall be deemed a waiver of any other right hereunder.
(j) Force
Majeure.
If the
performance or observance of this Agreement or of any obligation herein is
prevented or delayed by reason of an act of God, civil commotion, storm, fire,
riots, strikes, legal moratorium, war, revolution or action by government,
the
Party so affected shall, upon prompt notice of such reason being given to the
other Party, be excused from such performance or observance to the extent of
such prevention or during the period of such delay, provided that the Party
so
affected shall use its reasonable best efforts to avoid or remove the cause
or
causes of non-performance and observance with utmost dispatch.
(k) Further
Assurances.
Each
Party will promptly do, execute, acknowledge, and deliver any and all further
acts, documents, instruments, records, papers, and assurances as are reasonably
necessary or required to carry out the intention and facilitate the observance
and performance of this Agreement.
6
(l) No
Publicity.
Consultant shall not (i) use the name of Company in any publicity or advertising
or (ii) issue a press release or otherwise publicize or disclose any information
related to the existence of this Agreement or the terms and conditions hereof,
without the prior written consent of Company.
(m) Controlling
Terms; Integration and Amendments.
All
Exhibits attached hereto are incorporated by reference just as if they were
set
forth in the text of this Agreement. No term, condition or other provision
of
any attachments to this Agreement shall supersede any term, condition or other
provision of this Agreement and with respect to any inconsistency, conflict
or
ambiguity, this Agreement (including Exhibit
B
and
Exhibit C)
shall
control. This Agreement represents the entire understanding between the Parties,
and hereby supersedes all prior understandings and agreements, whether oral
or
written, between the Parties with respect to the Services. This Agreement may
not be modified, amended, waived, or otherwise changed, in whole or in part,
except in a writing that is signed by the Parties.
(n) Survival.
Sections
3, 5, 9, 10, 11(a),
11(b), 11(g), 13 and 14 shall
survive termination of this Agreement. Termination of this Agreement shall
not
affect, or be construed as a waiver of, any claim of a Party arising from a
breach or default under this Agreement by any other Party prior to
termination.
(o) Dispute
Resolution.
Any
dispute arising out of or relating to this Agreement shall be resolved in
accordance with the procedures specified in this Section
14(o), which
shall be the sole and exclusive procedures for the resolution of any such
disputes.
(i)
The
Parties shall attempt in good faith to resolve any dispute arising out of or
relating to this Agreement promptly by negotiation between executives who have
authority to settle the controversy and who are at a higher level of management
than the persons with direct responsibility for administration of this
Agreement. Any Party may give the other Party written notice of any dispute
not
resolved in the normal course of business. Within 20 days from the date of
delivery of such notice, the receiving Party shall submit to the other Party
a
written response. The notice and response shall include (A) a statement of
that
Party’s position and a summary of arguments supporting that position, and (B)
the name and title of the executive who will represent that Party and of any
other person who will accompany the executive. Within 45 days from the date
of
delivery of the initial notice, the executives of both Parties shall meet at
a
mutually acceptable time and place, and thereafter as often as they reasonably
deem necessary, to attempt to resolve the dispute. All reasonable requests
for
information made by one Party to the other Party shall be honored. All
negotiations pursuant to this paragraph are confidential and shall be treated
as
compromise and settlement negotiations for purposes of applicable rules of
evidence.
(ii)
If
the dispute has not been resolved by negotiation as provided herein within
45
days from the date of the initial meeting of the executives provided for above,
the Parties agree to attempt in good faith to settle the dispute by confidential
non-binding mediation under the CPR Mediation Procedure then currently in
effect. Unless otherwise agreed by the Parties, a single mediator will be
selected from the CPR Panels of Distinguished Neutrals pursuant to the CPR
Mediation Procedure then currently in effect. The Parties will share equally
in
the costs of the mediation.
(iii)
Any
dispute arising out of or relating to this Agreement which has not been resolved
by mediation as provided herein within 45 days from the date of the appointment
of a mediator, shall be finally resolved by arbitration in accordance with
the
CPR Rules for Non-Administered Arbitration then currently in effect, by three
arbitrators of whom each Party shall appoint one in accordance with the
‘screened’ appointment procedure provided in Rule 5.4
of
such
rules and the third arbitrator shall be designated by CPR as provided in such
rules. The arbitration shall be governed by the Federal Arbitration Act, 9
U.S.C. §§l—16, and judgment upon the award rendered by the arbitrators may be
entered by any court having jurisdiction thereof. The place of arbitration
shall
be the Commonwealth of Puerto Rico. The arbitrators shall have no power or
authority, under the CPR Rules for Non-Administered Arbitration or otherwise,
to
relieve the Parties from their agreement hereunder to arbitrate or otherwise
to
amend or disregard any provision of this Agreement. In evaluating the claims
of
the Parties, the arbitrators shall be bound to apply and follow applicable
law
as set forth in Section
14(g).
7
(iv)
A
hearing before the arbitrators shall be held within 120 days from the date
of
the appointment of the third arbitrator. Prior to the hearing, the Parties
shall
be entitled to engage in discovery under procedures of the Federal Rules of
Civil Procedure; provided,
however, that
a
Party may not submit more than fifty written interrogatories or take more than
four depositions, all of which shall be concluded not less than 30 days prior
to
the date of the hearing. At least five business days prior to the date of the
hearing, each Party shah submit to the other Party a copy of all exhibits on
which such Party intends to rely at the hearing, a pre-hearing brief not to
exceed 35 pages and a proposed disposition of the dispute not to exceed five
pages. The proposed disposition shall be limited to proposed rulings and
remedies on each issue, and shall contain no argument on or analysis of the
facts or issues. Within five business days after the close of the hearing,
each
Party may submit a post-hearing brief not to exceed five pages, and the
arbitrators shall render their award no later than 30 days after the end of
such
hearing. Discovery may be further limited, at the discretion of the
arbitrators.
(v)
Notwithstanding anything contained in this Section
14(o)
to the
contrary, each Party shall have the right to institute judicial proceedings
against the other Party, or anyone acting by, through or under such other Party,
in order to enforce the instituting Party’s rights hereunder through specific
performance, injunction or similar equitable relief. The statute of limitations
of the Commonwealth of Puerto Rico applicable to the commencement of a lawsuit
shall apply to the commencement of an arbitration hereunder, except that no
defenses shall be available based upon the passage of time during any
negotiation or mediation called for by this Section
14(o).
8
IN
WITNESS WHEREOF, the
Parties have caused this Agreement to be duly authorized, executed, and
delivered as of the first date set forth above.
Plaza
Consulting Group of PR Inc.
By:____________________________________
Name:
_________________________________
Title:
__________________________________
Company
By:____________________________________
Name:
_________________________________
Title:
__________________________________
Exhibit
A to Consulting Agreement
PROJECT
The
Project consists of providing support for the following:
PROJECT TIMING
The
final
date for project completion is ____________________,
2006.
COST
AND PAYMENT SCHEDULE
The
rate
per hour is as follows:
The
following exhibits B and C or exhibits containing similar terms may be requested
by one or more of our major customers
Exhibit
B to Consulting Agreement*
REIMBURSEMENT
POLICY
Company
will generally reimburse Consultant for all reasonable and necessary business
expenditures incurred by Consultant and its Representatives associated with
the
Services. Such reimbursement is subject to the following conditions: (i)
compliance with the terms of the Agreement, including this Exhibit
B,
(ii)
the submission of detailed supporting receipts (summary credit card slips are
not sufficient), and (iii) unless
specifically agreed to in each instance by the Company employee managing the
relevant Project (the “Project Supervisor”), the limitations, conditions and
requirements set forth herein. Such reimbursable expenses include but are not
limited to travel and subsistence expenses incurred as a direct result of the
performance of Services hereunder and exclude personal entertainment and
expenses which should otherwise likely be incurred.
All
reimbursable expense requests that do not conform to the limitations, conditions
and requirements set forth below must be pre-approved in writing by the Project
Supervisor. Detailed receipts (e.g.,
itemized
hotel bills but not summary credit card receipts) are not required for expenses
included in the per diem
amount
set forth below.
The
following are the reimbursement policies applicable to this
Agreement:
Travel-Related
Expenses
1.
|
Consultant’s
Representatives shall not travel at Company’s expenses unless such travel
is required in order for Consultant to perform the
Services.
|
2.
|
Consultant
Representatives who travel in connection with the performance of
the
Services may only travel by business class travel if the actual scheduled
flight time exceeds nine hours on any leg of the trip. The nine .hour
requirements is for actual scheduled flight time only and does not
include
travel to and from the airport, lay-over time spent in an airport
or
airport delays.
|
3.
|
When
Consultant’s Representatives are on-site at a Company facility or other
location designated by Company (other than Consultant’s or one of its
Representatives places of business or homes) (referred to herein
as a
“Work Site”) for less than one month, hotel rooms shall be booked through
Company’s travel group. When such travel, either on one trip or a series
of related trips, Consultant should discuss lodging arrangements
with the
Project Supervisor prior to making any
arrangements.
|
4.
|
Company
will reimburse Consultant for use by its Representatives of taxis
or car
service sedans for travel between (i) an airport and such Representative’s
residence, and (ii) an airport or hotel and Work Sites on Company
requested business. Whenever available, unless it would interfere
with the
timely availability of Consultant’s Representatives at a Work Site, free
or low cost hotel shuttles should be used when traveling between
a hotel
and a Company site.
|
5.
|
Auto
rental is preferred if Consultant’s Representative is at a Company Site
for longer than 24 hours, unless local conditions would make use
of taxis
or car service sedans less expensive. In these instances, Consultant
should obtain the agreement of the Project Supervisor on its choice
of
transportation.
|
6.
|
When
automobile rental is authorized or required, Consultant’s Representatives
should share such rental care unless such sharing would likely interfere
with the performance by them of the Services. Consultant should rent
(or
cause its Representative to rent) a mid-size car unless more than
two
people will be sharing the same vehicle, in which case a full-size
car is
permitted. Fuel service options should not be utilized and will not
be
reimbursed. If Consultant or its Representative(s) requires an auto
rental
for a period of longer than three months, Consultant should so advise
the
Project Supervisor and Company will arrange for a “mini lease” agreement,
on behalf of Consultant, for the required period. Leases will be
booked
through Company’s travel group for Work Sites in North America. For Work
Sites outside North America, Consultant must obtain appropriate
instruction from the Project
Supervisor.
|
7.
|
Where
the use of personal automobiles of Consultant’s Representative(s) is
required or authorized in the US and Puerto Rico, daily travel mileage
between the Work Site and Consultant’s place of business or such
Representative’s residence or hotel, whichever is closer, beyond 35 miles
each way will be compensated at the applicable rate approved and
published
by the U.S. Internal Revenue Service (“IRS”). Travel between Work Sites
for business related requests shall also be compensated at such rate.
Use
by Consultant’s Representatives of their respective personal automobiles
to travel to and from home on weekends will be compensated at such
rate
without regard to the 35-mile minimum distance referred to above.
Use of
personal automobiles at all other locations will be compensated according
to Company’s policy applicable to such Work Site and must be discussed in
advance by Consultant and with and approved by the Project Supervisor.
No
compensation will be paid for the use of personal vehicles where
such use
is not directly related to Company business. The reimbursement described
in this. paragraph shall not apply to the use of rented or leased
automobiles paid for by Company. In addition, any use of personal
automobiles for trips in excess of 150 miles must be approved in
advance
by the Project Supervisor.
|
8.
|
If
a Consultant Representative performs all of the work they are performing
on behalf of Consultant for Company at a Work Site and such Representative
will be away from home for an extended period, then with the prior
approval of the Project Supervisor, Company will reimburse Consultant
for
the costs of such Representative to travel home on weekends not more
frequently than every other weekend. Departure should take place
from the
Work Site no earlier than 12:00 noon on Friday (or the next preceding
business day if Friday is a holiday at the relevant Work Site) and
individuals should be available to begin work at Company’s site by 9:00 am
Monday morning (or the next succeeding business day if Monday is
a holiday
at the relevant Work Site). Such travel at times other than on weekends
will not be reimbursed by Company unless approved in advance by the
Project Supervisor
|
Personal
and Living
Expenses
1.
|
Unless
alternative arrangement are agreed to by the Project Supervisor,
in lieu
of reimbursing Consultant for daily living expenses incurred by its
Representatives while traveling for the performance of the Services
Company shall pay to Consultant a per
diem
allowance of $___ for each traveling Representative for each day
such
representative is living away from his or her home for the performance
of
the Services. Such per diem allowance shall not be paid for travel
not
requiring an overnight stay at a hotel or other remote location.
No per
diem amount will be paid for any Consultant Representative while
living at
his or her home. No per diem amount will be paid for any Consultant
representative for any day on which such Representative is not present
at
the Work Site for a minimum of 4 hours, except that the per diem
allowance
will be paid on weekends during which the Representative does not
travel
home pursuant to paragraph 9 above.
|
2.
|
Receipts
are not required to be submitted for expenses included in the per
diem allowance.
The per
diem allowance
is the full and sole reimbursement for the following types of expenses
incurred by Consultant and its Representatives while
traveling:
|
•
|
Daily
meals related to work days and weekends. Per diems will not be paid
for
travel days to or from the site (i.e. returning home or arriving
at the
location) unless a minimum of 4 hours are worked at the
site.
|
•
|
Laundry
|
•
|
Tolls
and parking
|
•
|
Phone
calls, whether personal or business related, including mobile/cellular
phones
|
•
|
Hotel
internet access charges
|
3.
|
Company
will not reimburse Consultant for expenses incurred by its Representatives
for:
|
•
|
Clothing
|
•
|
Toiletries
|
•
|
Movies,
games and other personal
entertainment
|
•
|
Costs
incurred by guests of a
Representative
|
•
|
Exercise
room or gym charges
|
Non-reimbursable
Expenses
In
accordance with standard policies and procedures, the following are types of
expenses for which the Company will not reimburse, unless expressly agreed
to in
a prior writing by the Parties:
-
|
First
class air travel
|
-
|
Add-on
costs with respect to outside
services
|
-
|
Xxxx-up
on the work product of outside professionals, including by not limited
to
freelancers
|
-
|
Presentations
for new business
|
-
|
Gifts
to Company employees
|
-
|
Entertainment
of Company employees
|
-
|
Xxxx-up
on out-of-pocket expenses
|
-
|
Any
other non reasonable, non business related
expense.
|
Note:
|
This
list sets forth the major items for which Company will not reimburse
Consultant and is meant to be merely illustrative and not exhaustive.
All
Consultant expenses shall be reviewed with respect to the reasonableness
of such expenses.
|
Exhibit
C to Consulting Agreement*
CONSULTANT
CERTIFICATION
Consultant,
through its authorized officer below, certifies as follows:
(1)
|
Consultant
and all of its Representatives (as defined in the Agreement) who
work on
or are responsible for the Company’s account have been screened against
the following Exclusion
|
Lists:
a.
|
The
Health and Human Services/Office of the Inspector General (HHS/OIG)
List
of excluded Individuals/Entities (presently accessible
at
|
xxxx://xxx.xxx.xxx/xxxxx/xxxxxxxxxx.xxxx)
b.
|
the
Federal General Services Administration’s List of Parties Excluded from
Federal Programs (presently accessible at xxxx://xxxx.xxxxx.xxx/)
|
No
Representatives who currently working on or are responsible for the Company’s
account are included on these databases.
(2)
|
Representatives
working on or responsible for the Company’s account have been provided
with the Company’s procedures and
are familiar with them.
|
(3)
|
All
new Representatives working on or responsible for the Company’s account,
through the remainder of the Term of the current Agreement (and any
extension thereof), will be screened against the Exclusion Lists
set forth
in paragraph (1) above, and be provided with the procedures to
assure that they are familiar with them prior to working on the Company’s
account.
|
(4)
|
Through
the remainder of the Term of the Agreement (and any extension thereof)
Consultant will continue to screen its Representatives working on
or
responsible for the Company’s account, at least
annually.
|
(5)
|
Consistent
with Paragraph 13 of the Agreement, Consultant will maintain records
documenting its compliance with the requirements of Paragraph (1)-(4)
above should they be required for audit or verification
purposes.
|
Plaza
Consulting Group of PR Inc.
By:____________________________________
Name:
_________________________________
Title:
__________________________________