Exhibit 10.6
CONSULTING AGREEMENT
This agreement dated this 1st day of
July, 2008 (the “ Effective Date ”), is
executed by and between MiddleBrook Pharmaceuticals, Inc., a
Delaware corporation (the “ Company ”),
located at 20425 Seneca Meadows Parkway, Germantown, MD 20876, and
Dave Becker (the “ Consultant ”), located
in Denton County, Texas (the “ Agreement
”).
WHEREAS, Equity Group Investments,
LLC (“ EGI ”) and the Company have entered into
a Securities Purchase Agreement of even date herewith (the “
Purchase Agreement ”) pursuant to which the
parties thereto have agreed, upon the terms and subject to the
conditions set forth therein, that the Company will sell to EGI
(i) 30,303,030 shares of the authorized but unissued shares of
common stock, $0.01 par value per share, of the Company (the
“ Common Stock ”) and (ii) a warrant
to purchase an aggregate of 12,121,212 shares of Common Stock (such
transaction known as the “ Transaction
”);
WHEREAS, the Consultant and the
Company have entered into an employment agreement (the “
Employment Agreement ”) of even date herewith
contingent upon the Closing (as defined in the Purchase Agreement)
of the Transaction, and effective as of the Closing Date (as
defined in the Purchase Agreement) of the Transaction (such
effective date of the Employment Agreement referred to herein as
the “ Commencement Date ”);
WHEREAS, the Company desires to
obtain consulting services from Consultant commencing on the
Effective Date, which the parties intend to be provided pursuant to
such terms and conditions as are set forth in this Agreement;
and
WHEREAS, based on the nature of the
relationship that the parties intend to establish, the Company
hereby engages the Consultant as an independent contractor and the
Consultant shall hereby provide consulting services on the terms
and conditions provided and described in this Agreement.
NOW, THEREFORE, in consideration of
the mutual promises and covenants of the parties as herein
contained, the parties hereto agree and contract as follows:
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The term of this Agreement (the “ Term
”) shall commence on the Effective Date and shall
automatically terminate immediately and become null and void upon
the earlier to occur of (i) the Commencement Date, (ii) the
termination of the Purchase Agreement pursuant to Section 7
thereof, (iii) the Consultant’s cessation of services to
the Company provided hereunder, or (iv) a termination of this
Agreement pursuant to Paragraph 11. |
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Commencing on the Effective Date, the Consultant shall provide
such consulting services with respect to the business of the
Company as the Company reasonably requests. The consulting services
that may be requested of Consultant shall be of a nature that
reflects and is consistent with Consultant’s skills,
experience, expertise and services. The Consultant |
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shall perform such services in a thorough, efficient, and
workmanlike manner, promptly and with due diligence and care, and
in accordance with that standard of care and skill ordinarily
exercised by members of the profession performing similar services.
In addition, Consultant shall comply with all applicable federal,
state and local statutes, ordinances and regulations in the course
of performing such objectives. |
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Consistent with the parties’ intent that the relationship
created by this Agreement be that of service recipient and
independent contractor, Consultant shall retain the exclusive right
to control and direct all details of the services that Consultant
performs hereunder, including where, when and how the services are
to be performed. Consultant’s failure to accomplish the
services by the applicable deadline, however, shall constitute a
material breach of this Agreement, unless the Company agrees to an
extended deadline. |
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During the Term, Consultant shall not be eligible to
participate in any benefit programs that the Company now or
hereafter maintains for its employees with respect to services
performed hereunder, and Consultant hereby waives any such right to
participate in the programs. This waiver of any right to
participate in Company-sponsored employee benefit programs
represents a material component of the terms of compensation agreed
to by these parties and is not in any way conditioned on any
representation or assumption concerning status of Consultant with
respect to the Company as an employee or independent
contractor. |
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For all purposes, including but not limited to the Federal
Insurance Contributions Act, the Social Security Act, the Federal
Unemployment Tax Act, income tax withholding and any and all other
federal, state and local laws, rules and regulations, Consultant
shall be treated as an independent contractor and not as an
employee with respect to the Company. |
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Consultant acknowledges and agrees that Consultant shall be
responsible (as a self-employed individual) for filing all tax
returns, tax declarations and tax schedules, and for the payment of
all taxes required, when due, with respect to any and all
compensation earned by Consultant under this Agreement. The Company
will neither pay nor withhold any employment taxes with respect to
the compensation it pays Consultant. Rather, the Company will
report the amounts it pays Consultant on IRS Forms 1099, to the
extent required to do so under applicable Internal Revenue Code
provisions. |
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Consultant’s fees for services provided under this
Agreement shall annually be Four Hundred Thousand USD ($400,000)
pro-rated and paid on a monthly basis for the full and partial
months during the Term, plus reasonable expenses as approved in
accordance with Company policies. The Company will not reimburse
Consultant for any other expenses incurred in connection with the
performance of services hereunder unless otherwise agreed by the
Company. For purposes of satisfying Section 409A of the
Internal Revenue Code of 1986, as amended, the parties agree that
any amount reimbursed hereunder for one calendar year shall not
affect the amounts reimbursed for other calendar years, and all
reimbursement payments, if any, shall in all events be made no
later than the end of the calendar year following the calendar year
in which the applicable expense is incurred. |
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The Consultant reserves the right to, and intends to, perform
services for others, so long as the performance of such services
does not interfere with the performance of services hereunder. |
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The Consultant recognizes and acknowledges that the Proprietary
Information (as hereinafter defined) is a valuable, special and
unique asset of the Company. As a result, both during the Term and
thereafter, the Consultant shall not, without the prior written
consent of the Company, for any reason either directly or
indirectly divulge to any third-party or use for his own benefit,
or for any purpose other than the exclusive benefit of the Company,
any confidential, proprietary, business and technical information
or trade secrets of the Company or of any subsidiary or affiliate
of the Company (the “ Proprietary Information
”) revealed, obtained or developed during the Term of the
Agreement. Proprietary Information shall include any confidential
or proprietary information or trade secrets relating to any patents
or other intellectual property assigned by the Consultant to the
Company. Proprietary Information also shall include, but shall not
be limited to the intangible personal property described in
Paragraph 10 hereof and, in addition, technical information,
including research design, results, techniques and processes;
apparatus and equipment design; comp |
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