Exhibit 10.13
CONSULTING
AGREEMENT
This CONSULTING AGREEMENT (this "Agreement") is
made effective as of the 25th day of August, 2008 (the "Effective
Date"), by and between The Amacore Group, Inc., a Delaware
Corporation (the "Company"), and Giuseppe Crisafi, an individual
resident living in London, United Kingdom (the
"Consultant").
RECITALS:
WHEREAS, the Company desires to engage the
Consultant to perform the consulting services as more fully set
forth herein; and
WHEREAS, the Consultant desires to be engaged by
the Company on the terms and conditions set forth in this
Agreement.
NOW, THEREFORE, in consideration of the Recitals
and of the mutual promises and covenants set forth herein and for
other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, it is hereby agreed as
follows:
1.
Engagement. The Company hereby engages the Consultant to
perform the Services (as defined herein) and the Consultant hereby
accepts such engagement with the Company in accordance with the
terms and conditions set forth in this Agreement. The Consultant
shall devote such time and attention to the Services as are
reasonably necessary to perform such Services, but the Company
acknowledges that this Agreement is not exclusive and that
Consultant can provide non-competing services to other entities or
on his own behalf.
2.
Services. The Consultant shall provide on a non-exclusive
basis to the Company management, business, operational, financial,
accounting, and other consulting services from time to time as may
be requested by the Company or its agents or representatives (the
"Services").
3.
Consulting Fee. In consideration for performing the Services
for the Company, the Company shall pay the Consultant as
follows:
(a) upon
execution of this Agreement, the Company shall issue to the
Consultant a one-time grant of 500,000 shares of the Company's
Class A Common Stock, which grant shall be subject to Rule 144
under the Securities Act of 1933; and
(b) for
the term of this Agreement, a fee paid at an annual rate of Three
Hundred Ninety Thousand Seven Hundred Fifty Dollars ($390,750),
which fee shall be payable in equal installments in accordance with
the Company's customary payroll practices. All late payments will
incur an interest charge at the rate of 5% per annum from the due
date through the date of payment.
EXECUTION COPY
4. Other
Consulting Arrangements.
(a)
Health and Dental Benefits. The Company hereby agrees that,
for the term of this Agreement, it shall reimburse the Consultant
for health and dental insurance, which reimbursement amount is
included in the amount of the fee payable under Section 3 hereof.
The Consultant acknowledges and agrees that he has received
information regarding his right to elect continuation of his group
health and dental insurance coverage under federal law ("COBRA"),
which if elected may allow him to continue that insurance coverage
for up to an eighteen (18)- month period after his separation. If
the Consultant wishes to elect COBRA coverage, the Consultant
agrees that he shall be responsible for the full COBRA
premium.
(b)
Expense Reimbursement. Provided that the Consultant has
obtained the prior written authorization by the Company to incur an
expense in connection with the provision of Services, the Company
shall pay, upon submission of appropriate vouchers and supporting
documentation, such authorized expense incurred by the Consultant,
in accordance with the Company's usual and ordinary expense
reimbursement practices.
(a)
Term. This Agreement shall commence as of the Effective Date
and shall continue in full force for a period of six months
thereafter (the "Term"), unless earlier terminated as provided
herein.
(b)
Termination. This Agreement may be terminated prior to
expiration of the Term as provided in paragraph 5(a) above, by
prior written notice to the other party as follows:
(i) by
either party, in the event the other party should breach or fail to
perform any of its material obligations hereunder and should fail
to remedy such breach or nonperformance within thirty (30) calendar
days after receiving written demand therefor. Notwithstanding, the
Company may not claim a breach of non-performance based on the
number of hours Consultant works or based on requested travel not
taken by Consultant;
(ii) by
either party, effective immediately, if the other party shall have
been convicted of a felony violation or if Consultant is arrested
or charged with a crime not instigated by the Company and such
arrest or charge negatively effects the business or reputation of
ACGI; or
(iii)
by the Company, effective immediately, if the Consultant (1)
knowingly makes any materially false or untrue statements or
representations to the Company herein or in the performance of its
obligations hereunder; or (2) engages in gross negligence, willful
misconduct or fraud in the performance of the Services
hereunder.
6. Return
of Materials. Upon termination of this Agreement for any
reason, the Consultant shall promptly return to the Company all
files, credit cards, keys, instruments, equipment, vehicles, and
any other property or materials provided to the Consultant by the
Company.
EXECUTION COPY
7. Covenant
Not to Compete.
(a) Scope of
Covenant. The Consultant agrees that, subject to 7(b) herein,
during any Term of this Agreement and for a period of one (1) year
commencing upon the expiration or termination of the Consultant's
engagement hereunder (for any reason whatsoever) (the "Termination
Date") the Consultant shall not, directly or indirectly, for
himself or on behalf of or in conjunction with any other person,
persons, company, partnership, corporation or business of whatever
nature, without the prior written consent of the
Company:
(i) engage,
as an officer, director, shareholder, owner, partner, joint
venturer, or in a managerial capacity, whether as an employee,
independent contractor, consultant or advisor, or as a sales
representative, in any business selling any products or services in
direct competition with the Company or any of its subsidiaries
anywhere in the United States, its territories or possessions (the
"Territory");
(ii) solicit
any person who is at the Termination Date, or who was within one
(1) year prior to the Termination Date, an employee of the Company
or any of its subsidiaries for the purpose or with the intent of
enticing such employee away from or out of the employ of the
Company or any of its subsidiaries, except Mr. Clark Marcus, Dr.
Jerry Katzman and Ms. Sharon Mandel;
(iii) call
upon any person or entity which is, at the Termination Date or
which has been, within one (1) year prior to Termination Date a
customer of the Company or any of its subsidiaries within the
Territory for the purpose of soliciting or selling products or
services in direct competition with the Company or any of its
subsidiaries in its Business within the Territory, where Business
is defined as health care products or programs that are being sold
by the Company as of the Effective Date; or
(iv) engage
in any act intended to cause any customer or potential customer of
the Company located in the Territory with whom the Consultant had
contact to discontinue, curtail or forego Business with the Company
or to do Business with another entity, firm, business or enterprise
which is competitive with the Business of the Company or its
clients.
Provided,
however, that nothing in this Section 7(a) shall be construed to
preclude the Consultant from acquiring as a passive investment not
more than 5% of the capital securities of any business enterprise
whether or not engaged in competition with the Company or its
subsidiaries, if and to the extent such securities are actively
traded on a national securities exchange or in the over-the-counter
market in the United States or on any foreign securities
exchange.
(b) Target
Companies Activities Allows. Notwithstanding Section 7(a),
unless the Company by written notice has informed Consultant that
the Company has entered into definitive agreement(s) with target
compan(y/ies) listed on Schedule A hereto (each a "Target" and
collectively, the "Targets"), then at any time after the close of
business on , Consultant can freely conduct any
activities related to Target(s) without violating Section 7(a) and
without breaching this Agreement. Such activities may include, but
are not limited to, conducting due diligence, acquiring an
interest, acquiring a controlling interest, meeting with potential
investors, raising funds, reviewing potential transactions, and
meeting with management from either company. But if Consultant does
move forward with any activity resulting in Consultant's directly
or indirectly acquiring an interest (greater than 5%) in any
Target(s), or becoming an officer, director, shareholder,
owner