EXECUTION COPY
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 Jerry Katzman, an
individual resident of the state of Florida (the
“Consultant”).
R E C I T A L S
:
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, medical, 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 an
annual fee of Two Hundred Thousand Dollars ($200,000), which fee
shall be payable in equal installments in accordance with the
Company’s customary payroll
practices. In addition, the Company agrees
to forgive debt owed by Consultant under a promissory note in the
amount of $46,000 and further agrees to gross up the fee payable
hereunder in such amount equal to the amount of taxes payable by
the Consultant by reason of the forgiveness of the foregoing
debt.
4.
Other Consulting Arrangements .
(a)
Health and Dental Benefits . Pursuant to that
certain Separation Agreement (the “Separation
Agreement”) by and between the Company and the Consultant,
dated as of an even date herewith, the Company has agreed to
provide certain benefits to the Consultant after the separation of
Consultant’s employment from the Company. 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. Pursuant to the Separation Agreement, the
Company shall pay the COBRA premium, if elected by the Consultant,
for the Term of this Agreement. After such time,
if the Consultant wishes to continue COBRA coverage, the Consultant
agrees that he shall be responsible for the full COBRA
premium. The Company’s obligation to provide
benefits under this Agreement shall under no circumstances exceed
payment of the COBRA premium for eighteen (18)-months.
(b)
Expense Reimbursement . Provided that the
Consultant has incurred business expenses that are reasonable,
appropriate and consistent with expenses while employed by the
Company (considering, among other things, the entire set of
circumstances) in the pursuit of the Services hereunder, the
Company shall pay, upon submission of appropriate vouchers and
supporting documentation, such expense incurred by the Consultant,
according to Company policy.
5.
Term and Termination .
(a)
Term . This Agreement shall commence as of the
Effective Date and shall continue in full force and effect for a
period of one year thereafter (the “Initial Term”),
unless earlier terminated as provided herein. This
Agreement may be renewed for successive one-year periods upon
mutual agreement of the parties (each a “Renewal Term”
and together with the Initial Term, the "Term").
(b)
Termination . This Agreement may be terminated
prior to expiration of the Initial or any Renewal 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 has 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.
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 except if termination occurs by reason of
Company's breach) (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 (as defined in (ii)
below)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, Mr.
Joe Crisafi and Ms. Sharon Mandel as well as Jared Katzman if the
Company terminates Mr. Katzman;
(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 Allowed
. Notwithstanding Section 7(a), unless the Company by
written notice has informed Consultant that the Company has entered
into definitive agreement(s) with target companies listed on
Schedule A hereto (each a "Target" and collectively, the
"Targets"), then at any time after the close of business on
September 15, 2008, 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 t