Exhibit
10.1
Consultant
Agreement
Consultant
Agreement, made
as of February 16, 2009, between MDwerks, Inc. (the
“Corporation”), Vandam Consulting Services, Inc, (the
“Consultant”) and Howard B. Katz
(“Katz”).
Whereas,
Katz
intends to resign as Chairman, CEO and Director of the Corporation,
and the Corporation wishes to assure itself of the services of Katz
through the Consultant for the period provided in this Agreement,
and the Consultant is willing to provide services to the
Corporation for the period under the terms and conditions
hereinafter provided.
Now,
Therefore, Witnesseth, that
for and in consideration of the premises and of the mutual promises
and covenants herein contained, the parties hereto agree as
follows:
The
Corporation agrees to and does hereby engage the Consultant, and
the Consultant agrees to and does hereby accept engagement by the
Corporation for the period commencing on the date hereof and
continuing for twenty four (24) months thereafter. The
period during which Consultant shall serve in such capacity shall
be deemed the “Engagement Period” and shall hereinafter
be referred to as such. If the annual revenue and other
performance targets described on Schedule A annexed hereto
are attained by Consultant, the term of the Engagement Period will
be extended for up to 2 additional twelve (12) month period by
notice given to Consultant no later than the last month of the
respective Engagement Periods.
The
Consultant shall render to the Corporation the services described
on Schedule B annexed hereto with respect to which the
Consultant shall apply its reasonable commercial efforts. Katz
shall be the principal contact person at the Consultant and shall
devote at least fifty percent (50%) of his working time to the
performance of Consultant’s obligations hereunder. The Chief
Executive Officer or President of the Corporation shall be the
Consultant’s principal contact person at the
Corporation.
The
activities engaged in by the Consultant on behalf of the
Corporation shall be subject to the policies of the Corporation in
all respects and the Consultant shall have no authority to act for,
represent, bind or obligate the Corporation. The
Consultant shall for all purposes be an independent contractor and
not an agent or employee of the
Corporation. Accordingly, except as specifically
provided herein, the Consultant shall not be eligible to receive
any employee based benefits which employees are otherwise eligible
for.
4.1 For
the services and duties to be rendered and performed by the
Consultant during the Engagement Period and in consideration of the
Consultant’s having entered into this agreement, the
Corporation agrees to pay to Consultant a monthly consulting fee
and a quarterly performance bonus in accordance with Schedule
C annexed hereto. In the event that the monthly
consulting fee for any month is not paid to Consultant by the fifth
(5 th
) day
of the month, the Corporation shall be deemed to be in breach of
this agreement. If the Consultant provides the Corporation with
written notice of such breach and the Corporation fails to cure
said breach within ten (10) days of its receipt of such notice,
then the Consultant shall be entitled to indemnification from the
Corporation for all its costs of collection, including attorneys
fees and disbursements, plus an additional amount equal to
fifty percent (50%) of the overdue amount as liquidated
damages.
4.2 In
the event Consultant provides services to the Corporation regarding
a merger, acquisition or divestiture, Consultant will receive a fee
equal to a percentage of the purchase price, sales price or
transaction valuation using the original Lehman Formula as set
forth on Schedule C.
4.3 During
the Engagement Period, Katz shall also be entitled to receive
family health care and individual long term care
benefits