ELECTRO-OPTICAL SCIENCES, INC. CONSULTING AGREEMENTConsulting Services Agreement |
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EXHIBIT 10.6
ELECTRO-OPTICAL SCIENCES, INC.
CONSULTING AGREEMENT
This Consulting Agreement (this "AGREEMENT") is made as of May 31,
2005, between Electro-Optical Sciences, Inc., a Delaware corporation with its
principal office at 3 West Main Street, Suite 201, Irvington, New York 10533
(the "COMPANY"), and Marek Elbaum, Ph.D. ("CONSULTANT"), residing at 79
Beechdale Road, Dobbs Ferry, New York 10533.
WHEREAS, the Company and Consultant agree that it is in both of
their best interests for Consultant to resign as a director and as Chief Science
and Technology Officer of the Company; and
WHEREAS, the parties desire to terminate the Employment Agreement
between the parties dated as June 20, 2003, as amended as of January 5, 2004,
and to enter into this Agreement in order to assure the Company of the services
of Consultant and to set forth the services and compensation of Consultant, all
upon the terms and conditions hereinafter set forth.
NOW, THEREFORE, in consideration of the foregoing and of the mutual
promises, representations and covenants contained herein, the Company and
Consultant agree as follows:
1. Position and Duties. The Company shall retain Consultant, and
Consultant shall serve, as the Company's Chief Scientist. Consultant shall
perform such services and functions customary with such position, including
without limitation advice on integration of product development, mentoring and
advising staff scientists, providing new product vision, supporting research and
development, and such other similar services as shall from time to time be
assigned to him by the Chief Executive Officer or the Chief Executive Officer's
designee (collectively, "MANAGEMENT").
Except as may be expressly otherwise consented to in writing by
Management, Consultant will use his best efforts to promote the interests of the
Company and devote a majority of his business time and energies to the business
and affairs of the Company. Without the prior consent of Management, which
consent shall not be unreasonably withheld, Consultant shall not, directly or
indirectly, as owner, partner, joint venturer, stockholder, Consultant,
corporate officer or director, engage or become financially interested in, or be
concerned with any other duties or pursuits which interfere with the performance
of the services described hereunder, or which even if noninterfering, may be
inimical or contrary to the best interests of the Company. Notwithstanding the
foregoing, Consultant's ownership of securities of a public company engaged in
competition with the Company's business not in excess of two percent (2%) of any
class of such securities shall not be considered a breach of the covenants set
forth in this Paragraph 1.
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2. Term. Unless terminated earlier pursuant to Paragraph 5 of this
Agreement the term of this Agreement will commence on the date hereof and
continue for a period of two (2) years (the "INITIAL TERM") and be automatically
renewed for an additional one (1) year period unless either Consultant or the
Company determine that this Agreement shall not be extended for such one (1)
year period (the "RENEWAL TERM"). Consultant shall be entitled to a $100,000
lump sum payment payable by the Company upon such determination.
3. Place of Performance. Consultant's services hereunder shall be
primarily performed in the Metropolitan New York area at a location or locations
determined by Management. From time to time, at the discretion of Management,
Consultant shall be required to work at other locations determined by the
Company, and to attend business meetings, presentations and the like requiring
business travel, as shall be reasonably necessary to perform the services
contemplated hereunder.
4. Compensation.
(a) Fee. As compensation for services rendered under this Agreement,
Consultant shall receive a monthly fee of $14,583.33 which shall be
payable in installments as determined by the Company, but not less
frequently than once a month (the "FEE"). The Fee shall be paid without
withholding and Consultant shall be responsible for all taxes payable with
respect to the Fee.
(b) Expenses. Consultant is authorized to incur reasonable expenses
in connection with conducting and promoting the business and affairs of
the Company, including reasonable expenses for travel and similar items,
subject to such limitations and restrictions set by Management from time
to time. Consultant will be reimbursed for reasonable out of pocket
expenses actually incurred by him in furtherance of services rendered
under this Agreement. Such expenses shall be reimbursed on a bi-weekly or
other regular basis not less frequently than the Company's employees are
reimbursed generally, to be determined in the Company's sole discretion,
upon presentation by Consultant of an itemized account of such
expenditures, consistent with policies and procedures established by
Management, together with such receipts or other evidence as the Company
shall require for tax or accounting purposes.
5. Termination.
(a) Termination by the Company for Cause. The Company may terminate
Consultant's services at any time, without notice, for "CAUSE".
Termination by the Company for "Cause" shall mean termination based upon:
(a) the conviction of Consultant of, or entry by Consultant of a plea of
guilty or no contest to, any felony, fraud, misappropriation or
embezzlement or other crime of moral turpitude; (b) the conviction of
Consultant of, or entry by Consultant of a plea of guilty or no contest
to, any crime or offence involving money or other property of the Company;
(c) failure by Consultant to materially perform the services described in
this Agreement or materially perform or observe any of the terms and
provisions of this Agreement in a manner reasonably satisfactory to
Management and the Board of Directors of the Company, and failure to cure
such misconduct or default within thirty (30) days of receipt of written
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notice from the Company stating the nature of the misconduct or default in
reasonable detail (provided that such thirty day notice shall not apply in
the case of a failure to materially perform or observe any of the terms
and provisions of Section 6 or 7 of this Agreement); or (d) willful or
purposeful misconduct on the part of Consultant that is, or that will be
if continued, materially and demonstrably damaging or detrimental to the
Company, financial or otherwise. In the event the Company terminates
Consultant pursuant to this Section, Consutant shall not be entitled to
receive any payment pursuant to this Agreement other than accrued but
unpaid fees under Section 4 hereof.
(b) Termination by the Company for Financial Hardship. In the event
that the company experiences severe financial hardship then the Company
and Consultants shall renegociate the terms of this agreement at such time
based on the then current circumstances. Severe financial hardship shall
be determined the Company's Board of Directors in its reasonable
discretion. In the event the Company terminates Consultant pursuant to
this Section, Consutant shall not be entitled to receive any payment
pursuant to this Agreement other than accrued but unpaid fees under
Section 4 hereof. This Section shall have no further force and effect upon
consummation by the Company of an offering or a securities offering
producing not less than $10,000,000 in gross proceeds.
(c) Termination by the Company upon Death or Disability. If
Consultant shall die or become "Permanently Disabled" during the term of
this Agreement, this Agreement and all compensation hereunder shall
terminate, except the $100,000 termination payment provided in Section 2.
For the purposes of this Agreement, Consultant shall be deemed to be
"PERMANENTLY DISABLED" if, during the Initial Term or the Renewal Term,
because of ill health, physical or mental disability, or for other causes
beyond Consultant's control, Consultant shall have been unable or
unwilling, or shall have failed to perform his duties hereunder for either
sixty (60) consecutive days or a total period of ninety (90) days in any
twelve-month period during the term of this Agreement whether consecutive
or not. Notwithstanding anything to the contrary contained herein, during
any period that Consultant fails to perform his duties hereunder as a
result of his disability (but prior to the termination of this Agreement
as a result of such disability), (i) Consultant shall continue to receive
his monthly fee, provided that payments made to Consultant pursuant to
this Section 6 shall be reduced by the sum of the amounts, if any, payable
to Consultant at or prior to the time of any such payment under any
disability benefit plan or program to which Consultant is entitled, and
(ii) the Company shall have the right to hire or engage any other
individual or individuals to perform such duties and functions as the
Company shall desire, including those duties heretofore performed by
Consultant.
6. Protection of Confidential Information. Consultant hereby
covenants and agrees that all of the terms, conditions and provisions relating
to inventions, non-discl






