INDEPENDENT CONSULTING
AGREEMENT
Atari, Inc., a
Delaware corporation, with an address of 417 Fifth Avenue, New
York, NY 10016 ( “Atari” ), hereby contracts
with Ann E. Kronen (“ Consultant ”), to render
services in accordance with the terms and conditions of this
agreement, effective as of Tuesday, August 1, 2006 (the
“ Effective Date ”). The parties hereby agree as
follows:
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(a)
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Atari is engaged in projects
(collectively, the “Project” ) directed toward
the design, development, and exploitation of interactive
entertainment products.
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(b)
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Consultant shall render certain
business, technical and/or creative activities in connection with
the Project, as more fully specified below and in Exhibit A to
this Agreement. Consultant accepts such engagement.
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(a)
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Subject to the terms and conditions
of this agreement, Atari hereby retains Consultant as an
independent consultant for a period (the “Consulting
Period” ) beginning on the August 1, 2006 and ending
March 31, 2007. Consultant‘s primary contact at Atari
shall be Bruno Bonnell, Chief Creative Officer and Chairman of the
Board, or such other person or persons who may be appointed by
Atari (the “Atari Representative”).
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(b)
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The
parties expressly acknowledge and agree that Atari is engaging
Consultant as an independent contractor. Consultant shall not have
the right, power, or authority to bind Atari or to make any
contract or other agreement or assume or create any obligation or
liability, express or implied, on Atari’s behalf.
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(c)
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Without limiting the generality of
the foregoing, Consultant hereby agrees to conduct all activities
hereunder in Consultant’s own name.
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3.
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Compensation.
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Atari shall pay Consultant a
consulting fee at the rate $15,000.00 (gross) per month
payable at the last day of the month. Payments will be made to Ann
E. Kronen. Atari shall reimburse Consultant on a monthly basis for
pre-approved, reasonable and necessary expenses incurred by
Consultant on behalf of Atari in the performance of
Consultant’s duties during the Consulting Period (including
but not limited to reasonable travel expenses) which are otherwise
acceptable in accordance with Atari’s standard expense
reimbursement practices for its independent contractors and which
have been approved in advance by the Atari Representative.
Consultant shall submit expenses for reimbursement in writing with
supporting receipts and documentation in accordance with the
Internal Revenue Code and Regulations or as otherwise required
under Atari’s expense reimbursement procedures in effect from
time to time.
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4.
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Cooperation.
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Consultant shall use her best
efforts in the performance of her obligations under this Agreement.
Consultant shall cooperate with Atari’s personnel, shall not
interfere with the conduct of Atari’s business and shall
observe all of Atari’s rules, regulations and security
requirements concerning the safety of persons and property real and
intellectual.
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5.
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Equipment.
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Atari shall provide Consultant with
reasonable and necessary equipment required to perform required
tasks. Any equipment provided by Atari, or the purchase of which is
funded by Atari, in connection with this agreement, including all
associated licenses, warranties, manuals and documentation shall be
and remain with Atari. During the Consulting Period, all such
equipment shall be used solely for purpose of work associated with
Atari. Upon the conclusion of the Consulting Period, or any other
termination of this agreement, all such equipment shall be returned
to Atari promptly.
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6.
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Term and
Termination .
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(a)
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The
Consulting Period will automatically renew on a yearly basis,
beginning April 1, 2007 unless either party chooses not to
renew, which will require a 30 day written notice from the
non-renewing party to the other party.
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(b)
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Either party may terminate this
agreement upon written notice for any material breach of this
agreement. This provision does not affect Atari’s right under
Section 14 hereunder.
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(c)
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Subject to the provisions of section
6(b) above, the termination, cancellation or expiration of this
agreement will not affect any rights of either party which may have
accrued up to the date of such termination or expiration. In
addition, the provisions of Sections 7 through 16 below shall
survive any termination, cancellation or expiration of this
agreement.
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7.
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Confidentiality and
Security.
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Consultant recognizes and agrees
that in the course of performing services hereunder Consultant will
generate or otherwise become privy to written or orally conveyed
information that is proprietary or confidential to Atari, its
affiliates, or their customers and/or to other parties to whom they
may have confidentiality obligations. This information may include,
without limitation, plans to introduce new products or services
(including in this regard the existence of the Project), methods of
doing business, planned transactions, market information, pricing
information, supply sources, license and contract terms,
information pertaining to customers’ businesses, non-public
financial data and operating results, system and component designs,
specifications, computer software and technical information.
Consultant understands that Atari and/or such affiliates, customers
and other parties regard such information as trade secrets, and
Consultant will employ Consultant’s best efforts to assure
the continued confidentiality thereof. Consultant will not disclose
such information to anyone or use it for any purpose other than the
performance of Consultant’s services hereunder. Consultant
will take all reasonable measures to prevent any unauthorized
person from gaining access to such information and to prevent such
information from being accessed, disclosed or used in any
unauthorized manner, including complying strictly at all times with
all applicable physical and computer system security procedures.
Consultant will not break or attempt to break any of Atari’s
(or such affiliates’, customers’ or other
persons’) security systems, or obtain, or attempt to obtain
access to any program or data other than those to which Consultant
has been given access in writing. Upon any termination,
cancellation or expiration of this agreement or at Atari’s
request at any other time, Consultant will deliver to Atari all
materials in tangible form containing any of the information
referred to in this Section 7, shall purge any and all copies
thereof from all files and storage media retained by Consultant,
and shall retain no archival or other copies thereof whatsoever.
Further in such event, Consultant shall return any keys, security
passes, equipment or other items or property supplied to Consultant
by Atari or by any such affiliate, customer or other
person.
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