EXHIBIT 10.3
CONSULTING AGREEMENT
BETWEEN:
FIRST AID DIRECT, INC.
a body incorporated,
with a registered office in the State of Florida,
(hereinafter referred to as "Xxxx")
AND
SF ADVISORS, INC.
a body incorporated,
with a registered office in the State of Florida,
(hereinafter referred to as " Consultant ")
AND
XXXXX XXXXXX,
a business person residing in the State of Florida,
(hereinafter referred to as "Service Provider")
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WHEREAS Xxxx is issuing and exchanging an equal number of its treasury common
shares on a one for one basis with all of the common shares of 3323455
Canada Inc. ("3323"), which as its registered office in the Province of
Quebec, Canada as evidenced by the Security Exchange Agreement (SEA)
executed between the Parties (the "Transaction");
WHEREAS Consultant has the qualifications, skills and experience to provide the
required services;
WHEREAS after the Transaction, Xxxx wishes to retain the services of Consultant
for a specified period of time;
WHEREAS after the Transaction, Consultant wishes to offer its services to Xxxx
for the same specific period of time;
WHEREAS Xxxx and Consultant wish to define the terms and conditions of this
Consulting Agreement;
WHEREAS this Consulting Agreement forms an integral part of the executed SEA
between the Parties, with an effective date of November 1st, 2003,
which terms, conditions, references and definitions are hereby
incorporated and will have the same meanings as used in the said SEA;
NOW, THEREFORE, in consideration of the mutual covenants and agreements
hereinafter contained and other good and valuable consideration (the
receipt and sufficiency of which is hereby acknowledged) the Parties
have agreed and this Consulting Agreement (the "Agreement") witnesses
as follows:
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ARTICLE 1
CONDITIONAL OFFER AND EFFECTIVE DATE
1.1 The preamble forms an integral part of this Agreement.
1.2 This Agreement is conditional upon the closing of the Transaction.
If the Transaction does not close, this Agreement shall be null and void ab
initio, and all obligations, including any obligation of compensation or payment
to Consultant, shall cease.
1.3 The effective date (the "Effective Date") of this Agreement shall
be the day following the closing of the Transaction.
ARTICLE 2
INDEPENDENT CONTRACTOR
2.1 This is an Agreement for the services of Consultant as a separate
business unit, and Consultant shall not be entitled to any benefits of any
nature whatsoever other than to those which are expressly provided for herein.
2.2 Consultant is acting exclusively as a business unit separate from
that of Xxxx and no relationship of agency, partnership, joint venture,
employer-employee, or master-servant is created between Consultant and Xxxx.
2.3 It is acknowledged and agreed by Consultant and Xxxx that
Consultant shall be and at all time is acting and performing as a consultant to
Xxxx. Consultant agrees not to represent to any other party that Consultant is
an agent, partner, joint venture, employee, or servant of Xxxx.
2.4 Consultant agrees that he shall indemnify and save harmless 3323
and Xxxx against any and all claims, actions, causes of action, debts or demands
relating to deductions and withholdings under federal, state or municipal law
including those under the Income Tax Act as amended from time to time, and any
claims related to Employment Insurance, Workers Security Insurance, for or in
respect of the provision of services under this Agreement, together with any
interest or penalties relating thereto and any costs or expenses incurred by
3323 and Xxxx in defending such claims, cause of action, demand, debt or by any
other authority.
2.5 Consultant further agrees that he shall indemnify and save harmless
3323 and Xxxx from Consultant's failure, omission or refusal to remit deductions
to the appropriate federal, state or municipal government entity, agency or
collecting body, as required by law.
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ARTICLE 3
TERM OF THE CONSULTING AGREEMENT
AND OBLIGATIONS OF CONSULTANT
3.1 On the Effective Date of this Agreement, Service Provider shall
resign as an Officer and as an employee of Xxxx, and Service Provider agrees to
execute all necessary documents to facilitate the resignations.
3.2 Xxxx engages Consultant to provide and Consultant agrees to provide
the Consulting Services commencing as at the Effective Date, and continuing for
two twelve (12) month periods. This relationship and this Agreement will be
renewed for an additional twelve (12) month period with the prior written
consent of the Parties within sixty (60) days from the termination of the first
twelve month period. If this Agreement is not renewed, in accordance with the
terms and conditions of Section 3.2, this Agreement shall terminate at the end
of the applicable twelve (12) month period, which date shall be referred to as
the "Contract Termination Date".
3.3 The Parties agree that the only person who can provide the
Consulting Services hereunder is Service Provider, and it shall be a breach of a
material provision of this Agreement by Consultant if Service Provider does not
personally and exclusively provide the Consulting Services.
3.4 Services retained:
3.4.1 Xxxx retains the professional services of Consultant to
perform the services, roles and responsibilities as described in Attachment
3.4.1 and its amendments (the "Consulting Services").
3.4.2 It is agreed and acknowledged that Attachment 3.4.1 may be
amended in writing from time to time as agreed to by the Parties.
3.4.3 Attachment 3.4.1 and its respective amendments shall form an
integral part of this Agreement and shall be governed by the terms and
conditions put forth in this Agreement. In the event of any conflict between
this Agreement and Attachment 3.4.1 and its amendments, the terms and conditions
of this Agreement shall prevail.
3.4.4 Subject to Attachment 3.4.1, Consultant shall provide its
services in the areas of business development, mergers, acquisitions,
combinations and strategic alliances, as well as internal relationships between
executive officers and directors and United States corporate governance
requirements. If Service Provider is requested to serve on the board of
directors of Xxxx, Service Provider agrees to do without additional compensation
therefor.
3.5 Consultant shall perform the Consulting Services in accordance with
and in the following manner:
3.5.1 Attachment 3.4.1
3.5.2 In a good and workmanlike manner and in accordance with
accepted standards, practices, policies and guidelines;
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3.5.3 In compliance with all applicable federal, state, municipal
and local laws and regulations, and Fadi's policies (as those policies pertain
to consultants).
3.6 It is agreed that during the term of this Agreement, Consultant will perform
the Consulting Services when and as needed, during reasonable working hours
and upon reasonable prior notice.
3.7 Consultant shall receive instructions from and report to the Chief
Executive Officer of Xxxx.
3.8 Consultant and Service Provider agree to return to Xxxx any and all
computers, discs, tapes, files, documents and working papers acquired and/or
produced under this Agreement within three working days of termination of this
Agreement.
ARTICLE 4
FEE ARRANGEMENT
4.1 Subject to the terms of this Agreement, Consultant shall be paid by
Xxxx for the provision of the Consulting Services at a rate of 12,500 USD per
month.
4.2 Consultant shall not be entitled to be a participant in any
employee benefit plans of Xxxx.
4.3 Xxxx shall pay to Consultant all reasonable expenses actually and
properly incurred by Consultant in connection with the performance of its
obligations under this Agreement, such expenses to be documented in accordance
with Fadi's standard policies and shall be subject to approval by Xxxx.
Consultant shall submit statements and vouchers for all such expenses once a
month, at the end of each month.
ARTICLE 5 TERMINATION
5.1 TERMINATION FOR CAUSE
Xxxx may terminate this Agreement at any time and, Fadi's obligation to
compensate Consultant with respect to this Agreement will terminate upon written
notice to Consultant and Service Provider in the event that Consultant or
Service Provider is in breach of or in default of the following:
5.1.1 Section 3.3 herein;
5.1.2 Section 3.5 herein;
5.1.3 Change of control of Consultant without the prior written
approval of Xxxx;
5.1.4 Article 6 herein during the term of this Agreement;
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5.2 TERMINATION BY CONSULTANT OR SERVICE PROVIDER
If Consultant and/or Service Provider terminates this Agreement at any time for
the following reasons, this Agreement shall terminate, all obligations,
including any obligation of compensation or payment to Consultant by Xxxx, shall
cease and the Restricted Period (as hereinafter defined) shall be three (3)
months:
5.2.1 Election of Consultant or Service Provider;
5.2.2 The death or disability of Service Provider, for the purposes
of this Agreement, long term disability shall mean the inability of Service
Provider to provide the Consulting Services for a period of 90 days.
5.3 TERMINATION WITHOUT CAUSE
5.3.1 If Xxxx terminates this Agreement without cause, Xxxx will
continue to pay Consultant the amount referred to in Section 4.1 herein for the
balance of the agreed term of 24 months from the date of execution of this
Agreement and the Restricted Period shall be six (6) months.
5.4 TERMINATION FOR ANY REASON
Upon termination of this Agreement for any reason, Xxxx will pay Consultant,
within five (5) business days of Consultant's last day actively performing the
Consulting Services for Xxxx, the following:
5.4.1 all Consulting Services fees plus applicable taxes earned,
but not yet paid, on a pro-rata basis, for the month of termination;
5.4.2 any expenses incurred and not paid in accordance with this
Agreement.
5.5 The provisions of Article 6 herein shall survive the termination of
this Agreement, regardless of the reason for termination, notwithstanding that
the applicable restricted period of ARTICLE 6 herein shall vary in accordance
with the cause of termination of this Agreement (the " Restricted Period").
Unless a different time period is specified herein, the Restricted Period shall
be 12 months.
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ARTICLE 6
PERSONAL COVENANTS AND
POST-AGREEMENT OBLIGATIONS
6.1 Consultant and Service Provider have carefully read and considered
the provisions of this Article 6 and, having done so, agree that the
restrictions set forth in this Article are fair and reasonable, and are
reasonably required for the protection of the interests of 3323 and Xxxx and to
protect the value of the business purchased by 3323 and Xxxx in the Transaction.
Consultant and Service Provider recognize and agree that as a consultant of
Xxxx, they will become knowledgeable, aware and possessed of confidential
information of 3323 and Xxxx and other affiliated companies including their
investor's, customer's and other consultant's, technology, know-how, products
and technical and business data, marketing strategies and investor programs
shall be referred to in this Agreement as the ("Confidential Information").
Consultant and Service Provider acknowledge and agree that 3323 and Xxxx are the
sole and exclusive owners and proprietors of all such Confidential Information,
and that Consultant and Service Provider owe a duty to ensure that all
Confidential Information is and remains at all times confidential
6.2 Non Competition
a. Consultant and Service Provider further acknowledge that in the
course of this consulting relationship, they will be assigned duties that will
give them knowledge of Confidential Information and proprietary information
which relates to the conduct and details of 3323 and Fadi's businesses ( for the
purposes hereof, "Business" shall mean and include only providing information
technology consulting services and outsourcing services) and which may result in
irreparable injury if Consultant and/or Service Provider would enter into an
employment or consulting relationship with a business which is the same as or
similar to and which is competitive to the Business (as Business is hereinafter
defined). Consultant and Service Provider agree with, and for the benefit of
Xxxx that Consultant and Service Provider shall not without the prior written
approval of the Board of Directors of Xxxx during the term of this Agreement or
at any time within the Restricted Period as of the Contract Termination Date,
either as an individual or as a partner or joint venture or otherwise in
conjunction with any person or persons, firm, association, syndicate, company or
Xxxx, as principal, agent, consultant, director, officer, employee, investor or
in any other manner whatsoever, directly or indirectly, carry on, be engaged in,
be interested in, or be concerned with, or permit Consultant's or Service
Provider's names or any part thereof to be used or employed by any such person
or persons, firm, association, syndicate company or Xxxx, carrying on, engaged
in, interested in or concerned with, a business which is the same as or similar
to the Business conducted by Xxxx as at the date of termination of this
Agreement, within the State of Florida.
b. Consultant and Service Provider have the right to request in
writing the Board of Directors of Xxxx, in advance for agreement that a proposed
business or position is not prohibited within the terms of this Agreement. If
Consultant and Service Provider receive written acknowledgment that the Board of
Directors of Xxxx does not object to Consultant's or Service Provider's
participation in the said requested business or position, then they shall be
allowed to so participate.
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c. This Article shall not prevent Consultant or Service Provider
from purchasing as a passive investor up to 5% of the outstanding publicly
traded shares or other securities of any class of an issuer listed on a
recognized stock exchange.
6.3 Non-Disclosure
The Parties understand that Xxxx and 3323 desire to keep their contractual
relationship with their investors, customers and other consultants confidential.
Consultant and Service Provider agree during the term of this Agreement and
thereafter not to disclose any such investor, customer or other consultant
relationships unless authorized in writing by the Board of Directors of Xxxx and
3323 or as required by applicable law.
6.4 Confidential Information
Consultant and Service Provider will have access to the Confidential Information
Consultant and Service Provider agree to accept and retain said Confidential
Information in confidence and, at all times during or after the termination of
this Agreement, not to disclose or reveal such information and data for purposes
other than those authorized by Xxxx or as required by applicable law. At the
request of Xxxx and upon termination of this Agreement, Consultant and Service
Provider will promptly turn over to Xxxx and 3323 all written or descriptive
matter containing the Confidential Information or proprietary information or
data.
6.5 Patent-Copyright
a. Consultant and Service Provider agree to make prompt and
complete disclosure to Xxxx of any (i) invention, discovery, or improvement
("Invention"), whether patentable or not and (ii) copyrightable material, which
relate to the Business and which are made, conceived, or authored by Consultant
or Service Provider, alone or with others, during the term of this Agreement
and, with respect to an Invention, for one (1) year following the Contract
Termination Date. All works produced by Consultant shall be deemed "work made
for hire."
b. Consultant and Service Provider agree to and do hereby assign to
Xxxx all of their right, title and interest in any Invention(s) and
copyrightable material. At the request and expense of Xxxx, Consultant and
Service Provider will render whatever assistance may be necessary for Xxxx to
secure a patent or copyright for such Invention(s) or material.
6.6 Non-Solicitation
Consultant and Service Provider agree that as a result of their position with
Xxxx, that they will have access to the Confidential Information. Consultant and
Service Provider agree that during the term of this Agreement or at any time
within the Restricted Period as of the Contract Termination Date, regardless of
the reason for termination, that Consultant and Service Provider shall not:
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(i) directly or indirectly, either as an individual or as a partner
or joint venture, or as an employee or principal, management, consultant, agent,
shareholder, officer, director, or sales person for any person, firm,
association, organization, syndicate, company or Xxxx, solicit or accept any
business from any Client of Xxxx.
(ii) hire, solicit, or attempt to induce any employee of Xxxx to
leave Fadi's employ and work directly or indirectly for or with Consultant and
Service Provider or any employer or contractor of Consultant and Service
Provider; or
(iii) hire, solicit, or attempt to induce any contractor or
sub-contractor of Xxxx to not perform their respective duties or to leave Xxxx
and work directly or indirectly for or with Consultant or Service Provider or
any employer or contractor of Consultant and Service Provider.
6.7 Property
All reports, computer programs, manuals, tapes, card decks, listings (including
customer listings) and any other documentation or data furnished to or prepared
by Consultant in connection with this Agreement shall be the property of Xxxx.
ARTICLE 7
GENERAL PROVISIONS AND NOTICE
7.1 Any waiver by a Party of any breach of any provision of this
Agreement by the other Party shall not be binding unless in writing, and shall
not operate or be construed as a waiver of any other or subsequent breach by
Consultant or Service Provider.
7.2 This Agreement contains the entire agreement between the Parties
and may be changed only by agreement in writing signed b the Parties hereto.
7.3 This Agreement shall be governed by and construed in accordance
with the laws in force in the State of Florida, USA.
7.4 If any paragraph, subparagraph or provision of this Agreement is
determined to be unenforceable by a Court of competent jurisdiction, then such
provision shall be severable from the Agreement and the remainder of this
Agreement shall be unaffected thereby and shall remain in full force and effect.
7.5 Any notice required to be given hereunder shall be in writing and
sufficiently made if delivered personally, sent by facsimile transmission, or
mailed by prepaid registered mail to the Parties at their respective addresses
herein.
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7.6 Any such notice shall be deemed to have been given on the date it
is delivered if personally delivered or sent by facsimile, or if mailed, on the
third business day following the
7.7 mailing thereof. Any of the Parties may change its address for
service by giving written notice hereunder.
7.8 Time shall be of the essence of this Agreement.
XXXX:
First Aid Direct, Inc.
0000 Xxxxxx Xxxx, Xxxxx 000,
Xxxxxxx, Xxxxxxx, 00000-0000
Tel: (000) 000-0000
Fax: (954) --- ---
CONSULTANT:
Consulting company
---------------
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SERVICE PROVIDER:
Xxxxx Xxxxxx
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IN WITNESS WHEREOF the Parties hereto have executed this Agreement
FIRST AID DIRECT, INC.,
PER:
-------------------------------------
XXXXXX X. XXXXXXXXX
SF ADVISORS, INC.
PER:
-------------------------------------
XXXXX XXXXXX
SERVICE PROVIDER
-------------------------------------
XXXXX XXXXXX
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ATTACHMENT 3.4.1
SERVICES, ROLE AND RESPONSIBILITIES
This Attachment 3.4.1 forms an integral part of the Consulting Agreement
executed between the Parties and the said Consulting Agreement forms an integral
part of the Security Exchange Agreement executed between the Parties with an
effective date as of the 31st day of October, 2003.
XXXXX XXXXXX
BUSINESS CONSULTANT
--------------------------------------------------------------------------------
The BC will exercise flexibility to guide and work with Fadi's executives in
their day-to-day responsibilities, provide strategic and business guidance,
participate in business development activities, and ensure appropriate financial
reporting and corporate governance.
BASIC FUNCTIONS
The BC will establish the vision and business strategies. The BC will present
the itinerary for the board of director meetings for the year and prepare the
agenda for each of the board of director meetings. The BC will chair the board
meetings and ensure that each board of director member attend and actively
participate in the conduct of business, conform with their fiduciary
responsibilities and exercise the process of due care.
PRIME RESPONSIBILITIES WILL BE, BUT NOT LIMITED TO:
o Familiarise the directors and officers with the understanding and the
adherence to Fadi's mission statement;
o Supervise adherence to corporate policies and procedures for the preparation,
control and reporting of the financial statements of Xxxx consistent GAAS and
GAAP;
o Monitor compliance with good standing corporate governance and regulatory
reporting and disclosure requirements;
o Instilled a strict discipline and control xxxxxxx xxxxxxx activities and
their reporting to the corporate governance committee;
o Manage current financial position, cash flow, budgets, as well as any
exposures or opportunities with regard to the key variables that impact the
budget;
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o Measure the performance of customers, contractors and sub-contractors
contracts;
o Review and adjust long-term business and financial planning of consolidated
budgets, plans, and forecasts and financial analysis;
o Lead new business opportunities, potential acquisitions, joint ventures,
partnerships and corporate financings.
SHORT TERMS PRIORITIES:
o Preparation of logistics to sublease the current office space located at 0000
Xxxxxx xxxx, Xxxxx 000, Xxxxxxx, Xxxxxxx, 0000-0000;
o Negotiate new office space for Xxxx in Boca Raton, Florida in line with
Fadi's profit objectives;
o Prepare and execute the relocation plan, including corporate stationary,
telecommunication, Internet, and other office requirements
o Prepare and submit all required documentation and information relative to the
rolling into a new Xxxx registered subsidiary all of the businesses, assets
and liabilities of First Aid Direct, Inc.,'s remaining operating activities
in the medical sector;Review and analyze possible acquisitions, mergers,
combinations and strategic alliances and advise Xxxx with respect to the
structure and consummation of such transactions.
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ATTACHMENT 3.6
DAYS EXEMPTED FORM PROVIDING CONSULTING SERVICES
This Attachment 3.6 forms an integral part of the Consulting Agreement executed
between the Parties and the said Consulting Agreement forms an integral part of
the Share Purchase Agreement executed between the Parties with an effective date
as of the 1st day of October, 2003. Consultant and the Services Provider are not
required to perform the Consulting Services on the following periods or days. In
the cases of the vacation period, Consultant and Service Provider will give
reasonable written notice to Xxxx and will assure that Xxxx will have continuity
of the Consulting Services during the said Exempted Days.
o 2 weeks vacation
o Please propose statutory and religious holidays