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Consulting Agreement

 

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Title:

Consulting Agreement

Entities:

Vital Living Inc

Date:

2003

Size:

Preview shows 5KB of 18KB total

Price:

$36

ID:

#1256439

 

 

► Fee Agreements ► Consulting Agreements

 

 

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                              CONSULTING AGREEMENT



THIS CONSULTING AGREEMENT dated as of October 8, 2002 by and between
Martin Wallace (hereinafter referred to as "Consultant"), having an office at
351 E. 84th Street, Suite 29c , New York, NY 10028 and Vital Living, Inc., 5080
N. 40th Street, Suite 105 Phoenix, Arizona 85018 (the "Company").

The Company is engaged, inter alia, in the formulation and marketing of
condition specific supplements formulated by physicians for distribution through
physicians, as an integral part of patient treatment protocols. The Consultant
is engaged in the marketing of nutraceuticals to physician preferred provider
organizations, health plans, medical groups, and other medical service entities
(collectively, "Medical Service Providers" or "MSP").

The Company wishes to retain the services of the Consultant to market the
Company's nutraceutical product for cardiovascular patients marketed under the
name Essentum (TM) (the "Product") to various MSPs for the purposes of entering
into Conforming Contracts (as defined below) with the Company pursuant to which
such MSP will promote, and recommend the Company's products to its members (the
foregoing being described herein as "Services"), and Consultant has agreed to
provide the Services to the Company, pursuant to the terms hereof;

NOW, THEREFORE, in consideration of the mutual premises and covenants
herein contained, the parties hereto agree as follows:

1. ENGAGEMENT.

(a) Company hereby engages Consultant to provide the non-exclusive
Services pursuant to the terms and conditions hereof. Consultant shall be
obligated to follow only the direction and supervision of Company's senior
executives (presently Brad Edson, Ken Lind and Stuart Benson).

(b) Consultant shall provide, on a monthly basis, written reports as to
the Services rendered hereunder, and shall respond verbally at the request of
the Company to any inquiries made by the Company in that regard.

2. COMPENSATION.

(a) In exchange for the full, prompt and satisfactory performance of the
Services, but expressly coordinated on the execution of a Conforming Contract
(as defined below), Company shall pay the Consultant a monthly retainer fee of
$7,500.00 (the "Monthly Retainer"), inclusive of any expenses incurred by
Consultant. The Monthly Retainer shall be paid on the date the first Conforming
Contract (as such term is defined below) is entered into by the Company (such
date being the "Initial Payment Date") and shall continue until the Termination
Date.
<PAGE>
(b) In addition to the Monthly Retainer, the Company shall pay a
commission to Consultant equal to the "Excess Price" for each unit of the
Product sold by Consultant. "Excess Price" shall mean the amount received by the
Company, net of returns (which may be estimated by the Company), in excess of a
$22.00 per Unit price, plus shipping and handling costs (not to exceed $6.00 per
Unit), (the then effective Unit cost, plus such other costs, being referred to
as the "Wholesale Price"). The Company may adjust the Wholesale Price, at any
time, or from time to time, upon 30 days notice to Consultant; provided however,
the Wholesale Price cannot be adjusted by the Company for the first 180 days
following the date of the first Conforming Contract.

(c) When the Board of Directors next meets to award nonqualified stock
options, Consultant's name will be submitted by management of the Company to
receive nonqualified stock options (the "Options") to acquire up to 500,000
shares of the Company's common stock at an exercise price equal to $2.00. The
terms of any option grant are subject to board approval and a formal written
option agreement; it being acknowledged and agreed that such Options shall vest
at a rate equal to 2 times the number of Units of paid in full orders for the
Product from "Conforming Contracts" (as such term is defined below) during the
first twelve months of this Agreement. For purposes of this Agreement, a
Conforming Contract is contract with a MSP which (i) agrees to actively endorse
, and promote the Products and who contractually agrees that the Products will
be the exclusive products endorsed and promoted by them relative to the

 

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