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Consulting Agreement

 

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Title:

Consulting Agreement

Entities:

On Technology Corp.

Date:

2001

Size:

Preview shows 4KB of 18KB total

Price:

$33

ID:

#1273949

 

 

► Fee Agreements ► Consulting Agreements

 

 

Start of Preview


                            ON TECHNOLOGY CORPORATION


CONSULTING AGREEMENT
--------------------


THIS IS AN AGREEMENT made as of December 28, 2000, by and between ON
Technology Corporation, a Delaware corporation (the "Company"), and Robert L.
Doretti (the "Consultant").

WHEREAS, the Company desires to obtain the services of the Consultant
and the Consultant desires to provide such services to the Company to facilitate
transitional needs in the event of a change of control of the Company.

NOW, THEREFORE, in consideration of the mutual covenants contained in
this Agreement, and for other good and valuable consideration, the receipt and
sufficiency of which consideration are hereby acknowledged, the parties agree as
follows:

1. Services
--------
During the first 12 months of the Consulting Period only, the
Consultant agrees to perform such consulting services to and for the Company as
may be reasonably requested by the President of the Company or its Board of
Directors to facilitate the transition of the Company's management from the
Consultant to his successor. The Consultant's commitment to the Company will be
part-time and shall not to exceed twenty (20) hours per week to allow the
Consultant to pursue other interests, including other part-time employment or
consulting assignments. Such consulting services shall take into account the
Consultant's expertise in managing and operating the Company and may be
performed either in person or by telephone.

2. Term
----
Unless sooner terminated as provided below, the term of the
Consultant's engagement under this Agreement will be for two years from the date
the Consultant's full-time employment with the Company is terminated for any
reason other than for "cause" by (i) the Company or (ii) the Company's
successor-in-interest within twelve months after the consummation of a Change of
Control (the "Consulting Period"). For purposes of this Agreement, a Change of
Control shall mean a consolidation or merger in which the Company is not the
surviving corporation or results in a change of 50% or more of the Company's
equity securities, or the acquisition of all or substantially all of the
Company's outstanding Common Stock by a single person, entity or group of
persons or entities acting in concert, or the sale or the transfer of all or
substantially all of the assets of the Company. For purposes of this Agreement,
"cause" shall have the same meaning as is set forth in Section 9 of that certain
letter agreement regarding the Consultant's employment by and between the
Consultant and the Company dated January 31, 2000 (the "Employment Letter").
<PAGE>

3. Extent of Services
------------------
During the Consulting Period, the Consultant will devote his best
efforts to the performance of his duties under this Agreement. Under no
circumstances will the Consultant knowingly take any action contrary to the best
interests of the Company.

4. Compensation
------------
4.1 Base Consulting Fee. In consideration of the services rendered
by the Consultant under this Agreement and the other covenants set forth
hereunder, including, without limitation, Section 6 herein, the Company will pay
the Consultant compensation of $250,000 per annum, payable in accordance with
the Company's normal payroll practices (the "Base Consulting Fee").

 

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