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Document Preview Agreement to Amend Employment Agreement and Enter into Independent Contractor Agreement |
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Title: |
Agreement to Amend Employment Agreement and Enter into Independent Contractor Agreement |
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Entities: |
Joseph Kost; Sontra Medical Corp. |
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Date: |
2003 |
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Size: |
Preview shows 7KB of 28KB total |
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Price: |
$43 |
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ID: |
#143882 |
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SONTRA MEDICAL CORPORATION
AGREEMENT TO AMEND EMPLOYMENT AGREEMENT
AND ENTER INTO INDEPENDENT CONTRACTOR AGREEMENT
THIS AGREEMENT TO AMEND EMPLOYMENT AGREEMENT AND ENTER INTO INDEPENDENT
CONTRACTOR AGREEMENT ("Agreement") dated November 1, 2002 (the "Effective Date")
is made between Sontra Medical Corporation and its affiliates, successors,
assigns and duly authorized representatives (the "Company") and Joseph Kost (the
"Contractor"), for the purpose of setting forth the exclusive terms and
conditions by which the Company and Contractor desire to (i) amend that certain
Employment Agreement dated June 12, 2001 entered into by and between the Company
and Joseph Kost (the "Employment Agreement") and (ii) acquire Contractor's
services on a temporary basis.
In consideration of the mutual obligations specified in this Agreement,
the parties, intending to be legally bound hereby, agree to the following:
1. Amendment of Employment Agreement: The parties hereby amend
the Employment Agreement by deleting paragraph 3.1 of the Employment Agreement
and replacing it with the following:
"3.1. Base Salary. The Executive's salary, effective as of
November 1, 2002, shall be paid at a rate of $10,000.00 per month
(annualized compensation of $120,000.00) (the "Base Salary"). The Base
Salary shall be payable in accordance with the customary payroll
practices of the Company as may be established or modified from time to
time. The Board of Directors in its sole discretion may adjust the
Executive's salary at any time. All payments shall be subject to all
applicable federal, state and/or local payroll and withholding taxes."
Except as expressly set forth above, all terms and conditions of the
Employment Agreement shall remain in full force and effect until January 1,
2003, at which time the parties expressly agree to rescind the Employment
Agreement in its entirety. As such, as of January 1, 2003, the parties agree
that the Employment Agreement will be of no further force and effect. In
rescinding the Employment Agreement, the parties acknowledge and agree that the
terms and conditions of the Employment Agreement and all obligations arising
from such terms and conditions, including any obligations intended to survive
the termination of such Employment Agreement, will no longer be enforceable as
of January 1, 2003. The parties further agree, however, that effective January
1, 2003, Joseph Kost shall commence providing Services (as defined herein) to
the Company pursuant to the remainder of this Agreement as an Independent
Contractor. As such, all remaining provisions of this Agreement are effective on
January 1, 2003.
2. Services:
(a) Company hereby retains Contractor, and Contractor hereby
agrees to perform for Company, certain services assigned to Contractor by the
Company in the Company's sole discretion, including, but not limited to,
rendering scientific advice and counsel to the Company in the
{PAGE}
"Consulting Field", wherein "Consulting Field" is defined as any and all
applications in ultrasound enhanced diagnostics and transdermal drug delivery
(collectively the "Services"):
(b) Contractor agrees to keep Company updated, promptly upon
Company's request, of any progress, problems, and/or developments of which
Contractor is aware regarding the Services. Company shall have the right to
require such updates in writing from Contractor in a format specified by Company
or acceptable to Company in its sole discretion.
3. Consideration/Compensation:
(a) In exchange for the full, prompt, and satisfactory performance
of all Services to be rendered to Company hereunder (as determined by the
Company), Company shall provide Contractor, as full and complete compensation
for the Services rendered hereunder, compensation consisting of (i) cash at a
rate of $10,000.00 per month (annualized compensation of $120,000.00), unless
and until directed otherwise in writing by the Chief Executive Officer of the
Company. Contractor shall invoice Company on a monthly basis setting forth in
detail the Services performed by Contractor. Company shall remit payment to
Contractor within a reasonable time thereafter. Failure by Contractor to submit
a detailed invoice shall be grounds for Company to withhold any and all
compensation.
(b) Contractor shall not be entitled to receive any other
compensation or any benefits from Company. Except as otherwise required by law,
Company shall not withhold any sums or payments made to Contractor for social
security or other federal, state or local tax liabilities or contributions, and
all withholdings, liabilities, and contributions shall be solely Contractor's
responsibility. Further, Contractor understands and agrees that the Services are
not covered under the unemployment compensation laws and are not intended to be
covered by workers' compensation laws.
4. Nondisclosure:
(a) Contractor understands that, in connection with his engagement
with Company, he may receive, produce, or otherwise be exposed to Company's
Confidential Information, which is defined as any information concerning the
organization, business or finances of the Company or of any third party which
the Company is under an obligation to keep confidential and that is maintained
by the Company as confidential. Such Confidential Information shall include, but
is not limited to, trade secrets or proprietary or confidential information
respecting existing and future products and services, inventions, designs,
methods, formulas, drafts of publications, research, know-how, techniques,
systems, databases, processes, software programs or code, developments or
experimental work, works of authorship, customer lists and/or customer
information, business plans, marketing plans, financial information, sales
techniques, projects, the Company's salary and/or pay rates, other Company
personnel information, and all other plans and proposals.
(b) Contractor acknowledges that the Confidential Information is
the Company's sole, exclusive and extremely valuable property. Accordingly,
Contractor agrees to segregate all Confidential Information from information of
other companies and agrees not to reproduce any Confidential Information without
Company's prior written consent, not to use the Confidential Information except
in the performance of this Agreement, and not to divulge all or any part of the
Confidential Information in any form to any third party, either during or after
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