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Title: |
Consulting Agreement |
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Date: |
2002 |
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Preview shows 4KB of 14KB total |
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Price: |
$33 |
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ID: |
#1612010 |
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CONSULTING AGREEMENT
This CONSULTING AGREEMENT ("Agreement") made as of the ____ day of
December 2001 (the "Effective Date"), by and between INTERIORS, INC., a Delaware
corporation ("Interiors"), on the one hand, and MAX MUNN, an individual
("Consultant"), on the other hand.
RECITALS:
A. As at the Effective Date, Interiors has sold the assets and
properties of it's A.P.F. Master Framemakers division (the "APF Division") to
A.P.F. Acquisition Corp., a newly formed New York corporation controlled by the
Consultant (the "APF Buyer"), pursuant to the terms of an asset purchase
agreement, dated December 24, 2001 (the "Purchase Agreement"). Unless otherwise
defined herein, all capitalized terms used in this Agreement shall have the same
meaning as is defined in the Purchase Agreement.
B. Interiors desires to engage Consultant to provide consulting and
advisory services to Interiors, and Consultant desires to become so engaged.
NOW, THEREFORE, in consideration of the mutual covenants and agreements
hereinafter stated, Consultant and Interiors agree as follows:
1. Term of Agreement. Unless sooner terminated, as provided herein,
Interiors agrees to and hereby does engage Consultant, and Consultant hereby
agrees to provide Consulting Services (defined below) to Interiors, all upon the
terms and subject to the conditions hereinafter set forth, for the period
commencing on the Effective Date and continuing until June 30, 2002 (the
"Consulting Period").
2. Duties of Consultant.
(a) During the Consulting Period, Consultant shall consult
with and advise Interiors with respect to matters relating to resolution and
compromise of the claims of certain creditors of Interiors and in respect of the
disposition of certain businesses and assets of Interiors (the "Consulting
Services"). During the Consulting Period, the Consultant shall devote not less
than fifteen (15%) percent of his business and professional time to providing
the Consulting Services on behalf of Interiors. Interiors shall provide
Consultant with reasonable advance notice as to when Consulting Services are to
be provided.
3. Compensation.
3.1 Consulting Fee. As payment for the Consulting Services
rendered by Consultant during the Consulting Period, Interiors agrees to pay
Consultant, a fee (the "Consulting Fee") at the rate of Ten Thousand Dollars
($10,000) per month for the period from the Effective Date of this Agreement
through June 30, 2002. Such monthly Consulting Fee shall be payable in advance
on the first day of each month, commencing as of January 1, 2002.
3.2 Bonus Payment. In the event that the $750,000 Purchase
Note payable by APF Buyer to Interiors under the Purchase Agreement shall be
paid in full, together with all accrued interest thereon, by a date which shall
be on or before December 31, 2002, the Consultant shall receive a cash bonus
from Interiors, simultaneous with such Purchase Note prepayment, of One Hundred
and Fifty Thousand Dollars ($150,000).
3.3 No Other Payments. In no event shall Interiors be
obligated to pay Consultant any amounts other than as specifically set forth in
this Agreement.
3.4 Termination. This Agreement may be terminated by Interiors
"for cause" or upon the occurrence of and during the continuation of any "Event
of Default" as that term is defined in the Purchase Note or upon the occurrence
of and during the continuation of any Event of Default specified in Section 4
below. For purposes of this Agreement "for cause" shall be defined as: (a) the
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