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Consulting Agreement

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Sectors: Health Products and Services
Governing Law: Virginia , View Virginia State Laws
Effective Date: May 12, 1998
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This Consulting Agreement ("Agreement") is entered into as of the 12th day of May, 1998, between PETER GLADKIN, a resident of the State of California ("Consultant"), and APACHE MEDICAL SYSTEMS, INC., a Delaware corporation ("APACHE").

WHEREAS, APACHE desires to retain Mr. Gladkin to provide certain management consulting services;

WHEREAS, Mr. Gladkin desires to provide such consulting services to APACHE;

NOW, THEREFORE, in consideration of the mutual promises, conditions, and covenants herein, the Parties agree as follows:

1. Term of Agreement. Subject to Section 10 of this Agreement, the term of this Agreement shall be May 4, 1998, through June 30, 1998, unless extended in writing by the Parties.

2. Services to be Provided. Consultant shall devote approximately 50 to 80 percent of his professional time assisting APACHE in developing strategic planning initiatives, developing and achieving financial projections, and evaluating APACHE's management and organizational needs as requested by, and in accordance with direction received from, APACHE's Board of Directors.

3. Compensation for Services Rendered. APACHE agrees to pay the Consultant a fixed per diem amount of $600.00 per day for each day that he spends a substantial amount of time traveling and performing services under this Agreement, irrespective of whether those services are rendered in Virginia, California, Illinois or elsewhere.

a. Consultant shall not be eligible to participate in or receive benefits under the employee benefit plans that APACHE maintains for its employees during the term of this Agreement, including, but not limited to, health benefits, paid vacation and sick leave, life insurance and medical benefits.

b. APACHE shall pay Consultant $20,000.00 ($10,000.00 on May 15 and $10,000.00 on June 15) as reimbursement for his air travel expenses between Washington and California during the term of this Agreement, and for which receipts will not be required. Additionally, APACHE shall reimburse Consultant for verified and reasonable expenses that he incurs while performing services for APACHE during the term of the Agreement, including expenditures for hotels, meals, other air travel, local transportation and other business expenses in accordance with APACHE's standard travel reimbursement policy.


4. Payment of Taxes. By execution of this Agreement, Consultant certifies that he is an independent contractor for federal and/or state employment tax purposes. Consultant understands and agrees that he is responsible for the payment of all taxes, including federal, state and local employment taxes arising out of his activities and receipt of payment under this Agreement. Pursuant to this Agreement, APACHE will not withhold, and is not responsible for, federal or state employment or other taxes that may be assessed and owed on the amounts that Consultant earns under this Agreement.

5. Independent Contractor Relationship. Consultant shall provide professional services to APACHE as an independent contractor. He shall not be considered an employee of APACHE during the term of this Agreement within the meaning of any federal, state or local law, or within the meaning or application of APACHE's employee benefit plans and related benefit policies and practices. Consistent with his status as an independent contractor, Consultant may continue to engage in other trade or business during the term of this Agreement
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