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Sample Business Contracts

Consulting Agreement - Atari Inc. and Ann E. Kronen

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                              CONSULTING AGREEMENT

     THIS CONSULTING AGREEMENT (this "Agreement") dated November 22, 2005, with
an effective date of August 1, 2005, is made between Atari, Inc. ("Company"), a
Delaware corporation with its principal place of business at 417 Fifth Avenue,
New York, NY 10016, and Ann E. Kronen ("Consultant").

1.   CONSULTATION SERVICES

          Company hereby engages Consultant, and Consultant accepts such
     engagement, to provide services ("Services") in accordance with the terms
     and conditions set forth in this Agreement. Specifically, Contractor shall
     provide business development and relationship management with potential and
     existing business partners that are located on the West Coast in the same
     manner and of the same quality as shall be reasonably requested by the
     Chairman of Company.

2.   TERM OF AGREEMENT

          The term ("Term") of this Agreement will begin on August 1, 2005, and
     will remain in effect until July 31, 2006, unless earlier terminated by
     either party upon thirty (30) days' written notice to the other party. The
     parties shall negotiate in good faith for a possible extension of the Term
     of this Agreement, it being understood and agreed that neither party will
     be obligated to so extend the Term. If the Agreement is not to be renewed
     at the desire of either party, then whichever party is not interested in
     renewing the Agreement shall use its best efforts give notice to such other
     party of its desire to not renew the Agreement by June 30, 2006.

3.   LOCATION OF SERVICES

          Consultant will perform Services at Company's various office locations
     and/or at other locations as Company's may reasonably request.

4.   COMPENSATION AND EXPENSES

          (a) In consideration of Consultant's Services hereunder, during the
     Term, Company shall pay Consultant the sum of Six Thousand Two Hundred
     Fifty Dollars ($6,250) per month, payable on the last day of each month in
     which Services are rendered (and prorated as necessary for incomplete
     months).

          (b) In addition, for services provided in connection with the sale of
     the Company's Humongous Entertainment Studio, which included assistance
     with formulating and describing the business, products, marketing plan and
     strategy for the Humongous properties (as set forth in the offering
     memorandum) and diligence meetings with potential purchasers, the Company
     shall pay Contractor the aggregate sum of $25,000, to be paid in two
     installments as follows (i) $15,000 upon execution of this Agreement, and
     (ii) $10,000 on January 1, 2006.

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          (c) The Company shall also pay directly or reimburse Consultant for,
     the cost of her reasonable and pre-approved (by the Chairman of Company)
     expenses.

5.   INDEPENDENT CONTRACTOR

          Company and Consultant agree that Consultant will act as an
     independent contractor in the performance of her Services under this
     Agreement. Nothing in this Agreement shall be construed to constitute
     Consultant as Company's partner, employee or agent, nor shall either party
     have authority to bind the other in any respect, it being intended that
     Contractor shall remain an independent contractor solely responsible for
     her own actions. Accordingly, Consultant shall be responsible for payment
     of all taxes, including but not limited to United States Federal, State and
     local taxes, arising out of Consultant's activities in accordance with this
     Agreement. Company will not make disability insurance contributions on
     behalf of Consultant, or obtain workers' compensation insurance on behalf
     of Consultant.

6.   ASSIGNMENT AND RESTRICTIONS

          Neither this Agreement nor any duties or obligations under this
     Agreement may be assigned or delegated by Consultant. During the Term of
     this Agreement, Contractor may not represent any other organizations whose
     interests are directly competitive with those of Company.

7.   NOTICES

          Except as otherwise provided herein, all notices under this Agreement
     shall be in writing and shall be given by courier, overnight delivery
     service, or by registered or certified mail if to the Company at the
     Company's address shown above or if to the Consultant, at the address on
     record with the Company's Human Resources department, or at a substitute
     address designated by notice by the party concerned. Each notice to Company
     shall be addressed to the attention of Bruno Bonnell, Chairman, with a copy
     to Kristina K. Pappa, Legal Department. Notices shall be deemed given when
     mailed, except that notice of change of address shall be effective only
     from the date of its receipt.

8.   INTELLECTUAL PROPERTY RIGHTS

          Atari shall have full and exclusive rights in and to, ownership of and
     title to all data, drawings, designs, analyses, graphs, reports, products,
     physical property, computer programs, software code, and all inventions,
     discoveries and improvements or other items or concepts, whether patentable
     or not, which are conceived or reduced to practice during the Term and
     arising out of or related to the Services performed hereunder, whether or
     not completed during the Term. Consultant agrees to make full and prompt
     disclosure and delivery to Company of all such items and, to the extent
     that Consultant may be so requested by Company, Consultant shall promptly
     execute


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     and deliver to Company assignments of rights to such items in a form
     satisfactory to Company. Consultant also agrees to cooperate fully with
     Company with respect to the preparation, prosecution, procurement,
     issuance, maintenance, enforcement and defense of patents and/or copyrights
     worldwide, including without limitation, applications therefor.

9.   MISCELLANEOUS

          (a)  Each party hereto, by its signature below, warrants and
               represents for itself that it has the full right, power and
               authority to enter into this Agreement.

          (b)  Consultant acknowledges that in the course of rendering Services
               to Company hereunder, she will have access to, and/or shall learn
               about and/or receive information relating to Company's business,
               some of which shall constitute Company's proprietary and/or trade
               secret information. All such information shall be and remain
               Company's property and Consultant shall at all times maintain the
               confidentiality of, and act with due care and protection of, such
               property.

          (c)  This Agreement constitutes the full agreement between Company and
               Consultant with respect to the rendition of Services hereunder,
               and no other additional promises, representations, guarantees or
               agreements of any kind shall be valid unless in writing and
               signed by both parties. Without limiting the generality of the
               foregoing, the parties hereto acknowledge and agree that (i)
               Consultant shall execute Company's Code of Ethics, Standards of
               Conduct and Confidentiality (the "Code of Ethics Policy") that
               all of the members of Company's Board of Directors and each of
               Company's executives that hold a position of Vice President or
               higher, shall be required to execute, and the terms of this
               Agreement shall not operate to diminish the full force and effect
               of the terms of such Code of Ethics Policy; and (ii) this
               Agreement replaces and supercedes all prior agreements between
               Company and Consultant, all such agreements having expired and
               being of no further force and effect.

          (d)  THIS AGREEMENT WILL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF
               THE STATE OF NEW YORK, EXCLUDING ITS CONFLICT OF LAW RULES. THE
               VENUE FOR ANY JUDICIAL PROCEEDING BETWEEN CONSULTANT AND COMPANY
               WILL EXCLUSIVELY BE IN THE STATE AND FEDERAL COURTS LOCATED IN
               THE COUNTY OF NEW YORK, STATE OF NEW YORK. CONSULTANT HEREBY
               SUBMITS TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS IN
               CONNECTION WITH ANY SUCH ACTION(S). CONSULTANT HEREBY AGREES TO
               ACCEPT SERVICE OF PROCESS PURSUANT TO THE NOTICE PROVISIONS
               HEREUNDER AND WAIVES ANY AND ALL OBJECTIONS TO VENUE,
               JURISDICTION OR METHOD OF SERVICE OF PROCESS. TO THE FULLEST
               EXTENT PREMITTED BY LAW, EACH OF THE PARTIES


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               HERETO WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY FOR
               LITIGATION ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR
               THE TRANSACTIONS CONTEMPLATED HEREBY.

                                 **************


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     In witness of the foregoing, the parties have caused this agreement to be
signed as of the date first written above.

                                        ATARI, INC.


/s/ Ann E. Kronen                       By: /s/ Diane P. Baker
-------------------------------------       ------------------------------------
Ann E. Kronen                               Name: Diane P. Baker
                                            Title: EVP & CFO


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