Sample Business Contracts

Consulting Agreement - TLC The Laser Center Inc. and Excimer Management Corp.

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                              CONSULTING AGREEMENT

         THIS AGREEMENT is made as of this 1st day of January, 1996,

B E T W E E N:

                               TLC THE LASER CENTER INC., a corporation
                               incorporated under the laws of the Province of

                               (the "Corporation")

                               - and -

                               EXCIMER MANAGEMENT CORPORATION, a
                               corporation incorporated under the laws of the
                               Province of Ontario



A.    The Corporation is the parent company of a group of companies
      (collectively, the "TLC Group") involved in the business of providing
      excimer laser eye surgery and other secondary eye care services.

B.    EMCO has in its employ, Dr. Jeffrey J. Machat, a leading ophalmologist,
      expert in excimer laser eye surgery.

C.    The Corporation and EMCO wish to enter into this Agreement to set forth
      the basis upon which EMCO will make the services of Dr. Machat available
      to the Corporation.



1.    In this Agreement,

      "Agreement" means this agreement and all schedules attached to this
      agreement, in each case as they may be amended or supplemented from time
      to time;

      "Business Day" means any day, other than Saturday, Sunday or any statutory
      holiday in the Province of Ontario;

      "Competitive Business" means a business carried on anywhere in North
      America which includes the financing, development and/or operation of
      laser eye surgery clinics or secondary eye care clinics in the market
      areas where the Corporation carries on, or to the

      knowledge of EMCO at any time during the term of this Agreement or any
      renewals thereof, intends to carry on its business;

      "Confidential Information" means all confidential or proprietary
      information, Intellectual Property (including trade secrets) and
      confidential facts relating to the business or affairs of the Corporation
      or the TLC Group whether or not originated by the Executive including,
      without limitation, work product resulting from or related to work or
      projects performed or to be performed by the Corporation or the TLC Group,
      internal personnel and financial information of the Corporation or the TLC
      Group, purchasing and internal cost information, service and operational
      manuals, the manner and method of conducting the business of the
      Corporation or the TLC Group, marketing and development plans and
      agreements, price and cost data, price and fee amounts, pricing and
      billing policies, quoting procedures, marketing techniques, methods of
      obtaining business, forecasts and forecast assumptions and volumes, future
      plans and potential strategies of the Corporation or the TLC Group which
      have been or are being discussed, ideas concerning proposed eye surgery
      clinics, contracts and their contents, patient and affiliated doctor
      services, data provided by patients and affiliated doctor services, and
      the type, quantity and specifications of products and services, purchased,
      leased, licensed, engaged, employed or received by the Corporation or the
      TLC Group or by clients of the Corporation or the TLC Group, business
      plans, patients, affiliated doctor and vendor lists, business deals with
      any of these, financing, acquisition, development, licensing and
      distribution agreements and budgets and investment opportunities and

      "Contract Term" means the Term and renewals thereof;

      "Contract Year" means any 12 month period commencing on January 1, and
      ending on December 31;

      "Disability" means the mental or physical state of Dr. Machat such that
      Dr. Machat has been unable as a result of illness, disease, mental or
      physical disability or similar cause, as determined by a legally qualified
      medical practitioner selected by the Corporation, to fulfil EMCO's
      obligations under this Agreement either for any consecutive 180 day period
      or for any period of 180 days (whether or not consecutive) in any
      consecutive 365 day period;

      "Intellectual Property" means all legally recognized rights which result
      or derive from Dr. Machat's services provided to the Corporation or the
      TLC Group or with the knowledge, use or incorporation of Confidential
      Information, and includes but is not limited to developments, inventions,
      designs, works of authorship, improvements and ideas, whether or not
      patentable or copyrightable, conceived or made by Dr. Machat (individually
      or in collaboration with others) during the Contract Term or which result
      from or derive from the Corporation's or the TLC Group's resources or
      which are reasonably related to the business of the Corporation or the TLC
      Group other than any of the foregoing in respect of which EMCO provides
      written notice thereof to the Corporation prior to any material work being
      undertaken by Dr. Machat, EMCO requests that all such rights which may
      result or derive from such work be excluded from the definition of
      "Intellectual Property" and the President of the Corporation provides
      written notice to EMCO of its agreement with such request;

      "Person" means any individual, partnership, limited partnership, joint
      venture, syndicate, sole proprietorship, company or corporation with or
      without share capital, unincorporated association, trust, trustee,
      executor, administrator or other legal personal representative, regulatory
      body or agency, government or governmental agency, authority or entity
      however designated or constituted;

      "Term" has the meaning set out in section 3; and

      "Termination Event" means: (i) the failure of EMCO, through Dr. Machat, to
      carry out its obligations hereunder after notice by the Corporation of the
      failure to do so and an opportunity for EMCO to correct the same within a
      reasonable time from the date of receipt of such notice, (ii) theft,
      fraud, dishonesty or misconduct by EMCO or its employees involving the
      property, business or affairs of the Corporation or the carrying out of
      EMCO's obligations; or (iii) any material breach or non-observance by EMCO
      of any term of this Agreement.

2.          Scope of Services

            The Corporation hereby retains EMCO to provide the services of Dr.
Machat as follows:

            (i)   to provide consulting services to the Corporation in the
                  capacity of Chief Surgeon of the Windsor laser eye surgery
                  clinic owned by the Corporation (the "Windsor Clinic") and
                  Co-National Medical Director for the Corporation which shall
                  include advising the Corporation on doctor qualifications,
                  surgery methods, procedures and techniques, laser machines,
                  research results, patient profiles and other medical
                  professional matters relating to establishing and conducting
                  laser eye surgery clinics in North America;

            (ii)  on behalf of the Corporation, establishing and implementing
                  training procedures and education programs to be made
                  available by the Corporation to affiliated doctors throughout
                  North America; and

            (iii) to provide such further advice and assistance to the
                  Corporation in connection with its laser eye surgery clinics
                  as the Corporation may reasonably request from time to time.

            The Corporation will designate Dr. Machat as its Chief Surgeon of
the Windsor Clinic and Co-National Medical Director. EMCO hereby acknowledges
that the services to be rendered by it hereunder will be provided to the TLC
Group as a whole as well as the Corporation.

3.          Contract Period

            The term of this Agreement will, subject to section 9, be for a term
of three years ending on December 31, 1998 (the "Term"). Thereafter, the Term
shall be automatically extended for successive periods of one year unless either
party gives notice of termination within 60 days before or after the applicable
renewal date.

4.          Performance of Duties

            During the Contract Period, EMCO shall cause Dr. Machat to
faithfully, honestly and diligently provide the services herein contracted for
to the Corporation and the TLC Group. EMCO will cause Dr. Machat (except in the
case of illness or accident) to devote sufficient time and effort to the
services herein contracted for so as to use his best efforts to promote the
interests of the Corporation. EMCO appreciates that the services herein
contracted for may involve significant travel, and agrees to cause Dr. Machat to
travel as reasonably required in order to fulfil EMCO's obligations hereunder.

5.          Fees

            The Corporation will pay EMCO for the services of Dr. Machat
hereunder an annual contract fee (the "Fee") throughout each year of the Term in
an amount equal to $200,000 (US). EMCO acknowledges that Dr. Machat is an
employee of EMCO and EMCO shall be solely responsible for deduction for income
taxes and other required deductions, such as Canada Pension Plan and
Unemployment Insurance contributions payable by or in respect of Dr. Machat
pursuant to his employment with EMCO and hereby indemnifies and saves the
Corporation harmless in respect thereof. Unless otherwise agreed in writing, the
Fee will be payable in equal installments monthly in arrears in each month
during each Contract Year, the first payment to be made on February 1, 1996.

6.          Expenses

            The Corporation will, upon presentation of expense statements or
receipts and such other supporting documentation as the Corporation may
reasonably require, pay or reimburse EMCO in accordance with the Corporation's
expense policies for all travel and out-of-pocket expenses reasonably incurred
or paid by EMCO in the performance by Dr. Machat of the services herein
contracted for.

7.          Vacation

            The Corporation acknowledges that during each Contract Year of this
Agreement EMCO will provide the services of Dr. Machat to the Corporation for a
maximum of 48 weeks. EMCO agrees to consult with the Corporation concerning the
proposed weeks when Dr. Machat will not be made available to ensure that such
time may be convenient to the Corporation having regard to those of its
operations in respect of which Dr. Machat is providing services hereunder.

8.          Termination

      (a)   Notice. This Agreement may be terminated by the Corporation at any

            (i)   without prior notice and without further obligations to EMCO
                  for Disability or if a Termination Event occurs. Termination
                  of this Agreement by the Corporation pursuant hereto may be
                  undertaken only under the authority of a resolution of the
                  board of directors of the Corporation approved by 80% of the

            (ii)  upon 90 days prior written notice, provided however that if
                  this Agreement is so terminated an amount equal to two times
                  the Fee shall be payable to EMCO within 30 days following
                  notice of such termination. Termination

                  of this Agreement by the Corporation pursuant hereto may be
                  undertaken only under the authority of a resolution of the
                  board of directors of the Corporation approved by 80% of the

      (b)   This Agreement will be automatically terminated, without further
            obligation on the part of the Corporation or the TLC Group (except
            as to the pro-rata payments of amounts owing to such date) upon the
            death of Dr. Machat.

      (c)   Effective Date. The effective date on which this Agreement will be
            deemed to have been terminated will be:

            (i)   in the case of termination under section 8(a), 30 days
                  following delivery of notice of termination; and

            (ii)  in the case of termination pursuant to section 8(b), on the
                  date of death.

      (d)   No Other Obligations. Except for payment of all amounts owing
            hereunder to the effective date of a termination or as otherwise
            provided herein, neither EMCO nor Dr. Machat will be entitled to
            receive any payment arising out of or relating to this Agreement.
            EMCO on its own behalf and on behalf of its employees hereby waives
            any claims against the Corporation for or in respect of termination
            pay, severance pay, or on account of loss of office or employment or
            notice in lieu thereof or damages in lieu thereof and EMCO hereby
            indemnifies and saves the Corporation harmless in respect thereof.

      (e)   Termination by EMCO. Following the expiration of the Term, this
            Agreement may be terminated by EMCO at any time on 120 days prior
            written notice.

9.          Return of Materials Uoon Termination

            Upon termination of this Agreement, EMCO shall cause its employees
to promptly deliver to the Corporation all property of or belonging to or
administered by the Corporation or the TLC Group, including without limitation
all documents, manuals, customer, patient, affiliated doctor, supplier, product
and other proprietary lists, data, records, computer programs, codes, materials,
prototypes, products, samples, analyses, reports, marketing materials,
equipment, tools and devices relating or pertaining to any Intellectual Property
or Confidential Information, including all copies or reproductions of the same

10.         Non-Competition Agreement

            EMCO acknowledges the competitive and proprietary nature of the
business carried on by the Corporation and the TLC Group and the interests of
the Corporation and the TLC Group in limiting, on a reasonable basis, the
availability of those primary consultants providing services to Competitive

            Accordingly, EMCO agrees that neither it nor any of its employees
will, either during the Term or any renewal thereof or for a period of 24 months
thereafter, directly or indirectly, in any manner whatsoever including, without
limitation, either individually, or in partnership, jointly or in conjunction
with any other Person, or as employee, principal, agent, consultant, adviser,
director or shareholder

            (a)   be engaged in any undertaking;

            (b)   have any financial or other interest (including an interest by
                  way of royalty or other compensation arrangements) in or in
                  respect of the business of any Person which carries on a
                  business; or

            (c)   advise, lend money to, guarantee the debts or obligations of
                  or permit the use of the Executive's name or any part thereof
                  by any Person which carries on a business;

anywhere in North America, if the undertaking or the business, as the case may
be, is a Competitive Business.

            Nothing in this section 10 will operate to prevent (i) EMCO or Dr.
Machat from owning, on a passive investment basis, up to 5% of the issued shares
of a Competitive Business, the shares of which are traded on a recognized stock
exchange or traded in the over-the-counter market in Canada or elsewhere, or
(ii) following the termination of this Agreement, Dr. Machat from performing
excimer laser surgery as a sole practitioner at a single location in Canada
provided such practice has no professional or business relationship, directly or
indirectly, with a Competitive Business and is not within a 100 mile radius of
any TLC eye care facility.

11.         No-Solicitation of Employees or Consultants

            EMCO acknowledges the importance to the business carried on by the
TLC Group of the human resources engaged and developed by the TLC Group and the
unique access that EMCO's employees with the TLC Group offers to interfere with
these resources. Accordingly, EMCO covenants that neither it nor any of its
employees will, during the Contract Period and for the period of 24 months
thereafter, directly or indirectly, employ, be employed by, enter into a
partnership or other association with or retain as an independent contractor or
be retained as an independent contractor by any employee of or consultant to the
Corporation or the TLC Group or induce or solicit, or attempt to induce, any
such person to leave that person's employment or engagement.

12.         Confidentiality

            Neither EMCO nor any of its employees will, during the Contract
Period and at any time thereafter, directly or indirectly, other than as
required pursuant hereto use or disclose to any Person any Confidential
Information unless;

      (a)   the Confidential Information is available to the public or in the
            public domain at the time of such disclosure or use, without breach
            of this Agreement or any similar agreement between the Corporation
            and others; or;

      (b)   disclosure of the Confidential Information is required to be made by
            any law, regulation, governmental authority or court, provided that
            before disclosure is made, notice of the requirement is provided to
            the Corporation, and (to the extent possible in the circumstances)
            the Corporation is afforded an opportunity to dispute the
            requirements for disclosure.

EMCO's and its employees obligations under this section 12 are to remain in
effect in perpetuity and will exist and continue in full force and effect
notwithstanding any breach or repudiation or any alleged breach or repudiation
of this Agreement by the Corporation.

13.         Copyright

            During the Contract Period, EMCO agrees that it and its employees
will disclose to the Corporation all Intellectual Property developed by Dr.
Machat, either individually or in collaboration with others, which relates
directly or indirectly to the business of the Corporation or the TLC Group. EMCO
acknowledges and agrees that all right, title and interest of any kind
whatsoever in and to the Intellectual Property, including the foregoing and any
copyrights, is and will be the exclusive property of the Corporation and the
Corporation will have absolute discretion to determine how such Intellectual
Property is used. All work done during the Contract Period by Dr. Machat or EMCO
for the Corporation or a member of the TLC Group is a work in respect of which
the Corporation or the member of the TLC Group, as the case may be, shall be
deemed to be the first author for copyright purposes. Copyright will vest in the
Corporation or the relevant member of the TLC Group, as the case may be. EMCO on
its own behalf and on behalf of Dr. Machat hereby waives all moral rights that
either may have in the Intellectual Property and agrees that this waiver may be
invoked by the Corporation, and by any of its authorized agents or assignees, to
use any of the Intellectual Property. EMCO agrees that to execute all such
instruments and do all such things as may be reasonably necessary or desirable
to give full effect to the foregoing and will cooperate and assist the
Corporation and the TLC Group in enforcing their rights under this paragraph.

14.         Certain Warranties, Covenants and Remedies

      (a)   EMCO agrees that its obligations as set forth in sections 9, 10, 11,
            12 and 13 will be deemed to have commenced as of the date on which
            services are or have been provided by EMCO to the Corporation before
            or after the date hereof

      (b)   EMCO acknowledges that a material breach or threatened material
            breach of any of sections 9, 10, 11, 12 and 13 will result in the
            Corporation and its shareholders suffering irreparable harm which is
            not capable of being calculated and which cannot be fully or
            adequately compensated by the recovery of damages alone.
            Accordingly, EMCO agrees that the Corporation will be entitled to
            interim and permanent injunctive relief; specific performance and
            other equitable remedies, in addition to any other relief to which
            the Corporation may become entitled.

      (c)   EMCO's obligations under each of sections 9, 10, 11, 12 and 13 are
            to remain in effect in accordance with their terms and will exist
            and continue in full force and effect notwithstanding any breach or
            repudiation, or alleged breach or repudiation, of this Agreement by
            the Corporation.

      (d)   EMCO represents, warrants and covenants that (i) it will at all
            times during this Agreement employ Dr. Machat; (ii) it will not
            provide the services of any of its employees to a Competitive
            Business during the term hereof; (iii) it will at all times while
            Dr. Machat is its employee maintain disability insurance for the
            benefit of Dr. Machat in amounts not less than and on terms no less
            favourable than those formerly maintained by the Corporation; and
            (iv) no employee of EMCO will consult, lecture, take part in
            education or training seminars or speaking

            engagements, in the eye care field, without the prior written
            consent of the Corporation, which consent may be unreasonably

15.         Co-operation

            EMCO will co-operate and will cause Dr. Machat to co-operate in all
respects with the Corporation if a question arises as to whether Dr. Machat has
a Disability. Without limitation, Dr. Machat will authorize his medical doctor
or other health care specialist to discuss any medical condition with the
Corporation and will as reasonably requested by the Corporation submit to
examination by a medical doctor or other health care specialist selected by the

16.         Residence

            EMCO represents and warrants that it is not a non-resident of Canada
for purposes of the Income Tax Act (Canada).

17.         Notices

            Any notice or other communication required or permitted to be given
hereunder must be in writing, delivered by facsimile or by hand-delivery as
hereinafter provided. Any such notice or other communication, if sent by
facsimile, will be deemed to have been received on the Business Day following
the sending, or if delivered by hand to the Executive will be deemed to have
been received at the time it is delivered to him or, if delivered to the
Executive or the Corporation at applicable address noted below, when it is
delivered either to the individual designated below or to an individual at such
address having apparent authority to accept deliveries on behalf of the
addressee. Notice of change of address will also be governed by this section.
Notices and other communications must be addressed as follows:

      (a)   if to EMCO.

      (b)   if to the Corporation:

            206 Laird Drive
            Suite 100
            Toronto, Ontario
            M4G 3W4

            Attention: President
            Telecopier number: (416) 467-6882

18.         Headings

            The inclusion of headings in this Agreement is for convenience of
reference only and is not to affect the construction or interpretation hereof

19.         Invalidity of Provisions

            Each of the provisions contained in this Agreement is distinct and
severable and a declaration of invalidity or unenforceability of any provision
by a court of competent jurisdiction will not affect the validity or
enforceability of any other provision hereof

20.         Entire Agreement

            This Agreement constitutes the entire agreement between the parties
pertaining to the subject matter of this Agreement. This Agreement supersedes
and replaces all prior agreements, if any, written or oral, with respect to the
subject matter hereof. There are no warranties, representations or agreements
between the parties in connection with the subject matter of this Agreement
except as specifically set forth or referred to in this Agreement. No reliance
is placed on any representations, opinion, advice or assertion of fact made by
the Corporation the TLC Group or its directors, officers and agents to EMCO,
except to the extent that the same has been reduced to writing and included as a
term of this Agreement. Accordingly, there will be no liability, either in tort
or in contract, assessed in relation to any such representation, opinion, advice
or assertion of fact, except to the extent aforesaid.

21.         Waiver, Amendment

            Except as expressly provided in this Agreement, no amendment or
waiver of this Agreement will be binding unless executed in writing by the party
to be bound thereby. No waiver of any provision of this Agreement will
constitute a waiver of any other provision nor will any waiver of any provision
of this Agreement constitute a continuing waiver unless otherwise expressly
provided. Neither this Agreement nor any part thereof may be assigned without
the prior written consent of the other party hereto.

22.         Surgery Agreement

            The parties hereto acknowledge that Dr. Machat and one or more
members of the TLC Group may enter into a Surgery Agreement pursuant to which
Dr. Machat performs laser eye surgery at one or more TLC clinics. Any such
agreement shall be completely separate from and independent of this agreement
and shall be deemed not to be a breach of any obligations hereunder.

23.         Governing Law

            This Agreement will be governed by and construed in accordance with
the laws of the Province of Ontario.

24.         Counterparts

            This Agreement may be signed in counterparts. Each counterpart will
constitute an original document and all counterparts, taken together, will
constitute one and the same instrument. Executed counterparts may be delivered
by telecopier.


                                       EXCIMER MANAGEMENT

                                       By /s/ Dr Jeffery J. Machat
                                          ---------------------------------- c/s
                                          Dr Jeffery J. Machat

                                       TLC THE LASER CENTER INC.

                                       By /s/ Elias Vamvakas
                                          ---------------------------------- c/s
                                          Elias Vamvakas