Exhibit 10.12


 





BUSINESS CONSULTING SERVICES AGREEMENT


 


 


This Business Consulting
Services Agreement (the “Agreement”) is entered into effective as of November ______, 2014 (the “Effective Date”)
by and between usell.com, Inc., a Delaware corporation (the “Company”) and Sunder Raman (the “Consultant”).
Each of the Company and the Consultant are hereinafter a “Party” and collectively the “Parties.”


 


WHEREAS,
the Company desires to retain the services of the Consultant and the Consultant is desirous and willing to accept such service
arrangement and render such services, all upon and subject to the terms and conditions contained in this Agreement,


 


NOW,
THEREFORE, in consideration of the promises and the mutual covenants set forth in this Agreement, and intending to be
legally bound, the Company and the Consultant agree as follows:


 


1.Engagement. The
Company hereby engages and retains the Consultant and the Consultant hereby agrees to render services upon the terms and conditions
hereinafter set forth.


 


2.Term.
This Agreement shall be for a term commencing on the Effective Date and terminating 36 months after the Effective Date (the
“Term”), unless sooner terminated in accordance with the provisions of Section 6.


 


3.Services. During
the Term, the Consultant shall act as a strategic advisor to the Company providing recommendations on organizational structure,
recruiting, and general business strategy (the “Services”). The Consultant shall devote up to 20 hours per month. The
Consultant shall use its best efforts to perform the Services pursuant to this Agreement competently, carefully, faithfully and
shall devote sufficient time and energies necessary to perform the Services. The Consultant’s Services shall be performed
on a non-exclusive basis, but may not be performed during the Term, whether directly or indirectly, for any direct competitor of
the Company or its subsidiary. For the avoidance of doubt, a direct competitor shall be deemed to be any online marketplace.


 


4.Compensation/Expenses.



 


(a)Equity Compensation.
The Consultant shall be issued 35,000 Restricted Stock Units (“RSUs”), vesting in equal increments every three months
(with fractions rounded up initially and then down) over a 36-month period, subject to the Consultant providing services on each
applicable vesting date. Provided, however, if there is a Change of Control of the Company as defined by the 2008
Equity Incentive Plan, all RSUs shall immediately vest. The RSUs shall be delivered on the earlier of (i) April 10, 2019 or (ii)
a Change of Control of the Company.


 


(b)Expenses. In addition
to any compensation received under this Section 4, the Company shall reimburse the Consultant for all reasonable travel, lodging,
meals, and other prior approved out-of-pocket expenses incurred or paid by the Consultant in connection with the performance of
its Services under this Agreement; provided, however, any such expenses over $500 shall be approved by the Company
in writing in advance. All other expenditures shall be the sole responsibility of the Consultant.


 






    	 



    	 



    

 


5.Independent
Contractor Relationship; Appointment to Board of Directors.


 


(a)The Consultant
acknowledges that it is an independent contractor and that no employee of the Consultant shall be considered an employee of the
Company. The Consultant acknowledges that it is not the legal representative or agent of the Company, nor does it have the power
to obligate the Company, for any purpose other than specifically provided in this Agreement.


 


(b)The Company
shall carry no worker’s compensation insurance or any health or accident insurance to cover the Consultant or his employees
(if any). The Company shall not pay contributions to social security, unemployment insurance, federal or state withholding taxes,
nor provide any other contributions or benefits, which might be expected in an employer-employee relationship. Neither the Consultant
nor his employees (if any) shall be entitled to medical coverage, life insurance or to participation in any current or future Company
pension plan.


 


(c)The Company shall
issue the Consultant a Form 1099 for all payments made hereunder. All taxes, withholding and the like on any and all amounts paid
under this Agreement shall be the Consultant’s responsibility. The Consultant agrees that it shall indemnify and hold the
Company, its affiliates, and agents, harmless from and against any judgments, fines, costs, or fees associated with such payments
hereunder.


 


6.Termination.


 


(a)In the event
of a material default under this Agreement by either party, the other party may terminate this Agreement if such default is not
cured within 10 days following delivery of written notice specifying and detailing the default complained of and demanding its
cure. Notwithstanding the preceding, in the event of a violation by the Consultant of Section 7, the Company may terminate this
Agreement immediately upon written notice to the Consultant.


 


(b)Upon termination
of this Agreement, the Company shall reimburse the Consultant for any reasonable expenses previously incurred for which the Consultant
had not been reimbursed prior to the effective date of termination, provided that the requirements of Section 4(c) have been satisfied.
Any and all other rights granted to the Consultant under this Agreement shall terminate as of the date of such termination.


 


7.Non-Disclosure of
Confidential Information.


 


(a)Confidential
Information. Confidential Information includes, but is not limited to, trade secrets as defined by the common law and statutes
in New York or any future New York statute, processes, policies, procedures, techniques including recruiting techniques, designs,
drawings, know-how, show-how, technical information, specifications, computer software and source code, information and data relating
to the development, research, testing, costs, marketing and uses of the Company’s products and services, the Company’s
budgets and strategic plans, databases, data, all technology relating to the Company’s businesses, systems, methods of operation,
information, solicitation leads, marketing and advertising materials, methods and manuals and forms, all of which pertain to the
activities or operations of the Company, names, home addresses and all telephone numbers and e-mail addresses of the Company’s
employees, former employees, clients and former clients. For purposes of this Agreement, the following will not constitute Confidential
Information (i) information which is or subsequently becomes generally available to the public through no act or omission of the
Consultant, (ii) information set forth in the written records of the Consultant prior to disclosure to the Consultant by or on
behalf of the Company, which information is given to the Company in writing as of or prior to the date of this Agreement, and (iii)
information which is lawfully obtained by the Consultant in writing from a third party (excluding any affiliates of the Consultant)
who was legally entitled to disclose the information.


 






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(b)Legitimate
Business Interests. The Consultant recognizes that the Company has legitimate business interests to protect and as a consequence,
the Consultant agrees to the restrictions contained in this Agreement because they further the Company’s legitimate business
interests. These legitimate business interests include, but are not limited to (i) trade secrets and valuable confidential business
or professional information that otherwise does not qualify as trade secrets, including all Confidential Information; (ii) substantial
relationships with specific prospective or existing customers; (iii) goodwill associated with the Company’s business; and
(iv) specialized training relating to the Company’s business, technology, methods and procedures.


 


(c)Confidentiality.
The Confidential Information shall be held by the Consultant in the strictest confidence and shall not, without the prior written
consent of the Company, be disclosed to any person other than in connection with the Consultant’s Services to the Company.
The Consultant further acknowledges that such Confidential Information as is acquired and used by the Company is a special, valuable
and unique asset. The Consultant shall exercise all due and diligence precautions to protect the integrity of the Company’s
Confidential Information and to keep it confidential whether it is in written form, on electronic media or oral. The Consultant
shall not copy any Confidential Information except to the extent necessary to perform its Services hereunder nor remove any Confidential
Information or copies thereof from the Company’s premises except to the extent necessary to provide its Services and then
only with the authorization of an officer of the Company. All records, files, materials and other Confidential Information obtained
by the Consultant in the course of its Services to the Company are confidential and proprietary and shall remain the exclusive
property of the Company. The Consultant shall not, except in connection with and as required by its performance of the Services
under this Agreement, for any reason use for his own benefit or the benefit of any person or entity with which he may be associated
or disclose any such Confidential Information to any person, firm, corporation, association or other entity for any reason or purpose
whatsoever without the prior written consent of an officer of the Company.


 


(d)Prior
Approval. Neither Party shall issue any public statements or press release concerning this Agreement or the Parties’
relationship without the other Party’s prior approval unless otherwise required by law (including in the Company’s
filings with the Securities and Exchange Commission).


 


8.Equitable Relief.
The Company and the Consultant recognize that the Services to be rendered under this Agreement by the Consultant are special, unique
and of extraordinary character, and that in the event of the breach by the Consultant of the terms and conditions of this Agreement
or if the Consultant shall cease to provide the Services to the Company for any reason and take any action in violation of Section
7, the Company shall be entitled to institute and prosecute proceedings in any court of competent jurisdiction to enjoin the Consultant
from breaching the provisions of Section 7. In such action, the Company shall not be required to plead or prove irreparable harm
or lack of an adequate remedy at law or post a bond or any security.


 






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9.Survival. Sections
7 through 18 shall survive termination of this Agreement.


 


10.Assignability.
The rights and obligations of the Company under this Agreement shall inure to the benefit of and be binding upon the successors
and assigns of the Company. This Agreement may not be assigned by the Consultant without the prior written consent of the Company
and any attempt to do so shall be void.


 


11.Severability.If
any provision of this Agreement otherwise is deemed to be invalid or unenforceable or is prohibited by the laws of the state or
jurisdiction where it is to be performed, this Agreement shall be considered divisible as to such provision and such provision
shall be inoperative in such state or jurisdiction and shall not be part of the consideration moving from either of the Parties
to the other. The remaining provisions of this Agreement shall be valid and binding and of like effect as though such provisions
were not included. If any restriction set forth in this Agreement is deemed unreasonable in scope, it is the Parties’ intent
that it shall be construed in such a manner as to impose only those restrictions that are reasonable in light of the circumstances
and as are necessary to assure the Company the benefits of this Agreement.


 


12.Notices and Addresses.
All notices, offers, acceptance and any other acts under this Agreement (except payment) shall be in writing, and shall be sufficiently
given if delivered to the addressees in person, by FedEx or similar overnight delivery, or electronically delivered, as follows:


 





	If to the Company:	usell.com, Inc.
	 	33 East 33rd Street, Ste. 1101
	 	New York, NY 10016
	 	Attention: Executive Chairman
	 	Email: Dan@usell.com
	 	 
	With a copy to:	Nason, Yeager, Gerson, White & Lioce, P.A.
	 	1645 Palm Beach Lakes Blvd., Suite 1200
	 	West Palm Beach, FL 33401
	 	Attention: Brian S. Bernstein, Esq.
	 	Email: bbernstein@nasonyeager.com
	 	 
	If to the Consultant:	To the location or email address provided on the signature page to this Agreement







 


or to such other address as either of them,
by notice to the other may designate from time to time. Time shall be counted to, or from, as the case may be, the delivery in
person or by mailing.


 






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13.Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together
shall constitute one and the same instrument. The execution of this Agreement may be by actual, facsimile or pdf signature.


 


14.Governing
Law. All claims relating to or arising out of this Agreement, or the breach thereof, whether sounding in contract, tort,
or otherwise, shall also be governed by the laws of the State of New York without regard to choice of law considerations.


 


15.Exclusive
Jurisdiction and Venue. Any action brought by either party against the other concerning the transactions contemplated by
or arising under this Agreement shall be brought only in the state or federal courts of New York and venue shall be in New York
County or the Southern District of New York. The Parties to this Agreement hereby irrevocably waive any objection to jurisdiction
and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon
forum non conveniens.


 


16.Entire Agreement.
This Agreement constitutes the entire agreement between the Parties and supersedes all prior oral and written agreements between
the Parties hereto with respect to the subject matter hereof. Neither this Agreement nor any provision hereof may be changed, waived,
discharged or terminated orally, except by a statement in writing signed by the party or Parties against whom enforcement or the
change, waiver discharge or termination is sought.


 


17. Additional
Documents. The Parties hereto shall execute such additional instruments as may be reasonably required by their counsel
in order to carry out the purpose and intent of this Agreement and to fulfill the obligations of the Parties hereunder.


 


18.Section and Paragraph
Headings. The section and paragraph headings in this Agreement are for reference purposes only and shall not affect the
meaning or interpretation of this Agreement.


 


 


[Signature Page to Follow]


 


 




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IN WITNESS WHEREOF,
the Company and the Consultant have executed this Agreement as of the date written above.


 





	 	COMPANY:
	 	 	 
	 	USELL.COM, INC.
	 	 	 
	 	 	 
	 	By:	 
	 	 	Daniel Brauser, Executive Chairman
	 	 	 
	 	 	 
	 	CONSULTANT:
	 	 	 
	 	 	 
	 	By: 	 
	 	 	Sunder Raman
	 	 	 
	 	Address:	 
	 	 
	 	 
	 	 
	 	Email:	 







  


 


[Signature Page to Consulting Agreement] 


 


 











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