Document:

f8k090913ex10i_healthrevenue.htm

Exhibit 10.1

 

CONSULTING AGREEMENT

 

 

CONSULTING AGREEMENT dated as of September 9, 2013 (the “Agreement”) by and between Michael Ciprianni (the “Consultant”) and Health Revenue Assurance Associates (OTCBB: HRAA)  (the “Company”).

 

WHEREAS, the Company desires to engage the Consultant as a consultant to provide certain consulting services related to the Company’s business, and the Consultant is willing to be engaged by the Company as a consultant and to provide such services, on the terms and conditions set forth below.

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the receipt and sufficiency of which are hereby acknowledged, the Company and the Consultant agree as follows:

 

1.           Consulting.  The Company hereby retains the Consultant, and the Consultant hereby agrees to make himself available as a consultant to the Company, upon the terms and subject to the conditions contained herein.

 

2.           Duties of Consultant.  During the Consulting Term (as hereinafter defined), the Consultant shall provide the Company with certain professional consulting services relating to the following: (i) familiarize itself, to the extent appropriate and feasible, with the business, operations, properties, financial condition, management and prospects of the Company; (ii) advise the Company on matters relating to its capitalization; (iii) evaluate alternative financing structures and arrangements; (iv) assist the Company in developing appropriate acquisition criteria and identifying target industries; and (v) assist the Company in evaluating and make recommendations concerning the relationships among the Company’s various lines of business and potential areas for business growth. It is acknowledged and agreed by the Company that Consultant carries no professional licenses, and is not rendering legal advice or performing accounting services, nor acting as an investment advisor or brokerage/dealer within the meaning of the applicable state and federal securities laws.  The Services of Consultant shall not be exclusive nor shall Consultant be required to render any specific number of hours or assign specific personnel to the Company or its projects, however it is anticipated and agreed upon by both parties that considerable time and resources will be required to fulfill the obligations to the Company under this agreement

 

3.           Term. Subject to the provisions for termination hereinafter provided, the term of this Agreement shall commence on the date first written above (the “Effective Date”) and shall continue for a period of one year (the “Consulting Term”) and is renewable for additional one year terms at the discretion of the Company.

 

  

  

  

 

4.           Compensation.  In consideration of the services to be provided by the Consultant hereunder, the Company shall pay the Consultant:

a) Four Million One Hundred Twenty Five Thousand (4,125,000) shares of common stock upon execution of this agreement.

b) Additional special projects to be described in scope of work along with compensation to be attached as addendum.

 

5.           Termination.  If the Consultant should fail to perform any of the obligations hereunder for any cause, always in the sole judgment and decision of the Company, then the Company shall have the right to terminate this agreement on five days prior written notice.  The Consultant shall have the right to resign at any time and for any reason upon 10 days prior written notice.

 

6.           Confidential Information.  The Consultant recognizes and acknowledges that by reason of Consultant’s retention by and service to the Company before, during and, if applicable, after the Consulting Term, the Consultant will have access to certain confidential and proprietary information relating to the Company’s business, which may include, but is not limited to, trade secrets, trade “know-how,” product development techniques and plans, formulas, customer lists and addresses,  financing services, funding programs, cost and pricing information, marketing and sales techniques, strategy and programs, computer programs and software and financial information (collectively referred to as “Confidential Information”).  The Consultant acknowledges that such Confidential Information is a valuable and unique asset of the Company and Consultant covenants that he will not, unless expressly authorized in writing by the Company, at any time during the Consulting Term use any Confidential Information or divulge or disclose any Confidential Information to any person, firm or corporation except in connection with the performance of Consultant’s duties for the Company and in a manner consistent with the Company’s policies regarding Confidential Information.  The Consultant also covenants that at any time after the termination of this Agreement, directly or indirectly, he will not use any Confidential Information or divulge or disclose any Confidential Information to any person, firm or corporation, unless such information is in the public domain through no fault of Consultant or except when required to do so by a court of law, by any governmental agency having supervisory authority over the business of the Company or by any administrative or legislative body (including a committee thereof) with apparent jurisdiction to order Consultant to divulge, disclose or make accessible such information.  All written Confidential Information (including, without limitation, in any computer or other electronic format) which comes into the Consultant’s possession during the Consulting Term shall remain the property of the Company.  Except as required in the performance of the Consultant’s duties for the Company, or unless expressly authorized in writing by the Company, the Consultant shall not remove any written Confidential Information from the Company’s premises, except in connection with the performance of Consultant’s duties for the Company and in a manner consistent with the Company’s policies regarding Confidential Information.  Upon termination of this Agreement, the Consultant agrees to return immediately to the Company all written Confidential Information (including, without limitation, in any computer or other electronic format) in Consultant’s possession.

 

  

  

  

 

7.           Status as Independent Contractor.  The parties intend and acknowledge that the Consultant is acting as an independent contractor and not as an employee of the Company.  The Consultant shall have full discretion in determining the amount of time and activity to be devoted to rendering the services contemplated under this Agreement and the level of compensation to Consultant is not dependent upon any preordained time commitment or level of activity.  The Company acknowledges that the Consultant shall remain free to accept other consulting engagements of a like nature to the engagement under this Agreement.  The Company shall not be responsible for any withholding in respect of taxes or any other deductions in respect of the fees to be paid to Consultant and all such amounts shall be paid without any deduction or withholding.  Nothing in this Agreement shall be construed to create any partnership, joint venture or similar arrangement between the Company and the Consultant or to render either party responsible for any debts or liabilities of the other.

 

8.           Consultant’s Services to Others.  The Company acknowledges that Consultant and his affiliates are in the business of providing consulting advice to others.  Nothing herein contained shall be construed to limit or restrict Consultant or his affiliates in conducting such business with respect to others or in rendering such advice to others.  The Consultant acknowledges that the Company may hire other consultants to provide services complimentary to those provided by the Consultant.

9.           Conflict of Interest.  The Consultant and the Company agree that there is no conflict of interest in connection with the retention by the Company of the Consultant pursuant to this Agreement.

 

10.           Waiver of Breach.  The waiver by any party hereto of a breach of any provision of this Agreement shall not operate nor be construed as a waiver of any subsequent breach.

 

11.           Binding Effect; Benefits.  Neither of the parties hereto may assign its or his rights hereunder without the prior written consent of the other party hereto, and any such attempted assignment without such consent shall be null and void and without effect.  This Agreement shall inure to the benefit of, and shall be binding upon, the parties hereto and their respective successors, permitted assigns, heirs and legal representatives.

 

12.           Notices.  All notices and other communications which are required or may be given under this Agreement shall be in writing and shall be deemed to have been duly given (a) when delivered in person, (b) one (1) business day after being mailed with a nationally recognized overnight courier service, or (c) three (3) business days after being mailed by registered or certified first class mail, postage prepaid, return receipt requested, to the parties hereto at:

 

If to the Company, to :

Robert Rubinowitz

Health Revenue Assurance Associates

8551 West Sunrise Blvd, Suite 304

Plantation, FL33322

 

  

  

  

 

If to the Consultant, to:

Michael Ciprianni

11606 Charisma Way

Palm Beach Gardens, FL 33418

13.           Entire Agreement; Amendments.    This Agreement contains the entire agreement and supersedes all prior agreements and understandings, oral or written, between the parties hereto with respect to the subject matter hereof.  This Agreement may not be changed orally, but only by an agreement in writing signed by the party against whom any waiver, change, amendment, modification or discharge is sought.

14.           Severability.  The invalidity of all or any part of any provision of this Agreement shall not render invalid the remainder of this Agreement or the remainder of such provision.  If any provision of this Agreement is so broad as to be unenforceable, such provision shall be interpreted to be only so broad as is enforceable.

 

15.           Governing Law; Consent to Jurisdiction.  This Agreement shall be governed by and construed in accordance with the law of the State of Florida without giving effect to the principles of conflicts of law thereof.  The parties hereto each hereby submits himself or itself for the sole purpose of this Agreement and any controversy arising hereunder to the exclusive jurisdiction of the courts in the State of Florida.

 

16.           Headings.  The headings herein are inserted only as a matter of convenience and reference, and in no way define, limit or describe the scope of this Agreement or the intent of the provisions thereof.

 

17.           Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument.  Signatures evidenced by facsimile transmission will be accepted as original signatures.

 

[SIGNATURE PAGE FOLLOWS]

 

  

  

  

 

IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as of the date first above written.

 

Health Revenue Assurance Associates, Inc

 

	 	
By: 

	/s/ Robert Rubinowitz	 
	 	 	Robert Rubinowitz, President	 

 

 

Consultant

 

	
 

	
By: 

	/s/ Michael Ciprianni	 
	 	 	Michael CiprianniEMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT
(the “Agreement”) is made and entered into as of September 6, 2013 by and between Rich Pharmaceuticals,
Inc., a Nevada corporation (the “Company”) and Ben Chang (the “Employee”).

 

A.                 
Employee has served as the Chief Executive Officer, Chief Financial Officer, Secretary and
President of the Company since July 18, 2013, and the Company desires to enter into this Agreement to retain the services of the
Employee in such capacities, and the Employee desires to continue to provide services to the Company in such capacities. 

 

B.                 
The Employee is willing to be employed by the Company on the terms and subject to the conditions
set forth in this Agreement.

THE PARTIES AGREE AS FOLLOWS:

 

1.                  
Positions and Duties.

1.1               
Title. The Employee shall be employed by the Company as its Chief Executive
Officer, Chief Financial Officer and President, and the Company agrees to employ and retain the Employee in such capacity. The
Employee shall report to, and serve at the pleasure of, the Company’s Board of Directors (the “Board”).

1.2               
Duties. Employee shall devote the majority of his business time, energy, and
skill to the affairs of the Company to perform the duties required and necessary for a chief executive officer, chief financial
officer and president of a public company in the Company’s industry, and shall ensure that Employee’s other business,
charitable or professional activities do not materially interfere with the Employee’s performance of services under this
Agreement. Employee’s duties as Secretary shall cease upon the Company’s appointment of a Secretary. 

1.3Term
of Employment. The term of Employee's employment pursuant to this Agreement commenced on September 6, 2013 (the “Effective
Date”), and shall expire on September 6, 2015, unless renewed or extended by the agreement of the parties hereto,
or terminated earlier as provided herein.

1.4Employee
Indemnification. The Employee shall be entitled to all rights to indemnification as a Company officer as provided under
the laws of the State of Nevada, the Company’s Certificate of Incorporation, the Company’s Bylaws, and the Company’s
insurance policies.

2.                  
Terms of Employment.

2.1               
Definitions. For purposes of this Agreement, the following terms shall have
the following meanings:

    	 

    	 

    

(a)                
“Accrued Compensation” shall mean any accrued Total Compensation,
any benefits under any plan of the Company in which the Employee is a participant to the full extent of Employee’s rights
under such plans, any accrued vacation pay, and any appropriate business expenses incurred by the Employee in connection with the
performance of Employee’s duties hereunder, all to the extent unpaid on the date of termination.

(b)                
“Base Compensation” shall have the meaning set forth in Sections
3.1 and 3.2 hereof.

(c)                
“Change of Control” shall mean the consummation of an acquisition,
a merger or consolidation of the Company with or into another entity or any other corporate reorganization, if more than 50% of
the combined voting power of the continuing or surviving entity's securities outstanding immediately after such acquisition, merger,
consolidation or other reorganization is owned by persons who in the aggregate owned less than 20% of the Company's combined voting
power represented by the Company's outstanding securities immediately prior to such acquisition, merger, consolidation or other
reorganization.

(d)                
“Death Termination” shall mean termination of the Employee’s
employment because of the death of the Employee.

(e)                
“Disability Termination” means termination by the Company of the
Employee’s employment by reason of the Employee’s incapacitation due to disability. The Employee shall be deemed to
be incapacitated due to disability if at the end of any month the Employee is unable to perform substantially all of his or her
duties under this Agreement in the normal and regular manner due to illness, injury or mental or physical incapacity, and has been
unable so to perform for either (i) three consecutive full calendar months then ending, or (ii) 90 or more of the normal working
days during the 12 consecutive full calendar months then ending. Nothing in this paragraph shall alter the Company’s obligations
under applicable law, which may, in certain circumstances, result in the suspension or alteration of the foregoing time periods.

(f)                 
“Termination For Cause” means termination by the Company of the
Employee’s employment by reason of the Employee’s (i) dishonesty or fraud, (ii) gross negligence in the performance
of his or her duties hereunder, (iii) material breach of this Agreement, (iv) intentional engagement in acts seriously detrimental
to the Company’s operations, (v) conviction of a felony involving moral turpitude, or (vi) failure to comply with any lawful
orders or directions of the Board that are not incompatible with his position with the Company or manifestly unreasonable or unethical,
provided that the Board delivers to Employee a written notification specifying in sufficient detail such order or direction and
the Employee has thirty (30) days within which to comply with such order or direction (or such reasonably shorter period of time
if such ordered or directed task by its nature requires completion in less than thirty (30) days)). 

(g)                
“Termination Other Than For Cause” means termination by the Company
of the Employee’s employment for any reason other than as specified in Sections 2.1(c), (d), (e) or (i) hereof. 

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(h)                
“Total Compensation” shall mean the Employee’s Base Salary
(as defined in Section 3.1).

(i)                  
“Voluntary Termination” means termination of the Employee’s
employment by the voluntary action of the Employee other than by reason of a Disability Termination or a Death Termination.

2.2               
Termination For Cause. The Company shall have the right to effect a Termination
For Cause as provide in Section 2.1(f). Upon Termination For Cause, the Company shall pay the Employee Accrued Compensation, if
any.

2.3               
Termination Other Than For Cause. The Company shall have the right to effect
a Termination Other Than For Cause upon thirty (30) days prior notice to the Employee. In the event of a Termination Other Than
For Cause before the expiration of the Employment Agreement, the Company shall pay the Employee all Accrued Compensation, if any,
and all Severance Compensation as provided in Section 2.6.

2.4               
Disability Termination. The Company shall have the right to effect a Disability
Termination by giving written notice thereof to the Employee. Upon Disability Termination, the Company shall pay the Employee all
Accrued Compensation, if any.

2.5               
Death Termination. In the event of the Employee’s death during the term
of this Agreement, the Employee’s employment shall be deemed to have terminated as of the last day of the month during which
his or her death occurs, and the Company shall promptly pay to the Employee’s estate Accrued Compensation, if any.

2.6               
Severance Payments. In the event of the termination of Employee resulting from
(i) a Change of Control; or (ii) Termination Other Than For Cause at any time during the first twelve (12) months of employment,
Employee shall be paid severance payments equal to three (3) months of Base Salary. In the event of the termination of Employee
resulting from (i) a Change of Control; or (ii) Termination Other Than For Cause at any time during the second twelve (12) months
of employment, Employee shall be paid severance payments equal to six (6) months of Base Salary. The severance payment shall be
paid pursuant to the Company’s normal payroll schedule for the applicable monthly period following the termination date.

3.                  
Compensation and Benefits.

3.1               
Base Salary. As payment for the services to be rendered by the Employee as provided
in Section 1 and subject to the provisions of Section 2 of this Agreement, the Company shall pay the Employee a “Base
Salary” at the rate of $22,916.66 per month (equivalent to $275,000 per year), payable on the Company’s normal
payroll schedule. Employee and Company agree that the amount of $68,749.98 is due and payable by the Company to Employee as of
the date of this Agreement as a bonus for services performed on behalf of the Company.

3.2Option
Compensation. As payment for the services to be rendered by the Employee as provided in Section 1 and subject to the provisions
of this Agreement, the Company shall issue to Employee options to purchase up to 7,200 shares of Company common stock pursuant
to the terms of the Company’s 2013 Stock Option Plan and the Plan award documents. The material terms of the options shall
be as follows: (i) $8.00 exercise price; (ii) vesting 50% on grant/50% monthly for 24 months; and (iii) rights of cashless exercise.
The number of options and exercise price shall be adjusted upon the effective date of the Company’s planned 416.7 to one
forward stock split such that the number of options shall be 5,000,000 and the exercise price shall be $.0191984. 

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3.2               
Fringe Benefits.

(a)                
Fringe Benefits. The Employee shall not be eligible to participate in any of
the Company’s benefit plans as are now generally available or later made generally available to senior officers of the Company,
including, without limitation, medical, dental, life, and disability insurance plans, if any.

(b)                
Expense Reimbursement. The Company agrees to reimburse the Employee for all
reasonable, ordinary and necessary travel and entertainment expenses incurred by the Employee in conjunction with Employee’s
services to the Company consistent with the Company’s standard reimbursement policies. The Company shall pay travel costs
incurred by the Employee in conjunction with his or her services to the Company consistent with the Company’s standard travel
policy.

(c)                
Vacation. The Employee shall be entitled, without loss of compensation, to two
(2) weeks of vacation per year. Unused vacation may be accrued by the Employee up to a maximum of four (4) weeks, when it will
cease accruing until the Employee reduces the accrued, unused amount through use of vacation time.

3.3Code Section 409A; Employee Taxes.

 

(a)               
To the extent applicable, this Agreement shall be interpreted in accordance with Section 409A
of the Code (together with Department of Treasury regulations and other official guidance issued thereunder, “Section
409A”). Notwithstanding any provision of this Agreement to the contrary, in the event that the Company determines
in good faith that any compensation or benefits payable under this Agreement may not be either exempt from or compliant with Section
409A, the Company shall consult with Employee and, subject to the written consent of Employee, adopt such amendments to this Agreement
or adopt other policies or procedures (including amendments, policies and procedures with retroactive effect), or take any other
commercially reasonable actions necessary or appropriate to (i) preserve the intended tax treatment of the compensation and benefits
payable hereunder, to preserve the economic benefits of such compensation and benefits, and/or to avoid less favorable accounting
or tax consequences for the Company and/or (ii) to exempt the compensation and benefits payable hereunder from Section 409A or
to comply with the requirements of Section 409A and thereby avoid the application of penalty taxes thereunder; provided,
however, that this Section 3.3(a) does not, and shall not be construed so as to, create any obligation on the part of the
Company to adopt any such amendments, policies or procedures or to take any other such actions or to indemnify Employee for any
failure to do so.

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(b)              
Notwithstanding anything herein to the contrary, Employee acknowledges and agrees that in
the event that any tax is imposed under Section 409A in respect to any compensation or benefits payable to Employee, whether under
this Agreement or otherwise, then (i) the payment of such tax shall be solely Employee’s responsibility, and (ii) neither
the Company, or their subsidiaries or affiliates, nor any of their respective past or present directors, officers, employees or
agents shall have any liability for any such tax. 

(c)Employee shall
be solely responsible for the payment of all state and federal income tax related to his compensation under this Agreement and
the Option Agreement.

4.                  
Proprietary Information. The Employee shall as of the Effective Date or promptly
thereafter execute and deliver to the Company the Company Employee Confidential Information and Inventions Agreement.

5.                  
Miscellaneous.

5.1               
Waiver. The waiver of the breach of any provision of this Agreement shall not
operate or be construed as a waiver of any subsequent breach of the same or other provision hereof.

5.2               
Notices. All notices and other communications under this Agreement shall be
in writing and shall be given by personal or courier delivery, facsimile or first class mail, certified or registered with return
receipt requested, and shall be deemed to have been duly given upon receipt if personally delivered or delivered by courier, on
the date of transmission if transmitted by facsimile, or three days after mailing if mailed, to the addresses of the Company and
the Employee contained in the records of the Company at the time of such notice. Any party may Change such party’s address
for notices by notice duly given pursuant to this Section 5.2.

5.3               
Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of California applicable to contracts entered into and wholly to be performed within the State of California
by California residents.

5.4               
Survival of Obligations. This Agreement shall be binding upon and inure to the
benefit of the executors, administrators, heirs, successors, and assigns of the parties; provided, however, that except as herein
expressly provided, this Agreement shall not be assignable either by the Company (except to an affiliate or successor of the Company)
or by the Employee without the prior written consent of the other party.

5.5               
Counterparts. This Agreement may be executed in one or more counterparts and
delivered by facsimile or PDF/electronic transmission, all of which taken together shall constitute one and the same Agreement.

5.6               
Withholding. All sums payable to the Employee hereunder shall be reduced by
all federal, state, local, and other withholdings and similar taxes and payments required by applicable law.

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5.7               
Enforcement. If any portion of this Agreement is determined to be invalid or
unenforceable, such portion shall be adjusted, rather than voided, to achieve the intent of the parties to the extent possible,
and the remainder shall be enforced to the maximum extent possible.

5.8               
Entire Agreement; Modifications. Except as otherwise provided herein or in the
exhibits hereto, this Agreement represents the entire understanding among the parties with respect to the subject matter of this
Agreement, and this Agreement supersedes any and all prior and contemporaneous understandings, agreements, plans, and negotiations,
whether written or oral, with respect to the subject matter hereof. All modifications to the Agreement must be in writing and signed
by each of the parties hereto.

IN WITNESS WHEREOF, the
parties hereto have executed this Employment Agreement as of the date set forth in the first paragraph.

 

RICH PHARMACUETICALS, INC.

 

By:
/s/ David Chou

David
Chou, a Director

 

EMPLOYEE

 

/s/
Ben Chang

Ben Chang

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