Document:

Exhibit 10.1

 

Execution Copy

 

CONSULTING AGREEMENT

 

THIS CONSULTING AGREEMENT
(this “Agreement”), made and entered into as of the 28th day of
April, 2003 (the “Effective Date”) by and between Penn Treaty American
Corporation, a Pennsylvania Corporation (the “Company”) and Irving Levit
(“Executive”).

 

WHEREAS, the
Executive has served as the Chief Executive Officer and Chairman of the Board
of Directors of the Company and its subsidiaries;

 

WHEREAS, the
Executive desires to retire from such positions; and

 

WHEREAS, in
connection with that retirement and in recognition of the Executive’s
substantial contributions to the Company, the Company has agreed to provide
certain retirement benefits to Executive; and

 

WHEREAS, the Company
would like to engage Executive as a consultant so as to retain the benefit of
the extensive knowledge and experience of Executive.

 

NOW THEREFORE, in
consideration of the promises and mutual covenants contained herein, and each
intending to be legally bound hereby, the parties agree as follows:

 

1.                                       Resignation
of Employment.  Executive (a) hereby
resigns as an employee, officer and director of any subsidiary of the Company,
effective as of the Effective Date, and (b) will resign as the Company’s
Chairman, Chief Executive Officer and as an employee of the Company, effective
as of the close of the Company’s 2003 annual meeting (the “Resignation Date”).

 

2.                                       Board
Service.  Executive will continue to
serve as a member of the Company’s Board of Directors (a “Director”), will be
designated as the “Founding Chairman” and will be entitled to retain that title
for the remainder of his life.  In
consideration for his continued service as a Director following the Resignation
Date, Executive will be entitled to receive the same compensation that other
non-employee members of the Board receive for their service as Directors (and
for their service as a member of any committee of the Board of Directors on
which Executive may serve from time to time). 
For so long as Executive desires to stand for re-election to the
Company’s Board of Directors, the Company will utilize its best efforts to take
or cause to be taken all actions necessary or desirable to nominate Executive
for election as a Director and to recommend Executive’s candidacy for election
as a Director to the Company’s shareholders.

 

3.                                       Consulting.

 

(a)                                  Engagement.  Subject to the terms of this paragraph, the
Company hereby engages Executive as a consultant to perform the services set
forth on Exhibit A hereto at the request of the Company’s Board of
Directors; provided, however, that in performing
such services, Executive will not be requested or expected to expand the work
schedule adopted by him over the last two years.  Subject to the terms of paragraphs 4 and 6(b) below, the duration
of this consulting engagement will be the two (2) year period beginning on the
Resignation Date.

 

 

Executive hereby accepts such engagement,
agrees to perform faithfully, diligently and to the best of his ability and
agrees to cooperate fully with the Company’s Board of Directors, officers and
employees in the course of such engagement. 
For the full duration of Executive’s consulting engagement, the Company
will provide the Executive with administrative support reasonably necessary to
fulfill his responsibilities and with continued use of his existing office at
the Company’s headquarters.

 

(b)                                 Compensation.  The Company agrees to pay Executive, and
Executive agrees to accept from the Company, in full payment for Executive’s
services as a consultant hereunder, an annual retainer of $100,000, payable in
equal month installments beginning on the Resignation Date and continuing until
the end of the consulting engagement.

 

(c)                                  Expenses.  The Company agrees to reimburse Executive
for his out-of-pocket expenses as may be determined and approved by the
Executive Committee to be reasonably
necessary in connection with services rendered by Executive pursuant to this
paragraph.

 

4.                                       Termination.

 

(a)                                  By
Death. If Executive dies, his consulting engagement hereunder shall terminate
without notice on the date of his death.

 

(b)                                 By
Executive. The Executive may terminate his consulting engagement upon
thirty (30) days advance written notice to the Company.

 

(c)                                  Effect
of Termination.  If Executive’s
consulting engagement terminates, the Company shall have no further obligation
under paragraph 3 except to pay Executive an amount equal to the portion of his
compensation and out-of-pocket business expenses as described in paragraph 3 as
may be accrued and unpaid on the date of such termination; provided,
however, that except as otherwise provided in this paragraph 4,
Executive’s consulting engagement may not be terminated for any reason.

 

5.                                       Retirement
Benefits.

 

(a)                                  Monthly
Payments.  The Company will pay to
Executive (and, if Executive pre-deceases his spouse, to his spouse) a
retirement benefit of $100,000 per year. 
Such retirement benefit will be payable in monthly installments of
$8,333 each on the first day of each calendar month beginning on or after the
Resignation Date.  Such monthly payments
will continue until the later of the death of Executive or his spouse.

 

(b)                                 Health
and Welfare Benefits.  Until the
later of the death of Executive or the death of his spouse, the Company will
continue to provide Executive and his spouse with benefits under the Company’s
health and other welfare benefit plans substantially identical to those
provided from time to time to the Company’s then current executives and their
spouses.  Life insurance benefits provided
under the Company’s plans, if calculated as a function of an employee’s
compensation, will be provided under this paragraph based on Executive’s rate
of compensation in effect on the Effective Date.

 

2

 

(c)                                  Nature
of Arrangement.  The payments
described in paragraph 5(a) are an unfunded arrangement and will be paid from
the general assets of the Company.  Such
payments will be subject to tax withholding in accordance with applicable
federal, state and local laws and will supplement (not supersede, modify or
offset) any other benefits otherwise due to Executive.

 

(d)                                 No
Alienation of Benefits.  Executive
will not assign, transfer or pledge the amounts payable under paragraph
5(a).  No part of such amounts will,
prior to actual payment, be subject to any claims of creditors and, in
particular, they will not be subject to attachment, garnishment, seizure,
offset or sequestration by any creditor.

 

6.                                       Effect
of Change of Control.

 

(a)                                  Payment
of Retirement Benefit.  Immediately
upon the occurrence of a Change of Control (as defined in below), the Company
will make a single sum cash payment to Executive equal to the actuarial present
value of the remaining payments described in paragraph 5(a).  Such payment will constitute a complete
discharge of the Company’s obligations under paragraph 5(a) of this
Agreement.  For this purpose (i)
actuarial present value will be determined using mortality factors and interest
rates that would then be applicable to calculate lump sum present values under
Section 417(e) of the Internal Revenue Code, and (ii) the time for determining
the interest rate will be the calendar month preceding the Change of
Control.  As used herein, “Change of
Control” will have the same meaning as defined in that certain Change of
Control Employment Agreement between Executive and the Company dated as of
February 13, 2001 (the “CoC Agreement”).

 

(b)                                 Termination
of Consulting Engagement.  If a
Change of Control occurs during Executive’s engagement as a consultant
hereunder, such consulting engagement will then terminate automatically.  Upon such termination, Executive will
receive an immediate lump sum cash payment equal to the amount that would have
been payable to him under Section 6.04(a)(i) of the CoC Agreement if: (i) he
had been employed by the Company at the time of the Change of Control at a base
salary equal to the amount set forth in paragraph 3(b) hereof, and (ii) his
remaining period of employment had been determined under Section 2.01 of the
CoC Agreement.

 

7.                                       Cooperation
and Participation in Litigation. 
During Executive’s consulting engagement hereunder and following the
termination of that engagement, Executive will cooperate with reasonable
requests of the Company to participate in the preparation for, response to,
prosecution of and/or defense of any pending, actual or threatened litigation
involving the Company. The Company will reimburse Executive for all reasonable
expenses incurred by Executive as a result of such cooperation, will provide
reasonable advance notice of any need for Executive’s assistance under this
paragraph and will exercise its best efforts to prevent Executive’s obligations
under this paragraph from interfering with his other personal and professional
obligations.

 

8.                                       Indemnification.  The Company will indemnify and defend
Executive for acts performed (or omissions made) in his capacity as a director,
officer, consultant or employee of the Company and any of its subsidiaries
(without regard to whether such acts or omissions

 

3

 

occurred before or after the Resignation
Date) to the same extent as provided to active directors and officers and will
maintain insurance to fund this indemnity for so long as directors’ and
officers’ insurance is maintained for active directors or officers of the
Company.

 

9.                                       Assignment.  Neither the Company nor Executive shall have
the right to assign this Agreement or any obligation hereunder without the
written consent of the other, except that in connection with the merger, consolidation
or liquidation of the Company or in connection with the sale or transfer of all
or substantially all of the assets of the Company, this Agreement will inure to
the benefit of and be binding on the successor to the Company without the
consent of Executive, as though such successor had been named as a party to and
had actually executed this Agreement.

 

10.                                 Indulgences.  The failure of the Company at any time or
times to enforce its rights under this Agreement strictly in accordance with
the same shall not be construed as having created a custom in any way or manner
contrary to the specific provisions of this Agreement or as having in any way
or manner modified or waived the same.

 

11.                                 Paragraph
Headings.  The paragraph headings in
this Agreement are for convenience only. They form no part of this Agreement
and shall not affect its interpretation.

 

12.                                 Notices.  Any notice required or permitted to be given
by this Agreement shall be in writing and shall be sufficiently given to the
parties if hand delivered or sent by overnight delivery, facsimile (with
confirmation of receipt) or United States certified or registered mail, return
receipt requested, postage prepaid, addressed to the respective parties at the
following addresses or at such other addresses as may from time to time be
designated in writing by the parties:

 

	
  If to the Executive:

  	
   

  	
  If to the Company:

  
	
   

  	
   

  	
   

  
	
  Mr. Irving Levit

  	
   

  	
  Penn Treaty American Corporation

  
	
  36 White Pine Road

  	
   

  	
  3440 Lehigh Street

  
	
  Columbus, New Jersey 08022

  	
   

  	
  Allentown, PA 18103

  
	
  AND

  	
   

  	
  Attn: Chief Executive Officer

  
	
  2565 Gracie Lone

  	
   

  	
   

  
	
  Macungie, PA 18062

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  With a copy to:

  
	
   

  	
   

  	
   

  
	
  Barry M. Abelson, Esquire

  	
   

  	
  Justin P. Klein, Esquire

  
	
  Pepper Hamilton, LLP

  	
   

  	
  Ballard Spahr Andrews & Ingersoll, LLP

  
	
  3000 Two Logan Square

  	
   

  	
  1735 Market Street, 51st Floor

  
	
  Philadelphia, PA 19103

  	
   

  	
  Philadelphia, PA 19103

  

 

13.                                 Entire
Agreement.  This Agreement sets
forth the entire agreement between the parties with respect to the matters
covered herein, and supersedes all other

 

4

 

agreements regarding the matters covered
herein. No waiver or amendment to this Agreement shall be effective unless
reduced to writing and executed by the parties hereto.

 

14.                                 Legal
Fees.

 

(a)                                  Preparation
of Agreement.  The Company will
reimburse Executive for reasonable legal fees incurred in connection with the
cessation of his employment and the negotiation and documentation of this
Agreement.

 

(b)                                 Enforcement
of Agreement.  The Company will
reimburse Executive for all reasonable legal fees and costs incurred by him in
the course of enforcing his rights under this Agreement, plus interest at the
prime rate plus one percent, if Executive is awarded any relief whatsoever
(legal, equitable or otherwise), if the Company voluntarily capitulates to any
claim (whether before or after any formal action is commenced) or if the
Company otherwise enters into a settlement of such matter.

 

15.                                 Controlling
Law.  This Agreement shall be
executed in the Commonwealth of Pennsylvania and shall be construed and applied
in accordance with the laws of Pennsylvania, without giving effect to the
principles of conflicts of law under Pennsylvania law.

 

16.                                 Understanding
of Executive.  Executive agrees and
acknowledges that he has read this Agreement in its entirety and that he
understands it and enters into it voluntarily.

 

IN WITNESS
WHEREOF, this Agreement has been duly executed by and on behalf of the parties
hereto as a sealed instrument as of the day and year first above written.

 

 

	
   

  	
  PENN TREATY AMERICAN CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William W. Hunt

  	
  (SEAL)

  
	
   

  	
   

  	
  Name: William W. Hunt

  
	
   

  	
   

  	
  Title: Pres. and COO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Irving Levit

  	
  (SEAL)

  
	
   

  	
  Irving Levit

  
					

 

5

 

EXHIBIT A

 

SCOPE
OF CONSULTING ENGAGEMENT

 

Executive, with his extensive experience, expertise and industry
knowledge, will be available to engage in the following activities:

 

•                                          Actively
utilize contacts and personal relationships in the insurance broker community
to promote the Company and its products.

 

•                                          Leverage
professional relationships to gather feedback from brokers on how the Company
can improve its service and support brokers and agents.

 

•                                          Provide
Senior Management with advice on how current products might be more effectively
packaged and sold.

 

•                                          Participate
in selected sales and account management meetings, industry conferences and
investor presentations.

 

•                                          Participate
as a member of the Company’s Product Development Committee and contribute his
ideas for innovative new products in long-term care and complementary product
lines.

 

•                                          Identify
product and distribution opportunities for the Company.

 

•                                          Assist
the Board of Directors in its oversight of the Company and the evaluation and
review of Senior Management performance.

 

6Exhibit 4.1

                    2003 CONSULTANT SERVICES AGREEMENT

         THIS IS A 2003 CONSULTANT SERVICES AGREEMENT (the "Agreement") is
made as of the 22nd day of April, 2003 between SeaView Video Technology, Inc. a
Nevada Corporation (the "Company"), for the Consultant listed below (the
"Consultant").

                                 R E C I T A L S

         WHEREAS, the Company wishes to grant, and the Consultant wishes to
receive, as compensation for services provided to the Company, an aggregate of
600,000 shares of the common stock of the Company, par value $.001 per share
(the "Common Stock"), pursuant to the provisions set forth herein;

         NOW, THEREFORE, in consideration of the mutual promises, covenants,
terms and conditions herein, and other good and valuable considerations, the
receipt and sufficiency of which are hereby acknowledged by the parties, the
parties agree as follows:

1.       Grant of Share. The Company hereby grants to the Consultant the following
         shares of Common Stock ( the "Shares") in the Company.

          Name                     # of Shares                 Service Type
  Charles Abraham                     3,000,000             Research & Development
                                                            Consulting Services

2.        Services. Consultant has been engaged by the Company to perform
          consulting services and the Company acknowledges that the services to
          be rendered hereby are not in connection with the offer or sale of
          securities in a capital raising transaction and do not directly or
          indirectly promote or maintain a market for the securities of the Company.

3.        Compensation. Consultant's compensation is the Shares identified herein.
          The parties agree the value of the Shares will be calculated based on
          the average price as quoted on the OTCBB. Consultant is responsible
          for all income taxes.

4.        Registration or Exemption. Notwithstanding anything to the contrary
          contained herein, the shares will be registered on Form S-8
          Registration Statement dated May 19, 2003 and all subsequent
          amendments thereto.

5.       Delivery of Shares. The Company shall deliver to the Consultant the
         shares representing the total number granted under number one (1)
         above, providing that the Consultant meets the appropriate deadlines
         and milestones associated with the specific research & development
         services provided, as defined by the Company and its officers. Upon the
         registration of the shares as outlined in number four (4) above,
         200,000 shares will be issued to begin the first phase of the services
         to be provided. Subsequent issuances of shares, up to the total amount
         outlined in number one (1) above, will be issued at the Company's
         discretion, based on performance, as defined by the Company, over a
         period not to exceed one year.

                                      1

6.       Waiver. No waiver is enforceable unless in writing and signed by the
         waiving party, and any waiver shall not be construed as a waiver by any
         other party or of any other or subsequent breach.

7.       Amendments. This Agreement may not be amended unless by the mutual
         consent of all the parties hereto in writing.

8.       Governing Law. This Agreement shall be governed by the laws of the State
         of Florida, and the sole venue for any action arising hereunder shall
         be Pinellas County, Florida.

9.       Assignment and Binding Effect. Neither this Agreement nor any of the
         rights, interests or obligations hereunder shall be assigned by any
         party hereto without the prior written consent of the other parties
         hereto, except as otherwise provided herein. This Agreement shall be
         binding upon and for the benefit of the parties hereto and their
         respective heirs, permitted successors, assigns and/or delegates.

10.      Integration and Captions. This Agreement includes the entire
         understanding of the parties hereto with respect to the subject matter
         hereof. The captions herein are for convenience and shall not control
         the interpretation of this Agreement.

11.      Legal Representation. Each party has been represented by independent
         legal counsel in connection with this Agreement, or each has had the
         opportunity to obtain independent legal counsel and has waived such
         right, and no tax advice has been provided to any party.

12.      Construction. Each party acknowledges and agrees having had the
         opportunity to review, negotiate and approve all of the provisions of
         this Agreement

13.      Cooperation. The parties agree to execute such reasonable necessary
         documents upon advice of legal counsel in order to carry out the intent
         and purpose of this Agreement as set forth herein above.

14.      Fees, Costs and Expenses. Each of the parties hereto acknowledges and
         agrees to pay, without reimbursement from the other party(ies), the
         fees, costs, expenses incurred by each such party incident to this
         Agreement.

15.      Consents and Authorizations. By the execution herein below, each party
         acknowledges and agrees that each such party has the full right, power,
         legal capacity and authority to enter into this Agreement, and the same
         constitutes a valid and legally binding Agreement of each such party in
         accordance with the terms, conditions and other provisions contained
         herein.

16.      Severability. In the event anyone or more of the provisions of this
         Agreement shall be deemed unenforceable by any court of competent
         jurisdiction for any reason whatsoever, this Agreement shall be
         construed as if such unenforceable provision had never been contained
         herein.

17.      Counterparts. This Agreement may be executed in counterparts.

18.      Facsimile. This Agreement may be executed by facsimile.

SeaView Video Technology, Inc.                                CONSULTANT

____________________________________                 __________________________
George S. Bernardich, III                                   Charles Abraham
President/CEO

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