CONSULTANT AGREEMENT This CONSULTANT AGREEMENT (this “Agreement”) is entered into as of _November 9 2009_ by and between ZAGAT SURVEY, LLC (“Company”) with offices at 4 Columbus Circle, New York, New York 10019 and _Tree House Interactive Agency, Inc., with offices at _7 Miller Drive, Metuchen, New Jersey_ (“Consultant”). RECITALS WHEREAS, Company wishes to engage Consultant on the terms and conditions set forth herein and Consultant wishes to provide such services on such terms. NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, Company and Consultant hereby agree as follows: 1.
SERVICES
1.1 Consultant agrees to perform the services as described on Exhibit A (as may be amended in writing by the parties from time to time), (the results of such services being hereinafter referred to as the “Work Product”). The consultants providing services under this Agreement shall be _Raheem Insari and Marianna Petrovich_. If _ Raheem Insari and Marianna Petrovich_are not able to act for the Consultant under this Agreement, the Company may terminate this Agreement at any time, immediately upon notice to Consultant, without penalty. 1.2 Upon the expiration or termination of this Agreement for any reason, Consultant shall immediately deliver to Company all originals and copies of the then existing Work Product, including all work in progress hereunder in Consultant’s possession or control; provided that, Consultant shall only be obligated to deliver such portions of the Work Product for which Company has paid pursuant to the terms hereof. 1.3 Consultant shall provide Company with weekly status reports, setting forth the status of work completed to date. Without limitation of the foregoing, upon the termination of this Agreement, Consultant shall deliver to Company all files relating to the Work Product (except that Consultant may retain a copy of such files for its records). 2.
CONSIDERATION
Provided that Consultant is not in a breach of this Agreement, Company shall make the payments to Consultant on a time and materials basis as set forth in Exhibit B within thirty (30) days of receipt of Consultant’s applicable invoices; provided that, Consultant shall not charge Company for any materials without Company’s prior written consent. Consultant shall submit invoices to Company every two weeks. Company shall have no obligation with respect to Consultant’s services hereunder in
2 excess of the Maximum Fee set forth in Exhibit B, unless the parties mutually agree otherwise in writing. Company understands and acknowledges that Consultant shall only be required to perform up to 120 hours of services as set forth in Exhibit B, and that Consultant cannot guarantee that all remediation and other requested work will be completed within such limited amount of hours and that in order to complete remediation, additional time and costs in excess of what is set forth on Exhibit B may be required. The parties acknowledge and agree that Consultant shall not exceed the Maximum Fee or perform services in excess of 120 hours without the express written approval of Company. Consultant shall notify Company as soon as Consultant becomes aware that it may be necessary to increase the charges estimated herein in order to complete the remediation. 3.
PROPRIETARY RIGHTS
3.1 The Work Product is produced, specially ordered and commissioned at Company’s request and direction, shall be considered a workmadeforhire for Company and is the sole and exclusive property of Company for any and all purposes; provided that, Consultant shall retain ownership over any Work Product for which Company fails to pay amounts due. Company shall be deemed the creator and author of the Work Product and shall exclusively own all right, title and interest in the Work Product, and derivative works thereof, including without limitation, all intellectual property rights therein, for the duration of the rights in each country, in all languages, throughout the World. Consultant hereby makes a full, irrevocable assignment of all right, title and interest in the Work Product and derivative works, including without limitation, all intellectual property rights, in each country, in all languages, throughout the world. Consultant acknowledges that there are, and may be, future rights that Consultant may otherwise become entitled to with respect to the Work Product or any derivative work that do not yet exist; the parties specifically intend the foregoing full, irrevocable and perpetual assignment of rights to Company to include all now known and unknown technology, uses, media, modes of transmission, means and forms of exploitation, distribution, dissemination, exhibition or performance throughout the universe. In the event Consultant has any intellectual property rights in and to the Work Product or any derivative work that cannot be assigned to Company as provided above, Consultant hereby grants to Company an irrevocable, exclusive, worldwide, royaltyfree license in perpetuity to exercise all intellectual property rights in and to the foregoing. Consultant further acknowledges and agrees that it does not now have, and will not by virtue of this Agreement acquire, any proprietary rights in or to the Company’s existing web site (the “Site”). 3.2 Consultant shall, and shall cause every party acting under it in relation to this Agreement, to execute any and all documents and do such other acts as are reasonably requested by Company as may be required to evidence, and/or further effectuate the rights granted Company under this Section 3. In the event Consultant fails to execute and deliver any such documents and instruments promptly upon Company’s request, Company is hereby authorized and appointed attorneyinfact of and for Consultant to make, execute and deliver any and all such documents and instruments, it being understood that such power is coupled with an interest and is irrevocable.
3 The Work Product shall be created and developed solely by the Consultant who hereby agrees (a) that all works created by such employee or subcontractor are worksmadeforhire; (b) to a full assignment of all rights to Company; and (c) to immediately deliver to Company, upon the termination of expiration of this Agreement for any reason or upon the request of Company, all originals and copies of the Work Product and all work in progress hereunder in Consultant’s possession or control, including any and all such items that such employee may have in electronic files; provided that, Consultant shall only be obligated to deliver such portions of the Work Product for which Company has paid pursuant to the terms hereof. Any act or failure to act by any employee of Consultant shall be deemed an act or failure to act by Consultant, and Consultant shall remain in all respects fully, directly and solely responsible for all work performed by any employee Notwithstanding the foregoing, it is express acknowledged anda greed that Consultant provides similar services to other parties and that the results and proceeds of Consultant’s services for Company may be similar to the results and proceeds of Consultant’s services to other third parties. Nothing herein shall be deemed to prevent Consultant from providing such similar services or freely utilizing or disclosing similar materials to any third parties including but not limited to designs, graphics, text and software for other third parties. Company acknowledges and agrees that it shall not prohibit or attempt to prohibit or obstruct the exploitation of Consultant’s services for any other third parties. 4. PUBLICITY. Company shall work with Consultant in its promotional efforts and with respect to publicity of its development efforts; provided that, Consultant shall obtain Zagat’s prior written approval before issuing any publicity regarding, or making any public statements concerning, Company, the Site, this Agreement or Consultant’s services hereunder, which approval may be granted or withheld in Company’s sole discretion. [ZAGAT IS COMFORTABLE WITH USE OF THE NAME ON THE WEBSITE – WE WILL JUST NEED TO APPROVE THE USES BEFOREHAND] 5.
CONFIDENTIAL INFORMATION
5.1 Confidential Information Defined. Consultant may, during the performance of its services hereunder, have access to and acquire knowledge from material, data, systems and other information concerning the operation, business, financial affairs, products, customers, intellectual property rights or other aspects of Company that may not be known to the general public (“Confidential Information”). “Confidential Information” also includes (a) the terms of this Agreement, and (b) any information or materials that Company obtains from any third party that Company treats as proprietary or designates as Confidential Information, whether or not owned by Company. “Confidential Information” does not include information that Consultant can document in reasonable detail to Company’s satisfaction: (i) is known by Consultant at the time of receipt from Company and is not subject to any other nondisclosure agreement between the parties; (ii) is now, or hereafter becomes, generally known to the industry through no fault of Consultant; or (iii) is otherwise lawfully and independently
4 developed by Consultant, or lawfully acquired from a third party without any obligation of confidentiality. 5.2 No Disclosure. Except for disclosures made to employees, agents, contractors, or consultants with a need to know Confidential Information for the purposes of performing the services to be rendered hereunder, Consultant shall not use, publish or divulge any Confidential Information to any third party without Company’s prior express written approval, which Company may withhold in its sole discretion. Consultant shall inform its employees, agents, subcontractors and every other party it employs in connection with its services hereunder (collectively, the “Representatives”) of the existence of this confidentiality agreement, and shall obtain their agreement to be bound hereby. . Consultant shall be responsible for any breach of this provision by any of its Representatives. Upon the termination or expiration of this Agreement or upon Company’s request, Consultant shall upon request immediately return all Confidential Information to Company. 5.3 No Confidential Information of Other Parties. Consultant represents and warrants that it shall not use in the course of its performance hereunder, and shall not disclose to Company, any confidential information of any third party (including competitors of Company or Consultant) unless Consultant is expressly authorized in writing by such third party to do so.
6. REPRESENTATIONS, WARRANTIES, LIMITATIONS AND INDEMNIFICATION 6.1 Consultant represents and warrants that (a) it has the right, power and authority to enter into this Agreement and to fully perform its obligations hereunder; (b) the making of this Agreement does not violate any agreement existing between it and any other party; (c) Consultant owns or shall acquire all rights necessary for the production, distribution, exhibition and exploitation of the Work Product, and derivative works in perpetuity in all media throughout the world, and (d) Consultant has not incorporated any third party materials into the Work Product such that a license from a third party would be required. 6.2 Consultant warrants that (a) all Work Product is delivered free and clear of any liens, charges, encumbrances or restrictions, including those of Consultant’s suppliers. Consultant shall exercise due professional care and competence in the performance of the services to be rendered hereunder and shall faithfully, diligently and competently perform such services in a workmanlike manner in accordance with industry standards and practice. 6.3 Consultant shall indemnify, defend and hold harmless Company and its directors, officers, agents and employees and their successors and assigns from and against any and all third party claims, demands, actions, damages, losses, expenses (including outside attorneys’ fees) arising from: (i) any breach of any representations,
5 warranties or agreements made by it under this Agreement; or (ii) its activities hereunder. Company shall promptly notify Consultant of any such claim but failure to so notify Consultant shall not affect Consultant’s obligations unless Consultant is prejudiced thereby. 6.4 Consultant shall bear full responsibility for the defense of any such third party claim (including any settlements), with counsel reasonably satisfactory to Company; provided, however, that (i) Consultant shall keep Company informed of, and consult with Company in connection with the progress of, such litigation or settlement; and (ii) Consultant shall not have any right, without Company’s written consent, to settle any such claim if such settlement arises from or is part of any criminal action, suit or proceeding or contains a stipulation to or admission or acknowledgment of, any liability or wrongdoing (whether in contract, tort or otherwise) on the part of Company or would adversely effect Company’s intellectual property rights or any other rights. Without limiting Consultant’s obligations under Section 6.3 and notwithstanding any of the foregoing, Company shall have the right, in its sole discretion and at its sole expense, to employ attorneys of its own choice and to institute or defend any claim, action or proceeding and to take other appropriate steps to protect all rights, title and interest in the Work Product and every element thereof. 6.5 Company represents and warrants that (a) it has the right, power and authority to enter into this Agreement and to fully perform its obligations under this Agreement and (b) the making of this Agreement does not violate any agreement existing between it and any other party. 6.6 Company agrees to, and shall, indemnify, defend and hold harmless Consultant, and its successors and assigns from and against any and all third party claims, demands, actions, damages, losses, expenses (including outside attorneys’ fees) arising from (i) a breach of any representations, warranties or agreements set forth in this Agreement, or (ii) in connection with any event or occurrence related to Consultant’s position as an agent of the Cmpany (or any subsidiary or affiliate) or any action taken or omitted to be taken by Consultatn or its personnel in the course of providing management services with respect to the Company’s employees or independent contractors, except to the extent that such acts or omissions were the result of bad faith, active and deliberate dishonesty or gross negligence.. Consultant shall promptly notify Company of any such claim, and Company shall bear full responsibility for the defense of such claim (including any settlements). 6.7 EXCEPT FOR INDEMNIFIED DAMAGES AS PROVIDED IN THIS ARTICLE 6, IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER UNDER OR IN CONNECTION WITH THIS AGREEMENT FOR ANY LOSS OF PROFIT OR ANY INCIDENTAL, CONSEQUENTIAL, SPECIAL, EXEMPLARY, PUNITIVE OR OTHER INDIRECT DAMAGES OF ANY NATURE, FOR ANY REASON, INCLUDING WITHOUT LIMITATION THE BREACH OF THIS AGREEMENT OR ANY EXPIRATION OR TERMINATION OF THIS AGREEMENT, WHETHER SUCH LIABILITY IS ASSERTED ON THE BASIS OF CONTRACT, TORT (INCLUDING NEGLIGENCE OR STRICT LIABILITY) OR OTHERWISE,
6 EVEN IF SUCH PARTY HAS BEEN WARNED OF THE POSSIBILITY OF SUCH DAMAGES. EXCEPT WITH RESPECT TO CLAIMS BROUGHT BY THIRD PARTIES AGAINST COMPANY, CONSULTANT OR OTHERWISE, IN NO EVENT SHALL THE LIABILITY OF CONSULTANT HEREUNDER EXCEED THE AGGREGATE AMOUNT ACTUALLY PAID BY COMPANY TO CONSULTANT HEREUNDER. 7.
TERMINATION
7.1 In addition to Company’s right to terminate pursuant to Section 1.1, Company may terminate this Agreement at any time, with or without cause, upon two (2) weeks prior written notice. 7.2 Either party may terminate this Agreement upon written notice if the other party fails to cure a material breach within thirty (30) days of receipt of written notice of such breach; provided that the notice and cure period for Company’s failure to pay any amounts due hereunder shall be fourteen (14) days. 7.3 The obligations in this Agreement which are intended by their terms to survive the expiration or termination of this Agreement shall so survive. Without limiting the generality of the foregoing, Sections 3, 58 shall survive the expiration or termination of this Agreement for any reason. Termination of this Agreement shall not relieve Company of its obligation to pay Consultant for any agreedupon work performed prior to termination. Notwithstanding the foregoing, in the event that this Agreement is terminated by Consultant pursuant to Section 7.2 hereof, Section 5.4 shall have no further force or effect.
8.
GENERAL PROVISIONS 8.1
Communications. Consultant shall provide the weekly written status.
8.2 Independent Contractor; No Agency. Consultant is an independent contractor. Nothing herein shall be construed to constitute the parties as principal and agent, employer and employee, partners or joint venturers, nor shall any similar relationship be deemed to exist between the parties. Neither party shall have any power to obligate or bind the other party. 8.3 Notices. All notices which either party is required or may desire to serve upon the other party shall be in writing and addressed to the address specified at the beginning of this Agreement (or such other address as either party may specify in writing). All notices to the Company shall be to the attention of Nina S. Zagat; all notices to Consultant shall be to the attention of _Michael Caccavano_. All notices permitted or required under this Agreement shall be by personal delivery, overnight courier or by certified or registered mail, return receipt requested, and shall be deemed given upon the earlier of actual receipt or five (5) days after deposit in the mail
7 8.4 Entire Agreement. This Agreement, together with the Exhibits attached hereto and hereby incorporated herein by reference, constitutes the complete, final and exclusive agreement between the parties with respect to the subject matter hereof, and supersedes any and all prior or contemporaneous oral or written representation, understanding, agreement or communication between them concerning the subject matter hereof. Neither party is relying upon any warranties, representations, assurances or inducements not expressly set forth herein. 8.5 Amendments. All amendments to this Agreement shall be binding upon the parties so long as the same shall be in writing and executed by both parties. 8.6 Waiver. No waiver of any provision of this Agreement or any rights or obligations hereunder shall be effective, except pursuant to a written instrument signed by the party waiving compliance. 8.7 Cumulative Remedies. Except as may be specifically set forth in this Agreement, the rights and remedies of the parties set forth in this Agreement are not exclusive and are in addition to any other rights and remedies provided hereunder or by law. 8.8 Force Majeure. Neither party shall be deemed in default hereunder for any cessation, interruption or delay in the performance of its obligations due to causes beyond its reasonable control, including but not limited to: earthquake, flood, or other natural disaster, act of God, labor controversy, civil disturbance or war; provided that the party relying upon this Section 8.8 shall have given the other party written notice thereof promptly and, in any event, within five (5) days of discovery thereof, and (b) shall take all steps reasonably necessary to mitigate the effects of the force majeure upon which such notice is based; provided further, that in the event a force majeure described in this Section 8.8 extends for a period in excess of thirty (30) days, either party may immediately terminate this Agreement without penalty. 8.9 Assignment. This Agreement and Consultant’s rights, duties and obligations hereunder are personal to Consultant and may not be assigned, delegated or otherwise transferred by Consultant, or by operation of law, without Company’s prior written consent, which consent may be granted or withheld in Company’s sole discretion. Any attempted assignment, delegation or transfer by Consultant without such consent shall be void and shall constitute a material breach of this Agreement. Company may assign its rights, duties and obligations hereunder to any parent, subsidiary, related or affiliated companies or to any purchaser of or successor to all or substantially all of the assets or the business of Company or to any entity with which Company is merged or consolidated or to any successor owner of the Site. 8.10 Construction; Severability. This Agreement shall be fairly interpreted and construed in accordance with its terms without strict interpretation or construction in favor of or against either party. Consultant has had the opportunity to consult with counsel in the negotiation of this Agreement. If any restriction, covenant or provision of this Agreement shall be adjudged by a court of competent jurisdiction to be void, such
8 restriction, covenant or provision shall apply with such modifications as may be necessary to make it valid and effective and the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired. 8.11 Governing Law, Forum and Jurisdiction. This Agreement shall be governed by the laws of the State of New York applicable to contracts entered into and to be performed entirely within the State of New York. Company and Consultant agree that any action at law or in equity arising out of or relating to this Agreement shall be filed only in the state or federal courts located in the County of New York. The parties consent and submit to the personal jurisdiction of such courts for the purposes of litigating any such action. IN WITNESS WHEREOF, the duly authorized representatives of each of the parties hereto have executed this Agreement as of the day and year first written above. ZAGAT SURVEY, LLC
CONSULTANT
By: _________________________ Name: Nina S. Zagat Title: CoChair & CoFounder
By: _________________________ Name: Michael Caccavano Title: CEO + Founder
9 EXHIBIT A SCOPE OF WORK SITE PERFORMANCE AND REMEDIATION PROJECT Zagat would like to improve the current performance of Zagat.com. We believe that Zagat.com is not performing as well as it could and we are looking to identify important pages or user paths with the poorest performance, identify the causes of the poor performance, and address the problems through code improvement or feasible architecture changes. The project would include two phases: Diagnosis Diagnosis of the performance of Zagat.com resulting in documentation identifying performancechallenged pages and user paths along with a general approach to troubleshooting their causes. This phase would require the services of one person for no more than forty (40) hours, which such services shall be performed over up to three (3) consecutive weeks. Remediation Remediation of some of the identified poor performers. This phase would begin with more specifically identifying the most likely areas that need work. This phase would entail up to two persons providing up to a cumulative amount of eighty (80) hours over up to four (4) consecutive weeks with most of the focus being on identifying the specific problems and, when possible, working on specific coding tasks with internal resources to address. Consultant shall provide documentation of specific problems, and work on improving code(s) for performance increases. If this project goes well it may lead to additional projects with Zagat.
EXHIBIT B The budget and timing for this engagement is estimated to be as follows: Estimated Project Duration: Maximum Fee: Deposit Due Before Start Date: Technical Lead:
1 – 2 months $15,000 $5,000 Raheem Insari
Item
Description
Rate
Hrs
Total
Service
Diagnosis
$125
40
$5,000
10 Service
Remediation
$125
80
$10,000
Total
$15,000