EXECUTIVE EMPLOYMENT AGREEMENT
THIS AGREEMENT is made and entered into this _____ day of
__________, 2001, by and between Legend Motors Worldwide, Inc., a
Nevada Corporation, (hereinafter referred to as the "Corporation")
and Xxxx Xxxxxxxx of LaGrange, Indiana, (hereinafter referred to as
the "Executive").
WHEREAS, the Corporation desires to assure themselves the
services of the Executive in an executive capacity for sixty (60)
months on the terms and conditions set forth herein; and
WHEREAS, the Executive is agreeable to continue in an executive
capacity for said sixty (60) months and is willing to accept and
undertake such employment.
NOW, THEREFORE, IN CONSIDERATION OF THE PROMISES AND MUTUAL
COVENANTS HEREIN SET FORTH, THE CORPORATION AND THE EXECUTIVE AGREE
AS FOLLOWS:
1. EMPLOYMENT. The Corporation agrees to and does hereby
employ the Executive and the Executive agrees to and does hereby
accept employment by the Corporation, in the capacity of President,
and member of the Board of Directors, for a period of sixty (60)
months commencing the 3rd day of April, 2005 to the 3rd day ofApril,
2010.
2. SCOPE OF SERVICES. The Executive shall serve as
President, C.E.O and a member of the Board of Directors of the
Corporation. As such, the Executive shall be in full charge of the
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operations of the Corporation or Corporation's business affairs,
subject to the directions of the Board of Directors.
3. FULL-TIME SERVICES. The Executive agrees that during
the term of his employment he will (subject to the provisions of
Section 6 hereof), devote substantially all of his time and
energies, during business hours, to the supervision, management, and
conduct of the business affairs of the Corporation. The Executive
will faithfully and to the best of his ability, discharge his duties
hereunder to the furtherance of the interests of the Corporation.
The Executive will not accept other gainful employment, become or
remain an officer or director in any other Corporation, except with
the consent of the Board of Directors of the Corporation.
4. PLACE OF EMPLOYMENT. The Executive will perform his
services hereunder at the principal office of the Corporation, which
is presently located at: 0000 X. X.X. Xxxxxxx 00 XxXxxxxx, Xxxxxxx,
or at such other locations as directed by the Corporation.
5. COMPENSATION. For all services to be rendered
hereunder by the Executive, the Corporation will pay the Executive
(1) basic current compensation; (2) bonus compensation; and (3)
fringe benefits, as hereinafter set forth.
A. Basic Current Compensation. The Executive shall
(except as otherwise provided in Section 6 hereof) receive,
during the term of employment, basic current compensation at
the rate of $175,000.00 per annum. Said amount shall be
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payable in equal weekly installments. In the event the
Executive's employment is terminated by death, as provided in
Section 7 hereof, the Corporation will continue to pay the
Executive or his designee, or the executor of his estate, the
basic current compensation for a period of six (6) months from
the end of the month in which such death occurs. Said amounts
shall be payable weekly.
B. Bonus Compensation. In addition to the basic
current compensation provided above, the Executive shall
receive bonus compensation which will be five percent (5%) of
the net income before taxes of the Corporation. Such bonus
compensation shall be payable within thirty (30) days of the
original due date of the Corporation's federal income tax
return.
C. Fringe Benefits.
(1) HEALTH INSURANCE. The Executive shall receive
full health insurance benefits, including
family coverage.
(2) MOTOR VEHICLE. The Corporation shall supply
the Executive with a motor vehicle suitable
for use as an executive vehicle. The
Corporation shall further reimburse the
Executive for all reasonable expenses,
including fuel, repairs, and insurance, etc.
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(3) SICK PAY AND HOLIDAYS. The Executive shall
receive sick pay and holidays as are in effect
for all other employees.
(4) VACATION. The Executive shall receive a
minimum of four (4) weeks paid vacation per
year.
6. DISABILITY. In the event that the Executive should
become disabled or incapacitated by illness or otherwise, for a
continuous period of not less than six (6) months, during which time
he shall be unable to perform the duties required of him under this
Agreement, the Board of Directors of the Corporation, acting in
good faith, may terminate the employment of the Executive hereunder.
Said termination shall be made by giving thirty (30) days written
notice of such termination of the Executive. No such right of
termination may be exercised, in the absence of written consent of
the Executive, unless a qualified independent physician shall have
certified that the Executive is (1) permanently disabled or (2)
incapable of resuming substantially full-time performance of his
duties, under the Agreement, for a period of at least six (6) months
after his initial disability. Said independent physician shall be
selected by the Corporation and approved by the Executive. If the
Executive is unable to give such approval, such physician shall be
approved by an adult member of his family. In the event of
termination of the Executive's employment pursuant to this Section,
the Executive shall cease to be entitled to receive the Basic
Current Compensation; but shall be entitled to receive $3,365.00 per
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week from the effective date of the termination of employment for a
period of six (6) months. In addition, the Executive shall be
entitled to receive any bonuses declared under the provisions of
Section 5C hereof for the year in which the termination occurs. The
bonuses shall be prorated to reflect the percentage of the year that
the Executive was employed.
EXAMPLE:
Executive's bonus (based on calculation in Section 5C)
Termination Date in sixth month of that year.
Executive's Bonus reduced by 50 percent.
7. DEATH. In the event of the death of the Executive,
all compensation shall terminate at the expiration of the month of
his death, except as provided in Section 5B and except as to any
bonus to which the Executive might become entitled. Said bonus will
be calculated as provided in Section 6 hereof, and said bonus amount
shall be paid to the Executive's Executor or designee.
8. TERMINATION OF EMPLOYMENT AGREEMENT. In the event that
the Executive shall wish to voluntarily terminate this Agreement, he
shall give thirty (30) days written notice to the Corporation of his
intent to terminate this Agreement. At the time of said
termination, all compensation which the Executive is receiving
pursuant to this Agreement shall cease, except for any bonuses
declared under the provisions of Section 5C hereof for the year in
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which the termination occurs. The bonuses shall be prorated to
reflect the percentage of the year that the Executive was employed.
9. DISCHARGE FOR CAUSE. The Board of Directors of the
Corporation may discharge the Executive, before the expiration of a
contractual term of employment, for such negligence or misconduct,
either by omission or commission by the Executive, as shall
constitute as a matter of law a breach of the Executive's
obligations hereunder.
10. INVENTIONS. The Executive agrees, that so long as he
is employed hereunder, any and all inventions, whether patentable or
not, developed by him during the period of employment and pertaining
to the general lines of the products of the Corporation, or any of
the other involved corporations, shall be the sole property of said
Corporation. The Executive shall not be entitled to any additional
compensation on account of such inventions.
11. COVENANT NOT TO COMPETE. Executive agrees that he will
not compete with the Corporation, directly or indirectly, as an
officer, principal, stockholder, agent, employee or otherwise,
either alone or in association with other persons, firms or
corporations, in any place within or without the United States of
America, regarding the production, manufacture, sale or distribution
of any products similar to those produced, manufactured, sold or
distributed by the Corporation, except with the prior written
consent of the Corporation. This Agreement shall cover any period
of time during which he is receiving or is entitled to receive
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compensation hereunder, and also a period of two (2) years
thereafter. The Executive further agrees, that during such periods,
he will not disclose to any other person or business entity any
trade secrets or other confidential information as to the
Corporation.
During the Service Period, Employee shall be paid $25,000.00
annually as compensation for this Non-Solicitation and Non-
Competition Covenant. The payments shall be made in equal payments
and be payable on regular payroll periods as for all other employees
of Legend.
12. SUCCESSORS AND ASSIGNS. This Agreement shall be
binding upon and inure to the benefit of the personal
representatives and successors in interest of the Executive, the
personal representatives and successors in interest of the
Corporation.
CORPORATION: Legend Motors Worldwide, Inc.
By:_________________________________
Title:_______________________________
EXECUTIVE: ____________________________________
Xxxx Xxxxxxxx
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