UNITED MOBILE HOMES, INC. Employment of the President - Samuel A. Landy AGREEMENT EFFECTIVE January 1, 2005
UNITED MOBILE HOMES, INC.
Employment of the President - Xxxxxx X. Xxxxx
AGREEMENT EFFECTIVE January 1, 2005
BY AND BETWEEN:
United Mobile Homes, Inc., a New Jersey
Corporation (“Corporation”)
AND:
Xxxxxx X. Xxxxx (“Employee”)
Corporation desires to employ Employee in the business of the Corporation and Employee desires to be so employed. The parties agree as follows:
1.
Employment.
Corporation agrees to employ Employee and Employee agrees to be employed
in the capacity of President for a term of three (3) years effective January 1, 2005 and terminating December 31, 2008.
2.
Time and Efforts.
Employee shall diligently and conscientiously devote his time and attention and
put his best efforts to the discharge of his duties as President of the Corporation.
3.
Board of Directors.
Employee should at all times discharge his duties in consultation with and under the supervision of the Board of Directors of the Corporation. In the performance of his duties, Employee shall make his principal office in such place as the Board of Directors of the Corporation and Employee from time to time to agree.
4.
Compensation.
A.
First year. During the Corporation’s fiscal year beginning January 1, 2005
Corporation shall pay to the Employee as compensation for his services the
sum of $329,922, which shall be paid in equal bi-weekly installments.
B.
Second year. During the Corporation’s fiscal year beginning January 1, 2006
Corporation shall pay to the Employee as compensation for his services the sum of $346,418, which shall be paid in bi-weekly installments.
C.
Third year. During the Corporation’s fiscal year beginning January 1, 2007
Corporation shall pay to the Employee as compensation for his services the sum of $363,739, which shall be paid in bi-weekly installments.
Employment Agreement
Page 2
Thereafter the term of this Employment Agreement shall be automatically
renewed and extended for successive one-year periods except that either
party may, at least ninety (90) days prior to such expiration date or any
anniversary thereof, give written notice to the party electing that this
Employment Agreement not be renewed or extended, in which event this
Employment Agreement shall expire as of the expiration date, respectively.
In the event a merger of the Company, sale or change of control, Employee
shall have the right to extend and renew this Employment Agreement so
that the expiration date will be three years from the date of merger, sale or
change of control.
D.
Bonuses shall be paid at the discretion of the Board of Directors. The
following guidelines are agreed to:
1.
The maximum bonus will be 21% of base salary. A 7% per year bonus will be paid by meeting any of the following goals.
2.
Performance will be measured by achieving one or more of the following:
a.
FFO per share to increase 5% per year. Income to be calculated based on ordinary park operation including sales of homes after tax income. Extraordinary one time items not to be included for performance purposes. Any increase or decrease in the number of shares is to be adjusted so that the determination is based on a constant number of shares
b.
There shall be a minimum of 175 new home sales per year.
c.
Occupancy to increase 25 units per year. Not including any increased occupancy occurring through acquisitions
The bonus of 21% of base salary will be paid 1/3 for each net goal met.
The payment of any bonus under this plan does not exclude the
payment of any other bonuses including the stock option bonus
referred to below:
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Page 3
3.
Stock option bonus: The Employee shall receive the Option to purchase
50,000 shares of stock at market price or the price required by law each year
unless grant of the option exceeds the number of shares allowed by the option
plan. Said options expire 8 years after the date of the grant.
5. Expenses.
Corporation will reimburse the Employees for reasonable and necessary expenses
by him and carrying out his duties under this agreement. Employee shall present to the
Corporation from time-to-time, an itemized account of such expenses in such forms as
may be required by the Corporation.
6. Automobiles.
In recognition of Employee’s need for an automobile for business purposes, the
Corporation will provide the Employee with an automobile including maintenance,
repairs, insurance, and all costs incident thereto, all comparable to those presently
provided to Employee by the Corporation.
7.
Indemnity and Attorney Fees.
The Corporation agrees to indemnify the Employee from any and all lawsuits
filed directly against the Employee in either his capacity as Employee or as a Director of
the Corporation. The Corporation will pay all attorney fees and costs to defend the
Employee from any such lawsuits.
8.
Vacation.
Employee shall be entitled to take four (4) paid weeks vacation per year.
9.
Disability Services.
The Corporation will pay Employee an amount equal to the premium for the
Employee’s purchase of disability insurance. Additionally, Employee is entitled to one
year’s severance pay if the severance is a result of action by the Board. Employee is not
entitled to both at the same time.
Employment Agreement
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10.
Life Death Benefits.
The corporation shall directly pay up $1,600 per year for the life insurance
policy owned by the Xxxxxx Xxxxx Family Ltd. Partnership.
11.
401-K Plan.
The Corporation will continue to provide a 401-K Plan, which the Employee can
Contribute to at his option.
12.
Change of More than Three Corporate Directors.
In the event a change of more than three (3) Directors of the Corporation during the
term of this Contract, then Xxxxxx X. Xxxxx, shall have the option to cancel this Contract
at any time after the change of more than three (3) Directors. Notice of intent to cancel
this Contract shall be sent by Xxxxxx X. Xxxxx to each Board member of the Corporation
and shall be effective thirty (30) days after the mailing.
13. Notices.
All notices required or permitted to be given under this agreement shall be given
by certified mail, return receipt requested to the parties at the following addresses or such
other addresses as either may designate in writing to the other party;
Corporation: United Mobile Homes, Inc.
0000 xxxxx 0 Xxxxx, Xxxxx 0-X
Xxxxxxxx, XX 00000
Employee: Xxxxxx X. Xxxxx
000 Xxxxxxx Xxxx
Xxxxxx Xxxxxxxx, XX 00000
14.
Governing Law.
This Agreement shall be construed and governed in accordance with the laws of the
State of New Jersey.
Employment Agreement
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15.
Entire Contract.
This Agreement constitutes the entire understanding and agreement between the
Corporate and Employee with regard to all matters herein. There are no other
Agreements, conditions or representatives oral or written express or implied with
regard thereto. This Agreement may be amended only in writing and signed by both
parties hereto.
Employment Agreement
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IN WITNESS WHEREAS, Corporation has its appropriate officers signed and
Affixed its seal and Employee has signed and sealed this Agreement.
UNITED MOBILE HOMES, INC.
(SEAL)
BY:_/s/Richard_Molke______
Xxxxxxx Xxxxx
Compensation Committee
BY:/s/Xxxxxx X. Landy______
Xxxxxx X. Xxxxx, Employee
BY:/s/Xxxxxx Rothenberg____
Xxxxxx Xxxxxxxxxx
Compensation Committee
