Exhibit 10.1
EXECUTIVE EMPLOYMENT AGREEMENT
The Executive Employment Agreement (the “Agreement”)
is between Arazu Inc., a Florida Corp. (the “Company”) and Xxxx Xxxxxxx (the “Employee”) effective as of
March 1st, 2014 (the “Effective Date”).
RECITALS:
WHEREAS, the Company desires that the
Employee become the Chairman, President and Chief Executive Officer of the Company.
WHEREAS, the Employee desires to accept
such role under the terms hereof.
NOW, THEREFORE, in consideration of the promises and mutual
agreements herein set forth, the parties hereby agree as follows:
1. Term of Employment. The period of employment of Employee
by the Company under the Agreement (the Employment Period) shall be deemed to have commenced on the Effective Date and shall terminate
three years thereafter.
2. Duties. During his employment by the Company, the Employee
shall perform such duties as are customary and typical by an officer of a publicly traded company, and shall discharge such duties
in a professional and diligent manner at all times, to the best of his abilities. Employee’s employment shall also be subject
to the policies maintained and established by the Company, if any, as the same may be amended from time to time. In keeping with
these duties, Employee shall make full disclosure to the Board of Directors of all business opportunities pertaining to the business
of the Company or its Affiliates and should not appropriate for Employee’s own benefit business opportunities that fall within
the scope of the businesses conducted by the Company and its Affiliates.
3. Compensation. The Company shall pay to Employee a base
salary of $10,000.00 per month, plus applicable bonuses as are awarded by the Board of Directors from time to time based on performance,
which may either be paid in stock or cash at the discretion of the Board.
4. During the term, Employee shall serve in the capacity
of the Company's President, Chairman and CEO of the Company.
5. Reimbursement For Expenses. The Company shall reimburse
the Employee within 30 days of the submission of appropriate documentation, and in no event later than the last day of the calendar
year following the year in which an expense was incurred, for all reasonable and approved travel and entertainment expenses and
other disbursements incurred by him for or on behalf of the Company in the course and scope of his employment under the Agreement.
6. Termination of Agreement.
(a) Death. The Agreement shall automatically terminate upon
the death of Employee.
(b) Disability. If, as a result of Employee’s incapacity
due to physical or mental illness, Employee shall have been substantially unable, either with or without reasonable accommodation,
to perform his duties hereunder for an entire period of six (6) consecutive months, and within thirty (30) days after
written Notice of Termination is given after such six (6) month period, Employee shall not have returned to the substantial
performance of his duties on a full-time basis, the Company shall have the right to terminate Employee’s employment hereunder
for Disability, and such termination in and of itself shall not be, nor shall it be deemed to be, a breach of the Agreement. Any
dispute between the Employee and the Company regarding whether Employee has a Disability shall be determined in writing by a qualified
independent physician mutually acceptable to the Employee and the Company. If the Employee and the Company cannot agree as to a
qualified independent physician, each shall appoint a physician and those two physicians shall select a third who shall make such
determination in writing. The determination of Disability made in writing to the Company and Employee shall be final and conclusive
for all purposes of the Agreement. Employee acknowledges and agrees that a request by the Company for such a determination shall
not be considered as evidence that the Company regarded the Employee as having a Disability.
(c) Termination By Company For Cause. The Company may terminate
the Agreement upon written notice to Employee at any time for “Cause” in accordance with the procedures provided below;
(d) For purposes of the Agreement, “Cause” shall
mean:
(i) the material breach of any provision of the Agreement
by Employee which has not been cured within five business (5) days after the Company provides notice of the breach to Employee;
provided, however, if the act or omission that is the subject of such notice is substantially similar to an act or omission with
respect to which Employee has previously received notice and an opportunity to cure, then no additional notice is required and
the Agreement may be terminated immediately upon the Company’s election and written notice to Employee);
(ii) the entry of a plea of guilty or judgment entered after
trial finding Employee guilty of a crime punishable by imprisonment in excess of one year involving moral turpitude (meaning a
crime that includes the commission of an act of gross dishonesty or bad morals);
(iii) willfully engaging by Employee in conduct that the
Employee knows or reasonably should know is detrimental to the reputation, character or standing or otherwise injurious to the
Company or any of its shareholders, direct or indirect subsidiaries and Affiliates, monetarily or otherwise;
(iv) without limiting the generality of Section 6(d)(i),
the breach or threatened breach of any of the provisions of Sections 8, 9 or 10; or
(v) a ruling in any state or federal court or by an arbitration
panel that the Employee has breached the provisions of a non-compete or non-disclosure agreement, or any similar agreement or understanding
which would in any way limit, as determined by the Board of Directors of the Company, the Employee’s ability to perform under
the Agreement now or in the future.
(e) Termination By Company Without Cause. The Company, by
a vote of a majority of the Board of Directors, may terminate the Agreement at any time, and for any reason, by providing at least
90 days written notice to Employee.
(f) Termination By Employee With Good Reason. Employee may
terminate his employment with good reason anytime after Employee has actual knowledge of the occurrence, without the written consent
of Employee, of one of the following events (each event being referred to herein as “Good Reason”):
(i) Any change in the duties or responsibilities (including
reporting responsibilities) of Employee that is inconsistent in any adverse respect with Employee’s position(s), duties,
responsibilities or status with the Company immediately prior to such change (including any diminution of such duties or responsibilities)
or (B) an adverse change in Employee’s titles or offices (including, membership on the Board of Directors) with the
Company;
(ii) A reduction in Employee’s Base Salary or Bonus
opportunity;
(iii) The relocation of the Company’s principal executive
offices out of Central Florida;
(iv) The failure of the Company to continue in effect any
material employee benefit plan, compensation plan, welfare benefit plan or fringe benefit plan in which Employee is participating
immediately prior to the date of the Agreement or the taking of any action by the Company which would adversely affect Employee’s
participation in or reduce Employee’s benefits under any such plan, unless Employee is permitted to participate in other
plans providing Employee with substantially equivalent benefits;
(v) Any refusal by the Company to continue to permit Employee
to engage in activities not directly related to the business of the Company which Employee was permitted to engage in prior to
the date of the Agreement;
(vi) The Company’s failure to provide in all material
respects the indemnification set forth in the Company’s Articles of Incorporation, By-Laws, or any other written agreement
between Employee and Company;
(vii) Any other breach of a material provision of the Agreement
by the Company.
For purposes of clauses (iii) through (vi) and
(vii) above, an isolated, insubstantial and inadvertent action taken in good faith and which is remedied by the Company within
ten (10) days after receipt of notice thereof given by Employee shall not constitute Good Reason. Employee’s right to
terminate employment with Good Reason shall not be affected by Employee’s incapacity due to mental or physical illness and
Employee’s continued employment shall not constitute consent to, or a waiver of rights with respect to, any event or condition
constituting cause.
7. Effect of Termination. Upon the termination of the Agreement,
no rights of Employee which shall have accrued prior to the date of such termination, including the right to receive any bonus
Fully-Earned through the date of such termination, shall be affected in any way.
(a) Upon Death of Employee. During the Term, if Employee’s
employment is terminated due to his death, Employee’s estate shall be entitled to receive the Base Salary set forth in Section 3
accrued through the date of death and any bonus Fully-Earned (as herein defined) through the date of such termination; provided,
however, Employee’s estate shall not be entitled to any other benefits (except as provided by law or separate agreement).
“Fully-Earned” shall mean that for purposes of determining whether the Employee shall be entitled to a bonus, that
such Employee shall be treated as if he had been employed through the last date of the regular period for determining whether or
not a bonus is payable in the standard manner that all such employees are evaluated even though Employee is no longer employed
by the Company, and him eligibility for an incentive bonus, if any, shall be determined accordingly. Further, a surviving spouse
of Employee shall be eligible for continuation of family benefits pursuant to Section 3(c) subject to compliance with Plan provisions
at the full premium rate (Company plus employee portion) for a one month period after the date of termination.
(b) For Disability; By Company Without Cause; By Employee
with Good Reason.
If the Agreement is terminated under Section 6 (b), (e) or
(f):
(i) Employee shall be entitled to receive his Base Salary
set forth in Section 3 accrued through the date of such termination and any bonus Fully-Earned through the date of such termination,
and shall receive a severance equal to 12 months salary, paid out in 12 equal monthly installments; and
(ii) Except as provided for in the Section 7(b), Employee
shall not have any rights which have not previously accrued upon termination of the Agreement.
(c) By Company With Cause. In the event of termination of
Employee’s employment Section 6(c) Employee shall be entitled to receive the Base Salary and benefits set forth in Section
3 accrued through the date of termination, and he shall not be entitled to any other benefits (except as required by law).
8. Confidential Information.
(a) The Company shall disclose to Employee, or place Employee
in a position to have access to or develop, trade secrets or confidential information of Company or its Affiliates; and/or shall
entrust Employee with business opportunities of Company or its Subsidiaries; and/or shall place Employee in a position to develop
business good will on behalf of Company or its Subsidiaries.
(b) The Employee acknowledges that in his employment hereunder
he occupies a position of trust and confidence and agrees that he will treat as confidential and will not, without prior written
authorization from the Company, directly or indirectly, disclose or make known to any person or use for her own benefit or gain,
the methods, process or manner of accomplishing the business undertaken by the Company or its Subsidiaries, or any non-public information,
plans, formulas, products, trade secrets, marketing or merchandising strategies, or confidential material or information and instructions,
technical or otherwise, issued or published for the sole use of the company, or information which is disclosed to the Employee
or in any way acquired by him during the term of the Agreement, or any information concerning the present or future business, processes,
or methods of operation of the Company or its Subsidiaries, or concerning
improvement, inventions or know how relating to the same
or any part thereof, it being the intent of the Company, with which intent the Employee hereby agrees, to restrict him from disseminating
or using for his own benefit any information belonging directly or indirectly to the Company which is unpublished and not readily
available to the general public.
9. Successors and Assigns. The Agreement is personal in its
nature and neither of the parties hereto shall, without the consent of the other, assign or transfer the Agreement or any rights
or obligations hereunder, provided, however, that the provisions hereof shall inure to the benefit of, and be binding upon, each
successor of the Company, whether by merger, consolidation, acquisition or otherwise, unless otherwise agreed to by the Employee
and the Company.
10. Notices. Any notice required or permitted to be given
to the Employee pursuant to the Agreement shall be sufficiently given if sent to the Employee by registered or certified mail addressed
to the Employee at 00 Xxxxxx Xxxx, Xxxxxx Xxxxxxxx, Xxxxxxxxxxxx. XX00 0XX or at such other address as he shall designate
by notice to the Company, and any notice required or permitted to be given to the Company pursuant to the Agreement shall be sufficiently
given if sent to the Company by registered or certified mail addressed to it at 000 Xxxxxx Xxx, Xxxxxxxx, Xxx Xxxx. NY., or at
such other address as it shall designate by notice to the Employee.
11. Invalid Provisions. The invalidity or unenforceability
of a particular provision of the Agreement shall not affect the enforceability of any other provisions hereof and the Agreement
shall be construed in all respects as if such invalid or unenforceable provision were omitted.
12. Amendments To The Agreement. The Agreement may only be
amended in writing by an agreement executed by both parties hereto.
13. Entire Agreement. The Agreement contains the entire agreement
of the parties hereto and supersedes any and all prior agreements, oral or written, and negotiations between said parties regarding
the subject matter contained herein.
14. Applicable Law and Venue. The Agreement is entered into
under, and shall be governed for all purposes, by the laws of the State of Florida, with venue of any lawsuit between the parties
being in Broward County, Florida.
15. No Waiver. No failure by either party hereto at any time
to give notice of any breach by the other party of, or to require compliance with, any condition or provision of the Agreement
shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.
16. Severability. If a Court of competent jurisdiction determines
that any provision of the Agreement is invalid or unenforceable, then the invalidity or unenforceability of that provision shall
not affect the validity or unenforceability of any other provision of the Agreement, and all other provisions shall remain in full
force and effect.
17. Counterparts. The Agreement may be executed in one or
more counterparts, each of which shall be deemed to be an original, but all of which together will constitute one in the same agreement.
18. Withholding of Taxes and Other Employee Deductions. The
Company may withhold from any benefits and payments made pursuant to the Agreement all federal, state, city and other taxes as
may be required pursuant to any law or governmental regulation or ruling.
19. Indemnification. The Company shall indemnify Employee
from any claims, demands or liabilities of any kind or nature arising out of his employment with the Company, that are not the
result of his own actions, or actions within his control.
20. Gender Correction and Neutrality. This Agreement may
contain one or more references to he or she, or his or her. It is stipulated and agreed that Employee is a male, and all such references,
to the extent they are inconsistent with this, shall be deemed to be corrected
In witness whereof, the parties hereto
have executed the Agreement as of the day and year above written.
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Arazu, Inc. |
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Employee |
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Sign : |
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Sign : ________________________________ |
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By: Xxxx Xxxxxxx, Chief Executive Officer |
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Name:_________________________________ |