Exhibit 10.11
RED XXXXX INTERNATIONAL / XXXX XXXXX
EMPLOYMENT AGREEMENT
Position: Vice President of Franchise Development
Responsible for:
1. Assisting existing franchisees in developing additional sites.
2. Developing new franchisees in both domestic and international
markets.
3. Adding value to franchisor/franchisee relationship by providing
tools and techniques to enable both parties to improve the
profitability of their operations.
Salary: $125,000 per year, paid monthly, and subject to annual performance
adjustments.
Bonus: 1. For the calendar year 1997, a bonus will be earned at the rate
of 5% of Initial Franchise Fees, as paid. This bonus will be
paid within 60 days of receipt of Initial Franchise Fees
throughout the year.
2. In addition to the bonus earned in #1 for 1997, a discretionary
bonus will be paid as determined by the President. Total
potential will be $15,000. This bonus will be paid by February
15, 1998.
3. 1998 and beyond - bonus plan will be negotiated.
Stock
Options: 125,000 incentive Stock Options will be granted at an exercise
price of $2.00 per share and shall expire ten (10) years from the
date the option is granted, or ninety (90) days from termination,
whichever is earlier. Stock Option available for exercising shall
be subject to a four-year vesting period, as defined in the plan.
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Other
Provisions: In the event that at least 50% of the Company's shares outstanding
are transferred to new owners due to merger, sale or other
consolidation, all vesting shall immediately accelerate to 100%.
Expenses: All reasonable business expenses provided for or reimbursed by RRI.
Severance: Year 1: If terminated without cause prior to the end of the first
year, a six-month severance at the current base salary will be paid
monthly.
Year 2 and beyond: If terminated without cause after the first
year, severance at the then current base salary will be paid
monthly for a term of one year.
Benefits: Participates in all benefit plans available to senior executives of
RRI.
Other: RRI understands that Xxxxx has an employment arrangement with The
Xxxxxx Group Co.
Signed and dated this 7 day of January 1997.
/s/ Xxxx Xxxxxx
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Xxxx Xxxxxx
President
Red Xxxxx International
/s/ Xxxx Xxxxx
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Xxxx Xxxxx
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