EXECUTIVE EMPLOYMENT AGREEMENT
THIS
AGREEMENT is made and entered into this 24th day of June,
2008, by and between Cycle Country Accessories Corporation, an
Iowa
Corporation, (hereinafter referred to as the "Corporation") and
Jeff
Tetzlaff, of Shorewood, Minnesota,
(hereinafter referred to as the "Executive").
WHEREAS the Corporation has been actively pursuing a
replacement
for its previous President and as such has met with and
interviewed
the Executive, and is desirous of employing the Executive in an
executive and managerial capacity for the Corporation; and
WHEREAS the Executive is agreeable to becoming employed by the
Corporation in an executive and managerial capacity for a period of
36
(thirty-six) 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
for
a period of 36 (thirty-six) months commencing the 8th day of
April,
2008 to the 7th day of April, 2011.
2.
SCOPE OF
SERVICES. The
Executive shall serve as President
of the Corporation. As such, the Executive shall be in full charge
of
the operations of the Corporation or the Corporation's business
affairs, subject to the directions of the Chief Executive Officer
and
Chairman of the Board of Directors and also subject at all times
to
the control 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 1701 - 38th Ave. W., Spencer, Iowa, 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) signing bonus; (3) stock option; and
(4)
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 his employment, basic current compensation
at
the rate of $150,000.00 per annum. Said amount shall be 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 three (3) months from the end of
the
month in which such death occurs. Said amounts shall be payable
weekly.
B.
Signing
Bonus.
1)
Cash.
The Executive shall
receive a signing
bonus equivalent to $25,000.00 cash to be paid in full upon
arrival at place of employment and commencement of the term
of this Agreement.
2)
Stock.
The Executive shall
receive 50,000 shares
of stock in the Corporation, vesting over a three (3) year
period. At the end of
the first full year of employment,
the Executive shall become vested in and receive 16,666
shares of the stock.
At the end of the Executive's second
full year of employment, he shall become vested in and
receive another 16,666 shares of the stock. At the
completion of the Executive's third full year of
employment, he shall become vested in and receive the final
16,668 shares of the stock.
3)
Stock Option.
The Executive is
further offered
stock options to acquire an additional 500,000 shares of
stock in the Corporation at the closing price on the date
he commenced employment, which is agreed to have been $1.68
(One Dollar and 68/100) per share, which option shall run
for a period of three (3) years. This option may be
exercised by the Executive paying to the Corporation the
exercise price multiplied by the number of shares he wishes
to exercise at that time. At any time during the first
three (3) years of employment, this option may be exercised
in full or in part at any tim
