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C & J FINANCIAL, LLC
EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT (the "Agreement") is made and entered
into this 16th
day of July, 2007 (the "Effective Date"), by and between C &
J FINANCIAL, LLC,
an Alabama limited liability company (the "Company") and KEVIN
O. SMITH (the
"Employee").
WITNESSETH:
WHEREAS, the Company desires to employee Employee, and Employee
desires to
become employed by the Company;
NOW THEREFORE, In consideration of Employee's employment by the
Company, and the
mutual promises and covenants contained in, and the mutual
benefits to be
derived from this Agreement, and to set forth and establish the
terms and
conditions upon which Employee shall be employed by the Company,
the parties
hereto agree as follows:
1. Employment
The Company hereby employs Employee and Employee hereby accepts
such
employment, upon the terms and conditions set forth herein.
2. Terms and Conditions of Employment.
(a) Employee shall be employed in the position of Vice President
of
the Company and shall be responsible for production and the
development of new business for the Company, as well as
duties
and responsibilities consistent with those he was performing
prior to the purchase of the Company by Security National
Financial Corporation. Employee shall also perform such
related
services and duties for the Company as may be assigned or
delegated to him from time to time by the President and the
Executive Vice President of the Company.
(b) Throughout his employment hereunder, Employee shall devote
his
full time, energy and skill to perform the duties of his
employment (reasonable vacations in accordance with this
Agreement and reasonable absences due to illness excepted),
shall
faithfully and industriously perform such duties, and shall
use
his best efforts to follow and implement all management
policies
and decisions of the President and the Executive Vice
President.
3. Compensation and Benefits.
As the entire consideration for the services to be performed and
the
obligations incurred by Employee hereunder, and subject to the
terms
and conditions hereof, during the Term of this Agreement as
defined
below in Section 5(a), Employee shall be entitled to the
following:
(a) Salary. Commencing from the effective date of this
Agreement, the
Company shall pay Employee an annual salary ("Annual Salary")
of
$96,000. Such Annual Salary, which shall be pro-rated for
any
partial employment period, will be payable in weekly
installments
or at such other intervals as may be established for the
Company's customary pay schedule. The Annual Salary is subject
to
such incremental increases as the President and the
Executive
Vice President may determine from time to time in their sole
discretion. The first review of the Annual Salary by the
President and the Executive Vice President shall be as of
June
30, 2008; subsequent reviews shall thereafter be made each
year
ended June 30 during the Term of this Agreement. The primary
factor in determining increases in the Annual Salary shall
thereafter be the Company's total amount of financings for
funeral homes and mortuaries and the average discount rate
of
such financings for the previous year. For the year ended
June
30, 2007, the Company provided financings for funeral homes
and
mortuaries in the total amount of $27,501,313 at an average
discount rate of approximately 4.4%. Increases in Annual
Salary
shall be based upon exceeding this total amount of financings
for
the year at the prevailing discount rate. However, in the
event
the total amount of the Company's financings for the year
ended
June 30, 2008 are less than $27,501,313, the President and
the
Executive Vice President may in their sole discretion reduce
Employee's salary; and in the event the total amount of such
financings are less than $24,000,000, the President and the
Executive Vice President may in their sole discretion
terminate
Employee.
(b) Bonus - As further compensation to Employee, and as
further
consideration for his entering into this Agreement and the
services to be rendered by Employee hereunder, the Company
may
pay Employee following the end of the one-year period ended
June
30, 2008 and each year thereafter during the term of this
Agreement as defined in Section 5(a) below, a bonus in the
form
of cash. The President and the Executive Vice President, in
their
sole discretion, shall determine the amount of any bonuses
and
the terms and conditions under which Employee shall receive
the
bonuses. Such bonus shall be provided to Employee upon the
satisfaction by the Company of the performance objectives
that
shall be determined by the President and the Executive Vice
President. Employee shall have the right to prepare and submit
a
proposed bonus plan to the President and the Executive Vice
President for their review and consideration. Without
limiting
the generality of the foregoing, the performance objectives
shall
include an increase in the total amount of the Company's
financings for funeral homes and mortuaries for the year
ended
June 30 over the previous year's financings at the
prevailing
discount rate. Employee shall also have the right to direct
any
portion of the bonus to be paid into a deferred compensation
fund.
(c) Key Man Insurance. The Company shall pay premiums of up to
$300
per year for key man insurance on Employee, with Employee
being
named as beneficiary of such insurance policy.
(d) Car Allowance. Employee shall be entitled to an
automobile
allowance of $1,161.41 per month payable on the first day of
each
month. Employee may designate the bank to which such payment
shall be made. The Company also agrees to pay for the
insurance
on the automobile.
(e) Vacation, Sick Leave, and Holidays. Employee shall be
entitled to
two weeks of vacation, and also sick leave and holidays at
full
pay in accordance with the Company's policies established and
in
effect from time to time.
(f) Deductions. The Company shall have the right to deduct
and
withhold from the compensation due to Employee hereunder,
including Employee's Annual Salary and Compensation Bonus,
if
any, such taxes and other amounts as may be customary or
required
by law.
4. Business Expenses.
The Company shall promptly reimburse Employee for all
reasonable
out-of-pocket business expenses incurred in performing
Employee's
duties hereunder, in accorda
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