Exhibit 10-b
AMENDED AND
RESTATED
EXECUTIVE EMPLOYMENT
AGREEMENT
THIS EXECUTIVE EMPLOYMENT AGREEMENT
(the “ Agreement
”) is made as of September 22, 2010 (the “ Effective
Date ”) and amended on July 15, 2011 by and between Arcis
Resources Corporation, with its principal executive offices at 4320
Eagle Point Parkway Suite A Birmingham Al 35242 (the “
Company ”) and Kenneth A Flatt Jr. an
individual residing at 1079 Legacy Drive, Birmingham
AL 35242 (the “ Executive
”).
WHEREAS, the Executive has been offered the position of
Chief Executive Officer (“ CEO ”) of the Company
and will begin to serve in such capacities on the Effective
Date;
WHEREAS, the Company wishes to assure itself of the
services of the Executive for the period provided for herein and
the Executive is willing to serve in the employ of the Company for
said period upon the terms and conditions hereinafter provided;
and
WHEREAS, the Company’s Board of Directors has
determined that the best interests of the Company and its
shareholders would be served by providing for the terms and
conditions of the Executive’s employment as set forth
herein.
NOW, THEREFORE, in consideration of the mutual covenants herein
contained and intending to be legally bound hereby, the Company and
the Executive hereby agree as follows:
Section 1. Definitions . As
used herein, the following terms shall have the meanings set forth
below.
“ Closing Date ” shall mean
the Closing Date defined in the Amended and Restated Exchange
Agreement between the Company and the equity holders in American
Plant Services, LLC, LLC.
“ Completion of an Secondary
Offering ” shall mean the date upon which the Company
receives the proceeds from a Secondary Offering (as defined
herein).
“ Disability ” of the
Executive means that, as a result of the Executive’s
incapacity due to physical or mental illness, the Executive shall
have been absent from his duties on a full time basis for thirty
(30) days in any three (3) month period. If the
Executive is prevented from performing his duties because of
Disability, upon request by the Company, the Executive shall submit
to an examination by a physician selected by the Company, at the
Company’s expense, and the Executive shall also authorize his
personal physician to disclose to the selected physician all of the
Executive’s medical records.
“ Fiscal Year ” means any
fiscal year of the Company, as applicable.
“ Secondary Offering ” means
a sale by the Company of equity securities for which it receives
gross proceeds in excess of a total of ten million
dollars.
“ Net Income ” means the
Company's net income as reported on the Statements of Operations
filed by the Company with the Securities and Exchange
Commission.
“ Net Income Threshhold ”
means the time when the Company’s aggregate Net Income for a
period of four consecutive quarters equals or exceeds two million
five hundred thousand ($2,500,000) dollars. The Net
Income Threshold shall be deemed to have been achieved upon the
last day of the fourth quarter in the measurement period,
notwithstanding the later filing of the Statement of
Operations.
“ Person ” means any
individual, sole proprietorship, general or limited partnership,
joint venture, trust, unincorporated organization, association,
corporation, institution, entity, party, limited liability company
or government (whether territorial, national, federal, state,
provincial, county, city, municipal or otherwise, including,
without limitation, any instrumentality, division, agency, body or
department thereof).
Section
2.
Employment and Term . The Company hereby employs
the Executive, and the Executive hereby accepts such employment by
the Company, for the purposes and upon the terms and conditions
contained in this Agreement and subject to the approval of the
Company’s Board of Directors. Subject to the terms
and conditions contained herein, the initial term of this Agreement
shall be for a three (3) year period, commencing on Effective Date.
The Executive will perform as the interim CEO of the Company for a
period commencing on the Effective Date and ending no more than six
months after the Closing Date. The Executive will also
perform as the CEO of American Plant Services, LLC, a
subsidiary of the Company (“APS”), for a period
commencing on the Closing Date and ending on the Employment
Termination Date. Thereafter, this Agreement shall automatically
renew on its then-current terms and conditions for subsequent
one (1) year periods unless either party elects to not renew
for any subsequent one (1) year period by providing the other party
with written notice at least ninety (90) days prior to the end of
the initial term or any renewal term. The initial term
hereof and any extension term are referred to herein as the “
Employment Period .”
Section
3.
Employment Capacities and Duties . During the
period when the Executive is employed as Chief Executive Officer of
the Company, the Executive shall have the duties and
responsibilities normally associated and incumbent with the
position of Chief Executive Officer. Accordingly, and not by way of
limitation, as CEO of the Company, the Chief Executive Officer
shall attend all meetings of the shareholders of the Company and of
the Board of Directors and, subject to the direction or approval of
the Board of Directors, the Executive shall supervise and manage
the day-to-day operations and business of the
Company. The Company shall cause the Chief Executive
Officer to be appointed to the Board of Directors and the Chief
Executive Officer shall serve on the Board of Directors and any
committee thereof to which he is appointed without further
compensation. During the period when the Executive is
employed as CEO of APS, the Executive shall serve as a Manager of
APS and shall be designated as the Chief Executive Officer of APS,
and shall have the duties and responsibilities normally associated
with that position. As CEO of APS, the executive will
report to the CEO and the Board of Directors of the Company, as
well as to any other managers of APS to the extent mandated in the
APS operating agreement.
Section
4.
Executive Performance Covenants . The Executive
accepts the employment described in Section 3 herein and agrees to
devote his full working time and efforts (except for absences due
to illness and appropriate vacations) to the business and affairs
of the Company and the performance of the aforesaid duties and
responsibilities set forth in Section 3 hereof.
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The Executive
shall be paid a salary (the “ Salary ”) for the
period commencing on the Closing Date at an annual rate of One
Hundred Eighty Thousand Dollars ($180,000.00), payable in equal
installments in accordance with the Company’s payroll
policies. Upon the Completion of a Secondary Offering or
achievement of the Net Income Threshold, the Executive’s
Salary shall be increased to an annual rate of Four Hundred
Thousand Dollars ($420,000.00) for the duration of the Employment
Period. The Salary shall be pro-rated for any Fiscal
Year hereunder which is less than a full Fiscal
Year. The Salary will be subject to annual rate
increases of 5% per year to compensate for inflation and cost of
living expense increases. The Executive will not be
required to relocate from his existing location in Birmingham,
Alabama. In the event that relocation is deemed to be in
the best interest of the Company, then an increased revised
compensation package and relocation package will be required and
will be negotiated at that time.
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American
Plant Services Compensation . Until the increase in compensation
provided Section 5(a), APS shall pay the Executive additional
salaried compensation. The additional compensation shall
equal the lesser of (i) $120,000 or (ii) APS revenue
generated cash flow during the period for which compensation is
being paid. .
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Section
6.
Reimbursement of Expenses . The Company shall
reimburse the Executive for expenses incurred in providing services
to the Company, including travel expenses for round-trip coach
airfare and hotel expenses incurred in connection therewith, upon
the Executive’s submission of appropriate documentation
evidencing such expenses in accordance with the Company’s
reimbursement policies as determined from time to time by the Board
of Directors. If there is a dispute as to the
eligibility of an expense for reimbursement in accordance with the
Company’s reimbursement policies, then such expense shall be
determined to be reimbursable if approved by a majority of the
Board of Directors.
Section
7.
Employee Benefits, Vacations . During the
Employment Period, in addition to any and all compensation and
benefits required or permitted to be made by the Company to the
Executive hereunder, the Executive shall receive the benefits and
enjoy the perquisites described below:
a)
Vacation . The Executive shall be entitled to six
(6) weeks paid vacation per annum; and
b)
Participation in Benefit Plans . The Executive
shall be entitled to participate in the Company’s auto lease,
group hospitalization, health, life or other insurance or death
benefit plan, travel or accident insurance, restricted or stock
purchase plan, stock option plan, retirement income or pension
plan, 401(k) plan, or other present or future group employee
benefit plan or program of the Company for which executives are or
shall become eligible. Nothing contained in this
Agreement shall prevent the Board from amending or otherwise
altering any such plan, program or arrangement during the
Employment Period. In addition, the Company will pay the
premiums on the Executive’s life and disability insurance
policies as in effect on the Effective Date not to exceed more than
five thousand dollars ($5,000) per month. After the
Closing Date, the Company shall maintain continuously for the
Employment Period a director and officer insurance policy with
limits of $3,000,000 per occurrence and $10,000,000 in the
aggregate.
c)
Indemnification . The Executive shall be entitled
to indemnification and protection from liability as set forth in
Section 11.
d)
Automobile Allowance. The Executive shall be entitled to
fifteen hundred ($1500) per month car allowance.
Section
8.
Termination of Employment .
a)
Notice of Termination; Employment Termination Date
.
(1) Any
termination of the Executive’s employment by the Company or
the Executive shall be communicated by written Notice of
Termination to the other party hereto. For purposes of
this Agreement, a “ Notice of Termination ”
shall mean a notice which shall indicate the provision in this
Agreement relied upon.
(2) “
Employment Termination Date ” shall mean the date on
which the Employment Period and the Executive’s right and
obligation to perform employment services for the Company shall
terminate effective upon the first to occur of the
following:
(i) If
the Executive’s employment is terminated for Disability, the
date on which the Notice of Termination is given;
(ii) If
the Executive’s employment is terminated by voluntary action
of the Executive (See Section 8(e)), the date specified in the
Notice of Termination, which date shall be no more than fifteen
(15) days after the date that the Notice of Termination is
given;
(iii) The
death of the Executive;
(iv) The
expiration of the Employment Period;
(v) If
the Executive’s employment is terminated by the Company for
Cause (See Section 8(b)), the date on which a Notice of Termination
is given; and
(vi) If
the Executive’s employment is terminated by the Company other
than for Cause, Disability or death of the Executive, the date
specified in the Notice of Termination which date shall not be more
than thirty (30) days after the date that the Notice of Termination
is given.
(vii) Termination
for Cause.
(1) The
Company may terminate the Executive’s employment for
Cause. The Company shall have the option to terminate
the Executive’s employment for “cause” if the
Executive: (a) pleads guilty to or is convicted of a felony; (b)
engages in grossly negligent conduct or willful misconduct in
connection with the execution of his duties under this Agreement
which materially and adversely affects the Company after written
notice by the Company to the Executive of the specific acts that
form the basis for the termination; or (c) materially fails to
perform his duties under this Agreement, provided the
nonperformance continues uncorrected for a period of thirty (30)
days after written notice of such nonperformance by the Company to
the Executive specifically identifying the manner in which the
Company believes the Executive has not performed his duties. For
purposes of this Section, no act, or failure to act, on the
Executive's part shall be considered “willful” unless
done, or omitted to be done, by him not in good faith and without
reasonable belief that his act or omission was in the best
interests of the Company.
(2) If
the Executive’s employment shall be terminated for Cause, the
Company shall pay the Executive (or his successors) his unpaid
Salary through the Employment Termination Date and any Stock
Options (as defined herein) which have not vested as of the
Employment Termination Date shall be terminated.
b)
Termination for Disability . The Company may
terminate the Executive’s employment b