Employment Agreement Legal Forms and Contracts

The following free employment agreement is a thorough document outlining the relationship between an Executive and a Limited Liability Company or Corporation. This agreement and contract is being provided as a sample and example for information and research purposes only, however it is a valid legal contract and agreement. Always consult an Attorney or Lawyer. This Agreement can apply in most states however is structured for Arizona. With modification this agreement could be used for California, New York, Florida, Nevada and others. Help improve this agreement by leaving a comment.

EMPLOYMENT AGREEMENT

This EMPLOYMENT AGREEMENT (the “Agreement”) dated as of __________________ by and between __________________ LLC, an __________________ Limited Liability Company (the “Company”) and __________________ (the “Executive”) defines the terms, parameter and scope of Executive’s employment with Company.

WHEREAS, the Company considers it essential to its best interests and the best interests of its outlook to employ Executive and to enter into an agreement embodying the terms of such employment; and

WHEREAS, Executive is willing to accept employment on the terms hereinafter set forth in this Agreement.

NOW, THEREFORE, in consideration of the premises and mutual covenants herein and for other good and valuable consideration, the parties agree as follows:

1. At Will Employment; Executive Representation.

a. At Will Employment. The Executive shall be employed by the Company at will for a period commencing on a date no later than __________________ (the date on which employment commences, the “Effective Date”) on the terms and subject to the conditions set forth in the Agreement. Company and / or Executive may terminate this Agreement anytime by providing thirty (30) days written notice to the other of its intention to terminate this Agreement. All salary and commission up to the termination / resignation date will be required to be paid to Executive within fourteen (14) days of Executives termination / resignation.

b. Executive Representation. Executive hereby represents to the Company that the execution and delivery of this Agreement by Executive and the Company and the performance by Executive of the Executive’s duties hereunder shall not constitute a breach of, or otherwise contravene, the terms of any employment agreement or other agreement or policy to which Executive is a party or otherwise bound.

2. Position.

a. During the Employment Term, Executive shall serve as the General Manager, running the day to day operations of Company and shall principally perform Executive’s duties to the Company and its affiliates from the Company’s offices in the Scottsdale, Arizona metropolitan area, subject to normal and customary travel requirements in the conduct of the Company’s business. In such position, Executive shall have such duties and authority as shall be determined from time to time by the Managing Members of the Company and the Executive shall report directly to the Managing Members.

b. During the Employment Term, Executive will devote Executive’s full business time and best efforts to the performance of Executive’s duties hereunder and will not engage in any other business, profession or occupation (including in an advisory capacity, consulting capacity, or otherwise) for compensation or otherwise which would conflict with the rendition of such services either directly or indirectly, without the prior written consent of the Managing Members; provided that Executive shall be permitted to participate in such charitable and community-related services as Executive may choose; provided further that such services do not materially interfere with her duties hereunder.

3. Compensation.

a. During the Employment Term, the Company shall pay Executive a base salary (the “Base Salary”) at the annual rate of __________________ dollars ($__________________) (less applicable withholding taxes should Company elect), payable in regular installments in accordance with the Company’s usual payment practices. Executive shall be entitled to such increases in Executive’s Base Salary, if any, as may be determined from time to time in the sole discretion of the Managing Members.

b. With respect to each full calendar year during the Employment Term, Executive shall be eligible to earn an annual bonus award (an “Annual Bonus”) calculated, calculated as __________________ percent (__________________ %) of the net profit earned by Company throughout the calendar year. The Annual Bonus will be paid on or before __________________ of each calendar year. Net Profits will be calculated by subtracting the Company’s total expenses from total revenue.

4. Equity. Deferred Ownership Interest. On the Effective Date, Executive will receive a deferred ownership interest in Company equal to __________________ percent (__________________ %) of the Company’s overall equity. The Deferred Ownership Interest shall vest twenty four (24) months after the execution of this Agreement should the Parties determine that a continued relationship is in the Company’s and Executives best interest. Should either the Company or the Executive determine it is not in either’s best interest to continue the business relationship within twenty four (24) months, then the Deferred Ownership Interest shall not vest and the Executive shall not be entitled to any Equity interest. Executive agrees that the Deferred Ownership Interest shall only vest upon twenty four (24) complete months of service with the Company and at Employee’s and Executive’s affirmative approval.

5. Business Expenses. During the Employment Term, reasonable, documented business expenses approved by the Company in writing, incurred by Executive in the performance of Executive’s duties hereunder shall be reimbursed by the Company in accordance with Company policies.

6. Termination / Resignation. The Employment Term and Executive’s employment hereunder may be terminated by either party at any time and for any reason; provided that Executive and Company will be required to give the other party at least fourteen (14) days advance written notice of any termination or resignation of Executive’s employment. Notwithstanding any other provision of this Agreement, the provisions of this Section 6 shall exclusively govern Executive’s rights upon termination of employment with the Company and its affiliates.

a. By the Company For any Reason (Cause without Cause or By Executive’s Resignation with or without Good Reason).

(i) The Employment Term and Executive’s employment hereunder may be terminated by the Company for any reason (as defined below) or by Executive’s resignation for any reason (as defined below).

(ii) If Executive’s employment is terminated by the Company for any reason, or if Executive resigns for any reason, Executive shall specifically only be entitled to receive so long as Executive continues employment to the termination date:

(A) The Base Salary through the date of termination;

(B) Any Annual Bonus earned but unpaid as of the date of termination for any previously completed calendar year;

(C) Reimbursement for any unreimbursed previously approved business expenses properly incurred by Executive in accordance with Company policy prior to the date of Executive’s termination; and

Following such termination of Executive’s employment by the Company for Cause or resignation by Executive without Good Reason, except as set forth in this Section 6(a), Executive shall have no further rights to any compensation or any other benefits under this Agreement.

b. Disability or Death.

(i) The Employment Term and Executive’s employment hereunder shall terminate upon Executive’s death and if Executive becomes physically or mentally incapacitated and is therefore unable for a period of one (1) month or for an aggregate of two (2) months in any twelve (12) consecutive month period to perform Executive’s duties (such incapacity is hereinafter referred to as “Disability”).

Any question as to the existence of the Disability of Executive as to which Executive and the Company cannot agree shall be determined in writing by a qualified independent physician mutually acceptable to Executive and the Company. If Executive and the Company cannot agree as to a qualified independent physician, each shall appoint such 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 Executive shall be final and conclusive for all purposes of the Agreement.

(ii) Upon termination of Executive’s employment hereunder for either Disability or death, Executive or Executive’s estate (as the case may be) shall be entitled to receive: a pro rata portion of any Annual Bonus that the Executive would have been entitled to receive pursuant to Section 4 hereof in such year based upon the percentage of the calendar year that shall have elapsed through the date of Executive’s termination of employment, payable when such Annual Bonus would have otherwise been payable had the Executive’s employment not terminated,

Following Executives termination of employment due to death or Disability, except as set forth in this Section 6(b), Executive or Executive’s estate (as the case may be) shall have no further rights to any compensation or any other benefits under this Agreement.

c. Notice of Termination. Any purported termination of employment by the Company or by Executive (other than due to Executive’s death) shall be communicated by written Notice of Termination to the other party hereto in accordance with Section 10(g) hereof. For purposes of this Agreement, a “Notice of Termination” shall mean a notice which shall indicate the specific termination provision in this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of employment under the provision so indicated.

7. Non-Competition. Executive acknowledges and recognizes the highly competitive nature of the businesses of the Company and its affiliates and accordingly agrees as follows:

a. Executive agrees that during the term of employment and until the first anniversary of the date of termination of Executive’s employment with the Company or any subsidiary of the Company, as the case may be (the “Non-Competition Period”), the Executive will not directly or indirectly, (i) engage in any business that manufactures, sells and / or repairs any gun, rifle or firearm including but not limited to __________________ or any similar assault rifle that competes directly with the business of __________________ LLC or its Affiliates in any market Worldwide “Competitive Business”), (ii) enter the employ of, or render any services (including in an advisory capacity, consulting capacity, or otherwise) to, any person engaged in a Competitive Business, (iii) acquire a financial interest in, or otherwise become actively involved with, any person engaged in a Competitive Business, directly or indirectly, as an individual, partner, shareholder, officer, director, principal, agent, trustee or consultant, or (iv) interfere with business relationships (whether formed before or after the date of this Agreement) between the Company or any of its Affiliates and customers, suppliers, partners, members or investors of the Company or its Affiliates. Notwithstanding the foregoing, Executive may, directly or indirectly own, solely as an investment, securities of any person engaged in Competitive Business which are publicly traded on a national or regional stock exchange or on the over-the-counter market if Executive (i) is not a controlling person of, or a member of a group which controls, such person and (ii) does not, directly or indirectly, own 5% or more of any class of securities of such person.

b. Executive further agrees that during the Non-Competition Period, Executive will not, directly or indirectly, (i) solicit or encourage any employee of the Company or its Affiliates to leave the employment of the Company or its Affiliates, (ii) solicit or encourage any employee who was employed by the Company or its Affiliates as of the date of Executive’s termination of employment with the Company or who left the employment of the Company or its Affiliates within one year prior to or after the termination of Executive’s employment with the Company, or (iii) solicit or encourage to cease to work with the Company or its Affiliates any consultant then under contract with the Company or its Affiliates.

c. It is expressly understood and agreed that although Executive and the Company consider the restrictions contained in this Section 7 to be reasonable, if a final judicial determination is made by a court of competent jurisdiction that the time or territory or any other restriction contained in this Agreement is an unenforceable restriction against Executive, the provisions of this Agreement shall not be rendered void but shall be deemed amended to apply as to such maximum time and territory and to such maximum extent as such court may judicially determine or indicate to be enforceable. Alternatively, if any court of competent jurisdiction finds that any restriction contained in this Agreement is unenforceable, and such restriction cannot be amended so as to make it enforceable, such finding shall not affect the enforceability of any of the other restrictions contained herein.

8. Confidentiality. Executive will not at any time (whether during or after Executive’s employment with the Company) disclose or use for Executive’s own benefit or purposes or the benefit or purposes of any other person, firm, partnership, joint venture, association, corporation or other business organization, entity or enterprise other than the Company and any of its subsidiaries or affiliates, any trade secrets, information, data, or other confidential information relating to customers, development programs, costs, marketing, trading, investment, sales activities, promotion, credit and financial data, manufacturing processes, financing methods, plans, or the business and affairs of the Company generally, or of any subsidiary or affiliate of the Company, provided that the foregoing shall not apply to information which is not unique to the Company or which is generally known to the industry or the public other than as a result of Executive’s breach of this covenant; provided further that the foregoing shall not apply when Executive is required to divulge, disclose or make accessible such information by a court of competent jurisdiction or an individual duly appointed thereby, by any administrative body or legislative body (including a committee thereof) having supervisory authority over the business of the Company, or by any administrative body or legislative body (including a committee thereof) with jurisdiction to order Executive to divulge, disclose or make accessible such information. Executive agrees that upon termination of Executive’s employment with the Company for any reason, he will return to the Company immediately all memoranda, books, papers, plans, information, letters and other data, and all copies thereof or therefrom, in any way relating to the business of the Company and its affiliates, except that he may retain personal notes, notebooks and diaries that do not contain confidential information of the type described in the preceding sentence. Executive further agrees that he will not retain or use for Executive’s account at any time any trade names, trademark or other proprietary business designation used or owned in connection with the business of the Company or its affiliates.

8. Remedies. Executive acknowledges and agrees that the Company’s remedies at law for a breach or threatened breach of any of the provisions of Section 6 or Section 7 would be inadequate and, in recognition of this fact, Executive agrees that, in the event of such a breach or threatened breach, in addition to any remedies at law, the Company, without posting any bond, shall be entitled to cease making any payments or providing any benefit otherwise required by this Agreement and obtain equitable relief in the form of specific performance, temporary restraining order, temporary or permanent injunction and / or all damages (direct or consequential, compensatory and punitive) incurred as a result of the Executive’s breach.
a. In the event that litigation shall be instituted to enforce or effectuate any provisions of this Agreement, the Company shall be entitled to a reasonable amount on account of attorneys' fees necessarily incurred in connection with such litigation, together with reimbursement for all witness's fees and expenses, including actual subsistence and transportation, salary, wages paid or attributable to or for the time necessarily spent by such witnesses in connection with such litigation.
b. The remedies provided for herein in the event of Executive’s breach of this Agreement shall be cumulative and the Company's pursuit of anyone remedy shall not preclude the Company from seeking enforcement of any and all other remedies available to it, whether provided for in this agreement or available to it as a matter of law or in equity. Executive does hereby agree that this Agreement shall be independent of any other provision in this Agreement and that any claim or cause of action by Executive against the Company, be it found under the terms of this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of the provisions of this Agreement. Executive acknowledges and agrees that the foregoing restrictions in this Agreement are reasonable and necessary for the proper protection of the business and interest of the Company and will not deprive Executive of the means or opportunity for suitably supporting and maintaining himself and his family after the termination of his activity with the Company.
9. Miscellaneous.

a. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of __________________, without regard to conflicts of laws principles thereof.

b. Entire Agreement/Amendments. This Agreement contains the entire understanding of the parties with respect to the employment of Executive by the Company. There are no restrictions, agreements, promises, warranties, covenants or undertakings between the parties with respect to the subject matter herein other than those expressly set forth herein. This Agreement supersedes any other agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof which have been made by either party. This Agreement may not be altered, modified, or amended except by written instrument signed by the parties hereto.

c. No Waiver. The failure of a party to insist upon strict adherence to any term of this Agreement on any occasion shall not be considered a waiver of such party’s rights or deprive such party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement.

d. Severability. In the event that any one or more of the provisions of this Agreement shall be or become invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions of this Agreement shall not be affected thereby.

e. Assignment. This Agreement shall not be assignable by Executive. This Agreement may be assigned by the Company to a company which is a successor in interest to substantially all of the business operations of the Company. Such assignment shall become effective when the Company notifies the Executive of such assignment or at such later date as may be specified in such notice. Upon such assignment, the rights and obligations of the Company hereunder shall become the rights and obligations of such successor company, provided that any assignee expressly assumes the obligations, rights and privileges of this Agreement.

f. Successors Binding Agreement. This Agreement shall inure to the benefit of and be binding upon personal or legal representatives, executors, administrators, successors, heirs, distributes, devises and legatees.

g. Notice. For the purpose of this Agreement, notices and all other communications provided for in the Agreement shall be in writing and shall be deemed to have been duly given when delivered or mailed by United States registered mail, return receipt requested, postage prepaid, addressed to the respective addresses set forth below Agreement, or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notice of change of address shall be effective only upon receipt.

If to the Company: If to Executive

__________________ __________________
__________________ __________________
__________________ __________________
__________________ __________________

h. Withholding Taxes. The Company may withhold from any amounts payable under this Agreement such Federal, state and local taxes as may be required to be withheld pursuant to any applicable law or regulation.

i. Counterparts. This Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year first above written.

__________________ __________________

______________________________ ______________________________
__________________ __________________
on behalf of _______________ LLC