Exhibit 10.10
EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT (the "Agreement") is entered into as of May 1, 1998 by
and between ED MOUNTFORD ("Executive") and Hearthside Homes, Inc., a California
corporation ("Employer"), which is an indirect wholly-owned subsidiary of
California Coastal Communities, Inc., a Delaware corporation ("Parent").
WITNESSETH:
WHEREAS, Executive has served Employer in various executive capacities and
Employer desires to obtain the benefit of continued service by Executive, and
Executive desires to render continued services to Employer;
WHEREAS, Employer has determined that because of Executive's substantial
experience and business relationships in connection with the business of
Employer, it is in the Employer's best interest and that of its stockholders to
secure services of Executive and to provide Executive certain additional
benefits; and
WHEREAS, Employer and Executive desire to set forth in this Agreement the terms
and conditions of Executive's employment with Employer.
NOW, THEREFORE, in consideration of the mutual promises and covenants herein
contained, the parties agree as follows:
SECTION 1.
TERM. EMPLOYER AGREES TO EMPLOY
EXECUTIVE AND EXECUTIVE AGREES TO SERVE EMPLOYER, IN ACCORDANCE WITH THE TERMS
OF THIS AGREEMENT, FOR A TERM OF TWO (2) YEARS, COMMENCING ON THE DATE HEREOF.
SECTION 2.
SERVICES. SO LONG AS THIS AGREEMENT
SHALL CONTINUE IN EFFECT, EXECUTIVE SHALL USE HIS COMMERCIALLY REASONABLY
EFFORTS AND ABILITIES TO PROMOTE EMPLOYER'S BUSINESS, AFFAIRS AND INTERESTS, AND
SHALL PERFORM THE SERVICES CONTEMPLATED BY THIS AGREEMENT IN ACCORDANCE WITH
POLICIES ESTABLISHED BY THE COMPANY.
SECTION 3.
SPECIFIC POSITION; DUTIES AND
RESPONSIBILITIES. EMPLOYER AND EXECUTIVE AGREE THAT, SUBJECT TO THE PROVISIONS
OF THIS AGREEMENT, EMPLOYER WILL EMPLOY EXECUTIVE AND EXECUTIVE WILL SERVE
EMPLOYER AS A SENIOR OFFICER FOR THE DURATION OF THIS AGREEMENT. THE SPECIFIC
JOB POSITION IN WHICH EXECUTIVE SHALL SERVE SHALL BE SENIOR VICE PRESIDENT.
EXECUTIVE AGREES TO OBSERVE AND COMPLY WITH THE RULES AND REGULATIONS OF
EMPLOYER RESPECTING THE PERFORMANCE OF EXECUTIVE'S DUTIES AND AGREES TO CARRY
OUT AND PERFORM DIRECTIONS AND POLICIES OF EMPLOYER AS THEY MAY BE, FROM TIME TO
TIME, STATED EITHER ORALLY OR IN WRITING. EMPLOYER AGREES THAT THE DUTIES WHICH
MAY BE ASSIGNED TO EXECUTIVE SHALL BE USUAL AND CUSTOMARY DUTIES OF THE JOB
POSITION SET FORTH IN THIS SECTION 3, AND SHALL NOT BE INCONSISTENT WITH THE
PROVISIONS OF THE CHARTER DOCUMENTS OF EMPLOYER OR APPLICABLE LAW. EXECUTIVE
SHALL HAVE SUCH CORPORATE POWER AND AUTHORITY AS SHALL REASONABLY BE REQUIRED TO
ENABLE THE DISCHARGE OF DUTIES IN ANY OFFICE THAT MAY BE HELD.
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SECTION 4.
COMPENSATION.
(a)
Base Salary and Bonus.
(I)
BASE SALARY. DURING THE TERM OF THIS
AGREEMENT, EMPLOYER AGREES TO PAY EXECUTIVE A BASE SALARY OF AT LEAST ONE
HUNDRED TWENTY THOUSAND DOLLARS ($120,000) PER YEAR IN SEMI-MONTHLY INSTALLMENTS
ON THE SAME DATES THE OTHER SENIOR OFFICERS OF EMPLOYER ARE PAID ("BASE
SALARY").
(II)
BONUS. EMPLOYER AGREES TO PROVIDE
EXECUTIVE WITH AN INCENTIVE BONUS, BASED UPON THE BONUS AMOUNT AND PERFORMANCE
TARGETS MUTUALLY AGREED UPON AND SET FORTH ON SCHEDULE A ATTACHED HERETO.
(B)
ADDITIONAL BENEFITS. EXECUTIVE SHALL ALSO BE
ENTITLED TO ALL