Document:

EX 10.4 Stockholders Agreement

	
			
	 
	 
	Exhibit 10.4

	 
	 
	 

	 
	 
	EXECUTION VERSION

	 
	 
	 

	 

    

STOCKHOLDERS AGREEMENT

AMONG

BLOOMIN’ BRANDS, INC.

AND

CERTAIN STOCKHOLDERS OF BLOOMIN’ BRANDS, INC.
 
 

 
Dated as of April 29, 2014

	
					
	 

TABLE OF CONTENTS
	
							
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	Page
	 

	 
	 
	 
	 
	 
	 
	 

	1.
	EFFECTIVENESS; DEFINITIONS...................................................................................
	1
	 

	 
	1.1
	Closing .......................................................................................................................
	1
	 

	 
	1.2
	Definitions...................................................................................................................
	1
	 

	 
	 
	 
	 
	 
	 
	 

	2.
	GOVERNANCE.................................................................................................................
	1
	 

	 
	2.1
	Board of Directors.......................................................................................................
	1
	 

	 
	2.2
	Termination of Governance Provisions .....................................................................
	2
	 

	 
	 
	 
	 
	 
	 
	 

	3.
	REMEDIES.........................................................................................................................
	2
	 

	 
	3.1
	Generally ....................................................................................................................
	2
	 

	 
	 
	 
	 
	 
	 
	 

	4.
	AMENDMENT, TERMINATION, ETC. ..........................................................................
	3
	 

	 
	4.1
	Written Modifications ................................................................................................
	3
	 

	 
	4.2
	Effect of Termination .................................................................................................
	3
	 

	 
	 
	 
	 
	 
	 
	 

	5.
	DEFINITIONS....................................................................................................................
	3
	 

	 
	5.1
	Certain Matters of Construction..................................................................................
	3
	 

	 
	5.2
	Definitions ..................................................................................................................
	3
	 

	 
	 
	 
	 
	 
	 
	 

	6.
	MISCELLANEOUS ..........................................................................................................
	4
	 

	 
	6.1
	Authority; Effect ........................................................................................................
	4
	 

	 
	6.2
	Notices .......................................................................................................................
	4
	 

	 
	6.3
	Binding Effect, Etc......................................................................................................
	5
	 

	 
	6.4
	Descriptive Headings .................................................................................................
	5
	 

	 
	6.5
	Counterparts ...............................................................................................................
	5
	 

	 
	6.6
	Severability ................................................................................................................
	6
	 

	 
	 
	 
	 
	 
	 
	 

	7.
	GOVERNING LAW ..........................................................................................................
	6
	 

	 
	7.1
	Governing Law ..........................................................................................................
	6
	 

	 
	7.2
	Consent to Jurisdiction................................................................................................
	6
	 

	 
	7.3
	WAIVER OF JURY TRIAL.......................................................................................
	6
	 

	 
	7.4
	Exercise of Rights and Remedies...............................................................................
	7
	 

	
			
	 
	i
	 

STOCKHOLDERS AGREEMENT
This Stockholders Agreement (the “Agreement”) is made as of April 29, 2014 by and among:
		
	(i)
	Bloomin’ Brands, Inc., a Delaware corporation (the “Company”); and

		
	(ii)
	each of Bain Capital (OSI) IX, L.P., Bain Capital (OSI) IX Coinvestment, L.P., BCIP TCV, LLC, Bain Capital Integral Investors 2006, LLC and BCIP Associates - G (collectively, the “Bain Funds”).

RECITALS
1.    The Company, the Bain Funds, and certain other parties previously entered into a Stockholders Agreement dated August 7, 2012, which has been terminated as of April 29, 2014. 
2.    The parties believe that it is in the best interests of the Company and the Bain Funds to set forth their agreements on certain matters.
AGREEMENT
Therefore, the parties hereto hereby agree as follows:
		
	1.
	EFFECTIVENESS; DEFINITIONS.

1.1    Effective Date.  This Agreement shall become effective as of April 29, 2014.
1.2    Definitions.  Certain terms are used in this Agreement as specifically defined herein.  These definitions are set forth or referred to in Section 5 hereof.
		
	2.
	GOVERNANCE.

2.1    Board of Directors.
(a)    For so long as the Bain Funds Beneficially Own (directly or indirectly) Common Stock representing at least fifteen (15) percent of the then outstanding shares of Common Stock, there shall be included in the slate of nominees recommended by the Board of Directors for election as directors at each applicable annual or special meeting of shareholders at which directors are to be elected that number of individuals designated by the Bain Funds  that, if elected, will result in three (3)  Bain Directors, unless a lesser number is specified by the Bain Funds, each serving in a separate class of directors on the Board of Directors.  For so long as  the Bain Funds Beneficially Own (directly or indirectly) Common Stock representing less than fifteen (15) percent, but at least three (3) percent, of the then outstanding shares of Common Stock, there shall be included in the slate of nominees recommended by the Board of Directors for election as directors at each applicable annual or special meeting of shareholders at which directors are to be elected that number of individuals designated by the Bain Funds that, if elected, will result in two (2) Bain Directors, unless a lesser number is specified by the Bain

Funds, each serving in a separate class of directors on the Board of Directors.  The Company shall not be required to include any Bain Directors in the slate of nominees recommended by the Board of Directors for election as directors at each applicable annual or special meeting of shareholders at which directors are to be elected once the Bain Funds Beneficially Own (directly or indirectly) Common Stock representing less than three (3) percent of the then outstanding shares of Common Stock.
(b)    In the event that a vacancy is created at any time by the death, disability, retirement, resignation or removal of any Bain Director, the Company hereby agrees to take all Necessary Action to cause the vacancy created thereby to be filled as soon as practicable by a Bain Director. 
(c)    The Company shall establish and maintain an audit committee, a compensation committee and a nominating and governance committee of the Board of Directors, as well as such other board committees as the Board of Directors deems appropriate from time to time or as may be required by applicable law, the rules of any stock exchange on which the Common Stock of the Company is listed or the FINRA rules. The committees shall have such duties and responsibilities as are customary for such committees, subject to the provisions of this Agreement. Any committee or subcommittee of the Board of Directors shall include a director nominated by the Bain Funds (but only if the Bain Funds have the right to nominate two Bain Directors); provided, however, no committee will include a Bain director if such inclusion would result in the Company not being in compliance with applicable law, the rules of any stock exchange on which the Common Stock of the Company is listed or the FINRA rules..  Notwithstanding the foregoing, an audit committee of the Board of Directors shall not include any directors nominated by the Bain Funds pursuant to this Agreement.
(d)    The Company shall reimburse the members of the Board of Directors for all reasonable out-of-pocket expenses incurred in connection with their attendance at meetings of the Board of Directors and any committees thereof, including without limitation travel, lodging and meal expenses.
(e)    The Company shall maintain customary director and officer liability insurance on commercially reasonable terms.
2.2    Termination of Governance Provisions.  The provisions of this Section 2 shall terminate upon the written consent of the Bain Funds.
		
	3.
	REMEDIES.

3.1    Generally.  The Company and each party hereto shall have all remedies available at law, in equity or otherwise in the event of any breach or violation of this Agreement or any default hereunder by the Company or any party hereto.  The parties acknowledge and agree that in the event of any breach of this Agreement, in addition to any other remedies which may be available, each of the parties hereto shall be entitled to specific performance of the obligations of the other parties hereto and, in addition, to such other equitable remedies (including, without limitation, preliminary or temporary relief) as may be appropriate in the circumstances.

2

		
	4.
	AMENDMENT, TERMINATION, ETC.

4.1    Written Modifications.  This Agreement may be amended, modified or extended, and the provisions hereof may be waived, only by an agreement in writing signed by the Bain Funds.  Each such amendment, modification, extension and waiver shall be binding upon each party hereto.  In addition, each party hereto may waive any right hereunder by an instrument in writing signed by such party or holder.
4.2    Effect of Termination.  No termination under this Agreement shall relieve any Person of liability for breach prior to termination.
		
	5.
	DEFINITIONS.  For purposes of this Agreement:

5.1    Certain Matters of Construction.  In addition to the definitions referred to or set forth below in this Section 5:
(a)    The words “hereof,” “herein,” “hereunder” and words of similar import shall refer to this Agreement as a whole and not to any particular Section or provision of this Agreement;
(b)    Definitions shall be equally applicable to both nouns and verbs and the singular and plural forms of the terms defined;
(c)    The masculine, feminine and neuter genders shall each include the other; and
(d)    References to Sections, unless otherwise specified, shall refer to Sections of this Agreement.
5.2    Definitions.  The following terms shall have the following meanings:
 “Agreement” has the meaning set forth in the Preamble.
“Bain Funds” has the meaning set forth in the Preamble.
“Bain Director” has the meaning set forth in Section 2.1.
 “Beneficial Ownership” means beneficial ownership within the meaning of Rule 13d-3 under the Exchange Act, or any successor provision. The term “Beneficially Own” shall have a correlative meaning.
“Board of Directors” has the meaning set forth in Section 2.1.
 “Common Stock” means the common stock, par value $.01 per share, of the Company.
“Company” has the meaning set forth in the Preamble.

3

“Company Director” has the meaning set forth in Section 2.1.
“Exchange Act” means the Securities Exchange Act of 1934, as in effect from time to time.
 “Necessary Action” means, with respect to a specified result, all actions permitted by law necessary to cause such result, including (i) causing members of the Board of Directors (to the extent such members were nominated or designated by the Person obligated to undertake the Necessary Action, and subject to any fiduciary duties that such members may have as directors of the Company) to act in a certain manner or causing them to be removed in the event they do not act in such a manner and to adopt resolutions consistent with the foregoing, (ii) executing agreements and instruments, and (iii) making, or causing to be made, with governmental, administrative or regulatory authorities, all filings, registrations or similar actions that are required to achieve such result; provided, however, that taking Necessary Action shall not require the Person obligated to undertake the Necessary Action to vote or provide a written consent or proxy with respect to the Common Stock.
“Person” means any individual, partnership, corporation, company, association, trust, joint venture, limited liability company, unincorporated organization, entity or division, or any government, governmental department or agency or political subdivision thereof.
“Securities Act” means the Securities Act of 1933, as in effect from time to time.
6.    MISCELLANEOUS.
6.1    Authority; Effect.  Each party hereto represents and warrants to, and agrees with each other party that, the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized on behalf of such party and do not violate any agreement or other instrument applicable to such party or by which its assets are bound.  This Agreement does not, and shall not be construed to, give rise to the creation of a partnership among any of the parties hereto, or to constitute any of such parties members of a joint venture or other association.
6.2    Notices.  All notices, requests, demands, claims and other communications required or permitted to be delivered, given or otherwise provided under this Agreement must be in writing and must be delivered, given or otherwise provided to the address (or facsimile number) listed below.
	
					
	 
	If to the Company, to:
	 
	 

	 
	 
	Bloomin’ Brands, Inc.
	 
	 

	 
	 
	2202 North West Shore Boulevard
	 
	 

	 
	 
	Suite 500
	 
	 

	 
	 
	Tampa, FL 33607
	 
	 

	 
	 
	Facsimile: (813) 387-8176
	 
	 

	 
	 
	Attention: Joseph J. Kadow
	 
	 

4

	
					
	 
	with a copy to:
	 
	 

	 
	 
	Baker & Hostetler LLP
	 

	 
	 
	PNC Center
	 

	 
	 
	1900 East 9th Street
	 

	 
	 
	Cleveland, Ohio 44114
	 

	 
	 
	Facsimile: (216) 696-0740
	 

	 
	 
	Attention: John M. Gherlein     
	 

	 
	 
	                 Janet A. Spreen
	 

	 
	 
	 
	 
	 

	 
	If to the Bain Funds, to:
	 

	 
	 
	c/o Bain Capital Partners, LLC
	 

	 
	 
	John Hancock Tower
	 

	 
	 
	200 Clarendon Street
	 

	 
	 
	Boston, MA 02116
	 

	 
	 
	Facsimile: (617) 516-2010
	 

	 
	 
	Attention: Andrew Balson
	 

	 
	 
	                 Philip Loughlin
	 

	 
	 
	 
	 
	 

	 
	with a copy to:
	 
	 

	 
	 
	Ropes & Gray LLP
	 

	 
	 
	Prudential Tower
	 

	 
	 
	800 Boylston Street
	 

	 
	 
	Boston, Massachusetts 02199
	 

	 
	 
	Facsimile: (617) 951-7050
	 

	 
	 
	Attention: Julie H. Jones
	 

	 
	 
	                 Thomas Holden
	 

Each of the parties hereto shall be entitled to specify a different address by giving notice as aforesaid to each of the other parties hereto.
6.3    Binding Effect, Etc.  This Agreement constitutes the entire agreement of the parties with respect to its subject matter, supersedes all prior or contemporaneous oral or written agreements or discussions with respect to such subject matter and shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, representatives, successors and assigns.
6.4    Descriptive Headings.  The descriptive headings of this Agreement are for convenience of reference only, are not to be considered a part hereof and shall not be construed to define or limit any of the terms or provisions hereof.
6.5    Counterparts.  This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one instrument.

5

6.6    Severability.  In the event that any provision hereof would, under applicable law, be invalid or unenforceable in any respect, the parties hereto will negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner, to the end that the transactions and relationships contemplated hereby are fulfilled to the fullest possible extent.
		
	7.
	GOVERNING LAW.

7.1    Governing Law.  This Agreement shall be governed by and construed in accordance with the domestic substantive laws of the State of New York without giving effect to any choice or conflict of laws provision or rule that would cause the application of the domestic substantive laws of any other jurisdiction.
7.2    Consent to Jurisdiction.  Each party to this Agreement, by its execution hereof, (a) hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the State of New York for the purpose of any action, claim, cause of action or suit (in contract, tort or otherwise), inquiry, proceeding or investigation arising out of or based upon this Agreement or relating to the subject matter hereof, (b) hereby waives to the extent not prohibited by applicable law, and agrees not to assert, and agrees not to allow any of its subsidiaries to assert, by way of motion, as a defense or otherwise, in any such action, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, that any such proceeding brought in one of the above-named courts is improper or that this Agreement or the subject matter hereof or thereof may not be enforced in or by such court and (c) hereby agrees neither to commence or maintain any action, claim, cause of action or suit (in contract, tort or otherwise), inquiry, proceeding or investigation arising out of or based upon this Agreement, or relating to the subject matter hereof or thereof, other than before one of the above-named courts, nor to make any motion or take any other action seeking or intending to cause the transfer or removal of any such action, claim, cause of action or suit (in contract, tort or otherwise), inquiry, proceeding or investigation to any court other than one of the above-named courts, whether on the grounds of inconvenient forum or otherwise.  Notwithstanding the foregoing, to the extent that any party hereto is or becomes a party in any litigation in connection with which it may assert indemnification rights set forth in this agreement, the court in which such litigation is being heard shall be deemed to be included in clause (a) above.  Each party hereto hereby consents to service of process in any such proceeding in any manner permitted by New York law, and agrees that service of process by registered or certified mail, return receipt requested, at its address specified pursuant to Section 6.2 hereof is reasonably calculated to give actual notice.
7.3    WAIVER OF JURY TRIAL.  TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW WHICH CANNOT BE WAIVED, EACH PARTY HERETO HEREBY WAIVES AND COVENANTS THAT IT WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE) ANY RIGHT TO TRIAL BY JURY IN ANY FORUM IN RESPECT OF ANY ISSUE OR ACTION, CLAIM, CAUSE OF ACTION OR SUIT (IN CONTRACT, TORT OR OTHERWISE), INQUIRY, PROCEEDING OR INVESTIGATION ARISING OUT OF OR BASED UPON THIS AGREEMENT OR THE SUBJECT MATTER HEREOF, OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO 

6

THE TRANSACTIONS CONTEMPLATED HEREBY, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING.  EACH PARTY HERETO ACKNOWLEDGES THAT IT HAS BEEN INFORMED BY THE OTHER PARTIES HERETO THAT THIS SECTION 7.3 CONSTITUTES A MATERIAL INDUCEMENT UPON WHICH THEY ARE RELYING AND WILL RELY IN ENTERING INTO THIS AGREEMENT.  ANY PARTY HERETO MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION 7.3 WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF EACH SUCH PARTY TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY.
7.4    Exercise of Rights and Remedies.  No delay of or omission in the exercise of any right, power or remedy accruing to any party as a result of any breach or default by any other party under this Agreement shall impair any such right, power or remedy, nor shall it be construed as a waiver of or acquiescence in any such breach or default, or of any similar breach or default occurring later; nor shall any such delay, omission nor waiver of any single breach or default be deemed a waiver of any other breach or default occurring before or after that waiver.
 
[The remainder of this page is intentionally left blank.]

7

IN WITNESS WHEREOF, each of the undersigned has duly executed this Agreement (or caused this Agreement to be executed on its behalf by its officer or representative thereunto duly authorized) under seal as of the date first above written.
	
						
	THE COMPANY:
	 
	BLOOMIN’ BRANDS, INC.
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ David Deno
	 

	 
	 
	Name: David Deno
	 

	 
	 
	Title: Chief Financial and Administrative Officer

[Bloomin’ Brands – Stockholders’ Agreement]

	
						
	THE BAIN FUNDS:
	BAIN CAPITAL (OSI) IX COINVESTMENT, L.P.

	 
	 
	 
	 
	 
	 

	 
	 
	By: Bain Capital Partners IX, L.P.,

	 
	 
	 
	 
	Its general partner
	 

	 
	 
	 
	 
	 
	 

	 
	 
	By: Bain Capital Investors, LLC,

	 
	 
	 
	 
	Its general partner
	 

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ David Humphrey
	 

	 
	 
	Name: David Humphrey
	 

	 
	 
	Title: Managing Director
	 

	 
	 
	 
	 
	 
	 

	 
	 
	BAIN CAPITAL (OSI) IX, L.P.

	 
	 
	 
	 
	 
	 

	 
	 
	By: Bain Capital Partners IX, L.P.,

	 
	 
	 
	 
	Its general partner
	 

	 
	 
	 
	 
	 
	 

	 
	 
	By: Bain Capital Investors, LLC,

	 
	 
	 
	 
	Its general partner
	 

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ David Humphrey
	 

	 
	 
	Name: David Humphrey
	 

	 
	 
	Title: Managing Director
	 

	 
	 
	 
	 
	 
	 

	 
	 
	BCIP TCV, LLC
	 

	 
	 
	 
	 
	 
	 

	 
	 
	By: Bain Capital Investors, LLC,

	 
	 
	 
	 
	Its administrative member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ David Humphrey
	 

	 
	 
	Name: David Humphrey
	 

	 
	 
	Title: Managing Director
	 

[Bloomin’ Brands – Stockholders’ Agreement]

	
						
	 
	 
	BAIN CAPITAL INTEGRAL INVESTORS 2006, LLC

	 
	 
	 
	 
	 
	 

	 
	 
	By:  Bain Capital Investors, LLC,

	 
	 
	 
	 
	Its administrative member

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ David Humphrey
	 

	 
	 
	Name: David Humphrey
	 

	 
	 
	Title: Managing Director
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	BCIP ASSOCIATES-G
	 

	 
	 
	 
	 
	 
	 

	 
	 
	By: Bain Capital Investors, LLC,

	 
	 
	 
	 
	Its managing partner
	 

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ David Humphrey
	 

	 
	 
	Name: David Humphrey
	 

	 
	 
	Title: Managing Director
	 

[Bloomin’ Brands – Stockholders’ Agreement]ex10-1.htm

Exhibit 10.1

 

USAVE ACQUISITIONS, INC.

EXECUTIVE EMPLOYMENT AGREEMENT

THIS EXECUTIVE EMPLOYMENT AGREEMENT (the “Agreement”) is made between USave Acquisitions, Inc.  a Florida Corporation (the “Company”) located at 5601 Biscayne Blvd, Miami Florida 33137, and Jim Ennis, (the “Executive”) (collectively sometimes referred to as the “Parties” and individually sometimes referred to as “Each Party”). Unless other indicated, all references to Sections are to Sections in this Agreement. This Agreement is effective as of the “Effective Date” set forth in Section 14 below.

WITNESSETH:

WHEREAS, the Company desires to obtain the services of Executive, and Executive desires to be employed by the Company upon the terms and conditions hereinafter set forth;

NOW THEREFORE, in consideration of the premises, the agreements herein contained and other good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto agree as of the date hereof as follows:

1.     Employment

The Company hereby agrees to employ the Executive, and Executive hereby agrees to serve the Company, as Chief Executive Officer of the Company (‘Period of Employment”), and Director of the Company for a period of sixty (60) months beginning on the Effective Date, January 5, 2013. This Agreement is automatically renewable for successive on-year terms. Executive or the Company shall provide the other with written notice of non-renewal at least thirty (30) days, but not more than sixty (60) days, before the end of the period of Employment.

        1.  Scope of Employment:

	
(a)

	
During the Employment, Executive will serve as Chief Executive Officer of the Company. In that connection, Executive will (i) devote his time, full time attention and energies to the business of the Company and will diligently and to the best of his ability perform all duties incident to his employment hereunder; (ii) use his best efforts to promote the interest and goodwill of the Company; and (iii) perform such other duties commensurate with his office as the Board of Directors of Company may from time to time assign to his.

	
(b)

	
Section 2 (a) shall not be construed as preventing from Executive from (i) serving on corporate, civic or charitable board or committees or (ii) making investments in other businesses or enterprises; provided that in not event hall any such service, business activity or investment require the provision of substantial services by Executive to the operations or the affairs of such businesses or enterprises such that hereunder; and subject to Section 6 or (iii) giving Executive the ability to consult with and assist other companies and individuals so as not to be adverse or compete with the Company. Notwithstanding the above, nothing contained here end shall prohibit Executive from (a) consulting, speaking or lecturing in the public forum for a fee, (c) acting as consultant or the like so as long as the interests of said clients do not conflict with those of the Company.

 

 

  

  

  

2.     Compensation and Benefits During Employment

During the Employment, the Company shall provide compensation to Executive as follows:

	
        (a)

	
The Company shall pay Executive base compensation of $180,000. The Company shall be responsible for withholding for all taxes to the Internal Revenue Service as well as any and all other taxes payable in the United States including taxes payable to any state or local jurisdiction.

 

	
        (b)

	
The Company shall reimburse Executive for business expenses incurred by Executive in connection with Employment in accordance with the Company’s then-current policies.

	
        (c)

	
Executive will be entitled to participate in any health insurance or other employee benefit plan which the Company may adopt in the future.

 

	
        (d)

	
Executive will be entitled to thirty (30) days paid time off (PTO) per year. PTO days shall begin on 1st of January for each successive year. Unused PTO days shall expire on December 31 of each year and shall not roll-over into the next year. Other than the use of PTO days of illness or personal emergencies, PTO days must be pre-approved by Company.

	
        (e)

	
Executive will be entitled to participate in any incentive program or discretionary bonus program of the Company which may be implemented in the future by the Board of Directors.

 

	
        (f)

	
Executive will be entitled to participate in any stock option plan of the Company which may be approved in the future by the Board of Directors.

	
        (g)

	
The Company hereby agrees to maintain a directors and officer’s insurance policy of at least $1,000,000 coverage in full force and effect during Executive’s period of Employment including renewals of this Agreement, and for a period no less than two years following Termination.

 

	
        (h)

	
Incentive Compensation. In addition to the foregoing, Executive shall participate in the Company’s Management Incentive Compensation (“MICP”) Performance Based Incentive Plan maintained by the Company if and when such plan is formed.

	
        (i)

	
Bonus: Executive shall receive bonus each year based on the execution of this Agreement. The Parties acknowledge and agree that the Bonus shall be paid based on the performance of the Company each year ending December 31. The Bonus will be a minimum of 25% but not exceed 75% of Annual Salary.

 

	
        (j)

	
Salary Deferral: The Company and Executive mutually agree that the Executive shall mutually agree to defer salary up to 50% of annual base compensation of $180,000 based on the working capital needs of the Company. The Parties acknowledge and agree that the Executive will be paid 100% of annual base compensation of $180,000 based on the working capital needs of the Company and as soon as the Company has sufficient working capital to do so. The Parties acknowledge and agree that the Executive will have the option to convert Salary Deferral to restricted common stock based on the working capital of the Company. If the Executive elects to convert Salary Deferral to warrants, stock options or restricted common stock, the conversion price will be based on the previous thirty (30) day average closing price of the Company Stock.

	
        (k)

	
Expense Reimbursement: Executive shall receive $60,000 expense reimbursement subsequent to the execution of this Agreement and the successful working capital of the company. The Parties acknowledge and agree that the expense reimbursement shall be paid to the Executive as soon as the Company has sufficient working capital to do so, but in no case later than December 31, 2014. The Parties acknowledge and agree that the Executive will have the option to convert expense reimbursement to restricted common stock based on the working capital of the Company. If the Executive elects to convert expense reimbursement to restricted common stock, the conversion price will be based on the one hundred thirty (30) day average closing price of the Company Stock prior to the conversion.

  

  

  

	
        (l)

	
Stock Options: In the event that the Company establishes a Company Stock Option Program (“Stock Option”); the Executive shall be granted a stock option to purchase 3,000,000 shares of the Company’s Common Stock on the date of grant at an exercise price equal to the current fair market value as determined by the Board of Directors. The Options shall be vest as to 14% of the shares subject to the Option one year from date of the grant and 14% per year for remaining years of the Period of Employment.

Any act or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or based upon the advice of counsel for the Company shall be conclusively presumed to be done or omitted to be done, by Executive in good faith and in the best interests of the Company and thus shall not be deemed grounds for Termination for Cause.

3.     Confidential Information

	
(a)

	
Executive acknowledges that the law provides the Company with protection for its trade secrets and confidential information. Executive will not disclose, directly or indirectly any of the Company’s confidential business information or confidential technical information to anyone without authorization from the Company’s management. Executive will not use any of the Company’s confidential business information or confidential technical information in any way, either during or after the Employment with the Company, except as required in the course of the Employment.

	
(b)

	
Executive will strictly adhere to any obligation that may be owed to former employers insofar as Executive’s use or disclosure of their confidential information is concerned.

	
(c)

	
Information will not be deemed part of the confidential information restricted by this Section 4 if Executive can show that: (i) the information was in Executive’s possession or within Executive’s knowledge before the Company disclosed it to Executive; (ii) the information was or became generally known to those who could take economic advantage of it; (iii) Executive obtained the information from a party having the right to disclose it to Executive without violation of any obligation to the Company or (iv) Executive is required to disclose the information pursuant to legal process (e.g. a subpoena), provided that Executive notifies the Company immediately upon receiving or becoming aware of the legal process in question. No combination of information will be deemed to be within any of the four exceptions in the previous sentence, however, whether or not the component parts of the combination are within one or more exceptions, unless the combination itself and its economic value and principles of operation are themselves within such an exception or exceptions.

	
(d)

	
All originals and all copies of any drawing, blueprints, manuals, reports, computer programs or data, notebooks, notes, photographs, and other recorded, written or printed matter relating to research, manufacturing operations, or business of the Company made or received by Executive during the Employment are the property of the Company. Upon termination of Employment, whether or not for Cause, Executive will immediately deliver to the Company all property of the Company which may still be in Executives possession. Executive will not remove or assist in removing such property from the Company’s premises under any circumstances either during the Employment or after Termination thereof, except as authorized by the Company’s management.

  

  

  

	
(e)

	
For a period of one (1) year after the date of the Termination of the Agreement, Executive will not, either directly or indirectly hire or employ or participate in offering employment to any person who at the time of such Termination or at any time during such one year period following person who at the time of such Termination was an employee of the Company without the prior written consent of the Company.

 

4.     Ownership of Intellectual Property:

	
(a)

	
The Company will be the sole owner of any and all of Executive’s Inventions that are related to the Company’s business, as defined in more detail below.

	
(b)

	
For purposes of this Agreement, “Inventions” means all inventions, discoveries, and improvements (including, without limitation, any information relating to manufacturing techniques,, processes, formulas, developments or experimental works, work in progress, or business trade secrets), along with any and all other work product relating thereto.

	
(c)

	
An Invention is “related to the Company’s business” (“Company-Related Invention”) if it is made, conceived, or reduced to practice by Executive (in whole or in part, either alone or jointly with others, whether or not during regular working hours), whether or not potentially patentable or copyrightable in the U.S. or elsewhere and it either: (i) involves equipment, supplies, facilities, or trade secret information of the Company; (ii) involves the time for which Executive was or is to be compensated by the Company; (iii) relates to the business of the Company or to its actual or demonstrably anticipated research and development; or (iv) results, in whole or in part, from work performed by Executive for the Company.

	
(d)

	
Executive will promptly disclose to the Company or its nominee(s), without additional compensation, all Company-Related Inventions.

	
(e)

	
Executive will assist the Company, at the Company’s expense, in protecting any intellectual property rights that may be available anywhere in the world for such Company-Related Inventions, including signing U.S. or foreign patent applications, oaths or declarations relating to such patent applications and similar documents.

	
(f)

	
To the extent that any Company-Related Invention is eligible under applicable law to be deemed a “work made for hire” or otherwise to be owned automatically by the Company, it will be deemed as such, without additional compensation to Executive. In some jurisdictions, Executive may have a right, title, or interest (“Right,” including without limitation all right, title, and interest arising under patent law, copyright law, trade-secret law, or otherwise, anywhere in the world, including the right to sue for present or past infringement) in certain Company-Related Inventions that cannot be automatically owned by the Company. In that case, if applicable law permits Executive to assign Executive’s Rights(s) in future Company-Related Inventions at this time, then Executive hereby assigns any and all such Right(s) to the Company, without additional compensation to Executive; if no then Executive agrees to assign any and all such Right(s) in any such future Company-Related Inventions to the Company or its nominees(s) upon request, without additional compensation to Executive.

  

  

  

5.      Legal Fees and Expenses:

In the event of a claim, dispute, lawsuit, arbitration, or other dispute-resolution proceeding between the Company and Executive arising out of or relating to this Agreement, the prevailing party, in the proceeding as a whole and/or in any interim or ancillary proceedings (e.g. opposed motions, including without limitation motions for preliminary or temporary injunctive relief) will be entitled to recover its reasonable attorneys’ fees and expenses unless the our or other forum determines that such a recovery would not serve the interest of justice.

6.      Successors:

	
(a)

	
This Agreement shall inure to the benefit of and be binding upon (i) the Company and its successors and assigns; (ii) Executive and Executive’s heirs and legal representatives, except that Executive’s duties and responsibilities under this Agreement are of a personal nature and will not be assignable or delegable in whole or in part; and (iii) Executive Parties as provided in Section 10.

 

	
(b)

	
The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation, acquisition or otherwise) to all or substantially all of the business and or assets of the Company to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. As used in this Agreement, ‘the company” shall mean Company as hereinbefore defined and any successor to its business and or assets as aforesaid which assumes and agrees to perform this Agreement by operation of law, or otherwise.

7.     Arbitration:

	
(a)

	
Except as set forth in paragraph (b) of this Section 9 or to the extent prohibited by applicable law, any dispute, controversy or claim arising out of or relating to this Agreement will be submitted to binding arbitration before a single arbitrator in accordance with the National Rules for Resolution of Employment Disputes of the American Arbitration Associations in effect on the date of the demand for arbitration. The arbitration shall take place before a single arbitrator, who sill preferably but not necessarily is a lawyer. Unless otherwise agreed by the parties, the arbitration shall take place in Miami County, Florida. The arbitrator is hereby directed to take all reasonable measures not inconsistent with the interests of justice to expedite, and minimize the cost of, the arbitration proceedings.

	
(b)

	
To protect inventions, trade secrets, or other confidential information of Section 4, and or to enforce the non-competition provisions of Section 6, the Company may seek temporary, preliminary and/or permanent injunctive relief in a court of competent jurisdiction, in each case, without waiving its right to arbitration.

	
(c)

	
At the request of either party, the arbitrator may take any interim measures he/she deems necessary with respect to the subject matter of the dispute, including measures for the preservation of confidentiality set forth in this Agreement.

	
(d)

	
Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction.

  

  

  

10.   Indemnification:

	
(a)

	
The Company agrees to indemnify and hold harmless Executive, his nominees and/or assigns (a references in this Section 10 to Executive also includes a reference to Executive’s nominees and/or assigns) against any and all losses, claims, damages, obligations, penalties, judgments, awards, liabilities, costs, expenses and disbursements (incurred in any and all actions, suites, proceedings, and investigations in respect thereof and any expenses and disbursements in giving testimony or furnishing documents in response to a subpoena or otherwise), including without limitation, the costs, expenses and disbursement, as and when incurred, of investigating, preparing or defending, any such action, suit, proceeding or investigation that is in any way related to the Executive’s employment with the Company. Such indemnification does not apply to acts performed by Executive which are criminal in nature. The Company also agrees that Executive shall not have any liability (whether direct or indirect, in contract or tort, or otherwise) to the Company, for or in connecting with, the engagement of the Executive under the Agreement, except to the extent that any such liability resulted primarily and directly from Executive’s gross negligence and willful misconduct.

	
(b)

	
These indemnification provisions shall be in addition to any liability which the Company may otherwise have to Executive or the persons indemnified below in this sentence and shall extend to the following; the Executive, his affiliated entities, partners, employees, legal counsel, agents, and controlling persons (within the meaning of the federal securities laws), and the officers, directors, employees, legal counsel, agents, and controlling persons of any of them (collectively, “The Executive Parties).

	
(c)

	
If any action, suit, proceeding or investigation is commenced, as to which any of the Executive parties propose indemnification under the Agreement, they shall notify the Company with reasonable promptness; provided however, that any failure to so notify the Company shall not relieve the Company from its obligation hereunder. The Executive Parties shall have the right to retain counsel of their own choice (which shall be reasonable acceptable by the Company) to represent them and the Company shall pay fees, expenses and disbursements of such counsel; and such counsel shall, to the extent consistent with its professional responsibilities, cooperate with the Company and any counsel designated by the Company. The Company shall be liable for any settlement of any claim against the Executive Parties made with the Company’s written consent, which consent shall not be unreasonably withheld. The Company shall not, without the prior written consent of the party seeking indemnification, which shall not be reasonably withheld, settle or compromise any claim, or permit a default or consent to the entry of any judgment in respect thereof, unless such settlement, compromise, or consent includes, as unconditional term thereof, the giving by the claimant to the party seeking indemnification of an unconditional release from all liability in respect of such claim.

 

	
(d)

	
The indemnification provided by this Section 10 shall not be deemed exclusive of or to preclude, any other rights to which those seeking indemnification may at any time be entitled under the Company’s Articles of Incorporation, Bylaws, any law, agreement or vote of shareholders or disinterested Directors, or otherwise, or under any policy or policies of insurance purchased and maintained by the Company on behalf of Executive, both as to action in his Employment and as to action in any other capacity.

  

  

  

	
(e)

	
Neither Termination nor completion of the Employment shall effect these indemnification provisions which shall then remain operative and in full force and effect.

	
(f)

	
The Company agrees to fully indemnify, defend and hold harmless Executive, his heirs, successors and assigns against any and all losses, claims, demands, damages, investigations, audits, obligations, penalties, judgments, awards, liabilities, costs, expenses and disbursements, including reasonable attorney fees and expenses, with respect to any and all state or federal tax matters, and/or any other matters related to the Executive’s employment with the Company, including the costs and expenses related to investigating, preparing or defending any such matter.

11.    Termination:

This Agreement and the employment relationship created hereby will terminate (i) upon disability or death of Executive under Section 11 (a) or 11 (b); (ii) with cause under Section 11 (c); (iii) for good reason under Section 11 (d); or (iv) without cause under Section 11 (e).

	
(a)

	
Disability: Company shall have the right to terminate the employment of Executive under this Agreement for disability in the event Executive suffers an injury, illness, or incapacity of such character as to substantially disable his from performing his duties without reasonable accommodation by Executive hereunder for a period of more than (30) consecutive days upon Company giving at least thirty (30) days written notice of termination.

	
(b)

	
Death: This agreement will terminate on the Death of the Executive.

	
(c)

	
With Cause: Company may terminate this Agreement at any time because of, (i) the conviction of Executive of an criminal act or acts constituting a felony; or (ii) Executive’s gross negligence in the performance of his duties hereunder.

	
(d)

	
Good Reason. The Executive may terminate his employment for “Good Reason” by giving Company ten (10) days written notice if:

(ii) He is assigned, without his express written consent, any duties material inconsistent with his positions, duties, responsibilities or status with Company as of the date hereof, or a change in his reporting responsibilities or title as in effect as of the date hereof; (ii) his annual compensation is reduced or (iii) Company does not pay an material amount of compensation due hereunder and then fails either to pay such amount within the ten (10) day notice period required for terminate hereunder or to contest in good faith such notice. Further, if such contest is not resolved

Obligation of Company Upon Termination

	
(a)

	
In the event of the termination of the Executive’s employment pursuant to Section 11 (a), (b), or (c), Executive will be entitled only to the compensation earned by his hereunder as of the date of such termination (plus life insurance or disability benefits).

	
(b)

	
In the event of the termination of Executives employment pursuant to Section 11 (d) or (e), Executive will be entitled to receive as severance pay, an amount equal to $180,000 in addition to all unpaid payments of earned based compensation, immediate vesting of all stock options, incentive compensation, signing bonus, bonuses under this agreement, in addition to all of the future salary payment and bonus payments through the end of the employment period in one lump sum immediately upon termination and in no event later than ten (10) days following such Termination. In addition, Executive shall also be entitled to receive the full pro-rata portion of any incentive compensation pursuant to Section 3 (i) of this Agreement.

  

  

  

Other Provisions

	
(a)

	
All notices and statements with respect to this Agreement must be in writing. Notices to the Company shall be delivered to he Chairman of the Board or any vice president of the Company. Notices to Executive may be delivered to Executive in person or sent to Executive’s then current mailing address as indicated in the Company’s records.

	
(b)

	
This agreement sets for the entire agreement of the parties concerning the subjects covered herein; there are no promises, understandings, representations, or warranties of any kind concerning those subjects except as expressly set forth in this Agreement.

	
(c)

	
Any modification of this Agreement must be in writing and signed by all parties; any attempt to modify this Agreement, orally or in writing, not executed by all parties will be void.

	
(d)

	
If any provision of this agreement, or its application to anyone or under any circumstances, is adjudicated to be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability will not affect any other provision or application of this Agreement which can be given effect without the invalid or unenforceable provision or application and will not invalidate or render unenforceable such provision or application in any other jurisdiction.

	
(e)

	
This agreement will be governed and interpreted under the laws of the United States of America and the laws of the State of Florida as applied to contracts made and carried out in Florida by residents of New York.

	
(f)

	
No failure on the part of any party to enforce any provisions of this Agreement will act as a waiver of the right to enforce that provision.

	
(g)

	
Section headings are for convenience only and shall not define or limit the provisions of this Agreement.

	
(h)

	
This Agreement may be executed in several counterparts, each of which is an original. It shall not be necessary in making proof of this Agreement or any counterpart hereof to produce or account for any of the other counterparts. A copy of this agreement signed by one party and faxed to another party shall be deemed to have been executed and delivered by the signing party as though an original. A photocopy of this Agreement shall be effective as an original for all purposes.

  

  

  

 

Summary of Terms of Employment

Effective Date:       January 5, 2013

Term & Commitment:             Sixty Months. Full Time, renewable

Official Position:                     Chief Executive Officer

Salary:                                       $180,000

USAVE ACQUISITIONS, INC.

____________________________

Jim Ennis

EXECUTIVE

_______________________

Jim Ennis

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