Document:

Unassociated Document

    EXHIBIT
      10.1

    FARO
      TECHNOLOGIES, INC. 

    EMPLOYMENT
      AGREEMENT

    

    ARTICLE
      I

    EFFECTIVE
      DATE AND PURPOSE

     

    This
      Employment Agreement (the “Agreement”)
      is
      made and entered into effective as of October 20, 2006 by and between FARO
      Technologies, Inc. (the “Company”)
      and
      JAY FREELAND (hereinafter referred to as the “Executive”).
      The
      Company believes that an effective and stable management team is essential
      to
      promoting the best interests of the Company and its shareholders. Given the
      Executive’s strong performance and diligent work efforts, the Company wishes to
      assure Executive’s continued services in the event of a change of control. As a
      change in control of the Company may adversely affect Executive’s employment
      security the Company desires to provide an incentive for the Executive to remain
      employed with the Company during the period leading up to any such change of
      control, and to encourage the Executive to devote full and continued attention
      to the business of the Company and use best efforts to consummate any such
      change of control. 

    

    ARTICLE
      II

    DEFINITIONS

     

    Section
      2.1  Act
      means
      the Securities Exchange Act of 1934, as amended. 

     

    Section
      2.2  Affiliate
      and Associate
      shall
      have the respective meanings ascribed to such terms in Rule 12b-2 of the General
      Rules and Regulations of the Act.

     

    Section
      2.3  Beneficial
      Owner.
      For
      purposes of this Agreement, a Person shall be deemed to be the “Beneficial
      Owner” of any securities: 

     

    (a)  which
      such Person or any of such Person’s Affiliates or Associates has the right to
      acquire (whether such right is exercisable immediately or only after the passage
      of time) pursuant to any agreement, arrangement or understanding, or upon the
      exercise of conversion rights, exchange rights, rights, warrants or options,
      or
      otherwise; provided,
      however,
      that a
      Person shall not be deemed the Beneficial Owner of, or to beneficially own,
      securities tendered pursuant to a tender or exchange offer made by or on behalf
      of such Person or any of such Person’s Affiliates or Associates until such
      tendered securities are accepted for purchase; 

     

    (b)  which
      such Person or any of such Person’s Affiliates or Associates, directly or
      indirectly, has the right to vote or dispose of or has “beneficial ownership” of
      (as determined pursuant to Rule 13d-3 of the General Rules and Regulations
      under
      the Act), including pursuant to any agreement, arrangement or understanding;
      provided,
      however,
      that a
      Person shall not be deemed the Beneficial Owner of, or to beneficially own,
      any
      security under this Subsection (b) as a result of an agreement, arrangement
      or
      understanding to vote such security if the agreement, arrangement or
      understanding: (i) arises solely from a revocable proxy or consent given to
      such
      Person in response to a public proxy or consent solicitation made pursuant
      to,
      and in accordance with, the applicable rules and regulations under the Act
      and
      (ii) is not also then reportable on a Schedule 13D under the Act (or any
      comparable or successor report); or 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c)  which
      are
      beneficially owned, directly or indirectly, by any other Person with which
      such
      Person or any of such Person’s Affiliates or Associates has any agreement,
      arrangement or understanding for the purpose of acquiring, holding, voting
      (except pursuant to a revocable proxy as described in Subsection (b)(i) above)
      or disposing of any voting securities of the Company.

     

    Section
      2.4  Board
      (or Board of Directors)
      means
      the Board of Directors of the Company.

     

    Section
      2.5  Change
      of Control
      means
      the occurrence of any of the following: 

     

    (a)  any
      Person (other than (i) an Affiliate of the Company, (ii) any employee benefit
      plan of the Company or any Affiliate thereof, or (iii) any Person organized,
      appointed or established pursuant to the terms of any such benefit plan) is
      or
      becomes the Beneficial Owner of securities of the Company representing at least
      thirty percent (30%) of either (i) the combined voting power of the Company’s
      then outstanding securities; or (ii) the outstanding shares of the then
      outstanding shares of common stock of the Company; or

     

    (b)  a
      change
      in the composition of the Company’s Board of Directors such that the individuals
      who, as of the effective date of this Agreement, constitute the Board (such
      Board hereinafter referred to as the “Incumbent Board”) cease for any reason to
      constitute at least a majority of the Board; provided however, for purposes
      of
      this definition, that any individual who becomes a member of the Board
      subsequent to the effective date hereof, whose election or nomination for
      election was approved by a vote of at least a majority of those individuals
      who
      are members of the Board and who were also members of the Incumbent Board (or
      deemed to be such pursuant to this proviso) shall be considered as though such
      individual were a member of the Incumbent Board; but provided further, that
      any
      such individual whose initial assumption of office occurs as a result of either
      an actual or threatened election contest (as such terms are used in Rule 14a-11
      of Regulation 14A promulgated under the Exchange Act) or other actual or
      threatened solicitation of proxies or consents by or on behalf of a Person
      other
      than the Board shall not be so considered as a member of the Incumbent Board;
      or

     

    (c)  the
      approval by the shareholders of the Company of any one of the following
      transactions:

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    
      	(i)  	
              a
                reorganization, merger or consolidation of the Company with any other
                Person, other than one which results in the voting securities of
                the
                Company outstanding immediately prior to such merger or consolidation
                continuing to represent (either by remaining outstanding or by being
                converted into voting securities of the surviving entity or any parent
                there) at least 50% of the combined voting power of the voting securities
                of the Company or such surviving entity or any parent thereof outstanding
                immediately after such merger or consolidation;
                or

            

    

     

    
      	(ii)  	
              an
                agreement for the sale of disposition by the Company of all or
                substantially all of the Company’s assets, other than a sale or
                disposition by the Company of all or substantially all of the Company’s
                assets to an entity, at least 75% of the combined voting power of
                the
                voting securities of which are owned by shareholders of the Company
                in
                substantially the same proportions as their ownership of the Company
                immediately prior to such sale.

            

    

     

    (d)  Notwithstanding
      the foregoing, no “Change in Control” shall be deemed to have occurred if there
      is consummated any transaction or series of integrated transactions immediately
      following which the record holders of the common stock of the Company
      immediately prior to such transaction or series of transactions continue to
      have
      substantially the same proportionate ownership in an entity which owns all
      or
      substantially all of the assets of the Company immediately following such
      transaction or series of transactions.

     

    Section
      2.6  Cause
      shall be
      determined by the Board of the Company means (a) an act of fraud or embezzlement
      against the Company or acceptance of a bribe or kickback; (b) the conviction
      or
      a plea of nolo
      contendere
      by the
      Executive of a felony or of a crime involving fraud, dishonesty, violence or
      moral turpitude; (c) willful and continued refusal to substantially perform
      assigned duties (other than any refusal resulting from incapacity due to
      physical or mental illness or Disability); and (d) willful engagement in gross
      misconduct materially and demonstrably injurious to the Company.

     

    Section
      2.7  Change
      of Control Date
      means
      the first date on which a Change of Control has occurred.

     

    Section
      2.8  Code
      means
      the Internal Revenue Code of 1986, including any amendments or successor tax
      codes. Any reference to a specific provision of the Code shall mean any
      successor provision thereto.

     

    Section
      2.9  Disability
      means a
      disability that would entitle the Executive to payment of monthly disability
      payments under any Company long-term disability plan. 

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    Section
      2.10  Good
      Reason
      means
      any of the following to which the Executive has not consented in writing: (a)
      a
      material breach by the Company of the Company’s obligations to the Executive
      under this Agreement, which breach is not cured to the Executive’s reasonable
      satisfaction within ten (10) days after written notification to the Company
      describing in reasonable detail such breach and stating that such notice is
      being delivered pursuant to this Agreement; (b) a reduction in the Executive’s
      base salary to an amount below the base annual salary in effect as of the date
      of this Agreement; (c) a material reduction in the Executive’s benefits,
      including retirement, Company-paid insurance, sick leave, expense reimbursement
      and vacation time, as provided by the Company (except consistent with a general
      reduction of such benefits to executives of the Company as a whole); (d) an
      ongoing material and substantial diminution in the duties of the Executive
      not
      consistent with that of an executive with his position and duties; or (e)
      relocation of the Executive’s principal office to a location more than 25 miles
      from the Company’s headquarters on the date of this Agreement.

     

    Section
      2.11  Person
      means
      any individual, firm, partnership, corporation or other entity, including any
      successor (by merger or otherwise) of such entity, or a group of any of the
      foregoing acting in concert.

     

    ARTICLE
      III

    EVENTS
      UPON CHANGE OF CONTROL

     

    Section
      3.1  Change
      of Control Payment.
      If the
      Executive is actively employed by
      the
      Company or any of its Affiliates on the day immediately preceding the Change
      of
      Control Date, the Executive shall receive a Change of Control payment equal
      to
      2.99 times the greater of (A) Executive’s base annual salary as of the date of
      this Agreement; and (B) Executive’s then-current base annual salary. The payment
      described herein shall be paid to the Executive in a cash lump sum on, or as
      soon as practicable after, the Change of Control Date. 

     

    Section
      3.2  Accelerated
      Vesting of Options.
      Upon a
      Change of Control, all unvested options with respect to the Company’s stock held
      by the Executive shall vest and become immediately exercisable and shall be
      exercisable for a period ending on the later of (A) the fifth anniversary of
      the
      Change of Control Date or (B) the last date that such option would otherwise
      be
      exercisable under the terms of the option agreement or the plan pursuant to
      which such option was granted; provided, that in no event shall any option
      be
      exercisable after the expiration of the original term of the
      option.

     

    ARTICLE
      IV

    SEVERANCE
      PAYMENTS

     

    Section
      4.1  Severance
      Payments Upon Certain Terminations of Employment.
      Upon
      the termination of the Executive’s employment by the Executive for Good Reason
      or by the Company without Cause, the Executive shall be entitled to the
      following severance:

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

     

    (a)  The
      Company shall make payments to the Executive of continued salary for one year
      at
      a rate equal to the Executive’s base salary in effect at the time of such
      termination, payable pursuant to normal payroll procedures of the
      Company;

     

    (b)  The
      Company shall pay to Executive, in a lump sum and as promptly as practicable
      after such termination, Executive’s earned but unpaid compensation accrued
      through the date of such termination;

     

    (c)  All
      of
      the Executive’s unvested options for shares of the Company’s stock and all of
      the Executive’s unvested shares of restricted shares of the Company’s stock
      shall automatically vest in full as of the date of such
      termination;

     

    (d)  Until
      the
      earlier of (i) twelve (12) months following termination; or (ii) the Executive’s
      securing coverage, through another employer, of benefits similar to those
      provided by the Company, the Company shall provide the same coverage to the
      Executive under the Company’s “employee welfare benefit plans” (as defined in
      Section 3(1) of the Employee Retirement Income Security Act of 1974) as is
      provided by the Company to comparable employees, or, in lieu of such coverage,
      the Company may reimburse the Executive on a net after-tax basis, for the cost
      of individual insurance coverage for the Executive and his dependents under
      a
      policy or policies that provide benefits not less favorable than the benefits
      provided under such employee welfare benefit plans; and

     

    (e)  The
      Company also shall pay to the Executive all reasonable attorney’s fees and
      expenses incurred by the Executive in disputing in good faith any issue
      hereunder relating to the termination of Executive’s employment, in seeking in
      good faith to obtain or enforce any benefit or right provided by this Agreement
      or in connection with any tax audit or proceeding to the extent attributable
      to
      the application of Section 4999 of the Code to any payment or benefit provided
      hereunder. Such payments shall be made within five (5) business days after
      delivery of the Executive’s written requests for payment accompanied with such
      evidence of fees and expenses incurred as the Company reasonably may
      require.

     

    The
      Executive shall not be required to mitigate the amount of any payment or benefit
      contemplated by this Agreement (whether by seeking new employment or in any
      other manner). No such payment shall be reduced by earnings that the Executive
      may receive from any other source.

    

    ARTICLE
      V

    NONQUALIFIED
      DEFERRED COMPENSATION OMNIBUS PROVISION

     

    Section
      5.1  General.
      It is
      intended that any payment or benefit which is provided pursuant to or in
      connection with this Agreement which is considered to be nonqualified deferred
      compensation subject to Section 409A of the Code shall be paid and provided
      in a
      manner, and at such time and in such form, as complies with the applicable
      requirements of Section 409A of the Code to avoid the unfavorable tax
      consequences provided therein for noncompliance. In connection with effecting
      such compliance with Section 409A of the Code, the following shall
      apply:

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

    (a)  Notwithstanding
      any other provision of this Agreement, the Company is authorized to amend this
      Agreement, to delay the payment of any monies and/or provision of any benefits
      in such manner as may be determined by it to be necessary or appropriate to
      comply, or to evidence or further evidence required compliance, with Section
      409A of the Code (including any transition or grandfather rules
      thereunder);

     

    (b)  If
      the
      Executive is a “key employee” of a publicly traded corporation within the
      meaning of Section 416(i) and any payment or provision of any benefit hereunder
      is subject to Section 409A in connection with a “separation from service” within
      the meaning of the U.S. Treasury Regulations promulgated under Section 409A,
      no
      payment or benefit shall be made or provided until the earlier of (i) the
      expiration of the six (6) month period measured from the date of the Executive’s
“separation from service”; or (ii) the date of the Executive’s death (the “409A
      Payment Date”). In the event such payments are otherwise due to be made
      installments or periodically during the period from “separation of service” to
      the 409A Payment Date (the “Deferral Period”), the payments which would
      otherwise have been made during the Deferral Period shall be accumulated and
      paid in a lump sum upon the 409A Payment Date, and the balance of the payments
      shall be made as otherwise scheduled. In the event benefits are required to
      be
      deferred, any such benefit may be provided during the Deferral Period at the
      Executive’s expense, with the Executive having a right to reimbursement from the
      Company once the Deferral Period ends, and the balance of the benefits shall
      be
      provided as otherwise scheduled.

    

    ARTICLE
      VI

    SUCCESSORS
      AND ASSIGNS

     

    Section
      6.1  Successors
      and Assigns of Company.
      If the
      Company sells, assigns or transfers all or substantially all of its business
      and
      assets to any Person or if the Company merges into or consolidates or otherwise
      combines (where the Company does not survive such combination) with any Person
      (any such event, a "Sale of Business"), then the Company shall assign this
      Agreement to such Person and cause such Person to expressly assume and agree
      to
      perform from and after the date of such assignment all of the terms, conditions
      and provisions imposed by this Agreement upon the Company. In case of such
      assignment by the Company and the assumption and agreement by such Person,
      "Company" as used in this Agreement shall thereafter mean the Person that
      assumes and agrees to perform this Agreement as provided for in this Section
      or
      that otherwise becomes bound by all the terms and provisions of this Agreement
      by operation of law, and this Agreement shall inure to the benefit of, and
      be
      enforceable by, such Person. The Executive shall, in his or her discretion,
      be
      entitled to proceed against any or all of such Persons, any Person which
      theretofore was such a successor to the Company and the Company (as so defined)
      in any action to enforce any rights of the Executive. Except as provided in
      this
      Section, this Agreement shall not be assignable by the Company. 

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

     

    Section
      6.2  Successors
      and Assigns of Executive.
      The
      Executive shall not have the right to assign, transfer, alienate, anticipate,
      pledge or encumber any portion of a payment due hereunder, nor shall such
      amounts be subject to seizure by legal process by any creditor of such
      Executive. All rights of the Executive under this Agreement shall inure to
      the
      benefit of and be enforceable by the Executive's personal or legal
      representatives, executors, administrators, heirs and beneficiaries. In the
      event of the Executive's death, all amounts payable to the Executive under
      the
      Agreement if the Executive had lived, shall be paid to the Executive's estate,
      heirs or representatives.

     

    ARTICLE
      VII

    MISCELLANEOUS

     

    Section
      7.1  Notices.
      Notices
      given pursuant to this Agreement shall be in writing and shall be deemed given
      when personally delivered or sent by telecopy transmission or three (3) days
      after being sent by
      United
      States mail, postage prepaid to the parties at their respective address set
      forth below:

     

    To
      the
      Company:

    

    FARO
      Technologies, Inc.

    Attention:
      Chief Financial Officer

    125
      Technology Park

    Lake
      Mary, FL
      32746

    

    To
      the
      Executive:

    

    To
      Executive’s address contained in the Company’s records.

    

    Section
      7.2  Severability.
      The
      provisions of this Agreement shall be regarded as divisible, and if any of
      such
      provisions or any part are declared invalid or unenforceable by a court of
      competent jurisdiction, the validity and enforceability of the remainder of
      such
      provisions or parts and the applicability thereof shall not be affected
      thereby.

     

    Section
      7.3  Withholding.
      The
      Company shall be entitled to withhold from amounts to be paid to the Executive
      any federal, state or local withholding or other taxes or charges which it
      is
      from time to time required to withhold. The Company shall be entitled to rely
      on
      an opinion of nationally recognized tax counsel if any question as to the amount
      or requirement of any such withholding shall arise.

     

    Section
      7.4  Entire
      Agreement.
      This
      Agreement embodies the entire Agreement and understanding between the Company
      and Executive relating to the subject matter hereof.

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

     

    Section
      7.5  Governing
      Law; Resolution of Disputes.
      The
      laws
      of the State of Florida and the federal laws of the United States of America,
      excluding the laws of those jurisdictions pertaining to resolution of conflicts

      with laws of other jurisdictions, govern the validity, enforcement,
      construction, and interpretation of this Agreement. In the event that there
      is
      any litigation under this Agreement, Executive and the Company (a) consent
      to
      the personal jurisdiction of the state and federal courts having jurisdiction
      in
      Orange County, Florida, (b) stipulate that the proper, convenient, and exclusive
      venue for any legal proceeding arising out of this Agreement is Orange County,
      Florida, for a state court proceeding, or the Middle District of Florida,
      Orlando Division, for a federal court proceeding, and (c) waive any defense,
      whether asserted by motion or pleading, that Orange County, Florida, or the
      Middle District of Florida, Orlando Division, is an improper or inconvenient
      venue. 

     

    Section
      7.6  No
      Waiver.
      No
      waiver of any provision of this Agreement shall be valid unless in writing
      and
      signed by the person against
      whom it is sought to be enforced. The failure by either party to insist upon
      strict performance of any provision will not be construed as a waiver or
      relinquishment of the right to insist upon strict performance of the same
      provision at any other time, or any other provision of this
      Agreement.

     

    Section
      7.7  Counterparts.
      This
      Agreement may be executed in one or more counterparts, each of which shall
      be
      deemed to be an original but all of which together will constitute one and
      the
      same instrument.

     

    Section
      7.8  Headings.
      The
      headings contained are for reference only and shall not affect the meaning
      or
      interpretation of any provision of this Agreement

     

    Section
      7.9  Further
      Assurances.
      Each
      party hereto shall cooperate and shall take such further action and shall
      execute and deliver such further documents as may be reasonably necessary in
      order to carry out the provisions and purposes of this Agreement.

     

    Section
      7.10  No
      Strict Construction.
      The
      parties have jointly participated in the negotiation and drafting of this
      Agreement. In the event an ambiguity or question of intent or interpretation
      arises, this Agreement shall be construed as if drafted jointly by the parties
      hereto, and no presumption or burden of proof shall arise favoring or
      disfavoring any party by virtue of the authorship of any of the provisions
      of
      this Agreement.

     

    EXECUTIVE
      ACKNOWLEDGES THAT HE HAS CAREFULLY READ THIS AGREEMENT, WAS AFFORDED SUFFICIENT
      OPPORTUNITY TO CONSULT WITH LEGAL COUNSEL OF HIS CHOICE, AND TO ASK QUESTIONS
      AND RECEIVE SATISFACTORY ANSWERS REGARDING THIS AGREEMENT, UNDERSTANDS HIS
      RIGHTS AND OBLIGATIONS UNDER IT, AND SIGNED IT OF HIS OWN FREE WILL AND
      VOLITION.

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Executive and Company have executed this Agreement as
      of
      the date first written above.

     

    
      	 	COMPANY:
	 	
            
	 	FARO TECHNOLOGIES, INC.
	 	 
	 	           /s/
              Simon
              Raab                           
              
	 	Name: Simon Raab
	 	Title: Co-Chief
              Executive Officer
	 	 
	 	EXECUTIVE:
	 	 
	 	           /s/
              Jay
              Freeland                           
              
	 	
              Name:
                Jay Freeland

            

    

    

     

    
      
        
        

      

      
        -9-EMPLOYMENT
      AGREEMENT

    

     

    This
      Employment Agreement is made and entered into by and between Spicy Pickle
      Franchising, Inc. (the "Company") and Marc Geman (the "Employee") on October
      __,
      2006.

     

    
      	 	
              1.

            	
              POSITION
                AND DUTIES: The Employee shall be employed by the Company and shall
                be
                governed by this Employment Agreement. The Employee shall be employed
                by
                the Company as its President and Chief Executive Officer (the
                “President/CEO”) reporting only to the Company's Board of Directors (the
                “Board”) beginning no later than January 1, 2007 (the "Effective Date").
                The duties shall include those customarily performed by the President
                and
                Chief Executive Officer, as well as those duties that may be assigned
                by
                the Board from time to time

            

    

     

    
      	 	
              2.

            	
              TERM
                OF EMPLOYMENT. The Employee's employment with the Company shall commence
                on the Effective Date and shall continue for a period of thirty six
                (36)
                full calendar months thereafter, unless sooner
                terminated.

            

    

     

    
      	 	
              3.

            	
              COMPENSATION:
                The Employee shall be compensated by the Company for his services
                as
                follows:

            

    

     

    
      	 	
              a.

            	
              Base
                Salary. For all services rendered by Employee in any capacity during
                his
                employment under this Agreement, including, without limitation, services
                as an employee, executive officer, director, or member of any committee
                of
                the Company, related companies or subsidiaries of the Company, commencing
                the Effective Date, the Company shall pay Employee a gross salary
                before
                taxes of Three Hundred Sixty Thousand Dollars ($360,000.00) per annum.
                Salary payments net of deductions for applicable taxes shall be payable
                in
                equal semi monthly installments in accordance with the Company’s normal
                payroll procedures.

            

    

     

    
      	 	
              b.

            	
              Temporary
                Base Salary: Employee acknowledges that the Company currently has
                limited
                cash resources available to fund the payments required in Section
                3 (a)
                above. Accordingly, Employee agrees that the Base Salary he will
                receive
                will be no more than twelve thousand five hundred dollars ($12,500)
                per
                month until the earlier of (i) the Company receives an additional
                equity
                funding of at least $3,000,000 or (ii) the Company has thirty seven
                (37)
                Spicy Pickle restaurants open for business including any Company
                restaurants, whichever is sooner. Employee shall not be entitled
                to and
                there shall be no accrual of the difference between the Base Salary
                and
                the Temporary Base Salary. The payment by the Company of the Temporary
                Base Salary pursuant to this Section 3 (b) shall not give rise to
                Resignation for Good Reason defined in Section 5 (b)
                below.

            

    

     

    
      	 	
              c.

            	
              Benefits:
                The Employee shall have the right, on the same basis as other members
                of
                the Company's senior management team, to participate in and receive
                benefits under any of the Company's Employee Benefit Plans, as such
                plans
                may be adopted or modified from time to time. The Employee shall
                be
                entitled to the benefits afforded to other members of the Company’s senior
                management team under the Company's vacation, holiday and business
                expense
                reimbursement policies. The Employee will be entitled to four (4)
                weeks
                vacation. To the extent the Employee is unable in the execution of
                his
                duties and responsibilities to take the allotted (and any
                previously-carried-over) vacation in any given year, the Employee
                will be
                eligible to roll-over up to five (5) weeks of vacation
                annually.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 	
              d.

            	
              Annual
                Incentive Bonus: By way of description and not limitation, the Employee
                shall be entitled to the benefits afforded to other members of the
                Company’s senior management team under a Company Discretionary Bonus
                Program which will be based upon company performance in any given
                fiscal
                year. The Discretionary Bonus Program shall be defined no later than
                the
                effective date of this agreement and shall, in any case, contain
                a target
                bonus pool amount to be shared by all participants of 10% of the
                Pre-tax
                profits of the Company and its subsidiaries. The amount of the percentage
                of the Discretionary Bonus Program that the Employee shall receive
                shall
                be determined by the Board or a committee of the Board at their
                discretion.

            

    

     

    

     

    
      	 	
              e.

            	
              Facilities
                and Expenses: The Employee shall be furnished with reasonable facilities
                and services during the performance of his duties. In addition, the
                Company shall reimburse the Employee for all authorized expenses
                incurred
                by him in furtherance of the Company's business upon the Employee's
                presentation of detailed vouchers evidencing a valid business purpose
                for
                such expenses. Company shall also provide Employee with a major credit
                card for use in payment of said
                expenses.

            

    

     

    
      	 	
              4.

            	
              STOCK
                OPTIONS: From time to time the Employee will be eligible to receive
                Stock
                Options at amounts and exercise prices as determined by the Board
                of the
                Company.

            

    

     

    
      	 	
              5.

            	
              DEFINITIONS
                APPLICABLE TO TERMINATIONS: For the purposes of terminations as described
                in Paragraph 6, the following definitions shall
                apply:

            

    

     

    
      	 	
              a.

            	
              A
                "Change of Control" is defined as and shall be deemed to have occurred
                if
                any of the following occurs with respect to the Company (except as
                may
                occur with a re-incorporation of the Company in advance of an initial
                public offering of the Company's stock): (i) the direct or indirect
                sale
                or exchange in a single or series of related transactions by the
                stockholders of the Company of more than thirty percent (30%) of
                the
                voting stock of the Company; (ii) a merger or consolidation in which
                the
                Company is not the surviving party; (iii) the sale, exchange, or
                transfer
                of all or substantially all of the assets of the Company; (iv) a
                liquidation or dissolution of the Company or (v) during any year,
                individuals who, at the beginning of such year constituted the entire
                Board of the Company, cease for any reason (other than death) to
                constitute a majority of the directors, unless the election, or the
                nomination for election, by the Company's stockholders, of each new
                director was approved by a vote of a least a majority of the directors
                then still in office who were directors at the beginning of the
                year.

            

    

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    The
      re-incorporation of the Company without a material change in voting rights
      of
      the stockholders of the Company shall not be deemed a Change in
      Control.

     

    1.
      "Good
      Reason" shall be defined as, and shall be deemed to exist, if any of the
      following conditions occur, provided that such conditions persist for fifteen
      (15) business days after written notice to the Board from the Employee and
      reasonable opportunity for the Company to cure if the cure cannot be affected
      within 15 business days: (i) the Company, its successors or assigns decreases
      the Employee's Base Salary; (ii) the Company, its successors or assigns makes
      a
      material, adverse change in the Employee's title, authority, responsibilities
      or
      duties, as measured against the Employee's title, authority, responsibilities
      or
      duties immediately prior to such change (provided that the Company or its
      successor may provide an equivalent position); (iii) the Company, its successors
      or assigns requires the relocation of the Employee's work place to a location
      not agreed to by the Employee; (iv) Change of Control as defined above (v)
      the
      Company, its successors or assigns materially breaches any provision of this
      Employment Agreement; or (vi) the Company fails to obtain the assumption of
      this
      Employment Agreement by any successor or assign of the Company.

     

    
      	 	
              b.

            	
              Termination
                for "Cause" is defined as a termination of the Employee based upon:
                (i)
                theft of the Company's assets; (ii) falsification of any employment
                applications; (ii) conviction of a felony or conviction of a crime
                involving fraud or dishonesty; (iii) improper and willful disclosure
                of
                the Company's confidential or proprietary information that could
                materially harm the Company; or (iv) gross
                incompetence.

            

    

     

    
      	 	
              6.

            	
              BENEFITS
                UPON TERMINATION: The Employee agrees that his employment may be
                terminated by the Company at any time, for any reason, with or without
                cause, and he shall be entitled as his sole remedy and compensation
                only
                the compensation provided, below, in this Section 6. In the event
                of the
                termination of the Employee's employment by the Company for any reasons
                set forth below, he shall be entitled to the
                following:

            

    

     

    
      	 	
              a.

            	
              Termination
                for Cause: If the Employee's employment is terminated by the Company
                for
                Cause as described above, the Employee shall be entitled to no
                compensation or benefits from the Company other than those under
                Paragraph
                3 earned up until such termination.

            

    

     

    
      	 	
              b.

            	
              Voluntary
                Resignation: In the event of the Employee's voluntary resignation
                from
                employment with the Company, other than for Good Reason as described
                above, the Employee shall be entitled to no compensation or benefits
                from
                the Company other than those under Paragraph 3, earned up until such
                termination.

            

    

     

    
      	 	
              c.

            	
              Death
                or Disability: In the event that the Employee's employment terminates
                as a
                result of his death or continued disability for ninety (90) days
                ("disability" being defined as the inability to perform specifically
                the
                essential functions of the Employee's position as President/CEO),
                the
                Employee shall be entitled to the following as of the date of death
                or
                disability.

            

    

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    
      	 	
              i.

            	
              all
                accrued compensation and benefits earned through such
                date;

            

    

     

    
      	 	
              ii.

            	
              a
                lump-sum severance payment equal to four months of the Employee's
                base
                salary and any discretionary bonus determined by the Board at their
                discretion, less applicable withholding, payable within ten (10)
                days of
                termination or resignation;

            

    

     

    
      	 	
              iii.

            	
              the
                Company shall cause the Board to fix the Expiry Date, as defined
                in the
                Plan, of any Stock Option to be a date that coincides with the original
                Expiry date.

            

    

     

    
      	 	
              d.

            	
              Termination
                Without Cause and/or Resignation for Good Reason: If the Employee's
                employment is terminated by the Company without Cause, or if the
                Employee
                resigns as an Employee of the Company for Good Reason (provided that
                the
                underlying conditions persist for fifteen (15) business days after
                written
                notice to the Company), then the Employee shall be entitled, on such
                date,
                to all of the following:

            

    

     

    
      	 	
              i.

            	
              all
                accrued compensation, benefits and vesting earned through the date
                of
                termination or resignation;

            

    

     

    
      	 	
              ii.

            	
              a
                lump-sum severance payment equal to twelve months of the Employee's
                base
                salary and any discretionary bonus determined by the Board at their
                discretion less applicable withholding, payable within ten (10) days
                of
                termination or resignation;

            

    

     

    
      	 	
              iii.

            	
              the
                Company shall cause the Board to fix the Expiry Date, as defined
                in the
                Plan, of any Stock Option to be a date that coincides with the original
                Expiry date; and

            

    

     

    
      	 	
              7.

            	
              COVENANT
                NOT TO COMPETE: During the term of this Agreement and for a period
                of one
                (1) year after expiration hereof, or for a period of one (1) year
                after
                Employee leaves his position with the Company for reasons other than
                Termination Without Cause or Resignation for Good Reason, Employee
                covenants that he will not, without the prior written consent of
                the
                Company which shall specifically refer to this covenant, directly
                or
                indirectly for any reason participate or engage in, assist or have
                any
                interest in, as principal, consultant, advisor, agent, financier
                or
                employee, any business entity which is, or which is about to become,
                engaged in, providing goods and/or services in a Competitive Business
                with
                the Company. The term “Competitive Business” as used in this Employment
                Agreement shall mean any business operating, whether retail, wholesale
                or
                otherwise, or granting franchises or licenses to other to operate,
                a food
                service business categorized as “fast casual or quick service” featuring
                submarine, deli, or panini or other sandwiches, breakfast panini,
                or
                Neapolitan thin crust pizza and deriving more than 10% of its gross
                sales
                from any of those items. Nothwithstanding the foregoing, the Employee
                shall not be prohibited from owning securities in a Competitive Business
                if such securities are listed on a stock exchange or traded on the
                over-the-counter market and represent 5% or less of that class of
                securities issued and outstanding..

            

    

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    
      	 	
              8.

            	
              CONFIDENTIALITY:
                During the term of this Agreement and thereafter, Employee covenants
                that
                he shall keep secret and confidential the "confidential information"
                of
                the Company, and shall not use or disclose such information for any
                purpose not authorized by the Company unless the information becomes
                public through no activity on his part. For purposes of this paragraph,
                "confidential information" includes information disclosed to or known
                by
                Employee as a consequence of or through his employment with the Company
                (including information conceived, originated, discovered or developed
                by
                Employee) not generally known about the Company's business, products,
                services and operations, including without limitation any trade secrets,
                know how, inventions, discoveries and improvements and ideas, whether
                of
                not patentable.

            

    

     

    
      	 	
              9.

            	
              EMPLOYEE
                INVENTIONS AND PROPRIETARY RIGHTS ASSIGNMENT AGREEMENT: The Employee
                agrees that during the term of this agreement, if Employee develops
                any
                proprietary technology; any patents and patent rights (including
                all
                information or discoveries covered thereby and all enhancements,
                modifications, improvements, divisions, continuations, continuations
                in
                part, reissues, re-examinations or extensions thereof), trademarks
                and
                trademark rights, copyrights and copyright rights, trade secrets
                and trade
                secret rights, and applications, registrations or their equivalents
                for
                any of the same; recipes, mixes, or other food related products,
                or any
                other intellectual property rights (collectively, the "Intellectual
                Property"), relating to the supplying of products or services in
                which the
                Company is or is likely to be involved, such Intellectual Property
                shall
                automatically become the property of the Company. The Employee agrees
                to
                cooperate with the Company to perfect the Employee’s respective claims to
                such Intellectual Property and to execute and deliver any and all
                documents reasonably necessary in order to effectuate the intent
                of this
                paragraph, and the Employee hereby grants to the Company an irrevocable
                power of attorney to execute any such
                documents.

            

    

     

    
      	 	
              10.

            	
              NON-SOLICITATION:
                The Employee agrees that for a period of one (1) year after the date
                of
                the termination of his employment for any reason, he shall not, either
                directly or indirectly; (i) solicit the services, or attempt to solicit
                the services, of any employee of the Company to any other person
                or
                entity; or (ii) solicit or otherwise encourage any supplier or other
                business contract of the Company to withdraw, curtail or cancel their
                business with the Company.

            

    

     

    
      	 	
              11.

            	
              INDEMNIFICATION:
                The Company agrees to make the Employee a party to an indemnification
                agreement which shall be defined no later than than the Effective
                Date. If
                Company-obtains a Directors' and Officers' Liability Insurance Policy,
                ,
                Employee will be covered in the same manner as other senior
                management..

            

    

     

    
      	 	
              12.

            	
              DISPUTE
                RESOLUTION: DISPUTE RESOLUTION: In the event of any dispute or claim
                relating to or arising out of this Employment Agreement (including,
                but
                not limited to, and claims of breach of contract, wrongful termination
                or
                age, sex, race or other discrimination), the Employee and the Company
                agree that all such disputes shall be fully and finally resolved
                by a
                court of competent jurisdiction.

            

    

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    
      	 	
              13.

            	
              ATTORNEY'S
                FEES: In the event that the Employee brings an action against the
                Company
                to remedy breaches of the above Agreement, or to enforce any right
                arising
                out of this Agreement, the following shall apply: (i) if the action
                brought by the Employee fails to win the decision in the court, the
                Company shall not be liable to reimburse any costs incurred by the
                Employee; (ii) if the action brought by the Employee prevails in
                the
                arbitration, in whole or in part, the Company shall be liable to
                reimburse
                the Employee his incurred attorney's fees, litigation costs and/or
                other
                costs associated with the action or
                actions.

            

    

     

    
      	 	
              14.

            	
              FAILURE
                TO EXERCISE RIGHTS: Failure for one party to exercise a right conferred
                by
                this Agreement does not constitute in any way a renunciation to the
                exercise of that right.

            

    

     

    
      	 	
              15.

            	
              RETURN
                OF INFORMATION: Upon termination of this Agreement, for any reason,
                the
                Employee will remit to the Company without delay all documents, objects,
                goods (including computers, diskettes or any data storage device)
                owned by
                the Company and any copies thereof, and will destroy without delay
                any
                data they might have on personal computers, diskettes, or any other
                data
                storage device, related to the
                foregoing.

            

    

     

    
      	 	
              16.

            	
              INTERPRETATION:
                The Employee and the Company agree that this Employment Agreement
                shall be
                interpreted in accordance with and governed by the laws of the State
                of
                Colorado.

            

    

     

    
      	 	
              17.

            	
              SUCCESSORS
                AND ASSIGNS: This Employment Agreement shall inure to the benefit
                of and
                be binding upon the Company and its successors and assigns. In view
                of the
                personal nature of the services to be performed under this Employment
                Agreement by the Employee, he shall not have the right to assign
                or
                transfer any of his rights, obligations or benefits under the Employment
                Agreement, except as otherwise noted herein. This agreement may be
                assigned to the Company's successor without consent of the Employee
                (understanding Change in Control provisions still
                apply).

            

    

     

    
      	 	
              18.

            	
              ENTIRE
                AGREEMENT: This Employment Agreement constitutes the entire employment
                agreement between the Employee and the Company regarding the terms
                and
                conditions of his employment with the Company. To the extent that
                there is
                any inconsistency between this Employment Agreement and any other
                agreement between the Employee and the Company, the terms of this
                Employment Agreement will govern. This Employment Agreement supersedes
                all
                prior negotiations, representations or agreements between the Employee
                and
                the Company, whether written or oral, concerning the Employee's employment
                by the Company.

            

    

     

    
      	 	
              19.

            	
              VALIDITY:
                If any one or more of the provisions (or any part thereof) of this
                Employment Agreement shall be held invalid, illegal or unenforceable
                in
                any respect, the validity, legality and enforceability of the remaining
                provisions (or any part thereof) shall not in any way be affected
                or
                impaired thereby.

            

    

     

    
      	 	
              20.

            	
              ATTORNEYS'
                FEES IN NEGOTIATING AGREEMENT: Each party to this agreement has had
                the
                opportunity to consult legal advisor of their choice before signing
                this
                agreement. In connection therewith, the Company shall reimburse Employee
                for all reasonable attorneys fees incurred in the review and negotiation
                of this Agreement up to a maximum of
                US$1,000.

            

    

     

    
      	 	
              21.

            	
              MODIFICATION:
                This Employment Agreement may only be modified or amended by a
                supplemental written agreement signed by the Employee and the
                Company.

            

    

     

    
      	 	
              22.

            	
              COUNTERPARTS:
                This Employment Agreement may be executed in any number of counterparts,
                each of which shall be an original, but all of which together shall
                constitute one instrument.

            

    

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF, the parties have executed this Employment Agreement as of
      the
      date and year written below.

     

    
      	 	 	 
	Date:
              October __, 2006 	Spicy
              Pickle
              Franchising, Inc..
	 
 	 
 	 
 
	 	  	By:
	 	 	 
	 	Arnold Tinter
	 	 
	 	Its: Secretary 
	 	 
	 	 
	Date: October __, 2006 	Marc Geman 
	 	 
	 	EMPLOYEE 

    

     

    
      
         

      

      
        7

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