Document:

10.1

EXHIBIT 10.1

SUPPLY AGREEMENT

THIS SUPPLY AGREEMENT (together with the schedules hereto, this “Agreement”), dated as of June 30, 2011 (the “Effective Date”), is entered into by and between Autodily Rachot S.R.O., a Czech Republic Spolecnost S Rucením Omezenym, frequently translated into the English language as “limited liability company” (“Supplier”), and Rainbow International, Corp., a Nevada, United States of America, corporation (“Purchaser”).

RECITALS

A. Purchaser desires to purchase certain products, as defined in Recital B, below (the “Products”), from Supplier and Supplier desires to supply Purchaser the Products for sale.

B.  As used in this Agreement, “Products” mean, those certain Bohemian crystal products manufactured or otherwise produced in the Czech Republic by Supplier or its agents, initially as set forth in Schedule I hereto, and such other products or product lines from time to time agreed to by Purchaser and Supplier.

AGREEMENTS

NOW THEREFORE, in consideration of the agreements and covenants set forth herein, and intending to be legally bound thereby, the parties hereto agree as follows:

1. Product Terms; Licenses and Agreements as to Use.

1.1 Appointment.  Purchaser hereby appoints Supplier, and Supplier accepts such appointment, to act as a non-exclusive supplier of the Products to Purchaser.

1.2  Prices.  The prices paid by Purchaser to Supplier for Products shall initially be as set forth in Schedule I hereto.  Purchaser shall have the right to purchase up to an aggregate of US $250,000 of Products at item prices identified in Schedule I.  Prices are exclusive of all taxes, insurance, and shipping and handling charges, which are Purchaser’s sole responsibility.

1.3  Resale of Products.   Products may, in the sole discretion of Purchaser, be packaged, marketed and commercially resold by Purchaser under Purchaser’s own brand(s).

2. Orders and Payment.

2.1 Orders.  Purchaser shall order the Products in writing and delivered to Supplier.  The terms and conditions of each order shall be as provided by this Agreement, and the provisions of either party’s form of purchase order, acknowledgment or other business forms will not apply to any order notwithstanding the other party’s acknowledgment or acceptance of such form.  

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2.2  Shipment.  Shipment will be F.O.B. to Purchaser’s specified warehouse (“Delivery Point”), freight collect, at which time title and risk of loss will pass to Purchaser.  All freight, insurance and other shipping expenses from Delivery Point, as well as any expenses related to Purchaser’s special packing requests, will be borne by Purchaser unless otherwise agreed to in writing by Supplier.

2.3  Payment.  Purchaser shall make all payments for the Products pursuant to written payment instructions provided from time to time by Supplier to Purchaser.  All payments shall be made in United States Dollars.

2.4  Cancellation.  Purchaser may cancel any order of Product prior to shipment referenced in Section 2.2 hereof, provided,  however, that such cancelation is made in a writing delivered to Supplier prior to shipment, or if such cancellation made orally to Supplier, such cancellation is confirmed in writing not later than three (3) days after oral cancelation is made.   If Purchaser cancels an order of Product which has been accepted by Supplier, Purchaser shall reimburse Supplier within three (3) days of Supplier’s reasonable demonstration of evidence for any costs incurred by Supplier related to such order of Purchaser prior to the time Supplier receives knowledge of the cancelation.

3. Term and Termination.

3.1  Term.  This Agreement shall commence on the Effective Date and have a term which expires December 31, 2012, unless terminated earlier as provided herein.  

3.2  Termination for Insolvency.  At the option of Supplier or Purchaser, this Agreement shall terminate immediately if: (i) a receiver is appointed for the other party or its property; (ii) any proceedings are commenced by or for the other party under any bankruptcy, insolvency or debtors’ relief law; (iii) any proceedings are commenced against the other party under any bankruptcy insolvency or debtor’s relief law, and such proceedings have not been vacated or set aside within sixty (60) days from the date of commencement thereof; or (iv) the other party commences to dissolve under applicable corporate law statutes.

3.3  Termination/Expiration Accounting.  All amounts payable by Purchaser to Supplier shall survive termination and become immediately due and payable upon termination. 

4. Warranty.

4.1  Warranty Term.  Supplier’s warranty, as stated in Section 4.3, period is for ninety (90) days from the shipment date. 

4.2  Returns of Defective Products.  Returns of defective Products under warranty in section 4.3 will be processed through return processing centers and consolidated for shipment semi-monthly or monthly to Supplier by Purchaser.  Returns of defective Products will be paid for by Supplier when Supplier authorized carriers are used. Return shipment charges via unauthorized carriers and all customs or broker’s fees are the responsibility of Purchaser. 

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4.3  Supplier Warranty.  Supplier warrants that the Products will merchantable, meaning that the Products will pass without objection in the trade of Bohemian crystal, be of not less than fair and average quality for Bohemian crystal, and fit for the ordinary purpose for which such Products are sold.  In no event, however, shall Supplier bear any responsibility under its warranty or otherwise for any errors or damages caused by or resulting from misuse or changes in the Products caused or made by Purchaser, nor shall Supplier bear any responsibility for any warranties covering the Purchaser Products.

4.4  Remedies.  Supplier’s sole obligation, and Purchaser’s sole remedy, with respect to any nonconformities in the Products shall be for Supplier to use its reasonable efforts to correct such nonconformities. 

4.5  Purchaser Customer Warranties.  Purchaser shall be solely responsible to its customers for warranties covering Purchaser products, or warranties covering the Products beyond the scope of the Supplier warranties set forth in this Agreement, provided that Supplier shall provide reasonable assistance to Purchaser without charge to the extent that the customer complaint is a result of nonconformities in the Products during the Purchaser Products warranty period described in Section 6.1.

4.6 No other warranties.  Supplier and its contractors/vendors disclaim all other warranties and conditions, either express or implied, including, but not limited to, fitness for a particular purpose, title and non-infringement, with respect to the products and the provision of or failure to provide services.

4.7 Express Disclaimer.  Supplier makes no warranties or representations as to the products, except as set forth above.  All implied warranties and conditions, including but not limited to fitness for a particular purpose and noninfringement, are hereby disclaimed.

5. Limitation of Liability.  The liability of Supplier and its contractors/vendors arising out of or relating to this agreement or the supply of products hereunder, shall be limited to the actual amounts paid by Purchaser to Supplier for the products giving rise to such damages, and shall in no event include loss of profits, cost of procuring substitute goods or services, or any incidental, indirect or consequential damages of any kind, even if Supplier is aware of the possibility of such damages.

6. Confidentiality.  Each of the parties hereto agrees to hold confidential and proprietary information and trade secrets obtained from the other, and designated as such in writing by the disclosing party, in confidence and not to use or disclose such confidential and proprietary information and trade secrets to third parties without the consent of the other party, except that each of parties may disclose such information to their respective employees and agents who need to know such information for the purposes of operating their respective businesses.  The parties agree that the provisions contained in this paragraph shall survive the termination of this Agreement.

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7. General.

7.1  Assignment.  Neither party may assign, delegate, or transfer this Agreement, or any of its rights or duties hereunder, without the prior written consent of the other party.  Any attempted assignment or delegation in violation of this section shall be void.  The provisions of this Agreement shall be binding upon and inure to the benefit of the parties, their successors and permitted assigns. Notwithstanding the foregoing, Supplier may assign its rights and duties hereunder in connection with a merger, consolidation, spin-off, corporate reorganization, acquisition, or sale of all or substantially all the assets of Supplier.

7.2  No Partnership or Joint Venture.  Nothing contained herein will in any way constitute any association, partnership, or joint venture between the parties hereto, or be construed to evidence the intention of the parties to establish any such relationship.  Neither party will have the power to bind the other party or incur obligations on the other party’s behalf without the other party’s prior written consent.

7.3  Modification and Waiver.  No modification to this Agreement, nor any waiver of any rights, will be effective unless assented to in writing by the party to be charged, and the waiver of any breach or default shall not constitute a waiver of any other right hereunder or any subsequent breach or default.

7.4  Notices.  Any required or permitted notices hereunder must be given in writing at the address of each party set forth below, or to such other address as either party may substitute by written notice to the other in the manner contemplated herein, by one of the following methods: hand delivery; registered, express, or certified mail, return receipt requested, postage prepaid; or nationally-recognized private express courier.  Notices will be deemed given on the date received.

If to Supplier: Autodily Rachot S.R.O.

Cimburkova 730/27

Prague 13000

Czech Republic

If to Purchaser: Rainbow International, Corp.         Pekarska 36

Brno 60200

Czech Republic

7.5  Severability.  If for any reason any provision of this Agreement shall be held by a court of competent jurisdiction to be invalid or unenforceable, the remaining provisions of this Agreement shall remain in full force and effect.

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7.6  Entire Agreement.  This Agreement and the schedules and exhibits attached hereto constitute the entire and exclusive agreement between the parties hereto with respect to the subject matter hereof and supersede any prior agreements between the parties with respect to such subject matter.

IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed by their duly authorized representatives. 

SUPPLIER:

AUTODILY RACHOT S.R.O.

By:      /s/    Andrius Skirbutis   

        Name: Andrius Skirbutis

        Title:  President

PURCHASER:

RAINBOW INTERNATIONAL, CORP.

By:      /s/    Vladimir Bibik

        Name:  Vladimir Bibik

        Title:  President

5

SCHEDULE I

Price list

			
	Item number

	Item

	Price (USD)

	X-140-1002

	Box, 140 mm / 105 mm

	184.51

	X-160-1005

	Basket, 160 mm / 98 mm

	56.54

	X-165-1007

	Basket, 165 mm / 140 mm

	84.29

	X-180-1003

	Basket, 180 mm / 165 mm

	97.28

	X-200-1011

	Basket, 200 mm / 189 mm

	128.69

	X-220-1009

	Basket, 220 mm / 192 mm

	151.93

	X-230-1004

	Basket, 230 mm / 192 mm

	154.62

	X-255-1008

	Basket, 255 mm / 200 mm

	189.12

	X-300-1023

	Basket, 300 mm / 200 mm

	312.14

	 
	 
	 

	 
	Vases

	 

	V-080-1011

	Mini Vase, height 80 mm

	16.04

	V-080-1017

	Mini Vase, height 80 mm

	16.81

	V-080-1021

	Mini Vase, height 80 mm

	16.99

	V-080-1028

	Mini Vase, height 80 mm

	17.40

	V-080-1036

	Mini Vase, height 80 mm

	17.88

	V-080-1045

	Mini Vase, height 80 mm

	18.52

	V-080-1052

	Mini Vase, height 80 mm

	19.47

	V-080-1063

	Mini Vase, height 80 mm

	21.54

	V-080-1071

	Mini Vase, height 80 mm

	22.38

	V-090-1007

	Mini Vase, height 90 mm

	22.43

	V-100-1004

	Mini Vase, height 100 mm

	33.98

	V-102-1006

	Mini Vase, height 102 mm

	24.38

	V-104-1003

	Mini Vase, height 104 mm

	23.46

	V-105-1011

	Mini Vase, height 105 mm

	21.01

	V-107-1009

	Mini Vase, height 107 mm

	31.91

	V-116-1002

	Mini Vase, height 116 mm

	26.99

	V-126-1005

	Mini Vase, height 126 mm

	27.46

	V-130-1001

	Mini Vase, height 130 mm

	26.70

	V-132-1021

	Mini Vase, height 132 mm

	38.43

	V-148-1008

	Mini Vase, height 148 mm

	41.19

	V-150-1003

	Vase, height 155 mm

	24.15

	V-155-1012

	Vase, height 155 mm

	25.45

	V-155-1019

	Vase, height 155 mm

	26.09

	V-155-1032

	Vase, height 155 mm

	36.05

	V-155-1045

	Vase, height 155 mm

	40.84

	V-160-1008

	Vase, height 160 mm

	47.35

	V-180-1003

	Vase, height 180 mm

	23.86

	V-180-1012

	Vase, height 180 mm

	26.99

	V-180-1017

	Vase, height 180 mm

	28.71

	V-180-1032

	Vase, height 180 mm

	44.50

	V-180-1044

	Vase, height 180 mm

	51.43

	V-180-1057

	Vase, height 180 mm

	70.87

	V-181-1003

	Vase, height 181 mm

	31.90

	V-200-1017

	Vase, height 200 mm

	93.38

	V-205-1006

	Vase, height 205 mm

	23.86

	V-205-1015

	Vase, height 205 mm

	26.04

	V-205-1021

	Vase, height 205 mm

	30.01

	V-205-1039

	Vase, height 205 mm

	42.91

	V-205-1052

	Vase, height 205 mm

	50.24

	V-205-1059

	Vase, height 205 mm

	52.45

	V-205-1072

	Vase, height 205 mm

	56.70

	V-205-1085

	Vase, height 205 mm

	63.26

	V-205-1091

	Vase, height 205 mm

	67.05

	V-230-1005

	Vase, height 230 mm

	26.63

	V-230-1012

	Vase, height 230 mm

	28.23

	V-230-1019

	Vase, height 230 mm

	35.86

	V-230-1023

	Vase, height 230 mm

	36.34

	V-230-1046

	Vase, height 230 mm

	52.19

	V-230-1061

	Vase, height 230 mm

	65.75

	V-250-1012

	Vase, height 250 mm

	45.75

	V-250-1017

	Vase, height 250 mm

	46.16

	V-250-1022

	Vase, height 250 mm

	81.13

	V-250-1031

	Vase, height 250 mm

	98.66

	V-255-1008

	Vase, height 255 mm

	38.41

	V-255-1013

	Vase, height 255 mm

	40.95

	V-255-1023

	Vase, height 255 mm

	45.40

	V-255-1045

	Vase, height 255 mm

	63.08

	V-255-1061

	Vase, height 255 mm

	78.88

	V-255-1069

	Vase, height 255 mm

	79.37

	V-255-1078

	Vase, height 255 mm

	91.43

	V-255-1089

	Vase, height 255 mm

	100.50

	V-255-1093

	Vase, height 255 mm

	101.55

	V-260-1023

	Vase, height 260 mm

	71.78

	V-260-1042

	Vase, height 260 mm

	107.89

	V-275-1003

	Vase, height 275 mm

	44.02

	V-275-1045

	Vase, height 275 mm

	138.90

	V-280-1024

	Vase, height 280 mm

	80.18

	V-300-1014

	Vase, height 300 mm

	81.97

	V-305-1009

	Vase, height 305 mm

	48.11

	V-305-1012

	Vase, height 305 mm

	49.40

	V-305-1038

	Vase, height 305 mm

	102.50

	V-305-1052

	Vase, height 305 mm

	121.30

	V-305-1061

	Vase, height 305 mm

	142.76

	V-310-1019

	Vase, height 310 mm

	105.22

	V-355-1011

	Vase, height 355 mm

	128.43

	 
	 
	 

	 
	Glasses

	 

	B-035-1002

	Brandy Glass, 35 ml (6 pcs)

	90.43

	B-080-1007

	Brandy Glass, 80 ml (6 pcs)

	99.07

	B-105-1011

	Brandy Glass, 105 ml (6 pcs)

	104.10

	B-170-1000

	Brandy Glass, 170 ml (6 pcs)

	125.02

	B-230-1005

	Brandy Glass, 230 ml (6 pcs)

	131.75

	B-300-1006

	Brandy Glass, 300 ml (6 pcs)

	142.53

	B-420-1003

	Brandy Glass, 420 ml (6 pcs)

	151.11

	B-750-1001

	Brandy Glass, 750 ml (6 pcs)

	289.05

	C-100-1002

	Champagne Flute, 100 ml / 185 mm (6 pcs)

	111.74

	C-100-1009

	Champagne Flute, 100 ml / 215 mm (6 pcs)

	121.12

	C-150-1004

	Champagne Flute, 150 ml / 203 mm (6 pcs)

	102.93

	C-160-1007

	Champagne Flute, 160 ml / 215 mm (6 pcs)

	123.12

	C-160-1010

	Champagne Saucer, 160 ml / 150 mm (6 pcs)

	151.07

	C-160-1012

	Champagne Flute, 160 ml / 215 mm (6 pcs)

	126.34

	C-160-1016

	Champagne Saucer, 160 ml / 155 mm (6 pcs)

	154.52

	C-180-1005

	Champagne Saucer, 180 ml / 153 mm (6 pcs)

	104.89

	G-240-1007

	Goblet, 240 ml (6 pcs)

	168.55

	G-280-1003

	Goblet, 280 ml (6 pcs)

	105.74

	L-025-1005

	Liqueur Glass, 25 ml (6 pcs)

	120.22

	L-035-1014

	Liqueur Glass, 35 ml (6 pcs)

	134.78

	L-060-1002

	Liqueur Glass, 60ml (6 pcs)

	75.98

	L-060-1031

	Liqueur Glass, 60ml (6 pcs)

	137.78

	N-020-1006

	Noggin, 20 ml (6 pcs)

	90.26

	N-025-1009

	Noggin, 25 ml (6 pcs)

	89.37

	N-025-1012

	Noggin, 25 ml (6 pcs)

	91.79

	N-030-1007

	Noggin, 30 ml (6 pcs)

	113.51

	N-040-1003

	Noggin, 40 ml (6 pcs)

	105.10

	N-045-1004

	Noggin, 45 ml (6 pcs)

	93.39

	N-045-1012

	Noggin, 45 ml (6 pcs)

	101.07

	N-050-1002

	Noggin, 50 ml (6 pcs)

	72.09

	N-055-1006

	Noggin, 55 ml (6 pcs)

	98.07

	N-055-1014

	Noggin, 50 ml (6 pcs)

	105.10

	S-050-1003

	Sherry Glass, 50 ml (6 pcs)

	113.28

	S-060-1011

	Sherry Glass, 60 ml (6 pcs)

	124.78

	S-065-1008

	Sherry Glass, 65 ml (6 pcs)

	139.33

	S-070-1007

	Sherry Glass, 70 ml (6 pcs)

	123.46

	S-090-1001

	Sherry Glass, 90 ml (6 pcs)

	81.18

	S-090-1017

	Sherry Glass, 90 ml (6 pcs)

	115.83

	T-170-1009

	Tumbler, 170 ml (6 pcs)

	99.67

	T-200-1037

	Tumbler, 200 ml (6 pcs)

	120.43

	T-220-1023

	Tumbler, 220 ml (6 pcs)

	108.84

	T-240-1014

	Tumbler, 240 ml / 98 mm (6 pcs)

	102.10

	T-320-1012

	Tumbler, 320 ml / 95 mm (6 pcs)

	108.84

	T-320-1028

	Tumbler, 320 ml (6 pcs)

	129.02

	T-340-1012

	Tumbler, 340 ml (6 pcs) / 100 mm (6 pcs)

	112.51

	T-340-1021

	Tumbler, 340 ml / 95 mm (6 pcs)

	148.39

	T-350-1008

	Tumbler, 350 ml / 155 mm (6 pcs)

	119.55

	T-360-1025

	Tumbler, 360 ml (6 pcs)

	173.28

	W-130-1027

	Wine 130, ml (6 pcs)

	149.74

	W-150-1013

	Wine 150, ml (6 pcs)

	118.43

	W-150-1022

	Wine 150, ml (6 pcs)

	119.17

	W-150-1033

	Wine 150, ml (6 pcs)

	139.33

	W-160-1005

	Wine 160, ml (6 pcs)

	108.50

	W-170-1002

	Wine 170, ml (6 pcs)

	98.20

	W-170-1029

	Wine 170, ml (6 pcs)

	151.98

	W-180-1018

	Wine 180, ml (6 pcs)

	167.34

	W-210-1009

	Wine 210, ml (6 pcs)

	122.95

	W-220-1006

	Wine 220, ml (6 pcs)

	105.89

	W-220-1019

	Wine 220, ml (6 pcs)

	161.93

	 
	 
	 

	 
	Plates and Trays

	 

	P-128-1001

	Plate, 128 mm

	63.45

	P-128-1056

	Plate, 128 mm (6 pcs)

	247.53

	P-155-1003

	Plate, 155 mm

	34.38

	P-160-1004

	Plate, 160 mm

	50.97

	P-180-1002

	Plate, 180 mm

	60.14

	P-195-1007

	Plate, 195 mm

	88.53

	P-205-1002

	Plate, 205 mm

	89.11

	P-220-1009

	Plate, 220mm

	103.82

	P-260-1011

	Plate, 260mm

	182.05

	P-270-1001

	Plate, 270mm

	98.54

	P-270-1014

	Plate, 270mm

	159.56

	P-280-1004

	Plate, 280mm

	174.17

	P-280-1016

	Plate, 280mm

	220.20

	P-300-1004

	Square Tray, 300 mm

	176.17

	P-305-1004

	Plate, 305 mm

	198.76

	P-305-1009

	Plate, 305 mm

	222.65

	P-320-1002

	Square Tray, 320 mm

	250.81

	P-340-1003

	Square Tray, 340 mm

	219.70

	P-400-1003

	Fish Tray, 400 mm

	218.78

	P-450-1003

	Fish Tray, 450 mm

	236.26

	P-450-1031

	Plate, 450 mm

	488.98

	 
	 
	 

	 
	Bowls

	 

	O-080-1008

	Bowl, 80 mm / 64 mm

	25.74

	O-080-1013

	Bowl, 80 mm / 64 mm

	28.34

	O-080-1001

	Swan, height 80 mm

	28.42

	O-114-1008

	Bowl, 114 mm / 64 mm

	71.49

	O-116-1002

	Bowl, 116 mm / 74 mm

	43.98

	O-120-1003

	Bowl, 120 mm / 84 mm

	42.02

	O-120-1011

	Bowl, 120 mm / 59 mm

	51.91

	O-133-1002

	Swan, height 133 mm

	71.74

	O-150-1004

	Bowl, 150 mm /84 mm

	92.51

	O-150-1027

	Footed Bowl, 150 mm /120 mm

	123.22

	O-155-1003

	Bowl, 155 mm / 84mm

	57.47

	O-155-1009

	Bowl, 155 mm / 90 mm

	74.04

	O-160-1005

	Bowl, 160 mm /89 mm

	71.81

	O-175-1013

	Bowl, 175 mm / 105 mm

	128.50

	O-205-1002

	Bowl, 205 mm / 50 mm

	65.34

	O-205-1007

	Bowl, 205 mm / 115 mm

	82.44

	O-205-1014

	Bowl, 205 mm / 115 mm

	114.91

	O-205-1022

	Bowl, 205 mm / 115 mm

	144.41

	O-205-1029

	Bowl, 205 mm / 115 mm

	147.15

	O-210-1006

	Bowl, 210 mm / 98 mm

	127.98

	O-230-1015

	Bowl, 230 mm / 135 mm

	148.58

	O-230-1019

	Bowl, 230 mm / 135 mm

	151.69

	O-230-1027

	Bowl, 230 mm / 135 mm

	198.98

	O-240-1009

	Bowl, 240 mm / 135 mm

	169.56

	O-250-1001

	Bowl, 250 mm / 60 mm

	97.89

	O-250-1018

	Bowl, 250 mm / 135 mm

	154.65

	O-255-1020

	Bowl, 255 mm / 135 mm

	160.56

	O-255-1035

	Bowl, 255 mm / 135 mm

	229.34

	O-260-1011

	Bowl, 260 mm / 135 mm

	120.22

	O-280-1005

	Bowl, 280 mm / 135 mm

	146.90

	O-280-1014

	Bowl, 280 mm / 135 mm

	196.69

	O-300-1005

	Bowl, 300 mm / 74 mm

	230.94

	O-305-1003

	Bowl, 305 mm / 74 mm

	217.34

	O-310-1014

	Bowl, 310 mm / 80 mm

	216.56

	O-310-1021

	Bowl, 310 mm / 80 mm

	364.11

	O-330-1007

	Footed Bowl, 330 mm/ 130 mm

	278.37

	O-345-1012

	Bowl, 345 mm / 80 mm

	284.63

	O-350-1004

	Bowl, 350 mm / 80 mm

	222.31

	O-355-1009

	Bowl, 355 mm / 135 mm

	285.46

	O-355-1015

	Bowl, 355 mm / 80 mm

	307.47

6albrightemploymentagreement.htm

EMPLOYMENT AGREEMENT

This employment agreement (the “Agreement”) is made and entered into as of June 30, 2011, by and between Consolidated-Tomoka Land Co., a Florida corporation (the “Company”), and John P. Albright (the “Executive”).

BACKGROUND

The Company desires to employ the Executive as the Company’s President and Chief Executive Officer, and the Executive desires to accept employment with the Company, on the terms and conditions set forth below.

TERMS

	
1.  

	
Employment

	
a.  

	
General.  The Executive agrees to accept employment with the Company, and one or more of the Company’s subsidiary corporations, to render the services specified in this Agreement subject to the terms and conditions of this Agreement.  All compensation paid to the Executive by the Company or any subsidiary of the Company, and all benefits and perquisites received by the Executive from the Company or any of its subsidiaries, will be aggregated in determining whether the Executive has received the compensation and benefits provided for herein.

	
b.  

	
Duration.  This Agreement is effective on the date it is fully executed and has no specific expiration date.  Unless terminated by agreement of the parties, this Agreement will govern the Executive’s continued employment by the Company until such employment terminates.

	
2.  

	
Duties.

	
               a.  

	
General Duties.  Beginning on August 1, 2011, the Executive shall serve as President and Chief Executive Officer of the Company, with duties and responsibilities that are customary for such executives including, without limitation, ultimate responsibility for managing the Company, subject to the authority of the Board of Directors of the Company (the “Board”).  To the extent the Board has authorized its Compensation Committee of the Board to act on its behalf, references to the Board will hereinafter also be deemed to include the Compensation Committee.

	
  

	
b.

	
Full Time Employment.  The Executive agrees to devote his full time and best efforts to the successful functioning of the Company and agrees that he will faithfully and industriously perform all the duties pertaining to his office and position as President and Chief Executive Officer in accordance with the policies established by the Board from time to time, to the best of his ability, experience and talent and in a manner satisfactory to the Company.  Further, the Executive shall devote his full business time and energy to the business, affairs and interests of the Company and its subsidiaries, and matters related thereto.  It is understood that the principal location of employment with the Company shall be at Company’s headquarters in Daytona Beach, Florida, and that in the course of his employment the Executive will become active in the Daytona Beach, Florida, community.  The Executive shall maintain his primary residence within a radius of seventy-five miles of Daytona Beach, Florida.

	
  

	
c.

	
Certain Permissible Activities. The Executive may also make and manage personal business investments of his choice and serve in any capacity with any civic, educational or charitable organization, or any governmental entity or trade association, without seeking or obtaining approval by the Company so long as such activities and service do not interfere or conflict with the performance of his duties under this Agreement.  The Executive acknowledges that he shall be subject to the Consolidated-Tomoka Land Co. Code of Business Conduct and Ethics, including the provisions with respect to corporate opportunities.

	
  

	
d.

	
Board Membership.  Upon the occurrence of any vacancy on the Board prior to the Company’s 2012 Annual Meeting of Shareholders (the “2012 Annual Meeting”), the Board shall appoint the Executive as a director of the Company,  and in any event the Board will include the Executive as part of management’s slate of nominees for the Board for the 2012 Annual Meeting.  Thereafter, the Executive’s service on the Board will be subject to the same scrutiny by the governance committee of the Board as all other director nominee candidates.  The Executive’s service as a member of the Board will be further subject to any required shareholder approval.  Upon the termination of the Executive’s employment for any reason, the Executive will be deemed to have tendered his resignation from the Board (and any boards of subsidiaries) voluntarily, without any further required action by the Executive, as of the end of the Executive’s employment and/or at the Board’s request including, but not limited to, complying with any independent Board membership thresholds.  For so long as the Executive remains an employee of the Company, he will not be additionally compensated for his services as a member of the Board.

	
3.  

	
Compensation and Expenses.

	
a.  

	
Base Salary.  The Executive will be paid a base salary at an annual rate of $330,000 (the “Base Salary”), payable in accordance with the Company’s payroll practices as in effect from time to time.

	
b.  

	
Performance Bonus.  For each fiscal year ending during his employment, the Executive will be eligible to earn an annual bonus (which shall be pro-rated for the fiscal year ending December 31, 2011 based on the number of months worked during such year), payable in accordance with the Company’s customary bonus and payroll practices as in effect from time to time.  The annual bonus will vary between zero and 60% of the Executive’s Base Salary.  The annual bonus payable will be determined by the Board, based on the attainment of corporate and/or individual performance goals as mutually agreed upon by the Executive and the Board.

	
c.  

	
Signing Bonus.  Upon the full execution of this Agreement, the Company shall pay to the Executive a one-time signing bonus in the amount of $100,000.

	
d.  

	
Relocation Expenses.  The Company agrees to pay for the reasonable and verifiable out-of-pocket expenses incurred by the Executive in connection with his relocation to the Central Florida area; provided, however, that the amount payable under this Section 3.d shall not exceed $35,000.

 

 

  

  

  

	
e.  

	
Reimbursement of Signing Bonus and Relocation Expenses. The Executive agrees that (i) if the Executive’s employment with the Company terminates prior to February 1, 2012, the Executive shall repay the Company 90% of the signing bonus paid under Section 3.c and the relocation expenses paid under Section 3.d and (ii) if the Executive’s employment with the Company terminates on or after February 1, 2012 but prior to August 1, 2012, the Executive shall repay the Company a pro rata share of the signing bonus paid under Section 3.c and the relocation expenses paid under Section 3.d at the rate of 1/12 of such amounts for each month or portion of a month that the Executive’s employment is less than twelve months; except that the Executive shall not be required to repay any amounts under this Section 3.e if the Executive’s employment is terminated by the Company pursuant to Section 5.d of this Agreement.

	
f.  

	
Equity Awards. The Board has authorized the grant to the Executive, effective on August 1, 2011, of: (i) non-qualified options to purchase 50,000 shares of Company common stock under the Consolidated-Tomoka Land Co. 2010 Equity Incentive Plan (the “2010 Plan”) with an exercise price per share equal to the “Fair Market Value” (as defined in the 2010 Plan) on the Grant Date (as defined in the award agreement attached hereto as Exhibit A), and subject to time vesting of three years and vesting upon a “Change in Control” (as defined in the 2010 Plan); and (ii) an “inducement” grant of 96,000 shares of restricted Company common stock outside of the 2010 Plan in accordance with and subject to the exception set forth in Section 711(a) of the NYSE Amex Company Guide, where increments of 16,000 shares will vest in full upon the price per share of Company common stock meeting or exceeding target trailing 60-day average closing prices as set forth in the award agreement attached hereto as Exhibit B.  Each award will be granted on the Executive’s first date of employment with the Company and will be memorialized in (and subject to the terms of) the award agreements attached hereto as Exhibits A and B.

	
g.  

	
Expenses.  In addition to any compensation paid to the Executive pursuant to Section 3, the Company will reimburse, or advance funds to, the Executive for all reasonable, ordinary and necessary travel or entertainment expenses incurred by him in the course of his performances of his duties as an executive officer of the Company during the term of his employment in accordance with the Company’s then-current policy.

	
h.  

	
Clawback.  Notwithstanding anything to the contrary in this Agreement, all incentive-based compensation payable under this Agreement shall be subject to any clawback policy adopted by the Company from time to time in accordance with the Dodd-Frank Wall Street Reform and Consumer Protection Act if and to the extent applicable to the Company.

	
4.

	
Benefits.

	
a.  

	
Employee Benefit Programs.  In addition to the compensation to which the Executive is entitled pursuant to the provisions of Section 3 of this Agreement, during the term of his employment the Executive is eligible to participate in any pension or retirement plan, insurance or other employee benefit plan that is maintained at that time by the Company for its senior executive employees, including programs of life, disability, medical and dental insurance, subject to the provisions of such plans and applicable law.

	
  

	
b.

	
Automobile.  During the term of his employment, the Executive shall be furnished with either an automobile, of a make and year reasonably satisfactory to the Company and the Executive, either owned or leased by the Company, or an automobile allowance sufficient to permit the Executive to obtain the use of such an automobile, the choice of providing such automobile or allowance to be at the mutual agreement of the Company and the Executive.

	
5.  

	
Termination.

	
a.  

	
Termination for Cause.  The Company may terminate the Executive’s employment pursuant to this Agreement at any time for Cause and the termination will become effective immediately at the time the Company provides written notice to the Executive.  If the Company decides to terminate the Executive’s employment under this Agreement for Cause, the Company will have no further obligations to make any payments to the Executive under this Agreement, except that the Executive will receive any unpaid accrued Base Salary through the date of termination of employment.  Upon termination for Cause, the Executive will not be entitled to any annual bonus payments other than those becoming due and payable prior to the termination date.  For purposes of this Agreement, the term “Cause” will mean:

	
(i)  

	
The Executive’s arrest or conviction for, plea of nolo contendere to, or admission of the commission of, any act of fraud, misappropriation, or embezzlement, or a criminal felony involving dishonesty or moral turpitude;

	
(ii)  

	
A breach by the Executive of any material provision of this Agreement, provided that the Executive is given reasonable notice of, and a reasonable opportunity to cure within thirty days of such notice (if such breach is curable), any such breach;

	
(iii)  

	
Any act or intentional omission by the Executive involving dishonesty or moral turpitude;

	
(iv)  

	
The Executive’s material failure to adequately perform his duties and responsibilities as such duties and responsibilities are, from time to time, in the Company’s discretion, determined and after reasonable notice of, and a reasonable opportunity to cure within thirty days of such notice (if such breach is curable), any such breach; or

	
(v)  

	
Any intentional independent act by the Executive that would cause the Company significant reputational injury.

	
b.  

	
Death or Disability.  This Agreement and the Company’s obligations under this Agreement will terminate upon the death or total disability of the Executive.  For purposes of this Section 5.b, “total disability” means that for a period of six consecutive months the Executive is incapable of substantially fulfilling the duties set forth in this Agreement because of physical, mental or emotional incapacity as determined by an independent physician mutually acceptable to the Company and the Executive.  If the Agreement terminates due to the death or disability of the Executive, the Company will pay the Executive or his legal representative any unpaid accrued Base Salary through the date of termination of employment (or, if terminated as a result of a disability, until the date upon which any disability policy maintained pursuant to Section 4 begins payment of benefits) plus any other compensation that may be earned and unpaid.

	
c.  

	
Voluntary Termination.  The Executive may elect to terminate this Agreement by delivering written notice to the Company sixty days prior to the date on which termination is elected; provided, however, that in the event of such termination, the Company may elect to accelerate the date of such termination to an earlier date if it so elects.  If the Executive voluntarily terminates his employment the Company will have no further obligations to make payments under this Agreement, except that the Company will pay to the Executive any unpaid accrued Base Salary through the date of voluntary termination of employment.  The Executive will not be entitled to any annual bonus payments other than those earned or becoming due and payable prior to the voluntary termination date.

 

 

 

  

  

  

	
d.  

	
Termination Without Cause.  If the Executive’s employment is terminated for any reason other than by death, disability, for Cause, or due to the Executive’s voluntary resignation of employment, the Company will have no further obligation to make payments under this Agreement, except (i) to the extent set forth in the award agreement attached hereto as Exhibit B with respect to the restricted Company common stock and (ii) that the Company will pay to the Executive an amount equal to 200% of then-current Base Salary in one lump sum payment on the forty-fifth day after the date of termination of the Executive’s employment, which shall be conditioned upon the delivery by the Executive of a release of claims reasonably acceptable to the Company that shall have not been revoked by the Executive pursuant to any revocation rights afforded by applicable law.

	
e.  

	
Compliance with Section 409A.  With respect to the payments provided by this Agreement upon termination of the Executive’s employment (the “Cash Severance Amount”), in the event the aggregate portion of the Cash Severance Amount payable during the first six months following the date of termination of the Executive’s employment would exceed an amount (the “Minimum Amount”) equal to two times the lesser of (i) the Executive’s annualized compensation as in effect for the calendar year immediately preceding the calendar year during which the Executive’s termination of employment occurs, or (ii) the maximum amount that may be taken into account under a qualified retirement plan pursuant to Section 401(a)(17) of the Internal Revenue Code of 1986, as amended (the “Code”), for the calendar year during which the Executive’s termination of employment occurs, then, to the extent necessary to avoid the imposition of additional income taxes or penalties or interest on the Executive under Section 409A of the Code, (x) the Company shall pay during the first six months following the date of termination of the Executive’s employment, at the time(s) and in the form(s) provided by the applicable sections of this Agreement, a portion of the Cash Severance Amount equal to the Minimum Amount, and (y) the Company shall accumulate the portion of the Cash Severance Amount that exceeds the Minimum Amount and that the Executive would otherwise be entitled to receive during the first six months following the date of termination of the Executive’s employment and shall pay such accumulated amount to the Executive in a lump sum on the first day of the seventh month following the date of termination of the Executive’s employment, and (z) the Company shall pay the remainder of the Cash Severance Amount, if any, on and after the first day of the seventh month following the date of termination of the Executive’s employment at the time(s) and in the form(s) provided by the applicable section(s) of this Agreement.

	
f.  

	
Compliance with Section 280G. If any payment or benefit due to the Executive from the Company or its subsidiaries or affiliates, whether under this Agreement or otherwise, would (if paid or provided) constitute an Excess Parachute Payment (as such term is used in Section 280G(b)(i) of the Code), then notwithstanding any other provision of this Agreement or any other commitment of the Company, that payment or benefit will be limited to the minimum extent necessary to ensure that no portion thereof will fail to be tax-deductible to the Company by reason of Section 280G of the Code.  The determination of whether any payment or benefit would (if paid or provided) constitute an Excess Parachute Payment will be made by the Company, in good faith and in its sole discretion.  If multiple payments or benefits are subject to reduction under this Section 5.f, such payments or benefits will be reduced in the order that maximizes the Executive’s economic position (as determined by the Company in good faith, in its sole discretion).  If, notwithstanding the initial application of this Section 5.f, the Internal Revenue Service determines that any payment or benefit provided to the Executive constituted an Excess Parachute Payment, this Section 5.f will be reapplied based on the Internal Revenue Service’s determination and the Executive will be required to promptly repay to the Company any amount in excess of the payment limit of this Section 5.f.

	
g.  

	
Return of Company Property.  Upon the termination of the Executive’s employment with the Company, the Executive shall leave with or promptly return to the Company all originals and copies of any documents, records, notebooks, files, correspondence, reports, memoranda or similar materials of or containing proprietary information, or other materials or property of any kind belonging to the Company (including keys and other tangible personal property of the Company), then in the Executive’s possession, whether prepared by the Executive or by others.

	
  

	
6.

	
Discoveries, Inventions, Improvements and Other Intellectual Property.  The Executive acknowledges that all worldwide rights to each discovery, invention or improvement which the Executive or the Company may develop, in whole or in part, during the term of this Agreement, whether patented or unpatented, which relate to or pertain to the business, functions or operations of the Company or its subsidiaries, and arise (wholly or in part) from the efforts of the Executive during the term hereof, will be the exclusive property of the Company, regardless of whether such discoveries, inventions, improvements and other intellectual property was developed or worked on while the Executive was engaged in employment or whether the Executive developed or worked on such intellectual property on the Executive’s own time.  The Company will own all rights to any copy, translation, modification, adaptation or derivation thereof and any product based thereon.  The Executive acknowledges that a violation of this Section 6 would lead to irreparable injury to the Company for which monetary damages could not adequately compensate and further acknowledges that in the event of such a breach, the Company shall be entitled to injunctive relief along with other such remedies the Company may have.

	
7.

	
Restrictive Covenants.

	
  

	
a.

	
Corporate Opportunity.  During the term of the Executive’s employment by the Company, the Executive shall submit to the Board all business, commercial and investment opportunities or offers presented to Executive or of which Executive becomes aware which relate to the scope of the current businesses engaged in by the Company (“Corporate Opportunities”). Unless approved by the Board in writing, the Executive shall not accept or pursue, directly or indirectly, any Corporate Opportunities on the Executive’s own behalf.

	
  

	
b.

	
Competition with the Company.  The Executive covenants and agrees that the Executive will not, directly or indirectly (whether as a sole proprietor, partner, director, officer, employee or in any other capacity as principal), (i) during the one year period following the voluntary termination of his employment or the termination of his employment by the Company for Cause, compete with the Company within the scope of the Company’s business of real estate in the Volusia County, Florida, area, or by rendering services to any entity engaged in a joint venture or similar project with the Company, if any, and (ii) during the six month period following the voluntary termination of his employment or the termination of his employment by the Company for Cause, compete with the Company within the scope of any other then-current business of the Company, if any.

	
8.  

	
Change in Control.

	
a.  

	
For the purposes of this Agreement, a “Change in Control” means any of the following events: (i) any person (as such term is used in Section 13(d) of the Securities Exchange Act of 1934, (the “Exchange Act”)) or group (as such term is defined in Sections 3(a)(9) and 13(d)(3) of the Exchange Act), other than a subsidiary of the Company or any employee benefit plan (or any related trust) of the Company or a subsidiary, becomes the beneficial owner of 50% or more of the Company’s outstanding voting shares and other outstanding voting securities that are entitled to vote generally in the election of directors (“Voting Securities”); or (ii) approval by the shareholders of the Company and consummation of either of the following: (A) a merger, reorganization, consolidation or similar transaction (any of the foregoing, a “Merger”) as a result of which the persons who were the respective beneficial owners of the outstanding common stock and/or the Voting Securities immediately before such Merger are not expected to beneficially own, immediately after such Merger, directly or indirectly, more than 50% of, respectively, the outstanding voting shares and the combined voting power of the voting securities resulting from such merger in substantially the same proportions as immediately before such Merger; or (B) a plan of liquidation of the Company or a plan or agreement for the sale or other disposition of all or substantially all of the assets of the Company.

	
b.  

	
The Company and the Executive agree that, if the Executive is in the employ of the Company on the date on which a Change in Control occurs (the “Change in Control Date”), the Company will continue to employ the Executive and the Executive will remain in the employ of the Company for the period commencing on the Change in Control Date and ending on the termination of his employment, to exercise such authority and perform such executive duties (including assistance in any transition matters designated by the Board following such Change in Control) as are commensurate with the authority being exercised and duties being performed by the Executive immediately prior to the Change in Control Date.

	
c.  

	
After the Change in Control Date, the Company will (i) continue to honor the terms of this Agreement, including as to Base Salary and other compensation set forth in Section 3, and (ii) continue employee benefits as set forth in Section 4 at levels in effect on the Change in Control Date (but subject to such reductions as may be required to maintain such plans in compliance with applicable federal law regulating employee benefits).

	
d.  

	
If after the Change in Control Date, (i) the Executive’s employment is terminated by the Company other than for Cause (as defined in Section 5.a above), or (ii) the Executive voluntarily terminates employment for Good Reason (as defined below), then the Executive will receive separation pay in an amount equal to 200% of then-current Base Salary in one lump sum payment on the forty-fifth day after the date of termination of the Executive's employment, which shall be conditioned upon the delivery by the Executive of a release of claims reasonably acceptable to the Company that shall have not been revoked by the Executive pursuant to any revocation rights afforded by applicable law.  “Good Reason” shall mean a material reduction in the Executive’s compensation or employment related benefits, or a material change in the Executive’s status, working conditions or management responsibilities. The Executive's termination of employment will not constitute a termination for Good Reason unless the Executive first provides written notice to the Company of the existence of the Good Reason within sixty days following the effective date of the occurrence of the Good Reason, and the Good Reason remains uncorrected by the Company for more than thirty days following such written notice of the Good Reason from the Executive to the Company, and the effective date of the Executive’s termination of employment is within one year following the effective date of the occurrence of the Good Reason.

	
9.  

	
Assignability. The rights and obligations of the Company under this Agreement will inure to the benefit of and be binding upon the successors and assigns of the Company, provided that such successor or assign will acquire all or substantially all of the assets and business of the Company.  The Executive’s rights and obligations under this Agreement may not be assigned or alienated and any attempt to do so by the Executive will be void and constitute a material breach hereunder.

	
10.

	
Non-Coercion.  The Executive represents and agrees that the Executive has not been pressured, misled, or induced to enter into this Agreement based upon any representation by the Company or its agents not contained herein.  The Executive represents that he has entered into this Agreement voluntarily, and after having the opportunity to consult with representatives of his own choosing and that his/her agreement is freely given.

	
11.

	
Severability.   The provisions of this Agreement constitute independent and separable covenants which shall survive termination of employment or expiration of this Agreement.  Any section, paragraph, phrase or other provision of this Agreement that is determined by a court of competent jurisdiction to be unconscionable or in conflict with any applicable statute or rule, shall be deemed, if possible, to be modified or altered so that it is not unconscionable or in conflict with or, if that is not possible, then it shall be deemed omitted from this Agreement.  The invalidity of any portion of this Agreement shall not affect the validity of the remaining portions.

	
12.

	
Prior Employment Agreements.  The Executive represents that he has not executed any agreement with any previous employer which may impose restrictions on his employment with the Company.

	
13.

	
Notice.  Notices given pursuant to the provisions of this Agreement will be sent by certified mail, postage prepaid, by overnight courier or facsimile to the following addresses:

If to the Company:

Consolidated-Tomoka Land Co.

1530 Cornerstone Boulevard, Suite 100

Daytona Beach, FL 32117

Fax:                                                      

If to the Executive:

John P. Albright

1435 Eagle Bend Drive 

Southlake, TX 76092 

Fax:                                                         

Either party may, from time to time, designate any other address to which any such notice to it or him will be sent.  Any such notice will be deemed to have been delivered upon the earlier of actual receipt or four days after deposit in the mail, if by certified mail.

	
14.

	
Miscellaneous.

	
a.  

	
Governing Law.  This Agreement will be governed by and construed in accordance with the laws of the state of Florida.

	
b.  

	
Venue.  Any action filed to enforce this Agreement will be filed in Volusia County, Florida or the United States District Court for the Middle District of Florida.

	
c.  

	
Waiver/Amendment.  The waiver by any party to this Agreement of a breach of any provision hereof by any other party will not be construed as a waiver of any subsequent breach by any party.  No provision of this Agreement may be terminated, amended, supplemented, waived or modified other than by an instrument in writing signed by the party against whom the enforcement of the termination, amendment, supplement, waiver or modification is sought.

	
d.  

	
Attorney’s Fees.  In the event any action is commenced to enforce any provision of this Agreement, the prevailing party will be entitled to reasonable attorney’s fees, costs, and expenses.

 

 

  

  

  

	
  

	
e.

	
Disputes.  Nothing in this Section 14.e shall preclude a party from initiating an action for temporary injunctive relief to temporarily enjoin any conduct threatening imminent and irreparable injury.  In all other circumstances in which a dispute arises hereafter between the parties, the parties agree to resolve all disputes through final and binding arbitration in Volusia County, Florida, by a single arbitrator in accordance with the Rules of the American Arbitration Association. The parties hereby expressly waive any and all right to a trial by jury with respect to any action, proceeding or other litigation resulting from or involving the enforcement of this Agreement or any other matter relating to the Executive’s employment.

	
  

	
f.

	
Entire Agreement.  This Agreement has been subject to substantial negotiations between the parties and thus represents the joint product of those negotiations between the parties and supersedes all previous understandings or agreements, whether written or oral.  Any uncertainty or ambiguity shall not be construed for or against any other party based on attribution of any drafting to any party.  Furthermore, this Agreement represents the entire agreement between the parties and shall not be subject to modification or amendment by an oral representation, or any other written statement by either party, except for a dated written amendment to this Agreement signed by the Executive and an authorized representative of the Company.

	
  

	
g.

	
Withholding. All payments (or transfers of property) to the Executive will be subject to tax withholding to the extent required by applicable law.

	
  

	
h.

	
Counterparts.  This Agreement may be executed in counterparts, all of which will constitute one and the same instrument.

[signature page follows]

  

  

 

  

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

EXECUTIVE:

                                                                                                       /s/John P. Albright_________________________________

John P. Albright

COMPANY:

Consolidated-Tomoka Land Co.,

a Florida corporation

By: /s/ Jeffry B. Fuqua                                                                     

Name:  Jeffry B. Fuqua                                                         

Title:   Chairman of the Board                                                      

  

  

  

Exhibit A

Form of Stock Option Award Agreement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

  

 

  

Exhibit B

Form of Performance-Based Restricted Stock Award Agreement

 

 

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