Document:

Ex10_5_ELee_RSUAgreement

Exhibit 10.5

DARDEN RESTAURANTS, INC. 
2002 STOCK INCENTIVE PLAN
RESTRICTED STOCK UNIT AWARD AGREEMENT
FOR EUGENE I. LEE, JR.

This Restricted Stock Unit Award Agreement (the “Agreement”) is between Darden Restaurants, Inc., a Florida corporation (the “Company” or “Corporation”), and you (Eugene I. Lee, Jr.), a person notified by the Company, and identified in the Company’s records, as the recipient of an Award of Restricted Stock Units during the Company’s fiscal year 2015.  This Agreement is effective as of October 13, 2014, the date communicated to you and set forth in the Company’s records (the “Grant Date”).  
The Company wishes to award to you a number of Restricted Stock Units, subject to certain restrictions as provided in this Agreement, in order to carry out the purpose of the Company’s 2002 Stock Incentive Plan (the “Plan”).
Accordingly, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Company and you hereby agree as follows:
1.Award of Restricted Stock Units.
The Company hereby grants to you, effective as of the Grant Date, an Award of Restricted Stock Units for that number of Restricted Stock Units having an aggregate Fair Market Value equal to the value communicated to you and set forth in the Company’s records and as reflected below (the “RSUs”), on the terms and conditions set forth in such communication, this Agreement and the Plan.  Each RSU represents the right to receive, on the vesting date or dates communicated to you and set forth in the Company’s records, one share of the Company’s Common Stock, no par value (the “Common Stock”).
(a)    RSUs having an aggregate Fair Market Value on the Grant Date equal to $300,000, based on the closing sales price of the shares of Common Stock on the New York Stock Exchange as reported in the consolidated transaction reporting system on the Grant Date.
2.    Rights with Respect to the RSUs.
The RSUs granted hereunder do not and shall not give you any of the rights and privileges of a shareholder of Common Stock, other than the right to receive dividends and other distributions as provided in Sections 8(b) and 8(c) hereof.  Your rights with respect to the RSUs shall remain forfeitable at all times prior to the date or dates on which such rights become vested, and the restrictions with respect to the RSUs lapse, in accordance with Sections 3 or 4 hereof.  
3.    Vesting.
Subject to the terms and conditions of this Agreement, the RSUs shall vest, and the restrictions with respect to the RSUs shall lapse, on the date or dates and in the amount or amounts communicated to you and set forth in the Company’s records and as reflected below if you remain continuously employed by the Company or an Affiliate of the Company until the respective vesting dates.
(a)    The grant of RSUs under Section 1(a) above shall vest on the one-year anniversary of the Grant Date, subject to your performance as Interim Chief Executive Officer of the Company, as determined by the Board following the first to occur of the one-year anniversary of the Grant Date and the end of your service as Interim Chief Executive Officer; provided, that:  (i) you remain employed at the Company for a period that extends through 60 days following the hiring of a non-interim Chief Executive Officer even if such non-interim Chief Executive Officer is you, and (ii) if a non-interim Chief Executive Officer is appointed or hired by the Company prior to the six-month anniversary of the Grant Date, then the RSUs will vest on a pro rata basis on the one-year anniversary of the Grant Date, determined by multiplying the number of RSUs that would otherwise vest on the one-year anniversary of the Grant Date times a fraction, the numerator of which is the number of days you served as Interim Chief Executive Officer beginning on the Grant Date and the denominator of which is 180.
4.    Early Vesting; Forfeiture. 
(a)    If you cease to be employed by the Company or an Affiliate of the Company prior to the vesting of the RSUs pursuant to Section 3 hereof, your rights to all of the unvested RSUs shall be immediately and irrevocably forfeited, except that:
(i)    if you die prior to the vesting of the RSUs pursuant to Section 3 hereof, then the RSUs will vest on a pro rata basis on the date of your death, based on the number of full months of employment completed from the Grant Date to the date of your death, divided by the number of full months in the vesting period for any unvested RSUs, and your rights to all of the unvested RSUs shall be immediately and irrevocably forfeited.  No transfer by will or the applicable laws of descent and distribution of any RSUs which vest by reason of your death shall be effective to bind the Company unless the Committee administering the Plan shall have been furnished with written notice of such transfer and a copy of the will or such other evidence as the Committee may deem necessary to establish the validity of the transfer; or
(ii)    if you become Disabled (as defined below) prior to the vesting of the RSUs pursuant to Section 3 hereof, then the RSUs will vest on a pro rata basis on the date on which the Committee administering the Plan makes the determination that you are Disabled, based on the number of full months of employment completed from the Grant Date to the date on which the Committee administering the Plan makes the determination that you are Disabled, divided by the number of full months in the vesting period for any unvested RSUs, and your rights to all of the unvested RSUs shall be immediately and irrevocably forfeited.  For purposes of this Agreement, “Disabled” means you have a disability due to illness or injury which is expected to be permanent in nature and which prevents you from performing the material duties required by your regular occupation, all as determined by the Committee administering the Plan.
Notwithstanding anything to the contrary in this Section 4, if your employment with the Company and its Affiliates terminates prior to the vesting of the RSUs (other than as a result of a termination by the Company for Cause (as defined below)), the RSUs shall vest in full (or to such lesser extent as provided in Section 3(a)(ii) hereof) on the date of your termination if, at the time of your termination, you have satisfied the condition set forth in Section 3(a)(i) hereof.  For purposes of this Agreement, “Cause” means (i) an act or acts of fraud or misappropriation on your part which result in or are intended to result in your personal enrichment at the expense of the Company and which constitute a criminal offense under State or Federal laws or (ii) conviction of a felony.
5.    Restriction on Transfer.
Except as contemplated by Section 4(a)(i) hereof, none of the RSUs may be sold, assigned, transferred, pledged, attached or otherwise encumbered, and no attempt to transfer the RSUs, whether voluntary or involuntary, by operation of law or otherwise, shall vest the transferee with any interest or right in or with respect to the RSUs.
6.    Financial Restatements.
This Section 6 only applies to you if at any time you were or are designated as an officer-level employee in the Company payroll system with the Peoplesoft identifier “OFC” or its equivalent.  Notwithstanding the provisions of Sections 3 and 4 of this Agreement, if (a) the Company is required to restate its financial statements due to fraud and (b) the Committee administering the Plan determines that you have knowingly participated in such fraud, then the Committee may, in its sole and absolute discretion, at any time within two years following such restatement, require you to, and you shall immediately upon notice of such Committee determination, return to the Company any shares of Common Stock underlying RSUs that vested under this Agreement and any dividends or other distributions with respect to the vested RSUs received by you or your personal representative and pay to the Company in cash the amount of any proceeds received by you or your personal representative from the disposition or transfer of any such shares of Common Stock, in each case during the period commencing two years before the beginning of the restated financial period and ending on the date of such Committee determination.  In addition, all of your rights to RSUs that are not vested on the date that the Committee makes such determination shall be immediately and irrevocably forfeited.  Notwithstanding anything to the contrary in this Section 6, the Committee shall have the authority and discretion to make any determination regarding the specific implementation of this Section 6 with respect to you.
7.    Settlement of RSUs.
No shares of Common Stock shall be issued to you prior to the date on which the RSUs vest, in accordance with the terms and conditions communicated to you and set forth in the Company’s records.  After the RSUs vest pursuant to Sections 3 or 4 hereof, the Company shall promptly, but no later than 30 days following the applicable vesting date, cause to be issued in your name one share of Common Stock for each RSU and pay to you any accumulated distributions (less applicable tax withholding) pursuant to Sections 8(b) and (c) hereof.  Following payment of the applicable withholding taxes pursuant to Section 9 hereof, the Company shall promptly cause such shares of Common Stock (less any shares withheld to pay taxes) to be delivered, either by book-entry registration or in the form of a stock certificate or certificates, registered in your name or in the names of your legal representatives, beneficiaries or heirs, as the case may be.
8.    Distributions and Adjustments.
(a)    If any RSUs vest subsequent to any change in the number or character of the Common Stock of the Company (through any stock dividend or other distribution, recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase or exchange of shares or otherwise) occurring after the Grant Date, you shall then receive upon such vesting the number and type of securities or other consideration which you would have received if such RSUs had vested prior to the event changing the number or character of the outstanding Common Stock.
(b)    Any additional shares of Common Stock, any other securities of the Company and any other property (except for cash dividends or other cash distributions) distributed with respect to the shares of Common Stock underlying the RSUs prior to the date or dates the RSUs vest shall be subject to the same restrictions, terms and conditions as the RSUs to which they relate and shall be promptly deposited with the Secretary of the Company or a custodian designated by the Secretary.  Any such accumulated distributions shall be distributed to you in accordance with Section 7 hereof.  If the RSUs are forfeited prior to vesting, any accumulated distributions payable in respect of such RSUs shall also be forfeited.
(c)    Any cash dividends or other cash distributions payable with respect to the shares of Common Stock underlying the RSUs prior to the vesting of the RSUs shall be distributed to you upon the vesting of the RSUs in the amount originally declared, without interest.  Any such accumulated cash dividends or other cash distributions shall be distributed to you in accordance with Section 7 hereof.  If the RSUs are forfeited prior to vesting, any accumulated cash dividends or other cash distributions payable in respect of such RSUs shall also be forfeited.
9.    Taxes.
(a)    You acknowledge that you will consult with your personal tax advisor regarding the income tax consequences of the grant of the RSUs, the vesting of the RSUs, the receipt of shares of Common Stock upon the vesting of the RSUs and any other matters related to this Agreement.  In order to comply with all applicable federal, state or local income tax laws or regulations, the Company may take such action as it deems appropriate to ensure that all applicable federal, state or local payroll, withholding, income or other taxes, which are your sole and absolute responsibility, are withheld or collected from you.
(b)    In accordance with the terms of the Plan, and such rules as may be adopted by the Committee administering the Plan, you may elect to satisfy any applicable tax withholding obligations arising from the receipt of, or the lapse of restrictions relating to, the RSUs by (i) delivering cash (including check, draft, money order or wire transfer made payable to the order of the Company), (ii) having the Company withhold a portion of the shares of Common Stock, cash or other property otherwise to be delivered having a Fair Market Value equal to the amount of such taxes, or (iii) delivering to the Company shares of Common Stock having a Fair Market Value equal to the amount of such taxes.  The Company will not deliver any fractional share of Common Stock but will pay, in lieu thereof, the Fair Market Value of such fractional share of Common Stock.  Your election must be made on or before the date that the amount of tax to be withheld is determined.
10.    Restrictive Covenants.
(a)    Non-Disclosure.  
(i)    During the course of your employment, before and after the execution of this Agreement, and as consideration for the restrictive covenants entered into by you herein, you have received and will continue to receive some or all of the Company’s various Trade Secrets (as defined under applicable law) and confidential or proprietary information, which includes the following whether in physical or electronic form:  (1) data and compilations of data related to Business Opportunities, (2) computer software, hardware, network and internet technology utilized, modified or enhanced by the Company or by employee in furtherance of employee’s duties with the Company; (3) compilations of data concerning Company products, services, customers, and end users including but not limited to compilations concerning projected sales, new project timelines, inventory reports, sales, and cost and expense reports; (4) compilations of information about the Company’s employees and independent contracting consultants; (5) the Company’s financial information, including, without limitation, amounts charged to customers and amounts charged to the Company by its vendors, suppliers, and service providers; (6) proposals submitted to the Company’s customers, potential customers, wholesalers, distributors, vendors, suppliers and service providers; (7) the Company’s marketing strategies and compilations of marketing data; (8) compilations of data or information concerning, and communications and agreements with, vendors, suppliers and licensors to the Company and other sources of technology, products, services or components used in the Company’s business; (9) the Company’s research and development records and data; and, (10) any summary, extract or analysis of such information together with information that has been received or disclosed to the Company by any third party as to which the Company has an obligation to treat as confidential (“Confidential Information”). “Business Opportunities” means all ideas, concepts or information received or developed (in whatever form) by employee concerning any business, transaction or potential transaction that constitutes or may constitute an opportunity for the Company to earn a fee or income, specifically including those relationships that were initiated, nourished or developed at the Company’s expense.  Confidential Information does not include data or information: (1) which has been voluntarily disclosed to the public by the Company, except where such public disclosure has been made by you without authorization from the Company; (2) which has been independently developed and disclosed by others; or (3) which has otherwise entered the public domain through lawful means.  
(ii)    All Confidential Information, Trade Secrets, and all physical and electronic embodiments thereof are confidential and are and will remain the sole and exclusive property of the Company.  During the term of employment and for a period of five (5) years following the termination of your employment with the Company for any reason, with or without cause, and upon the initiative of either you or the Company, you agree that you shall protect any such Confidential Information and Trade Secrets and shall not, except in connection with the performance of your remaining duties for the Company, use, disclose or otherwise copy, reproduce, distribute or otherwise disseminate any such Confidential Information or Trade Secrets, or any physical or electronic embodiments thereof, to any third party.  Provided, however, that you may make disclosures required by a valid order or subpoena issued by a court or administrative agency of competent jurisdiction, in which event you will promptly notify the Company of such order or subpoena to provide the Company an opportunity to protect its interests.
(iii)    Upon request by the Company and, in any event, upon termination of the your employment with the Company for any reason, you will promptly deliver to the Company (within twenty-four (24) hours) all property belonging to the Company, including but without limitation, all Confidential Information, Trade Secrets and all electronic and physical embodiments thereof, all Company files, customer lists, management reports, memoranda, research, Company forms, financial data and reports and other documents (including but not limited to all such data and documents in electronic form) supplied to or created by you in connection with your employment with the Company (including all copies of the foregoing) in your possession or control, and all of the Company’s equipment and other materials in your possession or control.  You agree to allow the Company, at its request, to verify return of Company property and documents and information and/or permanent deletion of the same, through inspection of personal computers, personal storage media, third party websites, third party e-mail systems, personal digital assistant devices, cell phones and/or social networking sites on which Company information was stored during your employment with the Company. 
(iv)    Nothing contained herein shall be in derogation or a limitation of the rights of the Company to enforce its rights or your duties under the applicable law relating to Trade Secrets.
(b)    Non-Competition.  You agree that, while employed by the Company and for a period of twenty-four (24) months following the termination of your employment with the Company for any reason, with or without cause, whether upon the initiative of either you or the Company (the “Restricted Period”), you will not provide or perform the same or substantially similar services, that you provided to the Company, on behalf of any Direct Competitor, directly (i.e., as an officer or employee) or indirectly (i.e., as an independent contractor, consultant, advisor, board member, agent, shareholder, investor, joint venturer, or partner), anywhere within the United States of America (the “Territory”).  “Direct Competitor” means any individual, partnership, corporation, limited liability company, association, or other group, however organized, who competes with the Company in the full service restaurant business.
(i)    If you are a resident of California and subject to its laws, the restrictions set forth in paragraph (b) above shall not apply to you.  
(ii)    Nothing in this provision shall divest you from the right to acquire as a passive investor (with no involvement in the operations or management of the business) up to 1% of any class of securities which is:  (i) issued by any Direct Competitor, and (ii) publicly traded on a national securities exchange or over-the-counter market.  
(c)    Non-Solicitation.  You agree that you shall not at any time during your employment and during the Restricted Period, on behalf of yourself or any other Person, directly or by assisting others, solicit, induce, encourage or cause any of the Company’s vendors, suppliers, licensees, or other Persons with whom the Company has a contractual relationship and with whom you have had Material Contact during the last two years of your employment, to cease doing business with the Company or to do business with a Direct Competitor.  “Material Contact” means contact between you and a Person:  (1) with whom or which you dealt on behalf of the Company; (2) whose dealings with the Company were coordinated or supervised by you; (3) about whom you obtained Confidential Information in the ordinary course of business as a result of your association with the Company; or (4) who receives products or services authorized by the Company, the sale or provision of which results or resulted in compensation, commission, or earnings for you within two years prior to the date of the termination of your employment with the Company.  “Person” means any individual, firm, partnership, association, corporation, limited liability entity, trust, venture or other business organization, entity or enterprise.  
(d)    Non-Recruitment.  You agree that during the course of employment and during the Restricted Period, you will not, on behalf of yourself or any other Person, directly or by assisting others, solicit, induce, persuade, or encourage, or attempt to solicit, induce, persuade, or encourage, any individual employed by the Company, with whom you have worked, to terminate such employee’s position with the Company, whether or not such employee is a full-time or temporary employee of the Company and whether or not such employment is pursuant to a written agreement, for a determined period, or at will.  The provision of this paragraph shall only apply to those individuals employed by the Company at the time of solicitation or attempted solicitation.  If you are a resident of California and subject to its laws, the restrictions set forth in paragraph (c) above and this paragraph (d) shall be limited to apply only where Employee uses or discloses Confidential Information or Trade Secrets when engaging in the restricted activities.
(e)    Acknowledgements.  You acknowledge that the Company is in the business of marketing, developing and establishing its restaurant brands and concepts on a nationwide basis and that the Company makes substantial investments and has established substantial goodwill associated with its restaurant brands and concepts, supplier relationships and marketing programs throughout the United States.  You therefore acknowledge that the Territory in which the Company’s Business is conducted is, at the very least, throughout the United States.  You further acknowledge and agree that it is fair and reasonable for the Company to take steps to protect its Confidential Information, Trade Secrets, good will, business relationships, employees, economic advantages, and/or other legitimate business interests from the risk of misappropriation of or harm to its Confidential Information, Trade Secrets, good will, business relationships, employees, economic advantages, and/or other legitimate business interests.  You acknowledge that the consideration, including this Award Agreement, continued employment, specialized training, and the Confidential Information and Trade Secrets provided to you, gives rise to the Company’s interest in restraining you from competing with the Company and that any limitations as to time, geographic scope and scope of activity to be restrained are reasonable and do not impose a greater restraint than is necessary to protect Company’s Confidential Information, Trade Secrets, good will, business relationships, employees, economic advantages, and/or other legitimate business interests, and will not prevent you from earning a livelihood.  
(f)    Survival of Covenants.  The provisions and restrictive covenants in this Section of this Agreement shall survive the expiration or termination of this Agreement for any reason.  You agree not to challenge the enforceability or scope of the provisions and restrictive covenants in this Section.  You further agree to notify all future persons, or businesses, with which you become affiliated or employed by, of the provisions and restrictions set forth in this Section, prior to the commencement of any such affiliation or employment.
(g)    Injunctive Relief.  You acknowledge that if you breach or threaten to breach any of the provisions of this Agreement, your actions will cause irreparable harm and damage to the Company which cannot be compensated by damages alone.  Accordingly, if you breach or threaten to breach any of the provisions of this Agreement, the Company shall be entitled to injunctive relief, in addition to any other rights or remedies the Company may have.  You hereby waive the requirement for a bond by the Company as a condition to seeking injunctive relief.  The existence of any claim or cause of action by you against the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of your agreements under this Agreement.
(h)    Forfeiture.  In the event that you violate the terms of this Section, you understand and agree that in addition to the Company’s rights to obtain injunctive relief and damages for such violation, any and all rights to any award under this Agreement, whether vested or unvested, shall be forfeited and extinguished.  
11.    General Provisions
(a)    Interpretations.  This Agreement is subject in all respects to the terms of the Plan.  A copy of the Plan is available upon your request.  Terms used herein which are defined in the Plan shall have the respective meanings given to such terms in the Plan, unless otherwise defined herein.  In the event that any provision of this Agreement is inconsistent with the terms of the Plan, the terms of the Plan shall govern.  Any question of administration or interpretation arising under this Agreement shall be determined by the Committee administering the Plan, and such determination shall be final, conclusive and binding upon all parties in interest.
(b)    No Right to Employment.  Nothing in this Agreement or the Plan shall be construed as giving you the right to be retained as an employee of the Company or any Affiliate of the Company.  In addition, the Company or an Affiliate of the Company may at any time dismiss you from employment, free from any liability or any claim under this Agreement, unless otherwise expressly provided in this Agreement.
(c)    Securities Matters.  The Company shall not be required to deliver any shares of Common Stock until the requirements of any federal or state securities or other laws, rules or regulations (including the rules of any securities exchange) as may be determined by the Company to be applicable are satisfied.
(d)    Headings.  Headings are given to the sections and subsections of this Agreement solely as a convenience to facilitate reference.  Such headings shall not be deemed in any way material or relevant to the construction or interpretation of this Agreement or any provision hereof.
(e)    Arbitration.  Except for injunctive relief as set forth herein, the parties agree that any dispute between the parties regarding this Agreement shall be subject to Steps 3 and 4 of the Darden Dispute Resolution Process (the “DRP”) and submitted to binding arbitration in Orlando, Florida pursuant to the DRP.  
(f)    Governing Law.  This Agreement shall be governed and construed in accordance with the laws of the State of Florida (without giving effect to the conflict of law principles thereof).  Employee agrees that the state and federal courts of Florida shall have jurisdiction over any litigation between you and the Company regarding this Agreement, and you expressly submit to the exclusive jurisdiction and venue of the federal and state courts sitting in Orange County, Florida.
(g)    Notices.  You should send all written notices regarding this Agreement or the Plan to the Company at the following address:
Darden Restaurants, Inc. 
    Supervisor, Stock Compensation Plans 
    1000 Darden Center Drive 
    Orlando, FL  32837
(h)    Award Agreement and Related Documents.  This Restricted Stock Unit Award Agreement shall have no force or effect unless you have been notified by the Company, and identified in the Company’s records, as the recipient of a Restricted Stock Unit Award grant.  YOU MUST REVIEW AND ACKNOWLEDGE ACCEPTANCE OF THE TERMS OF THIS AGREEMENT, INCLUDING SPECIFICALLY THE RESTRICTIVE COVENANTS, BY EXECUTING THIS AGREEMENT ELECTRONICALLY VIA YOUR ESTABLISHED ACCOUNT ON THE MORGAN STANLEY SMITH BARNEY WEBSITE WITHIN 60 DAYS OF THE DATE OF GRANT; PROVIDED, HOWEVER, THAT THE COMMITTEE MAY, AT ITS DISCRETION, EXTEND THIS DATE.  FAILURE TO ACCEPT THE REFERENCED TERMS AND TO EXECUTE THIS AGREEMENT ELECTRONICALLY WILL PRECLUDE YOU FROM RECEIVING YOUR RESTRICTED STOCK UNIT GRANT.  In connection with your Restricted Stock Unit grant and this Award Agreement, the following additional documents were made available to you electronically, and paper copies are available on request directed to the Company’s Compensation Department:  (i) the Plan; and (ii) a Prospectus relating to the Plan.Exhibit 10.1

 

 

EMPLOYMENT AGREEMENT

 

AGREEMENT made as of October 1,
2014 between Carnival Bay Holdings, Inc., a Nevada corporation with offices at 4644 W. Gandy Blvd., Suite 4, Tampa Florida 33611
(hereinafter called the “Company”), and Donna Dreslin, residing at 12745 Peloria Court, Seminole, Florida 33778 (hereinafter
referred to as the “Executive”).

 

WITNESSETH:

 

WHEREAS, the Company
is engaged in the business of providing outsourced accounting and financial services; and

 

WHEREAS, the Company’s
Board of Directors (the “Board” or the “Board of Directors”) believes that the Executive possesses the
skills and abilities necessary for the Company to meet its current and future objectives; and 

 

WHEREAS, the Executive
desires to provide such services to the Company in such capacities, on and subject to the terms and conditions hereof;

 

NOW, THEREFORE, in consideration of
the premises and the mutual promises contained herein and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties agree as follows:

 

	1. 	EMPLOYMENT

 

Subject to all of the terms and conditions
hereof, the Company does hereby employ the Executive and the Executive does hereby accept such employment.

 

	2. 	TERM

 

The term of this Agreement shall commence
on the date hereof and shall continue until September 30, 2016 (the “Term”), unless sooner terminated as herein provided
including termination under any of the subsections described in Section 7.

 

	3. 	COMPENSATION

 

Executive shall not be entitled to any
compensation, bonus payment or benefits until the Company has reached $200,000 in gross revenues (the “Revenue Milestone”).  Upon
the Company reaching the Revenue Milestone, Executive shall be entitled to the following:

 

(a)           Base
Salary. The Company agrees to pay the Executive during the Term hereof a salary at the annual rate of: (1) $85,000.00.  The
Company shall make all salary payments in equal bi-weekly installments in arrears.  Unless otherwise determined by the
Board, Executive’s Base Salary at the commencement of the second and each subsequent year shall be adjusted to provide for
all cost of living increases based upon the percentage increase (if any) in the Consumer Price Index for All Urban Consumers (1967=100;
All Cities), prepared by the United States Bureau of Labor Statistics, or any successor thereto, over said Index in effect at the
commencement of the preceding calendar year.  All salary, bonus, or other compensation payable to the Executive shall
be subject to the customary withholding, FICA, medical and other tax and other employment taxes and deductions as required by federal,
state and local law with respect to compensation paid by an employer to an employee.

 

(b)           Bonus.
Bonuses to all of the Company’s employees are determined by the Board of Directors at the end of every fiscal year, and will
depend upon the progress and profitably of the Company.  The Company does not guarantee Executive the payment of any
bonuses.

 

    	 

    	 

    

 

	4. 	DUTIES

 

The Executive is hereby employed as
Chief Executive Officer of the Company and shall perform the following services in connection with the general business of the
Company:

 

(a)          Duties
as Chief Executive Officer.  Except as otherwise determined from time to time by the Board of Directors, Executive
shall oversee all operations of the Company including but not limited to evaluation of business opportunities, and compliance with
all tax and regulatory filings.

 

(b)          Compliance.  The
Executive hereby agrees to observe and comply with such reasonable rules and regulations of the Company as may be duly adopted
from time to time by the Board of Directors and otherwise to carry out and perform those orders, directions and policies stated
to her from time to time by the Board of Directors, either as specified in the minutes of the proceedings of the Board of Directors
of the Company or otherwise in writing that are reasonably necessary and appropriate to carry out her duties hereunder. Such orders,
directions and policies shall be legal and shall be consistent with the Executive's position as Chief Executive Officer.

 

	5. 	EXTENT OF SERVICES

 

The Executive agrees to serve the Company
faithfully and to the best of her ability and shall devote her full time, attention and energies to the business of the Company
during customary business hours. The Executive agrees to carry out her duties in a competent and professional manner and to at
all times promote the best interests of the Company. The Executive shall not, during the term of her employment hereunder,
engage in any other business, whether or not pursued for profit.  Nothing contained herein shall be construed as preventing
the Executive from investing in any other business or entity which is not in competition with the business of the Company.  Nothing
contained herein shall be construed as preventing the Executive from engaging in (1) personal business affairs and other personal
matters, (2) serving on civic or charitable boards or committees, or (3) serving on the board of directors of companies that do
not compete directly or indirectly with the Company, provided however, that none of such activities materially interferes
with the performance of her duties under this Agreement.

 

	
        6. 
	
        BENEFITS AND EXPENSES

 

Upon the Company reaching Revenue Milestone,
and for the duration of the Term of this agreement Executive shall be entitled to, and the Company shall provide, the following
benefits in addition to those specified in Section 3:

 

(a)          Vacation.  The
Executive shall be entitled to three (3) weeks vacation in each twelve (12) month period during the Term. Vacation may be taken
at such time(s) as Executive may determine provided that such vacation does not interfere with the Company's business operations.
The Executive must use her vacation in any event by May 31 of the year next following the year in which the vacation accrues or
such vacation time shall expire.  The Executive shall not be entitled to compensation for unused vacation except that,
upon termination of her employment, the Company shall pay to the Executive for all of her accrued, unexpired vacation time.

 

(b)          Expense
Reimbursement.  The Company shall reimburse the Executive upon submission of vouchers for her out-of-pocket expenses
for travel, entertainment, meals and the like reasonably incurred by her pursuant to her employment hereunder in accordance with
the general policy of the Company as adopted by its Board of Directors from time to time.

 

(c)          Health
Insurance.  The Company shall provide the Executive with health insurance in the coverage consistent with those provided
to other key executives of the Company as determined by the Board of Directors from time to time.

 

(e)          Disability.  If
the Company maintains disability insurance, then the Company shall provide a disability policy for the Executive comparable to
the policies in force for other similar executives in the Company. If the Company does not maintain a disability policy, then
the Executive may obtain such a policy in amounts equal to her salary and be reimbursed by the Company for all premium payments
thereunder.

 

(f)           Other
Benefits. The Company shall provide to the Executive other benefits as reasonably determined by the Board from time to time.

 

    	2

    	 

    

 

	7.	TERMINATION; DISABILITY; RESIGNATION; TERMINATION WITHOUT CAUSE

 

(a)          Termination
for Cause.  The Company shall have the right to terminate the Executive's employment hereunder:

 

(1)          For
cause upon ten (10) business days' prior written notice to Executive.  Upon such termination, Executive shall have no
further duties or obligations under this Agreement (except as provided in Section 8) and the obligations of the Company to Executive
shall be as set forth below.  For purposes of this Agreement, “cause” shall mean:

 

(A)   
Executive’s conviction of a felony under federal or state law;

 

(B)   
Executive’s failure to perform (other than as a result of Executive's being Disabled), in any material respect, any of her
duties or obligations under or in accordance with this Agreement and either (i) the Executive fails to cure such failure within
ten (10) business days following receipt of notice from the Company, or (ii) if such failure by its nature cannot be cured within
such ten business day period, the Executive fails to commence to cure such failure within such ten business day period and proceed
to cure such failure within thirty (30) days thereafter.

 

(C)   
Executive commits any dishonest, malicious or grossly negligent act which is materially detrimental to the business or reputation
of the Company, or the Company’s business relationships, provided, however, that in such event the Company shall give the
Executive written notice specifying in reasonable detail the reason for the termination.

 

Notwithstanding the foregoing, the Executive
may, within ten (10) business days following delivery of the notice of termination referred to in the preceding paragraph, by written
notice to the Board of Directors, cause the matter of the termination of her employment by the Company to be discussed at the next
regularly scheduled meeting of the Board of Directors or at a special meeting of the Board of Directors requested by a majority
of the members of the Board of Directors who are not employees of the Company or any of its subsidiaries.  The Executive
shall be entitled to be present and to be represented by counsel at such meeting which shall be conducted according to a procedure
deemed equitable by a majority of the directors present.  If, at such meeting, it shall be determined that the employment
of the Executive had been terminated without proper cause, the provisions of this Agreement shall be reinstated with the same force
and effect as if the notice of termination had not been given; and the Executive shall be entitled to receive the compensation
and other benefits provided herein for the period from the date of the delivery of the notice of termination through the date of
such reinstatement.

 

In the event, the Company terminates
the Executive's employment for cause, then the Executive shall be entitled to receive through the date of termination:  (1) 
her base salary as defined in Section 3 hereof; and (2) the benefits provided in Section 6 hereof including all accrued but unpaid
vacation;

 

In the event
that Executive’s employment is terminated by the Company without cause including but not limited to an involuntary change
in position or termination of the Executive as a result of a material breach of this Agreement by the Company (any of the foregoing,
an “Involuntary Termination”), Executive shall receive from the Company, through the effective date of the Involuntary
Termination:  (1)  her base salary as defined in Section 3(a) hereof; (2) the benefits provided in Section 6 hereof
including all accrued but unpaid vacation; and (3) an additional two weeks’ pay of the Executive’s then current Base
Salary.

 

(c)          Disability.  The
Company shall have the right to terminate the Executive's employment hereunder:

 

(1)          By
reason of the Executive's becoming Disabled for an aggregate period of ninety (90) days in any consecutive three hundred sixty
(360) day period (the “Disability Period”).

 

(A)   
“Disabled” as used in this Agreement means that, by reason of physical or mental incapacity, Executive shall fail or
be unable to substantially perform the customary duties of her employment.

 

    	3

    	 

    

 

(B)   
If the existence of a disability is in dispute, it shall be resolved by two physicians, one appointed by Executive and one appointed
by the Board of Directors of the Company.  If the two physicians so selected cannot agree as to whether or not Executive
is Disabled as defined in subsection (A) above, the two physicians so selected shall designate a third physician and a majority
of the three physicians so selected shall determine whether or not Executive is Disabled.

 

(C)   
In the event Executive is Disabled, during the period of such disability she shall continue to receive her base compensation in
the amount set forth in Section 3 hereof, which base compensation shall be reduced by the amount of all disability benefits she
actually receives under any disability insurance program in place with the Company until the first to occur of (1) the cessation
of the Disability or (2) the termination of this Agreement by the Company at any time after the Disability Period.  During
the period of Disability and prior to termination, the Executive shall continue to receive the benefits provided in Section 6 hereof.

 

(D)   
For the purposes of this Section 7(b), any amounts to be paid to Executive by the Company pursuant to subsection (C) above, shall
not be reduced by any disability income insurance proceeds received by her under any disability insurance policies owned or paid
for by the Executive.

 

(E)   
If the Executive is terminated at the end of the Disability Period, then the Executive shall receive through the date of termination:
(1) her base salary as defined in Section 3 hereof; (2) the benefits provided in Section 6 hereof including all accrued but unpaid
vacation; and (3) an additional two weeks’ pay of the Executive’s then current Base Salary.

 

(d)           Death.  The
Company's employment of the Executive shall terminate upon her death and all payments and benefits shall cease upon such date provided,
however, that under this Agreement the estate of such Executive shall be entitled to receive through the date of termination (1)
her base salary as defined in Section 3 hereof, (2) the benefits provided in Section 6 hereof including all accrued but unpaid
vacation; and (3) an additional two weeks’ pay of the Executive’s then current Base Salary.

 

(e)           Termination
by the Executive.

 

The Executive may elect, by written
notice to the Company, such notice to be effective immediately upon receipt by the Company, to terminate her employment hereunder
if:

 

(1)          The Company sells all or substantially all of its assets;

 

(2)          The Company merges or consolidates with another business entity in a transaction immediately following which the holders of all
of the outstanding shares of the voting capital stock of the Company own less than a majority of the outstanding shares of the
voting capital stock of the resulting entity (whether or not the resulting entity is the Company); provided, however, that the
Executive shall not be permitted to terminate her employment under this subsection unless she notifies the Company in writing that
she does not approve of the directors selected to serve on the Board after the merger or similar transaction described herein;

 

(3)          More than fifty (50%) percent of the outstanding shares of the voting capital stock of the Company are acquired by a person or
group (as such terms are used in Section 13(d) of the Securities Exchange Act of 1934, as amended), which person or group includes
neither the Executive nor the holders of the majority of the outstanding shares of the voting capital stock of the Company on the
date hereof; provided, however, that the Executive shall not be permitted to terminate her employment under this subsection unless
she notifies the Company in writing that she does not approve of the directors selected to serve on the Board after the merger
or similar transaction described herein;

 

(4)          The
Company defaults in making any of the payments required under this Agreement and said default continues for a thirty (30) day period
after the Executive has given the Company written notice of the payment default.

 

    	4

    	 

    

 

If the Executive elects to terminate
her employment hereunder pursuant to this Section 7(e), then (1) the Company shall continue to pay to the Executive her salary
as provided in Section 3 hereof through the end of the Term; (2) the Company shall continue to provide to the Executive the benefits
provided in Section 6 hereof through the end of the Term; and (3) the Company shall provide Executive an additional two weeks’
pay of the Executive’s then current Base Salary.

 

(f)           Resignation.  If
the Executive voluntarily resigns during the term of this Agreement other than pursuant to Section 7(e) hereof, then all payments
and benefits shall cease on the effective date of resignation, provided that under this Agreement the Executive shall be entitled
to receive through the date of such resignation: (1) her base salary as defined in Section 3 hereof, (2) the benefits provided
in Section 6 hereof including all accrued but unpaid vacation; and (3) an additional two weeks’ pay of the Executive’s
then current Base Salary.

 

(g)           Mitigation.
In the event of the termination of this Agreement by the Executive as a result of a material breach by the Company of any of its
obligations hereunder, or in the event of the termination of the Executive’s employment by the Company in breach of this
Agreement, the Executive shall not be required to seek other employment in order to mitigate her damages hereunder.

 

8.           CONFIDENTIALITY;
RESTRICTIVE COVENANTS; NON COMPETITION

 

(a)           Non-Disclosure
of Information.  (1) The Executive recognizes and acknowledges that by virtue of her position as a key executive,
she will have access to the lists of the Company's referral sources, suppliers, advertisers and customers, financial records and
business procedures, sales force and personnel, programs, software, selling practices, plans, special methods and processes for
electronic data processing, custom research services in marketing strategy, and other unique business information and records (collectively
“Proprietary Information”), as same may exist from time to time, and that they are valuable, special and unique assets
of the Company's business. The Executive also may develop on behalf of the Company a personal acquaintance with the present and
potential future clients and customers of the Company, and the Executive’s acquaintance may constitute the Company’s
sole contact with such clients and customers.

 

(a)(2)
The Executive will not during the Term of her employment, and at any time following the end of the Term of or earlier termination
of this Agreement regardless of the reason therefor, disclose trade secrets or other confidential information about the Company,
including but not limited to Proprietary Information, to any person, firm, corporation, association or other entity for any reason
or any purpose whatsoever or utilize such Proprietary Information for her own benefit or the benefit of any third party; provided,
however, that nothing contained herein shall prohibit the Executive from using her personal acquaintance with any clients or customers
of the Company at any time in a manner that is not inconsistent with their remaining as clients or customers of the Company.

 

(a)(3)
All equipment, records, files, memoranda, computer print-outs and data, reports, correspondence and the like, relating to the business
of the Company which Executive shall use or prepare or come into contact with shall remain the sole property of the Company.  The
Executive shall immediately turn over to the Company all such material in Executive's possession, custody or control at such time
as this Agreement is terminated.

 

(a)(4)
“Proprietary Information” shall not include information that was a matter of public knowledge on the date of this Agreement
or subsequently becomes public knowledge other than as a result of having been revealed, disclosed or disseminated by Executive,
directly or indirectly, in violation of this Agreement.

 

(b)           Non-Solicitation.  The  Executive
covenants and agrees that during the term of her employment, and for a two (2) year period immediately following the end of the
Term of or earlier termination of this Agreement, regardless of the reason therefor, the Executive shall not solicit, induce, aid
or suggest to: (1) any employee to leave such employ, (2) any contractor, consultant or other service provider to terminate such
relationship, or (3) any customer, agency, vendor, or supplier of the Company to cease doing business with the Company.

 

    	5

    	 

    

 

(c)           Non-Competition.  For
purposes of this Section 8 (c) the parties agree that the “business of the Company” shall be defined to include, but
not be limited to, managing properties for the purposes of student housing pursuant to a management agreement and collecting rent,
advertising for student housing, showing and leasing units or apartments, coordinating with service professions for maintenance
and repairs, or arranging promotional events for marketing.

 

The  Executive covenants and agrees that during
the Term Executive shall not engage in any activity or render service in any capacity, directly or indirectly, (whether as principal,
director, officer, investor, employee, consultant or otherwise) for or on behalf of any person or persons or entity in the United
States or anywhere else in the world if such activity or service (1) directly or indirectly involves or relates to any business
which is in competition with the business of the Company or (2) other business acquired or begun by the Company during the period
of the Executive’s employment hereunder but in the latter event only if the Executive was directly involved in the operation
of such other business. It is understood and agreed that nothing herein contained shall prevent the Executive from engaging in
discussions concerning business arrangements to become effective upon the expiration of the term of this covenant not to compete.

 

(d)           Enforcement.  In
view of the foregoing, the Executive acknowledges and agrees that it is reasonable and necessary for the protection of the good
will, business, trade secrets, confidential information and Proprietary Information of the Company that she makes the covenants
in this Section 8 and that the Company will suffer irreparable injury if the Executive engages in the conduct prohibited by Section
8 (a), (b) or (c) of this Agreement. The Executive agrees that upon a breach, threatened breach or violation by her of any of the
foregoing provisions of this Section 8, the Company, in addition to all other remedies it may have including an action at law for
damages, shall be entitled as a matter of right to injunctive relief, specific performance or any other form of equitable relief
in any court of competent jurisdiction without being required to post bond or other security and without having to prove the inadequacy
of the available remedies at law, to enjoin and restrain the Executive and each and every other person, partnership, association,
corporation or organization acting in concert with the Executive, from the continuance of any action constituting such breach.
The Company shall also be entitled to recover from the Executive all of its reasonable costs incurred in the enforcement of this
Section 8 including its reasonable legal fees. The Executive acknowledges that the terms of Section 8(a), (b) and (c) are reasonable
and enforceable and that, should there be a violation or attempted or threatened violation by the Executive of any of the provisions
contained in these subsections, the Company shall be entitled to relief by way of injunction, specific performance or other form
of equitable relief.  In the event that any of the foregoing covenants in Sections 8 (a), (b) or (c) shall be deemed
by any court of competent jurisdiction, in any proceedings in which the Company shall be a party, to be unenforceable because of
its duration, scope, or area, it shall be deemed to be and shall be amended to conform to the scope, period of time and geographical
area which would permit it to be enforced.

 

(e)           Independent
Covenants.   The Company and the Executive agree that the covenants contained in this Section 8 shall each be
construed as a separate agreement independent of any of the other terms and conditions of this Agreement, and the existence of
any claim by the Executive against the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense
by the Executive to the Company’s enforcement of any of the covenants of this Section 8.

 

(f)           Exclusion
from Arbitration.  The terms and conditions of this Section 8 including the enforcement thereof by the Company are
specifically excluded from the arbitration of all other matters under this Agreement as provided in Section 12 hereof.

 

	9. 	INDEMNIFICATION.

 

The Company shall indemnify the Executive
to the maximum extent permitted under the Nevada Revised Statutes, or any successor thereto, and shall promptly advance any expenses
incurred by the Executive prior to the final disposition of the proceeding to which such indemnity relates upon receipt from the
Executive of a written undertaking to repay the amount so advanced if it shall be determined ultimately that the Executive is not
entitled to indemnity under the standards set forth in the Nevada Revised Statutes or its successor.  The Employer shall
use commercially reasonable efforts to obtain and maintain throughout the Term of the employment of the Executive hereunder directors’
and officers’ liability insurance for the benefit of the Executive.  The indemnification obligations of the Company
under this Section 9 shall survive the termination of the Term or of this Agreement for any reason whatsoever unless the Agreement
is terminated for cause.

 

    	6

    	 

    

 

	10. 	NOTICES.

 

(a)           Any
and all notices or other communications given under this Agreement shall be in writing and shall be deemed to have been duly given
on (1) the date of delivery, if delivered in person to the addressee, (2) the next business day if sent by overnight courier, or
(3) three (3) days after mailing, if mailed within the continental United States, postage prepaid, by certified or registered mail,
return receipt requested, to the party entitled to receive same, at her or its address set forth below:

 

If to the Company:

 

4644 W. Gandy Blvd., Suite 4

Tampa, Florida 33611

Attention: Donna Dreslin

Fax No.: 966/726/5505

 

If to the Executive:

 

Donna Dreslin

12745 Peloria Court

Seminole, Florida 33778

Email: Dreslinfinancial@gmail.com

 

(b)           The
parties may designate by notice to each other any new address for the purposes of this Agreement as provided in this Section 10.

 

	11. 	MISCELLANEOUS PROVISIONS

 

(a)           Applicable Law.  This document shall, in all respects, be governed by the laws of the State
of Florida excluding any conflicts of law provisions.  The parties acknowledge that substantially all of the negotiations
relating to this Agreement were conducted in, and that this Agreement has been executed by both parties in State of Florida.

 

(b)           Survival.  The
parties agree that the covenants contained in Section 3 hereof shall survive any termination of employment by the Executive and
any termination of this Agreement.  In addition, the parties agree that any compensation or right which shall have accrued
to the Executive as of the date of any termination of employment or termination hereof shall survive any such termination and shall
be paid when due to the extent accrued on the date of such termination.

 

(c)           Assignability.  All
of the terms and provisions contained herein shall inure to the benefit of and shall be binding upon the parties and their respective
heirs, personal representatives, successors and assigns.  The obligations of the Executive may not be delegated, except
as set forth herein, however, and the Executive may not, without the Company’s written consent thereto, assign, transfer,
convey, pledge, encumber, hypothecate or otherwise dispose of this Agreement or any interest therein.  Any such attempted
delegation or disposition shall be null and void and without effect.  The Company and the Executive agree that this Agreement
and all of the Company’s rights and obligations hereunder may be assigned or transferred by the Company to and may be assumed
by and become binding upon and may inure to the benefit of any affiliate of or successor to the Company.  The term “successor”
shall mean, with respect to the Company or any of its subsidiaries, and any other corporation or other business entity which, by
merger, consolidation, purchase of the assets, or otherwise, acquires all or a material part of the assets of the Company.  Any
assignment by the Company of its rights and obligations hereunder to any affiliate of or successor shall not be considered a termination
of employment for purposes of this Agreement.

 

    	7

    	 

    

 

(d)           Modifications
or Amendments.  No amendment, change or modification of this document shall be valid unless in writing and signed
by each of the parties herein.

 

(e)           Waiver.  No
reliance upon or waiver of one or more provisions of this Agreement shall constitute a waiver of any other provisions hereof.

 

(f)            Severability.  If
any provision of this Agreement as applied to either party or to any circumstances shall be adjudged by a court of competent jurisdiction
to be void or unenforceable, the same shall in no way affect any other provision of this Agreement or the validity or enforceability
of this Agreement.  If any court construes any of the provisions to be unreasonable because of the duration of such provision
or the geographic or other scope thereof, such court may reduce the duration or restrict the geographic or other scope of such
provision and enforce such provision as so reduced or restricted.

 

(g)           Separate
Counterparts.  This document may be executed in one or more separate counterparts, each of which, when so executed,
shall be deemed to be an original.  Such counterparts shall, together, constitute and shall be one and the same instrument.

 

(h)           Headings.  The
captions appearing at the commencement of the sections hereof are descriptive only and are for convenience of reference.  Should
there be any conflict between any such caption and the section at the head of which it appears the substantive provisions of such
section and not such caption shall control and govern in the construction of this document.

 

(i)            Specific
Performance.  It is agreed that the rights granted to the parties hereunder are of a special and unique kind and
character and that, if there is a breach by either party of any material provision of this document, the other party would not
have any adequate remedy at law.  It is expressly agreed, therefore, that the rights of the parties may be enforced
by an action for specific performance and other equitable relief.

 

(j)            Further
Assurances.  Each of the parties shall execute and deliver any and all additional papers, documents and other assurances,
and shall do any and all acts and things reasonably necessary in connection with the performance of their obligations hereunder
and to carry out their intentions as set forth herein.

 

(k)           Entire Agreement.  This Agreement constitutes the entire understanding and agreement of the parties with respect
to the subject matter of this Agreement, and any and all prior agreements, understandings or representations are hereby terminated
and canceled in their entirety.

 

(l)            Neutral
Construction.  Neither party may rely on any drafts of this Agreement in any interpretation of the Agreement.  Each
party to this Agreement has reviewed this Agreement and has participated in its drafting and, accordingly, neither party shall
attempt to invoke the normal rule of construction to the effect that ambiguities are to be resolved against the drafting party
in any interpretation of this Agreement.

 

(m)          Attorneys’
Fees.  In the event that either party hereto commences litigation against the other to enforce such party’s
rights hereunder, the prevailing party shall be entitled to recover all costs, expenses and fees, including reasonable attorneys’
fees (including in-house counsel), paralegals’ fees, and legal assistants’ fees through all appeals.

 

	12. 	SUBMISSION TO ARBITRATION.

 

Except as hereinafter expressly provided,
every difference or dispute, of whatever nature, between the Company and the Executive involving (1) any breach of this
Agreement or (2) any other difference or dispute arising out of, related to, under or having any connection with this Agreement,
shall be settled and finally determined by arbitration in Seminole, Florida in accordance with the then current commercial arbitration
rules of the American Arbitration Association, and judgment upon any award rendered may be entered in any court having jurisdiction,
including but not limited to the courts of the State of Florida, and the determination of such arbitration proceeding shall be
binding and conclusive upon the parties.  Any claim by the Company against the Executive arising out of, under, or related
to, Section 8 of this Agreement, whether for equitable relief or monetary damages or any combination, is specifically excluded
from arbitration under this Section 12.

 

    	8

    	 

    

 

IN WITNESS WHEREOF, the parties hereto have executed this
Employment Agreement on the date first above written.

 

	 	CARNIVAL BAY HOLDINGS, INC	 
	 	 	 	 
	 	By:	/s/
Donna Dreslin	 
	 	 	Name: Donna Dreslin	 
	 	 	Title: Chief Executive Officer	 
	 	 	 	 
	 	EXECUTIVE	 
	 	 	 	 
	 	/s/
Donna Dreslin	 
	 	Donna Dreslin	 

 

 

9

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