Employment of general manager. Agreement made in duplicate original on this _________ day of _________, _________[year], between _________, a corporation created and existing under the laws of the State of _________, referred to as company, and _________ of _________, referred to as manager, provides that: 1. Company employs manager as general manager of its business for a term of _________ years from and including _________[date], if not previously terminated, at a compensation of $_____ per _________ for the entire _________-year term, payable _________ly, plus an additional compensation of a sum equal to _________ percent of the net profits arising from the operation of the business in each of the _________ years as earned and collected after first deducting from any net profits ten percent on that part of the capital stock actually invested, as an initial dividend to the stockholders, which additional compensation is not to be accumulative and is to be owing only as earned in each year's business and is to be paid on or before the annual meeting of the stockholders in January following each year's business. Any increase of capital stock will not affect this contract unless actually invested. 2. Manager accepts employment as general manager upon the terms set forth above and agrees to devote all his [her] time, energy and ability to the interests of company, and to perform his [her] duties in an efficient, trustworthy and business-like manner. In addition he [she] agrees to furnish the board of directors of company each _________, and more often if requested, an itemized statement of disbursements and liabilities incurred. 3. The duties of manager, subject to supervisory approval of the board of directors of the company, shall include supervision of the construction and operation of the plant or plants of the company, purchase and installation of equipment, employment and fixing compensation and discharge of employees, selection and purchase of _________, and any and all other duties usually incident to those of a general manager of a _________, including such as the board of directors of company from time to time may suggest. No expenditures or liabilities outside of those arising from the ordinary and usual course of business shall be incurred unless the direct approval of the board of directors of company shall have been first obtained, and all purchases made by manager on behalf of the company shall be at net cost price. All contracts for salaries of superintendents, assistant managers, or heads of departments, shall be first submitted for approval to the board of directors of company. 4. In determining the amount of the net profits earned by company in any one year (so far as the construction of this contract is concerned), there shall be deducted from the gross cash income of that year all expenses of operation, the cost plus freight, if any, of all materials purchased, excluding those purchases the board of directors may consider as capital investment, and eight percent on the capital invested for annual depreciation, plus taxes. 5. Manager, for a cash consideration of $_____ to be paid by company, is to procure and transfer in writing to company a valid lease having the tenure of _________ years from and including the year _________ on the _________ plant at _________. 6. If the board of directors of company decides to purchase any machinery or other equipment now owned by manager, manager shall first furnish the board of directors with a complete itemized list, including the actual net cost price to manager, and the net cost price shall be the amount charged to company for a clear title less a reduction of ten percent to cover depreciation.
7. Inasmuch as any damages sustained by either party in case of a wrongful breach of this contract would be difficult to determine, it is mutually agreed by the two parties that in case this agreement is wrongfully breached or violated by either party the sum of $_____ shall be liquidated damages which will be due the other party from the offending party in lieu of all other damages sustained. 8. In the event of manager being called into the military service during the term of this agreement, then and in such a contingency, this contract is to have no further validity but shall be deemed rightfully terminated by mutual consent from the date of that event. 9. This agreement in all its terms is to be performed at _________, State of _________. 10. Manager is also to furnish company a bond at _________'s expense in such a sum as the board of directors of company may designate, for faithful performance of his [her] duties. In witness, etc.