[Logo] xxx.xxxxxx.xxx
10/22/98
Xx. Xxxx Xxxx
00 Xxxx 00xx Xxxxxx
Xxx Xxxx, XX 00000
Dear Xxxx:
This letter will confirm our agreement to hire you as Chief Technology Officer
of iParty Corp., effective October 26, 1998. The basic terms of our agreement
are as follows:
1. Base compensation: $90,000 per year minimum; to be reviewed in January, 1999.
Initial term is 10/26/98 through 12/31/99.
2. Signing bonus: $10,000 cash, payable 10/26/98.
3. Options: 90,000 options to purchase iParty common stock granted as of
10/26/98, at a strike price of then market (approx. $1.25), and vesting six
months from date of grant. Company policy is to issue additional options
annually in an amount equal to the employee's base salary (at a minimum). Our
counsel will prepare an option agreement for your approval.
4. Vacation: Four weeks per year; no more than two weeks at a time.
5. Benefits: Medical, dental, and disability insurance coverage; and
participation in company 401(k) plan, all as defined in the company handbook.
6. Severance: In the event that your employment is terminated by iParty for
reasons other than cause or violation of the company confidentiality
agreement (attached hereto), and provided you have been employed by iParty
for at least three months, you will continue to be paid at your full base
salary rate for a period of three months from date of termination, and at
half your base salary rate for an additional three months. Such severance
payment will cease at such time as you obtain other employment. iParty will
pay to continue your health insurance coverage under COBRA for six months
from the date of termination (or, if lesser, until such time as you obtain
other employment).
7. Other: Such matters as paternity leave, optional benefits, travel and
entertainment policies, etc., are fully described in the company handbook.
If the above terms are agreeable to you, please sign a copy of this letter and
return it to me with a signed copy of the enclosed confidentiality agreement.
Xxxxxxx, Xxxxx and I, as well as the members of the Board of Directors, are
delighted that you are joining the iParty team and we look forward to working
with you.
Sincerely,
/s/ B.A. Xxxx, Xx.
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B.A. Xxxx, Xx.
Agreed:
Xxxx Xxxx
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Xxxx Xxxx
