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EXHIBIT 10.58
EMPLOYMENT AGREEMENT
THE PRINCETON REVIEW, INC.
This employment Agreement is between Xxxxxx Xxxxx ("Exec") and The
Princeton Review, Inc. ("TPR"), and is subject to the terms of the Executive
Compensation Policy Statement, the current form of which is attached as Exhibit
A (the "Policy Statement"). Terms may be defined in The Princeton Review
Glossary. This Agreement supersedes any previous employment agreement.
1. Job Description: Exec shall serve as the EVP/General Manager of the
Homeroom Division. Exec will work part-time starting March 5, 2001 and
fulltime starting May 7, 2001.
2. Compensation: TPR shall pay Exec $200,000 per year, increasing annually
by 3%. Exec shall receive a signing bonus in an amount equal to his
salary at this rate from the period from January 1, 2001 to the first
day of his full-time employment. He shall also receive a bonus of 20%
to 50% of base salary.
3. Moving Allowance: Should Exec move closer to the Homeroom Division
office, TPR shall reimburse Exec for the actual amount of moving
expenses and brokers fees paid in obtaining a new residence, but not
more than $16,000
4. Term of Service and Waiting Period: For all purposes where length of
employment is computed or considered by TPR, Exec shall be credited for
his prior employment with The Princeton Review New Jersey as though he
worked for TPR. TPR also waives any waiting periods for benefits that
are generally waived for former employees of The Princeton Review of
New Jersey that were hired as part of the Asset Purchase Agreement
dated January 18, 2001. TPR will pay the cost of Cobra until they can
provide health insurance.
5. Full Business Time: Exec agrees to devote full business time and
energies to his job as specified in Section 2.1 of the Policy
Statement. TPR agrees that service to outside boards and other
activities, totaling less than an average of 5 hours per week, in
connection with personal investments that are not competitive with the
business of TPR as well as work performed for The Princeton Review of
New Jersey or The Princeton Review of Boston, or these companies as
renamed, shall not violate Section 2.1. or any other agreement to which
Exec and TPR are parties.
6. Executive Education: TPR agrees that at Exec's request, Exec may attend
up to one week of educational programs generally intended to help him
perform his job better with no charge to his vacation days. In addition
to the Educational Reimbursement generally provided to employees, TPR
shall pay up to $10,000 for educational programs at accredited
educational institutions
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7. Term: This Agreement has an 18 month term, which will automatically be
extended for additional two-year periods on each anniversary of the
effective date until (i) Exec voluntarily terminates employment or (ii)
TPR gives contrary written notice to Exec at least 6 months prior to
the anniversary date.
8. Severance Payments and Benefits: If TPR terminates Exec's employment
without cause under Section 4.1 of the Policy Statement or if TPR does
not renew the Agreement under Section 3.1 of the Policy Statement, then
in addition to the payments provided under Section 5.1 of the Policy
Statement, but in lieu of the payments provided under Section 5.3 of
the Policy Statement, TPR will pay Exec an amount equal to his annual
base salary.
Agreed to this March 2, 2001
/s/ March Xxxxxxx /s/ Xxxxxx Xxxxx
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Xxxx Xxxxxxx Xxxxxx Xxxxx
President, TPR
