EXHIBIT 10.4
LETTER OF AGREEMENT
10-20-96
Auto-By-Tel Corp. has verbally entered into an agreement for the employment of
Xxxx Xxxxxx as COO of Auto-By-Tel Marketing Corp. The scope of responsibilities
cover the entire management of the operations of the ABT Marketing Company. The
COO will report directly to the President and CEO of the parent company, Auto-
By-Tel Corp. The duties include the overall management of the dealer sales
organization, information and technology development, legal and financial.
The starting agreed upon salary will be $120,000 per year. Bonus plan for 1996
is not currently considered. Bonus plan for 1997 will be acted upon by Board of
Directors and its compensation committee and no promises or guarantees are made
as of this agreement. Additionally 100,000 shares of Auto-By-Tel Corp. common
shall be made available under the employee stock option plan under the following
terms.
25,000 shares vested 6 months after start date of employment
25,000 shares one year after vested in first option
25,000 shares second year after vested in first option
25,000 shares third year after vested in first option
The vesting price will be determined by legal consul and is to be the lowest
possible responsible option price at time of this agreement. In consideration
is undervalued stock options and the affect on earnings. The amount is
anticipated to be a maximum of 80% of [the price was determined to be $5 per
share on 10/27/96] the lower range of the initial listing price of the
anticipated IPO of ABT Corp. The option dollar amount should be known to
employee prior to actual start date.
Xxxx Xxxxxx will receive, in the event of a termination without cause, a six
month continuation of salary if terminated within one (1) year from start date.
The continuation of salary stops if he accepts employment with another company
during the six month period.
/s/ XXXX XXXXX
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Xxxx Xxxxx
President
Auto-By-Tel
