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Exhibit 10.3
[THE KNOT LETTERHEAD]
May 31, 1999
Xx. Xxxxxxx X. Xxxxx
00 Xxxxxxxx Xxxx
Xxxxxxxx, XX 00000
Dear Xxxxxxx:
On behalf of The Knot, Inc., I am pleased to offer you an agreement of
employment for your services on the following terms:
1. Xxxx agrees to employ you as Chief Financial Officer commencing on May
31, 1999. During your employment, you shall report to the Chief
Executive Officer of The Knot and perform the duties described, and any
additional duties as the Chief Executive Officer shall from time to
time assign to you. Your direct responsibilities will encompass all
areas of acquisitions, general accounting, treasury, cash management,
corporate budgeting, office management, publishing, and retail sales.
You agree to perform the duties of any position you hold in an
efficient and competent manner and to devote your skills and efforts to
the business and affairs of The Knot.
2. Your salary during The period of your employment under this agreement
shall be at a rate of $135,000 per annum, or such other amount, nor
less than that figure, as the Chief Executive Officer shall from time
to time determine. Your salary shall be reviewed not less frequently
than every twelve (12) months. You will be eligible to participate in
any officer or employee bonus plan created.
3. If during the period of your employment hereunder you shall become
temporarily disabled, through illness or otherwise, from performing
your duties hereunder, you shall be entitled to a leave of absence from
The Knot for the duration of any such disability, up to, but not
exceeding an aggregate of six months. Your employment hereunder shall
continue during any such leave of absence. If any disability shall at
any time appear to the Chief Executive Officer of The Knot to be
permanent or your leave for disability shall continue for more than six
months in the aggregate, The Knot will thereupon have the right to
terminate you employment, hereunder, subject to your rights under The
Knot's Long Term Disability Plan.
4. You are eligible for participation in The Knot's employee benefit
plans. Your eligibility for The Knot's health plan will be determined
by the terms of that plan, which may be changed at any time. Your
eligibility for participation in The Knot's Stock Option Plan --1997
Long Term Incentive Plan will begin upon employment. Under such plan
the company will grant you 250,000 options at a strike price of $1.50,
these options will vest over a 4 year period, with 25% vesting after
one year of employment and the remaining on a monthly basis over the
remaining period. If at any time 50% of the voting stocking of the
Company is sold or obtained by one or a related group of persons, your
vesting will accelerate so that not less than 50% of your options are
vested upon the transaction. You
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will be eligible to participate in any other plans which The Knot may
from time to time make available to it's officers and employees.
5. The Knot reserves the right to terminate Your employment at any time.
However if your employment hereunder is terminated for other than
cause, you shall be entitled to continue on the Knot's payroll for
twelve months, at the rate of pay then in effect, and receive all
benefits associated with your employment.
6. During your employment by The Knot, you will not serve any interests or
do any act or thing that might conflict with the interests of The Knot,
the determination by The Knot of its interests are final and
conclusive. You will regard as confidential all information developed
by you or communicated to you concerning the business of The Knot in
the course of or in connection with your employment, and you will not,
without The Knot's written approval, make any oral or written
disclosure thereof during the term of your employment.
7. This letter sets forth the entire agreement between us. The terms of
this letter may not be changed except in writing signed by both
parties.
If the foregoing is acceptable, please sign the extra copy of this
letter and return it to me.
Sincerely yours,
/s/ Xxxxx Xxx
Xxxxx Xxx
Chief Executive Officer
Agreed: /s/ Xxxxxxx X. Xxxxx
By: Xxxxxxx X. Xxxxx
Dated: 5/31/99
