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EXHIBIT 10.24
EMPLOYMENT AGREEMENT
THE PRINCETON REVIEW, INC.
This Employment Agreement is between Xxxxxx Xxxxx ("Xxxxx") and The
Princeton Review, Inc. ("TPR"), and is subject to the current terms of the
Executive Compensation Policy Statement, 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: Xxxxx shall serve as the EVP of Strategic Development.
He shall be responsible for evaluating new business opportunities, and
working with division heads on issues surrounding online strategies.
2. Compensation: TPR shall pay Xxxxx $155,000 per year increasing by
$10,000 each February 15th. In addition, Xxxxx shall be eligible for an
annual performance-based bonus of between 16% and 75% of his base
salary. This bonus shall be capped at $25,000 for 2000.
3. Stock Option Grant: In addition to Stock previously issued, TPR hereby
grants Xxxxx an option to purchase 37,186 shares of Series B Common
Stock at a $6.25 strike price, vesting evenly each quarter over the
next two years.
4. Loan: At Xxxxx' request, TPR will lend to Xxxxx on a fully non-recourse
basis up to an aggregate principal amount of $250,000 for a real estate
purchase. This loan shall accrue interest at the best-available
mortgage rate, have a term of three years, and require no payment of
principal or interest for the term, Thereafter, the loan shall be paid
back in full. TPR may hold as collateral Xxxxx' TPR Stock valued (based
upon TPR's Agreed Value) at up to 250% of the outstanding loan
principal.
5. Term: This Agreement will expire on February 15, 2001, and will
automatically be extended for additional one-year periods on each
anniversary thereof until (i) Xxxxx voluntarily terminates employment
or (ii) TPR gives contrary written notice to Xxxxx at least 120 days
prior to the anniversary date.
6. Severance Payments and Benefits: If TPR terminates Xxxxx'x employment
without cause under Section 4.1 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, TPR
will pay his annual base salary for an additional 12 months following
termination. In addition, Xxxxx will be entitled to reimbursement of
COBRA payments to maintain medical and dental insurance for 12 months.
7. Disability: In Paragraph 4.2 of Exhibit A, the aggregating period shall
be 120 days.
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Agreed to this April 10, 2000.
/s/ Xxxx Xxxxxxx /s/ Xxxxxx Xxxxx
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Xxxx Xxxxxxx Xxxxxx Xxxxx
Chief Operating Officer
