Exhibit 10.1
EMPLOYMENT AGREEMENT
THE PRINCETON REVIEW, INC.
This employment Agreement is between Xxxx Xxxxxxx ("Xxxxxxx") 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: Xxxxxxx shall serve as the Chief Executive Officer of TPR.
2. Compensation: TPR shall pay Xxxxxxx $400,000 per year, increasing annually
by 3%. He shall also receive a performance bonus of up to 100% of base
salary, based on performance metrics further described in Schedule A.
3. Right to a vehicle: Company will continue to cover the expenses for a
leased vehicle and parking. Vehicle lease cost shall not exceed $600 per
month.
4. Right to be connected: Xxxxxxx will be provided with a cell phone and
personal computer, as well as high-speed (DSL or Cable) connections at both
of his homes.
5. Term: This Agreement has an initial expiration of February 14th, 2004 but
will automatically be extended for additional two-year periods upon the
completion of the initial term and any two-year extension period thereafter
until (i) Xxxxxxx voluntarily terminates employment or (ii) TPR gives
contrary written notice to Xxxxxxx at least 6 months prior to the
completion of the initial term or any two-year extension period thereafter.
6. Severance Payments and Benefits: If TPR terminates Xxxxxxx'x employment
without Cause under Section 4.1 of the Policy Statement or does not renew
this 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 his annual base salary for an additional eighteen months
following termination or failure to renew. In addition, Xxxxxxx will be
entitled to reimbursement of COBRA payments to maintain medical insurance
for 18 months.
Agreed to this April 11th, 2002.
/s/ Xxxx Xxxxxxx /s/ Xxxx Xxxxxxx
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Xxxx Xxxxxxx Xxxx Xxxxxxx
President, TPR
APPENDIX A
Bonus Calculation for 2002
75% TPR hits financial goals as outlined by TPR Corporate Financial Matrix.
25% REVU price (the percentage earned will be equal to twice the stock rise
in 2002. e.g. Xxxxxxx shall earn 100% of this part of the bonus if REVU
rises 50% in 2002).
