EXHIBIT 10.18
[BLOCKBUSTER LOGO APPEARS HERE]
MEMORANDUM
CONFIDENTIAL
TO: Xxx Xxxxxxxx
FROM: Xxxxx Xxxxxx
DATE: June 22, 1998
SUBJECT: Retention Agreement
-------------------------------------------------------------------------------
Xxx,
Per your discussions with Xxxx Xxxxxx and Xxxx Xxxxxxx, the following items
represented the full agreement regarding your employment with Blockbuster.
Salary (see new contract)
-------------------------
. Move your base salary from $318,000 to $365,000 retro to January 1, 1998.
. STIP remains at 50% of base salary.
. Guarantee of no less than $20,000 salary increase annually for term of
contract.
Contract (see new contract)
---------------------------
. New 3-1/2 year employment contract starting on January 1, 1998 and ending on
June 30, 2001.
Retention
---------
. A three-year retention plan (1999, 2000, 2001) as noted below
---------------------------------------------------------
| YEAR |
|--------------------|-------------------------------------------------------|
| Incentive Amount | 6 / 1999 | 6 / 2000 | 6 / 2001 |
|--------------------|------------------|------------------|-----------------|
| $ 50,000 | $ 50,000* | | |
|--------------------|------------------|------------------|-----------------|
| $ 50,000 | | $ 50,000 | |
|--------------------|------------------|------------------|-----------------|
| $ 50,000 | | | $ 50,000 |
|--------------------|------------------|------------------|-----------------|
| $150,000 | $ 50,000 | $ 50,000 | $ 50,000 |
|--------------------|------------------|------------------|-----------------|
Approach:
--------
Award payout determined as follows:
. 60% retention - payout if person is in "good standing"
. 40% accomplishment of key objectives (year 2K, IS strategic plan, etc.)
Note:
----
. *Company agrees to make June, 1999 payment of $30,000 early (June, 1998)
resulting in $20,000 payments in 1999.
Xxx, please let me know if you have any questions.
