FAVRILLE, INC. SALARY DEFERRAL PAYMENT AGREEMENT
Exhibit 10.3
FAVRILLE, INC.
SALARY DEFERRAL PAYMENT AGREEMENT
WHEREAS, at the May 28, 2008 meeting of the Special Strategic Meeting of the Board of Directors of Favrille, Inc. (the “Company”), due to the Company’s dire financial condition and in consideration of his continued employment and other benefits provided by the Company, Xxxx X. Xxxxxxxxxxx, the Company’s President and Chief Executive Officer, agreed to immediately and indefinitely forgo receiving any future salary payments until such time as the Company may resume making such salary payments to him without jeopardizing the Company’s ability to continue as a going concern.
WHEREAS, the Company and Xx. Xxxxxxxxxxx desire to formally document their agreement with respect to the terms of deferral of payment of Xx. Xxxxxxxxxxx’x salary compensation.
NOW, THEREFORE, Xx. Xxxxxxxxxxx and the Company hereby agrees as follows:
1. In consideration of Xx. Xxxxxxxxxxx’x continued employment and other benefits provided by the Company, on an ongoing basis from and after June 7, 2008, the Company will defer making payment of Xx. Xxxxxxxxxxx’x otherwise payable salary compensation.
2. Any salary payments deferred pursuant to Paragraph 1 of this Agreement will be paid to Xx. Xxxxxxxxxxx as soon as practicable after such payments may be made without jeopardizing the Company’s ability to continue as a going concern.
3. The Company will resume paying Xx. Xxxxxxxxxxx’x salary compensation on an ongoing basis as soon as practicable after such salary payments may resume without jeopardizing the Company’s ability to continue as a going concern, subject to Xx. Xxxxxxxxxxx’x continued service with the Company.
4. The Company’s obligations under this Agreement are unfunded and unsecured, and Xx. Xxxxxxxxxxx will have no rights to the deferred salary amounts other than those of the Company’s general creditors.
5. It is intended that any deferred salary payments will qualify for the exception from application of Section 409A of the Internal Revenue Code that is available under Treas. Reg. §1.409A-1(b)(4)(ii).
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date(s) set forth below.
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/s/ Xxxx X. Xxxxxxxxxxx |
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Date: |
June 27, 2008 |
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XXXX X. XXXXXXXXXXX |
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FAVRILLE, INC. |
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By: |
/s/ Xxxxxx X. Xxxxxxx |
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Date: |
June 27, 2008 |
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Xxxxxx X. Xxxxxxx, Chief Financial Officer |
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