July 31, 1997
Xx. Xxxxx Xxxxxx
THINK New Ideas, Inc.
0000 Xxxxxx Xxxxxxxxx, Xxxxxxxxx Xxxx
Xxx Xxxxxxx, Xxxxxxxxxx 00000
Re: Employment
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Dear Xx. Xxxxxx:
This is to confirm the agreement reached as of May 31, 1997 between you
and THINK New Ideas, Inc. (the "Company") relating to your employment with the
Company as of such date. The material terms of your agreement with the Company,
to be embodied in a written employment agreement, to be executed no later than
August 31, 1997, and substantially in the form attached hereto, are as follows:
1. TERM: Two years
2. TITLE: Chief Creative Officer; President of The Xxxxxxx Group
3. COMPENSATION: Year 1: $300,000; Year 2: $350,000.
4. ORACLE ACCOUNT BONUS: Year 1: up to $150,000; Year 2: up to
$100,000 (based upon Oracle entering one-to-two year
advertising services agreement).
5. PROFITABILITY BONUS: Year one: Ten percent (10%) of profits on
xxxxxxxx on the Oracle Account in excess of $16 million
dollars; Year 2: Ten percent (10%) of profits on xxxxxxxx on
the Oracle Account in excess of $20 million dollars.
6. OPTIONS: 250,000 shares of common stock at an exercise price
of $3.69 per share exercisable in equal increments over four
years, subject to acceleration in year one and year two based
on the Company's gross xxxxxxxx of $20 million in year one and
$30 million in year two and a realized profit margin, before
taxes, of eight percent (8%) in year one and fifteen percent
(15%) in year two.
Xx. Xxxxx Xxxxxx
August 1, 1997
Page 2
If the foregoing reflects your understanding of the agreement we have reached,
please counter-execute below where indicated to confirm such understanding.
Very truly yours,
/s/ Xxxxx X. Xxxxxxx
---------------------------
Xxxxx X. Xxxxxxx
Chief Executive Officer
Agreed to and
Accepted this 1st day of August, 1997:
/s/ Xxxxx Xxxxxx
-------------------------
Xxxxx Xxxxxx
Enclosure
cc: Xxxxxxxx X. Xxxxxx, Esq.
