Exhibit 10.4
Artwork and Beyond
000-X Xxxxxx Xxx
Xxxxxxxx, XX 00000
December 17, 1999
Xx. Xxxxx X. Xxxxxxxx
0 Xxx Xxxxxx Xxxxx
Xxxxxxxxxx, XX 00000
Dear Xxxxx,
This employment agreement ("agreement") dated December 13, 1999 is between
Artwork and Beyond, Inc. ("Company") and Xxxxx X. Xxxxxxx. This agreement is for
a period of one year with an option for an additional year. Outlined below are
the conditions of employment:
o Title will be Chief Operating Officer
o Base salary for year one is $75,000 which shall be paid beginning on January
3, 2000. The Company shall be responsible for the base salary in the year
2000 and if employment continued 2001, unless employment is terminated for
reasonable cause or unable to fulfill the services contemplated in this
agreement. There is an option for the second year at $100,000.
o Upon full time employment, you will be entitled to receive a $600 per month
car expense.
o You will receive stock options equal to 2% of the outstanding shares of the
Company after the first round. The exercise price will be equal to the first
round price ($3.50 per share). These options will vest over a period of
eighteen months. One-half the options will vest after one year (starting on
November 15, 1999) with the balance vested after eighteen months of
employment. The holder of the options will have five years to exercise from
the time of issuance. All unvested options will vest immediately upon change
of control, sale of the Company or Initial Public Offering.
o A bonus will be paid based on increasing value of the Company. If at any time
the Company's value increases by 50% (based on a round of funding), then you
are entitled to receive a $25,000 cash bonus to be paid immediately. In
addition, if at any time the value of the Company is greater than or equal to
100% of the first round value (based on a round of funding), you are entitled
to be paid a bonus of $25,000, to be paid in options with an exercise per
price share valued at the immediate preceding financing round. This bonus is
based on employment with the Company. The bonus options will not be subject
to a vesting schedule and will be for a period of five year from date of
issuance.
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o Until you are employed full time, Artwork will compensate you at a $30 per
hour rate. You will be responsible for logging in the hours worked and a
weekly update on how those hours were spent.
o You will be entitled to a two-week vacation after six months, not more than
one week at a time and all vacation periods to be pre-approved by the
Company, which consent shall not be unreasonably withheld.
o You will be entitled to participate in an option pool, which will be set up
by the Board of Directors.
o You are responsible for your own health insurance. If you decide that you
need health insurance, then you can be covered under the Company's plan, in
which case the car expense may be reduced by the net cost of the health
insurance.
o Your responsibilities will include but not limited to managing the process of
the site build out as well as the ongoing updating of the working site,
shipping and fulfillment and working with Xxx Xxxxxx in areas that he
believes are critical to the day to day operations of Artwork. You will be
working out of Xxxx Galleries (an office will be made available for you)
starting on January 1, 2000. This office will be available at the time of
signing this agreement and can be used prior to the January 1, 2000 (if
desired). You will be available to meet with Xxx at his facility for regular
meetings. The times and days will be as often as necessary and may be at a
moment's notice. It is very important to Xxx that you are available at each
and every crossroad and no decision is held up because you are not situated
at the main office, and it is preferred that you work out of Xxxx Galleries'
until full time employment (Jan 1, 2000). Until full time employment you can
conduct your other business out of this facility. It is understood and agreed
that when you are employed full time at Artwork and Beyond, other business
that you conduct will be on your own time and not at the expense (time and/or
money) of Artwork and Beyond.
If you agree to the above terms of employment, please sign.
Received: /s/ Xxxxx Xxxxxxxx
--------------------
Xx. Xxxxx Xxxxxxxx
ARTWORK AND BEYOND, INC.
By: /s/ Xxxxxx Xxxx
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Name: Xxxxxx Xxxx
Title: Chief Executive Officer
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