Sample Business Contracts


Employment Agreement - The Knot Inc. and Richard E. Szefc

Employment Forms

  • Employers can customize an employment agreement that states the salary, benefits, working hours and other important provisions for their new or existing employee.
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  • Employers who compensate their sales employees based on commissions can prepare an agreement to reduce misunderstandings by specifying the base salary and how commissions are calculated.
  • Companies may offer their business executives a contract that is different from the one provided to their regular employees. Executive employment agreements may be more complex because the compensation structure may include a combination of salary and commissions, provide for bonuses based on sales, stock or other financial targets, and include non-compete, confidentiality and severance provisions.
  • Independent sales representatives offer companies the potential to increase the sale of products or services without the burden of increasing headcount. Both parties should understand how commissions are calculated, when commissions will be paid, as well as how the representative will treat confidential information from the company and whether the representative may also sell a competing line of products or services.
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                              [THE KNOT LETTERHEAD]


                                                              May 31, 1999

Mr. Richard E. Szefc
12 Cardinal Lane
Westport, CT 06880

Dear Richard:

         On behalf of The Knot, Inc., I am pleased to offer you an agreement of
employment for your services on the following terms:

1.       Knot agrees to employ you as Chief Financial Officer commencing on May
         31, 1999. During your employment, you shall report to the Chief
         Executive Officer of The Knot and perform the duties described, and any
         additional duties as the Chief Executive Officer shall from time to
         time assign to you. Your direct responsibilities will encompass all
         areas of acquisitions, general accounting, treasury, cash management,
         corporate budgeting, office management, publishing, and retail sales.
         You agree to perform the duties of any position you hold in an
         efficient and competent manner and to devote your skills and efforts to
         the business and affairs of The Knot.

2.       Your salary during The period of your employment under this agreement
         shall be at a rate of $135,000 per annum, or such other amount, nor
         less than that figure, as the Chief Executive Officer shall from time
         to time determine. Your salary shall be reviewed not less frequently
         than every twelve (12) months. You will be eligible to participate in
         any officer or employee bonus plan created.

3.       If during the period of your employment hereunder you shall become
         temporarily disabled, through illness or otherwise, from performing
         your duties hereunder, you shall be entitled to a leave of absence from
         The Knot for the duration of any such disability, up to, but not
         exceeding an aggregate of six months. Your employment hereunder shall
         continue during any such leave of absence. If any disability shall at
         any time appear to the Chief Executive Officer of The Knot to be
         permanent or your leave for disability shall continue for more than six
         months in the aggregate, The Knot will thereupon have the right to
         terminate you employment, hereunder, subject to your rights under The
         Knot's Long Term Disability Plan.

4.       You are eligible for participation in The Knot's employee benefit
         plans. Your eligibility for The Knot's health plan will be determined
         by the terms of that plan, which may be changed at any time. Your
         eligibility for participation in The Knot's Stock Option Plan --1997
         Long Term Incentive Plan will begin upon employment. Under such plan
         the company will grant you 250,000 options at a strike price of $1.50,
         these options will vest over a 4 year period, with 25% vesting after
         one year of employment and the remaining on a monthly basis over the
         remaining period. If at any time 50% of the voting stocking of the
         Company is sold or obtained by one or a related group of persons, your
         vesting will accelerate so that not less than 50% of your options are
         vested upon the transaction. You
<PAGE>   2
         will be eligible to participate in any other plans which The Knot may
         from time to time make available to it's officers and employees.

5.       The Knot reserves the right to terminate Your employment at any time.
         However if your employment hereunder is terminated for other than
         cause, you shall be entitled to continue on the Knot's payroll for
         twelve months, at the rate of pay then in effect, and receive all
         benefits associated with your employment.

6.       During your employment by The Knot, you will not serve any interests or
         do any act or thing that might conflict with the interests of The Knot,
         the determination by The Knot of its interests are final and
         conclusive. You will regard as confidential all information developed
         by you or communicated to you concerning the business of The Knot in
         the course of or in connection with your employment, and you will not,
         without The Knot's written approval, make any oral or written
         disclosure thereof during the term of your employment.

7.       This letter sets forth the entire agreement between us. The terms of
         this letter may not be changed except in writing signed by both
         parties.

         If the foregoing is acceptable, please sign the extra copy of this
         letter and return it to me.


                                                  Sincerely yours,

                                                  /s/ David Liu
                                                  David Liu
                                                  Chief Executive Officer
Agreed:  /s/ Richard E. Szefc
By:  Richard E. Szefc
Dated:  5/31/99

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