Sample Business Contracts


Employment Agreement - THQ Inc. and Fred A. Gysi

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.
  • Answer simple questions to build a contract with a consultant. Specify the services rendered, when payment is due, as well as IP rights.
  • 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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[THQ LOGO]
5016 North Parkway Calabasas, Suite 100
Calabasas, California 91302
Telephone: 818-591-1310
Fax: 818-591-1615

November 13, 1997                                        Via: Hand Delivered



Fred A. Gysi
1981 Westridge Road
Los Angeles, CA 90049


Dear Fred:

     As you know, when you joined THQ, a portion of your offer included options
on 40,000 shares of THQ, subject to the grant of the board of directors of THQ.
Since the stock has risen in value between the time of acceptance of your offer
and the board of directors' grant to you of the options, the board of directors
has authorized me to offer to you a bonus equal to the difference between the
exercise price of your options ($14.50) and the price at the date of your
acceptance ($12.375). The bonus will be payable on the first, second and third
anniversaries of your continued employment based upon the following formula: if
THQ stock is above $14.50 on your anniversary dates, 13,333 (which is the
quotient of 40,000 shares divided by the normal 3 year option vesting) times the
difference between $14.50 and $12.375. By way of example, if the stock price on
October 2, 1998 is $16.00 per share, you will be entitled to the following
bonus: 13,333 x (14.50-12.375)=$28,332.63.

     If THQ stock is trading between $12.375 and $14.50, the bonus will be
computed by multiplying 13,333 times the difference between the closing price of
the stock on the anniversary date less $12.375. By way of example, if the
closing stock price is $13.50 on October 2, 1998, the bonus would be calculated
as follows: 13,333 x (13.50 - 12.375) = $14,999.63. No bonus will be payable if
the price of the stock on the relevant anniversary date is less than $12.375.
This bonus is contingent upon your continued employment with THQ, and is in no
way connected to the existing share option plan or annual performance bonus.


Yours very truly,


/s/ BRIAN J. FARRELL

Brian J. Farrell
President and
Chief Executive Officer

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