Employment Agreement - Audible Inc. and Guy Story
[AUDIBLE INC. LETTERHEAD]
June 10, 1996
Mr. Guy Story
151 Spring Street
New York, New York 10012
Dear Guy,
You will become Vice President - Technology, of Audible Words. Attendant to
your employment -- subject to approval by the Board of Directors and the
shareholders -- The Company hereby offers you the right to purchase 200,000
shares of the Common Stock of the Company at a purchase price of $.085 per
share. Such shares shall be subject to the terms of a stock restriction
agreement in a form to be provided to you prior to the commencement of your
employment. In general, the agreement subjects the shares to a vesting schedule
such that in the event that your employment with the Company terminates, the
Company has the right to repurchase the unvested shares from you at your cost.
The shares vest 12 percent six months from the day you agree to the terms of
this offer letter, and thereafter in equal monthly installments of 2 percent
(4000 shares) per month. The agreement also provides the Company with the right
of first refusal on any shares you wish to transfer to a third party. The
purchase price of the shares is payable in cash, by promissory note, or by a
combination of both.
Provided that you remain employed with the Company until July 31, 2000, you will
receive a bonus of $22,604 at that time. The Company will not provide you with
any gross up in taxes due to such one time bonus.
Your annual salary will begin at $100,000 per year. A bonus program set at up to
25 percent of your base salary, payable quarterly, and adjusted according to
personal "objectives" we will identify together, will commence in six months or
after the company secures a round of financing in excess of $1.5 million --
whichever occurs first. You agree to resign your current employment position no
later than June 14, 1996 and commence formal employment with Audible Words no
later than June 27. If you can start sooner, all the better. If you accept this
offer and return this with signature on or before June 12th, 1996, the day this
offer expires, we will include a $5,000 signing bonus as part of the package.
<PAGE>
A health plan will also be part of the employment package. The company will
cover the premium for you and half of a family premium. A dental plan will also
be available on a self-pay basis. The company will also pay 25 percent of your
annual membership at a health club near our headquarters.
The attached non-disclosure agreement contains the same restrictions under which
I am employed and will serve as a standard part of all our subsequent hires.
Related to, but more important than all of this as far as I'm concerned, you
will help me create the culture and infrastructure of Audible Words as a trusted
partner. All of this --assuming you don't have a drug, alcohol, or criminal
predilection I should know about before this association begins -- should
provide the framework for a long and fulfilling working relationship.
Your signature below indicates acceptance of the terms.
Onward,
__________________________________
Andrew J. Huffman
President and Chief Executive Officer
Audible, Inc.
I acknowledge that this supercedes the prior letter signed on this date.
So Agreed:
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Guy Story
Date:
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WASH1 / 200723
24854-6