Employment Agreement - Burst.com Inc. and George Zraick
March 22, 2000
George Zraick
8163 Merion Drive
Newark, CA 94560
Dear George:
On behalf of Burst.com, it is my pleasure to make you an offer of employment as
the Vice President of Marketing. You will be in charge of overseeing and
managing the activities of the marketing department. The management
responsibilities of the position are: Branding, Positioning, Demand Creation,
Program development, Alliance Programs, Public relations, Market Identification,
and Sales Direction.
In this capacity you will be working with staff, other departments and directors
of the company, and directly reporting to the Chief Operating Officer.
As a Burst.com employee, your compensation and benefits are as follows:
Salary $160,000.00 per year.
Stock Options Employee shall be entitled to receive 60,000 stock
options pursuant to the 1999 stock option agreement,
at the strike price equal to the closing price on
your start date. Vesting will be as follows: (i)
10,000 options will vest on the start date; (ii)
15,000 options at the end of 12 months from the start
date; and (iii) following the 12-month anniversary
date; the remaining 35,000 options will vest monthly
for 36 months. The options will have a term of five
(5) years from the date of grant. The options will
also be subject to the terms and conditions of the
1999 Option Plan and an option agreement to be signed
at the time the option is granted.
Bonus George, you will be eligible for a performance-based
bonus of $65,000.00 annually. The payment of the
bonus will be in four quarterly installments, based
upon successful completion of mutually agreed upon
objectives to be established within your first 30
days of employment with burst.com.
Vacation 15 days of personal time.
Benefits Eligible for the standard package as offered to
employees of Burst.com.
Options Eligible for all Incentive Stock Option programs as
periodically approved by the Board.
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George Zraick March 22, 2000
Page 2
All legitimate and normal business expenses will be reimbursed by the Company
and must conform to Company policies and procedures.
You will be eligible for a performance and salary review every twelve (12)
months.
As you know, we are anxious to fill this position as soon as possible. This
offer is valid until April 1, 2000, and is contingent upon the following: (1)
your review and signature of this letter; (2) receipt of satisfactory proof of
identification; (3) work authorization as required by the Immigration Reform and
Control Act; and (4) satisfactory reference and background check. Burst.com
reserves the right to perform background verification of all information,
references, and previous employment at Company expense.
Your employment with Burst.com is "at will" and can be terminated with or
without cause, and with or without notice, at any time, at the option of either
yourself or Burst.com. In case Burst.com terminates your employment without
cause within a two years from your start date, you will be eligible for a cash
severance package equal to four months salary.
Accordingly, the terms of this offer letter do not and are not intended to
create an expressed or implied contract of employment with Burst.com. No manager
or representative of Burst.com, other than an Officer of the Company, has
authority to enter into any agreement for employment for any specified period of
time or to make any agreement or contract to the foregoing. Any promises to the
contrary may only be relied upon, by you, if they are in writing and signed by
an Officer of Burst.com.
George, let me close by reaffirming our belief that the skill and background you
bring to Burst.com will be instrumental to the future success of the Company.
The single most important factor in the success of Burst.com will be our people.
We look forward to your joining us. Please confirm your acceptance of this offer
by signing on the space provided below and returning a copy to me.
Sincerely,
Thomas Koshy
Chief Operating Officer
ACCEPTED:
Name: Date:
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Start Date:
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