Employment Agreement - Playboy Enterprises Inc. and Bob Perkins
PLAYBOY ENTERPRISES, INC.
CHRISTIE HEFNER
CHAIRMAN AND
CHIEF EXECUTIVE OFFICER
September 6, 1996
Bob Perkins
61 Jane Street, Penthouse E
New York, NY 10014
Dear Bob:
It is with great pleasure that I offer you the position of Executive Vice
President, Chief Marketing Officer of Playboy Enterprises, Inc. You will begin
full-time employment on October 1st, 1996.
You will be reporting to me. You will office at the Playboy offices in Chicago,
although you will be expected to do such traveling as may be necessary and
appropriate for the performance of your duties. We will also provide you with an
office at the Playboy offices in New York.
You will be paid a base salary of $400,000 per year, to be paid on a biweekly
basis on our normal payroll dates. In addition, you are entitled to participate,
pro rata (based on your start date), in a Board approved incentive plan with a
Fiscal 1997 maximum potential of 50% of your base salary based upon the
Company's performance; $50,000 of which will be guaranteed and payable to you
upon commencement of your employment.
You will be entitled to participate in all fringe benefits made available to
Playboy executives. You will also be a member of the Executive Committee of the
Company.
You will be entitled to participate in the "parachute plan" that is described on
page 13 of Playboy's 1995 proxy statement, copy enclosed.
I will recommend to the Company's Compensation Committee that you be granted an
option to purchase 100,000 shares of Playboy's
680 NORTH LAKE SHORE DRIVE/CHICAGO, ILLINOIS 60611/312-751-8000
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September 6, 1996
To: Bob Perkins
Page Two
Class B stock and the right to receive up to 15,000 shares of Class B stock
under the Company's restricted stock plan, which is triggered by the Company's
achieving operating income of $15 million and $20 million according to the terms
and conditions of the 1995 Playboy Enterprises, Inc. Stock Incentive Plan.
To assist in the disposition of your New York condominium sublease, the Company
will reimburse you for brokerage commissions and up to three months rent. If you
choose to purchase a new residence in Chicago, you will be reimbursed for
customary and reasonable closing costs, to include title costs and attorney or
escrow office fees. You will also be reimbursed for the relocation of your
household goods.
To assist in your transition, the Company will also provide you with temporary
furnished housing for up to three months. The Company will also reimburse you
for airline travel back/forth from Chicago/New York for you and/or your spouse.
If you are terminated at any time not for cause (as defined below), you will be
entitled to receive 12 months severance pay based on your salary at that time.
"For cause" is defined as conviction of a crime involving dishonesty, fraud or
breach of trust, or engaging in conduct materially injurious to Playboy.
In the event of such termination you will have no duty to mitigate damages, and
you will be free to accept other employment at your discretion.
If the above is acceptable, please sign, date and return the enclosed copy of
this letter.
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September 6, 1996
To: Bob Perkins
Page Three
Once again, welcome to the Playboy family. I look forward to working with you.
Sincerely,
/s/ Christie Hefner
Christie Hefner
ACCEPTED:
/s/ Bob Perkins
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Bob Perkins
Date 11 Sept 1996
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