Sample Business Contracts

Employment Agreement - Select Comfort Corp. and H. Robert Hawthorne

Employment Forms

  • Employment Agreement. Employers can customize an employment agreement that states the salary, benefits, working hours and other important provisions for their new or existing employee.
  • Consulting Agreement. Answer simple questions to build a contract with a consultant. Specify the services rendered, when payment is due, as well as IP rights.
  • Commission Agreement. 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.
  • Executive Employment Agreement. 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.
  • Sales Representative Contract. 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.
  • More Employment Agreements

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April 3, 1997

Mr. H. Robert Hawthorne
4607 Moorland Avenue
Edina, MN  55424

Dear Rob:

I am pleased to confirm our conversation of March 31 in which I offered you
the position of Chief Executive Officer and President of Select Comfort
Corporation, as well as membership on the Board of Directors.  This letter
lays out the specific elements of the offer and requests that you indicate
your acceptance by signing the bottom of the page.

We have agreed on a salary of $325,000 per year, and this will include
compensation for items which you may have been used to at Pillsbury, such as
a company car allowance and club memberships.  Your bonus target in 1997 will
be 50% of salary earned during the year, depending upon company performance
relative to plan.  Once you establish yourself in the Company, you should
firm up the company performance objectives and appropriate bonus percentages
with the Compensation Committee of the Board.

You will receive 400,000 stock options with an exercise price of $5.25 per
share.  100,000 of the options will be "Incentive Stock Options with a
performance option feature" which will become fully vested if and when the
stock prices exceeds $22.00 per share for 30 consecutive trading days in the
public market.  300,000 of the options will vest over three years in 36 equal
installments.  Details on the stock options will be included in the stock
option agreements.


If you are terminated within the first twelve months without cause, you will
be eligible to receive 12 months severance paid monthly.  After your first
twelve months of employment, your severance will increase to 24 months of
salary. During the severance period, if this were to occur, your stock will
not continue to vest, and you will not be eligible to receive bonuses.

You will eligible to be enrolled in Select Comfort's fringe benefit programs
for items like health insurance, etc; as soon as you begin employment. 
Please call Karen Jones, Vice President of Human Resources, for specific
information on the benefits programs.

The Board of Directors and management team is extremely enthusiastic about
your joining Select Comfort to lead it to the next century when it will be
recognized as the most successful mattress company of all time.  Under your
leadership, we are confident that Sealy and Serta may soon join Willy's and
Studebaker as forgotten brand names.  You are taking on an enormous
challenge, however, be assured that the Board and management team are
available to help you in whatever way we can.

To formally acknowledge your acceptance of this offer letter, please sign the
bottom of this page and send a copy back to me.

I am looking forward to a long and prosperous working relationship.


/s/ Patrick A. Hopf

Patrick A. Hopf
Co-Chairman of Select Comfort

I accept the offer to become the CEO and President of Select Comfort
Corporation as described above:

                    /s/ H. Robert Hawthorne