Sample Business Contracts

Employment Agreement - Select Comfort Corp. and Gregory T. Kliner

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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                                 SELECT COMFORT

July 11, 1995

Mr. Gregory T. Kliner
5733 Royal Hill Drive
Riverside, CA 92506

Dear Greg:

It is with great pleasure that I extend a revised offer for you to join our
team! I believe that you can have a significant and immediate impact on our
business and I look forward to working with you.

The specifics of the terms of employment are:

-   The position is Senior Vice President Operations reporting directly to me.
    You will also be a member of our Management Team and participate on our
    various senior operating committees.
-   The compensation is as follows:

      -   Base salary of $125,000 per year subject to performance based
          adjustment at least once per year;

      -   Participation in the Senior Management Incentive Plan which in 1995
          provides a payout of up to 80% of base salary if certain performance
          criteria is met. The primary performance criteria is business
          profitability with a Plan performance earning a 50% payout level; of
          course, if a minimum profitability level is not reached, no incentive
          would be earned;

      -   Incentive Stock Options in the amount of 65,000 common shares priced
          at an exercise price of $4.80 per share. The options will vest monthly
          over a 36-month period of employment and have a 10-year exercise term
          (the stock has a potential of being valued at $1.3 million within
          twenty-four months); Additional options could be granted basis

      -   Three weeks paid vacation plus medical, dental, short-term and
          long-term disability insurance options;

                             Select Comfort Corporation
                  ____ Trenton Lane North, Minneapolis, MN  55442
                         Tel. 612-551-7000  Fax 612 551-7826


      -   Participation in Select Comfort's 401(k) Plan which provides for
          Company matching of up to $.25 on every dollar you contribute up to 6%
          of your base salary. The amount of matching is based upon Company
          profitability relative to fiscal plan.

      -   A "signing bonus" of $10,000;

-   Relocation expenses will be covered as follows:
      -   Moving/relocation expenses will be covered by the Company up to a
          maximum of $35,000. Any personal tax consequences resulting from
          expense reimbursement will be your responsibility and are intended to
          be covered under the above maximum figure;

      -   A temporary housing allowance of up to $1,700 per month is available
          for up to 12 months from the date of employment; If your current house
          sells and closes sooner, the allowance will terminate;

      -   A $20,000 non-interest bearing loan will be available to you to
          complete the purchase of a Twin Cities residence; The loan will be
          payable from the first available performance incentive due you and
          will be secured by the net value of vested stock options; in other
          words, if the net value between exercise price ($4.80/share) and
          "market" value is $5.00/share ($9.80/share total value), the Company
          would place in reserve the first 4,000 options vested (4,000 shares X
          $5/share = $20,000) until the loan is repaid in full;

      -   Reasonable travel to your California home will be at Company expense
          as needed to complete the sale;

-   You will be entitled to a severance payment equal to six month's base
    salary should your employment be involuntarily terminated without cause
    during your first twelve months of employment.

I believe the above covers all essential points of the terms of employment.

As we discussed, I am expecting you to resign your current employment on August
2nd and to commence employment at Select Comfort as soon as possible after
August 21,1995 but no later than August 28,1995.

I am very excited about you joining our Management Team and everyone looks
forward to your contributions. I believe your vision, technical skills and
leadership abilities are the right combination to help Select Comfort become a
world-wide innovative leader.


Please give me a call with any questions. We will keep in touch over the next
several weeks to help you in any way possible during the transition.


Mark de Naray
President and CEO


c:   Mr. Pat Hopf - Chairman
     Ms. Karen Jones - Director, Human Resources
     Mr. David Nosal - Heidrick & Struggles