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Exhibit 10.18
Employment Agreement between Steven Reed and the Company dated May 31, 2000
May 31, 2000
Mr. Steve Reed
340 Townsend, 4th Floor
San Francisco, CA 94107
Dear Steve,
I am pleased to offer you a position with Salon as Senior Vice President, Media
Sales reporting to Michael O'Donnell CEO & President in our San Francisco
office. Your start date will be effective June 10, 2000 or sooner. Here's a
summary of the compensation package:
o Guaranteed 1st Year Compensation of $320,000 (draw against salary
and bonuses). You will receive monthly salary of $26,666.66
(equivalent to salary of $170,000 plus bonus of $150,000 annualized)
which will be paid semi-monthly in accordance with Salon's normal
payroll procedures;
o Accelerators: 3% Sales over quarterly budgets plus 1% over annual
target;
o Bonus: $100,000 (payable in 4 equal installments);
o You will be granted 100,000 employee incentive options (4 year
vesting) in accordance with the company's stock option plan, subject
to approval by the company's Board of Directors. After your 1st year
anniversary, your will be granted another 25,000 new options.
In case of a Salon.com merger or sale, and your position is eliminated you would
receive one year's worth of compensation and 1 year's accelerated vesting (in
addition to the current year).
As a Salon employee you will also be eligible to receive certain employee
benefits including:
o An Insurance program consisting of medical, dental, vision, short
term and long term disability and life insurance
o 12 days paid vacation and the standard 12 Salon paid holidays
o 401K Savings Plan
o Salon Employee Stock Purchase Plan
Please contact Michele Alcantara, our Employment Manager, if you have any
additional questions. She can be reached at (415) 645-9267 or at
[email protected]. This offer expires Wednesday, May 31, 2000. The second
page of this letter contains important information about the terms of your
employment at Salon. Please read it carefully, sign the bottom and return it to
Michele. We're excited to have you join us and we look forward to a mutually
successful relationship.
Michael O'Donnell
Chief Executive Officer
Salon.com
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Terms of Employment
This offer is contingent on Salon receiving satisfactory responses from your
references. If you choose to accept this offer, your employment with Salon will
be voluntarily entered into and will be for no specified period. As a result,
you will be free to resign at any time, for any reason or for no reason, as you
deem appropriate. Salon will have a similar right and may conclude its
employment relationship with you at any time, with or without cause.
For purposes of federal immigration law, you will be required to provide Salon
with documentary evidence of your identity and eligibility for employment in the
United States. Such documentation must be provided to us within three (3)
business days of your date of hire, or our employment relationship with you may
be terminated.
Salon reserves the right to change or alter as it sees fit and at its sole
discretion the terms of your employment including but not limited to employee
benefits, your job title, rate of pay and job classification.
In the event of any dispute or claim relating to or arising out of our
employment relationship, this agreement, or the termination of our employment
relationship (including, but not limited to, any claims of wrongful termination
or age, sex, disability, race or other discrimination), you and Salon agree that
all such disputes shall be fully, finally and exclusively resolved by binding
arbitration conducted by the American Arbitration Association in San Jose,
California. However, we agree that this arbitration provision shall not apply to
any disputes or claims relating to or arising out of the misuse or
misappropriation of Salon's trade secrets or proprietary information.
To indicate your acceptance of Salon's offer, please sign and date this letter
in the space provided below and return it to me. You will also be required to
sign an Employee Inventions and Proprietary Rights Assignment Agreement as a
condition of your employment. This offer letter and the Terms of Employment,
along with any agreements relating to proprietary rights between you and Salon,
set forth the terms of your employment with Salon and supersede any prior
representations or agreements, whether written or oral. This letter may not be
modified or amended except by a written agreement, signed by Salon and by you.
Salon.com Agreed to and Accepted
/s/ Michael O'Donnell 03/31/00 /s/ Steve Reed 06/01/00
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Michael O'Donnell date Steve Reed date
Chief Executive Officer
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