{"id":39382,"date":"2015-09-17T11:25:58","date_gmt":"2015-09-17T16:25:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/contracts\/uncategorized\/employment-agreement-natural-wonders-inc-and-michael-sontag.html"},"modified":"2015-09-17T11:25:58","modified_gmt":"2015-09-17T16:25:58","slug":"employment-agreement-natural-wonders-inc-and-michael-sontag","status":"publish","type":"corporate_contracts","link":"https:\/\/corporate.findlaw.com\/contracts\/compensation\/employment-agreement-natural-wonders-inc-and-michael-sontag.html","title":{"rendered":"Employment Agreement &#8211; Natural Wonders Inc. and Michael Sontag"},"content":{"rendered":"<pre>                             NATURAL WONDERS, INC.\n                             EMPLOYMENT AGREEMENT\nThis Employment Agreement is made and entered into by and between Natural\nWonders, Inc. (the \"Company\") and Michael Sontag as of September 23, 1996.\n1.  POSITION AND DUTIES: Michael Sontag shall be employed by the Company as its\nSr. VP, GMM reporting to Kathie Chatfield, President, CEO , effective on October\n14, 1996 (the \"Commencement Date\").\nAs Sr. VP, GMM, Michael Sontag agrees to devote his full business time, energy\nand skill to his duties at the Company.  These duties shall include, but not be\nlimited to, any duties consistent with his position which may be assigned to\nMichael Sontag from time to time by the President, CEO.\n2.  TERM OF EMPLOYMENT: Michael Sontag's employment with the Company pursuant to\nthis Agreement is for no specified term, and may be terminated by Michael\nSontag, or the Company at any time with or without cause, upon the termination\nof Mr. Michael Sontag employment, neither he nor the Company shall have any\nfurther obligation or liability to the other, except as set forth in paragraphs\n4, 5, 6 and 7 below.\n3.  COMPENSATION: Michael Sontag shall be compensated by the company for his\nservices as follows:\n     (a)  SALARY: Michael Sontag shall be paid a monthly salary of $20,833.33\n($250,000 on an annualized basis), subject to applicable withholding, in\naccordance with the Company's normal payroll procedures.  Such salary shall be\nreviewed annually and may be increased as determined appropriate by the\nPresident, CEO and Board of Directors.  The first annual review shall occur on\nFebruary 2, 1997, and Michael Sontag will then be paid a monthly salary of\n$22,916.67 ($275,000. on an annnualized basis).  \n     (b)  BENEFITS: Michael Sontag shall have the right, on the same basis as\nother members of management of the Company, to participate in and to receive\nbenefits under any of the Company's employee benefits plans as offered from time\nto time, including the medical, dental, and disability group insurance plans.\nMichael Sontag shall also be entitled to participate in the 401(k) Plan\nmaintained by the Company in accordance with its terms.  In addition, Michael\nSontag shall be entitled to the benefits afforded to other members of management\nunder the Company's vacation, holiday and business expense reimbursement\npolicies.\n     (c)  CAR ALLOWANCE: Michael Sontag will receive a monthly car allowance of \n$600.00, payable the first paycheck of every fiscal month, in accordance with\ncurrent company practice.\n     (d)  STOCK OPTIONS: Subject to the Board of Directors' approval, Michael\nSontag will be granted 75,000 shares of restricted stock options subject to the\nterms and conditions of the Employee Stock Option Program and agreement,\nincluding a 5 year vesting period.  75,000 shares of options have been reserved\nby the Board in anticipation of Mr. Sontag's hire and will be approved at the\nnext Board meeting scheduled October 30, 1996. Price will be the average of high\nand low market transactions on the date he commences employment.\n     (e)  PERFORMANCE BONUS: Michael Sontag will be able to participate in the\nNatural Wonders 1996 Executive Bonus Program (the \"Program\"), payment timing in\naccordance with the terms and conditions of the Program for a PRO RATA\nGUARANTEED (1996 only) Performance Bonus of $30,000 (thirty thousand dollars).\nTarget award for the VP, GMM for Fiscal 1996 was 50% of base.  Target award for\nthe VP, GMM for Fiscal 1997 will be between 55-60% of base.  In the event that\nother executive bonus plans are\n\nadopted in the future, if management is eligible for bonus, Michael Sontag \nshall be eligible to participate in such programs. The creation of any \nsubsequent Executive Bonus Programs are entirely within the discretion of the \nCompany, and, as such, participation in the 1996 Executive Bonus Program \nshall not be interpreted or construed to imply a commitment or obligation on \nthe part of the Company to continue such programs in the future.\n4.  RELOCATION EXPENSES:  Relocation expenses will be paid according to\nattachment A.\n5.  BENEFITS UPON VOLUNTARY TERMINATION:  In the event that Michael Sontag\nvoluntarily resigns from his employment with the Company, or in the event that\nMichael Sontag 's employment terminates as a result of his death or disability,\nMichael Sontag shall be entitled to no compensation or benefits from the Company\nother than those earned under paragraph 3 above through the date of his\ntermination.\n6.  BENEFITS UPON OTHER TERMINATION: Michael Sontag agrees that his employment\nmay be terminated by the Company at any time, with or without cause.  In the\nevent of the termination of Michael Sontag's employment by the Company for the\nreasons set forth below, he shall be entitled to the following:\n     (a)  TERMINATION FOR CAUSE:  If Michael Sontag's employment is terminated\nby the Company for cause as defined below, Michael Sontag shall be entitled to\nno compensation or benefits from the Company other than those earned under\nparagraph 3 through the date of his termination.\n     For purpose of this Agreement, a termination \"for cause\" occurs if Michael\nSontag is terminated for any of the following reasons involving willful and\nintentional conduct:\n     (i)  theft, dishonesty, or falsification of any employment or Company\nrecord;\n     (ii)  improper disclosure of the Company's confidential or proprietary\ninformation;\n     (iii)  any intentional act by Michael Sontag which has a material\ndetrimental effect on the Company's reputation or business; or\n     (iv)  any material breach of this Agreement, which breach is not cured\nwithin thirty (30) days following written notice of such breach from theCompany.\n     (b)  TERMINATION FOR OTHER THAN CAUSE:  If Michael Sontag's employment is\nterminated by the Company for any other than cause, Michael Sontag shall be\nentitled to the following separation benefits:\n     (i)  In the event that Michael Sontag is terminated, continuation of\nMichael Sontag's salary for one (1) year.\n     (ii)  pro rata payment of any Performance Bonus that may become earned and\npayable to Michael Sontag, if and only if he has been employed through the last\nday of the third fiscal quarter of a year in which bonus is earned.  Payment,\nand timing of payment will be according to the terms and conditions of the Bonus\nPlan.     (iii) the company will pay Michael Sontag's COBRA for the salary\ncontinuation period described in subsection (i) above.\n7.  EMPLOYMENT AGREEMENT REGARDING CONFIDENTIALITY: Michael Sontag agrees to\nexecute and abide by the terms and conditions of the Company's employee\nEmployment Agreement Regarding Confidentiality.\n8. DISPUTE RESOLUTION:  In the event of any dispute or claim relating to or\narising out of this employment relationship, this Agreement, or the entering\ninto or termination of this employment relationship (including, but not limited\nto, any tort, contract or discrimination claims), all such disputes shall be\nfully\nand finally resolved by binding arbitration conducted by the American\nArbitration Association in Alameda County, California; provided, however, that\nthis arbitration provision shall not apply to any disputes or claims relating to\nor arising out of the misuse or misappropriation of the Company's trade secrets\nor proprietary information.\n9.  SUCCESSORS AND ASSIGNS:  This Agreement shall inure to the benefit of and be\nbinding upon the Company and its successors and assigns.  In view of the\npersonal nature of the services to be performed under this Agreement by Michael\nSontag he shall not have the right to assign or transfer any of his rights,\nobligations or benefits under this Agreement, except as otherwise noted herein.\n10.  ENTIRE AGREEMENT:  This Agreement constitutes the entire employment\nagreement between Michael Sontag and the Company regarding the terms and\nconditions of his employment, with the exception of (i) the Employment Agreement\nRegarding Confidentiality described in paragraph 7 and (ii) any stock option\nagreement between Michael Sontag and the Company.  This Agreement supersedes all\nprior negotiations, representations or agreements between Michael Sontag and the\nCompany, whether written or oral, concerning Michael Sontag's employment by the\nCompany.\n11.  NO REPRESENTATIONS: Michael Sontag acknowledges that he is not relying, and\nhas not relied, on any promise, representation or statement made by or on behalf\nof the Company which is not set forth in this Agreement. \n\n12.  VALIDITY:  If any one or more of the provisions (or any part thereof) of\nthis Agreement shall be held invalid, illegal or unenforceable in any respect,\nthe validity, legality and enforceability of the remaining provisions (or any\npart thereof) shall not in any way be affected or impaired thereby.\n13.   MODIFICATION:  This Agreement may only be modified or amended by a\nsupplemental written agreement signed by Michael Sontag and the Company.\n14.  INTERPRETATION:  This Agreement shall be interpreted in accordance with and\ngoverned by the laws of the State of California.\n     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date\nand year written below.\n                                        NATURAL WONDERS, INC.\nDate:    9\/26\/96                        By \/s\/ Kathleen M. Chatfield\n     -----------------------------        --------------------------\n                                        Its\n                                           -------------------------\nDate:    9\/26\/96                          \/s\/ Michael Sontag\n     -----------------------------      ----------------------------\n                                        Michael Sontag\n\n                           NATURAL WONDERS, INC.\n                            EMPLOYMENT AGREEMENT\n                              Attachment A\nRelocation assistance for Michael Sontag is as follows:I.   RELOCATION EXPENSES\nA.   Reimbursement for physical relocation of normal household goods and 2 cars.\nB.   Payment of ONE TIME non recurring closing costs, including credit report,\n     appraisal, notary fees, document charges on a new home up to $5,000.  These\n     expenses must be incurred within 12 months of date of hire.     \nC.   Reimbursement for real estate commission on existing home up to 6% of\n     selling price not to exceed $18,000.  These expenses must be incurred\n     within 12 months of date of hire.\nD.  Temporary housing not to exceed 6 months, trips to New Hampshire to visit\n     with family and to deal with shut down of New Hampshire address, and\n     airfare for the family's move to New Hampshire.\nE.   In the event that Michael Sontag sells his house in New Hampshire for a\n     price less than the price he originally paid for the house, the Company\n     shall reimburse Michael Sontag for that difference up to an amount of\n     $20,000; provided, that such sale is fully consummated within a period of\n     (12) months from the execution of this Agreement.\nThe Company will gross up your salary to minimize the tax implications on\nreimbursement of any of the above expenses which are not deductible.  The gross\nup will be paid at the time that applicable tax returns are filed, at the\napplicable tax rate, subject to your providing proper accounting documentation\nof such expenses as determined by the Company.II.  VOLUNTARY TERMINATION   \nIf you should voluntarily terminate employment with the Company before 1 year\nfrom date of employment you will be responsible to reimburse the Company for a\npro - rata portion of the total Relocation Expenses as follows:\n- -------------------------------------------------------------------------------\nLENGTH OF EMPLOYMENT WITH NATURAL WONDERS    PERCENTAGE OF TOTAL RELOCATION\n                                                   EXPENSES DUE COMPANY\n- -------------------------------------------------------------------------------\nLess than 6 months                           100%\n6 months or more - Less than 1 year          50%\n                                        NATURAL WONDERS, INC.\nDate:   9\/26\/96                         By \/s\/ Kathleen M. Chatfield\n     -----------------------------        --------------------------\n                                        Its\n                                           -------------------------\nI agree to and accept employment with Natural Wonders, Inc. on the terms and\nconditions set forth in this Agreement.\nDate    9\/26\/96                           \/s\/ Michael Sontag\n     -----------------------------      ----------------------------\n                                        Michael Sontag\n\n\n<\/pre>\n","protected":false},"template":"","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_cloudinary_featured_overwrite":false},"corporate_contracts_companies":[8303],"corporate_contracts_industries":[9501],"corporate_contracts_types":[9539,9544],"class_list":["post-39382","corporate_contracts","type-corporate_contracts","status-publish","hentry","corporate_contracts_companies-natural-wonders-inc","corporate_contracts_industries-retail__misc","corporate_contracts_types-compensation","corporate_contracts_types-compensation__employment"],"acf":[],"_links":{"self":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts\/39382","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts"}],"about":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/types\/corporate_contracts"}],"wp:attachment":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/media?parent=39382"}],"wp:term":[{"taxonomy":"corporate_contracts_companies","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_companies?post=39382"},{"taxonomy":"corporate_contracts_industries","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_industries?post=39382"},{"taxonomy":"corporate_contracts_types","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_types?post=39382"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}