Employment Agreement between Woodworkers Warehouse, Inc. and Rick Walker (Vice President, CFO)

Summary

Woodworkers Warehouse, Inc. and Rick Walker entered into an employment agreement for the position of Vice President and Chief Financial Officer, starting on or before July 15, 2002. Rick Walker will receive a $170,000 annual salary, a $37,000 sign-on bonus, and is eligible for incentive and guaranteed bonuses. The agreement includes annual performance reviews, severance terms for involuntary termination without cause, stock options, vacation, executive health and life insurance, and 401(k) benefits. The agreement outlines key obligations and benefits for both parties.

EX-10.03 5 b319438_ex1003.txt EMPLOYMENT AGREEMENT Exhibit 10.03 June 21, 2002 Mr. Rick Walker 21 East Bay Lane Plymouth, MA 02360 Dear Rick: On behalf of Woodworkers Warehouse, Inc., I am pleased to confirm the terms of your employment offer as follows: Title: Vice President, Chief Financial Officer Reporting to: Walt Spokowski, President and CEO Base Salary: $170,000 per year paid every two weeks Sign on Bonus: You will receive a $37,000 sign on bonus payable on your 1st day of work. Bonus Opportunity: You are eligible for the company's incentive bonus program providing for a maximum payout of 60% of your base salary on 150% EBITDA. A $51,000 guaranteed bonus will be paid after the end of the company's fiscal year. Any additional earned bonus will be paid after the completion of the audit of Fiscal Year 2002. Performance Review: Reviews are conducted annually after the completion of the audit of the fiscal year ending February 2003. Your first review will take place at that time. Severance: In the event of an involuntary termination of your employment initiated by the company for other than just Cause (as defined below), the company will agree to continue your base salary and insurance coverage for six months. For purposes of this agreement, the term "Cause" shall mean: (i) the employee knowingly violates a material written policy of the employer; (ii) the employee's commission of a felony involving moral turpitude, deceit, dishonesty or fraud; or (iii) gross negligence or willful misconduct of the employee with respect to the employer which injures the employer's business. Mr. Rick Walker June 21, 2002 Page 2 Vacation: You are entitled to vacation under the company's vacation policy and you will receive 2 weeks paid vacation in FY02 regardless if used or not used. However, you will receive three weeks per fiscal year starting in FY03. Stock Options: You will receive options on 25,000 shares of company stock vesting in equal amounts over three years. Benefits: You will be eligible for the company Executive Health and Life Insurance Plan including 100% medical coverage for your entire family at no cost to you. 401K: The company plan matches contributions up to the first 3% of your income. We look forward to you joining the woodworkers Warehouse, Inc. management team. We would appreciate your signing and returning one copy of this letter as confirmation of your acceptance of the position and your understanding of the above items. May I add my personal welcome, in anticipation of you becoming an integral part of the Woodworkers Warehouse Team. If you need any additional information, call me. Sincerely, /s/ Andrea Watt - --------------- Andrea Watt Senior Associate I accept the terms of this offer and agree to report for work on or before July 15, 2002. /s/ Rick Walker 6/24/02 - --------------- ------- Rick Walker Date