Document:

Exhibit 10.17 Employment Letter from the Company to Kathryn V. Roedel

    
      

      

    

    Exhibit 10.17

     

     

    

      March
        8,
        2005

      

      Kathy
        Roedel

      

      

      Dear
        Kathy, 

      

      On
        behalf
        of Select Comfort Corporation, I am pleased to confirm that you will be joining
        Select Comfort as the Senior Vice President, Global Supply Chain reporting
        to
        me. This position is considered as an executive officer of the company. Your
        anticipated start date is April 4, 2005. You will be based in our Plymouth,
        MN
        location. 

      

      The
        agreed upon terms of this exempt, full-time position are as
        follows:

      	·  	
              Starting
                bi-weekly salary of $9615.38. ($250,000 annualized). You
                will also be eligible for your next salary review in February,
                2006.

            

      

      	·  	
              You
                will be eligible to receive a one-time lump sum sign on bonus of
                $50,000
                (less applicable withholdings) within your first 2 weeks of
                employment.

            

      

      	·  	
              You
                will be eligible to participate in the company’s management bonus
                plan.
                Under the plan as established for 2005, you will be eligible for
                a
                targeted bonus of 55% of base compensation actually paid for the
                year. The
                actual bonus payment may range from 0% to 250% of the targeted bonus
                level, depending on the performance of the Company. Your minimum
                2005
                bonus payment will be paid at full-year target(not pro-rated), with
                upside
                if the company exceeds plan. Your minimum 2006 bonus payment will
                be paid
                at 75% of target, with upside based on company performance versus
                targets.
                

            

      

      	·  	
              You
                will be granted options to purchase 75,000 shares of the Company’s common
                stock at a fixed exercise price. The exercise price of these options
                will
                be the average of the high and low trading prices of the Company’s common
                stock on the date of grant, which we expect to be the first day of
                employment. These options will vest 25% per year on each of the first
                4
                anniversaries of the date of grant. You will be eligible for annual
                equity
                grants as part of our annual long-term incentive
                plan.

            

      

      	·  	
              You
                will also be granted 5000 restricted shares which will vest after
                4
                completed years of service. The grant price of these shares will
                be the
                average of the high and low trading prices of the Company’s common stock
                on the day your employment begins.

            

      

      	·  	
              You
                will be eligible for the company’s director level & above benefits as
                part of your total compensation package. Please refer to the attached
                summary of benefits for details. 

            

      

      Actual
        benefits are defined in the individual plan documents. You will be eligible
        for
        25 days paid time off annually, plus 10 holidays.

      

      You
        will
        be eligible for relocation benefits as part of your compensation package.
        Select
        Comfort will cover reimbursable relocation expenses to include:

      	·  	
              Reasonable
                costs (travel, food, lodging, car rental, etc.) for the purpose of
                finalizing a home purchase. We would expect this to include the cost
                of a
                pre-employment house hunting trip for you and your spouse; and an
                additional house hunting trip for your spouse/family if necessary.
                

            

      	·  	
              Interim
                temporary living for a period of up to 60 days if permanent residence
                is
                not available.

            

      	·  	
              Reasonable
                number of trips back home while/if you are in interim
                living.

            

      	·  	
              The
                moving of your household goods and personal effects through a moving
                company set up by Select Comfort.

            

      	·  	
              Real
                estate fees associated with the sale of your home and other reimbursable
                closing costs. 

            

      

      In
        the
        event that you voluntarily leave Select Comfort during the first twelve months
        of employment, you agree to re-pay to Select Comfort the reimbursed relocation
        expenses.  

      

      If
        your
        employment is terminated by the Company within one (1) year following a change
        of control of the Company, or if you are subject at any time to a termination
        without cause, upon the termination of your employment under such circumstances,
        and subject to the execution and delivery to the Company of a standard release
        of claims, you will be entitled to receive one (1) year’s base salary as
        severance compensation, and the portion of the stock
        options referred to above which have not previously been vested, will vest
        immediately and remain exercisable for a period not to exceed ninety (90)
        days
        following termination of employment. At your option, the severance compensation
        described above will be payable (a) over a period of one (1) year following
        termination of employment in accordance with the Company’s normal payroll
        schedule, or (b) in a lump sum equal to the present value of such stream
        of
        payments discounted at a capitalization rate of 10%. In addition, if such
        termination occurs more than half-way through a fiscal year of the Company,
        and
        subject to the execution and delivery to the Company of a standard release
        of
        claims, you will be entitled to receive a pro rata portion of any bonus payment
        that is ultimately earned for such fiscal year, payable at the time such
        bonus
        payments are paid to other eligible employees.

      

      This
        offer is contingent upon successful completion of your reference, education
        and
        background investigation, and compliance with the Immigration Reform Control
        Act
        of 1986 (IRCA). Furthermore, this offer is conditional upon your signing
        our
        Employee Inventions, Confidentiality and Non-Compete Agreement, a copy of
        which
        will be sent under separate cover. In addition, you will need to sign the
        attached release authorizing a background check. Please complete and sign
        the
        background check release and fax to Kevin Gunn’s attention at
        763.694.3305

      

      You
        should understand that this offer of employment does not constitute a contract
        of employment, nor is it to be construed as a
        guarantee of continuing employment for any period of time. Employment
        with Select Comfort is “at will”. We recognize your right to terminate the
        employment relationship at anytime and for any reason, and, similarly, we
        reserve the right to alter, modify or terminate the relationship at any time
        and
        for any reason. 

      

      This
        written offer of employment constitutes the entire understanding of the parties
        regarding your hiring and employment, and supersedes and replaces any and
        all
        oral or written statements made by Select Comfort relating to your hiring
        and
        employment that are inconsistent with its terms. Upon commencement of
        employment, you will be subject to all policies and procedures of Select
        Comfort.

      

      Select
        Comfort is rapidly transforming the industry, and dramatically improving
        people’s lives through better sleep! I look forward to you joining the Select
        Comfort team! Should you have any questions, please contact me directly at
        (763)
        551-7007.

      

      Sincerely,

      

      /s/
        William R. McLaughlin

      

      William
        R. McLaughlin

      Chairman,
        President & CEO

       

       

       

      Accepted:
        /s/
        Kathy RoedelExhibit 10.18 Employment Letter from the Company to Wendy L. Schoppert

    
      

      

    

    Exhibit
      10.18

     

     

    

      March
        15,
        2005

      

      Wendy
        Schoppert

       

       

      Dear
        Wendy, 

      

      On
        behalf
        of Select Comfort Corporation, it is with great pleasure to confirm your
        verbal
        acceptance to join Select Comfort as Senior Vice President & General Manager
        reporting to me. Your anticipated start date will be April 18, 2005 You will
        be
        based in our Plymouth, MN location. 

      

      We
        would
        like to offer you an exempt, full-time position, which includes:

      	·  	
              Starting
                bi-weekly salary of $8846.16. ($230,000 annualized). You
                will also be eligible for your next salary review in February, 2006.
                

            

      

      	·  	
              You
                will be eligible to participate in the company’s management bonus
                plan.
                Under the plan as established for 2005, you will be eligible for
                a minimum
                target bonus payout of 55% of annual base pay (not pro-rated). Your
                bonus
                payment has upside leverage, up to 250%, to the extent to which the
                company exceeds its bonus target.

            

      

      	·  	
              You
                will be granted options to purchase 75,000 shares of the Company’s common
                stock at a fixed exercise price. The exercise price of these options
                will
                be the average of the high and low trading prices of the Company’s common
                stock on the date of grant, which we expect to be the first day of
                employment. These options will vest 25% per year on each of the first
                4
                anniversaries of the date of grant. You will be eligible for annual
                equity
                grants as part of our annual long-term incentive
                plan.

            

      

      	·  	
              You
                will also be granted 5000 restricted shares which will vest after
                4
                completed years of service. The grant price of these shares will
                be the
                average of the high and low trading prices of the Company’s common stock
                on the day your employment begins.

            

      

      	·  	
              You
                will be eligible for the company’s director level benefits as part of your
                total compensation package. Please refer to the attached summary
                of
                benefits for details. Actual benefits are defined in the individual
                plan
                documents. You will be eligible for 20 days paid time off annually,
                plus
                10 holidays.

            

      

      If
        your
        employment is terminated by the Company within one (1) year following a change
        of control of the Company, or if you are subject at any time to a termination
        without cause, upon the termination of your employment under such circumstances,
        and subject to the execution and delivery to the Company of a standard release
        of claims, you will be entitled to receive one (1) year’s base salary as
        severance compensation, and the portion of the stock options referred to
        above
        which have not previously been vested, will vest immediately and remain
        exercisable for a period not to exceed ninety (90) days following termination
        of
        employment. At your option, the severance compensation described above will
        be
        payable (a) over a period of one (1) year following termination of employment
        in
        accordance with the Company’s normal payroll schedule, or (b) in a lump sum
        equal to the present value of such stream of payments discounted at a
        capitalization rate of 10%. In addition, if such termination occurs more
        than
        half-way through a fiscal year of the Company, and subject to the execution
        and
        delivery to the Company of a standard release of claims, you will be entitled
        to
        receive a pro rata portion of any bonus payment that is ultimately earned
        for
        such fiscal year, payable at the time such bonus payments are paid to other
        eligible employees.

      

      This
        offer is contingent upon successful completion of your reference, education
        and
        background investigation, and compliance with the Immigration Reform Control
        Act
        of 1986 (IRCA). Furthermore, this offer is conditional upon your signing
        our
        Employee Inventions, Confidentiality and Non-Compete Agreement, a copy of
        which
        will be sent under separate cover. In addition, you will need to sign the
        attached release authorizing a background check. Please complete and sign
        the
        background check release and fax to Kevin Gunn’s attention at
        763.694.3305

      

      This
        offer will remain valid for seven (7) days from the date of this letter unless
        we notify you otherwise. You should understand that this offer of employment
        does not constitute a contract of employment, nor is it to be construed as
        a
        guarantee of continuing employment for any period of time. Employment
        with Select Comfort is “at will”. We recognize your right to terminate the
        employment relationship at anytime and for any reason,
        and, similarly, we reserve the right to alter, modify or terminate the
        relationship at any time and for any reason. 

      

      This
        written offer of employment constitutes the entire understanding of the parties
        regarding your hiring and employment, and supersedes and replaces any and
        all
        oral or written statements made by Select Comfort relating to your hiring
        and
        employment that are inconsistent with its terms. Upon commencement of
        employment, you will be subject to all policies and procedures of Select
        Comfort.

      

      Select
        Comfort is rapidly transforming the industry, and dramatically improving
        people’s lives through better sleep! I look forward to you joining the Select
        Comfort team! Should you have any questions, please contact me directly at
        (763)
        551-7007.

      

      Sincerely,

      

      /s/
        William R. McLaughlin

      

      William
        R. McLaughlin

      Chairman,
        President & CEO

       

      
 

      Accepted:
        /s/
        Wendy Schoppert

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