Document:

Exhibit 10.11

 

 

May 6, 2014

 

[Employee Address]

 

Dear [Employee]:

 

On behalf of Wayfair LLC (the “Company”), I am pleased to offer your continued employment as the Company’s [Title] on the terms and conditions set forth below in our agreement (the “Agreement”). You agree that this Agreement amends and restates, in its entirely, the employment agreement between you and the Company, dated June 21, 2011.

 

1.                                      Title and Responsibilities. As the [Title], you will have supervision and control over and responsibility for the day-to-day [technology-related] business and affairs of the Company and shall have such other powers and duties as may from time to time be prescribed by the [Chief Executive Officer/Board of Managers] of the Company. You agree to devote your full working time and efforts to the business and affairs of the Company.

 

2.                                      Salary. The Company will pay you an annual salary of $80,000, retroactive to January 1, 2014, subject to periodic increase (but not subject to decrease) at the discretion of the Board.

 

3.                                      Benefits. You will be eligible to participate in any employee benefits and insurance programs generally made available by the Company to its full-time employees.

 

4.                                      Confidential Information, Noncompetition and Cooperation.

 

A.                                    Confidential Information. As used in this Agreement, “Confidential Information” means information belonging to the Company which is of value to the Company in the course of conducting its business and the disclosure of which could result in a competitive or other disadvantage to the Company. Confidential Information includes, without limitation, financial information, reports, and forecasts; inventions, improvements and other intellectual property; trade secrets; know-how; designs, processes or formulae; software; market or sales information or plans; customer lists; and business plans, prospects and opportunities (such as possible acquisitions or dispositions of businesses or facilities) which have been discussed or considered by the management of the Company. Confidential Information includes information developed by you in the course of your employment by the Company, as well as other information to which you may have access in connection with your employment. Confidential Information also includes the confidential information of others with which the Company has a business relationship. Notwithstanding the foregoing, Confidential Information does not include information in the public domain, unless due to breach of your duties under Section 4.B.

 

B.                                    Confidentiality. You understand and agree that your employment creates a relationship of confidence and trust between you and the Company with respect to all Confidential Information. At all times, both during your employment with the Company and after its termination, you will keep in confidence and trust all such Confidential Information, and will not use or disclose any such Confidential Information without the written consent of the Company, except as may be necessary in the ordinary course of performing your duties for the Company.

 

C.                                    Documents, Records, etc. All documents, records, data, apparatus, equipment and other physical property, whether or not pertaining to Confidential Information, which are

 

Wayfair LLC – 177 Huntington Avenue, Suite 6000, Boston, MA 02115 (617) 532-6100

 

 

furnished to you by the Company or are produced by you in connection with your employment will be and remain the sole property of the Company. You will return to the Company all such materials and property as and when requested by the Company. In any event, you will return all such materials and property immediately upon termination of your employment for any reason. You will not retain any such material or property or any copies thereof after such termination.

 

D.                                    Noncompetition and Nonsolicitation. During your employment with the Company and for 24 months thereafter (such 24 month period referred to herein as the “Non Compete Period”), regardless of the reason for the termination, you will not (i) directly or indirectly, whether as owner, partner, shareholder, consultant, agent, employee, co-venturer or otherwise, engage, participate, assist or invest in any Competing Business (as hereinafter defined); (ii) solicit, entice, attempt to persuade any other employee or consultant of the Company to leave the Company’s employment for any reason or otherwise participate in or facilitate the hire, directly or through another entity, of any person who is employed or engaged by the Company, provided, however, that the restriction in this sub-section (ii) shall not apply to (a) persons hired via general advertisements and other similar broad forms of solicitation (including through the use of employment agencies) or (b) persons who affirmatively seek employment through no solicitation or enticement on your part; or (iii) solicit or encourage any supplier to terminate or otherwise modify adversely its business relationship with the Company. You understand that the restrictions set forth in this Section 4.D are intended to protect the Company’s interest in its Confidential Information and established employee and supplier relationships and goodwill, and agrees that such restrictions are reasonable and appropriate for this purpose. For purposes of this Agreement, the term “Competing Business” shall mean a business conducted anywhere in the world where the Company conducts business which is competitive with any business which the Company or any of its affiliates conducts or proposes to conduct at any time during your employment to the extent you were aware of such plans, including, but in no way limited to any internet-based retail business focused on home-related products. Notwithstanding the foregoing, (a) you may own up to two percent (2%) of the outstanding stock of a publicly held corporation which constitutes or is affiliated with a Competing Business (b) you may invest in early stage e-commerce entities and investment funds which hold equity interests in a Competing Business, provided, however, that the aggregate amount of any such investment in any such early stage e-commerce entity shall not exceed $500,000 and your aggregate direct and indirect equity interest in any such entity shall at no time exceed ten percent (10%); and (c) you may invest in venture capital, private equity, mutual or similar investment funds that invest in Competing Businesses, provided, that you do not control any such fund and are not otherwise involved in the investment decision process of any such fund.

 

E.                                     Severance. In the event you are terminated by the Company without Cause (as defined below) or you terminate your employment for Good Reason (as defined below), then you shall be entitled (to the extent you elect) to receive medical and/or dental benefits pursuant to the provisions of the Consolidated Omnibus Budget Reconciliation Act (“COBRA”) for yourself and/or any qualifying beneficiaries as set forth below:

 

1.                                     The Company shall pay on your behalf, or reimburse you for, the amount of the applicable COBRA for the same level of coverage immediately prior to the date of termination.

 

 

2.                                     Payments under this paragraph shall cease upon the earlier of (i) the end of the first month in which you are no longer eligible for COBRA for any reason (other than death or eligibility for Medicare, provided that COBRA coverage continues for any qualified beneficiary), or (ii) on the last day of the Non-Compete Period.

 

3.                                      For purposes of this Agreement, the following shall constitute “Cause”: (a) acts or omissions constituting gross negligence, recklessness or willful misconduct on your part with respect to your obligations or otherwise relating to the business of Company, provided the Company provides you with notice of such act or omission within 30 days of such act or omission, and the same is not cured by you within 30 days of such notice; or (b) your conviction or entry of a plea of nolo contendere for fraud, misappropriation or embezzlement, or any felony or crime of moral turpitude. For purposes of this Agreement, “Good Reason” is defined as: (a) a material diminution in your base salary; or (b) a material diminution in your title, authority, or responsibility, provided in either case that you provide written notice to the Company within 30 days of any act or omission constituting “Good Reason,” and the Company fails to cure such condition within 30 days.

 

F.                                      Third-Party Agreements and Rights. You hereby confirm that you are not bound by the terms of any agreement with any previous employer or other party which restricts in any way your use or disclosure of information or your engagement in any business. You represent to the Company that your execution of this Agreement, your employment with the Company and the performance of your proposed duties for the Company will not violate any obligations you may have to any such previous employer or other party. In your work for the Company, you will not disclose or make use of any information in violation of any agreements with or rights of any such previous employer or other party, and you will not bring to the premises of the Company any copies or other tangible embodiments of non-public information belonging to or obtained from any such previous employment or other party.

 

G.                                    Litigation and Regulatorv Cooperation. During and after your employment, you shall cooperate fully with the Company in the defense or prosecution of any claims or actions now in existence or which may be brought in the future against or on behalf of the Company which relate to events or occurrences that transpired while you were employed by the Company. Your full cooperation in connection with such claims or actions shall include, but not be limited to, being available to meet with counsel to prepare for discovery or trial and to act as a witness on behalf of the Company at mutually convenient times. During and after your employment, you also shall cooperate fully with the Company in connection with any investigation or review of any federal, state or local regulatory authority as any such investigation or review relates to events or occurrences that transpired while you were employed by the Company. The Company shall reimburse you for any reasonable out-of-pocket expenses incurred in connection with your performance of obligations pursuant to this Section 4.G and shall pay you an agreed upon hourly wage for cooperation conducted after your employment

 

H.                                   Injunction. You agree that it would be difficult to measure any damages caused to the Company which might result from your breach of the promises set forth in this Section 4, and that in any event money damages would be an inadequate remedy for any such breach.

 

 

Accordingly, subject to Section 5 of this Agreement, you agree that if you breach, or propose to breach, any portion of this Agreement, the Company shall be entitled, in addition to all other remedies that it may have, to an injunction or other appropriate equitable relief to restrain any such breach without showing or proving any actual damage to the Company.

 

5.                                     Arbitration. Any controversy or claim arising out of or relating to this Agreement or the breach thereof or otherwise arising out your employment or the termination of that employment (including, without limitation, any claims of unlawful employment discrimination whether based on age or otherwise) shall, to the fullest extent permitted by law, be settled by arbitration in any forum and form agreed upon by the parties or, in the absence of such an agreement, under the auspices of the American Arbitration Association (“AAA”) in Boston, Massachusetts in accordance with the Employment Dispute Resolution Rules of the AAA, including, but not limited to, the rules and procedures applicable to the selection of arbitrators, with the fees of any arbitrator to be borne exclusively by the Company. In the event that any person or entity other than you or the Company may be a party with regard to any such controversy or claim, such controversy or claim shall be submitted to arbitration subject to such other person or entity’s agreement. Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. This Section 5 shall be specifically enforceable. Notwithstanding the foregoing, this Section 5 shall not preclude either party from pursuing a court action for the sole purpose of obtaining a temporary restraining order or a preliminary injunction in circumstances in which such relief is appropriate; provided that any other relief shall be pursued through an arbitration proceeding pursuant to this Section 5.

 

6.                                      409A Compliance.

 

A.                                    It is the intention of both you and the Company that the benefits and rights to which you are entitled pursuant to this Agreement are exempt from or comply with Section 409A of the Internal Revenue Code of 1986, as amended, and the formal guidance issued thereunder (“Section 409A”), to the extent that the requirements of Section 409A are applicable thereto, and the provisions of this Agreement shall be construed in a manner consistent with that intention. If you or the Company believe, at any time, that any such benefit or right that is subject to Section 409A does not so comply, you or the Company shall promptly advise the other and shall negotiate reasonably and in good faith to amend the terms of such benefits and right such that they comply with Section 409A (with the most limited possible economic effect on you and the Company).

 

B.                                    With respect to any reimbursement of expenses of, or any provision of in- kind benefits to, you, as specified under this Agreement, such reimbursement of expenses or provision of in-kind benefits shall be subject to the following conditions: (I) the expenses eligible for reimbursement or the amount of in-kind benefits provided in one taxable year shall not affect the expenses eligible for reimbursement or the amount of in-kind benefits provided in any other taxable year, except for any medical reimbursement arrangement providing for the reimbursement of expenses referred to in Section 105(b) of the Code; (2) the reimbursement of an eligible expense shall be made no later than the end of the year after the year in which such expense was incurred; and (3) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit.

 

C.                                    To the extent required to comply with Section 409A, any payment or benefit required to be paid under this Agreement on account of your termination of employment or

 

 

separation from service (or any other similar term) as used in this Agreement shall be made only in connection with your “separation from service” within the meaning of Section 409A.

 

D.                                    For purposes of Section 409A, the right to a series of installment payments under this Agreement shall be treated as a right to a series of separate payments.

 

E.                                     Neither the Company nor you, individually or in combination, may accelerate any payment or benefit that is subject to Section 409A, except in compliance with Section 409A and the provisions of this Agreement, and no amount that is subject to Section 409A will be paid prior to the earliest date on which it may be paid without violating Section 409A.

 

F.                                      Notwithstanding any time of payment otherwise designated in this Agreement, if on your “separation from service” date you are a “specified employee” within the meaning of Section 409A, any amount of “deferred compensation” (as defined by Section 409A, after giving effect to any applicable exemptions) payable to you by reason of your “separation from service” with the Company will not be paid to you until the date that is 6 months and one day following your separation from service to the extent required by Section 409A.

 

7.                                      Miscellaneous.

 

A.                                    To the extent there is a conflict between this Agreement and the Non- competition, Non-solicitation, Non-disclosure and Invention Assignment Agreement for key employees between you and the Company (the “Existing Agreement”), the provisions of this Agreement shall prevail. Notwithstanding the foregoing, the parties expressly agree that Section C of the Existing Agreement (“Non-Competition/Non-Solicitation”) is superseded by the provisions hereof and shall be of no further force or effect.

 

B.                                    This Agreement, and the Existing Agreement, set forth the entire agreement between you and the Company regarding the terms and conditions of your employment and replaces all prior and contemporaneous communications, agreements and understandings, written or oral, with respect to the terms and conditions of your employment.

 

C.                                    Your employment with the Company shall be on an at-will basis. In other words, you or the Company may terminate employment for any reason and at any time, with or without notice.

 

D.                                    This Agreement shall be construed in accordance with the laws of the Commonwealth of Massachusetts, without regard to the conflict of laws principles thereof. Subject to Section 5, the federal and state courts for the Commonwealth of Massachusetts shall have exclusive jurisdiction with respect to any disputes arising from this Agreement and you hereby agree to the personal jurisdiction of such courts over you.

 

E.                                     If any portion or provision of this Agreement (including, without limitation, any portion or provision of any section of this Agreement) shall to any extent be declared illegal or unenforceable by a court of competent jurisdiction, then the remainder of this Agreement, or the application of such portion or provision in circumstances other than those as to which it is so declared illegal or unenforceable, shall not be affected thereby, and each portion and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.

 

F.                                      All forms of compensation referred to in this Agreement are subject to reduction to reflect applicable withholding and payroll taxes and other deductions required by law. You hereby acknowledge that the Company does not have a duty to design its

 

 

compensation policies in a manner that minimizes your tax liabilities, and you will not make any claim against the Company or its Board related to tax liabilities arising from your compensation.

 

G.                                    The provisions of this Agreement shall survive the termination of this Agreement and/or the termination of your employment to the extent necessary to effectuate the terms contained herein.

 

H.                                   This Agreement may be amended or modified only by a written instrument signed by you and by a duly authorized representative of the Company.

 

I.                                        The Company’s offer of employment to you is contingent upon your submission of satisfactory proof of your identity and your legal authorization to work in the United States.

 

If you accept these terms, please sign your name below.

 

	
 
    	
Very   Truly Yours,
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Wayfair   LLC:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

	
[Employee]Exhibit 10.12

 

Wayfair, LLC., 177 Huntington Avenue, Boston MA  02115;

T: (617) 502-7500; F: (617) 391-4611

 

October 2, 2013

 

Mr. Michael Fleisher

(917) 365-0599

michael@fleishers.net

 

Dear Michael,

 

We are pleased to offer you a position with Wayfair, LLC (“Wayfair”), as the Chief Financial Officer, commencing on October 21, 2013. The purpose of this letter is to describe the general terms and conditions of your employment with Wayfair.

 

Job Responsibilities:

 

You will be treated for all purposes of your employment, including without limitation, compensation and benefits, as a Senior Vice President of Wayfair, you will be a member of the Company’s senior management team and you will report to Niraj Shah, President and CEO.  You will be responsible for all of the activities of the firm as they relate to Finance, Legal, Investor Relations, and Human Resources.

 

Compensation:

 

Your starting annual salary shall be $350,000 per year, less applicable tax and other withholdings in accordance with the Company’s  normal payroll procedure. Your salary may be reviewed and adjusted from time to time.  The Company will pay your salary in its regularly scheduled payroll cycle.

 

Equity:

 

As a benefit to our employees, Wayfair provides employees with an equity interest in the Company pursuant to a formal equity plan.  We will provide you with an equity award of 568,000 Deferred Units, which will be issued to you pending quarterly board approval and which will vest over a five year period of time.  You will receive the documentation relating to the Wayfair equity plan upon your commencement of work at Wayfair.

 

Bonus:

 

You will be eligible to participate in the Company’s bonus and profit sharing plans.  Your bonus will be between 0- 20% of your annual salary. All bonus amounts will be pro-rated for the portion of the calendar year that you were an employee.  Bonuses are paid in the first quarter of the year for the calendar year that just ended and you must be an employee at time of payment to receive the bonus.

 

Fringe Benefits:

 

You will be entitled to receive the fringe benefits generally available to the Company’s employees. The Company, of course, may amend, terminate, or enhance the benefits provided to you and our other employees from time to time as it deems appropriate.

 

 

Paid Time Off:

 

You shall be entitled to 21 days paid time off per year.

 

Internal Policies:

 

During your employment with the Company, you will be required to follow all of the Company’s internal policies and to conduct your business activities at all times in accordance with the highest legal, ethical and professional standards.

 

Employment At Will:

 

Your employment with the Company shall be at will.  As such, your employment is for no definite period of time, and you or the Company may terminate your employment relationship with or without notice at any time and for any reason, or without a reason or cause.  The Company is not bound to follow any policy, procedure, or process in connection with employee discipline, employment termination or otherwise.

 

Notwithstanding  the  above,  if you  are  terminated  for  anything  but  cause  in the  12  months following your employment start date, you will be eligible for 6 months of severance based on your salary at the time of termination.   For purposes of this Agreement, “Cause” shall mean any of following by the employee:

 

1.    Theft, dishonesty, willful misconduct, breach of fiduciary duty for personal profit, or falsification of any company documents or records;

 

2.   The  material failure to abide by the company’s  code of conduct or other  policies, (including, without limitation, policies relating to confidentiality and reasonable workplace conduct);

 

3.   The unauthorized  use, misappropriation, destruction or diversion of any tangible  or intangible asset or corporate opportunity of the Company (including without limitation the improper use or disclosure of the Company’s confidential or proprietary information);

 

4.   Any  intentional  act  which has a material  detrimental  effect on the  Company’s reputation  or business;

 

5.   The repeated failure or inability to perform any reasonable assigned duties after written notice from the Company and after a reasonable opportunity to cure such failure or inability;

 

6.   Any material breach of an employment or service agreement between employee and Company which breach is not cured pursuant to the terms of such agreement;

 

7.   The conviction  (including any plea of guilty or nolo contendere) of any criminal act involving fraud, dishonesty, misappropriation or moral turpitude, or which impairs the ability to perform the duties of the employee

 

Full Time Employment.

 

Your employment with the Company will be on a full-time basis. You will devote your full time and effort during normal business hours to the business of the Company.

 

 

No Conflicting Obligation/Conflicts of Interest.

 

You hereby represent and warrant to the Company that you are not presently under and will not hereafter become subject to any obligation to any person or entity which is inconsistent or in conflict with this agreement or which would prevent, limit or impair in any way your performance of your duties to the Company as described herein.  Specifically you represent and warrant that you have not brought with you any confidential or proprietary information of any former employer, and you are not subject to any agreement or obligation with a former employer which would prohibit your employment by the Company.  Further, during the term of your employment, you will not engage in any activity on behalf of, nor accept any salary, commissions, fee or compensation of any kind (other than investment income) from any person, firm or corporation competing with the Company.

 

Non-Competition, Non-Solicitation, Non-Disclosure And Invention Assignment Agreement

 

As a condition of your employment, you will be required to sign a Non-Compete, non-solicitation, non-Disclosure and Invention Agreement.  Among other things, the Agreement will provide that the Company owns your work product and all developments made by you related to the Company’s business; that you shall hold all non-public information regarding the Company confidential; and that you will not solicit, hire, divert or take away any employee, contractor, customer or supplier of the Company.

 

Conditions of Employment:

 

This offer is contingent upon your providing satisfactory documentation to the Company concerning your employment eligibility as required by Congress under the Immigration Reform and Control Act of 1986.  This documentation must be received and accepted by the Company within three (3) business days of your date of hire. Your employment is also contingent upon the Company’s completion of a satisfactory investigation of your background.  You agree to release the Company, its employees and agents and any individuals who may provide the Company with information regarding your background from any liability in connection with this background check.

 

Governing Law:

 

This letter shall be governed, construed and enforced in accordance with the laws of Massachusetts, without regard to principles of choice or conflicts of law.

 

Entire Understanding:

 

This letter contains our entire understanding regarding the terms and conditions of your employment and supersedes any prior statements regarding your employment made to you at any time by any representative of the Company.  Your signature below acknowledges your understanding that your employment with Wayfair is at-will, as described above, and that neither this letter, Wayfair practice, or other oral or written policies or statements of Wayfair or its agents shall create an employment contract, guarantee a definite term of employment, or otherwise modify in any way the agreement and understanding that employment with Wayfair is at-will.  No representative of Wayfair, except Wayfair’ President in writing signed by the President and you, has any authority to enter into any agreement contrary to the foregoing.

 

 

If the foregoing offer is acceptable to you, please acknowledge your acceptance by signing below and returning one copy of this letter to me.

 

	
 
    	
Very   truly yours,
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Wayfair,   LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Niraj Shah
    
	
  
    	
 
    	
    Niraj   Shah
    
	
 
    	
 
    	
    Its   President and CEO
    
	
 
    	
 
    
	
ACCEPTED:
    	
 
    
	
 
    	
 
    
	
/s/   Michael Fleisher
    	
 
    	
10.7.13
    
	
Mr.   Michael Fleisher
    	
 
    	
Date
    
	
 
    	
 
    
	
/s/ Michael Fleisher
    	
 
    	
10.21.13
    

 

 

Addendum to Employment Agreement

 

This Addendum to Employment Agreement (this “Addendum”) is entered into this 5 day of May 2014 and is an addendum to the employment letter (the “Agreement”), dated October 2, 2013 between Wayfair LLC (“Wayfair”) and Michael Fleisher (“Employee”).  Terms used by not defined in this Addendum shall have the meaning ascribed to such terms in the Agreement.  In the event of a conflict between this Addendum and the Agreement, the terms of this Addendum shall prevail.  Other than as expressly stated in this Addendum, all provisions of the Agreement shall remain in full force and effect.

 

Whereas, the parties wish to memorialize their understanding as to certain benefits which Wayfair has agreed to provide to Employee;

 

Now therefore, the parties agree as follows:

 

1.              Housing.  During Employee’s employment with Wayfair, Wayfair agrees to pay the reasonable leasing costs of renting an apartment in Boston for Employee’s use, which costs shall be based on mutually agreed location and lease terms.

 

2.              Commuting Expenses. Wayfair shall pay or reimburse the Employee’s reasonable cost of weekly travel between his home and Wayfair’s Boston office and/or Employee’s Boston apartment, which travel will be consistent with Wayfair’s travel and expense policy.

 

3.              Tax Withholding.  All payments made to Employee pursuant to this Addendum may be subject to applicable tax withholding; provided that reimbursement for expenses set forth in Section 1 and Section 2 will be grossed up so that Wayfair will pay Employee such additional amounts necessary to ensure Employee’s receipt of the full amount which he would have been reimbursed but for the withholding or deduction.

 

4.              Section 409A.  The potential severance payable to Employee under the Agreement as a result of Employee’s termination of employment without cause in the 12 months following October 2, 2013 shall be paid as salary continuation payments over the six month period following such termination and only if such termination also results in Employee’s “separation from service” from the Company within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”), which severance is intended to be exempt from Section 409A.  In addition, to the extent that any reimbursements under this Addendum are subject to Section 409A, any such reimbursements shall be paid to Employee as soon as reasonably practicable but in no event later than December 31 of the year following the year in which the expense was incurred.

 

For the avoidance of doubt, these terms shall apply retroactively to Employee’s start date at Wayfair.

 

IN WITNESS WHEREOF, the parties have caused this Addendum to be signed below.

 

	
Wayfair   LLC:  
    	
 
    	
Michael   Fleisher
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:  
    	
 
    	
 
    	
 
    
	
Name:  
    	
 
    	
 
    
	
Title:

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