Document:

Michael Perik Employment Agreement

 
Exhibit 10.1 
 Employment Agreement 
 The Princeton Review, Inc. 
 This Employment Agreement (the
“Agreement”) is between Michael J. Perik (“Perik”) and The Princeton Review, Inc. (“TPR”), and is subject to the terms of the current form of the Executive Compensation Policy Statement, a copy of which is attached as
Exhibit A (the “Policy Statement”) and incorporated herein, except as expressly modified below. In addition, unless otherwise defined in this Agreement, terms used in this Agreement shall have the meanings ascribed to them in The Princeton
Review Glossary, a copy of which is attached as Exhibit B and incorporated herein. This Agreement supersedes any previous employment agreement between the parties. 
  

	1.	Job Description: Perik shall serve as the Chief Executive Officer of TPR, working full time from TPR’s headquarters. Perik shall devote his full business energies to the
business affairs of TPR. Further, he will use his best efforts, skill and abilities to promote TPR’s interests in accordance with guidelines, policies and objectives established by TPR from time to time. 

  

	2.	Base Compensation & Benefits: TPR shall pay Perik a base salary of $1 per annum. Perik shall also receive those medical, dental, life insurance and other benefits
made available generally by TPR to “G-0” level executives of TPR. 

  

	 3.
	 Bonus Compensation: For each calendar year of his employment, Perik shall be entitled to a performance bonus of
up to $875,000 (which amount shall be pro rated for 2007 and increased annually thereafter by 3% per annum), based on his attainment of performance metrics established and revised annually by the Compensation Committee. Each such bonus shall be
paid in a combination of cash and common stock issued pursuant to The Princeton Review 2000 Stock Incentive Plan (as amended and restated on March 24, 2003 and as may hereafter be amended) (the “Plan”), with the cash portion being an
amount estimated by the parties to be sufficient to cover the income taxes and other required withholdings payable by Perik on account of the bonus. Perik shall, however, be solely responsible for the payment of all such taxes. Each bonus earned by
Perik shall be paid to him within  21/2 months following the end of the calendar year in which the bonus was earned. The Company
shall pay cash compensation to Perik in such amounts and in such manner as the Company may determine necessary so that Perik will be deemed an exempt employee for purpose of applicable wage laws. 

  

	4.	Stock Option Award: Effective on July 22, 2007, subject to approval by the Board of Directors, TPR shall, as an inducement grant, grant Perik an option to purchase
1,700,000 shares of TPR’s common stock (the “Option Shares”) at a per-share exercise price equal to the fair market value of a share of TPR common stock on the effective date of the grant. Subject to Perik’s continued employment
with TPR on each vesting date, Perik’s right to exercise such option shall vest as to 6.25% of the Option Shares on October 31, 2007 and on the last day of every third month thereafter. 

  

	5.	Term: This Agreement shall be effective as of July 22, 2007, and the initial term of employment under this Agreement will be for the period commencing on that date and
continuing in effect until July 31, 2011. The initial term of this Agreement shall be extended for successive two (2) year terms at the end of the initial term and every two years thereafter (each, including the initial term, a
“Term”) unless TPR gives contrary written notice to Perik at least six months prior to the completion of a Term that the Agreement shall not be extended (a “Notice Not to Extend”). Notwithstanding the foregoing, Perik shall be
employed at will, and either party may terminate Perik’s employment with or without Cause at any time. Accordingly, Perik’s employment may be terminated during a Term by Perik voluntarily or by TPR with or without Cause in accordance with
the Policy Statement. 

  

	6.	Severance: In the event that Perik’s employment is terminated by TPR without Cause or Perik terminates his employment due to a material and sustained diminution in his
authority, duties, and responsibilities, then in addition to the payments under Section 5.1 of the Policy Statement and in lieu of the payments provided under Sections 5.3 and 5.4 of the Policy Statement (which Sections shall not apply to Perik
in any event), TPR will pay Perik a severance payment of $500,000, or, if such termination by TPR without Cause occurs within a12 months after a Change of Control, such severance payment shall be $1,000,000. Any such severance payment shall be paid
to Perik in a lump sum, less taxes and other applicable withholdings, within sixty (60) days after his termination, provided that Perik shall have first executed and delivered to TPR, and not revoked, a release agreement in a form acceptable to
TPR. 

	7.	Business Expenses. TPR shall reimburse Perik or otherwise provide for or pay all reasonable expenses incurred by him in furtherance of or in connection with TPR’s
business, including cell phone monthly fees and the cost for a high speed (DSL or cable) internet connection at his primary residence, and such other expenses as may be incurred in accordance with TPR’s policies or be approved by the
Compensation Committee of the Board of Directors. 

  

	8.	Right to a Vehicle. TPR shall cover the expenses incurred for Perik to lease a vehicle for his business use up to a total cost of $600 per month, and for the reasonable cost
of parking at TPR’s offices. 

 Agreed to this 22 day of July, 2007. 
  

					
	 THE PRINCETON REVIEW, INC.
	 	
			
	By:	 	 /s/ JOHN KATZMAN
	 	 /s/ MICHAEL J. PERIK

	Name:	 	John Katzman	 	Michael J. Perik
	Title:	 	Chairman of the Board of Directors	 	

 Signature Page to Michael J. Perik Employment AgreementMark Chernis Employment Agreement, Amendment

 
Exhibit 10.2 
 Amendment to Employment Agreement 
 The Princeton Review, Inc. 
 This Amendment to Employment Agreement (the
“Amendment”) is between Mark Chernis (“Chernis”) and The Princeton Review, Inc. (“TPR”), and modifies the Employment Agreement between Chernis and TPR dated April 10, 2002 (the “Agreement.”), effective
July 22, 2007. 
  

	1.	Section 1 of the Agreement is deleted and replaced by the following: 

 1. Job Description: Chernis shall serve as the President of TPR’s Test Preparation Division and Chief Operating Officer of TPR, working full time from TPR’s headquarters. Chernis shall devote his full
business energies to the business affairs of TPR. Further, he shall use his best efforts, skill and abilities to promote TPR’s interests in accordance with guidelines, policies and objectives established by TPR from time to time. 
  

	2.	Special Cash Bonus. On or before December 31, 2007, TPR shall pay Chernis a one-time cash bonus (the “Special Bonus”) of $350,000 (from which shall be deducted
taxes and all other applicable withholdings), in recognition of responsibilities as President of TPR’s Test Preparation Division and his new responsibilities serving as Chief Operating Officer and otherwise. 

  

	3.	Stock Option Award: Effective on July 22, 2007, pursuant to The Princeton Review, Inc. 2000 Stock Incentive Plan (as amended and restated on March 24, 2003 and as
may hereafter be amended) (the “Plan”), TPR is granting Chernis an option (the “Option”) to purchase 250,000 shares of TPR’s common stock (the “Option Shares”) at a per-share exercise price equal to the fair market
value of a share of TPR common stock for the effective date of the grant, determined in accordance with the terms of the Plan, being the closing price on July 20, 2007. Subject to Chernis’s continued employment with TPR on each vesting
date, Chernis’s right to exercise the Option shall vest as to 6.25% of the Option Shares on October 31, 2007 and on the last day of every third month thereafter; provided that, if TPR terminates Chernis’s employment without Cause, the
Agreement is not renewed for an additional term in the absence of termination of Chernis’s employment for Cause, or Chernis terminates his employment for “Good Reason” (as provided in Paragraph 4 below), then the vesting of the
Option, to the extent not vested as of the date of such termination shall accelerate and the Option shall be fully exercisable. Following termination of his employment, Chernis shall have 90 days to exercise the Option to the extent it is then
vested; provided that, if at the expiration of such period of 90 days Chernis shall not have been able to exercise the Option and sell Option Shares within such period of 90 days because to do so would have violated a Company policy, an agreement
between the Company and Chernis or any securities law, then such period shall be extended for an additional 90 days. 

  

	4.	Section 6 of the Agreement is deleted and replaced by the following: 

 6. Severance: In the event that TPR terminates Chernis’s employment without Cause, the Agreement is not renewed for an additional term in the absence of termination of Chernis’s employment for Cause,
or Chernis terminates his employment for “Good Reason” as customarily defined in employment contracts for executives in similar positions at similar companies, and such termination occurs in either calendar year 2007 or calendar year 2008,
then in addition to the payments under Section 5.1 of the Policy Statement and in lieu of the payments provided under Sections 5.3 and 5.4 of the Policy Statement (which Sections shall not apply to Chernis in any event), TPR shall pay Chernis
severance (“Severance Compensation”) in an amount equal to 200% of the sum of (a) his base salary and (b) 75% of the maximum bonus compensation he is eligible to earn with respect to the year in which such termination occurs
(namely, 50% of his Base Salary for that year), but not including the Special Bonus; provided that, if such a termination occurs in either of such years and within twelve (12) months after a Change in Control or Change of Control (the two being
synonymous for purposes of the Agreement, as amended hereby) that occurs on or prior to December 31, 2008, the 75% percentage relating to the bonus amount to be used in calculating Severance Compensation by multiplying the Base Salary and bonus
amount by 200% shall be deemed to be 100%; and provided further that, if such termination occurs after December 31, 2008, the bonus amount in clause (b) above to be used in the calculation of Severance Compensation by multiplying the Base
Salary and bonus amount by 200% shall be the actual amount of the bonus earned by Chernis with respect to the immediately preceding year, if any. Any such payment shall be paid to Chernis in a lump sum, less taxes and other applicable withholdings,
within thirty (30) days of his termination. In addition, TPR shall pay directly, or reimburse Chernis for, the monthly premium for continuation coverage under TPR’s health and dental insurance plans (“Severance Benefits”) for a
period of 18 months after the date termination of his employment is effective, provided that Chernis makes a timely election for such continuation coverage under the Consolidate Omnibus Budget Reconciliation Act of 1985 (“COBRA”). Anything
to the contrary in this Section or the Policy Statement notwithstanding, Chernis shall not be eligible to receive Severance Compensation or Severance Benefits unless he 

 
shall have executed and delivered to TPR, and not revoked, a release agreement in a form acceptable to TPR. For the avoidance of doubt, a Change in Control
or Change of Control for purposes of the Agreement, as amended hereby, shall not include the Series C Convertible Preferred Stock financing transaction being undertaken by TPR. 
  

	5.	Chernis shall retain the use of the particular office he currently uses within the offices of TPR at 2315 Broadway, New York, New York (so long as TPR continues to have its offices
at such address and Chernis is employed by TPR). He may also retain his Board of Director seat at SchoolNet. Chernis shall also be reimbursed for the reasonable attorney’s fees and expenses he incurs in connection with the negotiation,
execution and delivery of this Amendment. 

  

	6.	Except as expressly modified by this Amendment, all terms in the Agreement shall continue in full force and effect. 

 Agreed to this 22nd day of July, 2007. 
  

					
	 THE PRINCETON REVIEW, INC.

			
	By:	 	 /s/ MICHAEL J. PERIK
	 	 /s/ MARK CHERNIS

	Name:	 	Michael Perik	 	Mark Chernis
	Title:	 	Chief Executive Officer

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