Employment Term Sheet: Definition, Example
Jump to Section
What is an Employment Term Sheet?
An employment term sheet is a document that outlines the terms and conditions of an individual's employment. Human resources professionals usually develop these documents, but business owners also need to be aware of their existence.
The purpose of an employment term sheet is to protect each party if something goes wrong and to lay out what will happen upon termination or retirement from the company. A properly drafted term sheet can save both parties time and money by avoiding misunderstandings about benefits, vacation days, and severance pay. It will also help prevent costly legal battles if things go south.
Employment Term Sheet Sample
Exhibit 10.28
Local Insight Media, LLC (“LIM”)
Summary Employment Term Sheet
| Employee Name: | James Stirbis (“Employee”). | |
| Position/Title: | Vice President and Chief Accounting Officer, reporting to LIM’s Chief Financial Officer. | |
| Start Date: | On or before February 5, 2007. | |
| Term: | Employment is not subject to any contract and is, therefore, considered to be “at will.” | |
| Annual Base Salary: | $175,000. | |
| Annual Bonus: | Employee’s target bonus will be 60% of his annual base salary. The bonus will be paid at the direction of the Board of Directors upon its determination, in its sole discretion, of the extent to which LIM’s calendar year operating targets have been met. LIM’s operating targets will be determined in the sole discretion of the Board of Directors. It is anticipated that the bonus will be paid within 120 days following calendar year end. | |
| Equity Grant: | Employee will be eligible to participate in the LIM equity compensation plan, as and when adopted, at a level commensurate with Employee’s title. The specific terms of Employee’s participation in the LIM equity participation plan will be determined in the sole discretion of the Board of Directors. | |
| Employee Benefits: | Employee will be entitled to participate in all employee benefit plans and programs applicable to Vice Presidents of LIM, as and when adopted. Such plans and programs shall include health insurance, dental insurance, disability insurance, life insurance and a Defined Contribution (401(k)) Plan, all subject to such contributions by Employee as the Board of Directors may from time to time determine in its sole discretion. | |
| Confidentiality and | ||
| Non-Competition: | Upon the commencement of his employment, Employee will sign an Agreement that establishes his non-disclosure, non-competition and non-solicitation obligations with respect to LIM and its subsidiaries (the “Employee Agreement”). | |
1
| Severance Benefits: | If LIM terminates Employee’s employment without “cause” (as defined below), LIM will (subject to Employee’s execution of a general waiver and release of claims agreement): | |
| (i) continue to pay to Employee his base salary, in accordance with LIM’s regular payroll practices, for a period of 6 months following the date of such termination; | ||
| (ii) continue coverage for Employee under all LIM group health benefit plans in which Employee was entitled to participate immediately prior to the date of termination (to the extent permitted thereunder and subject to any cost-sharing or similar provisions then in effect) for a period of 6 months following the date of termination; and | ||
| (iii) pay to Employee a pro-rata portion of any bonus payable with respect to the year of termination based on LIM’s year-to-date performance through the date of termination (such amount to be determined by the Board of Directors in its discretion and payable at such time as Employee’s annual bonus would otherwise have been payable). | ||
| Employee’s right to such payments and benefits will terminate on the first day that Employee violates any covenant contained in Section 2, 4 or 5 of the Employee Agreement. | ||
| LIM will have “cause” to terminate Employee’s employment upon: | ||
| (i) his commission at any time of any act or omission that results in, or that may reasonably be expected to result in, a conviction, plea of no contest or imposition of unadjudicated probation for any felony or crime involving moral turpitude; | ||
| (ii) his commission at any time of any act of fraud, embezzlement, misappropriation, material misconduct or breach of fiduciary duty against LIM (or any predecessor thereto or successor thereof); | ||
| (iii) a willful failure to substantially perform such duties as are reasonably assigned to him by LIM; or | ||
| (iv) his unlawful use (including being under the influence) or possession of illegal drugs on LIM’s premises or while performing his duties and responsibilities to LIM. | ||
| Section 409A | Notwithstanding anything herein the contrary, in the event that LIM determines that any amounts payable hereunder may be subject to Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations and other interpretive guidance issued with respect thereto (“Section 409A”), LIM may adopt such amendments to the provisions of this term sheet or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that LIM determines are necessary or appropriate to: (i) exempt such payments from Section 409A and/or preserve the intended tax treatment of the benefits provided with respect to such payments or (ii) comply with the requirements of Section 409A and thereby avoid the application of penalty taxes under Section 409A. | |
2
Reference:
Security Exchange Commission - Edgar Database, EX-10.28 9 dex1028.htm SUMMARY EMPLOYMENT TERM SHEET, Viewed January 7, 2022, View Source on SEC.
Who Helps With Employment Term Sheets?
Lawyers with backgrounds working on employment term sheets work with clients to help. Do you need help with an employment term sheet?
Post a project in ContractsCounsel's marketplace to get free bids from lawyers to draft, review, or negotiate employment term sheets. All lawyers are vetted by our team and peer reviewed by our customers for you to explore before hiring.
ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.
Meet some of our Employment Term Sheet Lawyers
Daniel K.
I graduated from Yale University magna cum laude, served as a Fulbright Scholar in Italy and attended UC Berkeley School of Law. In 2023, I was named a "Legal Visionary" by the Los Angeles Times. I have broad experience in corporate transactions and in serving as outside general counsel to clients. I started my legal career in Silicon Valley and Hong Kong working on large equity and debt financings and matters for private wealth clients. After returning home to Los Angeles, I advised startup companies with formations, acquisitions and day-to-day matters such as sales contracts and licensing. More recently, I have focused on data, IT and SaaS contracts for both providers and customers. My clients include NASDAQ-listed companies, a top ranked children’s hospital and local startups.
"Daniel assisted me with a project that had a relatively quick turnaround and provided thoughtful and thorough feedback. Highly recommend!"
Casey B.
I have a Juris Doctorate degree from Mercer Law School, and I am an active member of the Georgia State Bar Association. I have spent the last eight years reviewing, drafting, editing, and negotiating hundreds of contracts on a monthly basis, working in-house for a Fortune 500 company. I am a results-driven, self-motivated, experienced contracts attorney with exceptional drafting, research and communication abilities.
"Working with Casey was a breeze. He was very responsive, professional, and thorough, and made the process easy for me. Super helpful, and would work with him again."
October 10, 2023
Jessica G.
Nevada Attorney with experiences in outside general counsel representation, contract drafting, and civil litigation.
October 12, 2023
James D. F.
Unique Hybrid Background ➲ Deep Legal, Tech & Commercial Experience More by pure chance than design, I arrived late in life to pursue a career in law. My background spans more than 3 decades across Information Technology, entrepreneurship & the legal profession supporting my claim to being a 'Deep Generalist'. What is a 'Deep Generalist'? 'The professionals who develop into really great client advisors are deep generalists.' Quote from Warren Bennis. From 2013 I worked for established boutique property, finance & commercial law firms + an award-winning #newlaw firm of senior lawyers (formerly Nexus Law Group, now merged with Arch.law) before founding my digital law firm Blue Ocean Law Group in 2017. I also worked part-time for 2 years as a freelance online expert across all aspects of Australian Law with JustAnswer (H.Q. in San Francisco) and volunteered at the Caxton Legal Centre to give back to the community. Now I offer pro bono (free) legal assistance at my discretion. My achievements in the law are best reflected in the high number of settlements where civil litigation has been avoided, court judgements (incl. successful appeals) in my clients' favour & [90+] testimonials which can be seen on the blueocean.law [700+] page website which offers tons [585+] of both free & paid innovative legal products & resources. My personal experience as a client on the other side of legal matters affords me a unique perspective and goes some way to explaining my passion for the reinvention of the delivery of legal services. I am an early adopter of technology + gadgets, an avid reader and an animal lover. In January 2023, I joined the IAPP – International Association of Privacy Professionals and became a Certified Information Privacy Professional – United States by gaining the highly valued gold-standard ANSI-Accredited CIPP/US credential. I followed this up in August 2023, by obtaining the Certified in CyberSecurity qualification form ISC(2). Pre-Law Background From 1992 to 2002, I worked for Accenture as an IT Project Manager across APAC (including long-term project assignments in New Zealand & Singapore). I started a small business side hustle in 1997 and in 2003 I left Accenture to become a full-time entrepreneur in the transport industry. I later expanded into the mezzanine property development finance market as well as venturing into small-scale property development.Unique Hybrid Background
October 15, 2023
Kchris G.
My name is Kchris Griffin. I am an licensed attorney practicing Family and Civil Law in Oklahoma. My goal is to help those in need with receiving efficient and effective legal services.
Drew M.
Drew Melville is a Florida and Massachusetts-licensed attorney with fourteen years' experience in real estate transactions, title insurance and land use. His practice includes all aspects of commercial real estate acquisitions, dispositions, financing, joint venture formation, leasing and land use approvals. Mr. Melville is a title agent for Old Republic National Title Insurance Company, First American Title Insurance Company, and Stewart Title Guaranty Company. Mr. Melville's practice is national in scope, and he brings a creative and solution-oriented approach to his clients' diverse array of real estate investment and development activities in all real estate asset classes. These often include urban infill, adaptive reuse, affordable and workforce housing, historic preservation, sustainable building, brownfield or gray-field redevelopment and opportunity zones. Prior to starting his own firm, he was an in house counsel for the real estate development subsidiary of a large, diversified land and agribusiness company. To date, Mr. Melville has closed over $1.2 billion in commercial real estate transactions.
Hao L.
Florida Licensed Attorney & CFA® Charterholder Specializing in Immigration, Taxation, Aviation, Bankruptcy, Estate & Succession, and Business & Civil Litigation
Find the best lawyer for your project
Browse Lawyers Now
Quick, user friendly and one of the better ways I've come across to get ahold of lawyers willing to take new clients.
View Trustpilot ReviewHow It Works
Employment lawyers by top cities
- Austin Employment Lawyers
- Boston Employment Lawyers
- Chicago Employment Lawyers
- Dallas Employment Lawyers
- Denver Employment Lawyers
- Houston Employment Lawyers
- Los Angeles Employment Lawyers
- New York Employment Lawyers
- Phoenix Employment Lawyers
- San Diego Employment Lawyers
- Tampa Employment Lawyers
Employment Term Sheet lawyers by city
- Austin Employment Term Sheet Lawyers
- Boston Employment Term Sheet Lawyers
- Chicago Employment Term Sheet Lawyers
- Dallas Employment Term Sheet Lawyers
- Denver Employment Term Sheet Lawyers
- Houston Employment Term Sheet Lawyers
- Los Angeles Employment Term Sheet Lawyers
- New York Employment Term Sheet Lawyers
- Phoenix Employment Term Sheet Lawyers
- San Diego Employment Term Sheet Lawyers
- Tampa Employment Term Sheet Lawyers
Contracts Counsel was incredibly helpful and easy to use. I submitted a project for a lawyer's help within a day I had received over 6 proposals from qualified lawyers. I submitted a bid that works best for my business and we went forward with the project.
View Trustpilot Review
I never knew how difficult it was to obtain representation or a lawyer, and ContractsCounsel was EXACTLY the type of service I was hoping for when I was in a pinch. Working with their service was efficient, effective and made me feel in control. Thank you so much and should I ever need attorney services down the road, I'll certainly be a repeat customer.
View Trustpilot Review
I got 5 bids within 24h of posting my project. I choose the person who provided the most detailed and relevant intro letter, highlighting their experience relevant to my project. I am very satisfied with the outcome and quality of the two agreements that were produced, they actually far exceed my expectations.
View Trustpilot Review