Checklist of Employment Agreement Issues from the Perspective of the Employee

CHECKLIST OF EMPLOYMENT AGREEMENT ISSUES
FROM THE PERSPECTIVE OF THE EMPLOYEE

1. What is the title of the Employee’s job?
2. What are the Employee’s responsibilities?
3. Can the Employee be demoted? Can Employee’s responsibilities be substantially modified, decreased, or increased?
4. Is Employee guaranteed a seat on the Board of Directors while an employee?
5. Where is the place of employment?
6. Can Employee be relocated unilaterally to another city, or only with the Employee’s consent?
7. Is the Employee allowed to be involved in other activities (e.g., a directorship on other Boards, involvement in community activities)?

1. What is the base salary?
2. When is it payable?
3. Does the salary go up each year by a designated amount or by cost of living increases?
4. Are there designated times for performance reviews?

1. Does Employee get a signing bonus?
2. Is Employee entitled to a guaranteed bonus?
3. Are there bonuses to be tied to objective performance standards?
4. Are target bonus levels or minimum bonuses to be established?

1. Will the Employee participate in all benefit plans of the Company?
2. Which of these plans should be in place for the Employee? Are all of the payments for the benefits the responsibility of the Company?
   (1) Health and medical (including spouse and dependent coverage)
   (2) Disability
   (3) 401(k)
   (4) Pension
   (5) Cafeteria Plan
   (6) Life insurance
   (7) Stock Option/Stock Grant
   (8) Vision
   (9) Dental
   (10) Executive Financial Counseling
3. How much vacation per year is Employee entitled? Does unused vacation continue to accrue for the benefit of Employee and payable on termination of employment?
4. Is there a designated sick pay policy?
5. Any special loans or forgiveness arrangements?
6. Are some of the benefits taxable to the Employee? Should Employee be reimbursed for the tax?