Sample Business Contracts

Employment Agreement - Align Technology Inc. and Stephen Bonelli

Employment Forms

  • Employment Agreement. Employers can customize an employment agreement that states the salary, benefits, working hours and other important provisions for their new or existing employee.
  • Consulting Agreement. Answer simple questions to build a contract with a consultant. Specify the services rendered, when payment is due, as well as IP rights.
  • Commission Agreement. Employers who compensate their sales employees based on commissions can prepare an agreement to reduce misunderstandings by specifying the base salary and how commissions are calculated.
  • Executive Employment Agreement. Companies may offer their business executives a contract that is different from the one provided to their regular employees. Executive employment agreements may be more complex because the compensation structure may include a combination of salary and commissions, provide for bonuses based on sales, stock or other financial targets, and include non-compete, confidentiality and severance provisions.
  • Sales Representative Contract. Independent sales representatives offer companies the potential to increase the sale of products or services without the burden of increasing headcount. Both parties should understand how commissions are calculated, when commissions will be paid, as well as how the representative will treat confidential information from the company and whether the representative may also sell a competing line of products or services.
  • More Employment Agreements

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November 6, 2000

Mr. Stephen Bonelli

Re:      Employment Terms

Dear  Steve:

Align Technology Incorporated is pleased to offer you the position of Chief
Financial Officer and Vice President of Finance, on the following terms.

You will be responsible for the entire finance and accounting functions of the
Company. Your place of work will be at the offices of Align Technology, 851
Martin Ave., Santa Clara, CA 95050.

Your base salary will be $16,666.67 monthly, less payroll deductions and all
required withholdings, which equates to $200,000.00 on an annualized basis. This
salary will be paid bi-weekly in accordance with the Company"s ordinary payroll
practices. You will also be eligible for a discretionary annual bonus, based
upon your achievement of objectives which will be set by Kelsey Wirth and me in
consultation with you. Furthermore, you will be eligible for the standard
Company benefits, including medical insurance, 20 days of paid vacation
annually, and sick leave. You will be eligible to participate in most benefits
on the first day of employment. Details about these benefit plans are available
for your review.

Subject to the approval of the Board of Directors, Align Technology will grant
you an immediately exercisable option to purchase 130,000 shares of Align
Technology common stock which shall be subject to a right of repurchase by the
Company until vested. The option shall vest as to 25% of the shares on the first
anniversary of your employment and as to 1/48th of the shares at the end of each
month thereafter, for full vesting after four (4) years. The exercise price
shall be 100% of the fair market value of the stock on the date of grant.
Subject to the approval by the Board, the Company will loan you funds adequate
to exercise at least 60% of your options. The loan will be repayable in two (2)
years and will bear interest at 7% per year payable annually. The loan will be
secured by stock being purchased.

You may terminate your employment with Align Technology at any time and for any
reason whatsoever; simply by notifying the Company. Likewise, the Company may
terminate your employment at any time and for any reason whatsoever, with or
without cause or advance notice. Although the Company may from time to time
change your position, duties, manager, hours and work location as it deems
necessary, the "at-will" nature of your employment relationship cannot be
changed except in writing signed by you and the President or CEO of the Company
expressly for that purpose.

Although your employment will be "at-will," if the Company terminates your
employment at any time without "Cause" or if you resign for "Good Reason" you
will be credited with one (1) year vesting of your options in addition to
whatever vesting you have earned to date, provided that you sign a full release
of all claims at the time your employment terminates.

For the purposes of additional vesting under this letter, "Cause" shall mean a
Company-initiated termination for any of the following reasons: (a) failure to
perform the material duties of your position; (b) being convicted of a crime;
(c) committing an act of fraud against, or the misappropriation of property
belonging to the Company; (d) intentional misconduct; or (e) a material breach
by you of this Agreement or any confidentiality or proprietary information
agreement between you and the Company. A termination by the Company for any
other reason is a termination without Cause.

Also for the purposes of additional of vesting under this agreement, "Good
Reason" shall mean any reduction in your base salary, a change in reporting
responsibilities, a material change of work responsibilities as a result of a
change in control of the Company, or if you are required to relocate more than
45 miles from the current location of the Company. A resignation by you for any
other reason would be a resignation without Good Reason. You would be required
to give the Company notice and a reasonable opportunity during which to cure
before resigning for Good Reason.

This letter, together with your Proprietary Information and Inventions
Agreement, constitute the complete terms and conditions of your employment, and
these terms supersede any other agreements or promises made to you by anyone,
whether oral or written. As required by law, this offer is subject to
satisfactory proof of your right to work in the United States.

Please sign and date this letter upon your acceptance of our offer.

We look forward to your favorable reply and to a productive and enjoyable work


Zia Chishti, CEO


Stephen J. Bonelli