Sample Business Contracts

Offer Letter - Artisan Components Inc. and Larry Fagg

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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July 31, 1996

Mr. Larry Fagg

Dear Larry:

Artisan Components, Inc. ("Artisan") is pleased to offer you the position of
Vice President of Worldwide Sales reporting directly to me. Your starting base
salary will be $140,000 per year with an opportunity to earn an additional
$100,000 in sales commissions at 100% of your annual fiscal year target.  For
the first six months of your employment, Artisan will advance up to 100% of your
monthly commissions at target (i.e. up to $9,167 per month) at your request.  Up
to half of the total amount advanced to you will be recoverable by Artisan
should you fall short of reaching you annual sales target.

Since we believe you will be making a significant contribution to the success of
Artisan Components, we are offering you an option of 218,863 shares of Artisan
common stock.  The exercise price of your option will be fair market value as
determined by the board of directors on the date the option is granted. This
stock vests ratably over a four-year period from your date of hire, however you
must work for the company for one year before any stock vests to you.

In the event of a "Change of Control" which is defined as the acceptance of
Artisan of any offer from an entity to acquire any shares of voting stock which
would result in such entity owning more than 50% of the voting stock of Artisan
then outstanding that results in the termination of your employment with
Artisan, you will receive a severance payment equal to six months of base salary
and commissions at target.  You will also be allowed to continue to participate
in Artisan's benefit programs for a period of six months after the effective
date of your termination at no cost to you.  In addition, one half of your
remaining unvested stock options will immediately vest from the effective date
of your termination.

We offer a comprehensive benefit program and you will be eligible to participate
in most of it on your date of hire.  These benefits are summarized on the
attached Benefits at a Glance form, and will be explained to you in detail once
you are on board.  We are looking forward to having you join us.

Best regards,

/s/ Mark Templeton
Mark Templeton,

Please acknowledge your acceptance by signing and returning one copy of this

/s/ Larry J. Fagg