Sample Business Contracts

Employment Agreement - Adolph Coors Co. and Leo Kiely

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.
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February 4, 1993

Mr. Leo Kiely

Dear Leo,

It is a pleasure for me to forward this offer of employment and compensation for
your consideration.  I have made a few changes from the previous document we
have reviewed, and I hope I have covered all the issues.  I would be happy to
discuss any of the items with you if you have further questions.

This offer is subject to your election by the board of directors (scheduled for
February 11, 1993).  You will be happy to know that a pre-employment physical
examination is not required.

Your official starting date of employment will be March 1, 1993.


BASE SALARY:           $30,000 per month ($360,000 annual)                   
                       reviewed annually and adjusted January 1              
                       of each year.

OFFICER'S SALARY:      $10,000 lump sum paid July 1 each year.  (Not included
                       in base pay for bonus calculation.)

BONUS:                 50% of base pay as target paid out each year by end of
                       50% of base pay guaranteed in year 1 and 2.

RELOCATION BONUS:      Our relocation policy provides for an option to get 2-3
                       appraisals on your home and pay you immediately the   
                       average and the company would then sell the home, or  
                       you may choose to sell the home yourself if you believe
                       you can do better.  You have indicated that your cost 
                       in the home may be greater than current market by as  
                       much as $150,000.  We will pay you ("grossed up") up  
                       to that amount above the appraised value of your home.

LONG-TERM INCENTIVE:   It is my desire for you to have a major opportunity to
                       earn significant cash/equity reward (in the 7 digit   
                       range annually) for leading the company in the        
                       achievement of its financial and growth goals.  A     
                       program is being developed for senior management which
                       will be put into place next year.  You should be a key
                       architect of that plan.  The plan will be             
                       bi-directional with focus on increasing stockholder   
                       value as well as volume growth.  I anticipate three   
                       year rolling plans with a minimum threshold for any   
                       payout and an upper end opportunity at 400% annual    
                       salary.  The parameters need to be established and
                       then approved by the board.

SEPARATION/            I anticipate a long and mutually rewarding          
SEVERANCE:             relationship.  For the record, your employment is "at 
                       will" with no obligation to either you or the company 
                       to continue this relationship for a set length of     
                       time.  In the unlikely event that something goes awry 
                       for reasons other than cause during the first 18      
                       months of employment, we will pay your base salary    
                       monthly for a period of 30 months and your guaranteed 
                       bonus for that same period of 30 months.  If such an  
                       event happens after 18 months, we will pay you 18     
                       months of your then current salary and 1.5 times your 
                       last bonus payment.  In either case your health       
                       insurance benefits will continue until you commence   
                       employment elsewhere or until the end of the payout   
                       period.  You would also receive a pro rata share of
                       any long-term incentive payout.

STOCK GRANT:           Last year the board of directors approved a restricted
                       stock grant effective January 1, 1993.  We reserved   
                       1,000 shares as a grant to the new president at the   
                       time he joined the company.  The value is taxable to  
                       you.  The shares vest in three years.

OTHER BENEFITS/        See enclosure

Leo, if the meetings we have had together so far are an indication of the type
of relationship that lies ahead, I am thrilled about the prospects.  I look
forward to working with you.

Best regards

/s/ Peter H. Coors
Peter H. Coors
Chief Executive Officer