Sample Business Contracts


Employment Agreement - J Crew and Richard Anders

Employment Forms

  • Employers can customize an employment agreement that states the salary, benefits, working hours and other important provisions for their new or existing employee.
  • Answer simple questions to build a contract with a consultant. Specify the services rendered, when payment is due, as well as IP rights.
  • 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.
  • 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.
  • 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 

April 18, 1999



Richard Anders
5 Brightwood Way
Danville, CA 94506

Dear Rich,

Congratulations and welcome to J. Crew.  Below please find a summary of the
offer.



1.  Position:  President of Retail Stores.

2.  Reporting Relationship:  You will report to Mark Savary, Chief Executive
    Officer.

3.  Start Date:  As agreed, you will start on or about May 3, 1999.

4.  Compensation: Your salary will be $300,000 per year. Your fiscal 1999 bonus
    will be guaranteed to be a minimum of $75,000. Annual target bonus is 25% of
    base salary stretch is 50%.

5.  Stock Options: You have been granted 300 options at $1363.64 per share
    strike price. Your shares become 60,000 options at a strike price of $6.18
    post split.

6.  Protection for Gap Inc. value in unvested stock. Guaranteed floor value of
    J. Crew stock options at One Million Dollars to be paid as regular income in
    the event one of the following occurs:

    a.  J. Crew is sold and Richard Anders is terminated within one year. At the
        time of sale, all options are automatically vested, exercised and sold
        at the offer price. He is guaranteed one million dollars minimum payout
        stock options, net value. In addition, he will be granted 18 months base
        pay as severance ($450,000).

    b.  J.Crew does not successfully complete an Initial Public Offering by
        January 31, 2001. This payment will be offset by future exercise of J.
        Crew options.

    c.  My employment is terminated by J. Crew before January 31, 2001.
        In addition to the One Million Dollars, you will be granted 12 months
        base pay as severance.


7.  Relocation: As agreed, all reasonable expenses will be paid.

8.  Benefits: Cobra reimbursement for 3 to 4 months waiting period.  Vacation of
    3 weeks.

9.  Sign on Bonus: You will receive $300,000 sign on bonus, pro rata payback if
    you resign within two years.


  ________________________                        ______________________________
     Dick Boyce    Date                               Richard Anders      Date

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