McDERMOTT RISE RESOURCE CENTER

McDermott Rise Resource Center

All Legal Forms

Form Title

Non-Exempt Offer Letter

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Non-Exempt Offer Letter

This letter should be used to present an offer of employment to a potential employee who is “non-exempt” under the federal Fair Labor Standards Act (“FLSA”) and applicable state wage and hour law(s). A non-exempt employee is generally paid on an hourly (rather than a salaried) basis and qualifies for overtime pay for every hour worked in excess of a standard work week (typically, 40 hours per week, although some states have different requirements). Overtime pay is calculated as 1.5 times the regular hourly rate of pay. The letter contemplates that the non-exempt employee’s employment is at-will. This means that the employer or employee can terminate the employment relationship at any time and for any (or no) reason. The letter also contemplates in the “Other Terms and Conditions” section that the employee will sign a separate confidentiality agreement. However, as stated in note 10, certain employees may not have access to the company’s confidential information as part of their job—in which case, you can omit that provision, and the employee does not need to sign a separate confidentiality agreement.

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Exempt Offer Letter

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Exempt Offer Letter

This letter should be used to present an offer of employment to a potential executive who will not execute an employment agreement and who is “exempt” employee under the federal Fair Labor Standards Act (“FLSA”) and applicable state law(s). An exempt employee is generally paid on a salaried (rather than an hourly) basis and also satisfies a “duties” test as set forth in the law. To be clear, paying an employee on a salary basis is insufficient for an employee to be deemed exempt from overtime eligibility. It is our recommendation that an employee not be classified as exempt unless the employer is able to clearly identify the relevant exemption for which the employee qualified. The offer letter contemplates that the executive’s employment will be at-will. This means that the employer or employee can terminate the employment relationship at any time and for any (or no) reason. The offer letter also identifies the general terms and conditions of employment and of the employment relationship but, unlike an employment agreement, does not restrict an employer’s ability to terminate the employment without the payment of severance and does not preclude the employer from making changes to the terms and conditions of employment. It should be noted that, often, executive-level employees will expect negotiate for and execute formal employment agreements with their employers to enshrine certain terms and conditions of employment and to provide for severance upon a termination without “cause”. Likewise, employers may seek to have employees execute such agreements and, where permissible, have employees subject to restrictive covenants. You should consult with legal counsel when preparing an offer letter to an exempt executive to ensure that the letter does not inadvertently create a contract that binds the company.

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Comparison Chart for Company Financings

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Comparison Chart for Company Financings

Financing strategies to raise capital for a company can take a variety of forms. Some of the more common forms of financing entered into by early stage companies are the issuance of convertible notes, simple agreements for future equity, shares of Series Seed Preferred Stock, and shares of Series A Preferred Stock. The following chart describes certain key considerations to be taken for each of these four methods. It is important to note that this chart is in no way an exhaustive list of all the financing strategies that are available to a company. Additionally, which financing strategy or strategies would be the best fit for a company is dependent on the specific facts and circumstances of that company as well as strategic business decisions to be made by the company. A company should consult its tax, legal, and other advisors as to which financing strategy would best suit its current needs and purposes.

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Restricted Stock Purchase Agreement

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Restricted Stock Purchase Agreement

A Restricted Stock Purchase Agreement is often used to incentivize founders, whom investors often view as vital to the Company’s development, not to leave the Company. This agreement is drafted such that if the founder voluntarily leaves or is terminated for cause before all of the stock they are receiving under this agreement is vested, then that person forfeits all the unvested portion of their stock.

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Form of Financing DDRL

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Form of Financing DDRL

This template Preliminary Legal Due Diligence Request List provides a sample diligence request list that a company may face for an early stage financing round. Given the early stage the company is in, many of these questions are likely to be answered as non-applicable for the company. However, it is important to note that these questions may resurface in later stage financings.

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Website Terms of Use Template

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Website Terms of Use Template

To be modified and added to website as a standard Terms of Use policy.

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Privacy Notice Checklist

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Privacy Notice Checklist

This checklist contains the key information to be included in a privacy notice for purposes of complying with online privacy requirements in the United States. This checklist does not contain considerations for compliance with (a) U.S. industry-specific requirements for privacy notices, such as those set forth in the Health Insurance Portability and Accountability Act or the Gramm Leach Bliley Act, (b) the California Consumer Privacy Act, which became effective in January 2020, (c) the EU General Data Protection Regulation, or (d) other specific U.S. state, U.S. federal, or international data protection laws.

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