Date
Name
Address
City, State Zip
Dear Name,
It is my pleasureto extend to you an offer to join Company Name, LLC as aTitle. As discussed, Company Name, LLC is an early stage start-up company and we are unable to provide current compensation at this time. However, we are confident that we will create a valuable company together and plan on issuing equity to early participants based on your contribution to the firm relative to other participants. Shares will be determined using a Grunt Fund as outlined in the book Slicing Pie, by Mike Moyer.
You will be working as a ______Grunt (as outlined in the book) reporting directly to me.
Start Date:Day, Date
Full-Time Commitment: This offer is for a full time commitment of at least 40 hours per week. During the term of your employment it is expected that I will be you primary employment and our projects and assignments will take priority over other work you might have.
Compensation:You willnot receive any current compensation nor will you accrue any rights to cash payments by Company Name, LLC. You are a member of our start-up team and your contribution will be tracked as outlined in the book. When and if the company issues equity in the company your shares will be commensurate with other participants providing a similar contribution.
We agreed that, if we were able to pay you a market salary, you would earn $XX,000 per year. This translates into a Grunt Hourly Resource Rate (GHRR) of XX according to the calculation below.
Market Rate / - / Current Compensation / X / Two / ÷ / Working Hours in a Year / = / GHRR!$XX,000 / - / $0.00 / X / 2 / ÷ / 2,000 / = / $XX/Hour
Vacation and Personal Days: You may take time off on an as-needed basis with advanced-notice subject to my approval. There is no limit to your time off, but use your discretion to balance time off and productivity. You will not be compensated for time off; you will only be compensated (with pie) for hours worked.
Responsibilities: You will be assigned tasks within your capabilities as an ______including on ______
An outline of initial projects is attached to this letter. You will be required to log hours worked on a daily basis and provide regular updates on work performed.
Confidentiality: In the course of your employment as a contract employee, the Company will further provide you with one or more of the following: access to Trade Secrets, Account Passwords, Payment Tools (like credit cards and PayPal) and other Confidential Information of the Company; contact with Company vendors and suppliers; contact with Company customers; contact with Company employees who possess Trade Secrets, Account Passwords, Payment Tools and Confidential Information; and other support to help develop goodwill for the Company with the its vendors, suppliers, and customers. By signing this letter you agree to keep this information confidential and within your control at all times. All private information will be returned to the Company immediately upon termination.
Work for Hire:Under the United States Copyright Act all work created during your employment at all stages shall be and shall remain the sole and exclusive property of College Peas, LLC.
Your acceptance of this offer and the above terms can be acknowledged by your signature below and forwarding a scanned copy to me at email@address.
Congratulations, NAME, I look forward to working with you and to the contributions you will surely make to Company Name, LLC.
Most sincerely,
NAME
Company
Accepted and agreed:
Name / DateAlternative Paragraphs
If the Grunt is part-time
Part-Time Commitment: This offer is for a part-time commitment of at least 10 hours per week, but not more than 20 hours per week. Additional hours require advanced approval my your supervisor.
If the Grunt is receiving cash compensation
Compensation: In lieu of a market-based salary you will receive an annual salary of $YY,000 per year. You will be paid bi-monthly in the amount of [$YY,000/26] Additionally, as a member of our start-up team, your contribution will be tracked as outlined in the book. When and if the company issues equity in the company your shares will be commensurate with other participants providing a similar contribution.
We agreed that, if we were able to pay you a market salary, you would earn $XX,000 per year. This translates into a Grunt Hourly Resource Rate (GHRR) of XX according to the calculation below.
Market Rate / - / Current Compensation / X / Two / ÷ / Working Hours in a Year / = / GHRR!$XX,000 / - / $YY,000 / X / 2 / ÷ / 2,000 / = / $XX/Hour
If the Grunt is part-time and receiving cash compensation
Compensation: In lieu of a market-based salary you will receive an hourly rate of $ZZ. Your rate times approved hours will be paid bi-monthly. Additionally, as a member of our start-up team, your contribution will be tracked as outlined in the book. When and if the company issues equity in the company your shares will be commensurate with other participants providing a similar contribution.
We agreed that, if we were able to pay you a market salary, you would earn $WW per hour. This translates into a Grunt Hourly Resource Rate (GHRR) of XX according to the calculation below.
Market Hourly Rate / - / Current Compensation/Hour / X / Two / = / GHRR!$XX / - / $YY / X / 2 / = / $XX/Hour
Company, LLC Street, City, State Zip Phone email