The Contracts Breakdown
Over the years I have prepared a great many agreements for my business clients.
One such agreement I have prepared is a “sales agreement” between my client’s business and its customers.
Another is an employment agreement between the business entity and its employees to prevent the removal of trade secrets or to prevent an employee from taking customers from the business or to prevent the employee, while still employed, from establishing a competing business or directing business before termination of employment to a future employer.
For More on Employment Contracts, See Our Legal Article: Restrictive Employment Covenants.
We have prepared and/or reviewed Golden Parachutes. From the employee’s (our client’s) standpoint, the purpose of a Golden Parachute is to protect him/her in the event that the business that he or she is working for is sold or merged with a new company. In the Golden Parachute, we seek to achieve a number of objectives, including but not limited to maintaining the same, similar, or better compensation package; continuing fringe benefits; and ensuring sufficient resources, including but not limited to defining areas of responsibility and including staff to achieve those responsibilities. Also in the event that those objectives cannot be achieved, we include an agreement to buy out, for a specified term and amount, our client’s future compensation and services that are no longer desired. Many of our clients have been sensitive to our proposing much more than they had ever envisioned/anticipated as they wanted to maintain a good and positive relationship with their current employer. When we explain that the cost of our proposed agreement is not paid by the current employer but by the new employer, our clients are much more comfortable and secure in knowing that the future employer is the one who pays the amount of the Golden Parachute.
Over the years, we have prepared many distribution agreements in the sales of commercial and consumer products. We seek to not only understand your need in this agreement but we also attempt to reduce your exposure re liability.
Often we find that our business clients have purchased a business with a short lease and as the lease term is about to end, they contact us to assist in the negotiation of an extended lease. Here these business clients could be in jeopardy because, had they come to us before purchasing their businesses, we could have negotiated not only a much longer lease but a lease with options. If you find yourself in this situation, we can still be beneficial to you regarding re-negotiating an extension on your behalf that is realistic and necessary to meet your needs. Many times brokers will inform prospective tenants that the lease that has been prepared is a ” Standard Lease.” When a client retains us to represent him or her, we give that client options regarding their financial exposure and related obligations, identify needs and issues that may not have been anticipated, and improve terms and terminology so that the costs of the lease and obligations under it are clear, definite, and certain.
If you need some advice with any of these types of contracts, Contact our Columbia Business Law Attorney. Fred can go over the details of specific contracts with you, and assist you in making sure that all issues are covered in the contract and your rights are protected. CONTACT our Columbia, MD office at 410-730-4404 for your FREE Consultation.