Fee Agreement – Contingency (Employment - Defense)

1. Parties and Matter

• Law Firm: [FIRM NAME], [ADDRESS].
• Client: [CLIENT NAME], [ADDRESS].
• Matter: Affirmative recovery related to employment dispute with [CLAIMANT NAME], including counterclaims or recovery of attorney fees where permitted (the "Affirmative Matter").

Important: This agreement applies only to affirmative recovery. Defense of the underlying claims is outside this scope and must be handled under a separate agreement.

2. Scope of Representation

The Firm will pursue affirmative recovery, including:
☐ Counterclaims for breach of contract, fiduciary duty, or misappropriation
☐ Claims for reimbursement or indemnity against third parties
☐ Recovery of attorney fees or costs by statute or contract
☐ Other affirmative relief: ________________________

3. Contingency Fee Terms

The Firm's fee is contingent upon recovery by settlement, judgment, or other resolution.

3.1 Fee Percentage Schedule

• Pre-suit resolution: [PERCENT]% of recovery
• After litigation or arbitration commenced: [PERCENT]% of recovery
• After trial or hearing begins: [PERCENT]% of recovery

3.2 Fee Base

Attorney fee is calculated on:
☐ Gross recovery (before costs are deducted)
☐ Net recovery (after costs are deducted, if permitted by law)

If there is no recovery, no attorney fee is owed under this agreement.

3.3 Fee-Shifting Awards

If a court or arbitrator awards attorney fees or costs to Client, the parties agree:
☐ Any attorney fee award is paid to the Firm and credited against the contingency fee owed by Client
☐ Any attorney fee award is paid to the Firm in addition to the contingency fee, subject to applicable law
☐ Any attorney fee award belongs to Client and is treated as part of the recovery

4. Costs and Expenses

The Firm may advance costs including filing fees, service of process, court reporters, deposition transcripts, expert fees, investigators, and e-discovery vendors.

If there is a recovery, costs will be reimbursed from the recovery as set forth in the settlement statement.

If there is no recovery, costs are:
☐ Client responsibility
☐ Waived by Firm

5. Settlement Authority

Client retains final authority to accept or reject any settlement. The Firm will communicate all offers promptly and provide recommendations.

6. Termination and Withdrawal

Client may terminate representation at any time. The Firm may withdraw as permitted by applicable rules and court orders. Upon termination, the Firm may assert a lien or claim for:
1) Costs advanced, and
2) The reasonable value of services (quantum meruit), payable from any recovery, if allowed by law.

7. Fee Dispute Resolution

Fee disputes will be submitted to any applicable bar fee dispute program before litigation, if required.

8. Governing Law and Venue

This Agreement is governed by the laws of [STATE], with venue in [COUNTY], [STATE], unless otherwise required.

9. Signatures