Upon graduation from business school, Zoe has been offered a job as a product manager at a start-up, Appsley Co. She would be Employee #18. But first, she has to negotiate a contract with the CEO, Phil. He would like to pay her $75,000, which is half of what a product manager at a more established company would earn. However, Appsley has yet to earn a profit, and Zoe might also be able to negotiate an equity interest in the company.

Analyze the scenario from the perspective of Zoe and then that of Phil.

• What terms should each party consider?
• What does each side want?
• Draft the contract you think would be most beneficial to both parties.