The Executive Employment Agreement serves as the foundational document governing the relationship between a company and its senior leadership. This contract type is essential when hiring C-suite executives, presidents, and other senior officers, particularly in regulated industries or public companies. The agreement must comply with various U.S. federal regulations including SEC requirements, tax laws, and state-specific employment provisions. It typically covers comprehensive compensation packages, including base salary, bonuses, equity compensation, benefits, and severance terms. The document also addresses crucial aspects such as confidentiality, intellectual property rights, non-competition, and change in control provisions. This agreement is particularly important for risk management and ensuring clear alignment between executive and company interests while providing appropriate protections for both parties.
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1. Parties: Identifies the employer and executive, including full legal names and addresses
2. Background: Outlines the context of the agreement and the intention to employ the executive
3. Definitions: Key terms used throughout the agreement including 'Cause', 'Good Reason', 'Change in Control', etc.
4. Position and Duties: Details the executive's title, role, responsibilities, and reporting structure
5. Term: Duration of the agreement, including start date and renewal provisions
6. Compensation: Base salary, bonus structure, and other financial components
7. Benefits: Healthcare, retirement, and other standard benefits
8. Termination Provisions: Circumstances and processes for ending employment
9. Confidentiality: Protection of company's confidential information
10. Governing Law: Jurisdiction and applicable law
1. Equity Compensation: Stock options or other equity-based compensation provisions, typically used when offering equity as part of compensation package
2. Change in Control Provisions: Rights and obligations upon company ownership change, typically included for public companies or companies likely to be acquired
3. Garden Leave: Paid leave during notice period provisions, used when wanting to keep executive out of market temporarily
4. International Assignment: Terms for overseas work, included for executives with international responsibilities
5. Clawback Provisions: Recovery of compensation in certain circumstances, typically for public companies or when required by regulations
1. Schedule A - Job Description: Detailed outline of responsibilities and expectations
2. Schedule B - Compensation Schedule: Detailed breakdown of all compensation elements
3. Schedule C - Benefits Summary: Comprehensive list of benefits and eligibility criteria
4. Schedule D - Equity Plan Documents: Details of any equity compensation plans
5. Schedule E - Restrictive Covenants: Non-compete, non-solicit, and other restrictions
6. Schedule F - Company Policies: Key policies executive must comply with
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