The Key Employee Agreement serves as a crucial legal document for organizations hiring individuals in senior or strategic positions. This contract type is particularly important when the employee will have access to sensitive information, significant decision-making authority, or specialized expertise. The agreement typically includes detailed provisions about compensation, equity participation, confidentiality, intellectual property rights, and post-employment restrictions, all while ensuring compliance with U.S. federal and state employment laws. It's designed to protect the employer's interests while providing clarity and security for the key employee.
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1. Parties: Identifies the employer and key employee with full legal names and addresses
2. Background: States the context and purpose of the agreement, including the employee's role and start date
3. Definitions: Defines key terms used throughout the agreement
4. Position and Duties: Details the employee's title, responsibilities, and reporting structure
5. Compensation and Benefits: Outlines salary, bonuses, and benefit entitlements
6. Term and Termination: Specifies duration of employment and termination conditions
7. Confidentiality: Defines confidential information and protection obligations
8. Intellectual Property: Addresses ownership of work product and inventions
1. Non-Compete: Restricts post-employment competition in jurisdictions where permitted by law
2. Non-Solicitation: Prevents solicitation of employees/customers after employment termination
3. Equity Compensation: Details stock options or other equity arrangements if part of compensation package
4. Relocation: Terms for relocation assistance and related obligations
5. Change of Control: Provisions triggered by company ownership changes or acquisition events
1. Schedule A - Compensation Details: Detailed breakdown of salary, bonuses, and commission structure
2. Schedule B - Job Description: Detailed outline of role responsibilities and expectations
3. Schedule C - Benefits Package: Comprehensive list of benefits and eligibility criteria
4. Schedule D - Equity Grant Terms: Details of any stock options or equity compensation
5. Schedule E - Company Policies: Key company policies that form part of the agreement
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