Sample Executive Employment Contract

An Executive Employment Agreement is a binding agreement for employment between a company and an executive committee. In exchange for valuable consideration given by the company, the Executive agrees to provide certain services. Unlike a general agreement on compensation, management employment agreements are binding, and the execution of the agreement, the company and the executive are promising to perform under the terms of the agreement.

Executive employment agreements must begin with a preamble "of the article which defines the overall objective of the agreement. Each recital begins with "Whereas." Typically, the first recital should state simply that the "employer of Directors wishes to employ workers in the leadership capacity and desire of employees to be so employed in that capacity." After all other applicable recitals, the agreement should say "Therefore, in consideration of the mutual covenants and conditions set forth below, the parties agree as follows."

The following are the main provisions commonly found in agreements executives:

1. Period. The length of the term of the agreement and the date of termination must be provided. In addition, any agreement regarding the option to renew the agreement or on the side of the executive side of society, or both, must be addressed. Most likely, the contract will be renewed or renewed under the same terms set out in the agreement by mutual agreement of the parties.

2. Compensation and benefits. First, this provision should list the employee's annual salary. Depending on the potential salary adjustments, increases or decreases should be established. The office may be able to negotiate a salary increase automatically if a certain event occurs, such as a merger, sale of the company, or achieve certain objectives. The employee benefits package should also be described, including stock options, health insurance, expense accounts, and holidays.

3. Duties of employee. The position of the employee must be entered again, and its expected functions must be described in detail. If the specific services of the executive may be extended or shortened by mutual agreement, this should be so indicated. Executive should commit to the responsibilities and devote his time to production, capacity, and attention to the business of the employer during the term of the Agreement and comply with all applicable Federal, ' State and local laws.

4. Obligations of the employer. The employer must undertake to pay all compensation, benefits and allowances provided in the agreement. The employer must also agree to provide office space, and if approved, would "help reporters" (a secretary), if applicable.

5. Confidential Information. The employee must agree to keep confidential information confidential and not disclose confidential information to third during the term of his employment and for a period of time after employment, which could be one to three years or more .

6. Non-competition. The company should require the executive to promise not to work, directly or indirectly, as owner, partner, director, officer, employee or consultant for a company that competes with the employer during the period of agreement and for a certain period of time after.

7. Termination. The agreement should specify whether or not the employee can be terminated only for cause or for any other reason. If for cause, the cause must be defined. A possible definition for a reason would be: (a) any breach of material obligations owed to the employer, (b) non-compliance with a directive of the Board of Directors of the Company, or (c) conviction of a crime or an act involving moral turpitude. The severance pay will be due to management.