Employment contracts with key board members are important for the continuity of the business and the protection of the company. The following is a comprehensive employment contract covering the employment, move and non-competition of the employee.
As a rule, such a contract of employment is used for a position as vice-president or higher in the organization. The following is an example of an employment contract.
EMPLOYMENT AGREEMENT This EMPLOYMENT AGREEMENT (this “Agreement”) enters into force on _____________, 20XX and has the COMPANY NAME, an ACCEPTANCE, the COMPANY TYPE “Company”) and the EMPLOYEE NAME (“EMPLOYEE”).
Recitals A. The Company wishes to hire the EMPLOYEE as Vice President Sales and Marketing, and the EMPLOYEES would like to continue supporting the Company in this capacity. B. The Company and the EMPLOYEES each wish to establish in writing the terms of their agreements and arrangements regarding the employment of the EMPLOYEE as Vice President Sales and Marketing.
Agreement In light of the reciprocal agreements and obligations contained in this Agreement, the Company agrees to employ EMPLOYEES and the EMPLOYEE accepts this employment subject to the terms and conditions set out in this Agreement:
1. employment; Tasks; Compensation. (a term) The Company employs EMPLOYEES and EMPLOYEES serve the Company for a period beginning on the date of this Agreement and continuing until the termination of this Agreement in accordance with the terms of Section 3 of this Agreement (the “Term of Employment”).
(b) duties. During the period of employment, the EMPLOYEE shall fulfill the duties and responsibilities set out in Annex A. During the period of employment and with the exception of leave and illness absences, in accordance with the Company’s policies, the EMPLOYEE shall devote all of its time during normal business hours to the business affairs of the Company.
(c) Compensation. As compensation for the benefits to be provided by the EMPLOYEE during the period of employment and the other obligations incumbent upon the EMPLOYEE under this Agreement, the EMPLOYEE shall be entitled to the following compensation:
(i) salary. During the period of employment, the Company pays the EMPLOYEE an annual base salary of at least XXX, XXX US Dollars (as specified below, the “base salary”). The base salary is paid by the Company in equal installments according to the Company’s usual payroll practices, but never less frequently than monthly.
(ii) incentive compensation. During the period of employment, the EMPLOYEE participates in any of the bonus and / or profit sharing plans set out in Schedule B (the “Bonus Plans”) under the terms and conditions set out in this Bonus Plan; provided that the EMPLOYEE participates in a bonus plan for any period, the EMPLOYEE is subject to a performance review by the Company in accordance with its applicable practice and must meet all the conditions required to participate in the Bonus Plan in the bonus plan.
(iii) benefits. During the period of employment, the Company grants the EMPLOYEE the benefits listed in Appendix C (the “Benefits”) on the terms and conditions set forth in applicable plan documents, performance documents, employee manuals and / or employee manuals at that time from time to time.
(iv) Motor vehicle allowance. The EMPLOYEE will also receive a monthly allowance of AMOUNT and No / 100 Dollars ($ X00.00) per month, paid to the EMPLOYEE under his regular monthly allowance, subject to income tax, deductions and deductions.
(v) Temporary living expenses and relocation allowance. Before moving the EMPLOYEE from his permanent residence under this contract, the company must conclude a temporary residency agreement for the EMPLOYEE consisting of a one bedroom apartment for a maximum of six (6) months. The Company also pays the EMPLOYEE a Relocation Allowance of AMOUNT and No / 100 Dollars ($ XX, 000.00) (the “Relocation Allowance”) to be paid to the EMPLOYEE, less any applicable income taxes, withholding and deductions. For the purposes of this provision, the Movement Allowance will be paid to the EMPLOYEE upon completion of his move to permanent residence within one (1) hour of NEW OFFICE LOCATION. If the EMPLOYEE is not relocated and kept his permanent residence within one (1) hour of NEW OFFICE LOCATION on or before the date of one year from the date of this agreement, he / she will not be entitled to the relocation allowance.
(d) business expenses. The Company reimburses EMPLOYEE for all reasonable, necessary, and reasonable expenses incurred by the EMPLOYEE in performing its obligations under this Agreement on presentation of any expense statements, receipts and / or vouchers or any other information and documentation that the Company may reasonably require.
2. Confidentiality; Competition clause; Non-Solicitation. (a) Company property. All written materials, records, data and other documents created or owned by the EMPLOYEE during employment of the EMPLOYEE in the Company are and will remain the property of the Company. All information, ideas, concepts, enhancements, discoveries, and inventions that EMPLOYEE has during its employment relationship (whether during business hours and regardless of whether or not the Company’s business premises) are directly related to the Company’s business or derivatives thereof, products or services are the sole and exclusive property of the Company. All memos, notes, records, files, correspondence, drawings, manuals, models, specifications, computer programs, maps and other documents, data or materials of any kind that are and are intended to contain such information, ideas, concepts, enhancements, discoveries and inventions the property of the company. The EMPLOYEE does not own, own, or possess the right to possess or possess computer programs, maps or other documents, data or materials of any kind, such concepts, enhancements, discoveries or inventions embody (collectively, the “Company Property”), to the extent that is consistent with that in Section 2 (c). Upon termination of the EMPLOYEE’s employment for any reason, the EMPLOYEE must return all (i) Company Data, (ii) Company Documents, (iii) Company Data and (iv) Other Company Data to the Company. Case owned by the EMPLOYEE or under the control of the EMPLOYEE.
(b) Confidential Information. (i) secrecy. The EMPLOYEER acknowledges that the Company is highly competitive and that the Company grants the EMPLOYEE access to confidential information (as defined below). EMPLOYEES acknowledges that this confidential information is a valuable, unique and unique asset that gives the Company a competitive advantage over competitors. EMPLOYEES further acknowledges that the protection of such confidential information from unauthorized disclosure and use by the Company is crucial to maintaining its competitive position. EMPLOYEES will at no time disclose or use any confidential information during or after the EMPLOYEE’s employment unless he exercises his employment responsibilities to the Company and, in addition, takes all reasonable precautions to prevent the inadvertent or accidental disclosure of confidential information Information. The EMPLOYEE also undertakes to protect and protect the confidentiality of third party confidential information to the same extent and on the same basis as the Company’s confidential information. As used in this Agreement, the term “Confidential Information” means confidential or proprietary information relating to technology, intellectual property, customers, employees, plans, products, research and development, financial matters, or other aspects of the business or business other party with which the Company agrees to keep this information confidential, whether it exists during the EMPLOYEES ’employment, whether it exists or was developed or created, whether it is tangible or intangible or not marked confidential, and if or how they were stored, collected or stored physically, electronically, graphically, photographically or in writing.
(ii) return. The EMPLOYEE shall, at the request of the Company and in any event (and without such request) return all confidential information to the Company immediately upon termination of the EMPLOYEE’s employment relationship with the Company. The EMPLOYEE shall not keep copies or other physical forms of confidential information after termination for any reason whatsoever for employing the EMPLOYEE with the Company.
(c) Non-competition. (i) prohibition. During the period beginning on the date of this Agreement and continuing until the 1st anniversary of termination for any reason of EMPLOYEE’s employment with the Company, EMPLOYEE may not, directly or indirectly, alone or as a Partner, Founder, Joint Venture, Executive, Director Employees, consultants, agents, independent contractors or shareholders of a company or business, whether now or subsequently, are competing with the Company for one of its business activities in the geographical area. Notwithstanding the foregoing, the employee’s ownership of not more than 1% of the shares of any company with a class of shares that are actively traded on a national or Nasdaq exchange does not violate the prohibitions contained in this paragraph. The EMPLOYEER acknowledges that this Agreement does not prevent the EMPLOYEE from taking up employment or otherwise earning a living after termination of employment with the Company. The EMPLOYEER further acknowledges that if a court of competent jurisdiction declares this non-competition provision to be invalid or unenforceable due to the inadequacy of the time, geographic scope or scope of the Company’s business, that court will interpret and enforce this provision to the fullest extent possible this is appropriate.
(ii) exceptions. It is not assumed that the EMPLOYEE has violated this Section 2 (c) if there is a sale (as defined below) of the Company and the EMPLOYEE becomes an employee of the Purchasing Company. For purposes of this Agreement, “Sale” means the sale of more than fifty percent (50%) of the Company’s equity, a merger of the Company with a company whose equity immediately after the merger affects the Company’s shareholders prior to such merger less than fifty Percent (50%) or the sale of substantially all of the Company’s assets to any person or entity that is not affiliated with the Company or its parent or any of its respective subsidiaries or any other affiliates, shareholders, directors or officers. A recapitalization or change of corporate form is not considered a sale.
(iii) Defined conditions. In this contract: (A) “geographical area” means the geographical areas in which the enterprise carries out business activities from the last day of employment of the EMPLOYEE; (B) “Company activities” collectively are the manufacture, production, design, engineering, import, purchase, offering, providing, marketing, selling, distributing, researching or developing all products or services of the Company Company at any time during the employment period of employment; and (C) “Active Interested Party” means any person or other entity to which the Company has made a proposal or has met with any employee of the Company to provide any such products or services to that person or entity twelve (12) months immediately prior to the last day of employment.
(d) non-advertising. The EMPLOYEER agrees that any attempt on its part to induce others to leave the Company, or any attempt by the EMPLOYEE to disrupt the Company’s relationship with its other employees, independent contractors, suppliers, customers or customers, is detrimental and harmful for the company is. Therefore, the EMPLOYEE agrees that, during the period beginning on the date of this Agreement and continuing until the 1st anniversary of termination for any reason, the EMPLOYEE’s employment with the Company will not encourage or encourage others to place orders or business of any kind To request or accept any type of business activities of customers or active prospects of the Company within the geographical area, other than to promote the business of the Company as an employee of the Company; (ii) knowingly cause or induce a client of the Company to terminate or reduce its relationship with the Company, or otherwise interfere with, interfere with, interfere with, or compromise the Company’s relationship with a Customer or an active party to the Company to damage; (iii) to recruit or recruit persons who, or were, employed by the Company during or after the employment of the EMPLOYEE, or otherwise to seek to relinquish their employment with the Company; (iv) knowingly cause independent contractors, consultants, suppliers or sellers to terminate their relationship with the Company or otherwise intentionally interfere with the Company’s relationship with such independent contractors, consultants, suppliers or suppliers; disturb or damage seller; or (v) create or otherwise create a business organization by name that is confusingly similar to the name of the Company.
(e) No restrictions. EMPLOYEE is not a party to any employment contract, patent disclosure agreement, proprietary informational agreement, non-competitive agreement or other agreement or understanding or limitation of EMPLOYEE’s right to be hired by, or to provide services to, the Company.
3. Termination. (a) Termination. The employment relationship of the EMPLOYEE under this Agreement will terminate: (i) immediately after the death of the EMPLOYEE without further action by the Company; (ii) immediately upon written termination by the Company to the EMPLOYEE for material cause (as defined below); or (iii) thirty (30) days prior written notice of termination by the Company without giving any reason.
(b) For the purpose of this Agreement, the term “cause” means (i) the continuing failure of the Employee to perform its duties and responsibilities in a manner that is satisfactory to the President and the Chief Executive Officer of the Company; (ii) the involvement of the Employee in willful, negligent or grossly negligent fault that materially or otherwise harms the Company or any of its affiliates; (iii) unless otherwise specified in (iv), the employee’s condemnation or commitment to a crime in which a crime has been committed; (iv) the indictment of employees for criminal fraud, embezzlement or personal dishonesty; (v) a material breach of any provision of this Agreement by the EMPLOYEE; or (vi) any drug or alcohol abuse (legal or illegal) by the EMPLOYEE that materially affects the EMPLOYEE’s ability to perform its duties and that is not within 15 days of the written notice to the EMPLOYEE by the Company (except that after the second occurrence). In the case of such abuse, followed by notification and subsequent performance under this section, no period of grace will be granted and the EMPLOYEE may be terminated immediately.
(c) severance pay. In the event that the EMPLOYEE is terminated without cause and (i) such termination in the Company’s opinion is not in connection with the sale, the Company pays the EMPLOYEE a twelve (12) month indemnity or (ii) one Such termination is in accordance with the Company’s judgment in connection with the sale of the Company, the Company pays the EMPLOYEE a six-month severance payment. This severance payment is based on its current regular monthly base salary and does not include the motor vehicle allowance, incentive or commission payments and is paid to the EMPLOYEE through the Company’s regular payroll accounting processes, net of any income taxes, withholding taxes and deductions.
4. Miscellaneous. (a) change. This Agreement may be amended only by a written document executed by each of the parties to this Agreement. (b) Entire Agreement. This Agreement and the other agreements, plans and similar materials referred to herein or in the Exhibits represent the entire understanding of the parties to this Agreement with respect to the subject matter of this Agreement and supersede all prior agreements, understandings, agreements, communications , Discussions, verbal or written representations and warranties between the parties with respect to the subject matter hereof. (c) Messages. All notices, requests, consents and other communications required or permitted under this Agreement must be in writing and deemed to have been duly issued (i) if they have been delivered in person or by fax (ii), within 1 day of receipt a recognized overnight delivery service; or (iii) within 5 days of being sent by registered or registered letter certifying the return, franked, to the parties (and to the persons to whom the copies are to be sent) to the address indicated below ,
If to the company: COMPANY NAME, COMPANY ADDRESS. If to EMPLOYEES: EMPLOYEES, EMPLOYEE ADDRESS
Each party may, by written notice to the other party, change the address or persons to whom communications or copies thereof are directed. (d) assignment. This Agreement is binding upon and for the benefit of the heirs and legal representatives of the EMPLOYEE and the authorized agents and successors of the Company. Neither this Agreement nor the rights or obligations under this Agreement may be assigned by the EMPLOYEE or otherwise mortgaged (other than the will or jurisdiction of the successor) or the Company, except that the Company assigns this Agreement to a successor (whether by merger, purchase or otherwise), if that successor expressly agrees to assume the obligations of the Company under it. (e) Governing Law. This Agreement is governed by and construed in accordance with the laws of the State of STATE NAME in all respects, without reference to conflict of law rules. (f) dispute resolution. Any disputes or controversy arising out of this Agreement shall be settled and settled by arbitration in accordance with the Arbitration Rules of the American Arbitration Association. Such arbitration initiated under this Section 4 (f) shall take place in the City, State. The arbitration is final and can be decided by any competent court. The EMPLOYEE acknowledges that a financial loss to the Company in the event of a breach of the obligations set out in Section 2 is not an appropriate remedy and that it is impossible for the Company to measure the damage in the event of such breach. Therefore, the EMPLOYEE agrees that, in addition to any other rights the Company may have, the EMPLOYEE limits the right to receive payments under this Agreement and may include the Company in this Agreement in the event of a breach or threat of breach of a contract. Notwithstanding anything herein contained, the Company may, in the event of a breach or imminent breach of any contract contained in this Agreement, apply for an injunction to a competent court. (g) Severability clause. Each of the sections and subsections of this Agreement constitutes a separate and separate provision of this Agreement. It is the intention of the parties to this Agreement that the terms of this Agreement be enforced to the fullest extent permitted by applicable laws and public policies. If one or more terms, conditions or limitations of this Agreement are found to be invalid, void or unenforceable by any court of competent jurisdiction, the remaining provisions, agreements and limitations shall remain in full force and effect and the invalid, void or unenforceable provisions shall apply as separable. If one or more of the provisions of this Agreement is considered to be excessively broad in scope, geographical scope, activity or subject matter for whatever reason, they shall be reformed by limiting them to the minimum necessary and reducing them to the extent that they are enforceable this is compatible with applicable law. (h) litigation assistance. The EMPLOYEES cooperates fully with the Company in defending or prosecuting any claim or action currently or in the future brought against the Company or on behalf of the Company events or events beziehen, the during the beschäftigungs of the MITARBEITERS through the enterprise aufgetreten are. (i) Verzichte. EINE VERZICHT AUF EINE VERLETZUNG, EINEN VERSTOSS GEGEN EINE VERZICHT AUF EINE BESTIMMUNG, EINER ANDEREN BESTIMMUNG, EINER ANDEREN VERLETZUNG IN Verzug geraten. (j) Quellensteuer. Die Gesellschaft kann von allen Beträgen, den Rahmen dieser Vereinbarung, alle Bundes-, Landes-, Stadt- oder sonstigen Steuern einbehalten, die gemäß einem Gesetz oder einer Regierungsverordnung oder -verordnung erhoben werden müssen. (k) Überleben bestimmter Verpflichtungen. Die in diesem Vertrag festgelegten Verpflichtungen des Unternehmens und des MITARBEITERS, die durch ihre Bedingungen über die Beendigung der Anstellungsdauer hinausgehen oder diese überleben, will not be impaired or impaired by termination of employment. (l) Voluntary agreement. Each party to this Agreement has read and fully understood the terms and conditions of this Agreement, has had the opportunity to review this Agreement with a lawyer, and has executed this Agreement on the basis of its own judgment and, if desired, legal advice and know-how. agrees voluntarily and without compulsion to all the terms and conditions set out in this agreement. The parties have participated in the negotiations and in the preparation of this Agreement. If there is an ambiguity or a question of intent or interpretation, this Agreement will be construed as being made jointly by the parties and there will be no presumption or burden of proof that will favor or disadvantage a party because of the authorship of any provision of this Agreement. Except as expressly provided otherwise in this Agreement, neither the parties nor their affiliates, consultants and / or solicitors have made any representation or warranty, express or implied, in relation to the subject matter hereof, by law or in equity.
EXECUTION PAGE FOLLOWS
The Company has caused this Agreement to be duly executed and delivered by its duly authorized agent, and the Employee has duly executed and delivered this Agreement on the date stated above. NAME OF THE COMPANY
Name: Title: EMPLOYEES ________ EMPLOYEE NAME
Duties and responsibilities
Performing tasks that are typical of a NAME OF THE POSITION, together with these other duties and responsibilities that may be transferred to the EMPLOYEE from time to time orally or in writing by the Company’s President and Chief Executive Officer.
Incentive Bonus The EMPLOYEE is entitled to an additional remuneration consisting of an incentive bonus. Whether the Incentive Bonus is paid and the amount of the Incentive Bonus that may be paid depends from time to time on the sole discretion and approval of the Board of Directors of the Company. The incentive bonus is based on the company’s Management Incentive Compensation Plan. In the event of a conflict between this Agreement and the Management Incentive Compensation Plan, the Management Incentive Compensation Plan will prevail.
EXHIBITION C Benefits A. The EMPLOYEE receives the following: 1. Health insurance cover for EMPLOYEES and their family, if elected and under all conditions (including eligibility for payment of the relevant amounts to the Company) of the relevant plan. 2. Three weeks paid vacation.
The employment contract is a legal document containing the agreement of both parties on employment. The author is not a lawyer and does not provide legal advice but merely a general overview of an employment contract and a sample for viewing. It is therefore strongly recommended that a lawyer be appointed throughout the negotiation and employment contract process and that both the company and the employee be represented to ensure that all legal rights are protected.
Keith McAslan is a partner of CxO To Go, a Denver, Colorado, national professional services firm that provides part-time, flexible and cost-effective C-level expertise and on-demand best practices to client companies. Keith is in demand as a trusted advisor to owners and business leaders. By leveraging his extensive experience as a successful financial and operational executive, Keith brings a results-oriented leadership style to complex situations.
McAslan’s expertise includes: financial advice; Business consultancy; Part-time, interim & virtual CFO, COO and CEO; Debt and equity financing; Turnaround management; Acquisition and divestiture consulting. Most recently, Keith was instrumental in the successful sale of Western Forge to Ideal Industries.