Executive Employment Agreements
So, why a separate discussion for Executive Employment Agreements? Well, typically the agreements are very similar but….Executives tend to have the addition of stock ownership, benefit plans and defined termination rights. Some questions to think about include how much stock, is it outright stock ownership or in the form of options, how does it vest, what happens after the stock has vested but the Executive has been terminated – is there a buy-back provision; how much notice must be given for termination, do you need key man insurance, etc. In many ways, your Executive Employment Agreement is a “mini” partnership agreement and there should be lots of thought put into it so key resources (including time, money and equity interest) are not wasted.
Next installment, Contracts – Vendors/Supplier Agreements, and remember, ALWAYS CONSULT AN ATTORNEY FIRST.