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Key Person Agreement
"I need a Key Person Agreement for our new Chief Technology Officer in our AI software company, with strong IP protection clauses and provisions for stock options, starting March 2025."
1. Parties: Identification of the company and the key employee with their respective details
2. Background: Context of the agreement, including the employee's importance to the business and purpose of the agreement
3. Definitions: Definitions of key terms used throughout the agreement
4. Appointment and Term: Details of the position, effective date, and duration of the agreement
5. Duties and Responsibilities: Detailed description of the key person's role, responsibilities, and performance expectations
6. Compensation and Benefits: Base salary, bonuses, and other benefits including any special perks
7. Performance Reviews: Process and frequency of performance evaluations and their impact on compensation
8. Confidentiality: Obligations regarding confidential information and trade secrets
9. Intellectual Property: Assignment of IP rights and related obligations
10. Non-Competition: Restrictions during and after employment, subject to Indian law limitations
11. Non-Solicitation: Restrictions on soliciting employees, customers, or suppliers
12. Termination: Grounds for termination, notice periods, and consequences
13. Post-Termination Obligations: Continuing obligations after employment ends
14. Governing Law and Jurisdiction: Applicable law and dispute resolution mechanisms
15. General Provisions: Standard boilerplate clauses including notices, amendments, and severability
1. Equity Participation: Include when the key person is offered stock options or other equity incentives
2. International Assignment: Include when the role involves international travel or temporary overseas assignments
3. Change of Control: Include provisions dealing with company ownership changes or M&A scenarios
4. Garden Leave: Include when the company wants the right to require paid leave during notice period
5. Retention Bonus: Include when offering special bonuses for remaining with the company for specific periods
6. Succession Planning: Include when the key person needs to develop and train successors
7. Relocation: Include when the role requires relocation or maintains multiple office locations
8. Crisis Management: Include for roles involving critical decision-making during business crises
1. Schedule 1 - Job Description: Detailed description of the role, responsibilities, and reporting relationships
2. Schedule 2 - Compensation Structure: Detailed breakdown of salary components, bonuses, and benefits
3. Schedule 3 - Performance Metrics: Specific KPIs and performance evaluation criteria
4. Schedule 4 - Confidential Information: List of specific confidential information and trade secrets
5. Schedule 5 - Company Policies: Key company policies applicable to the position
6. Appendix A - Equity Documents: Details of any equity participation, stock options, or share schemes
7. Appendix B - Benefits Summary: Summary of all benefits, insurance, and perks
8. Appendix C - Approved Outside Activities: List of pre-approved external commitments or board positions
Authors
Technology
Financial Services
Manufacturing
Healthcare
Pharmaceuticals
Professional Services
Real Estate
Energy
Telecommunications
Education
Research and Development
Entertainment
Media
Retail
Construction
Automotive
Human Resources
Legal
Executive Leadership
Board of Directors
Research & Development
Product Development
Operations
Finance
Technology
Sales
Marketing
Strategy
Investment
Manufacturing
Quality Control
Chief Executive Officer
Chief Financial Officer
Chief Technology Officer
Chief Operating Officer
Managing Director
Executive Director
Senior Vice President
Head of Research & Development
Chief Scientific Officer
Principal Architect
Head of Product Development
Regional Director
Chief Marketing Officer
Principal Consultant
Lead Developer
Senior Research Scientist
Head of Strategy
Director of Operations
Chief Investment Officer
Head of Sales
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