TIP #4: Memorialize agreements with key executives.
Many businesses are run by people who trust each other. As a result, businesses take for granted that misunderstandings can occur. Thankfully, misunderstandings can be easily avoided by following Tip#4 out of our top ten list of things every business should do to avoid liabilities and maximize their success.
Both small and large businesses rely upon the skills and knowledge of their key executives. Indeed, for many smaller businesses, the identity of the company depends in large part upon its key executives. By memorializing its agreements with key executives, businesses avoid misunderstandings and ensure key personnel have a long-term commitment to the company. Fundamental provisions which should be found in every employment contract include: Term of Employment; Position, Duties and Responsibilities; Compensation, Benefits, and Expenses; Termination; Protection of Company Trade Secrets and Proprietary Information; Ownership of Intellectual Property; Notices; Merger or Integration Clause; Amendments and Waivers; Severability and Enforcement; Governing Law; Opportunity to Consult Counsel/Understanding of Agreement; and, Remedies. Depending upon the circumstances, additional provisions and/or agreements may be required which cover Inventions and Ideas; Non-Competition; Stock Purchase Options; Other Compensation or Incentives; etc.
Doing this will also make it easier to attract and retain top talent.