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Key Employee Agreement

Free key employee agreement template — special terms (retention, non-compete, severance) for an employee critical to the business.

This free key employee agreement covers 1. Role, 2. Compensation, 3. Retention Incentive (if applicable), 4. Confidentiality, 5. Non-Compete and Non-Solicitation with 7 clearly marked [placeholder] fields to fill in — built for small business owners and first-time managers handling an HR moment professionally without a dedicated HR department to lean on. Copy it into your own word processor, fill in the placeholders, and review it — or adapt it — before use. It's part of docstoc's free document template library, alongside business, legal, real estate, finance, and HR templates. Every template here is free to copy with no signup required, and each one carries a plain disclaimer: this is a starting point for informational purposes, not a substitute for advice from a licensed professional in your jurisdiction.

Template — click to edit

Key Employee Agreement

Company: [Company Name] Employee: [Name] Effective Date: [Date]

1. Role

Employee serves as [Title], a role the Company considers critical to its ongoing operations and value.

2. Compensation

Base salary: [Amount], plus [bonus/equity structure specific to this key role].

3. Retention Incentive (if applicable)

[Describe any retention bonus tied to remaining employed through a specific date or event, e.g. an acquisition.]

4. Confidentiality

Employee will keep Company's trade secrets and confidential information private, both during and after employment.

5. Non-Compete and Non-Solicitation

[Describe restrictions on competing or soliciting customers/employees after departure, within enforceability limits of your state.]

6. Severance

If Employee is terminated without cause, Employee will receive [Severance terms — e.g. "6 months' salary continuation"].

7. Key-Person Insurance (Company's option)

Company may, at its own expense, obtain key-person life/disability insurance on Employee; Employee agrees to cooperate with any required medical exam.

8. Term

[Fixed term or at-will, consistent with the Company's general employment practices.]


Company: ______________________ Date: ____________ Employee: ______________________ Date: ____________

*This document is provided for informational and educational purposes only and does not constitute legal advice. Non-compete enforceability varies significantly by state (several now ban them for most employees) — confirm current law before relying on that section, even for a genuinely critical employee.*

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What's included

Who this template is for

Freelancers & solo founders

Handling routine business paperwork without commissioning custom legal drafting for every document.

Small businesses

Standardizing recurring documents — leases, agreements, notices — across a growing operation.

Anyone reviewing before signing

Using a clear starting structure to understand what a document should cover, even if a lawyer finalizes it.

Growing teams

Formalizing hiring and performance processes as a company adds its first employees.

FAQ

Is this key employee agreement template really free?

Yes. Like every template in docstoc's library, this key employee agreement is free to use, with no account or signup needed to view, edit, or download it.

What does this key employee agreement cover?

This hr template includes 1. Role, 2. Compensation, 3. Retention Incentive (if applicable), 4. Confidentiality. Fill in the [bracketed] placeholders, edit any clause online, then download a PDF — the docstoc.io footer stays on every export.

Is this legal advice?

No. Employment documents sit on top of a mix of federal, state, and sometimes city labor law — at-will employment rules, required notices, and what you can and can't put in writing all vary. Have an employment attorney or HR professional confirm this fits your jurisdiction before you use it.

Can I edit the wording?

Yes — edit directly on the page, adjust any section or clause, and re-fill the 7 placeholder fields to match your situation before downloading a PDF. It's a starting structure, not a rigid script.

Where can I find more free templates like this?

Browse more free hr and related document templates in the docstoc library at /document-templates/.

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