When it comes to running a successful business, having solid agreements in place is crucial. One type of agreement that is becoming increasingly popular is the executive agreement. This type of agreement is between a company and one of its executives and outlines the terms of the executive`s employment.

While executive agreements can offer many benefits, it is important to ensure that they are properly checked and reviewed before being put into effect. Here are some key checks that should be conducted when drafting an executive agreement:

1. Legal Compliance: The first check that needs to be done is to ensure that the executive agreement is compliant with all relevant laws and regulations. This includes checking that the agreement does not violate any anti-discrimination laws, minimum wage laws, or other employment regulations.

2. Proper Structure: The executive agreement should be properly structured and clearly written to avoid any ambiguity or misunderstandings. It should include all relevant terms and conditions, such as compensation, benefits, and severance.

3. Non-compete Clauses: Non-compete clauses can be included in executive agreements to prevent executives from taking certain actions that could harm the company. However, these clauses must be reasonable and comply with local laws. It is important to check that the non-compete clause does not unfairly restrict the executive`s future job opportunities.

4. Confidentiality: Protecting the company`s confidential information is critical. Executive agreements should contain strong confidentiality provisions to ensure that sensitive information is not disclosed or used improperly. It is important to ensure that the confidentiality clause does not unnecessarily restrict the executive`s ability to work in the industry.

5. Termination Provisions: Finally, the executive agreement should include clear termination provisions that outline the circumstances under which the agreement may be terminated. These provisions should be fair and reasonable to both parties.

In conclusion, executive agreements are important documents that provide clarity and structure to the employment relationship between a company and its executives. However, proper checks and reviews must be conducted to ensure that the executive agreement is legally compliant, properly structured, and includes fair and reasonable terms. By conducting these checks, companies can avoid potential legal issues and ensure that they have a solid foundation for their executive relationships.