Templates Employment & HR Executive Employment Agreement — California

Executive Employment Agreement — California

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EXECUTIVE EMPLOYMENT AGREEMENT

This EXECUTIVE EMPLOYMENT AGREEMENT (this "Agreement") is made and entered into as of [__/__/____] (the "Effective Date") by and between:

COMPANY:
Name: [________________________________] (the "Company")
Entity Type: a [________________________________] [corporation/limited liability company]
State of Organization: [________________________________]
Principal Place of Business: [________________________________]

EXECUTIVE:
Name: [________________________________] (the "Executive")
Address: [________________________________]

Company and Executive are sometimes referred to herein individually as a "Party" and collectively as the "Parties."


RECITALS

A. Company desires to employ Executive in an executive capacity, and Executive desires to accept such employment, on the terms and conditions set forth herein.

B. Executive possesses specialized skills, knowledge, and experience that are of particular value to Company, and Company wishes to secure Executive's services for the benefit of Company and its stockholders.

C. This Agreement is intended to comply with all applicable federal and California employment laws, including but not limited to California Labor Code sections 2870 through 2872 (inventions), California Business and Professions Code section 16600 (restraint of trade), California Labor Code section 2802 (expense reimbursement), California Labor Code section 227.3 (accrued vacation), and Section 409A of the Internal Revenue Code (deferred compensation).

D. The Parties acknowledge the mutual promises and covenants contained herein constitute good and valuable consideration.

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:


TABLE OF CONTENTS

  1. Definitions
  2. Employment, Duties, and Exclusive Services
  3. Term of Employment
  4. Base Compensation
  5. Annual Incentive Bonus
  6. Equity Compensation
  7. Employee Benefits
  8. Vacation and Paid Time Off
  9. Expense Reimbursement
  10. Termination of Employment
  11. Severance Benefits
  12. Change-in-Control Provisions
  13. Section 409A Compliance
  14. Section 280G — Golden Parachute Provisions
  15. Restrictive Covenants
  16. Confidentiality and Trade Secret Protection
  17. Intellectual Property and Inventions Assignment
  18. Return of Company Property
  19. Indemnification and D&O Insurance
  20. Dispute Resolution
  21. General Provisions
  22. Execution

Exhibits:

  • Exhibit A — California Labor Code Section 2870 Notice
  • Exhibit B — Equity Award Summary
  • Exhibit C — Form of Separation Agreement and General Release

1. DEFINITIONS

For purposes of this Agreement, the following terms shall have the meanings set forth below. Any term used but not defined herein shall be interpreted in accordance with customary usage in executive employment contracts under California law.

"Accrued Obligations" means, collectively: (a) all earned but unpaid Base Salary through the Date of Termination; (b) all vested unused vacation or vacation-equivalent PTO payable under California Labor Code section 227.3; (c) all necessary unreimbursed business expenses subject to California Labor Code sections 2802 and 2804; and (d) vested benefits payable under their plan terms.

"Affiliate" means any entity controlling, controlled by, or under common control with Company, where "control" means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of an entity.

"Annual Bonus" has the meaning set forth in Section 5.

"Base Salary" means the annual cash salary set forth in Section 4, as may be adjusted from time to time in accordance with this Agreement.

"Board" means the Board of Directors of Company (or, where applicable, its Compensation Committee or equivalent governing body).

"Cause" means the occurrence of any of the following, as determined in good faith by the Board:

(a) Executive's material breach of this Agreement or any material written Company policy, after written notice specifying the breach and a cure period of not less than thirty (30) days (to the extent curable);

(b) Executive's gross negligence or willful misconduct in the performance of Executive's duties;

(c) Executive's commission of, indictment for, or entry of a plea of guilty or nolo contendere to (i) any felony, or (ii) any misdemeanor involving fraud, dishonesty, or moral turpitude;

(d) Executive's fraud, embezzlement, or misappropriation of Company funds or assets;

(e) Executive's willful refusal to perform lawful duties materially consistent with Executive's position after written notice from the Board and failure to cure within fifteen (15) days; or

(f) Executive's material violation of any fiduciary duty owed to Company.

"Change in Control" means the first to occur of any of the following events:

(a) Any "person" or "group" (within the meaning of Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934) becomes the "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act) of more than fifty percent (50%) of the combined voting power of the then-outstanding voting securities of Company;

(b) The consummation of a merger, consolidation, or similar transaction involving Company and any other entity, other than a transaction in which the holders of Company's voting securities immediately prior to such transaction continue to hold at least fifty percent (50%) of the combined voting power of the surviving entity;

(c) The sale, lease, exchange, or other transfer of all or substantially all of Company's assets to any person or entity other than an Affiliate; or

(d) A complete liquidation or dissolution of Company.

"CIC Protection Period" means the period beginning three (3) months prior to a Change in Control and ending [____] months following a Change in Control.

"COBRA" means federal continuation coverage under 29 U.S.C. § 1161 and related plan provisions, together with applicable state continuation coverage.

"Code" means the Internal Revenue Code of 1986, as amended.

"Confidential Information" has the meaning set forth in Section 16.1.

"Date of Termination" means the effective date of Executive's termination of employment, determined in accordance with Section 10.

"Disability" means Executive's inability to perform the essential functions of Executive's position, with or without reasonable accommodation, for a total of one hundred eighty (180) calendar days (whether or not consecutive) within any twelve (12)-month period, as certified by a physician mutually agreed upon by the Parties (or, if the Parties cannot agree, by a physician selected by the Company's physician and Executive's physician jointly).

"Equity Award" has the meaning set forth in Section 6.

"Equity Plan" means the Company's [________________________________] Equity Incentive Plan, as amended from time to time, or any successor equity compensation plan.

"Good Reason" means the occurrence of any of the following without Executive's prior written consent:

(a) A material diminution in Executive's Base Salary (other than an across-the-board reduction of not more than ten percent (10%) applicable to all similarly situated executives);

(b) A material diminution in Executive's title, authority, duties, or responsibilities, or the assignment of duties materially inconsistent with Executive's position;

(c) A material diminution in the authority, duties, or responsibilities of the person to whom Executive is required to report;

(d) A relocation of Executive's principal place of employment by more than thirty-five (35) miles from Executive's current principal place of employment;

(e) A material breach by Company of any material provision of this Agreement; or

(f) Company's failure to obtain the assumption of this Agreement by any successor entity following a Change in Control;

provided that Executive must (i) provide written notice to the Board specifying the event or condition constituting Good Reason within sixty (60) days after Executive first becomes aware of such event or condition, (ii) allow Company thirty (30) days to cure, and (iii) terminate employment within thirty (30) days following the end of the cure period if the condition is not remedied.

"Pro-Rata Bonus" means the Annual Bonus for the fiscal year in which the Date of Termination occurs, calculated based on actual performance for the full fiscal year and prorated based on the number of days Executive was employed during such fiscal year.

"Release" means the Separation Agreement and General Release substantially in the form attached as Exhibit C.

"Separation from Service" means a separation from service within the meaning of Section 409A, as determined by tax counsel.

"Severance Benefits" has the meaning set forth in Section 11.

"Specified Employee" means a specified employee within the meaning of Section 409A, as determined by tax counsel.

"Target Bonus" means [____]% of Executive's then-current Base Salary.


2. EMPLOYMENT, DUTIES, AND EXCLUSIVE SERVICES

2.1 Position and Title. Company hereby employs Executive, and Executive hereby accepts employment, as [________________________________] (the "Position"). Executive shall report directly to [________________________________].

2.2 Duties and Responsibilities. Executive shall have such authority, duties, and responsibilities as are commensurate with the Position and as may be reasonably assigned by the Board (or the officer to whom Executive reports) from time to time, consistent with Executive's Position. Executive shall perform Executive's duties faithfully, diligently, and in compliance with applicable law and Company policies.

2.3 Full-Time Efforts and Exclusivity. Executive shall devote substantially all of Executive's business time, attention, skill, and best efforts to the performance of Executive's duties hereunder. Executive shall not, without the prior written consent of the Board, engage in any other business activity (whether or not such business activity is pursued for gain, profit, or other pecuniary advantage), except that Executive may:

(a) Serve on the boards of directors of up to [____] outside companies (subject to prior Board approval), provided such service does not create a conflict of interest or materially interfere with Executive's duties;

(b) Serve on civic, charitable, educational, religious, or professional boards or committees, provided such service does not materially interfere with Executive's duties;

(c) Manage passive personal investments, provided such investments do not create a conflict of interest with Company; and

(d) Fulfill speaking engagements, teaching, or writing activities, provided such activities do not materially interfere with Executive's duties or reveal Confidential Information.

2.4 Place of Performance. Executive's principal place of employment shall be Company's offices located at [________________________________], subject to reasonable travel requirements in connection with Company business.

2.5 Compliance with Laws and Policies. Executive shall comply with all applicable federal, state, and local laws, regulations, and Company policies and procedures, as amended from time to time, provided such policies are not inconsistent with the express terms of this Agreement. In the event of a conflict between this Agreement and any Company policy, this Agreement shall control.

2.6 Classification. Company shall classify Executive under the applicable California wage order and federal law based on actual salary and duties. Check one only after counsel confirms the classification: ☐ exempt executive/administrative/professional employee; ☐ nonexempt employee. A title alone does not determine overtime status.


3. TERM OF EMPLOYMENT

3.1 At-Will Employment. Executive's employment with Company shall commence on the Effective Date and shall continue on an "at-will" basis until terminated by either Party in accordance with Section 10 of this Agreement. Nothing in this Agreement shall be construed to alter the at-will nature of Executive's employment, and either Party may terminate the employment relationship at any time, with or without Cause, and with or without advance notice, subject to the provisions of Sections 10 through 12 regarding termination procedures and Severance Benefits.

3.2 Agreement Term. This Agreement remains effective until employment ends and all surviving obligations are performed. It does not create a guaranteed employment term.


4. BASE COMPENSATION

4.1 Base Salary. Company shall pay Executive an initial annualized Base Salary of $[________________________________], payable in accordance with Company's standard payroll practices (currently [☐ semi-monthly / ☐ bi-weekly]), less all applicable federal, state, and local tax withholdings and authorized deductions.

4.2 Salary Review. The Board shall review Executive's Base Salary annually, and may increase (but not decrease, except as permitted in the definition of "Good Reason") Executive's Base Salary in its sole discretion based on Executive's performance, Company performance, market conditions, and other relevant factors. Any increase in Base Salary shall not reduce or limit any other obligation of Company under this Agreement. After any increase, "Base Salary" shall refer to the increased amount.

4.3 Wage Payment Compliance. Company shall pay compensation under its lawful regular payroll schedule. Final wages upon termination shall be paid under California Labor Code sections 201 through 203.


5. ANNUAL INCENTIVE BONUS

5.1 Bonus Eligibility. For each complete fiscal year during the Employment Term, Executive shall be eligible to receive an annual cash performance bonus (the "Annual Bonus").

5.2 Target Bonus. Executive's target Annual Bonus shall be [____]% of Executive's Base Salary for such fiscal year (the "Target Bonus"), with a maximum Annual Bonus of [____]% of Base Salary (the "Maximum Bonus").

5.3 Performance Criteria. The Annual Bonus shall be determined by the Board based on:

☐ Formulaic performance metrics: [________________________________]

☐ Discretionary assessment by the Board

☐ Combination of formulaic metrics ([____]%) and Board discretion ([____]%)

5.4 Bonus Payment Timing. Any earned Annual Bonus shall be paid on [DATE OR OBJECTIVE SCHEDULE]. State clearly whether continued employment through the payment date is an earning condition, subject to Section 11. Tax counsel shall review the timing under Section 409A.

5.5 Signing Bonus (If Applicable).

☐ Check if applicable: Company shall pay Executive a one-time signing bonus of $[________________________________] within [____] days following the Effective Date, subject to a repayment obligation if Executive voluntarily resigns (other than for Good Reason) or is terminated for Cause within [____] months of the Effective Date.

5.6 Clawback Provisions. Incentive compensation is subject to a lawful written Company recoupment policy. If Company is a listed issuer, the policy must address recovery of erroneously awarded compensation as required by 15 U.S.C. § 78j-4 and applicable listing standards. No repayment or forfeiture may operate as a restraint on lawful competition that is void under California Business and Professions Code sections 16600 through 16600.5.


6. EQUITY COMPENSATION

6.1 Initial Equity Award. Subject to approval by the Board (or its Compensation Committee), as soon as practicable following the Effective Date, Executive shall be granted the following equity award(s) under the Equity Plan (the "Initial Equity Award"):

Select Award Type Number/Shares Vesting Exercise/Settlement Terms
Incentive stock option [____] [____] [____]
Nonqualified stock option [____] [____] [____]
Restricted stock unit [____] [____] [____]
Restricted stock [____] [____] [____]
Performance award [____] [____] [____]

The Equity Plan and award agreement must state all tax, exercise-price, settlement, expiration, and election rules. Executive should obtain individual tax advice; this Agreement does not prescribe tax elections.

6.2 Vesting Schedules.

(a) Time-Based Vesting. Unless otherwise specified in the applicable award agreement, time-based equity awards shall vest as follows: [____]% of the award shall vest on the [____] anniversary of the vesting commencement date, and [____/____] of the remaining shares shall vest [☐ monthly / ☐ quarterly] thereafter, subject to Executive's continued employment through each vesting date.

(b) Performance-Based Vesting. Performance-based equity awards shall vest based upon the achievement of performance goals established by the Board, as set forth in the applicable award agreement.

(c) Acceleration on Termination. Acceleration of vesting upon certain termination events is governed by Sections 11 and 12 of this Agreement.

6.3 Subsequent Equity Awards. Executive shall be eligible to receive additional equity awards under the Equity Plan as determined by the Board in its sole discretion, taking into consideration Executive's performance, Company performance, competitive market practices, and total compensation.

6.4 Equity Plan Governs. All equity awards shall be subject to and governed by the terms and conditions of the Equity Plan and the individual award agreements. In the event of a conflict between this Agreement and the Equity Plan or any award agreement regarding the terms of an equity award (other than acceleration provisions in Sections 11 and 12, which shall control), the Equity Plan and award agreement shall govern.


7. EMPLOYEE BENEFITS

7.1 Health and Welfare Benefits. During the Employment Term, Executive shall be eligible to participate in all employee benefit plans and programs generally made available to similarly situated senior executives of Company, subject to the terms, conditions, and eligibility requirements of such plans, including without limitation:

(a) Medical, dental, and vision insurance;

(b) Life insurance and accidental death and dismemberment (AD&D) insurance;

(c) Short-term and long-term disability insurance;

(d) Health savings accounts (HSA) or flexible spending accounts (FSA), as applicable; and

(e) Employee assistance program (EAP).

7.2 Supplemental Executive Benefits (If Applicable).

☐ Check if applicable: In addition to the standard benefit plans, Executive shall be eligible for the following supplemental benefits:

☐ Supplemental long-term disability insurance (covering [____]% of Base Salary)

☐ Supplemental life insurance ($[________________________________] face amount)

☐ Executive health/wellness program

☐ Annual executive physical examination

☐ Other: [________________________________]

7.3 Retirement Benefits. Executive shall be eligible to participate in Company's 401(k) retirement savings plan (or equivalent plan) on the same basis as other eligible employees, subject to plan terms and applicable contribution limits under the Code. Company matching contributions, if any, shall be made in accordance with the plan document.

☐ Check if applicable: Executive shall also be eligible to participate in Company's Non-Qualified Deferred Compensation Plan, subject to the terms of such plan and Section 409A of the Code.

7.4 No Guarantee of Plans. Nothing in this Agreement shall require Company to establish, maintain, or continue any particular benefit plan or program. Company reserves the right to amend, modify, or terminate any benefit plan in its sole discretion, provided that any such change applies generally to similarly situated senior executives.


8. VACATION AND PAID TIME OFF

8.1 PTO Accrual. Executive shall accrue paid time off ("PTO") at the rate of [____] days per calendar year (prorated for partial years), or in accordance with Company's PTO policy as applied to similarly situated senior executives, whichever is more favorable to Executive.

8.2 California Vested Vacation Rights. If Company provides vacation or a vacation-equivalent PTO bank, vested unused time is payable under California Labor Code section 227.3. Accordingly:

(a) Company shall not forfeit vested unused vacation or vacation-equivalent PTO when employment ends;

(b) Company may impose a prospective accrual cap stated in its written policy: [CAP];

(c) Upon termination of employment for any reason, all accrued and unused PTO shall be paid out to Executive at Executive's final rate of pay on the Date of Termination; and

(d) PTO payout shall be included in final wages as required by California Labor Code sections 201 through 203.

8.3 Holidays and Sick Leave. Executive shall receive Company-observed holidays and paid sick leave under Company policy and California Labor Code section 246. An overtime-exempt executive is deemed to work forty hours per week for statutory accrual unless the normal workweek is shorter. The policy must provide at least the statutory accrual or frontload amounts and may not limit annual use below forty hours or five days.


9. EXPENSE REIMBURSEMENT

9.1 Business Expenses. Company shall reimburse Executive for necessary expenditures or losses incurred in direct consequence of performing duties, as California Labor Code section 2802 requires. No policy or agreement waives those rights under section 2804. Reimbursable expenses may include, as applicable:

(a) Business travel (airfare, lodging, meals, ground transportation);

(b) Business entertainment and client development;

(c) Professional dues, memberships, and continuing education;

(d) Mobile phone, internet, and home office expenses attributable to Company business; and

(e) Such other expenses as are approved by the Board or Company policy.

9.2 Expense Submission and Reimbursement Timeline. Executive shall submit itemized expense reports with supporting documentation within sixty (60) days of incurrence. Company shall reimburse approved expenses within thirty (30) days of receipt. A missed internal submission deadline does not waive a nonwaivable right under Labor Code sections 2802 and 2804.

9.3 Relocation Expenses (If Applicable).

☐ Check if applicable: Company shall reimburse Executive for reasonable relocation expenses up to $[________________________________] in connection with Executive's relocation to [________________________________], subject to Company's relocation policy and a payment schedule reviewed for Section 409A compliance.


10. TERMINATION OF EMPLOYMENT

10.1 Termination Events. Executive's employment may be terminated during the Employment Term as follows:

(a) By Company for Cause. Company may terminate Executive's employment for Cause at any time, effective upon delivery of written notice to Executive specifying in reasonable detail the act(s) or omission(s) constituting Cause (subject to applicable cure periods set forth in the definition of "Cause").

(b) By Company Without Cause. Company may terminate Executive's employment without Cause at any time upon [____] days' prior written notice (or salary in lieu of such notice, at Company's election).

(c) By Executive for Good Reason. Executive may terminate employment for Good Reason in accordance with the notice and cure procedures specified in the definition of "Good Reason."

(d) By Executive Without Good Reason (Voluntary Resignation). Executive may resign without Good Reason upon [____] days' prior written notice to Company. Company may, in its sole discretion, accelerate the effective date of such resignation and pay Executive's Base Salary through the original notice period.

(e) Death. Executive's employment shall terminate automatically upon Executive's death.

(f) Disability. Company may terminate Executive's employment by reason of Disability upon written notice to Executive, subject to applicable disability leave and accommodation requirements under California and federal law (including FEHA and the ADA).

10.2 Board Removal. If Executive serves as a member of the Board or any board of an Affiliate, Executive agrees to resign from all such boards upon the Date of Termination (or promptly upon request by Company), unless otherwise agreed in writing.

10.3 Resignation from All Positions. Upon termination of employment for any reason, unless otherwise requested by the Board, Executive shall be deemed to have resigned from all positions held with Company and its Affiliates, including any officer, director, committee, or fiduciary positions.

10.4 Final Pay — California Requirements. Regardless of the reason for termination:

(a) If Company terminates Executive's employment (with or without Cause), all earned and unpaid wages and vested vacation or vacation-equivalent PTO shall be paid immediately under California Labor Code section 201;

(b) If Executive voluntarily resigns with at least seventy-two (72) hours' notice, final wages shall be paid on the last day of employment. If Executive provides less than seventy-two (72) hours' notice, final wages shall be paid within seventy-two (72) hours, as required by California Labor Code section 202; and

(c) Approved unreimbursed business expenses shall be processed promptly under Section 9, and Company shall provide every separation notice required by applicable law. A severance payment does not replace earned wages or vested vacation.

A willful failure to timely pay final wages may trigger the waiting-time penalty in Labor Code section 203 for up to thirty days.


11. SEVERANCE BENEFITS

11.1 Severance Upon Qualifying Termination (Outside CIC Protection Period). If Executive's employment is terminated (i) by Company without Cause (other than by reason of death or Disability) or (ii) by Executive for Good Reason, in either case outside the CIC Protection Period, and subject to Executive's satisfaction of the conditions set forth in Section 11.4, Executive shall be entitled to the following Severance Benefits in addition to the Accrued Obligations:

(a) Cash Severance. An amount equal to [____] times Executive's Base Salary (at the rate in effect immediately prior to the Date of Termination or, if higher, immediately prior to any reduction constituting Good Reason), payable in substantially equal installments over the [____]-month period following the Date of Termination in accordance with Company's standard payroll schedule, commencing on the first payroll date following the Release Effective Date (with the first payment including a catch-up for any installments that would have been paid during the Release consideration period);

(b) Pro-Rata Bonus. A Pro-Rata Bonus for the fiscal year in which the Date of Termination occurs, payable on [OBJECTIVE DATE] as reviewed for Section 409A compliance;

(c) COBRA Continuation. Subject to Executive's timely election of COBRA continuation coverage, Company shall pay or reimburse Executive's COBRA premiums for Executive and Executive's eligible dependents for a period of [____] months following the Date of Termination (or until Executive becomes eligible for group health coverage through another employer, whichever occurs first). Thereafter, Executive may continue COBRA coverage at Executive's own expense for the remainder of the applicable COBRA period; and

(d) Outplacement Services. Company shall provide Executive with executive-level outplacement services through a provider selected by Company for a period of up to [____] months, at a cost not to exceed $[________________________________].

11.2 Equity Treatment Upon Qualifying Termination (Outside CIC Protection Period). Upon a Qualifying Termination outside the CIC Protection Period:

(a) Stock Options (ISO and NSO). All unvested stock options shall [☐ be forfeited / ☐ accelerate and vest as to [____] additional months of vesting]. Vested stock options shall remain exercisable for [____] months following the Date of Termination (but not beyond the original expiration date);

(b) RSUs. All unvested RSUs shall [☐ be forfeited / ☐ accelerate and vest as to [____] additional months of vesting], with settlement occurring within [____] days of the applicable vesting date; and

(c) Performance Awards. All unvested performance-based awards shall [☐ be forfeited / ☐ vest pro-rata based on actual performance through the Date of Termination / ☐ vest at target level pro-rata for the elapsed portion of the performance period].

11.3 Termination for Cause or Voluntary Resignation Without Good Reason. If Executive's employment is terminated by Company for Cause or by Executive without Good Reason, Executive shall receive only the Accrued Obligations. All unvested equity awards shall be immediately forfeited as of the Date of Termination, and vested stock options shall be exercisable for the period specified in the applicable award agreement.

11.4 Conditions to Severance Benefits. Executive's receipt of Severance Benefits under this Section 11 (other than Accrued Obligations) is conditioned upon:

(a) Executive's timely execution and non-revocation of the Release within a period stated in the Release and not exceeding sixty days after termination. The Release must provide at least five business days to consult an attorney under California Government Code section 12964.5(b)(4), subject to its knowing-and-voluntary early-signature rule. If Executive is at least age forty and ADEA claims are released, the Release must also satisfy 29 U.S.C. § 626(f), including the applicable twenty-one- or forty-five-day consideration period and seven-day revocation period;

(b) Executive's continued compliance with the obligations set forth in Sections 15, 16, 17, and 18 of this Agreement;

(c) Executive's return of all Company property in accordance with Section 18; and

(d) Executive's compliance with the cooperation obligations described in Section 11.5.

11.5 Cooperation. Following any termination of employment, Executive shall reasonably cooperate with Company in connection with any pending or future litigation, investigation, regulatory proceeding, or other matter arising out of events or circumstances occurring during Executive's employment. Company shall reimburse Executive for reasonable out-of-pocket expenses incurred in connection with such cooperation and shall schedule such cooperation so as not to unreasonably interfere with Executive's other professional commitments.

11.6 Death or Disability. In the event of Executive's death or termination by reason of Disability:

(a) Executive (or Executive's estate or legal representative) shall receive the Accrued Obligations;

(b) Executive (or Executive's estate) shall receive a Pro-Rata Bonus based on [☐ actual performance / ☐ Target Bonus];

(c) All unvested time-based equity awards shall [☐ immediately accelerate and vest in full / ☐ accelerate as to [____] additional months of vesting / ☐ be forfeited]; and

(d) Company shall provide COBRA premium payments for Executive's eligible dependents for [____] months following the date of death or Disability termination.

11.7 No Mitigation; No Offset. Executive shall not be required to mitigate the amount of any payment or benefit provided under this Section 11 by seeking other employment or otherwise, and the amount of Severance Benefits shall not be reduced by any compensation Executive earns from subsequent employment.


12. CHANGE-IN-CONTROL PROVISIONS

12.1 CIC Severance — Double Trigger. If, during the CIC Protection Period, Executive's employment is terminated (i) by Company (or any successor) without Cause or (ii) by Executive for Good Reason (a "CIC Qualifying Termination"), and subject to Executive's satisfaction of the conditions set forth in Section 11.4, Executive shall be entitled to the following in lieu of (and not in addition to) the Severance Benefits described in Section 11.1:

(a) Lump-Sum Cash Severance. A cash payment equal to [____] times the sum of (i) Executive's Base Salary (at the highest rate in effect at any time during the twelve (12) months preceding the Date of Termination) plus (ii) Executive's Target Bonus (the "CIC Cash Severance"), payable in a single lump sum within [____] days following the Release Effective Date (but no earlier than the first business day following the expiration of the Release revocation period);

(b) Pro-Rata Bonus. A Pro-Rata Bonus for the fiscal year in which the Date of Termination occurs, based on the greater of (i) Target Bonus or (ii) actual performance, payable on [OBJECTIVE DATE] as reviewed for Section 409A compliance;

(c) Full Equity Acceleration. All unvested equity awards (including stock options, RSUs, restricted stock, and the target number of shares subject to performance-based awards) shall immediately vest in full and, to the extent applicable, become exercisable as of the Date of Termination. Stock options shall remain exercisable for [____] months following the Date of Termination (but not beyond the original expiration date);

(d) COBRA Continuation. Company shall pay or reimburse Executive's COBRA premiums for Executive and Executive's eligible dependents for a period of [____] months following the Date of Termination (or until Executive becomes eligible for group health coverage through another employer, whichever occurs first); and

(e) Outplacement Services. Executive-level outplacement services for up to [____] months.

12.2 Treatment of Equity Awards Upon Change in Control (No Termination). In the event of a Change in Control in which Executive's employment is not terminated:

(a) If the successor entity assumes or substitutes Executive's equity awards with economically equivalent awards, such assumed or substituted awards shall continue to vest in accordance with their original terms, subject to the acceleration provisions of Section 12.1(c) upon any subsequent CIC Qualifying Termination; or

(b) If the successor entity does not assume or substitute Executive's equity awards, all unvested equity awards shall immediately vest in full and, to the extent applicable, become exercisable immediately prior to the consummation of the Change in Control.


13. SECTION 409A COMPLIANCE

13.1 General Intent. Payments are intended to comply with or be exempt from 26 U.S.C. § 409A. The compensation committee and tax counsel shall specify each payment date and form before execution; this Agreement does not permit either Party to accelerate or defer payment except as lawfully documented.

13.2 Separation Payments. A payment stated to be triggered by a separation from service shall be made only after the separation standard applicable under Section 409A is satisfied.

13.3 Specified-Employee Delay. If Executive is a specified employee of a publicly traded corporation and nonqualified deferred compensation is payable because of separation from service, payment shall be delayed only to the extent and for the period required by 26 U.S.C. § 409A(a)(2)(B)(i). No Party guarantees a particular tax result.


14. SECTION 280G — GOLDEN PARACHUTE PROVISIONS

14.1 Parachute Payment Limitation. In the event that any payment or benefit received or to be received by Executive pursuant to this Agreement or any other plan, arrangement, or agreement (collectively, "Total Payments") would constitute a "parachute payment" within the meaning of Section 280G of the Code and would, but for this Section 14, be subject to the excise tax imposed by Section 4999 of the Code (the "Excise Tax"), then the Total Payments shall be either:

(a) Delivered in full; or

(b) Reduced to the minimum extent necessary so that no portion of the Total Payments would be subject to the Excise Tax;

whichever of (a) or (b) results in Executive's receipt, on an after-tax basis (taking into account all applicable federal, state, and local income taxes, employment taxes, and the Excise Tax), of the greatest amount of Total Payments.

14.2 Determination of Reduction. If a reduction of Total Payments is required under Section 14.1(b), the reduction shall be applied in the following order, unless Executive designates a different order that is consistent with Section 409A:

(a) First, by reducing cash severance payments;

(b) Second, by reducing any accelerated vesting of equity awards (in reverse order of vesting dates);

(c) Third, by reducing any other benefits; and

(d) Fourth, by reducing any other payments.

14.3 Calculation. All calculations required under this Section 14 shall be performed by a nationally recognized accounting firm or independent compensation consultant selected by Company and reasonably acceptable to Executive (the "280G Advisor"). The 280G Advisor shall provide detailed supporting calculations to both Company and Executive. Company shall bear all costs of the 280G Advisor.

14.4 Adjustment. If, notwithstanding the initial determination of the 280G Advisor, it is later determined that Executive received Total Payments in excess of the amount permitted under Section 14.1, Executive shall promptly return any excess to Company. If it is determined that Executive received less than the amount to which Executive was entitled, Company shall promptly pay any shortfall to Executive.


15. RESTRICTIVE COVENANTS

15.1 No Noncompetition Covenant. This Agreement does not prohibit Executive from engaging in a lawful profession, trade, or business after employment. California Business and Professions Code section 16600 broadly voids employment noncompetes that do not satisfy a statutory exception, no matter how narrowly tailored. Sections 16600.1 and 16600.5 prohibit an employer from including, entering, or attempting to enforce a void provision; a prevailing employee, former employee, or prospective employee may obtain injunctive relief or actual damages and is entitled to reasonable attorneys’ fees and costs under section 16600.5.

15.2 No Post-Employment Nonsolicitation or No-Hire Covenant. This Agreement does not prohibit Executive from lawfully soliciting or accepting business from a customer, recruiting or hiring a worker, or responding to an unsolicited inquiry after employment. It does prohibit misuse of a trade secret or qualifying Confidential Information as provided in Section 16.

15.3 Non-Disparagement. The Parties shall not knowingly make false statements intended to cause material reputational harm. In substantial compliance with California Government Code section 12964.5: Nothing in this agreement prevents you from discussing or disclosing information about unlawful acts in the workplace, such as harassment or discrimination or any other conduct that you have reason to believe is unlawful. Nothing restricts truthful testimony, legal process, government-agency communications, wage discussions protected by Labor Code section 232, working-condition disclosures protected by Labor Code section 232.5, or another nonwaivable right.


16. CONFIDENTIALITY AND TRADE SECRET PROTECTION

16.1 Definition of Confidential Information. "Confidential Information" means all non-public information, in any form or medium, that relates to Company's or its Affiliates' business, operations, customers, products, services, finances, technology, or intellectual property, including but not limited to:

(a) Trade secrets as defined under California Civil Code section 3426.1;

(b) Business plans, strategies, projections, and financial information;

(c) Customer and supplier lists, contracts, pricing, and purchasing information;

(d) Product development plans, technical data, research, and development information;

(e) Software, algorithms, source code, and technology architecture;

(f) Nonpublic personnel records that Executive is authorized to access, excluding Executive’s own wages and information about working conditions protected by law;

(g) Marketing plans, competitive analyses, and sales strategies; and

(h) Any information designated as confidential by Company.

Confidential Information does not include information that: (i) is or becomes publicly available through no fault of Executive; (ii) was rightfully in Executive's possession before employment with Company, as documented in writing; (iii) is rightfully disclosed to Executive by a third party without restriction on disclosure; or (iv) is independently developed by Executive without use of Confidential Information.

16.2 Obligations of Confidentiality. Executive shall:

(a) Hold all Confidential Information in the strictest confidence;

(b) Use Confidential Information solely for the purpose of performing Executive's duties for Company;

(c) Not disclose Confidential Information to any third party without the prior written consent of Company (except as necessary in the performance of Executive's duties or as required by law); and

(d) Take all reasonable precautions to prevent unauthorized disclosure of Confidential Information.

These obligations survive termination while the information remains lawfully confidential and, for trade secrets, while it qualifies under Civil Code section 3426.1. They do not prohibit lawful competition, use of general skill and knowledge, wage discussions, working-condition disclosures, reports of unlawful conduct, or government-agency communications.

16.3 California Uniform Trade Secrets Act (CUTSA). Misappropriation of a Company trade secret is subject to California Civil Code sections 3426.1 through 3426.6, which provide for:

(a) Injunctive relief to prevent actual or threatened misappropriation;

(b) Damages for actual loss and unjust enrichment;

(c) Exemplary damages of up to twice the amount of actual damages in cases of willful and malicious misappropriation; and

(d) Reasonable attorneys' fees in cases of willful and malicious misappropriation or bad-faith claims.

The statute of limitations for CUTSA claims is three (3) years from the date the misappropriation is discovered or should have been discovered.

16.4 Federal Defend Trade Secrets Act — Whistleblower Immunity Notice. Pursuant to 18 U.S.C. section 1833(b), Executive is hereby notified that:

(a) An individual shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, and solely for the purpose of reporting or investigating a suspected violation of law; or (ii) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal; and

(b) An individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual files any document containing the trade secret under seal and does not disclose the trade secret, except pursuant to court order.

16.5 Remedies for Breach. Company may seek relief authorized by Civil Code sections 3426.2 through 3426.4 after proving the applicable legal standards. This clause does not presume irreparable harm, waive a required bond, or restrain lawful competition.


17. INTELLECTUAL PROPERTY AND INVENTIONS ASSIGNMENT

17.1 Assignment of Inventions. Executive hereby irrevocably assigns to Company all right, title, and interest in and to any and all inventions, discoveries, improvements, works of authorship, designs, formulas, processes, techniques, know-how, data, software, and other intellectual property (collectively, "Inventions") that Executive makes, conceives, reduces to practice, or creates, either alone or jointly with others, during Executive's employment with Company, that:

(a) Relate to Company's actual or demonstrably anticipated business, research, or development;

(b) Result from any work performed by Executive for Company; or

(c) Are developed using Company's equipment, supplies, facilities, or Confidential Information.

17.2 California Labor Code Section 2870 — Exclusion. Pursuant to California Labor Code section 2870, the assignment in Section 17.1 does NOT apply to any Invention that Executive develops entirely on Executive's own time, without using Company's equipment, supplies, facilities, or trade secret information, UNLESS the Invention either:

(a) Relates at the time of conception or reduction to practice to Company's business or to Company's actual or demonstrably anticipated research or development; or

(b) Results from any work performed by Executive for Company.

A copy of California Labor Code sections 2870 through 2872 is attached as Exhibit A. Executive acknowledges receipt of this notice.

17.3 Disclosure and Cooperation. Executive shall promptly disclose to Company all Inventions subject to assignment hereunder. Executive shall cooperate fully with Company in securing and maintaining patent, copyright, trademark, and other intellectual property protections for such Inventions, including executing any documents and taking any actions reasonably necessary to effectuate such protections. This obligation shall survive termination of employment.

17.4 Prior Inventions. Executive has identified on a separate schedule (or, if no schedule is attached, Executive represents that there are none) all Inventions that Executive owns or has an interest in prior to the Effective Date and that Executive wishes to exclude from the scope of this Agreement ("Prior Inventions"). If Executive uses or incorporates any Prior Invention in any work for Company, Executive hereby grants Company a non-exclusive, royalty-free, irrevocable, perpetual, worldwide license to use such Prior Invention in connection with Company's business.

17.5 Works Made for Hire. Executive acknowledges that all works of authorship created by Executive in the scope of employment are "works made for hire" as defined under the Copyright Act (17 U.S.C. section 101). To the extent any such work does not qualify as a work made for hire, Executive hereby assigns all copyright in such work to Company.

17.6 Moral Rights Waiver. To the fullest extent permitted by applicable law, Executive waives any moral rights (including rights of attribution and integrity) in any Inventions or works assigned to Company.


18. RETURN OF COMPANY PROPERTY

18.1 Obligation to Return. Upon the Date of Termination (or at any time upon Company's request), Executive shall immediately return to Company all Company property in Executive's possession or control, including but not limited to:

(a) Laptops, computers, tablets, mobile phones, and other electronic devices;

(b) Access cards, keys, security badges, and parking passes;

(c) Credit cards, corporate charge cards, and expense accounts;

(d) All documents, files, records, and materials (in any format, including electronic) containing or relating to Confidential Information;

(e) All copies, summaries, notes, and extracts of Confidential Information; and

(f) Any other Company property or equipment.

18.2 Electronic Information. Executive shall delete Company Confidential Information stored on personal systems and certify completion, except for material Executive is legally entitled or required to retain, information preserved under a litigation hold, and records reasonably needed to document compensation, benefits, expenses, or protected activity.

18.3 No Liens or Claims. Executive shall not assert any lien, claim, or right of retention over any Company property, and failure to return property shall not excuse Company's obligation to pay Accrued Obligations.


19. INDEMNIFICATION AND D&O INSURANCE

19.1 Statutory Indemnification. Company shall indemnify Executive to the fullest extent permitted by the law governing Company's internal affairs and its organizational documents. If Company is a California corporation, California Corporations Code section 317 governs the statutory standards, authorizations, limitations, advancement undertaking, and insurance power.

19.2 Contractual Indemnification. In addition to any rights under Company's organizational documents, Company shall defend, indemnify, and hold harmless Executive from and against any and all claims, damages, losses, liabilities, judgments, fines, penalties, costs, and expenses (including reasonable attorneys' fees and costs of investigation) arising out of or relating to Executive's good-faith performance of duties as an officer, director, employee, or agent of Company or any Affiliate, except to the extent such claims arise from Executive's:

(a) Gross negligence or willful misconduct;

(b) Acts not in good faith or not reasonably believed to be in Company's best interests;

(c) Transactions from which Executive derived an improper personal benefit; or

(d) Acts or omissions for which indemnification is prohibited by applicable law.

19.3 Advancement of Expenses. Company shall advance to Executive all reasonable attorneys' fees and expenses incurred in connection with any claim or proceeding described in Section 19.2, subject to Executive's written undertaking to repay such amounts if it is ultimately determined that Executive is not entitled to indemnification.

19.4 Directors' and Officers' Insurance. During the Employment Term and for a period of not less than [____] years following the Date of Termination (regardless of the reason for termination), Company shall maintain directors' and officers' liability insurance covering Executive with coverage limits and terms no less favorable than the coverage provided to other senior executives and directors of Company.

19.5 Indemnification Agreement. Company and Executive shall enter into a separate Indemnification Agreement in the form customarily used by Company for its directors and officers, providing indemnification and advancement rights consistent with (and in addition to) the provisions of this Section 19.

19.6 Survival. The obligations of Company under this Section 19 shall survive the termination of Executive's employment for any reason and shall continue for the duration of any applicable statutes of limitation.


20. DISPUTE RESOLUTION

20.1 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California, without regard to conflict-of-laws principles that would result in the application of the laws of another jurisdiction.

20.2 Forum Selection — California Labor Code Section 925. If Executive primarily resides and works in California and this Agreement is entered, modified, or extended on or after January 1, 2017, Company shall not require Executive, as a condition of employment, to adjudicate outside California a claim arising in California or to lose California substantive protections. A violating provision is voidable by Executive. Section 925 does not apply to a venue or choice-of-law term actually negotiated while Executive is individually represented by counsel. Select the forum only after confirming whether that exception applies: [CALIFORNIA COUNTY / NEGOTIATED FORUM].

20.3 Arbitration. Except as provided in Sections 20.4 and 20.5, any dispute, claim, or controversy arising out of or relating to this Agreement or employment shall be resolved by final and binding arbitration administered by JAMS under its Employment Arbitration Rules. The Federal Arbitration Act, 9 U.S.C. § 2, governs to the extent applicable. The arbitration shall be conducted as follows:

(a) Location. The arbitration shall be held in [________________________________], California;

(b) Arbitrator. A single neutral arbitrator shall be selected in accordance with JAMS rules. The arbitrator shall be a retired judge or attorney with substantial experience in executive employment matters;

(c) Discovery. The Parties shall be entitled to reasonable discovery, including document requests, interrogatories, and depositions, as determined by the arbitrator consistent with the efficient resolution of the dispute;

(d) Costs and Fees. Company shall bear all arbitration filing fees, administrative fees, and arbitrator fees and costs that exceed the amount of court filing fees Executive would have incurred in court. Each Party shall bear its own attorneys' fees, except as otherwise provided by applicable law or as awarded by the arbitrator;

(e) Remedies. The arbitrator shall have the authority to award any relief that would be available in a court of competent jurisdiction, including injunctive and declaratory relief, compensatory damages, and attorneys' fees where authorized by law;

(f) Written Decision. The arbitrator shall issue a written award with findings of fact and conclusions of law;

(g) Confidentiality. Any confidentiality order must preserve disclosures protected by Government Code section 12964.5, Labor Code sections 232 and 232.5, agency communications, legal process, and other nonwaivable rights; and

(h) Judgment. Judgment upon the arbitration award may be entered in any court of competent jurisdiction.

20.4 Claims and Proceedings Not Mandatorily Arbitrated. This clause does not require arbitration where applicable law prohibits it and does not prevent filing or participating in a charge, report, or administrative proceeding with a government agency. At the election provided by 9 U.S.C. § 402, it does not require arbitration of a case relating to a sexual-assault or sexual-harassment dispute as defined in 9 U.S.C. § 401; a court decides whether that election applies.

20.5 Provisional Remedies. Nothing in this Section 20 shall prevent either Party from seeking temporary or preliminary injunctive relief or other provisional remedies from a court of competent jurisdiction in connection with a breach or threatened breach of Sections 16, 17, or 18, pending final resolution through arbitration.

20.6 Jury Trial. No separate predispute jury-trial waiver is included for a claim litigated in court.


21. GENERAL PROVISIONS

21.1 Entire Agreement. This Agreement, together with the Equity Plan, any individual equity award agreements, the Indemnification Agreement, and the Exhibits hereto, constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous negotiations, representations, warranties, commitments, offers, contracts, and understandings, whether written or oral, relating to the subject matter hereof.

21.2 Amendment and Waiver. No amendment, modification, or supplement to this Agreement shall be valid or binding unless set forth in writing and signed by both Parties. No waiver of any provision of this Agreement shall be effective unless in writing and signed by the waiving Party. A waiver on one occasion shall not constitute a waiver on any subsequent occasion. The failure of either Party to enforce any provision of this Agreement shall not constitute a waiver of such provision or of the right to enforce it at a later time.

21.3 Severability; No Expansion. If a provision is invalid or unenforceable, the remainder continues only to the extent it can operate independently. No court or arbitrator is asked to expand a restriction on lawful employment, solicitation, hiring, or customer business.

21.4 Assignment.

(a) Executive. Executive may not assign or transfer this Agreement or any rights or obligations hereunder, and any purported assignment shall be null and void.

(b) Company. Company may assign this Agreement to any successor entity in connection with a merger, consolidation, reorganization, or sale of all or substantially all of Company's assets, provided that such successor assumes all of Company's obligations under this Agreement. This Agreement shall inure to the benefit of and be binding upon Company's successors and permitted assigns.

21.5 Notices. All notices, requests, demands, and other communications required or permitted under this Agreement shall be in writing and shall be deemed delivered: (a) upon personal delivery; (b) one (1) business day after deposit with a nationally recognized overnight courier service; (c) three (3) business days after deposit in the United States mail, certified, return receipt requested, postage prepaid; or (d) upon transmission by email with confirmation of receipt, to the addresses set forth in the preamble of this Agreement (or to such other address as a Party may designate by written notice).

21.6 Counterparts and Electronic Signatures. This Agreement may be executed in counterparts and electronically. Under California Civil Code section 1633.7, a record, signature, or contract may not be denied legal effect solely because it is electronic, and an electronic record or signature satisfies a legal writing or signature requirement, subject to the Act’s scope and other applicable law.

21.7 Construction. This Agreement shall be construed as a whole according to its fair meaning and not strictly for or against any Party. The headings in this Agreement are for convenience of reference only and shall not affect the interpretation of this Agreement. As used herein, "including" means "including without limitation," and "or" is not exclusive.

21.8 Third-Party Beneficiaries. This Agreement is for the sole benefit of the Parties and their respective successors and permitted assigns, and nothing herein shall confer any rights upon any other person or entity, except that Executive's estate and beneficiaries shall be third-party beneficiaries of the Accrued Obligations and any death-related benefits.

21.9 Tax Withholding. Company shall have the right to deduct and withhold from all payments and benefits under this Agreement all federal, state, and local taxes and other amounts required to be withheld by applicable law. Executive shall be solely responsible for all tax obligations arising from payments under this Agreement, except to the extent Company fails to properly withhold as required by law.

21.10 No Obligation to Hire. Nothing in this Agreement shall be construed as giving Executive any right to be retained in the employ of Company beyond the terms of this Agreement, and each Party retains the right to terminate the employment relationship at any time, subject to the terms and conditions hereof.

21.11 Legal Fees for Negotiation. ☐ Check if applicable: Company shall reimburse Executive up to $[________________________________] for reasonable legal fees incurred by Executive in connection with the negotiation, review, and execution of this Agreement, payable within thirty (30) days following presentation of invoices.


22. EXECUTION

IN WITNESS WHEREOF, the Parties have executed this Executive Employment Agreement as of the Effective Date first written above.

COMPANY:

[________________________________]

By: [________________________________]

Name: [________________________________]

Title: [________________________________]

Date: [__/__/____]

EXECUTIVE:

[________________________________]

Signature: [________________________________]

Date: [__/__/____]


EXHIBIT A — CALIFORNIA LABOR CODE SECTIONS 2870-2872

Notice to Executive Regarding Inventions Assignment

Pursuant to California Labor Code section 2872, Company is required to provide Executive with the following notice:

California Labor Code Section 2870 — Application of provision providing that employee shall assign or offer to assign rights in invention to employer.

(a) Any provision in an employment agreement which provides that an employee shall assign, or offer to assign, any of his or her rights in an invention to his or her employer shall not apply to an invention that the employee developed entirely on his or her own time without using the employer's equipment, supplies, facilities, or trade secret information except for those inventions that either:

(1) Relate at the time of conception or reduction to practice of the invention to the employer's business, or actual or demonstrably anticipated research or development of the employer; or

(2) Result from any work performed by the employee for the employer.

(b) To the extent a provision in an employment agreement purports to require an employee to assign an invention otherwise excluded from being required to be assigned under subdivision (a), the provision is against the public policy of this state and is unenforceable.

California Labor Code Section 2871. No employer shall require a provision made void and unenforceable by Section 2870 as a condition of employment or continued employment. Nothing in this article shall be construed to forbid or restrict the right of an employer to provide in contracts of employment for disclosure, provided that any such disclosing provision is otherwise consistent with law.

California Labor Code Section 2872. If an employment agreement entered into after January 1, 1980, contains a provision requiring the employee to assign or offer to assign any of his or her rights in any invention to his or her employer, the employer must, at the time the agreement is made, provide a written notification to the employee that the agreement does not apply to an invention which qualifies fully under the provisions of Section 2870.

Executive Acknowledgment:

I, [________________________________], have received, read, and understand this notice regarding California Labor Code sections 2870 through 2872.

Executive Initials: [____]

Date: [__/__/____]


EXHIBIT B — EQUITY AWARD SUMMARY

Award Type Number of Shares/Units Grant Date Vesting Schedule Exercise Price (if applicable)
[________________________________] [________________________________] [__/__/____] [________________________________] $[________________________________]
[________________________________] [________________________________] [__/__/____] [________________________________] $[________________________________]
[________________________________] [________________________________] [__/__/____] [________________________________] $[________________________________]

EXHIBIT C — FORM OF SEPARATION AGREEMENT AND GENERAL RELEASE

Use a separately dated release that includes, at minimum:

☐ Severance consideration exceeding earned wages, vested vacation, approved expenses, and other amounts already owed.

☐ A release limited to claims through the signature date; no release of future claims or nonwaivable agency rights.

☐ Written notice of the right to consult an attorney and at least five business days to do so under California Government Code section 12964.5(b)(4), subject to its knowing-and-voluntary early-signature rule.

☐ This statutory carve-out in substantial form: Nothing in this agreement prevents you from discussing or disclosing information about unlawful acts in the workplace, such as harassment or discrimination or any other conduct that you have reason to believe is unlawful.

☐ No post-employment noncompetition, customer nonsolicitation, employee nonsolicitation, no-hire, or forfeiture-for-competition clause that is void under Business and Professions Code sections 16600 through 16600.5.

☐ If Executive is at least age forty and ADEA claims are released: written advice to consult an attorney; specific ADEA reference; additional consideration; at least twenty-one days to consider, or forty-five days for a qualifying group program with the required disclosures; and at least seven days to revoke under 29 U.S.C. § 626(f).

☐ The DTSA notice in Section 16.4 is repeated or incorporated. Any confidentiality concerning the severance amount remains subject to Government Code section 12964.5(e).


SOURCES AND REFERENCES

California Statutes:

Federal Statutes and Regulations:


Prepared for attorney review. This template is provided for informational purposes only and does not constitute legal advice.

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About This Template

Employment documents govern the relationship between a company and its workers, from offer letters and employment agreements through handbooks, performance reviews, and separations. Done right, they set clear expectations, protect against wrongful termination and discrimination claims, and give both sides a record to rely on. Done poorly, they invite lawsuits, agency complaints, and costly disputes.

Important Notice

This template is provided for informational purposes. It is not legal advice. We recommend having an attorney review any legal document before signing, especially for high-value or complex matters.

Checked against the law it cites

A reviewer verified this template's legal citations against the official source on 2026-07-28.

Legal authority: Cal. Bus. & Prof. Code §§ 16600, 16600.1, 16600.5 (Employment Noncompete Prohibition and Remedies); Cal. Lab. Code §§ 201-203 (Final Wages and Waiting-Time Penalty); Cal. Lab. Code § 227.3 (Vested Vacation Pay on Termination); Cal. Lab. Code §§ 232, 232.5 (Wage and Working-Condition Disclosures); Cal. Lab. Code § 246 (Paid Sick Leave); Cal. Lab. Code § 925 (Forum Selection and Choice-of-Law Limitations); Cal. Lab. Code §§ 2802, 2804 (Expense Reimbursement and Anti-Waiver Rule); Cal. Lab. Code §§ 2870-2872 (Employee Inventions Assignment Limitations); Cal. Gov. Code § 12964.5 (Nondisparagement and Separation-Agreement Protections); Cal. Civ. Code §§ 3426.1-3426.6 (Trade Secrets, Remedies, and Limitations); Cal. Corp. Code § 317 (Indemnification of Corporate Agents); Cal. Civ. Code § 1633.7 (Electronic Records and Signatures); 26 U.S.C. § 409A (Deferred Compensation Requirements); 26 U.S.C. § 280G (Golden Parachute Payments); 26 U.S.C. § 4999 (Excise Tax on Golden Parachute Payments); 18 U.S.C. § 1833(b) (Defend Trade Secrets Act — Whistleblower Immunity); 29 U.S.C. §§ 626(f), 631(a) (ADEA Waiver Requirements and Age Coverage); 15 U.S.C. § 78j-4 (Recovery of Erroneously Awarded Compensation); 9 U.S.C. §§ 2, 401-402 (Arbitration and Sexual-Assault/Harassment Election); 17 U.S.C. § 101 (Work-Made-for-Hire Definition)

Last updated: 2026-07-28

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