Document background
The Key Person Agreement is essential for organizations seeking to secure the continued service of employees who are vital to their operations or possess unique skills, knowledge, or relationships critical to the company's success. This agreement, governed by Canadian federal and provincial laws, goes beyond standard employment contracts by incorporating specialized provisions for retention, protection, and compensation. It is particularly important during periods of business transition, succession planning, or when protecting intellectual property and client relationships. The document typically includes key person insurance provisions, special compensation arrangements, detailed confidentiality and non-competition clauses, and specific termination provisions. It's commonly used in situations where the departure of the employee could significantly impact the company's operations, value, or stability.
