CTO Employment Agreement Template

Custom Made CTO Employment Agreement Template

This CTO employment contract is a legal agreement between your company/organization and a proposed executive whose role relates to technological matters within your company. This contract sets the tone and lays the foundation for the job role and its functioning within the proposed company.

The job description and significance of a CTO varies by company, a CTO may work in the development of the company, strategic planning, infrastructure management etc. However, this varies by company, so it is important to have an agreement where the duties and responsibilities are laid out and understood by all parties involved.

It is important to note that if the CTO is a co-founder of the company, they would need to sign a cofounder agreement outside of their employment contract, as the cofounder agreement governs the relationship between founders containing provisions like share ownership, capital contribution and vesting schedule. Download your cofounder agreement here.

Preview CTO Employment Agreement Contract

About The CTO Employment Contract Template

This CTO employment contract template has been carefully vetted by lawyers with qualifications in multiple jurisdictions across Africa and the United States of America, with extensive experience in technology and working with some of the fastest-growing companies in Africa.

It is written in simple, comprehensive grammar that is easy to understand by entrepreneurs and business personnel without needing an additional legal review. Unlike other legal agreements filed with long and hard-to-understand legal words, the legal terms in this template have been broken down and explained using terms that can be read and understood by anyone.

Why You Need This Custom Made CTO Template

This employment agreement template has been carefully vetted by lawyers with qualifications in multiple jurisdictions, and extensive experience in technology, business operations, management, and structuring, who have worked with some of the fastest-growing companies in the tech space.

This template is written in simple, comprehensive grammar and the legal words have been explained in terms that are easy to understand by founders and entrepreneurs without needing additional legal review.

This CTO Employment Agreement Contract Contains:

Parties Information

the names of both the prospective CTO and employing company should be clearly stated in the contract of employment.

Interpretation:

This refers to definitions and clarifications of certain aspects of the contract and the employment. It expatiates on terms like “cause”, “shares”, “control”, “termination date” etc.

Employment Information:

An employment contract should outline the term of the employment, duties, and responsibilities expected of the employee as well as details as to the location of the exercise of their role. This will help to ensure that the prospective CTO understands what is expected of them in their role.

Compensation:

an employment contract should clearly outline the merits and compensation of the role, i.e., salary and payment terms, stock entitlements, vacation days available as well as benefits, signing bonuses, taxes, other available benefits, etc.

Termination of Employment:

This clause is very important and provides for the agreed compensation to the officer in exchange for the services rendered to the company. Compensation here includes cash, stock, bonuses, paid leaves, and other benefits.

Confidential Information:

This mandates that the CTO keep certain details regarding the company private and avoid exposure. It also follows that there are instances in which the CTO is not mandated to avoid disclosure etc.

Miscellaneous:

the clause provides further context and information on other relevant aspects of employment. such as remedy for breaches, dispute resolution, governing law, amendments, etc.

CTO Employment Agreement Contract FAQ

Who should be the signatories?
When does it become operational?
Does it require board approval?
Does it require additional legal review?
Does it need to be renewed?
How can it be canceled?

The employer or the company hiring the CTO or its authorised representative and the CTO (employee).

Generally, legal documents become operational from the moment they are signed by the parties, unless otherwise stated. Most employment contracts, they become operational from the date of commencement, which is the date at the top of the document.

The reason for this is that employers usually have an agreed date of resumption or commencement of employment with the employee, even though the employment agreement might not have been signed before this date.

No, this document does not require the approval of the company’s Board of Directors. It can be entered into by the CEO or other authorised representative of the company.

These templates are suggested templates that are created using terms that are simple to understand by anyone. They are a good place to start when entering into a binding contract or agreement. However, this document is not a substitute for legal advice and we recommend that you consult a lawyer before signing legal documents or agreements or seeking legal advice to ensure you are complying with applicable laws and regulations.

This employment contract does not need to be renewed.

This agreement can be cancelled in accordance with the provisions for termination set forth in Section 6 of the agreement. It includes methods of terminating the agreement by either party, with or without cause.