Director's Employment Agreement
1. The Director's obligations
1.1 The Director is employed by the Company and the Director accepts the employment on the terms specified in this agreement starting from DATE.
1.2 The Director is appointed as TITLE and must, therefore, be responsible for:
ADD AND DESCRIBE RESPONSIBILITIES
1.3 The Director shall perform his duties in accordance with COUNTRY law, the Company’s Articles of Association, any standing orders and in accordance with any directions and instructions by the Board of the Directors or General Assembly.
1.4 The Director shall use the majority of his time and effort in carrying out his tasks and responsibilities in the Company. The Director shall not be compensated for any overtime.
1.5 The BOARD OF DIRECTORS/GENERAL ASSEMBLY may agree to authorize the Director to undertake other work - both voluntary and paid work.
2. Signing Powers
2.1 The Director may in the daily operations and with regards to his responsibilities act on behalf of the Company. The Director must always act in accordance with the Company’s Articles of Association, any standing orders and instructions. Large or extraordinary matters must be presented to the
BOARD OF DIRECTORS/GENERAL ASSEMBLY OR THE MANAGER OF THE DIRECTOR.
3. Remuneration
3.1 The Director is remunerated with ENTER AMOUNT per month. The salary is paid out ENTER WHEN SALARY IS PAID.
3.2 ANY OTHER CONDITIONS OF PAY
4. Employee benefits, travel and other expenses
4.1 The Company will pay the costs of:
FILL IN ANY GOODS OR EXPENSES THE COMPANY WILL PAY FOR
4.2 The tax consequences for the Director of the above is without concern of the Company.
5. Holidays
5.1 The Director is entitled to annual vacation of total [NUMBER] days with full pay during the holiday period.
5.2 Any accumulated or not used vacation cannot be transferred to the subsequent calendar year without further agreement between the Company and BOARD OF DIRECTORS/GENERAL ASSEMBLY.
6. Termination and Termination
6.1 This agreement may be terminated by the Company with NUMBER months' notice, to the end of a month and by the Director with NUMBER months' notice to the end of a month.
7. Illness
7.1 The Director is entitled to receive normal salary during periods of illness.
7.2 If the Director due to illness has been unable to carry out its work in a total period of NUMBER months within a period of NUMBER months, the Company is entitled to terminate the agreement with NUMBER months' notice to the end of a month.
8. Privacy and confidentiality
8.1 The Director is required to keep confidential all information about the Company's internal affairs, especially finances, business operations, clientele and staff. Such information shall not during his employment or thereafter be communicated to third persons if the information reasonably is to be assumed as confidential or trade secrets.
8.2 By termination of this agreement, the Director is required to return all materials that belong to the Company and any employee benefits. The Director is not entitled to exercise a lien of such material or benefits.
8.3 All ideas, inventions, changes, improvements, methods, formulas, codes, software, designs, recipes, materials, know-how, sketches, drawings, maps and other intellectual property rights, including all rights there that Director was involved with during his employment, belong to the Company without further payment.
8.4 The Director may not participate in consideration of issues of agreements between the Company and the Director himself or for questions about legal actions against the Director. The same applies to issues between the Company and a third party or legal action against third parties if the Director has a substantial interest therein that may be contrary to the interest of the Company. In such cases, the Director must inform the Board of Directors or the General Assembly.
9. Governing Law and Jurisdiction
9.1 This contract is governed by the law of COUNTRY.
9.2 Any dispute between the parties regarding this agreement will be initially resolved between the parties by amicable solution. If such solution cannot be found, the dispute shall then be settled by the courts of INSERT COURTS.
10. Hold harmless
10. The Company will hold harmless the Director from any claims, liabilities, lawsuits, of any sort whatsoever arising out of the Director’s performance of his/her role as the Company’s Director, including attorney fees and/or claims that may be asserted against his/her due to his/her function as the Company’s Director. This clause to hold harmless shall not apply if the Director is reasonably believed to have committed gross negligence, fraud or criminal activity.
11. Miscellaneous Provisions
11.1 In the event that the specific terms of this agreement and prior employment agreements conflict, this agreement shall supersede and be binding.
11.2 The content of this agreement is confidential.
11.3 If needed, the Director shall be registered as director with relevant authorities.
11.4 INSERT COURTS
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What is an executive employment contract?
An executive employment contract is a formal agreement between a company and its executive. It delineates crucial aspects such as job responsibilities, compensation, benefits, and additional incentives like bonuses or stock options.
It encompasses essential terms related to termination, confidentiality, and non-compete clauses. By establishing clear expectations and legal safeguards for both parties, this contract plays a major role in the mutual understanding and protection of the interests of the executive and the company.
Think of it as an employment contract for senior-level staff that also defines the relationship between the director (or other C-level position) and the organization. The contract includes remuneration and expected benefits provisions, ensuring that the executive is fairly compensated and enjoys standard perks.
Moreover, the contract incorporates robust measures to protect sensitive company information, reinforcing the confidentiality and security aspects of the working relationship.
Embarking on the journey of an executive employment contract can feel like setting sail into uncharted waters. However, with a deeper understanding of the key components and industry standards, you can negotiate terms that work for all parties involved.
Contractbook has made the contract even easier with our free template above. Use it to help draft the director’s employment contract your organization deserves.
What should a director’s contract contain?
As in all contracts, there are specific requirements based on the jurisdiction of your organization. And, like most contracts, there is also the freedom to decide what to include based on the parties themselves.
However, there are some points that the executive director’s contract should always (or very often) include:
- Job description and responsibilities
- Compensation, bonuses, employee benefits, pensions, and vacation entitlements
- Permission to undertake additional responsibilities outside the company during employment
- Non-solicitation and non-competition agreements
- Confidentiality obligations
- Participation in incentive schemes like options and warrants
- Insurance coverage
- Termination procedures, including in the event of a change in ownership
- Severance packages
- Resolution of disputes
What is a director’s service agreement?
A director's service agreement comes in two flavors: one tailored for executive directors and another for non-executive directors.
This agreement serves as a comprehensive employment contract for executive directors who are full- or part-time employees. It includes terms suitable for a senior employee holding a significant role on the company's board.
On the flip side, non-executive directors, though not statutorily defined, typically offer independent advice or supervision. They don't function as full or part-time employees or hold executive office positions, differentiating their role and, subsequently, the terms in their service agreement.
Create lovable director employment contracts with Contractbook
Who says contracts can’t be lovable? Even when hiring for a top-level, senior position in your organization, Contractbook simplifies creating executive employment contracts and streamlines the workflow.
Contractbook enables embedding specific conditions based on unique details or data inputs, ensuring that each executive employment contract is customized to meet particular needs. Real-time collaboration features facilitate communication and clarity, making it easy for parties involved to address queries or seek clarifications on terms during the contract creation process.
With Contractbook, the complexities of crafting executive employment contracts are simplified, providing efficiency and consistency to the entire process. And that’s something to make even the director happy about.
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This contract outlines the terms of employment for a director position at the company. It covers the director's responsibilities, remuneration, benefits, termination terms, confidentiality obligations, and other provisions governing the employment relationship. The contract is governed by the laws of the specified country and any disputes are to be resolved through the courts mentioned.
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