A Director Settlement Agreement is used when a director's relationship with a company is being terminated, whether tHRough mutual agreement or otherwise. This document, governed by Singapore law, outlines the comprehensive terms of separation, including financial settlements, continuing obligations, and mutual releases. It's particularly important in Singapore's corporate environment where director duties and corporate governance are strictly regulated. The agreement helps manage legal risks, protect confidential information, and ensure compliance with the Companies Act and other relevant legislation. It typically includes provisions for payment terms, share options, non-compete clauses, and ongoing obligations.
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1. Parties: Identification of the company and the departing director
2. Background: Context of directorship and reasons for settlement
3. Definitions: Key terms used tHRoughout the agreement
4. Resignation Terms: Effective date and mechanics of resignation
5. Settlement Payment: Details of compensation and payment terms
6. Mutual Release: Release of claims between parties
7. Confidentiality: Ongoing confidentiality obligations
8. Return of Property: Process for returning company assets and documents
1. Non-Compete Provisions: Restrictions on future employment or business activities - use when protecting company interests from competition
2. Share Options: Treatment of existing share options or equity - use when director holds company shares or options
3. Continuing Directorship: Terms for ongoing board participation - use when director remains on subsidiary boards
4. Tax Indemnity: Tax-related obligations and indemnities - use when settlement includes taxable components
1. Schedule of Company Property: List of items to be returned to the company
2. Share Option Details: Details of outstanding share options and treatment
3. Resignation Letters: Form of resignation letters for various positions
4. Payment Schedule: Breakdown of settlement payments and timing
5. Ongoing Obligations: Summary of continuing duties and restrictions
Relevant legal definitions
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