An Employee Indemnification Agreement is essential in Singapore's corporate environment where employees, particularly senior staff, may face personal liability risks in performing their duties. This document, governed by Singapore law, provides crucial protection by detailing when and how the company will defend and compensate employees for losses arising from their work activities. It specifies claim procedures, exclusions, and often includes provisions for advance payment of legal costs. The agreement must comply with Singapore's Companies Act, Employment Act, and related corporate governance requirements.
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1. Parties: Identifies the company and employee being indemnified
2. Background: States the context and purpose of the indemnification
3. Definitions: Defines key terms including 'Indemnified Events', 'Losses', 'Claims'
4. Scope of Indemnification: Details what events and losses are covered by the agreement
5. Exclusions: Specifies what is not covered by the indemnification
6. Procedure for Claims: Process for making and handling indemnification claims
7. Duration: Period of coverage and survival provisions
1. Insurance Provisions: Details the relationship with D&O insurance and other insurance matters when company maintains D&O insurance
2. Advance Payment Provisions: Terms and conditions for advance payment of legal costs when company agrees to advance defense costs
3. Change in Control: Provisions dealing with the effect of corporate changes on indemnification, typically used for senior executives
1. Schedule 1 - Schedule of Covered Positions: Comprehensive list of roles and responsibilities covered under the indemnification
2. Schedule 2 - Claims Procedure: Detailed step-by-step process for making and handling claims
3. Schedule 3 - Insurance Details: Summary of relevant insurance policies and their relationship to the indemnification
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