The Founder Employment Agreement is a crucial document used when formalizing the employment relationship between a company founder and their company in Singapore. This agreement is particularly important as it addresses the dual role of the founder as both an employee and a key stakeholder in the business. It includes provisions for compensation, equity arrangements, intellectual property protection, and post-employment obligations, while ensuring compliance with Singapore's employment laws and corporate governance requirements. The agreement typically becomes necessary during company formation, funding rounds, or when formalizing previously informal arrangements.
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1. Parties: Identification of the company and founder
2. Background: Context of founder's relationship with company and purpose of agreement
3. Definitions: Key terms used throughout the agreement
4. Appointment and Term: Position, duties, and duration of employment
5. Compensation and Benefits: Salary, bonuses, and other benefits including CPF contributions
6. Intellectual Property Rights: Assignment of IP created during employment and related obligations
7. Confidentiality: Protection of company information and trade secrets
8. Termination: Grounds and process for ending employment, notice periods, and obligations
9. Governing Law: Singapore law as applicable jurisdiction and dispute resolution mechanisms
1. Equity Arrangements: Share options, vesting schedules, and other equity-based compensation terms
2. Non-Competition: Post-employment restrictions on competing activities and solicitation of employees/clients
3. Board Position: Terms of appointment to and removal from the board of directors
4. International Travel: Terms and conditions for international travel and overseas work assignments
1. Schedule 1 - Job Description: Detailed outline of founder's roles, responsibilities, and reporting structure
2. Schedule 2 - Compensation Details: Comprehensive breakdown of salary, bonuses, benefits, and other compensation elements
3. Schedule 3 - Share Option Plan: Details of equity participation including vesting schedule and exercise terms
4. Schedule 4 - Company Policies: Key company policies and procedures applicable to the founder
5. Schedule 5 - Restricted Activities: Specific list of prohibited competitive activities and territorial restrictions
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