A non-employee directors benefit plans trust agreement is an agreement between the non-employee directors of a company and the authorities in charge of the administration of the company where the details of the benefit trust plans to be provided to non-employee directors are laid down.
When this agreement is really needed?
A non-employee directors benefit plans trust agreement is needed when a business wishes to appoint a skilled individual as a director of the organization who will not be on the company’s payroll. A non-employee profit trust is created for this purpose. The goal of non- employee directors benefit plans trust agreement is to assure that the rights, duties, and responsibilities of the trustor, trustee, and recipient are clearly laid out to avoid any disputes related to of any promise.
Benefits of the Agreement:
The agreement should contain the names of the parties to the contract and the relationship between them
The rights, responsibilities, and liabilities of all those who are parties to the agreement must be clearly defined
The fees payable to the trustees and the compensation payable to the beneficiaries must be stated clearly
Provisions regarding change of control should be clearly mentioned
The events leading to the termination of the services of the beneficiary or trustee has to be clearly laid out
Key Points in the Agreement:
Detailed pay plan regarding the payment payable to the recipient
The fees due to the trustee and the constraints of the trustee
The accounting of the grant made by the firm to the trust fund and liabilities of the trust fund.
The law which dictates this trust arrangement and the jurisdiction