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Director Employment Contract Template for United States

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Key Requirements PROMPT example:

Director Employment Contract

"Need a Director Employment Contract for our new Technical Director joining our software company in March 2025, including stock options and relocation package from Seattle to our Boston office, with specific emphasis on IP protection clauses."

Document background
The Director Employment Contract is a crucial document used when appointing senior executives to director-level positions in U.S. organizations. This agreement serves to protect both the company's interests and the director's rights by clearly defining the employment relationship, responsibilities, compensation structure, and termination procedures. It must comply with federal laws such as the Fair Labor Standards Act and state-specific employment regulations, while also addressing corporate governance requirements. The contract typically includes provisions for equity compensation, confidentiality, non-compete clauses (where permitted), and change in control scenarios.
Suggested Sections

1. Parties: Identifies the company and the director entering into the agreement

2. Background: States the context and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

4. Appointment and Term: Details of the director's role and duration of appointment

5. Duties and Responsibilities: Outlines the director's key duties, obligations, and authority

6. Compensation: Base salary, bonuses, and other financial benefits

7. Termination: Conditions and procedures for ending the employment relationship

8. Confidentiality: Protection of company information and trade secrets

Optional Sections

1. Equity Compensation: Stock options and share-based compensation provisions, applicable when offering equity-based compensation

2. Change in Control: Provisions governing situations involving company ownership changes, particularly relevant for public companies or those planning IPO/sale

3. Non-Compete: Restrictions on post-employment competition, to be included where permitted by state law and necessary for business protection

4. Relocation: Terms related to geographical movement and relocation requirements, included when position requires relocation

Suggested Schedules

1. Schedule A - Compensation Details: Detailed breakdown of all compensation elements including base salary, bonuses, and other financial benefits

2. Schedule B - Benefits Package: Comprehensive list of benefits and perquisites provided to the director

3. Schedule C - Stock Option Plan: Details of any equity compensation arrangements and stock option terms

4. Appendix A - Position Description: Detailed outline of role, responsibilities, and expectations of the director position

5. Appendix B - Corporate Policies: Key company policies applicable to the director's role and responsibilities

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Clauses


































Industries

Fair Labor Standards Act (FLSA): Federal law establishing standards for wage and hour requirements, though directors are typically exempt employees

Employee Retirement Income Security Act (ERISA): Federal law governing employee benefit plans, including retirement and health benefits for directors

Internal Revenue Code: Federal tax regulations affecting executive compensation, deferred compensation, and benefits

Securities Exchange Act: Federal law governing securities markets and protecting investors, particularly relevant for directors of public companies

Sarbanes-Oxley Act: Federal law establishing corporate governance and financial disclosure requirements for public companies

Dodd-Frank Wall Street Reform Act: Federal law implementing financial regulatory reform, including executive compensation and corporate governance provisions

Americans with Disabilities Act (ADA): Federal law prohibiting discrimination against individuals with disabilities in employment

Age Discrimination in Employment Act (ADEA): Federal law protecting individuals 40 and older from employment discrimination

Civil Rights Act of 1964 (Title VII): Federal law prohibiting employment discrimination based on race, color, religion, sex, and national origin

Family and Medical Leave Act (FMLA): Federal law providing eligible employees with unpaid, job-protected leave for specified family and medical reasons

State Employment Laws: Varying state-specific regulations governing employment relationships and worker protections

State Corporate Laws: State-specific regulations governing corporate formation, operation, and director responsibilities

State Non-Compete Regulations: State-specific rules governing the enforceability and scope of non-compete agreements

Company Bylaws: Internal corporate rules governing director duties, responsibilities, and corporate operations

Corporate Governance Guidelines: Company-specific policies outlining board operations and director responsibilities

Stock Exchange Listing Requirements: Rules and regulations imposed by stock exchanges for listed companies, including director independence requirements

SEC Regulations: Federal securities regulations governing disclosure requirements and director responsibilities in public companies

Fiduciary Duties: Legal obligations of loyalty and care that directors owe to the corporation and its shareholders

D&O Insurance Requirements: Directors and Officers liability insurance coverage requirements and limitations

Change in Control Provisions: Regulations and requirements governing director rights and obligations during corporate ownership changes

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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