A non- employee directors benefit plans trust agreement is a kind of an agreement which is made between a company’s non-employee directors and the other administrators of the company so as to lay down the various details of the benefit trust plans which are to be given to the non-employee directors. Any such trust agreement is made or drafted to establish the fact that the company wishes to grant version benefits to the non-employee directors based on certain clauses.
A non-employee directors benefit plans trust agreement consists of the information about the company, the non-employee directors, the details of the benefit trust plan, the eligibility criteria for it and the commencement date and termination date of the agreement. Such agreements also contain the various covenants and promises which the company and non-employee directors have to abide by. Generally such agreements are legally binding and formal in nature and the clauses cannot be violated.