A Severance Agreement details the mutual agreement between an employer and employee in which employee’s relationship with employer is severed. This agreement sets out the specific terms of the agreement including the date of termination, obligations the company agrees to fulfill and any severance bonus employee will receive. It also sets out the specifics regarding continuing insurance coverage and employee’s waiver of any claims against the company. It is imperative that a Severance Agreement is set out in writing rather than by oral representation. A well-written Severance Agreement will prove invaluable in the event there are misunderstandings between the parties regarding the termination of employment.

This Severance Agreement contains the following important provisions:

• Parties: Sets out the names of the employer and employee, type of entity and date of agreement;
• Termination Date: Specific date of termination of employment;
• Existing Company Obligations: Detailed obligations of company including payment of salary, reimbursement of expenses and accrued vacation and sick time;
• Employee Obligations: Existing obligations of employee including return of all company property (cell phone, computer, software, computer files and confidential information) which are set out in detail on a schedule to this agreement;
• Severance Bonus/Health Insurance: Amount of any severance bonus due employee and eligibility of continuing health benefits;
• Release/Waiver of Claims: Employee releases company from all claims and causes of action and waives any rights or claims under the Age Discrimination in Employment Act;
• Non-Solicitation: Employee agrees not to solicit any company employee for at least one year from the date of this agreement;
• Confidentiality: Neither employer nor employee will disclose any terms or conditions set out under this Severance Agreement except to those specifically listed, i.e., spouse or attorney;
• Signatures: Both employer and employee must sign and date this Severance Agreement.

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This attorney-prepared packet contains:

1. General Information
2. Step-by-Step Instructions
3. Severance Agreement

State Law Compliance: This form complies with the laws of all states