EMPLOYMENT SEPARATION AGREEMENT1. THE PARTIES. This Employment Separation Agreement (“Agreement”) is made and effective as of [DATE] (“Effective Date”) by and between:

Employer: [EMPLOYER NAME], with a mailing address of [EMPLOYER ADDRESS] (“Employer”), AND
Employee: [EMPLOYEE NAME], with a mailing address of [EMPLOYEE ADDRESS] (“Employee”).

Collectively, the Employer and Employee shall be referred to as the “Parties.” It is known that the Parties wish to separate and discontinue their employment relationship in an amicable manner. Therefore, in consideration of the mutual promises and covenants contained herein, it is agreed as follows:

2. EMPLOYMENT STATUS. The last day of employment shall be [DATE] (“Employee’s Last Day”). The Employer has paid the Employee all payments due through [DATE], and all standard deductions and regular payroll tax withholdings have been made.

3. SEVERANCE. In consideration of the promises set forth in this Agreement, the Employee shall receive: [DESCRIBE SEVERANCE].

4. RETURN OF PROPERTY. The Employee shall be obligated to return the following company property by [DATE]: [LIST PROPERTY].

5. NON-COMPETE. After the Effective Date or the Employee’s Last Day, whichever is later, the Employee shall be bound to the following:

☐ – NO NON-COMPETE requirement.
☐ – A non-compete in effect for [#] months, during which time the Employee agrees not to engage in or accept employment with any business that competes with the Employer within [RESTRICTED AREA].

6. BENEFITS. The Employer agrees that any and all benefits that were provided to the Employee shall continue until [DATE].

7. INDEMNIFICATION. The Parties agree to release each other from any and all claims arising out of the Employee’s employment or termination. The Employee specifically releases the Employer, its affiliates, successors, officers, directors, employees, agents, benefit plans, and related representatives from any known or unknown claims, including but not limited to:

• Statutory claims;
• Claims arising under the United States or state constitutions;
• Common law claims;
• Claims for compensation;
• Claims for personal injury; and
• Claims for costs, interest, and attorneys’ fees.

8. PRIOR AGREEMENTS. All prior confidentiality, non-disclosure, non-compete, and non-solicitation agreements remain in effect. From the Effective Date forward, the Employee also agrees not to use or disclose the Employer’s proprietary or confidential information or trade secrets.

9. CONFIDENTIALITY. The Employee must keep this Agreement confidential and may not disclose its terms, negotiations, or payments, except to a spouse, domestic partner, attorney, tax advisor, as required by law, or when responding to a court or government inquiry.

10. BREACH. Any breach of this Agreement by the Employee shall be deemed a material breach. In the event of a breach or threatened breach, the Employer may seek injunctive relief and recover reasonable costs and attorneys’ fees, in addition to any other remedies available.

11. DISPARAGING REMARKS. The Parties agree not to disparage each other. The Employee further agrees not to make or publish any false, defamatory, or disparaging statements about the Employer, its business, employees, officers, or directors.

12. REVIEW. Employee agrees and recognizes that the Employee was given at least 21 days to review this Agreement with legal counsel and that the Employer recommends that this Agreement be reviewed with a licensed attorney.

a) Revocation Period. The Employee may revoke this Agreement within 7 days of the Effective Date. If revoked, any payments made to the Employee must be promptly returned to the Employer. If any law requires a longer revocation period, that minimum period will apply.

13. SEVERABILITY. If any provision of this Agreement is found illegal, invalid, or unenforceable, the remaining provisions shall remain in full force and effect, and the affected provision shall be deemed removed.

14. GOVERNING LAW. This Agreement shall be governed by the laws of the State of [STATE].

I, THE EMPLOYEE, ACKNOWLEDGE THAT I HAVE CAREFULLY READ THIS AGREEMENT AND UNDERSTAND ALL OF ITS TERMS, INCLUDING THE FULL AND FINAL RELEASE AND WAIVER OF CLAIMS SET FORTH ABOVE. I FURTHER ACKNOWLEDGE THAT I HAVE VOLUNTARILY ENTERED INTO THIS SEVERANCE AGREEMENT AND GENERAL RELEASE, THAT I HAVE NOT RELIED UPON ANY REPRESENTATION OR STATEMENT, WRITTEN OR ORAL, NOT SET FORTH IN THIS AGREEMENT, AND THAT I HAVE BEEN GIVEN THE OPPORTUNITY AND BEEN ENCOURAGED TO HAVE THIS AGREEMENT REVIEWED BY AN ATTORNEY.

Employer Signature: ____________________ Date: [MM/DD/YYYY]
Print Name: [PRINTED NAME]

Employee Signature: ____________________ Date: [MM/DD/YYYY]
Print Name: [PRINTED NAME]