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Company Separation Agreement
"I need a Company Separation Agreement for our Chief Technology Officer who is leaving to join a competitor in March 2025; we need strong non-compete and IP protection clauses, along with a 6-month consulting arrangement for knowledge transfer."
1. Parties: Identification of the company and the separating party, including their legal details and addresses
2. Background: Brief history of the employment relationship and context for the separation
3. Definitions: Definitions of key terms used throughout the agreement
4. Effective Date and Timing: Specification of when the separation takes effect and any transition period
5. Terms of Separation: Core terms including resignation/termination details and mutual releases
6. Financial Settlement: Details of all financial payments, including final salary, severance, and benefits
7. Company Property: Requirements for return of company property and documentation
8. Confidentiality Obligations: Ongoing confidentiality requirements and handling of sensitive information
9. Non-Competition and Non-Solicitation: Restrictions on future employment and business activities
10. Reference and Communications: Agreement on how the separation will be communicated and reference provisions
11. Tax Implications: Statement on tax treatment of payments and responsibilities
12. General Provisions: Standard legal clauses including governing law, entire agreement, and amendments
13. Execution: Signature blocks and execution requirements
1. Share Options and Ownership: Required when the separating party holds company shares or stock options
2. Intellectual Property Rights: Needed when the employee has been involved in creating IP or has access to significant IP
3. Ongoing Cooperation: Used when the separated employee needs to assist with transition or future matters
4. Legal Proceedings: Required if there are ongoing or potential legal matters requiring cooperation
5. Benefits Continuation: Included when extending certain benefits beyond separation date
6. Mutual Non-Disparagement: Optional clause for high-level executives or sensitive separations
7. Consulting Arrangements: Used when the separated employee will continue providing services as a consultant
8. International Considerations: Required for employees with international responsibilities or multiple jurisdiction involvement
1. Schedule A - Financial Settlement Details: Detailed breakdown of all financial payments and their timing
2. Schedule B - Company Property Inventory: List of all company property to be returned
3. Schedule C - Continuing Obligations: Detailed list of ongoing obligations and restrictions
4. Schedule D - Benefits Summary: Details of benefits and their treatment post-separation
5. Appendix 1 - Resignation Letter: Standard form resignation letter if applicable
6. Appendix 2 - Release Form: Detailed release of claims form
7. Appendix 3 - Handover Documents: List of documents and information to be handed over during transition
8. Appendix 4 - Reference Template: Agreed format and content of employment reference if applicable
Authors
Technology
Manufacturing
Financial Services
Telecommunications
Textile Industry
Pharmaceutical
Energy and Resources
Professional Services
Real Estate and Construction
Retail and Consumer Goods
Agriculture and Food Processing
Education and Training
Healthcare
Logistics and Transportation
Human Resources
Legal
Finance
Executive Leadership
Operations
Information Technology
Sales
Marketing
Research and Development
Administration
Customer Service
Product Development
Quality Assurance
Business Development
Compliance
Chief Executive Officer
Chief Financial Officer
Chief Operating Officer
Director
General Manager
Department Head
Senior Manager
Project Manager
Technical Lead
Senior Software Engineer
Financial Controller
HR Manager
Sales Manager
Operations Manager
Regional Manager
Account Manager
Research Scientist
Legal Counsel
Marketing Manager
Business Development Manager
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