Severance Or Termination Agreement

Retain an employment attorney, not your neighbor's daughter who practices water-rights law, to help you draft any agreements related to hiring and firing, both for full-time and part-time employees. Laws vary by state, so it's extremely important that your documents reflect current local law. Although the letter below contains good wording, do not use any part of it until and unless it has been reviewed by a competent employment lawyer.

I hope you never have to terminate a consultant, but if you do, you may find an agreement like this helpful. When I terminated a senior consultant, my attorney created this document. Severance—the consultant's pay upon leaving—was a big issue, because it was $25,000. That had to be spelled out carefully.

A wise mentor told me not to worry when consultants leave my firm, because "the clients who want to go with him go with him, and the clients who want to stay with you stay with you, and it all works out." I thought that was juvenile, but in retrospect I see it's true. No one leaving has ever caused me long-term problems. I re-focus on the joys of business at hand, and in a few short months the painful departure is forgotten. I resolved never to see this particular consultant again, and I never did.


Whereas, CareerLab, hereinafter ("Employer") and Evan M. Strohl (hereinafter "Strohl") desire to ease the transition for Strohl from employment with Employer, Employer and Strohl hereby agree to the terms set forth below:

1.In exchange for the receipt of the payments and other valuable benefits described in the AGREEMENT CONCERNING TRADE SECRETS AND COVENANT-NOT-TO-SOLICIT CAREERLAB CLIENTS dated October 10, 20-- and amended by Memo dated July 15, 20--, to which Strohl would not otherwise be entitled, Strohl hereby settles and releases Employer and all of its officers, directors, insurers, employees and agents, from each and every claim of any kind arising up to the date of execution of this Agreement, whether negligent or intentional, whether now known or unknown, including, but not limited to, claims relating to his employment with, compensation and benefits from, and termination of employment from Employer.  Without limiting the generality of the foregoing, this Agreement applies to any and all matters which could have been asserted in a lawsuit or in any state or federal judicial or administrative forum, up to the date of this Agreement, specifically, but not by way of limitation, including claims under the Equal Pay Act, the Fair Labor Standards Act, as amended, the National Labor Relations Act, as amended, Title VII of the Civil Rights Act of 1964, as amended, the Post-Civil War Reconstruction Acts, as amended (42 U.S.C. §§ 1981-1988), the Age Discrimination in Employment Act of 1967, as amended, the Americans with Disabilities Act of 1990, the Rehabilitation Act of 1973, as amended, the Employee Retirement Income Security Act of 1974, as amended, the Civil Rights Act of 1991, the Family and Medical Leave Act of 1993, any other federal statute, any state civil rights act, any state statutory wage claim such as C.R.S. § 8 4 104, any other statutory claim, any claim of wrongful discharge, any claim in tort or contract, any claim seeking declaratory, injunctive, or equitable relief, or any other claim of any type whatsoever, arising out of the common law of any state (hereafter "released claims"). Strohl further states and agrees that he has not experienced any illness, injury, or disability compensable or recoverable under the workers' compensation laws of the state of Colorado, and he agrees and represents that he will not file a workers' compensation claim asserting the existence of any such illness, injury, or disability. Strohl represents that he has had the opportunity to consulted with his attorney with respect to the agreements, representations, and declarations set forth above.

2.As a separate and independent agreement,Strohl and Employer mutually agree to arbitrate any controversy, pursuant to the National Rules for the Resolution of Employment Disputes of the American Arbitration Association.  Arbitration is the exclusive method to resolve any controversy between the parties, and the results of any such arbitration shall be final and binding.  The Arbitrator shall have the authority to award any relief available under law, and the burden of proof shall be the same as if the claim were being asserted in a judicial forum.  The Arbitrator shall have the authority to resolve disputes pursuant to the Federal Rules of Civil Procedure.  The only types of claims not covered by this arbitration agreement are claims for unemployment or workers' compensation benefits.  This agreement does not preclude the employee from retaining a lawyer, or from filing a charge or complaint with any local, state, or federal agency.  This agreement merely substitutes an arbitral forum for a judicial forum for the final resolution of any dispute.  This mutual arbitration agreement shall be immediately enforceable, and shall remain enforceable, regardless of whether the rest of this agreement is enforceable.

3.Strohl agrees that a mandatory prerequisite to asserting any claim settled or released under this Agreement is the return of all payments made pursuant to this Agreement.

4.As set forth and acknowledged in the AGREEMENT CONCERNING TRADE SECRETS AND COVENANT-NOT-TO-SOLICIT CAREERLAB CLIENTS dated October 10, 20—,Strohl's position with Employer gave him access to and familiarity with confidential information, business and trade secrets and business methods of Employer.  Employer and its successors would be irreparably injured, and the good will of Employer and its successors would be irreparably damaged, if Strohl were to disclose any confidential information, business or trade secrets or business methods concerning Employer or, if Strohl was to contact any existing client of Employer. Therefore,Strohl agrees and acknowledges his obligations concerning trade secrets and non-solicitation contained in the AGREEMENT CONCERNING TRADE SECRETS AND COVENANT-NOT-TO-SOLICIT CAREERLAB CLIENTS dated October 10, 20—, and agrees to abide by those obligations.

5.Strohl agrees that he will return to Employer, on or before June 27, 20—, all "Company Property," defined as including, but not limited to, motor vehicles, keys, access cards, files, memoranda, reports, software, credit cards, computer disks, instructional and management manuals, books, cellular phones and computer equipment, and all tangible Employer property not purchased from Employer and all documents containing Company Information. Strohl further  agrees that he will not, after June 27, 20—, retain copies, duplicates, reproductions or excerpts of Company Information, except to the extent the Company Information relates to his salary, benefits and/or compensation from Employer.

6.Strohl promises and covenants not to apply for employment, not to renew his application for employment, and not to accept any employment as an employee, independent contractor or otherwise, at Employer or any subsidiary or affiliated company or corporation, at any time in the future.  If this provision is breached by Strohl, his application will be rejected by Employer and any subsidiary or affiliated company or corporation; however, in the event he is employed as an employee, independent contractor or otherwise, in violation of this provision, he shall be subject to summary dismissal or discharge without any resulting liability for Employer or any subsidiary or affiliated company or corporation, and/or their respective shareholders, partners, members, directors, officers, employees and agents, and the respective successors thereof.

7.Strohl agrees that he will keep this Agreement and the AGREEMENT CONCERNING TRADE SECRETS AND COVENANT-NOT-TO-SOLICIT CAREERLAB CLIENTS dated October 10, 20—, and the terms thereof, strictly confidential, and that he will not communicate (orally or in writing) or in any way disclose same or make any representation (orally or in writing) regarding the terms of this Agreement, to any person, judicial or administrative agency or body, business entity or association, or anyone else, for any reason whatsoever, without the express written consent of Employer, unless (a) the communication or disclosure is compelled by law, or (b) the communication or disclosure is to his attorney and/or his financial advisor and is necessary for the rendition of professional advice to him (the restrictions stated in this paragraph shall automatically apply to the attorney and/or financial advisor and Strohl shall so advise the attorney and/or financial advisor).

Strohl acknowledges being advised that he should thoroughly review and understand the meaning and effect of this agreement, before signing and returning this Agreement. Strohl also acknowledges being advised to consult with an attorney prior to executing this Agreement. Strohl further acknowledge that, prior to signing this Agreement, he has been given at least 21 days to consider this Agreement with whomever he desires, including legal counsel, and that he has signed this Agreement freely, without coercion or promise of any benefit beyond that contained in this Agreement and the AGREEMENT CONCERNING TRADE SECRETS AND COVENANT-NOT-TO-SOLICIT CAREERLAB CLIENTS dated October 10, 20—. Strohl understands that he may revoke his acceptance of this Agreement within seven days after signing it, and that it shall not become effective or enforceable until after the seven-day period has expired.

Evan M. Strohl accepts this Agreement. 

Date: ______________________  


Employer, CareerLab accepts this Agreement.

Date: ______________________ 

William S. Frank, President

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