Executive Separation Agreement
(Pro-employer) (TX)

Summary

This template is an executive separation agreement for use in Texas that sets forth the terms and conditions governing an executive's termination of employment with an employer, drafted more favorably toward the employer. This template includes practical guidance, drafting notes, and alternate and optional clauses. This template provides guidance on the terms of a standard separation agreement under Texas law; however, not all provisions will be applicable to your employer-employee relationship. In addition, Section 409A of the Internal Revenue Code and existing contractual obligations to, and commitments by, the employee will need to be considered and may significantly constrain the ability to restructure the post-employment rights and obligations of the parties. For an executive-friendly agreement, see Executive Separation Agreement (Pro-executive) (TX). For additional practical guidance, see Executive Separation Agreement Drafting, Executive Separation Agreement Negotiation (Pro-employer), Executive Separation Agreement Negotiation (Pro-executive). For a list of related content, see the Severance Benefits Resource Kit and the Departing Employees Resource Kit. To compare state and federal laws on restrictive covenants and terminations in employment agreements, see the Employee Benefits & Executive Compensation State Law Comparison Tool. Separation Agreement Precedents Following are links to some separation agreement precedents filed with the SEC: • Northrup Grumman Corp. (February 5, 2020) • API Group Corp. (September 7, 2021) • Activision Blizzard, Inc. (September 10, 2021)