Executive Separation Agreement
(Pro-executive) (PA)

Summary

This template is an executive separation agreement that sets forth the terms and conditions governing an executive's termination of employment with an employer in Pennsylvania, drafted more favorably toward the executive. This template includes practical guidance, drafting notes, and alternate and optional clauses. The purpose of this agreement is to provide guidance on the terms of a standard separation agreement in Pennsylvania. 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 employer-friendly agreement, see Executive Separation Agreement (Pro-employer) (PA). For additional resources, see Executive Separation Agreement Drafting, Executive Separation Agreement Negotiation (Pro-employer), Executive Separation Agreement Negotiation (Pro-executive), 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) • Activision Blizzard, Inc. (September 10, 2021) • API Group Corp. (September 7, 2021)