Severance Agreement

SEVERANCE AND GENERAL RELEASE AGREEMENT

(Delaware – Single Employee Separation)

TABLE OF CONTENTS

1. Definitions
2. Severance Benefits and Consideration
3. Release of Claims
4. Representations
5. Covenants
6. Default and Remedies
7. Protected Rights and Risk Allocation
8. Dispute Resolution
9. General Provisions
10. Execution Block

1. DEFINITIONS

“Agreement” means this Severance and General Release Agreement, including any attached exhibit signed by both Parties.

“Company” means [FULL LEGAL NAME OF EMPLOYER], a [STATE OF INCORPORATION] [ENTITY TYPE], and the persons and entities identified in Section 3.1.

“Employee” means [EMPLOYEE FULL LEGAL NAME], whose employment with the Company will terminate effective [SEPARATION DATE].

“Effective Date” has the meaning set forth in Section 3.7.

“Severance Amount” means the gross aggregate sum of $[DOLLAR AMOUNT], less applicable withholdings, payable pursuant to Section 2.1.

“Revocation Period” means the seven (7) consecutive calendar days following Employee’s execution of this Agreement.

[Add additional defined terms as required.]

2. SEVERANCE BENEFITS AND CONSIDERATION

2.1 Severance Payment. Subject to Employee’s timely execution and non-revocation of this Agreement, the Company shall pay the Severance Amount to Employee in [LUMP SUM / EQUAL INSTALLMENTS] beginning on the first regular payroll date after the Effective Date.

2.2 Health-Coverage Subsidy. [If applicable] The Company shall pay [NUMBER] months of the employer portion of eligible continuation-coverage premiums for Employee and eligible dependents, subject to timely election, the governing plan, and applicable law.

2.3 Outplacement Assistance. [Optional] The Company will provide up to [DOLLAR AMOUNT OR HOURS] of professional outplacement services, to be used within [TIME PERIOD].

2.4 Additional Consideration. The consideration in Sections 2.1–2.3 is in addition to anything Employee is already entitled to receive and is exchanged for the release and lawful promises in this Agreement.

2.5 Final Wages and Other Amounts Already Owed. Final wages, reimbursable expenses, vested benefits, and accrued leave owed under a controlling plan, policy, or contract are not severance consideration and are not conditioned on signing this Agreement. When employment ends for any reason, earned wages are due on the later of (a) the next date on which wages through the last day worked would have been paid under the Company’s regular pay cycle if employment had continued or (b) three business days after the last day worked. Payment must use the usual pay channels or, at Employee’s request, mail to the address Employee provides. 19 Del. C. § 1103. Employee identifies any known unpaid-compensation issue here: [________________________________].

3. RELEASE OF CLAIMS

3.1 General Release. In exchange for the additional consideration, Employee, on behalf of Employee and Employee’s heirs, executors, administrators, and assigns, releases the Company, its parents, subsidiaries, affiliates, predecessors, successors, assigns, and their respective officers, directors, managers, employees, and agents from claims, known or unknown, based on acts occurring on or before the date Employee signs this Agreement, including claims under:

• the federal Age Discrimination in Employment Act (“ADEA”);
• the Delaware Discrimination in Employment Act, including 19 Del. C. § 711; and
• any other federal, Delaware, or local employment statute or common-law theory, to the extent the claim may lawfully be waived.

3.2 Scope Exclusions. Nothing in this Agreement waives:

(a) rights to unemployment or workers’ compensation benefits;

(b) vested rights in a qualified retirement plan;

(c) claims arising after Employee signs this Agreement;

(d) rights to enforce this Agreement; or

(e) any right or claim that cannot lawfully be waived.

3.3 Company Release. [Optional – include only if negotiated] The Company releases Employee from claims based on acts occurring on or before the date Employee signs this Agreement, excluding claims for fraud, embezzlement, or willful misconduct.

3.4 ADEA-Specific Terms. The ADEA waiver is written to be understood, specifically names the ADEA, excludes later-arising claims, and is supported by consideration in addition to anything Employee is already entitled to receive.

3.5 Written Advice to Consult Counsel. The Company hereby advises Employee in writing to consult with an attorney of Employee’s choosing before signing this Agreement.

3.6 Consideration Period. Employee has at least 21 calendar days to review and consider the final Agreement before signing. If this waiver is offered in connection with an exit incentive or other employment termination program offered to a group or class of employees, replace 21 days with 45 calendar days and, at the beginning of that period, provide a written disclosure calculated to be understood by the average eligible employee that identifies:

(a) the decisional unit, class, or group covered by the program;

(b) the program’s eligibility factors and applicable time limits;

(c) the job titles and individual ages of all employees eligible or selected for the program; and

(d) the individual ages of employees in the same job classification or organizational unit who are not eligible or selected.

Material changes to the final offer restart the applicable consideration period unless the Parties agree otherwise. Employee may sign sooner only by a knowing and voluntary choice that the Company has not induced through fraud, misrepresentation, a threat to withdraw or change the offer before the period ends, or better terms for early signature.

3.7 Revocation and Effective Date. Employee may revoke this Agreement within seven (7) calendar days after signing by delivering written notice to [COMPANY CONTACT AND ADDRESS OR EMAIL]. The seven-day period may not be shortened. This Agreement does not become effective or enforceable until the eighth calendar day after Employee signs it without revocation (the “Effective Date”).

4. REPRESENTATIONS

4.1 Mutual Authority. Each Party represents that it has authority to enter into and perform this Agreement.

4.2 Pending Matters. Employee identifies any pending lawsuit, arbitration, charge, or complaint against the Company here: [________________________________]. This disclosure does not restrict any protected agency communication or participation.

4.3 Tax Treatment. The Company will make required withholdings. Benefits and tax counsel must review the payment schedule before use; this template makes no tax-compliance representation to Employee.

4.4 Return of Company Property. Employee will return Company property and delete Company data from personal devices within [NUMBER] days, except material that must be preserved by law, litigation hold, or written instruction. Return of property does not delay final wages or other amounts already owed.

5. COVENANTS

5.1 Confidentiality of Company Information. Employee shall protect legitimate trade secrets and non-public proprietary information. This Section does not restrict truthful testimony, protected communications, government reports, or other conduct protected by law. Employee may disclose the payment amount to Employee’s attorney, tax advisor, spouse, or as required by law.

5.2 Mutual Non-Disparagement. During [TIME PERIOD], neither Party shall knowingly make a false statement of fact intended to harm the other Party’s reputation. This Section does not restrict truthful statements, government communications, whistleblower reports, testimony, or other conduct protected by law.

5.3 Future Cooperation. On reasonable advance notice, Employee will provide reasonable factual cooperation concerning matters within Employee’s personal knowledge. Cooperation may not unreasonably interfere with other work, require privileged or protected disclosure, or restrict truthful testimony or government communications. The Company will reimburse reasonable out-of-pocket expenses and compensate substantial time at $[RATE] per hour.

5.4 Prior and Proposed Restrictive Covenants. No prior restrictive covenant is automatically reaffirmed by this Agreement. Any proposed noncompetition, customer nonsolicitation, confidentiality, or similar post-employment restraint requires separate Delaware legal review and must be identified expressly here: [________________________________].

6. DEFAULT AND REMEDIES

6.1 Material Breach. A Party defaults by materially breaching a lawful obligation under this Agreement.

6.2 Notice and Cure. The non-breaching Party shall provide written notice and a ten-day cure period if the breach can be cured.

6.3 Remedies. A Party may pursue lawful contract remedies for a proven material breach. No remedy creates a release-challenge penalty, requires repayment merely for filing or participating in an agency matter, or restricts a protected communication. This template creates no prevailing-party fee shift.

7. PROTECTED RIGHTS AND RISK ALLOCATION

7.1 Government Communications and Proceedings. Nothing in this Agreement prevents Employee from filing a charge or complaint, communicating with or providing information to a government agency, or participating in an agency investigation or proceeding. Nothing interferes with agency enforcement authority. Any effect of the release on individual monetary recovery is governed by applicable law.

7.2 ADEA Waiver Challenges. Nothing imposes a condition precedent, penalty, attorney-fee liability, damages, or another limitation that adversely affects Employee’s right to challenge the validity of the ADEA waiver.

7.3 No Employee Risk-Shifting. This Agreement does not impose employee indemnity, a liability cap, a force-majeure excuse for payment, a severance clawback, or a penalty for a good-faith challenge to the release.

8. DISPUTE RESOLUTION

8.1 Governing Law. This Agreement shall be governed by federal law to the extent federal law controls and otherwise by Delaware law, without regard to conflict-of-law principles.

8.2 Forum. An action concerning this Agreement may be filed in a Delaware state or federal court with subject-matter and personal jurisdiction and proper venue.

8.3 Arbitration. No arbitration clause is included. If selected, use a separately reviewed addendum addressing formation, costs, discovery, remedies, and governing law.

8.4 Jury Trial Waiver. No predispute jury waiver is included in this template.

8.5 Protected Rights. Nothing in this Article restricts agency access, protected communications, or claims and remedies that cannot be waived privately.

9. GENERAL PROVISIONS

9.1 No Admission. This Agreement is a compromise and is not an admission of liability or wrongdoing.

9.2 Amendment; Waiver. No amendment or waiver is effective unless in writing and signed by both Parties.

9.3 Assignment. Employee may not assign or delegate obligations under this Agreement. The Company may assign this Agreement in connection with a merger, sale, or other business transaction.

9.4 Successors and Assigns. This Agreement binds and benefits the Parties and their respective successors and permitted assigns.

9.5 Severability. If a provision is held invalid or unenforceable, the remaining provisions remain in effect to the extent permitted by law. This clause does not authorize expansion of a release or restraint.

9.6 Entire Agreement. This Agreement is the entire understanding concerning its subject matter and supersedes prior oral or written understandings concerning that subject matter. No separate restrictive covenant or other prior obligation is incorporated unless expressly identified in Section 5.4.

9.7 Counterparts; Electronic Signatures. This Agreement may be executed in counterparts. The Parties agree to accept signatures delivered by PDF or an electronic-signature platform.

10. EXECUTION BLOCK

IN WITNESS WHEREOF, the Parties have executed this Severance and General Release Agreement as of the dates set forth below.

Sources and References

• 29 U.S.C. § 626(f)
• 29 C.F.R. § 1625.22
• 19 Del. C. § 1103
• 19 Del. C. § 711
• Official Delaware Code Title 19 PDF (current through June 11, 2026)