Negotiate Fair Termination Settlement

TO:  T. Randolph Edwards
FROM:  Robert Wolfe
DATE:  April 18, 20––
SUBJECT:  Outplacement, Director of Finance

This memo is a follow-up to our meeting of April 12th in which we discussed the arrangements necessary for me to make a smooth transition from Worldwide Manufacturing to another company. Here are the 10 points we covered:

  1. My employment as Director of Finance will continue at my current salary level through January 2nd, and I will be free, at my discretion, to take time off for personal business.
  1. I will receive a lump sum severance payment amounting to 12 months' salary (based on my current rate of pay) the day I leave the company.
  1. All my benefits (Medical and Dental Insurance, Matching Donations, Thrift Plan) will continue for one year after my departure.
  1. All bonuses (gainsharing, executive incentive paid at target achievement level) will be paid for 12 months after my departure, as though I were a full-time employee. Bonuses to be paid when other employees receive their checks.
  1. You will permanently remove my recent poor performance review from personnel file, and I will review and approve my personnel records before leaving.
  1. Senior management will give my reason for leaving as "Position eliminated by corporate restructuring caused by sale of company."
  1. Worldwide Manufacturing will provide me outplacement assistance of $16,500 (15% of annual compensation) within 30 days of joint approval of this agreement.
  1. I will vest 100% in pension and 401K plans.
  1. Existing stock options will take effect upon my departure.
  1. I will be free to cease active employment at any time before January 2nd, if I accept a job offer.

Randy, I have enjoyed our work together, and am sorry to see it coming to an end. I am confident this package is fair to all of us, and that it represents a sound basis for a smooth transition.

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