Many companies will offer you some severance (money, insurance, stocks, etc.) in return for any number of items. Below is a short list of documents you might see, what they mean and how they could affect you.

THINGS THE COMPANY MAY WANT AND HOW THEY MAY AFFECT YOU

• Release of all claims against the company, officers, directors and others. Is it mutual? It should be.

• Confidentiality Agreement: You will not be able to share or take what you know with you.

  • Does this make finding a job harder?

  • Is the agreement itself confidential? Make it that way. You don’t want people talking about an agreement. You want no mention of it at all.

• Non-Disparagement Agreement: You will not be able to talk bad about the company. Is it mutual? Make it that way – a very reasonable request.

• Non-Compete: You cannot work for certain firms, or within a certain industry. How much longer and harder to find a job? Did you have one already. How does the severance agreement change or confirm it?

• If you are on a medical plan, they are legally obligated to provide COBRA information.

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POWER NOTE: If they want something from you, they do not have the power to enforce it.  Thus, they need you and you have leverage.

THINGS TO BE AWARE OF

• Pension: What happens to it?

• 401K. Are you fully vested? If so, the money is yours. If not, the non-vested money is not.

• Medical Insurance: You need it. COBRA is available for 18 months and VERY expensive. Make sure you understand what happens to your medical insurance and when.

• Stock options: Be aware of what happens. If you were about to vest, see if the company will do so. If you were fired right before vesting, you may have a legal claim.

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