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ŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻ Calgary, Alberta |
TERMINATION / SEVERANCE OF EMPLOYMENT The oil and gas industry is highly dependent upon the individuals who undertake the work, such that it is extremely important that the contractual arrangements between those individuals and the company need to be clearly defined and established, including when such an employment relationship is concluded, whether by termination or severance. In such circumstances, an employment termination agreement or severance agreement might be entered into so as to better conclude and settle otherwise uncertain terms associated with the end of an employment relationship. What should be noted is that employment termination / severance agreements need to be particularized to the circumstances, such that it deals with the issues associated with the individual employment relationship and the consequences arising from its end. Particular aspects seen in such contracts have included: "xxx's voluntary resignation and termination of employment with Company shall be effective on xxx (the 'Termination Date'). Effective xxx, xxx shall resign as an officer, director and member of executive committees of the Company and its subsidiaries and affiliated companies in which he holds office, directorship and/or membership; however, from xxx, until the Termination Date, xxx will continue to perform the duties reasonably agreed to between him and the Company's CEO. In connection with his resignation as an officer, director and member of executive committees, xxx agrees to sign a resignation letter to be placed in the corporate minute books of the Company, its subsidiaries and affiliates. The parties agree that such resignation and continuation of employment, which results in a transfer of position and an overall substantial and material reduction in the nature and scope of his duties and responsibilities, shall not be an Involuntary Termination of xxx's employment with the Company. The parties agree that as of the Effective Date, there has occurred no event that is or could result in an Involuntary Termination of xxx's employment with the Company." "Debt Cancellation. All principal in the amount of xxx Dollars, together with accrued interest under xxx's Stock Finance Documents and Loan Commitment Documents are canceled and forgiven as of xxx, and shall be reported by the Company as taxable income to xxx." "Company Confidential Information. xxx's employment relationship with the Company creates a relationship of confidence and trust with respect to any information of a confidential or secret nature that is or has been conceived, developed, reduced to practice, made, invented, created, or acquired during xxx's employment relationship with the Company and is owned or possessed by the Company or is or has been learned by xxx from the Company or its subsidiaries, affiliates or licensees and their suppliers and customers (all of which is referred to herein as the "Company Confidential Information"). The term Company Confidential Information includes not only technical information but also marketing plans, product plans, business strategies, financial information, personnel information, and customer lists. At all times both during the employment relationship with the Company and thereafter, xxx shall keep and hold such Company Confidential Information in strict confidence and trust, and will not use or disclose any of such Company Confidential Information without the prior written consent of the Company, except as otherwise allowed by this Agreement." "Non-Inducement. After the Termination Date, xxx shall not be subject to any restriction or limitation on his ability to engage in any business, whether on his own behalf or on the behalf of another, provided, however, for a period of two years following the Termination Date, xxx shall not, directly or indirectly, on his own behalf or on the behalf of another, induce any employee of the Company or any Affiliate to terminate his or her employment with the Company or such Affiliate. Provided, however, this shall not prohibit the hiring of any such employee if the Company terminates such employee or such employee terminates employment with the Company without such inducement by xxx." For more information on the legal services of Neufeld Legal P.C. with respect to employment-related contracts or to schedule an appointment, contact us at Christopher@OilGasLawyer.ca or 403-400-4092. * * * * * Employment-related agreements pertaining to oil and gas sector: Executive Employment Agreement |
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