Are electronic signatures valid?

Yes. Electronic signatures are generally valid under the ESIGN Act and UETA where adopted, provided intent, consent, attribution, and retention requirements are met.

When is notarization required?

Most Exit Agreements do not require notarization, but notarization or witness attestation may be advisable for certain acknowledgements or where state law or specific clauses require it.

What if signers dispute signatures?

Preserve the audit trail (timestamps, IP, authentication method). Stronger identity checks reduce disputes; courts consider the totality of proof when adjudicating signature claims.

How do I revoke or cancel an agreement?

Revocation rights depend on contract language and applicable law; a written, signed amendment or rescission by all parties is the typical approach to cancel or modify terms.

Can restrictive covenants be enforced?

Enforceability depends on state law reasonableness tests, geographic and time limitations, and whether adequate consideration was provided at signing.

How long should records be kept?

Keep executed agreements and audit trails for at least the applicable federal retention period and longer where state law, industry rules, or potential litigation risk justify.

Exit Agreement

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EXIT AGREEMENT

This Exit Agreement (the Agreement) is entered into as of by and between Company Name: with principal place of business at and Employee Name: residing at (each a Party and together the Parties).

RECITALS

WHEREAS, Employee's last day of active employment with Company is ; and

WHEREAS, the Parties wish to set forth the terms and conditions under which Employee will separate employment and to resolve any and all claims arising out of the employment relationship through the effective date set forth below; and

WHEREAS, Company desires to provide certain consideration to Employee in exchange for Employee's execution of this Agreement and compliance with the covenants herein.

NOW, THEREFORE

In consideration of the mutual promises contained in this Agreement and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

1. DEFINITIONS

1.1 "Effective Date" means the date on which the final signature required to accept this Agreement is executed by both Parties and the last revocation period, if any, has expired. The tentative Effective Date for the purposes of timing calculations is .

2. TERMINATION AND SEVERANCE

2.1 Termination. Employee's employment with Company shall terminate effective as of Employee's last day of employment set forth in Section 1. The Parties agree that such termination is without admission of liability by either Party.

2.2 Severance Payment. Subject to Employee's compliance with the terms of this Agreement, Company will pay Employee a severance amount of to be paid in a lump sum on or before . The severance payment is subject to customary payroll deductions and withholding as required by applicable law.

Accrued Obligations Benefits Continuation (if any)

3. RELEASE AND WAIVER

3.1 Mutual Release. Except as expressly provided in this Agreement, Employee, on behalf of Employee and Employee's heirs, executors, administrators and assigns, hereby fully and forever releases and discharges Company and its affiliates, subsidiaries, officers, directors, employees, agents and representatives from any and all actions, causes of action, claims, demands, liabilities, obligations, attorneys' fees and expenses, damages and costs of every nature and description, whether known or unknown, suspected or unsuspected, arising out of or in any way connected with Employee's employment or separation from employment through the Effective Date.

3.2 Exceptions. Notwithstanding the foregoing, this release does not apply to (a) any rights to accrued vested benefits under any qualified retirement plan; (b) rights that cannot be waived as a matter of law; or (c) obligations created by this Agreement.

Employee Acknowledgment of Consideration

Employee acknowledges receipt of the consideration specified in Section 2 and affirms that Employee has had the opportunity to consult with counsel prior to signing. Employee further acknowledges that the consideration is in addition to, and not duplicative of, any compensation previously earned.

4. CONFIDENTIALITY AND NON-DISCLOSURE

4.1 Confidential Information. Employee shall not, at any time, disclose to any person or entity any Confidential Information of Company. "Confidential Information" includes business plans, financial information, trade secrets, customer and supplier lists, and any non-public information learned by Employee during the course of employment.

4.2 Duration. The confidentiality obligations set forth in this Section 4 shall survive the termination of Employee's employment and shall continue for a period of years, except as otherwise required by law.

5. NON-DISPARAGEMENT

Employee agrees not to make any false or disparaging statements, whether written or oral, about Company, its officers, directors or employees. Company agrees that its officers and directors will not make any false or disparaging statements about Employee. This Section does not prevent truthful statements required by law or cooperation with governmental investigations.

6. RETURN OF COMPANY PROPERTY

Employee shall deliver to Company all Company property in Employee's possession, including but not limited to keys, access cards, laptops, mobile devices, documents and files, no later than .

7. COOPERATION

8. TAXES

All payments made under this Agreement shall be subject to applicable withholding and payroll taxes. Employee is solely responsible for any taxes that may be due with respect to payments or benefits received pursuant to this Agreement, except to the extent required otherwise by applicable law.

Tax Withholding Instructions (if any)

9. INDEMNIFICATION

Each Party shall indemnify, defend and hold harmless the other Party from and against any liabilities, losses, damages or expenses (including reasonable attorneys' fees) arising out of a breach of this Agreement by the indemnifying Party.

10. NOTICES

All notices required or permitted under this Agreement shall be in writing and sent to the contact information for each Party set forth below:

Company Notice Address Employee Notice Address

11. GOVERNING LAW; VENUE

This Agreement shall be governed by and construed in accordance with the laws of the State of , without regard to conflict of law principles. The Parties agree that the state and federal courts located in that state shall have exclusive jurisdiction over any dispute arising out of or relating to this Agreement.

12. ENTIRE AGREEMENT; SEVERABILITY

This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior agreements and understandings, whether written or oral. If any provision of this Agreement is held invalid or unenforceable, such invalidity or unenforceability shall not affect the remaining provisions, which shall continue in full force and effect.

13. AMENDMENT; WAIVER; COUNTERPARTS

This Agreement may only be amended or modified by a written instrument signed by both Parties. No waiver of any provision of this Agreement shall be effective unless in writing and signed by the waiving Party. This Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument.

Additional Terms

14. CERTIFICATIONS

Each Party represents and warrants that: (a) it has the full right, power and authority to enter into this Agreement; (b) the person signing on its behalf is authorized to do so; and (c) this Agreement constitutes a legal, valid and binding obligation enforceable in accordance with its terms.

For Company

Party Label:

By:

Date:

For Employee

Party Label:

By:

Date:

What an Exit Agreement Is and when it applies

An Exit Agreement (also called a separation agreement or termination agreement) is a written contract that documents the terms by which an employment, contractor, or business relationship ends. It typically addresses final compensation, release of claims, confidentiality, return of property, benefit continuation, noncompete or nonsolicitation clauses where permitted, and any post‑termination obligations. Exit Agreements create enforceable rights and obligations when signed by the parties, and they are commonly used to reduce litigation risk, clarify final payments, and define future restrictions or cooperation obligations between the parties.

Why an Exit Agreement matters for employers and departing parties

A clear Exit Agreement reduces uncertainty, documents consideration, and records mutual releases or restrictions. It helps employers protect confidential information and intellectual property, and it helps departing parties secure agreed compensation and a defined transition. Proper execution and retention support enforceability and evidentiary value in later disputes.

Typical users and stakeholders for an Exit Agreement

Each party should confirm authority to sign, review state law limits on noncompetes, and record the executed agreement securely for future reference.

Human resources and people ops teams managing final pay, benefits, and release paperwork for departing staff.
In‑house or outside counsel drafting enforceable release language and reviewing restrictive covenants for compliance.
Departing employees, contractors, or executives negotiating severance, references, stock vesting, or transition duties.

Step-by-step: preparing and finalizing an Exit Agreement

Follow these steps to create, review, sign, and store a legally effective Exit Agreement.

01

Draft: Prepare terms, severance, release scope, and transition obligations.
02

Review: Have counsel review enforceability and state law compliance.
03

Execute: Collect signatures, dates, and any required acknowledgements.
04

Store: Save final signed copies and audit trail securely for retention.

Updating or amending an Exit Agreement

Use a clear amendment process to avoid ambiguity when changing exit terms after execution.

01

Identify Changes:

List specific provisions to be revised or added.

02

Document Amendment:

Draft concise amendment or restated agreement language.

03

Obtain Consent:

Secure signature from all original parties to confirm mutual assent.

04

Date Amendments:

Use MM/DD/YYYY and note effective date of the change.

05

Witness or Notary:

Include notarization if state law or parties require it.

06

Replace Copies:

Distribute the updated executed document to all parties and update records.

Common signing and routing workflow for Exit Agreements

A typical digital workflow reduces friction while preserving an audit trail and optional advanced authentication.

Upload: Sender uploads the finalized agreement to the eSignature platform.
Prepare: Place signature, initial, date, and optional conditional fields.
Authenticate: Signer verifies identity using email, SMS, or stronger methods.
Complete: Signed parties receive final PDF and audit certificate.

Recommended platform settings for electronic Exit Agreements

Configure signing settings to match your legal, HR, and records retention policies before sending.

Field	Configuration
Authentication Method	Email link or SMS code; use stronger ID for sensitive roles.
Signature Type	Standard e‑signature with audit trail; PKI if nonrepudiation required.
Template Fields	Use required fields, conditional fields, and reusable templates.
Record Retention	Enable automatic archiving and exportable audit reports.

Technical considerations for eSigning and eSubmission

Ensure the platform can produce a tamper‑evident signed PDF and an exportable audit trail to meet legal and recordkeeping obligations.

File formats: PDF, DOCX supported
Integrations: Salesforce, NetSuite, Google Workspace
Security: TLS in transit; AES‑256 at rest

Core clauses and components to include in a professional Exit Agreement

A comprehensive Exit Agreement balances clarity for departing parties and protection for the organization; include enforceable clauses tailored to the role.

Severance Terms

Specify gross/net amount, payment schedule, conditions precedent, and tax withholding treatment to avoid later disputes or misunderstandings about compensation.

Release of Claims

Describe the scope of any general release, including covered claim categories and effective dates, to ensure mutual finality and limit future litigation.

Confidentiality

Define confidential information, duration of obligations, and permitted disclosures to preserve trade secrets and regulatory compliance.

Return of Property

List company assets to be returned and timelines to prevent retention of proprietary materials after separation.

Restrictive Covenants

Include noncompete, nonsolicit, or nondisparagement terms where enforceable under applicable state law, with clear geographic and temporal limits.

Cooperation and Transition

Set expectations for post‑termination cooperation, including document handover, knowledge transfer, and reasonable assistance for litigation or audits.

Security and compliance points relevant to electronic Exit Agreements

Encryption in transit: TLS 1.2/1.3

Encryption at rest: AES‑256

Audit trail: IP, timestamp, and action log

Certifications: SOC 2 Type II

HIPAA support: BAA available

21 CFR Part 11: Supported where required

Legal risks and consequences of a defective Exit Agreement

Unenforceable release: Claims survive

Invalid restrictive covenants: May be voided

Tax mischaracterization: IRS adjustments possible

Data exposure: Confidentiality breaches

Litigation costs: Potentially significant

Ineffective execution: Signature disputes

Common mistakes when preparing an Exit Agreement

Using vague consideration language that fails to show sufficient bargained‑for exchange and undermines a release.
Overbroad restrictive covenants that exceed state limits, increasing the risk the clause will be invalidated by a court.
Failing to obtain correct signatory authority for corporate signers, which can render the agreement voidable.
Inadequate recordkeeping of the signed agreement and audit trail, making enforcement and proof of execution more difficult.

Practical examples of digital signing in agreement workflows

Organizations often rely on eSignature workflows to finalize separation terms while preserving a secure audit trail.

John Butler, Fertility Centers

A midsize health provider adopted electronic agreements for administrative exits.

Saved staff hours and reduced mailing delays.
The airSlate SignNow team has been exceptional, responsive, the API has been great, and we're extremely happy that we chose airSlate SignNow as a company.

Tim Martin, Martin Properties

A real estate operator used digital execution for executive separations.

Templates ensured consistent releases across properties.
I can process and execute all of these documents online with 100% compliance and built-in security. Whether on mobile or working offline, I can get forms back to their necessary parties efficiently.

Comparison: eSignature vendor pricing and core capabilities

This table compares starting prices and selected capabilities for common eSignature vendors; signNow is listed first per vendor order conventions.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies	Varies	Varies	Varies
Bulk Send	Yes	Yes	Yes	Yes	Yes
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 envelopes/user/yr	Varies	Varies	Varies

Common questions about Exit Agreements and eSigning

Answers to frequent practical and legal questions about executing, amending, and enforcing Exit Agreements.

Need help? Contact support

Are electronic signatures valid?
Yes. Electronic signatures are generally valid under the ESIGN Act and UETA where adopted, provided intent, consent, attribution, and retention requirements are met.
When is notarization required?
Most Exit Agreements do not require notarization, but notarization or witness attestation may be advisable for certain acknowledgements or where state law or specific clauses require it.
What if signers dispute signatures?
Preserve the audit trail (timestamps, IP, authentication method). Stronger identity checks reduce disputes; courts consider the totality of proof when adjudicating signature claims.
How do I revoke or cancel an agreement?
Revocation rights depend on contract language and applicable law; a written, signed amendment or rescission by all parties is the typical approach to cancel or modify terms.
Can restrictive covenants be enforced?
Enforceability depends on state law reasonableness tests, geographic and time limitations, and whether adequate consideration was provided at signing.
How long should records be kept?
Keep executed agreements and audit trails for at least the applicable federal retention period and longer where state law, industry rules, or potential litigation risk justify.

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