Learn how to negotiate an appropriate severance package, especially if you have an existing job. [+] It is an agreement. The executive severance pay contract contains a provision regarding termination when the employee is dismissed “for an irreemly reason.” The definition of “material reason” will be contained in the agreement and will likely invalidate the agreement if the executive is fraudulent and grossly negligent, fails to fulfill its obligations, can embezzrly money and encompasses many other acts that may be included in it. Any definition that doesn`t meet these tests should really cause a leader to worry, and no lawyer representing the executive should fail to question a sloppy or overly broad definition of “cause.” (In a future perspective, I`ll dwell on what will happen if an executive`s agreement mentions the “reason” for the dismissal, but leaves “the cause” undefined.) Finally, a severance pay agreement usually involves the release of rights, which means that the manager agrees not to sue the company for a large number of reasons such as discrimination based on age, race or sex or unlawful dismissal. This, too, must be verified by the executive`s lawyer. For example, a CEO or executive does not wish to release from the company his rights to compensation or O&D coverage in the event of a claim after the termination of his employment contract. . . .