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Executive Discipline: Sample 'For Cause' Termination Clause

0804cover.jpgExecutive Discipline

Sample 'For Cause' Termination Clause

Feature story: Executive Discipline

The following is a sample list of items that will qualify as termination for cause:

(i) breach of a fiduciary responsibility owing to the Company or any of its affiliates;

(ii) disclosure to unauthorized persons of proprietary information regarding the business or operations of the Company or any of its affiliates other than in good faith or in the ordinary course of business;

(iii) failure to report to or perform work for any significant period of time, other than for reasonable medical and personal excuses;

(iv) willful and repeated refusal to perform such material duties as may be delegated or assigned to you commensurate with your position with the Company and its affiliates;

(v) material willful misconduct or gross negligence in the performance of your duties to the Company or any of its affiliates;

(vi) commission of a crime resulting in pecuniary loss to the Company or any of its affiliates, including, without limitation, theft, embezzlement, or fraud, commission of any felony that brings the Company or any of its affiliates into public disrepute or involves the Company or any of its affiliates or entering into a conspiracy to commit any crime;

(vii) material breach of this letter agreement by you. If your employment is terminated For Cause, the Company will provide you with a letter briefly stating the reason or reasons for your For Cause termination.

Source: Richard Block, Drier LLP.

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