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Exit Agreement Template for Malaysia

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Key Requirements PROMPT example:

Exit Agreement

"I need an Exit Agreement for our Chief Technology Officer who will be leaving on March 15, 2025, with provisions for ongoing consultancy services for 6 months and treatment of unvested share options."

Document background
The Exit Agreement is a crucial document used in Malaysian business practice when formalizing the departure of employees or directors from an organization. It is particularly relevant in situations involving senior executives, sensitive positions, or complex termination arrangements. The agreement encompasses various aspects regulated by Malaysian employment law, including the Employment Act 1955 and Industrial Relations Act 1967. It typically addresses termination terms, financial settlements, confidentiality requirements, and post-employment obligations. The Exit Agreement serves to protect both employer and employee interests by clearly documenting the separation terms and preventing future disputes.
Suggested Sections

1. Parties: Identification of the employer company and the departing employee/director

2. Background: Context of the employment/appointment and reason for exit arrangement

3. Definitions: Key terms used throughout the agreement

4. Termination Date: Specific date and circumstances of employment/appointment termination

5. Final Payment and Benefits: Details of salary, benefits, and other payments due up to termination

6. Settlement Payment: Terms and quantum of any additional payment as part of the exit arrangement

7. Company Property: Requirements for return of company property and documents

8. Confidentiality: Ongoing obligations regarding confidential information

9. Non-Disparagement: Mutual obligations not to make negative statements

10. Tax Implications: Treatment of payments for tax purposes

11. Full and Final Settlement: Mutual release of claims

12. Governing Law: Confirmation of Malaysian law as governing law

Optional Sections

1. Share Options/Shareholding: Treatment of shares or share options, used when employee holds company shares

2. Non-Compete Obligations: Restrictions on future employment, used for senior executives or key employees

3. Board Resignation: Terms of resignation from board positions, used for director exits

4. Handover Arrangements: Process for transitioning responsibilities, used for key positions

5. Continuing Directorship/Consultancy: Terms of any ongoing relationship, used when maintaining partial involvement

6. Reference: Agreement on nature of references to be provided, used when specifically negotiated

7. Legal Costs: Agreement on payment of legal fees, used when negotiated as part of package

8. Insurance and Indemnity: Ongoing insurance coverage and indemnification, used for senior executives

9. Public Announcements: Agreement on public communications, used for senior or public-facing roles

Suggested Schedules

1. Schedule 1 - Payment Calculations: Detailed breakdown of all payments including salary, benefits, and settlement sum

2. Schedule 2 - Company Property: List of all company property to be returned

3. Schedule 3 - Share Options Details: Details of share options and their treatment

4. Schedule 4 - Resignation Letters: Pro-forma resignation letters for various positions

5. Schedule 5 - Handover Plan: Detailed plan for transition of responsibilities

6. Appendix A - Statutory Claims: List of statutory claims being settled

7. Appendix B - Benefits Summary: Summary of benefits and their treatment post-termination

Authors

Alex Denne

Head of Growth (Open Source Law) @ ºÚÁÏÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions


































Clauses






























Relevant Industries

Financial Services

Technology

Manufacturing

Professional Services

Healthcare

Education

Retail

Construction

Energy

Telecommunications

Real Estate

Mining and Resources

Transportation and Logistics

Media and Entertainment

Relevant Teams

Human Resources

Legal

Executive Management

Board of Directors

Finance

Operations

Corporate Secretariat

Compliance

Risk Management

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Managing Director

Executive Director

Department Head

Senior Manager

General Manager

Regional Director

Vice President

Chief Operating Officer

Chief Technology Officer

Senior Executive

Company Secretary

Head of Department

Division Manager

Industries









Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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