The Executive Severance Agreement is a critical document used when terminating the employment relationship with senior executives in Denmark. It serves as a comprehensive framework for managing executive departures, whether through mutual agreement, retirement, or other circumstances. The agreement must comply with Danish employment law, particularly the Salaried Employees Act (Funktionærloven), while addressing complex compensation elements including base salary continuation, bonus treatments, equity compensation, and benefits. This document is essential for risk management and ensuring clear terms for both parties, typically incorporating specific Danish legal requirements regarding notice periods, holiday pay calculations, and tax treatments. The agreement becomes particularly important in situations involving listed companies or regulated industries where transparency and proper governance of executive departures is crucial.

1. Parties: Identification of the company and the executive, including their respective addresses and registration details

2. Background: Brief context of the executive's employment and the circumstances leading to the severance agreement

3. Definitions: Key terms used throughout the agreement, including 'Termination Date', 'Severance Period', and 'Cause'

4. Termination Date and Status: Specification of the last day of employment and immediate transition arrangements

5. Severance Payment: Details of the severance package, including base salary continuation, calculation method, and payment schedule

6. Statutory and Contractual Payments: Treatment of accrued holiday pay, bonus payments, and other statutory entitlements under Danish law

7. Benefits Continuation: Details of any continued benefits during the severance period, including health insurance and company perks

8. Tax and Social Security: Tax treatment of payments and respective obligations of the parties regarding social security contributions

9. Confidentiality Obligations: Ongoing duties regarding company confidential information and trade secrets

10. Company Property: Requirements for return of company property and documentation

11. Release of Claims: Mutual release of claims between parties, subject to Danish law requirements

12. Reference and Communications: Agreement on employment references and internal/external communications regarding the departure

13. Governing Law and Jurisdiction: Confirmation of Danish law application and jurisdiction for disputes

14. Entire Agreement: Standard integration clause confirming this agreement supersedes previous arrangements