The proportional bonus is particularly important if the termination is to take place more than six months a year. A severance agreement for executives may also include an appropriate non-compete clause. This clause can prevent managers from divulging trade secrets or finding a job with a competitor for a year or more, which is sometimes related to the duration of the redundancy package. Clients regularly ask us for help in designing exit agreements with outgoing executives. (For the purposes of this article, we will use “founder,” “CEO,” and “long-time leader” interchangeably to refer to a leader who has played an important role in the design of an organization, either during its inception and long tenure, or by management for a long tenure.) A withdrawal agreement, as discussed in this article, differs in several respects from a separation agreement and a declassification agreement. (You can find information about the latter type of contract in the sidebar below.) It is unclear how many outgoing executives are getting an exit deal and what conditions generally apply. The terms of these agreements are considered confidential and, unless a party intentionally or accidentally violates the confidentiality rules of a model agreement, it is not available for consultation. In our experience, only a small percentage of CEO departures are governed by the terms of an exit agreement. The use of withdrawal agreements most often occurs in circumstances that we will describe below. Most are designed by a lawyer who works with an executive, a few board chairs, and perhaps an accountant who specializes in compensation and nonprofit law. .