Confidential Settlement Agreement Template

VIEWS: 1,899 PAGES: 5

More Info
									This is a template that can be used to foster the terms of a settlement when a
settlement has been reached by the parties of a lawsuit. This template includes the
settlement amount, a release providing that the settling party will be discharged and
acquitted, and which state law will govern. Additionally, this document provides that the
settlement terms will remain confidential. This template should be used by individuals
or entities that have reached a settlement to a claim or pending lawsuit to memorialize
the terms and maintain confidentiality.

This Confidential Settlement Agreement (hereinafter referred to for convenience as the
“Agreement”) is made ______________ [Instruction: insert date] (hereafter, the “Effective
Date”) by and between ______________ [Instruction: insert name of first party], (“PARTY
1”), located at ______________ [Instruction: insert location] and ______________
[Instruction: insert name of second party] (“PARTY 2”), located at ______________
[Instruction: insert location]. PARTY 1 and PARTY 2 are collectively referred to herein as the


Whereas:        PARTY 1 and PARTY 2 previously entered into an arrangement, whereby located
                at ______________ [Instruction: Set forth terms of arrangement. If a court
                case has been filed, cite to the court case].

Whereas:        A dispute arose between the Parties in connection the terms of such arrangement
                (the “Dispute”)

Whereas:        The Parties desire to settle the Dispute in accordance with the terms of this

Now Therefore, for good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, and intending to be legally bound hereby, the parties hereby agree as

    1. Payment of Settlement Amount: PARTY 1 agrees to pay PARTY 2 the following as a
       full and complete settlement and compromise of the Dispute:
           a. ______________ [Instruction: Insert terms for payment, including timing]

    2. Release:
          a. In exchange for the promises and covenants set forth herein, PARTY 2 for itself
              and its successors, predecessors, related companies, leasing agents, executors,
              administrators, representatives, insurers, attorneys, agents and assigns, forever
              releases, acquits and discharges PARTY 1 (including, but not limited to, its
              respective departments, divisions, subsidiaries, corporate affiliates, trustees,
              directors, officers, insurers, employees, servants, attorneys, shareholders, partners,
              successors, assigns, customers, clients and agents [present and former]) from any
              and all claims, liabilities, demands, costs, expenses, attorneys’ fees, damages,
              indemnities, obligations, causes of action of any kind whatsoever (whether based
              upon any legal or equitable theory whether contractual, based on any tort,
              common law, statutory, Federal , State or otherwise), known and unknown,

© Copyright 2012 Docstoc Inc.                                                            2
               suspected and unsuspected, disclosed and undisclosed, arising out of or in any
               way related to the Dispute.
            b. PARTY 2 acknowledges and represents that it may have claims against PARTY
               1, of which at the time of execution of this Agreement it has no knowledge or
               suspicion. PARTY 2 agrees and represents that this release is specifically
               intended to and does extend to any and all such claims in any way based upon or
               connected with or related to agreements, actions events or conduct occurring or
               existing at any time prior to the Effective Date which relate, directly or indirectly,
               to the provision consulting and marketing services by PARTY 2 to PARTY 1
               and/or the Dispute, whether or not now known, claimed or suspected by it.

            [Comment: If the User is in California, the User will want to set forth that
            “PARTY 2 expressly waives the benefit of Section 1542 of the California Civil
            Code, which provides: A general release does not extend to claims which
            creditor does not know or suspect to exist in his favor at the time of executing the
            release, which if known to him must have materially affected his settlement with
            the debtor. PARTY 2 expressly waives and relinquishes any and all rights and
            benefits which it may have under, or which may be conferred upon it by the
            provisions of Section 1542 of the California Civil Code, as well as under any
            other similar state or federal statute or common law principle, to the fullest
            extent that they may lawfully waive such rights or benefits. The parties hereto
            acknowledge that the foregoing waiver of California Civil Code Section 1542 was
            separately bargained for and is a key element of the Agreement.]

    3. Termination of Agreement: The Parties agree that upon the date of this Agreement, all
       prior agreements between PARTY 1 and PARTY 2 shall be terminated in their entirety
       and shall be of no further force or effect.
    4. Applicable law: This agreement is governed by, and construed in accordance with, the
       laws of the state of _______________ [Instruction: Insert applicable state].
    5. Authority to Execute: Each person executing this Settlement Agreement represents that it
       is authorized to execute this Settlement Agreement. Each person executing this
       Settlement Agreement on behalf of an entity, other than an individual executing this
       Settlement Agreement on his or her own represents that it is authorized to execute this
       Settlement Agreement.
    6. Confidentiality: The parties agree that the terms of this Agreement and the settlement
       itself shall remain confidential and neither this Agreement nor its terms shall be disclosed
       to any third parties other than attorneys or accountants for the parties, governmental
       entities, or such other third parties as might be necessary for the execution, or
       enforcement of the Agreement, or which may arise out of its application.

© Copyright 2012 Docstoc Inc.                                                             3
    7. Final Agreement: This Agreement constitutes the entire agreement and understanding of
       the signatory parties with respect to the subject matters herein, and supercedes and
       replaces any prior agreements and understandings, whether written or oral, between and
       among them, with respect to such matters.
    8. This Agreement may be executed jointly, or in counterparts, and shall be effective only
       when accompanied by the original or facsimile signatures of all of the signatory parties

                THIS AGREEMENT.

________________ [Instruction: Insert Business Name of PARTY 1]

________________ [Instruction: Insert Printed Name and Title (if applicable)]

________________ [Instruction: Insert Street address, city, state and Zip code]

Date: _________________, ___

________________ [Instruction: Insert Business Name of PARTY 2]

________________ [Instruction: Insert Printed Name and Title (if applicable)]

________________ [Instruction: Insert Street address, city, state and Zip code]
Date: _________________, ___

© Copyright 2012 Docstoc Inc.                                                        4

To top