Common use of Additional Severance Benefits Clause in Contracts

Additional Severance Benefits. (a) Cash-out of the value of unvested stock options. If the Employer terminates the Executive’s employment without Cause or if the Executive terminates employment with Good Reason before full vesting of stock options then held by the Executive, the Executive shall be entitled to receive from the Employer an amount in cash equal to the intrinsic value of the Executive’s unvested stock options as of the effective date of termination. For this purpose intrinsic value means the per share fair market value of the Corporation common stock minus the option exercise price per share, multiplied by the number of shares acquirable by the unvested options. If the common stock is traded on an exchange or over the counter, fair market value shall mean the closing price on the trading day immediately before the date of termination. If the common stock is not traded on an exchange or over the counter, the per share fair market value of the Corporation common stock shall be determined by the Corporation’s board of directors in good faith. Amounts payable under this paragraph (a) shall be paid in a single lump sum 30 days after termination of the Executive’s employment or, if section 4.1(b) applies and a six-month delay is required under Internal Revenue Code section 409A, on the first day of the seventh month after the month in which the Executive’s employment terminates.

Additional Severance Benefits. (a) Cash-out of the value of unvested stock options. If the Employer terminates the Executive’s employment without Cause or if the Executive terminates employment with Good Reason before full vesting of stock options then held by the Executive, the Executive shall be entitled to receive from the Employer an amount in cash equal to the intrinsic value of the Executive’s unvested stock options as of the effective date of termination. For this purpose intrinsic value means the per share fair market value of the Corporation common stock minus the option exercise price per share, multiplied by the number of shares acquirable by the unvested options. If the common stock is traded on an exchange or over the counter, fair market value shall mean the closing price on the trading day immediately before the date of termination. If the common stock is not traded on an exchange or over the counter, the per share fair market value of the Corporation common stock shall be determined by the Corporation’s board of directors in good faith. Amounts payable under this paragraph (a) shall be paid in a single lump sum 30 days after termination of the Executive’s employment or, if section 4.1(b) applies and a six-month payment delay is required under by Internal Revenue Code section 409A, on the first day of the seventh month after the month in which the Executive’s employment terminates.