{"component": "clause", "props": {"groups": [{"samples": [{"hash": "dGxQfN2imyf", "uri": "/contracts/dGxQfN2imyf#basic-rule", "label": "Employment Agreement (Align Technology Inc)", "score": 22.338809967, "published": true}, {"hash": "lgmdHtDRhAk", "uri": "/contracts/lgmdHtDRhAk#basic-rule", "label": "Employment Agreement (Align Technology Inc)", "score": 21.0, "published": true}, {"hash": "knhHr462GTM", "uri": "/contracts/knhHr462GTM#basic-rule", "label": "Employment Agreement (Align Technology Inc)", "score": 21.0, "published": true}], "snippet": "The Company agrees to continue the Executive\u2019s Employment, and the Executive agrees to remain in Employment with the Company, from the commencement date set forth in Section 1(d) until the date when the Executive\u2019s Employment terminates pursuant to Subsection (b) below. The Executive\u2019s Employment with the Company shall be \u201cat will,\u201d and either the Executive or the Company may terminate the Executive\u2019s Employment at any time, for any reason, with or without Cause. Any contrary representations, which may have been made to the Executive shall be superseded by this Agreement. This Agreement shall constitute the full and complete agreement between the Executive and the Company on the \u201cat will\u201d nature of the Executive\u2019s Employment, which may only be changed in an express written agreement signed by the Executive and a duly authorized officer of the Company.", "snippet_links": [{"key": "the-company-agrees-to", "type": "clause", "offset": [0, 21]}, {"key": "employment-with-the-company", "type": "clause", "offset": [97, 124]}, {"key": "from-the-commencement-date", "type": "clause", "offset": [126, 152]}, {"key": "employment-terminates", "type": "definition", "offset": [215, 236]}, {"key": "pursuant-to-subsection", "type": "clause", "offset": [237, 259]}, {"key": "the-company-shall", "type": "clause", "offset": [303, 320]}, {"key": "company-may-terminate", "type": "clause", "offset": [367, 388]}, {"key": "at-any-time", "type": "clause", "offset": [416, 427]}, {"key": "for-any-reason", "type": "clause", "offset": [429, 443]}, {"key": "with-or-without-cause", "type": "clause", "offset": [445, 466]}, {"key": "contrary-representations", "type": "clause", "offset": [472, 496]}, {"key": "to-the-executive", "type": "clause", "offset": [523, 539]}, {"key": "by-this-agreement", "type": "clause", "offset": [560, 577]}, {"key": "agreement-between", "type": "clause", "offset": [633, 650]}, {"key": "executive-and-the-company", "type": "clause", "offset": [655, 680]}, {"key": "of-the-executive", "type": "clause", "offset": [705, 721]}, {"key": "by-the-executive", "type": "clause", "offset": [801, 817]}, {"key": "officer-of-the-company", "type": "definition", "offset": [840, 862]}], "size": 50, "hash": "672bf2c660d7ca2f5ad2573f2da38c6d", "id": 1}, {"samples": [{"hash": "ebOjnt776WE", "uri": "/contracts/ebOjnt776WE#basic-rule", "label": "Employment Agreement (Urs Corp /New/)", "score": 18.0, "published": true}, {"hash": "eQhCkPq3EBe", "uri": "/contracts/eQhCkPq3EBe#basic-rule", "label": "Employment Agreement (Urs Corp /New/)", "score": 18.0, "published": true}, {"hash": "8vn7iQ54yPX", "uri": "/contracts/8vn7iQ54yPX#basic-rule", "label": "Employment Agreement (Urs Corp /New/)", "score": 18.0, "published": true}], "snippet": "The Company agrees to employ the Employee, and the Employee agrees to remain in employment with the Company, from the date hereof until the date on which the Employee's employment terminates pursuant to Subsection (b), (c), (d), (e) or (f) below.", "snippet_links": [{"key": "to-employ", "type": "clause", "offset": [19, 28]}, {"key": "the-employee", "type": "clause", "offset": [29, 41]}, {"key": "employee-agrees", "type": "clause", "offset": [51, 66]}, {"key": "employment-with-the-company", "type": "clause", "offset": [80, 107]}, {"key": "date-hereof", "type": "clause", "offset": [118, 129]}, {"key": "employment-terminates", "type": "definition", "offset": [169, 190]}, {"key": "pursuant-to-subsection", "type": "clause", "offset": [191, 213]}], "size": 23, "hash": "e399cddeef2e31e523cdfa318e113162", "id": 2}, {"samples": [{"hash": "a5eqrEGbimk", "uri": "/contracts/a5eqrEGbimk#basic-rule", "label": "Severance Agreement (Essential Therapeutics Inc)", "score": 18.0, "published": true}, {"hash": "4m18CjaLKTE", "uri": "/contracts/4m18CjaLKTE#basic-rule", "label": "Severance Agreement (Essential Therapeutics Inc)", "score": 18.0, "published": true}, {"hash": "4EXdb9jFWSg", "uri": "/contracts/4EXdb9jFWSg#basic-rule", "label": "Severance Agreement (Essential Therapeutics Inc)", "score": 18.0, "published": true}], "snippet": "Any other provision of this Agreement notwithstanding, the Company shall not be required to make any payment or property transfer to, or for the benefit of, the Employee (under this Agreement or otherwise) that would be nondeductible by the company by reason of Section 20G of the Internal Revenue Code of 1986, as amended (the \"Code\"), or that would subject the Employee to the excise tax described in Section 4999 of the Code. All calculations required by this Section 9 shall be performed by the independent auditors retained by the Company most recently prior to the Change in Control (the \"Auditors\"), based on information supplied by the Company and the Employee, and shall be binding on the Company and the Employee. 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For purposes of this Section 6, the \u201cReduced Amount\u201d will be the amount, expressed as a present value, which maximizes the aggregate present value of the Payments without causing any Payment to be nondeductible by the Company because of Section 280G of the Code.", "snippet_links": [{"key": "in-the-event", "type": "clause", "offset": [0, 12]}, {"key": "the-accounting-firm", "type": "clause", "offset": [18, 37]}, {"key": "transfer-by-the-company", "type": "clause", "offset": [69, 92]}, {"key": "by-the-company-for", "type": "clause", "offset": [153, 171]}, {"key": "federal-income-tax-purposes", "type": "clause", "offset": [172, 199]}, {"key": "provisions-concerning", "type": "clause", "offset": [215, 236]}, {"key": "excess-parachute-payments", "type": "definition", "offset": [238, 263]}, {"key": "the-code", "type": "clause", "offset": [284, 292]}, {"key": "the-regulations", "type": "clause", "offset": [309, 324]}, {"key": "provided-that", "type": "definition", "offset": [342, 355]}, {"key": "section-6", "type": "definition", "offset": [401, 410]}, {"key": "present-value", "type": "definition", "offset": [426, 439]}, {"key": "all-payments", "type": "definition", "offset": [443, 455]}, {"key": "reduced-amount", "type": "definition", "offset": [500, 514]}, {"key": "for-purposes-of-this-section", "type": "clause", "offset": [516, 544]}, {"key": "payment-to", "type": "clause", "offset": [699, 709]}], "size": 15, "hash": "698b7b9f020fc361835902ebf68f32ff", "id": 7}, {"samples": [{"hash": "gxwokkhiH0M", "uri": "/contracts/gxwokkhiH0M#basic-rule", "label": "Employment Agreement (Vanda Pharmaceuticals Inc.)", "score": 21.0, "published": true}, {"hash": "dWig7V4lEx7", "uri": "/contracts/dWig7V4lEx7#basic-rule", "label": "Employment Agreement (Vanda Pharmaceuticals Inc.)", "score": 21.0, "published": true}, {"hash": "bB6TCXtOaQp", "uri": "/contracts/bB6TCXtOaQp#basic-rule", "label": "Employment Agreement (Vanda Pharmaceuticals Inc.)", "score": 21.0, "published": true}], "snippet": "The Company agrees to continue the Employee\u2019s Employment, and the Employee agrees to remain in Employment with the Company, from the date of this Agreement until the date when the Employee\u2019s Employment terminates pursuant to Subsection (b) or (c) below. The Employee\u2019s Employment with the Company shall be \u201cat will,\u201d meaning that either the Employee or the Company may terminate the Employee\u2019s Employment at any time, with or without cause. Any contrary representations which may have been made to the Employee shall be superseded by this Agreement. This Agreement shall constitute the full and complete agreement between the Employee and the Company on the \u201cat will\u201d nature of the Employee\u2019s Employment, which may only be changed in an express written agreement signed by the Employee and a duly authorized officer of the Company.", "snippet_links": [{"key": "the-company-agrees-to", "type": "clause", "offset": [0, 21]}, {"key": "employee-agrees", "type": "clause", "offset": [66, 81]}, {"key": "employment-with-the-company", "type": "clause", "offset": [95, 122]}, {"key": "date-of-this-agreement", "type": "definition", "offset": [133, 155]}, {"key": "employment-terminates", "type": "definition", "offset": [191, 212]}, {"key": "pursuant-to-subsection", "type": "clause", "offset": [213, 235]}, {"key": "the-company-shall", "type": "clause", "offset": [285, 302]}, {"key": "company-may-terminate", "type": "clause", "offset": [357, 378]}, {"key": "at-any-time", "type": "clause", "offset": [405, 416]}, {"key": "with-or-without-cause", "type": "clause", "offset": [418, 439]}, {"key": "contrary-representations", "type": "clause", "offset": [445, 469]}, {"key": "the-employee-shall", "type": "clause", "offset": [498, 516]}, {"key": "by-this-agreement", "type": "clause", "offset": [531, 548]}, {"key": "agreement-between", "type": "clause", "offset": [604, 621]}, {"key": "employee-and-the-company", "type": "clause", "offset": [626, 650]}, {"key": "nature-of-the", "type": "clause", "offset": [668, 681]}, {"key": "by-the-employee", "type": "clause", "offset": [770, 785]}, {"key": "officer-of-the-company", "type": "definition", "offset": [808, 830]}], "size": 15, "hash": "fd0533418d7d3f177c79514fd2ec8370", "id": 8}, {"samples": [{"hash": "knxyK1lQKV8", "uri": "/contracts/knxyK1lQKV8#basic-rule", "label": "Employment Agreement (Lattice Semiconductor Corp)", "score": 21.0, "published": true}, {"hash": "iYc2Wq6Vwcv", "uri": "/contracts/iYc2Wq6Vwcv#basic-rule", "label": "Employment Agreement (Lattice Semiconductor Corp)", "score": 21.0, "published": true}, {"hash": "hE7UjFHqXY3", "uri": "/contracts/hE7UjFHqXY3#basic-rule", "label": "Employment Agreement (Lattice Semiconductor Corp)", "score": 21.0, "published": true}], "snippet": "The Company may terminate the Executive\u2019s Employment with or without Cause, by giving the Executive 30 days advance notice in writing. The Executive may terminate his Employment by giving the Company 30 days advance notice in writing. The Executive\u2019s Employment shall terminate automatically in the event of his death.", "snippet_links": [{"key": "company-may-terminate", "type": "clause", "offset": [4, 25]}, {"key": "the-executive", "type": "clause", "offset": [26, 39]}, {"key": "with-or-without-cause", "type": "clause", "offset": [53, 74]}, {"key": "notice-in-writing", "type": "clause", "offset": [116, 133]}, {"key": "in-the-event-of", "type": "definition", "offset": [292, 307]}], "size": 12, "hash": "3fb90dc40070691fa50a6e22cf0571e6", "id": 9}, {"samples": [{"hash": "95P6trSaQro", "uri": "/contracts/95P6trSaQro#basic-rule", "label": "Employment Agreement (Peth Jack W)", "score": 18.0, "published": true}, {"hash": "6orBufzlGet", "uri": "/contracts/6orBufzlGet#basic-rule", "label": "Employment Agreement (BRG Acquisition Corp)", "score": 18.0, "published": true}, {"hash": "4IkGccuWAgV", "uri": "/contracts/4IkGccuWAgV#basic-rule", "label": "Employment Agreement (Peth Jack W)", "score": 18.0, "published": true}], "snippet": "The Company agrees to continue Executive's employment, and Executive agrees to remain in employment with the Company, from the Commencement Date set forth in Section 1(d) until the date when Executive's employment terminates pursuant to Section 2(b) below (the \"Employment Period\"). Executive's employment with the Company shall be \"at will,\" which means that either Executive or the Company may terminate Executive's employment at any time for any reason, with or without Cause. This Agreement shall constitute the full and complete agreement between Executive and the Company on the \"at will\" nature of Executive's employment, which may only be changed in an express written agreement signed by Executive and the Chief Executive Officer.", "snippet_links": [{"key": "the-company-agrees-to", "type": "clause", "offset": [0, 21]}, {"key": "employment-with-the-company", "type": "clause", "offset": [89, 116]}, {"key": "from-the-commencement-date", "type": "clause", "offset": [118, 144]}, {"key": "employment-terminates", "type": "definition", "offset": [203, 224]}, {"key": "pursuant-to-section", "type": "clause", "offset": [225, 244]}, {"key": "employment-period", "type": "clause", "offset": [262, 279]}, {"key": "the-company-shall", "type": "clause", "offset": [311, 328]}, {"key": "company-may-terminate", "type": "clause", "offset": [384, 405]}, {"key": "at-any-time", "type": "clause", "offset": [429, 440]}, {"key": "for-any-reason", "type": "clause", "offset": [441, 455]}, {"key": "with-or-without-cause", "type": "clause", "offset": [457, 478]}, {"key": "this-agreement", "type": "clause", "offset": [480, 494]}, {"key": "agreement-between", "type": "clause", "offset": [534, 551]}, {"key": "executive-and-the-company", "type": "clause", "offset": [552, 577]}, {"key": "nature-of", "type": "clause", "offset": [595, 604]}, {"key": "by-executive", "type": "clause", "offset": [694, 706]}, {"key": "the-chief-executive-officer", "type": "clause", "offset": [711, 738]}], "size": 11, "hash": "fd129ad111c0f788f1500c3b761c88b7", "id": 10}], "next_curs": "ClMSTWoVc35sYXdpbnNpZGVyY29udHJhY3Rzci8LEhZDbGF1c2VTbmlwcGV0R3JvdXBfdjU2IhNiYXNpYy1ydWxlIzAwMDAwMDBhDKIBAmVuGAAgAA==", "clause": {"parents": [["term-of-employment", "Term of Employment"], ["limitation-on-payments", "Limitation on Payments"], ["employment-period", "Employment Period"], ["parachute-payments", "Parachute Payments"], ["section-280g", "Section 280g"]], "children": [], "title": "Basic Rule", "size": 451, "id": "basic-rule", "related": [["\u2587\u2587\u2587\u2587\u2587\u2587\u2587-rule", "\u2587\u2587\u2587\u2587\u2587\u2587\u2587 Rule", "\u2587\u2587\u2587\u2587\u2587\u2587\u2587 Rule"], ["basic-life", "Basic Life", "Basic Life"], ["regulation-gg", "REGULATION GG", "REGULATION GG"], ["special-rule", "Special rule", "Special rule"], ["compliance-with-treasury-regulations", "Compliance with Treasury Regulations", "Compliance with Treasury Regulations"]], "related_snippets": [], "updated": "2026-04-30T06:05:53+00:00", "also_ask": ["What are the essential elements that must be included in a 'Basic Rule' clause to ensure clarity and enforceability?", "How can the 'Basic Rule' clause be strategically drafted or negotiated to favor my client\u2019s interests?", "What are the most common risks or ambiguities associated with 'Basic Rule' clauses, and how can they be mitigated?", "How do courts typically interpret and enforce 'Basic Rule' clauses in similar agreements?", "How does the 'Basic Rule' clause compare to analogous provisions in other jurisdictions or standard contracts?"], "drafting_tip": "State the rule explicitly to prevent misinterpretation, define key terms to avoid ambiguity, and specify exceptions to ensure comprehensive coverage.", "explanation": "The \"Basic Rule\" clause establishes the fundamental principle or standard that governs the agreement or a specific section of it. Typically, this clause sets out the default expectations, such as the primary obligations of the parties or the general process to be followed unless otherwise specified. For example, it might state that payment is due within a certain period after invoicing, or that services will be provided according to a set schedule. Its core practical function is to provide a clear, default framework that guides the parties' actions and decisions, ensuring consistency and reducing ambiguity in the interpretation of the contract."}, "json": true, "cursor": ""}}