Consultancy Election Clause Samples

Consultancy Election. (a) At any time during the Employment Term, Executive may change his position from that of an employee of the Company to that of part-time executive consultant to the Company by delivering an election (the “Consultancy Election”) to the Company. The Consultancy Election shall specify the date (the “Consultancy Election Effective Date”) on which the Consultancy Election shall be effective, which date shall not be less than thirty (30) days after the date of the Consultancy Election. On the Consultancy Election Effective Date, (i) Executive’s employment with the Company shall terminate, (ii) Executive shall no longer have the position and title with the Company of Chief Executive Officer or the duties associated therewith as contemplated by Section 4.2 hereof, (iii) Executive shall become an executive consultant to the Company on the terms set forth in Section 4.5(b) of this Agreement, and (iv) in such capacity as an executive consultant to the Company, Executive shall have such duties as may from time to time be mutually agreed upon by the Company and Executive. The initial term during which Executive shall serve as an executive consultant to the Company, as set forth in the immediately preceding sentence, shall be for a period of one (1) year commencing on the Consultancy Election Effective Date, which initial term shall be extended automatically for successive one (1)-year periods, unless Executive or the Company sooner terminates such initial term or any extension thereof by notice to the other party. Such initial term and any extension thereof, as provided in this Section 4.5(a), are referred to in this Agreement as the “Consultancy Term.” (b) For each year during the Consultancy Term, the Company shall pay Executive remuneration in an amount equal to twenty-five percent (25%) of Executive’s Total Compensation in effect immediately prior to the Consultant Election Effective Date. During the Consultancy Term, Executive shall continue to remain eligible for all benefits and expense reimbursements provided in Sections 3.3, 3.4, 3.5 and 3.6 of this Agreement. During the Consultancy Term, Executive shall devote such time as may be necessary for the performance of those duties, consistent with Executive’s role as an executive consultant to the Company, reasonably requested by the Company; however, in no event shall Executive be required to devote more than five hundred (500) hours of service to the Company in any calendar year during the Consultancy Term.