OPTIONAL SEVERANCE PAYMENT Clause Samples
The Optional Severance Payment clause allows an employer to offer a severance payment to an employee upon termination of employment, even if such payment is not otherwise required. Typically, this clause outlines the conditions under which the payment may be made, such as the amount, timing, and any requirements for the employee to sign a release of claims. Its core function is to provide flexibility for the employer to facilitate a smoother separation process and potentially limit future disputes by offering compensation in exchange for certain agreements from the departing employee.
OPTIONAL SEVERANCE PAYMENT. Executive upon the event of the Corporation's obligation to pay severance, may in Executive's sole discretion and option elect to accept a number of shares of registered stock of the Corporation determined by dividing the severance amount due by $1.00 which number of shares when delivered shall be in full payment and satisfaction of the Corporation's obligation to Executive.