Severance Benefits Upon Termination of Employment Clause Samples
The "Severance Benefits Upon Termination of Employment" clause defines the compensation and benefits an employee is entitled to receive if their employment ends under specified circumstances, such as being laid off or terminated without cause. Typically, this clause outlines the amount of severance pay, continuation of health benefits, and any other entitlements, and may set conditions like signing a release of claims. Its core function is to provide financial security to employees after involuntary job loss and to clarify the employer’s obligations, thereby reducing disputes and ensuring a smoother transition for both parties.
Severance Benefits Upon Termination of Employment. If, within three (3) years after a Change in Control, the Officer's employment is terminated by the Company without Cause or by the Officer due to a Quit With Good Reason, the Company shall pay to the Officer, a Termination Payment in a lump sum cash payment within thirty (30) days following the later of the Officer's termination of employment or the occurrence of the Change in Control. Payments made to the Officer hereunder as a Termination Payment shall be subject to applicable federal, state and local tax withholding requirements. If the Officer's employment is terminated due to his death or Disability, that will not be deemed a termination of employment by the Company without Cause or by a Quit With Good Reason.
Severance Benefits Upon Termination of Employment. If, while this --------------------------------------------------- Agreement is in effect, the Employee: (a) is involuntarily terminated by the Company and the Bank without Cause during the Post-Change in Control Period; (b) resigns her employment with the Company and the Bank for Good Reason during the Post-Change in Control Period; or (c) resigns for any reason during the thirteenth (13th) month of the Post-Change in Control Period (each, a "Qualifying Termination of Employment"), the Bank shall pay to the Employee in a lump-sum an amount equal to two times the sum of (a) the Employee's salary as in effect at the effective time of the termination of employment and (b) the amount of the bonus earned by the Employee during the prior calendar year (the "Lump Sum Payment"). The Lump Sum Payment is sometimes referred to in this Agreement as the "Severance Benefit." If the aggregate present value (determined as of the date of the Change in Control in accordance with the provisions of Section 280G of the Internal Revenue Code, as amended, and the rules and regulations promulgated thereunder (collectively, the "Code")) of both the Severance Benefit and all other payments to the Employee in the nature of compensation which are contingent on a change in ownership or effective control of the Company or the Bank or in the ownership of a substantial portion of the assets of the Company or the Bank (the "Aggregate Severance") would result in a "parachute payment," as defined under Section 280G of the Code, then the Aggregate Severance shall not be greater than an amount equal to 2.99 multiplied by Employee's "base amount" for the "base period," as those terms are defined under Section 280G. In the event the Aggregate Severance is required to be reduced pursuant to this Section 3, the Employee shall be entitled to determine which portions of the Aggregate Severance are to be reduced so that the Aggregate Severance satisfies the limit set forth in the preceding sentence. The Lump Sum Payment shall be paid to the Employee as soon as practicable following the effective date of the Qualifying Termination of Employment. The Employer shall be entitled to withhold appropriate employment and income taxes, if required by applicable law, from any Severance Benefit that becomes payable.
Severance Benefits Upon Termination of Employment. In the event of a Qualifying Termination within two (2) years from the date from a Change Of Control, the Bank shall pay or provide the following Severance Benefits to the Employee:
A. On the fifth (5th) business day following the date of termination, a lump sum cash payment in the amount of two (2) times the Employee's base annual compensation immediately preceding a Change Of Control or immediately prior to the date of termination, whichever is higher; and
B. For two (2) years after the date of termination the Bank shall arrange to provide the Employee with life, disability, accident and health insurance benefits substantially similar to what was in place immediately prior to the date of termination, provided however, that any such payment shall be reduced to the extent that these benefits are provided to Employee from a subsequent employer; and
C. Legal expenses and fees incurred by Employee in his or her attempt to obtain Severance Benefits following a Qualifying Termination; and
D. Unpaid salary and accrued vacation pay.
E. The Employee shall not be required to mitigate the amount of any payment of Severance Benefits if he is seeking other employment, except as set forth hereinbefore.
Severance Benefits Upon Termination of Employment. In the event of a qualifying termination within two (2) years from the date from a change of control, the Bank shall pay or provide the following severance benefits to the Employee: A On the fifth (5th) business day following the date of termination, a lump sum cash payment in the amount of two (2) times the Employee's base annual compensation immediately preceding a change of control or immediately prior to the date of termination, whichever is higher; and
Severance Benefits Upon Termination of Employment. The Company will pay and/or provide you with the following in connection with the termination of your employment with the Company, however none of the payments or benefits provided for in this letter agreement will commence until you have signed the Mutual Release attached hereto as Exhibit A, and the rescission period for the Mutual Release has expired.
(a) The Company will continue your monthly salary of $62, 500 from the Termination Date until April 8, 2004, prorated for any partial month (the "Severance Period"). These amounts will be paid without mitigation or reduction for any compensation earned by you from any other employment or self-employment.
(b) If you elect continuation of health and dental insurance coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended ("COBRA") in a timely manner for the period beginning with the Termination Date, the Company will contribute a monthly dollar amount toward payment for such COBRA coverage in the same dollar amount as for active employees participating in the same plan until April 8, 2004. You agree to enroll in any future employer's health and dental plans for which you are eligible. If you thereafter continue your COBRA coverage, it will be secondary. The Company shall provide all necessary COBRA continuation forms to you upon execution of this Agreement. Your eligibility for COBRA coverage will commence on the Termination Date and expire in accordance with the provisions of COBRA. None of the payments under this Section 4 shall be included as compensation for purposes of any retirement, deferred compensation or welfare benefit plans or programs of the Company. During the time you are receiving these salary continuation payments, you agree you are not eligible for, and will not apply for, unemployment compensation benefits. The payments and severance benefits provided to you pursuant to this letter agreement are to be paid and provided in lieu of any severance payments, severance benefits and severance protections provided in any other plan or policy of the Company.
Severance Benefits Upon Termination of Employment not Associated with a Change of Control. If the Employee's employment is terminated prior to a Change of Control (as defined herein) or more than twenty-four (24) months after a Change of Control for any of the reasons set forth below in this paragraph 3(b), then the Employee shall be entitled to receive severance pay in the form of equal monthly payments yielding in aggregate an amount equal to one hundred fifty percent (150%) of the Employee's Annual Compensation (as defined herein), plus a pro rata portion of the bonus that would otherwise be payable to Employee for the year in which termination occurs based on the number of full calendar months of his employment during the fiscal year in which termination occurs. A termination of employment for any of the following reasons shall trigger the severance benefits specified in this paragraph 3(b): (A) voluntarily termination of employment by Employee for Good Reason (as defined herein); (B) involuntarily termination of employment by the Company other than for Cause (as defined herein); or (C) termination of employment due to Employee's death or "permanent and total disability" (as such term is defined under Internal Revenue Code Section 22(e)(3) or its successor provision).
Severance Benefits Upon Termination of Employment. In the event Executive's employment terminates for any reason (including the expiration of Executive's term of employment with the Company) except to the extent provided in Section 2(b) of this Addendum in connection with a Change of Control, then Executive shall be entitled to receive severance benefits as follows:
Severance Benefits Upon Termination of Employment