Common use of Severance Fee Clause in Contracts

Severance Fee. Either party may terminate this Agreement by giving the other party thirty (30) days’ advance written notice of its intent to terminate, except that Company may terminate this Agreement at any time without notice for Cause. If Company terminates this Agreement for reasons other than Cause or due to the death or Disability of Employee, or if Employee terminates this Agreement for Good Reason, Company shall pay Employee, within thirty (30) days of the effective date of such termination, a “Severance Fee,” as additional compensation, as set forth below: (a) If the termination occurs on or before (i) the first (1st) anniversary hereof, the Severance Fee shall be equal to one (1) year's Base Salary; (ii) the date that is thirteen (13) months from the date hereof, the Severance Fee shall be equal to eleven-twelfths (11/12) of one (1) year’s Base Salary; (iii) the date that is fourteen (14) months from the date hereof, the Severance Fee shall be equal to ten-twelfths (10/12) of one (1) year’s Base Salary; (iv) the date that is fifteen (15) months from the date hereof, the Severance Fee shall be equal to nine-twelfths (9/12) of one (1) year’s Base Salary; (v) the date that is sixteen (16) months from the date hereof, the Severance Fee shall be equal to eight-twelfths (8/12) of one (1) year’s Base Salary; or (vi) the date that is seventeen (17) months from the date hereof, the Severance Fee shall be equal to seven-twelfths (7/12) of one (1) year’s Base Salary. (b) If the termination occurs after the date that is seventeen (17) months from the date hereof, the Severance Fee shall be equal to one-half (1/2) of one (1) year’s Base Salary. If Company terminates this Agreement for Cause or if Employee terminates this Agreement other than for Good Reason or as set forth in Section 6.2 below, Employee shall have no right to the Severance Fee or salary continuation of any kind.