{"component": "clause", "props": {"groups": [{"snippet": "LICENSEE may elect to end sales of any or all of the End Products at its sole discretion with a severance fee (\u201cSeverance Fee\u201d) set forth in Exhibit C. If LICENSEE elects to end sales of any of the End Products, then any other licensing provision benefits for the LICENSEE with respect to those End Products shall also end at that time. Notwithstanding the foregoing, for a period of 6 months after such election is made, LICENSEE shall be permitted to sell-off those End Products using the Technology in an attempt to sell all finished goods inventories pertaining to the Technology.", "snippet_links": [{"key": "licensee-may", "type": "clause", "offset": [0, 12]}, {"key": "end-products", "type": "clause", "offset": [53, 65]}, {"key": "sole-discretion", "type": "definition", "offset": [73, 88]}, {"key": "for-the-licensee", "type": "definition", "offset": [256, 272]}, {"key": "with-respect-to", "type": "clause", "offset": [273, 288]}, {"key": "notwithstanding-the-foregoing", "type": "clause", "offset": [337, 366]}, {"key": "period-of", "type": "clause", "offset": [374, 383]}, {"key": "licensee-shall", "type": "clause", "offset": [422, 436]}, {"key": "to-sell", "type": "clause", "offset": [450, 457]}, {"key": "the-technology", "type": "definition", "offset": [487, 501]}, {"key": "finished-goods", "type": "definition", "offset": [528, 542]}, {"key": "pertaining-to", "type": "definition", "offset": [555, 568]}], "samples": [{"hash": "75qbASNfXeE", "uri": "/contracts/75qbASNfXeE#severance-fee", "label": "Intellectual Property License Agreement (Lexaria Bioscience Corp.)", "score": 30.5140323639, "published": true}], "size": 3, "hash": "51c32953d12710b73027775cea51b3cd", "id": 1}, {"snippet": "Either party may terminate this Agreement by giving the other party thirty (30) days\u2019 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 \u201cSeverance Fee,\u201d as additional compensation, as set forth below:\n(a) If the termination occurs on or before\n(i) the first (1st) anniversary hereof, the Severance Fee shall be equal to one (1) year's Base Salary;\n(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\u2019s Base Salary;\n(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\u2019s Base Salary;\n(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\u2019s Base Salary;\n(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\u2019s Base Salary; or\n(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\u2019s Base Salary.\n(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\u2019s 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.", "snippet_links": [{"key": "terminate-this-agreement", "type": "clause", "offset": [17, 41]}, {"key": "other-party", "type": "definition", "offset": [56, 67]}, {"key": "notice-of", "type": "clause", "offset": [102, 111]}, {"key": "intent-to-terminate", "type": "clause", "offset": [116, 135]}, {"key": "company-may-terminate", "type": "clause", "offset": [149, 170]}, {"key": "at-any-time", "type": "clause", "offset": [186, 197]}, {"key": "without-notice", "type": "definition", "offset": [198, 212]}, {"key": "other-than-cause", "type": "clause", "offset": [273, 289]}, {"key": "death-or-disability-of-employee", "type": "clause", "offset": [304, 335]}, {"key": "if-employee", "type": "definition", "offset": [340, 351]}, {"key": "within-thirty", "type": "clause", "offset": [423, 436]}, {"key": "date-of", "type": "clause", "offset": [464, 471]}, {"key": "additional-compensation", "type": "definition", "offset": [512, 535]}, {"key": "the-termination", "type": "clause", "offset": [564, 579]}, {"key": "equal-to", "type": "definition", "offset": [667, 675]}, {"key": "base-salary", "type": "definition", "offset": [691, 702]}, {"key": "date-hereof", "type": "clause", "offset": [756, 767]}, {"key": "agreement-for-cause", "type": "clause", "offset": [1682, 1701]}, {"key": "other-than-for-good-reason", "type": "clause", "offset": [1743, 1769]}, {"key": "section-62", "type": "clause", "offset": [1789, 1800]}, {"key": "no-right-to", "type": "clause", "offset": [1828, 1839]}, {"key": "continuation-of", "type": "clause", "offset": [1868, 1883]}], "samples": [{"hash": "j3EEiVTHBpW", "uri": "/contracts/j3EEiVTHBpW#severance-fee", "label": "Employment Agreement (Martek Biosciences Corp)", "score": 19.0, "published": true}, {"hash": "haT0E1qfsIX", "uri": "/contracts/haT0E1qfsIX#severance-fee", "label": "Employment Agreement (Martek Biosciences Corp)", "score": 19.0, "published": true}], "size": 2, "hash": "012096a120e0ded269a130534fefc637", "id": 2}, {"snippet": "Upon termination of the Employment Agreement by the Employer without Cause (as defined below), the Employee will be entitled to:\ni. receive a termination fee equal to twelve (12) gross monthly salaries based on the gross annual salary stated in clause 3.1, or such greater termination fee as is required by Dutch law.\nii. any STI earned or otherwise payable (but for the termination of Employee\u2019s employment) with respect to a calendar year ended prior to the termination of this Employment Agreement and a prorated STI for the calendar year of the termination of this Employment Agreement (the \u201cDate of Termination\u201d), calculated as the STI the Employee would have received in such year based on actual performance (as determined by the Employer in good faith) multiplied by a fraction, the numerator of which is the number of days during the calendar year up to the Date of Termination and the denominator of which is the total number of days during the calendar year of the Date of Termination, each paid at the time such, or similar, STIs are paid to other employees of the Company, or if earlier, by March 15 of the year following the year of the Date of Termination.", "snippet_links": [{"key": "termination-of-the-employment-agreement", "type": "clause", "offset": [5, 44]}, {"key": "by-the-employer-without-cause", "type": "clause", "offset": [45, 74]}, {"key": "employee-will", "type": "clause", "offset": [99, 112]}, {"key": "termination-fee", "type": "definition", "offset": [142, 157]}, {"key": "equal-to", "type": "definition", "offset": [158, 166]}, {"key": "monthly-salaries", "type": "clause", "offset": [185, 201]}, {"key": "based-on", "type": "definition", "offset": [202, 210]}, {"key": "gross-annual-salary", "type": "definition", "offset": [215, 234]}, {"key": "in-clause", "type": "clause", "offset": [242, 251]}, {"key": "required-by", "type": "definition", "offset": [295, 306]}, {"key": "dutch-law", "type": "clause", "offset": [307, 316]}, {"key": "termination-of-employee", "type": "clause", "offset": [371, 394]}, {"key": "with-respect-to", "type": "clause", "offset": [409, 424]}, {"key": "calendar-year", "type": "clause", "offset": [427, 440]}, {"key": "prior-to-the", "type": "clause", "offset": [447, 459]}, {"key": "termination-of-this-employment-agreement", "type": "clause", "offset": [460, 500]}, {"key": "date-of-termination", "type": "clause", "offset": [596, 615]}, {"key": "actual-performance", "type": "definition", "offset": [696, 714]}, {"key": "in-good-faith", "type": "definition", "offset": [746, 759]}, {"key": "number-of-days", "type": "clause", "offset": [817, 831]}, {"key": "total-number-of", "type": "definition", "offset": [923, 938]}, {"key": "at-the-time", "type": "definition", "offset": [1007, 1018]}, {"key": "employees-of-the-company", "type": "clause", "offset": [1060, 1084]}, {"key": "march-15", "type": "clause", "offset": [1104, 1112]}, {"key": "the-year", "type": "definition", "offset": [1116, 1124]}, {"key": "following-the", "type": "definition", "offset": [1125, 1138]}], "samples": [{"hash": "7rjXc31KxqZ", "uri": "/contracts/7rjXc31KxqZ#severance-fee", "label": "Employment Agreement (NewAmsterdam Pharma Co N.V.)", "score": 36.5947990417, "published": true}], "size": 2, "hash": "aa3c6c1f690f008de2261ffe2a4202cf", "id": 3}, {"snippet": "In the event this Agreement is terminated for any reason other than the Company's termination of this Agreement for the reasons set forth in Sections 4(b) or 4(c), the Company shall pay to CECO a severance fee (\"Severance Fee\") equal to $600,000. The Severance Fee shall be paid by the Company to CECO within 30 days of the termination of this Agreement.", "snippet_links": [{"key": "in-the-event", "type": "clause", "offset": [0, 12]}, {"key": "for-any-reason", "type": "clause", "offset": [42, 56]}, {"key": "termination-of-this-agreement-for", "type": "clause", "offset": [82, 115]}, {"key": "the-company-shall", "type": "clause", "offset": [164, 181]}, {"key": "pay-to", "type": "definition", "offset": [182, 188]}, {"key": "equal-to", "type": "definition", "offset": [228, 236]}, {"key": "by-the-company", "type": "clause", "offset": [279, 293]}, {"key": "the-termination", "type": "clause", "offset": [320, 335]}], "samples": [{"hash": "eP6Kfodz1hT", "uri": "/contracts/eP6Kfodz1hT#severance-fee", "label": "Consulting Agreement (Ceco Environmental Corp)", "score": 16.0, "published": true}], "size": 1, "hash": "8ac2327df552acd9ce1d3b7ff7af0461", "id": 4}, {"snippet": "On March 1, 2000 and June 1, 2000 the Company shall pay to Granville two cash severance payments in equal installments of $50,000 each for a total of $100,000.00. Granville shall be responsible for the payment of all federal, state and local payroll or other employment taxes with respect to such severance payments. In addition there are currently outstanding expenses and a charge due to both to Granville and the company in which it is agreed that upon confirmation of these charges both parties will remedy and due balances on or before Mach 31 2000.", "snippet_links": [{"key": "on-march", "type": "clause", "offset": [0, 8]}, {"key": "the-company-shall", "type": "clause", "offset": [34, 51]}, {"key": "pay-to", "type": "definition", "offset": [52, 58]}, {"key": "payments-in", "type": "clause", "offset": [88, 99]}, {"key": "equal-installments", "type": "clause", "offset": [100, 118]}, {"key": "responsible-for", "type": "clause", "offset": [182, 197]}, {"key": "payment-of", "type": "definition", "offset": [202, 212]}, {"key": "employment-taxes", "type": "definition", "offset": [259, 275]}, {"key": "with-respect-to", "type": "clause", "offset": [276, 291]}, {"key": "in-addition", "type": "clause", "offset": [317, 328]}, {"key": "expenses-and", "type": "clause", "offset": [361, 373]}, {"key": "company-in", "type": "clause", "offset": [416, 426]}, {"key": "it-is-agreed-that", "type": "clause", "offset": [433, 450]}, {"key": "confirmation-of", "type": "clause", "offset": [456, 471]}, {"key": "both-parties-will", "type": "clause", "offset": [486, 503]}], "samples": [{"hash": "7Qoej3bpXBb", "uri": "/contracts/7Qoej3bpXBb#severance-fee", "label": "Separation Agreement (Grace Development Inc)", "score": 16.0, "published": true}], "size": 1, "hash": "f971b3d1eca29d08acd4d9dbd1634ea1", "id": 5}, {"snippet": "Consultant hereby expressly agrees to release and waive his right to, and releases and discharges Company from its obligation to pay, the severance fee provided for in Section 10.01(a) of the Consulting Agreement.", "snippet_links": [{"key": "agrees-to", "type": "clause", "offset": [28, 37]}, {"key": "right-to", "type": "definition", "offset": [60, 68]}, {"key": "releases-and-discharges", "type": "clause", "offset": [74, 97]}, {"key": "obligation-to-pay", "type": "clause", "offset": [115, 132]}, {"key": "consulting-agreement", "type": "clause", "offset": [192, 212]}], "samples": [{"hash": "gNS31FsfxPH", "uri": "/contracts/gNS31FsfxPH#severance-fee", "label": "Termination of Consulting Agreement (Wentworth Energy, Inc.)", "score": 19.0, "published": true}], "size": 1, "hash": "d2e78ebb0a651839c33fb1e6d6e5d51d", "id": 6}, {"snippet": "Upon termination of the Employment Agreement by the Employer without Cause (as defined below), the Employee will be entitled to receive a termi- nation fee equal to twelve (12) gross monthly salaries as stated in clause", "snippet_links": [{"key": "termination-of-the-employment-agreement", "type": "clause", "offset": [5, 44]}, {"key": "by-the-employer-without-cause", "type": "clause", "offset": [45, 74]}, {"key": "employee-will", "type": "clause", "offset": [99, 112]}, {"key": "to-receive", "type": "definition", "offset": [125, 135]}, {"key": "equal-to", "type": "definition", "offset": [156, 164]}, {"key": "monthly-salaries", "type": "clause", "offset": [183, 199]}, {"key": "in-clause", "type": "clause", "offset": [210, 219]}], "samples": [{"hash": "gMYu2MD265Z", "uri": "/contracts/gMYu2MD265Z#severance-fee", "label": "Employment Agreement (NewAmsterdam Pharma Co N.V.)", "score": 33.1574249268, "published": true}], "size": 1, "hash": "fec6388f16df7ba284139b438cce8979", "id": 7}, {"snippet": "If this Agreement is terminated by MCM without cause pursuant to Section 19(a) prior to December 31, 1996, MCM shall pay KIS, on the effective date of such termination, a severance fee equal to two times the base (without regard to work orders) monthly charges being paid to KIS pursuant to Section 3 immediately prior to said effective date.", "snippet_links": [{"key": "this-agreement", "type": "clause", "offset": [3, 17]}, {"key": "without-cause", "type": "definition", "offset": [39, 52]}, {"key": "prior-to-december", "type": "clause", "offset": [79, 96]}, {"key": "date-of", "type": "clause", "offset": [143, 150]}, {"key": "equal-to", "type": "definition", "offset": [185, 193]}, {"key": "two-times", "type": "clause", "offset": [194, 203]}, {"key": "work-orders", "type": "clause", "offset": [232, 243]}, {"key": "monthly-charges", "type": "clause", "offset": [245, 260]}, {"key": "pursuant-to-section-3", "type": "clause", "offset": [279, 300]}], "samples": [{"hash": "jAEPoOp9H0E", "uri": "/contracts/jAEPoOp9H0E#severance-fee", "label": "Service Agreement (Global Decisions Group LLC)", "score": 16.0, "published": true}], "size": 1, "hash": "979d809d49665ed55e241fd453459ece", "id": 8}, {"snippet": "LICENSEE may elect to end sales of a Product Line at its sole discretion with a severance fee (\u201cSeverance Fee\u201d) set forth in Exhibit C. If LICENSEE elects to end sales of any Product Line, then any other licensing provision benefits with respect to that Product Line also end at that time.", "snippet_links": [{"key": "licensee-may", "type": "clause", "offset": [0, 12]}, {"key": "product-line", "type": "definition", "offset": [37, 49]}, {"key": "sole-discretion", "type": "definition", "offset": [57, 72]}, {"key": "with-respect-to", "type": "clause", "offset": [233, 248]}], "samples": [{"hash": "cvMxyvVTsWs", "uri": "/contracts/cvMxyvVTsWs#severance-fee", "label": "Intellectual Property License Agreement (Lexaria Bioscience Corp.)", "score": 27.0109519958, "published": true}], "size": 1, "hash": "a36e5b66ce2eeb0034f4e34fda7e320f", "id": 9}, {"snippet": "LICENSEE may elect to end sales of the Powder Products at its sole discretion with the payment of a severance fee (\u201cSeverance Fee\u201d) as set forth in Exhibit C. If LICENSEE elects to end sales of the Powder Products, then any other licensing provision benefits for the LICENSEE with respect to the Powder Products also end at that time. Notwithstanding the foregoing, for a period of 6 months after such election is made, LICENSEE shall be permitted to sell Powder Products using the Technology in an attempt to sell all finished goods inventories pertaining to the Technology.", "snippet_links": [{"key": "licensee-may", "type": "clause", "offset": [0, 12]}, {"key": "sole-discretion", "type": "definition", "offset": [62, 77]}, {"key": "payment-of", "type": "definition", "offset": [87, 97]}, {"key": "for-the-licensee", "type": "definition", "offset": [259, 275]}, {"key": "with-respect-to", "type": "clause", "offset": [276, 291]}, {"key": "notwithstanding-the-foregoing", "type": "clause", "offset": [335, 364]}, {"key": "period-of", "type": "clause", "offset": [372, 381]}, {"key": "licensee-shall", "type": "clause", "offset": [420, 434]}, {"key": "to-sell", "type": "clause", "offset": [448, 455]}, {"key": "the-technology", "type": "definition", "offset": [478, 492]}, {"key": "finished-goods", "type": "definition", "offset": [519, 533]}, {"key": "pertaining-to", "type": "definition", "offset": [546, 559]}], "samples": [{"hash": "ilH76ca6TQl", "uri": "/contracts/ilH76ca6TQl#severance-fee", "label": "Intellectual Property License Agreement (Lexaria Bioscience Corp.)", "score": 30.8672142029, "published": true}], "size": 1, "hash": "e8ab08bb7ddfd12313406bfe54d8f6a8", "id": 10}], "next_curs": "ClYSUGoVc35sYXdpbnNpZGVyY29udHJhY3RzcjILEhZDbGF1c2VTbmlwcGV0R3JvdXBfdjU2IhZzZXZlcmFuY2UtZmVlIzAwMDAwMDBhDKIBAmVuGAAgAA==", "clause": {"title": "Severance Fee", "children": [], "size": 16, "parents": [["termination", "Termination"], ["payments-and-benefits", "Payments and Benefits"], ["license-of-technology", "License of Technology"], ["jamaican-semi-exclusivity-and-license", "Jamaican Semi-exclusivity and License"], ["usa-semi-exclusivity-and-license-option", "USA Semi-exclusivity and License Option"]], "id": "severance-fee", "related": [["severance-payment", "Severance Payment", "Severance Payment"], ["severance-payments", "Severance Payments", "Severance Payments"], ["severance-pay", "Severance Pay", "Severance Pay"], ["lump-sum-severance-payment", "Lump Sum Severance Payment", "Lump Sum Severance Payment"], ["separation-payment", "Separation Payment", "Separation Payment"]], "related_snippets": [], "updated": "2026-02-20T05:50:57+00:00", "also_ask": ["What are the most effective negotiation levers for adjusting the severance fee amount?", "Which essential terms must be included to ensure the severance fee is enforceable?", "What are the most common legal pitfalls or invalidating risks in severance fee clauses?", "How do severance fee provisions compare across different jurisdictions or industries?", "What factors do courts consider when determining the reasonableness and enforceability of a severance fee?"], "drafting_tip": "Specify the severance fee amount and payment terms to ensure clarity; define triggering events to avoid disputes; state calculation method to ensure enforceability.", "explanation": "A Severance Fee clause establishes the amount or method of calculation for a payment owed when a contract is terminated before its agreed-upon end date. Typically, this fee is triggered if one party ends the agreement early, such as an employer terminating an employee or a client ending a service contract, and the clause will outline how the fee is determined\u2014whether as a fixed sum, a percentage of remaining payments, or another formula. The core function of this clause is to compensate the non-terminating party for losses or inconveniences caused by early termination, thereby discouraging arbitrary contract cancellations and providing financial certainty."}, "json": true, "cursor": ""}}