Severance Upon Certain Terminations Clause Samples
The "Severance Upon Certain Terminations" clause defines the conditions under which an employee is entitled to receive severance pay if their employment ends under specific circumstances, such as termination without cause or resignation for good reason. Typically, this clause outlines the amount and form of severance benefits, which may include salary continuation, bonus payments, or continued benefits coverage, and specifies the triggering events that qualify for such payments. Its core practical function is to provide financial security to the employee in the event of an involuntary or qualifying termination, while also clarifying the employer’s obligations and reducing potential disputes over post-termination compensation.
Severance Upon Certain Terminations. Upon termination of Executive’s employment, Executive will receive payment for any accrued but unpaid wages, and for any incurred but unreimbursed business expenses, subject to the Company’s policies for expense reimbursements. In addition, if during the Term the Company terminates the Agreement without Cause or Executive resigns for Good Reason, or if the Executive’s employment terminates upon the expiration of the Term as a result of the Company’s election not to renew the Term, the Company shall pay Executive (a) his Base Salary (at no less than $376,000 per year) for a period of eighteen (18) months (the “Severance Period”), (b) the Annual Bonus for the year preceding the year of termination to the extent not already paid, (c) the Annual Bonus (at target) for the one year and the ensuing six (6) months of the Severance Period, on a pro rata basis, ending during the Severance Period, and (d) a monthly stipend equal to the amount of the Executive’s premiums (the “Premium Assistance”) for continuation of medical and dental benefits pursuant to Executive’s COBRA election (grossed up to account for applicable taxes and withholdings) for a period of eighteen (18) months; provided, however, that the payments and benefits described in this Section 6 are expressly conditioned upon Executive’s execution of a general release of claims (the “Release”) against the Company and its affiliates (excluding rights in his capacity as a stockholder, rights with respect to equity incentive awards and rights to indemnification for acts performed in his capacity as an director, officer or employee) in a mutually acceptable form, which must be effective and irrevocable prior to the sixtieth (60th) day following the effective date of the termination of Executive’s employment (the “Termination Date”). If the Executive does not execute without revocation the Release in the time period provided herein, Executive will forfeit his right to the severance benefits in this Section 6. Payment of the Base Salary and Premium Assistance will commence on the sixtieth (60th) day following the Termination Date, and the first installment shall include the payments that would have been made had the payments commenced on the first payroll date following the Termination Date. The Annual Bonus that relates to the year before the year in which the Termination Date occurred shall be paid when it would have been paid had the Executive been employed on the payment date. The Annual Bonuses for the eigh...
Severance Upon Certain Terminations. Upon any termination of Executive’s employment, Executive will receive payment for any accrued but unpaid wages, accrued but unused vacation and for any incurred but unreimbursed business expenses, subject to the Company’s policies for expense reimbursements. In addition, if the Company terminates Executive’s employment without Cause pursuant to Section 2(a) or Executive resigns his employment for Good Reason pursuant to Section 2(c), Executive will also be entitled to the payments, if any, as set forth below.
Severance Upon Certain Terminations