Common use of Termination Benefit Clause in Contracts

Termination Benefit. (a) If the Employment Period shall terminate by reason of Employer's exercise of its right under Section 3(e) to terminate without Cause or in the event Employee elects to terminate the Employment Period for Good Reason or the Employment Period is terminated on account of Employee's death or Disability, then Employer shall thereafter be obligated to pay Employee (or his estate) and Employee (or his estate) shall be entitled to receive as severance pay hereunder, for a period of two years beginning on the first day following such termination (or if longer, for a period commencing on such date and ending on the third anniversary of the Effective Time) (the "Severance Period"), an amount for each year, equal to his Basic Salary as of the date of such termination plus the highest amount of bonus or incentive compensation (exclusive of the Nortek, Inc. 1999 Equity Performance Plan) paid or payable in cash to Employee in any one of the three calendar years immediately prior to the Effective Time (or, if higher, the three calendar years immediately prior to such termination). Payments will be made in the same manner as Employee's Basic Salary was paid immediately prior to termination and will be subject to appropriate tax withholding. In the event of such a termination, Employee shall continue, during the Severance Period, to be covered at the expense of the Employer by the same or equivalent accident, disability and life insurance coverage as he was covered immediately prior to the Effective Time (or, if greater, immediately prior to such termination), including the payment of premiums that may become due under any split-dollar life insurance contract provided by Employer covering the life of the Employee and/or his spouse.

Termination Benefit. (a) If the Employment Period shall terminate by reason of Employer's exercise of its right under Section 3(e) to terminate without Cause or in the event Employee elects to terminate the Employment Period for Good Reason or the Employment Period is terminated on account of Employee's death or Disability, then Employer shall thereafter be obligated to pay Employee (or his estate) and Employee (or his estate) shall be entitled to receive as severance pay hereunder, for a period of two years beginning on the first day following such termination (or if longer, for a period commencing on such date and ending on the third anniversary of the Effective Time) (the "Severance Period"), an amount for each year, equal to his Basic Salary as of the date of such termination plus the highest amount of bonus or incentive compensation (exclusive of the Nortek, Inc. 1999 Equity Performance Plan) paid or payable in cash to Employee in with respect to any one of the three calendar years immediately prior to the Effective Time (or, if higher, the three calendar years immediately prior to such termination). For purposes of the preceding sentence, the term "bonus or incentive compensation" shall mean, with respect to any calendar year, (i) compensation awarded once annually on the basis of over-all performance (whether performance of Employee or Employer or both and whether paid in a single lump sum or in installments, but excluding without limitation base salary) earned by Employee pursuant to Section 2(b) hereof or previously pursuant to the equivalent provision of a previous employment agreement or, if none, then pursuant to the annual cash bonus plan or arrangement that was applicable to him in that year plus (ii) any compensation awarded with respect to that calendar year as bonus or incentive compensation for the achievement of one or more specific projects or goals. Payments under this Section 4(a) will be made in the same manner as Employee's Basic Salary was paid immediately prior to termination and will be subject to appropriate tax withholding. In the event of such a termination, Employee shall continue, during the Severance Period, to be covered at the expense of the Employer by the same or equivalent accident, disability and life insurance coverage as he was covered immediately prior to the Effective Time (or, if greater, immediately prior to such termination), including the payment of premiums that may become due under any split-dollar life insurance contract provided by Employer covering the life of the Employee and/or his spouse.

Termination Benefit. (a) If the Employment Period shall terminate by reason of Employer's ’s exercise of its right under Section 3(e) to terminate without Cause or in the event Employee elects to terminate the Employment Period for Good Reason or the Employment Period is terminated on account of Employee's ’s death or Disability, then Employer shall thereafter be obligated to pay Employee (or his estate) and Employee (or his estate) shall be entitled to receive as severance pay hereunder, for a period of two years beginning on the first day following such termination (or if longer, for a period commencing on such date and ending on the third anniversary of the Effective Time) (the "“Severance Period"”), an amount for each year, equal to his Basic Salary as of the date of such termination plus the highest amount of bonus or incentive compensation (exclusive of the Nortek, Inc. 1999 Equity Performance Plan) paid or payable in cash to Employee in with respect to any one of the three calendar years immediately prior to the Effective Time (or, if higher, the three calendar years immediately prior to such termination). For purposes of the preceding sentence, the term “bonus or incentive compensation” shall mean, with respect to any calendar year, (i) compensation awarded once annually on the basis of over-all performance (whether performance of Employee or Employer or both and whether paid in a single lump sum or in installments, but excluding without limitation base salary) earned by Employee pursuant to Section 2(b) hereof or previously pursuant to the equivalent provision of a previous employment agreement or, if none, then pursuant to the annual cash bonus plan or arrangement that was applicable to him in that year plus (ii) any compensation awarded with respect to that calendar year as bonus or incentive compensation for the achievement of one or more specific projects or goals. Payments under this Section 4(a) will be made in the same manner as Employee's ’s Basic Salary was paid immediately prior to termination and will be subject to appropriate tax withholding. In the event of such a termination, Employee shall continue, during the Severance Period, to be covered at the expense of the Employer by the same or equivalent accident, disability and life insurance coverage as he was covered immediately prior to the Effective Time (or, if greater, immediately prior to such termination), including the payment of premiums that may become due under any split-dollar life insurance contract provided by Employer covering the life of the Employee and/or his spouse.