Common use of Termination Bonus Clause in Contracts

Termination Bonus. Executive shall become entitled to receive an amount equal to two hundred percent (200%) of the annual target bonus in effect for Executive for the year in which Executive’s Involuntary Termination occurs (the “Termination Bonus”). Such amount shall be paid in a lump sum on the first business day, within the sixty (60)-day period measured from the later of (i) the date of Executive’s Separation from Service due to such Involuntary Termination or (ii) the closing date of the Change in Control, on which the Release is effective, unless a further deferral is required pursuant to Part Five - 3 of this Agreement. The payment shall be subject to the Corporation’s collection of all applicable withholding taxes, and Executive shall receive only the net amount remaining after such taxes have been collected. In no event shall any Termination Bonus be paid unless the Change in Control transaction is in fact consummated.