Termination For Cause or Without Good Reason or Suspension or Termination Required by the OCC or FDIC Clause Samples
This clause defines the circumstances under which an employment agreement may be terminated either for cause, without good reason, or as required by regulatory authorities such as the OCC (Office of the Comptroller of the Currency) or FDIC (Federal Deposit Insurance Corporation). It typically outlines specific triggers for termination, such as employee misconduct, voluntary resignation without a valid reason, or directives from banking regulators. For example, if an employee violates company policy or if the OCC or FDIC mandates removal due to regulatory concerns, the agreement can be ended immediately. The core function of this clause is to provide clear guidelines for ending employment in situations where continued employment is untenable or prohibited, thereby protecting the organization’s compliance and operational integrity.
Termination For Cause or Without Good Reason or Suspension or Termination Required by the OCC or FDIC. (a) If there is a Covered Termination for Cause or due to the Executive’s voluntarily terminating his or her employment other than for Good Reason (any such terminations to be subject to the procedures set forth in Section 13), then the Executive shall be entitled to receive only Accrued Benefits.
(b) Notwithstanding anything to the contrary herein:
(A) If the Executive is suspended and/or temporarily prohibited from participating in the conduct of the Employer’s affairs by a notice served under Section 8(e)(3), or Section 8(g)(1), of the Federal Deposit Insurance Act [12 U.S.C. § 1818(e)(3) and (g)(l)], the Employer’s obligations under this Agreement shall be suspended as of the date of service of the notice unless stayed by appropriate proceedings. If the charges in the notice are dismissed, the Employer shall (A) pay the Executive all of the compensation withheld while its obligations under this Agreement were suspended, and (B) reinstate such obligations as were suspended.
(B) If the Executive is removed and/or permanently prohibited from participating in the conduct of the Employer’s affairs by an order issued under Section 8(e)(4) or Section 8(g)(1) of the Federal Deposit Insurance Act [12 U.S.C. § 1818(e)(4) or (g)(1)], all obligations of the Employer under this Agreement shall terminate as of the effective date of the order, but vested rights of the contracting parties shall not be affected.
(C) If the Employer is in default as defined in Section 3(x)(1) of the Federal Deposit Insurance Act [12 U.S.C. 1813 (x)(1)], all obligations under this Agreement shall terminate as of the date of default, but this paragraph shall not affect any vested rights of the Executive.
(D) All obligations under this Agreement shall be terminated, except to the extent determined that continuation of the contract is necessary for the Employer’s continued operations (i) by the Comptroller of the Currency (the “Comptroller”), or the Comptroller’s designee at the time the FDIC enters into an agreement to provide assistance to or on behalf of the Employer under the authority contained in Section 13(c) of the Federal Deposit Insurance Act or (ii) by the Comptroller or the Comptroller’s designee, at the time it approves a supervisory merger to resolve problems related to operation of the Employer or when the Employer is determined by the Comptroller to be in an unsafe or unsound condition. Any rights of the parties that have already vested, however, shall not be affected by suc...