Termination Separation Compensation Clause Samples
The 'Termination; Separation Compensation' clause defines the conditions under which an employment or contractual relationship may be ended and outlines the compensation or benefits an individual is entitled to upon separation. Typically, this clause specifies the types of termination (such as for cause, without cause, or resignation) and details the severance pay, continuation of benefits, or other entitlements that may be provided depending on the circumstances. Its core practical function is to provide clarity and predictability for both parties regarding financial and procedural outcomes in the event of termination, thereby reducing disputes and ensuring fair treatment.
Termination Separation Compensation. The Company terminates ▇▇▇▇’▇ employment as Senior Vice President, Chief Financial Officer, and Secretary of the Company, effective April 17, 2009 (the “Termination Date”). Through the date that is nine months after the Termination Date (i.e., January 17, 2010), the Company shall continue to pay to ▇▇▇▇ his monthly base salary, at ▇▇▇▇’▇ monthly base salary level in effect on the date of this Agreement. These salary continuation payments shall commence upon the second payroll date following the expiration of the Revocation Period (as defined in Section 7.5) and continue for the remaining term of the nine month severance period after the Termination Date; provided, such first payment shall include all such amounts that otherwise would have been paid prior to the expiration of the Revocation Period had the payments commenced on the first payroll date following the Termination Date. Subsequent payments shall be made on the Company’s regular pay days as are in effect on the Termination Date, and such payment dates shall not be affected by any subsequent change in the Company’s payroll practices. The foregoing payments will be subject to applicable tax withholding and other deductions. The Company shall also pay to ▇▇▇▇, within five (5) business days after expiration of the Revocation Period, (i) the amount of $9,000 in a single lump sum payment to help defray any lease termination penalty incurred by ▇▇▇▇ and occasioned by this termination, (ii) any accrued but unused vacation or holiday time, and (iii) any outstanding expense reimbursements that it owes, in accordance with its expense reimbursement policy.
Termination Separation Compensation