The Severance Package Sample Clauses
The Severance Package clause defines the compensation and benefits an employee will receive upon termination of employment. Typically, this clause outlines the amount of severance pay, continuation of benefits such as health insurance, and any additional support like outplacement services, specifying eligibility criteria and payment timelines. Its core practical function is to provide financial security to the departing employee while clarifying the employer’s obligations, thereby reducing uncertainty and potential disputes during the termination process.
The Severance Package. In the event the Company terminates Executive’s employment without Cause, and provided that Executive first executes a general release in a form and of a scope reasonably acceptable to the Company within sixty (60) days of the Termination Date, the Company shall provide, following the effective date of such general release, the following severance benefits to Executive (the “Severance Package”):
(a) A payment (the “Severance Payment”) in the following amount:
(i) An amount equal to Executive’s Base Salary through the end of the twelve (12) month period commencing on the Termination Date; plus
(ii) An amount equal to the average annual discretionary cash bonus, if any, awarded by the Company to Executive with respect to the two years preceding the year in which the Termination Date occurs, provided that, for purposes of this paragraph only, Executive shall be deemed to have received his thirty-five percent of Base Salary bonus target for any year within such two-year period in which Executive was not paid a bonus solely because Executive was not employed by the Company, and provided further that for purposes of this sub-paragraph only, the annual discretionary cash bonus, if any, awarded by the Company shall not be pro-rated. Attached at Exhibit D is a series of examples of the manner in which this portion of the Severance Payment shall be calculated.
(b) Payment of the costs associated with continuing the benefits which Executive is entitled to receive pursuant to Section 4.4 of this Agreement at the level in effect as of the Termination Date (subject to any employee contribution requirements applicable to Executive on the Termination Date) through the twelve (12) month period commencing on the Termination Date, to the extent such benefits may continue beyond the Termination Date (for example, among other things, Executive’s coverage under the Company’s life and disability insurance policies will terminate as of the Termination Date).
(c) The Severance Payment shall be paid to Executive in substantially equal installments, according to the Company’s regular payroll schedule, over the twelve (12) month period beginning on the first regular payroll date following the effective date of the general release executed by Executive as provided above, subject to Section 5.8 below.
The Severance Package. In exchange for Former Executive’s agreements as set forth herein, the Company will provide the Former Executive with the following the Severance Package:
(a) The Company will provide Former Executive with a “Separation Payment” in the gross amount of $660,000, less withholdings and deductions required by law. The Separation Payment will be paid in equal installments via the Company’s regular payroll for a period of twelve (12) months. The first payment will be made on the first regularly scheduled pay date after the revocation period described below expires without revocation (the “First Payment Date”) and will include the amount of the Severance Payment that would have been due and payable from the Termination Date through the First Payment Date.
(b) Former Executive’s participation in the Company’s group health plan as an active employee will cease on June 30, 2021. If Former Executive elects to continue Former Executive’s group health coverage through COBRA, and properly completes and submits the necessary election forms, the Company will pay, on Former Executive’s behalf, Former Executive’s monthly COBRA premiums for the lesser of a period of twelve (12) months, and the date Former Executive becomes eligible for coverage under another employer’s plans. In addition, Former Executive may be entitled to a COBRA subsidy of 100% of Former Executive’s monthly premiums through September 30, 2021, under the American Rescue Plan of 2021 (“ARPA COBRA Subsidy”). If Former Executive is eligible for the ARPA COBRA Subsidy, that benefit will be provided before the Company’s COBRA payments described above. The ARPA COBRA Subsidy is available even if Former Executive does not sign this Agreement.
(c) Former Executive was awarded 150,000 restricted stock units (“RSUs”) pursuant to a Restricted Stock Unit Award Agreement dated the 18th day of November, 2019 (the “▇▇▇▇ ▇▇▇ Award Agreement”) of which 50,000 RSUs have vested, and 150,000 RSUs pursuant to a Restricted Stock Unit Award Agreement dated the 2nd day of January, 2020 (the “▇▇▇▇ ▇▇▇ Award Agreement”) of which 50,000 RSUs have vested. An additional 50,000 RSUs will vest and be settled (the underlying shares issued) as of the First Payment Date (the “Vesting RSUs”). The Vesting RSUs will continue to be subject to the applicable equity incentive award plan of the Company pursuant to which such awards were granted, and any unvested equity-based awards held by the Former Executive as of the Termination Date (other th...
The Severance Package. Subject to the terms of this Agreement, in consideration of the General Release (as defined below), and provided that the Employee remains in continuous compliance with the terms of this Agreement (including, but not limited to, Section 7 hereof), the Company agrees to the following:
The Severance Package. The Company may terminate Executive's employment hereunder at any time without Cause (as defined in Section 5.2) upon not less than fourteen (14) days prior written notice from the Company to Executive. The effective date of Executive's termination shall be referred to herein as the "Termination Date." If Executive's employment is terminated by the Company pursuant to this Section 5.1, the Company shall pay Executive all amounts owed to Executive for work performed prior to the Termination Date plus the following amounts and consideration (the "Severance Package"), subject to standard payroll deductions and withholdings: (i) the Base Salary through the end of the twelve (12) month period commencing on the Termination Date to be paid in a lump sum; (ii) a lump sum payment of the average bonus, if any, paid by the Company to Executive with respect to the two (2) years preceding the year in which the Termination Date occurs; (iii) the costs associated with continuing the benefits which Executive is entitled to receive pursuant to Section 4.3 of this Agreement at the level in effect as of the Termination Date (subject to any employee contribution requirements applicable to Executive on the Termination Date) through the twelve (12) month period commencing on the Termination Date; and (iv) the cash value of any accrued but unused PTO, as of the Termination Date. The payment to Executive of any benefits or consideration other than the Severance Package following the termination of Executive's employment pursuant to this Section 5.1 shall be determined by the Board in its sole discretion in accordance with the policies and practices of the Company and applicable laws, provided, however, that the Chief Executive Officer, in his sole discretion, may accelerate the vesting of any Stock Option held by Executive as of the Termination Date.