Common use of Benefits Payable When An Executive’s Services Are Terminated Following A Change In Control Clause in Contracts

Benefits Payable When An Executive’s Services Are Terminated Following A Change In Control. If the termination of an Executive’s service occurs within twenty-four (24) months following a Change in Control, then Executive will be entitled to a lump sum payment equal to his (i) Normal Retirement Benefit increased by 50% if he has not attained his Plan Retirement Date, or (ii) the sum of his remaining installment payments increased by 50% if he has attained his Plan Retirement Date. This amount shall be paid to the Executive on the first day of the second month following the month in which such severance occurs. For example, assume that: (a) the Executive’s annual benefit is $50,000, (b) he received 5 annual installments under the terms of the plan and (c) the Change in Control occurs before the 6th annual installment. The Executive would be entitled to a lump sum payment of $750,000 which is the sum of the remaining 10 installments of $50,000 increased by 50%.

Benefits Payable When An Executive’s Services Are Terminated Following A Change In Control. If the termination of an the Executive’s service occurs within twenty-four (24) months following a Change in Control, then the Executive will be entitled to a lump sum payment equal to his (i) Normal Retirement Benefit increased by fifty percent (50% %) if he has not attained his Plan Retirement Date, or (ii) the sum of his remaining installment payments increased by fifty percent (50% %) if he has attained his Plan Retirement Date. This amount shall be paid to the Executive on the first day of the second month following the month in which such severance occurs. For example, assume that: (a) the Executive’s annual benefit is $50,000, (b) he received 5 annual installments under the terms of the plan and (c) the Change in Control occurs before the 6th annual installment. The Executive would be entitled to a lump sum payment of $750,000 which is the sum of the remaining 10 installments of $50,000 increased by fifty percent (50%).