Compensation and Severance Clause Samples
The Compensation and Severance clause defines the financial and non-financial benefits an employee is entitled to receive upon termination of employment. It typically outlines the amount of severance pay, continuation of benefits, and any conditions or limitations, such as eligibility based on the reason for termination or length of service. This clause ensures both parties understand the terms of separation, providing financial security for the employee and legal clarity for the employer.
Compensation and Severance. Upon the termination of Executive’s employment relationship with the Company:
(a) the Company will pay Executive Executive’s prorated base salary, any earned but unpaid bonus from the prior year, reimbursement pursuant to the Company’s policies of all business expenses incurred by Executive prior to the date of termination and all other benefits accrued through the date of termination;
(b) in the event of an Involuntary Termination pursuant to Section 12.1(b), the Company will pay Executive a severance in accordance with the compensation and severance schedule set forth on Schedule 12.2(b) and Section 12.4; and Executive shall be under no obligation to seek employment and any remuneration Executive receives from any subsequent employment shall not offset any amounts due Executive under this Agreement;
(c) prior to any payment by the Company pursuant to subsection (b) above, Executive agrees to execute a full release of any known or unknown claims, charges, complaints, demands, actions, causes of action, suits, rights, debts, and liabilities of every kind and nature against the Company, its officers, directors, shareholders, affiliates, subsidiaries, parent companies, agents, and employees each in their individual and corporate capacities;
(d) for a period of three (3) years after the date of Executive’s termination of employment, the Company agrees to maintain D & O insurance coverage applicable to Executive in effect as of the date of Executive’s termination with respect to prior acts only or such other D & O insurance that is comparable in coverage.
Compensation and Severance. In consideration of Employee's past service and in order to secure Employee's availability to assist the Company in connection with financial issues and other matters that occurred on or prior to January 31, 2001, eOn will provide the following compensation and severance benefits to Employee:
1. Continuation for the period through April 15, 2001, of Employee's present base salary and fringe benefits (except as noted in Item 3 below) in conjunction with services described in the opening paragraph of Article 2.
2. Severance pay for the period April 16 through June 8, 2001 to be paid through the Company's normal bi-weekly payroll system.
3. Payment for accrued but unused vacation days through February 16, 2001, payable on the first business day following April 15, 2001.
4. Employee may continue to contribute to the eOn Medical Plan at the employee rate through the end the month during which his last severance payment is received, extending his coverage through the end of the month of June 2001. He will then have sixty (60) days from the end of June 2001 to make a decision about continuing medical coverage at his own expense under the provisions of the COBRA program.
5. In keeping with the provisions of the governing versions of the Company's Equity Incentive Plan, employee will have ninety (90) days from April 15, 2001 within which to exercise his vested stock options.
6. Employee may retain his laptop computer for his personal use. Employee agrees to make the laptop available to eOn personnel for purposes of collecting a backup of information and data on the computer.
7. Any confidentiality agreements signed by Employee will remain in full force and effect as provided in the terms of those agreements. To the extent that any provisions of this Article of this Agreement conflict with the provisions of the agreement between Employee and the Company dated December 20, 2000, the provisions of this Agreement will govern.
Compensation and Severance. Consideration -----------------------------------------
(a) Employer agrees to pay Employee for all accrued but unused vacation days through December 31, 1999, such payment to be made promptly after that date. ICAM shall pay Employee his current Base Salary from the Termination Date through December 31, 1999. Thereafter, in consideration of and conditioned upon Employee's success in bringing about the merger with ICCMIC and the successful implementation of the Merger Agreement, severance compensation equal to Employee's current Base Salary shall be paid in the form of salary continuation through December 31, 2002, less deductions for taxes and employee benefit contributions. Employee shall be entitled to all benefits of employment other than vacation accrual, automobile allowance, and such other matters as are set forth in Paragraph 4 below, during the Base Salary continuation period. Effective January 1, 2003, all such benefits of employment shall cease. Notwithstanding the provisions of the final two sentences of the last paragraph of Section 9 of the Employment Agreement (i.e., the final two sentences of the paragraph beginning "Severance Amount"), in the event the Employee becomes an employee or independent contractor of one or more companies following the Termination Date, the Severance Amount shall be adjusted to equal the annual rate of $350,000 minus the Employee's annual compensation in excess of $150,000 pro rated at his new employers. No Severance Amount shall be paid if the Employee's total annual cash compensation at his new employers exceeds $500,000. Employee agrees to cooperate fully with Employer in the timely determination of the annual amount of such other compensation and shall, upon request, provide Employer with copies of his W-2 statements, Form 1099s, tax returns on Form 1040 and other documents as may reasonably be requested by Employer.
(b) Employer agrees to pay Employee a cash bonus for Employee's performance during calendar year 1999 of $200,000 contingent upon the successful funding and closing of a collateralized loan obligation fund identified as Pacifica Partners Enhanced Loan Investment Ltd. Notwithstanding the preceding sentence, if the total dollar amount of assets acquired by the Fund is less than $250 million, no cash bonus shall be required to be paid for 1999 performance, although Employer retains the sole discretion to pay a reduced cash bonus.
(c) Employer agrees to pay Employee a $50,000 cash bonus at such time as...
Compensation and Severance. Consideration -----------------------------------------
(a) Employer shall pay Employee for all accrued but unused vacation days through July 31, 2001, such payment to be made promptly after that date. Employee shall be entitled to all benefits as are set forth in Paragraph 4 below, from the Termination Date through July 31, 2005. Effective July 31, 2005, all such benefits of employment shall cease.
(b) Employer shall issue to Employee promptly one million three hundred thousand (1,300,000) shares of Employer's common stock.
(c) Employer shall pay Employee promptly his account balance pursuant to Section 7.2 of the DEC Plan (as defined below).
(d) Employer hereby grants Employee, for a one year period commencing on the Termination Date, the right (option) to purchase all shares of preferred stock of Multi-Ag Media L.L.C., currently held by and registered in the name of Employer, for a purchase price equal to the then current book value of said shares.
(e) Employer shall extend until July 31, 2005 the exercise period within which Employee may exercise 917,053 common stock option shares granted to Employee in January 1992, one-half of which are exercisable at a price of $0.885 per share and one-half of which are exercisable at a price of $1.40 per share.
(f) Employer shall extend until July 31, 2005, the exercise period within which Employee may exercise one million (1,000,000) common stock option shares granted to Employee in July 2001 under Employer's Long-Term Stock Incentive Plan at an exercise price of $1.25 per share.
Compensation and Severance. A. PAY You will be paid through your last day of employment. You will also be paid for any unused vacation days, floating holidays, and personal days. The Company will pay severance benefits as outlined in your Severance Agreement and General Release.
Compensation and Severance. Throughout the 12-month period after Closing, Buyer will, or will cause one or more of Buyer’s Affiliates (including the Company) to, provide to each employee of the Company (i) base salary or hourly wages which are no less than the base salary or hourly wages provided by the Company immediately prior to the Closing and (ii) target bonus and incentive opportunities which are no less than the target bonus and incentive opportunities, if any, provided by the Company immediately prior to the Closing. If any employee of the Company is terminated by the Company during the 12-month period after Closing in circumstances under which such employee would have been entitled to receive severance benefits immediately prior to the Closing, the Company will provide severance benefits to such individuals which are no less than those provided by the Company immediately prior to the Closing.
Compensation and Severance