Compensation Continuance Clause Samples
The Compensation Continuance clause ensures that an employee continues to receive their salary and benefits for a specified period under certain circumstances, such as during a leave of absence, disability, or after termination without cause. Typically, this clause outlines the duration of continued payments, the types of compensation covered (such as base salary, bonuses, or health benefits), and any conditions or limitations that apply. Its core practical function is to provide financial security to the employee during transitional periods, addressing concerns about income stability and supporting compliance with employment laws or company policies.
Compensation Continuance. If the Executive's employment hereunder is involuntarily terminated as described in Section 3, he will be entitled to receive the cash compensation and benefits described in (a), (b) and (c) below (herein, "Compensation Continuance") for the period beginning with the date of such involuntary termination and ending with the earlier of (i) the third anniversary of the date of such termination, or (ii) the Normal Retirement Date of the Executive as defined in the Retirement Agreement (such period is referred to herein as the "Compensation Period"). The duration of the Compensation Period shall not be affected by the fact that the term of this Agreement otherwise would end before such Period expires. The cash compensation and benefits are as follows:
Compensation Continuance. In addition to the compensation provided for in Section 9.1, upon the occurrence of a Compensation Continuance Termination Event, the Executive (or in the event of his subsequent death, his surviving spouse) shall be entitled to continue to receive his Base Salary (as increased each year in the manner provided in Section 5.1) during the Compensation Continuance Period.
Compensation Continuance. In addition to the compensation provided for in Section 10.1, upon the occurrence of a Compensation Continuance Termination Event, the Executive shall be entitled to receive during the Compensation Continuance Period an annual benefit equal to his Final Average Compensation. If the Compensation Continuance Termination Event is the termination of the Executive’s employment by the Company as a result of the Executive’s Total Disability, the Executive’s Final Average Compensation shall be reduced by any amounts actually paid to the Executive during the Compensation Continuance Period under any Company sponsored long-term disability policy or any long-term disability policy on the life of the Executive for which the Company paid the premiums. The Executive’s Final Average Compensation shall be paid in accordance with the payroll schedule for salaried personnel of the Company. Notwithstanding the foregoing, the Executive’s Final Average Compensation payable during the first six months of the Compensation Continuance Period shall be paid to the Executive in a lump sum as of the first day of the seventh (7th) calendar month of the Compensation Continuance Period. Thereafter, all payments of Final Average Compensation shall be payable in accordance with the payroll schedule for salaried personnel of the Company.
Compensation Continuance. In addition to the compensation provided for in Section 9.1, upon the occurrence of a Compensation Continuance Termination Event, the Executive shall be entitled to receive during the Compensation Continuance Period an annual benefit equal to his Final Average Compensation. The Executive’s Final Average Compensation shall be paid in accordance with the payroll schedule for salaried personnel of the Company. If the Compensation Continuance Termination Event is the termination of the Executive’s employment by the Company as a result of the Executive’s Total Disability, the Executive’s Final Average Compensation shall be reduced by any amounts actually paid to the Executive during the Compensation Continuance Period under any Company sponsored long-term disability policy or any long-term disability policy on the life of the Executive for which the Company paid the premiums.
Compensation Continuance. If the Executive's employment hereunder is involuntarily terminated as described in Section 3, he will be entitled to receive the cash compensation and benefits described in (a), (b) and (c) below (herein, "Compensation Continuance") for the period beginning with the date of such involuntary termination and ending with the expiration of the three year term of this Agreement (such period is referred to herein as the "Compensation Period"). The cash compensation and benefits are as follows:
Compensation Continuance. In addition to the compensation provided for in Section 12.1, upon the termination of the Executive's employment by the Company's exercise of the Notice Exception or by the Executive for Good Reason, the Executive (or in the event of his subsequent death, his designated beneficiary) shall be entitled to continue to receive during the remainder of the Term following the last day of the Termination Month (the "Compensation Continuance Period"), (i) the Base Salary (as increased each year to reflect increases in the cost of living) that he would have received pursuant to Section 4.1 during the Compensation Continuance Period if the Term had not expired, and (ii) the Awarded Bonus (if any) that he would have received pursuant to Section 4.2 during the Compensation Continuance Period if the Term had not expired. In the event of the Executive's death during the Compensation Continuance Period, such death shall not be deemed the expiration of the Term for purposes of determining the end of the Compensation Continuance Period, and the Executive's designated beneficiary (as determined pursuant to ARTICLE 16) shall be entitled to receive payments under this Section 12.2 during the remainder of the Compensation Continuance Period. During the Compensation Continuance Period, the Executive shall (i) subject to the provisions of ARTICLE 6, continue to participate in all employee benefit plans or programs of the Company (as described in ARTICLE 10), and (ii) be available at reasonable times to provide consulting services to the Company.
Compensation Continuance. In addition to the compensation provided for in Section 12.1, upon the termination of the Executive's employment by the Company's exercise of the Notice Exception or by the Executive for Good Reason, the Executive (or in the event of his subsequent death, his designated beneficiary) shall be entitled to continue to receive during the remainder of the Term following the last day of the Termination Month (the "Compensation Continuance Period"), the Base Salary (as increased each year to reflect increases in the cost of living) that he would have received pursuant to Section 4.1 during the Compensation Continuance Period if the Term had not expired. During the Compensation Continuance Period, the Executive shall (i) continue to participate in all employee benefit plans or programs of the Company (as described in ARTICLE 10), and (ii) be available at reasonable times to provide consulting services to the Company.
Compensation Continuance. In addition to the compensation provided for in Section 8.1, upon the termination of the Executive's employment by the Executive for Good Reason or by the Company other than For Cause, the Executive (or in the event of his subsequent death, his designated beneficiary) shall receive the bonus for which he was eligible in the year of termination, prorated for the portion of such year for which Executive was employed (such period to be deemed to end on the Termination Date) at the rate such bonus was earned but in no event less than 50% of the Executive's Base Salary for such period and he shall continue to receive (i) from the last day of the Termination Month through the end of the twelfth calendar month following the Termination Month (the "Compensation Continuance Period") the Base Salary that he would have received pursuant to Section 4.1 during the Compensation Continuance Period as if the Term had not expired and (ii) a bonus with respect to the Compensation Continuance Period paid at a rate of 50% of the Base Salary of the Executive during the Compensation Continuance Period to be paid at such times as bonus payments are normally paid to other executives of the Company.
Compensation Continuance. If the Executive's employment hereunder is involuntarily terminated as described in Section 3, he will be entitled to receive the cash compensation and benefits described in (a), (b) and (c) below (herein, "Compensation Continuance") for the period beginning with the date of such involuntary termination and ending with the earlier of (i) the third anniversary of the date of such termination, or (ii) the Normal Retirement Date of the Executive as defined in the Retirement Agreement (such period is referred to herein as the "Compensation Period"). The duration of the Compensation Period shall not be affected by the fact that the term of this Agreement otherwise would end before such Period expires. Only with respect to the Cash Compensation described in (a), the Executive may elect to receive the value of the Cash Compensation in one lump sum rather than in installments payable throughout the Compensation Period. Unless the Executive elects otherwise in writing, the Cash Compensation shall be payable in a lump sum payment within fifteen days of his date of termination. The cash compensation and benefits are as follows: