Full Termination Compensation Clause Samples
The Full Termination Compensation clause defines the compensation owed to a party if the contract is terminated before its natural expiration. Typically, this clause outlines the calculation method for the compensation, which may include reimbursement for work performed, costs incurred, or a predetermined termination fee. Its core function is to ensure that the party facing early termination is fairly compensated for losses or expenses, thereby reducing financial risk and providing clarity on the consequences of ending the agreement prematurely.
Full Termination Compensation. Full Term Compensation shall mean:
Full Termination Compensation. Full Termination Compensation shall mean:
(i) all amounts accrued to Employee through the Termination Date, any unreimbursed expenses incurred pursuant to Subsection 5(f) of this Agreement, and any other benefits specifically provided to Employee under any benefit plan;
(ii) the Employee will continue to receive Base Salary as determined by the following: 1) if the Termination Date occurs within the first six months following the Effective Date then the continuation of Employee’s Base Salary will be for a period of three months following the Termination Date; 2) if the Termination Date occurs during the period six months after the Effective Date but within the first year of the Effective Date then the continuation of Employee’s Base Salary will be for a period of six months; 3) if the Termination Date occurs on or after the one year anniversary of the Effective Date then the continuation of Employee’s Base Salary will be for a period of one year following the Termination Date; or, 4) notwithstanding the above, should the termination be the result of a constructive termination specific to the conditions as set forth in Section 6(e) above, or should the Termination Date be subsequent to a Change in Control, the Employee shall continue to receive Base Salary for a period of twelve months from the Termination Date regardless of the time elapsed since the Effective Date. All of the above scenarios shall be payable on the Company’s regular payroll payment dates;
(iii) the continuation, at the Company’s expense, of group medical coverage under the same terms as in effect at the Termination Date for the earlier of (1) three months past the Termination Date, or (2) until Employee obtains alternate health insurance coverage, in addition to any health insurance continuation obligation under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA);
(iv) the optioned shares so vested as of the Termination Date will be exercisable for a period of 24 months following the Termination Date.