Common use of Severance Payable After a Change in Control Clause in Contracts

Severance Payable After a Change in Control. 2.1 In the event of a termination by the Company other than for Cause, Death or Disability within the first two years after a Change in Control (as defined) or termination by the Executive within the first two years after a Change in Control for Good Reason (as defined), severance shall be payable or provided to the Executive as follows (and subject to the provisions of the additional subsections of Section 2): (i) A single lump sum equal to the sum of (a) one and a half times (i.e. 18 months) annual base salary for the Executive in effect immediately prior to the date of the Change in Control or immediately prior to the date of termination (whichever is greater) and (b) an amount equal to one and a half times the last year's annual cash bonus paid to the Executive. (ii) Health, life and other welfare benefits shall continue for one year on the same terms available to employees generally. (iii) The Company's contribution to the 401(k) account of the Executive shall continue for one year at the same rate (but in no event lower than the rate in effect prior to the Change in Control) as applicable to employees generally or, if such continuation is not permitted by the Company's 401(k) plan, then the amount of the Company's contribution shall be made by a lump sum payment and/or distribution of Company stock made to the Executive at the time said payment/distribution is made to employees generally.