Common use of Severance Payment and Target Bonus Clause in Contracts

Severance Payment and Target Bonus. (i) (A) The Company shall pay to the Executive an amount equal to 12 months of Base Salary, at the highest rate in effect during the 24 months preceding the date of the Notice of Termination (the “Severance Computation Period”) in 12 substantially equal monthly installment payments beginning with the first calendar month which begins at least 60 days after the Termination Date. (B) In addition, the Executive shall be entitled to an additional payment in an amount equal to six times the amount of a single installment payment under (A), which payment shall be paid in six equal monthly installment payments beginning with the first month after the last installment payment in (A) is payable. Each monthly installment shall be treated as a separate payment for purposes of Section 409A of the Code.