Common use of Severance Policy Clause in Contracts

Severance Policy. Franklin agrees to cause F&M Trust to provide severance pay, as set forth below, to any full-time, active employee of Xxxxxx or any Xxxxxx Subsidiary whose employment is terminated hereafter in connection with the Merger up to twelve (12) months beyond the Effective Date, because (i) such employee’s position is eliminated, or (ii) such employee is not offered or retained in comparable employment (i.e., a position of generally similar job description or responsibilities with Xxxxxx or any Xxxxxx Subsidiary) with F&M Trust or any Franklin Subsidiary, excluding any employee (i) who has an existing employment or consulting agreement with Xxxxxx or any Xxxxxx Subsidiary, (ii) who has accepted an offer from Franklin of noncomparable employment or (iii) whose employment is terminated for Cause (as defined below), provided such employee executes such documentation as Franklin may reasonably require, including Franklin’s customary form of release and provided such employee does not voluntarily leave employment with Franklin or F&M Trust prior to the date the systems conversion occurs. The severance pay to be provided by F&M Trust under this subsection shall equal two (2) weeks’ pay for each full year of continuous service (determined based on the date of the employee’s commencement of employment with Xxxxxx) with a minimum severance benefit of four (4) weeks’ pay and a maximum severance benefit of twenty-six (26) weeks’ pay. For purposes of this Section 4.12(b), “Cause” shall mean termination because of the employee’s personal dishonesty, failure to meet established performance goals and standards, misconduct, breach of fiduciary duty involving personal profit, intentional failure to perform stated duties or willful violation of any law, rule or regulation (other than traffic violations or similar offenses). The benefits provided to terminated Xxxxxx employees under this subsection are the only severance benefits payable by Franklin or F&M Trust to such employees (excluding severance benefits provided under existing employment or consulting agreements or as otherwise required by law). The benefits payable to employees under this subsection or otherwise shall in any event be in lieu of any termination benefits to which such employees would otherwise be entitled under Franklin’s or F&M Trust’s severance policies or programs then in effect.

Severance Policy. Franklin C&N agrees to cause F&M Trust C&N Bank to provide a lump sum severance paypayment, as set forth below, to any full-time, active employee of Xxxxxx Citizens or any Xxxxxx Subsidiary CTC whose employment is terminated hereafter in connection with the Merger up to twelve (12) months beyond following the Effective Date, because (i) such employee’s position is eliminated, or (ii) such employee is not offered or retained in comparable employment (i.e., a position of generally similar job description or responsibilities with Xxxxxx Citizens or CTC) with C&N Bank or any Xxxxxx Subsidiary) with F&M Trust or any Franklin C&N Subsidiary, excluding any employee (i) who has an existing employment or consulting agreement with Xxxxxx Citizens or any Xxxxxx SubsidiaryCTC, (ii) who has accepted an offer from Franklin C&N of noncomparable employment employment, (iii) who has been designated to receive a retention bonus in accordance with Section 4.11(d), or (iiiiv) whose employment is terminated for Cause (as defined below), provided such employee executes such documentation as Franklin C&N may reasonably require, including FranklinC&N’s customary form of release and provided such employee does not voluntarily leave employment with Franklin or F&M Trust prior to the date the systems conversion occursrelease. The severance pay to be provided by F&M Trust C&N Bank under this subsection shall equal two one (21) weeks’ pay for each full year of continuous service (determined based on the date of the employee’s commencement of employment with XxxxxxCitizens) with a minimum severance benefit of four (4) weeks’ pay and a maximum severance benefit of twenty-six (26) weeks’ pay. For purposes of this Section 4.12(b4.11(b), “Cause” shall mean termination because of the employee’s personal dishonesty, failure to meet established performance goals and standards, misconduct, breach of fiduciary duty involving personal profit, intentional failure to perform stated duties or willful violation of any law, rule or regulation Law (other than traffic violations or similar offenses). The benefits provided to terminated Xxxxxx Citizens employees under this subsection are the only severance benefits payable by Franklin C&N or F&M Trust C&N Bank to such employees (excluding severance benefits provided under existing employment or consulting agreements or as otherwise required by lawLaw). The benefits payable to employees under this subsection or otherwise shall in any event be in lieu of any termination benefits to which such employees would otherwise be entitled under FranklinC&N’s or F&M TrustC&N Bank’s severance policies or programs then in effect.

Severance Policy. Franklin Orrstown agrees to cause F&M Trust Surviving Bank to provide severance pay, as set forth below, to any full-time, active employee of Xxxxxx or any Xxxxxx Subsidiary FNB whose employment is terminated hereafter in connection with the Merger up to twelve (12) months beyond the Effective Date, because (i) such employee’s position is eliminated, or (ii) such employee is not offered or retained in comparable employment (i.e., a position of generally similar job description or responsibilities in a location within a sixty (60) mile radius from such employee’s current work location with Xxxxxx FNB) with Surviving Bank or any Xxxxxx Subsidiary) with F&M Trust or any Franklin Orrstown Subsidiary, excluding any employee (i) who has an existing employment or consulting agreement with Xxxxxx or any Xxxxxx SubsidiaryFNB, (ii) who has accepted an offer from Franklin Orrstown of noncomparable employment or (iii) whose employment is terminated for Cause (as defined below), provided such employee executes such documentation as Franklin Orrstown may reasonably require, including FranklinOrrstown’s customary form of release and provided such employee does not voluntarily leave employment with Franklin Orrstown or F&M Trust the Surviving Bank prior to the date the systems conversion occurs. The severance pay to be provided by F&M Trust the Surviving Bank under this subsection shall equal two (2) weeks’ pay for each full year of continuous service (determined based on the date of the employee’s commencement of employment with XxxxxxOrrstown) with a minimum severance benefit of four (4) weeks’ pay and a maximum severance benefit of twenty-six (26) weeks’ pay. For purposes of this Section 4.12(b4.11(b), “Cause” shall mean termination because of the employee’s personal dishonesty, failure to meet established performance goals and standards, misconduct, breach of fiduciary duty involving personal profit, intentional failure to perform stated duties or willful violation of any law, rule or regulation (other than traffic violations or similar offenses). The benefits provided to terminated Xxxxxx FNB employees under this subsection are the only severance benefits payable by Franklin Orrstown or F&M Trust the Surviving Bank to such employees (excluding severance benefits provided under existing employment or consulting agreements or as otherwise required by law), except for employees who do not execute the documentation required by Orrstown, which employees shall be entitled to the termination benefits provided under FNB’s normal severance policies. The benefits payable to Orrstown’s employees under this subsection or otherwise shall in any event be in lieu of any termination benefits to which such employees would otherwise be entitled under Franklin’s or F&M TrustOrrstown’s severance policies or programs then in effect.