Standard Severance Plan Sample Clauses
A Standard Severance Plan clause outlines the terms under which an employee will receive severance benefits upon termination of employment. Typically, it specifies eligibility criteria, the amount and form of severance pay, and any conditions such as signing a release of claims. This clause provides financial support to employees who lose their jobs involuntarily and helps employers manage transitions smoothly while reducing the risk of legal disputes.
Standard Severance Plan. If Executive is terminated involuntarily (i.e., without the consent of Executive) by the Company for any reason other than for Cause (and such termination is not pursuant to a Change of Control) the Executive shall receive the following compensation and benefits from the Company:
A. The Company shall pay to Executive when otherwise due Executive's Termination Base Salary through the Date of Termination.
B. Effective as of the Date of Termination, the Company shall continue to pay to Executive (the "Severance Pay") the Termination Base Salary, payable on a regular payroll basis, for a period of twelve (12) months following the Date of Termination (such period to be herein referred to as the "Severance Payout Period"), subject to reduction as follows:
(i) If Executive is re-employed during the Severance Payout Period, Executive shall receive throughout the remainder of the Severance Payout Period following the effective date of such re-employment, 50% of the Severance Pay otherwise due and payable to Executive after such date of re-employment;
(ii) In addition, if Executive is re-employed during the Severance Payout Period at an annual base salary that is less than the Termination Base Salary, in addition to the payment required by clause (i) above, Executive shall receive on a monthly basis throughout the remainder of the Severance Payout Period following the effective date of such re-employment the difference between (x) the salary actually received by Executive on a monthly basis from such re-employment and (y) the Termination Base Salary expressed as a monthly payment.
C. The Company shall pay to Executive as a bonus an amount equal to forty percent (40%) of Executive's Termination Base Salary in lieu of participation in the Company's Management Incentive Bonus Plan or a similar or successor plan for the year in which the Date of Termination occurs, pro-rated through and including the Date of Termination (on the basis of a 365 day year). Such bonus shall be due and payable on the normal distribution date for bonuses for participants in such plan.
Standard Severance Plan. If Executive is terminated involuntarily (i.e., without the consent of Executive) by the Company for any reason other than for Cause (and such termination is not pursuant to a Change of Control) the Executive shall receive the following compensation and benefits from the Company:
A. The Company shall pay to Executive when otherwise due Executive’s Termination Base Salary through the Date of Termination.
B. Effective as of the Date of Termination, the Company shall pay to Executive an amount equal to [1.33]5 [1.67]6 times the sum of Executive’s Termination Base Salary plus Bonus, payable in a lump sum within thirty days following such Date of Termination.
C. Effective as of the Date of Termination and in consideration of service through the Date of Termination, the Company shall pay to Executive a bonus for the year in which the Date of Termination occurred in an amount determined in good faith by the Company’s Board of Directors in accordance with the performance criteria established under the Company’s incentive plan and the Company’s actual performance relative to such criteria for such year though the Date of Termination, which amount, however, shall not be less than Target EV, and shall be pro-rated through and including the Date of Termination (on the basis of a 365 day year), payable in a lump sum within thirty days following such Date of Termination.
D. Notwithstanding any provisions to the contrary in any of the Option Plans, (i) all outstanding unvested stock options of Executive shall be and become fully vested and exercisable as to all shares of stock covered thereby, and (ii) all outstanding shares of restricted stock, restricted stock units, performance shares and performance units of Executive shall be and become 100% vested and all restrictions thereon shall lapse, in each case as of the Date of Termination. 7
E. For all options granted after the Effective Date, Executive (or in the event of his death, his estate) shall be entitled to exercise his vested options until 12 months following the Date of Termination. Notwithstanding the provisions of this Section E, no option may be exercised at any time past the term of such option. 5 For Messrs. Flato, Boyd, B▇▇▇▇, ▇▇▇▇▇▇▇ and W▇▇▇▇▇▇▇▇▇ 6 For Messrs. M▇▇▇▇, Maroney, Nibling, and M▇▇▇▇ 7 For Messrs. M▇▇▇▇, Maroney, Nibling, and M▇▇▇▇.
F. The Company shall provide Executive with additional benefits described in Section 6 hereof.
Standard Severance Plan. Except as provided in Section 5 hereof, in the event Executive has an Involuntary Termination, the Executive shall receive the following compensation and benefits from the Company provided under this Section 4. The payments made under Sections 4(B) and (C) shall be paid in a cash lump sum on such date determined by the Company within the ten (10) day period commencing on the 60th day after the date of Executive’s Separation from Service; provided, however, that if Executive is a Specified Employee on the date of Executive’s Separation from Service, any payments made under Sections 4(B) and (C) shall be paid as provided in Section 15(C) hereof.
A. The Company shall pay to Executive when otherwise due Executive’s Termination Base Salary through the Date of Termination.
B. The Company shall pay to Executive an amount equal to 1.67 times the sum of Executive’s Termination Base Salary plus Termination Bonus.
C. In consideration of service through the Date of Termination, the Company shall pay to Executive an amount equal to 75% of the Termination Base Salary, multiplied by a fraction, the numerator of which equals the number of days from the beginning of the calendar year through and including the Date of Termination, and the denominator of which equals 365.
D. Notwithstanding any provisions to the contrary in any of the Option Plans, (i) all outstanding unvested stock options of Executive shall be and become fully vested and exercisable, as to all shares of stock covered thereby, and (ii) all outstanding shares of restricted stock, restricted stock units, performance shares and performance units of Executive shall be and become 100% vested and all restrictions thereon shall lapse, in each case as of the Date of Termination.
E. For all options granted after the Effective Date, Executive (or in the event of his death, his estate) shall be entitled to exercise his vested options until 12 months following the Date of Termination. Notwithstanding the provisions of this Section E, no option may be exercised at any time past the term of such option (or, if earlier, the tenth anniversary of the original date of grant).
F. The Company shall provide Executive with additional benefits described in Section 6 hereof
Standard Severance Plan. If Executive is terminated involuntarily (i.e., without the consent of Executive) by Varco for any reason other than for Cause (and such termination is not pursuant to a Change of Control) the Executive shall receive the following compensation and benefits from Varco:
▇. ▇▇▇▇▇ shall pay to Executive when otherwise due Executive’s Termination Base Salary through the Date of Termination.
B. Effective as of the Date of Termination, Varco shall pay to Executive the Severance Pay, payable in a lump-sum within thirty days following such Date of Termination.