Termination and Forfeiture of Payments and Benefits Clause Samples
The 'Termination and Forfeiture of Payments and Benefits' clause defines the circumstances under which an employee or party loses their right to receive certain payments or benefits, typically upon the termination of their agreement or employment. This clause often specifies the types of termination—such as for cause, without cause, or due to breach—and details which payments, bonuses, or benefits may be withheld or forfeited as a result. Its core practical function is to protect the interests of the employer or contracting party by ensuring that individuals who do not fulfill their obligations or who are terminated for specific reasons do not receive unearned compensation or benefits.
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Termination and Forfeiture of Payments and Benefits. Executive’s employment with the Company may be terminated at any time by the Company for any reason or no reason, upon the Board’s approval, by a majority vote of the Board members in favor of such termination. In the event that Executive’s employment with the Company is terminated by the Company, the Company shall have no obligation to Executive other than (subject to Executive’s continued compliance with his obligations under this Agreement): (i) the payment of the Executive’s earned and unpaid compensation, vested and accrued benefits under the Company’s ERISA-based plans and accrued but unreimbursed expenses pursuant to Section 3(d) (collectively, the “Accrued Obligations”); and (ii) a continuation of the Executive’s Base Salary (at the rate in effect at the time of such termination) for a period of time commencing on the date of termination and ending on the date that is 6 months from the date of termination (“Severance”).
Termination and Forfeiture of Payments and Benefits