Common use of Termination Severance Payment Clause in Contracts

Termination Severance Payment. As part of the Termination Benefits, you will receive a “Termination Severance Payment.” The “Termination Severance Payment” is equal to the aggregate of the following amounts: (i) the sum of (A) your Annual Base Salary (as defined below) and (B) the target annual cash bonus set under the Company’s bonus or incentive compensation plan for the fiscal year during which your termination of employment occurs; (ii) the product of (x) the target annual cash bonus under the Company’s bonus or incentive compensation plan for the fiscal year during which your termination of employment occurs and (y) a fraction, the numerator of which is the number of days in the current fiscal year through the date of termination, and the denominator of which is 365 and (iii) any accrued holiday or vacation pay. The Termination Severance Payment shall be made in equal monthly installments over the course of 12 months, commencing on the 60th day following the date of your Separation from Service (as defined in Section 3(c) below). Annual Base Salary is defined as your annual base salary at the rate in effect immediately prior to the termination of employment, or if higher, your annual base salary at the rate in effect six months prior to the termination of employment.