The Severance Amount Clause Samples
The Severance Amount clause defines the specific sum or formula used to calculate the payment an employee is entitled to receive upon termination of employment under certain conditions, such as without cause. Typically, this clause outlines whether the severance is a fixed amount, a multiple of salary, or based on years of service, and may specify inclusions like bonuses or benefits. Its core practical function is to provide clarity and predictability for both employer and employee regarding financial obligations in the event of termination, thereby reducing the risk of disputes.
The Severance Amount. Any severance benefits payable in cash to you under an employment agreement between you and the Company because of a termination of your employment "without cause" (as that term is defined or described in such employment agreement) and/or any severance benefits to be paid to you in cash at the discretion of the Company. All of the foregoing amounts together are referred to as the "Severance Amount." Notwithstanding any provision in any such employment agreement to the contrary, the Severance Amount shall be paid to you in a lump sum.