Qualifying Termination Clause Example from Business Contracts

Qualifying Termination. If the Executive is subject to a Qualifying Termination, then, subject to Sections 4, 8, and 9 below, Executive will be entitled to the following benefits: (a) Severance Benefits. The Company shall pay the Executive six (6) months of his or her monthly base salary (at the rate in effect immediately prior to the actions that resulted in the Qualifying Termination). The Executive will receive his or her severance payment in a cash lump-sum which will be made on the first business day occurring aft...er the sixtieth (60th) day following the Separation, provided that the Release Conditions have been satisfied. (b) Continued Employee Benefits. If Executive timely elects continued coverage under the Consolidated Omnibus Budget Reconciliation Act ("COBRA"), the Company shall pay the full amount of Executive's COBRA premiums on behalf of the Executive for the Executive's continued coverage under the Company's health, dental and vision plans, including coverage for the Executive's eligible dependents, for the six (6) month period following the Executive's Separation or, if earlier, until Executive is eligible to be covered under another substantially equivalent medical insurance plan by a subsequent employer; provided that if the Company determines that it cannot provide the payment of COBRA coverage on behalf of the Executive without violating applicable law or incurring additional expense under applicable law (including, without limitation, Section 2716 of the Public Health Service Act), the Company will provide to Executive in lieu thereof a taxable lump sum payment for the balance of the COBRA period. (c) Extension of Post-Termination Exercise Period. The period of time in which to exercise Executive's stock options to purchase shares of Company common stock vested as of the date of Separation will be extended to nine (9) months from the date of Separation, but in any event such period shall not extend beyond the maximum term of the stock option, provided that at the time of such Separation Executive has provided continuous services to the Company for not less than three (3) years. View More