Severance Benefit Clause Example from Business Contracts

Severance Benefit. (a) General . If you are subject to an Involuntary Termination then you will be entitled to the benefits described in this Section 5. However, this Section 5 will not apply unless you (i) have returned all Company property in your possession and (ii) have executed a general release of all claims that you may have against the Company or persons affiliated with the Company. The release must be in the form prescribed by the Company, without alterations. You must execute and return the release on or... before the date specified by the Company in the prescribed form (the "Release Deadline"). The Release Deadline will in no event be later than fifty (50) days after your Separation. If you fail to return the release on or before the Release Deadline, or if you revoke the release, then you will not be entitled to the benefits described in this Section 5. (b) Salary Continuation. If you are subject to an Involuntary Termination, then the Company will continue to pay your base salary for a period of six (6) months after your Separation. Your base salary will be paid at the rate in effect at the time of your Separation and in accordance with the Company's standard payroll procedures. The salary continuation payments will commence within sixty (60) days after your Separation and, once they commence, will include any unpaid amounts accrued from the date of your Separation. However, if the sixty-day period described in the preceding sentence spans two calendar years, then the payments will in any event begin in the second calendar year. (c) COBRA. If you are subject to an Involuntary Termination and you elect to continue your health insurance coverage under the Consolidated Omnibus Budget Reconciliation Act ("COBRA") following your Separation, then the Company will pay the same portion of your monthly premium under COBRA as it pays for active employees until the earliest of (i) the close of the six (6) month period following your Separation, (ii) the expiration of your continuation coverage under COBRA or (iii) the date when you become eligible for substantially equivalent health insurance coverage in connection with new employment or self-employment. Eric A. Lefebvre, M.D. November 24, 2011 Page 3 6. Relocation Payments. (a) Relocation Expenses. If you accept our offer to join the Company, the Company shall reimburse the reasonable expenses required for you to relocate to California to begin work with the Company (the "Relocation Expenses"). Such Relocation Expenses must be pre-approved by the Company. The Company shall treat the maximum amount of such Relocation Expenses permitted by applicable law as excluded from your taxable compensation income. (b) Relocation Award. If you accept our offer to join the Company, the Company shall pay you a one-time award of $75,000 to cover ancillary costs associated with your relocation (the "Relocation Award"). (c) Immigration Expenses. If you accept our offer to join the Company, the Company agrees to reimburse all reasonable and documented expenses associated with obtaining the necessary visa and other immigration credentials required to permit you to work for the Company in the United States (the "Immigration Expenses" and collectively with the Relocation Expenses and Relocation Award, the "Relocation Payments"). (d) Repayment. If you voluntary resign from the Company or are terminated by the Company with Cause within twelve (12) months of your start date, you agree to return one hundred percent (100%) of the Relocation Payments you received to the Company. If you voluntary resign from the Company or are terminated by the Company with Cause within twelve (12) months to eighteen (18) months of your start date, you agree to return seventy-five percent (75%) of the Relocation Payments you received to the Company. If you voluntary resign from the Company or are terminated by the Company with Cause within eighteen (18) months to twenty-four (24) months of your start date, you agree to return fifty percent (50%) of the Relocation Payments you received to the Company. Such applicable amount must be returned to the Company no later than 45 days from the date your employment with the Company ends. View More