Severance Benefit Clause Example from Business Contracts
This example Severance Benefit clause appears in
4 contracts
from
1 company
Severance Benefit. In the event of an Involuntary Termination, provided you satisfy the conditions described in Section 5(c) below, you will be entitled to the following benefits: (a) Salary Continuation and Equity Acceleration. (i) If your Involuntary Termination occurs more than three months prior to a Change in Control or more than twelve (12) months after a Change in Control, the Company will continue to pay your base salary for a period of nine (9) months after your Separation; pay a pro-rated portion of your... annual target bonus (based on number of months elapsed in the fiscal year); and you shall receive an additional nine (9) months of vesting on all your equity awards or grants then outstanding; or (ii) if your Involuntary Termination occurs within three months prior to a Change in Control or within twelve (12) months after a Change in Control, the Company will pay to you an amount equal to the sum of (i) your base salary and (ii) your annual target bonus, less the amount of any salary continuation payments previously made pursuant to Section 5(a)(i), in substantially equal installments over a period of twelve (12) months after your Separation; pay a pro-rated portion of your annual target bonus (based on number of months elapsed in the fiscal year); and all your equity awards or grants then outstanding shall immediately vest in full. The actual period during which the Company continues to make severance payments to you pursuant to this Section 5(a) shall be referred to as the "Severance Period". Your base salary and target bonus will be the rate or amounts in effect at the time of your Separation and any severance payments will be paid in accordance with the Company's standard payroll procedures. Any severance payments will commence within 60 days after your Separation and, once they commence, will include any unpaid amounts accrued from the date of your Separation. However, if the 60 day period described in the preceding sentence spans two calendar years, then the payments will in any event begin in the second calendar year. (b) COBRA. Provided you elect to continue your health insurance coverage under the Consolidated Omnibus Budget Reconciliation Act ("COBRA") following your Separation, 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 Severance Period, (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 (the "COBRA Benefit"). If necessary to avoid adverse tax consequences to you or the Company, the Company, in its sole discretion, reserves the right to treat the COBRA Benefit as taxable income. (c) Conditions. This Section 5 will not apply unless you (i) have returned all Company property in your possession, (ii) have resigned as a member of the boards of directors of the Company and any of its subsidiaries, to the extent applicable, and (iii) have executed a general release of all claims that you may have against the Company or persons affiliated therewith in the form prescribed by the Company, with said general release not containing greater post-employment obligations than those set forth herein. 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 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.View More
