Severance Benefit Clause Example from Business Contracts
This example Severance Benefit clause appears in
4 contracts
from
1 company
Severance Benefit. (a) General. If you are subject to an Involuntary Termination, then you will be entitled to the benefits described in this Section 7(b) and (c) in addition to any benefits described in Section 6, if applicable. However, this Section 7 will not apply unless and until 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 all of its subsidiaries, to the extent applicable, and (iii) have executed (and not revoked, ...if applicable) the Release. (b) Salary Continuation. Subject to your satisfying the conditions in Section 7(a), if you are subject to an Involuntary Termination, then the Company will continue to pay your base salary for a period of 3 months after your Separation. Your base salary will be paid based on the annual salary 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 60 days after your Separation and, the first payment 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. (c) Lump-Sum Payment in Lieu of Health Benefit. Subject to your satisfying the conditions in Section 7(a), if you are subject to an Involuntary Termination, the Company will pay you a lump-sum amount, net of applicable withholding taxes, equal to the product of (A) six and (B) the monthly amount the Company was paying on behalf of you and your eligible dependents, if any, with respect to the Company's health insurance plans in which you and your eligible dependents, if any, were participants as of the day of your Separation. Such payment will be made within 60 days after your Separation; however, if such 60-day period spans two calendar years, then the payment will be made in the second calendar year.View More
