Common use of Basic Severance Clause in Contracts

Basic Severance. If, during the Term of the Agreement, the Company terminates the Employee's employment, other than for Cause, death, or Disability, or the Employee terminates his employment for Good Reason, (A) the Company shall pay or provide to the Employee within 30 days the Accrued Obligations (as that term is defined in subparagraph 5(b) below); (B) the Company shall continue to pay or provide to the Employee, commencing with the month in which the Date of Termination shall have occurred and continuing for a period of two (2) years (hereinafter referred to as the "Severance Period") paid in the same form and at the same time as would have been paid had the Employee's employment not terminated, the sum of the following: (1) the Employee's Annual Base Salary (at the same level that was being paid to the Employee on the Date of Termination), paid in equal installments over the Severance Period; (2) an annual cash bonus equal to the average of the annual cash bonuses earned by the Employee over the three years preceding the Date of Termination, which shall be paid at the same time and in the same manner as other annual bonus payments which are made to similarly situated executives who remain employed with the Company (or if there were no continuing similarly situated executives, at the same time of year and in the same manner as it was paid in the prior year); and (3) the Employee's prorated target cash bonus determined in the manner set forth in Section 5(b)(iv) below, which prorated bonus shall be paid at the same time and in the same manner as other annual bonus payments for such year are made to similarly situated executives who remain employed with the Company (or if there were no continuing similarly situated executives, at the same time of year and in the same manner as it was paid in the prior year). (C) during the Severance Period, the Employee shall be entitled to all health and welfare benefits under the Company's welfare benefit plans (within the meaning of Section 3(1) of the Employee Retirement Income Security Act of 1974, as amended), as if the Employee were still employed during such period, at the same level of benefits and at the same dollar cost to the Employee as is available to all of the Company's senior executives generally. If and to the extent that equivalent benefits shall not be payable or provided under any such plan(s), the Company shall pay or provide equivalent benefits on an individual basis. The health and welfare benefits provided in accordance with this subparagraph shall be reduced by any comparable benefits provided by another employer.