Common use of Constructive Dismissal Clause in Contracts

Constructive Dismissal. If at any time during the term of this Agreement there is an event of Constructive Dismissal (as defined below) with respect to the Employee, the Employee shall have the option to terminate this Agreement, in writing, within three months after the events giving rise to the Constructive Dismissal occur, and in such case, shall resign from all offices and directorships held in the Company or any associate or affiliate company. In the event the Employee elects to terminate this Agreement under this paragraph, the employee shall receive a lump sum payment of two years of the then current compensation as set out in Section 4(a) and 4(b) and the Employee shall execute a mutual release to be effective upon receipt of the lump sum payment to the Employee.