Contract Severance Clause Samples

A Contract Severance clause defines how individual provisions of a contract are treated if any part is found to be invalid, illegal, or unenforceable. Typically, this clause states that the remainder of the contract will continue to be effective even if one or more clauses are struck out or modified by a court. For example, if a non-compete provision is deemed too broad and unenforceable, the rest of the agreement remains intact. The core function of this clause is to preserve the validity and enforceability of the contract as a whole, preventing the entire agreement from failing due to a single problematic provision.
Contract Severance. In consideration for the termination of the Executive’s Prior Agreement, the Company hereby agrees to provide the Executive with a cash payment and restricted stock grant (the “Contract Severance”) according to the terms set forth below:
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Contract Severance. If a teacher wished to be released from their contract after signing it, they will be allowed to do so only with Board permission and with payment to the District of $350, $500 if the contract is terminated after June 25th, $1000 if the contract is terminated after July 25th, and $1500 if the contract is terminated after August 15th or any time during the school year. No release from contract after August 15 according to MCA 20-4-110 subsection 1 Item G. This penalty will be invoked on those teachers who are initially hired after June 1, 1991. Under extenuating circumstances, the Board will have the option to waive the fee and/or release from contract. An incentive will be paid for teachers who provide early resignation notification to the District of $200 by the regular February Board meeting and $100 by the regular March Board meeting.
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Contract Severance. In consideration for the termination of the Executive’s Prior Agreement, the Company hereby agrees to provide the Executive with a restricted stock grant (the “Contract Severance”) as soon as administratively practicable following the Effective Date, (the “Grant Date”) consisting of 12,892 shares of the Company’s common stock which shall be subject to certain restrictions (the “Restricted Stock”). The Restricted Stock shall be granted subject to the terms of the Company’s Long Term Incentive Plan and shall vested as provided therein.
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Related to Contract Severance

  • Bonus Severance A lump-sum payment equal to 100% of the Executive’s target annual bonus as in effect for the fiscal year in which the CIC Qualified Termination occurs.

  • Salary Severance A single, lump sum payment equal to twelve (12) months of the Executive’s Salary, less applicable withholdings.

  • Termination Severance (a) If (i) Employee’s employment is terminated by the Company without Cause or (ii) if a Change in Control of the Company occurs and Employee’s employment with the Company or its successor Terminates In Connection With a Change in Control and in the absence of any event or circumstance constituting Cause, then, in either case: (A) Employee will be entitled to receive from the Company an amount in severance equal to one year of Employee’s then-current base salary (the “Severance Amount”). The Severance Amount will be paid in a lump sum promptly after Employee has executed and delivered to the Company a mutual release, in form and substance satisfactory to the Company, of all claims arising in connection with Employee’s employment with the Company and termination thereof; (B) Employee will be entitled to receive, for a period of 12 full calendar months from the date of his termination (the “Termination Date”), medical and dental benefits coverage for Employee and/or his dependents through the Company’s available plans at the time and the Company will be responsible to continue payment of all applicable deductions for premium costs. After the Company’s obligation to pay the premiums for health and dental coverage Employee and/or his dependents will be eligible to continue plan participation under COBRA; and (C) Notwithstanding anything to the contrary in the option plan pursuant to which Employee’s options were granted, all options granted to Employee prior to the Termination Date (the “Options”) shall automatically vest and become fully exercisable as of the Termination Date notwithstanding any vesting or performance conditions applicable thereto, and such Options shall remain exercisable for (i) one year following the Termination Date or (ii) if the plan or grant agreement pursuant to which certain Options were granted provides that such Options will be exercisable for a period longer than one year in circumstances where Employee is terminated without Cause or Employee’s employment Terminates In Connection With a Change in Control, then such longer exercise period shall apply with respect to such Options; provided that, in either case, (A) in no event will Options be exercisable beyond the duration of the original term thereof and (B) if the Options qualify as an incentive stock option under the Internal Revenue Code and applicable regulations thereunder, the exercise period thereof shall not be extended in such a manner as to cause the Options to cease to qualify as an incentive stock option unless Executive elects to forego incentive stock option treatment and extend the exercise period thereof as provided herein.

  • Cash Severance The Company shall make a single lump sum severance payment to Executive in an amount equal to Executive’s Base Annual Salary in effect as of the Termination Date plus an amount equal to Executive’s Annual Bonus target in effect as of the Termination Date, less required tax withholdings and deductions (the “Change in Control Payment”). The Change in Control Payment will be paid within sixty (60) days after the Termination Date, but in no event later than March 15 of the year following the year of termination.

  • COBRA Severance As an additional Severance Benefit, the Company will continue to pay the cost of your health care coverage in effect at the time of your Separation from Service for a maximum number of months as set forth on Appendix A (the “COBRA Months”) either under the Company’s regular health plan (if permitted), or by paying your COBRA premiums (the “COBRA Severance”). The Company’s obligation to pay the COBRA Severance on your behalf will cease if you obtain health care coverage from another source (e.g., a new employer or spouse’s benefit plan), unless otherwise prohibited by applicable law. You must notify the Company within two weeks if you obtain coverage from a new source. This payment of COBRA Severance by the Company would not expand or extend the maximum period of COBRA coverage to which you would otherwise be entitled under applicable law. Notwithstanding the above, if the Company determines in its sole discretion that it cannot provide the foregoing COBRA Severance without potentially violating applicable law (including, without limitation, Section 2716 of the Public Health Service Act), the Company shall in lieu thereof provide to you a taxable monthly payment in an amount equal to the monthly COBRA premium that you would be required to pay to continue your group health coverage in effect on the date of your termination (which amount shall be based on the premium for the first month of COBRA coverage), which payments shall be made on the last day of each month regardless of whether you elect COBRA continuation coverage and shall end on the earlier of (i) the date upon which you obtain other coverage or (ii) the last day of the month that is the last full month of the number of COBRA Months following your Separation from Service date.