Common use of Retention Amount Clause in Contracts

Retention Amount. As additional consideration for this Agreement, as well as the Nonsolicitation and Noncompete Agreement, the Company agrees to place the sum of $1,000,000 in an interest bearing account, which will be invested in accordance with the Company’s deferred compensation policy (such amount, plus any interest or other earnings accruing thereon, the “Retention Amount”). In the event that Employee voluntarily terminates employment with the Company or is terminated for “Misconduct” (as defined below) prior to the completion of four (4) years of continuous employment commencing on the Effective Date, Employee shall forfeit all rights to any portion of the Retention Amount. In the event that Employee completes four (4) years of continuous employment commencing on the Effective Date or is terminated by the Company for any reason other than Misconduct prior to such time, Employee shall receive the Retention Payment not later than fifteen (15) days after the fourth anniversary of the Effective Date or such earlier Date of Termination (defined below). Employee shall be responsible for all applicable taxes in respect of the Retention Amount.