Right to Severance Payments Clause Samples

The Right to Severance Payments clause establishes an employee's entitlement to receive compensation upon termination of employment under certain conditions, such as layoffs or dismissals without cause. Typically, this clause outlines the calculation method for severance—often based on factors like length of service or salary—and may specify exclusions, such as termination for misconduct. Its core function is to provide financial protection to employees facing involuntary job loss, ensuring a smoother transition and mitigating the impact of sudden unemployment.
Right to Severance Payments. (a) In the event that the Executive's employment with the Company is terminated by the Company, then the Company shall continue to pay the Executive, at the Company's regular payroll intervals, the amount of his Base Salary in effect on the date of termination (the "Base Rate") for twenty-six (26) consecutive weeks following the date of termination. Thereafter, the Company shall continue to pay the Executive, at the Company's regular payroll intervals, the Base Rate for an additional twenty-six (26) consecutive week period (the "Subsequent Period"); provided that any economic benefit or advantage earned or accrued by the Executive from rendering employment, consulting or similar services or from self-employment during the Subsequent Period shall reduce the amount of Base Rate to be paid to the Executive each pay period on a dollar-for- dollar basis. All obligations of the Company to pay the Base Rate shall terminate upon the expiration of the Subsequent Period without regard to the Executive's employment status at that time. The Executive shall report his "Earnings" (defined as any and all economic benefits or advantages earned or accrued by Executive from employment, consulting, or similar services or from self-employment activities, but excluding life, medical and disability insurance or other similar, non-monetary compensation), on a weekly basis no later than the close of business on the Tuesday of the next succeeding week. At such time, the Executive shall also report the nature and source of such Earnings to the Company and the Company shall have the right to confirm the amount thereof with the source and, in addition to any other rights the Company may have at law or in equity, to withhold payment of the Base Rate to the extent such source or any other source discloses that the Executive has Earnings during any week which are in excess of those reported by the Executive with respect to such week. The severance pay, if any, expressly granted under this Section 2(a) shall be the sole and exclusive compensation, benefit and remedy due to the Executive or his representatives upon the Company's termination of the Executive's employment. (b) Notwithstanding the foregoing, the Company shall have no obligation to make the payment referred to in Section 2(a) if the Executive's employment is terminated as a result of the Executive's death, Disability or retirement, or if Executive's employment is terminated by the Company for Cause.
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Right to Severance Payments. Executive will no longer have the right to receive severance payments if their employment with Company terminates.
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Right to Severance Payments. (a) In the event that (i) the Executive's employment with the Company is terminated by the Company within one year following a Change of Control, or (ii) the Executive's employment with the Company is terminated by the Company at any time without Cause, the Company shall continue to pay the Executive, at the Company's regular payroll intervals, the amount of his Base Salary in effect on the date of termination for one year following the date of termination, up to a maximum of $500,000. Any severance pay, if any, expressly granted under this Section 2, shall be the sole and exclusive compensation, benefit and remedy due to Executive or his representatives upon any termination of Executive's employment with the Company for any reason. (b) Notwithstanding the foregoing, the Company shall have no obligation to make the payment referred to in Section 2(a) above in the event the Executive's employment is terminated by the Company or the Executive as a result of the Executive's death, Disability, retirement, or if Executive's employment is terminated by the Company for Cause (including following a Change in Control). In addition, it is understood and agreed that the Company shall have no obligation to make the payment referred to in Section 2(a) in the event the Executive's employment with the Company is terminated by Executive.
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Right to Severance Payments. (a) In the event that the Executive's employment with the Company is terminated by the Company, or if the Executive terminates his employment following any demotion or decrease in Base Salary, which, in each case, occurs (i) following a Change of Control, or (ii) at any time after ▇▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇ is no longer the person to whom the Executive reports or the person who has ultimate control over the Executive's employment, then the Company shall continue to pay the Executive, at the Company's regular payroll intervals, the amount of his Base Salary in effect on the date of termination for one year following the date of termination. The severance pay, if any, expressly granted under this Section 2 shall be the sole and exclusive compensation, benefit and remedy due to the Executive or his representatives upon any termination of the Executive's employment with the Company for any reason described in this Section 2(a). (b) Notwithstanding the foregoing, the Company shall have no obligation to make the payment referred to in Section 2(a) if the Executive's employment is terminated as a result of the Executive's death, Disability or retirement, or if Executive's employment is terminated by the Company for Cause (including following a Change in Control). In addition, it is understood and agreed that the Company shall have no obligation to make the payment referred to in Section 2(a) if the Executive voluntarily terminates his employment unless he does so following his demotion or a decrease in his Base Salary. Accordingly, the parties specifically agree that if the Executive's employment is terminated for any reason other than those set forth in Section 2(a), the Executive's rights and remedies, if any, shall be governed by the Company's then current termination and severance policies generally applicable to senior executives.
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Related to Right to Severance Payments

  • Right to Severance Benefits The Executive shall be entitled to receive from the Company Severance Benefits, as described in Section 3.3 herein, if there has been a Change in Control of the Company and if, within twenty-four (24) calendar months following the Change in Control, a Qualifying Termination of the Executive has occurred. The Executive shall not be entitled to receive Severance Benefits if he/she is terminated for Cause, or if his/her employment with the Company ends due to death, Disability, or Retirement or due to a voluntary termination of employment by the Executive without Good Reason.

  • Severance Payments 5.1 The Company shall pay the Executive the payments described in this Section 5.1 ("Severance Payments") upon the termination of the Executive's employment following a Change in Control during the term of this Agreement, including the Executive's termination of employment for Good Reason, unless such termination is (a) by the Company for Cause, or (b) by reason of the Executive's Death or Disability. The Executive's employment shall be deemed to have been terminated following a Change in Control by the Company without Cause if the Executive's employment is terminated prior to a Change in Control without Cause at the direction (or action which constitutes a direction) of a Person who has entered into an agreement with the Company the consummation of which will constitute a Change in Control. (i) Within three (3) business days after the Date of Termination, the Company shall make a lump sum or monthly, at the Executive's option, cash severance payment to the Executive in an amount equal to: (x) the Executive's annual base salary in effect immediately prior to the occurrence of the event or circumstance upon which the Notice of Termination is based or in effect immediately prior to the Change in Control; and (y) a pro-rated portion of Executive's Targeted Annual Bonus for the fiscal year in which the Date of Termination occurs. (ii) For a twelve (12) month period after the Date of Termination, the Company shall arrange to provide the Executive with medical and dental insurance benefits substantially similar to those that the Executive is receiving immediately prior to the Notice of Termination. Benefits otherwise receivable by the Executive pursuant to this Section 5.1(ii) shall be reduced to the extent comparable benefits are actually received by or made available to the Executive without cost during the twelve (12) month period following the Executive's termination of employment (and any such benefits actually received by the Executive shall be reported to the Company by the Executive). 5.2 The Company also shall pay to the Executive all legal fees and expenses incurred by the Executive in disputing the non-payment of Severance Payments in connection with a termination which entitles the Executive to Severance Payments. Such payments shall be made within five (5) business days after delivery of the Executive's written request for payment accompanied with such evidence of fees and expenses incurred as the Company reasonably may require.

  • Lump Sum Severance Payment Payment of a lump sum amount equal to twelve (12) months of Executive’s then-current Base Salary plus the Pro Rated Bonus, less all customary and required taxes and employment-related deductions, paid on the first payroll date following the date on which the Release required by Paragraph 4(g) becomes effective and non-revocable, but not after seventy (70) days following the effective date of termination from employment.

  • Severance Payment If, during the Employment Term at any time during the period of twelve (12) consecutive months following the occurrence of a Change in Corporate Control, the Executive is involuntarily terminated (other than for Cause) or the Executive terminates his employment for Good Reason, then subject to compliance with the restrictive covenants in Section 9 and Section 10 and the execution and timely return by the Executive of the Release, the Executive shall be entitled to receive a lump sum severance payment equal to the present value of a series of monthly payments for twenty-four (24) months, each in an amount equal to one-twelfth (1/12th) of the sum of (i) the Executive’s Base Salary, as in effect at the time of the Change in Corporate Control, and (ii) the average of the annual bonuses paid to the Executive for the prior two fiscal years of the Company ending prior to the Change in Corporate Control, if any. Such present value shall be calculated using a discount rate equal to the interest rate on 90-day Treasury bills, as reported in the Wall Street Journal (or similar publication) on the date of the Change in Corporate Control. Such lump sum payment shall be made to the Executive within sixty (60) days following the date of such involuntary termination. In addition, if during the Employment Term within twelve (12) months after a Change in Corporate Control the Executive is involuntarily terminated (other than for Cause) or the Executive terminates his employment for Good Reason, he shall be entitled to continued coverage at the Company’s expense under any health insurance programs maintained by the Company in which the Executive participated at the time of his termination, which coverage shall be continued for eighteen (18) months or until, if earlier, the date the Executive obtains comparable coverage under a group health plan maintained by a new employer. To the extent the benefits provided under the immediately preceding sentence are otherwise taxable to the Executive, such benefits, for purposes of Section 409A of the Code (and the regulations and other guidance issued thereunder) shall be provided as separate monthly in-kind payments of those benefits, and to the extent those benefits are subject to and not otherwise excepted from Section 409A of the Code, the provision of the in-kind benefits during one calendar year shall not affect the in-kind benefits to be provided in any other calendar year.

  • Timing of Severance Payments Any severance payment to which Employee is entitled under Sections 3(a)(i)(1), 3(a)(i)(2) and 3(a)(i)(5) shall be paid by the Company to the Employee (or to the Employee's successors in interest pursuant to Section 7(b)) in cash and in full, not later than thirty (30) calendar days following the Termination Date, subject to any delay required under Section 9.