Common use of Right to Severance Payments Clause in Contracts

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.