Common use of Separation Payment Clause in Contracts

Separation Payment. Subject to execution and non-revocation of this Agreement and continued compliance with all restrictive covenants to which Executive is subject, (i) Executive will receive severance payments equal to six months of his Base Salary at the time of such termination, less applicable withholding, payable over a period of six months after the date of Separation, (ii) during the six-month severance period, the Company will pay the premiums to continue Executive’s group health insurance coverage under COBRA if he is eligible for COBRA and has elected continuation coverage under the applicable rules; provided, that the Company’s COBRA obligations shall immediately cease to the extent Executive becomes eligible for benefits from a subsequent employer and (iii) Executive will continue to receive the Retention Bonus payments that would have been earned if Executive’s employment continued for an additional six months following the date of Separation, payable on the same schedule as set forth in Section 3(f) of the Employment Agreement. Severance payments under subsection (i) will be made periodically in accordance with the Company’s normal payroll schedule. The severance payments in subsections (i) through (iii) will commence on the date on which the applicable release revocation period in Section 17 has expired; provided, that if the release delivery and revocation period spans two taxable years, the severance payments shall be paid (or commence) on the first business day of such second taxable year, with the first payment including any amounts that would otherwise be due prior thereto. If Executive elects to continue COBRA coverage after the end of the six-month severance period, such continuation coverage shall be entirely at his own expense. Notwithstanding the foregoing, if, during the six-month severance period, Executive obtains insurance coverage through a new employer or Medicare, the Company shall have no further obligation to pay any portion of the premiums for continuation coverage under the Company’s group health insurance plans.

Separation Payment. Subject to execution Company shall pay Employee separation payment in the total amount of, $275,040.00, less normal payroll deductions, including income tax withholding and non-revocation of this Agreement and continued compliance with all restrictive covenants to which Executive is subjectFICA, (i“Separation Payment”). The Separation Payment shall be paid to the Employee as follows: (a) Executive will receive severance an initial payment in the amount of $171,900 shall be made on February 21, 2011; and (b) the remainder of the Separation Payment shall be paid in nine (9) semi-monthly payments equal commencing on February 28, 2011 and ending on June 30, 2011. Company also agrees to six months of his Base Salary at the time of such termination, less applicable withholding, payable over pay Employee’s premiums for medical and dental benefits coverage under COBRA for a period of six twelve (12) months after from the date Resignation Date until August 18, 2011. Such coverage shall be included in and part of SeparationEmployee’s maximum COBRA entitlement due to this qualifying event. Employee acknowledges and agrees that Employee will continue to be responsible for Employee’s portion of premiums for any dependent coverage elected under COBRA, (ii) during which will be credited against the sixsemi-month severance periodmonthly Separation Payment. In the event Employee fails to timely pay his portion of the above premiums, Company shall be entitled to cancel the Company will pay the premiums to continue Executiveemployer’s group health insurance portion of Employee’s coverage under COBRA if due to Employee’s nonpayment. Employee acknowledges and agrees that this Separation Payment does not constitute monies to which he would otherwise be entitled as a result of his employment with the Company, and that these monies constitute fair and adequate compensation for the promises and covenants of the Employee set forth in this Agreement. Employee further acknowledges and agrees that the Separation Payment and above benefits constitutes the full amount of separation payments that Employee is eligible for COBRA and has elected continuation coverage under entitled to receive. If Employee subsequently revokes any portion of this Agreement, Employee shall immediately be obligated to return the applicable rules; provided, that Separation Payment to Company in full. Employee’s participation in the Company’s COBRA obligations shall immediately Retirement Savings and Investment Plan (401k Plan) will cease to the extent Executive becomes eligible for benefits from a subsequent employer and (iii) Executive will continue to receive the Retention Bonus payments that would have been earned if Executive’s employment continued for an additional six months following the date of Separation, payable on the same schedule as set forth in Section 3(fEmployee’s Resignation Date. At that time, Employee should contact ▇▇▇▇ ▇▇▇▇▇▇▇ at (▇▇▇) ▇▇▇-▇▇▇▇ for disposition of the Employment Agreement. Severance payments under subsection (i) will be made periodically in accordance with the CompanyEmployee’s normal payroll schedule. The severance payments in subsections (i) through (iii) will commence on the date on which the applicable release revocation period in Section 17 has expired; provided, that if the release delivery and revocation period spans two taxable years, the severance payments shall be paid (or commence) on the first business day of such second taxable year, with the first payment including any amounts that would otherwise be due prior thereto. If Executive elects to continue COBRA coverage after the end of the six-month severance period, such continuation coverage shall be entirely at his own expense. Notwithstanding the foregoing, if, during the six-month severance period, Executive obtains insurance coverage through a new employer or Medicare, the Company shall have no further obligation to pay any portion of the premiums for continuation coverage under the Company’s group health insurance plansaccount.

Separation Payment. Subject The Company shall pay to execution Executive an amount, less required withholding taxes, equal to the sum of: (1) $600,000, which represents 12 months of Executive’s base salary at the rate in effect as of the Closing Date, (2) $600,000, which constitutes Executive’s annual target bonus opportunity, (collectively, the “Separation Payment”), with the Separation Payment to be paid in a single cash lump sum on, or as soon as administratively practicable after, the Release of Claims becomes effective and non-revocation irrevocable; (3) which is an estimate of 12 months of COBRA premiums based on the health coverage in effect for Executive and Executive’s dependents as in effect immediately prior to the Termination Date; (3) The Company shall pay directly to the Company’s Consolidated Omnibus Reconciliation Act of 1985 ("COBRA") provider 12 months of the employer portion of COBRA continuation expenses as soon as administratively possible, after Executive’s election of COBRA continuation coverage and provided Wolfspeed has received a signed copy of this Agreement, whichever is later. All COBRA contribution obligations shall cease on the earlier of the date Executive terminates COBRA continuation coverage, fails to pay the employee portion of the coverage costs, becomes eligible for new group healthcare coverage or exhausts the maximum COBRA contribution period set forth above. Executive acknowledges these payments will be made only if Executive properly and timely elects to continue health coverage under Wolfspeed’s Health Benefits Plan in accordance with the continuation requirements of COBRA, following the Effective Termination Date. After the expiration of the specified period, Executive shall be entitled to choose to continue such COBRA coverage for the remainder of the COBRA period, at Executive’s own expense. Nothing in this Agreement shall constitute a guarantee of COBRA continuation coverage or benefits. Executive shall be solely responsible for all obligations in electing COBRA continuation coverage and taking all steps necessary to qualify for and maintain such coverage; and (4) Continued Vesting for Certain Options, PSUs, or RSUs. Executive shall have certain rights to continued vesting, as set forth below, for certain unvested performance stock units (“PSUs”), restricted stock units ("RSUs") or options to purchase Company stock ("Options") granted under the 2013 and 2023 Plans, conditioned upon: (a) Executive's fulfillment of Executive's obligations and (b) Executive's continued compliance with all restrictive covenants other terms of this Agreement through each applicable vesting date: Any PSUs, RSUs or unvested Options that are (a) unvested as of the Separation Date, and (b) that would have vested within the twelve (12) month period beginning on and immediately following the Separation Date (the "Post-Termination Vesting Period") had Executive's employment not terminated on the Separation Date, shall continue to vest and become exercisable (in the case of Options) or settle and pay out (in the case of RSUs) in accordance with the time-based vesting schedule that would have applied had Executive's employment not terminated; or paid out based upon actual performance including proration for time of service (where applicable in the case of PSUs); and Except as expressly provided in this Section, all Options, PSUs, and RSUs shall remain subject to the terms and conditions of the applicable awards and the 2013 and 2023 Plans. For clarity and the avoidance of doubt, Executive acknowledges and agrees that all unvested Options, PSUs, or RSUs as of the Separation Date scheduled to vest outside of the Post-Termination Vesting Period shall be immediately and irrevocably forfeited as of the Separation Date. As of the Separation Date, Executive will receive no further equity grants. Executive further acknowledges and agrees that the Compensation Committee of the Company's Board of Directors retains the exclusive right to determine the additional vesting, if any, to which Executive is subject, (i) Executive will receive severance payments equal entitled pursuant to six months of his Base Salary at the time of such termination, less applicable withholding, payable over a period of six months after the date of Separation, (ii) during the six-month severance period, the Company will pay the premiums to continue Executive’s group health insurance coverage under COBRA if he is eligible for COBRA and has elected continuation coverage under the applicable rules; provided, that the Company’s COBRA obligations shall immediately cease to the extent Executive becomes eligible for benefits from a subsequent employer and (iii) Executive will continue to receive the Retention Bonus payments that would have been earned if Executive’s employment continued for an additional six months following the date of Separation, payable on the same schedule as set forth in this Section 3(f) of the Employment Agreement. Severance payments under subsection (i) will be made periodically in accordance with the Company’s normal payroll schedule. The severance payments in subsections (i) through (iii) will commence on the date on which the applicable release revocation period in Section 17 has expired; provided, that if the release delivery and revocation period spans two taxable years, the severance payments shall be paid (or commence) on the first business day of such second taxable year, with the first payment including any amounts that would otherwise be due prior thereto. If Executive elects to continue COBRA coverage after the end terms of the six-month severance period, such continuation coverage shall be entirely at his own expense2013 and 2023 Plans and applicable award agreements thereunder. Notwithstanding Executive agrees to execute any document necessary to permit the foregoing, if, during the six-month severance period, Executive obtains insurance coverage through a new employer or Medicare, the Company shall have no further obligation to pay any portion vesting of the premiums for continuation coverage under the Company’s group health insurance plansshares contemplated in this Section.

Separation Payment. Subject Provided that you agree to execution and non-revocation accept the terms of this Agreement and continued compliance Release, and provided further that you execute the Release of Claims attached hereto as Exhibit A during the 7-day period after the Separation Date and do not thereafter timely revoke it: a. Consistent with all restrictive covenants to which Executive is subjectthe Company’s Severance and Change in Control Program, (i) Executive you will receive severance payments a lump sum payment equal to six ten (10) months of his Base Salary at your current salary, calculated to be $482,040, less required statutory tax deductions and authorized withholdings, payable upon the time Company’s next regular payroll date following the Separation Date, the Company’s receipt of such terminationthe signed Release of Claims and the completion of the revocation period provided for in the Release of Claims. b. The Company shall offer you a Consulting Agreement in the form attached hereto as Exhibit B (the “Consulting Agreement”), which will not become effective until the expiration of the revocation period provided for in the Release of Claims. c. You will remain eligible for a 2025 annual bonus based on the Company’s actual financial results for 2025, as determined by the Company’s Compensation Committee, and subject to the Company’s annual corporate multiplier, less applicable withholdingwithholdings and deductions. Any 2025 bonus is payable at the same time bonuses are paid to continuing employees of the Company in 2026. d. Your medical, dental and vision coverage (if applicable) will remain in effect until December 31, 2025. On January 1, 2026, you will become eligible to elect continuing coverage under COBRA. e. You will receive a lump sum health care allowance of $30,045.22, equal to the cost of your COBRA premiums for ten (10) months, less required statutory tax deductions and authorized withholdings, payable over a period of six months after upon on the Company’s next regular payroll date of Separation, (ii) during following the six-month severance periodSeparation Date, the Company will pay Company’s receipt of the premiums signed Release of Claims and the completion of the revocation period provided for in the Release of Claims. f. The benefits provided in Section 2 above are referred to continue Executive’s group health insurance coverage under COBRA if he in this Agreement and Release as the “Separation Payment.” g. Your eligibility to receive and retain the Separation Payment is eligible for COBRA expressly contingent upon your compliance with each and has elected continuation coverage under the applicable rules; providedevery provision of this Agreement and Release, including without limitation your compliance with Sections 9, 10, 11, 12 and 13. If you fail to comply with this Agreement and Release, including without limitation Sections 9, 10, 11, 12 and 13, you hereby acknowledge and agree that the Company’s COBRA obligations shall immediately cease obligation to provide the extent Executive becomes eligible for payments and benefits from a subsequent employer and (iii) Executive will continue to receive the Retention Bonus payments that would have been earned if Executive’s employment continued for an additional six months following the date of Separation, payable on the same schedule as set forth in Section 3(f) of this Agreement shall immediately cease, you shall reimburse the Employment Agreement. Severance payments under subsection (i) will be made periodically in accordance with Company the Company’s normal payroll schedule. The severance payments in subsections (i) through (iii) will commence on the date on which the applicable release revocation period in Section 17 has expired; provided, that if the release delivery full Separation Payment and revocation period spans two taxable years, the severance payments shall be paid (or commence) on the first business day of such second taxable year, with the first payment including any amounts that would otherwise be due prior thereto. If Executive elects to continue COBRA coverage after the end of the six-month severance period, such continuation coverage shall be entirely at his own expense. Notwithstanding the foregoing, if, during the six-month severance period, Executive obtains insurance coverage through a new employer or Medicare, the Company shall have no further obligation be entitled to pay seek any portion of the premiums for continuation coverage and all rights and remedies under the Company’s group health insurance plansapplicable law.

Separation Payment. Subject to execution Company shall pay Employee separation payment in the total amount of, $275,040.00, less normal payroll deductions, including income tax withholding and non-revocation of this Agreement and continued compliance with all restrictive covenants to which Executive is subjectFICA, (i“Separation Payment”). The Separation Payment shall be paid to the Employee as follows: (a) Executive will receive severance an initial payment in the amount of $148,980 shall be made on January 15, 2011; and (b) the remainder of the Separation Payment shall be paid in eleven (11) semi-monthly payments equal commencing on January 31, 2011 and ending on June 30, 2011. Company also agrees to six months of his Base Salary at the time of such termination, less applicable withholding, payable over pay Employee’s premiums for medical and dental benefits coverage under COBRA for a period of six twelve (12) months after from the date Resignation Date until July 15, 2011. Such coverage shall be included in and part of SeparationEmployee’s maximum COBRA entitlement due to this qualifying event. Employee acknowledges and agrees that Employee will continue to be responsible for Employee’s portion of premiums for any dependent coverage elected under COBRA, (ii) during which will be credited against the sixsemi-month severance periodmonthly Separation Payment. In the event Employee fails to timely pay his portion of the above premiums, Company shall be entitled to cancel the Company will pay the premiums to continue Executiveemployer’s group health insurance portion of Employee’s coverage under COBRA if due to Employee’s nonpayment. Employee acknowledges and agrees that this Separation Payment does not constitute monies to which he would otherwise be entitled as a result of his employment with the Company, and that these monies constitute fair and adequate compensation for the promises and covenants of the Employee set forth in this Agreement. Employee further acknowledges and agrees that the Separation Payment and above benefits constitutes the full amount of separation payments that Employee is eligible for COBRA and has elected continuation coverage under entitled to receive. If Employee subsequently revokes any portion of this Agreement, Employee shall immediately be obligated to return the applicable rules; provided, that Separation Payment to Company in full. Employee’s participation in the Company’s COBRA obligations shall immediately Retirement Savings and Investment Plan (401k Plan) will cease to the extent Executive becomes eligible for benefits from a subsequent employer and (iii) Executive will continue to receive the Retention Bonus payments that would have been earned if Executive’s employment continued for an additional six months following the date of Separation, payable on the same schedule as set forth in Section 3(fEmployee’s Resignation Date. At that time, Employee should contact ▇▇▇▇ ▇▇▇▇▇▇▇ at (▇▇▇) ▇▇▇-▇▇▇▇ for disposition of the Employment Agreement. Severance payments under subsection (i) will be made periodically in accordance with the CompanyEmployee’s normal payroll schedule. The severance payments in subsections (i) through (iii) will commence on the date on which the applicable release revocation period in Section 17 has expired; provided, that if the release delivery and revocation period spans two taxable years, the severance payments shall be paid (or commence) on the first business day of such second taxable year, with the first payment including any amounts that would otherwise be due prior thereto. If Executive elects to continue COBRA coverage after the end of the six-month severance period, such continuation coverage shall be entirely at his own expense. Notwithstanding the foregoing, if, during the six-month severance period, Executive obtains insurance coverage through a new employer or Medicare, the Company shall have no further obligation to pay any portion of the premiums for continuation coverage under the Company’s group health insurance plansaccount.