Severance clause samples

(a) Cash Severance. In lieu of any severance benefit otherwise payable to Employee, the Company shall pay to Employee a lump sum severance payment, in cash, equal to two times the sum of Employee’s “Annual Base Salary” and “Average Bonus” (each as defined in Section16), which amount shall be payable within 60 calendar days following the Date of Termination (provided that if the 60-day payment period begins in one calendar year and ends in the next calendar year, then to the extent required to comply with Section409A of the Internal Revenue Code of 1986, as amended (the “Code”) the payment shall be made in the second calendar year).

• Cash Severance. The Company will pay you, as cash severance, twelve (12)months of your Base Salary in effect as of your Separation from Service date, less applicable payroll deductions and withholdings (the “Cash Severance”). The Cash Severance will be paid in a lump sum on the Company’s first regular payroll date that is at least one (1)week following the effectiveness of the Release (defined below) (subject to the Compliance with Section409A provision set forth below).

• COBRA Severance. If you timely elect continued coverage under COBRA, 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 of six (6)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 (2)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, Section2716 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 (x)the date upon which you obtain other coverage or (y)the last day of the sixth (6th) calendar month following your Separation from Service date.

SECTION 6. Amendments; Waiver. This Agreement contains the entire agreement of the parties with respect to severance payments and benefits payable in connection with a Severance. No amendment or modification of this Agreement shall be valid unless evidenced by a written instrument executed by the parties hereto. No waiver by either party of any breach by the other party of any provision or condition of this Agreement shall be deemed a waiver of any similar or dissimilar provision or condition at the same or any prior or subsequent time.

B. Payment of Severance. Subject to Section18, the severance payment to be made hereunder shall be paid to the Eligible Employee in a single lump-sum cash payment, less any required tax withholding, on the date that is sixty (60) calendar days following the date of the Eligible Employee’s Covered Termination, conditioned upon the Eligible Employee having complied, prior to that date with the requirements of Section10 hereof regarding a release of claims.

b. COBRA Severance. A lump sum payment equal to the cost of continued health coverage under COBRA, as described in Section4.2 of the Plan, for a period of [Level 1: [] months; Level2: [] months] following the date of your Involuntary Termination (less applicable withholding taxes).

XML 44 R20.htm IDEA: XBRL DOCUMENT /* Do Not Remove This Comment */ function toggleNextSibling (e) { if (e.nextSibling.style.display=='none') { e.nextSibling.style.display='block'; } else { e.nextSibling.style.display='none'; } } v3.7.0.1 Severance Charges 12 Months Ended Feb. 03, 2017 Restructuring and Related Activities [Abstract] SEVERANCE CHARGES SEVERANCE CHARGESIn connection with the transformation of the Company's business model, the Company incurs costs related to employee severance. The Company records a liability for these costs when it is probable that employees will be entitled to termination benefits and the amounts can be reasonably estimated. The liability related to these actions is included in accrued and other current liabilities in the Consolidated Statements of Financial Position and was $416 million and $26 million as of February3, 2017 and January29, 2016, respectively. In connection with the EMC merger transaction, the Company assumed a liability of $70 million, which represents the fair value of the outstanding obligation of EMC's legacy severance programs. The Company has determined that it will manage the remainder of these programs as part of its ongoing severance actions. Accordingly, the Company has included the liability related to these programs in the table below.The following table sets forth the activity related to the Company's severance liability for the respective periods:Severance Costs(in millions)Balance as of January 31, 2014$433Severance charges to provision46Cash paid and other(384)Balance as of January 30, 201595Severance charges to provision20Cash paid and other(89)Balance as of January 29, 201626Severance liability assumed through EMC merger transaction70Severance charges to provision541Cash paid and other(221)Balance as of February 3, 2017$416Severance costs are included in cost of net revenue, selling, general, and administrative expenses, and research and development expense in the Consolidated Statements of Income (Loss) as follows:Fiscal Year EndedFebruary 3, 2017January 29, 2016January 30, 2015(in millions)Severance charges:Cost of net revenue$122$1$21Selling, general, and administrative355(1)20Research and development64205Total$541$20$46 X - ReferencesNo definition available.