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Bonus Eligibility After Termination
Summary
The bonus agreement requires active employment on issuance dates for installment eligibility. Termination without cause may not affect the second installment, as forfeiture applies only to resignation or termination for cause. Consult a lawyer for a detailed assessment.Full Conversation
Will you please analyze this document and provide your opinion on whether the employee is due the second installment of a bonus after being terminated without cause on a date after the first installment was paid but prior to the second being paid?
Hey ****! To help you better, I'll need to know a bit more. Does the bonus agreement specify any conditions about employment status at the time of the second installment payment?
here is the relevant information
I can't analyze documents directly, but I can help guide you on what to look for. Check the bonus agreement for clauses that specify:
- Employment status requirements for receiving the second installment.
- Any conditions or terms related to termination.
- Definitions of "cause" or "without cause."
This can clarify eligibility for the bonus.
- Employment status requirements for receiving the second installment.
- Any conditions or terms related to termination.
- Definitions of "cause" or "without cause."
This can clarify eligibility for the bonus.
PART * : For the avoidance of doubt, any previous Retention Bonus payment and its related clawback will continue to be enforceable. You will be eligible for an additional retention bonus of one hundred thousand dollars ($*,*) (the “Additional Retention Bonus”). The Additional Retention is intended to compensate you for an additional three (*) years of service with the Company. To effectuate these ends, the Additional Retention Bonus will be paid in two (*) installments as follows, provided you are actively employed by Company on each issuance date:
Case Rating: *
****, based on the information you provided, here are a few key points to consider:
- The agreement specifies that you must be "actively employed by the Company on each issuance date" to receive the installments.
- If terminated without cause before the second installment, eligibility might be affected.
Do you have any details on whether there's a clause regarding termination "without cause"?
****, based on the information you provided, here are a few key points to consider:
- The agreement specifies that you must be "actively employed by the Company on each issuance date" to receive the installments.
- If terminated without cause before the second installment, eligibility might be affected.
Do you have any details on whether there's a clause regarding termination "without cause"?
PART *: Seventy thousand dollars ($*,*) will be paid to you on the first (1st) regular Company payroll following the signature of this Addendum (the “Issuance Date”); andThirty thousand dollars ($*,*) will be paid to you on the regular Company payroll following the one (*) year anniversary of the Issuance Date.
In the event that you resign or are terminated for Cause prior to the three (*) year anniversary of the Issuance Date, you will forfeit any unpaid installments of the Additional Retention Bonus and will repay Company a daily pro rata amount of this Additional Retention Bonus based on the actual installments received by you, and the number of days you were employed by Company over the three (*) year period.
Case Rating: *
Based on the details provided, here's a summary of the key points:
- You must be "actively employed" on each issuance date to receive the bonus installments.
- If terminated without cause, this may affect eligibility for the second installment.
- The clause mentions forfeiture only for resignation or termination "for Cause," not without cause.
Since the agreement does not explicitly address termination without cause, you may have a valid claim for the second installment if terminated without cause. Consider consulting a lawyer to assess the specifics of your situation and agreement more thoroughly.
Based on the details provided, here's a summary of the key points:
- You must be "actively employed" on each issuance date to receive the bonus installments.
- If terminated without cause, this may affect eligibility for the second installment.
- The clause mentions forfeiture only for resignation or termination "for Cause," not without cause.
Since the agreement does not explicitly address termination without cause, you may have a valid claim for the second installment if terminated without cause. Consider consulting a lawyer to assess the specifics of your situation and agreement more thoroughly.
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