Disability of Employee. If Employee is unable to perform his duties pursuant to this Agreement by reason of illness or incapacity for a period of three (3) consecutive months (a “Temporary Disability”), and all sick days, vacation days, and other paid absences have been exhausted, Employee’s base salary will be reduced by 50% until he is able to return to full-time employment. Except for the reduction of base salary, Employee shall be entitled to receive the full benefits provided for in this Agreement during Employee’s Temporary Disability. Employee’s employment will be automatically terminated if Employee is unable to perform his duties pursuant to this Agreement by reason of illness or incapacity for a period of more than six (6) consecutive months, or for six (6) months during any 12-month period (a “Permanent Disability”). In the event of a Permanent Disability, Employee shall receive his full base salary and benefits for an additional six (6) months following the date employee is determined to be Permanently Disabled. Notwithstanding the foregoing, if the Bank provides a disability insurance policy to Employee which provides a qualification period for Permanent Disability which is less than six (6) months, Employee shall be deemed Permanently Disabled as of the date determined in accordance with the policy. Compensation paid to Employee during any period of Temporary or Permanent Disability shall be reduced by workers’ compensation benefits and disability benefits received by Employee pursuant to a disability policy purchased by the Bank. Base salary and other benefits due Employee during a period of disability shall be paid in the same manner as otherwise provided in this Agreement. The term disability, as used in this Paragraph, shall mean that Employee is unable to perform his duties on a substantially full-time basis, as determined by the Board after taking into account such medical certifications as the Board may require; provided, however, if the Bank has purchased a disability policy for Employee, the term “Disability” shall be defined in the same manner as used in the policy.
Appears in 2 contracts
Samples: Employment Agreement (Coast Financial Holdings Inc), Employment Agreement (Coast Financial Holdings Inc)
Disability of Employee. If Employer has disability insurance insuring those individuals holding the position of Executive Vice President/Division President and above, and Employee is unable to perform his duties pursuant to included under such disability insurance. In the event of the Disability (as hereinafter defined) of Employee, this Agreement by reason and the Employment Term shall terminate. Upon a termination resulting from the Disability of illness or incapacity for a period of three (3) consecutive months (a “Temporary Disability”), and all sick days, vacation days, and other paid absences have been exhausted, Employee’s base salary will be reduced by 50% until he is able to return to full-time employment. Except for the reduction of base salary, Employee shall be entitled to receive the full benefits provided for in this Agreement during Employee’s Temporary Disability. Employee’s employment will be automatically terminated if Employee is unable to perform his duties pursuant to this Agreement by reason of illness or incapacity for a period of more than six (6i) consecutive months, or for six (6) months during any 12-month period (a “Permanent Disability”). In the event of a Permanent Disability, Employee shall receive his full base salary and benefits for an additional six (6) months following Base Salary earned but not paid through the date employee is determined that Employee becomes eligible for disability payments under such disability insurance, and (ii) an amount equal to be Permanently Disabled. Notwithstanding the foregoingBase Salary and bonus received by Employee in the last full fiscal year of Employer immediately prior to the Disability of Employee, if the Bank provides a disability insurance policy to Employee which provides a qualification period for Permanent Disability which is less than six (6) months, Employee amount shall be deemed Permanently Disabled as payable, at the option of the date determined Employee, in a lump sum payment or in equal installments paid in accordance with the policy. Compensation paid to Employee during any period general payroll policies of Temporary or Permanent Disability shall be reduced by workers’ compensation benefits and disability benefits received by Employee pursuant to a disability policy purchased by the Bank. Base salary and other benefits due Employee during Employer over a period not to exceed three (3) years from the effective date of disability shall be paid in a termination due to the same manner as otherwise provided in this Agreement. The term disability, as used in this Paragraph, shall mean that Employee is unable to perform his duties on a substantially full-time basis, as determined by the Board after taking into account such medical certifications as the Board may requireDisability of Employee; provided, however, that Employee shall not be entitled to any payments under this Section 5.2 in the event this Agreement is terminated pursuant to Section 4.1.2 hereof regardless of whether the "cause" for which this Agreement is terminated pursuant to Section 4.1.2 also may constitute a Disability. For purposes of this Agreement, a "Disability" of Employee shall occur if (i) Employee suffers any mental or physical condition that impairs Employee's ability to perform the Bank has purchased a disability policy for essential functions of his duties hereunder and (ii) Employee, the term “Disability” shall be defined in the same manner as used in the policywithin thirty (30) days after Employee receives written notice from Employer requesting that Employee resume his duties hereunder, is unable or refuses to do so.
Appears in 2 contracts
Samples: Employment Agreement (Shoneys Inc), Employment Agreement (Shoneys Inc)
Disability of Employee. If Employer has disability insurance insuring those individuals holding management positions, and Employee is unable to perform his duties pursuant to included under such disability insurance. In the event of the Disability (as hereinafter defined) of Employee, this Agreement by reason and the Employment Term shall terminate. Upon a termination resulting from the Disability of illness or incapacity for a period of three (3) consecutive months (a “Temporary Disability”), and all sick days, vacation days, and other paid absences have been exhausted, Employee’s base salary will be reduced by 50% until he is able to return to full-time employment. Except for the reduction of base salary, Employee shall be entitled to receive the full benefits provided for in this Agreement during Employee’s Temporary Disability. Employee’s employment will be automatically terminated if Employee is unable to perform his duties pursuant to this Agreement by reason of illness or incapacity for a period of more than six (6i) consecutive months, or for six (6) months during any 12-month period (a “Permanent Disability”). In the event of a Permanent Disability, Employee shall receive his full base salary and benefits for an additional six (6) months following Base Salary earned but not paid through the date employee is determined that Employee becomes eligible for disability payments under such disability insurance, and (ii) an amount equal to be Permanently Disabled. Notwithstanding the foregoingBase Salary and bonus received by Employee in the last full fiscal year of Employer immediately prior to the Disability of Employee, if the Bank provides a disability insurance policy to Employee which provides a qualification period for Permanent Disability which is less than six (6) months, Employee amount shall be deemed Permanently Disabled as payable, at the option of the date determined Employee, in a lump sum payment or in equal installments paid in accordance with the policy. Compensation paid to Employee during any period general payroll policies of Temporary or Permanent Disability shall be reduced by workers’ compensation benefits and disability benefits received by Employee pursuant to a disability policy purchased by the Bank. Base salary and other benefits due Employee during Employer over a period not to exceed three (3) years from the effective date of disability shall be paid in a termination due to the same manner as otherwise provided in this Agreement. The term disability, as used in this Paragraph, shall mean that Employee is unable to perform his duties on a substantially full-time basis, as determined by the Board after taking into account such medical certifications as the Board may requireDisability of Employee; provided, however, that Employee shall not be entitled to any payments under this Section 5.2 in the event this Agreement is terminated pursuant to Section 4.1.2 hereof regardless of whether the "cause" for which this Agreement is terminated pursuant to Section 4.1.2 also may constitute a Disability. For purposes of this Agreement, a "Disability" of Employee shall occur if (i) Employee suffers any mental or physical condition that impairs Employee's ability to perform the Bank has purchased a disability policy for essential functions of his duties hereunder and (ii) Employee, the term “Disability” shall be defined in the same manner as used in the policywithin thirty (30) days after Employee receives written notice from Employer requesting that Employee resume his duties hereunder, is unable or refuses to do so.
Appears in 2 contracts
Samples: Employment Agreement (Phoenix Restaurant Group Inc), Employment Agreement (Phoenix Restaurant Group Inc)
Disability of Employee. If Employee is unable to perform his duties pursuant to this Agreement by reason of illness or incapacity for a period of three (3a) consecutive months (a “Temporary Disability”), and all sick days, vacation days, and other paid absences have been exhausted, Employee’s base salary will be reduced by 50% until he is able to return to full-time employment. Except for the reduction of base salary, Employee shall be entitled to receive the full benefits provided for in this Agreement during Employee’s Temporary Disability. Employee’s employment will be automatically terminated if Employee is unable to perform his duties pursuant to this Agreement by reason of illness or incapacity for a period of more than six (6) consecutive months, or for six (6) months during any 12-month period (a “Permanent Disability”). In the event of a Permanent Disabilitythat Employee becomes "mentally or physically disabled" (as hereinafter defined) during the Employment Period, Employee Employer shall receive his full base salary and benefits for an additional six (6) months following the date employee is determined continue to be Permanently Disabled. Notwithstanding the foregoing, if the Bank provides a disability insurance policy pay Employee's Base Wages to Employee for the remainder of the year after the onset of such disability, at the same monthly rate earned by Employee immediately prior to his disability. The amount of the bonus which provides a qualification period Employee is to receive under Section 2(c) hereof for Permanent Disability which is less than six (6) months, Employee the year of the onset of the disability shall be deemed Permanently Disabled determined and paid as if Employee had not been disabled. After the year of the date onset of the disability and until the end of the Employment Period (which for purposes of this sentence shall be June 30, 2007), Employer shall provide the following to Employee: disability wage continuation payments, for the remainder of Employee's life, equal to, on an annual basis, sixty percent (60%) of the average annual Employee's Base Wages (exclusive of any reduction for Defined Benefit Payments) for the previous three consecutive years of employment prior to the year of the onset of the disability with the Employer, less applicable withholding taxes, payable not less frequently than semi-monthly ("Disability Wage Continuation Payments") and (ii) annual bonus payments, for the remainder of Employee's life, equal to sixty percent (60%) of Employee's average annual bonus payment for the previous three consecutive years of employment with the Employer (as such bonus is determined in accordance with Section 2(c)), less applicable withholding taxes ("Bonus Continuation Payments"); provided that the policy. Compensation paid to Employee during any period of Temporary or Permanent Disability Wage Continuation Payments and Bonus Continuation Payments shall be reduced by workers’ compensation benefits the amount of any insurance payments made to Employee or his spouse under any insurance plans provided and disability benefits received paid for by Employer or any of its subsidiaries or affiliates and any Defined Benefit Payments made to Employee pursuant or his spouse. If Employee shall die prior to a disability policy purchased by June 30, 2007, but after Employee becomes mentally or physically disabled, then the Bank. Base salary and other benefits due Employee during a period provisions of disability Section 6 hereof shall be paid in the same manner as otherwise provided in this Agreement. The term disability, as used in this Paragraph, shall mean that Employee is unable to perform his duties on a substantially full-time basis, as determined by the Board after taking into account such medical certifications as the Board may require; provided, however, if the Bank has purchased a disability policy for Employee, the term “Disability” shall be defined in the same manner as used in the policyapply.
Appears in 1 contract
Samples: Employment Agreement (Hawk Corp)
Disability of Employee. If Employee is unable to perform his duties pursuant to becomes disabled during the term of this Agreement by reason of illness or incapacity and such disability continues for a period of three one hundred eighty (3180) consecutive months (a “Temporary Disability”), and all sick days, vacation daysEmployers, and other paid absences have been exhausted, Employee’s base salary will be reduced by 50% until he is able to return to full-time employment. Except for the reduction of base salary, Employee shall be entitled to receive the full benefits provided for in this Agreement during Employee’s Temporary Disability. Employee’s employment will be automatically terminated if Employee is unable to perform his duties pursuant to this Agreement by reason of illness vote or incapacity for a period of more than six (6) consecutive months, or for six (6) months during any 12-month period (a “Permanent Disability”). In the event of a Permanent Disability, Employee shall receive his full base salary and benefits for an additional six (6) months following the date employee is determined to be Permanently Disabled. Notwithstanding the foregoing, if the Bank provides a disability insurance policy to Employee which provides a qualification period for Permanent Disability which is less than six (6) months, Employee shall be deemed Permanently Disabled as written approval of the date determined Boards of Directors duly taken in accordance with the policylaw and Employers' Bylaws, may, at their option, after the expiration of such period, terminate this Agreement by giving written notice to Employee, at which time all obligations and liability of Employers under this Agreement shall cease (except as to benefits then accrued). Compensation paid While Employee is disabled, Employers shall pay to Employee during any period one-hundred percent (100%) of Temporary or Permanent Disability the monthly salary installments as provided in paragraph 3, but such installments shall be reduced by workers’ compensation benefits and disability benefits received by all amounts paid to Employee pursuant to a disability policy purchased by the Bank. Base salary and other benefits due Employee during a period on account of disability shall be paid in the same manner as otherwise provided in this Agreement. The term disabilityinsurance, as used in this Paragraphworker's compensation or social security payments made to Employee arising out of his disability other than medical, shall mean that Employee is unable to perform his duties on a substantially full-time basis, as determined by the Board after taking into account such medical certifications as the Board may requirehospital or similar health insurance; provided, however, if that such payments by Employers shall cease upon the Bank has purchased earlier of (a) the expiration of the term of this Agreement, (b) the earlier termination of this Agreement pursuant to its provisions, or (c) the continuation of Employee's disability for a disability policy for Employeeperiod of one hundred eighty (180) days. For the purpose of this Agreement, the term “Disability” "disabled" shall be defined in as Employee's inability, through physical or mental illness or other cause, to perform normal and customary duties which he is required to perform under this Agreement. In determining whether Employee is disabled, Employers' Boards of Directors may rely upon the same manner as used in the policywritten statement provided by a licensed physician acceptable to Employers' Boards of Directors. Employee shall allow himself to be examined from time to time by any licensed physician selected by Employers' Boards of Directors and agreed to by Employee. All such examinations will be conducted within a reasonable time period.
Appears in 1 contract
Samples: Employment Agreement (Sc Bancorp)
Disability of Employee. If Employee is unable to perform his duties pursuant to this Agreement by reason of illness or incapacity for a period of three (3a) consecutive months (a “Temporary Disability”), and all sick days, vacation days, and other paid absences have been exhausted, Employee’s base salary will be reduced by 50% until he is able to return to full-time employment. Except for the reduction of base salary, Employee shall be entitled to receive the full benefits provided for in this Agreement during Employee’s Temporary Disability. Employee’s employment will be automatically terminated if Employee is unable to perform his duties pursuant to this Agreement by reason of illness or incapacity for a period of more than six (6) consecutive months, or for six (6) months during any 12-month period (a “Permanent Disability”). In the event of a Permanent Disabilitythat Employee becomes "mentally or physically disabled" (as hereinafter defined) during the Employment Period, Employee Employer shall receive his full base salary and benefits for an additional six (6) months following the date employee is determined continue to be Permanently Disabled. Notwithstanding the foregoing, if the Bank provides a disability insurance policy pay Employee's Base Wages to Employee for the remainder of the year after the onset of such disability, at the same monthly rate earned by Employee immediately prior to his disability. The amount of the bonus which provides a qualification period Employee is to receive under Section 2(c) hereof for Permanent Disability which is less than six (6) months, Employee the year of the onset of the disability shall be deemed Permanently Disabled determined and paid as if Employee has not been disabled. After the year of the date onset of the disability and until the end of the Employment Period (which for purposes of this sentence shall be June 30, 2007), Employer shall provide the following to Employee; disability wage continuation payments, for the remainder of Employee's life, equal to, on an annual basis, sixty percent (60%) of the average annual Employee's Base Wages (exclusive of any reduction for Defined Benefit Payments) for the previous three consecutive years of employment prior to the year of the onset of the disability with Employer, less applicable withholding taxes, payable not less frequently than semi-monthly ("Disability Wage Continuation Payments") and (ii) annual bonus payments, for the remainder of Employee's life, equal to sixty percent (60%) of Employee's average annual bonus payment for the previous three consecutive years of employment with the Employer (as such bonus is determined in accordance with Section 2(c)), less applicable withholding taxes ("Bonus Continuation Payments"); provided that the policy. Compensation paid to Employee during any period of Temporary or Permanent Disability Wage Continuation Payments and Bonus Continuation Payments shall be reduced by workers’ compensation benefits the amount of any insurance payments made to Employee or his spouse under any insurance plans provided and disability benefits received paid for by Employer or any of its subsidiaries or affiliates and any Defined Benefit Payments made to Employee pursuant or his spouse. If Employee shall die prior to a disability policy purchased by June 30, 2007, but after Employee becomes mentally or physically disabled, then the Bank. Base salary and other benefits due Employee during a period provisions of disability Section 6 hereof shall be paid in the same manner as otherwise provided in this Agreement. The term disability, as used in this Paragraph, shall mean that Employee is unable to perform his duties on a substantially full-time basis, as determined by the Board after taking into account such medical certifications as the Board may require; provided, however, if the Bank has purchased a disability policy for Employee, the term “Disability” shall be defined in the same manner as used in the policyapply.
Appears in 1 contract
Samples: Employment Agreement (Hawk Corp)
Disability of Employee. If In the event of the disability of Employee is unable (as defined herein) prior to perform his duties pursuant to this Agreement by reason the expiration of illness or incapacity for a period of three (3) consecutive months (a “Temporary Disability”), and all sick days, vacation days, and other paid absences have been exhausted, Employee’s base salary will be reduced by 50% until he is able to return to full-time employment. Except for the reduction of base salaryEmployment Period, Employee shall nevertheless continue to be entitled to receive the full compensated at his then designated annual rate and with such benefits provided for in Paragraph 3 hereof. For purposes of this Agreement during Employee’s Temporary Disability. Employee’s employment will be automatically terminated if Employee is unable to perform his duties pursuant to this Agreement by reason of illness or incapacity for a period of more than six (6) consecutive months, or for six (6) months during any 12-month period (a “Permanent Disability”). In the event of a Permanent Disability, Employee shall receive his full base salary and benefits for an additional six (6) months following the date employee is determined to be Permanently Disabled. Notwithstanding the foregoing, if the Bank provides a disability insurance policy to Employee which provides a qualification period for Permanent Disability which is less than six (6) monthsAgreement, Employee shall be deemed Permanently Disabled as to be fully disabled if, because of illness or other physical or mental condition; he is unable to fully perform all of his duties under this Agreement for two successive months. In the date determined in accordance with the policy. Compensation paid to Employee during any period of Temporary or Permanent Disability shall be reduced by workers’ compensation benefits and disability benefits received by Employee pursuant to a disability policy purchased by the Bank. Base salary and other benefits due Employee during a period of disability shall be paid in the same manner as otherwise provided in this Agreement. The term disability, as used in this Paragraph, shall mean event that Employee he is unable to perform all or a portion of the duties required under this Agreement for short periods of time aggregating over two months in any twelve successive calendar months, he shall be deemed to be partially disabled. The compensation and benefit period shall run from the time disability commenced until Employee’s condition improves sufficiently to permit him to fully perform his duties on a substantially full-time basisduties, after which date he must be available at the Company’s option. The Company may require such evidence of disability, as determined by it deems appropriate. The Employment Period shall automatically terminate upon the Board after taking into account such medical certifications as the Board may requiredeath of Employee; provided, however, if that in the Bank has purchased event of the Employee’s death, all compensation Employee is receiving under Paragraph 3 of this Agreement at the time of his death shall be paid to his legal representative for a disability policy for period of six months following the date of Employee’s death or the remainder of the Employment Period, whichever occurs first. At the discretion of the Board of Directors, the term “Disability” shall be Employment Period may terminate upon the Disability of Employee (as defined in Paragraph 5 above); provided, however, that Employee shall continue to receive compensation in accordance with the same manner provisions of this Paragraph 5 related to death as used in the policyset forth above.
Appears in 1 contract
Samples: Employment Agreement (Bion Environmental Technologies Inc)
Disability of Employee. If Upon the Disability of Employee is unable to perform his duties pursuant to this Agreement by reason of illness or incapacity for a continuous period of three 60 days, the Chief Executive Officer of Services may send written notice to Employee of Services's intention to terminate Employee's employment. In such event, the Employment Period shall end within 10 days of the receipt of such notice if Employee has not returned to work and Services shall pay Employee his Salary through the end of the month in which such termination occurs, plus credit for any vacation accrued (3on a time-apportioned basis up to the date of termination) consecutive months but not taken (a “Temporary Disability”or less if more vacation is taken than has been so accrued), together with reimbursement for expenses properly reimbursable and all sick days, vacation daysnot previously reimbursed and any payments due to Employee under Services's insurance and benefits plans plus such portion of the Bonus for the annual period in which such termination occurs which has accrued through the end of the month in which such termination occurs, and other paid absences Services shall have been exhausted, Employee’s base salary will be reduced by 50% until he is able to return to full-time employment. Except for the reduction of base salary, Employee shall be entitled to receive the full benefits provided for in this Agreement during Employee’s Temporary Disability. Employee’s employment will be automatically terminated if Employee is unable to perform his duties pursuant to this Agreement by reason of illness or incapacity for a period of more than six (6) consecutive months, or for six (6) months during any 12-month period (a “Permanent Disability”). In the event of a Permanent Disability, Employee shall receive his full base salary and benefits for an additional six (6) months following the date employee is determined to be Permanently Disabled. Notwithstanding the foregoing, if the Bank provides a disability insurance policy no further obligation to Employee which provides a qualification period for Permanent Disability which is less than six (6) months, Employee shall be deemed Permanently Disabled as of the date determined in accordance with the policy. Compensation paid to Employee during any period of Temporary or Permanent Disability shall be reduced by workers’ compensation benefits and disability benefits received by Employee pursuant to a disability policy purchased by the Bank. Base salary and other benefits due Employee during a period of disability shall be paid in the same manner as otherwise provided in under this Agreement. The term disability, "Disability," as used in this Paragraphherein, shall mean the physical or mental incapacity of Employee which prevents him from substantially performing his then applicable executive duties for Services with or without reasonable accommodation (other than accommodation which would impose undue hardship on Services) for a consecutive period of at least 60 days and that Employee incapacity is unable expected to perform his duties on a substantially full-time basis, as determined by be permanent and continuous for the Board after taking into account such medical certifications as the Board may require; provided, however, if the Bank has purchased a disability policy for remainder of Employee, the term “Disability” shall be defined in the same manner as used in the policy's life.
Appears in 1 contract
Disability of Employee. If Employee the Employee, in the reasonable opinion of the Company, is unable to perform his her duties pursuant to under this Agreement by reason of illness incapacity, either physical or incapacity mental, as determined in accordance with the MIIX Group of Companies Long Term Disability Group Benefit Plan (the "LTD Plan"), or similar plan which may be in effect from time to time, the Company shall have the right to terminate the Employee's employment upon written notice to the Employee, whereupon such termination shall be effective as of the date specified in such notice (the "Termination Date") and the Company shall have no further obligations under this Agreement, except the obligation to pay to the Employee: (1) the balance of her accrued and unpaid Base Salary, (2) unreimbursed expenses, (3) unused, accrued vacation time (up to a maximum of three weeks) through the Termination Date, (4) any other applicable severance payments provided for in Section 4 hereof, and (5) any other benefits earned by the Employee and vested (if applicable) as of the Termination Date under any employee benefit plan of the Company or its affiliates in which the Employee participates. If the Company determines not to terminate the Employee's employment in the event of a disability as allowed under this Section 3.2, the Company shall continue to pay Base Salary to the Employee for a period of three (3) consecutive months (a “Temporary Disability”), and all sick days, vacation up to ninety days, and other shall pay the difference between Base Salary and benefits paid absences have been exhaustedto the Employee under the LTD Plan for a period of up to six months thereafter, paid in accordance with the Company's normal payroll practices, while the Employee is not working. If the Employee’s base salary will be reduced by 50% until he is able to return to full-time employment. Except for , in the reduction reasonable opinion of base salarythe Company, Employee remains disabled at the end of such nine month period, her employment shall be entitled to deemed terminated and she shall receive the full benefits provided for in this Agreement during Employee’s Temporary Disability. Employee’s employment will be automatically terminated if Employee is unable to perform his duties pursuant to this Agreement by reason of illness or incapacity for a period of more than six (6) consecutive months, or for six (6) months during any 12-month period (a “Permanent Disability”). In the event of a Permanent Disability, Employee shall receive his full base salary and benefits for an additional six (6) months following the date employee is determined to be Permanently Disabled. Notwithstanding the foregoing, if the Bank provides a disability insurance policy to Employee which provides a qualification period for Permanent Disability which is less than six (6) months, Employee shall be deemed Permanently Disabled as of the date determined in accordance with the policy. Compensation paid to Employee during any period of Temporary or Permanent Disability shall be reduced by workers’ compensation benefits and disability benefits received by Employee pursuant to a disability policy purchased by the Bank. Base salary and other benefits due Employee during a period of disability shall be paid in the same manner as otherwise provided in this Agreement. The term disability, as used in this Paragraph, shall mean that Employee is unable to perform his duties on a substantially full-time basis, as determined by the Board after taking into account such medical certifications as the Board may require; provided, however, if the Bank has purchased a disability policy for Employee, the term “Disability” shall be defined in the same manner as used in the policySection 3.2.
Appears in 1 contract
Disability of Employee. If Employer has disability insurance insuring its officers, and Employee is unable to perform his duties pursuant to included under such disability insurance. In the event of the Disability (as hereinafter defined) of Employee, this Agreement by reason and the Employment Term shall terminate. Upon a termination resulting from the Disability of illness or incapacity for a period of three (3) consecutive months (a “Temporary Disability”), and all sick days, vacation days, and other paid absences have been exhausted, Employee’s base salary will be reduced by 50% until he is able to return to full-time employment. Except for the reduction of base salary, Employee shall be entitled to receive the full benefits provided for in this Agreement during Employee’s Temporary Disability. Employee’s employment will be automatically terminated if Employee is unable to perform his duties pursuant to this Agreement by reason of illness or incapacity for a period of more than six (6i) consecutive months, or for six (6) months during any 12-month period (a “Permanent Disability”). In the event of a Permanent Disability, Employee shall receive his full base salary and benefits for an additional six (6) months following Base Salary earned but not paid through the date employee is determined that Employee becomes eligible for disability payments under such disability insurance, and (ii) an amount equal to be Permanently Disabled. Notwithstanding the foregoing, if Base Salary and bonus received by Employee in the Bank provides a disability insurance policy last twelve months of Employer immediately prior to the month in which such Disability of Employee occurs which provides a qualification period for Permanent Disability which is less than six (6) months, Employee amount shall be deemed Permanently Disabled as payable, at the option of the date determined Employee, in a lump sum payment or in equal installments paid in accordance with the policy. Compensation paid to Employee during any period general payroll policies of Temporary or Permanent Disability shall be reduced by workers’ compensation benefits and disability benefits received by Employee pursuant to a disability policy purchased by the Bank. Base salary and other benefits due Employee during Employer over a period not to exceed three (3) years from the effective date of disability shall be paid in termination due to the same manner as otherwise provided in this Agreement. The term disability, as used in this Paragraph, shall mean that Employee is unable to perform his duties on a substantially full-time basis, as determined by the Board after taking into account such medical certifications as the Board may requireDisability of Employee; provided, however, that Employee shall not be entitled to any payments under this Section 6.2 in the event this Agreement is terminated pursuant to Section 4.1.2 regardless of whether the "cause" for which this Agreement is terminated pursuant to Section 4.1.2 also may constitute a Disability. For purposes of this Agreement, a "Disability" of Employee shall occur if (i) Employee suffers any mental or physical condition that materially impairs Employee's ability to perform the Bank has purchased essential functions of his duties hereunder for a disability policy for period of 180 consecutive days, and (ii) thereafter, Employee, the term “Disability” shall be defined in the same manner as used in the policywithin fifteen (15) days after Employee receives written notice from Employer requesting that Employee resume his duties hereunder, is unable or refuses to do so.
Appears in 1 contract
Samples: Employment Agreement (Shoneys Inc)