Common use of Disability Prior to Retirement Clause in Contracts

Disability Prior to Retirement. Permanent Disability" for purposes of this Agreement means the Executive's inability, by reason of any physical or mental impairment, to substantially perform the significant aspects of his regular duties which inability is reasonably contemplated to continue for at least one (1) year from its inception, as determined by the Board of Directors of Elco Industries, Inc. In the event that during the period of active daily employment prior to termination of his employment with the Corporation the Executive shall incur a Permanent Disability, the Corporation shall pay the Supplemental Benefit described in this Article 3 to the Executive or his legal representative. In the event that the Executive incurs a Permanent Disability, but dies before receiving the entire Supplemental Benefit described in this Article 3, then the remaining payments shall be made in accordance with the schedule described in this Article 3 to such individual or individuals as the Executive has designated in writing, filed with and been approved by the Corporation. In the absence of any effective designation of a beneficiary, any amounts payable under this Article 3 shall be payable to the Executive's duly qualified executor or administrator.