Common use of Effect of Disability Clause in Contracts

Effect of Disability. In the event Executive’s employment is terminated on account of Disability (as defined in Section 9.7), Executive shall be entitled to payment of the difference between (a) any monthly disability payments provided through insurance plans offered by the Company, if any, provided Executive has enrolled in such plans, has paid the costs thereof and is otherwise eligible, and (b) the monthly Base Salary effective immediately prior to the date of termination, for a period of six (6) months following the date of termination, plus a prorated Target Bonus for such year through the date of termination, calculated on the basis of 100% achievement of target. Both (a) and (b) in the preceding sentence shall be paid in equal monthly installments during the six month period following the date of termination. All legally required and authorized deductions and tax withholdings shall be made from the payments described in the previous sentence, including for wage garnishments, if applicable, to the extent required or permitted by law.