Common use of Incapacity for work Clause in Contracts

Incapacity for work. The present Company policy for executives of your level with regard to incapacity for work or sickness is that for a maximum period of three years from the start of disablement, but at the very latest up to the end of the Contract, the balance between the Annual Base Compensation at the start of the total disability and the aggregate amount of any statutory allowance distributed to the Director on account of the total disablement together with possible allowances distributed for the same reason by the Philips Pension Fund will - subject to the Director's compliance with the Company’s directives - be paid by the Company. The Company shall not be bound by the above obligation if the Director has a claim against third parties in respect of his disablement. Upon surrender to the Company of such claim - in so far as it relates to loss of Annual Base Compensation - an amount equal to the above balance shall - but for no longer than the period stated in the foregoing paragraph - be paid by the Company in advance. This policy is subject to change at the discretion of the Company. No compensation will be paid in case the new policy is less favorable than the present policy.

Incapacity for work. The present Company policy for executives of your level with regard to incapacity for work or sickness is that for a maximum period of three years from the start of disablement, but at the very latest up to the end of the Contract, the balance between the Annual Base Compensation Salary at the start of the total disability and the aggregate amount of any statutory allowance distributed to the Director on account of the total disablement together with possible allowances distributed for the same reason by the Philips Pension Fund will - subject to the Director's compliance with the Company’s directives - be paid by the Company. The Company shall not be bound by the above obligation if the Director has a claim against third parties in respect of his disablement. Upon surrender to the Company of such claim - in so far as it relates to loss of Annual Base Compensation Salary - an amount equal to the above balance shall - but for no longer than the period stated in the foregoing paragraph - be paid by the Company in advance. This policy is subject to change at the discretion of the Company. No compensation will be paid in case the new policy is less favorable than the present policy.

Incapacity for work. The present Company policy for executives of your level with regard to incapacity for work or sickness is that for a maximum period of three years from the start of disablement, but at the very latest up to the end of the Contract, the balance between the Annual Base Compensation at the start of the total disability and the aggregate amount of any statutory allowance distributed to the Director on account of the total disablement together with possible allowances distributed for the same reason by the Philips Pension Fund will - subject to the Director's compliance with the Company’s directives - be paid by the Company. The Company shall not be bound by the above obligation if the Director has a claim against third parties in respect of his disablement. Upon surrender to the Company of such claim - in so far as it relates to loss of Annual Base Compensation - an amount equal to the above balance shall - but for no longer than the period stated in the foregoing paragraph - be paid by the Company in advance. This policy is subject to change at the discretion of the Company. No compensation will be paid in case the new policy is less favorable than the present policy.