Common use of Payment in the Event of Death or Permanent Disability Clause in Contracts

Payment in the Event of Death or Permanent Disability. (a) In the event of the Executive’s death or “disability” (as defined in the Employment Agreement) during the term of the Employment Agreement, the Company shall pay to the Executive (or his successors and assigns in the event of his death) an amount equal to two (2) times the Executive’s then effective per annum rate of salary, as determined under Section 1(a) of this Exhibit A, plus a pro rata portion of the incentive compensation for the calendar year in which such death or permanent disability occurs, less, in the case of permanent disability, any amounts paid by the Company or under the Company’s disability insurance contracts. (b) The pro rata portion of the incentive compensation described in Section 2(a) shall be paid when and as provided in Section 1(b). The remainder of the benefit to be paid pursuant to Section 2(a) shall be paid as follows: (i) In the event of the Executive’s death, the remainder of the benefit shall be paid in eight (8) quarterly installments. The first installment shall be paid on the first day of the calendar quarter beginning after the Executive’s death and the remaining seven installments shall be paid on the first day of the next seven calendar quarters. The eight (8) equal quarterly installments shall be deemed a series of separate payments within the meaning of Treas. Reg. §1.409A-2(b)(2)(iii). (ii) In the event of the Executive’s disability, the remainder of the benefit shall be paid in twenty-four (24) monthly installments. The 24 monthly payments described in the preceding sentence shall be deemed a series of separate payments within the meaning of Treas. Reg. §1.409A-2(b)(2)(iii). The first six monthly payments shall be paid to the Executive in a lump sum within 30 days following his Separation from Service. The remaining eighteen monthly payments shall be paid to the Executive in 18 separate payments on the first day of 18 successive calendar months with the first payment occurring on the first day of the seventh calendar month beginning after the date of the Executive’s Separation from Service. The parties affirm that it is their intent that the first six monthly payments be excluded from the application of Code Section 409A by reason of the “short-term deferral” rule set forth at Regulation §1.409A-1(b)(4). (c) Except as otherwise provided in Paragraphs 1(d) and 2(a), in the event of the Executive’s death or disability the Executive’s employment hereunder shall terminate and the Executive shall be entitled to no further compensation or other benefits under the Employment Agreement, except as to that portion of any unpaid salary and other benefits accrued and earned by him hereunder up to and including the date of such death or permanent disability, as the case may be.

Payment in the Event of Death or Permanent Disability. (a) In the event of the Executive’s death or “disability” (as defined in the Employment Agreement) during the term of the Employment Agreement, the Company shall pay to the Executive (or his successors and assigns in the event of his death) an amount equal to two (2) times the Executive’s then effective per annum rate of salary, as determined under Section 1(a) of this Exhibit A, plus a pro rata portion of the incentive compensation for the calendar year in which such death or permanent disability occurs, less, in the case of permanent disability, any amounts paid by the Company or under the Company’s disability insurance contracts. (b) The pro rata portion of the incentive compensation described in Section 2(a) shall be paid when and as provided in Section 1(b). The remainder of the benefit to be paid pursuant to Section 2(a) shall be paid as follows: (i) In the event of the Executive’s death, the remainder of the benefit shall be paid in eight (8) quarterly installments. The first installment shall be paid on the first day of the calendar quarter beginning after the Executive’s death and the remaining seven installments shall be paid on the first day of the next seven calendar quarters. The eight (8) equal quarterly installments shall be deemed a series of separate payments within the meaning of Treas. Reg. §1.409A-2(b)(2)(iii). (ii) In the event of the Executive’s disability, the remainder of the benefit shall be paid in twenty-four (24) monthly installments. The 24 monthly payments described in the preceding sentence shall be deemed a series of separate payments within the meaning of Treas. Reg. §1.409A-2(b)(2)(iii). The first six monthly payments shall be paid to the Executive in a lump sum within 30 days following his Separation from Service. The remaining eighteen monthly payments shall be paid to the Executive in 18 separate payments on the first day of 18 successive calendar months with the first payment occurring on the first day of the seventh calendar month beginning after the date of the Executive’s Separation from Service. The parties affirm that it is their intent that the first six monthly payments be excluded from the application of Code Section 409A by reason of the “short-term deferral” rule set forth at Regulation §1.409A-1(b)(4). (c) Except as otherwise provided in Paragraphs 1(d) and 2(a), in the event of the Executive’s death or disability the Executive’s employment hereunder shall terminate and the Executive shall be entitled to no further compensation or other benefits under the Employment Agreement, except as to that portion of any unpaid salary and other benefits accrued and earned by him hereunder up to and including the date of such death or permanent disability, as the case may be.