Common use of Suspension of Agreement Clause in Contracts

Suspension of Agreement. If, during the period of this Agreement, Employee becomes disabled in accordance with the definition of being disabled as set forth in Section 409A(a)(2)(C) of the Internal Revenue Code of 1986, as amended (the “Code”), Company may suspend this Agreement during the period of such disability by giving notice to Employee of its intention to suspend due to disability, subject to the following: (a) This Agreement shall thereupon be suspended as of the end of the month in which such notice was given and shall continue to be suspended until Employee is no longer suffering such disability. The determination of Employee’s disability, and recovery therefrom, will be made by a physician mutually acceptable to Company and Employee. The opinion of such physician shall be in writing and shall be given to Company and Employee. (b) If during any time of Employee’s disability that he is eligible for and is receiving disability income payments from Company’s disability income insurance carrier, such payments are less than sixty percent (60%) of the sum of the annual base salary he was receiving from Company immediately prior to his disability and the amount of any incentive bonus pursuant to Section 3.2 Employee received within the last twelve (12) months prior to his disability, Company shall pay Employee an amount which, when added to the gross payments (before any deductions) received by Employee from Company’s disability insurance carrier, will result in the Employee receiving from Company and Company’s disability insurance carrier an annual sum equal to sixty percent (60%) of the sum of his annual base salary immediately prior to his disability and the amount of any incentive bonus pursuant to Section 3.2 Employee received within the last twelve (12) months prior to his disability. Such payment from Company shall be due Employee for as long as Employee is eligible to receive disability income payments from Company’s disability insurance carrier. When Employee is no longer eligible to receive such disability income payments from the insurance carrier, any obligation for an additional payment from Company shall terminate.