Common use of PAYMENT UPON AUTOMATIC TERMINATION Clause in Contracts

PAYMENT UPON AUTOMATIC TERMINATION. If the Company terminates this Agreement upon the Executive's death or disability pursuant to Section 9(a), the Company shall pay to the Executive (or if the Executive is deceased or disabled to the Executive's estate or personal representative), a monthly sum equal to the highest monthly rate of base salary paid to the Executive during the last full prior calendar year pursuant to Section 4 above, less any disability payments from insurance for which the Company has paid the premiums. If this termination occurs prior to the last day of the Contract Term, these payments shall continue until the last day of the last full calendar month of the full Contract Term, or until Executive reaches 70 years of age, whichever occurs first. In addition, Executive shall also be entitled to payment in an amount equal to 3 times his cash bonus(es) for the last previous full calendar year. Notwithstanding the foregoing, if the Executive is a "specified employee" within the meaning of Internal Revenue Code Section 409A, then to the extent payments described in this Section 10(b) are not considered payments made under a bona fide disability or death benefit plan within the meaning of Code Section 409A, such payments shall be delayed for six (6) months from the date of termination of this Agreement. In such event, all past due payments shall be paid in a lump sum (without interest thereon) as soon as practicable after the six (6)-month waiting period has expired.