Common use of TERM AND APPLICATION Clause in Contracts

TERM AND APPLICATION. The Term of this Agreement shall commence on the Effective Date and shall terminate, except to the extent that any obligation under this Agreement remains unpaid as of such time, on the second anniversary from the Effective Date (subject to earlier termination by reason of termination of employment with the Company); provided, however, that on and after the Extension Date the Term of this Agreement shall be the Extended Employment Period. Thereafter, the Term of this Agreement shall automatically extend for 12-month periods, unless not later than three months before the last day of the Term of this Agreement, the Company or the Executive shall have given written notice to the other of its intention not to extend this Agreement and the Employment Agreement, or unless this Agreement is earlier terminated in accordance with its terms. The Company may not provide a notice of non-renewal of this Agreement without simultaneously providing a notice of non-renewal of the Employment Agreement. Receipt by the Executive of a notice of non-renewal of this Agreement and the Employment Agreement, pursuant to this Section 2, shall constitute "Good Reason" for purposes of this Agreement and the Employment Agreement.