Substantial Compensation definition
Substantial Compensation means the sum of $300,000 (as adjusted below) or more per year received by the Employee in the form of wages, salary, cash bonus, fees for services rendered, commissions, expense allowances under a nonaccountable plan, self-employment income, cash distributions from an S corporation that employs the Employee or cash distributions from a partnership other than the Company or a limited liability company that employs the Employee or for which the Employee performs personal services on a regular basis, or any other distributions relating to the performance of personal services by the Employee, made by any entity other than the Company which employs the Employee or for or in connection with which the Employee performs personal services on a regular basis. The $300,000 figure set forth above shall be adjusted each year to reflect the increase from May 1990 to the date of computation in the Consumer Price Index, Chicago, Illinois, Urban Wage Earners, prepared by the Bureau of Labor Statistics of the U.S. Department of Labor.
Examples of Substantial Compensation in a sentence
If, in any calendar year after a Qualifying Termination of Employment, the Employee receives Substantial Compensation, then the Employee shall not be entitled to any Retirement Benefits provided under this Agreement and all of the Company's obligations hereunder shall immediately lapse and terminate.
If, in any calendar year after a Qualifying Termination of Employment, the Employee receives Substantial Compensation, then the Employee shall not be entitled to the Death Benefit provided under this Agreement and all of the Company's obligations hereunder shall immediately lapse and terminate.