Common use of Extension and Termination Clause in Contracts

Extension and Termination. The Company shall notify the Executive of the Company’s intention to extend or not to extend the Term of this Agreement prior to the expiration of the Term. In the event the Company notifies the Executive of its intention not to extend the Term of this Agreement, the Company shall continue to pay the Executive’s Base Salary and Bonus at the then current rate for a minimum of six (6) months from the date such notice is sent to Executive, even if such payments extend beyond the expiration of the Term; it being expressly understood and agreed that if the Company notifies the Executive of its intention to extend the Term of the Agreement on terms substantially the same as those then in effect and the Company and the Executive are unable to agree in good faith on the terms of any such extension, the Company shall not be obligated to pay the Executive’s Base Salary and Incentive Bonus beyond the expiration of the Term.