Common use of Payments for Termination Clause in Contracts

Payments for Termination. This Agreement shall terminate immediately upon (i) the Employee voluntarily terminates his employment with the Company, (ii) upon the Employee’s death, (iii) at the Company’s option, upon the occurrence of a physical or mental condition which prevents the Employee from performing the duties for which he or she is responsible for a period of six months or longer, or (iv) upon the determination by the Board of Directors that good cause exists to justify the termination of the Employee, which shall mean gross misconduct, gross negligence, commission of an illegal act, theft, dishonesty or fraud in connection with the Company or its business, improper use or disclosure of Company’s confidential information, failure or inability to perform his reasonably assigned duties after notice and a reasonable opportunity to cure such failure, such cure period shall not be less than 30 days, or conviction or plea of no contest to a crime or other conduct which interferes with his ability to perform his duties or threatens damage to the Company. All future rights to compensation under this Agreement shall cease upon the termination of this Agreement as provided above, except if the grounds for termination of this Agreement is 5a(ii) or 5a(iii) the Employee or his or her heirs shall be entitled to a payment equal to twelve months of Base Salary at the rate being paid immediately prior to termination, unless Company has provided life insurance or disability insurance which provides benefits in excess of such amount in which case no compensation other than such insurance shall be due.