This excerpt taken from the IACI 10-K filed Mar 13, 2006.
1. TERMINATION OF EMPLOYEES EMPLOYMENT.
(a) DEATH. Upon termination of Employees employment prior to the expiration of the Term by reason of Employees death, the Company shall pay Employees designated beneficiary or beneficiaries, within 30 days of Employees death in a lump sum in cash, (i) Employees Base Salary from the date of Employees death through the end of the month in which Employees death occurs and (ii) any Accrued Obligations (as defined in paragraph 1(f) below).
(b) DISABILITY. Upon termination of Employees employment prior to expiration of the Term by reason of Employees Disability, the Company shall pay Employee, within 30 days of such termination in a lump sum in cash, (i) Employees Base Salary from the date of Employees termination of employment due to Disability through the end of the month in which such termination occurs, offset by any amounts payable to Employee under any disability insurance plan or policy provided by the Company and (ii) any Accrued Obligations (as defined in paragraph 1(f) below). Disability shall mean a condition, resulting from bodily injury or disease, that renders, and for a six consecutive month period has rendered, Employee unable to perform substantially the duties pertaining to his employment with the Company. A return to work of less than 14 consecutive days will not be considered an interruption in Employees six consecutive months of disability. Disability will be determined by the Company on the basis of medical evidence satisfactory to the Company.
(c) TERMINATION FOR CAUSE; RESIGNATION BY EMPLOYEE WITHOUT GOOD REASON. The Company may terminate Employees employment under this Agreement with or without Cause at any time. Upon termination of Employees employment prior to expiration of the Term by the Company for Cause or upon Employees resignation without Good Reason, this Agreement shall terminate without further obligation by the Company, except for the payment of any Accrued Obligations (as defined in paragraph 1(f) below). As used herein, Cause shall mean: (i) the plea of guilty or nolo contendere to, or conviction for, a felony offense or other crime involving moral turpitude by Employee; provided, however, that after indictment, the Company may suspend Employee from the rendition of services, but without limiting or modifying in any other way the Companys obligations to Employee under this Agreement; provided, further, that Employees employment shall be immediately reinstated if the indictment is dismissed or otherwise dropped and there is not otherwise grounds to terminate Employees employment for Cause; (ii) a material breach by Employee of a fiduciary duty owed to the Company; (iii) a material breach by Employee of any of the covenants made by Employee in Section 2 hereof; or (iv) the willful or gross neglect by Employee of the material duties required by this Agreement. Before a cessation of Employees employment shall be deemed to be a termination of Employees employment for Cause, (A) the Company shall provide written notice to Employee that identifies the conduct described in clauses (ii), (iii) or (iv) above, as applicable, and (B) in the event that the event or condition is curable, Employee shall have failed to remedy such event or condition within 30 days after Employee shall have received the written notice from the Company described above. As used herein, Good Reason shall mean the occurrence of any of the following without Employees written consent, (i) a material adverse change in
Employees title, duties, operational authorities or reporting responsibilities from those in effect immediately following the Effective Date, excluding for this purpose any such change that is an isolated and inadvertent action not taken in bad faith and that is remedied by the Company promptly after receipt of notice thereof given by the Employee or that is authorized pursuant to this Agreement or that relate to new businesses not operated by the Company as of the date of this Agreement, (ii) a material reduction in Employees annual base salary, or (iii) a relocation of Employees principal place of business more than 25 miles from the New York, New York metropolitan area.
(d) TERMINATION BY THE COMPANY OTHER THAN FOR DEATH, DISABILITY OR CAUSE; RESIGNATION BY EMPLOYEE FOR GOOD REASON. Upon termination of Employees employment prior to expiration of the Term (i) by the Company without Cause (other than for death or Disability) or (ii) upon Employees resignation for Good Reason, subject to Employees execution and non-revocation of a general release of the Company and its affiliates substantially in the form attached hereto as Exhibit B and Employees compliance with Sections 2(a) through 2(e), (A) the Company shall pay Employee the Base Salary through the remainder of the Term; and (B) the Company shall pay Employee within 30 days of the date of such termination in a lump sum in cash any Accrued Obligations (as defined in paragraph 1(f) below).
(e) MITIGATION; OFFSET. In the event of termination of Employees employment prior to the end of the Term, in no event shall Employee be obligated to seek other employment or take any other action by way of mitigation of severance benefits or other compensation or benefits. If Employee obtains other employment during the Term, the amount of any severance payments to be made to Employee under Section 1(d) hereof after the date such employment is secured shall be offset by the amount of compensation earned by Executive from such employment through the end of the Term. For purposes of this Section 1(e), Employee shall have an obligation to inform the Company promptly regarding Employees employment status following termination and during the period encompassing the Term.
(f) ACCRUED OBLIGATIONS. As used in this Agreement, Accrued Obligations shall mean the sum of (i) any portion of Employees accrued but unpaid Base Salary through the date of death or termination of employment for any reason, as the case may be; and (ii) any compensation previously earned but deferred by Employee (together with any interest or earnings thereon) that has not yet been paid.