Restriction on Commencement of Distributions Clause Samples
The 'Restriction on Commencement of Distributions' clause sets conditions or limitations on when distributions, such as profits or assets, can begin to be paid out to stakeholders. Typically, this clause may require that certain financial thresholds are met, regulatory approvals are obtained, or specific time periods have elapsed before any distributions are made. By establishing clear prerequisites for distributions, the clause helps ensure that the entity remains compliant with legal or financial obligations and protects its financial stability before funds are disbursed.
Restriction on Commencement of Distributions. Notwithstanding any provision of this Agreement to the contrary, if the Executive is considered a Specified Employee at the time of Separation from Service, the provisions of this Section shall govern all distributions hereunder. Distributions which would otherwise be made to the Executive due to Separation from Service shall not be made during the first six (6) months following Separation from Service. Rather, any distribution which would otherwise be paid to the Executive during such period shall be accumulated and paid to the Executive in a lump sum on the first day of the seventh month following Separation from Service, or if earlier, upon the Executive’s death. All subsequent distributions shall be paid as they would have had this Section not applied.
Restriction on Commencement of Distributions. Notwithstanding any provision of this Agreement to the contrary, if the Executive is considered a Specified Employee, the provisions of this Section 2.5 shall govern all distributions hereunder. If benefit distributions which would otherwise be made to the Executive due to Separation from Service are limited because the Executive is a Specified Employee, then such distributions shall not be made during the first six (6) months following Separation from Service. Rather, any distribution which would otherwise be paid to the Executive during such period shall be accumulated and paid to the Executive in a lump sum on the first day of the seventh month following Separation from Service. All subsequent distributions shall be paid in the manner specified.
Restriction on Commencement of Distributions. Notwithstanding any provision of this Agreement to the contrary, if the Director is considered a Specified Employee, the provisions of this Section 2.3 shall govern all distributions hereunder. If benefit distributions which would otherwise be made to the Director due to Termination of Service are limited because the Director is a Specified Employee, then such distributions shall not be made during the first six (6) months following Termination of Service. Rather, any distribution which would otherwise be paid to the Director during such period shall be accumulated and paid to the Director in a lump sum on the first day of the seventh month following Termination of Service. All subsequent distributions shall be paid in the manner specified.
Restriction on Commencement of Distributions. Notwithstanding any provision of this Agreement to the contrary, if the Executive is considered a Specified Employee, the provisions of this Section 2.5 shall govern all distributions hereunder. If benefit distributions which would otherwise be made to the Executive due to Termination of Employment are limited because the Executive is a Specified Employee, then such distributions shall not be made during the first six (6) months following Termination of Employment. Rather, any distribution which would otherwise be paid to the Executive during such period shall be accumulated and paid to the Executive in a lump sum on or around the fifteenth day of the seventh month following Termination of Employment. All subsequent distributions shall be paid in the manner specified.
Restriction on Commencement of Distributions. Notwithstanding any provision of this Agreement to the contrary, if the Participant is a Specified Employee, the provisions of this Section 3.5 shall govern all distributions hereunder. If benefit distributions which would otherwise be made to the Participant due to Separation from Service are limited because the Participant is a Specified Employee, then such distributions shall not be United Labor Bank, F.S.B. Performance Driven Plan made during the first six (6) months following Separation from Service. Rather, any distribution which would otherwise be paid to the Participant during such period shall be accumulated and paid to the Participant in a lump sum on the first day of the seventh month following Separation from Service. All subsequent distributions shall be paid in the manner specified.
Restriction on Commencement of Distributions. Notwithstanding any provision of this Agreement to the contrary, if the Participant is a Specified Employee, the provisions of this Section 3.5 shall govern all distributions hereunder. If benefit distributions which would otherwise be made to the Participant due to Separation from Service are limited because the Participant is a Specified Employee, then such distributions shall not be made during the first six (6) months following Separation from Service. Rather, any distribution which would otherwise be paid to the Participant during such period shall be accumulated and paid to the Participant in a lump sum on the first day of the seventh month following Separation from Service. All subsequent distributions shall be paid in the manner specified.
Restriction on Commencement of Distributions. Notwithstanding any provision of this Plan to the contrary, if the Executive is considered a Specified Employee (within the meaning of Treasury Regulation 1.409A-1(i)), the provisions of this Section 6.3 shall govern the timing of all distributions under this Plan. In the event the Executive is a Specified Employee, and to the extent necessary to avoid penalties under Section 409A of the Code, payments to the Executive shall not commerce until the lapse of six months after the date of the Termination of Employment. Any distribution which would otherwise be paid to the Executive during such period shall be accumulated and paid to the Executive in a lump sum on the first day of the month following the lapse of six months after the date of the Termination of Employment. All subsequent distributions shall be paid in the manner specified.
Restriction on Commencement of Distributions. Notwithstanding any provision of this Agreement to the contrary, if the Director is considered a Specified Employee at Separation from Service or at any time during the 12-month period ending on a Separation from Service, the provisions of this Section 2.5 shall govern all distributions hereunder. If benefit distributions which would otherwise be made to the Director due to Separation from Service are limited because the Director is a Specified Employee, then such distributions shall not be made during the first six (6) months following Separation from Service. Rather, any distribution which would otherwise be paid to the Director during such period shall be accumulated and paid to the Director in a lump sum on the first day of the seventh month following Separation from Service. All subsequent distributions shall be paid in the manner specified.
Restriction on Commencement of Distributions. Notwithstanding any provision of this Agreement to the contrary, if the Executive is considered a Specified Employee, the provisions of this Section 4.3 shall govern all distributions hereunder, including any under Article 5. If a benefit distribution which would otherwise be made to due to Separation from Service is limited because the Executive is a Specified Employee, then such distribution shall not be made during the first six (6) months following Separation from Service. Rather, the distribution shall be paid to the Executive during the first fifteen (15) days of the seventh month following Separation from Service. If the Executive dies during the postponement period prior to the payment of benefits, the amounts withheld pursuant to this Section shall be paid to the Executive’s Beneficiary 60 days after the Executive’s death.
Restriction on Commencement of Distributions. Notwithstanding any provision of this Agreement to the contrary, if the Executive is considered a Specified Employee (within the meaning of Treasury Regulation 1.409A-1(i)), the provisions of this Section 2.8 shall govern the timing of all distributions under Sections 2.1, 2.2, 2.3 and 2.4 of this Agreement. In the event the Executive is a Specified Employee, and to the extent necessary to avoid penalties under Section 409A of the Code, payments to the Executive shall not commerce until the later of (i) the first day of the month following the lapse of six months after the date of the Termination of Employment, or (ii) the first day of the month following the Executive's attainment of Normal Retirement Age. Any distribution which would otherwise be paid to the Executive during such period shall be accumulated and paid to the Executive in a lump sum on the first day of the month following the lapse of six months after the date of the Termination of Employment. All subsequent distributions shall be paid in the manner specified."
Section 7. Amendment to Section 7.1