Unfunded Promise Clause Samples

An Unfunded Promise clause defines a commitment made by one party to provide a benefit or payment in the future, without setting aside specific funds or assets to guarantee fulfillment of that promise. In practice, this means the obligation is backed only by the general creditworthiness of the promising party, rather than by a dedicated trust, escrow, or reserve account. This clause is commonly found in deferred compensation agreements or certain employee benefit plans. Its core function is to clarify that the recipient bears the risk of non-payment if the promising party becomes insolvent, thereby allocating financial risk and ensuring all parties understand the unsecured nature of the commitment.
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Unfunded Promise. The LTIP Award constitutes a contingent and unsecured promise of Piedmont and you have only the rights of a general unsecured creditor of Piedmont, including, but not limited to, any rights in respect of settlement of your LTIP Award. You will not be a stockholder with respect to the shares of Stock corresponding to your LTIP Award unless and until your LTIP Award is settled in shares of Stock.
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Unfunded Promise. The Employee’s right to receive payment of any amounts under this Agreement shall be an unfunded entitlement and shall be an unsecured claim against the general assets of the Company.
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Unfunded Promise. The obligation of the Company under this Agreement shall represent only its unfunded and unsecured promise to pay the benefits provided herein. While the Company reserves the right to provide for its liabilities through the purchase of one or more insurance contracts, the creation of a trust or otherwise, neither the execution of this Agreement nor the Company's action in providing for such liabilities shall give Participant any interest in any specific asset of the Company, including such insurance contracts and interest in any such trusts, and with respect to the Company's obligations under this Agreement, Participant shall have the status of a general creditor of the Company.
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Unfunded Promise. The Performance Share Award constitutes a contingent and unsecured promise of the Company and Participant has only the rights of a general unsecured creditor of the Company, including, but not limited to, any rights in respect of settlement of the Performance Share Award.
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Unfunded Promise. Grantee’s rights hereunder are an unfunded, unsecured promise of the Company to issue Shares and pay amounts under Section 3 hereof.
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Unfunded Promise 
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Related to Unfunded Promise

  • Unfunded Plan The Grantee acknowledges and agrees that any rights of the Grantee relating to the Grantee’s Restricted Stock Units and related dividend equivalents and any other related rights shall constitute bookkeeping entries on the books of the Company and shall not create in the Grantee any right to, or claim against, any specific assets of the Company or any Subsidiary, nor result in the creation of any trust or escrow account for the Grantee. With respect to the Grantee’s entitlement to any payment hereunder, the Grantee shall be a general creditor of the Company.

  • Unfunded Liabilities (i) The aggregate Unfunded Liabilities of all Plans would reasonably be expected to result in a material adverse effect on the financial condition, results of operations, business or Property of the Borrower and its Subsidiaries taken as a whole; (ii) the present value of the unfunded liabilities to provide the accrued benefits under all Foreign Pension Plans in the aggregate would reasonably be expected to result in a material adverse effect on the financial condition, results of operations, business or Property of the Borrower and its Subsidiaries taken as a whole; or (iii) any Reportable Event shall occur in connection with any Plan and such Reportable Event would reasonably be expected to result in a material adverse effect on the financial condition, results of operations, business or Property of the Borrower and its Subsidiaries taken as a whole.

  • Unfunded Obligation The obligations under this Agreement shall be unfunded. Benefits payable under this Agreement shall be paid from the general assets of the Company. The Company shall have no obligation to establish any fund or to set aside any assets to provide benefits under this Agreement.

  • Unfunded Arrangement The Executive and beneficiary are general unsecured creditors of the Company for the payment of benefits under this Agreement. The benefits represent the mere promise by the Company to pay such benefits. The rights to benefits are not subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment, or garnishment by creditors. Any insurance on the Executive's life is a general asset of the Company to which the Executive and beneficiary have no preferred or secured claim.

  • Unfunded Status The obligations of the Company hereunder shall be contractual only. The Employee shall rely solely on the unsecured promise of the Company and nothing herein shall be construed to give the Employee or any other person or persons any right, title, interest or claim in or to any specific asset, fund, reserve, account or property of any kind whatsoever owned by the Company or any Affiliate.