Alternative Form of Payment Clause Samples
The Alternative Form of Payment clause defines the conditions under which a party may fulfill its payment obligations using a method different from the standard or originally agreed-upon form. For example, instead of paying in cash, a party might be permitted to pay with shares, promissory notes, or other assets, subject to the agreement of both parties or specific triggers outlined in the contract. This clause provides flexibility in transactions, ensuring that payment can still be made even if the standard method becomes impractical or undesirable, thereby reducing the risk of default and facilitating the completion of contractual obligations.
Alternative Form of Payment. Notwithstanding anything else contained in this Section 5 to the contrary, the Committee may elect, at its sole discretion by resolution adopted prior to the Change of Control Date, to have the Company satisfy your rights in respect of the Performance Units (as determined pursuant to the foregoing provisions of this Section 5), in whole or in part, by having the Company make a cash payment to you within five business days of the Change of Control Date in respect of all such Performance Units or such portion of such Performance Units as the Committee shall determine. Any cash payment for any Performance Unit shall be equal to the Fair Market Value of the number of shares of Common Stock into which it would convert, determined on the Change of Control Date.
Alternative Form of Payment. Notwithstanding anything else contained in this Section 5 to the contrary, the Committee may elect, at its sole discretion by resolution adopted prior to the Change of Control Date, to have the Company satisfy your rights in respect of the Performance Units (as determined pursuant to the foregoing provisions of this Section 5), in whole or in part, by having the Company make a cash payment to you in respect of all such Performance Units or such portion of such Performance Units as the Committee shall determine. Any cash payment for any Performance Unit shall be made at the same time any issuance of shares of Common Stock would otherwise have occurred in accordance with this Section 5 and the amount of any such cash payment shall be equal to the Fair Market Value of the number of shares of Common Stock into which it would convert, determined as of the payment date.
Alternative Form of Payment. If the severance otherwise payable to Employee is reduced to zero (0) by application of the maximum limitation under paragraph 11(b)(i)(y), then Employer shall in the alternative pay Employee severance equal to twelve months of Employee’s then-current base salary commencing from and after the Termination Date, in accordance with the normal payroll schedule of Employer, except that any amounts that remain payable as of the Short-Term Deferral Deadline shall be paid in a lump sum no later than the Short-Term Deferral Deadline. Employer and Employee intend the severance payments under this paragraph 11(b)(ii) to constitute a short-term deferral under Treas. Reg. § 1.409A-1(b)(4).
Alternative Form of Payment. (i) A married Participant or Former Participant who is entitled to a distribution from the Plan and properly waives the Joint and Survivor Annuity and obtains the appropriate spousal consent as described in Section 5.8 (d) may elect (1) to have a single premium annuity contract with 36 monthly payments guaranteed; as described in Section 5.8 (a) purchased in his behalf, (2) to have a Qualified Optional Survivor Annuity as described in Section 2.21 purchased in his behalf, (3) to receive a distribution of his Individual Participant Account in a lump sum, or (4) to receive quarterly, semi-annual or annual payments over a period certain not to exceed five years.
(ii) An unmarried Participant or Former Participant who is entitled to a distribution from the Plan may elect to receive a distribution of his Individual Participant Account in a lump sum.
(iii) A surviving spouse of a deceased Participant or Former Participant may elect to receive a distribution of the deceased Participant's or Former Participant's Individual Participant Account in a lump sum.