Certain Forfeitable Rights Sample Clauses
The 'Certain Forfeitable Rights' clause defines specific rights or benefits granted under an agreement that may be lost or revoked if certain conditions are not met. Typically, this clause outlines scenarios such as breach of contract, failure to perform obligations, or violation of terms, under which a party may forfeit entitlements like bonuses, stock options, or other contractual benefits. Its core practical function is to incentivize compliance and performance by making certain rights conditional, thereby protecting the interests of the party granting those rights and ensuring accountability.
Certain Forfeitable Rights. If payment of Deferred Compensation is subject to a forfeiture condition requiring the Participant to perform services for the Employer for at least 12 months after the Participant obtains the Legally Binding Right to the Compensation, the Participant may make an Elective Deferral election no later than 30 days after the Participant obtains the Legally Binding Right to the Compensation, provided the Participant makes the election at least 12 months prior to the earliest date on which the service forfeiture condition could lapse.
Certain Forfeitable Rights. If payment of Deferred Compensation is subject to a condition requiring the Participant to perform services for the Employer for at least 12 months after the Participant obtains the Legally Binding Right to the Compensation to avoid forfeiture of the payment, the Participant may make an Elective Deferral election no later than 30 days after the Participant obtains the Legally Binding Right to the Compensation, provided the Participant makes the election at least 12 months prior to the earliest date on which the service forfeiture condition could lapse. If the Plan provides for a waiver of the service condition upon the Participant’s death, Disability or upon a Change in Control, and such event occurs before the end of the 12 month minimum service period, the Participant’s elective Deferral election is valid only if the election is timely under the Plan without regard to this Section 2.02(B)(3).