Common use of Funding of Payments Clause in Contracts

Funding of Payments. In order to assure the performance of HDI or its successor of its obligations under this Agreement, HDI may, but is not required to, deposit in a so called “rabbi trust” an amount equal to the maximum payment that will be due the Executive under the terms hereof. Under a written trust instrument, the Trustee shall be instructed to pay to the Executive (or the Executive’s legal representative, as the case may be) the amount to which the Executive shall be entitled under the terms hereof, and the balance, if any, of the trust not so paid or reserved for payment shall be repaid to HDI. If HDI elects to deposit funds in such a rabbi trust, such deposit to the trust shall be made no later than the occurrence of a Change in Control. If and to the extent there are not amounts in trust sufficient to pay Executive under this Agreement, HDI shall remain liable for any and all payments due to Executive. In accordance with the terms of such trust, at all times during the term of this Agreement, Executive shall have no rights, other than as an unsecured general creditor of HDI, to any amounts held in trust and all trust assets shall be general assets of HDI and subject to the claims of creditors of HDI. Failure of HDI to establish or fully fund such trust shall not be deemed a revocation or termination of this Agreement by HDI.

Funding of Payments. In order to assure the performance of HDI or its successor of its obligations under this Agreement, HDI may, but is not required to, deposit in a so called “"rabbi trust” " an amount equal to the maximum payment that will be due the Executive under the terms hereof. Under a written trust instrument, the Trustee shall be instructed to pay to the Executive (or the Executive’s 's legal representative, as the case may be) the amount to which the Executive shall be entitled under the terms hereof, and the balance, if any, of the trust not so paid or reserved for payment shall be repaid to HDI. If HDI elects to deposit funds in such a rabbi trust, such deposit to the trust shall be made no later than the occurrence of a Change in Control. If and to the extent there are not amounts in trust sufficient to pay Executive under this Agreement, HDI shall remain liable for any and all payments due to Executive. In accordance with the terms of such trust, at all times during the term of this Agreement, Executive shall have no rights, other than as an unsecured general creditor of HDI, to any amounts held in trust and all trust assets shall be general assets of HDI and subject to the claims of creditors of HDI. Failure of HDI to establish or fully fund such trust shall not be deemed a revocation or termination of this Agreement by HDI.