Loan Covenants/Contract Terms Clause Samples
Loan Covenants/Contract Terms. The Company may delay payment to a Participant or his Beneficiary if the Company reasonably anticipates that the payment will cause the Company to violate the terms of a loan agreement, loan covenant or other similar contract to which the Company is a party, provided the Company entered into the agreement or contract for legitimate business reasons and such violation will cause material harm to the Company. However, the Company will make such Accrued Benefit payment as of the date at which the Company reasonably anticipates that the payment will not cause a violation of the agreement or contract, or that such violation will not cause any material harm to the Company.
Loan Covenants/Contract Terms. The Plan may delay payment to a Participant if the Employer reasonably anticipates that the payment will violate the terms of a loan agreement or other similar contract to which the Employer is a party, provided that the Employer entered into the agreement or contract for legitimate business reasons and that such violation will cause material harm to the Employer. The Plan will pay such Deferred Compensation at the earliest date at which the Employer reasonably anticipates that the payment will not cause a violation of the agreement or contract or that such a violation will not result in material harm to the Employer.