Other Plan Terminations Clause Samples
The "Other Plan Terminations" clause defines the rights and procedures applicable when a party terminates a plan or agreement other than the main contract. Typically, this clause outlines the conditions under which such terminations are permitted, the required notice periods, and any resulting obligations or consequences for the parties involved. For example, it may address what happens if a subsidiary agreement or a related service plan is ended before its scheduled completion. The core function of this clause is to provide clarity and structure around the termination of ancillary or related plans, thereby reducing uncertainty and potential disputes between the parties.
Other Plan Terminations. The Plan Sponsor retains the discretion to terminate the Plan if (a) all arrangements sponsored by the Plan Sponsor that would be aggregated with any terminated arrangement under Code Section 409A and Reg. Sec. 1.409A-1(c)(2) are terminated, (b) no payments other than payments that would be payable under the terms of the arrangements if the termination had not occurred are made within twelve months of the termination of the arrangements, (c) all payments are made within twenty-four months of the termination of the arrangements, (d) the Plan Sponsor does not adopt a new arrangement that would be aggregated with any terminated arrangement under Code Section 409A and the regulations thereunder at any time within the three year period following the date of termination of the arrangement, and (e) the termination does not occur proximate to a downturn in the financial health of the Plan sponsor. The Plan Sponsor also reserves the right to amend the Plan to provide that termination of the Plan will occur under such conditions and events as may be prescribed by the Secretary of the Treasury in generally applicable guidance published in the Internal Revenue Bulletin.
Other Plan Terminations. The Related Employer retains the discretion to terminate the Plan, in accordance with Reg. Sec. 1.409A-3(j)(4)(ix)(C), pursuant to the Related Employer’s termination and liquidation of the Plan if (a) the Related Employer terminates and liquidates all agreements, methods, programs, and other arrangements sponsored by the Related Employer that would be aggregated with any terminated and liquidated agreements, methods, programs, and other arrangements under Reg. Sec. 1.409A-1(c) if the same Related Employer had deferrals of compensation under all of the agreements, methods, programs, and other arrangements that are terminated and liquidated, (b) no payments in liquidation of the Plan are made within 12 months of the date the Related Employer takes all necessary action to irrevocably terminate and liquidate the Plan other than payments that would be payable under the terms of the Plan if the action to terminate and liquidate the Plan had not occurred, (c) all payments are made within 24 months of the date the Related Employer takes all necessary action to irrevocably terminate and liquidate the Plan, (d) the Related Employer does not adopt a new plan that would be aggregated with any terminated and liquidated plan under Reg. Sec. 1.409A-1(c) if the same participant participated in both plans, at any time within the 3-year period following the date the Related Employer takes all necessary action to irrevocably terminate and liquidated the Plan, and (e) the termination and liquidation does not occur proximate to a downturn in the financial health of the Related Employer. The Plan Sponsor also reserves the right to amend the Plan to provide that termination of the Plan will occur under such conditions and events as may be prescribed by the Secretary of the Treasury in generally applicable guidance published in the Internal Revenue Bulletin.
Other Plan Terminations. The Plan Sponsor retains the discretion to terminate the Plan if (a) all arrangements sponsored by the Plan Sponsor that would be aggregated with any terminated arrangement under Prop. Reg. Section 1.409A-1(c) are terminated, (b) no payments other than payments that would be payable under the terms of the arrangements if the termination had not occurred are made within twelve months of the termination of the arrangements, (c) all payments are made within twenty-four months of the termination of the arrangements, (d) the Plan Sponsor does not adopt a new arrangement that would be aggregated with any terminated arrangement under Prop. Reg. Section 1.409A-1(c) at any time within the five year period following the date of termination of the arrangement. The Plan Sponsor also reserves the right to amend the Plan to provide that termination of the Plan will occur under such conditions and events as may be prescribed by the Secretary of the Treasury in generally applicable guidance published in the Internal Revenue Bulletin.
Other Plan Terminations. The Plan Sponsor retains the discretion to terminate the Plan if (a) all arrangements sponsored by the Plan Sponsor that would be aggregated with any terminated arrangement under Code Section 409A and Treas. Reg. § 1.409A-1(c)(2) are terminated, (b) no payments other than payments that would be payable under the terms of the arrangements if the termination had not occurred are made within twelve months of the termination of the arrangements, (c) all payments are made within twenty-four months of the date the Plan Sponsor takes all necessary action to irrevocably terminate and liquidate the arrangements, (d) the Plan Sponsor does not adopt a new arrangement that would be aggregated with any terminated arrangement under Code Section 409A and the regulations thereunder at any time within the three-year period following the date of termination of the arrangement, and (e) the termination does not occur proximate to a downturn in the financial health of the Plan Sponsor. The Plan Sponsor also reserves the right to amend the Plan to provide that termination of the Plan will occur under such conditions and events as may be prescribed by the Secretary of the Treasury in generally applicable guidance published in the Internal Revenue Bulletin.