Payment after Earning Clause Samples
The 'Payment after Earning' clause establishes that payments will only be made once the relevant earnings or revenues have been received or realized. In practice, this means that a party is not obligated to pay another party until they themselves have actually earned the funds, such as a distributor paying a supplier only after collecting payment from end customers. This clause helps manage cash flow and reduces financial risk by ensuring that payments are only required when the payer has the necessary resources, thereby protecting parties from having to advance funds before they are available.
Payment after Earning. Any Performance Shares that are earned or are deemed earned in accordance with Section 2 will be paid to Participant (or in the event of Participant’s death, to his or her estate) in whole Shares, subject to Participant satisfying any applicable tax withholding obligations as set forth in Section 7. Notwithstanding the foregoing sentence, to the extent necessary to avoid the imposition of any additional tax or income recognition under Section 409A of the Code prior to or upon the actual payment of Shares pursuant to this Award of Performance Shares that are earned in accordance with Section 2 will be paid to Participant (or in the event of Participant’s death, to his or her estate) no earlier than six (6) months and one (1) day following the date of Participant’s termination of employment with the Company (or any Affiliate), subject to Section 7. Participant will not be required to make any additional monetary payment (other than applicable tax withholding, if any) upon settlement of the Award.
Payment after Earning. Any Performance Shares that are earned or are deemed earned in accordance with the Performance Share Award Program will be paid to Participant (or in the event of Participant’s death, to his or her estate) in whole Performance Shares, subject to Participant satisfying any applicable tax withholding obligations as set forth in Section 9. Participant will not be required to make any additional monetary payment (other than applicable tax withholding, if any) upon settlement of the award.
Payment after Earning. Any Performance Shares that are earned or deemed earned in accordance with Section 2 will be paid to Participant during the calendar year following the calendar year the Performance Period expires; provided, however, that Performance Shares shall be paid earlier upon a Change in Control as provided in Section 2 of this Agreement. Any Performance Shares that are earned or are deemed earned in accordance with Section 2 will be paid to Participant (or in the event of Participant’s death, to his or her estate) in whole Shares, subject to Participant satisfying any applicable tax withholding obligations as set forth in Section 7. Participant will not be required to make any additional monetary payment (other than applicable tax withholding, if any) upon settlement of the Award. Notwithstanding anything in the Plan or this Agreement to the contrary, if the vesting of the balance, or some lesser portion of the balance, of the Performance Shares is accelerated in connection with Participant’s termination as an Employee (provided that such termination is a “separation from service” within the meaning of Section 409A, as determined by the Company), other than due to death, and if
(i) Participant is a “specified employee” within the meaning of Section 409A at the time of such termination as an Employee, and (ii) the payment of such accelerated Performance Shares will result in the imposition of additional tax under Section 409A if paid to Participant on or within the six (6) month period following Participant’s termination as an Employee, then the payment of such accelerated Performance Shares will not be made until the date six (6) months and one (1) day following the date of Participant’s termination as an Employee, unless the Participant dies following his or her termination as an Employee, in which case, the Performance Shares will be paid in Shares to the Participant’s estate as soon as practicable following his or her death. It is the intent of this Agreement to comply with the requirements of Section 409A so that none of the Performance Shares provided under this Agreement or Shares issuable thereunder will be subject to the additional tax imposed under Section 409A, and any ambiguities herein will be interpreted to so comply. For purposes of this Agreement, “Section 409A” means Section 409A of the Code, and any proposed, temporary or final Treasury Regulations and Internal Revenue Service guidance thereunder, as each may be amended from time to time.