Common use of Payment for Restricted Stock Units Clause in Contracts

Payment for Restricted Stock Units. (a) The Company will pay one share of Common Stock to the Grantee for each vested Restricted Stock Unit upon the earlier of the following events, but in no case earlier than the date the Award becomes vested under Section 6: (i) thirty (30) days after the Grantee’s date of termination of employment with the Company and all of the Company’s Subsidiaries and Affiliates; or (ii) the last day of the Company’s fiscal year in which the payment of Common Stock in satisfaction of the Restricted Stock Units becomes deductible to the Company under Section 162(m) of the Code, in which case the Company may pay out a portion of the Restricted Stock Unit Award if payment of the entire Award would not be deductible to the Company and the remaining portion of the Award shall be paid when, and to the extent, the payment becomes deductible. If the Grantee has other outstanding vested awards that are conditioned on payment being deductible to the Company, the vested awards that do not have performance-based criteria shall be paid first and in the order they were first granted. (b) Notwithstanding the foregoing, in the event that the Grantee is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code, any payment under this Award Agreement shall be delayed until the earlier of (i) six months after the Grantee’s separation from service with the Company and (ii) the Grantee’s death, if such a delay is necessary to avoid the imposition of additional tax and interest on the Grantee under Section 409A(a)(1)(B) of the Code.

Appears in 2 contracts

Samples: Restricted Stock Unit Award Agreement (Methode Electronics Inc), Restricted Stock Unit Award Agreement (Methode Electronics Inc)

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Payment for Restricted Stock Units. (a) The Company will pay one share of Common Stock to the Grantee for each vested Restricted Stock Unit upon the earlier of the following events, but in no case earlier than the date the Award becomes vested under Section 6April 30, 2007: (i) thirty (30) days after the Grantee’s date of termination of employment with the Company and all of the Company’s Subsidiaries and Affiliates; or (ii) the last day of the Company’s fiscal year in which the payment of Common Stock in satisfaction of the Restricted Stock Units becomes deductible to the Company under Section 162(m) of the Code, in which case the Company may pay out a portion of the Restricted Stock Unit Award if payment of the entire Award would not be deductible to the Company and the remaining portion of the Award shall be paid when, and to the extent, the payment becomes deductible. If the Grantee has other outstanding vested awards that are conditioned on payment being deductible to the Company, the vested awards that do not have performance-based criteria shall be paid first and in the order they were first granted. (b) Notwithstanding the foregoing, in the event that the Grantee is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code, any payment under this Award Agreement shall be delayed until the earlier of (i) six months after the Grantee’s separation from service with the Company and (ii) the Grantee’s death, if such a delay is necessary to avoid the imposition of additional tax and interest on the Grantee under Section 409A(a)(1)(B) of the Code.

Appears in 1 contract

Samples: Restricted Stock Unit Award Agreement (Methode Electronics Inc)

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Payment for Restricted Stock Units. (a) The Company will pay one share of Common Stock to the Grantee for each vested Restricted Stock Unit upon the earlier of the following events, but in no case earlier than the date the Award becomes vested under Section 6April 29, 2007: (i) thirty (30) days after the Grantee’s date of termination of employment with the Company and all of the Company’s Subsidiaries and Affiliates; or (ii) the last day of the Company’s fiscal year in which the payment of Common Stock in satisfaction of the Restricted Stock Units becomes deductible to the Company under Section 162(m) of the Code, in which case the Company may pay out a portion of the Restricted Stock Unit Award if payment of the entire Award would not be deductible to the Company and the remaining portion of the Award shall be paid when, and to the extent, the payment becomes deductible. If the Grantee has other outstanding vested awards that are conditioned on payment being deductible to the Company, the vested awards that do not have performance-based criteria (such as this Award) shall be paid first and in the order they were first granted. (b) Notwithstanding the foregoing, in the event that the Grantee is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code, any payment under this Award Agreement shall be delayed until the earlier of (i) six months after the Grantee’s separation from service with the Company and (ii) the Grantee’s death, if such a delay is necessary to avoid the imposition of additional tax and interest on the Grantee under Section 409A(a)(1)(B) of the Code.

Appears in 1 contract

Samples: Restricted Stock Unit Award Agreement (Methode Electronics Inc)

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