Possible Six-Month Delay Clause Samples
The 'Possible Six-Month Delay' clause allows for the extension of deadlines or obligations by up to six months under certain circumstances. Typically, this clause is triggered by events outside the control of the parties, such as force majeure situations, regulatory delays, or other unforeseen obstacles that prevent timely performance. Its core practical function is to provide flexibility and protect parties from penalties or breach of contract when delays are unavoidable, thereby allocating risk and ensuring fairness in the face of unexpected disruptions.
POPULAR SAMPLE Copied 1 times
Possible Six-Month Delay. If, at the time of Employee’s separation from service (within the meaning of Section 409A), (a) Employee shall be a specified employee (within the meaning of Section 409A and using the identification methodology selected by Employer from time to time) and (b) Employer shall make a good faith determination that an amount payable under an Employer Plan constitutes deferred compensation (within the meaning of Section 409A) the payment of which is required to be delayed pursuant to the six-month delay rule set forth in Section 409A in order to avoid taxes or penalties under Section 409A, then Employer (or an affiliate thereof, as applicable) shall not pay such amount on the otherwise scheduled payment date but shall instead accumulate such amount and pay it, without interest, on the first day of the seventh month following such separation from service.
Possible Six-Month Delay. Notwithstanding the foregoing, if the Executive is a "specified employee" within the meaning of Code Section 409A(a)(2)(B)(i) and the payment is due to the Executive's Separation from Service, then to the extent necessary to comply with Code Section 409A, the payment shall be delayed to provide that no payment shall be made until the expiration of six (6) months following the Date of Termination. In the event that payment is so delayed, the first payment that would otherwise be made shall be made to Executive on the first day of the seventh month following the Date of Termination.