Six-Month Distribution Delay Clause Samples
The Six-Month Distribution Delay clause establishes a mandatory waiting period of six months before certain distributions, typically of assets or payments, can be made to specific parties, often in the context of employment or deferred compensation agreements. In practice, this clause is commonly applied to distributions owed to key employees or insiders following separation from service, ensuring that payments are not made immediately but are instead delayed for the specified period. The core function of this clause is to ensure compliance with tax regulations, such as Section 409A of the Internal Revenue Code, and to prevent adverse tax consequences by delaying payments to individuals who may be subject to special rules.
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Six-Month Distribution Delay. Notwithstanding the foregoing, if Executive is a “specified employee,” within the meaning of Treasury Regulation §1.409A-1(i) and as determined under BLI’s policy for determining specified employees, on the Executive’s date of termination, and the Executive is entitled to a payment and/or a benefit under this Agreement that is required to be delayed pursuant to Section 409A(a)(2) of the Code, then such payment or benefit shall not be paid or provided (or begin to be paid or provided) until the first business day of the seventh month following the Executive’s date of termination (or, if earlier, the Executive’s death). The first payment that can be made following such postponement period shall include the cumulative amount of any payments or benefits that could not be paid or provided during such postponement period due to the application of Section 409A(a)(2)(B)(i) of the Code.
Six-Month Distribution Delay. Notwithstanding anything in this Agreement to the contrary, if the Executive is a “specified employee” (within the meaning of Section 409A of the Code and the Treasury Regulations promulgated thereunder and as determined under the Company’s policy for determining specified employees), on the Executive’s date of termination and the Executive is entitled to a payment and/or a benefit under this Agreement that is required to be delayed pursuant to Section 409A(a)(2)(B)(i) of the Code, then such payment or benefit, as the case may be, shall not be paid or provided (or begin to be paid or provided) until the first business day of the seventh month following the date of the Executive’s termination of employment (or, if earlier, the date of the Executive’s death). The first payment that can be made to the Executive following such postponement period shall include the cumulative amount of any payments or benefits that could not be paid or provided during such postponement period due to the application of Section 409A(a)(2)(B)(i) of the Code.
Six-Month Distribution Delay. Notwithstanding anything in this Award Agreement to the contrary, if your RSUs are subject to Section 409A of the Code and you are a “specified employee,” within the meaning of Section 409A of the Code and as determined under the Company’s policy for determining specified employees, on the date of your Termination of Service, you will not be entitled to settlement of your RSUs on account of such Termination of Service until the first business day of the seventh month following the date of Termination of Service (or, if earlier, your death).
Six-Month Distribution Delay. If the Executive is a “specified employee,” within the meaning of Code §409A and as determined under C▇▇▇▇▇▇’▇ policy for determining specified employees, on the Date of Termination, all payments and benefits under this Section 7 (other than payments and benefits that are short-term deferrals, as defined in Treasury Regulation §1.409A-1(b)(4), or that are treated as separation pay under Treasury Regulation §1.409A-1(b)(9)(iii) or §1.409A-1(b)(9)(v)) shall not be paid or provided (or commence to be paid or provided) until the first business day after the date that is six (6) months following the Date of Termination (or, if earlier, the Executive’s death). The payment made on the first business day after the date that is six (6) months following the Date of Termination shall include the cumulative amount of any amounts that could not be paid or provided during such six-month period.