Discretionary Formula Clause Samples
A Discretionary Formula clause grants one party the authority to determine certain values or calculations within a contract based on their judgment or discretion. In practice, this might allow a lender to set interest rates, adjust financial ratios, or modify payment amounts according to specified criteria or market conditions, rather than relying on a fixed formula. The core function of this clause is to provide flexibility and adaptability in contractual arrangements, enabling parties to respond to changing circumstances or uncertainties without renegotiating the entire agreement.
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Discretionary Formula. An amount (or additional amount) equal to a matching percentage the Employer from time to time may deem advisable of the Participant's deferral contributions. The Employer, in its sole discretion, may designate as a qualified matching contribution, all or any portion of its discretionary matching contribution. The portion of the Employer's discretionary matching contribution for a Plan Year not designated as a qualified matching contribution is a regular matching contribution. [ ] (c) MULTIPLE LEVEL FORMULA. An amount equal to the following percentages for each level of the Participant's deferral contributions. [Note: The matching percentage only will apply to deferral contributions in excess of the previous level and not in excess of the stated deferral contribution percentage.] Deferral Contributions Matching Percentage ---------------------- ------------------- ---------------------- ------------------- ---------------------- ------------------- ---------------------- -------------------
Discretionary Formula. An amount (or additional amount) equal to a matching percentage the Employer from time to time may deem advisable of the Participant’s deferral contributions. The Employer, in its sole discretion, may designate as a qualified matching contribution, all or any portion of its discretionary matching contribution. The portion of the Employer’s discretionary matching contribution for a Plan Year not designated as a qualified matching contribution is a regular matching contribution.
Discretionary Formula. The Employer may decide each Contribution Period whether to make a discretionary Nonelective Employer Contribution on behalf of “eligible” Participants in accordance with Section 5.10 of the Basic Plan Document.
Discretionary Formula. The Employer may decide each Plan Year whether to make a discretionary Nonelective Employer Contribution on behalf of eligible Active Participants in accordance with Section 5.10. Such contributions shall be allocated to eligible Active Participants based upon the following (check (1) or (2)):