Unfunded Program Clause Samples
The Unfunded Program clause defines a program or plan that does not have dedicated assets set aside to pay its obligations, meaning benefits are paid directly from the employer’s general assets. In practice, this clause typically applies to certain retirement or deferred compensation plans where participants have no claim to specific funds, and payments are made at the employer’s discretion as liabilities arise. Its core function is to clarify that participants are unsecured creditors, thereby allocating risk and ensuring all parties understand the financial structure and limitations of the program.
Unfunded Program. The Program shall be unfunded, and OCA shall not be required to segregate any assets that may at any time be represented by grants under the Program. Any liability of OCA to any person with respect to any grant under the Program shall be based solely upon contractual obligations that may be created hereunder. No such obligation of OCA shall be deemed to be secured by any pledge of, or other encumbrance on, any property of OCA.
Unfunded Program. The Program shall be unfunded and the Company shall not be required to segregate any assets that may at any time be represented by awards under the Program. Neither the Company, its affiliates, the Program Administrators, nor the Board shall be deemed to be a trustee of any amounts to be paid under the Program nor shall anything contained in the Program or any action taken pursuant to its provisions create or be construed to create a fiduciary relationship between any such party and a Plan Participant or anyone claiming on his or her behalf. To the extent a Plan Participant or any other person acquires a right to receive payment pursuant to an award under the Program, such right shall be no greater than the right of an unsecured general creditor of the Company.