VSA Payable Liability Clause Samples
The VSA Payable Liability clause defines the obligation of one party to pay amounts due under a Voluntary Separation Agreement (VSA). Typically, this clause outlines the specific circumstances under which payments become due, such as upon an employee's separation from the company, and may detail the calculation or timing of such payments. Its core function is to ensure that the financial responsibilities related to voluntary separations are clearly allocated and understood, thereby reducing the risk of disputes over payment obligations.
VSA Payable Liability. The Company will establish one or more accounts payable (the “VSA Payable Liability”) on its statutory books equal to the difference between the aggregate VSA Accumulated Value and the aggregate Statutory Reserves related to a VSA. The quarterly change (or monthly change as applicable) in a VSA Payable Liability shall be calculated in accordance with the provisions of Schedule 3.4. The Reinsurer will set up a corresponding account receivable on its statutory books equal to the VSA Payable Liabilities.