Common use of When Payments Start Clause in Contracts

When Payments Start. Distribution shall begin during the first 15 days of January in the calendar year immediately following the year in which the earliest of the events listed in paragraphs (1) through (6) of subsection (a) occurs. If a Change in Control as defined in paragraph 1 occurs, then Section 6 shall apply. With respect to Executives who are Specified Employees who receive payment due to termination of employment, then no payments shall be made during the six month period following such termination (unless the Executive’s death occurs within that period), provided that if an event in paragraph (4) or (5) of subsection (a) occurs, then the foregoing six month delay of payment shall apply only to the amount that exceeds two times the lesser of (i) the Participant’s annualized Compensation for the Participant’s taxable year preceding the year in which termination occurs (adjusted for any increase during that year that was expected to continue indefinitely absent termination of service), and (ii) the maximum amount that may be taken into account under Code Section 401(a)(17) for the year in which termination occurs.