Company’s Obligation to Pay Clause Example from Business Contracts

Company’s Obligation to Pay. Each Restricted Stock Unit represents the right to receive one share of Common Stock (each, a "Share" and, collectively, the "Shares") on the date it vests. Unless and until the Restricted Stock Units will have vested in the manner set forth in Section 3, Participant will have no right to payment of any such Restricted Stock Units. Prior to actual payment of any vested Restricted Stock Units, such Restricted Stock Units will represent an unsecured obligation of the Company, payable (if at all) o...nly from the general assets of the Company, and this award of Restricted Stock Units shall not be construed as creating a trust. Any Restricted Stock Units that vest in accordance with Sections 3 or 4 will be paid to Participant (or in the event of Participant's death, to his or her estate) in whole Shares, subject to Participant satisfying any applicable tax withholding or other obligations as set forth in Section 7. Subject to the provisions of Section 4, such vested Restricted Stock Units will be paid in Shares as soon as practicable after vesting, but in each such case within the period ending no later than the date that is two and one-half (21⁄2) months from the end of the Company's tax year that includes the vesting date. Any fractional Shares that would otherwise vest on a particular vesting date will vest on the final date of vesting of this award of Restricted Stock Units. In the event there is a fractional share on the final date of vesting of this award of Restricted Stock Units, the number of Restricted Stock Units that vest on such final vesting date will be rounded up to the nearest whole number. View More