Application of Internal Revenue Code Section 409a Clause Example from Business Contracts

Application of Internal Revenue Code Section 409a. (a) Notwithstanding anything to the contrary contained in this Agreement, if any payment or reimbursement, or the provision of any benefit under this Agreement that is paid or provided upon Executive's "separation from service" with the Company within the meaning of Code Section 409A(a)(2)(A)(i) would constitute a "deferral of compensation" under Code Section 409A and Executive is a "specified employee" (as determined pursuant to procedures adopted by the Company in compliance with Code Section ...409A) on the date of Executive's "separation from service" with the Company within the meaning of Code Section 409A(a)(2)(A)(i), Executive will receive payment or reimbursement of such amounts or the provision of such benefits upon the earlier of (i) the first day of the seventh month following the date of Executive's "separation from service" with the Company within the meaning of Section 409A(a)(2)(A)(i) of the Code or (ii) Executive's death. 8 (b) To the extent applicable, it is intended that this Agreement comply with the provisions of Code Section 409A, so that the income inclusion provisions of Code Section 409A(a)(1) do not apply to Executive. This Agreement shall be administered in a manner consistent with this intent. Reference to Code Section 409A is to Section 409A of the Internal Revenue Code of 1986, as amended, and will also include any regulations or any other formal guidance promulgated with respect to such Section by the U.S. Department of the Treasury or the Internal Revenue Service. View More