Section 409a Clause Example from Business Contracts

Section 409a. The Parties intend for the payments and benefits under this Agreement to be exempt from Section 409A of the Internal Revenue Code of 1986 as amended ("Section 409A") or, if not so exempt, to be paid or provided in a manner which complies with the requirements of such section, and intend that this Agreement shall be construed and administered in accordance with such intention. If any payments or benefits due to the Executive under this Agreement would cause the application of an accelerated or ad...ditional tax under Section 409A, such payments or benefits shall be restructured in a manner which does not cause such an accelerated or additional tax. For purposes of the limitations on nonqualified deferred compensation under Section 409A, each payment of compensation under this Agreement be treated as a separate payment of compensation. Without limiting the foregoing and notwithstanding anything contained herein to the contrary, to the extent required in order to avoid accelerated taxation and/or tax penalties under Section 409A, amounts that would be otherwise payable and benefits that would be otherwise provided during the six month period immediately following the Executive's separation from service shall instead be paid on the first business day after the date that is six months following Executive's separation from service. 14 22. Successors and Assigns. This Agreement may not be assigned by either Party without the prior written consent of the other Party, to be given or withheld in the sole discretion of the other Party. This Agreement shall inure to the benefit of the Parties and their permitted successors and assigns. View More