Section 409a Clause Example from Business Contracts

Section 409a. It is the intent of the Parties that any payment to which Executive is entitled under this Agreement be exempt from Section 409A of the Code ("Section 409A") to the maximum extent permitted under Section 409A. However, if any such amounts are considered to be "nonqualified deferred compensation" subject to Section 409A, such amounts shall be paid and provided in a manner that, and at such time and in such form as, complies with the applicable requirements of Section 409A to avoid the unfavorable... tax consequences provided therein for non-compliance. No Party shall intentionally take any action to accelerate or delay the payment of any amounts in any manner which would not be in compliance with Section 409A without the consent of the other Parties. For purposes of this Agreement, all rights to payments shall be treated as rights to receive a series of separate payments to the fullest extent allowed by Section 409A. To the extent that some portion of the payments provided for under this Agreement may be bifurcated and treated as exempt from Section 409A under the "short-term deferral" or "separation pay" exemptions, then such amounts may be so treated as exempt from Section 409A. View More