409A Exemption Clause Samples

The 409A Exemption clause defines how a contract or compensation arrangement is structured to avoid being subject to the requirements of Section 409A of the Internal Revenue Code, which governs the taxation of deferred compensation. In practice, this clause typically specifies that payments will be made in a manner that does not trigger 409A, such as by ensuring payments are made within a short period after vesting or upon certain permissible events. Its core function is to prevent adverse tax consequences for employees or service providers by ensuring that compensation arrangements are compliant with or exempt from the complex rules of Section 409A.
409A Exemption. The right to a series of payments under this Agreement will be treated as a right to a series of separate payments. Each such payment that is made within 2 ½ months following the end of the year that contains the Termination Date is intended to be exempt from Section 409A as a short-term deferral within the meaning of the final regulations under Section 409A. Each such payment that is made later than 2 ½ months following the end of the year that contains the Termination Date is intended to be exempt under the two-times exception of Treasury Reg. §1.409A-1(b)(9)(iii), up to the limitation on the availability of that exception specified in the regulation. Then, each payment that is made after the “two-times” exception ceases to be available shall be subject to delay, as necessary, as specified below.
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409A Exemption. (a) All cash payments and all taxable benefits provided for under this Agreement are intended to be exempt from Code Section 409A by reason of the short-term deferral exemption and/or the separation pay plan exemption, found in Treasury Regulation Section 1.409A-1(b)(4) and -1(b)(9)(iii), respectively, and shall be interpreted and administered to the maximum extent permissible so as to comply in all regards with the aforementioned exemptions. (b) In the event any portion of the cash payments and/or taxable benefits provided for under this Agreement are determined to be outside the scope of the regulatory exemptions referred to in the preceding paragraph, such payments and benefits shall be paid or provided following the time or schedule measured by reference to your Separation from Service, and shall not be paid or provided during the first six months following your Separation from Service (with payments otherwise payable during such period to be paid on the first day of the seventh month following your Separation from Service).] } { ALTERNATIVES: [President and Chief Executive Officer] [Chairman of the Board] }
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409A Exemption. All cash payments and all taxable benefits provided for under this Agreement are intended to be exempt from Code section 409A by reason of the short-term deferral exemption and/or the separation pay plan exemption, found in Treasury Regulation Section 1.409A-1(b)(4) and -1(b)(9)(iii), respectively, and shall be interpreted and administered to the maximum extent permissible so as to comply in all regards with the aforementioned exemptions.
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Related to 409A Exemption

  • Section 16(b) Exemption The Company shall take all actions reasonably necessary to cause the transactions contemplated by this Agreement and any other dispositions of equity securities of the Company (including derivative securities) in connection with the transactions contemplated by this Agreement by each individual who is a director or executive officer of the Company to be exempt under Rule 16b-3 promulgated under the Exchange Act.

  • FINRA Exemption To enable ▇▇▇▇▇ to rely on Rule 5110(b)(7)(C)(i) of FINRA, the Company represents that the Company (i) has a non-affiliate, public common equity float of at least $150 million or a non-affiliate, public common equity float of at least $100 million and annual trading volume of at least three million shares and (ii) has been subject to the Exchange Act reporting requirements for a period of at least 36 months.

  • ERISA Exemptions The Parent and the Borrower shall not, and shall not permit any Subsidiary to, permit any of its respective assets to become or be deemed to be “plan assets” within the meaning of ERISA, the Internal Revenue Code and the respective regulations promulgated thereunder.

  • Religious Exemption Any employee of the City in a classification identified in Article I.A., who is a member of a bona fide religion, body or sect which has historically held conscientious objections to joining or financially supporting a public employee organization and is recognized by the National Labor Relations Board to hold such objections to Association membership, shall upon presentation of membership and historical objection be relieved of any obligation to pay the required service fee. The Association shall be informed in writing of any such requests.

  • TAX EXEMPTION The Department of Montana is exempt from Federal Excise Taxes (#▇▇-▇▇▇▇▇▇▇).