Additional Code Section 409A Provisions Clause Samples
The "Additional Code Section 409A Provisions" clause ensures that any compensation or benefits provided under the agreement comply with Section 409A of the Internal Revenue Code, which governs the taxation of nonqualified deferred compensation. This clause typically outlines procedures for payment timing, deferral elections, and restrictions to prevent unintentional tax penalties for the recipient. Its core function is to protect both parties by ensuring the agreement does not inadvertently trigger adverse tax consequences, thereby maintaining compliance with federal tax law.
Additional Code Section 409A Provisions. Notwithstanding any other provision in the Severance Agreement, CIC Agreement or Offer Letter to the contrary, to the extent that the reimbursement of any expense or the provision of any in-kind benefits to or for the benefit of the Executive is subject to Section 409A of the Code, (i) the amount of such expense eligible for reimbursement, or in-kind benefits to be provided, during any one calendar year shall not affect Clarification and Modification Agreement Scarpa the amount of such expense eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year, (ii) reimbursement of any such expense shall be made by no later than December 31 of the year following the calendar year in which such expense is incurred, and (iii) the Executive’s right to receive such reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit. The Company acknowledges that, for purposes of Section 409A of the Code, each and every payment made under the Severance Agreement or the CIC Agreement shall be deemed a separate payment and not a series of payments.
Additional Code Section 409A Provisions. Notwithstanding any other provision in the Severance Agreement or CIC Agreement to the contrary, to the extent that the reimbursement of any expense or the provision of any in-kind benefits to or for the benefit of the Executive is subject to Section 409A of the Code, (i) the amount of such expense eligible for reimbursement, or in-kind benefits to be provided, during any one calendar year shall not affect the amount of such expense eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year, (ii) reimbursement of any such expense shall be made by no later than December 31 of the year following the calendar year in which such expense is incurred, and (iii) the Executive’s right to receive such reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit. The Company acknowledges that, for purposes of Section 409A of the Code, each and every payment made under the Severance Agreement or the CIC Agreement shall be deemed a separate payment and not a series of payments.