Common use of Code Section 409A Limitation Clause in Contracts

Code Section 409A Limitation. Notwithstanding any provision of the Plan to the contrary, in no event shall any amendment or termination of the Plan be effective unless one of the following is true: (i) the amendment or termination does not cause an acceleration or impermissible delay in payment of benefits under Code Section 409A, (ii) any acceleration or delay in payment is covered by an exception to the prohibition on accelerations or delays under Code Section 409A, or (iii) the Plan Sponsor and the Participant acknowledge in writing that the amendment or termination accelerates or delays the payment of benefits and is likely to result in Code Section 409A penalties.