Common use of Code Section 409A Separation Pay Plan Clause in Contracts

Code Section 409A Separation Pay Plan. Severance payment pursuant to this paragraph 16 shall be treated as made pursuant to an involuntary separation from service and a separation pay plan exempt from Internal Revenue Code Section 409A in accordance with Treasury Regulation Section 1.409A-1(b)(9)(iii), and the Employer in its unilateral discretion may alter the time of payment to the minimal extent possible if necessary to not trigger noncompliance with said Section 409A. In addition, the severance amount to be paid under this paragraph 16 shall not exceed two times the maximum amount that may be considered under Internal Revenue Code Section 401(a)(17) in accordance with the foregoing Treasury Regulation. In the event the Employer in its sole discretion determines that any payment hereunder is not exempt from said Code Section 409A, then the Employer shall without the consent of the Employee reform said payments to the minimal extent necessary to comply with Code Section 409A, including without limitation to impose the six (6) month waiting period for payments to specified employees.