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This Agreement shall be interpreted and applied in all circumstances in a manner that is consistent with the intent of the parties that amounts earned and payable pursuant to this Agreement shall not be subject to the premature income recognition or adverse tax provisions of Internal Revenue Code Section 409A. Accordingly, by way of example and not limitation, (a) distributions of benefits payable following Employee\u2019s termination of employment shall commence as of the date required by this Agreement or, if later, the earliest date permitted by Internal Revenue Code Section 409A (generally six months after termination, if Employee is a \u201cspecified employee\u201d within the meaning of Internal Revenue Code Section 409A), and (b) the phrase \u201ctermination of employment\u201d (and similar terms and phrases) shall be construed to mean \u201cseparation from service\u201d within the meaning of Internal Revenue Code Section 409A.", "hash": "538b2b5e4dfb20c6b83ac89cd932030e", "id": 7}, {"size": 20, "snippet_links": [{"key": "this-compact", "type": "definition", "offset": [0, 12]}, {"key": "liberally-construed", "type": "clause", "offset": [22, 41]}, {"key": "the-provisions-of-this", "type": "clause", "offset": [84, 106]}, {"key": "provision-of", "type": "clause", "offset": [174, 186]}, {"key": "contrary-to", "type": "definition", "offset": [218, 229]}, {"key": "the-constitution", "type": "clause", "offset": [230, 246]}, {"key": "participating-state", "type": "clause", "offset": [254, 273]}, {"key": "the-united-states", "type": "definition", "offset": [280, 297]}, {"key": "validity-of-the", "type": "clause", "offset": [400, 415]}, {"key": "full-force-and-effect", "type": "clause", "offset": [669, 690]}, {"key": "the-state", "type": "clause", "offset": [753, 762]}], "samples": [{"hash": "bOrhVuWJWMR", "uri": "/contracts/bOrhVuWJWMR#construction-and-severability", "label": "Interstate Agreement", "score": 28.7460441589, "published": true}, {"hash": "hSLMU7PUuCx", "uri": "/contracts/hSLMU7PUuCx#construction-and-severability", "label": "Interstate Agreement", "score": 24.8836193085, "published": true}, {"hash": "42J5A2WMn8B", "uri": "/contracts/42J5A2WMn8B#construction-and-severability", "label": "Interstate Agreement", "score": 24.3963680267, "published": true}], "snippet": "This compact shall be liberally construed so as to effectuate the purposes thereof. The provisions of this compact shall be severable and if any phrase, clause, sentence, or provision of this compact is declared to be contrary to the constitution of any participating state or of the United States, or the applicability thereof to any government, agency, person, or circumstance is held invalid, the validity of the remainder of this compact and the applicability thereof to any government, agency, person, or circumstance shall not be affected thereby. 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[3453, 3470]}, {"key": "action-or-inaction", "type": "clause", "offset": [3560, 3578]}, {"key": "the-value", "type": "clause", "offset": [3786, 3795]}, {"key": "proprietary-marks", "type": "definition", "offset": [3803, 3820]}, {"key": "hotel-guest", "type": "definition", "offset": [3856, 3867]}, {"key": "in-the-event", "type": "clause", "offset": [3974, 3986]}, {"key": "exercise-of-discretion", "type": "clause", "offset": [4011, 4033]}, {"key": "bad-faith", "type": "definition", "offset": [4212, 4221]}, {"key": "burden-of-establishing", "type": "definition", "offset": [4249, 4271]}, {"key": "to-exercise", "type": "clause", "offset": [4295, 4306]}, {"key": "the-fact", "type": "clause", "offset": [4349, 4357]}, {"key": "implied-covenant-of-good-faith-and-fair-dealing", "type": "clause", "offset": [4563, 4610]}], "samples": [{"hash": "ad8VREmzNYL", "uri": "/contracts/ad8VREmzNYL#construction-and-severability", "label": "Franchise Agreement", "score": 31.3408622742, "published": true}, {"hash": "kDx7rb20gwl", "uri": "/contracts/kDx7rb20gwl#construction-and-severability", "label": "Franchise Agreement (Apple REIT Eight, Inc.)", "score": 21.0, "published": true}, {"hash": "f6MesIrjZOU", "uri": "/contracts/f6MesIrjZOU#construction-and-severability", "label": "Franchise Agreement (Apple REIT Eight, Inc.)", "score": 21.0, "published": true}], "snippet": "A. Unless otherwise specified, the term \u201cFranchisee\u201d as used in this Agreement shall include the entity identified in the preamble to this Agreement.\nB. Except as expressly provided to the contrary herein, each section, part, term and/or provision of this Agreement, including, but not limited to Section XXI.E., shall be considered severable; and if, for any reason any section, part, term or provision herein is determined to be invalid, unenforceable or contrary to, or in conflict with, any existing or future law or regulation by a court or agency having valid jurisdiction, such shall not impair the operation of, or have any other effect upon, such other sections, parts, terms and provisions of this Agreement as may remain otherwise intelligible, and the latter shall continue to be given full force and effect and bind the parties hereto; and said invalid or unenforceable sections, parts, terms or provisions shall be deemed to be replaced with a provision that is valid and enforceable and most nearly reflects the original intent of the invalid or unenforceable provision.\nC. Nothing in this Agreement is intended, nor shall be deemed, to confer any rights or remedies under or by reason of this Agreement upon any person or legal entity other than Franchisor or Franchisee and such of their respective successors and assigns subject to the prior approvals set forth in Section XV. hereof.\nD. Franchisee and Franchisor expressly agree to be bound by any promise or covenant imposing the maximum duty permitted by law that is subsumed within the terms of any provision hereof, as though it were separately articulated in and made part of this Agreement, that may result from striking any of the provisions hereof and portion or portions that a court may hold to be unreasonable and unenforceable in a final decision to which Franchisor or Franchisee, as applicable, is a party, or from reducing the scope of any promise or covenant to the extent required to comply with such a court order.\nE. All captions in the Agreement are intended solely for the convenience of the parties, and none shall be deemed to affect the meaning or construction of any provision hereof.\nF. All references herein to the masculine, neuter or singular shall be construed to include the masculine, feminine, neuter or plural, where applicable, and all acknowledgments, promises, covenants, agreements and obligations herein made or undertaken by Franchisee shall be deemed jointly and severally undertaken by all the parties hereto on behalf of Franchisee.\nG. This Agreement may be executed in a number of identical counterparts, each of which shall be deemed an original for all purposes and all of which shall constitute, collectively, one agreement. Delivery of an executed signature page to this Agreement by facsimile transmission shall be effective as delivery of a manually signed counterpart of this Agreement.\nH. When this Agreement provides that Franchisor may take or refrain from taking any action or exercise discretion, such as rights of approval, to modify the System, or to make determinations, Franchisor may do so from time to time.\nI. Except where Franchisor has reserved \u201csole discretion\u201d or as otherwise indicated in this Agreement, Franchisor agrees to use \u201cReasonable Business Judgment\u201d when discharging its obligations or exercising its rights or discretion under this Agreement, including with respect to any consents and approvals and the administration of its relationship with Franchisee. \u201cReasonable Business Judgment\u201d means that Franchisor\u2019s action or inaction has a business basis that is intended to benefit the System or the profitability of the System, including Franchisor, regardless of whether some individual hotels may be unfavorably affected; or to increase the value of the Proprietary Marks; or to increase or enhance overall hotel guest or franchisee or owner satisfaction; or to minimize possible brand inconsistencies or customer confusion. In the event that such obligation or exercise of discretion is unrelated to the System, standards, brand or other subjects described above, Reasonable Business Judgment shall mean that Franchisor has a business basis and has not acted in bad faith. Franchisee shall have the burden of establishing that Franchisor failed to exercise Reasonable Business Judgment, and neither the fact that Franchisor benefited economically from an action nor the existence of other \u201creasonable\u201d alternatives will, by themselves, establish such failure. To the extent that any implied covenant, such as the implied covenant of good faith and fair dealing, is applied to this Agreement, Franchisor and Franchisee intend that Franchisor shall not have violated such implied covenant if Franchisor has exercised Reasonable Business Judgment.", "hash": "3a5e1c8f52f3e7de64a3927bbc018fb9", "id": 10}], "next_curs": "CmYSYGoVc35sYXdpbnNpZGVyY29udHJhY3RzckILEhZDbGF1c2VTbmlwcGV0R3JvdXBfdjU2IiZjb25zdHJ1Y3Rpb24tYW5kLXNldmVyYWJpbGl0eSMwMDAwMDAwYQyiAQJlbhgAIAA=", "clause": {"title": "Construction and Severability", "size": 1086, "children": [["interpretation", "Interpretation"], ["liability-of-multiple-licensees", "Liability of Multiple Licensees"], ["survival", "Survival"], ["invalidity", "Invalidity"], ["binding-effect", "Binding Effect"]], "parents": [["general", "General"], ["miscellaneous", "Miscellaneous"], ["general-provisions", "General Provisions"], ["no-other-representations-construction-governing-law-consents", "No Other Representations Construction Governing Law Consents"], ["miscellaneous-provisions", "Miscellaneous Provisions"]], "id": "construction-and-severability", "related": [["modification-and-severability", "Modification and Severability", "Modification and Severability"], ["integration-and-severability", "Integration and Severability", "Integration and Severability"], ["waiver-and-severability", "Waiver and Severability", "Waiver and Severability"], ["reformation-and-severability", "Reformation and Severability", "Reformation and Severability"], ["interpretation-and-severability", "Interpretation and Severability", "Interpretation and Severability"]], "related_snippets": [], "updated": "2025-08-09T06:18:11+00:00", "also_ask": ["How can severability be leveraged to preserve favorable terms if part of the contract is invalidated?", "What drafting language ensures the broadest possible survival of remaining provisions?", "What are the most common pitfalls that render severability clauses ineffective in court?", "How do severability standards differ across key jurisdictions?", "What tests do courts apply to determine if a severed provision undermines the contract\u2019s core purpose?"], "drafting_tip": "Clarify interpretation rules to prevent disputes, specify severability to preserve valid terms, and address partial invalidity to ensure contract enforceability.", "explanation": "The Construction and Severability clause defines how the contract should be interpreted and addresses what happens if any part of the agreement is found to be invalid or unenforceable. Typically, this clause states that the remaining provisions of the contract will continue to be in effect even if one section is deemed void, and it may also clarify that ambiguous terms should be interpreted in a way that reflects the parties' intentions. Its core function is to ensure that the contract remains enforceable and effective even if certain provisions are challenged or struck down, thereby preserving the overall agreement and minimizing disruption."}, "json": true, "cursor": ""}}