Common use of Delay in Payments for Specified Employee in the Event of a Separation From Service and Compliance With IRC 409A Clause in Contracts

Delay in Payments for Specified Employee in the Event of a Separation From Service and Compliance With IRC 409A. In the case of any Employee who is a Specified Employee as of the date of a Separation from Service, then a payment conditioned upon a Separation from Service may not be made before the date that is six (6) months after the date of Separation from Service (or, if earlier than the end of the six-month period, the date of death of the Specified Employee). In the event payments to which the Executive would otherwise be entitled during the first six (6) months are subject to this six (6) month delay in payment, then such payments shall be accumulated and paid on the first day of the seventh month following the date of Separation from Service. Payments will then continue thereafter as called for pursuant to the terms of this Agreement. Notwithstanding any provision existing in this Agreement or any amendment thereto, it is the intent of the Bank and the Executive that any payment or benefit provided pursuant to this Agreement shall be made and paid in a manner, at a time and in a form which complies with the applicable requirements of IRC Section 409A, in order to avoid any unfavorable tax consequences resulting from any such failure to comply.

Delay in Payments for Specified Employee in the Event of a Separation From Service and Compliance With IRC 409A. In the case of any Employee who If Executive is a Specified Employee as of the date of a his Separation from From Service, then a any payment conditioned upon a Separation from From Service may not be made before the date that is six (6) months after the date of Separation from From Service (or, if earlier than the end of the six-six (6) month period, the date of death of the Specified EmployeeExecutive’s death). In the event payments to which the Executive would otherwise be entitled during the first (1st) six (6) months following a Separation From Service are subject to this six (6) month delay in payment, then such payments shall be accumulated and paid on the first (1st) day of the seventh (7th) month following the date of Separation from From Service. Payments will then continue thereafter as called for pursuant to the terms of this Agreement. Notwithstanding any provision existing in this Agreement or any amendment thereto, it is the intent of the Bank and the Executive that any payment or benefit provided pursuant to this Agreement shall be made and paid in a manner, at a time and in a form which complies with the applicable requirements of IRC Section 409A, in order to avoid any unfavorable tax consequences resulting from any such failure to comply.