Common use of Payments Subject to Code 409A Clause in Contracts

Payments Subject to Code 409A. Notwithstanding anything herein to the contrary, if the Executive is designated as a “specified employee” as defined in Code §409A and Regulations applicable thereto at the time any payment is due, any payments that would constitute “deferred compensation” under Code §409A will be paid on the 181st day following the Executive’s separation from service (as defined in Code §409A), and any delay in payment will accrue interest at the applicable federal short term rate as determined under Code § 1274 in effect on the date payment was otherwise due.

Payments Subject to Code 409A. Notwithstanding anything herein to the contrary, if the Executive is designated as a “specified employee” as defined in Code §409A and Regulations applicable thereto at the time any payment is due, any payments that would constitute “deferred compensation” under Code §409A will be paid on the 181st day following the Executive’s separation from service (as defined in Code §409A), and any such delay in payment will accrue interest at the applicable federal short term rate as determined under Code § 1274 in effect on the date payment was otherwise due.