{"component": "clause", "props": {"groups": [{"size": 6, "samples": [{"hash": "3a248DXeqD6", "uri": "/contracts/3a248DXeqD6#section-409", "label": "Employment Agreement (Vitesse Semiconductor Corp)", "score": 23.0999315537, "published": true}, {"hash": "amalxro888Z", "uri": "/contracts/amalxro888Z#section-409", "label": "Employment Agreement (Vitesse Semiconductor Corp)", "score": 21.9144421629, "published": true}, {"hash": "6HxIzvtuAa1", "uri": "/contracts/6HxIzvtuAa1#section-409", "label": "Employment Agreement (Vitesse Semiconductor Corp)", "score": 21.0, "published": true}], "snippet": "Vitesse makes no representations or warranties to Executive with respect to any tax, economic or legal consequences of this letter or any payments or other benefits provided hereunder, including without limitation under Section 409A of the Code. However, the parties intend that this Agreement and the payments and other benefits provided hereunder be exempt from the requirements of Section 409A of the Code to the maximum extent possible, whether pursuant to the short-term deferral exception described in Treasury Regulation Section 1.409A-1(b)(4), the involuntary separation pay plan exception described in Treasury Regulation Section 1.409A-1(b)(9)(iii), or otherwise. To the extent Section 409A of the Code is applicable to this Agreement (and such payments and benefits), the parties intend that this Agreement (and such payments and benefits) comply with the deferral, payout and other limitations and restrictions imposed under Section 409A of the Code. Notwithstanding any other provision of this Agreement to the contrary, this Agreement shall be interpreted, operated and administered in a manner consistent with such intentions. Without limiting the generality of the foregoing, and notwithstanding any other provision of this Agreement to the contrary, with respect to any payments and benefits under this letter to which Section 409A of the Code applies, all references in this letter to the termination of Executive\u2019s employment are intended to mean Executive\u2019s \u201cseparation from service,\u201d within the meaning of Section 409A(a)(2)(A)(i) of the Code. In addition, if Executive is a \u201cspecified employee,\u201d within the meaning of Section 409A(a)(2)(B)(i) of the Code, then to the extent necessary to avoid subjecting Executive to the imposition of any additional tax under Section 409A of the Code, amounts that would otherwise be payable under this Agreement during the six-month period immediately following Executive\u2019s \u201cseparation from service,\u201d within the meaning of Section 409A(a)(2)(A)(i) of the Code, will not be paid to Executive during such period, but will instead be accumulated and paid to Executive (or, in the event of Executive\u2019s death, Executive\u2019s estate) in a lump sum on the first business day following the earlier of (a) the date that is six months after Executive\u2019s separation from service or (b) Executive\u2019s death. It is intended that each installment, if any, of any severance payments shall be treated as a separate \u201cpayment\u201d for purposes of Section 409A.", "snippet_links": [{"key": "no-representations-or-warranties", "type": "clause", "offset": [14, 46]}, {"key": "to-executive", "type": "clause", "offset": [47, 59]}, {"key": "with-respect-to", "type": "clause", "offset": [60, 75]}, {"key": "consequences-of", "type": "definition", "offset": [103, 118]}, {"key": "benefits-provided", "type": "clause", "offset": [156, 173]}, {"key": "including-without-limitation", "type": "clause", "offset": [185, 213]}, {"key": "section-409a-of-the-code", "type": "definition", "offset": [220, 244]}, {"key": "the-parties", "type": "definition", "offset": [255, 266]}, {"key": "payments-and-other-benefits", "type": "clause", "offset": [302, 329]}, {"key": "the-requirements", "type": "clause", "offset": [364, 380]}, {"key": "pursuant-to-the", "type": "clause", "offset": [449, 464]}, {"key": "deferral-exception", "type": "definition", "offset": [476, 494]}, {"key": "treasury-regulation", "type": "definition", "offset": [508, 527]}, {"key": "separation-pay-plan", "type": "definition", "offset": [568, 587]}, {"key": "to-the-extent", "type": "clause", "offset": [674, 687]}, {"key": "to-this-agreement", "type": "clause", "offset": [727, 744]}, {"key": "payments-and-benefits", "type": "clause", "offset": [755, 776]}, {"key": "comply-with-the", "type": "clause", "offset": [851, 866]}, {"key": "limitations-and-restrictions", "type": "definition", "offset": [894, 922]}, {"key": "agreement-to", "type": "definition", "offset": [1007, 1019]}, {"key": "consistent-with", "type": "clause", "offset": [1109, 1124]}, {"key": "without-limiting-the-generality-of-the-foregoing", "type": "clause", "offset": [1142, 1190]}, {"key": "references-in", "type": "clause", "offset": [1374, 1387]}, {"key": "termination-of-executive", "type": "clause", "offset": [1407, 1431]}, {"key": "separation-from-service", "type": "definition", "offset": [1479, 1502]}, {"key": "meaning-of", "type": "clause", "offset": [1516, 1526]}, {"key": "in-addition", "type": "clause", "offset": [1565, 1576]}, {"key": "specified-employee", "type": "clause", "offset": [1597, 1615]}, {"key": "additional-tax", "type": "definition", "offset": [1762, 1776]}, {"key": "following-executive", "type": "definition", "offset": [1910, 1929]}, {"key": "in-the-event-of", "type": "definition", "offset": [2128, 2143]}, {"key": "lump-sum", "type": "definition", "offset": [2188, 2196]}, {"key": "business-day", "type": "clause", "offset": [2210, 2222]}, {"key": "following-the", "type": "definition", "offset": [2223, 2236]}, {"key": "six-months", "type": "definition", "offset": [2269, 2279]}, {"key": "payments-shall-be", "type": "clause", "offset": [2411, 2428]}, {"key": "a-separate", "type": "definition", "offset": [2440, 2450]}, {"key": "for-purposes-of-section", "type": "clause", "offset": [2461, 2484]}], "hash": "410132c83a5bd723eedeb27d3016d598", "id": 1}, {"size": 4, "samples": [{"hash": "jBjS4Z8pOhZ", "uri": "/contracts/jBjS4Z8pOhZ#section-409", "label": "Executive Employment Agreement (Allied Waste Industries Inc)", "score": 21.0, "published": true}, {"hash": "ejHNI33pvvR", "uri": "/contracts/ejHNI33pvvR#section-409", "label": "Executive Employment Agreement (Allied Waste Industries Inc)", "score": 21.0, "published": true}, {"hash": "8myMrYYdJ6z", "uri": "/contracts/8myMrYYdJ6z#section-409", "label": "Executive Employment Agreement (Allied Waste Industries Inc)", "score": 21.0, "published": true}], "snippet": "It is intended that the Agreement comply with Section 409A, and the Agreement shall be interpreted, administered and operated accordingly. Nothing herein shall be construed as an entitlement to or guarantee of any particular tax treatment to the Executive. The Executive and the Company agree that this Agreement may be amended, by mutual agreement, without any further consideration to the Executive, to the extent needed to avoid penalties under Section 409A.", "snippet_links": [{"key": "the-agreement", "type": "clause", "offset": [20, 33]}, {"key": "comply-with", "type": "clause", "offset": [34, 45]}, {"key": "section-409a", "type": "clause", "offset": [46, 58]}, {"key": "entitlement-to", "type": "clause", "offset": [179, 193]}, {"key": "tax-treatment", "type": "definition", "offset": [225, 238]}, {"key": "to-the-executive", "type": "clause", "offset": [239, 255]}, {"key": "executive-and-the-company", "type": "clause", "offset": [261, 286]}, {"key": "agreement-may-be-amended", "type": "clause", "offset": [303, 327]}, {"key": "by-mutual-agreement", "type": "clause", "offset": [329, 348]}, {"key": "further-consideration", "type": "definition", "offset": [362, 383]}, {"key": "to-the-extent", "type": "clause", "offset": [402, 415]}], "hash": "18d14be5ab474b4cdadd609f8e2d8be8", "id": 3}, {"size": 4, "samples": [{"hash": "gGl4lWEjiRk", "uri": "/contracts/gGl4lWEjiRk#section-409", "label": "Indenture (Brandywine Operating Partnership Lp /Pa)", "score": 18.0, "published": true}, {"hash": "27f72hIs1lj", "uri": "/contracts/27f72hIs1lj#section-409", "label": "Indenture (Brandywine Realty Trust)", "score": 18.0, "published": true}], "snippet": "Repayment to the Issuer; Unclaimed Money...................................................28", "snippet_links": [{"key": "repayment-to-the-issuer", "type": "clause", "offset": [0, 23]}, {"key": "unclaimed-money", "type": "clause", "offset": [25, 40]}], "hash": "c2ff801b5fd24d265911ab13f1278bab", "id": 4}, {"size": 3, "samples": [{"hash": "S9poXTJMY5", "uri": "/contracts/S9poXTJMY5#section-409", "label": "Indenture (Manor Care Inc/New)", "score": 18.0, "published": true}], "snippet": "Computation of Interest....................................... 36", "snippet_links": [{"key": "computation-of-interest", "type": "clause", "offset": [0, 23]}], "hash": "305fcdbad0cb92a1161c8efeb8e7d547", "id": 9}, {"size": 6, "samples": [{"hash": "9FgSspRfY3Y", "uri": "/contracts/9FgSspRfY3Y#section-409", "label": "Indenture (Pepsi Bottling Group Inc)", "score": 18.0, "published": true}], "snippet": "RESTORATION OF RIGHTS AND REMEDIES....................................................35", "snippet_links": [{"key": "restoration-of-rights-and-remedies", "type": "clause", "offset": [0, 34]}], "hash": "0192d4f5fd07fb06b8d6293cab5914b4", "id": 2}, {"size": 4, "samples": [{"hash": "8YUMia4BEpI", "uri": "/contracts/8YUMia4BEpI#section-409", "label": "Indenture (Key Energy Services Inc)", "score": 18.0, "published": true}], "snippet": "Repayment to Company ..........................................32", "snippet_links": [{"key": "repayment-to-company", "type": "clause", "offset": [0, 20]}], "hash": "dbcb8d6daee9fa3ada1250d410d54113", "id": 5}, {"size": 3, "samples": [{"hash": "jeZWueMPS44", "uri": "/contracts/jeZWueMPS44#section-409", "label": "Employment Agreement (Aes Corp)", "score": 21.0, "published": true}, {"hash": "gXR0HzKYEOZ", "uri": "/contracts/gXR0HzKYEOZ#section-409", "label": "Employment Agreement (Aes Corp)", "score": 21.0, "published": true}, {"hash": "fy1w1cTC7an", "uri": "/contracts/fy1w1cTC7an#section-409", "label": "Employment Agreement (Aes Corp)", "score": 21.0, "published": true}], "snippet": "Each payment under this Agreement is intended to be excepted from Section 409A, including, but not limited to, by compliance with the short-term deferral exception as specified in Treas. Reg. \u00a7 1.409A-1(b)(4), and the provisions of this Agreement will be administered, interpreted and construed accordingly (or disregarded to the extent such provision cannot be so administered, interpreted, or construed).\n(i) Notwithstanding any provision of this Agreement to the contrary, to the extent that a payment hereunder is subject to Section 409A (and not excepted therefrom) and payable on account of a Separation from Service, such payment shall be delayed for a period of six months after the Termination Date (or, if earlier, the death of the Executive) if the Executive is a Specified Employee. Any payment that would otherwise have been due or owing during such six-month period will be paid immediately following the end of the six-month period in the month following the month containing the 6-month anniversary of the Date of Termination. With respect to payments subject to Section 409A of the Code, the Company reserves the right to accelerate and/or defer any payment to the extent permitted and consistent with Section 409A of the Code, the regulations and other binding guidance promulgated thereunder.", "snippet_links": [{"key": "not-limited", "type": "clause", "offset": [95, 106]}, {"key": "compliance-with-the", "type": "clause", "offset": [114, 133]}, {"key": "deferral-exception", "type": "definition", "offset": [145, 163]}, {"key": "as-specified", "type": "clause", "offset": [164, 176]}, {"key": "provisions-of-this-agreement", "type": "clause", "offset": [218, 246]}, {"key": "to-the-extent", "type": "clause", "offset": [323, 336]}, {"key": "agreement-to", "type": "definition", "offset": [449, 461]}, {"key": "separation-from-service", "type": "definition", "offset": [599, 622]}, {"key": "period-of", "type": "definition", "offset": [660, 669]}, {"key": "six-months", "type": "definition", "offset": [670, 680]}, {"key": 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Indenture (Hd Supply, Inc.)", "score": 22.2881587953, "published": true}, {"hash": "HJ4AnoLpcT", "uri": "/contracts/HJ4AnoLpcT#section-409", "label": "First Supplemental Indenture (LBM Holdings, LLC)", "score": 21.9048596851, "published": true}], "snippet": "Section 409(c) of the Indenture shall apply without modification to 2020 Notes.", "snippet_links": [{"key": "the-indenture", "type": "clause", "offset": [18, 31]}, {"key": "modification-to", "type": "clause", "offset": [52, 67]}], "hash": "afbc1828643136d261e371adb2c6699b", "id": 7}, {"size": 3, "samples": [{"hash": "dzLSZoh39r4", "uri": "/contracts/dzLSZoh39r4#section-409", "label": "Senior Secured Note Indenture (SLM International Inc /De)", "score": 18.0, "published": true}], "snippet": "Guaranty and Security Agreements......................... 32", "snippet_links": [{"key": "security-agreements", "type": "definition", "offset": [13, 32]}], "hash": "de435bfcf1b3924a1c83fafc4237a38f", "id": 8}, {"size": 3, "samples": [{"hash": "azKSXEbMCqS", "uri": "/contracts/azKSXEbMCqS#section-409", "label": "Indenture (For Senior Notes) (Carolina Power & Light Co)", "score": 18.0, "published": true}], "snippet": "Exchange and Surrender of Senior Note First Mortgage Bonds.............30 ARTICLE V REDEMPTION OF NOTES", "snippet_links": [{"key": "exchange-and-surrender-of-senior-note-first-mortgage-bonds", "type": "clause", "offset": [0, 58]}, {"key": "article-v", "type": "definition", "offset": [74, 83]}, {"key": "redemption-of-notes", "type": "clause", "offset": [84, 103]}], "hash": "baa62573dd5d5e9868c6b9e1d2be059f", "id": 10}], "next_curs": "ClQSTmoVc35sYXdpbnNpZGVyY29udHJhY3RzcjALEhZDbGF1c2VTbmlwcGV0R3JvdXBfdjU2IhRzZWN0aW9uLTQwOSMwMDAwMDAwYQyiAQJlbhgAIAA=", "clause": {"size": 72, "children": [["release-of-the-company", "Release of the Company"], ["release-of-claims-under-age-discrimination-in-employment-act", "Release of Claims Under Age Discrimination in Employment Act"]], "parents": [["miscellaneous", "Miscellaneous"], ["compensation-upon-certain-separation-from-service-events", "Compensation Upon Certain Separation From Service Events"], ["covenants", "Covenants"], ["limitation-on-indebtedness", "Limitation on Indebtedness"], ["representations-and-warranties-of-the-company-and-\u2587\u2587\u2587\u2587\u2587", "REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND \u2587\u2587\u2587\u2587\u2587"]], "title": "Section 409", "id": "section-409", "related": [["limitation-on-incurrence-of-indebtedness", "Limitation on Incurrence of Indebtedness", "Limitation on Incurrence of Indebtedness"], ["limitation-on-incurrence-of-additional-indebtedness", "Limitation on Incurrence of Additional Indebtedness", "Limitation on Incurrence of Additional Indebtedness"], ["limitation-on-guarantees-of-indebtedness-by-restricted-subsidiaries", "Limitation on Guarantees of Indebtedness by Restricted Subsidiaries", "Limitation on Guarantees of Indebtedness by Restricted Subsidiaries"], ["limitation-on-incurrence-of-indebtedness-and-issuance-of-preferred-stock", "Limitation on Incurrence of Indebtedness and Issuance of Preferred Stock", "Limitation on Incurrence of Indebtedness and Issuance of Preferred Stock"], ["limitation-on-incurrence-of-indebtedness-and-issuance-of-disqualified-stock-and-preferred-stock", "Limitation on Incurrence of Indebtedness and Issuance of Disqualified Stock and Preferred Stock", "Limitation on Incurrence of Indebtedness and Issuance of Disqualified Stock and Preferred Stock"]], "related_snippets": [], "updated": "2025-07-07T12:37:39+00:00", "also_ask": ["What are the essential elements that must be included in a Section 409 clause to ensure enforceability?", "How can Section 409 be strategically negotiated to benefit my client\u2019s position?", "What are the most common risks or pitfalls associated with Section 409 provisions?", "How does Section 409 compare to similar provisions in other jurisdictions or under federal law?", "What factors do courts typically consider when determining the validity of a Section 409 clause?"], "drafting_tip": "Specify the obligations under Section 409 to prevent misinterpretation; reference applicable laws to ensure compliance; clarify enforcement mechanisms to facilitate practical application.", "explanation": "Section 409 typically refers to a provision in the U.S. Internal Revenue Code that governs the tax treatment of nonqualified deferred compensation plans. This clause sets out strict requirements for how and when compensation can be deferred, including rules about the timing of deferral elections and distributions, as well as penalties for noncompliance. For example, it applies to arrangements where employees or service providers agree to receive compensation in a future year, such as certain bonus or retirement plans. The core function of Section 409 is to prevent tax avoidance by ensuring that deferred compensation is reported and taxed appropriately, thereby promoting transparency and compliance in compensation arrangements."}, "json": true, "cursor": ""}}