Key Executive Employment Protection AgreementEmployment Protection Agreement • February 25th, 2009 • Landstar System Inc • Trucking (no local)
We refer to the Key Employment Protection Agreement (the “KEEPA”), dated [Date], between you and Landstar System, Inc. As you may know, §409A of the Internal Revenue Code of 1986, as amended, imposes new rules on non-qualified deferred compensation arrangements, such as the severance benefits that may be provided to you under the KEEPA. All such arrangements must be brought into “written compliance” with the requirements of §409A on or before December 31, 2008. If the KEEPA is not in “written compliance” with §409A by December 31, 2008, you may be subjected to adverse tax consequences, including, an additional Federal income tax of 20% on such deferred compensation. Accordingly, solely to satisfy the requirements under Section 409A as described above, we are proposing to amend the KEEPA as follows:
