Common use of 409A Compliance Strategy Clause in Contracts

409A Compliance Strategy. The Company intends that the Basic Severance Benefit provided pursuant to Section 2 will comply with the short-term deferral exception to the requirements of Section 409A of the Code, as described in Treas. Reg. § 1.409A-1(b)(4). The Company also intends that the Change in Control Severance Payment provided by Section 3(b), the financial planning stipend provided by Section 3(f), and the retirement and savings plan forfeiture payment provided by Section 3(h) (collectively the “Cash Change in Control Payments”) will comply with the short-term deferral exception. In order to meet the requirements of the short-term deferral exception, despite any other provision of this Agreement to the contrary, the Basic Severance Benefit and all Cash Change in Control Payments due pursuant to this Agreement shall be paid at the times stated in Section 2 or Section 3 and in no event later than March 15 of the year following the year in which your Separation from Service occurs. Payments may be delayed only in accordance with regulations issued pursuant to Section 409A. The Company intends that the Welfare Benefits provided by Section 3(d), the Outplacement Services provided by Section 3(e) and the right to continued participation in the Mayo Executive Physical Program provided by Section 3(g) will comply with the exception to Section 409A for reimbursements and certain other separation payments, as described in Treas. Reg. § 1.409A-1(b)(9)(v)(B). The Company has concluded that the gross-up payment provided under Section 10(f) and the reimbursement payments the Company has agreed to make pursuant to Section 20 may be subject to the requirements of Section 409A. To ensure that the payments under Section 10(f) and Section 20 comply with Section 409A, the payments are payable at a specified time or pursuant to a fixed schedule within the meaning of Treas. Reg. § 1.409A-3(i)(1)(iv).

409A Compliance Strategy. The Company intends that the Basic Severance Benefit provided pursuant to Section 2 will comply with the short-term deferral exception to the requirements of Section 409A of the Code, as described in Treas. Reg. § 1.409A-1(b)(4). The Company also intends that the Change in Control Severance Payment provided by Section 3(b), the financial planning stipend provided by Section 3(f), and the retirement and savings plan forfeiture payment provided by Section 3(h) ), (collectively the “Cash Change in Control Payments”) will comply with the short-term deferral exception. In order to meet the requirements of the short-term deferral exception, despite any other provision of this Agreement to the contrary, the Basic Severance Benefit and all Cash Change in Control Payments due pursuant to this Agreement shall be paid at the times stated in Section 2 or Section 3 and in no event later than March 15 of the year following the year in which your Separation from Service occurs. Payments may be delayed only in accordance with regulations issued pursuant to Section 409A. The Company intends that the Welfare Benefits provided by Section 3(d), the Outplacement Services provided by Section 3(e) and the right to continued participation in the Mayo Executive Physical Program provided by Section 3(g) will comply with the exception to Section 409A for reimbursements and certain other separation payments, as described in Treas. Reg. § 1.409A-1(b)(9)(v)(B). The Company has concluded that the gross-up payment provided under Section 10(f) and the reimbursement payments the Company has agreed to make pursuant to Section 20 may be subject to the requirements of Section 409A. To ensure that the payments under Section 10(f) and Section 20 comply with Section 409A, the payments are payable at a specified time or pursuant to a fixed schedule within the meaning of Treas. Reg. § 1.409A-3(i)(1)(iv).

409A Compliance Strategy. The Company intends that the Basic Severance Benefit provided pursuant to Section 2 will comply with the short-term deferral exception to the requirements of Section 409A of the Code, as described in Treas. Reg. § 1.409A-1(b)(4). The Company also intends that the Change in Control Severance Payment provided by Section 3(b), the financial planning stipend provided by Section 3(f), ) and the retirement and savings plan forfeiture payment provided by Section 3(h3(e) (collectively the “Cash Change in Control Payments”) will comply with the short-term deferral exception. In order to meet the requirements of the short-term deferral exception, despite any other provision of this Agreement to the contrary, the Basic Severance Benefit and all Cash Change in Control Payments due pursuant to this Agreement shall be paid at the times stated in Section 2 or Section 3 3, and in no event later than March 15 of the year following the year in which your Separation from Service occurs. Payments may be delayed only in accordance with regulations issued pursuant to Section 409A. The Company intends that the Welfare Benefits provided by Section 3(d), the Outplacement Services provided by Section 3(e) and the right to continued participation in the Mayo Executive Physical Program provided by Section 3(g) will comply with the exception to Section 409A for reimbursements and certain other separation payments, as described in Treas. Reg. § 1.409A-1(b)(9)(v)(B). The Company has concluded that the gross-up payment provided under Section 10(f) and the reimbursement payments the Company has agreed to make pursuant to Section 20 may be subject to the requirements of Section 409A. To ensure that the payments under Section 10(f) and Section 20 comply with Section 409A, the payments are payable at a specified time or pursuant to a fixed schedule within the meaning of Treas. Reg. § 1.409A-3(i)(1)(iv).