409A Valuation Clause Samples
A 409A Valuation clause establishes the process for determining the fair market value of a company's common stock, typically for the purpose of setting the exercise price of stock options in compliance with Section 409A of the Internal Revenue Code. This clause outlines how and when the valuation will be conducted, often requiring an independent third-party appraisal and specifying the frequency of such valuations, such as annually or upon significant corporate events. Its core function is to ensure that stock options are granted at a price that meets IRS requirements, thereby protecting both the company and its employees from potential tax penalties associated with non-compliance.
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409A Valuation. The Company shall obtain a third party valuation of its Common Stock for the purposes of Section 409A of the Internal Revenue Code as required and in any event no less than once per annum.
409A Valuation. As of the date of this Agreement, the most recent appraisal of Acquiror Common Stock completed to determine the fair market value of Acquiror Common Stock in accordance with the valuation standards set forth in Section 409A of the Code was performed by Duff & ▇▇▇▇▇▇ Corporation (such appraisal, the “Acquiror Appraisal”) which (i) determined the fair market value of Acquiror Common Stock as of August 5, 2013 (the “Acquiror Appraisal Date”) to be $20.62 per share and (ii) is evidenced by a written report dated as of August 8, 2013. As of the date of this Agreement, there have been no other appraisals of Acquiror Common Stock since the Acquiror Appraisal Date by an independent appraiser for the purpose of determining the fair market value of Acquiror Common Stock in connection with equity-based compensation.
409A Valuation. Within thirty (30) days of completion, a copy of each 409A valuation report of Borrower; and
409A Valuation. Seller shall have performed, at their own expense, a 409A Valuation as set forth in Exhibit C.
409A Valuation. At least annually, and no later than twenty (20) Business Days of completion, a copy of ▇▇▇▇▇▇▇▇’s 409A valuation report;
409A Valuation. Not less frequently than annually, within thirty (30) days after approval by the Board, 409A Valuation reports conducted with respect to Borrower’s common stock;