Compliance with Tax Rules for Nonqualified Deferred Compensation Plans. (a) Notwithstanding any provision of this Agreement to the contrary, and to the extent required by Code Section 409A, payments to the Executive under this Agreement shall be delayed for six (6) months following the Executive’s separation from service. To the extent permitted under Code Section 409A, if the Executive shall be entitled to a payment pursuant to this Agreement prior to the date at which a payment is permitted under Code Section 409A to be made to the Executive solely because of the Code Section 409A six (6) month delay in payment rule for key employees, the Executive shall be entitled to payment by the Company of the applicable employee portion of the applicable withholding taxes due on such payment, if any. Such a payment by the Company of withholding taxes shall reduce the amount otherwise payable to the Executive under this Agreement. (b) To the extent that Code Section 409A applies to all or any part of the payments to which the Executive or his survivors may be entitled to under this Agreement, the Company shall discharge its obligations under this Agreement in compliance with all applicable requirements of Code Section 409A. If the Executive incurs any taxes, penalties or interest as a result of the Company’s failure to discharge its obligations under this Agreement in compliance with the requirements of Code Section 409A, the Company shall pay to the Executive an amount equal to the sum of (x) plus (y) where:
Appears in 6 contracts
Samples: Executive Employment Continuity Agreement (Roanoke Electric Steel Corp), Executive Employment Continuity Agreement (Roanoke Electric Steel Corp), Executive Employment Continuity Agreement (Roanoke Electric Steel Corp)
