Common use of Distributions Upon Income Inclusion Under Section 409A of the Code Clause in Contracts

Distributions Upon Income Inclusion Under Section 409A of the Code. Upon the inclusion of any amount into the Director’s income as a result of the failure of the Agreement to comply with the requirements of Section 409A of the Code, to the extent such tax liability can be covered by the Director’s accrual balance, a distribution shall be made as soon as is administratively practicable following the discovery of the plan failure, provided, however, that the amount of the distribution shall not exceed the amount required to be included in income as a result of the failure to comply with the requirements of Section 409A of the Code and the regulations issued thereunder.

Distributions Upon Income Inclusion Under Section 409A of the Code. Upon the inclusion of any amount into the DirectorExecutive’s income as a result of the failure of the this Agreement to comply with the requirements of Section 409A of the Code, to the extent such tax liability can be covered by the DirectorExecutive’s accrual balance, a distribution shall be made as soon as is administratively practicable following the discovery of the plan failure, provided, however, that the amount of the distribution shall not exceed the amount required to be included in income as a result of the failure to comply with the requirements of Section 409A of the Code and the regulations issued thereunder.