Effect of Code Section 409A. Notwithstanding anything in this Agreement to the contrary, if the Bank or the Company in good faith determine, as of the effective date of Executive’s termination of employment, that an amount (or portion of an amount) payable to Executive hereunder is required to be suspended or delayed for six months in order to satisfy the requirements of Section 409A of the Code, then the Bank and the Company will so advise Executive, and any such payment (or the minimum amount thereof) shall be suspended and accrued for six months, whereupon such amount (or portion thereof) shall be paid to Executive in a lump sum (together with interest thereon at the then-prevailing prime rate) on the first day of the seventh month following the effective date of Executive’s termination of employment. Executive agrees that the Bank shall not be in breach of this Agreement if it delays making a payment otherwise payable hereunder by reason of Section 409A.
Appears in 4 contracts
Samples: North Penn Bank And (North Penn Bancorp Inc), Employment Agreement (North Penn Bancorp Inc), Employment Agreement (North Penn Bancorp Inc)
