Common use of Potential six-month delay under Section 409A Clause in Contracts

Potential six-month delay under Section 409A. If, when Termination of Employment occurs, the Executive is a specified employee within the meaning of Section 409A of the Code, and if the non-competition payment under this Section 5 would be considered deferred compensation under Section 409A of the Code, and finally if an exemption from the six-month delay requirement of Section 409A(a)(2)(B)(i) of the Code is not available, the Executive’s non-competition payments for the first six months following Termination of Employment shall be paid to the Executive in a single lump sum on the first day of the seventh month after the month in which the Executive’s Termination of Employment occurs.

Potential six-month delay under Section 409A. If, when Termination of Employment occurs, the Executive is a specified employee within the meaning of Section 409A of the Code, Specified Employee and if the non-competition payment noncompetition payments under this Section 5 would be considered deferred compensation under Section 409A of the Code409A, and finally if an exemption from the six-six- (6-) month delay requirement of Section 409A(a)(2)(B)(i) of the Code is not available, the Executive’s non-competition noncompetition payments for the first six (6) months following the Executive’s Termination of Employment shall be paid to the Executive in a single lump sum on the first day of the seventh month after the month in which the Executive’s Termination of Employment occurs. The remaining payments shall be paid in accordance with the original payment schedule.