Short-Term Deferral Exception Clause Samples
The Short-Term Deferral Exception is a provision that allows certain payments to be delayed for a brief, specified period without triggering adverse tax consequences or violating contractual terms. Typically, this exception applies to compensation or benefits that are paid within a short window—often within 2.5 months after the end of the relevant tax year—following the year in which the right to payment arises. Its core practical function is to provide flexibility for employers and employees in the timing of payments, ensuring that minor administrative delays do not result in penalties or unintended tax liabilities.
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Short-Term Deferral Exception. The parties intend that this Award Agreement and each payment upon the vesting of any Phantom Stock Units will meet all requirements of the short-term deferral exception to Code Section 409A. To the fullest extent possible, therefore, the Plan shall be construed and administered so that each payment under the Plan is made in a time, form and manner that results in the payment being excepted from Section 409A. The short-term deferral exception shall be applied separately to each payment required under this Award Agreement.
Short-Term Deferral Exception. Articles I and II and this Agreement will be administered and interpreted to maximize the short-term deferral exception to Section 409A of the Internal Revenue Code, and Executive is not permitted to designate, directly or indirectly, the taxable year of any payment made under this Agreement. The right to a series of installment payments under this Agreement will be treated as a right to a series of separate payments. Any installment payment under this Agreement that is paid during the short-term deferral period (as defined in Treas. Reg. Sec. 1.409A-1(b)(4)) will be treated as a short-term deferral and not aggregated with other plans or payments. Payment dates provided for in this Agreement are deemed to incorporate the grace periods provided by Treas. Reg. Sec. 1.409A-3(d).
Short-Term Deferral Exception. The parties intend that this Award Agreement and each payment upon the lapse of restrictions of any RSUs will meet all requirements of the short-term deferral exception to Code Section 409A. To the fullest extent possible, therefore, the Plan shall be construed and administered so that each payment under the Plan is made in a time, form and manner that results in the payment being excepted from Section 409A. The short-term deferral exception shall be applied separately to each payment required under this Award Agreement.
Short-Term Deferral Exception. Notwithstanding any contrary provision herein, Employee’s right to any payment under this Agreement shall be treated as the right to a series of separate payments, as defined under Treas. Reg. Section 1.409A-2(b)(2). Employee shall have no right to designate the date of any payment hereunder. For purposes of this Agreement, each payment is intended to be excepted from Section 409A to the maximum extent provided thereunder as follows: (i) each payment is scheduled to be made on or before a date no later than the 15th day of the third month following the later of (a) the end of Employee’s first taxable year in which Employee’s right to payment is no longer subject to a substantial risk of forfeiture, or (b) the end of the Company’s first taxable year in which Employee’s right to payment is no longer subject to a substantial risk of forfeiture, (ii) each payment that is not otherwise excepted under the short-term deferral exception is intended to be excepted under the involuntary pay exception as specified in Treas. Reg. Section 1 .409A-1 (b)(9)(iii) and (iii) payments provided pursuant to Sections 3.5.6 and 3.5.7 are intended to be excepted under the exceptions for reasonable outplacement expenses and reasonable moving expenses specified in Treas. Reg. Section 1.409A-1 (b)(9)(v). With respect to payments subject to Section 409A (and not excepted therefrom), it is intended that each payment is paid on a permissible distribution event and at a specified time consistent with Section 409A.
Short-Term Deferral Exception. Neither the Retention Bonus described in Section 1 nor the Severance described in 2 shall be deemed to provide a “deferral of compensation” for purposes of Code Section 409A pursuant to Treasury regulation §1.409A-1(b)(4) to the extent Executive actually or constructively receives such compensation or benefits under this Agreement on or before the fifteenth (15th) day of the third (3rd) month following the end of Executive’s first tax year in which his right to payment is no longer subject to a substantial risk of forfeiture.
Short-Term Deferral Exception. The parties intend that this Award Agreement and each payment upon the lapse of restrictions on the Earned Award will meet all requirements of the short-term deferral exception to Code Section 409A. To the fullest extent possible, therefore, the Plan shall be construed and administered so that each payment under the Plan is made in a time, form and manner that results in the payment being excepted from Section 409A. The short-term deferral exception shall be applied separately to each payment required under this Award Agreement.