Common use of 409A Provision Clause in Contracts

409A Provision. This Agreement shall be interpreted to avoid any penalty sanctions under section 409A of the Code. The benefits provided under this Agreement are intended to be subject to a “substantial risk of forfeiture” (within the meaning of such term under section 409A of the Code), and paid within the short term deferral exception under section 409A of the Code, following the lapse of the applicable forfeiture conditions. Executive shall be solely responsible for any tax imposed under section 409A of the Code and in no event shall the Company have any liability with respect to any tax, interest or other penalty imposed under section 409A of the Code. For purposes of section 409A of the Code, each payment made under this Agreement shall be treated as a separate payment and the right to a series of installment payments under this Agreement shall be treated as a right to a series of separate payments. In no event shall Executive, directly or indirectly, designate the calendar year of payment.