Common use of Effect of Code Section 409A Clause in Contracts

Effect of Code Section 409A. Notwithstanding anything in this Agreement to the contrary, if the Bank in good faith determines, as of the effective date of Executive’s termination of employment, that amounts payable to Executive hereunder, are required to be suspended or delayed for six months in order to satisfy the requirements of Section 409A of the Code, then the Bank will so advise Executive, and any such payments shall be suspended and accrued for six months, whereupon they shall be paid to Executive in a lump sum (together with interest thereon at the then-prevailing prime rate).

Appears in 1 contract

Sources: Employment Agreement (Profile Bancorp Inc)

Effect of Code Section 409A. Notwithstanding anything in this Agreement to the contrary, if the Bank Company in good faith determines, as of the effective date of Executive’s termination of employment, that amounts payable to Executive hereunder, are required to be suspended or delayed for six months in order to satisfy the requirements of Section 409A of the Code, then the Bank Company will so advise Executive, and any such payments shall be suspended and accrued for six months, whereupon they shall be paid to Executive in a lump sum (together with interest thereon at the then-prevailing prime rate).

Appears in 1 contract

Sources: Employment Agreement (Profile Bancorp Inc)