Common use of Limitations Under Code Section 409A Clause in Contracts

Limitations Under Code Section 409A. In the event that it is reasonably determined by the Company that, as a result of Section 409A of the Code (and any related regulations or other pronouncements thereunder), any of the payments that Executive is entitled to under the terms of this Agreement, the SERP, or any other plan involving deferred compensation (as defined under Code Section 409A) may not be made at the time contemplated by the terms thereof without causing the Executive to be subject to an income tax penalty and interest, the Company will make such payment on the first day permissible under Code Section 409A without the Executive incurring a penalty. In particular, with respect to the lump sum SERP payments provided for hereunder (as described above), in the event of any delay in the payment date as a result of Code Section 409A(a)(2)(A)(i) and (B)(i), the Company will adjust the payments to reflect the deferred payment date using the interest rate prescribed under the SERP. In addition, other provisions of this Agreement, the SERP, or any other such plan notwithstanding, the Company shall have no right to accelerate any such payment or to make any such payment as the result of an event except to the extent permitted under Section 409A.

Limitations Under Code Section 409A. In the event that it is reasonably determined by the Company that, as a result of Section 409A of the Code (and any related regulations or other pronouncements thereunder), any of the payments or benefits that Executive is entitled to under the terms of this Agreement, the SERP, or any other plan involving deferred compensation (as defined under Code Section 409A) may not be made at the time contemplated by the terms thereof without causing the Executive to be subject to an income tax penalty and interestinterest and the timing of payment is the sole cause of such adverse tax consequences, the Company will make such payment on the first day permissible under Code Section 409A without the Executive incurring a tax penalty. In particular, with respect to the lump sum SERP payments and severance payments provided for hereunder (as described above)hereunder, in the event of any delay in the payment date as a result of Code Section 409A(a)(2)(A)(i) and (B)(i), the Company will adjust the payments to reflect the deferred payment date using the interest rate prescribed under the SERP. In addition, other provisions of this Agreement, the SERP, or any other such plan notwithstanding, the Company shall have no right to accelerate any such payment or to make any such payment as the result of an event except to the extent permitted under Section 409A.