Common use of Application of Limit Clause in Contracts

Application of Limit. In the event that any amount or benefit paid or distributed to the Executive pursuant to this Agreement, taken together with any amounts or benefits otherwise paid or distributed to the Executive by the Company (collectively, the “Covered Payments”), would be an “excess parachute payment” as defined in Section 280G of the Code, and would thereby subject the Executive to the Excise Tax of Section 4999 of the Code (or any similar tax that may hereafter be imposed), the provisions of this Section 5 of this Agreement shall apply to determine the amounts payable to Executive pursuant to this Agreement.