Common use of Distributions in the Event of Taxability Clause in Contracts

Distributions in the Event of Taxability. In the event of any final determination by the Internal Revenue Service or a court of competent jurisdiction, which determination is not appealable or the time for appeal or protest of which has expired, or the receipt by the Trustee of a substantially unqualified opinion of tax counsel selected by the Trustee, which determination determines, or which opinion opines, that the Executive is subject to Federal income taxation on amounts held in the Trust prior to the distribution to the Executive of such amounts and no curative action is available under Section 4.4, the Trustee shall, on receipt by the Trustee of such opinion or notice of such determination, pay to the Executive the portion of the Trust assets includable in the Executive's Federal gross income; provided that, as a condition of receiving such payment, the Executive has delivered to the Trustee a written agreement stating that the payment being made is in satisfaction of the obligations of the Company due to him in respect of which the payment is made, after taking into consideration that such payment is being made prior to the required distribution date, and the Company has concurred in such agreement, which concurrence shall not be unreasonably withheld.

Distributions in the Event of Taxability. In the event of any final determination by the Internal Revenue Service or a court of competent jurisdiction, which determination is not appealable or the time for appeal or protest of which has expired, or the receipt by the Trustee of a substantially unqualified opinion of tax counsel selected by the Trustee, which determination determines, or which opinion opines, that the Executive is subject to Federal income taxation on amounts held in the Trust prior to the distribution to the Executive of such amounts and no curative action is available under Section 4.4, the Trustee shall, on receipt by the Trustee of such opinion or notice of such determination, pay to the Executive the portion of the Trust assets includable in the Executive's Federal gross income; provided that, as a condition of receiving such payment, the Executive has delivered to the Trustee a written agreement stating that the payment being made is in satisfaction of the obligations of the Company and the Subsidiary due to him in respect of which the payment is made, after taking into consideration that such payment is being made prior to the required distribution date, and the Company has and the Subsidiary have concurred in such agreement, which concurrence shall not be unreasonably withheld.