Common use of Internal Revenue Code Section 280G Clause in Contracts

Internal Revenue Code Section 280G. Notwithstanding anything to the contrary in this Agreement, if any payment of compensation to or for the benefit of the Executive, whether or not made under the terms of this Agreement, either alone or together with other payments and benefits which the Executive has received or has a right to receive, would be subject to the excise tax imposed by Section 4999 of the Internal Revenue Code of 1986 (the “Code”), such payments and/or benefits shall be reduced by the amount, if any, which is the minimum necessary to result in no portion of such payments or benefits being subject to the excise tax imposed under Section 4999 of the Code. The amount of any required reduction shall be determined and applied in a manner calculated to maximize the after-tax value of the remaining payments and benefits. All calculations required to be made in order to determine whether payments would be subject to the excise tax imposed under Section 4999 of the Code, including the assumptions to be utilized in arriving at such determination, the and amount and application of any required reduction shall be made by independent counsel retained by the Association for this purpose prior to the event or the closing of the transaction which results in the application of Section 4999 of the Code or such other independent counsel or independent firm of certified public accountants as the Association may designate with the consent of the Executive (which consent may be given or withheld in the Executive’s sole and absolute discretion) (the “Tax Advisor”), which shall provide detailed supporting calculations both to the Association and the Executive within fifteen (15) business days of the receipt of demand from the Executive, or such earlier time as is requested by the Association. All fees and expenses of the Tax Advisor shall be borne solely by the Association. Any determination by the Tax Advisor shall be binding upon the Association and the Executive and all other interested parties in the absence of manifest error.

Internal Revenue Code Section 280G. Notwithstanding anything to the contrary in this Agreement, if any payment of compensation to or for the benefit of the Executive, whether or not made under the terms of this Agreement, either alone or together with other payments and benefits which the Executive has received or has a right to receive, would be subject to the excise tax imposed by Section 4999 of the Internal Revenue Code of 1986 (the “Code”), such payments and/or benefits shall be reduced by the amount, if any, which is the minimum necessary to result in no portion of such payments or benefits being subject to the excise tax imposed under Section 4999 of the Code. The amount of any required reduction shall be determined and applied in a manner calculated to maximize the after-tax value of the remaining payments and benefits. All calculations required to be made in order to determine whether payments would be subject to the excise tax imposed under Section 4999 of the Code, including the assumptions to be utilized in arriving at such determination, the and amount and application of any required reduction shall be made by independent counsel retained by the Association Company for this purpose prior to the event or the closing of the transaction which results in the application of Section 4999 of the Code or such other independent counsel or independent firm of certified public accountants as the Association Company may designate with the consent of the Executive (which consent may be given or withheld in the Executive’s sole and absolute discretion) (the “Tax Advisor”), which shall provide detailed supporting calculations both to the Association Company and the Executive within fifteen (15) business days of the receipt of demand from the Executive, or such earlier time as is requested by the AssociationCompany. All fees and expenses of the Tax Advisor shall be borne solely by the AssociationCompany. Any determination by the Tax Advisor shall be binding upon the Association Company and the Executive and all other interested parties in the absence of manifest error.