Notice of IRS Claim. Employee shall notify the Company in writing of any claims by the Internal Revenue Service that, if successful, would require the payment by the Company of the Gross-Up Payment. Such notification shall be given as soon as practicable but no later than 30 calendar days after Employee actually receives notice in writing of such claim and shall apprise the Company of the nature of such claim and the date on which such claim is requested to be paid; provided, however, that the failure of Employee to notify the Company of such claim (or to provide any required information with respect thereto) shall not affect any rights granted to Employee under this Section 6.2 except to the extent that the Company is materially prejudiced in the defense of such claim as a direct result of such failure. Employee shall not pay such claim prior to the expiration of the 30-day period following the date on which he gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company notifies Employee in writing prior to the expiration of such period that it desires to contest such claim, Employee shall do all of the following: I. give the Company any information reasonably requested by the Company relating to such claim; II. take such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney selected by the Company and reasonably acceptable to Employee; III. cooperate with the Company in good faith in order effectively to contest such claim; IV. if the Company elects not to assume and control the defense of such claim, permit the Company to participate in any proceedings relating to such claim; provided, however, that the Company shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with such contest and shall indemnify and hold Employee harmless, on an after- tax basis, for any Excise Tax or income tax (including interest and penalties with respect thereto) imposed as a result of such representation and payment of costs and expenses. Without limiting the foregoing provisions of this Section 6.2, the Company shall have the right, at its sole option, to assume the defense of and control all proceedings in connection with such contest, in which case it may pursue or forego any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim and may either direct Employee to pay the tax claimed and xxx for a refund or contest the claim in any permissible manner, and Employee agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine; provided, however, that if the Company directs Employee to pay such claim and xxx for a refund, the Company shall advance the amount of such payment to Employee, on an interest-free basis and shall indemnify and hold Employee harmless, on an after-tax basis, from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed with respect to such advance or with respect to any imputed income with respect to such advance; and further provided that any extension of the statute of limitations relating to payment of taxes for the taxable year of Employee with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the Company's right to assume the defense of and control the contest shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder and Employee shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority.
Appears in 6 contracts
Samples: Employment Agreement (PMT Services Inc /Tn/), Employment Agreement (PMT Services Inc /Tn/), Employment Agreement (PMT Services Inc /Tn/)
Notice of IRS Claim. Employee shall notify the Company in writing of any claims by the Internal Revenue Service that, if successful, would require the payment by the Company of the Gross-Up Payment. Such notification shall be given as soon as practicable but no later than 30 calendar days after Employee actually receives notice in writing of such claim and shall apprise the Company of the nature of such claim and the date on which such claim is requested to be paid; provided, however, that the failure of Employee to notify the Company of such claim (or to provide any required information with respect thereto) shall not affect any rights granted to Employee under this Section 6.2 2.2 except to the extent that the Company is materially prejudiced in the defense of such claim as a direct result of such failure. Employee shall not pay such claim prior to the expiration of the 30-day period following the date on which he gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company notifies Employee in writing prior to the expiration of such period that it desires to contest such claim, Employee shall do all of the following:
I. (1) give the Company any information reasonably requested by the Company relating to such claim;
II. (2) take such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney selected by the Company and reasonably acceptable to Employee;
III. (3) cooperate with the Company in good faith in order effectively to contest such claim;
IV. (4) if the Company elects not to assume and control the defense of such claim, permit the Company to participate in any proceedings relating to such claim; provided, however, that the Company shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with such contest and shall indemnify and hold Employee harmless, on an after- after-tax basis, for any Excise Tax or income tax (including interest and penalties with respect thereto) imposed as a result of such representation and payment of costs and expenses. Without limiting the foregoing provisions of this Section 6.22.2, the Company shall have the right, at its sole option, to assume the defense of and control all proceedings in connection with such contest, in which case it may pursue or forego any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim and may either direct Employee to pay the tax claimed and xxx for a refund or contest the claim in any permissible manner, and Employee agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine; provided, however, that if the Company directs Employee to pay such claim and xxx for a refund, the Company shall advance the amount of such payment to Employee, on an interest-free basis and shall indemnify and hold Employee harmless, on an after-tax basis, from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed with respect to such advance or with respect to any imputed income with respect to such advance; and further provided that any extension of the statute of limitations relating to payment of taxes for the taxable year of Employee with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the Company's right to assume the defense of and control the contest shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder and Employee shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority.
Appears in 5 contracts
Samples: Executive Severance Agreement (Province Healthcare Co), Executive Severance Agreement (Province Healthcare Co), Executive Severance Agreement (Province Healthcare Co)
Notice of IRS Claim. Employee shall notify the Company in writing of any claims by the Internal Revenue Service that, if successful, would require the payment by the Company of the Gross-Up Payment. Such notification shall be given as soon as practicable but no later than 30 calendar days after Employee actually receives notice in writing of such claim and shall apprise the Company of the nature of such claim and the date on which such claim is requested to be paid; provided, however, that the failure of Employee to notify the Company of such claim (or to provide any required information with respect thereto) shall not affect any rights granted to Employee under this Section 6.2 11.5 except to the extent that the Company is materially prejudiced in the defense of such claim as a direct result of such failure. Employee shall not pay such claim prior to the expiration of the 30-day period following the date on which he gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company notifies Employee in writing prior to the expiration of such period that it desires to contest such claim, Employee shall do all of the following:
I. (1) give the Company any information reasonably requested by the Company relating to such claim;
II. (2) take such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney selected by the Company and reasonably acceptable to Employee;
III. (3) cooperate with the Company in good faith in order effectively to contest such claim;
IV. (4) if the Company elects not to assume and control the defense of such claim, permit the Company to participate in any proceedings relating to such claim; provided, however, that the Company shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with such contest and shall indemnify and hold Employee harmless, on an after- after-tax basis, for any Excise Tax or income tax (including interest and penalties with respect thereto) imposed as a result of such representation and payment of costs and expenses. Without limiting the foregoing provisions of this Section 6.211.5, the Company shall have the right, at its sole option, to assume the defense of and control all proceedings in connection with such contest, in which case it may pursue or forego any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim and may either direct Employee to pay the tax claimed and sue xxx for a refund or contest the claim in any permissible manner, and Employee agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine; provided, however, that if the Company directs Employee to pay such claim and sue xxx for a refund, the Company shall advance the amount of such payment to Employee, on an interest-free basis and shall indemnify and hold Employee harmless, on an after-tax basis, from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed with respect to such advance or with respect to any imputed income with respect to such advance; and further provided that any extension of the statute of limitations relating to payment of taxes for the taxable year of Employee with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the Company's right to assume the defense of and control the contest shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder and Employee shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority.
Appears in 4 contracts
Samples: Employment Agreement (Service Experts Inc), Employment Agreement (Service Experts Inc), Employment Agreement (Service Experts Inc)
Notice of IRS Claim. Employee shall notify the Company in writing of any claims by the Internal Revenue Service that, if successful, would require the payment by of the Company of the Gross-Up Payment. Such notification shall be given as soon as practicable but no later than 30 calendar days after Employee actually receives notice in writing of such claim and shall apprise the Company of the nature of such claim and the date on which such claim is requested to be paid; provided, however, that the failure of Employee to notify the Company of such claim (or to provide any required information with respect thereto) shall not affect any rights granted to Employee under this Section 6.2 2.2 except to the extent that the Company is materially prejudiced in the defense of such claim as a direct result of such failure. Employee shall not pay such claim prior to the expiration of the 30-day period following the date on which he gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company notifies Employee in writing prior to the expiration of such period that it desires to contest such claim, Employee shall do all of the following:
I. (1) give the Company any information reasonably requested by the Company relating to such claim;
II. (2) take such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney selected by the Company and reasonably acceptable to Employee;
III. (3) cooperate with the Company in good faith in order effectively to contest such claim;
IV. (4) if the Company elects not to assume and control the defense of such claim, permit the Company to participate in any proceedings relating to such claim; provided, however, that the Company shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with such contest and shall indemnify and hold Employee harmless, on an after- tax basis, for any Excise Tax or income tax (including interest and penalties with respect thereto) imposed as a result of such representation and payment of costs and expenses. Without limiting the foregoing provisions of this Section 6.22.2, the Company shall have the right, at its sole option, to assume the defense of and control all proceedings in connection with such contest, in which case it may pursue or forego any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim and may either direct Employee to pay the tax claimed and xxx for a refund or contest the claim in any permissible manner, and Employee agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine; , provided, however, that if the Company directs Employee to pay such claim and xxx for a refund, the Company shall advance the amount of such payment to Employee, on an interest-free basis and shall indemnify and hold Employee harmless, on an after-tax basis, from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed with respect to such advance or with respect to any imputed income with respect to such advance; and further provided that any extension of the statute of limitations relating to payment of taxes for the taxable year of Employee with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the Company's right to assume the defense of and control the contest shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder and Employee shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority.
Appears in 4 contracts
Samples: Change in Control Agreement (Bancorpsouth Inc), Change in Control Agreement (Bancorpsouth Inc), Change in Control Agreement (Bancorpsouth Inc)
Notice of IRS Claim. Employee shall notify the Company in writing of any claims by the Internal Revenue Service that, if successful, would require the payment by the Company of the Gross-Up Payment. Such notification shall be given as soon as practicable but no later than 30 calendar days after Employee actually receives notice in writing of such claim and shall apprise the Company of the nature of such claim and the date on which such claim is requested to be paid; provided, however, that the failure of Employee to notify the Company of such claim (or to provide any required information with respect thereto) shall not affect any rights granted to Employee under this Section 6.2 2.2 except to the extent that the Company is materially prejudiced in the defense of such claim as a direct result of such failure. Employee shall not pay such claim prior to the expiration of the 30-day period following the date on which he gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company notifies Employee in writing prior to the expiration of such period that it desires to contest such claim, Employee shall do all of the following:
I. (1) give the Company any information reasonably requested by the Company relating to such claim;
II. (2) take such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney selected by the Company and reasonably acceptable to Employee;
III. (3) cooperate with the Company in good faith in order effectively to contest such claim;
IV. (4) if the Company elects not to assume and control the defense of such claim, permit the Company to participate in any proceedings relating to such claim; provided, however, that the Company shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with such contest and shall indemnify and hold Employee harmless, on an after- after-tax basis, for any Excise Tax or income tax (including interest and penalties with respect thereto) imposed as a result of such representation and payment of costs and expenses. Without limiting the foregoing provisions of this Section 6.22.2, the Company shall have the right, at its sole option, to assume the defense of and control all proceedings in connection with such contest, in which case it may pursue or forego any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim and may either direct Employee to pay the tax claimed and sue xxx for a refund or contest the claim in any permissible manner, and Employee agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine; provided, however, that if the Company directs Employee to pay such claim and sue xxx for a refund, the Company shall advance the amount of such payment to Employee, on an interest-free basis and shall indemnify and hold Employee harmless, on an after-tax basis, from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed with respect to such advance or with respect to any imputed income with respect to such advance; and further provided that any extension of the statute of limitations relating to payment of taxes for the taxable year of Employee with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the Company's right to assume the defense of and control the contest shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder and Employee shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority.,
Appears in 4 contracts
Samples: Executive Severance Agreement (Province Healthcare Co), Executive Severance Agreement (Province Healthcare Co), Executive Severance Agreement (Province Healthcare Co)
Notice of IRS Claim. Employee Officer shall notify the Company Corporation in writing of any claims by the Internal Revenue Service that, if successful, would require the payment by the Company Corporation of the Gross-Up Payment. Such notification shall be given as soon as practicable but no later than 30 calendar days after Employee Officer actually receives notice in writing of such claim and shall apprise the Company Corporation of the nature of such claim and the date on which such claim is requested to be paid; provided, however, that the failure of Employee Officer to notify the Company Corporation of such claim (or to provide any required information with respect thereto) shall not affect any rights granted to Employee Officer under this Section 6.2 4.4 except to the extent that the Company Corporation is materially prejudiced in the defense of such claim as a direct result of such failure. Employee Officer shall not pay such claim prior to the expiration of the 30-day period following the date on which he gives such notice to the Company Corporation (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company Corporation notifies Employee Officer in writing prior to the expiration of such period that it desires to contest such claim, Employee Officer shall do all of the following:
I. (i) give the Company Corporation any information reasonably requested by the Company Corporation relating to such claim;
II. (ii) take such action in connection with contesting such claim as the Company Corporation shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney selected by the Company Corporation and reasonably acceptable to EmployeeOfficer;
III. (iii) cooperate with the Company Corporation in good faith in order effectively to contest such claim;; and
IV. (iv) if the Company Corporation elects not to assume and control the defense of such claim, permit the Company Corporation to participate in any proceedings relating to such claim; provided, however, that the Company Corporation shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with such contest and shall indemnify and hold Employee Officer harmless, on an after- after-tax basis, for any Excise Tax or income tax (including interest and penalties with respect thereto) imposed as a result of such representation and payment of costs and expenses. Without limiting the foregoing provisions of this Section 6.24.4, the Company Corporation shall have the right, at its sole option, to assume the defense of and control all proceedings in connection with such contest, in which case it may pursue or forego any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim and may either direct Employee Officer to pay the tax claimed and xxx sue for a refund or contest the claim in any permissible manner, and Employee Xxficer agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company Corporation shall determine; provided, however, that if the Company Corporation directs Employee Officer to pay such claim and xxx sue for a refund, the Company Corporation shall advance the amount of such payment paymexx to EmployeeOfficer, on an interest-free basis and shall indemnify and hold Employee Officer harmless, on an after-tax basis, from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed with respect to such advance or with respect to any imputed income with respect to such advance; and further provided that any extension of the statute of limitations relating to payment of taxes for the taxable year of Employee Officer with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the CompanyCorporation's right to assume the defense of and control the contest shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder and Employee Officer shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority.
Appears in 4 contracts
Samples: Employment Agreement (Healthcare Realty Trust Inc), Employment Agreement (Healthcare Realty Trust Inc), Employment Agreement (Healthcare Realty Trust Inc)
Notice of IRS Claim. Employee Executive shall notify the Company in writing of any claims by the Internal Revenue Service that, if successful, would require the payment by the Company of the Gross-Up Payment. Such notification shall be given as soon as practicable but no later than 30 calendar days after Employee Executive actually receives notice in writing of such claim and shall apprise the Company of the nature of such claim and the date on which such claim is requested to be paid; provided, however, that the failure of Employee Executive to notify the Company of such claim (or to provide any required information with respect thereto) shall not affect any rights granted to Employee Executive under this Section 6.2 9(c) except to the extent that the Company is materially prejudiced in the defense of such claim as a direct result of such failure. Employee Executive shall not pay such claim prior to the expiration of the 30-day period following the date on which he gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company notifies Employee Executive in writing prior to the expiration of such period that it desires to contest such claim, Employee Executive shall do all of the following:
I. (1) give the Company any information reasonably requested by the Company relating to such claim;
II. (2) take such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney selected by the Company and reasonably acceptable to EmployeeExecutive;
III. (3) cooperate with the Company in good faith in order effectively to contest such claim;
IV. (4) if the Company elects not to assume and control the defense of such claim, permit the Company to participate in any proceedings relating to such claim; provided, however, that the Company shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with such contest and shall indemnify and hold Employee Executive harmless, on an after- after-tax basis, for any Excise Tax or income tax (including interest and penalties with respect thereto) imposed as a result of such representation and payment of costs and expenses. Without limiting the foregoing provisions of this Section 6.29(c), the Company shall have the right, at its sole option, to assume the defense of and control all proceedings in connection with such contest, in which case it may pursue or forego any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim and may either direct Employee Executive to pay the tax claimed and xxx sue for a refund or contest the claim in any permissible mannermanxxx, and Employee Executive agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine; provided, however, that if the Company directs Employee Executive to pay such claim and xxx sue for a refund, the Company shall advance the amount of such suxx payment to EmployeeExecutive, on an interest-free basis and shall indemnify and hold Employee Executive harmless, on an after-tax basis, from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed with respect to such advance or with respect to any imputed income with respect to such advance; and further provided that any extension of the statute of limitations relating to payment of taxes for the taxable year of Employee Executive with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the Company's right to assume the defense of and control the contest shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder and Employee Executive shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority.
Appears in 3 contracts
Samples: Executive Employment Agreement (Symbion Inc/Tn), Executive Employment Agreement (Symbion Inc/Tn), Executive Employment Agreement (Symbion Inc/Tn)
Notice of IRS Claim. Employee The Executive shall notify the Company in writing of any claims by the Internal Revenue Service IRS that, if successful, would require the payment by the Company of the Gross-Up Payment. Such notification shall be given as soon as practicable but no later than 30 thirty (30) calendar days after Employee the Executive actually receives notice in writing of such claim and shall apprise the Company of the nature of such claim and the date on which such claim is requested to be paid; provided, however, that the failure of Employee the Executive to notify the Company of such claim (or to provide any required information with respect thereto) shall not affect any rights granted to Employee the Executive under this Section 6.2 3 except to the extent that the Company is materially prejudiced in the defense of such claim as a direct result of such failure. Employee The Executive shall not pay such claim prior to the expiration of the thirty (30-) day period following the date on which he gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company notifies Employee the Executive in writing prior to the expiration of such period that it desires to contest such claim, Employee the Executive shall do all of the following:
I. give (i) provide the Company with any information reasonably requested by the Company relating to such claim;
II. (ii) take such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time, including, without limitation, including accepting legal representation with respect to such claim by an attorney selected by the Company and reasonably acceptable to Employeethe Executive;
III. (iii) cooperate with the Company in good faith in order effectively to contest such claim;; and
IV. (iv) if the Company elects not to assume and control the defense of such claim, permit the Company to participate in any proceedings relating to such claim; provided, however, that the Company shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with such contest and shall indemnify and hold Employee the Executive harmless, on an after- after-tax basis, for any Excise Tax or income tax (including interest and penalties with respect thereto) imposed as a result of such representation and payment of costs and expenses. Without limiting the foregoing provisions of this Section 6.23, the Company shall have the right, at its sole option, to assume the defense of and control all proceedings in connection with such contest, in which case it may pursue or forego any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim and may either direct Employee the Executive to pay the tax claimed and xxx for a refund or contest the claim in any permissible manner, and Employee the Executive agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine; provided, however, that if the Company directs Employee the Executive to pay such claim and xxx for a refund, the Company shall advance the amount of such payment to Employeethe Executive, on an interest-free basis and shall indemnify and hold Employee the Executive harmless, on an after-tax basis, from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed with respect to such advance or with respect to any imputed income with respect to such advance; and further provided that any extension of the statute of limitations relating to payment of taxes for the taxable year of Employee the Executive with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the Company's right to assume the defense of and control the contest shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder under this Section 3 and Employee the Executive shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority.
Appears in 2 contracts
Samples: Management Change of Control Severance Agreement (Cabelas Inc), Management Change of Control Severance Agreement (Cabelas Inc)
Notice of IRS Claim. Employee shall notify the Company in writing of any claims by the Internal Revenue Service that, if successful, would require the payment by the Company of the Gross-Up Payment. Such notification shall be given as soon as practicable but no later than 30 calendar days after Employee actually receives notice in writing of such claim and shall apprise the Company of the nature of such claim and the date on which such claim is requested to be paid; provided, however, that the failure of Employee to notify the Company of such claim (or to provide any required information with respect thereto) shall not affect any rights granted to Employee under this Section 6.2 Exhibit B except to the extent that the Company is materially prejudiced in the defense of such claim as a direct result of such failure. Employee shall not pay such claim prior to the expiration of the 30-day period following the date on which he gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company notifies Employee in writing prior to the expiration of such period that it desires to contest such claim, Employee shall do all of the following:
I. give the Company any information reasonably requested by the Company relating to such claim;
II. take such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney selected by the Company and reasonably acceptable to Employee;
III. cooperate with the Company in good faith in order effectively to contest such claim;
IV. if the Company elects not to assume and control the defense of such claim, permit the Company to participate in any proceedings relating to such claim; provided, however, that the Company shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with such contest and shall indemnify and hold Employee harmless, on an after- after-tax basis, for any Excise Tax or income tax (including interest and penalties with respect thereto) imposed as a result of such representation and payment of costs and expenses. Without limiting the foregoing provisions of this Section 6.2Exhibit B, the Company shall have the right, at its sole option, to assume the defense of and control all proceedings in connection with such contest, in which case it may pursue or forego any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim and may either direct Employee to pay the tax claimed and xxx for a refund or contest the claim in any permissible manner, and Employee agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or of more appellate courts, as the Company shall determine; provided, however, that if the Company directs Employee to pay such claim and xxx for a refund, the Company shall advance the amount of such payment to Employee, on an interest-free basis and shall indemnify and hold Employee harmless, on an after-tax basis, from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed with respect to such advance or with respect to any imputed income with respect to such advance; and further provided that any extension of the statute of limitations relating to payment of taxes for the taxable year of Employee with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the Company's ’s right to assume the defense of and control the contest shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder and Employee shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority.
Appears in 2 contracts
Samples: Employment Agreement (Team Finance LLC), Employment Agreement (Team Finance LLC)
Notice of IRS Claim. Employee Executive shall notify the Company in writing of any claims by the Internal Revenue Service that, if successful, would require the payment by the Company of the Gross-Up Payment. Such notification shall be given as soon as practicable but no later than 30 calendar days after Employee Executive actually receives notice in writing of such claim and shall apprise the Company of the nature of such claim and the date on which such claim is requested to be paid; provided, however, that the failure of Employee Executive to notify the Company of such claim (or to provide any required information with respect thereto) shall not affect any rights granted to Employee Executive under this Section 6.2 9(c) except to the extent that the Company is materially prejudiced in the defense of such claim as a direct result of such failure. Employee Executive shall not pay such claim prior to the expiration of the 30-day period following the date on which he gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company notifies Employee Executive in writing prior to the expiration of such period that it desires to contest such claim, Employee Executive shall do all of the following:
I. (i) give the Company any information reasonably requested by the Company relating to such claim;
II. (ii) take such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney selected by the Company and reasonably acceptable to EmployeeExecutive;
III. (iii) cooperate with the Company in good faith in order effectively to contest such claim;
IV. (iv) if the Company elects not to assume and control the defense of such claim, permit the Company to participate in any proceedings relating to such claim; provided, however, that the Company shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with such contest and shall indemnify and hold Employee Executive harmless, on an after- after-tax basis, for any Excise Tax or income tax (including interest and penalties with respect thereto) imposed as a result of such representation and payment of costs and expenses. Without limiting the foregoing provisions of this Section 6.29, the Company shall have the right, at its sole option, to assume the defense of and control all proceedings in connection with such contest, in which case it may pursue or forego any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim and may either direct Employee Executive to pay the tax claimed and xxx for a refund or contest the claim in any permissible manner, and Employee Executive agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine; provided, however, that if the Company directs Employee Executive to pay such claim and xxx for a refund, the Company shall advance the amount of such payment to EmployeeExecutive, on an interest-free basis and shall indemnify and hold Employee Executive harmless, on an after-tax basis, from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed with respect to such advance or with respect to any imputed income with respect to such advance; and further provided that any extension of the statute of limitations relating to payment of taxes for the taxable year of Employee Executive with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the Company's ’s right to assume the defense of and control the contest shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder and Employee Executive shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority.
Appears in 2 contracts
Samples: Employment Agreement (NeoSpine Surgery, LLC), Employment Agreement (NeoSpine Surgery, LLC)
Notice of IRS Claim. Employee shall notify the Company in writing of any claims by the Internal Revenue Service that, if successful, would require the payment by the Company of the Gross-Up Payment. Such notification shall be given as soon as practicable but no later than 30 calendar days after Employee actually receives notice in writing of such claim and shall apprise the Company of the nature of such claim and the date on which such claim is requested to be paid; provided, however, that the failure of Employee to notify the Company of such claim (or to provide any required information with respect thereto) shall not affect any rights granted to Employee under this Section 6.2 2.2 except to the extent that the Company is materially prejudiced in the defense of such claim as a direct result of such failure. Employee shall not pay such claim prior to the expiration of the 30-day period following the date on which he gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company notifies Employee in writing prior to the expiration of such period that it desires to contest such claim, Employee shall do all of the following:
I. (1) give the Company any information reasonably requested by the Company relating to such claim;
II. (2) take such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney selected by the Company and reasonably acceptable to Employee;
III. (3) cooperate with the Company in good faith in order effectively to contest such claim;
IV. (4) if the Company elects not to assume and control the defense of such claim, permit the Company to participate in any proceedings relating to such claim; provided, however, that the Company shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with such contest and shall indemnify and hold Employee harmless, on an after- after-tax basis, for any Excise Tax or income tax (including interest and penalties with respect thereto) imposed as a result of such representation and payment of costs and expenses. Without limiting the foregoing provisions of this Section 6.22.2, the Company shall have the right, at its sole option, to assume the defense of and control all proceedings in connection with such contest, in which case it may pursue or forego any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim and may either direct Employee to pay the tax claimed and xxx sue for a refund or contest the claim in any permissible manner, and Employee Xxxloyee agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine; provided, however, that if the Company directs Employee to pay such claim and xxx sue for a refund, the Company shall advance the amount of such payment to paymenx xo Employee, on an interest-free basis and shall indemnify and hold Employee harmless, on an after-tax basis, from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed with respect to such advance or with respect to any imputed income with respect to such advance; and further provided that any extension of the statute of limitations relating to payment of taxes for the taxable year of Employee with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the Company's right to assume the defense of and control the contest shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder and Employee shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority.
Appears in 1 contract
Samples: Executive Severance Agreement (Province Healthcare Co)
Notice of IRS Claim. Employee The Executive shall notify the Company in writing of any claims by the Internal Revenue Service IRS that, if successful, would require the payment by the Company of the Gross-Up Payment. Such notification shall be given as soon as practicable but no later than 30 thirty (30) calendar days after Employee the Executive actually receives notice in writing of such claim and shall apprise the Company of the nature of such claim and the date on which such claim is requested to be paid; provided, however, that the failure of Employee the Executive to notify the Company of such claim (or to provide any required information with respect thereto) shall not affect any rights granted to Employee the Executive under this Section 6.2 3 except to the extent that the Company is materially prejudiced in the defense of such claim as a direct result of such failure. Employee The Executive shall not pay such claim prior to the expiration of the thirty (30-) day period following the date on which he gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company notifies Employee the Executive in writing prior to the expiration of such period that it desires to contest such claim, Employee the Executive shall do all of the following:
I. give (i) provide the Company with any information reasonably requested by the Company relating to such claim;
II. (ii) take such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time, including, without limitation, including accepting legal representation with respect to such claim by an attorney selected by the Company and reasonably acceptable to Employeethe Executive;
III. (iii) cooperate with the Company in good faith in order effectively to contest such claim;; and
IV. (iv) if the Company elects not to assume and control the defense of such claim, permit the Company to participate in any proceedings relating to such claim; provided, however, that the Company shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with such contest and shall indemnify and hold Employee the Executive harmless, on an after- after-tax basis, for any Excise Tax or income tax (including interest and penalties with respect thereto) imposed as a result of such representation and payment of costs and expenses. Without limiting the foregoing provisions of this Section 6.23, the Company shall have the right, at its sole option, to assume the defense of and control all proceedings in connection with such contest, in which case it may pursue or forego any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim and may either direct Employee the Executive to pay the tax claimed and xxx for a refund or contest the claim in any permissible manner, and Employee the Executive agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine; provided, however, that if the Company directs Employee the Executive to pay such claim and xxx for a refund, the Company shall advance the amount of such payment to Employeethe Executive, on an interest-free basis and shall indemnify and hold Employee the Executive harmless, on an after-tax basis, from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed with respect to such advance or with respect to any imputed income with respect to such advance; and further provided that any extension of the statute of limitations relating to payment of taxes for the taxable year of Employee the Executive with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the Company's ’s right to assume the defense of and control the contest shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder under this Section 3 and Employee the Executive shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority.
Appears in 1 contract
Samples: Management Change of Control Severance Agreement (Cabelas Inc)
Notice of IRS Claim. Employee Officer shall notify the Company Corporation in writing of any claims by the Internal Revenue Service that, if successful, would require the payment by the Company Corporation of the Gross-Up Payment. Such notification shall be given as soon as practicable but no later than 30 calendar days after Employee Officer actually receives notice in writing of such claim and shall apprise the Company Corporation of the nature of such claim and the date on which such claim is requested to be paid; provided, however, that the failure of Employee Officer to notify the Company Corporation of such claim (or to provide any required information with respect thereto) shall not affect any rights granted to Employee Officer under this Section 6.2 except to the extent that the Company Corporation is materially prejudiced in the defense of such claim as a direct result of such failure. Employee Officer shall not pay such claim prior to the expiration of the 30-day period following the date on which he gives such notice to the Company Corporation (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company Corporation notifies Employee Officer in writing prior to the expiration of such period that it desires to contest such claim, Employee Officer shall do all of the following:
I. (i) give the Company Corporation any information reasonably requested by the Company Corporation relating to such claim;
II. (ii) take such action in connection with contesting such claim as the Company Corporation shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney selected by the Company Corporation and reasonably acceptable to EmployeeOfficer;
III. (iii) cooperate with the Company Corporation in good faith in order effectively to contest such claim;; and
IV. (iv) if the Company Corporation elects not to assume and control the defense of such claim, permit the Company Corporation to participate in any proceedings relating to such claim; provided, however, that the Company Corporation shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with such contest and shall indemnify and hold Employee Officer harmless, on an after- after-tax basis, for any Excise Tax or income tax (including interest and penalties with respect thereto) imposed as a result of such representation and payment of costs and expenses. Without limiting the foregoing provisions of this Section 6.24.5, the Company Corporation shall have the right, at its sole option, to assume the defense of and control all proceedings in connection with such contest, in which case it may pursue or forego any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim and may either direct Employee Officer to pay the tax claimed and xxx for a refund or contest the claim in any permissible manner, and Employee Officer agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company Corporation shall determine; provided, however, that if the Company Corporation directs Employee Officer to pay such claim and xxx for a refund, the Company Corporation shall advance the amount of such payment to EmployeeOfficer, on an interest-free basis and shall indemnify and hold Employee Officer harmless, on an after-tax basis, from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed with respect to such advance or with respect to any imputed income with respect to such advance; and further provided that any extension of the statute of limitations relating to payment of taxes for the taxable year of Employee Officer with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the Company's Corporation’s right to assume the defense of and control the contest shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder and Employee Officer shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority.
Appears in 1 contract
Notice of IRS Claim. Employee Officer shall notify the Company Corporation in writing of any claims by the Internal Revenue Service that, if successful, would require the payment by the Company Corporation of the Gross-Up Payment. Such notification shall be given as soon as practicable but no later than 30 calendar days after Employee Officer actually receives notice in writing of such claim and shall apprise the Company Corporation of the nature of such claim and the date on which such claim is requested to be paid; provided, however, that the failure of Employee Officer to notify the Company Corporation of such claim (or to provide any required information with respect thereto) shall not affect any rights granted to Employee Officer under this Section 6.2 4.4 except to the extent that the Company Corporation is materially prejudiced in the defense of such claim as a direct result of such failure. Employee Officer shall not pay such claim prior to the expiration of the 30-day period following the date on which he gives such notice to the Company Corporation (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company Corporation notifies Employee Officer in writing prior to the expiration of such period that it desires to contest such claim, Employee Officer shall do all of the following:
I. (i) give the Company Corporation any information reasonably requested by the Company Corporation relating to such claim;
II. (ii) take such action in connection with contesting such claim as the Company Corporation shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney selected by the Company Corporation and reasonably acceptable to EmployeeOfficer;
III. (iii) cooperate with the Company Corporation in good faith in order effectively to contest such claim;; and
IV. (iv) if the Company Corporation elects not to assume and control the defense of such claim, permit the Company Corporation to participate in any proceedings relating to such claim; provided, however, that the Company Corporation shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with such contest and shall indemnify and hold Employee Officer harmless, on an after- after-tax basis, for any Excise Tax or income tax (including interest and penalties with respect thereto) imposed as a result of such representation and payment of costs and expenses. Without limiting the foregoing provisions of this Section 6.24.4, the Company Corporation shall have the right, at its sole option, to assume the defense of and control all proceedings in connection with such contest, in which case it may pursue or forego any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim and may either direct Employee Officer to pay the tax claimed and xxx for a refund or contest the claim in any permissible manner, and Employee Officer agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company Corporation shall determine; provided, however, that if the Company Corporation directs Employee Officer to pay such claim and xxx for a refund, the Company Corporation shall advance the amount of such payment to EmployeeOfficer, on an interest-free basis and shall indemnify and hold Employee Officer harmless, on an after-tax basis, from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed with respect to such advance or with respect to any imputed income with respect to such advance; and further provided that any extension of the statute of limitations relating to payment of taxes for the taxable year of Employee Officer with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the CompanyCorporation's right to assume the defense of and control the contest shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder and Employee Officer shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority.
Appears in 1 contract
Notice of IRS Claim. Employee shall notify the Company in writing of any claims by the Internal Revenue Service that, if successful, would require the payment by the Company of the Gross-Up Payment. Such notification shall be given as soon as practicable but no later than 30 calendar days after Employee actually receives notice in writing of such claim and shall apprise appraise the Company of the nature of such claim and the date on which such claim is requested to be paid; provided, however, that the failure of Employee to notify the Company of such claim (or to provide any required information with respect thereto) shall not affect any rights granted to Employee under this Section 6.2 except to the extent that the Company is materially prejudiced in the defense of such claim as a direct result of such failure. Employee shall not pay such claim prior to the expiration of the 30-day period following the date on which he gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company notifies Employee in writing prior to the expiration of such period that it desires to contest such claim, Employee shall do all of the following:
I. give the Company any information reasonably requested by the Company relating to such claim;
II. take such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney selected by the Company and reasonably acceptable to Employee;
III. cooperate with the Company in good faith in order effectively to contest such claim;
IV. if the Company elects not to assume and control the defense of such claim, permit the Company to participate in any proceedings relating to such claim; provided, however, that the Company shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with such contest and shall indemnify and hold Employee harmless, on an after- after-tax basis, for any Excise Tax or income tax (including interest and penalties with respect thereto) imposed as a result of such representation and payment of costs and expenses. Without limiting the foregoing provisions of this Section 6.2, the Company shall have the right, at its sole option, to assume the defense of and control all proceedings in connection with such contest, in which case it may pursue or forego any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim and may either direct Employee to pay the tax claimed and xxx sue for a refund or contest the claim in any permissible manner, and Employee Xxployee agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine; provided, however, that if the Company directs Employee to pay such claim and xxx sue for a refund, the Company shall advance the amount of such payment paymexx to Employee, on an interest-free basis and shall indemnify and hold Employee harmless, on an after-tax basis, from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed with respect to such advance or with respect to any imputed income with respect to such advance; and further provided that any extension of the statute of limitations relating to payment of taxes for the taxable year of Employee with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the Company's right to assume the defense of and control the contest shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder and Employee shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority.
Appears in 1 contract
Samples: Employment Agreement (Ipayment Inc)
Notice of IRS Claim. Employee shall notify the Company in writing of any claims by the Internal Revenue Service that, if successful, would require the payment by the Company of the Gross-Up Payment. Such notification shall be given as soon as practicable but no later than 30 calendar days after Employee actually receives notice in writing of such claim and shall apprise the Company of the nature of such claim and the date on which such claim is requested to be paid; provided, however, that the failure of Employee to notify the Company of such claim (or to provide any required information with respect thereto) shall not affect any rights granted to Employee under this Section 6.2 2.2 except to the extent that the Company is materially prejudiced in the defense of such claim as a direct result of such failure. Employee shall not pay such claim prior to the expiration of the 30-day period following the date on which he gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company notifies Employee in writing prior to the expiration of such period that it desires to contest such claim, Employee shall do all of the following:
I. (1) give the Company any information reasonably requested by the Company relating to such claim;
II. (2) take such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney selected by the Company and reasonably acceptable to Employee;
III. (3) cooperate with the Company in good faith in order effectively to contest such claim;
IV. (4) if the Company elects not to assume and control the defense of such claim, permit the Company to participate in any proceedings relating to such claim; provided, however, that the Company shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with such contest and shall indemnify and hold Employee harmless, on an after- after-tax basis, for any Excise Tax or income tax (including interest and penalties with respect thereto) imposed as a result of such representation and payment of costs and expenses. Without limiting the foregoing provisions of this Section 6.22.2, the Company shall have the right, at its sole option, to assume the defense of and control all proceedings in connection with such contest, in which case it may pursue or forego any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim and may either direct Employee to pay the tax claimed and xxx sue for a refund or contest the claim in any permissible manner, and Employee Xxployee agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine; provided, however, that if the Company directs Employee to pay such claim and xxx sue for a refund, the Company shall advance the amount of such payment paymexx to Employee, on an interest-free basis and shall indemnify and hold Employee harmless, on an after-tax basis, from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed with respect to such advance or with respect to any imputed income with respect to such advance; and further provided that any extension of the statute of limitations relating to payment of taxes for the taxable year of Employee with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the Company's right to assume the defense of and control the contest shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder and Employee shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority.
Appears in 1 contract
Samples: Executive Severance Agreement (Province Healthcare Co)
Notice of IRS Claim. Employee shall notify the Company in writing of any claims by the Internal Revenue Service that, if successful, would require the payment by the Company of the Gross-Up Payment. Such notification shall be given as soon as practicable but no later than 30 calendar days after Employee actually receives notice in writing of such claim and shall apprise the Company of the nature of such claim and the date on which such claim is requested to be paid; provided, however, that the failure of Employee to notify the Company of such claim (or to provide any required information with respect thereto) shall not affect any rights granted to Employee under this Section 6.2 2.2 except to the extent that the Company is materially prejudiced in the defense of such claim as a direct result of such failure. Employee shall not pay such claim prior to the expiration of the 30-day period following the date on which he gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company notifies Employee in writing prior to the expiration of such period that it desires to contest such claim, Employee shall do all of the following:
I. (1) give the Company any information reasonably requested by the Company relating to such claim;
II. (2) take such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney selected by the Company and reasonably acceptable to Employee;
III. (3) cooperate with the Company in good faith in order effectively to contest such claim;
IV. (4) if the Company elects not to assume and control the defense of such claim, permit the Company to participate in any proceedings relating to such claim; provided, however, that the Company shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with such contest and shall indemnify and hold Employee harmless, on an after- tax basis, for any Excise Tax or income tax (including interest and penalties with respect thereto) imposed as a result of such representation and payment of costs and expenses. Without limiting the foregoing provisions of this Section 6.2, the Company shall have the right, at its sole option, to assume the defense of and control all proceedings in connection with such contest, in which case it may pursue or forego any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim and may either direct Employee to pay the tax claimed and xxx for a refund or contest the claim in any permissible manner, and Employee agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine; provided, however, that if the Company directs Employee to pay such claim and xxx for a refund, the Company shall advance the amount of such payment to Employee, on an interest-free basis and shall indemnify and hold Employee harmless, on an after-tax basis, from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed with respect to such advance or with respect to any imputed income with respect to such advance; and further provided that any extension of the statute of limitations relating to payment of taxes for the taxable year of Employee with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the Company's right to assume the defense of and control the contest shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder and Employee shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority.;
Appears in 1 contract
Notice of IRS Claim. Employee Officer shall notify the Company Corporation in writing of any claims by the Internal Revenue Service that, if successful, would require the payment by the Company Corporation of the Gross-Up Payment. Such notification shall be given as soon as practicable but no later than 30 calendar days after Employee Officer actually receives notice in writing of such claim and shall apprise the Company Corporation of the nature of such claim and the date on which such claim is requested to be paid; provided, however, that the failure of Employee Officer to notify the Company Corporation of such claim (or to provide any required information with respect thereto) shall not affect any rights granted to Employee Officer under this Section 6.2 4.4 except to the extent that the Company Corporation is materially prejudiced in the defense of such claim as a direct result of such failure. Employee Officer shall not pay such claim prior to the expiration of the 30-day period following the date on which he gives such notice to the Company Corporation (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company Corporation notifies Employee Officer in writing prior to the expiration of such period that it desires to contest such claim, Employee Officer shall do all of the following:
I. give the Company Corporation any information reasonably requested by the Company Corporation relating to such claim;
II. take such action in connection with contesting such claim as the Company Corporation shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney selected by the Company Corporation and reasonably acceptable to EmployeeOfficer;
III. cooperate with the Company Corporation in good faith in order effectively to contest such claim;
IV. if the Company Corporation elects not to assume and control the defense of such claim, permit the Company Corporation to participate in any proceedings relating to such claim; provided, however, that the Company Corporation shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with such contest and shall indemnify and hold Employee Officer harmless, on an after- after-tax basis, for any Excise Tax or income tax (including interest and penalties with respect thereto) imposed as a result of such representation and payment of costs and expenses. Without limiting the foregoing provisions of this Section 6.24.4, the Company Corporation shall have the right, at its sole option, to assume the defense of and control all proceedings in connection with such contest, in which case it may pursue or forego any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim and may either direct Employee Officer to pay the tax claimed and sue xxx for a refund or contest the claim in any permissible manner, and Employee Officer agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company Corporation shall determine; provided, however, that if the Company Corporation directs Employee Officer to pay such claim and sue xxx for a refund, the Company Corporation shall advance the amount of such payment to EmployeeOfficer, on an interest-free basis and shall indemnify and hold Employee Officer harmless, on an after-tax basis, from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed with respect to such advance or with respect to any imputed income with respect to such advance; and further provided that any extension of the statute of limitations relating to payment of taxes for the taxable year of Employee Officer with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the CompanyCorporation's right to assume the defense of and control the contest shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder and Employee Officer shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority.
Appears in 1 contract
Notice of IRS Claim. Employee Officer shall notify the Company Corporation in writing of any claims by the Internal Revenue Service that, if successful, would require the payment by the Company Corporation of the Gross-Up Payment. Such notification shall be given as soon as practicable but no later than 30 calendar days after Employee Officer actually receives notice in writing of such claim and shall apprise the Company Corporation of the nature of such claim and the date on which such claim is requested to be paid; provided, however, that the failure of Employee Officer to notify the Company Corporation of such claim (or to provide any required information with respect thereto) shall not affect any rights granted to Employee Officer under this Section 6.2 4.4 except to the extent that the Company Corporation is materially prejudiced in the defense of such claim as a direct result of such failure. Employee Officer shall not pay such claim prior to the expiration of the 30-day period following the date on which he gives such notice to the Company Corporation (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company Corporation notifies Employee Officer in writing prior to the expiration of such period that it desires to contest such claim, Employee Officer shall do all of the following:
I. (i) give the Company Corporation any information reasonably requested by the Company Corporation relating to such claim;
II. (ii) take such action in connection with contesting such claim as the Company Corporation shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney selected by the Company Corporation and reasonably acceptable to EmployeeOfficer;
III. (iii) cooperate with the Company Corporation in good faith in order effectively to contest such claim;; and
IV. (iv) if the Company Corporation elects not to assume and control the defense of such claim, permit the Company Corporation to participate in any proceedings relating to such claim; provided, however, that the Company Corporation shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with such contest and shall indemnify and hold Employee Officer harmless, on an after- after-tax basis, for any Excise Tax or income tax (including interest and penalties with respect thereto) imposed as a result of such representation and payment of costs and expenses. Without limiting the foregoing provisions of this Section 6.24.4, the Company Corporation shall have the right, at its sole option, to assume the defense of and control all proceedings in connection with such contest, in which case it may pursue or forego any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim and may either direct Employee Officer to pay the tax claimed and xxx sxx for a refund or contest the claim in any permissible manner, and Employee Officer agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company Corporation shall determine; provided, however, that if the Company Corporation directs Employee Officer to pay such claim and xxx sxx for a refund, the Company Corporation shall advance the amount of such payment to EmployeeOfficer, on an interest-free basis and shall indemnify and hold Employee Officer harmless, on an after-tax basis, from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed with respect to such advance or with respect to any imputed income with respect to such advance; and further provided that any extension of the statute of limitations relating to payment of taxes for the taxable year of Employee Officer with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the Company's Corporation’s right to assume the defense of and control the contest shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder and Employee Officer shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority.
Appears in 1 contract