Common use of Parachute Payment Limitation Clause in Contracts

Parachute Payment Limitation. Notwithstanding any other provision of this Agreement, if any Parachute Payment or Payments are characterized as Excess Parachute Payments, then the following rules shall apply: 5.4.1 The Company shall compute the net value to the Executive of all such severance payments after reduction for the excise taxes imposed by Section 4999 of the Code and for any normal income taxes that would be imposed on the Executive if such severance payments constituted the Executive's sole taxable income; 5.4.2 The Company shall next compute the maximum amount of severance payments that can be provided without any such payments being characterized as Excess Parachute Payments, and reduce the result by the amount of any normal income taxes that would be imposed on the Executive if such reduced severance benefits constituted the Executive's sole taxable income; 5.4.3 If the amount derived in Section 5.4.1 is greater than the amount derived in Section 5.4.2, then the Company shall pay the Executive the full the amount of severance payments without reduction. If the amount derived in Section 5.4.1 is not greater than the amount derived in Section 5.4.2, then the Company shall pay the Executive the maximum amount of severance payments that can be provided without any such payments being characterized as Excess Parachute Payments.

Parachute Payment Limitation. Notwithstanding any other provision of this Agreement, if the severance payments under Section 5.02 of this Agreement, together with any other Parachute Payment or Payments made by the Company to the Executive, if any, are characterized as Excess Parachute Payments, then the following rules shall apply: 5.4.1 (a) The Company shall compute the net value to the Executive of all such severance payments after reduction for the excise taxes imposed by Section 4999 4999, of the Code and for any normal income taxes that would be imposed on the Executive if such severance payments constituted the Executive's sole taxable income; 5.4.2 (b) The Company shall next compute the maximum amount of severance payments that can be provided without any such payments being characterized as Excess Parachute Payments, and reduce the result by the amount of any normal income taxes that would be imposed on the Executive if such reduced severance benefits constituted the Executive's sole taxable income; 5.4.3 (c) If the amount derived in Section 5.4.1 5.03(a) is greater than the amount derived in Section 5.4.25.03(b), then the Company shall pay the Executive the full the amount of severance payments without reduction. If the amount derived in Section 5.4.1 5.03(a) is not greater than the amount derived in Section 5.4.25.03(b), then the Company shall pay the Executive the maximum amount of severance payments that can be provided without any such payments being characterized as Excess Parachute Payments.

Parachute Payment Limitation. Notwithstanding any other provision of this Agreement, if the severance payments under Section 5.2 of this Agreement, together with any other Parachute Payment or Payments made by the Company to the Executive, if any, are characterized as Excess Parachute Payments, then the following rules shall apply: 5.4.1 (a) The Company shall compute the net value to the Executive of all such severance payments after reduction for the excise taxes imposed by Section 4999 of the Code and for any normal income taxes that would be imposed on the Executive if such severance payments constituted the Executive's sole taxable income; 5.4.2 (b) The Company shall next compute the maximum amount of severance payments that can be provided without any such payments being characterized as Excess Parachute Payments, and reduce the result by the amount of any normal income taxes that would be imposed on the Executive if such reduced severance benefits constituted the Executive's sole taxable income; 5.4.3 (c) If the amount derived in Section 5.4.1 5.3(a) is greater than the amount derived in Section 5.4.25.3(b), then the Company shall pay the Executive the full the amount of severance payments without reduction. If the amount derived in Section 5.4.1 5.3(a) is not greater than the amount derived in Section 5.4.25.3(b), then the Company shall pay the Executive the maximum amount of severance payments that can be provided without any such payments being characterized as Excess Parachute Payments.