Common use of Parachutes Clause in Contracts

Parachutes. (a) Notwithstanding any other provision of this Agreement, if all or any portion of the payments and benefits provided under this Agreement (including without limitation any accelerated vesting and any other payment or benefit received in connection with a Change-in-Control or the termination of Executive’s employment), or any other payments and benefits which Executive receives or is entitled to receive under any plan, program, arrangement or other agreement, whether from the Employer or an affiliate of the Employer, or any combination of the foregoing, would constitute an excess “parachute payment” within the meaning of Section 280G of the Code (whether or not under an existing plan, arrangement or other agreement) (each such parachute payment, a “Parachute Payment”), and would result in the imposition on Executive of an excise tax under Section 4999 of the Code or any successor thereto, then the following provisions shall apply: (i) If the Parachute Payments, reduced by the sum of (1) the Excise Tax and (2) the total of the federal, state, and local income and employment taxes payable by Executive on the amount of the Parachute Payments which is in excess of the Threshold Amount, are greater than or equal to the Threshold Amount, Executive shall be entitled to the full benefits payable under this Agreement. (ii) If the Threshold Amount is less than (x) the Parachute Payments, but greater than (y) the Parachute Payments reduced by the sum of (1) the Excise Tax and (2) the total of the federal, state, and local income and employment taxes on the amount of the Parachute Payments which is in excess of the Threshold Amount, then the Parachute Payments shall be reduced (but not below zero) to the extent necessary so that the Parachute Payment shall not exceed the Threshold Amount. In such event, the Parachute Payments shall be reduced in the following order, in each case, in reverse chronological order beginning with the Parachute Payments that are to be paid the furthest in time from consummation of the transaction that is subject to Section 280G of the Code: (1) cash payments not subject to Section 409A of the Code; (2) cash payments subject to Section 409A of the Code; (3) equity-based payments and acceleration; and (4) non-cash forms of benefits; provided that in the case of all the foregoing Parachute Payments all amounts or payments that are not subject to calculation under Treas. Reg. §1.280G-1, Q&A-24(b) or (c) shall be reduced before any amounts that are subject to calculation under Treas. Reg. §1.280G-1, Q&A-24(b) or (c). (b) For the purposes of this Section 19, “Threshold Amount” shall mean three times Executive’s “base amount” within the meaning of Section 280G(b)(3) of the Code and the regulations promulgated thereunder less one dollar ($1.00); and “Excise Tax” shall mean the excise tax imposed by Section 4999 of the Code, and any interest or penalties incurred by Executive with respect to such excise tax.

Parachutes. (a) Notwithstanding any other provision of this Agreement, if all or any portion of the payments and benefits provided under this Agreement (including without limitation any accelerated vesting and any other payment or benefit received in connection with a Change-in-Control or the termination of Executive’s employment), or any other payments and benefits which Executive receives or is entitled to receive under any plan, program, arrangement or other agreement, whether from the Employer or an affiliate of the Employer, or any combination of the foregoing, would constitute an excess “parachute payment” within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”) (whether or not under an existing plan, arrangement or other agreement) (each such parachute payment, a “Parachute Payment”), and would result in the imposition on Executive of an excise tax under Section 4999 of the Code or any successor thereto, then the following provisions shall apply: (i) If the Parachute PaymentsPayment, reduced by the sum of (1) the Excise Tax and (2) the total of the federal, state, and local income and employment taxes payable by Executive on the amount of the Parachute Payments Payment which is are in excess of the Threshold Amount, are greater than or equal to the Threshold Amount, Executive shall be entitled to the full benefits payable under this Agreement. (ii) If the Threshold Amount is less than (x) the Parachute PaymentsPayment, but greater than (y) the Parachute Payments Payment reduced by the sum of (1) the Excise Tax and (2) the total of the federal, state, and local income and employment taxes on the amount of the Parachute Payments Payment which is are in excess of the Threshold Amount, then the Parachute Payments Payment shall be reduced (but not below zero) to the extent necessary so that the sum of all Parachute Payment Payments shall not exceed the Threshold Amount. In such event, the Parachute Payments Payment shall be reduced in the following order, in each case, in reverse chronological order beginning with the Parachute Payments that are to be paid the furthest in time from consummation of the transaction that is subject to Section 280G of the Code: (1) cash payments not subject to Section 409A of the Code; (2) cash payments subject to Section 409A of the Code; (3) equity-based payments and acceleration; and (4) non-cash forms of benefits; provided that . To the extent any payment is to be made over time (e.g., in installments, etc.), then the case of all the foregoing Parachute Payments all amounts or payments that are not subject to calculation under Treas. Reg. §1.280G-1, Q&A-24(b) or (c) shall be reduced before any amounts that are subject to calculation under Treas. Reg. §1.280G-1, Q&A-24(b) or (c)in reverse chronological order. (b) For the purposes of this Section 19, “Threshold Amount” shall mean three times Executive’s “base amount” within the meaning of Section 280G(b)(3) of the Code and the regulations promulgated thereunder less one dollar ($1.00); and “Excise Tax” shall mean the excise tax imposed by Section 4999 of the Code, and any interest or penalties incurred by Executive with respect to such excise tax.

Parachutes. (a) Notwithstanding any other provision of this Agreement, if all or any portion of the payments and benefits provided under this Agreement (including without limitation any accelerated vesting and any other payment or benefit received in connection with a Change-in-Control or the termination of Executive’s employment), or any other payments and benefits which Executive receives or is entitled to receive under any plan, program, arrangement or other agreement, whether from the Employer or an affiliate of the Employer, or any combination of the foregoing, would constitute an excess “parachute payment” within the meaning of Section 280G of the Code (whether or not under an existing plan, arrangement or other agreement) (each such parachute payment, a “Parachute Payment”), and would result in the imposition on Executive of an excise tax under Section 4999 of the Code or any successor thereto, then the following provisions shall apply: (i) If the Parachute PaymentsPayment, reduced by the sum of (1) the Excise Tax and (2) the total of the federal, state, and local income and employment taxes payable by Executive on the amount of the Parachute Payments Payment which is are in excess of the Threshold Amount, are greater than or equal to the Threshold Amount, Executive shall be entitled to the full benefits payable under this Agreement. (ii) If the Threshold Amount is less than (x) the Parachute PaymentsPayment, but greater than (y) the Parachute Payments Payment reduced by the sum of (1) the Excise Tax and (2) the total of the federal, state, and local income and employment taxes on the amount of the Parachute Payments Payment which is are in excess of the Threshold Amount, then the Parachute Payments Payment shall be reduced (but not below zero) to the extent necessary so that the sum of all Parachute Payment Payments shall not exceed the Threshold Amount. In such event, the Parachute Payments Payment shall be reduced in the following order, in each case, in reverse chronological order beginning with the Parachute Payments that are to be paid the furthest in time from consummation of the transaction that is subject to Section 280G of the Code: (1) cash payments not subject to Section 409A of the Code; (2) cash payments subject to Section 409A of the Code; (3) equity-based payments and acceleration; and (4) non-cash forms of benefits; provided that . To the extent any payment is to be made over time (e.g., in installments, etc.), then the case of all the foregoing Parachute Payments all amounts or payments that are not subject to calculation under Treas. Reg. §1.280G-1, Q&A-24(b) or (c) shall be reduced before any amounts that are subject to calculation under Treas. Reg. §1.280G-1, Q&A-24(b) or (c)in reverse chronological order. (b) For the purposes of this Section 19, “Threshold Amount” shall mean three times Executive’s “base amount” within the meaning of Section 280G(b)(3) of the Code and the regulations promulgated thereunder less one dollar ($1.00); and “Excise Tax” shall mean the excise tax imposed by Section 4999 of the Code, and any interest or penalties incurred by Executive with respect to such excise tax.

Parachutes. If any amount payable to or other benefit receivable by the Executive pursuant to this Agreement is deemed to constitute a Parachute Payment (a) Notwithstanding as defined below), alone or when added to any other provision of this Agreement, if all amount payable or any portion of the payments and benefits provided under this Agreement (including without limitation any accelerated vesting and any other payment or benefit received in connection with a Change-in-Control or the termination of Executive’s employment), or any other payments and benefits which Executive receives or is entitled paid to receive under any plan, program, arrangement or other agreement, whether from benefit receivable or received by the Employer or an affiliate of the Employer, or any combination of the foregoing, would Executive which is deemed to constitute an excess “parachute payment” within the meaning of Section 280G of the Code a Parachute Payment (whether or not under an existing plan, arrangement or other agreement) (each such parachute payment, a “Parachute Payment”), and would result in the imposition on the Executive of an excise tax under Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), then, in addition to any other benefits to which the Executive is entitled under this Agreement, the Executive shall be paid by the Company an amount in cash equal to the sum of the excise taxes payable by the Executive by reason of receiving Parachute Payments plus the amount necessary to put the Executive in the same after-tax position (taking into account any and all applicable federal, state and local excise, income or other taxes at the highest applicable rates on such Parachute Payments and on any successor theretopayments under this Section 7.16) as if no excise taxes had been imposed with respect to Parachute Payments. “Parachute Payment” shall mean a “parachute payment” as defined in Section 280G of the Code. The amount of any payment under this Section 7.16 shall be computed by a certified public accounting firm selected by the Company and reasonably acceptable to the Executive, subject to the last sentence of this Section 7.16. Notwithstanding any other provision of this Section 7.16, if a reduction in Parachute Payments by 10% or less would cause there not to be excise taxes imposed upon the Executive under Section 4999 of the Code (as determined by the accounting firm referred to above, but subject to the last sentence of this Section 7.16), then the following provisions shall apply: (i) If no payments shall be made to the Parachute Payments, reduced by Executive under the sum foregoing provisions of (1) the Excise Tax and (2) the total of the federal, statethis Section 7.16, and local income and employment taxes payable by Executive on the amount of the Parachute Payments which is in excess of the Threshold Amount, are greater than or equal to the Threshold Amount, Executive shall be entitled to the full benefits payable under this Agreement. (ii) If the Threshold Amount is less than (x) the Parachute Payments, but greater than (y) the Parachute Payments reduced by the sum of (1) the Excise Tax payments and (2) the total of the federal, state, and local income and employment taxes on the amount of the Parachute Payments which is in excess of the Threshold Amount, then the Parachute Payments benefits provided under this Agreement shall be reduced (but not below zero) to the extent necessary so that no excise taxes would be imposed upon the Parachute Payment shall not exceed the Threshold AmountExecutive. In the event that the Internal Revenue Service or a court, as applicable, finally and in a decision that has become unappealable, decides that the determinations by the accounting firm under this Section 7.16 are incorrect, then the parties shall within five business days take such event, the Parachute Payments shall be reduced in the following order, in each case, in reverse chronological order beginning with the Parachute Payments that corrective actions as are necessary to be paid the furthest in time from consummation of the transaction that is subject conform to Section 280G of the Code: (1) cash payments not subject to Section 409A of the Code; (2) cash payments subject to Section 409A of the Code; (3) equity-based payments and acceleration; and (4) non-cash forms of benefitssuch final decision; provided that in (i) the case Executive shall not initiate any proceeding or other contests regarding these matters, other than at the direction of all the foregoing Parachute Payments all amounts Company, and shall provide notice to the Company of any proceeding or payments that are not subject to calculation under Treas. Reg. §1.280G-1other contest regarding these matters initiated by the Internal Revenue Service, Q&A-24(band (ii) or (c) the Company shall be reduced before any amounts that are subject entitled to calculation under Treas. Reg. §1.280G-1direct and control all such proceeding and other contests, Q&A-24(bif it commits to and does pay all costs (including without limitation legal and other professional fees) or (c)associated therewith. (b) For the purposes of this Section 19, “Threshold Amount” shall mean three times Executive’s “base amount” within the meaning of Section 280G(b)(3) of the Code and the regulations promulgated thereunder less one dollar ($1.00); and “Excise Tax” shall mean the excise tax imposed by Section 4999 of the Code, and any interest or penalties incurred by Executive with respect to such excise tax.

Parachutes. (a) Notwithstanding In the event that any other provision of this Agreement, if all payment or any portion of the payments and benefits provided benefit received or to be received by Executive under this Agreement (including without limitation any accelerated vesting and any other payment or benefit received in connection with a Change-in-Control or the termination of Executive’s employment), or any other all such payments and benefits being hereinafter referred to as the “Total Payments”) would not be deductible (in whole or part) by Parent or the Company as a result of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), then, to the extent necessary to make such portion of the Total Payments deductible, the portion of the Total Payments that do not constitute deferred compensation within the meaning of Section 409A of the Code shall first be reduced (if necessary, to zero), and all other Total Payments shall thereafter be reduced (if necessary, to zero), with cash payments being reduced before non-cash payments, and payments to be paid last being reduced first, but only if (i) the amount of such Total Payments, as so reduced (and after subtracting the net amount of federal, state and local income taxes on such reduced Total Payments) is greater than or equal to (ii) the amount of such Total Payments without such reduction (but after subtracting the net amount of federal, state and local income taxes on such Total Payments and the amount of the excise tax imposed under Section 4999 of the Code (the “Excise Tax”) on such unreduced Total Payments). (b) For purposes of this limitation, (i) no portion of the Total Payments the receipt or enjoyment of which Executive receives or is entitled shall have waived at such time and in such manner as not to receive under any plan, program, arrangement or other agreement, whether from constitute a “payment” within the Employer or an affiliate meaning of Section 280G(b) of the Employer, or any combination Code shall be taken into account; (ii) no portion of the foregoingTotal Payments shall be taken into account which, would in the opinion of tax counsel (“Tax Counsel”) reasonably acceptable to Executive and selected by the accounting firm which was, immediately prior to the Change of Control, the Company’s independent auditor (the “Auditor”), does not constitute an excess a “parachute payment” within the meaning of Section 280G 280G(b)(2) of the Code (whether or not under an existing planCode, arrangement or other agreementincluding by reason of Section 280G(b)(4)(A) (each such parachute payment, a “Parachute Payment”), and would result in the imposition on Executive of an excise tax under Section 4999 of the Code or any successor thereto, then the following provisions shall apply: Code; (i) If the Parachute Payments, reduced by the sum of (1iii) the Excise Tax and (2) the total of the federal, state, and local income and employment taxes severance payments payable by to Executive on the amount of the Parachute Payments which is in excess of the Threshold Amount, are greater than or equal pursuant to the Threshold Amount, Executive shall be entitled to the full benefits payable under this Agreement. (ii) If the Threshold Amount is less than (x) the Parachute Payments, but greater than (y) the Parachute Payments reduced by the sum of (1) the Excise Tax and (2) the total of the federal, state, and local income and employment taxes on the amount of the Parachute Payments which is in excess of the Threshold Amount, then the Parachute Payments Agreement shall be reduced (but not below zero) only to the extent necessary so that the Parachute Payment shall not exceed Total Payments (other than those referred to in clauses (i) or (ii) of this paragraph) in their entirety constitute reasonable compensation for services actually rendered within the Threshold Amount. In such event, the Parachute Payments shall be reduced in the following order, in each case, in reverse chronological order beginning with the Parachute Payments that are to be paid the furthest in time from consummation meaning of Section 280G(b)(4)(B) of the transaction that is Code or are otherwise not subject to disallowance as deductions by reason of Section 280G of the Code: , in the opinion of Tax Counsel; and (1iv) the value of any non-cash payments not subject to Section 409A benefit or any deferred payment or benefit included in the Total Payments shall be determined by the Auditor in accordance with the principles of the Code; (2Sections 280G(d)(3) cash payments subject to Section 409A of the Code; (3) equity-based payments and acceleration; and (4) non-cash forms of benefits; provided that in the case of all the foregoing Parachute Payments all amounts or payments that are not subject to calculation under Treas. Reg. §1.280G-1, Q&A-24(b) or Code. (c) shall be reduced before any amounts that are subject If it is established pursuant to calculation under Treas. Reg. §1.280G-1a final determination of a court of competent jurisdiction or an Internal Revenue Service proceeding that, Q&A-24(b) or (c). (b) For notwithstanding the purposes good faith of Executive and the Company in applying the terms of this Section 195.4, “Threshold Amount” shall mean three times the Total Payments paid to or for Executive’s “base amount” within benefit are in an amount that would result in any portion of such Total Payments being subject to the meaning Excise Tax, then, if such repayment would result in (i) no portion of the remaining Total Payments being subject to the Excise Tax and (ii) a dollar-for-dollar reduction in Executive’s taxable income and wages for purposes of federal, state and local income and employment taxes, the Executive shall have an obligation to pay the Company upon demand an amount equal to the sum of (x) the excess of the Total Payments paid to or for Executive’s benefit over the Total Payments that could have been paid to or for Executive’s benefit without any portion of such Total Payments being subject to the Excise Tax; and (y) interest on the amount set forth in clause (x) of this sentence at the rate provided in Section 280G(b)(31274(b)(2)(B) of the Code and from the regulations promulgated thereunder less one dollar ($1.00); and “Excise Tax” shall mean date of Executive’s receipt of such excess until the excise tax imposed by Section 4999 date of the Code, and any interest or penalties incurred by Executive with respect to such excise taxpayment.

Parachutes. (a) Notwithstanding If any amount payable to or other provision of benefit receivable by the Employee pursuant to this Agreement, if all or any portion of the payments and benefits provided under this Agreement (including without limitation any accelerated vesting and any other payment or benefit received in connection with a Change-in-Control or the termination of Executive’s employment), or any other payments and benefits which Executive receives or is entitled to receive under any plan, program, arrangement or agreement with the Company (collectively, the “Payments”) would be deemed to constitute a Parachute Payment (as defined below), alone or when added to any other agreement, whether from amount payable or paid to or other benefit receivable or received by the Employer or an affiliate of the Employer, or any combination of the foregoing, would Employee which is deemed to constitute an excess “parachute payment” within the meaning of Section 280G of the Code a Parachute Payment (whether or not under an existing plan, arrangement or other agreement) (each such parachute payment, a “Parachute Payment”), and would (in the absence of this Section 5.4) result in the imposition on Executive the Employee of an excise tax (the “Excise Tax”) under Section 4999 of the Internal Revenue Code or any successor theretoof 1986, as amended (the “Code”), then the following provisions shall apply: (i) If the Parachute Payments, reduced by the sum of (1) the Excise Tax and (2) the total of the federal, state, and local income and employment taxes payable by Executive on the amount of the Parachute Payments which is in excess of the Threshold Amount, are greater than or equal to the Threshold Amount, Executive shall be entitled to the full benefits payable under this Agreement. (ii) If the Threshold Amount is less than (x) the Parachute Payments, but greater than (y) the Parachute Payments reduced by the sum of (1) the Excise Tax and (2) the total of the federal, state, and local income and employment taxes on the amount of the Parachute Payments which is in excess of the Threshold Amount, then the Parachute Payments shall be reduced (but not below zero) to the extent necessary so that Reduced Amount (as defined below), if reducing the Parachute Payment shall not exceed Payments will provide the Threshold AmountEmployee with a greater net after-tax amount than would be the case if no reduction was made. In Any such event, the Parachute Payments reduction shall be reduced in the following order, in each case, in reverse chronological order beginning with the Parachute Payments made by first reducing severance benefits (if any) and other payments that are payable in cash and then by reducing non-cash payments. The “Reduced Amount” shall be an amount expressed in present value which maximizes the aggregate present value of Payments without causing any Payment under this Agreement to be paid the furthest in time from consummation of the transaction that is subject to the Excise Tax, determined in accordance with Section 280G 280G(d)(4) of the Code: (1) cash . The fact that the Employee’s right to payments not subject to Section 409A or benefits may be reduced by reason of the Code; (2) cash payments subject to Section 409A of the Code; (3) equity-based payments and acceleration; and (4) non-cash forms of benefits; provided that limitations contained in the case of all the foregoing Parachute Payments all amounts or payments that are not subject to calculation under Treas. Reg. §1.280G-1, Q&A-24(b) or (c) shall be reduced before any amounts that are subject to calculation under Treas. Reg. §1.280G-1, Q&A-24(b) or (c). (b) For the purposes of this Section 195.4, “Threshold Amount” shall mean three times Executive’s “base amount” within the meaning not of Section 280G(b)(3) of the Code and the regulations promulgated thereunder less one dollar ($1.00); and “Excise Tax” shall mean the excise tax imposed by Section 4999 of the Code, and any interest or penalties incurred by Executive with respect to such excise tax.itself limit or

Parachutes. (a) Notwithstanding any other provision of this Agreement, if all or any portion of the payments and benefits provided under this Agreement (including without limitation any accelerated vesting and any other payment or benefit received in connection with a Change-in-in- Control or the termination of Executive’s employment), or any other payments and benefits which Executive receives or is entitled to receive under any plan, program, arrangement or other agreement, whether from the Employer or an affiliate of the Employer, or any combination of the foregoing, would constitute an excess “parachute payment” within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”) (whether or not under an existing plan, arrangement or other agreement) (each such parachute payment, a “Parachute Payment”), and would result in the imposition on Executive of an excise tax under Section 4999 of the Code or any successor thereto, then the following provisions shall apply: (i) If the Parachute PaymentsPayment, reduced by the sum of (1) the Excise Tax and (2) the total of the federal, state, and local income and employment taxes payable by Executive on the amount of the Parachute Payments Payment which is are in excess of the Threshold Amount, are greater than or equal to the Threshold Amount, Executive shall be entitled to the full benefits payable under this Agreement. (ii) If the Threshold Amount is less than (x) the Parachute PaymentsPayment, but greater than (y) the Parachute Payments Payment reduced by the sum of (1) the Excise Tax and (2) the total of the federal, state, and local income and employment taxes on the amount of the Parachute Payments Payment which is are in excess of the Threshold Amount, then the Parachute Payments Payment shall be reduced (but not below zero) to the extent necessary so that the sum of all Parachute Payment Payments shall not exceed the Threshold Amount. In such event, the Parachute Payments Payment shall be reduced in the following order, in each case, in reverse chronological order beginning with the Parachute Payments that are to be paid the furthest in time from consummation of the transaction that is subject to Section 280G of the Code: (1) cash payments not subject to Section 409A of the Code; (2) cash payments subject to Section 409A of the Code; (3) equity-based payments and acceleration; and (4) non-cash forms of benefits; provided that . To the extent any payment is to be made over time (e.g., in installments, etc.), then the case of all the foregoing Parachute Payments all amounts or payments that are not subject to calculation under Treas. Reg. §1.280G-1, Q&A-24(b) or (c) shall be reduced before any amounts that are subject to calculation under Treas. Reg. §1.280G-1, Q&A-24(b) or (c)in reverse chronological order. (b) For the purposes of this Section 19, “Threshold Amount” shall mean three times Executive’s “base amount” within the meaning of Section 280G(b)(3) of the Code and the regulations promulgated thereunder less one dollar ($1.00); and “Excise Tax” shall mean the excise tax imposed by Section 4999 of the Code, and any interest or penalties incurred by Executive with respect to such excise tax.

Parachutes. (a) Notwithstanding In the event that any other provision of this Agreement, if all payment or any portion of the payments and benefits provided benefit received or to be received by Executive under this Agreement (including without limitation any accelerated vesting and any other payment or benefit received in connection with a Change-in-Control or the termination of Executive’s employment), or any other all such payments and benefits being hereinafter referred to as the “Total Payments”) would not be deductible (in whole or part) by the Company as a result of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), then, to the extent necessary to make such portion of the Total Payments deductible, the portion of the Total Payments that do not constitute deferred compensation within the meaning of Section 409A of the Code shall first be reduced (if necessary, to zero), and all other Total Payments shall thereafter be reduced (if necessary, to zero), with cash payments being reduced before non-cash payments, and payments to be paid last being reduced first, but only if (i) the amount of such Total Payments, as so reduced (and after subtracting the net amount of federal, state and local income taxes on such reduced Total Payments) is greater than or equal to (ii) the amount of such Total Payments without such reduction (but after subtracting the net amount of federal, state and local income taxes on such Total Payments and the amount of the excise tax imposed under Section 4999 of the Code (the “Excise Tax”) on such unreduced Total Payments). (b) For purposes of this limitation, (i) no portion of the Total Payments the receipt or enjoyment of which Executive receives or is entitled shall have waived at such time and in such manner as not to receive under any plan, program, arrangement or other agreement, whether from constitute a “payment” within the Employer or an affiliate meaning of Section 280G(b) of the Employer, or any combination Code shall be taken into account; (ii) no portion of the foregoingTotal Payments shall be taken into account which, would in the opinion of tax counsel (“Tax Counsel”) reasonably acceptable to Executive and selected by the accounting firm which was, immediately prior to the Change of Control, the Company’s independent auditor (the “Auditor”), does not constitute an excess a “parachute payment” within the meaning of Section 280G 280G(b)(2) of the Code (whether or not under an existing planCode, arrangement or other agreementincluding by reason of Section 280G(b)(4)(A) (each such parachute payment, a “Parachute Payment”), and would result in the imposition on Executive of an excise tax under Section 4999 of the Code or any successor thereto, then the following provisions shall apply: Code; (i) If the Parachute Payments, reduced by the sum of (1iii) the Excise Tax and (2) the total of the federal, state, and local income and employment taxes severance payments payable by to Executive on the amount of the Parachute Payments which is in excess of the Threshold Amount, are greater than or equal pursuant to the Threshold Amount, Executive shall be entitled to the full benefits payable under this Agreement. (ii) If the Threshold Amount is less than (x) the Parachute Payments, but greater than (y) the Parachute Payments reduced by the sum of (1) the Excise Tax and (2) the total of the federal, state, and local income and employment taxes on the amount of the Parachute Payments which is in excess of the Threshold Amount, then the Parachute Payments Agreement shall be reduced (but not below zero) only to the extent necessary so that the Parachute Payment shall not exceed Total Payments (other than those referred to in clauses (i) or (ii) of this paragraph) in their entirety constitute reasonable compensation for services actually rendered within the Threshold Amount. In such event, the Parachute Payments shall be reduced in the following order, in each case, in reverse chronological order beginning with the Parachute Payments that are to be paid the furthest in time from consummation meaning of Section 280G(b)(4)(B) of the transaction that is Code or are otherwise not subject to disallowance as deductions by reason of Section 280G of the Code: , in the opinion of Tax Counsel; and (1iv) the value of any non-cash payments not subject to Section 409A benefit or any deferred payment or benefit included in the Total Payments shall be determined by the Auditor in accordance with the principles of the Code; (2Sections 280G(d)(3) cash payments subject to Section 409A of the Code; (3) equity-based payments and acceleration; and (4) non-cash forms of benefits; provided that in the case of all the foregoing Parachute Payments all amounts or payments that are not subject to calculation under Treas. Reg. §1.280G-1, Q&A-24(b) or (c) shall be reduced before any amounts that are subject to calculation under Treas. Reg. §1.280G-1, Q&A-24(b) or (c). (b) For the purposes of this Section 19, “Threshold Amount” shall mean three times Executive’s “base amount” within the meaning of Section 280G(b)(3) of the Code and the regulations promulgated thereunder less one dollar ($1.00); and “Excise Tax” shall mean the excise tax imposed by Section 4999 of the Code, and any interest or penalties incurred by Executive with respect to such excise tax.

Parachutes. (a) Notwithstanding Upon a Change in Control during the Employment Term, notwithstanding any other provision provisions of this AgreementAgreement to the contrary, if all in the event that any payments or any portion of the payments and benefits provided under this Agreement (including without limitation any accelerated vesting and any other payment received or benefit to be received by Xxxxxx in connection with a Change-in-Control his employment with Xxxxxxx (or termination thereof) would subject Xxxxxx to the termination of Executive’s employment), or any other payments and benefits which Executive receives or is entitled to receive under any plan, program, arrangement or other agreement, whether from the Employer or an affiliate of the Employer, or any combination of the foregoing, would constitute an excess “parachute payment” within the meaning of Section 280G of the Code (whether or not under an existing plan, arrangement or other agreement) (each such parachute payment, a “Parachute Payment”), and would result in the imposition on Executive of an excise tax imposed under Section 4999 of the Code or any successor thereto, then (the following provisions shall apply: (i) If the Parachute Payments, reduced by the sum of (1) the “Excise Tax and (2) the total of the federal, stateTax”), and local income and employment if the net-after tax amount (taking into account all applicable taxes payable by Executive on Xxxxxx, including any Excise Tax) that Xxxxxx would receive with respect to such payments or benefits does not exceed the net-after tax amount Xxxxxx would receive if the amount of such payment and benefits were reduced to the Parachute Payments maximum amount which is in excess could otherwise be payable to Xxxxxx without the imposition of the Threshold AmountExcise Tax, are greater than or equal to the Threshold Amountthen, Executive shall be entitled to the full benefits payable under this Agreement. (ii) If the Threshold Amount is less than (x) the Parachute Payments, but greater than (y) the Parachute Payments reduced by the sum of (1) the Excise Tax and (2) the total of the federal, state, and local income and employment taxes on the amount of the Parachute Payments which is in excess of the Threshold Amount, then the Parachute Payments shall be reduced (but not below zero) to the extent necessary so that to eliminate the Parachute Payment shall not exceed imposition of the Threshold Amount. In Excise Tax, such event, the Parachute Payments payments and benefits shall be reduced in the following order: (i) first, any future cash payments (if any) shall be reduced (if necessary, to zero); (ii) second, any current cash payments shall be reduced (if necessary, to zero); (iii) third, all non-cash payments (other than equity or equity derivative related payments) shall be reduced (if necessary, to zero); and (iv) fourth, all equity or equity derivative payments shall be reduced. Xxxxxx and Xxxxxxx hereby agree that the calculation of any reduction in each case, payments contemplated by this Section 11 and any tax withholding due in reverse chronological order beginning connection with the any Excise Tax shall be made by Golden Parachute Payments that are to be paid the furthest in time from consummation of the transaction Tax Solutions LLC (or another nationally recognized certified public accounting or professional firm that is subject to recognized as an expert in determinations and calculations for purposes of Section 280G of the Code: , selected by Xxxxxxx and consented to by Xxxxxx, such consent not to be unreasonably withheld or delayed) (1the “Calculating Firm”) cash and the determination of any such reduction in payments not subject to Section 409A or Excise Tax withholding shall be conclusive and binding on Xxxxxx absent manifest error. All fees and expenses of the Code; (2) cash payments subject to Section 409A of the Code; (3) equity-based payments and acceleration; and (4) non-cash forms of benefits; provided that in the case of all the foregoing Parachute Payments all amounts or payments that are not subject to calculation under Treas. Reg. §1.280G-1, Q&A-24(b) or (c) Calculating Firm shall be reduced before borne solely by Xxxxxxx. Prior to any amounts that are subject to calculation under Treas. Reg. §1.280G-1, Q&A-24(b) or (c). (b) For the purposes of reduction in payments contemplated by this Section 1911, “Threshold Amount” Griffon shall mean three times Executive’s “base amount” within the meaning of Section 280G(b)(3) of the Code provide Xxxxxx with a report setting forth its calculations and the regulations promulgated thereunder less one dollar ($1.00); and “Excise Tax” shall mean the excise tax imposed by Section 4999 amount of the Codesuch reduction, and any interest or penalties incurred by Executive along with respect to such excise taxadequate supporting information.

Parachutes. If any amount payable to or other benefit receivable by the Executive pursuant to this Agreement is deemed to constitute a Parachute Payment (a) Notwithstanding as defined below), alone or when added to any other provision of this Agreement, if all amount payable or any portion of the payments and benefits provided under this Agreement (including without limitation any accelerated vesting and any other payment or benefit received in connection with a Change-in-Control or the termination of Executive’s employment), or any other payments and benefits which Executive receives or is entitled paid to receive under any plan, program, arrangement or other agreement, whether from benefit receivable or received by the Employer or an affiliate of the Employer, or any combination of the foregoing, would Executive which is deemed to constitute an excess “parachute payment” within the meaning of Section 280G of the Code a Parachute Payment (whether or not under an existing plan, arrangement or other agreement) (each such parachute payment, a “Parachute Payment”), and would result in the imposition on the Executive of an excise tax under Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), then, in addition to any other benefits to which the Executive is entitled under this Agreement, the Executive shall be paid by the Company an amount in cash equal to the sum of the excise taxes payable by the Executive by reason of receiving Parachute Payments plus the amount necessary to put the Executive in the same after-tax position (taking into account any and all applicable federal, state and local excise, income or other taxes at the highest applicable rates on such Parachute Payments and on any successor theretopayments under this Section 7.16; at minimum this means that the payment shall be “grossed-up” as described in Section 3.5, taking into account any additional taxes that the Executive may owe due to any Parachute Payment) as if no excise taxes had been imposed with respect to Parachute Payments. “Parachute Payment” shall mean a “parachute payment” as defined in Section 280G of the Code. The amount of any payment under this Section 7.16 shall be computed by a certified public accounting firm selected by the Company and reasonably acceptable to the Executive, subject to the last sentence of this Section 7.16. Notwithstanding any other provision of this Section 7.16, if a reduction in Parachute Payments by 10% or less would cause there not to be excise taxes imposed upon the Executive under Section 4999 of the Code (as determined by the accounting firm referred to above, but subject to the last sentence of this Section 7.16), then the following provisions shall apply: (i) If no payments shall be made to the Parachute Payments, reduced by Executive under the sum foregoing provisions of (1) the Excise Tax and (2) the total of the federal, statethis Section 7.16, and local income and employment taxes payable by Executive on the amount of the Parachute Payments which is in excess of the Threshold Amount, are greater than or equal to the Threshold Amount, Executive shall be entitled to the full benefits payable under this Agreement. (ii) If the Threshold Amount is less than (x) the Parachute Payments, but greater than (y) the Parachute Payments reduced by the sum of (1) the Excise Tax payments and (2) the total of the federal, state, and local income and employment taxes on the amount of the Parachute Payments which is in excess of the Threshold Amount, then the Parachute Payments benefits provided under this Agreement shall be reduced (but not below zero) to the extent necessary so that no excise taxes would be imposed upon the Parachute Payment shall not exceed the Threshold AmountExecutive. In the event that the Internal Revenue Service or a court, as applicable, finally and in a decision that has become unappealable, decides that the determinations by the accounting firm under this Section 7.16 are incorrect, then the parties shall within five business days take such event, the Parachute Payments shall be reduced in the following order, in each case, in reverse chronological order beginning with the Parachute Payments that corrective actions as are necessary to be paid the furthest in time from consummation of the transaction that is subject conform to Section 280G of the Code: (1) cash payments not subject to Section 409A of the Code; (2) cash payments subject to Section 409A of the Code; (3) equity-based payments and acceleration; and (4) non-cash forms of benefitssuch final decision; provided that in (i) the case Executive shall not initiate any proceeding or other contests regarding these matters, other than at the direction of all the foregoing Parachute Payments all amounts Company, and shall provide notice to the Company of any proceeding or payments that are not subject to calculation under Treas. Reg. §1.280G-1other contest regarding these matters initiated by the Internal Revenue Service, Q&A-24(band (ii) or (c) the Company shall be reduced before any amounts that are subject entitled to calculation under Treas. Reg. §1.280G-1direct and control all such proceeding and other contests, Q&A-24(bif it commits to and does pay all costs (including without limitation legal and other professional fees) or (c)associated therewith. (b) For the purposes of this Section 19, “Threshold Amount” shall mean three times Executive’s “base amount” within the meaning of Section 280G(b)(3) of the Code and the regulations promulgated thereunder less one dollar ($1.00); and “Excise Tax” shall mean the excise tax imposed by Section 4999 of the Code, and any interest or penalties incurred by Executive with respect to such excise tax.

Parachutes. (a) Notwithstanding any other provision of this Agreement, if all or any portion of the payments and benefits provided under this Agreement (including without limitation any accelerated vesting and any other payment or benefit received in connection with a Change-in-Control or the termination of Executive’s employment), or any other payments and benefits which Executive receives or is entitled to receive under any plan, program, arrangement or other agreement, whether from the Employer or an affiliate of the Employer, or any combination of the foregoing, would constitute an excess “parachute payment” within the meaning of Section 280G of the Code (whether or not under an existing plan, arrangement or other agreement) (each such parachute payment, a “Parachute Payment”), and would result in the imposition on Executive of an excise tax under Section 4999 of the Code or any successor thereto, then the following provisions shall apply: (i) If the Parachute Payments, reduced by the sum of (1) the Excise Tax and (2) the total of the federal, state, and local income and employment taxes payable by Executive on the amount of the Parachute Payments which is in excess of the Threshold Amount, are greater than or equal to the Threshold Amount, Executive shall be entitled to the full benefits payable under this Agreement. (ii) If the Threshold Amount is less than (x) the Parachute Payments, but greater than (y) the Parachute Payments reduced by the sum of (1) the Excise Tax and (2) the total of the federal, state, and local income and employment taxes on the amount of the Parachute Payments which is in excess of the Threshold Amount, then the Parachute Payments shall be reduced (but not below zero) to the extent necessary so that the Parachute Payment shall not exceed the Threshold Amount. In such event, the Parachute Payments shall be reduced in the following order, in each case, in reverse chronological order beginning with the Parachute Payments that are to be paid the furthest in time from consummation of the transaction that is subject to Section 280G of the Code: (1) cash payments not subject to Section 409A of the Code; (2) cash payments subject to Section 409A of the Code; (3) equity-based payments and acceleration; and (4) non-cash forms of benefits; provided that in the case of all the foregoing Parachute Payments all amounts or payments that are not subject to calculation under Treas. Reg. §1.280G-1, Q&A-24(b) or (c) shall be reduced before any amounts that are subject to calculation under Treas. Reg. §1.280G-1, Q&A-24(b) or (c). (b) For the purposes of this Section 19, “Threshold Amount” shall mean three times Executive’s “base amount” within the meaning of Section 280G(b)(3) of the Code and the regulations promulgated thereunder less one dollar ($1.00); and “Excise Tax” shall mean the excise tax imposed by Section 4999 of the Code, and any interest or penalties incurred by Executive with respect to such excise tax.the