Potential Limitation on Severance Benefits. (a) Notwithstanding any other provision of this Agreement to the contrary, if any portion of the payments under this Agreement or any other agreement with the Company or its Affiliates (in the aggregate, “Total Payments”), would constitute an “excess parachute payment” and would, but for this Section, result in the imposition on you of an excise tax under Code Section 4999 (the “Excise Tax”), then the Total Payments to be made to you under this Agreement shall either be (A) delivered in full, or (B) reduced by such amount so that no portion of such Total Payment would be subject to the Excise Tax, whichever of the foregoing results in the receipt by you of the greatest benefit on an after-tax basis (taking into account the applicable federal, state and local income taxes and the Excise Tax).
Appears in 9 contracts
Samples: Employment Agreement (Kalobios Pharmaceuticals Inc), Employment Agreement (Kalobios Pharmaceuticals Inc), Employment Agreement (Kalobios Pharmaceuticals Inc)
