Document ID: 11603

Text:
(e) Section 280G. In the event that any payments or benefits otherwise payable to Executive (1) constitute parachute payments within the meaning of Section 280G of the Internal Revenue Code of 1986 , as amended (the Code), and (2) but for this Section 7(e), would be subject to the excise tax imposed by Section 4999 of the Code, then such payments and benefits shall be either (x) delivered in full, or (y) delivered as to such lesser extent that would result in no portion of such payments and benefits being subject to excise tax under Section 4999 of the Code, whichever of the foregoing amounts, taking into account the applicable federal, state and local income and employment taxes and the excise tax imposed by Section 4999 of the Code (and any equivalent state or local excise taxes), results in the receipt by Executive on an after- tax basis, of the greatest amount of benefits, notwithstanding that all or some portion of such payments and benefits may be taxable under Section 4999 of the Code. Unless the Company and Executive otherwise agree in writing, any determination required under this Section 7(e) will be made in writing by a nationally-recognized accounting firm selected jointly by the Company and Executive (the Accountants), whose determination will be conclusive and binding upon Executive and the Company for all purposes. For purposes of making the calculations required by this Section 7(e), the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code. The Company and Executive agree to furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this provision. The Company will bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this provision. Any reduction in payments and/or benefits required by this provision shall occur in the following order: (1) reduction of cash payments; (2) reduction of vesting acceleration of equity awards; and (3) reduction of other benefits paid or provided to Executive. In the event that acceleration of vesting of equity awards is to be reduced, such acceleration of vesting shall be cancelled in the reverse order of the date of grant for equity awards. If two or more equity awards are granted on the same date, each award shall be reduced on a pro-rata basis. The Company and Executive agree that (A) any payments and benefits to which Executive is entitled pursuant to Section 7 are compensation for Executives compliance with the restrictive provisions of Section 10 and (B) the Company shall make reasonable efforts to mitigate the payments and benefits that would be subject to the excise tax imposed by Section 4999 of the Code and to maximize the net after-tax proceeds received by Executive; provided that such actions do not result in payment of any increased compensation to Executive, do not provide for any gross-up or indemnity for potential excise taxes and do not reduce the payments and benefits to which Executive is otherwise entitled (except as required pursuant to this Section 7(e)).

Named Entities:
3
4
Regulation
32
36
Act
67
68
Regulation
301
304
Regulation

Tokenized Text:
(
e
)
Section
280G
.
In
the
event
that
any
payments
or
benefits
otherwise
payable
to
Executive
(
1
)
constitute
parachute
payments
within
the
meaning
of
Section
280G
of
the
Internal
Revenue
Code
of
1986
,
as
amended
(
the
Code
)
,
and
(
2
)
but
for
this
Section
7
(
e
)
,
would
be
subject
to
the
excise
tax
imposed
by
Section
4999
of
the
Code
,
then
such
payments
and
benefits
shall
be
either
(
x
)
delivered
in
full
,
or
(
y
)
delivered
as
to
such
lesser
extent
that
would
result
in
no
portion
of
such
payments
and
benefits
being
subject
to
excise
tax
under
Section
4999
of
the
Code
,
whichever
of
the
foregoing
amounts
,
taking
into
account
the
applicable
federal
,
state
and
local
income
and
employment
taxes
and
the
excise
tax
imposed
by
Section
4999
of
the
Code
(
and
any
equivalent
state
or
local
excise
taxes
)
,
results
in
the
receipt
by
Executive
on
an
after
-
tax
basis
,
of
the
greatest
amount
of
benefits
,
notwithstanding
that
all
or
some
portion
of
such
payments
and
benefits
may
be
taxable
under
Section
4999
of
the
Code
.
Unless
the
Company
and
Executive
otherwise
agree
in
writing
,
any
determination
required
under
this
Section
7
(
e
)
will
be
made
in
writing
by
a
nationally-recognized
accounting
firm
selected
jointly
by
the
Company
and
Executive
(
the
Accountants
)
,
whose
determination
will
be
conclusive
and
binding
upon
Executive
and
the
Company
for
all
purposes
.
For
purposes
of
making
the
calculations
required
by
this
Section
7
(
e
)
,
the
Accountants
may
make
reasonable
assumptions
and
approximations
concerning
applicable
taxes
and
may
rely
on
reasonable
,
good
faith
interpretations
concerning
the
application
of
Sections
280G
and
4999
of
the
Code
.
The
Company
and
Executive
agree
to
furnish
to
the
Accountants
such
information
and
documents
as
the
Accountants
may
reasonably
request
in
order
to
make
a
determination
under
this
provision
.
The
Company
will
bear
all
costs
the
Accountants
may
reasonably
incur
in
connection
with
any
calculations
contemplated
by
this
provision
.
Any
reduction
in
payments
and
/
or
benefits
required
by
this
provision
shall
occur
in
the
following
order
:
(
1
)
reduction
of
cash
payments
;
(
2
)
reduction
of
vesting
acceleration
of
equity
awards
;
and
(
3
)
reduction
of
other
benefits
paid
or
provided
to
Executive
.
In
the
event
that
acceleration
of
vesting
of
equity
awards
is
to
be
reduced
,
such
acceleration
of
vesting
shall
be
cancelled
in
the
reverse
order
of
the
date
of
grant
for
equity
awards
.
If
two
or
more
equity
awards
are
granted
on
the
same
date
,
each
award
shall
be
reduced
on
a
pro-rata
basis
.
The
Company
and
Executive
agree
that
(
A
)
any
payments
and
benefits
to
which
Executive
is
entitled
pursuant
to
Section
7
are
compensation
for
Executives
compliance
with
the
restrictive
provisions
of
Section
10
and
(
B
)
the
Company
shall
make
reasonable
efforts
to
mitigate
the
payments
and
benefits
that
would
be
subject
to
the
excise
tax
imposed
by
Section
4999
of
the
Code
and
to
maximize
the
net
after-tax
proceeds
received
by
Executive
;
provided
that
such
actions
do
not
result
in
payment
of
any
increased
compensation
to
Executive
,
do
not
provide
for
any
gross-up
or
indemnity
for
potential
excise
taxes
and
do
not
reduce
the
payments
and
benefits
to
which
Executive
is
otherwise
entitled
(
except
as
required
pursuant
to
this
Section
7
(
e
)
)
.