Category
Industry
Companies
Contracts
Parachute Payments Clause Example with 56 Variations from Business Contracts
This page contains Parachute Payments clauses in business contracts and legal agreements. An example clause is provided at the top of the page, followed by clauses with minor variations. You can view the text differences by selecting the "Show Differences" option.
Parachute Payments. If any payment or benefit Executive would receive from the Company or otherwise in connection with a Change of Control or other similar transaction (a "280G Payment") would (i) constitute a "parachute payment" within the meaning of Section 280G of the Code, and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the "Excise Tax"), then any such 280G Payment (a "Payment") shall be equal to the Reduced Amount. The "Reduced Amount" shall be either (x) the l...argest portion of the Payment that would result in no portion of the Payment (after reduction) being subject to the Excise Tax or (y) the largest portion, up to and including the total, of the Payment, whichever amount (i.e., the amount determined by clause (x) or by clause (y)), after taking into account all applicable federal, state and local employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in Executive's receipt, on an after-tax basis, of the greater economic benefit notwithstanding that all or some portion of the Payment may be subject to the Excise Tax. If a reduction in a Payment is required pursuant to the preceding sentence and the Reduced Amount is determined pursuant to clause (x) of the preceding sentence, the reduction shall occur in the manner (the "Reduction Method") that results in the greatest economic benefit for Executive. If more than one method of reduction will result in the same economic benefit, the items so reduced will be reduced pro rata (the "Pro Rata Reduction Method"). Notwithstanding the foregoing, if the Reduction Method or the Pro Rata Reduction Method would result in any portion of the Payment being subject to taxes pursuant to Section 409A of the Code that would not otherwise be subject to taxes pursuant to Section 409A of the Code, then the Reduction Method and/or the Pro Rata Reduction Method, as the case may be, shall be modified so as to avoid the imposition of taxes pursuant to Section 409A of the Code as follows: (A) as a first priority, the modification shall preserve to the greatest extent possible, the greatest economic benefit for Executive as determined on an after-tax basis; (B) as a second priority, Payments that are contingent on future events (e.g., being terminated without cause), shall be reduced (or eliminated) before Payments that are not contingent on future events; and (C) as a third priority, Payments that are "deferred compensation" within the meaning of Section 409A of the Code shall be reduced (or eliminated) before Payments that are not deferred compensation within the meaning of Section 409A of the Code. (a) Unless Executive and the Company agree on an alternative accounting firm, the accounting firm engaged by the Company for general tax compliance purposes as of the day prior to the effective date of the change of control transaction triggering the Payment shall perform the foregoing calculations. If the accounting firm so engaged by the Company is serving as accountant or auditor for the individual, entity or group effecting the change of control transaction, the Company shall appoint a nationally recognized accounting firm to make the determinations required hereunder. The Company shall bear all expenses with respect to the determinations by such accounting firm required to be made hereunder. The Company shall use commercially reasonable efforts to cause the accounting firm engaged to make the determinations hereunder to provide its calculations, together with detailed supporting documentation, to Executive and the Company within 15 calendar days after the date on which Executive's right to a 280G Payment becomes reasonably likely to occur (if requested at that time by Executive or the Company) or such other time as requested by Executive or the Company. (b) If Executive receives a Payment for which the Reduced Amount was determined pursuant to clause (x) of the first paragraph of this Section and the Internal Revenue Service determines thereafter that some portion of the Payment is subject to the Excise Tax, Executive shall promptly return to the Company a sufficient amount of the Payment (after reduction pursuant to clause (x) of the first paragraph of this Section so that no portion of the remaining Payment is subject to the Excise Tax. For the avoidance of doubt, if the Reduced Amount was determined pursuant to clause (y) in the first paragraph of this Section, Executive shall have no obligation to return any portion of the Payment pursuant to the preceding sentence.
View More
Variations of a "Parachute Payments" Clause from Business Contracts
Parachute Payments. If any payment or benefit (including payments and benefits pursuant to this Agreement) that Executive would receive from the Company or otherwise in connection with a Change of Control from the Company or other similar transaction (a "280G otherwise ("Transaction Payment") would (i) constitute a "parachute payment" within the meaning of Section 280G of the Code, Internal Revenue Code of 1986, as amended (the "Code") and (ii) but for this sentence, Paragraph , would be subject to the excise tax i...mposed by Section 4999 of the Code (the "Excise Tax"), then the Company shall cause to be determined, before any such 280G amounts of the Transaction Payment (a "Payment") shall be equal are paid to Executive, which of the Reduced Amount. The "Reduced Amount" shall be either (x) following two alternative forms of payment would result in Executive's receipt, on an after-tax basis, of the largest greater amount of the Transaction Payment notwithstanding that all or some portion of the Transaction Payment that would result in no portion of the Payment (after reduction) being may be subject to the Excise Tax Tax: (1) payment in full of the entire amount of the Transaction Payment (a "Full Payment"), or (y) (2) payment of only a part of the Transaction Payment so that Executive receives the largest portion, up to and including payment possible without the total, imposition of the Excise Tax (a "Reduced Payment"). For purposes of determining whether to make a Full Payment or a Reduced Payment, whichever amount (i.e., the amount determined by clause (x) or by clause (y)), after taking Company shall cause to be taken into account all applicable federal, state and local income and employment taxes, income taxes, taxes and the Excise Tax (all computed at the highest applicable marginal rate), results in Executive's receipt, on an after-tax basis, rate, net of the greater economic benefit notwithstanding that all or some portion maximum reduction in federal income taxes which could be obtained from a deduction of the Payment may be subject to the Excise Tax. such state and local taxes). If a 5 Reduced Payment is made, (x) Executive shall have no rights to any additional payments and/or benefits constituting the Transaction Payment, and (y) reduction in a Payment is required pursuant to the preceding sentence and the Reduced Amount is determined pursuant to clause (x) of the preceding sentence, the reduction payments and/or benefits shall occur in the manner (the "Reduction Method") that results in the greatest economic benefit for Executive. to Executive as determined in this paragraph. If more than one method of reduction will result in the same economic benefit, the items so reduced will portions of the Transaction Payment shall be reduced pro rata (the "Pro Rata Reduction Method"). Notwithstanding the foregoing, if the Reduction Method or the Pro Rata Reduction Method would result in any portion of the Payment being subject to taxes pursuant to Section 409A of the Code that would not otherwise be subject to taxes pursuant to Section 409A of the Code, then the Reduction Method and/or the Pro Rata Reduction Method, as the case may be, shall be modified so as to avoid the imposition of taxes pursuant to Section 409A of the Code as follows: (A) as a first priority, the modification shall preserve to the greatest extent possible, the greatest economic benefit for Executive as determined on an after-tax basis; (B) as a second priority, Payments that are contingent on future events (e.g., being terminated without cause), shall be reduced (or eliminated) before Payments that are not contingent on future events; and (C) as a third priority, Payments that are "deferred compensation" within the meaning of Section 409A of the Code shall be reduced (or eliminated) before Payments that are not deferred compensation within the meaning of Section 409A of the Code. (a) rata. Unless Executive and the Company otherwise agree on an alternative accounting firm, in writing, any determination required under this Paragraph shall be made in writing by the accounting firm engaged by Company's independent public accountants (the "Accountants"), whose determination shall be conclusive and binding upon Executive and the Company for general tax compliance all purposes. For purposes as of making the calculations required by this Paragraph , 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 day prior to the effective date of the change of control transaction triggering the Payment shall perform the foregoing calculations. If the accounting firm so engaged by the Company is serving as accountant or auditor for the individual, entity or group effecting the change of control transaction, Code. Executive and the Company shall appoint a nationally recognized accounting firm furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make the determinations required hereunder. a determination under this Paragraph. The Company shall bear all expenses costs the Accountants may reasonably incur in connection with respect to the determinations any calculations contemplated by such accounting firm required to be made hereunder. The Company shall use commercially reasonable efforts to cause the accounting firm engaged to make the determinations hereunder to provide its calculations, together with detailed supporting documentation, to Executive and the Company within 15 calendar days after the date on which Executive's right to a 280G Payment becomes reasonably likely to occur (if requested at that time this Paragraph as well as any costs incurred by Executive or with the Company) or such other time as requested by Executive or the Company. (b) If Executive receives a Payment Accountants for which the Reduced Amount was determined pursuant to clause (x) tax planning under Sections 280G and 4999 of the first paragraph of this Section and the Internal Revenue Service determines thereafter that some portion of the Payment is subject to the Excise Tax, Executive shall promptly return to the Company a sufficient amount of the Payment (after reduction pursuant to clause (x) of the first paragraph of this Section so that no portion of the remaining Payment is subject to the Excise Tax. For the avoidance of doubt, if the Reduced Amount was determined pursuant to clause (y) in the first paragraph of this Section, Executive shall have no obligation to return any portion of the Payment pursuant to the preceding sentence. Code.
View More
Found in
Atreca, Inc. contract
Parachute Payments. If any payment or benefit (including payments and benefits pursuant to this Agreement) that Executive would receive from the Company or otherwise in connection with a Change of Control from the Company or other similar transaction (a "280G otherwise ("Transaction Payment") would (i) constitute a "parachute payment" within the meaning of Section 280G of the Code, Internal Revenue Code of 1986, as amended (the "Code") and (ii) but for this sentence, Paragraph, would be subject to the excise tax im...posed by Section 4999 of the Code (the "Excise Tax"), then the Company shall cause to be determined, before any such 280G amounts of the Transaction Payment (a "Payment") shall be equal are paid to Executive, which of the Reduced Amount. The "Reduced Amount" shall be either (x) following two alternative forms of payment would result in Executive's receipt, on an after-tax basis, of the largest greater amount of the Transaction Payment notwithstanding that all or some portion of the Transaction Payment that would result in no portion of the Payment (after reduction) being may be subject to the Excise Tax Tax: (1) payment in full of the entire amount of the Transaction Payment (a "Full Payment"), or (y) (2) payment of only a part of the Transaction Payment so that Executive receives the largest portion, up to and including payment possible without the total, imposition of the Excise Tax (a "Reduced Payment"). For purposes of determining whether to make a Full Payment or a Reduced Payment, whichever amount (i.e., the amount determined by clause (x) or by clause (y)), after taking Company shall cause to be taken into account all applicable federal, state and local income and employment taxes, income taxes, taxes and the Excise Tax (all computed at the highest applicable marginal rate), results in Executive's receipt, on an after-tax basis, rate, net of the greater economic benefit notwithstanding that all or some portion maximum reduction in federal income taxes which could be obtained from a deduction of the Payment may be subject to the Excise Tax. such state and local taxes). If a Reduced Payment is made, (x) Executive shall have no rights to any additional payments and/or benefits constituting 5. the Transaction Payment, and (y) reduction in a Payment is required pursuant to the preceding sentence and the Reduced Amount is determined pursuant to clause (x) of the preceding sentence, the reduction payments and/or benefits shall occur in the manner (the "Reduction Method") that results in the greatest economic benefit for Executive. to Executive as determined in this paragraph. If more than one method of reduction will result in the same economic benefit, the items so reduced will portions of the Transaction Payment shall be reduced pro rata (the "Pro Rata Reduction Method"). Notwithstanding the foregoing, if the Reduction Method or the Pro Rata Reduction Method would result in any portion of the Payment being subject to taxes pursuant to Section 409A of the Code that would not otherwise be subject to taxes pursuant to Section 409A of the Code, then the Reduction Method and/or the Pro Rata Reduction Method, as the case may be, shall be modified so as to avoid the imposition of taxes pursuant to Section 409A of the Code as follows: (A) as a first priority, the modification shall preserve to the greatest extent possible, the greatest economic benefit for Executive as determined on an after-tax basis; (B) as a second priority, Payments that are contingent on future events (e.g., being terminated without cause), shall be reduced (or eliminated) before Payments that are not contingent on future events; and (C) as a third priority, Payments that are "deferred compensation" within the meaning of Section 409A of the Code shall be reduced (or eliminated) before Payments that are not deferred compensation within the meaning of Section 409A of the Code. (a) rata. Unless Executive and the Company otherwise agree on an alternative accounting firm, in writing, any determination required under this Paragraph shall be made in writing by the accounting firm engaged by Company's independent public accountants (the "Accountants"), whose determination shall be conclusive and binding upon Executive and the Company for general tax compliance all purposes. For purposes as of making the calculations required by this Paragraph, 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 day prior to the effective date of the change of control transaction triggering the Payment shall perform the foregoing calculations. If the accounting firm so engaged by the Company is serving as accountant or auditor for the individual, entity or group effecting the change of control transaction, Code. Executive and the Company shall appoint a nationally recognized accounting firm furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make the determinations required hereunder. a determination under this Paragraph. The Company shall bear all expenses costs the Accountants may reasonably incur in connection with respect to the determinations any calculations contemplated by such accounting firm required to be made hereunder. The Company shall use commercially reasonable efforts to cause the accounting firm engaged to make the determinations hereunder to provide its calculations, together with detailed supporting documentation, to Executive and the Company within 15 calendar days after the date on which Executive's right to a 280G Payment becomes reasonably likely to occur (if requested at that time this Paragraph as well as any costs incurred by Executive or with the Company) or such other time as requested by Executive or the Company. (b) If Executive receives a Payment Accountants for which the Reduced Amount was determined pursuant to clause (x) tax planning under Sections 280G and 4999 of the first paragraph of this Section and the Internal Revenue Service determines thereafter that some portion of the Payment is subject to the Excise Tax, Executive shall promptly return to the Company a sufficient amount of the Payment (after reduction pursuant to clause (x) of the first paragraph of this Section so that no portion of the remaining Payment is subject to the Excise Tax. For the avoidance of doubt, if the Reduced Amount was determined pursuant to clause (y) in the first paragraph of this Section, Executive shall have no obligation to return any portion of the Payment pursuant to the preceding sentence. Code.
View More
Found in
Atreca, Inc. contract
Parachute Payments. (a) If any payment or benefit Executive you would receive from the Company or otherwise in connection with a Change of in Control or other similar transaction (a "280G Payment") ("Payment") would (i) constitute a "parachute payment" within the meaning of Section 280G of the Code, and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the "Excise Tax"), then any such 280G Payment (a "Payment") shall be equal to the Reduced Amount. The "Reduced Amount" sh...all be either (x) the largest portion of the Payment that would result in no portion of the Payment (after reduction) being subject to the Excise Tax Tax, or (y) the largest portion, up to and including the total, of the Payment, whichever amount (i.e., the amount determined by clause (x) ((x) or by clause (y)), after taking into account all applicable federal, state state, foreign and local employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in Executive's your receipt, on an after-tax basis, of the greater economic benefit amount of the Payment notwithstanding that all or some portion of the Payment may be subject to the Excise Tax. If a reduction in a payments or benefits constituting "parachute payments" is necessary so that the Payment is required pursuant to the preceding sentence and equals the Reduced Amount is determined pursuant to clause (x) of the preceding sentence, the Amount, reduction shall occur in the manner (the "Reduction Method") that results in the greatest economic benefit for Executive. If more than one method of reduction will result in the same economic benefit, the items so reduced will be reduced pro rata (the "Pro Rata Reduction Method"). Notwithstanding the foregoing, if the Reduction Method or the Pro Rata Reduction Method would result in any portion of the Payment being subject to taxes pursuant to Section 409A of the Code that would not otherwise be subject to taxes pursuant to Section 409A of the Code, then the Reduction Method and/or the Pro Rata Reduction Method, as the case may be, shall be modified so as to avoid the imposition of taxes pursuant to Section 409A of the Code as follows: (A) as a first priority, the modification shall preserve to the greatest extent possible, the greatest economic benefit for Executive as determined on an after-tax basis; (B) as a second priority, Payments that are contingent on future events (e.g., being terminated without cause), shall be reduced (or eliminated) before Payments that are not contingent on future events; and (C) as a third priority, Payments that are "deferred compensation" within the meaning of Section 409A of the Code shall be reduced (or eliminated) before Payments that are not deferred compensation within the meaning of Section 409A of the Code. (a) Unless Executive and the Company agree on an alternative accounting firm, the you. (b) The independent registered public accounting firm engaged by the Company for general tax compliance audit purposes as of the day prior to the effective date of the change event described in Section 280G(b)(2)(A)(i) of control transaction triggering the Payment Code shall perform the foregoing calculations. If the independent registered public accounting firm so engaged by the Company is serving as accountant or auditor for the individual, entity or group effecting the change of control such Change in Control or similar transaction, the Company shall appoint a nationally recognized independent registered public accounting firm to make the determinations required hereunder. The Company shall bear all expenses with respect to the determinations by such independent registered public accounting firm required to be made hereunder. 6 (c) The Company shall use commercially reasonable efforts to cause the independent registered public accounting firm engaged to make the determinations hereunder to shall provide its calculations, together with detailed supporting documentation, to Executive and the Company and you within 15 thirty (30) calendar days after the date on which Executive's your right to a 280G Payment becomes reasonably likely to occur is triggered (if requested at that time by Executive the Company or the Company) you) or such other time as reasonably requested by Executive the Company or the Company. (b) If Executive receives a Payment for which the Reduced Amount was determined pursuant to clause (x) you. Any good faith determinations of the first paragraph of this Section independent registered public accounting firm made hereunder shall be final, binding and the Internal Revenue Service determines thereafter that some portion of the Payment is subject to the Excise Tax, Executive shall promptly return to conclusive upon the Company a sufficient amount of the Payment (after reduction pursuant to clause (x) of the first paragraph of this Section so that no portion of the remaining Payment is subject to the Excise Tax. For the avoidance of doubt, if the Reduced Amount was determined pursuant to clause (y) in the first paragraph of this Section, Executive shall have no obligation to return any portion of the Payment pursuant to the preceding sentence. and you.
View More
Found in
AVADEL PHARMACEUTICALS PLC contract
Parachute Payments. (a) If any payment or benefit Executive you would receive from the Company or otherwise in connection with a Change of in Control or other similar transaction (a "280G Payment") ("Payment") would (i) constitute a "parachute payment" within the meaning of Section 280G of the Code, and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the "Excise Tax"), then any such 280G Payment (a "Payment") shall be equal to the Reduced Amount. The "Reduced Amount" sh...all be either (x) the largest portion of the Payment that would result in no portion of the Payment (after reduction) being subject to the Excise Tax Tax, or (y) the largest portion, up to and including the total, of the Payment, whichever amount (i.e., the amount determined by clause (x) ((x) or by clause (y)), after taking into account all applicable federal, state and local employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in Executive's your receipt, on an after-tax basis, of the greater economic benefit amount of the Payment notwithstanding that all or some portion of the Payment may be subject to the Excise Tax. If a reduction in a payments or benefits constituting "parachute payments" is necessary so that the Payment is required pursuant to the preceding sentence and equals the Reduced Amount is determined pursuant to clause (x) of the preceding sentence, the Amount, reduction shall occur in the manner (the "Reduction Method") that results in the greatest economic benefit for Executive. If more than one method of reduction will result in the same economic benefit, the items so reduced will be reduced pro rata (the "Pro Rata Reduction Method"). Notwithstanding the foregoing, if the Reduction Method or the Pro Rata Reduction Method would result in any portion of the Payment being subject to taxes pursuant to Section 409A of the Code that would not otherwise be subject to taxes pursuant to Section 409A of the Code, then the Reduction Method and/or the Pro Rata Reduction Method, as the case may be, shall be modified so as to avoid the imposition of taxes pursuant to Section 409A of the Code as follows: (A) as a first priority, the modification shall preserve to the greatest extent possible, the greatest economic benefit for Executive as determined on an after-tax basis; (B) as a second priority, Payments that are contingent on future events (e.g., being terminated without cause), shall be reduced (or eliminated) before Payments that are not contingent on future events; and (C) as a third priority, Payments that are "deferred compensation" within the meaning of Section 409A of the Code shall be reduced (or eliminated) before Payments that are not deferred compensation within the meaning of Section 409A of the Code. (a) Unless Executive and the Company agree on an alternative accounting firm, the you. (b) The independent registered public accounting firm engaged by the Company for general tax compliance audit purposes as of the day prior to the effective date of the change event described in Section 280G(b)(2)(A)(i) of control transaction triggering the Payment Code shall perform the foregoing calculations. If the independent registered public accounting firm so engaged by the Company is serving as accountant or auditor for the individual, entity or group effecting the change of control such Change in Control or similar transaction, the Company shall appoint a nationally recognized independent registered public accounting firm to make the determinations required hereunder. The Company shall bear all expenses with respect to the determinations by such independent registered public accounting firm required to be made hereunder. (c) The Company shall use commercially reasonable efforts to cause the independent registered public accounting firm engaged to make the determinations hereunder to shall provide its calculations, together with detailed supporting documentation, to Executive and the Company and you within 15 thirty (30) calendar days after the date on which Executive's your right to a 280G Payment becomes reasonably likely to occur is triggered (if requested at that time by Executive the Company or the Company) you) or such other time as reasonably requested by Executive the Company or the Company. (b) If Executive receives a Payment for which the Reduced Amount was determined pursuant to clause (x) you. Any good faith determinations of the first paragraph of this Section independent registered public accounting firm made hereunder shall be final, binding and the Internal Revenue Service determines thereafter that some portion of the Payment is subject to the Excise Tax, Executive shall promptly return to conclusive upon the Company a sufficient amount of the Payment (after reduction pursuant to clause (x) of the first paragraph of this Section so that no portion of the remaining Payment is subject to the Excise Tax. For the avoidance of doubt, if the Reduced Amount was determined pursuant to clause (y) in the first paragraph of this Section, Executive shall have no obligation to return any portion of the Payment pursuant to the preceding sentence. and you.
View More
Found in
Jazz Pharmaceuticals plc contract
Parachute Payments. (a) If any payment or benefit Executive Holder would receive pursuant to a Corporate Transaction from the Company or otherwise in connection with a Change of Control or other similar transaction (a "280G Payment") ("Payment") would (i) constitute a "parachute payment" within the meaning of Section 280G of the Code, Internal Revenue Code of 1986, as amended (the "Code"), and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the "Excise Tax"), then any s...uch 280G Payment (a "Payment") shall be equal reduced to the Reduced Amount. The "Reduced Amount" shall be either (x) the largest portion of the Payment that would result in no portion of the Payment (after reduction) being subject to the Excise Tax or (y) the largest portion, up to and including the total, of the Payment, whichever amount (i.e., the amount determined by clause (x) or by clause (y)), amount, after taking into account all applicable federal, state and local employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in Executive's Holder's receipt, on an after-tax basis, of the greater economic benefit amount of the Payment notwithstanding that all or some portion of the Payment may be subject to the Excise Tax. If a reduction in a payments and/or benefits constituting "parachute payments" is necessary so that the Payment is required pursuant to the preceding sentence and equals the Reduced Amount is determined pursuant to clause (x) of the preceding sentence, the Amount, reduction shall occur in the manner (the "Reduction Method") following order: reduction of current cash payments; reduction of deferred cash payments subject to Code Section 409A; cancellation of accelerated vesting of stock awards; reduction of employee benefits. In the event that results acceleration of vesting of stock award compensation is to be reduced, such acceleration of vesting shall be cancelled in the greatest economic benefit for Executive. If more than one method of reduction will result in the same economic benefit, the items so reduced will be reduced pro rata (the "Pro Rata Reduction Method"). Notwithstanding the foregoing, if the Reduction Method or the Pro Rata Reduction Method would result in any portion reverse order of the Payment being subject to taxes pursuant to Section 409A date of the Code that would not otherwise be subject to taxes pursuant to Section 409A grant of the Code, then the Reduction Method and/or the Pro Rata Reduction Method, as the case may be, shall be modified so as to avoid the imposition of taxes pursuant to Section 409A of the Code as follows: (A) as a first priority, the modification shall preserve to the greatest extent possible, the greatest economic benefit for Executive as determined on an after-tax basis; (B) as a second priority, Payments that are contingent on future events (e.g., being terminated without cause), shall be reduced (or eliminated) before Payments that are not contingent on future events; and (C) as a third priority, Payments that are "deferred compensation" within the meaning of Section 409A of the Code shall be reduced (or eliminated) before Payments that are not deferred compensation within the meaning of Section 409A of the Code. (a) Unless Executive and the Company agree on an alternative accounting firm, the Holder's stock awards. (b) The accounting firm engaged by the Company for general tax compliance audit purposes as of the day prior to the effective date of the change of control transaction triggering the Payment Corporate Transaction shall perform the foregoing calculations. If the accounting firm so engaged by the Company is serving as accountant or auditor for the individual, entity or group effecting affecting the change of control transaction, Corporate Transaction, the Company shall appoint a nationally recognized an accounting firm reasonably acceptable to Holder to make the determinations required hereunder. The Company shall bear all expenses with respect to the determinations by such accounting firm required to be made hereunder. (c) The Company shall use commercially reasonable efforts to cause the accounting firm engaged to make the determinations hereunder to shall provide its calculations, together with detailed supporting documentation, to Executive and the Company and Holder within 15 calendar days after the date on which Executive's Holder's right to a 280G Payment becomes reasonably likely to occur is triggered (if requested at that time by Executive the Company or the Company) Holder) or such other time as requested by Executive the Company or the Company. (b) If Executive receives a Payment for which the Reduced Amount was determined pursuant to clause (x) Holder. Any good faith determinations of the first paragraph of this Section accounting firm made hereunder shall be final, binding and the Internal Revenue Service determines thereafter that some portion of the Payment is subject to the Excise Tax, Executive shall promptly return to conclusive upon the Company a sufficient amount of the Payment (after reduction pursuant to clause (x) of the first paragraph of this Section so that no portion of the remaining Payment is subject to the Excise Tax. For the avoidance of doubt, if the Reduced Amount was determined pursuant to clause (y) in the first paragraph of this Section, Executive shall have no obligation to return any portion of the Payment pursuant to the preceding sentence. and Holder.
View More
Found in
Panacea Acquisition Corp contract
Parachute Payments. If any payment or benefit Executive you would receive pursuant to a Change in Control from the Company or otherwise in connection with a Change of Control or other similar transaction (a "280G Payment") ("Payment") would (i) constitute a "parachute payment" within the meaning of Section 280G of the Code, and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the "Excise Tax"), then any such 280G Payment (a "Payment") shall be equal to the Reduced Amount.... The "Reduced Amount" shall be either (x) the largest portion of the Payment that would result in no portion of the Payment (after reduction) being subject to the Excise Tax or (y) the largest portion, up to and including the total, of the Payment, whichever amount (i.e., the amount determined by clause (x) or by clause (y)), amount, after taking into account all applicable federal, state and local employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in Executive's your receipt, on an after-tax basis, of the greater economic benefit amount of the Payment notwithstanding that all or some portion of the Payment may be subject to the Excise Tax. If a reduction in a payments or benefits constituting "parachute payments" is necessary so that the Payment is required pursuant to the preceding sentence and equals the Reduced Amount is determined pursuant to clause (x) of the preceding sentence, the Amount, reduction shall occur in the manner (the "Reduction Method") following order unless you elect in writing a different order (provided, however, that results in the greatest economic benefit for Executive. If more than one method of reduction will result in the same economic benefit, the items so reduced will be reduced pro rata (the "Pro Rata Reduction Method"). Notwithstanding the foregoing, if the Reduction Method or the Pro Rata Reduction Method would result in any portion of the Payment being subject to taxes pursuant to Section 409A of the Code that would not otherwise such election shall be subject to taxes pursuant to Section 409A Company approval if made on or after the effective date of the Code, then event that triggers the Reduction Method and/or Payment): reduction of cash payments; cancellation of accelerated vesting of Stock Awards; reduction of employee benefits. In the Pro Rata Reduction Method, as the case may be, event that acceleration of vesting of Stock Award compensation is to be reduced, such acceleration of vesting shall be modified so as to avoid cancelled in the imposition of taxes pursuant to Section 409A reverse order of the Code as follows: (A) as date of grant of your Stock Awards (i.e., earliest granted Stock Award cancelled last) unless you elect in writing a first priority, the modification shall preserve to the greatest extent possible, the greatest economic benefit different order for Executive as determined on an after-tax basis; (B) as a second priority, Payments that are contingent on future events (e.g., being terminated without cause), shall be reduced (or eliminated) before Payments that are not contingent on future events; and (C) as a third priority, Payments that are "deferred compensation" within the meaning of Section 409A of the Code shall be reduced (or eliminated) before Payments that are not deferred compensation within the meaning of Section 409A of the Code. (a) Unless Executive and the Company agree on an alternative accounting firm, the cancellation. The accounting firm engaged by the Company for general tax compliance audit purposes as of the day prior to the effective date of the change of control transaction triggering the Payment Change in Control shall perform the foregoing calculations. If the accounting firm so engaged by the Company is serving as accountant or auditor for the individual, entity or group effecting the change of control transaction, Change in Control, the Company shall appoint a nationally recognized accounting firm to make the determinations required hereunder. The Company shall bear all expenses with respect to the determinations by such accounting firm required to be made hereunder. The Company shall use commercially reasonable efforts to cause the accounting firm engaged to make the determinations hereunder to shall provide its calculations, together with detailed supporting documentation, to Executive you and the Company within 15 fifteen (15) calendar days after the date on which Executive's your right to a 280G Payment becomes reasonably likely to occur is triggered (if requested at that time by Executive you or the Company) or such other time as requested by Executive you or the Company. (b) If Executive receives the accounting firm determines that no Excise Tax is payable with respect to a Payment for which Payment, either before or after the application of the Reduced Amount was determined pursuant Amount, it shall furnish you and the Company with an opinion reasonably acceptable to clause (x) you that no Excise Tax will be imposed with respect to such Payment. Any good faith determinations of the first paragraph of this Section accounting firm made hereunder shall be final, binding and conclusive upon you and the Internal Revenue Service determines thereafter that some portion of the Payment is subject to the Excise Tax, Executive shall promptly return to the Company a sufficient amount of the Payment (after reduction pursuant to clause (x) of the first paragraph of this Section so that no portion of the remaining Payment is subject to the Excise Tax. For the avoidance of doubt, if the Reduced Amount was determined pursuant to clause (y) in the first paragraph of this Section, Executive shall have no obligation to return any portion of the Payment pursuant to the preceding sentence. Company.
View More
Parachute Payments. If any payment or benefit (including payments and benefits pursuant to this Agreement) that Executive would receive in connection with a Change in Control from the Company or otherwise in connection with a Change of Control or other similar transaction (a "280G ("Transaction Payment") would (i) constitute a "parachute payment" within the meaning of Section 280G of the Code, and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the "Excise Tax"), then t...he Company shall cause to be determined, before any such 280G amounts of the Transaction Payment (a "Payment") shall be equal are paid to Service Provider, which of the Reduced Amount. The "Reduced Amount" shall be either (x) following two alternative forms of payment would result in Service Provider's receipt, on an after-tax basis, of the largest greater amount of the Transaction Payment notwithstanding that all or some portion of the Transaction Payment that would result in no portion of the Payment (after reduction) being may be subject to the Excise Tax Tax: (1) payment in full of the entire amount of the Transaction Payment (a "Full Payment"), or (y) (2) payment of only a part of the Transaction Payment so 4. that Service Provider receives the largest portion, up to and including payment possible without the total, imposition of the Excise Tax (a "Reduced Payment"). For purposes of determining whether to make a Full Payment or a Reduced Payment, whichever amount (i.e., the amount determined by clause (x) or by clause (y)), after taking Company shall cause to be taken into account all applicable federal, state and local income and employment taxes, income taxes, taxes and the Excise Tax (all computed at the highest applicable marginal rate), results in Executive's receipt, on an after-tax basis, rate, net of the greater economic benefit notwithstanding that all or some portion maximum reduction in federal income taxes which could be obtained from a deduction of the Payment may be subject to the Excise Tax. such state and local taxes). If a Reduced Payment is made, (x) Executive shall have no rights to any additional payments and/or benefits constituting the Transaction Payment, and (y) reduction in a Payment is required pursuant to the preceding sentence and the Reduced Amount is determined pursuant to clause (x) of the preceding sentence, the reduction payments and/or benefits shall occur in the manner (the "Reduction Method") that results in the greatest economic benefit for Executive. to Executive as determined in this paragraph. If more than one method of reduction will result in the same economic benefit, the items so reduced will portions of the Transaction Payment shall be reduced pro rata (the "Pro Rata Reduction Method"). Notwithstanding the foregoing, if the Reduction Method or the Pro Rata Reduction Method would result in any portion of the Payment being subject to taxes pursuant to Section 409A of the Code that would not otherwise be subject to taxes pursuant to Section 409A of the Code, then the Reduction Method and/or the Pro Rata Reduction Method, as the case may be, shall be modified so as to avoid the imposition of taxes pursuant to Section 409A of the Code as follows: (A) as a first priority, the modification shall preserve to the greatest extent possible, the greatest economic benefit for Executive as determined on an after-tax basis; (B) as a second priority, Payments that are contingent on future events (e.g., being terminated without cause), shall be reduced (or eliminated) before Payments that are not contingent on future events; and (C) as a third priority, Payments that are "deferred compensation" within the meaning of Section 409A of the Code shall be reduced (or eliminated) before Payments that are not deferred compensation within the meaning of Section 409A of the Code. (a) rata. Unless Executive and the Company otherwise agree on an alternative accounting firm, in writing, any determination required under this section shall be made in writing by the accounting firm engaged by Company's independent public accountants (the "Accountants"), whose determination shall be conclusive and binding upon Executive and the Company for general tax compliance all purposes. For purposes as of making the calculations required by this section, 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 day prior to the effective date of the change of control transaction triggering the Payment shall perform the foregoing calculations. If the accounting firm so engaged by the Company is serving as accountant or auditor for the individual, entity or group effecting the change of control transaction, Code. Executive and the Company shall appoint a nationally recognized accounting firm furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make the determinations required hereunder. a determination under this section. The Company shall bear all expenses costs the Accountants may reasonably incur in connection with respect to the determinations any calculations contemplated by such accounting firm required to be made hereunder. The Company shall use commercially reasonable efforts to cause the accounting firm engaged to make the determinations hereunder to provide its calculations, together with detailed supporting documentation, to Executive and the Company within 15 calendar days after the date on which Executive's right to a 280G Payment becomes reasonably likely to occur (if requested at that time this section as well as any costs incurred by Executive or with the Company) or such other time as requested by Executive or the Company. (b) If Executive receives a Payment Accountants for which the Reduced Amount was determined pursuant to clause (x) tax planning under Sections 280G and 4999 of the first paragraph of this Section and the Internal Revenue Service determines thereafter that some portion of the Payment is subject to the Excise Tax, Executive shall promptly return to the Company a sufficient amount of the Payment (after reduction pursuant to clause (x) of the first paragraph of this Section so that no portion of the remaining Payment is subject to the Excise Tax. For the avoidance of doubt, if the Reduced Amount was determined pursuant to clause (y) in the first paragraph of this Section, Executive shall have no obligation to return any portion of the Payment pursuant to the preceding sentence. Code.
View More
Found in
Sientra, Inc. contract
Parachute Payments. If any payment or benefit (including payments and benefits pursuant to this Agreement) that Executive would receive in connection with a Change in Control from the Company or otherwise in connection with a Change of Control or other similar transaction (a "280G ("Transaction Payment") would (i) constitute a "parachute payment" within the meaning of Section 280G of the Code, and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the "Excise Tax"), then t...he Company shall cause to be determined, before any such 280G amounts of the Transaction Payment (a "Payment") shall be equal are paid to Service Provider, which of the Reduced Amount. The "Reduced Amount" shall be either (x) following two alternative forms of payment would result in Service Provider's receipt, on an after-tax basis, of the largest greater amount of the Transaction Payment notwithstanding that all or some portion of the Transaction Payment that would result in no portion of the Payment (after reduction) being may be subject to the Excise Tax Tax: (1) payment in full of the entire amount of the Transaction Payment (a "Full Payment"), or (y) (2) payment of only a part of the Transaction Payment so that Service Provider receives the largest portion, up to and including payment possible without the total, imposition of the Excise Tax (a "Reduced Payment"). For purposes of determining whether to make a Full Payment or a Reduced Payment, whichever amount (i.e., the amount determined by clause (x) or by clause (y)), after taking Company shall cause to be taken into account all applicable federal, state and local income and employment taxes, income taxes, taxes and the Excise Tax (all computed at the highest applicable marginal rate), results in Executive's receipt, on an after-tax basis, rate, net of the greater economic benefit notwithstanding that all or some portion maximum reduction in federal income taxes which could be obtained from a deduction of the Payment may be subject to the Excise Tax. such state and local taxes). If a Reduced Payment is made, (x) Executive shall have no rights to any additional payments and/or benefits constituting the Transaction Payment, and (y) reduction in a Payment is required pursuant to the preceding sentence and the Reduced Amount is determined pursuant to clause (x) of the preceding sentence, the reduction payments and/or benefits shall 4. occur in the manner (the "Reduction Method") that results in the greatest economic benefit for Executive. to Executive as determined in this paragraph. If more than one method of reduction will result in the same economic benefit, the items so reduced will portions of the Transaction Payment shall be reduced pro rata (the "Pro Rata Reduction Method"). Notwithstanding the foregoing, if the Reduction Method or the Pro Rata Reduction Method would result in any portion of the Payment being subject to taxes pursuant to Section 409A of the Code that would not otherwise be subject to taxes pursuant to Section 409A of the Code, then the Reduction Method and/or the Pro Rata Reduction Method, as the case may be, shall be modified so as to avoid the imposition of taxes pursuant to Section 409A of the Code as follows: (A) as a first priority, the modification shall preserve to the greatest extent possible, the greatest economic benefit for Executive as determined on an after-tax basis; (B) as a second priority, Payments that are contingent on future events (e.g., being terminated without cause), shall be reduced (or eliminated) before Payments that are not contingent on future events; and (C) as a third priority, Payments that are "deferred compensation" within the meaning of Section 409A of the Code shall be reduced (or eliminated) before Payments that are not deferred compensation within the meaning of Section 409A of the Code. (a) rata. Unless Executive and the Company otherwise agree on an alternative accounting firm, in writing, any determination required under this section shall be made in writing by the accounting firm engaged by Company's independent public accountants (the "Accountants"), whose determination shall be conclusive and binding upon Executive and the Company for general tax compliance all purposes. For purposes as of making the calculations required by this section, 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 day prior to the effective date of the change of control transaction triggering the Payment shall perform the foregoing calculations. If the accounting firm so engaged by the Company is serving as accountant or auditor for the individual, entity or group effecting the change of control transaction, Code. Executive and the Company shall appoint a nationally recognized accounting firm furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make the determinations required hereunder. a determination under this section. The Company shall bear all expenses costs the Accountants may reasonably incur in connection with respect to the determinations any calculations contemplated by such accounting firm required to be made hereunder. The Company shall use commercially reasonable efforts to cause the accounting firm engaged to make the determinations hereunder to provide its calculations, together with detailed supporting documentation, to Executive and the Company within 15 calendar days after the date on which Executive's right to a 280G Payment becomes reasonably likely to occur (if requested at that time this section as well as any costs incurred by Executive or with the Company) or such other time as requested by Executive or the Company. (b) If Executive receives a Payment Accountants for which the Reduced Amount was determined pursuant to clause (x) tax planning under Sections 280G and 4999 of the first paragraph of this Section and the Internal Revenue Service determines thereafter that some portion of the Payment is subject to the Excise Tax, Executive shall promptly return to the Company a sufficient amount of the Payment (after reduction pursuant to clause (x) of the first paragraph of this Section so that no portion of the remaining Payment is subject to the Excise Tax. For the avoidance of doubt, if the Reduced Amount was determined pursuant to clause (y) in the first paragraph of this Section, Executive shall have no obligation to return any portion of the Payment pursuant to the preceding sentence. Code.
View More
Found in
Sientra, Inc. contract
Parachute Payments. If any payment or benefit (including payments and benefits pursuant to this Agreement) that Executive would receive in connection with a Change in Control from the Company or otherwise in connection with a Change of Control or other similar transaction (a "280G ("Transaction Payment") would (i) constitute a "parachute payment" within the meaning of Section 280G of the Code, and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the "Excise Tax"), then t...he Company shall cause to be determined, before any such 280G amounts of the Transaction Payment (a "Payment") shall be equal are paid to Service Provider, which of the Reduced Amount. The "Reduced Amount" shall be either (x) following two alternative forms of payment would result in Service Provider's receipt, on an after-tax basis, of the largest greater amount of the Transaction Payment notwithstanding that all or some portion of the Transaction Payment that would result in no portion of the Payment (after reduction) being may be subject to the Excise Tax Tax: (1) payment in full of the entire amount of the Transaction Payment (a "Full Payment"), or (y) (2) payment of only a part of the Transaction Payment so that Service Provider receives the largest portion, up to and including payment possible without the total, imposition of the Excise Tax (a "Reduced Payment"). For purposes of determining whether to make a Full Payment or a Reduced Payment, whichever amount (i.e., the amount determined by clause (x) or by clause (y)), after taking Company shall cause to be taken into account all applicable federal, state and local income and employment taxes, income taxes, taxes and the Excise Tax (all computed at the highest applicable marginal rate), results in Executive's receipt, on an after-tax basis, rate, net of the greater economic benefit notwithstanding that all or some portion maximum reduction in federal income taxes which could be obtained from a deduction of the Payment may be subject to the Excise Tax. such state and local taxes). If a Reduced Payment is made, (x) Executive shall have no rights to any additional payments and/or benefits constituting the Transaction Payment, and (y) reduction in a Payment is required pursuant to the preceding sentence and the Reduced Amount is determined pursuant to clause (x) of the preceding sentence, the reduction payments and/or benefits shall occur in the manner (the "Reduction Method") that results in the greatest economic benefit for Executive. to Executive as determined in this paragraph. If more than one method of reduction will result in the same economic benefit, the items so reduced will portions of the Transaction Payment shall be reduced pro rata (the "Pro Rata Reduction Method"). Notwithstanding the foregoing, if the Reduction Method or the Pro Rata Reduction Method would result in any portion of the Payment being subject to taxes pursuant to Section 409A of the Code that would not otherwise be subject to taxes pursuant to Section 409A of the Code, then the Reduction Method and/or the Pro Rata Reduction Method, as the case may be, shall be modified so as to avoid the imposition of taxes pursuant to Section 409A of the Code as follows: (A) as a first priority, the modification shall preserve to the greatest extent possible, the greatest economic benefit for Executive as determined on an after-tax basis; (B) as a second priority, Payments that are contingent on future events (e.g., being terminated without cause), shall be reduced (or eliminated) before Payments that are not contingent on future events; and (C) as a third priority, Payments that are "deferred compensation" within the meaning of Section 409A of the Code shall be reduced (or eliminated) before Payments that are not deferred compensation within the meaning of Section 409A of the Code. (a) rata. Unless Executive and the Company otherwise agree on an alternative accounting firm, in writing, any determination required under this section shall be made in writing by the accounting firm engaged by Company's independent public accountants (the "Accountants"), whose determination shall be conclusive and binding upon Executive and the Company for general tax compliance all purposes. For purposes as of making the calculations 4 required by this section, 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 day prior to the effective date of the change of control transaction triggering the Payment shall perform the foregoing calculations. If the accounting firm so engaged by the Company is serving as accountant or auditor for the individual, entity or group effecting the change of control transaction, Code. Executive and the Company shall appoint a nationally recognized accounting firm furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make the determinations required hereunder. a determination under this section. The Company shall bear all expenses costs the Accountants may reasonably incur in connection with respect to the determinations any calculations contemplated by such accounting firm required to be made hereunder. The Company shall use commercially reasonable efforts to cause the accounting firm engaged to make the determinations hereunder to provide its calculations, together with detailed supporting documentation, to Executive and the Company within 15 calendar days after the date on which Executive's right to a 280G Payment becomes reasonably likely to occur (if requested at that time this section as well as any costs incurred by Executive or with the Company) or such other time as requested by Executive or the Company. (b) If Executive receives a Payment Accountants for which the Reduced Amount was determined pursuant to clause (x) tax planning under Sections 280G and 4999 of the first paragraph of this Section and the Internal Revenue Service determines thereafter that some portion of the Payment is subject to the Excise Tax, Executive shall promptly return to the Company a sufficient amount of the Payment (after reduction pursuant to clause (x) of the first paragraph of this Section so that no portion of the remaining Payment is subject to the Excise Tax. For the avoidance of doubt, if the Reduced Amount was determined pursuant to clause (y) in the first paragraph of this Section, Executive shall have no obligation to return any portion of the Payment pursuant to the preceding sentence. Code.
View More
Found in
Sientra, Inc. contract
Parachute Payments. If any payment or benefit (including payments and benefits pursuant to this Agreement) that Executive would receive in connection with a Change in Control from the Company or otherwise in connection with a Change of Control or other similar transaction (a "280G ("Transaction Payment") would (i) constitute a "parachute payment" within the meaning of Section 280G of the Code, and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the "Excise Tax"), then t...he Company shall cause to be determined, before any such 280G amounts of the Transaction Payment (a "Payment") shall be equal are paid to Service Provider, which of the Reduced Amount. The "Reduced Amount" shall be either (x) following two alternative forms of payment would result in Service Provider's receipt, on an after-tax basis, of the largest greater amount of the Transaction Payment notwithstanding that all or some portion of the Transaction Payment that would result in no portion of the Payment (after reduction) being may be subject to the Excise Tax Tax: (1) payment in full of the entire amount of the Transaction Payment (a "Full Payment"), or (y) (2) payment of only a part of the Transaction Payment so that Service Provider receives the largest portion, up to and including payment possible without the total, imposition of the Excise Tax (a "Reduced Payment"). For purposes of determining whether to make a Full Payment or a Reduced Payment, whichever amount (i.e., the amount determined by clause (x) or by clause (y)), after taking Company shall cause to be taken into account all applicable federal, state and local income and employment taxes, income taxes, taxes and the Excise Tax (all computed at the highest applicable marginal rate), results in Executive's receipt, on an after-tax basis, rate, net of the greater economic benefit notwithstanding that all or some portion maximum reduction in federal income taxes which could be obtained from a deduction of the Payment may be subject to the Excise Tax. such state and local taxes). If a Reduced Payment is made, (x) Executive shall have no rights to any additional payments and/or benefits constituting the Transaction Payment, and (y) reduction in a Payment is required pursuant to the preceding sentence and the Reduced Amount is determined pursuant to clause (x) of the preceding sentence, the reduction payments and/or benefits shall occur in the manner (the "Reduction Method") that results in the greatest economic benefit for Executive. to Executive as determined in this paragraph. If more than one method of reduction will result in the same economic benefit, the items so reduced will portions of the Transaction Payment shall be reduced pro rata (the "Pro Rata Reduction Method"). Notwithstanding the foregoing, if the Reduction Method or the Pro Rata Reduction Method would result in any portion of the Payment being subject to taxes pursuant to Section 409A of the Code that would not otherwise be subject to taxes pursuant to Section 409A of the Code, then the Reduction Method and/or the Pro Rata Reduction Method, as the case may be, shall be modified so as to avoid the imposition of taxes pursuant to Section 409A of the Code as follows: (A) as a first priority, the modification shall preserve to the greatest extent possible, the greatest economic benefit for Executive as determined on an after-tax basis; (B) as a second priority, Payments that are contingent on future events (e.g., being terminated without cause), shall be reduced (or eliminated) before Payments that are not contingent on future events; and (C) as a third priority, Payments that are "deferred compensation" within the meaning of Section 409A of the Code shall be reduced (or eliminated) before Payments that are not deferred compensation within the meaning of Section 409A of the Code. (a) rata. Unless Executive and the Company otherwise agree on an alternative accounting firm, in writing, any determination required under this section shall be made in writing by the accounting firm engaged by Company's independent public accountants (the "Accountants"), 4. whose determination shall be conclusive and binding upon Executive and the Company for general tax compliance all purposes. For purposes as of making the calculations required by this section, 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 day prior to the effective date of the change of control transaction triggering the Payment shall perform the foregoing calculations. If the accounting firm so engaged by the Company is serving as accountant or auditor for the individual, entity or group effecting the change of control transaction, Code. Executive and the Company shall appoint a nationally recognized accounting firm furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make the determinations required hereunder. a determination under this section. The Company shall bear all expenses costs the Accountants may reasonably incur in connection with respect to the determinations any calculations contemplated by such accounting firm required to be made hereunder. The Company shall use commercially reasonable efforts to cause the accounting firm engaged to make the determinations hereunder to provide its calculations, together with detailed supporting documentation, to Executive and the Company within 15 calendar days after the date on which Executive's right to a 280G Payment becomes reasonably likely to occur (if requested at that time this section as well as any costs incurred by Executive or with the Company) or such other time as requested by Executive or the Company. (b) If Executive receives a Payment Accountants for which the Reduced Amount was determined pursuant to clause (x) tax planning under Sections 280G and 4999 of the first paragraph of this Section and the Internal Revenue Service determines thereafter that some portion of the Payment is subject to the Excise Tax, Executive shall promptly return to the Company a sufficient amount of the Payment (after reduction pursuant to clause (x) of the first paragraph of this Section so that no portion of the remaining Payment is subject to the Excise Tax. For the avoidance of doubt, if the Reduced Amount was determined pursuant to clause (y) in the first paragraph of this Section, Executive shall have no obligation to return any portion of the Payment pursuant to the preceding sentence. Code.
View More
Found in
Sientra, Inc. contract
